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HomeMy WebLinkAboutOrd No 1292 North Hwy URD TerminationC I T Y OF REXBURG America's Family Community ORDINANCE NO. 1292 Termination of the North Highway Urban Renewal District BY THE COUNCIL: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO, IMMEDIATELY TERMINATING THE REVENUE ALLOCATION AREA FOR THE NORTH HIGHWAY PROJECT AREA, AS AMENDED; REQUIRING DISTRIBUTION OF ANY NON -OBLIGATED SURPLUS DETERMINED TO EXIST AS OF SEPTEMBER 30, 2022, PURSUANT TO SECTION 50-2909, IDAHO CODE; AUTHORIZING THE CITY CLERK OR URBAN RENEWAL AGENCY OF REXBURG, IDAHO, ALSO KNOWN AS THE REXBURG REDEVELOPMENT AGENCY, TO FILE THE ORDINANCE, TOGETHER WITH THE BOUNDARY MAP, WITH THE OFFICE OF THE COUNTY RECORDER, THE COUNTY ASSESSOR, AND THE IDAHO STATE TAX COMMISSION AS PROVIDED IN SECTION 63-215, IDAHO CODE; PROVIDING THAT A COPY OF THIS ORDINANCE SHALL BE GIVEN TO EACH OF THE TAXING ENTITIES AFFECTED BY SAID REVENUE ALLOCATION AREA; APPROVING THE SUMMARY OF THE ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council and Mayor of the city of Rexburg respectively on or about November 6, 1991, adopted and approved a resolution creating the urban renewal agency for the City of Rexburg, also known as the Rexburg Redevelopment Agency (the "Agency"), authorizing the Agency to transact business and exercise the powers granted by the Idaho Urban Renewal Law of 1965, chapter 20, title 50, Idaho Code, as amended (hereinafter the "Law"), and the Local Economic Development Act, chapter 29, title 50, Idaho Code, as amended (hereinafter the "Act') upon making the findings of necessity required for creating the Agency; WHEREAS, the City Council ("City Council") of the city of Rexburg, Idaho ("City"), after notice duly published, conducted a public hearing on the Urban Renewal Plan, North Highway Urban Renewal Project (the "North Highway Plan"); WHEREAS, following said public hearing the City Council adopted its Ordinance No. 728 on December 27, 1991, approving the North Highway Plan, making certain findings and establishing the North Highway revenue allocation area (the "Project Area"); WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Amended and Restated Urban Renewal Plan, North Highway Urban Renewal Project (the "Amended and Restated North Highway Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 815 on December 30, 1998, approving the Amended and Restated North Highway Plan and making certain findings; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Second Amended and Restated Urban Renewal Plan, North Highway Urban Renewal Project, Including South Addition (the "Second Amended and Restated North Highway Plan"); Instrument # 453350 REXBURG, MADISON, IDAHO 11-9-2022 03:46:34 PM No. of Pages: 21 Recorded for: CITY OF REXBURG KIM H. MUIR Fee: 0.00 Ex-Officio Recorder Deputy ORDINANCE NO. 1292 - Page - 1 WHEREAS, following said public hearing, the City Council adopted its Ordinance 950 on December 21, 2005, approving the Second Amended and Restated North Highway Plan, which amends and restates in its entirety the North Highway Plan and the Amended and Restated North Highway Plan and making certain findings; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the First Amendment to the Second Amended and Restated North Highway Plan (the "First Amendment to the Second Amended and Restated North Highway Plan"), which amendment deannexed parcels from the existing revenue allocation area; WHEREAS, following said public hearing the City Council adopted its Ordinance No. 1230 on June 17, 2020, approving the First Amendment to the Second Amended and Restated North Highway Plan and making certain findings; WHEREAS, the North Highway Plan, as amended, collectively will be referred to as the "North Highway Plan" and the corresponding North Highway revenue allocation area, as amended, will be referred to as the "Project Area"; WHEREAS, the North Highway Plan contained a revenue allocation financing provision pursuant to the Local Economic Development Act, Title 50, Chapter 29, Idaho Code, as amended (the "Act"); WHEREAS, the termination date for the Project Area, as set forth in North Highway Plan, is December 31, 2021, except for revenues to be received in 2022, as authorized pursuant to Idaho Code § 50-2905(7); WHEREAS, a substantial portion of the improvements and/or projects are in progress or have been completed in the Project Area; WHEREAS, there are remaining projects to be completed under the North Highway Plan, which will not be fully completed and paid for by the end of the Agency's current fiscal year ending September 30, 2022; WHEREAS, it is expected most of the expenses from any remaining projects and/or improvements to be completed under the North Highway Plan are to be incurred and satisfied by the Agency's current fiscal year ending September 30, 2022, with the exception of project carryover costs related to the on -going street improvement project. The carryover amount is included in the budget expense line item for "Construction." An estimate of the remaining obligations, project costs and other administrative fees and costs are set forth in the Termination Plan attached hereto as Exhibit A to Attachment 1. The Termination Budget is attached hereto as Exhibit B to Attachment 1, as updated to reflect current circumstances; WHEREAS, the Agency will request the Madison County Treasurer to not distribute to the Agency any North Highway Plan revenue allocation funds from delinquency tax payments in fiscal year 2023, or subsequent years, generated from the 2021 assessed values, or earlier. To the extent any North Highway Plan revenue allocation funds are received by the Agency in fiscal year 2023, or later, the Agency will return those funds to the County Treasurer for distribution to the taxing districts; WHEREAS, the Agency will have sufficient funds on deposit for payment of all final bonds, obligations, project costs and administrative fees; WHEREAS, the Agency has reviewed the remaining obligations, improvements and/or projects and based on projected revenues and expenses of the North Highway Plan, has determined there are sufficient funds for payment of the final bond payment, all final project costs and Agency expenses, and has further determined the revenue allocation area can be terminated on or before December 31, 2022; WHEREAS, the Agency estimates no surplus will be available for remittance to the County Treasurer for distribution to the taxing districts on or before September 30, 2022; ORDINANCE NO. 1292 - Page - 2 WHEREAS, following the end of the Agency's 2022 fiscal year, the Agency will conduct a final accounting of the Project Area, which may result in a minimal surplus disposition to the County Treasurer for distribution to the taxing districts on or before September 30, 2023; WHEREAS, the Agency on June 15, 2022, adopted Resolution No. 2022-4 recommending the City Council adopt an ordinance terminating the revenue allocation area on or before December 31, 2022. A copy of Agency Resolution No. 2022-4 is attached hereto as Attachment 1; WHEREAS, a copy of the boundary map of the revenue allocation area is attached hereto as Attachment 2. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF REXBURG, IDAHO: Section 1: That the above statements are true and correct. Section 2: That the revenue allocation area contained in the North Highway Plan, as more particularly shown in Attachment 2, is hereby terminated, consistent with the termination provisions set forth in the Act. Section 3: That the tax year 2022 revenues from the increment value as levied upon within the revenue allocation area are not needed for the payment of any Agency indebtedness or Agency projects to be completed before September 30, 2022. Section 4: That Agency has determined there are not any non -obligated surplus funds to be remitted to the County Treasurer prior to the end of the Agency's 2022 fiscal year on or before September 30, 2022. That any non -obligated surplus funds deemed by the Agency to exist will be remitted to the County Treasurer following the final accounting of the Agency's 2022 fiscal year on or before April 1, 2023, but in any event no later than September 30, 2023, to be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. See I.C. 50- 2909(4). Further, any other remaining funds in subsequent fiscal years received by the Agency from delinquent taxes after September 30, 2022, shall be disbursed in the same manner each fiscal year. Section 5: That a copy of this Ordinance shall be sent to and/or filed with the Madison County Assessor's Office, the County Auditor/Recorder, and the Idaho State Tax Commission, together with a boundary map, to provide notice of termination of the revenue allocation area in the North Highway Plan by either the City Clerk or Agency representatives. Section 6: At least one-half, plus one of the City Council members finding good cause, the City Council hereby dispenses with the rule that this Ordinance be read on three different days; two readings of which shall be in full, and have hereby adopted this Ordinance, having considered it at one reading. Section 7: That this Ordinance shall be in full force and effect immediately upon its adoption, approval, and publication. Section 8: The Summary of this Ordinance, a copy of which is attached hereto as Attachment 3, is hereby approved. Section 9: All ordinances, resolutions, orders, or parts thereof in conflict herewith are hereby repealed, rescinded, and annulled. Section 10: SAVINGS CLAUSE: This Ordinance does not affect an action or proceeding commenced or right accrued before this Ordinance takes effect. ORDINANCE NO. 1292 - Page - 3 PASSED by the City Council of the city of Rexburg, Idaho, on this 2nd day of November 2022. APPROVED by the Mayor of the city of Rexburg, Idaho, on this 2°d day of November 2022. ATTEST: borah Lovejoy, Ci STATE OF IDAHO County of Madison '�. C rk CORPp�T .� ss: .,, ........... I, DEBORAH LOVEJOY, City Clerk of the city of Rexburg, Idaho, do hereby certify: That the above and foregoing is a full, true and correct copy of the Ordinance Entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO, IMMEDIATELY TERMINATING THE REVENUE ALLOCATION AREA FOR THE NORTH HIGHWAY PROJECT AREA, AS AMENDED; REQUIRING DISTRIBUTION OF ANY NON -OBLIGATED SURPLUS DETERMINED TO EXIST AS OF SEPTEMBER 30, 2022, PURSUANT TO SECTION 50-2909, IDAHO CODE; AUTHORIZING THE CITY CLERK OR URBAN RENEWAL AGENCY OF REXBURG, IDAHO, ALSO KNOWN AS THE REXBURG REDEVELOPMENT AGENCY, TO FILE THE ORDINANCE, TOGETHER WITH THE BOUNDARY MAP, WITH THE OFFICE OF THE COUNTY RECORDER, THE COUNTY ASSESSOR, AND THE IDAHO STATE TAX COMMISSION AS PROVIDED IN SECTION 63-215, IDAHO CODE; PROVIDING THAT A COPY OF THIS ORDINANCE SHALL BE GIVEN TO EACH OF THE TAXING ENTITIES AFFECTED BY SAID REVENUE ALLOCATION AREA; APPROVING THE SUMMARY OF THE ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. 1 Deborah Lovejoy, City C4rk ORDINANCE NO. 1292 - Page - 4 CITY OF REXBURG ORDINANCE NO. 1292 ATTACHMENT 1 AGENCY TERMINATION RESOLUTION NO. 2022-4 ORDINANCE NO. 1292 - Page - 5 RESOLUTION NO.2022-4 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF REXBURG, IDAHO, AKA THE REXBURG REDEVELOPMENT AGENCY: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF REXBURG, IDAHO, ALSO KNOWN AS THE REXBURG REDEVELOPMENT AGENCY, MAKING CERTAIN FINDINGS THAT REVENUES ARE SUFFICIENT TO COVER ALL ESTIMATED AGENCY EXPENSES FOR FUTURE YEARS FOR THE URBAN RENEWAL AREA AND REVENUE ALLOCATION AREA KNOWN AS THE NORTH HIGHWAY PROJECT AREA; ESTIMATING THE REMAINING PROJECT OBLIGATIONS AND COSTS; RECOMMENDING TO THE CITY COUNCIL THAT THE REVENUE ALLOCATION PROVISION FOR THE NORTH HIGHWAY PROJECT AREA BE TERMINATED; RECOMMENDING FURTHER THAT THE CITY COUNCIL PASS AN ORDINANCE TERMINATING THE REVENUE ALLOCATION PROVISION FOR THE NORTH HIGHWAY URBAN RENEWAL PLAN, AS AMENDED, AND RETURNING THE REVENUE ALLOCATION AREA TO THE REGULAR TAX ROLL EFFECTIVE TAX YEAR 2022; PROVIDING FOR THE PAYMENT OF DELINQUENT PROPERTY TAXES FOLLOWING TERMINATION; PROVIDING FOR PAYMENT OF CERTAIN EXPENSES FOR FUTURE FISCAL YEARS; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the Urban Renewal Agency of Rexburg, Idaho, also known as the Rexburg Redevelopment Agency, an independent public body, corporate and politic, is an urban renewal agency created by and existing under the authority of the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law"), a duly created and functioning urban renewal agency for Rexburg, Idaho, hereinafter referred to as the "Agency." WHEREAS, the City Council ("City Council") of the city of Rexburg, Idaho ("City"), after notice duly published, conducted a public hearing on the Urban Renewal Plan, North Highway Urban Renewal Project (the "North Highway Plan"); WHEREAS, following said public hearing the City Council adopted its Ordinance No. 728 on December 27, 1991, approving the North Highway Plan, making certain findings and establishing the North Highway revenue allocation area (the "Project Area"); RESOLUTION NO. 2022-4 - 1 (Intent to Tenninate the North Highway RAA) WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Amended and Restated Urban Renewal Plan, North Highway Urban Renewal Project (the "Amended and Restated North Highway Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 815 on December 30, 1998, approving the Amended and Restated North Highway Plan and making certain findings; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Second Amended and Restated Urban Renewal Plan, North Highway Urban Renewal Project, Including South Addition (the "Second Amended and Restated North Highway Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance 950 on December 21, 2005, approving the Second Amended and Restated North Highway Plan, which amends and restates in its entirety the North Highway Plan and the Amended and Restated North Highway Plan and making certain findings; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the First Amendment to the Second Amended and Restated North Highway Plan (the "First Amendment to the Second Amended and Restated North Highway Plan"), which amendment deannexed parcels from the existing revenue allocation area; WHEREAS, following said public hearing the City Council adopted its Ordinance No. 1230 on June 17, 2020, approving the First Amendment to the Second Amended and Restated North Highway Plan and making certain findings; WHEREAS, the North Highway Plan, as amended, collectively will be referred to as the "North Highway Plan" and the corresponding North Highway revenue allocation area, as amended, will be referred to as the "Project Area"; WHEREAS, the North Highway Plan contained a revenue allocation financing provision pursuant to the Local Economic Development Act, Title 50, Chapter 29, Idaho Code, as amended (the "Act'); WHEREAS, the termination date for the Project Area, as set forth in North Highway Plan, is December 31, 2021, except for revenues to be received in 20221, as authorized pursuant to Idaho Code § 50-2905(7); WHEREAS, all identified improvements and/or projects are in progress or have been completed in the Project Area, and the Agency intends to terminate the Project Area; WHEREAS, the Agency expects all obligations and all of the expenses from any remaining projects and/or improvements to be completed under the North Highway Plan, and as 1 Agency received its allocation of the first half of the 2021 tax payments, in or around February 2022, and is anticipating receipt of the second half of the 2021 tax payments in July or August 2022, following the June 20, 2022, payment deadline. RESOLUTION NO. 2022-4 - 2 (Intent to Terminate the North Highway RAA) identified in the North Highway Termination Budget (FY2022) attached hereto as Exhibit B, to be incurred and satisfied by the Agency's current fiscal year ending September 30, 2022, with the exception of (1) possible cost overruns from current projects; (2) unexpected construction delays; and (3) final year administrative fees and costs. An estimate of the remaining obligations, project costs and other administrative fees and costs are set forth in the Termination Plan attached hereto as Exhibit A; WHEREAS, the Agency will request the Madison County Treasurer to not distribute to the Agency any North Highway Plan revenue allocation funds from delinquency tax payments in fiscal year 2023, or subsequent years, generated from the 2021 assessed values, or earlier. To the extent any North Highway Plan revenue allocation funds are received by the Agency in fiscal year 2023, or later, the Agency will return those funds to the County Treasurer for distribution to the taxing districts; WHEREAS, the Agency will have sufficient funds on deposit for payment of all final bonds, obligations, project costs and administrative fees; WHEREAS, the Agency has reviewed the remaining obligations, improvements and/or projects and based on projected revenues and expenses of the North Highway Plan, has determined there are sufficient funds for payment of the final bond payment, all final project costs and Agency expenses, and has further determined the revenue allocation area can be terminated on or before December 31, 2022; WHEREAS, pursuant to Exhibit A, the Agency estimates a surplus will be available for remittance to the County Treasurer for distribution to the taxing districts on or before September 30, 2022. NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE REXBURG REDEVELOPMENT AGENCY, REXBURG, IDAHO, AS FOLLOWS: Section 1: That the above statements are true and correct. Section 2: That the Termination Plan attached hereto as Exhibit A is hereby approved and adopted by the Agency Board. Section 3: That the revenue allocation area contained in the North Highway Plan shall be terminated on or before December 31, 2022, consistent with the termination provisions set forth in the Act, allowing certain taxing entities to use the 2022 estimated assessed values above the adjusted base assessment roll for the Project Area for their budgetary purposes, and further, pursuant to Idaho law, as amended, those certain taxing entities may, for their budgetary purposes, take into account a portion of the increment value that exceeds the incremental value as of December 31, 2006, for the Project Area, which portion of the increment value shall be added to the 2022 new construction roll, pursuant to Idaho Code § 63-301 A(3)(g), as amended. RESOLUTION NO. 2022-4 - 3 (Intent to Terminate the North Highway RAA) Section 4: That the Agency does not intend to take revenue allocation funds in fiscal year 2023, generated from the 2022 assessed values, and the allocation of revenues under section 50-2908, Idaho Code, shall cease effective January 1, 2023. Section 5: That all financial obligations have been provided for, and any outstanding bonds and/or other obligations will be paid in full on or before September 30, 2022, with the exception of any reimbursement agreements or notes that have expired, terminated or cancelled on their own terms, project cost overruns from current projects, project costs for unexpected construction delays, and an allocation for any final administrative fees and costs. The Agency will have sufficient funds on deposit for payment of the final bond payment, all final project costs and administrative fees. Section 6: That any delinquent property taxes due to the Agency that were levied for calendar year 2021, or earlier, shall not be paid to the Agency, but shall be distributed by the County Treasurer to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. Section 7: That any non -obligated surplus deemed by the Agency to exist will be remitted to the County Treasurer for distribution to the taxing districts prior to the end of the Agency's 2022 fiscal year on or before September 30, 2022, in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. See I.C. 50-2909(4). Section 8: That the Agency does hereby request that the City Council, pursuant to 50-2903(5), Idaho Code, adopt an Ordinance providing for the termination of the revenue allocation area in the North Highway Plan, to be effective on or before December 31, 2022, and declaring that the tax year 2022 revenues' from the increment value as levied upon within the revenue allocation area are not needed for the payment of any Agency indebtedness or Agency projects to be completed before September 30, 2022, and should flow to the respective taxing districts pursuant to Idaho law. Section 9: That a copy of this Resolution be sent to the Madison County Assessor's Office, the Madison County Auditor/Recorder and the Idaho State Tax Commission to provide notice of termination of the revenue allocation area in the North Highway Plan. Section 10: That this Resolution shall be in full force and effect immediately upon its adoption and approval. Z The Agency will receive its allocation of tax year 2021 revenues in fiscal year 2022. RESOLUTION NO. 2022-4 - 4 (Intent to Terminate the North Highway RAA) PASSED AND ADOPTED by the Rexburg Redevelopment Agency of Rexburg, Idaho, on June 15, 2022. Signed by the Chair of the Board of Commissioners and attested by the Secretary to the Board of Commissioners, on June 15, 2022. APPROVED; By:1/1",-�� hair ATTEST: By: Secretary RESOLUTION NO. 2022-4 - 5 (Intent to Terminate the North Highway RAA) EXHIBIT A THE URBAN RENEWAL AGENCY OF REXBURG, IDAHO TERMINATION PLAN FOR THE REVENUE ALLOCATION AREA SET FORTH IN THE NORTH HIGHWAY URBAN RENEWAL PLAN, AS AMENDED THE "NORTH HIGHWAY PLAN" The Urban Renewal Agency of Rexburg, Idaho aka the Rexburg Redevelopment Agency (the "Agency") intends to terminate the revenue allocation area adopted at the time of the original adoption of the Urban Renewal Plan, North Highway Urban Renewal Project, by the Rexburg City Council on December 27, 1991, by Ordinance No. 728 (the "North Highway Plan"), as subsequently amended by the i) North Highway Amended and Restated Urban Renewal Plan, adopted by Ordinance No. 815 on December 30, 1998; ii) Second Amended and Restated North Highway Urban Renewal Plan, North Highway Urban Renewal Project, Including South Addition, adopted by Ordinance No. 950 on December 21, 2005; and iii) First Amendment to the Second Amended and Restated North Highway Urban Renewal Plan, North Highway Urban Renewal Project, Including South Addition, deannexing parcels from the existing revenue allocation area, and adopted by Ordinance No. 1230 on June 17, 2020. Collectively, the North Highway Plan, as amended is referred to as the "North Highway Plan," and the North Highway revenue allocation area, as amended, is referred to as the "Project Area." The termination date for this Project Area is December 31, 2021; except for revenues to be received in 2022, as authorized pursuant to Idaho Code § 50-2905(7). The Agency has reviewed the projected revenues and expenses of the Project Area and has determined the Project Area can be terminated by December 31, 2022, effective retroactive to January 1, 2022, as it relates to assessed values within the Project Area. As a result, the Agency will not receive revenue allocation funds in calendar year 2023, generated from the 2022 assessed values, and the allocation of revenues under § 50-2908, Idaho Code, shall cease effective January 1, 20233. Based on updated budget information, this Termination Plan is prepared in order to describe the Agency's plan to pay its financial obligations on or before September 30, 2022, and the reservation of revenue allocation proceeds to pay certain obligations and/or administrative costs after September 30, 2022. Intent Reeardine Delinauencies: The Agency will request the Madison County Treasurer to not distribute to the Agency any North Highway Plan revenue allocation funds from delinquency tax payments after September 30, 2022, or subsequent years, generated from the 2021 assessed values, or earlier. To the extent any Project Area revenue allocation funds are received by the Agency after September 30, 2022, or later, the Agency will return those funds to the Madison County Treasurer for distribution to the taxing districts in the same manner and proportion as the most 3 Agency intends to receive the second half of the 2021 tax payments in July or August 2022, following the June 20, 2022, payment deadline. RESOLUTION NO. 2022-4 - 6 (Intent to Terminate the North Highway RAA) recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. Fiscal Year 2022 Termination Budget Summary: 2016 Bonds — Final Payment The Bank of Commerce holds the Rexburg Redevelopment Agency Revenue Allocation Refunding Bond, Series 2016, which has a maturity date of September 1, 2022. The final principal and interest payment, including certain costs is estimated to be $461,000 and will be paid on or before September 1, 2022. There is no reserve fund balance. Property_ Disposition In May 2022, the Agency disposed of a parcel of real property owned by the Agency and consisting of approximately .8 acres located at 386 East 7th North, Rexburg, Idaho (the "Site"). The Agency, pursuant to a competitive process, awarded development rights to Spartan Investments, LLC, an Idaho limited liability company, for the redevelopment of the Site in conformance with the North Highway Plan. The developer established a new single purpose entity to undertake the development, 7N Apartments, LLC, an Idaho limited liability company. The developer and Agency worked through late 2021 through 2022, to refine the proposed scope of development and other development details and the parties entered into a Disposition and Development Agreement ("DDA"). The DDA included a schedule of performance and established the purchase price to be paid by the developer in an amount of $179,286, subject to certain conditions. The Agency complied with the disposition requirements set forth in Idaho Code section 50-2011 and post -closing is monitoring the construction of the development to ensure development is occurring as contemplated in the DDA. Pursuant to the DDA, the Agency retains the right to repurchase, reenter and take possession of the Property, subject to certain conditions. Public Infrastructure Improvements — Street Improvements, Installation of Fiber The Agency has budgeted $779,900 for improvements to certain rights -of -way within the Project Area, including the installation of certain fiber improvements. The improvement project is anticipated to commence summer 2022, and estimated to be completed on or before September 30, 2022. Agency anticipates all construction costs incurred related to the improvement project will be paid on or before September 30, 2022. To the extent, the improvement project is delayed and cannot be completed on or before September 30, 2022, which could occur due to supply chain issues and/or labor shortages, the contracted amount, plus a reasonable contingency will be reserved and carried over to the Agency's final FY2023 budget for the Project Area. Administrative/Operations Fees and Costs For the FY2022 updated forecasted budget, the Agency estimated administrative costs in the amount of $3,000 and attorney costs in the amount of $10,000. RESOLUTION NO. 2022-4 - 7 (Intent to Terminate the North Highway RAA) Estimated Non -Obligated Surplus Funds The Agency is anticipating there will be a surplus to be distributed back to the taxing districts prior to the end of the Agency's 2022 fiscal year on September 30, 2022, which amount is tentatively estimated to be $24,500. Any non -obligated and available surplus funds on September 30, 2022, will be remitted to the Madison County Treasurer to be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. A portion of the available surplus funds on September 30, 2022, may be retained for payment of final year administrative/operations fees and costs (final year audit, legal, publication costs, etc.). It is possible there will be a final supplemental distribution of surplus funds on September 30, 2023, following payment of all final Agency expenses and financial obligations and upon a final accounting of the North Highway Plan and Project Area. Final Year Administrative Costs The Agency anticipates there will be final year administrative costs, including allocable share of the audit, legal reporting requirements, and legal and administrative costs incurred in closing out the Project Area. In anticipation of these final closeout costs, an amount not to exceed $24,500 will be reserved and carried over to FY2023. As set forth above, a final supplemental distribution of de minimis surplus funds may occur on or before September 30, 2023, following payment of all final Agency expenses and financial obligations and upon a final accounting of the North Highway Plan and Project Area. The final surplus amount will be remitted to the Madison County Treasurer and shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. 4818-7381-7710. v. 1 RESOLUTION NO. 2022-4 - 8 (Intent to Terminate the North Highway RAA) EXHIBIT B (FY22 Termination Budget) AlB I C I D E F1 G I H. L Rexburg Urban Renewal Agency 4,302022 2 BUDGET REPORT 3 2020 2021 2022 2022to 2022 202 4 Actual Actual Budget Date Actual Forecast Budgi 5 6 NORTH HIGHWAY DISTRICT 7 REVENUE Taxes S 804.470 S 685.287 S 4,38971 S 830.000 S Other Revenue )GPSI) S 139.480 Interest Income S - S 318 S 468 S 800 Sale of Proper, S S 1� S 178.033 S 178.000 S Fund Balance Carryover S S S . S 611.100 S 24.500 S 804.470 S 825.085 S 922.800 6 617.472 S 1-6-1f!WS 24.500 EXPENSE Bond Principal Payments S 428. 169 5 438.894 S 449,800 S - S 449.800 S Bond InteresrCost Expense S 32 801 S 22 075 S 11,200 S 5,541 S 11.200 S Administration S 1.447 S 3.589 $ 25 S 3.000 S - Attorney Costs S 7.815 S - S 7.956 S 10.000 S 24.500 Land Acqu)sition S - S 650 $ - S S - Construmn S S 142.334 S 41.123 S 779.900 S Disposition of Property S S S 341,512 S 341.500 S Contingency S S S . S . S . S 4838-8569-7750, v. 1 RESOLUTION NO. 2022-4 - 9 (Intent to "Terminate the North Highway RAA) The previous notice of "Intent to Terminate... North Highway Urban Renewal..." contained a scrivener's (clerical) error. The resolution number was listed as 2022-3 and should have been 2022-4. The new notice contains this correction and is otherwise identical to the prior notice. -Scott Miller 208-372-2133 UPDATE TO EXHIBIT B TO ATTACHMENT 1 Agency may carryover an amount not to exceed $500,000 of the "Construction" expense line item of the FY22 Termination Budget to fund the final costs related to the on -going street improvement project in coordination with the City. It is anticipated the Agency will receive an invoice by the end of the calendar year. The Agency may carryover an amount not to exceed $24,500 of the "Attorney Costs" expense line item of the FY22 Termination Budget to fund final administration and operating costs related to terminating the Project Area. ORDINANCE NO. 1292 - Page - 6 ATTACHMENT 2 REVENUE ALLOCATION AREA MAP ORDINANCE NO. 1292 - Page - 7 ATTACHMENT 3 TERMINATION ORDINANCE SUMMARY ORDINANCE NO. 1292 - Page - 8 SUMMARY OF ORDINANCE NO. 1292 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO, IMMEDIATELY TERMINATING THE REVENUE ALLOCATION AREA FOR THE NORTH HIGHWAY PROJECT AREA, AS AMENDED; REQUIRING DISTRIBUTION OF ANY NON - OBLIGATED SURPLUS DETERMINED TO EXIST AS OF SEPTEMBER 30, 2022, PURSUANT TO SECTION 50-2909, IDAHO CODE; AUTHORIZING THE CITY CLERK OR URBAN RENEWAL AGENCY OF REXBURG, IDAHO, ALSO KNOWN AS THE REXBURG REDEVELOPMENT AGENCY, TO FILE THE ORDINANCE, TOGETHER WITH THE BOUNDARY MAP, WITH THE OFFICE OF THE COUNTY RECORDER, THE COUNTY ASSESSOR, AND THE IDAHO STATE TAX COMMISSION AS PROVIDED IN SECTION 63-215, IDAHO CODE; PROVIDING THAT A COPY OF THIS ORDINANCE SHALL BE GIVEN TO EACH OF THE TAXING ENTITIES AFFECTED BY SAID REVENUE ALLOCATION AREA; APPROVING THE SUMMARY OF THE ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF REXBURG, IDAHO: Section 1: That the above statements are true and correct. Section 2: That the revenue allocation area contained in the North Highway Plan, as more particularly shown in Attachment 2, is hereby terminated, consistent with the termination provisions set forth in the Act. Section 3: That the tax year 2022 revenues from the increment value as levied upon within the revenue allocation area are not needed for the payment of any Agency indebtedness or Agency projects to be completed before September 30, 2022. Section 4: That Agency has determined there are not any non -obligated surplus funds to be remitted to the County Treasurer prior to the end of the Agency's 2022 fiscal year on or before September 30, 2022. That any non -obligated surplus funds deemed by the Agency to exist will be remitted to the County Treasurer following the final accounting of the Agency's 2022 fiscal year on or before April 1, 2023, but in any event no later than September 30, 2023, to be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. See I.C. 50-2909(4). Further, any other remaining funds in subsequent fiscal years received by the Agency from delinquent taxes after September 30, 2022, shall be disbursed in the same manner each fiscal year. Section 5: That a copy of this Ordinance shall be sent to and/or filed with the Madison County Assessor's Office, the County Auditor/Recorder, and the Idaho State Tax Commission, together with a boundary map, to provide notice of termination of the revenue allocation area in the North Highway Plan by either the City Clerk or Agency representatives. Section 6: At least one-half, plus one of the City Council members finding good cause, the City Council hereby dispenses with the rule that this Ordinance be read on three different days; two readings of which shall be in full, and have hereby adopted this Ordinance, having considered it at one reading. Section 7: That this Ordinance shall be in full force and effect immediately upon its adoption, approval, and publication. Section 8: The Summary of this Ordinance, a copy of which is attached hereto as Attachment 3, is hereby approved. Section 9: All ordinances, resolutions, orders, or parts thereof in conflict herewith are hereby repealed, rescinded, and annulled. Section 10: SAVINGS CLAUSE: This Ordinance does not affect an action or proceeding commenced or right accrued before this Ordinance takes effect. 2022. PASSED by the City Council of the city of Rexburg, Idaho, on this 2nd day of November 2022.. APPROVED by the Mayor of the city of Rexburg, Idaho, on this 2nd day of November ATTACHMENTS TO THE ORDINANCE Attachment 1 Agency Resolution No. 2022-4, including as exhibits the Termination Plan setting forth an estimate of remaining project costs and other administrative fees and costs, together with an estimate of any surplus that may be available for distribution, and a proposed Termination Budget, as subsequently updated Attachment 2 Revenue Allocation Area Map Attachment 3 Ordinance Summary The full text of Ordinance 1292 is available at the offices of the City Clerk, 35 N. 1 st East, Rexburg, Idaho, 83440. This summary approved by the Rexbur City Council at its eeting o NNovember 2, 2022. i .A ATTEST: De orah Lovejoy, City Clerk I, Stephen Zollinger, City Attorney for the City of Rexburg, declare that in my capacity as City Attorney of the City of Rexburg, pursuant to Idaho Code Section 50-901A(3) of the Idaho Code as amended, I hereby certify that I have reviewed a copy of the above cited Summary of Ordinance and have found the same to be true and complete and to provide adequate notice to the public of the contents, including the exhibits, of Ordinance No. 1292. DATED this 2"d day of November 2022.