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HomeMy WebLinkAboutTRBC CDBG Application DRAFT DRAFT Application for an Idaho Community Development Block Grant Job Creation Project: Teton River Business Center Expansion at 343 East 4th North | Rexburg, Idaho | Madison County by The City of Rexburg December 15, 2021 Mayor Jerry Merrill TRBC New Building 1 2 III. Table of Contents IV. Idaho Community Development Block Grant Application Information Form ................................. 4 V. Economic Advisory Council Page ..................................................................................................... 6 VI. Threshold Factors............................................................................................................................. 7 A. Eligible Applicant ....................................................................................................................... 7 B. Eligible Activity .......................................................................................................................... 7 C. National Objective ..................................................................................................................... 7 D. Citizen Participation Plan and Hearing ...................................................................................... 8 E. Administrative Capacity ............................................................................................................ 8 F. Fair Housing Resolution ........................................................................................................... 10 G. Anti-displacement Plan ........................................................................................................... 10 VII. Program Income............................................................................................................................. 10 VIII. Project Description ........................................................................................................................ 10 IX. Budget Narrative ............................................................................................................................ 12 X. Budget Form .................................................................................................................................. 13 XI. Detailed Cost Analysis .................................................................................................................... 15 XII. Project Schedule ............................................................................................................................ 15 XIII. Financial Profiles ............................................................................................................................ 16 XIV. Project Site – Field Notes Review .................................................................................................. 18 XV. Review and Ranking Narrative (Chapter 9: Economic Development - Job Creation) ................... 21 A. Instructions .............................................................................................................................. 21 B. Ranking Criteria ...................................................................................................................... 22 C. Part B: Business Information ................................................................................................... 30 D. Part C & D: Job Documentation (ATTACHMENT “A” - Jobs to be Created)........................ 33 XVI. Certifications .................................................................................................................................. 41 VII. Appendices ..................................................................................................................................... 45 A. National Objective Documentation (County Stats | Census | HUB Zone) .............................. 45 B. Sub-Recipient Agreement (Authorizing Resolution) ............................................................... 60 C. Citizen Participation Plan & Hearing (Public Notice | Publication) ......................................... 62 D. Fair Housing – Resolution ........................................................................................................ 67 E. Acquisition Documentation (Appraisal | Purchase Agreement | Settlement Statement | Warranty Deed) ....................................................................................................................... 70 F. Funding Commitments (Detailed Budget | USDA-RD Award | Cash Match) ........................ 141 G. Letters of Collaboration (City of Rexburg | Madison County | CEI | RBDC | Legrande)....... 154 H. Preliminary Drawings (Site Maps | Environmental Comments | PER) ................................. 161 I. Sub Recipient Information (Org Chart | Audit | Lease | Management Policies) .................. 200 J. Job Creation Agreement ........................................................................................................ 241 3 IV. Idaho Community Development Block Grant Application Information Form Applicant (City/County): City of Rexburg Chief Elected Official: Jerry Merrill, Mayor Address: 35 North 1st East, Rexburg, ID 83440 Phone: (208) 359-3020 Email Address: mayor@rexburg.org DUNS # 028566750 CAGE Code 41NK4 Sub recipient (if applicable): East-Central Idaho Planning and Development Association, Inc. (ECIPDA) Address: 299 East 4th North Rexburg, ID 83440 Chief Elected Official: Ted Hendricks Phone: (208) 356-4524 Application Prepared by: East-Central Idaho Planning and Development Association, Inc. (ECIPDA) Address: 299 East 4th North Rexburg, ID 83440 Phone: (208) 356-4524 Architect/Engineer/Planner (Contact Name): City of Rexburg Phone: (208) 359-3020 Address: 35 North 1st East, Rexburg, ID 83440 NATIONAL OBJECTIVE (MARK ONE) PROJECT TYPE (MARK ONE) ___ LMI Area ___ LMI Clientele ___ Post Disaster ___ Public Facility ___ Post Disaster _ X_ LMI Jobs ___ Slum & Blight ___ LMI Housing _X_ Infrastructure for Jobs ___ Senior Center ___ Downtown Revitalize ___ Community Center ___ Public Park PROJECT POPULATION TO BENEFIT (PERSONS): (Census/Survey/Jobs) TOTAL # TO BENEFIT: 25,950 TOTAL # LMI TO BENEFIT: 17,470 % LMI TO BENEFIT: 67.3% PROJECT DESCRIPTION: The Teton River Business Center Expansion Project will consist of constructing a new 2-story 20,000 square foot expansion building on a 0.879-acre lot adjacent to and directly East of the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID. Some remodeling of the existing building may also occur on an as-needed basis. Both buildings will be integrated and serve the goals and objectives of the Teton River Business Center which is owned and operated by East-Central Idaho Planning and Development Association, Inc. (ECIPDA). 4 SOURCE AMOUNT FUNDS COMMITTED/ CONTRACT AWARD DATE DOCUMENTATION IN APPENDIX ** ICDBG $500,000 (Applying in Q1 2022) N/A Local Cash $570,000 ECIPDA Cash Match Appendix F-3 Local Loan* Local In-Kind** $230,000 ECIPDA Land Match Appendix E USDA-RD Grant $1,247,312 Awarded on 9/23/2021 Appendix F-2 State Grant Foundation Grant Private Investment Other (identify) (EDA) $3,952,688 (Applying in Dec 2021) N/A TOTAL PROJECT FINANCING $6,500,000 * Identify Loan Source(s) ______N/A_________________ Date Bond or Necessary and Ordinary Passed N/A_____ **Identify which appendix corresponding documentation is in. Documentation should be a letter from the appropriate source. 5 V. Economic Advisory Council Page The Need & how it will be addressed: This project will be located in Madison County, which suffers from low per capita income and is considered a Persistent Poverty County (see Appendix A-3: Madison County Persistent Poverty). The project will be a new 2-story 20,000 square foot expansion building on a 0.879-acre lot adjacent to and directly East of the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID which East-Central Idaho Planning and Development Association, Inc. (ECIPDA) constructed with grant funding approximately 13 years ago and still owns and operates. Since inception, the TRBC has been operating successfully as a hybrid business incubator and workforce development center. It has provided many start-up companies with the technical assistance and affordable office space needed to focus on their growing profits and workforce. However, it has exceeded its capacity and an expansion is necessary to continue serving the area. Project Cost & Local Ability to Finance: The total project cost will be $6,500,000. ECIPDA has already been awarded a RISE grant from USDA-Rural Development of $1,247,312 and is applying for an EDA ARPA grant for $3,952,688 as well as this IDOC CDBG grant for $500,000. If the latter two grants are awarded, ECIPDA’s contribution will be a total of $800,000 through 1) a land match of $230,000 (the appraised value of the project site lot, which has already been purchased by ECIPDA – see Appendix E: Acquisition Documentation for the Appraisal, Purchase Agreement, Settlement Statement and Warranty Deed) and 2) cash match of $570,000, which has been set aside for the purposed of this project (see Appendix F-3: Cash Match for a Letter of Unencumbered Cash Match). Local Effort & Commitment: The TRBC and its expansion is very well supported by the community and there are several partners and beneficiaries committed to its success. The City of Rexburg has sponsored grants such as this one and collaborated in various ways to support ECIPDA’s efforts to further the economic development of the city. Madison County has also collaborated in various ways, including removing the TRBC facility from its tax roll so the non-profit could instead apply those funds toward providing services for new startup businesses and subsidizing rents for tenants. The County will continue to support the center in this way after the new expansion. College of Eastern Idaho (CEI) has been an anchor tenant in the TRBC and will continue to be after its expansion. CEI will also provide Workforce Training and Continuing Education services. They together with the Research & Business Development Center (RBDC) who is also expecting to become a new tenant post-expansion, will collaborate with other TRBC tenants such as entrepreneurs and new businesses to foster partnerships and new innovative ideas. (See Appendix G: Letters of Collaboration for letters from each of those partners which go into detail about their efforts, collaboration and commitment to this project.) Project Impact: ECIPDA anticipates that it will be able to accommodate approximately 65 tenants at one time once the expansion is complete. With the average tenant occupancy of 3 years, about 195 companies will cycle through the center within a 9-year period. Based on the numbers seen in our facilities over the years, we’ve found that each tenant creates an average of 3-5 jobs within a 9-year period so we can extrapolate that approximately 500-1000 new jobs would be created during that period. Also, the division of Workforce Training and Continuing Education at CEI within the TRBC works with service providers at the local and state level to address the occupational training needs and supportive services for underserved populations of the area such as low-income persons, juveniles in correctional facilities, dislocated workers and persons with disabilities. This project will also directly support 2 of the 3 main goals of ECIPDA’s current CEDS (Comprehensive Economic Development Strategy). Goal #1 is to advance individuals by bringing communities & industries together to encourage education through higher institutions & trade schools. As part of that, ECIPDA is committed to supporting the expansion of CEI’s footprint in all nine of the counties that ECIPDA represents. This will occur as CEI expands its presence in Rexburg at the TRBC. Goal #2 is to elevate industries by supporting entrepreneurship & the diversification of developing businesses. The strategies for that goal are to create a think tank organization to support & encourage new businesses, especially in the tourism industry and to promote entrepreneurial business start-up development & second stage business growth. The partnerships and programs within the expanded TRBC will focus on both of these strategies and provide economic diversification and resilience to the area. 6 V. Threshold Factors A. Eligible Applicant: The applicant is a city The applicant is a county If the applicant is sponsoring a sub-recipient or this is a joint application, describe the relationship and attach a draft agreement between the parties. The City of Rexburg is sponsoring East-Central Idaho Planning and Development Association, Inc. (ECIPDA) as a sub-recipient. These two entities have enjoyed a long-standing relationship for the purposes of economic development. Attached with this application are: 1) An Authorizing Resolution stating that The City of Rexburg sponsors ECIPDA as the sub- recipient and designates ECIPDA as the sub-grantee (see Appendix B-1: Authorizing Resolution) 2) A letter of collaboration from The City of Rexburg describing the City’s commitment to this project (see Appendix G-1: Letter of Collaboration - City of Rexburg) B. Eligible Activities: This project will consist of eligible activities under infrastructure for jobs: 1) new construction of a 2-story 20,000 square foot expansion building on a 0.879-acre lot adjacent to and directly East of the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID) and 2) some remodeling of the existing building on an as-needed basis. Both buildings will be integrated and serve the goals and objectives of the Teton River Business Center, which include creating LMI Jobs. Included with this application are the following documents: DOCUMENT Appendix ECIPDA’s General Lease Agreement for TRBC tenants I-3 ECIPDA’s written Property Management Policies & Practices I-4 Appraisal Report of the project site lot E-1 Real Estate Purchase Agreement E-2 Settlement Statement E-3 Warranty Deed E-4 C. National Objective: C.4. Low- and Moderate-Income Job Creation This project will focus on LMI Job Creation. Included in this application is a job creation agreement between the City of Rexburg and ECIPDA that at least 51% of the jobs on a full- time equivalent basis will be taken by LMI persons (see Appendix J: Job Creation Agreement). ECIPDA leases office space in the Teton River Business Center (TRBC) to anchor tenants, new businesses and entrepreneurs. These tenant businesses are where the job creation comes from. Those jobs range widely in terms of the types of jobs, salary range and benefits offered. However, in general, ECIPDA screens applicants and encourages its tenants to provide high quality jobs with competitive wages and benefits. These tenants will have job applicants complete the Confidential Income Survey (see page 34) to provide evidence supporting the total number of jobs created and those “taken by” LMI persons. 7 One tenant of the TRBC who will benefit from this project and be able to expand its operations is LEGRANDE Corporation. Legrande is an online pharmacy that simplifies the prescription drug market, providing patients with transparent prices and home delivery. They work directly with doctors, insurance plans and drug manufacturers along with other special programs to reduce patients’ out of pocket costs. The business has grown very quickly, especially after Covid started. They expect to inject $2-3 million of private equity into the business through Series A capital in 2022, Series B capital in 2023 and an IPO in 2024. The business also expects to create and/or retain over 100 jobs over the next 9 years. Legrande currently needs more physical space to expand its staff and operations. Its management has requested to occupy more space within the TRBC once the expansion is complete. When they are restabilized after their expansion, they will look to graduate to another location. Included with this application is a Letter of Collaboration from Legrande indicating its willingness to participate in the LMI Job Creation and supporting evidence documentation (see Appendix G- 5: Letter of Collaboration - Legrande). D. Citizen Participation: (respond to questions and provide documentation in Appendix) ICDBG Citizen Participation Plan adopted? _X_ Yes ___ No (This plan will be executed prior to application submission.) Did you hold a public hearing prior to application? Yes Date of Notice 12/3/2021 Date of Hearing 12/15/2021 (See Appendix C: Citizen Participation Plan & Hearing for the draft plan, the public hearing notice and proof of its publication). After the hearing occurs, the meeting minutes and sign- in list of attendees will also be included in Appendix C.) E. Administrative Capacity: 1. Applicant Capacity (1/4 page narrative) Describe the applicant’s (and if applicable the sub-recipient’s) capacity to manage the project. The City of Rexburg (applicant) has received federal funding via numerous State agencies and has successfully administered federally funded projects as well as complied with all the monitoring and reporting requirements. ECIPDA (sub-recipient) has been involved in establishing, securing, & administrating over 300 projects since 1976. a. The experience of the clerk and public works director (years of experience & professional credentials) The City of Rexburg (applicant): Keith Davidson, P.E. has served as Rexburg’s Public Works Director since January 2017 and as the City Engineer since February 2002. He received his Master of Business Administration from Brigham Young University in 2014. Mr. Davidson has been responsible for managing all aspects of project 8 development including preliminary plans, final design, specifications and estimates, as well as project schedules and budgets. Justin V. Beard, P.E. has served as Rexburg’s Assistant Public Works Director since February 2017. Mr. Beard has over 11 years of planning and design experience with a focus on infrastructure projects. He received his Master of Science, Civil Engineering degree from Brigham Young University in 2005. Matt Nielson, Chief Financial Officer, has worked for the City of 14 years. He received his Master of Public Administration from Idaho State University in 2011. He is responsible for overseeing the annual fiscal audit for the City of Rexburg. ECIPDA (sub-recipient): Under the oversight of Ted Hendricks (Economic Development Director), Rick Miller and other qualified staff members, ECIPDA has enjoyed a long-standing relationship with the Idaho Department of Commerce and has successfully completed several projects together over the last 30 years. b. The most recent audited financial statements and if there were any material weaknesses, deficiencies, or findings ECIPDA (sub-recipient) will be responsible for the project both financially and managerially. Therefore, please see Appendix I-2: ECIPDA 2020 Audit Report for ECIPDA’s most recent Audit from FYE 2020. (Refer to page 22 for information on material weaknesses, deficiencies, or findings.) c. The most recent ICDBG grant the applicant managed The City of Rexburg and ECIPDA are both very active in the ICDBG programs. The most recent grant they managed was probably for the Basic American Foods project wherein Rexburg was the applicant and ECIPDA helped with grant administration. d. For sub-recipients, identify the governing structure and if and when last audited. Also, explain the status of the sub-recipient agreement  ECIPDA’s Organizational Chart which defines its governing structure is included in Appendix I-1: ECIPDA Organizational Chart.  ECIPDA’s last completed audit was for FYE 2020, which is included in Appendix I- 1: ECIPDA Organizational Chart. ECPDA’s auditors are presently working on the FYE 2021 audit.  The sub-recipient agreement is documented through the Authorizing Resolution (see Appendix B-1: Authorizing Resolution) and the Job Creation Agreement (see Appendix J: Job Creation Agreement) 9 2. Grant Administrator. (1/4 page narrative and documentation in Appendix) Identify whether the applicant is in the process of procuring a certified grant administrator for the project. Include the necessary procurement documentation in the appendix. As a board member of the regional planning district East-Central Idaho Planning & Development Association (ECIPDA), the City of Rexburg has access to IDC approved grant administrators who have demonstrated capabilities and experience to administer this project. EICPDA currently has three certified grant administrators and has successfully administered ICDBG project grants since 1983 and HUD grants since 1977. ECIPDA is the owner and operator of this project and therefore its staff has served as the project developer and application preparer for this project and will also be the grant administrator. F. Fair Housing: (Documentation in Appendix) The most current Fair Housing Resolution was adopted by the City of Rexburg on March 4, 2020 (see Appendix D: Fair Housing - Resolution). G. Anti-Displacement Resolution: The applicant certified to this by signing the Certifications Page (see Page 41). VII. Program Income: (1/3 page narrative and documentation in appendix) There will be no program income for this project. VIII. Project Description and Property: Include the project description as outlined in the instructions. A. Project Description: (1/2 page narrative) Existing situation: This project will be located in Madison County, which suffers from low per capita income and is considered a Persistent Poverty County. The only alternative for this project would be to simply not expand the TRBC. However, that would be detrimental to the economic growth of the area. Since inception, the TRBC has been operating successfully as a hybrid business incubator and workforce development center. It has assisted hundreds of businesses through training, technical assistance, an environment of stabilization and growth, and affordable office space needed to focus on their growing profits and workforce. Ultimately, these graduated businesses have created several hundreds of jobs for the region. It would be very unfavorable to the local economy not to continue and expand upon that work. Scope of work: The project will be a new 2-story 20,000 square foot expansion building on a 0.879-acre lot adjacent to and directly East of the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID which East-Central Idaho Planning and Development Association, Inc. (ECIPDA) constructed with grant funding approximately 15 years ago and still owns and operates. The scope will include: 1) a slight remodel of the existing building, 2) design of a new building through professional Architectural & Engineering services. Some expected features of the new building are employee work stations, office 10 spaces, 1 traditional classroom, 1 computer classroom, meeting/conference room(s) and open common space. 3) Construction of new building: Cost of construction is expected to be approximately $275 per square foot due to the recent increase in costs of labor and building materials. The new facility will need to include a standby generator. A new parking lot will also be constructed. Once construction is complete, the new building will be 4) Occupied by Tenants. Some of the expected tenants include the College of Eastern Idaho (CEI), the Research & Business Development Center (RBDC), and LEGRANDE Corporation. This project is not expected to be completed in phases. Expected outcomes: ECIPDA anticipates that it will be able to accommodate approximately 65 tenants at one time once the expansion is complete. With the average tenant occupancy of 3 years, about 195 companies will cycle through the center within a 9-year period. Based on the numbers seen in our facilities over the years, we’ve found that each tenant creates an average of 3-5 jobs within a 9-year period so we can extrapolate that approximately 500-1000 new jobs would be created during that period. Also, the division of Workforce Training and Continuing Education at CEI within the TRBC works with service providers at the local and state level to address the occupational training needs and supportive services for underserved populations of the area such as low-income persons, juveniles in correctional facilities, dislocated workers and persons with disabilities. A site plan and preliminary drawings of the project are included in Appendix H-1: Preliminary drawings. B. Project Property & Permits: Answer the following questions and attach documentation. 1. Does the applicant have current ownership or title to property applicable to the project? A copy of the deed is included in Appendix E-4: Warranty Deed. _ X_Yes ___No 2. Will any property be needed for this project? ___Yes _ X_No Status of the purchase: Estimated date of final purchase: What funds will be used to make purchase? 3. Will any easements/or rights-of-way be needed for this project? ___Yes _ X_No Status of the purchase: Estimated date of final purchase: What funds will be used to make purchase? 4. Will any lease be needed for this project? ___Yes _ X_No Status of the lease: Estimated date of lease execution: 5. Is anyone living on the land or in the structures at the proposed site? ___Yes _ X_No 6. Is any business being conducted on the land or in the structures at the proposed site? __Yes _ X_No 7. Are there any businesses, individuals, or farms being displaced as a result of this project? _Yes _ X_No 8. Are there permits that will be needed for the project, i.e.,  well permit ___Yes _ X_No  water rights ___Yes _ X_No 11  land application ___Yes _ X_No  demolition permits ___Yes _ X_No  zoning permit ___Yes _ X_No  air quality permit ___Yes _ X_No  building permit _ X_Yes ____No  other (Impact Fees) _ X_Yes ____No Status of the permits (has application for the permit been submitted, if so, what is projected date of issue?): The building permit and impact fees will be obtained when the A&E design has been approved and the project is to begin construction. 9. Describe the ownership or lease arrangements for the property involved in the project. Both the existing TRBC building as well as the lot on which the new expansion building will be constructed are owned 100% by ECIPDA. IX. Budget Narrative: Describe the source and status of all funding for the project according to the instructions. Provide support documentation in the appendix. (1/2 page narrative) The total project cost will be $6,500,000. A. Government: ECIPDA has already been awarded a RISE grant from USDA-Rural Development of $1,247,312 (See Appendix F-2: USDA-RD Award) and is applying for an EDA ARPA EAA grant for $3,952,688. Both of these grants will be considered Federal funding. B. Local: If this IDOC CDBG grant for $500,000 is awarded, it will be conserved Local funding. C. Private: If the two grants above are awarded, ECIPDA’s contribution will be a total of $800,000 through 1) a land match of $230,000 (the appraised value of the project site lot, which has already been purchased by ECIPDA – see Appendix E: Acquisition Documentation for the Appraisal, Purchase Agreement, Settlement Statement and Warranty Deed) and 2) cash match of $570,000, which has been set aside for the purposed of this project (see Appendix F-3: Cash Match for a Letter of Unencumbered Cash Match). If applicable will the city/county/district allow Commerce staff to access RD apply? ___X___ Yes _______ No ______ N/A 12 X. Idaho Community Development Block Grant Budget Form Costs have not been broken out by which funding source(s) will pay for each line item; therefore, this form is not complete. If that detail is required, it will be determined after EDA funding is secured. However, included on the next page is a Summary Budget (Project Costs) and anticipated Sources of Funds. X. Idaho Community Development Block Grant Budget Form Total *Identify funding source. (USDA-RD Grant, USDA-RD Loan, USACE, DEQ, etc.) **ICDBG funding for “ Administration (1)” cannot exceed 10% of the ICDBG “ Total Costs (2)” Private In-Kind Project Name: Private Cash State* Federal* City In-Kind Cash Applicant or Grantee: ICDBG (1) (2) LINE ITEMS Planning Facilities Plan Administration ** Design Professional Acquisition Soft Cost Construction Materials / Equipment Financing Expenses Legal Property Value TOTAL COSTS 13 Following is a Summary Budget (Project Costs). A detailed cost estimate is also included in Appendix F-1: Detailed Budget. Project Costs Amount 1. Administrative and Legal Expenses $25,000.00 2. Land, Structures, Rights-of-way, Appraisals, etc. $230,000.00 3. Relocation Expenses and Payments $0.00 4. Architectural and Engineering Fees $441,500.00 5. Other Architectural and Engineering Fees (Survey/Geotechnical/Flood Plain Permit) $23,500.00 6. Project Inspection Fees $15,000.00 7. Site Work $524,088.00 8. Demolition and Removal $0.00 9. Building Construction $4,831,575.00 10. Equipment $95,000.00 11. Miscellaneous $15,700.00 12. SUBTOTAL $6,201,363.00 13. Contingencies $298,637.00 Total Project Costs $6,500,000.00 The anticipated sources of funds for the project are summarized as follows: Sources of Funds Amount % of Funds Grant - RISE (Awarded) $ 1,247,312 Grant - EDA (Requesting) $ 3,952,688 Grant/Match - ICDBG (Requesting) $ 500,000 Match - ECIPDA - Cash $ 570,000 Match - ECIPDA - Land $ 230,000 Total Funding $ 6,500,000 100.00% Total Grants $ 5,200,000 80.00% Total Match – ECIPDA & ICDBG $ 1,300,000 20.00% 14 XI. Detailed Cost Analysis 1. Have plans and specs been submitted to regulatory agencies for review? ___Yes _ X_No If yes, list date submitted: If no, list expected date to be submitted: 2. Will project include bid alternatives to meet project budget if necessary? _ X_Yes ___No 3. Are Davis Bacon wage rates applicable to the project? _ X_Yes ___No If yes, are they included in the project costs? _ X_Yes ___No 4. Design Professional Cost Estimate may be found as Line Item 4.1 in Appendix F-1: Detailed Budget as follows: 4.1 Architect & Engineering Fee $441,500.00 XII. Project Schedule Project Activity Date (to be) Completed Documentation in Appendix Design Professional Contract Executed April 2022 Grant Administration Contract Executed N/A – none needed since ECIPDA will do its own. Environmental Release March/April 2022 Bid Document Approval Feb 2023 Bid Opening Mar 2023 Construction Contract Executed April 2023 Start Construction April 2023 Second Public Hearing Dec 2023 Certificate of Substantial Completion April 2025 Furthering Fair Housing Actions April of 2022, 2023, 2024, 2025 504/ADA Accessibility Actions April 2025 LEP Four Factor Analysis April 2025 Construction 100% Complete April 2025 Final Closeout May 2025 In addition to the items above, include the following for Job Creation projects: Project Activity Date Completed Date to be Completed Business’ Job Commitment finalized December 2021 Start Business Construction April 2023 Business Construction 100% Complete April 2025 Job Creation Completed April 2026 15 XIII. Grantee and Sub-recipient Financial Profiles Is the Grantee a (circle one) City County If a sub-recipient, what type of Organization (circle one) Water District Sewer District Water Association For-Profit Company Non-Profit Company Recreation District Fire District Hospital District Other (explain): Economic Development District Section III. All Applicants except Sewer and Water: Grantee or Sub-Recipient: A. Does the organization have taxing authority? ___Yes _ X_No 1. Do you tax? ___Yes _ X_No a) If yes: (1) What is the tax rate? N/A (2) What is the annual tax amount generated? N/A 2. If your organization does not tax, how are operational costs sustained? Examples: bonds, donations, assessments, etc.: ECIPDA receives economic development grants to sustain its economic development activities, as well as project administration and / or grant administration fees and revenues from tenants of its business parks and business development centers such as the TRBC. Section IV. All Applicants (City or County) Furthering Fair Housing As part of the CDBG program, cities and counties are required to further fair housing within your community. In 2016, Commerce and Idaho Housing and Finance Association conducted an assessment to fair housing. The assessment examined policies and practices among Idaho’s cities, counties, and housing industry to determine fair housing issues and contributing factors. For some of these contributing factors there are steps cities and counties can take to achieve the goal of reducing or mitigating the factors, thereby furthering fair housing. Contributing Factor #1 - There is the lack of cities and counties providing for the allowance of group homes in designated residential zones or their narrow definitions of the types of group homes allowed (e.g., nursing and rest homes). Why is this a contributing factor? The regulation may treat residents who are disabled, differently. Therefore; Has the City /County reviewed its zoning codes specific to group homes to ensure that they are in compliance with the Fair Housing Act? (group homes are allowed in residential zones and that the City /County definition of a group home is not too restrictive) _ X_Yes ___ No If No, what steps are you taking to address the issue? ____________________________________________________________________________________ ___________________________________________________________________________ Contributing Factor #2 - Idaho’s fair housing law does not provide protection based on familial status. Familial status is the presence of one or more children under the age of 18, pregnant woman, or someone in the process of acquiring legal custody of a child. Why is this a contributing factor? Residents who are unfamiliar with fair housing law may believe that they are not protected from housing discrimination based on familial status because Idaho’s law does not cover familial status. Does the City / County have an ordinance, resolution, or proclamation that prohibits discrimination against individuals based on their familial status? Note: this is not the same as the Fair Housing Resolution. _ X_Yes ___ No 16 If No, has the council or commission discussed the issue and/or are willing to pass such an ordinance, resolution, or proclamation? Explain. ____________________________________________________________________________________ ___________________________________________________________________________ Contributing Factor #3 – Lack of public transportation in rural areas. Also, insufficient transportation services to support independent and integrated community living for seniors and persons with disabilities. In accordance with Idaho’s Local Land Use Planning Act, has the City or County completed their Comprehensive Plan? _ X_Yes ____ No If Yes, when was the Plan last updated? _In 2020______________________________________ Under the transportation component of the Plan has the City / County evaluated:  Existing (or feasibility of) public transportation options such as – bus or van? _ X_Yes ___ No  Bicycle paths? _ X_Yes ___ No Contributing Factor #4 – Low wages in economically disadvantaged rural areas due to limited economic growth and growth in low wage industries (e.g. service jobs) Does the City or County belong to an economic development organization whose objective is to advance job growth or training opportunities in the area? If yes, identify the organization(s) Yes. The Mayor of the City of Rexburg is a board member of East-Central Idaho Planning and Development Association, Inc. (ECIPDA)_______________________________________________________________ Contributing Factor #5 – Housing in rural areas developed without visitable / accessible features due to limited development in some rural areas and when housing was developed. What is the most current edition of the International Building Code the City / County has adopted? They always adopt the most recent code when it becomes available. What is the most current edition of the International Residential Code the City / County has adopted? They always adopt the most recent code when it becomes available. In addition to the International Residential Code, has the City / County adopted a building standard or ordinance that requires or encourages visit ability in single family housing? (basic requirement: one zero- step entrance, doors with 32 inches of clear passage space, and one bathroom on the main floor you can get into in a wheelchair) ___ Yes _ X_No If Yes, identify when the ordinance or resolution was adopted.___________________________________ 17 XIV. Project Site – Field Notes Review The purpose of this review is to identify potential environmental related issues that could delay, hamper or derail the proposed project. The information will assist in understanding what studies, documentation, and mitigation measures could be applicable in order to commence project construction. 1. Limitations on Activities Is the Grantee planning or in the process of acquiring property for this proposed project? ___Yes _ X_No If yes, is the Applicant aware that land acquired or site work after submission of the ICDBG application is subject to 24 CFR 58.22 Limitation on Activities Requiring Clearance? Meaning once an application for ICDBG funds is submitted, neither Applicant or sub recipient, may commit Non-HUD funds to a project for land acquisition or site work (except for minor testing) before the environmental review is complete, unless the land acquisition or contract is conditioned on completion of the ICDBG environmental review. 2. Historic Preservation Has the SHPO or THPO been notified of the project? _ X_Yes ___No Have tribes with possible cultural and religious sites been notified of the project? _ X_Yes ___No 3. Floodplain Is the project located within a floodway or floodplain designated on a current FEMA map? Check Web site www.store.msc.fema.gov _ X_Yes ___No ___Not Sure If yes what is the floodplain map number? It is attached in Appendix H-2: Site Maps If the project is located in a floodway or floodplain, is the community where the project is taking place a participant in the National Flood Insurance Program. Check Web site www.idwr.idaho.gov/water/flood _ X_Yes ___No 4. Wetlands Are there ponds, marshes, bogs, swamps, drainage ways, streams, rivers, or other wetlands on or near the site? ___Yes _ X_No If yes, has the Army Corps of Engineers (Corps) been notified? _ X_Yes ___No Has the Corps indicated what permit level will be required? ___Yes _ X_No ___N/A 5. Asbestos and/or Lead Based Paint For building renovations, remodeling or demolition, has an asbestos analysis been planned for or conducted? ___Yes ___No _ X_N/A For housing rehabilitation, has a lead based paint assessment been planned for or conducted? ___Yes ___No _ X_N/A 18 6. Noise Sensitive Use Is the project new construction or rehabilitation of noise sensitive use (i.e., housing, mobile home parks, nursing homes, hospitals, and other uses where quiet is integral to the project functions)? ___Yes _ X_No If yes, is the project located within 5 miles of an airport, 1000 feet of a major highway or busy road, or 3,000 feet of a railroad? ___Yes ___No 7. Explosive and Flammable Operations Is the physical structure (not necessarily infrastructure) intended for residential, institutional, recreational, commercial or industrial use? _ X_Yes ___No ___Unknown at this time If yes, are there any above ground explosives, flammable fuels or chemical containers within one mile of the physical structure? ___Yes _ X_No If yes, have you been able to identify what the container is holding and the container’s size? ___Yes ___No 8. Site or Soil Contamination Are there any known hazardous materials, contamination, chemicals, gases, and radioactive substance on or near the site? ___Yes _ X_No ___Unknown at this time If yes, explain During the visual inspection of the site, are there signs of distressed vegetation, vents or fill pipes, storage/oil tanks, stained soil, dumped material, questionable containers, foul or noxious odors, etc. ___Yes _ X_No If yes, explain At this time, are the site’s previous uses known to have been gasoline stations, train depots, dry cleaners, agricultural operations, repair shops, landfill, etc.? ___Yes _ X_No Are other funding agencies requiring the Grantee to perform an American Society for Testing Materials (ASTM) environmental assessment? ASTM assessment involves analysis of site uses and ownership, inspection of site, and possible testing. ___Yes _ X_No (N/A) 9. Other Agency Environmental Reviews Have facilities studies or other environmentally related site reviews been conducted or in the process of being conducted? ___Yes _ X_No If yes, identify who is conducting the review. 19 10. Information Letters The advanced mailing of environmental information letters is sought in an effort to minimize the project’s timeline in waiting for necessary documentation or information. It will assist in earlier responses to required mitigation measures should the proposed project receive grant funding. Check the agencies that have been mailed an environmental information letter. Note: If other funding agencies have sought comment, in writing, from the agencies listed below for the same project, you may not need to send an information letter. Contact your Specialist if other environmental information or scoping letters have been sent. _ X_ Idaho State Historic Preservation Officer _ X_ Tribal Historic Preservation Officer or Tribal Office _ X_ Army Corps of Engineers (if wetlands are applicable) _ X_ U.S. Fish and Wildlife N/A_NOAA Fisheries (if salmon and/or steelhead are applicable) _ X_ Idaho Fish and Game N/A_USDA Natural Resource Conservation Service (if farmlands are applicable) _ X_ Idaho Department of Environmental Quality _ X_ Local Government – Planning Department _ X_ Others: Office of Environmental Assessment, EPA Region 10 _ X_ Others: Idaho Department of Water Resources 20 XV. Review and Ranking Narrative Chapter 9: Economic Development – Job Creation Instructions Economic Development-Job Creation projects are typically for the expansion and/or improvement of public infrastructure or utilities that are necessary to allow for a business to expand and create new jobs. A. Threshold Factors for Economic Development – Job Creation Projects In addition to the requirements set forth in Chapter 5 of this Application Handbook, all Economic Development/Job Creation projects are subject to the following:  The project must benefit low-and-moderate-income persons through job creation. At least 51 percent of all the new jobs created must be “taken by” a member of a low- and-moderate-income family. Family income must be certified by the employee at the time of hire or be documented through a Commerce-approved screening referral agency. The confidential job survey found in Part C of this chapter should be given to each person filling a job. Family income levels must be reported as low, moderate or high. County income levels can be found at http://commerce.idaho.gov/communities/community-grants/grant-resources .  The grantee and business must complete and sign the Job Creation Agreement form found in Part C of this chapter.  The jobs are measured in full-time equivalents (FTE) and must have been created as a direct result of the grant activity. These newly created positions must exist above and beyond the NON-PROFIT’s workforce prior to the grant application.  Any job creation application that costs more than $30,000 per job will not be awarded.  Job creation must occur within two years from completion of the project.  If the ICDBG Grant assistance is under $10,000 per job, then only businesses applying for grant assistance need to be assessed for low-and-moderate-income job creation. If the grant assistance equals $10,000 or more per job, then any business benefiting from the public infrastructure for a period of up to one year after the physical completion of the project must be assessed for low-and-moderate-income job creation.  For projects that involve more than one business, such as industrial parks, the aggregate number of low-and-moderate-income jobs created must equal at least 51 percent. 21 Ranking Criteria B. Quality of New Jobs (100 points): This category measures the quality of the jobs created or retained by comparing the full-time equivalent (FTE) wages or salaries created to the average county starting salary (not including benefits). If the project results in part-time or seasonal positions, take the total number of hours of employment created for a given pay rate and divide it by1,560. This will give you the FTE for those positions. Also note that if the average county wage exceeds the state average wage, Commerce will compare the FTE wages to the state average instead. Points will be awarded based upon the percentage of FTE wages exceeding the county or state average wage. $34,312 Madison County’s average starting annual wage. Average county wage information can be found here: http://lmi.idaho.gov/region __TBD__ Percentage of full-time equivalent jobs that exceed the starting average county/state wages. Writer’s Guide: Fill in blanks above. C. Fringe benefits (100 points): This category measures the quality of benefits the NON- PROFIT provides for its employees. Fifty points will be awarded for an employer-funded health plan and 50 points for an employer-funded retirement plan. ECIPDA leases office space in the Teton River Business Center (TRBC) to anchor tenants, new businesses and entrepreneurs. These tenant businesses are where the job creation comes from. Those jobs range widely in terms of the types of jobs, salary range and benefits offered. However, in general, ECIPDA screens applicants and encourages its tenants to provide high quality jobs with competitive wages and benefits. Identify () fringe benefits provided by the employer or business(es) N/A_ Sick Leave N/A_ Vacation Leave N/A_ Paid Time off (combined sick and vacation leave) N/A_ Health Insurance N/A Medical N/A Dental N/A Vision N/A Prescription N/A_ Retirement Program (requires employer contribution) N/A Pension N/A IRA N/A 401(k) – identify match percentage N/A Other (describe :________________________________) Are fringe benefits provided for part time employees? If Yes, describe below. N/A Writer’s Guide: Fill out the Fringe Benefit Checklist above; include documentation of fringe benefit plans provided by the employer. 22 D. Business risk and management (140 points): Writer’s Guide: Complete a narrative addressing all of the criteria identified below and/or attach any supporting documentation. Narrative length not including attachments should be approximately three pages. 1. History of the NON-PROFIT East-Central Idaho Planning & Development Association, Inc. (ECIPDA) was created in 1976 as a private, non-profit corporation serving nine counties in eastern Idaho, with the purpose of providing community and economic development. East-Central Idaho Development Company (ECIDC) was then created in 1982, to act in concert with ECIPDA to provide small business lending and assistance. They now work together as “The Development Company”. The Development Company is based on voluntary associations of local governments and community organizations. The Board of Directors for each of the companies consists of representatives from each of the participating units of government as well as from various community organizations and private enterprises. These independent Boards direct the work of the corporations. We were organized to assist local entities and citizens in seeking cost-effective solutions to area wide problems; to provide a forum for area wide policy development, community planning, program management, small business lending and technical assistance; and to serve as a coordinating link between cities, counties, small business, and regional, state and federal agencies. Additionally, we provide staffing to the State of Idaho for services through the Workforce Investment Act. In 1992, ECIPDA received the Economic Development Administration’s Region X Award of Excellence, for the creation of the Business Development Center in Rexburg, Idaho. There are now several other Development Centers, created by ECIPDA, working in other areas throughout the region. In 1990, 1994, and 2002, ECIDC received the NADCO Top Production Award for CDCs in the nation, of the same size category. These awards only demonstrate our basic motto, which is: “Our Future Success is built on the efforts we make today.” 2. Market information: What does NON-PROFIT manufacture and or produce? ECIPDA represents Economic Development District VI of Idaho. As such, it participates in projects and activities that increase overall economic development, wealth and growth in the area. It owns and operates the existing Teton River Business Center (TRBC), through which it the leases office space to anchor tenants, new businesses and entrepreneurs. Since inception, the TRBC has been operating successfully as a hybrid business incubator and workforce development center. It has assisted hundreds of businesses through training, technical assistance, an environment of stabilization and growth, and affordable office space needed to focus on their growing profits and workforce. Ultimately, these graduated businesses have created several hundreds of jobs for the region. So, in essence, ECIPDA and the TRBC produce economic development and job creation. 23 Eight of the nine counties within Economic District VI have business incubator and/or development & training centers that ECIPDA established; two of those counties have had multiple centers. Due to our rural nature, all of the centers have to facilitate a wide range of industries, businesses and types of assistance. Therefore, ECIPDA establishes one center to meet all the needs of the rural communities for each county. The model that we have found to be most successful utilizes both general business development and job training as the base services for the community. ECIPDA has found it most effective to focus mainly on technology, general business, biotech and manufacturing but will accommodate most any industry or business. From the three business incubators / training centers that ECIPDA still owns and operates, the district receives approximately 35% of its annual operating revenue and contributes approximately $10 million in net assets to the district. We believe that the establishment and success of the centers described above over the last 30 years provides ample evidence of community support and market demand. Over the last two years is production and sales increasing or decreasing? The TRBC, which ECIPDA constructed approximately 13 years ago and still owns and operates, is now completely full with no vacancy and has been operating at 85 - 90% capacity for several years. Because it has exceeded its capacity, an expansion is necessary to continue serving the area. We anticipate the new expansion building to be at 75% capacity within 24 months after completion. Explain if markets are domestic and/ or international. ECIPDA itself works in local markets, mainly within Idaho’s 9-county Economic District VI. However, tenants of the TRBC and the other incubators / training centers it operates vary greatly and many work in national and even international markets. Does the NON-PROFIT have patents in place? No, ECIPDA does not have any patents in place. The section below (#3 through 8) is to be completed under part B, Business Information. This section is exempt from public disclosure as per Idaho Code 9-340D and can be separate from the application. E. Planning, schedule, cost and field notes review (170 points): Provide a short narrative about the project’s land use planning efforts and preparedness 1. Planning (110 points): Describe the status of each of the following land use planning efforts and permit requirements. Business a. Annexation approval Not Applicable. b. Zoning approval The project site lies within Commercial Zoning Community Business Center (CBC) as is indicated in the “Zoning Map” included in Appendix H-2: Site Maps and so will allow construction of this type of building without a conditional use permit. 24 c. Design reviews ECIPDA collaborated with the City of Rexburg to prepare a Preliminary Engineering Report for the Teton River Business Center (TRBC) expansion project by the City’s engineering staff. Preliminary drawings showing the conceptual general layout of the building and site are attached (see Appendix H-1: Preliminary drawings). Procurement for Architectural and Engineering design services is expected to take place in February / March of 2022. The design phase of the project is expected to commence in April of 2022 and be completed in October / November of 2022. d. Building permits Building Permits for the remodel of the existing building and construction of the new building as well as a Floodplain Development Permit for construction of new building will be requested from the City of Rexburg once the plans are completed and approved. This is expected to be in December of 2022. It is anticipated to take 1 month to receive these permits after submission of the plans. e. Developer’s agreement Not Applicable. f. Historic Preservation or Architectural Review ECIPDA consulted the appropriate SHPO office and received a letter back with comments. In the letter it was stated that “Based on the information received on 5 October 2021, we concur the proposed project actions will have no effect to historic properties.” For more details, please see their response letter in Appendix H-3: Environmental Comments. g. Public frontage improvements This has already been completed. h. Easements / Rights-of-way permits Not Applicable. i. Air quality permits Not Applicable. j. Surface water drainage requirements  ECIPDA contacted the Environmental Protection Agency who responded with the following comments: “We have completed our review of the Teton River Business Center Expansion in Rexburg, Idaho. We find that the project, as described in your submission, will not have a significant adverse impact on the Eastern Snake River Plain Aquifer Area SSA. Therefore, the federal funding for the project may proceed. The finding of no significant adverse impact is conditioned on the assumption that best management practices will be implemented to protect any wells that may be 25 impacted by runoff from the construction site. Please consider in the design of the best management practices for this site that the Idaho Department of Water Resources Find-A-Well website indicates that there is an injection well across the street from the site at the Health and Welfare Department Office. This correspondence only addresses requirements of the EPA Sole Source Aquifer Program. You are responsible for complying with any other federal environmental requirements.”  ECIPDA also contacted the Division of Environmental Quality who provided the following responses: Willie Teuscher, Regional Manager Engineering of DEQ stated, “After our review of the proposed project, DEQ is of the opinion that there will be no significant impact on surface waters or ground water quality if the contractor implements Best Management Practices for handling any storm water runoff to any surface water. The contractor will need to prepare and follow a Storm Water Pollution Prevention Plan (SWPPP).” Alex Bell, Water Quality Manager of DEQ stated, “After reviewing the details of this proposed construction project, DEQ has determined that there shouldn’t be a significant risk of negatively affecting the nearby surface water--if the construction project follows the plans as laid in the document you shared. Please note that a storm water permit may be necessary for this project if it disturbs more than one acre or if this project is part of a larger development that exceeds one acre. Additional information can be found here:” https://www.deq.idaho.gov/water- quality/wastewater/storm-water/  ECIPDA also contacted Idaho Department of Water Resources who responded with the following comments: “The lowest floor in the building must be at or above 4868.0 ft plus any freeboard the City or County may require. §60.3 Flood plain management criteria for flood-prone areas. … Minimum standards for communities are as follows: …”  For more details, please see the responses in Appendix H-3: Environmental Comments. k. Environmental mitigation requirements The only known impact of the project is that it borders the South Fork Teton River and does lie within a flood plain as can be seen on the “FEMA Flood Map” included in Appendix H-2: Site Maps. However, after the Teton Flood in 1976, the Army Corps of Engineers built a dike along the south side of the river which borders the north end of the lot. It can be seen in the “GIS Map” and “Aerial Photograph of Subject Site” included in Appendix H-2: Site Maps below as a bike/walking path on top of the dike. To further mitigate risk of flooding, ECIPDA will be elevating the building site with pit 26 run to build above the flood plain. ECIPDA will also work under the guidance of the City of Rexburg to ensure compliance of all requirements regarding this. l. Other N/A Writer’s Guide: Provide status and timeline of approval for each requirement listed above if applicable. City/County a. Design and engineering of public infrastructure ECIPDA collaborated with the City of Rexburg to prepare a Preliminary Engineering Report for the Teton River Business Center (TRBC) expansion project by the City’s engineering staff. Preliminary drawings showing the conceptual general layout of the building and site are attached (see Appendix H-1: Preliminary drawings). Procurement for Architectural and Engineering design services is expected to take place in February and March of 2022. The design phase of the project is expected to commence in April of 2022 and be completed in October / November of 2022. b. Easements / Rights-of-Way Not Applicable. c. Public frontage improvements Not Applicable. Writer’s Guide: Provide status and timeline of approval for each requirement listed above if applicable. 2. Schedule (15 points): Writer’s Guide: Commerce will use the Project Schedule you completed as part of the general application in Chapter 5. 3. Cost (25 points): Writer’s Guide: Commerce will use Detailed Cost Analysis and Design Professional Cost Estimate you completed in the general application in Chapter 5. 4. Project site - Field Notes Review (20 points): Writer’s Guide: You completed the Project Site - Field Notes Review you completed in the general application as part of Chapter 5. F. Local match (100 points): This category measures the percentage of local match (in-kind, cash, fee waiver, donation, etc.) committed to the project. Writer’s Guide: Commerce will use the Budget Sheet you completed as part of the general application in Chapter 5 in order to determine local match. 27 G. Distressed areas (20 points): Maximum points will be given if the project is located in a SBA historically underutilized business (HUB) zone. Is the community located in a HUB zone? __X_ Yes _____ No Writer’s Guide: Identify if the business is located in a HUB zone. You may find this information at www.sba.gov/hubzone. H. Existing Idaho business (20 points): If the business has a significant Idaho presence it may receive full points. ECIPDA was created in 1976 in Rexburg, Idaho as a private, non-profit corporation serving the 9- county Economic District VI of east-central Idaho, with the purpose of providing community and economic development services. ECIPDA is based on voluntary associations of local governments and community organizations. The Board of Directors consists of representatives from each of the participating units of government as well as from various community organizations and private enterprises. This independent Board directs the work of ECIPDA. We were organized to assist local entities and citizens in seeking cost-effective solutions to area wide problems; to provide a forum for area wide policy development, community planning, program management, small business lending and technical assistance; and to serve as a coordinating link between cities, counties, small business, and regional, state and federal agencies. Additionally, we provide staffing to the State of Idaho for services through the Workforce Investment Act. In 1992, ECIPDA received the Economic Development Administration’s Region X Award of Excellence, for the creation of the Teton River Business [Development] Center in Rexburg, Idaho. There are now several other Development Centers, created by ECIPDA, working in other areas throughout the region. Writer’s Guide: Provide a narrative, describing the business’s Idaho presence. Include how long the business has been in Idaho and if its corporate headquarters is located in Idaho. I. Private leverage (100 points): The dollar investment from the business to construct their facilities, acquire equipment, purchase land, and/or construct public infrastructure. ECIPDA has the financial resources to provide the required match, unencumbered, for this construction project. ECIPDA’s contribution will be a total of $800,000 through 1) a land match of $230,000 (the appraised value of the project site lot, which has already been purchased by ECIPDA – see Appendix E: Acquisition Documentation for the Appraisal, Purchase Agreement, Settlement Statement and Warranty Deed) and 2) cash match of $570,000, which has been set aside for the purposed of this project (see Appendix F-3: Cash Match for a Letter of Unencumbered Cash Match). Writer’s Guide: Commerce will use the Budget Sheet you completed as a part of the general application in Chapter 5. Documentation should also include a letter from the business identifying the value of their private leverage for this project. 28 J. Activities (25 points): Points will be awarded based upon the percentage of the grant committed to acquisition, construction or reconstruction of public infrastructure or to publicly- owned commercial building rehabilitation for the purpose of assisting a business or businesses. Writer’s Guide: Commerce will use the Budget Sheet you completed as a part of the general application in Chapter 5 to make this determination. K. Grant management (25 points): Previous track record of grantee and/or experience of grantee and grant administrator. Writer’s Guide: You answered this in the Administrative Capacity section as part of the general application in Chapter 5. 29 Part B: Business Information This section is exempt from public disclosure as per Idaho Code 9-340D. And can be separate from the application. A. Trends and Outlook: Identify the reasons why the NON-PROFIT sales are expected to grow. Since inception, the TRBC has been operating successfully as a hybrid business incubator and workforce development center. It has provided many start-up companies with the technical assistance and affordable office space needed to focus on their growing profits and workforce. However, the center has been operating at 85 - 90% capacity for several years and has now exceeded its capacity with no vacancy. Therefore, an expansion is necessary to continue serving the area. We anticipate the new expansion building to be at 75% capacity within 24 months after completion. B. Rationale for Expansion: What are the factors for selecting this location (i.e. city infrastructure, transportation routes, access to labor, access to west coast markets, operating costs, education opportunities, etc.) The location of the lot for this expansion project was chosen because it is adjacent to the already successful TRBC building, which has exceeded its capacity. Its close proximity will allow the TRBC to continue to serve this geographical area by growing its business incubator, workforce development and training programs. This location is in the heart of Rexburg, ID where there is existing infrastructure and access to labor and education. C. Financial Capabilities: How is NON-PROFIT financing its expansion? ECIPDA is funding this expansion project (total project cost of $6,500,000) through grants and private match. What is the financing source of the NON-PROFIT’s expansion? ECIPDA has already been awarded a RISE grant from USDA-Rural Development of $1,247,312 (see Appendix F-2: USDA-RD Award) and is applying for an EDA ARPA grant for $3,952,688. Both of these grants will be considered Federal funding. If this IDOC CDBG grant for $500,000 is awarded, it will be conserved Local funding. ECIPDA would provide the required match, unencumbered, for the remainder of the budget: a total contribution of $800,000 through 1) a land match of $230,000 (the appraised value of the project site lot, which has already been purchased by ECIPDA in December of 2020 – see Appendix E: Acquisition Documentation for the Appraisal, Purchase Agreement, Settlement Statement and Warranty Deed) and 2) cash match of $570,000, which has been set aside for the purposed of this project (see Appendix F-3: Cash Match for a Letter of Unencumbered Cash Match). 30 D. Managerial Capabilities: Provide experience and / or resumes of top management. ECIPDA has been involved in establishing, securing, & administrating over 300 projects since 1976. Under the oversight of Ted Hendricks (Economic Development Director), Rick Miller and other qualified staff members, ECIPDA has enjoyed a long-standing relationship with the EDA and has successfully completed several projects together over the last 30 years. ECIPDA has developed, built and managed over 10 business incubator / training centers in our 9- County region over the last 30 years with EDA’s financial support including the TRBC. In fact, the district has received special recognition from the EDA, the Small Business Administration (SBA), and US Department of Agriculture – Rural Development (USDA-RD) in late 1992 and early 1993 for establishing and building this successful network of business training and incubation centers to facilitate small business in Southeast Idaho. ECIPDA also constructed a 7500 Ft2 Daycare Center in partnership with Madison County & TaylorCorp with $600,000 of borrowed funds. When constructed, it was state of the art and the largest daycare in south-eastern Idaho. TaylorCorp employees received childcare services at subsidized rates. ECIPDA owned and operated the daycare for 25 years before selling it to a private business in 2020, which is now operating the daycare successfully today. ECIPDA also constructed, and/or owns and operates three Industrial Parks in the cities of Rexburg, Sugar City, and Saint Anthony. The three business incubator / training centers that ECIPDA still owns and operates are detailed below (further detail about each park and its respective tenants can be provided upon request): - Teton River Business Center | Rexburg, ID | 46 Tenants - Teton Business and Education Center | Driggs, ID | 11 Tenants - Fort Hall Building | Saint Anthony, ID | 3 Tenants Among the many projects mentioned above, there has been at least one building construction project has been successfully completed in each of the counties within Region VI (with the exception of Jefferson), as detailed below: - Bonneville: Idaho Falls - 2 Projects: 1 Technical lab for INL; Business Development Center (several buildings) - Butte: Arco - 1 Project: 1 Building - Clark: Dubois - 1 Project: 1 Building - Custer: Mackay - 1 Project: 1 Manufacturing Facility; 1 Office Building - Freemont: St Anthony - 2 Projects: 2 Buildings - Jefferson: N/A - 0 Projects - Lemhi: Salmon - 2 Projects: 1 building at Salmon Airport; 1 building Downtown - Madison: Rexburg - 3 Projects: 1 building on 2nd Street; 1 building - Teton River Business Center; 1 Daycare facility - Teton: Driggs - 2 Projects: 1 Manufacturing facility; 1 building - Teton Business & Education Center 31 As has been evidenced above, ECIPDA’s staff has the experience and capacity to oversee the construction and implementation of building projects as well as fulfil the financial and progress reporting requirements of EDA awards. Upon completion of this project, ECIPDA has the technical ability to own and operate the proposed new facility and continue to provide business development services therein as it has been since the construction of the existing facility. E. Expansion Information: What is the status of the following. Provide explanation beyond a Yes or No response. Has NON-PROFIT’s property and/or easement purchases been completed? Yes. The lot adjacent to the current Teton River Business Center at 343 East 4th North, Rexburg, ID was purchased by ECIPDA in December 2020 specifically for this project (see Appendix E: Acquisition Documentation for the Appraisal, Purchase Agreement, Settlement Statement and Warranty Deed). Does the NON-PROFIT have design professional firm under contract? No. Procurement for Architectural and Engineering design services is expected to take place in February / March of 2022. ECIPDA plans to follow 2 CFR 200 Procurement Procedures for procuring Architectural & Engineering services for the entire project, from preliminary design through the end of construction. Have site and building plans been prepared? If so please submit site plan and building elevation plan. Preliminary drawings showing the conceptual general layout of the building and site have been prepared (see Appendix H-1: Preliminary drawings). Does the NON-PROFIT have a contractor secured? No. ECIPDA plans to follow federal procurement procedures for procuring its contractor. Procurement for a contractor is expected to take place in February / March of 2023. What public infrastructure or utilities are needed, including upgrades? None. All public infrastructure and utilities are already in place. What is the square footage of the expansion? A new 2-story 20,000 ft2 building will be constructed on a 0.879-acre lot. F. Business plan or prospectus: Not required but if available provide copy. N/A 32 Part C: Pre-Job Documentation 33 1) Circle the Family size 2) Then select the income range on the same row as the family size circled Confidential Income Survey NON-PROFIT Name: Applicant/Employee Name: Job Title: Anticipated Hours to be worked per week: Annual Family Income – Instructions: 1. Using the chart below, CIRCLE the number of people in your family. 2. Read across the same row for the size of family identified and place an X in the box that represents your total annual family income range, prior to you being hired. *Note: your total annual family income is the same as the adjusted gross income as defined under Internal Revenue Service (IRS) annual income tax Form 1040 forms. # of people in Family TOTAL ANNUAL FAMILY INCOME RANGE 1 $0 to $12,880 $12,881 to $20,850 $20,851 and Above 2 $0 to $17,420 $17,421 to $23,800 $23,801 and Above 3 $0 to $21,960 $21,961 to $26,800 $26,801 and Above 4 $0 to $26,500 26,501 to $29,750 $29,751 and Above 5 $0 to $31,040 $31,041 to $32,150 $32,151 and Above 6 $0 to $34,550 $34,551 and Above 7 $0 to $36,900 $36,901 and Above 8 $0 to $39,300 $39,301 and Above Certification: I hereby certify that the total income for my family is the level identified above, and that I am employed in the job described above. Name: Date: 34 1) Marque# de personas en su familia 2) Despues, marque el rango anual de ingresos familiars de la misma fila. Encuesta Confidencial de Ingresos Nombre de empresa: Nombre del solicitante/empleado Título profesional: Horas previstas para ser trabajadas por semana: El ingreso total de la familia – Instrucciones: 1. Utilizando la tabla siguiente, haga un círculo marcando el numero de personas en su familia. 2. Mire hacia la derecha y marque en ingreso salarial annual de su familia con la cantidad en dólares que se encuentra en el recuadro de esa misma fila, antes de ser contratado. *Nota: El ingreso total de la famila es el mismo que el ingreso bruto ajustado que aparece en la declaracíon de impuestos con el IRS (formularios 1040). # de personas en su familia Rango anual total de ingresos familiares 1 $0 to $12,880 $12,881 to $20,850 $20,851 and Above 2 $0 to $17,420 $17,421 to $23,800 $23,801 and Above 3 $0 to $21,960 $21,961 to $26,800 $26,801 and Above 4 $0 to $26,500 26,501 to $29,750 $29,751 and Above 5 $0 to $31,040 $31,041 to $32,150 $32,151 and Above 6 $0 to $34,550 $34,551 and Above 7 $0 to $36,900 $36,901 and Above 8 $0 to $39,300 $39,301 and Above Certificación: Certifico que el ingreso total para mi familia es el nivel identificado arriba, y que estoy empleado en el trabajo descrito arriba Nombre: Fecha: 35 ATTACHMENT “A” – Jobs to be Created NON-PROFIT ____________________________________________ Job Title Full or part time position Wage or Salary Range Identify the special skills, certification or education, if any, that are required for the specific job. Number of People Required (FTE), per job title Approximate Date of Hire Likely a job taken by an LMI person - Yes/No (ECIPDA will provide this information based on jobs indicated by LEGRANDE Corporation prior to application submission.) 36 Part D: Post-Job Documentation 37 Section 3 Summary Report Economic Opportunities for U.S. Department of Housing and Urban Development Office of Fair Housing Low- and Very Low-Income Persons and Equal Opportunity See back of page for Public Reporting Burden statement 1. Recipient Name & Address: (street, city, state, zip) 2. ICDBG Grant #: (contract/award no.) 3. Dollar Amount of Award: 4. Contact Person: 5. Phone: (include area code) 6. Reporting Period: 7. Date Report Submitted: 8. Program Code: * (Use a separate sheet for each program code) 9. Program Name: Part I: Employment and Training (** Include New Hires in columns E & F.) A Job Category B Number of New Hires C Number of New Hires that are Sec. 3 Residents D** Number of Section 3 Employees & Trainees Managers Supervisors Technicians Sales Craft Workers Assembly Line Operator Laborers Service Workers Production Truck Drivers Warehouse Others (list) Total ____________________________________________________________________________________________________ ref 24 CFR 135 8 38 Part II: Contracts Awarded 1. Construction Contracts: A. Total dollar amount of all contracts awarded on the project $ B. Total dollar amount of contracts awarded to Section 3 businesses $ C. Percentage of the total dollar amount that was awarded to Section 3 businesses % D. Total number of Section 3 businesses receiving construction contracts 2. Non-Construction Contracts: (i.e. Administration, Engineering, Architectural, etc.) A. Total dollar amount of all non-construction contracts awarded on the project/activity $ B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $ C. Percentage of the total dollar amount that was awarded to Section 3 businesses % D. Total number of Section 3 businesses receiving non-construction contracts Part III: Summary Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, toward low- and very low-income persons, particularly those who are recipients of government assistance for housing. (Check all that apply.) ___ Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site, contacts with community organizations and public or private agencies operating within the metropolitan area (or nonmetropolitan county) in which the Section 3 covered program or project is located, or similar methods. ___ Participated in a HUD program or other program which promotes the training or employment of Section 3 residents. ___ Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the definition of Section 3 business concerns. ___ Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located. ___ Other; describe below. ____________________________________________________________________________________________ Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u., mandates that the Department ensure that employment and other economic opportunities generated by its housing and community development assistance programs are directed toward low- and very low income persons, particularly those who are recipients of government assistance for housing. The regulations are found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients’ compliance with Section 3, to assess the results of the Department’s efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by recipients as a self-monitoring tool. The data is entered into a data base and will be analyzed and distributed. The collection of information involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair Housing Act and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying information is not included. ________________________________________________________________________________________________________ ref 24 CFR 135 39 Job Creation Documentation as of Close-out Last Name First Name Title / Classification Hourly Wage earned Employment Unemployment Low Mod Above Male Female 1 e.g. Smith John Operator 10.50$ X X 2 e.g. Smith Jane Miller 12.75$ X X 3 e.g. Blanco Juan Supervisor 18.50$ X X 4 e.g. Polk Sam Operator 10.50$ X 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total 11.63$ 0 0 2 0 1 2 2 Gender Project Name ____________________________________________________ Income LevelNew Hires Employment Status Prior to Being Hired Business Name __________________________________________________________ 40 XVI. CERTIFICATIONS I certify the data in this application is true and correct, that this document has been duly authorized by the governing body of the City of Rexburg and we will comply with the following laws and regulations if this application is approved and selected for funding. Specific CDBG Provisions: Section 110 of the Housing and Community Development Act of 1974, as amended, by the Housing and Urban-Rural Recovery Act of 1983 and the Housing and Community Development Act of 1987, 24 CFR 570.603, and State regulations regarding the administration and enforcement of labor standards; It will comply with all parts of Title I of the Housing and Community Development Act of 1974, as amended, which have not been cited previously as well as with other applicable laws; Conduct and administer its program in conformance with Title VI and Title VIII, and affirmatively further fair housing; Provide opportunities for citizen participation comparable to the state’s requirements (those described in Section 104(a) of the Act, as amended); Not use assessments or fees to recover the capital costs of CDBG funded public improvements from low and moderate income owner occupants; Minimize displacement as a result of activities assisted with CDBG funds by following the Idaho Department of Commerce’s anti-displacement and relocation assistance plan and the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended (49 CFR Part 24); Policy on the Prohibition of the Use of Excessive Force: It hereby prohibits any law enforcement agency operating within its jurisdiction from using excessive force against any individuals engaged in nonviolent civil rights demonstrations. In addition, it hereby agrees to enforce any applicable state or local laws against physically barring entrances or exits from a facility or location that is the subject of a non-violent protest demonstration. It further pledges enforcement of this policy within its jurisdiction and encourages any individual or group who feels that it has not complied with this policy to file a complaint. Civil Rights and Equal Opportunity Provisions: Title VI of the Civil Rights Act of 1964 (Public Law 88-352), and the regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in the United State shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subject to discrimination under any program or activity for which the applicant received Federal financial assistance and will immediately take any measures necessary to effectuate this assurance. If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the applicant, this assurance shall obligate the applicant, or in the case of any transfer of such property, any transferee, for the period during which the real property or structure is used for a purpose for which Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; The Fair Housing Act (previously known as Title VIII of the Civil Rights Act of 1968) (Public Law 90-284), as amended, administering all programs and activities relating to housing and community development in a manner to affirmatively further fair housing in the sale or rental of housing, the financing of housing, and the provision of brokerage services; 41 Section 109 of Title I of the Housing and Community Development Act of 1987, as amended, and the regulations issued pursuant thereto (24 CFR 570.602), which provides that no person in the United States shall, on the grounds of race, color, national origin, religion, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to otherwise qualified handicapped individuals as provided in Section 504 of the Rehabilitation Act of 1973 shall also apply to any such program activity; Executive Order 11063, as amended by Executive Order 12259 on equal opportunity in housing and non- discrimination in the sale or rental of housing built with Federal assistance, and requiring that programs and activities relating to housing and urban development be administered in a manner affirmatively to further the goals of Title VIII of the Civil Rights Act of 1968; Executive Order 11246 as amended by Executive Order 11375 and 12086, and the regulations issued pursuant hereto (24 CFR Chapter 60), which provides that no person shall be discriminated against on the basis of race, color, religion, sex or national origin in all phases of employment during the performance of Federal or federally assisted construction contracts. Contractors and subcontracts on Federal and federally assisted construction contracts shall take affirmative action to insure fair treatment in employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation and selection for training and apprenticeship; It will comply with Section 3 of the Housing and Urban Development Act of 1968, as amended, requiring that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by, persons residing within the unit of local government; Property Acquisition Provision: It will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and Federal implementing regulation at 49 CFR Part 24, and the requirements of section 570.496a and it is following a residential anti-displacement and relocation assistance plan under section 104(d) of Title I of the Housing & Community Development Act of 1974, as amended; Environmental Standards and Provisions: Its chief executive official: 1) Consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. S 4321 et seq.) and other provisions of Federal law, as specified at 24 CFR 58.1 (a) (3) and (a) (4), which further the purposes of NEPA insofar as the provisions of such Federal law apply to the Idaho Community Development Block Grant Program; and 2) Is authorized and consents on behalf of the applicant and himself/herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his/her responsibilities as such an official. It will comply with: 1) The National Environmental Policy Act of 1969 (42 U.S.C. S 4321 et seq.) and 24 CFR Part 58, and in connection with its performance of environmental assessments under the National Environmental Policy Act of 1969, comply with Section 106 of the National Historic Preservation Act of 1966 (16 U.S.C. 470), Executive Order 11593, and the Preservation of Archaeological and Historical Data Act of 1966 (U.S.C. 469a-1, et seq.) by: a) Consulting with the State Historic Preservation Officer to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects (see 36 CFR Part 800.8) by the proposed activity; and 42 b) Complying with all requirements established by the State and to avoid or mitigate adverse effects upon such properties. 2) Executive Order 11988, Floodplain Management; 3) Executive Order 11990, Protection of Wetlands; 4) Endangered Species Act of 1973, as amended, (16 U.S.C. Section 1531 et seq.); 5) The Fish and Wildlife Coordination Act of 1958, as amended, (16 U.S.C. Section 661 et seq.); 6) The Wild and Scenic Rivers Act of 1968, as amended, (16 U.S.C. Section 1271); 7) The Safe Drinking Water Act of 1974, as amended, (42 U.S.C. Section 300f et seq.); 8) Section 401(f) of the Lead-Based Paint Poisoning Prevention Act, as amended, (42 U.S.C. Section 4831 (b); 9) The Clean Air Act of 1970, as amended, (42 U.S.C. Section 7401 et seq.); 10) The Federal Water Pollution Control Act of 1972, as amended, (33 U.S.C. Section 1251 et seq.); 11) The Clean Water Act of 1977 (Public Law 95-217); and 12) The Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et. seq.); 13) Section 202(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) as it relates to the mandatory purchase of flood insurance for special flood hazard areas. Labor Standards and Provisions: The provisions of the Davis-Bacon Act (46 U.S.C. S 276a-5) with respect to prevailing wage rates (except for projects for rehabilitation of residential properties of fewer than eight units); Contract Work Hours and Safety Standards Act of 1962, 40 U.S.C. 327-332, requiring that mechanics and laborers (including watchmen and guards) employed on federally assisted contracts be paid wages of not less than one and one-half times their basic wage rates for all hours worked in excess of forty in a work- week; Federal Fair Labor Standards Act, 29 U.S.C. S 102 et seq., requiring that covered employees be paid at least the minimum prescribed wage, and also that they be paid one and one-half times their basic wage rate for all hours worked in excess of the prescribed work-week; Anti-kickback (Copeland) Act of 1934, 18 U.S.C. S 874 and 40 U.S.C. S 276c, which outlaws and prescribes penalties for “kickbacks” of wages in federally financed or assisted construction activities; Anti-Lobbying Certification: No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned to any person for influencing or attempting to influence an officer or employee of any federal agency, a member of, employee of a member of, officer of or employee of Congress in connection with the awarding of any federal contract, the making of any federal grant or loan, the entering into any cooperative agreement and the extension, renewal, modification or amendment of any federal contract, grant, loan or cooperative agreement. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency, a member of, employee of a member of, officer of or employee of Congress in connection with this federal grant, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions. The applicant shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was place when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction 43 imposed by Section 1352, Title 31, US Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Administrative and Financial Provisions: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Miscellaneous: It will establish safeguards to prohibit employees from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties; It will comply with the provisions of the Hatch Act, which limits the political activity of employees; It will give State, HUD and the Comptroller General through any authorized representatives, access to and the right to examine all records, books, papers, or documents related to the grant; and The local government hereby certifies that it will comply with the above stated assurances. Signed by Chief Elected Official Date Jerry Merrill, Mayor of Rexburg Printed Name (This agreement will be executed if EDA funding goes through and this ICDBG application is moved forward.) 44 APPENDIX A: National Objective Documentation A-1 Madison County Profile A-2 Madison County Distress - StatsAmerica A-3 Madison County Persistent Poverty A-4 2019 Census - District VI A-5 HUB Zone 45 Last Updated: November 2021 Madison County Labor Force And Economic Profile Unemployment Rate (Oct 2021) Median Household Income (2019)$39,160 40,318 23,753 1.5% Civilian Labor Force (Oct 2021) Population (2020) Per Capita Personal Income (2019)$28,780 30.9%Poverty Rate (2019) Madison County Economic Overview 46 1. County Demographic Characteristics, 2019 2. Labor Force Madison County Labor Force And Economic Profile Madison County Total Population 39,100 White alone, not hispanic 34,525 Black or African American alone, not hispanic 65 Native American alone, not hispanic 53 Asian alone, not hispanic 610 Hispanic, or Latino (of any race)2,964 Male 19,881 Female 19,219 Median age 23.5 Under 18 years 10,679 Over 18 years 28,421 Over 65 years 2,590 16,345 0.1% 100.0% 7.6% 49.2% 27.3% 72.7% 41.8% 88.3% 0.2% 1.6% 50.8% - 6.6% 1,717,750 0.7% 82.0% 1.1% 1.3% 12.5% 50.1% 49.9% 40.3 25.7% 15.4% 38.1 64.9% State of Idaho (%) 21 years and over Race and Ethnicity Gender Age Less than 9th grade 242 High school graduate (with equivalencies)2,485 Some college, no degree 4,445 Associate's degree 2,799 Bachelor's degree 4,103 Graduate or professional degree 1,845 Educational Attainment (Population 25 years and Over) 2.2% 17.8% 16.9% 6.4% 12.1% 5.8% 0.6% 6.4% 11.4% 7.2% 10.5% 4.7% $39,160 -$56,605Median Household Income United States (%) 324,697,795 60.7% 12.3% 0.7% 5.5% 18.0% $62,843 8.4% 13.4% 5.8% 13.9% 18.3% 3.5% 15.6% 67.9% 77.4% 22.6% 50.8% 49.2% 74.3% Madison County (%) Source: US Census Bureau, American Community Survey 2019 5-Year Estimates Labor Force Employment Unemployed Unemployment Rate 23,753 23,399 354 1.5%October 2021 24,040 23,311 729 3.0%October 2020 Source: Idaho Department of Labor Page 2 of 8Idaho Department of Labor, Communications & Research 47 Madison County Labor Force And Economic Profile 3. Seasonally-Adjusted Unemployment Rate, 2009 - Current 0% 2% 4% 6% 8% 10% 12%2009201020112012201320142015201620172018201920202021-012021-022021-032021-042021-052021-062021-072021-082021-092021-10County State of Idaho United States 4. Seasonally-Adjusted Labor Force and Employment, 2009 - Current 0 5,000 10,000 15,000 20,000 25,000 2009201020112012201320142015201620172018201920202021-012021-022021-032021-042021-052021-062021-072021-082021-092021-10Labor Force Employment Source: Idaho Department of Labor Source: Idaho Department of Labor Page 3 of 8Idaho Department of Labor, Communications & Research 48 Madison County Labor Force And Economic Profile 5. Industry Employment and Wages - 2010, 2019 and 2020 Supersector Average Wages Average Employment Average Employment Average Wages Average Employment Average Wages 202020102019 Total Covered Wages $34,31215,83711,750 $27,836 15,724 $32,210 Natural Resources and Mining $34,453357336$28,826 350 $32,948 Construction $35,745622371$27,677 608 $35,593 Manufacturing $37,6641,023701$32,025 1,057 $36,268 Trade,Transportation, and Utilities $33,2213,2003,152 $23,318 3,120 $31,658 Information $23,07915381$22,732 131 $22,803 Financial Activities $39,080656438$27,366 646 $33,323 Professional and Business Services $27,3962,6611,215 $23,447 2,431 $25,525 Education and Health Services $44,5224,7603,754 $37,334 4,746 $42,438 Leisure and Hospitality $12,5131,5301,081 $10,154 1,738 $11,202 Other Services $22,346293157$19,033 313 $20,740 Public Administration $42,257576450$32,487 577 $38,564 Source: Idaho Department of Labor Page 4 of 8Idaho Department of Labor, Communications & Research 49 Madison County Labor Force And Economic Profile 6. Top Employers, 2020 7. Real Per Capita Income, 2009 - 2019 0 10,000 20,000 30,000 40,000 50,000 60,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 County State of Idaho United States Source: U.S. Bureau of Economic Analysis Employer Ownership Range Brigham Young University-idaho Private 1,000+ Madison School District Local Gov 500 - 999 Madison Memorial Hospital Local Gov 500 - 999 Wal-mart Private 250 - 499 Melaleuca Private 250 - 499 Progrexion Private 250 - 499 City Of Rexburg Local Gov 250 - 499 Madison County Local Gov 100 - 249 The Homestead Senior Living Private 100 - 249 Sugar-salem School District Local Gov 100 - 249 NOTE: Only employers that have given the Department permission to release employment range data are listed. Source: Idaho Department of Labor Page 5 of 8Idaho Department of Labor, Communications & Research 50 Madison County Labor Force And Economic Profile 9. Top 10 Cities Where People Who Work in Madison County Live, 2018 8. Labor Force Commuting Patterns, 2019 It is estimated that 8,240 workers lived and worked in Madison County in 2019. Another 7,668 workers were employed in Madison County but lived outside, while 6,403 workers commuted to other counties for work. Source: US Census BureauLongitudinal Employer-Household Dynamics (LEHD) All Jobs PercentageCity of Residence 4,924 31.0%Rexburg 960 6.0%Idaho Falls 492 3.1%St. Anthony 436 2.7%Sugar City 325 2.0%Pocatello 286 1.8%Ammon 286 1.8%Rigby 91 0.6%Blackfoot 82 0.5%Lincoln 78 0.5%Chubbuck Note: "All Jobs" includes private and public sector jobs. It also includes a count of workers with multiple jobs. Source: US Census Bureau Page 6 of 8Idaho Department of Labor, Communications & Research 51 Madison County Labor Force And Economic Profile 10. Top 10 Cities Where People Who Live in Madison County Work, 2018 Bonang Seoela, Labor Economist, Idaho Department of Labor • 420 Falls Ave., Twin Falls, ID 83301 • (208) 332-3570 ext. 3820 •bonang.seoela@labor.idaho.gov • Labor Market Information website: lmi.idaho.gov For more Information, Contact: PercentageAll JobsCity of Employment Rexburg 6,709 45.8% Idaho Falls 1,671 11.4% Boise City 457 3.1% Sugar City 324 2.2% Ammon 239 1.6% Pocatello 238 1.6% Rigby 217 1.5% St. Anthony 200 1.4% Meridian 164 1.1% Twin Falls 150 1.0% Note: "All Jobs" includes private and public sector jobs. It also includes a count of workers with multiple jobs. Source: US Census Bureau Page 7 of 8Idaho Department of Labor, Communications & Research 52 53 54 55 Teton River Business Center Madison County – Persistent Poverty For purposes of determining Special Need, the Idaho Department of Commerce – Economic Development Administration (EDA) uses the term “Persistent Poverty County” to mean any county that has had 20 percent or more of its population living in poverty over the past 30 years, as measured by the 1990 and 2000 decennial censuses and the most recent Small Area Income and Poverty Estimates. (https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695) Below are the poverty statistics which qualify for Madison County as a Persistent Poverty County. Percent of Population with Incomes Below Poverty: 1990 Decennial Census 28.6% 2010 SAIPE 28.4% 2000 Decennial Census 30.5% 2019 SAIPE 27.4% 56 QUICK FACTS 9 COUNTIES (SOURCE: US CENSUS 2010 & 2019 ESTIMATES)Fact Fact Note Jefferson Fremont Custer Butte Bonneville Clark Teton Madison Lemhi Totals Population estimates, July 1, 2019, (V2019)29,871 13,099 4,315 2,597 119,062 845 12,142 39,907 8,027 229,865 Population estimates base, April 1, 2010, (V2019)26,144 13,237 4,366 2,893 104,294 982 10,165 37,548 7,936 207,565 Population, percent change - April 1, 2010 (estimates base) to July 1, 2019, (V2019)14.30%-1.00%-1.20%-10.20%14.20%-14.00%19.40%6.30%1.10%Change Pop Population, Census, April 1, 2010 26,140 13,242 4,368 2,891 104,234 982 10,170 37,536 7,936 207,499 -10.74% Population, Census, April 1, 2020 X X X X X X X X X Persons under 5 years, percent 8.30%6.30%4.70%5.70%8.30%5.60%5.80%9.70%4.90% Persons under 18 years, percent 33.70%24.70%17.20%24.30%30.30%22.00%23.80%26.80%18.60% Persons 65 years and over, percent 11.60%17.50%30.10%23.60%13.50%19.40%13.10%7.10%30.60% Female persons, percent 48.90%47.60%48.90%49.00%50.10%48.90%47.50%49.30%49.50% White alone, percent 95.60%96.00%95.90%95.70%94.40%92.30%96.60%95.10%95.70% Black or African American alone, percent (a)0.50%0.80%0.60%0.40%0.70%1.20%0.50%0.80%0.40% American Indian and Alaska Native alone, percent (a)1.40%1.10%1.00%1.10%1.30%3.10%0.90%0.50%1.30% Asian alone, percent (a)0.60%0.40%0.30%0.30%1.10%1.10%0.60%1.50%0.40% Native Hawaiian and Other Pacific Islander alone, percent (a)0.10%0.40%Z 0.20%0.10%0.20%0.20%0.30%Z Two or More Races, percent 1.70%1.30%2.20%2.30%2.30%2.10%1.40%1.90%2.20% Hispanic or Latino, percent (b)10.60%12.50%4.60%5.40%13.40%44.50%16.70%7.80%3.50% White alone, not Hispanic or Latino, percent 86.50%84.90%91.80%90.90%82.50%51.20%81.30%88.20%93.10% Veterans, 2015-2019 1,443 686 539 211 6,126 28 289 873 910 Foreign born persons, percent, 2015-2019 3.80%6.00%0.60%0.70%5.30%33.10%7.80%4.60%2.20% Housing units, July 1, 2019, (V2019)9,768 9,186 3,161 1,381 44,564 562 6,172 15,366 4,948 Owner-occupied housing unit rate, 2015-2019 80.70%81.20%78.60%82.30%69.60%62.40%77.70%44.60%77.60% Median value of owner-occupied housing units, 2015-2019 $203,700 $169,900 $191,600 $128,900 $181,200 $98,100 $346,600 $219,100 $177,000 Median selected monthly owner costs -with a mortgage, 2015-2019 $1,296 $1,125 $1,151 $878 $1,214 $930 $1,632 $1,274 $1,145 Median selected monthly owner costs -without a mortgage, 2015-2019 $354 $346 $282 $345 $359 $355 $443 $388 $297 Median gross rent, 2015-2019 $796 $798 $608 $656 $819 $592 $881 $723 $657 Building permits, 2020 291 136 11 2 880 X 247 648 36 Households, 2015-2019 8,791 4,347 1,774 967 39,768 290 3,707 11,016 3,582 Persons per household, 2015-2019 3.24 2.87 2.29 2.62 2.84 3.07 3.08 3.51 2.13 Living in same house 1 year ago, percent of persons age 1 year+, 2015-2019 89.60%85.60%87.20%90.20%80.90%78.90%83.10%64.40%81.90% Language other than English spoken at home, percent of persons age 5 years+, 2015-2019 9.20%11.10%1.90%1.60%11.40%48.90%14.40%11.00%2.00% Households with a computer, percent, 2015-2019 94.60%88.80%85.90%91.50%94.40%79.00%93.30%97.00%85.10% Households with a broadband Internet subscription, percent, 2015-2019 86.40%80.20%76.40%80.80%88.20%66.60%90.40%76.00%76.70% High school graduate or higher, percent of persons age 25 years+, 2015-2019 90.20%86.60%89.40%92.80%92.00%59.80%93.80%95.90%92.10% Bachelor's degree or higher, percent of persons age 25 years+, 2015-2019 24.70%21.70%24.40%16.20%31.30%12.20%41.00%36.40%22.90% With a disability, under age 65 years, percent, 2015-2019 7.00%9.90%16.80%10.20%11.10%3.10%4.50%6.10%10.30% Persons without health insurance, under age 65 years, percent 14.40%15.10%15.80%13.70%11.50%27.20%17.40%10.90%13.80% In civilian labor force, total, percent of population age 16 years+, 2015-2019 67.30%56.50%42.30%49.10%64.00%60.50%70.30%66.60%51.20% In civilian labor force, female, percent of population age 16 years+, 2015-2019 56.60%48.10%42.90%42.00%55.40%47.30%61.90%59.40%47.90% Total accommodation and food services sales, 2012 ($1,000)(c)D 10,749 D D 198,320 D 15,028 32,324 10,344 Total health care and social assistance receipts/revenue, 2012 ($1,000)(c)D 12,824 D D 845,957 D 21,075 131,833 28,230 Total manufacturers shipments, 2012 ($1,000)(c)214,840 5,729 D X 630,968 D D 184,638 12,159 Total merchant wholesaler sales, 2012 ($1,000)(c)D 114,525 X D 3,049,582 D D 221,191 D Total retail sales, 2012 ($1,000)(c)116,388 73,396 39,421 21,795 1,956,459 D 66,098 370,688 98,352 Total retail sales per capita, 2012 (c)$4,362 $5,665 $9,102 $7,954 $18,339 NA $6,576 $9,897 $12,677 57 Mean travel time to work (minutes), workers age 16 years+, 2015-2019 24 25 18.3 18.6 19.3 25.2 29.3 14.2 15.7 Median household income (in 2019 dollars), 2015-2019 $63,048 $58,065 $40,875 $42,132 $60,615 $46,154 $74,216 $39,160 $39,324 Per capita income in past 12 months (in 2019 dollars), 2015-2019 $24,677 $23,577 $23,805 $30,294 $28,671 $18,860 $31,191 $16,585 $25,075 Persons in poverty, percent 9.20%12.70%13.00%14.60%9.30%14.50%7.70%27.40%13.50% Total employer establishments, 2019 561 329 175 54 3,681 15 545 971 298 Total employment, 2019 4,287 1,784 766 334 54,154 81 2,700 19,380 1,914 Total annual payroll, 2019 ($1,000)154,564 71,740 28,815 10,136 2,656,200 2,790 118,008 483,600 62,602 Total employment, percent change, 2018-2019 2.50%2.90%-3.00%-3.20%5.90%3.80%3.10%2.20%0.90% Total nonemployer establishments, 2018 2,488 1,230 464 195 9,129 76 1,647 3,199 795 All firms, 2012 1,918 1,325 433 160 11,115 47 1,559 2,759 797 Men-owned firms, 2012 975 671 196 71 5,369 33 713 1,154 369 Women-owned firms, 2012 485 308 137 40 2,962 F 596 681 325 Minority-owned firms, 2012 123 98 F F 708 F 97 90 F Nonminority-owned firms, 2012 1,739 1,195 405 144 9,824 41 1,411 2,538 734 Veteran-owned firms, 2012 87 131 68 F 836 F 100 108 41 Nonveteran-owned firms, 2012 1,725 1,126 335 144 9,407 41 1,371 2,433 721 Population per square mile, 2010 23.9 7.1 0.9 1.3 55.9 0.6 22.6 80 1.7 Land area in square miles, 2010 1,093.50 1,863.53 4,920.94 2,231.67 1,866.08 1,764.19 449.46 469.21 4,563.39 FIPS Code "16051""16043""16037""16023""16019""16033""16081""16065""16059" NOTE: FIPS Code values are enclosed in quotes to ensure leading zeros remain intact. Value Notes None Fact Notes (a) (c) (b) Value Flags - F D N FN X S NA Z Not available Value greater than zero but less than half unit of measure shown Fewer than 25 firms Suppressed to avoid disclosure of confidential information Data for this geographic area cannot be displayed because the number of sample cases is too small. Footnote on this item in place of data Not applicable Suppressed; does not meet publication standards Includes persons reporting only one race Economic Census - Puerto Rico data are not comparable to U.S. Economic Census data Hispanics may be of any race, so also are included in applicable race categories Either no or too few sample observations were available to compute an estimate, or a ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest or upper interval of an open ended distribution. 58 Small Business Administration | HUBZone Assertion Report generated Dec 10, 2021 21:31 UTC HUBZone Qualification Report View on HUBZone Map 343 E 4th N, Rexburg, ID 83440, USA 43.834750°, -111.773954° Qualified HUBZone Census Tract County Designation Details Census Tract Tract ID:16065950400 County:Madison County State:ID County County ID:16065 County:Madison County State:ID Page 1 of 159 APPENDIX B: Sub-Recipient Agreement (Authorizing Resolution) 60 61 APPENDIX C: Citizen Participation Plan & Hearing C-1 Citizen Participation Plan C-2 Public Hearing Notice & Publication 62 XVIII. A. Idaho Community Development Block Grant (CDBG) Citizen Participation Plan City of Rexburg Pursuant to citizen participation requirements for Idaho Community Block Grant participants, the City of Rexburg hereby certifies the following activities will be completed: Provide for and encourage citizen participation, particularly for low and moderate income persons who reside in slum or blighted areas and areas in which CDBG funds are proposed to be used. Provide technical assistance to group’s representative of low and moderate income persons that request assistance in developing proposals in accordance with procedures developed by the department. Such assistance need not include providing funds to such groups. Hold a minimum of two public hearings, each at a different stage of the program, for the purpose of obtaining citizens’ views. The first public hearing shall include a description of the proposed project, scope of work, budget, schedule, location, and beneficiaries. Any earned program income must also be noted. The application, related documents, and the Application Handbook shall be available for citizens to review. The second public hearing on the status of funded activities and accomplishments to date; a general description of remaining work and a general description of changes made to the CDBG project scope of work, budget, schedule, location or beneficiaries. A public hearing shall also be held in the event CDBG project activities are added, deleted or substantially changed from the application. Substantially changed means changes made in terms or purpose, scope, location or beneficiaries as defined by the CDBG program. Provide reasonable and timely access to local meetings, information and records pertaining to the local government’s proposed and actual use of CDBG funds. Public hearings shall be conducted at times and locations convenient to local citizens. Public hearings shall be advertised in a local newspaper no less than seven (7) twenty-four (24) hour days prior to the hearing date. If there is no local newspaper, public notification will occur through some other method where there is wide distribution to citizens within the project area. The Community Development staff must approve this method. A copy of the publication and/or affidavit of publication shall be submitted to the department. The notice should identify all of the topics to be addressed in the public hearing including the assurances that hearings shall be held in facilities that are accessible to persons with disabilities and that alternative formats shall be available to persons with disabilities where practicable, and with advance notice to the unit of local government. Citizens shall also be notified they will be given the opportunity to comment orally or in writing at a minimum of 5 days prior to and at the hearing. Special accommodations shall be available for persons with disabilities who may wish to comment within this period. Public hearings shall be conducted in a manner to meet the needs of non-English speaking residents where a significant number of non-English speaking residents can be expected to participate. Local citizen participation records which shall be made available to the state and local citizens shall include: A copy of the public notice and/or affidavit of publication which describes proposed or actual project activities, scope of work, location, budget, schedule, objectives, and beneficiaries. Notices shall also contain the accessibility clause for persons with disabilities. 63 Grantees must provide the address, telephone number, and times for submitting complaints and grievances, and provide timely written answers to written complaints and grievances within fifteen (15) working days where practicable. Local staff shall be familiar with citizen’s complaint procedures. These procedures shall provide local citizens with the opportunity to protest project activities or related issues. A written complaint or grievance is formal notification of a concern, allegation or protest to a proper authority. A formal complaint will be considered filed at the time it is delivered to the appropriate authority’s office. To file a complaint, citizens must provide enough information to allow an investigation. The complaint should be clear and concise and include the following information: A. Identification of the project, project location, and program activities. B. Reason for the complaint (hearsay and innuendo will not be considered valid). C. Sufficient data to substantiate any claims or charges. If possible, supporting documentation should be included. D. If desired, citizens may propose a solution to the problem. If the complaint is concerning local activities or project implementation, complaints and grievances shall first be filed with the appropriate elected official. If this is the case, grantees shall be required to notify the department of the complaint. A copy of the response shall also be submitted to the department. Every attempt must be made to respond to citizens within fifteen (15) days where practicable. If a citizen feels the response from the local jurisdiction is unsatisfactory, he or she may appeal to the department for resolution. The department at that time may request additional information. Every effort will be made by the department to provide a full response within thirty (30) days. If valid and sufficient data has been provided to substantiate the complaint, an investigation will be conducted. The extent of an investigation depends on the scope and depth of the issues involved. If the complaint is more appropriately directed toward the CDBG program activities, the same procedure will be followed except all communications are between the state and the complainant. This plan shall become effective ____________________. (Date) ____________________________________ Chief Elected Official Jerry Merrill, Mayor of Rexburg Printed Name (This agreement will be executed if EDA funding goes through and this ICDBG application is moved forward.) 64 65 66 APPENDIX D: Fair Housing - Resolution 67 68 69 APPENDIX E: Acquisition Documentation E-1 Appraisal E-2 Settlement Statement E-3 Warranty Deed 70 APPRAISAL REPORT Of The Development Company Potential Land Purchase 363± E 4th N, Rexburg Madison County, Idaho 83440 Current Market Value Date July 27, 2020 Appraisal Report Date August 6, 2020 Prepared For Mr. Ken Poulsen The Development Company 299 E 4th N Rexburg, ID 83440 Prepared by REAL POINT APPRAISAL, LLC Brad Linford, ID-CGA# 3642 File Name: The Development Company; Land Purchase 71 REAL POINT APPRAISAL, LLC 6369 E Tower Castle Loop Ammon, Idaho 83406 (208) 521-2645 realpointappraisal@gmail.com August 6, 2020 Mr. Ken Poulsen The Development Company 299 E 4th N Rexburg, ID 83440 Re: Appraisal Report, Real Estate Appraisal The Development Company Potential Land Purchase 363± E 4th N, Rexburg Madison County, Idaho 83440 File Name: The Development Company; Land Purchase Dear Mr. Poulsen: At your request, I have prepared an appraisal for the above referenced property, which may be briefly described as follows: The subject property consists of a site with 0.879± acres with an average central location. It is located on a secondary road with minimal traffic patterns. Public utility services are adequate for a range of potential uses. Current zoning would permit a variety of commercial uses. This is a growing market, which positions the subject for good long-term demand. Please reference Page 9 of this report for important information regarding the scope of research and analysis for this appraisal, including property identification, inspection, highest and best use analysis and valuation methodology. To the best of my knowledge, this report conforms to the guidelines set forth in the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and adheres to the current version of the Uniform Standards of Professional Appraisal Practice (USPAP) and meets interagency and The Development Company’s appraisal guidelines. Your attention is directed to the Limiting Conditions and Assumptions section of this report (Page 7). Acceptance of this report constitutes an agreement with these conditions and assumptions. This Letter of Transmittal is inseparable from the ensuing appraisal report in its entirety. 72 Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion(s): Current As Is Market Value: The current as is market value of the Fee Simple estate of the property, as of July 27, 2020, is Two Hundred Thirty Thousand Dollars ($230,000) More importantly when buying/selling a property, it is vital to also understand the range of values posed by the adjusted comparable sales. This may help in your risk assessment. The adjusted comparable sales support a unit range of about $4.25 to $9.06 per square foot, which equates to a total value range of about $163,000 and $347,000. The appraiser placed a unit value of $6.00 per square foot. The reasonable market exposure time(s) preceding the valuation date(s) would have been 12 months and the estimated marketing period(s) as of the valuation date(s) is 12 months. These estimates are supported by the days on market (DOM) of the comparable sales. This report is intended for use only by The Development Company and its representatives. Use of this report by others is not intended by the appraiser. This report is intended only for portfolio management purposes. This report is not intended for any other use. Respectfully submitted, Real Point Appraisal, LLC Brad Linford, ID Certified General Appraiser-3642 Mr. Poulsen The Development Company August 6, 2020 Page 2 73 TABLE OF CONTENTS Summary of Important Facts and Conclusions ............................................................................... 5 Limiting Conditions and Assumptions ........................................................................................... 7 Scope of Work ................................................................................................................................ 9 Market Value ............................................................................................................................ 10 Market Area Analysis ................................................................................................................... 14 Summary of Competitive Market Analysis .............................................................................. 15 Idaho Department of Labor Market Report .............................................................................. 16 Area and Neighborhood Aerial Maps ....................................................................................... 18 Market Area and Property Characteristics ................................................................................ 20 Property Description ..................................................................................................................... 25 Legal Description ...................................................................................................................... 25 GIS Map .................................................................................................................................... 28 FEMA Flood Map ..................................................................................................................... 29 Aerial Photograph of Subject .................................................................................................... 30 Subject Photographs.................................................................................................................. 32 Assessment and Taxes .................................................................................................................. 34 Zoning ........................................................................................................................................... 35 Zoning Map ................................................................................................................................... 36 Highest and Best Use .................................................................................................................... 37 Valuation Methodology ................................................................................................................ 39 Analyses Applied ...................................................................................................................... 39 Cost Approach .............................................................................................................................. 40 Land Value ................................................................................................................................ 41 Sales Comparison Approach – Land Valuation ............................................................................ 41 Land Comparables .................................................................................................................... 41 Comparables Maps.................................................................................................................... 49 Analysis Grid ............................................................................................................................ 50 Comparable Land Sale Adjustments ......................................................................................... 52 Sales Comparison Approach Conclusion – Land Valuation..................................................... 54 Site Valuation Conclusion ........................................................................................................ 54 Sales Comparison Approach ......................................................................................................... 55 Income Approach .......................................................................................................................... 56 Direct Capitalization Analysis .................................................................................................. 56 Final Reconciliation ...................................................................................................................... 57 Value Indications ...................................................................................................................... 57 Certification Statement ................................................................................................................. 58 Addenda ........................................................................................................................................ 59 74 Real Point Appraisal 5 Summary of Important Facts and Conclusions GENERAL Subject: The Development Company Potential Land Purchase 363± E 4th N, Rexburg Madison County, Idaho 83440 Owner: Hansen DM Enterprises LLC Date of Appraisal Report: August 6, 2020 Assessment: Real Estate Assessment and Taxes Tax ID Land Improvements Other Total Tax Rate Taxes RPR000W201004B $76,580 $0 $0 $76,580 1.66%$1,274 Notes: Tax rates and assessments have remained relatively level the past few years, which trend is anticipated in the future. Assessements are not reevaluated upon transfer of a property in this district. Land: Land Summary Parcel ID Gross Land Area (Acres) Gross Land Area (Sq Ft) Usable Land Area (Acres) Usable Land Area (Sq Ft) Topography Shape RPR000W201004B 0.88 38,637 0.88 38,637 Level nearly rectangular Zoning: CBC Highest and Best Use of the Site: office development Type of Value: Market Value (see Scope of Work for definition) 75 Real Point Appraisal 6 VALUE INDICATIONS Land Value: $230,000 Cost Approach: N/A Sales Comparison Approach: N/A Income Approach: Direct Capitalization N/A Reconciled Value(s): Current (As Is) Upon Completion Upon Stabilization Value Conclusion(s) $230,000 n/a n/a Effective Date(s) July 27, 2020 n/a n/a Property Rights Fee Simple n/a n/a (Value of FF&E associated with operation of the real estate: $0; no FF&E included with this property.) The reasonable market exposure time(s) preceding the valuation date(s) would have been 12 months and the estimated marketing period(s) as of the valuation date(s) is 12 months. These estimates are supported by the days on market (DOM) of the comparable sales. 76 Real Point Appraisal 7 Limiting Conditions and Assumptions Acceptance of and/or use of this report constitutes acceptance of the following limiting conditions and assumptions; these can only be modified by written documents executed by both parties. This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed; this report is intended to be used in whole and not in part. No part of this appraisal, its value estimates, or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media. All files, work papers and documents developed in connection with this assignment are the property of Real Point Appraisal, LLC. Information, estimates, and opinions are verified where possible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing the property; no other use of these plans is intended or permitted. No hidden or unapparent conditions of the property, subsoil, or structure, which would make the property more or less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). No responsibility is assumed for such conditions or engineering necessary to discover them. Unless otherwise stated, this appraisal assumes there is no existence of hazardous materials or conditions, in any form, on or near the subject property. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not called to the attention of the appraiser nor did the appraiser become aware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The presence of such hazardous substances may affect the value of the property. The value opinion developed herein is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity thereto, which would cause a loss in value. No responsibility is assumed for any such hazardous substances, nor for any expertise or knowledge required to discover them. Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation. Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumed for matters of a legal nature. 77 Real Point Appraisal 8 Necessary licenses, permits, consents, legislative or administrative authority from any local, state, or Federal government or private entity are assumed to be in place or reasonably obtainable. It is assumed there are no zoning violations, encroachments, easements, or other restrictions which would affect the subject property, unless otherwise stated. The appraiser is not required to give testimony in Court in connection with this appraisal. If the appraiser is subpoenaed pursuant to a court order, the client agrees to pay the appraiser with Real Point Appraisal, LLC’s regular per diem rate plus expenses. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee. Americans with Disabilities Act (ADA) of 1990 A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public accommodations, employment, transportation, government services, and telecommunications. Statutory deadlines become effective on various dates between 1990 and 1997. Real Point Appraisal, LLC has not made a determination regarding the subject’s ADA compliance or non-compliance. Non-compliance could have a negative impact on value; however, this has not been considered or analyzed in this appraisal. 78 Real Point Appraisal 9 Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: ● the client and intended users ● the intended use of the report ● the type and definition of value ● the effective date of value ● assignment conditions ● typical client expectations ● typical appraisal work by peers for similar assignments This appraisal is prepared for Mr. Ken Poulsen, senior loan officer with The Development Company. The problem to be solved is to estimate the current as is market value. The intended use is for determining the fair market value of real estate to be purchased. This appraisal is only intended for the use of client, The Development Company. Use of this report by others is not intended by the appraiser. This report is intended only for use for portfolio management. This report is not intended for any other use. 79 Real Point Appraisal 10 Market Value Type of Value Presented: Market Value Description of Market Value Market Value is a major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. 1. The most widely accepted components of market value are incorporated in the following description: The most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self-interest, and assuming that neither is under duress. 2. Market value is described in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. (USPAP, 2018-2019 ed.) USPAP also requires that certain items be included in every appraisal report. Among these items, the following are directly related to the definition of market value: • Identification of the specific property rights to be appraised. • Statement of the effective date of the value opinion. • Specification as to whether cash, terms equivalent to cash, or other precisely described financing terms are assumed as the basis of the appraisal. • If the appraisal is conditioned upon financing or other terms, specification as to whether the financing or terms are at, below, or above market interest rates and/or contain unusual conditions or incentives. The terms of above—or below—market interest rates and/or other special incentives must be clearly set forth; their contribution to, or negative influence on, value must be described and estimated; and the market data supporting the opinion of value must be described and explained. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States and is the applied definition for this appraisal: 80 Real Point Appraisal 11 Definition of Market Value Source: (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994) Effective Date(s) of Value and Property Rights Appraised Reconciled Value(s): Current (As Is) Upon Completion Upon Stabilization Effective Date (s) July 27, 2020 n/a n/a Property Rights Fee Simple n/a n/a ASSIGNMENT CONDITIONS Report Type: This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. This appraisal conforms to the standards required by FIRREA (Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989) including the USPAP (Uniform Standards of Professional Appraisal Practice) established by the Appraisal Standards Board of the Appraisal Foundation. It also meets interagency and The Development Company’s appraisal guidelines. 81 Real Point Appraisal 12 Property Identification: The subject has been identified by the assessors' parcel number and legal description. Inspection: An inspection of the subject property has been made from all four corners on July 27, 2020 and photographs taken. Market Area and Analysis of Market Conditions: A complete analysis of market conditions has been made. The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Highest and Best Use Analysis: A complete as vacant highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. Type of Value: Market Value (see Scope of Work for definition) Valuation Analyses Cost Approach: A cost approach was applied as the valuation of the land is typically completed as the first step of the Cost Approach; however, the remainder of this approach was not feasible to develop because there are minimal improvements to the site. Sales Comparison Approach: A sales approach was not applied as the valuation of the land using the sales comparison method was completed in the first step of the Cost Approach. Income Approach: An income approach was not applied as the highest and best use of this property is for an owner-occupant. While the subject could generate an income stream, the income from leasing the land would support a much lower value than a typical tract of land in this market. Hypothetical Conditions: There are no hypothetical conditions for this appraisal. 82 Real Point Appraisal 13 Extraordinary Assumptions: An extraordinary assumption is made that the acreage figures provided by the county of the subject property were accurate. It is assumed there are no hidden or undisclosed environmental or other problems. Perhaps a professional inspection is recommended to discover any potential problems, such as environmental or significant potential structural problems. I am not an expert in structural, mechanical, or environmental issues. Information Not Available: All pertinent information was provided for the subject property. However, a survey or legal description for the subject property was not provided. Comments As part of this appraisal, the appraiser made several investigations and analyses. This included research into recent sales and listings of similar properties in the neighborhood, town and region. The MLS, several appraisers, several developers, the assessor’s office and a few private individuals have been contacted to obtain the best and most comparable recent sales and market data. A street inspection was done for all the comparable sales to identify relevant characteristics to the extent possible. The appraiser also used data contained in office files, which are updated regularly. The investigations included an inspection of the subject’s site on July 27, 2020 to identify relevant property characteristics. The appraiser has not completed appraisal services on the subject property within three years of procurement of this assignment. By personal observations and survey of other knowledgeable participants, the appraiser feels he could conclude a reliable indication of supply and demand and provide a narrow range of market values by the approaches applied. 83 Real Point Appraisal 14 Market Area Analysis The analysis of supply and demand for the subject property type is presented in the Market Area Analysis. The purpose of this section of the report is to delineate the subject’s competitive market area and provide support for the supply and demand conclusions for the subject’s property type. The subject property’s highest and best use is for office development. This sector of the market is primarily influenced by changes in population, growth of the university and employment, which in turn provides demand for land for commercial development. The primary focus of the market analysis is on these sectors of the economy. The following is a summary of the market area analysis. It is followed by support of the general economy of Madison County from the Idaho Department of Labor. Then a presentation of maps is provided, which provides information about surrounding property uses. After the maps, a narrative is provided of a more in-depth presentation of the analysis for the subject’s competitive market. 84 Real Point Appraisal 15 Summary of Competitive Market Analysis Area Description & Boundaries Area & Property Use Characteristics Up Dn Location X Urban Suburban Rural Population Trend X Build Up X Over 75%25% to 75%Under 25%Employment Trend X Built Up Fully Dev.Rapid X Steady Slow Personal Income Level X Property Values X Increasing Stable Declining Retail Sales X Demand/Supply Shortage X In Balance Over Supply New Construction X Vacancy Trend Increasing X Stable Declining Vacancy Trend X Change in Economic Base Likely X Unlikely Taking Place Rental Demand X Land Use Trends Present Land Use Under In Bal.Over Vacancy 25%1 Family X 1% 10%Retail X 85% 15%Multifamily X 5% 10%Office X 6% 5%Industrial X 6% 35%Vacant/Ag X 100% Change in Land Use Likely Not Likely X Taking Place Age Range for Subject Property Type to 2020 Rent Range for Subject Property Type to n/a /square foot Adjacent Property Use 1960 n/a The subject is located on a secondary road without good exposure to heavy traffic patterns. The immediate neighborhood is anchored by Albertsons Grocery. The former Walmart space had remained vacant for about five years since the store relocated to the north; however, Harbor Frieght reported that they will be occupying the large space in the near future. There is moderate ingress/egress onto 2nd East from 4th North. Second East is the primary arterial road nearby the subject. Land uses in the neighborhood consist of commercial uses along the arterial roads, multifamily development nearby the university campus, and single-family development farther away from campus and along secondary/tertiary roads. There is farm land on the outskirts of town. The neighborhood boundaries basically consists of 12 West to the west, Pole Line Road to the south, Hwy 20 to the north, and Rexburg Bench to the east. (see the following maps) Stbl Supply/Demand Surrounding properties are generally compatible. All employment centers, highways, schools, places of worship, support services and shopping facilities are within typical, market expected proximity. There is an adequate population base to support a variety of retail, medical and professional office, service commercial and light industrial activities in and near Rexburg. The economic outlook over the long term for this neighborhood is favorable. 25% 10% 15%10% 5% 35% Land Use 1 Family Retail Multifamily Office Industrial Vacant/Ag 85 Real Point Appraisal 16 Idaho Department of Labor Market Report 86 Real Point Appraisal 17 87 Real Point Appraisal 18 Area and Neighborhood Aerial Maps Subject’s Area Market Subject’s Neighborhood Boundaries 88 Real Point Appraisal 19 Subject’s Immediate Neighborhood Map 89 Real Point Appraisal 20 Market Area and Property Characteristics The subject’s parcel is located on 4th North in the City of Rexburg, Idaho. The BYU- Idaho campus is the primary influence in Rexburg, especially within six blocks of the campus. Rexburg’s business district extends east and west along Main Street and north along Second East and south along the South Yellowstone Highway area. Rexburg is 25 miles north of Idaho Falls, which is about the fourth largest city in Idaho. Approximately 250,000 persons from the Upper Snake River Valley, Lost River Valley, Teton Basin, Jackson Hole, and Star Valley make up the trading population. This area at the mouth of the upper Snake River Valley makes Idaho Falls a major business hub as well as a cultural center of southeast Idaho. Rexburg is becoming more of a major business hub, as well. Rexburg and Idaho Falls are surrounded by rich farm and ranch land, making these markets important transportation centers for potatoes, livestock, and other agriculture products grown in the region. The climate of Eastern Idaho is comparatively dry and consists of four seasonal periods. The average humidity at noon during the summer is only 28% with summer nights being cool. Underneath Upper Snake River Valley lies one of the largest aquifer systems in the world, yet the annual precipitation in the area averages a meager nine inches. Area summers are generally long and mild. Winters are also comparatively long, but not too severe. The location, on the warmer valley floor, keeps the snow from presenting major transportation problems. All utilities including natural gas, electrical, communication services and public water and sewer are available near town. Private wells and septic systems are generally allowed and acceptable on the outskirts of town. Private and party wells and private septic systems are also common in the county. Utility costs are reasonably low. Idaho ranks comparatively low in taxation rates. There is no corporate franchise tax, and no inventory tax. State sales taxes are 6%. Property tax rates in Rexburg area are acceptable at about 1.5% to 2.2% of assessed value, but lower in outlying areas at about 0.9 % of assessed value. State and local taxes are expected to remain more or less stable in the near future. Streets are all wide avenues in the city core area of Rexburg. This spaciousness is evident throughout the city in its parks, public building areas and, more recently in the city’s commercial off-street parking area acquisitions. The downtown commercial buildings are a mixture of some newer, but mostly older buildings. Many of the older properties have had extensive renovation in both the private and public sectors, especially since the Teton Dam disaster in 1976. Dilapidated structures are practically nonexistent; however, some of the upper floors above grade level have little or no use in some of the properties. Parking is often less than adequate in the older downtown commercial district. Vacancy rates are higher in some of the less well-maintained properties. 90 Real Point Appraisal 21 The two primary newer commercial districts are in the northeast and southwest quadrants of town. The northeast district includes the older Valley River Plaza, formerly anchored by K-Mart and the Mountain River Plaza and formerly a Wal-Mart and Albertsons. Several newer medical and professional offices have been built near North and South Second East. About five years ago, Wal-Mart relocated to a new super-store a half-mile north of its former location along North Second East. K-Mart closed their store about four years ago, but Cal-Ranch Stores has relocated across the street to the newly remodeled northern portion of this former K-Mart building. Current vacant box stores/spaces that are vacant are portions of the former K-Mart, former Ace Hardware, former Beal’s, and former Cal-Ranch Store. The retail sector of box stores currently experiences high levels of vacancies near 15%. This excess is expected to be absorbed into the market in the next five years. It has been reported by multiple sources that the new Wal-Mart has far exceeded expectations of retail sales, which could indicate additional demand for other retailers in Rexburg. Most sectors, other than the retail sector, have occupancy rates that are stable with ongoing development, which has met and is expected to meet the anticipated increases in demand. Below are other market indications and their impact on the subject property type. Population Trends In 2019, Rexburg had a population of about 30,000 according to the city reports, which is deemed more accurate than census records that likely understate the population of the student base portion of the population. The Rexburg area had about a 4% growth rate over the past 15 years and is expected to continue to grow by about 2% per year in the foreseeable future. Rexburg has experienced relatively rapid growth and development since 2000 when it was announced that Ricks College would be converted to BYU- Idaho, expanding enrollment from about 8,500 to about 19,000 students over a twenty- year period. Local enrollment at the university is anticipated to grow past 23,000 students in the next five years. This will be a positive influence for the commercial sector, which is directly impacted by increases in population. Traffic Patterns There are good traffic patterns along North 2nd East, which would be conducive to a variety of commercial uses. Average daily traffic patterns are reported to be about 17,000 per day along North 2nd East, which is a positive externality for retail or service commercial development. However, there are only minimal traffic patterns along 4th North, a secondary road. The subject has minimal exposure to arterial roads and heavy traffic patterns. Ingress and egress onto 2nd East from 4th North moderate without a traffic signal. 91 Real Point Appraisal 22 Housing Trends The median home purchase price for 3-bedroom, 1-bath, and a single-garage dwelling is only about $150,000. Median single-family residential prices the past 12 months was about $230,000. For new construction starter homes, prices typically start at about $230,000. There have been moderate amounts of new development to meet the demand for the increase in the number of households. One significant driver for new development in this market is that there currently is a low supply of dwellings available for sale in this market. This will continue to drive up home values until new dwellings are built to offset demand. The multifamily sector of the residential market has seen the most increase in demand with the expansion of the university. Rental rates have moderately increased with the new demand, but new development has offset the potential for significant increases in rents. The growth of the university has dramatically affected residential development and the redevelopment of properties within five blocks of campus. This sector only has minimal influence on the subject with the subject being located a little farther from campus and being zoned for a commercial use. Lease and Occupancy Trends Lease rates for newer retail/office space in Eastern Idaho are generally $0.75/sq.ft./month to $1.75/sq.ft./month. Properties with good locations that are newer and have more upgrades have higher rates. Most properties in the neighborhood are generally compatible. Overall vacancy rates are estimated to be about 4% to 8% for smaller retail/office space that could be a reasonable substitute for the subject space with occupancies expected to remain steady. The big box retail sector has experienced significant vacancies the past five years more than 75%. Most recently Harbor Freight, a tool retailer, reported that it would be occupying the former Walmart space, which has remained vacant for about five years. However, the remainder of the vacant retail space should find purpose in the next five years, which is anticipated to moderately benefit the subject’s neighborhood. Income Trends Per Capita Income annually has increased about 3.8% over the past decade. This trend is anticipated to continue with current trends. Madison County generally has a lower per capita income because the higher percentage of students. This increase in wages is a positive influence for the subject property. Wages should continue to improve with historic trends. 92 Real Point Appraisal 23 Major Employers BYU-Idaho is the major employer in this college town. Agricultural operations and related industries, and the Idaho National Laboratory (INL) are the major industries in the area. BYU-Idaho is expected to be a strong employer in town with planned future expansions of enrollment. Agricultural commodity prices have moderated in the past couple of years. Ag commodity prices are expected to remain reasonably strong in the future with interim fluctuations, which should continue to drive agricultural related jobs. Approximately 7,000 INL-related employees live in the market area. This constitutes the heaviest concentration of technology professionals in the northern Rocky Mountain region. Because of the INL work force, Idaho Falls has a higher than average household income and effective buying power. Currently job levels are anticipated to strong at the INL. Economic diversification efforts are on-going by community groups and commercial and residential developers in the area. Growth is expected to continue at a moderate sustainable rate. There are no known major industries/businesses that are anticipated to enter or exit this market in the next few years, which would cause a dramatic change in current trends. This economic indicator has significant impact on the subject’s sector of the market. Unemployment Trends The unemployment rate has been between 1.7% and 6.0% in the past 10 years in Madison County. It stands at about 4.2% right now, which is extremely strong considering the impacts of the partial shutdown of the economy due to COVID-19. It is expected to stay near that level the next few years. There are no known major industries/businesses that are anticipated to enter or exit this market, which would cause a dramatic change in current trends. A very strong unemployment rate will be a positive influence for this market and demand for future development. Land Use Trends The immediate neighborhood is about 80% developed. (See prior Market Report and Maps). Multifamily residential has seen the most growth of any property type in the past two decades between the subject property and the university campus. Moderate new residential development has taken place near Rexburg due to the growth of the university. Commercial development has occurred in the past decade; however, outside the development of the new Walmart on the northside of Rexburg, a few new bank/credit union branches and retail development nearby campus, there has been only moderate development in town. On the southwest side of town, three newer hotels/motels have been built; these hotels likely absorbed any pent-up demand for hotel rentals. Moderate new development is expected to continue in and near town, and only limited amounts of new development is expected farther away from town. 93 Real Point Appraisal 24 Agricultural Market Agricultural commodity prices more recently have been weaker, but the other portions of the economy have shown improvement. Commodity prices are one of the key elements that drive this market. Although, there has been a slump in commodity prices, this is likely for just for the interim. Commodity prices historically have fluctuated and should improve in the future. COVID-19 Pandemic Risk Assessment There are many uncertainties about the long-term impacts on the general economy due to the current COVID-19 Pandemic. There is limited economic data to point the direction of the future markets. The appraiser has interviewed many real estate managers and owners the past few weeks about the current situation to guide his opinion of the long-term impacts on the subject’s submarket. They reported minimal impact of the pandemic on their current market conditions and occupancies; however, few new buyers have entered the market. No noticeable increases in lease defaults have been reported, yet. The only noticeable negative impact has been in the approved single-student housing nearby campus, which is a different submarket from the subject’s market. The consensus of market participants is that occupancies and rents should remain strong through the partial shutdown of the economy and there may be a slight increase in collection losses, which will likely be a small fraction of the market. Most market participants are optimistic of future growth of the region and anticipated good long-term demand for residential rentals. It should be noted that the federal stimulus money that has been issued was based upon the average impact on the typical citizen throughout the nation. Because there is less impact on unemployment in this market, the stimulus money will likely stimulate this market rather than just stabilize the market. Market Area Conclusions The economic outlook for both the immediate future and over the long term for the Rexburg market is expected strong. There is anticipated to be growing demand for commercial development along the busier roads and multi-family development set back from the busier streets. Access to the subject is average for office space. Exposure of the subject property is average for office space without any major traffic patterns by the subject property. It is likely that demand will continue to increase as this market continues to have an expanding population, higher wages, and a lower unemployment rate. There are no known negative externalities that would significantly impact the use of the subject with a commercial use. This is an average potential office site for the competitive market. 94 Real Point Appraisal 25 Property Description The subject property consists of a site with 0.879± acres with an average central location. It is located on a secondary road with minimal traffic patterns. Public utility services are adequate for a range of potential uses. Current zoning would permit a variety of commercial uses. This is a growing market, which positions the subject for good long- term demand. Subject’s History The subject property has not been openly offered for sale or transferred ownership in the prior three years. It is currently an unimproved commercial lot. It has been held by the owner of the property to the adjoining east for many years. Currently, the Development Company, the adjoining property to the west, is attempting to facilitate the purchase of the subject property. No offer has been extended, yet. Legal Description West 0.879 Acres of Lot 4, Block 1, Walker Addition, Division No. 2, an Addition to the City of Rexburg, Madison County, Idaho. Subject to easements, if any, of record or in existence for road, streets, pipelines, hereditaments and appurtenances thereto. Subject to zoning and restrictive covenants, if any, of record. 95 Real Point Appraisal 26 SITE Location: Average Current Use of the Property: Undeveloped land Site Size: Total: 0.879± acres; 38,637± square feet Usable: 0.879± acres; 38,637± square feet Shape: The site has a nearly rectangular shape. Frontage/Access: The subject property has average access and frontage on a secondary road. Topography: Level; slightly elevated above street grade Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development and cultivate crops. Utilities: Electricity: The site is served by public electricity Sewer: City sewer Water: City water Natural Gas: Natural gas is available from Intermountain Gas Co. Site Improvements: Minimal Flood Zone: The subject is in an area mapped by the Federal Emergency Management Agency (FEMA). The subject is located in FEMA flood zone AE, which is classified as a flood hazard area. (See flood map) FEMA Map Number: 16065C0020D FEMA Map Date: June 3, 1991 The subject has likely been removed from the 500-year flood plain, which is the case of most reported properties within the neighborhood. The appraiser is not an expert in this matter and is reporting data from FEMA maps. Wetlands/Watershed: No wetlands were observed during the site inspection. 96 Real Point Appraisal 27 Environmental Issues: There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions. Encumbrance / Easements: There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. Site Comments: This is a typical, moderate sized commercial site without any improvements. There are curb and gutters along 4th North. There is also a walking path along the Teton River, which is maintained by the city, along the north boundary line of the subject property. Americans With Disabilities Act Please reference the Limiting Conditions and Assumptions section of this report on Page 7. Hazardous Substances Please reference the Limiting Conditions and Assumptions section of this report on Page 7. 97 Real Point Appraisal 28 GIS Map 98 Real Point Appraisal 29 FEMA Flood Map Subject 99 Real Point Appraisal 30 Aerial Photograph of Subject 100 Real Point Appraisal 31 Survey Map of Subject’s Site Subject 101 Real Point Appraisal 32 Subject Photographs Street Scene Along 4th North Street Scene Along 4th North Subject Property Looking North from the Southeast Corner Subject Property Looking South from the Northeast Corner Walking Path behind Subject Property Subject Property Looking South from the Northwest Corner 102 Real Point Appraisal 33 Subject Property Looking North from the Southwest Corner 103 Real Point Appraisal 34 Assessment and Taxes Taxing Authority Madison County Assessment Year 2019 Real Estate Assessment and Taxes Tax ID Land Improvements Other Total Tax Rate Taxes RPR000W201004B $76,580 $0 $0 $76,580 1.66%$1,274 Notes: Tax rates and assessments have remained relatively level the past few years, which trend is anticipated in the future. Assessements are not reevaluated upon transfer of a property in this district. 104 Real Point Appraisal 35 Zoning LAND USE CONTROLS Zoning Code: CBC Zoning Description: Community Business Center Zoning Density/FAR: Adequate Actual Density of Use: The Community Business Center Zone is established to provide an area in which a general shopping center facility can be established to satisfy the specialty shopping needs of a community or a group of neighborhoods. It is intended that the CBC zone will be characterized by specialty shops situated in an attractively designed shopping center complex surrounded by appropriate landscaping. Current Use Legally Conforming: The subject potential use with retail, office, or service commercial type uses are legal and conforming uses. Zoning Change Likely: No Zoning Change Description: N/A Set Back Distance: 10 feet Side Yard Distance: 10 feet Zoning Comments This is my best interpretation of potential zoning of restrictions of the subject property. The subject parcel would legally allow for a variety of commercial uses. 105 Real Point Appraisal 36 Zoning Map 106 Real Point Appraisal 37 Highest and Best Use The purpose of this section of the report is determining the highest and best use (HBU) of the subject property so that it can be compared to similar type properties in this market. Also, this section of the report assists in determining the appropriate methods in developing value for the subject based upon the most likely occupant. The HBU may be defined as the reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The following are the four filtering agents to determine the HBU. 1. Physically Possible: To what use is the site physically adaptable? 2. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? 4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Highest and Best Use as Vacant The highest and best use of the site, as vacant, is for office development. Below is the presentation of the application and analysis of the four steps in determining the HBU of the subject property. Each of the steps below filters out potential uses of the subject, which reduces the potential uses down to a single HBU. Physically Possible There is adequate space and infrastructure for most smaller to medium sized type facilities found in this area. Power, natural gas, city water and sewer, and communication services are found nearby. This is a smaller parcel that is unlikely to be subdivided into many smaller tracts of land. This test does not reduce or limit many possibilities of potential uses of this site. Legally Permissible This test filters out most potential uses because the zoning could allow for commercial type uses under the City of Rexburg Development Code the subject’s potential zoning. There are setback requirements that moderately impact the siting of building improvements. 107 Real Point Appraisal 38 Financially Feasible There is limited demand for retail along this secondary road. Most office and service commercial uses have proven to be feasible in the past five years within the competitive market with average locations like the subject. These uses will likely continue to be feasible in the future based upon employment and population trends. Maximally Productive Use Considering a marketing period of 18 months, the maximally productive use of the subject property, as is, would be office development. The most likely user would be an owner user; although, there is moderate potential for an investor to develop and lease out the property. There is adequate demand for development to begin immediately. The highest and best use of this property is not anticipated to change in the next five to ten years. 108 Real Point Appraisal 39 Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are: 1. The Cost Approach 2. The Income Approach 3. The Sales Comparison Approach Cost Approach The Cost Approach is summarized as follows: Cost New - Depreciation + Land Value = Value Income Approach The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others. Analyses Applied A cost analysis was considered and was developed because the valuation of the land is typically completed as the first step of the Cost Approach; however, the remainder of this approach was not feasible to develop because there are minimal improvements to the site. A sales comparison analysis was considered and was not developed because the valuation of the land using the sales comparison method was completed in the first step of the Cost Approach. An income analysis was considered and was not developed because the highest and best use of this property is for an owner-occupant. While the subject could generate an income stream, the income from leasing the land would support a much lower value than a typical tract of land in this market. 109 Real Point Appraisal 40 Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property, assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. Because there are not significant improvements to the subject’s site, this approach is not fully developed; however, the valuation of the site is performed within this approach. The applied process of the Cost Approach, when fully developed, is as follows: • Estimate the land value according to its Highest and Best Use. I have used the Sales Comparison Approach; the process is as follows: o Comparable sales, contracts for sale and current offerings are researched and documented. o Each comparable is analyzed and adjusted to equate with the subject property. o The value indication of each comparable is analyzed and the data reconciled for a land value indication. • Estimate the replacement cost of the building and site improvements. • Estimate the physical, functional and/or external depreciation accrued to the improvements. • Sum the depreciated value of the improvements with the value of the land for an indication of value. 110 Real Point Appraisal 41 Land Value The subject’s land value has been developed via the sales comparison approach methodology. Sales Comparison Approach – Land Valuation The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution, and externalities. The following steps describe the applied process of the Sales Comparison Approach. • The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. • The most pertinent data is further analyzed, and the quality of the transaction is determined. • The most meaningful unit of value for the subject property is determined. • Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. • The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach. Land Comparables I have researched six comparables for this analysis; these are documented on the following pages followed by a location map and analysis grid. The unit of comparison applied is the price per square foot because it is commonly used by market participants. All sales have been researched through numerous sources, inspected, and verified by a party to the transaction where possible. 111 Real Point Appraisal 42 Comp Address Date Acres Land SF Comp City Price Price Per Acre Price Per Land SF Subject 363± E 4th N 2/4/2020 0.88 38,637 Subject Rexburg $500,000 $568,828 $12.94 1 336 Main St 5/20/2020 0.50 21,780 1 Rexburg $185,000 $370,000 $8.49 2 Stocks Ave 10/31/2018 0.45 19,602 2 Rexburg $95,000 $211,111 $4.85 3 374 E. 4th N.7/1/2012 0.40 17,380 3 Rexburg $89,000 $222,500 $5.12 4 Lot 1 Bond Ave 10/2/2017 0.42 18,295 4 Rexburg $138,000 $328,571 $7.54 5 236 Lorene Drive 11/22/2017 0.40 17,424 5 Rexburg $159,900 $397,761 $9.18 6 L3-4 B1 Bond Avenue 4/14/2017 0.84 36,590 6 Rexburg $240,000 $285,714 $6.56 112 Real Point Appraisal 43 ID 10606 Date 5/20/2020 Address 336 Main St Price $185,000 City Rexburg Price Per Land SF $8.49 State ID Financing Cash Tax ID RPRRXB10294462 Recorded Instrument W.D # 430957 Grantor Reginal Wight Conditions of Sale Arms-Length Grantee Roger Sorensen Verification Listing Agent; County Legal Description TAX 3855; L3; B29 Rexburg Acres 0.5 Topography level Land SF 21,780 Zoning Mixed Use Road Frontage --Flood Zone no Shape rectangular Encumbrance or none reported Utilities city utilities Environmental Issues none reported Site Comments This is the last parcel left on the block that is undeveloped. It has mixed use zoning, which would allow for a variety of commercial and residential uses. It was listed for $199,995 before it sold. The property has an above average location along an arterial road, but is surrounded primarily by residential uses. Land Comparable 1 Transaction 113 Real Point Appraisal 44 ID 10209 Date 10/31/2018 Address Stocks Ave Price $95,000 City Rexburg Price Per Land SF $4.85 State ID Financing Cash Tax ID RPRARBP0010060 Recorded Instrument W.D. # 419753 Grantor Lerwill Conditions of Sale arms-length Grantee KAYO PROPERTIES LLC Verification listing; county; secondary source Legal Description ARTCO BUSINESS PARK SUB LOT 6 BLK 1 Acres 0.5 Topography level Land SF 19,602 Zoning CBC Road Frontage Stocks Ave Flood Zone no Shape rectangular Encumbrance or none reported Utilities city Environmental Issues none reported Site Comments The property comprises of a commercial lots near the new Rexburg Walmart. The property was bought in conjunction with the three other adjoining. City utilities are available to the property. The property was purchases with the intent to construct an office building. It has good exposure to 2nd E, an arterial road. Land Comparable 2 Transaction 114 Real Point Appraisal 45 ID 4081 Date 7/1/2012 Address 374 E. 4th N.Price $89,000 City Rexburg Price Per Land SF $5.12 State ID Financing cash Tax ID RPR000W2020025 Recorded Instrument -- Grantor Dr. Hansen Conditions of Sale arms-length Grantee Dr. Andrew Summers (Smileguys LLC)Verification Legal Description Walker Addition Division No. 2 Block 2 Lot 3; Less W. 67.55' Sec. 20 T6N R40 EBM SW1/4; RPR000W2020025 Acres 0.4 Topography level Land SF 17,380 Zoning Community Business Center Road Frontage --Flood Zone -- Shape rectangular Encumbrance or -- Utilities typical city Environmental Issues -- Verified with Dr. Summers - 356-3621 Site Comments This was the site of the new 3200 sq.ft. Orthodontist office in the center of a newer medical district. Land Comparable 3 Transaction 115 Real Point Appraisal 46 ID 9985 Date 10/2/2017 Address Lot 1 Bond Ave Price $138,000 City Rexburg Price Per Land SF $7.54 State ID Financing Cash Tax ID RPRARBP0010010 Recorded Instrument W.D. # 412436 Grantor WBC Investments Conditions of Sale arms-length Grantee McWhorter Properties LLC Verification Buyer-Dr. McWhorter Legal Description ARTCO BUSINESS PARK SUB LOT 1 BLK 1 Acres 0.4 Topography level Land SF 18,295 Zoning CBC Road Frontage Stocks Ave Flood Zone no Shape rectangular Encumbrance or none reported Utilities city Environmental Issues none reported Transaction Site Comments The property comprises of a commercial lot near the new Rexburg Walmart. The property is located on a corner. It was purchased with the intent to build a dental clinic. City utilities are available to the property. It has good exposure to 2nd E, an arterial road. Land Comparable 4 116 Real Point Appraisal 47 ID 9973 Date 11/22/2017 Address 236 Lorene Drive Price $159,900 City Rexburg Price Per Land SF $9.2 State ID Financing cash to seller Tax ID RPRXBCA0203330 Recorded Instrument W.D. # 413459 Grantor Christopher Cornilius Conditions of Sale arms-length Grantee Scott L & Suzanne Brewer Verification listing; county Legal Description REXBURG CITY ACREAGE TAX 2590 NW 1/4, NW 1/4, Sec 20, T6N, R40 EBM Acres 0.4 Topography level Land SF 17,424 Zoning CBC Road Frontage Lorene Drive Flood Zone no Shape rectangular Encumbrance or none reported Utilities city Environmental Issues none reported Transaction Site Comments Commercial land next to the old Rexburg Walmart. City utilities to the property. Land Comparable 5 117 Real Point Appraisal 48 ID 9975 Date 4/14/2017 Address L3-4 B1 Bond Avenue Price $240,000 City Rexburg Price Per Land SF $6.56 State ID Financing Cash Tax ID RPRARBP0010030 & RPRARBP0010040 Recorded Instrument W.D. # 409106 Grantor Price Conditions of Sale arms-length Grantee KAYO PROPERTIES LLC Verification listing; county Legal Description ARTCO BUSINESS PARK SUB LOT 3 & 4 BLK 1 Acres 0.8 Topography level Land SF 36,590 Zoning CBC Road Frontage Bond Ave Flood Zone no Shape rectangular Encumbrance or none reported Utilities city Environmental Issues none reported Transaction Site Comments The property comprises of two commercial lots near the new Rexburg Walmart. It was bought in conjunction with lot to the east. City utilities are available to the property. The property was purchased with the intent to construct an office building. It has good exposure to 2nd E, an arterial road. Land Comparable 6 118 Real Point Appraisal 49 Comparables Maps 119 Real Point Appraisal 50 Analysis Grid The previous sales have been analyzed and compared with the subject property. I have considered adjustments in the areas of:  Property Rights Sold  Financing  Conditions of Sale  Market Trends  Location  Physical Characteristics The following is a sales comparison grid displaying the subject property, the comparables and the adjustments applied. 120 Real Point Appraisal 51 Address City State Date Price Land SF Land SF Unit Price Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0% Financing Cash 0.0%Cash 0.0%cash 0.0%Cash 0.0%cash to seller 0.0%Cash 0.0% Conditions of Sale Arms-Length 0.0%arms-length 0.0%arms-length 0.0%arms-length 0.0%arms-length 0.0%arms-length 0.0% Market Trends Through 7/27/2020 3.5% Location % Adjustment $ Adjustment Acres % Adjustment $ Adjustment Topography % Adjustment $ Adjustment Shape % Adjustment $ Adjustment Utilities % Adjustment $ Adjustment Zoning % Adjustment $ Adjustment Net Adjustments Gross Adjustments 26.9%17.5%14.8%29.5%9.9%20.4% -26.9%-17.5%-14.8%-29.5%-9.9%-20.4% Adjusted Land SF Unit Price $6.25 $4.25 $5.76 $5.86 $9.06 $5.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.0%0.0%0.0%0.0%0.0%0.0% CBC Mixed Use CBC Community Business Center CBC CBC CBC $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.0%0.0%0.0%0.0%0.0%0.0% City Utilities city utilities city typical city city city city $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.0%0.0%0.0%0.0%0.0%0.0% Regular rectangular rectangular rectangular rectangular rectangular rectangular 0.0%0.0% $0.00 $0.00 $0.00 0.0%0.0%0.0%0.0% $0.00 $0.00 $0.00 Level level level level level level level -$0.80 -$0.90 -$1.00 -$0.95 -$1.00 $0.00 -9.4%-17.5%-14.8%-11.4%-9.9%0.0% 0.88 0.50 0.45 0.40 0.42 0.40 0.84 -$1.50 $0.00 $0.00 -$1.50 $0.00 -$1.50 -17.5%0.0%0.0%-18.0%0.0%-20.4% Average Ave+Average Average Ave+Average Ave+ Adjusted Land SF Unit Price $8.55 $5.15 $6.76 $8.31 $10.06 $7.34 0.6%6.2%32.0%10.2%9.7%12.0% Adjusted Land SF Unit Price $8.49 $4.85 $5.12 $7.54 $9.18 $6.56 Fee Simple Conventional Cash Transaction Adjustments $13.06 $8.49 $4.85 $5.12 $7.54 $9.18 $6.56 38,289 21,780 19,602 17,380 18,295 17,424 36,590 $500,000 $185,000 $95,000 $89,000 $138,000 $159,900 $240,000 7/27/2020 5/20/2020 10/31/2018 7/1/2012 10/2/2017 11/22/2017 4/14/2017 ID ID ID ID ID ID ID Rexburg Rexburg Rexburg Rexburg Rexburg Rexburg Rexburg 363± E 4th N 336 Main St Stocks Ave 374 E. 4th N.Lot 1 Bond Ave 236 Lorene Drive L3-4 B1 Bond Avenue Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 121 Real Point Appraisal 52 Comparable Land Sale Adjustments Adjustments were made to reflect the difference between the subject and the comparables, which equates the comparable properties to the subject property. It is critical that all the elements of comparison are bracketed by or similar to the comparables applied. In the instance of this analysis, the subject’s elements of comparison were bracketed well by the comparables applied, which strengthens the conclusions of this approach. Below are the various elements of comparison and the explanation for the adjustments applied in the prior sales comparison grid. Property Rights The subject and the comparables all have similar property rights of fee simple interest. No adjustments were warranted. Financing When a comparable property sells with favorable or unfavorable financing, an adjustment is applied to equate the sales price to a transaction that likely would have occurred with typical financing terms. All the comparables were considered cash equivalent transactions with typical financing. No adjustments were needed. Conditions of Sale Consideration was given to the amount of time that each property had been on the market and the amount of interest there was for each property at their given prices. All the comparable sales were listed for a reasonable amount of time. No adjustments were needed. Economic Trends There has been a significant amount of appreciation in this market the past few years with improvement in the economy. The comparables were adjusted up about 3.5% annually. Most of the comparable sales are more recent, which minimizes these adjustments. Location The primary driver for the value of land is its location. Comparables located farther away from town are generally inferior. Also, the comparables with locations with better exposure to traffic patterns and good ingress and egress are generally superior. The subject has an average central location, but it does not have any exposure to arterial roads. Comparables #1, #4 and #6 have superior locations with exposure to arterial roads; therefore, they were adjusted down to equate them to a similar location as the subject property. Comparables #2, #3 and #5 have similar locations as the subject and did not require any adjustments. 122 Real Point Appraisal 53 Acres Adjustments are made to reflect the typical inverse relationship between size and unit value. Moderate upward adjustments were necessary for the first five sales because they were significantly smaller than the subject property. Comparable #6 was instrumental in bracketing the size of the subject property and did not warrant any adjustments. Topography Adjustments are made for sites with slopes or uneven terrain because they are more expensive to develop. All the comparables were relatively similar in topography and did not warrant any adjustments. Shape Irregular tracts of land are less efficient to develop. Often irregular tracts have surplus land left over after development or it is more difficult to site building improvements because of the irregular shape. The subject is regular in shape, as were all the comparable sales; therefore, no adjustments were required. Utilities Adjustments were made for the overall contributory value of various utility services. All six comparables have similar access to city utilities as the subject property and did not warrant any adjustments. Zoning/Use All the comparables have similar type zoning as the subject and do not require any adjustments. Conditional use permits are common for typical uses found within the neighborhood. No adjustments were needed. 123 Real Point Appraisal 54 Sales Comparison Approach Conclusion – Land Valuation Number of Comparables:6 % Δ -12% -1% -11% $6.33 -8% $92,000.00 $92,000.00 land sf Indicated Value:$229,735 Reconciled Final Value:$230,000 Two Hundred Thirty Thousand Dollars Average:$6.96 $6.17 Median:$5.85 Reconciled Value/Unit Value:$6.00 Subject Size:38,289 Land Value Ranges & Reconciled Value Unadjusted Adjusted Low:$4.85 $4.25 High:$9.18 $9.06 The comparables with the fewest gross adjustments typically are the most representative of the subject property and are quantifiably the best substitutes for the subject. Also, recent sales and the comparables with the most similar highest and best uses and locations are likely the best substitutes for the subject. In this analysis, all the comparables are relatively similar to the subject property. Comparable #3 is located across the street from the subject, but is an older sale; therefore, it receives just a little more weight within this analysis with the most similar location as the subject property. Conclusions All of the value indications have been considered, and in the final analysis, Comparable #3 receives the most weight in arriving at my final reconciled per land sf value of $6.00. This comparable supports a value below the adjusted average of six comparable sales applied; hence, a value a little below the adjusted average of the six comparable sales was selected for the conclusion of the sales comparison approach. Site Valuation Conclusion Based on the analysis detailed on the previous pages, as of July 27, 2020, I have reconciled to a current value of the subject’s site of: $230,000 Two Hundred Thirty Thousand Dollars 124 Real Point Appraisal 55 Sales Comparison Approach The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. Because the valuation of land is typically completed as the first step of the Cost Approach using the sales comparison method, it would be repetitive to complete it again within this approach; therefore, this approach is not developed. The following steps describe the applied process of the Sales Comparison Approach when it is fully developed. • The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. • The most pertinent data is further analyzed, and the quality of the transaction is determined. • The most meaningful unit of value for the subject property is determined. • Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. • The value indication of each comparable sale is analyzed, and the data reconciled for a final indication of value via the Sales Comparison Approach. 125 Real Point Appraisal 56 Income Approach The Income Approach to value is based on the present worth of the future rights to income. This type of analysis considers the property from an investor's point of view, the basic premise being that the amount and quality of the income stream are the basis for value of the property. This approach was not employed because it was less applicable, and this property would not be a strictly income producing property, as indicated by the HBU Analysis. However, below is the process of this approach when it is developed. Direct Capitalization Analysis The steps involved in capitalizing the subject's net operating income are as follows: • Develop the subject's Potential Gross Income (PGI) through analysis of the subject’s actual historic income and an analysis of competitive current market income rates. • Estimate and deduct vacancy and collection losses to develop the Effective Gross Income (EGI). • Develop and subtract operating expenses to derive the Net Operating Income (NOI). • Develop the appropriate capitalization rate (Ro). • Divide the net operating income by the capitalization rate for an estimate of value through the income approach. 126 Real Point Appraisal 57 Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. Value Indications Land Value: $230,000 Cost Approach: N/A Sales Comparison Approach: N/A Income Approach (Direct Capitalization): N/A Cost Approach This approach was employed because the land valuation is typically performed within the cost approach by using the sales comparison methods. This approach provided a narrow range of values after adjustments were made. This was an adequate sample of six comparables for credible and reliable conclusions. As such, this approach is a reliable indicator of value. Because the other two approaches were not developed, this approach receives sole weight in the reconciliation of values. Sales Comparison Approach Methods of the sales comparison approach were applied in the valuation of the land within the cost approach. This approach was not developed separately. Income Approach – Direct Capitalization This approach was not developed because the most likely user of the subject is an owner- occupant. Therefore, this approach was not developed to avoid misleading the reader that this land would be an income producing property. Value Conclusion Based on the data and analyses developed in this appraisal, I have reconciled to the following value conclusion(s), as of July 27, 2020, subject to the Limiting Conditions and Assumptions of this appraisal. Reconciled Value(s): Current As Is Market Value: The current as is market value of the Fee Simple estate of the subject property as of July 27, 2020 is: $230,000 – Two Hundred Thirty Thousand Dollars The reasonable market exposure time(s) preceding July 27, 2020 would have been 12 months and the estimated marketing period(s) as of July 27, 2020 is 12 months. These estimates are supported by the days on market (DOM) of the comparable sales. 127 Real Point Appraisal 58 Certification Statement  I certify that, to the best of my knowledge and belief:  − The statements of fact contained in this report are true and correct.  − The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.  − I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.  − I have not performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment other than the assignment to complete this appraisal that was put on hold.  − I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.  − My engagement in this assignment was not contingent upon developing or reporting predetermined results.  − My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.  − My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.  − I have made a personal inspection of the property that is the subject of this report.  − No individual provided significant real property appraisal assistance to the person signing this certification.  − The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.  − The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.  − As of the date of this report, I have completed the continuing education programs of the Appraisal Institute and the Board of Real Estate Appraisers for the State of Idaho certification. Brad Linford, CGA; ID-3642 August 6, 2020 128 Real Point Appraisal 59 Addenda Letter of Engagement 129 Real Point Appraisal 60 130 Real Point Appraisal 61 131 Real Point Appraisal 62 132 Real Point Appraisal 63 133 Real Point Appraisal 64 Qualifications Placeholder Page 134 Real Point Appraisal 65 Appraiser’s License 135 136 137 138 139 140 APPENDIX F: Funding Commitments F-1 Detailed Budget F-2 USDA-RD Award F-3 Cash Match Letter 141 1. Administrative and Legal Expenses Quantity Unit Cost Cost General 1 25,000.00$ 25,000.00$ 25,000.00$ 2. Land, Structures, Rights-of-way, Appraisals, etc. Quantity Unit Cost Cost General 1 230,000.00$ 230,000.00$ 230,000.00$ 3. Relocation Expenses and Payments Quantity Unit Cost Cost General 1 -$ -$ -$ 4. Architectural and Engineering Fees Quantity Unit Cost Cost Professional Project 441,500.00$ 441,500.00$ 441,500.00$ 5. Other Architectural and Engineering Fees Quantity Unit Cost Cost Professional Project 4,250.00$ 4,250.00$ Project 4,250.00$ 4,250.00$ Project 15,000.00$ 15,000.00$ 23,500.00$ 6. Project Inspection Fees Quantity Unit Cost Cost Professional Project 15,000.00$ 15,000.00$ 15,000.00$ 6.1 Special Inspection Allowance 5.1 Geotechnical Investigation Report Allowance 5.3 Flood Plain Permit and Studies Allowance Subtotal Div/Sec Description Units Subtotal Not Applicable Lump Sum Subtotal Div/Sec Description Units 4.1 Architect & Engineering Fee Fixed Subtotal 5.2 Survey Allowance Div/Sec Description Units PROBABLE CONSTRUCTION COST The Development Company - ECIPDA Teton River Business and Entrepreneurial Center Expansion Rexburg, Idaho 11/29/21 Div/Sec Description Units 1.1 Miscellaneous Administrative and Legal Expenses Lump Sum Div/Sec Description Units Subtotal Div/Sec Description Units 2.1 Purchase of Building Lot Lump Sum Subtotal 142 7. Site work Quantity Unit Cost Cost Site 1 3,750.00$ 3,750.00$ 1 1,000.00$ 1,000.00$ 600 3.50$ 2,100.00$ 2 500.00$ 1,000.00$ 1 1,000.00$ 1,000.00$ 850 1.00$ 850.00$ 1 500.00$ 500.00$ 1 1,000.00$ 1,000.00$ 1 1,000.00$ 1,000.00$ 30250 0.65$ 19,663.00$ 1 4,500.00$ 4,500.00$ 1100 60.00$ 66,000.00$ 1400 6.00$ 8,400.00$ 1140 20.00$ 22,800.00$ 180 15.00$ 2,700.00$ 1900 140.00$ 266,000.00$ Project 20,000.00$ 20,000.00$ 3300 6.50$ 21,450.00$ 8750 2.00$ 17,500.00$ 8750 6.50$ 56,875.00$ Project 4,500.00$ 4,500.00$ 1 1,500.00$ 1,500.00$ 524,088.00$ 8. Demolition and Removal Quantity Unit Cost Cost Not Applicable -$ 7.20 Landscape Square Foot 7.21 Site Monument Sign Allowance 7.22 Site Furnishings & Equipment Allowance Subtotal 7.15 Backfill Cubic Yard 7.16 Asphalt Square Yard 7.17 Storm Infiltration Allowance 7.18 Site Concrete Square Foot 7.19 Landscape Irrigation Square Foot Square Foot 7.11 Survey, Layout & Staking Lump Sum 7.12 Excavation Cubic Yard 7.13 Removal of Excess Material from Site Cubic Yard 7.14 Building Pad Cubic Yard Allowance 7.3 Temporary Fencing Linear Foot 7.4 Temporary Vehicle Gates Each Div/Sec Description Subtotal Div/Sec Description Units Units 7.1 Temporary Parking Allowance 7.5 Temporary Tree & Plant Protections Allowance 7.6 SWPPP- Silt Fencing Linear Foot 7.7 SWPPP - Inlet Protection Each 7.8 SWPPP- Dust Control Lump Sum 7.9 SWPPP- Maintenance Lump Sum 7.10 Site Demolition / Clear / Grub 7.2 Traffic Control 143 9. Construction Unit Cost Cost Building Cost 1 17,500.00$ 17,500.00$ 19000 0.35$ 6,650.00$ 115 90.00$ 10,350.00$ 10 85.00$ 850.00$ 80 90.00$ 7,200.00$ 9760 2.25$ 21,960.00$ 9760 2.75$ 26,840.00$ 125 145.00$ 18,125.00$ 80 145.00$ 11,600.00$ 135 145.00$ 19,575.00$ 135 145.00$ 19,575.00$ 490 27.50$ 13,475.00$ 1 1,750.00$ 1,750.00$ 24 350.00$ 8,400.00$ 24000 0.70$ 16,800.00$ 1 4,500.00$ 4,500.00$ 1 5,500.00$ 5,500.00$ 8950 14.00$ 125,300.00$ 24 2,250.00$ 54,000.00$ 1 4,500.00$ 4,500.00$ 24 3,000.00$ 72,000.00$ 22 4,000.00$ 88,000.00$ 40 4,250.00$ 170,000.00$ 9760 10.00$ 97,600.00$ 9760 12.50$ 122,000.00$ 5 9,500.00$ 47,500.00$ 2 20,000.00$ 40,000.00$ Project 8,000.00$ 8,000.00$ 535 75.00$ 40,125.00$ 1750 55.00$ 96,250.00$ Project 1,500.00$ 1,500.00$ Project 1,500.00$ 1,500.00$ Project 6,987.50$ 6,988.00$ Project 30,000.00$ 30,000.00$ Project 15,000.00$ 15,000.00$ 19520 0.25$ 4,880.00$ 60 40.00$ 2,400.00$ 12840 0.50$ 6,420.00$ 1600 1.50$ 2,400.00$ 19520 0.40$ 7,808.00$ 19520 2.00$ 39,040.00$ 1600 3.75$ 6,000.00$ 12840 1.00$ 12,840.00$ 9760 1.50$ 14,640.00$ 15450 20.00$ 309,000.00$ 1 4,000.00$ 4,000.00$ 19520 0.15$ 2,928.00$ 47 2,000.00$ 94,000.00$ 3 2,750.00$ 8,250.00$ 4 800.00$ 3,200.00$ 9 4,500.00$ 40,500.00$ 245 55.00$ 13,475.00$ 42000 1.75$ 73,500.00$ 2000 2.85$ 5,700.00$ 17600 5.00$ 88,000.00$ 1550 25.00$ 38,750.00$ 2050 40.00$ 82,000.00$ 9.55 Suspended Acoustical Ceiling 9.56 Resilient Sheet Flooring 9.57 Carpet Square Foot Square Yard Square Yard 9.50 Access Doors & Panels 9.51 Aluminum Store Front Entrance Assembly 9.52 Windows 9.53 Gypsum board - Walls 9.54 Gypsum board - Ceiling Assembly Each Each Square Foot Square Foot Square Foot 9.45 Roofing, Metal 9.46 Roof Accessories 9.47 Roof Flashing 9.48 Solid Core Wood Door Assembly 9.49 Hollow Metal Door & Frame Assembly Square Foot Lump Sum Square Foot Each Each 9.40 Fire Stopping 9.41 Sound Attenuation Insul. 9.42 Foundation Insulation 9.43 Exterior Wall Insulation 9.44 Roof Insulation Square Foot Square Foot Square Foot Square Foot Square Foot 9.35 Cabinets - upper 9.36 Joint Sealers 9.37 Expansion Joint 9.38 Air Barrier 9.39 Dampproofing Allowance Square Foot Linear Foot Square Foot Square Foot 9.30 Interior Wall Framing 9.31 Interior Blocking 9.32 Misc. Framing - Screws, adhesive, etc. 9.33 Finish Carpentry/Trim 9.34 Cabinets - base Linear Foot Allowance Allowance Allowance Allowance 9.25 Steel Decking - Roof 9.26 Miscellaneous Steel Erection 9.27 Steel Stairs 9.28 Misc. Rough Carpentry 9.29 Exterior Wall Framing Square Foot Ton Each Allowance Linear Foot 9.20 CMU - Bucks & Supports 9.21 Structural Steel 9.22 Steel Joists & Girders - Floor 9.23 Steel Joists & Girders - Roof 9.24 Steel Decking - Floor Lump Sum Ton Ton Ton Square Foot 9.15 CMU Reinforcing - Walls (2#/sf) 9.16 Masonry Inserts & Anchors 9.17 Masonry Grouting - cells 9.18 CMU - Split Faced Color 9.19 CMU - Pilasters & Caps Pounds Lump Sum Lump Sum Square Foot Each 9.8 Concrete Footings 9.9 Concrete Foundation Walls Cubic Yard 9.10 Concrete Slab on Grade 9.11 Concrete Slab on Deck 9.12 Concrete Pumping 9.13 Non-Shrink Grouting 9.14 Non-Shrink Grouting - Column Base Plates Cubic Yard Cubic Yard Cubic Yard Allowance Each Div/Sec Description Units Quantity 9.1 Concrete Reinforcing 9.2 Concrete Reinforcing Installation 9.3 Concrete Labor - Continuous Footings 9.4 Concrete Labor - Spot Footings 9.5 Concrete Labor - Foundation Walls 9.6 Concrete Labor - Slab on Grade 9.7 Concrete Labor - Slab on Deck Lump Sum Pounds Cubic Yard Cubic Yard Cubic Yard Square Foot Square Foot Cubic Yard 144 4050 3.00$ 12,150.00$ 19520 2.75$ 80,520.00$ 12840 1.00$ 19,260.00$ 19520 0.40$ 7,808.00$ 12 500.00$ 6,000.00$ 1 10,000.00$ 10,000.00$ 19520 22.00$ 429,440.00$ 19520 7.50$ 146,400.00$ 19520 4.25$ 82,960.00$ 19520 24.00$ 468,480.00$ 19520 1.00$ 19,520.00$ 19520 10.00$ 195,200.00$ 1 1,000.00$ 1,000.00$ 1 1,500.00$ 1,500.00$ 1 72,179.00$ 72,179.00$ 1 445,257.00$ 445,257.00$ 1 430,257.00$ 430,257.00$ 1 250,000.00$ 250,000.00$ 1 32,000.00$ 32,000.00$ 1 31,000.00$ 31,000.00$ 4,831,575.00$ 10. Equipment Unit Cost Cost Building Cost 1 95,000.00$ 95,000.00$ 95,000.00$ 11. Miscellaneous Unit Cost Cost General 1 15,700.00$ 15,700.00$ 15,700.00$ 12. SUBTOTAL (sum of lines 1-11) $ 6,201,363.00 13. Contingencies Unit Cost Cost General 1 298,637.00$ 298,637.00$ 298,637.00$ TOTAL PROJECT COST: $ 6,500,000.00 Div/Sec Description Units Quantity 10.1 Onsite Generator 9.68 Security Cameras Div/Sec Description Units Quantity Subtotal 9.73 Construction General Conditions 9.70 Temporary Construction Signage 9.71 Temporary Project Sign 9.72 Construction Bonds / Insurance 9.74 Construction Overhead & Profit (5% OH & 5%) 9.65 Plumbing 9.66 Fire Suppression 9.67 Electrical 9.69 IT / Telecommunications Square Foot Square Foot Square Foot 9.60 Exterior Sealant (1.5 x SF) 9.61 Interior Signage 9.62 Fire Extinguishers & Cabinets 9.63 Window Treatment 9.64 HVAC Square Foot Square Foot Each Lump Sum Square Foot 9.58 Wall Base 9.59 Interior Paint (1.5x BSF) Linear Foot Square Foot 11.1 Miscellaneous Units Quantity 13.1 Contingencies Subtotal Div/Sec Description Lump Sum Subtotal Lump Sum Subtotal 9.76 City Building Permit Fee 9.77 City Impact Fees Lump Sum Lump Sum Lump Sum Lump Sum Lump Sum Lump Sum Lump Sum Each 9.75 Remodel of Existing Building Lump Sum Square Foot Square Foot 145 146 147 148 149 150 151 152 153 APPENDIX G: Letters of Collaboration G-1 City of Rexburg G-2 Madison County G-3 College of Eastern Idaho G-4 Research & Business Development Center G-5 LEGRANDE Corporation 154     June 15, 2021    To Whom It May Concern:    The City of Rexburg fully supports the East‐Central Idaho Planning & Development Association,  Inc. (ECIPDA) in their application for a grant to further develop their Teton River Business Center  (TRBC) at the heart of our city.  We are excited to collaborate with ECIPDA, Madison County,  Madison Economic Partners, the Research and Business Development Center (RBDC), the College  of Eastern Idaho (CEI), and other partners along with the EDA to do so.  We have a unique  opportunity to capitalize on the skills and services offered by each of these organizations as well  as current trends within the economic development field to greatly benefit the city of Rexburg,  Madison County, our micropolitan statistical area, as well as the surrounding communities.    The City of Rexburg and ECIPDA have been partners in promoting business development services  within Rexburg and Madison County for many years.  Since its inception with EDA funding 10  years ago, ECIPDA’s existing Teton River Business Center has been benefiting the region and  contributing  to  the  community’s  small  business  eco‐system  and  workforce  development  infrastructure.  Its objectives are to (1) increase jobs through economic growth; (2) promote small  business  growth  and  workforce  development  in  the  County;  and  (3)  help  companies  get  established and rooted in the community so that after graduation they become permanent  contributors to the overall vitality, diversity, and growth of the local economy.    Due to the impact that Covid has had, the City of Rexburg is committed to proactively improving  its economic resiliency by augmenting and diversifying its base of local businesses.  Since the  TRBC is completely full and unable to keep up with current demand, the first step in doing so is  the proposed expansion which will allow for the continuation and amplification of its objectives.   It will provide more space for new business incubation, entrepreneurial co‐working, meetings,  and provide opportunities for startups and young companies to collaborate and succeed.  It will  also allow CEI to expand their vocational training, which is critical to the success of our residents  and businesses and provides expanded economic opportunities for our city and surrounding  areas.      The City and ECIPDA have agreed to manage and utilize this space collaboratively.  Rexburg’s  Department of Economic Development currently works with small businesses and entrepreneurs.   ECIPDA will provide the day‐to‐day management of this facility that the city cannot provide at  155 this time, as well as collect rents and offer business development services through the SBA and  other resources.    Again, I urge you to fund ECIPDA’s grant request for the Teton River Business Center expansion  project.    Sincerely,       Jerry Merrill  Mayor, City of Rexburg    156 Telephone (208) 359-6200 Fax (208) 356-8396 P.O. Box 389 / 134 E Main Rexburg, ID 83440 July 1, 2021 To Whom It May Concern: Madison County would like to express its full support of the East-Central Idaho Planning & Development Association, Inc. (ECIPDA) as a collaborative partner to further advance their Teton River Business Center (TRBC) in our county. Madison County lies in a rural area that suffers from low per capita income. It is the only persistent poverty county in Idaho. There is limited availability of family-wage jobs in the county. Therefore, we need to grow and diversify its small business ecosystem and workforce development infrastructure. Post-Covid, the county is taking steps to improve its economic resiliency. The TRBC has been benefiting Madison County and the surrounding region in these ways since it was originally constructed. Through its efforts, we have seen many new businesses become successfully established as permanent contributors to the county's and region's economy. The expanded TRBC will be able to generate even more opportunity for new businesses to collaborate and succeed. We have a unique opportunity to facilitate entrepreneurial collaboration across multiple organizations: students of Brigham Young University — Idaho (BYU-I), College of Eastern Idaho (CEI), the Research and Business Development Center (RBDC) and young entrepreneurs in a high-tech, think-tank incubator environment. The College of Eastern Idaho will also be able to expand its CTE program, workforce development efforts, and other training, which is an essential contribution to the county's residents and overall economy. Please give this application for the Teton River Business Center expansion project your highest consideration. Sincerely, Madison County Commissioners Todd Smith Chairman Brent endenhall 4(S‘4,,, Doug smith 157 June 17, 2021 To Whom It May Concern; College of Eastern Idaho (CEI) is a regional two-year college located in Idaho Falls, Idaho with a mission “to provide open-access to affordable, quality education that meets the needs of students, regional employers, and community.” As president of CEI, it is with great enthusiasm that I write this letter of collaboration on behalf of ECIPDA’s application to EDA for the expansion of the existing Teton River Business Center (TRBC) in Rexburg, Idaho. CEI is currently limited by teaching space in the Rexburg area. In order to aid in the region’s recovery post-pandemic, we have decided to begin expanding our outreach into Rexburg and the rest of the Upper Valley area in the fall of this year. CEI will support the TRBC expansion project by continuing to play an active role as an anchor tenant for the facility as we extend our workforce development and training mission to the north of our existing campus in Idaho Falls. This expansion will provide more workforce and career training opportunities in our Region 6. CEI has utilized numerous advisory committees as we select programs that provide hands-on skills to our regional workforce. Areas the College intends to expand include Health Professions (CNA), Cyber Security, IT, Software Coding, Data Analytics, and Entrepreneurship. These skills will support high school students through technical dual credit (CTE) as well as high school graduates working toward family-wage jobs, training and retraining of the existing workforce, and an outreach into rural Idaho. This expansion will greatly enhance the backfill of a graying workforce in many local businesses, IT-related companies, and the Idaho National Laboratory. CEI also anticipates collaboration with ECIPDA, the Research and Business Development Center and other tenants that occupy co-working space in the incubator to promote entrepreneurship and foster the success of new business ventures. I fully support this application. Regards, Dr. Rick Aman President, College of Eastern Idaho 158 June 18, 2021 Re: Letter of Support As former Executive Directors of the Research & Business Development Center (RBDC), we would like to unitedly provide our support for the grant application for the ECIPDA Regional Technology Center. The benefit provided to the RBDC though a coordinated collaboration has provided measurable benefits to university students, as well as local/regional employers through a better-trained workforce. Starting in 2006, the EDA provided Technical Assistance Grants that led to the formation of the organization that eventually became the RBDC. Since that period of EDA investments, the RBDC has been self-sustaining with a steady increase in funding from state and federal grants, project fees, service contracts and charitable donations that currently exceed $1.1M annually. The number of experiential work projects over this period of time started with a few and now exceed 200 per year. The total number of student experiential work-projects over this period of time exceed 2,200. The biggest impact has been to the student-interns, where over 5,000 have found experiential work and internship opportunities through the RBDC, and these led to meaningful employment post-graduation. Some of the areas of project-related training include: • Software development • Business Management • Finance • Communication • Data Science • Plant Science • Supply Chain • Entrepreneurship • Economics • EE, ME • Physics • Cyber Security • Social Sciences • Public Relations • Marketing Thousands of college students have obtained meaningful work experience because of the initial investment 15 years ago. Thousands of work projects for nearly 1,000 industry clients have provided a talent pool vital to the growth of eastern Idaho. We enthusiastically support the current ECIPDA grant proposal to enhance and accelerate technical projects and workforce skills through a proven pattern of collaboration and partnership. Going forward, the RBDC supports the proposal for the Tech Center funded by this EDA grant. As in the past support, we see and expanded and active role in the success of the facility by incubating and supporting a tech-centric business operation focused on 3D point cloud annotation, data analytics and cyber security. The partnerships with CEI provides the RBDC with an expanded student pool to see this startup company. With EDA funding for the Tech Center, the RBDC can expand our collaboration with CEI and other regional clients to spawn tech companies that are location-neutral (cloud computing, work from anywhere), these will benefit the community’s small business eco-system and workforce development infrastructure. High-tech data analytics and computer engineering will be housed in this facility, which can allow for expansion into Ag-tech with farm/field data analytics. Our service delivery model is fueled by local college graduates (or certificate earning) students that have skills in machine learning, data science, computer science and cyber security. The facility will form the nucleus of the service company, and can support a training facility, remote learning hub and a Security Operations Center (SOC) for the region. Best regards David Merrill Corey Smith Bob Pothier Current Executive Director, RBDC Former Executive Director Former Executive Director DocuSign Envelope ID: 2514B1B6-9D72-4A03-BEF6-39988630B02B 159 (This is a draft letter that is in the process of being edited and signed by Legrande.) December 7, 2021 Tom Kealey, Director Idaho Department of Commerce P.O. Box 83720 Boise, ID 83720-0093 Dear Director, LEGRANDE Corporation (Legrande) is an online pharmacy that simplifies the prescription drug market, providing patients with transparent prices and home delivery. Legrande is currently a tenant of the Teton River Business Center (TRBC) in Rexburg. Because of our rapid growth, we have requested to expand our tenancy within the TRBC as we invest private money into expanding the business and adding to our workforce. As such, we are pleased to express our intended collaboration with East-Central Idaho Planning & Development Association, Inc. (ECIPDA) on an application for an Idaho Community Development Block Grant (ICDBG) for its Teton River Business Center (TRBC) expansion project. Legrande has agreed to provide the necessary information about the jobs it creates during the period in which it is a tenant of the TRBC. ECIPDA will use that information for ICDBG job creation documentation purposes. Legrande is aware that for each job, family income must be certified by the employee at the time of hire or be documented through a Commerce-approved screening referral agency. Therefore, Legrande will request each person filling a job to complete the Confidential Income Survey that is found in the CDBG Handbook, Chapter 9: Economic Development – Job Creation, Part C, which will be provided to Legrande by ECIPDA. Thank you for your consideration of this application and its benefit to our company. Sincerely, Anthony Sine, CEO of LEGRANDE Corporation 160 APPENDIX H: Preliminary Drawings H-1 Preliminary Drawings H-2 Site Maps H-3 Environmental Comments H-4 Preliminary Engineering Report 161 4TH NORTH 4TH NORTH3RD EAST THEDEVELOPMENTCOMPANYTETON RIVERBUSINESS CENTERPROPOSEDANNEXScaleProject Name and AddressEXBURGRPlot ScaleDateDescriptionSheetFirm Name and AddressCITYOFAmerica's Family CommunityCITY O F REXBURG,IDAHOESTABLISHEDI 883 TETON RIVER BUSINESS CENTER ANNEXSITE PLAN12-7-20211" = 60'162 ScaleProject Name and AddressEXBURGRPlot ScaleDateDescriptionSheetFirm Name and AddressCITYOFAmerica's Family CommunityCITY O F REXBURG,IDAHOESTABLISHEDI 883 TETON RIVER BUSINESS CENTER ANNEX1ST FLOOR12-7-20211/16" = 1'-0"163 RefrigeratorRefrigerator ScaleProject Name and AddressEXBURGRPlot ScaleDateDescriptionSheetFirm Name and AddressCITYOFAmerica's Family CommunityCITY O F REXBURG,IDAHOESTABLISHEDI 883 TETON RIVER BUSINESS CENTER ANNEX2ND FLOOR12-7-20211/16"=1'-0"164 GIS Map TRBC New Building 165 Aerial Photograph of Subject Site TRBC New Building 166 Zoning Map TRBC New Bldg 167 FEMA Flood Map Subject 168 Survey Map of Subject Site 169 Teton River Business Center Expansion Comments from Agencies regarding Environmental Review Letters 170 1 Calisa Olinquevitch From:William.Teuscher@deq.idaho.gov Sent:Tuesday, October 12, 2021 8:31 AM To:Calisa Olinquevitch Subject:RE: Request for Environmental Review - DEQ Water Calisa, After our review of the proposed project DEQ is of the opinion that there will be no significant impact on surface waters or ground water quality if the contractor implements Best Management Practices for handling any storm water runoff to any surface water. The contractor will need to prepare and follow a Storm Water Pollution Prevention Plan (SWPPP). Sincerely, Willie Teuscher DEQ-IFRO From: Calisa Olinquevitch [mailto:calisa@ecipda.net] Sent: Tuesday, October 5, 2021 3:09 PM To: William Teuscher Cc: Ted Hendricks Subject: Request for Environmental Review - DEQ Water Hello Mr. Teuscher, Please see the attached letter requesting official comment from your office for our proposed construction project. Thank you, Calisa Clayton Olinquevitch calisa@ecipda.net 208-754-4711 171 1 Calisa Olinquevitch From:Alex.Bell@deq.idaho.gov Sent:Thursday, October 7, 2021 10:43 AM To:Calisa Olinquevitch Cc:Troy.Saffle@deq.idaho.gov Subject:RE: Request for Environmental Review - DEQ Hello Calisa, After reviewing the details of this proposed construction project, DEQ has determined that there shouldn’t be a significant risk of negatively affecting the nearby surface water--if the construction project follows the plans as laid in the document you shared. Please note that a storm water permit may be necessary for this project if it disturbs more than one acre or if this project is part of a larger development that exceeds one acre. Additional information can be found here: https://www.deq.idaho.gov/water-quality/wastewater/storm-water/ Don’t hesitate at all to call or email anytime with questions or if you have any additional project information to provide. Thanks, Alex Bell | Regional Monitoring and Assessment Coordinator Idaho Department of Environmental Quality 900 Skyline Dr # B, Idaho Falls, ID, 83402 Office: (208) 528-2679 http://www.deq.idaho.gov/ From: Calisa Olinquevitch [mailto:calisa@ecipda.net] Sent: Tuesday, October 5, 2021 2:10 PM To: Troy Saffle Cc: Ted Hendricks Subject: Request for Environmental Review - DEQ Hello Mr. Saffle / DEQ Water Quality Manager, Please see the attached letter requesting official comment from your office for our proposed construction project. Thank you, Calisa Clayton Olinquevitch calisa@ecipda.net 208-754-4711 172 1 Calisa Olinquevitch From:Gross, Ryan <Gross.Ryan@epa.gov> Sent:Wednesday, November 3, 2021 12:30 AM To:Calisa Olinquevitch Cc:Ted Hendricks Subject:EPA Sole Source Aquifer Project Review- TRBC Expansion Good afternoon, Thank you for submitting your project information to the US EPA Region 10 Sole Source Aquifer Program. The Sole Source Aquifer Program reviews projects that are both proposed in a federally-designated Sole Source Aquifer review area and receive federal financial assistance. We review information submitted by project proponents to determine if the action has a potential to endanger human health by contaminating the aquifer. We have completed our review of the Teton River Business Center Expansion in Rexburg, Idaho. We find that the project, as described in your submission, will not have a significant adverse impact on the Eastern Snake River Plain Aquifer Area SSA. Therefore, the federal funding for the project may proceed. The finding of no significant adverse impact is conditioned on the assumption that best management practices will be implemented to protect any wells that may be impacted by runoff from the construction site. Please consider in the design of the best management practices for this site that the Idaho Department of Water Resources Find-A-Well website indicates that there is an injection well across the street from the site at the Health and Welfare Department Office. This correspondence only addresses requirements of the EPA Sole Source Aquifer Program. You are responsible for complying with any other federal environmental requirements. Please retain this email for your records. V/R, Ryan Gross, P.E. (he/him) Groundwater Protection Program US EPA Region 10 – Water Division 1200 Sixth Ave, Suite 155, MS 19-H16, Seattle, WA 98101 ph. 206-553-6293 From: Calisa Olinquevitch <calisa@ecipda.net> Sent: Friday, October 22, 2021 1:04 PM To: Gross, Ryan <Gross.Ryan@epa.gov> Cc: Ted Hendricks <Ted.Hendricks@ecipda.net> Subject: RE: Request for Environmental Review - EPA Hello Ryan, Attached is the completed checklist as per your request. Please let me know if you have any further questions. Thank you! Calisa Clayton Olinquevitch 173 1 Calisa Olinquevitch From:Gray,Jacob <jacob.gray@idfg.idaho.gov> Sent:Friday, November 5, 2021 1:17 PM To:Calisa Olinquevitch Cc:Ted Hendricks Subject:RE: Request for Environmental Review - IDFG Calisa, The proximity of the proposed action to what are already substantial developments means that any impacts to fish and wildlife populations from development in this area have already been realized. I have reviewed the materials that you have sent at the time, given the information you provided IDFG has no comments or recommendations pertaining to this project at this time. If this project requires modification or further review I would be happy to provide that as well, upon request. Sorry for the delay, you did have the correct person. Sincerely, Jacob From: Calisa Olinquevitch <calisa@ecipda.net> Sent: Friday, November 5, 2021 12:23 PM To: Gray,Jacob <jacob.gray@idfg.idaho.gov> Cc: Ted Hendricks <Ted.Hendricks@ecipda.net> Subject: FW: Request for Environmental Review - IDFG Hello Mr. Gray, I’m following up to see if you received our Request for Environmental Review (attached) and see if you have any questions for me? If you are not the correct person for this request, could you please direct me to whom I should be speaking about this? Thank you! Calisa Clayton Olinquevitch calisa@ecipda.net 208-754-4711 From: Calisa Olinquevitch Sent: Friday, October 15, 2021 9:23 AM To: 'jacob.gray@idfg.idaho.gov' <jacob.gray@idfg.idaho.gov> Cc: Ted Hendricks <ted.hendricks@ecipda.net> Subject: RE: Request for Environmental Review - IDFG Good morning, I just wanted to check to make sure you received my email request below and see if you have any questions for me? Thanks! 174 1 Calisa Olinquevitch From:O’Shea, Maureen <Maureen.OShea@idwr.idaho.gov> Sent:Friday, October 15, 2021 11:05 AM To:Calisa Olinquevitch Subject:Re: Request for Environmental Review - IDWR - 343 E 4th N, Rexburg Calisa, Revised comments for Environmental Review - IDWR - 343 E 4th N, Rexburg 343 E 4th N is located in the AE Zone with a BFE of about 4868.0 ft. The lowest floor in the building must be at or above 4868.0 ft. plus any freeboard the City or County may require. §60.3 Flood plain management criteria for flood-prone areas. … Minimum standards for communities are as follows: (a) … the community shall: (2) Review proposed development to assure that all necessary permits have been received from those governmental agencies from which approval is required by Federal or State law, including section 404 of the Federal Water Pollution Control Act Amendments of 1972, 33 U.S.C. 1334; (3) Review all permit applications to determine whether proposed building sites will be reasonably safe from flooding. If a proposed building site is in a flood-prone area, all new construction and substantial improvements shall (i) be designed (or modified) and adequately anchored to prevent flotation, collapse, or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy, (ii) be constructed with materials resistant to flood damage, (iii) be constructed by methods and practices that minimize flood damages, and (iv) be constructed with electrical, heating, ventilation, plumbing, and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding. (4) Review subdivision proposals and other proposed new development, including manufactured home parks or subdivisions, to determine whether such proposals will be reasonably safe from flooding. If a subdivision proposal or other proposed new development is in a flood-prone area, any such proposals shall be reviewed to assure that (i) all such proposals are consistent with the need to minimize flood damage within the flood-prone area, (ii) all public utilities and facilities, such as sewer, gas, electrical, and water systems are located and constructed to minimize or eliminate flood damage, and (iii) adequate drainage is provided to reduce exposure to flood hazards; (5) Require within flood-prone areas new and replacement water supply systems to be designed to minimize or eliminate infiltration of flood waters into the systems; and (6) Require within flood-prone areas (i) new and replacement sanitary sewage systems to be designed to minimize or eliminate infiltration of flood waters into the systems and discharges from the systems into flood waters and 175 2 (ii) onsite waste disposal systems to be located to avoid impairment to them or contamination from them during flooding. (b) … the community shall: (1) Require permits for all proposed construction and other developments including the placement of manufactured homes, within Zone A on the community's FIRM; (2) Require the application of the standards in paragraphs (a) (2), (3), (4), (5) and (6) of this section to development within Zone A on the community's FIRM; (5) Where base flood elevation data are utilized, within Zone A on the community's FHBM or FIRM: (i) Obtain the elevation (in relation to mean sea level) of the lowest floor (including basement) of all new and substantially improved structures, and (ii) Obtain, if the structure has been floodproofed in accordance with paragraph (c)(3)(ii) of this section, the elevation (in relation to mean sea level) to which the structure was floodproofed, and (iii) Maintain a record of all such information with the official designated by the community under §59.22 (a)(9)(iii); (7) Assure that the flood carrying capacity within the altered or relocated portion of any watercourse is maintained; (8) Require that all manufactured homes to be placed within Zone A on a community's FIRM shall be installed using methods and practices which minimize flood damage. For the purposes of this requirement, manufactured homes must be elevated and anchored to resist flotation, collapse, or lateral movement. Methods of anchoring may include, but are not to be limited to, use of over-the-top or frame ties to ground anchors. This requirement is in addition to applicable State and local anchoring requirements for resisting wind forces. (This includes construction trailers) (c) … the community shall: (1) Require the standards of paragraph (b) of this section within all AE zones, on the community's FIRM; (3) Require that all new construction and substantial improvements of non-residential structures within Zone AE on the community's firm (i) have the lowest floor (including basement) elevated to or above the base flood level or, (ii) together with attendant utility and sanitary facilities, be designed so that below the base flood level the structure is watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; (4) Provide that where a non-residential structure is intended to be made watertight below the base flood level, (i) a registered professional engineer or architect shall develop and/or review structural design, specifications, and plans for the construction, and shall certify that the design and methods of construction are in accordance with accepted standards of practice for meeting the applicable provisions of paragraph (c)(3)(ii) or (c)(8)(ii) of this section, and (ii) a record of such certificates which includes the specific elevation (in relation to mean sea level) to which such structures are floodproofed shall be maintained with the official designated by the community under §59.22(a)(9)(iii); (5) Require, for all new construction and substantial improvements, that fully enclosed areas below the lowest floor that are usable solely for parking of vehicles, building access or storage in an area other than a basement and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a registered professional engineer or architect or meet or exceed the following minimum criteria: A minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding shall be provided. The bottom of all openings shall be no higher than 176 3 one foot above grade. Openings may be equipped with screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. (10) Require until a regulatory floodway is designated, that no new construction, substantial improvements, or other development (including fill) shall be permitted within Zone AE on the community's FIRM, unless it is demonstrated that the cumulative effect of the proposed development, when combined with all other existing and anticipated development, will not increase the water surface elevation of the base flood more than one foot at any point within the community. (13) Notwithstanding any other provisions of §60.3, a community may approve certain development in Zone AE, on the community's FIRM which increase the water surface elevation of the base flood by more than one foot, provided that the community first applies for a conditional FIRM revision, fulfills the requirements for such a revision as established under the provisions of §65.12, and receives the approval of the Federal Insurance Administrator. (14) Require that recreational vehicles placed on sites within Zones AE on the community's FIRM either (i) Be on the site for fewer than 180 consecutive days, (ii) Be fully licensed and ready for highway use, or (iii) Meet the permit requirements of paragraph (b)(1) of this section and the elevation and anchoring requirements for “manufactured homes” in paragraph (c)(6) of this section. A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions. (This includes construction trailers) 177 4 Thank you, Maureen O'Shea, AICP, CFM NFIP State Coordinator 178 5 Idaho Dept. of Water Resources 322 E Front St, P.O. Box 83720, Boise, ID 83720 Office # 208-287-4928 Cell # 208-830-4174 Maureen.OShea@idwr.idaho.gov www.idwr.idaho.gov/floods From: Calisa Olinquevitch <calisa@ecipda.net> Sent: Friday, October 15, 2021 10:43 To: O’Shea, Maureen <Maureen.OShea@idwr.idaho.gov> Subject: RE: Request for Environmental Review - IDWR - 343 E 4th N, Rexburg Maureen, Thank you very much for your feedback. I believe this will NOT be considered a “Critical Facility”. Following is a summary of the purpose & uses of the new building: As mentioned in the letter, this project will be an expansion to the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID that ECIPDA constructed approximately 15 years ago and still owns and operates. The TRBC has been operating as a hybrid business incubator and workforce development center. The TRBC currently has no vacancy and there is a waiting list of businesses interested in using its services. Therefore, an expansion is necessary to continue and expand upon its services provided to the region. This will consist of the construction of a new 2-story 20,000 ft2 building on a 0.879 acre lot, which was purchased by ECIPDA in December 2020 for this purpose. The lot is adjacent to and directly East of the existing TRBC building. Some remodeling of the existing building may also occur on an as-needed basis. Both buildings will be integrated and serve the goals and objectives of the Teton River Business Center. The College of Eastern Idaho (CEI) has been an anchor tenant in the existing facility and has provided workforce development services for the center. They will also leverage a new partnership with another expected tenant, the Research and Business Development Center (RBDC). This new partnership will allow both RBDC and CEI to augment their programs collaboratively. It will also lend perfectly to creating thriving co-working relationships among other entrepreneurs that will occupy the open-format space in the facility as well as other start-up business tenants. The resulting environment will encourage collaboration among a much broader pool of potential entrepreneurs and future business leaders. Please let me know if you need more information about the project. Thanks! Calisa Clayton Olinquevitch calisa@ecipda.net 208-754-4711 From: O’Shea, Maureen <Maureen.OShea@idwr.idaho.gov> Sent: Wednesday, October 6, 2021 10:47 AM To: Calisa Olinquevitch <calisa@ecipda.net> Cc: Ted Hendricks <Ted.Hendricks@ecipda.net>; Justin Beard <Justin.Beard@rexburg.org>; bpetersen@co.madison.id.us Subject: RE: Request for Environmental Review - IDWR - 343 E 4th N, Rexburg Calisa, The site 343 E 4th N is located in the AE Zone with a BFE of about 4868.0 ft. 179 9 Thank you, Maureen O’Shea, AICP, CFM State NFIP Coordinator Idaho Dept. of Water Resources 322 E. Front Street, PO Box 83720, Boise, ID 83720-0098 Office # 208-287-4928 Cell # 208-830-4174 Maureen.OShea@idwr.idaho.gov https://www.idwr.idaho.gov/floods/ From: Calisa Olinquevitch <calisa@ecipda.net> Sent: Tuesday, October 5, 2021 2:39 PM To: O’Shea, Maureen <Maureen.OShea@idwr.idaho.gov> 180 10 Cc: ted.hendricks@ecipda.net Subject: Request for Environmental Review - IDWR Hello Ms. O’Shea / State NFIP Coordinator, Please see the attached letter requesting official comment from your office for our proposed construction project. Thank you, Calisa Clayton Olinquevitch calisa@ecipda.net 208-754-4711 181 Brad Little Governor of Idaho Janet Gallimore Executive Director State Historic Preservation Officer Administration: 2205 Old Penitentiary Rd. Boise, Idaho 83712 208.334.2682 Fax: 208.334.2774 Idaho State Museum: 610 Julia Davis Dr. Boise, Idaho 83702 208.334.2120 Idaho State Archives and State Records Center: 2205 Old Penitentiary Rd. Boise, Idaho 83712 208.334.2620 State Historic Preservation Office: 210 Main St. Boise, Idaho 83702 208.334.3861 Old Idaho Penitentiary and Historic Sites: 2445 Old Penitentiary Rd. Boise, Idaho 83712 208.334.2844 HISTORY.IDAHO.GOV Preserving the past, enriching the future. 8 October 2021 Calisa Clayton Olinquevitch East-Central Idaho Planning & Development Association, Inc. 299 East 4th North Rexburg, Idaho 83440 Calisa@ecipda.net Via Email RE: Teton River Business Center – New Building Expansion Project Request for Comments for Preparation of an Environmental Information Document / SHPO Rev. No. 2022 Dear Calisa: Thank you for consulting with our office on the above-referenced project. The State Historic Preservation Office is providing comments to the U.S. Department of Agriculture-Rural Development and the U.S. Department of Commerce-Economic Development Administration pursuant to Section 106 of the National Historic Preservation Act and its implementing regulations, 36 CFR § 800. Consultation with the SHPO is not a substitution for consultation with Tribal Historic Preservation Offices, other Native American tribes, local governments, or the public. It is our understanding that the scope of the undertaking will construct a new 20,000 square foot expansion building adjacent to its existing Teton River Business Center (TRBC) in Rexburg, Idaho as well as a slight remodel of the existing building. The project is located at 343 East 4th North, Rexburg, Madison County, Idaho. Pursuant to 36 CFR § 800.5, we have applied the criteria of effect to the proposed undertaking. Based on the information received on 5 October 2021, we concur the proposed project actions will have no effect to historic properties. If cultural material is inadvertently encountered during the implementation of this project, work shall be halted in the vicinity of the finds until they can be inspected and assessed by the appropriate consulting parties. Thank you for the opportunity to comment. Please note that our response does not affect the review timelines afforded to other consulting parties. 182 Additionally, the information provided by other consulting parties may cause us to revise our comments. If you have any questions or the scope of work changes, please contact me via phone or email at 208.488.7463 or ashley.molloy@ishs.idaho.gov. Sincerely, Ashley Molloy, M.A. Historical Review Officer Idaho State Historic Preservation Office 183 1 Calisa Olinquevitch From:Parlette, Alicia A <alicia_parlette@fws.gov> Sent:Thursday, November 4, 2021 3:26 PM To:Calisa Olinquevitch Subject:Teton River Business Center New Building Expansion Project (01EIFW00-2022-TA-0163) Dear Ms. Olinquevitch: The U.S. Fish and Wildlife Service received your October 5, 2021, letter regarding the Teton River Business Center New Building Expansion Project, located on the vacant lot adjacent to and directly to the east of 343 East 4th North, Rexburg, ID. Based on our understanding of the nature and location of the project, we have not identified any conflicts with any species federally listed as threatened or endangered, or proposed for listing, under the Endangered Species Act. Thank you for your interest in the conservation of threatened and endangered species. Please contact me if you have any questions or require further information. Alicia Parlette Fish & Wildlife Biologist U.S. Fish & Wildlife Service Idaho Fish & Wildlife Office 4425 Burley Drive, Suite A Chubbuck, Idaho 83202 (208) 237-6975 ext. 105 (740) 243-9113 (TEMPORARY, please use) 184 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 1/11 IPaC resource list This report is an automatically generated list of species and other resources such as critical habitat (collectively referred to as trust resources) under the U.S. Fish and Wildlife Service's (USFWS) jurisdiction that are known or expected to be on or near the project area referenced below. The list may also include trust resources that occur outside of the project area, but that could potentially be directly or indirectly aected by activities in the project area. However, determining the likelihood and extent of eects a project may have on trust resources typically requires gathering additional site-specic (e.g., vegetation/species surveys) and project-specic (e.g., magnitude and timing of proposed activities) information. Below is a summary of the project information you provided and contact information for the USFWS oce(s) with jurisdiction in the dened project area. Please read the introduction to each section that follows (Endangered Species, Migratory Birds, USFWS Facilities, and NWI Wetlands) for additional information applicable to the trust resources addressed in that section. Location Madison County, Idaho Local oce Idaho Fish And Wildlife Oce  (208) 378-5243  (208) 378-5262 1387 South Vinnell Way, Suite 368 Boise, ID 83709-1657 U.S. Fish & Wildlife ServiceIPaC 185 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 2/11 Endangered species This resource list is for informational purposes only and does not constitute an analysis of project level impacts. The primary information used to generate this list is the known or expected range of each species. Additional areas of inuence (AOI) for species are also considered. An AOI includes areas outside of the species range if the species could be indirectly aected by activities in that area (e.g., placing a dam upstream of a sh population even if that sh does not occur at the dam site, may indirectly impact the species by reducing or eliminating water ow downstream). Because species can move, and site conditions can change, the species on this list are not guaranteed to be found on or near the project area. To fully determine any potential eects to species, additional site-specic and project-specic information is often required. Section 7 of the Endangered Species Act requires Federal agencies to "request of the Secretary information whether any species which is listed or proposed to be listed may be present in the area of such proposed action" for any project that is conducted, permitted, funded, or licensed by any Federal agency. A letter from the local oce and a species list which fullls this requirement can only be obtained by requesting an ocial species list from either the Regulatory Review section in IPaC (see directions below) or from the local eld oce directly. For project evaluations that require USFWS concurrence/review, please return to the IPaC website and request an ocial species list by doing the following: 1. Draw the project location and click CONTINUE. 2. Click DEFINE PROJECT. 3. Log in (if directed to do so). 4. Provide a name and description for your project. 5. Click REQUEST SPECIES LIST. Listed species and their critical habitats are managed by the Ecological Services Program of the U.S. Fish and Wildlife Service (USFWS) and the sheries division of the National Oceanic and Atmospheric Administration (NOAA Fisheries ). Species and critical habitats under the sole responsibility of NOAA Fisheries are not shown on this list. Please contact NOAA Fisheries for species under their jurisdiction. 1. Species listed under the Endangered Species Act are threatened or endangered; IPaC also shows species that are candidates, or proposed, for listing. See the listing status page for more information. IPaC only shows species that are regulated by USFWS (see FAQ). 2. NOAA Fisheries, also known as the National Marine Fisheries Service (NMFS), is an oce of the National Oceanic and Atmospheric Administration within the Department of Commerce. The following species are potentially aected by activities in this location: Insects 1 2 NAME STATUS 186 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 3/11 Flowering Plants Critical habitats Potential eects to critical habitat(s) in this location must be analyzed along with the endangered species themselves. THERE ARE NO CRITICAL HABITATS AT THIS LOCATION. Migratory birds The birds listed below are birds of particular concern either because they occur on the USFWS Birds of Conservation Concern (BCC) list or warrant special attention in your project location. To learn more about the levels of concern for birds on your list and how this list is generated, see the FAQ Monarch Buttery Danaus plexippus Wherever found No critical habitat has been designated for this species. http://ecos.fws.gov/ecp/species/9743 Candidate NAME STATUS Ute Ladies'-tresses Spiranthes diluvialis Wherever found No critical habitat has been designated for this species. http://ecos.fws.gov/ecp/species/2159 Threatened Certain birds are protected under the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act . Any person or organization who plans or conducts activities that may result in impacts to migratory birds, eagles, and their habitats should follow appropriate regulations and consider implementing appropriate conservation measures, as described below. 1. The Migratory Birds Treaty Act of 1918. 2. The Bald and Golden Eagle Protection Act of 1940. Additional information can be found using the following links: Birds of Conservation Concern http://www.fws.gov/birds/management/managed-species/ birds-of-conservation-concern.php Measures for avoiding and minimizing impacts to birds http://www.fws.gov/birds/management/project-assessment-tools-and-guidance/ conservation-measures.php Nationwide conservation measures for birds http://www.fws.gov/migratorybirds/pdf/management/nationwidestandardconservationmeasures.pdf 1 2 187 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 4/11 below. This is not a list of every bird you may nd in this location, nor a guarantee that every bird on this list will be found in your project area. To see exact locations of where birders and the general public have sighted birds in and around your project area, visit the E-bird data mapping tool (Tip: enter your location, desired date range and a species on your list). For projects that occur o the Atlantic Coast, additional maps and models detailing the relative occurrence and abundance of bird species on your list are available. Links to additional information about Atlantic Coast birds, and other important information about your migratory bird list, including how to properly interpret and use your migratory bird report, can be found below. For guidance on when to schedule activities or implement avoidance and minimization measures to reduce impacts to migratory birds on your list, click on the PROBABILITY OF PRESENCE SUMMARY at the top of your list to see when these birds are most likely to be present and breeding in your project area. NAME BREEDING SEASON (IF A BREEDING SEASON IS INDICATED FOR A BIRD ON YOUR LIST, THE BIRD MAY BREED IN YOUR PROJECT AREA SOMETIME WITHIN THE TIMEFRAME SPECIFIED, WHICH IS A VERY LIBERAL ESTIMATE OF THE DATES INSIDE WHICH THE BIRD BREEDS ACROSS ITS ENTIRE RANGE. "BREEDS ELSEWHERE" INDICATES THAT THE BIRD DOES NOT LIKELY BREED IN YOUR PROJECT AREA.) Bald Eagle Haliaeetus leucocephalus This is not a Bird of Conservation Concern (BCC) in this area, but warrants attention because of the Eagle Act or for potential susceptibilities in oshore areas from certain types of development or activities. http://ecos.fws.gov/ecp/species/1626 Breeds Dec 1 to Aug 31 Cassin's Finch Carpodacus cassinii This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. http://ecos.fws.gov/ecp/species/9462 Breeds May 15 to Jul 15 Evening Grosbeak Coccothraustes vespertinus This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. Breeds May 15 to Aug 10 Franklin's Gull Leucophaeus pipixcan This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. Breeds May 1 to Jul 31 188 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 5/11 Probability of Presence Summary The graphs below provide our best understanding of when birds of concern are most likely to be present in your project area. This information can be used to tailor and schedule your project activities to avoid or minimize impacts to birds. Please make sure you read and understand the FAQ "Proper Interpretation and Use of Your Migratory Bird Report" before using or attempting to interpret this report. Probability of Presence () Each green bar represents the bird's relative probability of presence in the 10km grid cell(s) your project overlaps during a particular week of the year. (A year is represented as 12 4-week months.) A taller bar indicates a higher probability of species presence. The survey eort (see below) can be used to establish a level of condence in the presence score. One can have higher condence in the presence score if the corresponding survey eort is also high. How is the probability of presence score calculated? The calculation is done in three steps: 1. The probability of presence for each week is calculated as the number of survey events in the week where the species was detected divided by the total number of survey events for that week. For example, if in week 12 there were 20 survey events and the Spotted Towhee was found in 5 of them, the probability of presence of the Spotted Towhee in week 12 is 0.25. 2. To properly present the pattern of presence across the year, the relative probability of presence is calculated. This is the probability of presence divided by the maximum probability of presence across all weeks. For example, imagine the probability of presence in week 20 for the Spotted Lesser Yellowlegs Tringa avipes This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. http://ecos.fws.gov/ecp/species/9679 Breeds elsewhere Marbled Godwit Limosa fedoa This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. http://ecos.fws.gov/ecp/species/9481 Breeds elsewhere Olive-sided Flycatcher Contopus cooperi This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. http://ecos.fws.gov/ecp/species/3914 Breeds May 20 to Aug 31 Rufous Hummingbird selasphorus rufus This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. http://ecos.fws.gov/ecp/species/8002 Breeds Apr 15 to Jul 15 Willet Tringa semipalmata This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska. Breeds Apr 20 to Aug 5 189 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 6/11  no data survey eort breeding season probability of presence Towhee is 0.05, and that the probability of presence at week 12 (0.25) is the maximum of any week of the year. The relative probability of presence on week 12 is 0.25/0.25 = 1; at week 20 it is 0.05/0.25 = 0.2. 3. The relative probability of presence calculated in the previous step undergoes a statistical conversion so that all possible values fall between 0 and 10, inclusive. This is the probability of presence score. To see a bar's probability of presence score, simply hover your mouse cursor over the bar. Breeding Season () Yellow bars denote a very liberal estimate of the time-frame inside which the bird breeds across its entire range. If there are no yellow bars shown for a bird, it does not breed in your project area. Survey Eort () Vertical black lines superimposed on probability of presence bars indicate the number of surveys performed for that species in the 10km grid cell(s) your project area overlaps. The number of surveys is expressed as a range, for example, 33 to 64 surveys. To see a bar's survey eort range, simply hover your mouse cursor over the bar. No Data () A week is marked as having no data if there were no survey events for that week. Survey Timeframe Surveys from only the last 10 years are used in order to ensure delivery of currently relevant information. The exception to this is areas o the Atlantic coast, where bird returns are based on all years of available data, since data in these areas is currently much more sparse. SPECIES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Bald Eagle Non-BCC Vulnerable (This is not a Bird of Conservation Concern (BCC) in this area, but warrants attention because of the Eagle Act or for potential susceptibilities in o shore areas from certain types of development or activities.) 190 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 7/11 Cassin's Finch BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Evening Grosbeak BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Franklin's Gull BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Lesser Yellowlegs BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Marbled Godwit BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) 191 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 8/11 Olive-sided Flycatcher BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Rufous Hummingbird BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Willet BCC Rangewide (CON) (This is a Bird of Conservation Concern (BCC) throughout its range in the continental USA and Alaska.) Tell me more about conservation measures I can implement to avoid or minimize impacts to migratory birds. Nationwide Conservation Measures describes measures that can help avoid and minimize impacts to all birds at any location year round. Implementation of these measures is particularly important when birds are most likely to occur in the project area. When birds may be breeding in the area, identifying the locations of any active nests and avoiding their destruction is a very helpful impact minimization measure. To see when birds are most likely to occur and be breeding in your project area, view the Probability of Presence Summary. Additional measures or permits may be advisable depending on the type of activity you are conducting and the type of infrastructure or bird species present on your project site. What does IPaC use to generate the migratory birds potentially occurring in my specied location? The Migratory Bird Resource List is comprised of USFWS Birds of Conservation Concern (BCC)and other species that may warrant special attention in your project location. The migratory bird list generated for your project is derived from data provided by the Avian Knowledge Network (AKN). The AKN data is based on a growing collection of survey, banding, and citizen science datasets and is queried and ltered to return a list of those birds reported as occurring in the 10km grid cell(s) which your project intersects, and that have been identied as warranting special attention because they are a BCC species in that area, an eagle (Eagle Act requirements may apply), or a species that has a particular vulnerability to oshore activities or development. 192 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 9/11 Again, the Migratory Bird Resource list includes only a subset of birds that may occur in your project area. It is not representative of all birds that may occur in your project area. To get a list of all birds potentially present in your project area, please visit the AKN Phenology Tool. What does IPaC use to generate the probability of presence graphs for the migratory birds potentially occurring in my specied location? The probability of presence graphs associated with your migratory bird list are based on data provided by the Avian Knowledge Network (AKN). This data is derived from a growing collection of survey, banding, and citizen science datasets . Probability of presence data is continuously being updated as new and better information becomes available. To learn more about how the probability of presence graphs are produced and how to interpret them, go the Probability of Presence Summary and then click on the "Tell me about these graphs" link. How do I know if a bird is breeding, wintering, migrating or present year-round in my project area? To see what part of a particular bird's range your project area falls within (i.e. breeding, wintering, migrating or year-round), you may refer to the following resources: The Cornell Lab of Ornithology All About Birds Bird Guide, or (if you are unsuccessful in locating the bird of interest there), the Cornell Lab of Ornithology Neotropical Birds guide. If a bird on your migratory bird species list has a breeding season associated with it, if that bird does occur in your project area, there may be nests present at some point within the timeframe specied. If "Breeds elsewhere" is indicated, then the bird likely does not breed in your project area. What are the levels of concern for migratory birds? Migratory birds delivered through IPaC fall into the following distinct categories of concern: 1. "BCC Rangewide" birds are Birds of Conservation Concern (BCC) that are of concern throughout their range anywhere within the USA (including Hawaii, the Pacic Islands, Puerto Rico, and the Virgin Islands); 2. "BCC - BCR" birds are BCCs that are of concern only in particular Bird Conservation Regions (BCRs) in the continental USA; and 3. "Non-BCC - Vulnerable" birds are not BCC species in your project area, but appear on your list either because of the Eagle Act requirements (for eagles) or (for non-eagles) potential susceptibilities in oshore areas from certain types of development or activities (e.g. oshore energy development or longline shing). Although it is important to try to avoid and minimize impacts to all birds, eorts should be made, in particular, to avoid and minimize impacts to the birds on this list, especially eagles and BCC species of rangewide concern. For more information on conservation measures you can implement to help avoid and minimize migratory bird impacts and requirements for eagles, please see the FAQs for these topics. Details about birds that are potentially aected by oshore projects For additional details about the relative occurrence and abundance of both individual bird species and groups of bird species within your project area o the Atlantic Coast, please visit the Northeast Ocean Data Portal. The Portal also oers data and information about other taxa besides birds that may be helpful to you in your project review. Alternately, you may download the bird model results les underlying the portal maps through the NOAA NCCOS Integrative Statistical Modeling and Predictive Mapping of Marine Bird Distributions and Abundance on the Atlantic Outer Continental Shelf project webpage. Bird tracking data can also provide additional details about occurrence and habitat use throughout the year, including migration. Models relying on survey data may not include this information. For additional information on marine bird tracking data, see the Diving Bird Study and the nanotag studies or contact Caleb Spiegel or Pam Loring. 193 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 10/11 What if I have eagles on my list? If your project has the potential to disturb or kill eagles, you may need to obtain a permit to avoid violating the Eagle Act should such impacts occur. Proper Interpretation and Use of Your Migratory Bird Report The migratory bird list generated is not a list of all birds in your project area, only a subset of birds of priority concern. To learn more about how your list is generated, and see options for identifying what other birds may be in your project area, please see the FAQ "What does IPaC use to generate the migratory birds potentially occurring in my specied location". Please be aware this report provides the "probability of presence" of birds within the 10 km grid cell(s) that overlap your project; not your exact project footprint. On the graphs provided, please also look carefully at the survey eort (indicated by the black vertical bar) and for the existence of the "no data" indicator (a red horizontal bar). A high survey eort is the key component. If the survey eort is high, then the probability of presence score can be viewed as more dependable. In contrast, a low survey eort bar or no data bar means a lack of data and, therefore, a lack of certainty about presence of the species. This list is not perfect; it is simply a starting point for identifying what birds of concern have the potential to be in your project area, when they might be there, and if they might be breeding (which means nests might be present). The list helps you know what to look for to conrm presence, and helps guide you in knowing when to implement conservation measures to avoid or minimize potential impacts from your project activities, should presence be conrmed. To learn more about conservation measures, visit the FAQ "Tell me about conservation measures I can implement to avoid or minimize impacts to migratory birds" at the bottom of your migratory bird trust resources page. Facilities National Wildlife Refuge lands Any activity proposed on lands managed by the National Wildlife Refuge system must undergo a 'Compatibility Determination' conducted by the Refuge. Please contact the individual Refuges to discuss any questions or concerns. THERE ARE NO REFUGE LANDS AT THIS LOCATION. Fish hatcheries THERE ARE NO FISH HATCHERIES AT THIS LOCATION. Wetlands in the National Wetlands Inventory Impacts to NWI wetlands and other aquatic habitats may be subject to regulation under Section 404 of the Clean Water Act, or other State/Federal statutes. 194 10/18/21, 8:03 PM IPaC: Explore Location resources https://ecos.fws.gov/ipac/location/52VCCW2VRFGFRDZYFVNJNRL4WE/resources 11/11 For more information please contact the Regulatory Program of the local U.S. Army Corps of Engineers District. THERE ARE NO KNOWN WETLANDS AT THIS LOCATION. Data limitations The Service's objective of mapping wetlands and deepwater habitats is to produce reconnaissance level information on the location, type and size of these resources. The maps are prepared from the analysis of high altitude imagery. Wetlands are identied based on vegetation, visible hydrology and geography. A margin of error is inherent in the use of imagery; thus, detailed on-the-ground inspection of any particular site may result in revision of the wetland boundaries or classication established through image analysis. The accuracy of image interpretation depends on the quality of the imagery, the experience of the image analysts, the amount and quality of the collateral data and the amount of ground truth verication work conducted. Metadata should be consulted to determine the date of the source imagery used and any mapping problems. Wetlands or other mapped features may have changed since the date of the imagery or eld work. There may be occasional dierences in polygon boundaries or classications between the information depicted on the map and the actual conditions on site. Data exclusions Certain wetland habitats are excluded from the National mapping program because of the limitations of aerial imagery as the primary data source used to detect wetlands. These habitats include seagrasses or submerged aquatic vegetation that are found in the intertidal and subtidal zones of estuaries and nearshore coastal waters. Some deepwater reef communities (coral or tubercid worm reefs) have also been excluded from the inventory. These habitats, because of their depth, go undetected by aerial imagery. Data precautions Federal, state, and local regulatory agencies with jurisdiction over wetlands may dene and describe wetlands in a dierent manner than that used in this inventory. There is no attempt, in either the design or products of this inventory, to dene the limits of proprietary jurisdiction of any Federal, state, or local government or to establish the geographical scope of the regulatory programs of government agencies. Persons intending to engage in activities involving modications within or adjacent to wetland areas should seek the advice of appropriate federal, state, or local agencies concerning specied agency regulatory programs and proprietary jurisdictions that may aect such activities. 195 (This report was prepared for the application ECIPDA is preparing to submit for an ARPA EAA Grant from EDA.) Teton River Business Center Expansion ED-900C C. Preliminary Engineering Report East-Central Idaho Planning & Development Association, Inc. (ECIPDA) collaborated with the City of Rexburg to prepare this Preliminary Engineering Report for the Teton River Business Center (TRBC) expansion project by the City’s engineering staff. The City of Rexburg employs four licensed professional engineers with a combined experience of over 68 years, plus support staff. The engineers provide planning, design, and construction administration services for municipal projects within the City, oversight of development, and administration of public works departments. Any questions regarding this report can be directed to the following contacts: Name Title Organization Email Phone Keith Davidson P.E., City Engineer City of Rexburg keith.davidson@rexburg.org 208-359-3020 Ted Hendricks Economic Development Director ECIPDA Ted.Hendricks@ecipda.net 208-390-4524 Calisa Clayton Project Administrator ECIPDA Calisa@ecipda.net 208-754-4711 C.1. Description of project components. Provide a general description of all project components involved in the project. Indicate whether the project involves the construction of new infrastructure or facilities or the renovation or replacement of existing ones. Describe each of the project components in terms of dimensions, quantities, capacities, square footage, etc. This project will be an expansion to the current Teton River Business Center (TRBC) located at 343 East 4th North, Rexburg, Idaho. The existing facility was constructed approximately 13 years ago. This project will expand the TRBC by remodeling (as needed) the existing facility and constructing a new building adjacent to the current building. The new construction will consist of a new 2-story 20,000 square foot building on a 0.879 acre lot, which was purchased by ECIPDA in December 2020 for this purpose. The lot is adjacent to and directly east of the existing TRBC building. The new facility will include state of the art communication systems, including access to standby power. The existing TRBC building has a parking lot that will be expanded to serve both buildings. C.2. A statement verifying that the project components described in the engineering report are consistent with the EDA investment project description that is provided in Section B.2 of Form ED-900. Engineering reports that describe project components that are inconsistent with the EDA investment project description in Section B.2 of Form ED-900 will not be considered valid. All project components described in this report are consistent with the EDA investment project description in ED-900 Section B.2. 196 C.3. Drawings showing the general layout and location of the existing site conditions and of the project components as well as location of any project beneficiary identified in Section B.9 of Form ED-900 that provide economic justification for the project, if any. Rough dimensions and quantities for major project components should be shown and labeled on the drawings. Drawings should clearly identify the project components that are being proposed. Applicants are encouraged to clarify such drawings, for example, through color coding, labeling, and other appropriate methods. Preliminary drawings showing the conceptual general layout of the building and site are attached (see Appendix H-1: Preliminary drawings). C.4. A feasibility analysis for the constructability of the project. Include a review of the existing conditions and note particular features, alignments, and circumstances affecting construction of project components. It is not anticipated that the location will affect the constructability of the project. The building site is a lot in an existing business park on an existing city street with existing water, sewer, electrical service, and communication service; therefore, access and utilities are not anticipated to be an issue. The building site is located within the Special Flood Hazard Area as identified on the current FEMA Flood Insurance Rate Map. This will require the building to be elevated so the lowest floor and all mechanical and electrical equipment is at least 1 foot above the base flood elevation, per the City ordinance. This appears to be feasible—the existing building is also located within the floodplain and was elevated to this height. The cost of construction is expected to be approximately $275 per square foot due to the recent increase in costs of labor and building materials; however, it is anticipated that building materials will be obtainable. The land is zoned as Community Business Center (CBC) and so will allow construction of this type of building without a conditional use permit. C.5. The proposed method of construction. Indicate whether construction procurement will be done through competitive bid or other method. Indicate if any portion of the project is to be done by design/build, construction management at risk, the applicant’s own forces, or a third-party construction manager. If an alternate construction procurement method (other than traditional design/bid/build with sealed competitive bid process) is proposed, a construction services procurement plan must be provided to EDA for approval in accordance with EDA’s regulation at 13 C.F.R. § 305.6(a). ECIPDA plans to follow EDA’s traditional design/bid/build procedures for the procurement of construction services. The design for the improvements will be conducted by a licensed architect procured under Federal guidelines utilizing the qualification-based request for proposal method. The project will be advertised and bid to select the construction contractor through a federally approved competitive bid process. C.6. The number of construction contracts anticipated. If multiple contracts are proposed, describe the project components included in each contract. If separate contracts are anticipated for demolition or site work, the budget information cost classification should reflect the estimated costs for these components. If project phasing is proposed, a project phasing request must be provided to EDA for approval per EDA’s regulation at 13 C.F.R. § 305.9(a). It is anticipated that the entire project will be included in a single general contract. Any required subcontracting will be done by the general contractor. It is not anticipated that the project will be bid out in phases. 197 C.7. A current detailed construction cost estimate for each of the project components. Show quantities, unit prices, and total costs and provide a basis for the determination of construction contingencies. The total of this estimate should match the construction line item of the SF-424C. A detailed construction cost estimate which matches the SF-424C is attached (see Appendix F-1: Detailed Budget). C.8. Real property acquisition. If the budget includes costs for acquisition of real property, include a current fair market value appraisal completed by a certified appraiser for the property to be purchased. The land was purchased by ECIPDA in December 2020 and the appraisal value of $230,000 will be utilized in the project as local match to any federal funding partners. C.9. A list of all permits required for the proposed project and their current status. Identify all permits required; include the timeline to obtain the permits and discuss how the permitting relates to the overall project schedule. If the project crosses a railroad right-of-way or is within a railroad right-of-way, explain any permitting or approvals that may be required from the railroad or other authority and the timeframe for obtaining these permits or approvals. The following permits are anticipated:  Building Permit for remodel of existing building from the City of Rexburg. To be requested once the plans are completed. Anticipated to take 1 month to receive after submission of plans.  Building Permit for construction of new building from the City of Rexburg. To be requested once the plans are completed. Anticipated to take 1 month to receive after submission of plans.  Floodplain Development Permit from the City of Rexburg. To be requested along with the building permit for the new building. Anticipated to take 1 month to receive after submission of plans. C.10. An overall estimated project schedule. This schedule should agree with the project schedule outlined in the ED-900. Include the number of months for each of the following: i. design period; ii. period of time to obtain required permits; iii. period of time to obtain any required easements or rights-of-way; iv. solicitation of bids and awarding of contracts, and v. construction period. The following schedule is anticipated: i. Design – 6 months ii. Permitting – 1 month iii. Required easement or rights-of-way – None needed iv. Solicitation of Bids and Award of Construction Contract – 2 months v. Construction –18 to 24 months 198 C.11. Overall project budget breakdown. For each “cost classifications” line item that the applicant indicates will be included in the project budget on Form SF-424C, the applicant must provide a breakdown of the proposed project costs and tasks that is consistent with the detailed construction cost estimate for the project provided in the PER. Following is a Summary Budget (Project Costs). A detailed cost estimate is also included in Appendix F-1: Detailed Budget. Project Costs Amount 1. Administrative and Legal Expenses $25,000.00 2. Land, Structures, Rights-of-way, Appraisals, etc. $230,000.00 3. Relocation Expenses and Payments $0.00 4. Architectural and Engineering Fees $441,500.00 5. Other Architectural and Engineering Fees (Survey/Geotechnical/Flood Plain Permit) $23,500.00 6. Project Inspection Fees $15,000.00 7. Site Work $524,088.00 8. Demolition and Removal $0.00 9. Building Construction $4,831,575.00 10. Equipment $95,000.00 11. Miscellaneous $15,700.00 12. SUBTOTAL $6,201,363.00 13. Contingencies $298,637.00 Total Project Costs $6,500,000.00 The anticipated sources of funds for the project are summarized as follows: Sources of Funds Amount % of Funds Grant - RISE (Awarded) $ 1,247,312 Grant - EDA (Requesting) $ 3,952,688 Match - ECIPDA - Cash $ 1,070,000 Match - ECIPDA - Land $ 230,000 Total Funding $ 6,500,000 100.00% Total Grants $ 5,200,000 80.00% Total Match - ECIPDA $ 1,300,000 20.00% 199 APPENDIX I: Sub Recipient Information I-1 ECIPDA Organizational Chart I-2 ECIPDA 2020 Audit Report I-3 ECIPDA General Lease Agreement I-4 TRBC Management Policies 200 ECIDC President Managing Director Director Terry Butikofer Terry Butikofer Ted Hendricks STAFF STAFF CONSULTANT Katie Cook - Loan Closing/Servicing Specialist & Rick Miller - Economid Development Team Leader Calisa Oliquevitch Assistant to the Managing Director Krisi Staten - Community Development Planner Katie Jensen - Loan Processor Elise Kahuhu - Project Administrator Leslie Giles - Assistant Loan Closing/Servicing Specialist Forrest Grigg - Loan Officer Fiscal: Preston Condie - Bookkeeper Searle and Hart - Payroll Personnel & Budget Committee GENERAL BOARD President: Melanee Sutton; Vice-President: Rod Bitsoi; Secretary: Blair Coates Managing Director Terry Butikofer Fiscal & Staff Support Economic Development Activities Members at Large: Bruce Sutherland; Brent Mendenhall Loan Department Community Development Oversees and assigns all organizational operations including; human resources, policy, finances and fixed assets. Also, currently acts as the Director of Workforce Development and fulfills WIOA contract witih the Idaho State Department of Labor Department 201 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. REXBURG, IDAHO with INDEPENDENT AUDITOR'S REPORT Years Ended September 30, 2020 and 2019 202 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 TABLE OF CONTENTS ITEM Independent Auditor's Report — Financial Statements FINANCIAL STATEMENTS Statement of Financial Position Statement of Activities Statement of Functional Expenses Statement of Cash Flows Notes to the Financial Statements SUPPLEMENTAL INFORMATION Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of ECIPDA Income & Expenses Schedule of Receipts and Disbursements of Revolving Loan Fund Administration Schedule of Loan Receivables of Revolving Loan Fund Administration Report — Internal Control and Compliance - GAAS Report — Compliance with Each Major Program — Uniform Guidance Schedule of Audit Findings and Responses 203 JENSEN POULSEN & COMPANY, PLLC CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 50700 185 S. CAPITAL IDAHO FALLS, IDAHO 83405-0700 ERNEST M JENSEN, M.B.A., C.P.A. TELEPHONE: (208) 522-2295 ROBERT B. POULSEN, C.P.A. (208) 522-133o SHERI L. POULSEN, C.P.A. FAX: (208) 522-2297 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of East-Central Idaho Planning And Development Association Rexburg, Idaho We have audited the accompanying financial statements of East-Central Idaho Planning and Development Association, (a nonprofit organization) which comprise the statement of financial position as of September 30, 2020 and 2019, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made'by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East-Central Idaho Planning and Development Association as of September 30, 2020 and 2019, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. 204 Other Matter Required Supplementary Information Management has omitted management's discussion and analysis and budgetary comparison information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits, and the schedule of receipts and disbursements of revolving loan administration, schedule of loan receivables of revolving loan administration, and schedule of ECIPDA income and expenses on pages 16-17 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2021, on our consideration of East-Central Idaho Planning and Development Association's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering East-Central Idaho Planning and Development Association's internal control over financial reporting and compliance. JENSEN POULSEN & COMPANY, PLLC Certified Public Accountants Idaho Falls, ID January 28, 2021 205 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. STATEMENT OF FINANCIAL POSITION as of September 30, 2020 and 2019 ASSETS WITHOUT DONOR WITH DONOR RESTRICTIONS RESTRICTIONS TOTAL 2020 2019 Cash and Cash Equivalents $ 3,483,558 $ 2,635,575 $ 6,119,133 $ 3,219,651 Receivables Due from Other Agencies 159,554 - 159,554 124,861 Interest Earned 7,249 25,963 33,212 29,559 Rent Receivable 2,767 - 2,767 12,445 Grants Receivable 20,386 20,386 323,850 Miscellaneous Receivable 1,174,886 - 1,174,886 1,207,127 Revolving Loan Fund Receivables 2,087,174 5,564,977 7,652,151 8,279,123 Property Plant and Equipment-net 4,800,407 5,153,911 9,954,318 10,309,564 TOTAL ASSETS $ 11,735,981 $ 13,380,426 $ 25,116,407 $ 23,506,180 LIABILITIES AND FUND EQUITY Liabilities Accounts Payable $ 12,781 $ 34,117 $ 46,898 $ 118,852 Accrued Payroll 41,183 41,183 36,152 Current Portion of Long Term Debt 126,281 126,281 125,226 Accrued Leave Payable 177,681 177,681 161,045 Security Deposits 16,664 16,664 23,980 Accrued Interest Payable 5,956 5,956 4,973 Unearned Revenue 938,138 938,138 966,641 Other Liabilities 58,725 58,725 46,876 Long-Term Liabilities 1,961,907 1,961,907 1,398,805 TOTAL LIABILITIES $ 1,245,172 $ 2,128,261 $ 3,373,433 $ 2,882,550 Net Assets Without Donor Restrictions $ 10,490,809 $ - 10,490,809 10,523,065 With Donor Restrictions - 11,252,165 11,252,165 10,100,565 TOTAL NET ASSETS $ 10,490,809 $ 11,252,165 $ 21,742,974 $ 20,623,630 TOTAL LIABILITIES AND NET ASSETS $ 11,735,981 $ 13,380,426 $ 25,116,407 $ 23,506,180 The notes to the financial statements are an integral part of this statement. 1 206 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. STATEMENT OF ACTIVITIES For the Years Ended September 30, 2020 and 2019 REVENUES WITHOUT DONOR RESTRICTIONS WITH DONOR RESTRICTIONS TOTAL 2020 2019 Federal Grants $ 191,895 $ 803,770 995,665 819,611 Administration 770,462 1,333 771,795 743,046 Interest Earned 164,531 320,836 485,367 484,358 Rents Received 407,429 - 407,429 381,027 Other Revenues - 48,821 Gain (Loss) on Sale of Fixed Assets 77,666 77,666 5,629 Reimbursements - 11,874 Grants (Local) 8,920 259,205 268,125 125,000 Return on Investments 28,504 - 28,504 33,359 Net Assets Released from Restrictions and Satisfaction of Program Restrictions TOTAL REVENUES AND RELEASED NET ASSETS $ 1,649,407 $ 1,385,144 3,034,551 2,652,725 EXPENSES Program Expenses $ 1,170,962 $ 159,738 1,330,700 1,494,640 Management and General 510,701 73,806 584,507 385,665 TOTAL EXPENSES $ 1,681,663 $ 233,544 1,915,207 1,880,305 CHANGE IN NET ASSETS $ (32,256) $ 1,151,600 1,119,344 772,420 NET ASSETS AT BEGINNING OF YEAR 10,523,065 10,100,565 20,623,630 19,851,210 NET ASSETS AT END OF YEAR $ 10,490,809 $ 11,252,165 21,742,974 20,623,630 The notes to the financial statements are an integral part of this statement. 2 207 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. STATEMENT OF FUNCTIONAL EXPENSES For the Years Ended September 30, 2020 and 2019 EXPENSES PROGRAM SERVICES MANAGEMENT AND GENERAL 2020 TOTAL 2019 TOTAL Salaries $ 560,208 $ 74,521 $ 634,729 $ 585,344 Personnel Burden 207,392 168,037 375,429 319,274 Administrative 148,182 148,182 164,245 Payback on Investments 8,550 8,550 56,837 Supplies 27,229 17,818 45,047 18,633 Postage 1,243 1,219 2,462 1,755 Fuel for Autos 1,320 4,702 6,022 9,951 Audit - 17,165 17,165 16,605 Interest 15,822 15,822 18,084 Commissions and Closing Fees 17,718 17,718 4,891 Consultants / Memberships 30,544 48,527 79,071 85,719 Printing 3,313 1,724 5,037 992 Insurance 891 23,528 24,419 25,840 Travel and Entertainment 7,870 2,214 10,084 17,885 Marketing 6,505 2,655 9,160 8,534 Janitorial 26,862 1,140 28,002 23,767 Telephone 874 5,700 6,574 5,970 Maintenance & Repairs 32,420 8,663 41,083 48,648 Automobile 7,643 4,988 12,631 8,333 Board Activities 430 605 1,035 730 Staff Education 1,055 6,932 7,987 1,596 Utilities 80,034 1,947 81,981 81,814 Miscellaneous 19,595 4,016 23,611 16,792 Grant match 125,000 - 125,000 Bad Debt Expense - - - 255,862 Depreciation 188,406 188,406 102,204 TOTAL EXPENSES $ 1,330,700 $ 584,507 $ 1,915,207 $ 1,880,305 The notes to the financial statements are an integral part of this statement. 3 208 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. STATEMENT OF CASH FLOWS For the Years Ended September 30, 2020 and 2019 CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2020 2019 Increase (decrease) in net assets $ 1,119,344 $ 772,420 Adjustments to reconcile increase (decrease) in net assets provided (used) by operations Depreciation & amortization 188,406 102,204 (Increase) decrease in: Due from other agencies (34,693) 5,531 Interest receivable-net of doubtful loans (3,653) (6,403) Rent receivable - net of doubtful rents 9,678 9,491 Increase (decrease) in: Accounts payable (60,105) 34,476 Payroll liabilities 21,667 19,520 Accrued interest payable 983 (1,179) Security deposits (7,316) 2,665 Deferred revenue (28,503) (33,359) (Gain) loss on sale of assets (77,666) (5,629) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,128,142 $ 899,737 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment - $ Construction costs (19,060) (945,876) NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES $ (19,060) $ (945,876) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of new long term debt $ 669,860 $ Net effect of RLF loans made and principal collected 1,226,243 (172,819) Principle payment on long term debt (105,703) (143,263) NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES $ 1,790,400 $ (316,082) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 2,899,482 $ (362,221) BEGINNING CASH AND CASH EQUIVALENTS 3,219,651 3,581,872 ENDING CASH AND CASH EQUIVALENTS $ 6,119,133 $ 3,219,651 SUPPLEMENTAL CASH DISCLOSURES Interest expense paid for the fiscal years ended September 30, 2020 and 2019 were $ 15,822 and $ 18,084, respectively. The notes to the financial statements are an integral part of this statement. 4 209 NOTES TO THE FINANCIAL STATEMENTS 210 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The purpose of East-Central Idaho Planning & Development Association is to encourage economic development in a nine-county area in Idaho normally referred to as Region VI by the State of Idaho. The organization helps government agencies procure grants, fund bond issues, and procure federal loans to expand economic development, as well as lend funds to small businesses from federal, state and local sources to help expand and start up. The company collects revenues from the administration of grants, and collects interest and fees for loans made. The company also operates several Business Incubators, to support new and emerging businesses with a place to get started, and then when strong enough, to go out into the community. The company collects sufficient rents from these businesses to cover the costs of operating the incubators. The financial statements are presented in conformity with generally accepted accounting principles as applicable to nonprofit units. The following is a summary of the more significant accounting policies affecting their presentation: a. Income Taxes East-Central Idaho Planning & Development Association is exempt from Federal Income Taxes under Section 501(c)(4) of the Internal Revenue Code. Therefore, no provision for income tax is reflected in these fmancial statements. The Association is not classified as a private foundation by the Internal Revenue Service. The tax returns for fiscal tax years ending 2015, 2016, 2017, 2018, and 2019 are subject to examination as of the report date of these financial statements. b. Basis of Accounting The accounting policies of East-Central Idaho Planning & Development Association conform to generally accepted accounting principles as applicable to nonprofit units. The accrual basis of accounting is followed. Under the accrual basis of accounting, revenues are recorded in the period in which they are earned, and expenses are recorded when incurred c. Depreciation and Capitalization Policy Depreciation has been provided using the straight-line method over the estimated useful lives of the assets. The company policy for capitalizing equipment is anything over $5,000. Property and equipment are recorded at cost. d. Pervasiveness of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, e. Cash and Cash Equivalents Cash and cash equivalents consist of instruments with a maturity of less than twelve months. Cash and cash equivalents are insured by the FDIC up to $250,000 per institution. Amounts that exceeded federal deposit insurance were as follows: 2020 2019 Key Bank $ 3,370,781 $ 966,095 5 211 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) East-Central Idaho Planning and Development Association has invested $2,498,353 as of September 30, 2020 and $1,690,627 as of September 30, 2019 with the Idaho State Investment pool which is an unrated fund and is backed by Government Backed Securities but is not FDIC insured. Temporary and permanent restrictions of cash are based on federally mandated revolving loan fund restriction requirements for the respective fund program to which they belong. f. Allowance for Doubtful Accounts and Non-Accrual Status All accruals for doubtful accounts are based on management's assessment of the collectability of the accounts on an individual basis. Additionally, ECIPDA does not have a formal policy for putting loans on non-accrual status, the decision is made on a case-by-case basis at management's discretion. 2. RETIREMENT PLANS East-Central Idaho Planning and Development Association participates in a retirement plan under Section 401(k) of the Internal Revenue Code. This plan allows eligible employees to defer a portion of their income on a pretax basis through plan contributions. All employees working more than 1,000 in a single year are eligible to participate. The company contributes 5% of the employee's salary without any required match by the employee. However, the company will also contribute up to an additional 5%, matching the employee's contribution dollar for dollar. The employer's cost of the plan was $67,408 for 2020 and $60,952 in 2019. 3. REVOLVING LOAN FUND RECEIVABLE East-Central Idaho Planning and Development owns and operates several Revolving Loan Funds, These funds were capitalized by a Federal Grant, a Federal Loan, and/or Local Funds. The Federal Grant from the EDA is listed on the Schedule of Federal Awards, and the Federal Loans are shown here. The loans receivable from all the RLF accounts consist of the following at September 30, 2020. EDA RLF BALANCE 2020 BALANCE 2019 ORIGINAL AMOUNT Duffy & Connie Enterprises $ 32,254 $ 48,093 $ 179,754 Mill Iron Staple Leather 67,096 76,324 133,000 Speedy CPS LLC 145,548 153,911 212,000 The Pets Center LLC 73,122 79,806 105,897 Let Us Clip Ya LLC 45,018 46,986 52,800 Benjamin and Serena Adams 138,429 143,884 159,899 Teton Peaks Land Holding 353,194 367,179 400,000 MCA LLC 97,365 100,950 108,500 Challis Liquor LLC 52,196 118,000 Weiner, Larry 29,893 33,485 73,733 KK Development LLC 184,163 219,121 254,700 Ashley Properties 88,209 91,500 92,000 Straightedge Sandblasting 64,417 73,602 75,615 Sentinel Land Company 39,944 49,141 51,215 Kimble Oil & Gas 121,420 125,000 125,000 KongCrete Solutions 41,806 48,469 50,000 Moose Tracks Vacation Rentals 100,000 100,000 T&R Holding Flying W Pellets 164,928 165,680 $ 1,785,806 $ 1,709,647 $ 2,457,793 6 212 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 3. REVOLVING LOAN FUND RECEIVABLE (Continued) BALANCE BALANCE EDA #1 2020 2019 ORIGINAL AMOUNT Summit School of the Arts $ 59,060 $ - $ 60,000 $ 59,060 $ - $ 60,000 BALANCE BALANCE ORIGINAL EDA #2 2020 2019 AMOUNT K&R Commercial Properties $ 83,786 $ $ 83,786 The Mehr's LLC 200,000 200,000 AFS Plumbing Service, Inc. 27,458 27,458 $ 311,244 $ $ 311,244 LOCAL RLF BALANCE 2020 BALANCE 2019 ORIGINAL AMOUNT Payroll Express $ $ 72,292 $ 107,000 Zach Hillman Insurance 120,543 127,657 165,000 Challis Lodge & Lounge 236,762 292,500 Swope Enterprises 39,405 41,947 57,750 GCJ Holding 134,789 145,877 190,412 Finish Line Auto Sales 10,245 70,000 Nava's Western Wear 81,235 85,266 100,000 Eagle Rock Engineering 31,139 35,408 51,000 King Investments 96,965 101,055 113,623 Statewide Interiors 55,638 57,896 64,800 Merrill Edwards Holdings 18,421 20,277 30,000 Genesis Investments 250,481 259,201 280,000 S2M Properties 359,333 370,147 380,762 Snarr Properties 53,737 55,527 57,666 Dry Thumb Properties 313,039 316,723 CRC Property Holdings 242,004 247,481 249,893 950 Memorial Drive LLC 161,505 166,792 249,894 Lupa Inc. 100,864 100,864 Challis Roadhouse, LLC 231,041 231,041 Hansen & Harper LLC 141,221 143,500 Empyrean Lux Prop, LLC 69,716 70,000 $ 2,087,173 $ 2,447,733 $ 2,322,428 7 213 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 3. REVOLVING LOAN FUND RECEIVABLE (Continued) BALANCE BALANCE USDA IRP #2 2020 2019 ORIGINAL AMOUNT BN Property Management $ 44,995 $ 150,000 Paradise Garden & Pond 10,604 80,560 Back to Health Chiropractic 108,719 150,000 Banta & Banta Investments 55,735 63,113 110,000 Straight up, LLC 29,365 117,200 Omni Properties LLC 13,228 19,364 94,800 Robertson Taylor LLC 70,093 76,668 143,200 Ellis, Terrie 26,645 75,000 Bonneville Foods Inc. 73,188 77,112 110,000 Gatekeeper Enterprises LLC 33,565 91,200 Beloved Health and Beauty 39,591 47,925 70,000 Wenlau Enterprises LLC 57,925 61,318 79,800 Red Mountain Car Wash 210,310 219,346 250,000 Wiggles N' Waggles Pet 81,054 84,808 98,337 Karie Anne's Frozen Desserts 5,783 17,189 61,991 Speedy CPS 137,613 144,241 173,592 Woodcock Custom Meats 46,171 48,499 57,642 Tony Ventures LLC 219,464 250,000 Tran Investments LLC 66,987 69,717 78,929 FASST LLC 91,139 99,680 Straightedge Properties 222,080 229,433 250,000 Jake's Automotive 202,159 213,006 250,000 Blair Coates 223,265 231,287 250,000 JAK Holdings, LLC 231,778 250,000 Del Riata Investments Holdings 175,981 180,000 180,000 Landmark Properties LLC 226,958 233,069 250,000 Great Oaks Landholdings LLC 122,298 134,482 150,000 NWKW West LLC 235,273 242,577 250,000 Apple Tree Dental 240,911 250,000 Legacy Millwork & Furniture 27,422 30,447 53,540 Advanced Eyecare 156,601 159,917 162,244 Intermountain Construction 174,431 175,766 Bighorn Cabin Rentals LLC 194,439 194,439 $ 2,818,585 $ 3,620,703 $ 5,007,920 USDA IRP #4 BALANCE 2020 BALANCE 2019 ORIGINAL AMOUNT Morr Venture LLC $ 241,663 $ 245,693 $ 250,000 2J Bee Storage LLC 132,995 137,999 150,000 Roundy Shop LLC 65,865 66,348 66,348 The Mehr's LLC 50,000 50,000 U Store, LLC 149,762 150,000 $ 590,285 $ 500,040 $ 666,348 8 214 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 4. MISCELLANEOUS RECEIVABLES A personal loan was made to an employee in the amount of $37,500. This note is to be paid back in bimonthly payments withdrawn from the employee's pay, at 2% interest, The balance on the note as of September 30, 2020 and 2019 was $18,120 and $21,703 respectively. Additionally, Sugar City and St. Anthony Business Park receivables are included in miscellaneous receivables with balances as of September 30, 2020 of $718,628 and $438,138, and balances as of September 30, 2019 of $718,628 and $466,642 respectively 5. LONG TERM DEBT a. East-Central Idaho Planning and Development Association borrowed $500,000 (loan #04 in a previous year) from USDA Rural Development to set up a revolving loan fund. The money was then loaned to various businesses (see Note 3). The note is payable in annual installments of $20,565 including interest at 1% from the RLF fund. The original loan was for 30 years, and the loan matures October 2023. The loan is secured by the receivables in the IRP Revolving Loan Fund. The balance at September 30, 2020 and 2019 was $79,989 and $99,563 respectively. The 1% interest rate is a typical rate for this type of loan. USDA Rural Development charges this rate to encourage economic development in the region. b. East-Central Idaho Planning and Development Association borrowed $1,000,000 (loan #7 in a previous year) from USDA Rural Development to recapitalize the existing IRP Revolving Loan Fund. The money was then loaned to various businesses (see Note 3). The note is payable in animal installments of $42,450 including interest at 1%, from the RLF fund. The original loan was for 30 years, and the loan matures February 2026. The loan is secured by the receivables in the Revolving Loan Fund. The balance at September 30, 2020 and 2019 was $245,514 and $285,306 respectively. c. East-Central Idaho Planning and Development Association borrowed $500,000 (loan #12 in a previous year) from USDA Rural Development to set up another Revolving Loan Fund named the IRP #3, which has now been consolidated with the original IRP. The money was then loaned to various businesses (see Note 3). The note is payable in an annual installment of $21,225 including interest at 1% from the RLF fund. The original loan was for 30 years, and the loan matures June 2028. The loan is secured by receivables in the Revolving Loan Fund. The balance at September 30, 2020 and 2019 was $162,101 and $181,466 respectively. The 1% interest rate is a typical rate for this type of loan, USDA Rural Development charges this rate to encourage economic development in the region. d. East-Central Idaho Planning and Development Association borrowed $500,000 (loan #13 in a previous year) from USDA Rural Development to recapitalize the IRP Revolving Loan Fund. The money was then loaned to various businesses (see Note 3). The note is payable in annual installments of $21,225 including interest at 1% from the RLF fund. The original loan was for 30 years, and the loan matures July 2030. The loan is secured by receivables from the Revolving Loan Fund. The balance at September 30, 2020 and 2019 was $200,693 and $219,787 respectively. The 1% interest rate is a typical rate for this type of loan. USDA Rural Development charges this rate to encourage economic development. e. East-Central Idaho Planning and Development Association borrowed $750,000 (loan #14 in a previous year) from USDA Rural Development to recapitalize the IRP Revolving Loan Fund. The money was then loaned to various businesses (see Note 3). The note is payable in monthly installments of $31,838 annually including interest at 1% from the RLF fund. The original loan was for 30 years, and the loan matures June 2034, The balance at September 30, 2020 and 2019 was $413,541 and $440,993. The 1% interest rate is a typical rate for this type of loan. USDA Rural Development charges this rate to encourage economic development in the region. 9 215 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 5. LONG TERM DEBT (Continued) f. East-Central Idaho Planning and Development Association borrowed $1,000,000 from USDA Rural Development to capitalize a new IRP Revolving Loan Fund. The money is being loaned to various businesses (see Note 3). The note is being disbursed as loans are being made. The loan is payable in interest only installments for the first three years of the life of the loan. Thereafter the loan will be paid annually including interest at 1% from the RLF fund. The original loan was for 30 years, and the loan matures in 2039. The balance at September 30, 2020 and 2019 was $986,350 and $316,490. The 1% interest rate is a typical rate for this type of loan. USDA Rural Development charges this rate to encourage economic development in the region. The maturities of the notes over the next five years consist of the following: For the Year Ended September 30: 2021 126,281 2022 127,544 2023 161,406 2024 162,834 2025 144,083 Total Maturities (Five Years) $ 722,148 6. NET ASSETS Net assets of the organization consist of the following: • Without Donor Restrictions: These net assets are available for general activities. • With Donor Restrictions: These net assets are restricted by donor to be used for some specific purpose, and then may be released upon certain conditions. 7. PROPERTY, PLANT AND EQUIPMENT ECIPDA currently owns or operates four buildings, of which three are small business development centers. This is an economic tool used to help qualified small businesses who need assistance bridging the gap between where they are, and where they need to be to survive in the small business community. All our facilities have been determined as tax exempt as to property taxes since their inception, and the counties have never required the payment of property taxes. However, there has been pressure of late by the Madison County Commissioners to convert one of these buildings to the tax rolls. This tax-exempt status is critical to the operation of the facilities, which are to assist the small business community. This exemption has been based on Idaho Statute, Section 63, Chapter 6, "Exemptions from Taxation". On July 30, 2020, the East-Central Idaho Planning and Development Association sold the Day Care in Rexburg. The building was sold for $522,768. Per the ownership agreement between ECIPDA and ECIDC, each entity was paid $261,384. On January 12, 2015, the East-Central Idaho Planning & Development Associations sold a business development center located at 310 North 2" East in Rexburg. This building was used to provide office space for multiple tenants, ECIPDA sold the building for $950,000, received a down payment of $75,000 and financed the remaining $875,000 with the buyer. The loan terms of the promissory note call for monthly payments for twenty years at an annual rate of 5%, The building was sold, and the note was retired in 2019. 10 216 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 7. PROPERTY, PLANT AND EQUIPMENT (Continued) The St. Anthony ED building has been transferred to the City of St. Anthony to maintain its tax-exempt status. It is the opinion of management that since ECIPDA retains all income generated from the facility as per contract, and has all responsibility for expenses, including capital costs; they are viewed as totally responsible for the property. Therefore, management has elected to keep the building on its books and continue depreciating it. ECIPDA currently owns a building in Driggs, Idaho which initially was treated as an investment. Due to the receipt of an EDA grant in the amount of $1,521,000 and an Idaho Department of Transportation grant totaling $325,000 in previous years, this building has been remodeled and converted into a business development center and light industrial commercial rental space. The costs associated with this building were moved from work in progress to buildings & improvements upon completion of the remodel during the fiscal year. The final building is our administrative offices, of which ECIPDA owns half the building, and ECIDC, its sister organization, owns the other half. BALANCE 9/30/2019 ADDITIONS DELETIONS BALANCE 9/30/2020 Land $ 383,824 $ (5,950) $ 377,874 Buildings & Improvements 6,400,662 4,581,272 (255,717) 10,726,217 Work in Progress 4,562,212 19,060 (4,581,272) Less Accumulated Depreciation (1,117,687) (174,929) 75,767 (1,216,849) Net Buildings & Improvements 9,845,187 4,425,403 (4,761,222) 9,509,368 Equipment 570,846 (10,768) 560,078 Less Accumulated Depreciation (490,293) (13,477) 10,768 (493,002) Net Equipment 80,553 (13,477) 67,076 Capitalized Interest 18,310 (18,310) Less Accumulated Amortization (18,310) 18,310 Net Capitalized Interest Total Property, Plant, and Equipment $ 10,309,564 $ 4,411,926 $ (4,767,172) $ 9,954,318 8. SUBSEQUENT EVENTS Subsequent events have been evaluated from September 30, 2020, until January 28, 2021, the date the financials were available to be issued. No events have occurred that require disclosure. 9. RELATED PARTY TRANSACTIONS East-Central Idaho Planning & Development Association (ECIPDA) and East-Central Idaho Development Company (ECIDC), an entity under common management, have entered into a contract agreement whereby ECIDC reimburses ECIPDA for all administrative costs incurred on their behalf 11 217 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years Ended September 30, 2020 and 2019 9. RELATED PARTY TRANSACTIONS (Continued) This is an hourly rate fee which totaled $333,539 for the year ending September 30, 2020 and $318,557 for the year ending September 30, 2019. ECIPDA shows an account receivable of $64,403 from ECIDC on September 30, 2020 and $79,816 on September 30, 2019. Receivables from ECIDC as of September 30, 2020 consist of administrative costs. In addition, the Local RLF which is part of ECIPDA collects rent on a building which is distributed equally between ECIPDA and ECIDC. Building rent income for fiscal year 2020 and 2019 was $9,575 and $22,800, respectively, and $9,575 and $15,200 of rent payable has been booked as of September 30, 2020 and September 30, 2019, respectively. In addition, an investment payback was recorded in the amount of $23,687 and $15,137 as of September 30, 2020 and September 30, 2019 respectively. 10. ASSETS RELATED TO ST. ANTHONY AND SUGAR CITY BUSINESS PARKS East-Central Idaho Planning & Development Association, Inc. has entered into memorandums of understanding with both the City of St. Anthony and the City of Sugar City regarding the development of business parks in the respective cities. The agreements state that ECIPDA would help provide cash for the initial infrastructure costs of these business parks. As the lots in these parks sell, the cities will reimburse ECIPDA for the initial capital outlay. Additionally, these cities will remit an additional $500,000 from the lot sales to fund an RLF which is intended to give preference to businesses within the city, but the RLF will be available within their respective counties. These amounts have been recognized as receivables within the Local Revolving Loan Fund and reported on the financial statements as unrestricted loan receivables. The additional $500,000 for the RLF has also been recorded in the receivable but is tracked on the balance sheet as unearned income. There will be no payment schedule, maturity date, or interest charged on the loans. 11. UNEARNED INCOME ECIPDA is reporting unearned revenue in the amount of $938,138 which represents the amounts referred to in Note 10 applicable to creating the revolving loan funds, which have not yet been earned. Since the amounts will be paid with future business park lot sales, these receivables have been reported as unearned income and will be recognized as cash is received. 12. ADOPTION OF ASU 2016-14 ACCOUNTING STANDARD The Financial Accounting Standards Board (FASB) has issued an accounting standard update to improve the net asset classification requirements and the information presented in the financial statements and notes about a not- for-profit entity's (NFP's) liquidity, financial performance, and cash flows. The main provisions of the update require an NFP to present on the face of the statement of fmancial position amounts for two classes of net assets at the end of the period, rather than for the currently required three classes. Under the provisions of the update an NFP will report amounts for net assets with donor restrictions and net assets without donor restrictions, as well as the currently required amount for total net assets. The adoption of this accounting standard has required the changing of account names on the face of the financial statement. However, this has not required reclassification of or restatements of assets for East-Central Idaho Planning and Development Association, Inc. for the period ending September 30, 2020. 12 218 SUPPLEMENTAL INFORMATION 219 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Years Ended September 30, 2020 and 2019 Name CFDA Number Passthrough Number 2020 Disbursements 2019 Disbursements US Department of Commerce EDA Planning Grant ED17SEA 3020033 11.302 92,423 $ 54,248 EDA Planning Grant 07-83-0714914-01 11.302 98,139 63,123 EDA RLF — Legacy Fund 07-39-02771/01/02 & 07-39-02401 11.307 1,576,425 1,511,844 EDA RLF Competitive Grant #1 07-79-07541 11307 201,521 EDA RLF COVID Grant #2 07-79-07587 11.307 811,244 EDA COVID CARES Act Planning Grant ED2OSEA 3070071 11.307 15,645 Public Works and Economic Development Facilities Program 11.300 587,053 Total US Department of Commerce $ 2,795,397 $ 2,216,268 US Department of Labor Passed Through the Idaho Dept. of Labor ECPS Z6Z-600 17.258 IJOT 30,508 ECPT Z6Z-600 17.258 ISX2 18,150 ECPT Z6Z-600 17.258 IFX2 4,144 ECPU Z6Z-600 17.258 ISX2 1,112 ECPU Z6Z-600 17.258 IFX2 4,447 ECPS Z6Z-600 17.259 IFX2 32,477 ECPT Z6Z-600 17.259 ISX2 19,157 ECPT Z6Z-600 17.259 IFXZ 4,373 ECPU Z6Z-600 17.259 ISX2 1,174 ECPU Z6Z-600 17.259 IFX2 4,694 ECPS Z6Z-600 17.278 UO2 37,212 ECPS Z6Z-600 17.278 IFX2 9,374 ECPT Z6Z-600 17.278 ISX2 29,255 ECPT Z6Z-600 17.278 IFX2 6,679 ECPU Z6Z-600 17.278 ISX2 1,792 ECPU Z6Z-600 17.278 IFX2 7,168 Total US Department of Labor 102,145 109,571 TOTAL FEDERAL AWARDS ASSISTANCE $ 2,897,542 $ 2,325,839 13 220 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Years Ended September 30, 2020 and 2019 1. EDA PLANNING GRANT The EDA Planning Grant has a different fiscal year than East Central Idaho Planning & Development Association, The fiscal year of the EDA Planning Grant is April 1 to March 31. The match required by Grant number ED17SEA3020033 for the 2020 fiscal period is $37,500. The following schedule reconciles the cash match for September 30, 2020, as of the periods indicated below: Cash over expenditure match 10/1/19 to 3/31/20 $ 60,639 Cash over expenditure match 4/1/20 to 9/30/20 54,923 Total cash over expenditure match for grant $ 115,562 The EDA Planning Grant has a different fiscal year than East Central Idaho Planning & Development Association. The fiscal year of the EDA Planning Grant is April 1 to March 31. The match required by Grant number ED17SEA3020033 for the 2019 fiscal period is $37,500. The following schedule reconciles the cash match for September 30, 2019, as of the periods indicated below: Cash over expenditure match Cash over expenditure match 10/1/18 to 3/31/19 $ 78,333 4/1/19 to 9/30/19 35,471 Total cash over expenditure match for grant $ 113,804 2. EDA COVID 19 CARES ACT GRANT ECIPDA was awarded COVID-19 funds to help with the various programs. This award was for $400,000. 3. EDA RLF BALANCES — Legacy and EDA RLF #1 The total balance of the loans outstanding at September 30, 2020 was $1,785,805. The total balance of the loans outstanding on September 30, 2019 was $1,709,648. The total balance of loans outstanding in EDA-RLF #1 on September 30, 2020 was $59,060.00. This federal EDA RLF grant of $1,000,000 is disbursed as we originate loans. As of September 30, 2020, $60,000 dollars had been disbursed, 4. EDA COVID RLF BALANCES ECIPDA applied for and was awarded $2,266,000 in CARES ACT dollars as an EDA-RLF in late July, This federal award had no match requirement but included approximately $206,000 (ten percent) in administration allowance to help support the operation of the project and getting the fund lent out within 24 months. As of September 30, 2020, the total balance of loans outstanding was $311,245. 5. BASIS OF ACCOUNTING The Schedule of Federal Awards is prepared on the accrual basis of accounting. 6. INDIRECT COST RATE ECIPDA elected not to use the 10 percent de minimis indirect cost rate. 14 221 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. SCHEDULE OF ECIPDA INCOME & EXPENSES For the Years Ended September 30, 2020 and 2019 INCOME Government Grants Administration Building Rents Interest Earned Other TOTAL INCOME PROGRAM SERVICES MANAGEMENT AND GENERAL TOTAL 2020 TOTAL 2019 $ 191,895 756,036 407,429 29,411 88,466 $ $ 191,895 756,036 407,429 29,411 88,466 $ 819,611 743,046 381,027 11,338 8,229 $ 1,473,237 $ $ 1,473,237 $ 1,963,251 EXPENSES Salaries $ 560,208 $ 74,521 $ 634,729 $ 585,344 Personnel Burden 207,392 168,037 375,429 319,274 Administrative 9,320 9,320 19,801 Payback on Investments 8,550 8,550 56,837 Supplies 27,022 17,818 44,840 18,801 Postage 1,115 1,219 2,334 1,571 Fuel for Autos 1,320 4,702 6,022 9,950 Audit 17,165 17,165 16,605 Consultants / Memberships 28,901 48,527 77,428 82,805 Printing 3,313 1,724 5,037 992 Insurance 891 23,528 24,419 25,840 Travel 7,870 2,214 10,084 17,885 Marketing 6,505 2,655 9,160 8,534 Janitorial 26,862 1,140 28,002 23,767 Telephone 874 5,700 6,574 5,970 Maintenance & Repairs 32,421 8,663 41,084 48,782 Automobile 7,643 4,988 12,631 8,333 Board Activities 430 605 1,035 730 Staff Education 1,055 6,932 7,987 1,596 Utilities 80,034 1,947 81,981 79,853 Miscellaneous 1,825 4,016 5,841 15,990 Grant Match 125,000 125,000 Transfer to Local RLF 375,000 Depreciation 188,406 188,406 102,204 TOTAL EXPENSES $ 1,138,551 $ 584,507 $ 1,723,058 $ 1,826,464 NET SURPLUS(LOSS) $ 334,686 $ (584,507) $ (249,821) $ 136,787 15 222 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. SCHEDULE OF RECEIPTS AND DISBURSEMENTS OF REVOLVING LOAN FUND ADMINISTRATION For the Years Ended September 30, 2020 and 2019 1. RLF FUNDS MANAGED BY ECIPDA Headwaters Development Company RLF funds have been managed by ECIPDA based on a professional services contract between the two entities, In prior years, the Custer County RLF was also managed by ECIPDA, but was approved for consolidation into the ECIPDA EDA RLF. Therefore, all of the cash and loans were then transferred to ECIPDA and are now being reported in the financial statements as a part of the consolidated financial statements. The results of operations of the Headwater Development Company RLF are as follows; HEADWATERS DEVELOPMENT COMPANY 2019 Cash and certificates of deposit - 9/30/18 Loans receivable - 9/30/18 $ 78,407 411,694 TOTAL FUNDS - 9/30/18 490,101 Interest received from loans and banks 21,739 Administrative fees (5,394) TOTAL GOVERNMENTAL FUNDS $ 506,446 Cash and certificates of deposit - 9/30/19 Loans receivable - 9/30/19 $ 104,551 401,895 TOTAL GOVERNMENTAL FUNDS $ 506,446 2020 Cash and certificates of deposit - 9/30/19 $ 104,551 Loans receivable - 9/30/19 401,895 TOTAL FUNDS - 9/30/19 506,446 Interest received from loans and banks Administrative fees 20,867 (6,650) TOTAL GOVERNMENTAL FUNDS $ 520,663 Cash and certificates of deposit - 9/30/20 Loans receivable - 9/30/20 $ 140,698 379,965 TOTAL GOVERNMENTAL FUNDS $ 520,663 16 223 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC. SCHEDULE OF RECEIPTS AND DISBURSEMENTS OF REVOLVING LOAN FUND ADMINISTRATION For the Years Ended September 30, 2020 and 2019 HEADWATERS — RLF 2020 2019 May Family Ranch loan receivable, with monthly interest payments for one year of $400, then principal and interest at $735, including interest at 4.0%, maturity date of November 2033. Repayment Amounts were modified during the past fiscal year to accommodate a modification made to this loan to allow them to make some repairs to their facilities. Payments were modified to $750.00 for five months and then raised to 830 a month when the loan amount was modified. Original loan was $120,000. The loan modification was for $10,250.00. Wild Idaho Adventures loan receivable, with monthly payments of $1,375, including interest at 5.5%, maturity date of October 2036. Original loan was $170,639. Jake and Lacey Windsor loan receivable in monthly payments of $750, including interest at 5.5%, maturity date of June 2031. Original loan was $85,194. REM Properties, LLC loan receivable is in monthly payments of $572, including interest at 5.5% maturity date of November 2032. Original loan was $70,000. $ 101,681 $ 107,382 147,064 154,973 70,830 75,739 60,390 63,801 $ 379,965 $ 401,895 17 224 JENSEN POULSEN & COMPANY, PLLC CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 50700 185 S. CAPITAL IDAHO FALLS, IDAHO 83405 ERNEST M JENSEN, M.B.A., C.P.A. TELEPHONE: (208) 522-2295 ROBERT B. POULSEN, C.P.A. (208) 527-1330 SHERI L. POULSEN, C.P.A. FAX: (208) 522-2297 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASEED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of East-Central Idaho Planning And Development Association Rexburg, Idaho We have audited, in accordance with the auditing standards generally accepted in the United State of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of East-Central Idaho Planning and Development Association (a nonprofit organization) which comprise the statement of financial position as of September 30, 2020 and 2019, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements, and have issued our reports thereon dated January 28, 2021, and May 13, 2020, respectively. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered East-Central Idaho Planning and Development Association's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of East-Central Idaho Planning and Development Association's control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies, Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether East-Central Idaho Planning and Development Association's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. 18 225 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Jensen Poulsen & Company, PLLC JENSEN POULSEN & COMPANY, PLLC Certified Public Accountants Idaho Falls, Idaho January 28, 2021 19 226 JENSEN POULSEN & COMPANY, PLLC CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 50700 185 S. CAPITAL IDAHO FALLS, IDAHO 83405 ERNEST M JENSEN, M.B.A., C.P.A. TELEPHONE: (208) 522-2295 ROBERT B. POULSEN, C.P.A. (208) 522-1330 SHERI L. POULSEN, C.P.A. FAX: (208) 522-2297 INDEPENDENT AUDITOR'S REPORT ON COMPLAINCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors of East-Central Idaho Planning And Development Association Rexburg, Idaho Report on Compliance for Each Major Federal Program We have audited East-Central Idaho Planning and Development Association's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of East-Central Idaho Planning and Development Association's major federal programs for the years ended September 30, 2020 and 2019. East-Central Idaho Planning and Development Association's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of East-Central Idaho Planning and Development Association's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about East-Central Idaho Planning and Development Association's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of East-Central Idaho Planning and Development Association's compliance. Opinion on Each Major Federal Program In our opinion, East-Central Idaho Planning and Development Association's complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020 and 2019. 20 227 Report on Internal Control over Compliance Management of East-Central Idaho Planning and Development Association is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered East-Central Idaho Planning and Development Association's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of East-Central Idaho Planning and Development Association's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Jensen Poulsen & Company, PLLC JENSEN POULSEN & COMPANY, PLLC Certified Public Accountants Idaho Falls, ID January 28, 2021 21 228 EAST-CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION Schedule of Findings and Responses September 30, 2020 Section I — Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unmodified Internal control over financial reporting: Material Weaknesses identified? No Significant Deficiencies identified? No Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material Weaknesses identified? No Significant Deficiencies identified? No Type of auditors' report issued on compliance for major programs? Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.514? No Identification of Major Programs CFDA Number: Name of Federal Program: #11.307 US Department of Commerce EDA RLF Dollar Threshold Used to Distinguish Between Type A and Type B Programs: $750,000. Auditee Qualified as Low Risk Auditee: Yes, Section II — Financial Statement Findings None Section III —Federal Award Programs Findings None 22 229 LEASE - Page 1 ECIPDA.Lease LEASE THIS AGREEMENT, made and entered into this XXst day of ______by and between EAST CENTRAL IDAHO PLANNING AND DEVELOPMENT ASSOCIATION, INC., an Idaho not-for- Profit Corporation, of 299 East 4th North, Rexburg, Idaho 83440, hereinafter called "Lessor", and NAME OR BUSINESS NAME hereinafter called "Lessee", WITNESSETH: 1. Premises Leased. Lessor does hereby lease to Lessee and Lessee does hereby lease from Lessor those certain premises described as suite ______ located at the Teton River Business Center building at 343 E. 4th N. in Rexburg, Madison County, Idaho. 2. Term of Lease. The lease shall be for a period of 12 months beginning, ______________________. The parties may renew the within Lease at the end of the term thereof by mutual agreement. 3. Rental. Lessee shall pay to Lessor as rent for the lease the sum of $ XXX.00 per month for each month of the term of the lease. Payment shall be due and payable on the first day of each month during the term of this lease. Should the Lessee fail to make any rental payment on or before the tenth day of the month for which it is due, the Lessee shall pay to the Lessor, in addition to the monthly rental amount, a late charge equal to five (5) percent of the monthly rental amount. There will be a $15.00 service charge on all returned checks. Nothing said herein regarding late charge and service charge shall be deemed a waiver by Lessor of the obligation of the Lessee to timely make all payments on or before the first day of each month of the term of this lease. XXX to XXX $XXX.00/month 4. Security Deposit. $XXX.00 The Lessee shall, prior to occupancy; pay to Lessor a security deposit equal to one month’s rent. The Lessor, without in any way limiting its remedies or rights of recovery, may apply or retain the whole or any part of the security deposit for the payment of any rent or other 230 LEASE - Page 2 ECIPDA.Lease sum or debt as to which the Lessee is in default, or for the repair and/or replacement of any damage for which Lessee is responsible and/or for any sum which the Lessor may expend or incur by reason of the Lessee’s default in any terms of this lease. In the event the Lessee shall comply with all of the terms of this lease, the security deposit shall be returned to the Lessee without interest, after the day fixed as the end of the lease and after the delivery of the leased premises and all keys to the Lessor, provided, however, that Lessor may retain a sum of $XXX.00 from the security deposit for cleaning. 5. Use of Premises. The leased premises shall be used by the Lessee solely for business purposes and all use by Lessee shall be consistent with the Covenant of Purpose, Use and Ownership and all conditions and restrictions regarding use of the premises to which Lessor is subject pursuant to the terms of all grants and loans pertaining to the property made to Lessor by the Economic Development Administration United States Department of Commerce and all other entities from whom Lessor has received grants and/or loans pertaining to the premises. Lessee shall actively conduct such business on the premises during the term hereof, and may not change the use of the premises without written consent of Lessor. Lessee shall not open carry or conceal carry any firearms or allow any clients or visitors to knowingly carry as well. The Teton River Business Center has a No Firearm Policy. 6. Utilities. Lessor shall furnish and provide at Lessor’s own expense all electric power, water, heat, air conditioning, janitorial services within common areas. Lessee shall furnish at Lessee’s expense telephone, internet, and other utilities in connection with the use of the premises. 7. Repairs and Maintenance. Lessor, at Lessor’s expense, shall make all necessary repairs and provide all maintenance to the basic structure of the building, including roof, outer walls, and support of floors, to maintain in good condition the common areas of the building, consisting of halls, restrooms, stairway, elevator and entryway and also to make such repairs as are due to Lessor’s own negligence or neglect, to keep the building in good order, repair and condition during the term of 231 LEASE - Page 3 ECIPDA.Lease this lease. Lessee at Lessee’s own expense shall provide all other repairs and all other maintenance to keep the leased premises in good order, condition, and repair during the term of this lease. Lessee shall, at Lessee’s own expense, repair, replace and maintain all portions of the premises and common areas required as a result of Lessee’s acts and/or omissions and as a result of the acts and/or omissions of Lessee’s employees and/or agents. Each party shall in any construction, maintenance or repair of the premises observe all applicable laws, rules and regulations pertaining thereto. 8. Insurance. Each party shall, during the continuance of this lease, have the right to insure, against fire and other casualty, its own interest in any improvements upon or personal property within the premises and neither party shall have the duty to insure the interest of the other party. Lessor and Lessee and all parties claiming under them (including any insurer) hereby mutually release and discharge the other from all claims and liabilities arising from or caused by loss or damage to the premises, improvements thereon, or any personal property therein, by fire or other casualty, regardless of the cause of damage or loss. It is the intent of this agreement that the property and interest of each party hereto, shall be fully insured by the holder and owner of the respective property and interest of each holder and owner, in the amount selected by him, and that neither party shall make claim against the other for loss by fire or other casualty, which may be so insured, regardless of the cause of damage or loss. Lessee shall continuously maintain public liability insurance on and for the use of the premises, insuring Lessor and Lessee from public liability from ownership, use, and/or occupation of the premises, with limits of not less than $100,000 for each person injured or killed and for limits of not less than $100,000 for claims of property damage. Any policy carried by Lessor shall not in any way cover Lessee. Lessee shall make no claim for recovery against the Lessor for damage to or loss of the demised premises, improvements thereon, or personal property within or upon, which damage is caused by or results from any acts of carelessness or negligence of the Lessor, Lessor’s officers, agents, employees, or other persons under Lessor’s control. 232 LEASE - Page 4 ECIPDA.Lease 9. Taxes. Lessor shall pay all real property taxes levied and assessed against the leased premises during the term of this lease. Lessee shall pay any personal property taxes levied and assessed against Lessee’s property. All taxes on personal property are to be paid timely to the county tax assessor or to the entity to which such taxes are owed. If at any time personal property taxes become delinquent, Lessor may evict Lessee and keep any security deposit to pay taxes. 10. Destruction of Premises. If the premises are destroyed or rendered untenantable by fire, flood, the elements, or act of God, during the continuance of this lease, Lessor shall have the option, to be exercised by notice in writing to Lessee within thirty (30) days after the event, requiring the election to either (1) terminate this lease, or (2) rebuild and restore that part of the premises provided by Lessor, within a reasonable time, and no rental need be paid during the time the premises are untenantable. 11. Quiet Enjoyment. Lessor covenants and agrees that Lessee, upon payment of the rent and performance of Lessee’s agreements herein, shall and may peaceably and quietly have, hold, and enjoy the premises during the continuance of this lease. 12. Removal at End of Term. Upon termination of the lease, Lessee shall surrender possession of the premises to Lessor in good order and repair, and in a clean, neat and tidy condition, subject to the other provisions hereof. Lessee shall not without prior written consent of Lessor, make alterations, additions, changes, or improvements to the premises, building nor to fixtures. Any such improvements shall be solely at the expense of Lessee, shall be done in a good workmanlike fashion, shall not structurally weaken the building, and no liens shall be suffered to be placed against the premises. Upon termination of the lease, Lessee shall not have the right to remove the same nor the duty to restore the premises to the condition prior to such approved alterations, additions, changes, or improvements. Any alterations, additions or improvements left within and/or upon the premises 233 LEASE - Page 5 ECIPDA.Lease after the termination of this lease shall become the property of the Lessor. If tenant improvements are approved by Lessor, at the end of the lease term, Lessor may require Lessee to return premises to original condition at Lessee’s expense. 13. Remedies for Default by Lessee. In the event that Lessee shall be in arrears in payment of rent, or shall fail to comply with any of the other covenants, terms, or conditions of this lease, within fifteen (15) days written notice given by certified mail, return receipt requested, or personally delivered to Lessee of such defaults, or shall abandon or vacate the premises, then Lessee shall not have the right to continue to occupy the premises, and Lessor shall have the right to re-enter and repossess the premises. In that event, although the lease shall be otherwise terminated, Lessee shall remain liable to Lessor for the loss or damage resulting from the breach of the lease, and Lessee shall remain liable for any unpaid rent for the remaining term of the lease which may all be declared due and owing; subject, however, to any appropriate credit for rent received by Lessor by re-letting the premises to a third party, after deducting any expenses incident to the re-letting of the premises or otherwise. Lessor is granted a Lessor's lien on all personal property of the Lessee upon the premises, to secure payment of rent, and in the event of such default may retain possession of the same to secure payment of the rent. Failure of Lessor to insist upon the strict performance of the provisions of this lease shall not be construed as a relinquishment or waiver of Lessor's right to thereafter enforce any such provisions. Lessee shall pay all costs, expenses and reasonable attorneys' fees that are incurred by Lessor in enforcing the covenants and agreements of this lease or collecting damages for the breach hereof, with or without suit. Lessor shall, in event of breach by Lessee, have such other remedies as are afforded in law or equity. Lessee shall, upon the last day of the lease term, or upon sooner termination of the term, peaceably and quietly surrender the leased premises to the Lessor, including all alterations or improvements thereto, in as good condition and repair as at the commencement of the lease or as at the construction of the alteration or improvement, reasonable wear and tear excepted. 234 LEASE - Page 6 ECIPDA.Lease Should the Lessee abandon or surrender the premises for any reason, the Lessor may immediately remove and store any personal property belonging to the Lessee left on the premises. Thirty days after the date of abandonment or surrender, the property shall be deemed abandoned by the Lessee and shall become the property of the Lessor. 14. Remedies for Default by Lessor. In the event the Lessor shall fail to perform the covenants of this lease on Lessor’s part, then Lessee may give written notice of the defaults of Lessor by mailing the same to them certified mail, return receipt requested, and if said defaults are not corrected within fifteen (15) days after the mailing of the notice, then Lessee at their option may either terminate and cancel this lease on a date after the expiration of said fifteen (15) day period, which date shall be selected and designated by the Lessee in the written notice to Lessor, or Lessee may remedy said breach and the cost of such action may be deducted from unpaid rents which shall accrue under the unexpired term of this lease. Lessor shall pay to Lessee all costs, expenses and reasonable attorneys' fees that are incurred by Lessee in enforcing the covenants and agreements of this lease or collecting damages for the breach thereof, with or without suit, in the event of default by Lessor. Lessee shall also have such other remedies as are afforded in law or equity in the event of any breach by Lessor hereunder. 15. Use of Conference Room. Lessee may reserve for exclusive use for a short-limited period from time to time the conference room located in the building. One free use is permitted a month. If the tenant desires to use the space more then a fee can be negotiated with lessor. Such use may be had on the condition that Lessee enters into a specific use agreement with Lessor prior to the time of such exclusive use of the conference room and the use by Lessee of the conference on such occasions shall be subject to the provisions of the specific use agreement entered into by the parties for each specific occasion. 16. Miscellaneous. This lease cannot be assigned by Lessee, nor mortgaged or encumbered, nor the premises or any part thereof sub-let, without the prior written consent of Lessor. 235 LEASE - Page 7 ECIPDA.Lease All of the provisions of this lease shall be binding upon the heirs, personal representatives, successors, and assigns of the parties hereto. The terms "Lessor", "Lessee", "his", "he" and "him" shall be construed, as used herein, to include singular and plural and masculine and feminine gender and a corporate entity, to conform to the actual parties hereto. Lessor shall have the right to enter upon the premises at any reasonable time to inspect or examine any and all parts thereof. Lessee shall indemnify and save Lessor harmless and defend Lessor of, from and against any and all loss, liability, claims, damages, actions, and/or causes of action that may arise out of and/or be related in any way to Lessee’s occupation and use of the premises. Lessee shall indemnify and save the Lessor harmless and defend Lessor of, from and against any and all loss, liability, claims, damages, actions, and/or causes of action occasioned by, growing out of or arising or resulting from: 1) any default hereunder by the Lessee; 2) any of the Lessee’s products; or 3) any tortious or negligent action of the Lessee, its agents or employees. Any short-term lease extension, after the expiration of the term of this lease, shall be made only upon written agreement by both parties hereto and shall be construed to be a tenancy from month to month at a monthly rent as agreed upon by both parties. In addition to the leased premises, the Lessee shall have a non-exclusive right to use the conference room, restrooms, employee lunch/break room and such other common areas under such conditions and restrictions and shall also have a non-exclusive right to utilize any audio/visual and other equipment provided by the Lessor under such conditions and restrictions as shall periodically be determined by the Lessor. All notices and demands, which may or are required to be given by either party to the other shall be in writing. All notices and demands by the Lessor to the Lessee shall be delivered personally or sent by the United States certified or registered mail, postage prepaid, addressed to the Lessee at the premises, or to such other place as Lessee may designate. All notices and demands by Lessee to the Lessor shall be delivered personally or sent by United States certified or registered mail, postage prepaid, addressed to the Lessor at the Development Company office 236 LEASE - Page 8 ECIPDA.Lease building. No hazardous materials, products or waste will be allowed on the premises without prior written consent of the Lessor. All signage associated with the leased premises and the building itself must be approved, in advance of its installation, by the Lessor. This lease document, including all attachments referred to herein, constitutes the entire agreement between the Lessor and the Lessee. No promises or representations expressed or implied, either written or oral, not herein set forth shall be binding upon the Lessor or the Lessee. This lease shall not be modified by any oral agreement, either expressed or implied, and any modifications shall be in writing and signed by both the Lessor and the Lessee. This lease shall in all respects be governed by the laws of the State of Idaho. If any provision of this lease or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this lease and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be governed by the laws of the State of Idaho. If any provision of this lease or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this lease and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. If any proceedings in bankruptcy or insolvency be filed against Lessee, or if any writ of attachment or writ of execution be levied upon the interest herein of Lessee, and such proceedings or levy shall not be released or dismissed within sixty (60) days thereafter, or if any sale of the leasehold interest hereby created or any part thereof, should be made under any execution or other judicial process or if Lessee shall make any assignment for the benefit of creditors or shall voluntarily institute bankruptcy or insolvency proceedings, Lessor, at its election, may reenter and take possession of said premises and remove all persons there from and may, at its option, terminate this lease. In the event of any litigation between the parties arising out of this lease or the leased 237 LEASE - Page 9 ECIPDA.Lease premises, the prevailing party shall be allowed all reasonable attorneys’ fees expended or incurred in such litigation. The Lessee shall not use or permit anything to be done in or about the premises which will violate any law, statute, ordinance or governmental rule, regulation or requirement now or hereafter in force, or the requirements of any board of fire underwriters or other similar body now or hereafter constituted, relating to or affecting the condition, use or occupancy of the premises. IN WITNESS WHEREOF, The parties have executed this lease. "LESSOR" "LESSEE" EAST CENTRAL IDAHO PLANNING NAME OR BUSINESS NAME AND DEVELOPMENT ASSOCIATION BY:________________________________ BY:________________________________ DATE:_____________________________ DATE:______________________________ 238 Teton River Business Center Management Policies ECIPDA staff members are evaluating the policies currently in place and will be presenting their recommendations to the Board of Directors during their next meeting. They will also be voting to elect a small Management Policy Board to assist in the implementation of and adherence to these processes and policies. I. Tenant/client selection policy: Currently, prospective tenants are required to submit an application which is then reviewed by two of ECIPDA’s staff members. This application process is being revamped to also capture a variety of demographic information, financials, job creation estimates and a business plan. The new process will be presented to the Board of Directors for approval during their next meeting. Afterwards, applications will be reviewed by ECIPDA staff under the direction of the Management Policy Board to determine acceptability of the proposed tenant. In the event that a potential tenant does not meet the criteria, they will be referred to services both within and outside of the TRBC to develop their business plan and/or other qualifications in order to complete an acceptable application package. ECIPDA has been successful by marketing its business incubator services mainly through its extensive business network and through word-of-mouth. However, it also promotes Equity as defined in EDA’s Investment Priorities by specifically targeting the two traditionally underserved populations of this area: Women and Hispanic communities. The demographic information collected during the application process will be used to track equity statistics. II. Tenant lease or license agreement: The general lease agreement for the TRBC is attached as “Attachment 3 ECIPDA General Lease.pdf”. Leases are generally from 1 to 3 years with a rent amount that increases over time until the tenant is at or above market rates. If a tenant requires special accommodations, ECIPDA provides that on a case-by- case basis. However, anchor tenants such as CEI and RBDC have a different type of lease agreement without the intention of graduation to keep them in the facility long term to continue providing workforce development and technical assistance services (see III. Business assistance policy below). III. Business assistance policy: All businesses vary in their need for assistance, which is provided on a case-by-case basis. ECIPDA has a number of small business loan programs that offer fixed asset financing as well as some working capital. Technical assistance is provided by ECIPDA, anchor tenants such as CEI, RBCD as well as our Small Business Development Center (SBDC) which is located in Idaho Falls and partners with Idaho State University, and other local resources. Our services include assistance with workforce development & training, marketing, website development, business plan development, employment screening, finding qualified contractors to work with, financing (ie. fixed asset, operational, venture capital), finding a new location after graduation, and etc. 239 IV. Staffing plan: ECIPDA has valuable human resources that have managed its network of business development centers for over 30 years. Currently, there are four staff members who are actively engaged in the operation of the TRBC facility and we anticipate they will continue to do so into the future. Resumes and individual bios of key staff can be provided upon request. V. Tenant graduation policy: Due to our rural demographics and business community, ECIPDA has adopted a policy of escalating rents as the tenants mature and reach profitability. The rent increases on an annual basis until it reaches or exceeds local market rents, corresponding to progress in the business. This has been a successful policy in encouraging graduation and movement out into the local commercial market. VI. Performance plan: ECIPDA staff members are creating a new performance plan to present to the Board of Directors for approval during their next meeting. This plan will consist of the regular collection of financial information and monitoring of performance measurements such as financial ratios, job retention / creation and training & certifications when applicable. The job retention / creation information will include a request for demographic information of those positions in order to promote EDA’s investment priority of Equity and track equity statistics. 240 APPENDIX J: Job Creation Agreement 241 Job Creation Agreement between the City of Rexburg and ECIPDA, a Non-Profit Economic Development District Whereas, the City of Rexburg is applying for an Idaho Community Development Block Grant (ICDBG) to provide construction assistance and support the expansion of Teton River Business Center, owned and operated by East‐Central Idaho Planning & Development Association, Inc. (ECIPDA), a Non- Profit representing Idaho’s Economic Development District VI, and the subgrantee of the ICDBG. Therefore, as a result of the ICDBG assistance, ECIPDA agrees it will create 20 new full-time equivalent (FTE) jobs and that of these jobs at least 51% will be taken by low and moderate income (LMI) persons. The City of Rexburg and ECIPDA further agree to abide by all the following conditions of this Agreement. Definitions A. The City of Rexburg, hereafter is known as the LOCAL GOVERNMENT. B. East‐Central Idaho Planning & Development Association, Inc. (ECIPDA), the subgrantee, hereafter is known as the NON-PROFIT. C. Funding Source: The Idaho Community Development Block Grant (ICDBG) program is funded by the U.S. Department of Housing and Urban Development (HUD) and managed by the Idaho Department of Commerce (COMMERCE). D. Low and Moderate Income (LMI): Family median income standards are set annually by HUD at a county level and by family size. Families having income 80% or less of the median income are defined as moderate-income families. Families having income 50% or less are defined as low-income families. E. LMI Person: A member of a LMI family. F. Full-Time Equivalent (FTE): Job creation must be calculated in FTE’s. An FTE job is the equivalent of 30 hours or more per week. Part-time jobs must be aggregated into FTE’s. The Project The LOCAL GOVERNMENT agrees to provide construction assistance and support the NON-PROFIT with its planned expansion or location in the LOCAL GOVERNMENT’S jurisdiction. The Teton River Business Center Expansion Project will consist of constructing a new 2-story 20,000 square foot expansion building on a 0.879 acre lot adjacent to and directly East of the current Teton River Business Center (TRBC) at 343 East 4th North, Rexburg, ID. Some remodeling of the existing building may also occur on an as-needed basis. Both buildings will be integrated and serve the goals and objectives of the Teton River Business Center which is owned and operated by East-Central Idaho Planning and Development Association, Inc. (ECIPDA). In the event project cost exceeds the total dollars budgeted for the project, the NON-PROFIT shall be responsible for providing the additional funds needed to complete the project. 242 Job Creation The NON-PROFIT commits that by April 01, 2026, it will create 20 new FTE jobs above its current employment number as established by December 21, 2021. The NON-PROFIT further commits that at least 51% (11) of the new jobs will be taken by LMI persons. The new jobs to be created are identified and incorporated into this agreement in Attachment “A” - Jobs to be Created. Claw-Back The NON-PROFIT agrees to reimburse the LOCAL GOVERNMENT a pro rata ICDBG dollar amount per job not created if (i) the total number of new jobs created does not meet or exceed the number of jobs committed above and (ii) the LOCAL GOVERNMENT is required to reimburse such amounts to COMMERCE. The ICDBG dollars per job ratio is $25,000. Regardless of the number of new jobs created, the NON-PROFIT agrees to reimburse the LOCAL GOVERNMENT the entire amount of the ICDBG if (i) less than 51% of all new jobs created are taken by LMI persons and (ii) the LOCAL GOVERNMENT is required to reimburse the ICDBG dollars to COMMERCE. The NON-PROFIT and LOCAL GOVERNMENT agree that the decision of COMMERCE will be final in judging the level of job creation and percentage of jobs taken by LMI persons. Estimated Project Schedule Activity Date Supporting Documentation to Submit to COMMERCE The Project: Start Construction 04/01/2023 Contract and Notice to Proceed Construction Complete 04/01/2025 Certificate of Substantial Completion NON-PROFIT’s Building / Facility: Start Construction 04/01/2023 Notice to Proceed Construction Complete 04/01/2025 Occupancy Permit Job Creation Complete 04/01/2026 Employee Job Listing and Income Surveys Recordkeeping and Reports The NON-PROFIT will provide evidence and documentation of the new jobs created and the persons hired to fill the new jobs. To document that at least 51% of the jobs are taken by LMI persons, the following information must be provided before project closeout: 1) The completed ICDBG income surveys of each employee hired. (The income survey must be in the format as designated by COMMERCE). 2) An employee job listing which identifies the new employee, job title, LMI status before hire, full or part time position, and wage. 3) Contact information for the NON-PROFIT’S human resource representative. This information will be retained by the LOCAL GOVERNMENT for a period of four (4) years after project closeout. 243 Monitoring Rights of Government Officials The information and all records related to this project and its associated job creation will be made available to the LOCAL GOVERNMENT, COMMERCE, and HUD officials. The NON-PROFIT upon request will allow the above officials access to the records during regular working hours. The NON-PROFIT shall, upon request, allow for visual inspection of the NON-PROFIT expansion and provide for interviews with employees to verify job creation. Effectiveness This agreement is effective from the signature date and will remain in effect until the jobs are created and the grant is closed out by COMMERCE. Closeout occurs after COMMERCE determines the LOCAL GOVERNMENT has complied with all ICDBG conditions, regulations, and the NON-PROFIT has created the jobs per this agreement. Signatures I certify by my signature that I have the authority to commit East‐Central Idaho Planning & Development Association, Inc. (ECIPDA) to this Agreement. Signed: Date: Name and Title: Melanee Sutton, ECIPDA Board President I certify by my signature that I have the authority to commit the City of Rexburg to this Agreement. Signed: Date: Name and Title: Jerry Merrill, Mayor of Rexburg This agreement will be executed if EDA funding goes through and this ICDBG application is moved forward. 244