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HomeMy WebLinkAboutP&Z Minutes 8.20.26(208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Planning and Zoning Minutes – August 20, 2026 P&Z Commissioners: City Staff: Jim Lawrence Tammy Geddes Alan Parkinson – P&Z Administrator Bruce Casper Rick Robinson Elise Rasmussen – P&Z Administrative Assistant McKay Francis Tina Lesh Kyle Baldwin – Planner 1 Brian Thackeray Candi McFadden Natalie Powell – Compliance Officer Vern Muir Dan Hanna Deidra Smith Spencer Rammell – Commissioner Attorney Chairperson Francis opened the meeting at 6:30 PM. Planning & Zoning Meeting: 1. Welcome & Pledge of Allegiance - Commissioner Rick Robinson 2. Recognition of Service –Randall Kempton Mayor Merrill first introduced Elise Rasmussen, who had recently been hired to take Katie Jo’s place. Katie Jo served the city very well, and he expressed appreciation for all of her efforts and contributions. Elise was welcomed, and he looked forward to working with her for a long time and getting to know her as she worked with the commissioners. Mayor Merrill also thanked Randall Kempton and invited him to come forward to receive a plaque from the city. Randall served the city faithfully as a Planning and Zoning Commissioner from June 4, 2020, to August 6, 2026. The plaque recognized his dedicated service and significant contributions to the betterment of the City of Rexburg. Randall had served faithfully on the commission and had also served as vice chair, frequently taking the chair during meetings. Mayor Merrill expressed appreciation for his many years of service and the positive contributions he had made. Randall then briefly addressed the group. He said that it had been an honor to serve on the commission and to get to know the members. He expressed gratitude for the time he had been able to serve and wished everyone good luck. 3. Commissioner Introduction – Candi McFadden Mayor Merrill welcomed Candi McFadden as the newest member of the Planning and Zoning Commission. He noted that many community members already knew her as the co-owner, along with her husband, of the TacoTime restaurant on Second West. Mayor Merrill highlighted her long-time residency in Rexburg and expressed confidence that she would serve the commission well. The commission welcomed Ms. McFadden and expressed appreciation for her willingness to serve. 4. ROLL CALL of Planning and Zoning Commissioners: (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Present: Jim Lawrence, Bruce Casper, McKay Francis, Brian Thackeray, Vern Muir, Dan Hanna, Tammy Geddes(online), Rick Robinson, Tina Lesh, & Candi McFadden Absent: Aaron Richards & Deidra Smith 5. Approval of the P&Z Minutes for August 6th, 2026 (Action) MOTION: Motion to approve/deny the Planning & Zoning minutes for August 6th, 2026 (Action) Action: Approve, Moved by Rick Robinson, Seconded by Tina Lesh. Chairman Makay Francis requested approval of the Planning and Zoning Commission meeting minutes from August 6, 2026, and asked for any discussion or a motion. Commissioner Rick Robinson moved to approve the minutes as written. Commissioner Tina Lesh seconded the motion. A vote was taken, and the motion passed unanimously by voice vote. Commissioner Discussion on the Motion: VOTE: Motion - carried Yes: Jim Lawrence, Bruce Casper, McKay Francis, Brian Thackeray, Vern Muir, Dan Hanna, Tammy Geddes(online), Rick Robinson, Tina Lesh, & Candi McFadden No: Abstain: Chairman Makay Francis announced that the commission would be conducting two public hearings during the meeting. He introduced the first public hearing regarding a Conditional Use Permit (CUP) application for a wireless communication tower proposed at approximately 1450 North 2nd East near Walmart. Chairman Francis explained that city staff would first present the application, after which the public hearing would be opened for public comment. He stated that individuals speaking in favor, neutral, or opposed to the proposal would each be given an opportunity to comment and requested that remarks be limited to three minutes per person. 1. Public Hearing - Walmart Wireless Communication Tower - CUP (26-00649) – Located at approximately 1450 N 2nd E, the application is to construct a cell tower. – SBA Towers X LLC (Action) Conflict of Interest/Ex parte Conversation: Chairperson Francis asked the Commissioners to disclose any conflicts of interest or conversations held outside of this meeting relative to this particular subject. Presentation: (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Alan Parkinson presented the staff report and reviewed the proposed location of the tower. He explained that staff's primary concern had been the tower's proximity to neighboring properties. The applicant had provided an engineering certification demonstrating that, in the event of a structural failure, the tower would collapse within its own footprint and would not impact adjacent properties. Mr. Parkinson stated that the application met all applicable requirements and that staff were recommending approval of the Conditional Use Permit. Commissioner Brian Thackeray asked whether the Conditional Use Permit would remain in effect if the property changed ownership. Mr. Parkinson explained that the permit remained with the approved location and would continue to apply even if ownership of the property changed. He noted that a new Conditional Use Permit would only be required if the tower were relocated. Chairman McKay Francis asked follow-up questions regarding the tower's height and the requirements related to potential tower failure. Mr. Parkinson explained that the tower would be approximately 100 feet tall, below the maximum allowable height of 120 feet, and that the engineering certification eliminated the need for additional setbacks or agreements with neighboring property owners because the tower was designed to collapse within its own footprint. Commissioner Dan Hanna asked about the purpose of the tower, whether it would compete with existing towers, and whether staff viewed the project as beneficial to the community. Mr. Parkinson explained that the tower would help improve wireless communication coverage and could potentially serve multiple providers. He noted that the facility had received the necessary FAA and FCC approvals and stated that improved coverage would benefit residents, businesses, and emergency services throughout the community. Commissioner Tammy Geddes, participating online, asked about safety protocols and how unauthorized access to the tower would be prevented. Mr. Parkinson explained that the site would be enclosed by fencing and that the tower would be designed to discourage climbing. He also noted that a small equipment building would be located on- site to house communications equipment. Commissioner Rick Robinson asked how the tower would be screened from view and jokingly questioned whether it would be disguised as a palm tree. Mr. Parkinson responded that the site would be screened through either privacy fencing or landscaping to minimize visual impacts and confirmed that the tower would not be designed to resemble a tree or other structure. Shahzad Mahmood, representing Kimley-Horn on behalf of SBA Communications, the cell tower owner and developer, and Walmart, the property owner, provided additional information on the project. He stated that Verizon would serve as the tower's initial or "anchor" tenant and would be the first carrier to install equipment once the tower was constructed. Mr. Mahmood also expressed confidence that AT&T and T-Mobile would likely collocate on the tower in the future. He indicated that he had no additional comments but was available to answer questions from the commission. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Chairperson Francis opened the public input portion of the hearing at 6:48 pm. Favor: none Neutral: Chairman McKay Francis opened the public comment portion of the public hearing and invited testimony from individuals speaking in favor, neutral, or opposed to the application. He requested that speakers state their name and address and limit comments to three minutes. Mario Gomez, 4711 North 495 West, spoke as a neutral party. He stated that, based on his previous experience working with power company towers, he had concerns regarding the assertion that the proposed tower would collapse completely within its own footprint if it failed. Mr. Gomez questioned how that could be achieved, noting that he had never seen a tower designed to do so. Alan Parkinson responded that the applicant had submitted an engineering certification stating that the tower would collapse within its own footprint. He explained that the engineer who signed and stamped the certification would be responsible for damages if the tower failed in a manner inconsistent with the approved engineering design. Chairman McKay Francis added that the City's engineering staff, who had reviewed the application materials, would likely be better equipped to address the technical engineering aspects of the design than the commission members. Commissioner Candi McFadden asked about the likelihood that the tower would collapse within its own footprint in the event of a structural failure. Mr. Parkinson responded that the engineering certification indicated that the tower was designed to collapse on itself and that the engineer had certified that outcome as part of the application. Opposed: Written Correspondence: Rebuttal: Chairperson Francis closed the public input portion of the hearing at 6:50 pm. Chairman McKay Francis asked whether there were any additional neutral comments regarding the application. Hearing none, he then requested comments from anyone opposed to the proposal. No comments were received from the public, and staff confirmed that no individuals online wished to speak. Chairman Francis then closed the public hearing and opened the matter for commission discussion. Commissioner Discussion: Commissioner Jim Lawrence stated that he believed the proposed location was a good spot for the cell tower. He noted that the site was located near light industrial uses and close to Highway 20, which could help improve wireless connectivity in the area. Commissioner Lawrence expressed support for the proposal and stated that he viewed it as a great opportunity for the community. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Commissioner Candi McFadden commented that she had experienced reduced cell service near the fairgrounds during events with large numbers of vendors and visitors. She stated that improved cellular coverage would be beneficial for fair vendors, residents, and the community as a whole. She added that if the tower also enhanced fiber communications, she believed it would be a positive addition. Commissioner Rick Robinson stated that he liked the proposed location of the tower. He noted that its placement behind the Walmart building would reduce its visual impact and prevent it from becoming a significant eyesore within the new development occurring in the area. He agreed that the location was a good fit for the project MOTION: Motion to recommend City Council approve the Walmart Wireless Communication Tower Conditional Use Permit located at approximately 1450 North 2nd East. Action: Approve/Deny, Moved by Bruce Casper, Seconded by Vern Muir. Commissioner Discussion on the Motion: Commissioner Bruce Casper made a motion to recommend that the City Council approve the Walmart Wireless Communication Tower Conditional Use Permit located at approximately 1450 North 2nd East. He stated that the proposal complied with City requirements, had been reviewed by City staff, and that the tower was located in an appropriate location. Chairman McKay Francis clarified that the motion was specifically to recommend approval of the Conditional Use Permit. Commissioner Vern Muir seconded the motion. Chairman Francis called for any additional discussion. Hearing none, a vote was taken. The motion passed unanimously, and the commission recommended approval of the Walmart Wireless Communication Tower Conditional Use Permit to the City Council. VOTE: Motion carried. (Summary: Yes= , No= , Abstain = ). Yes: Jim Lawrence, Bruce Casper, McKay Francis, Brian Thackeray, Vern Muir, Dan Hanna, Tammy Geddes(online), Rick Robinson, Tina Lesh, & Candi McFadden No: Abstain: 2. Public Hearing – (26-00321) Basic American – Annexation – Located at approximately 80 E 7th N, the application is to amend the city boundaries. – City of Rexburg (Action) Conflict of Interest/Ex parte Conversation: Chairperson Francis asked the Commissioners to disclose any conflicts of interest or conversations held outside of this meeting relative to this subject. Chairman McKay Francis introduced the second public hearing of the evening regarding the Basic American Annexation located at (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org approximately 80 East 7th North. He explained that the application sought to amend the City of Rexburg boundaries through annexation of the property into the city. Chairman Francis stated that the hearing would follow the same format as the previous public hearing, with city staff presenting the application first, followed by an opportunity for public comment. Presentation: City Staff Alan Parkinson – Annexing only portion that uses city resources. Based on the current rules it is considered implied consent to annex them into the city (forced). Spencer talked about the legal aspect of this. He spoke about the Idaho code. Talked about 13A code that talks about agricultural land. Has property over 5 acres. Property is not taxed as Ag. Alan spoke, Then Brian spoke. Ask questions about industrial use. Mckay Francis asked if this had been seen before. Spencer spoke up about it. Alan Parkinson presented the staff report for the proposed Basic American annexation located at approximately 80 East 7th North. He explained that a previous annexation application had included the Basic American property along with four additional parcels. However, after further review and discussions with Basic American, staff determined that the four additional parcels were not receiving City of Rexburg services. As a result, the original application was withdrawn and replaced with a new annexation request that included only the parcel receiving City services. Mr. Parkinson stated that the Basic American facility currently receives a limited amount of culinary water and sewer service from the City for restroom and facility use, while the plant maintains its own water and sewer systems for industrial operations. He also noted that the City's fire protection system serves the facility. Mr. Parkinson explained that, under current annexation regulations, properties receiving municipal services established prior to July 1, 2024, may qualify for annexation through implied consent. He stated that City records indicated service to the property had been established decades earlier, dating back to the 1980s or 1990s. Based on those circumstances, staff was proceeding with a forced annexation and was recommending approval of the annexation request to the City Council. Spencer Rammell, City Attorney, provided legal guidance regarding the proposed annexation. He explained that Basic American Foods had formally objected to the annexation and that representatives of the company and its legal counsel were present at the meeting. Mr. Rammell stated that the City's legal basis for annexation rested on the doctrine of implied consent under Idaho Code. He explained that the City's analysis focused on three questions: whether the property was connected to the City's wastewater system, whether the system was owned and operated by the City of Rexburg, and whether the connection had been established prior to the statutory deadline. He stated that City staff had determined all three conditions had been met and that supporting documentation existed for each finding. Mr. Rammell further explained that correspondence from Basic American Foods and its legal counsel cited an agricultural land exception to annexation. He reviewed the (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org relevant Idaho Code provisions and stated that although the property exceeded five acres, the parcel was not taxed or classified as agricultural land. He noted that the property contains an industrial facility and is assessed as industrial property. Based on discussions with the county assessor and the City's review of the applicable statutes, Mr. Rammell stated that staff did not believe the agricultural exemption applied to the property. Mr. Rammell also advised the commission that Basic American Foods intended to continue its objection to the annexation and had indicated it would pursue a legal challenge if the annexation were approved. He stated that the City anticipated defending its legal position should litigation occur. Alan Parkinson concluded the presentation by reiterating that staff had reviewed the application and recommended approval of the annexation request for the single parcel receiving City services and forwarding a recommendation of approval to the City Council. Commissioner Brian Thackeray asked for clarification regarding the City's position on the agricultural land exemption. He questioned whether a portion of the property was being used for agricultural purposes and whether the City's argument was based on the property's industrial tax classification. Alan Parkinson explained that although byproducts from the facility are sold for animal feed, the parcel functions as part of the plant's wastewater treatment system and is classified as industrial property. He stated that the entire parcel is designated as an industrial use, which was one of the reasons staff narrowed the annexation request to only the parcel receiving City services. Chairman McKay Francis asked for clarification regarding the annexation proposal's history, noting that the commission had previously reviewed and recommended a larger annexation area. He asked whether the revised proposal represented some form of compromise. Spencer Rammell explained that the City had withdrawn the previous annexation proposal and that the current request was a completely separate proceeding involving only a single parcel. He advised the commission that its previous recommendation should have no bearing on its current decision and emphasized that the annexation request before the commission should be evaluated independently on its own merits and legal basis. Chairman McKay Francis thanked Mr. Rammell for the clarification and asked whether there were any additional questions for City staff before moving to the public hearing portion of the item. Chairperson Francis opened the public input portion of the hearing at 7:03 pm. He invited testimony from individuals speaking in favor, neutral, or opposed to the application and reminded participants that comments would generally be limited to three minutes per person. After calling for testimony from those in favor and those with neutral comments, Chairman Francis requested comments from anyone opposed to the annexation proposal. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Spencer Rammell, City Attorney, clarified that because Basic American Foods was directly involved in the proceeding as the affected property owner and had legal rights associated with the annexation process, representatives speaking on behalf of the company would not be limited to the standard three-minute public comment period. He explained that additional time would be allowed to ensure the company had a full opportunity to present its position regarding the annexation proposal. Favor: Neutral: Opposed: Hal McCord spoke first. Explained his stance about why he doesn’t understand this and prices of everything is going up. He concluded. John Kirkpatrick is the environmental advisor. Talked about their sewer connection built in the 70s. Used fire protect in which they use city water. Haven’t used that since 2010. Rancel Aramburu their outside council spoke next. She talked about the policy and legal reasons why they should not recommend approval. Hal McCord, Vice President of Manufacturing and Supply Chain for Basic American Foods, spoke in opposition to the proposed annexation. He stated that Basic American Foods had been part of the Rexburg community for decades and emphasized the company's contributions through employment, agricultural activity, local vendor relationships, and economic investment. He explained that the company employs more than 220 individuals, provides over $20 million in salaries, spends millions annually with local vendors and growers, and generates a significant economic impact within the community. Mr. McCord stated that Basic American Foods was not opposed to the City of Rexburg or to working cooperatively with the City. However, he expressed concern that the annexation was moving forward without a complete understanding of the facility's operations, the agricultural uses occurring on the property, and the services the City currently provides. He also stated that the company was disappointed with the annexation process, indicating that there had been insufficient coordination and communication between the City and Basic American regarding the proposal. Mr. McCord further explained that company operating costs continue to increase due to rising labor, utility, raw material, and production expenses. He expressed concern that annexation could create additional costs without corresponding benefits to the facility. He noted that the Rexburg plant produces approximately 30 percent of the company's products and stated that increasing operational costs could require difficult future business decisions regarding company facilities and operations. Mr. McCord concluded by stating that Basic American Foods did not support the annexation proposal and requested that the commission deny or postpone the annexation request. He stated that doing so would provide an opportunity to improve communication and strengthen the working relationship between the City and Basic American Foods. He then invited another company representative to provide additional information regarding the facility's wastewater operations and interactions with the City. John Kirkpatrick, Corporate Environmental Manager for Basic American Foods, spoke in opposition to the proposed annexation. He stated that Basic American wanted the (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org commission to better understand how the facility operates, its utility needs, and its future growth plans before moving forward with annexation. Mr. Kirkpatrick explained that Basic American has a domestic sewer connection to the City that was established in the 1990s through a cooperative agreement. He noted that the company has worked with the City on multiple infrastructure projects over the years, including utility and easement agreements that benefited both parties. He stated that the facility's domestic wastewater, including restroom waste, is discharged into the City's sewer system and that the company pays monthly sewer service fees as a commercial customer. Mr. Kirkpatrick also explained that the facility maintains its own on-site wastewater treatment and land application system, portions of which date back to the 1960s and 1970s. He described how process water generated from potato production is treated and then applied to nearby agricultural land through irrigation systems. He stated that this practice has historically been used on the property and argued that the land continues to support agricultural activities associated with the facility's operations. Regarding water service, Mr. Kirkpatrick stated that Basic American has its own wells to meet operational needs. He explained that a connection to the City's water system was established in the 1990s primarily to provide fire protection and backup capacity. He noted that the facility previously used City water during annual plant shutdowns but stated that those practices changed around 2010 when the company moved to rolling maintenance schedules. As a result, he said the facility had not relied on the City water connection for operational purposes since approximately 2010 and primarily maintained it for fire protection and emergency backup purposes. Mr. Kirkpatrick further explained that the facility processes approximately two million gallons of water per day and manages its own wastewater system because the strength and volume of the wastewater exceed typical municipal treatment levels. He stated that Basic American had previously explored options for wastewater service with the City during a plant expansion but determined that handling the facility's wastewater through the City's system would require substantial infrastructure and capacity improvements. Rachel Aramburu, outside legal counsel for Basic American Foods, spoke in opposition to the proposed annexation. She stated that representatives of Basic American Foods had submitted a formal objection to the annexation, along with objections from company employees. Ms. Aramburu indicated that her comments would focus on the policy and legal reasons she believed the commission should not recommend approval of the annexation. Ms. Aramburu explained that the City's annexation proposal relied on the legal theory of implied consent based on the property's connection to City services. She stated that under this approach, certain portions of Idaho's annexation statutes related to notice requirements and annexation planning could be bypassed. She argued that this created concerns for Basic American Foods because the company did not have a clear understanding of how the City intended to provide additional municipal services to the property in the future. Ms. Aramburu stated that Basic American Foods currently supplies its own operational water, manages its own wastewater treatment processes, and arranges for its own solid (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org waste services. She also noted that emergency response services are primarily provided through the county. She argued that the company had not received sufficient information regarding the City's long-term plans for providing services to the property and questioned the public policy justification for annexation without a more detailed service plan. Ms. Aramburu then discussed Idaho Code Section 50-222 and the agricultural land exemption contained in Subsection 13(a). She stated that more than 81 acres of the parcel are actively devoted to agricultural use through hay production and land application practices associated with the facility's operations. She argued that the statute protects agricultural land consisting of five acres or more from annexation without the written consent of the property owner. Ms. Aramburu further argued that the agricultural exemption does not require a property to be taxed as agricultural land in order to qualify. Rather, she stated that the tax code is referenced only to define what constitutes land actively devoted to agriculture. Based on that interpretation, she asserted that the property qualified for the agricultural exemption and could not be annexed without Basic American Foods' consent. Ms. Aramburu concluded by urging the commission to deny the annexation request and not recommend approval to the City Council. She stated that Basic American Foods remained willing to continue discussions with the City regarding future municipal services and potential annexation proposals. Chairman McKay Francis thanked her for her comments and clarified that the public hearing was not intended to serve as a question-and-answer session, noting that the City would have an opportunity to respond to comments received during the hearing. Chairman McKay Francis asked whether there were any additional individuals who wished to speak in opposition to the proposed annexation. Hearing none, he closed the public hearing portion of the meeting. Chairman Francis then returned the matter to the City of Rexburg and provided City staff an opportunity to respond to comments and concerns raised during the public hearing before the commission proceeded with its discussion of the application. Written Correspondence: Rebuttal: Alan Parkinson responded to comments made during the public hearing and expressed appreciation for Basic American Foods' longstanding presence and contributions to the community. He acknowledged the company's economic impact and role as a valued community partner. However, he noted that the annexation discussion involved more than utility connections alone. Mr. Parkinson explained that Basic American Foods benefits from City infrastructure and services beyond its limited water and sewer connections. He stated that a significant portion of the facility's traffic accesses the plant through Rexburg city streets, creating impacts on the City's transportation infrastructure. He also referenced the traffic signal installed near the facility at 7th North and 2nd East, noting that the City had worked cooperatively with Basic American Foods to secure funding through a Community Development Block Grant and had supported a five-year tax abatement associated with the project. He emphasized that the City and the company had worked together on several projects over the years for their mutual benefit. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Mr. Parkinson further explained that when Basic American Foods considered expanding its operations, City staff evaluated the possibility of providing additional wastewater service. He stated that City Public Works staff provided cost estimates and infrastructure information, after which the company determined that obtaining additional land for wastewater management was the more economical option. Mr. Parkinson stated that although the company largely operates its own utility systems, it continues to benefit from City infrastructure and services, including roads, public facilities, and other municipal resources. He stated that the City's responsibility is to ensure that all eligible properties contribute their fair share toward maintaining those services and infrastructure for the benefit of the community. Spencer Rammell, City Attorney, provided additional comments regarding the legal issues raised during the public hearing. He stated that the City anticipated defending its position should the annexation be challenged and reiterated that the commission was not being asked to resolve the ultimate legal dispute. Rather, he explained that staff believed the annexation met the legal requirements necessary to move forward. Mr. Rammell discussed the agricultural land exemption cited by Basic American Foods and noted that the property's assessed value was overwhelmingly based on its use as a food processing facility. He explained that the property is taxed and classified as industrial property rather than agricultural land. While a small portion of the overall assessment related to agricultural use, he stated that the primary purpose of the property is industrial food processing. Mr. Rammell argued that the intent of the agricultural exemption was to protect legitimate agricultural land and that applying the exemption to an industrial processing facility would be inconsistent with the policy goals of the statute. Mr. Rammell further stated that he had advised City staff that he was comfortable defending the City's legal position if litigation occurred. He explained that the City's financial officers believed that properties eligible for annexation and benefiting from municipal services should contribute to the City's tax base. He acknowledged that annexation would have financial implications for Basic American Foods due to City property tax rates and stated that he understood the company's opposition. He also noted that discussions had occurred regarding previous tax abatements and possible alternatives; however, staff did not believe another tax abatement would be legally available if annexation were approved. Commissioner Jim Lawrence asked whether discussions between the City and Basic American Foods had resulted in any mutually acceptable agreement. Spencer Rammell responded that the parties had discussed various options, including previous tax- abatement arrangements, but had not reached an agreement that would resolve the annexation issue. He stated that some alternatives were not legally available and that the matter ultimately came down to differing positions regarding taxation and annexation. He noted that, if approved by the commission and City Council, the annexation could proceed through the legal process if challenged. Chairperson Francis closed the public input portion of the hearing at 7:21pm. Commissioner Discussion: (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Chairman McKay Francis opened the matter for commission discussion and encouraged commissioners to review the information presented and discuss the various issues associated with the annexation request. Commissioner Jim Lawrence asked for the map to be zoomed out so the commission could better view the property in relation to the surrounding city boundaries. Alan Parkinson adjusted the map display to provide a broader view of the area. Commissioner Brian Thackeray raised questions regarding the implications of annexation on Basic American Foods' current wastewater treatment and land application operations. He asked whether annexation would affect the company's ability to continue operating its existing wastewater management systems. Alan Parkinson responded that the facility's current operations would be grandfathered and that annexation would not require changes to its existing wastewater treatment or land application processes. He explained that the annexation request was based on the facility's longstanding connections to City water and sewer services. Commissioner Thackeray also questioned whether the property's mixed uses could create legal challenges, noting that portions of the property appeared to be used for agricultural purposes while the facility itself operated as an industrial food-processing plant. Mr. Parkinson clarified that the entire parcel is zoned and taxed as industrial property. Commissioner Brian Thackeray further expressed concern regarding whether the property's actual use, rather than its zoning classification, could affect the City's legal position if the annexation were challenged. Spencer Rammell explained that the issue would likely center on determining the primary purpose and use of the parcel. He noted that questions regarding the property's classification and the applicability of the agricultural exemption would ultimately be legal matters considered through the litigation process if the annexation were challenged. Chairman McKay Francis acknowledged Commissioner Thackeray's concerns regarding potential litigation costs and the City's legal position. The discussion focused on ensuring that the commission understood the legal and practical implications of the annexation proposal before making a recommendation. Commissioner Tina Lesh asked whether the properties adjoining the Basic American parcel were currently annexed into the City. Alan Parkinson reviewed the parcel map and explained that Basic American owns several adjacent parcels, but only the parcel receiving City services was included in the annexation request. He noted that portions of the surrounding area had previously been annexed into the City, while other nearby properties remained in the county but were located within the City's area of impact. Commissioner Lesh also asked about emergency services and utility connections. Mr. Parkinson explained that annexation would primarily shift law enforcement response from the county sheriff to the Rexburg Police Department, while fire protection (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org services would remain largely unchanged because the property is already served by a fire district. Spencer Rammell, City Attorney, clarified that documentation showed sewer service connections to the property dating back to 1997 and 1999. He also reminded the commission that City staff recommendations are advisory and that commissioners were free to reach their own conclusions regarding the application. Mr. Rammell emphasized that it was the commission's responsibility to evaluate the evidence and make an independent recommendation regardless of staff's legal opinion. Commissioner Vern Muir asked what had initiated the annexation request. Alan Parkinson explained that City staff had recently reviewed properties receiving municipal services following changes to Idaho annexation statutes. He stated that the City had previously annexed other properties receiving City services under the implied consent provisions, including Taylor Corporation (Artco), and had been reviewing similar situations throughout the community. Mr. Parkinson noted that staff anticipated continued growth in the area and believed it appropriate to address annexation issues proactively. Spencer Rammell added that discussions regarding annexation had occurred several years earlier as part of agreements between the City and Basic American Foods. He explained that a utility easement agreement included a provision preventing annexation until January 1, 2026, and noted that the City had honored that agreement before proceeding with the current annexation proposal. Commissioner Candi McFadden asked whether Basic American Foods would continue using its own wells if annexed into the City and whether those wells affected City water supplies. Alan Parkinson explained that annexation would not require the company to abandon its wells and that existing operations would be grandfathered. He stated that the facility could continue using its current water and wastewater systems. He further explained that both the City and Basic American draw water from the Snake River Aquifer and that the company's wells would not negatively impact the City's water supply. Mr. Parkinson added that if the company ever chose to connect to the City's water system, additional requirements regarding water rights would apply. Chairman McKay Francis reminded commissioners to speak directly into their microphones to ensure an accurate record of the discussion and to improve audio quality for those participating remotely. Commissioner Tammy Geddes, participating online, asked whether there had been any precedent regarding properties that connect to City utilities and are later annexed through implied consent. She also asked whether a specific timeframe existed before annexation would be pursued. Alan Parkinson responded that most annexations historically occurred through requests from property owners rather than implied consent. He explained that recent changes to Idaho statutes had altered annexation requirements and made annexation more restrictive. He noted that under current regulations, properties requesting new water or sewer service would generally be required to annex into the City (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org when eligible to do so, but those requirements were not retroactive and therefore did not directly apply to the Basic American situation. Commissioner Geddes also asked about the recent statutory changes and whether they affected the City's ability to annex properties. Mr. Parkinson explained that the Idaho Legislature had amended annexation laws multiple times in recent years, each time placing additional limitations on the ability of municipalities to annex property without meeting specific requirements. Commissioner Vern Muir asked how annexation would affect Basic American Foods' current use of the property, particularly its wastewater treatment operations. Alan Parkinson responded that annexation would not alter the company's existing operations. He explained that the facility's current wastewater treatment and land application systems would be grandfathered and could continue to operate as they presently do. He added that any future changes affecting those operations would likely come from state or environmental regulatory agencies rather than the City. Chairman McKay Francis shared his perspective as a local developer. He described experiences with properties that could not be annexed because they were not contiguous to City boundaries and explained the costs associated with developing projects both inside and outside the City. Chairman Francis stated that, as Rexburg continues to grow, the City must maintain roads, utilities, and other infrastructure to serve that growth. While acknowledging Basic American Foods' significant contributions to the community, he expressed support for ensuring that properties benefiting from City services and infrastructure participate in supporting those public facilities. He also noted that staff had narrowed the request to only the parcel currently receiving City services, which he viewed positively. Commissioner Jim Lawrence offered his perspective as a professional civil engineer. He explained that heavy truck traffic places substantially more wear and tear on roadways than passenger vehicles and noted that industrial traffic can significantly impact the lifespan and maintenance costs of public streets. He stated that the tax revenue associated with annexation could help offset some of those infrastructure costs. Commissioner Tina Lesh asked questions regarding Basic American Foods' facility expansion and whether additional land had been purchased to support wastewater management operations. Alan Parkinson confirmed that the company had expanded its facility and acquired additional property to support those operations, including land outside of the City. Commissioner Vern Muir asked whether Yellowstone Highway was maintained by the City. Mr. Parkinson explained that Yellowstone Highway is a state highway and that while the City assists with snow removal in certain areas, long-term roadway maintenance remains the responsibility of the Idaho Transportation Department. Commissioner Dan Hanna asked whether annexation would require Basic American Foods to route wastewater through the City's treatment plant. Mr. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Parkinson responded that annexation alone would not require such a change and that the company could continue operating its existing wastewater treatment system. Commissioner Hanna also asked whether there were operational benefits to Basic American Foods if annexed. Mr. Parkinson stated that there were no immediate operational benefits beyond becoming part of the City and receiving municipal services available to City properties. Commissioner Tammy Geddes questioned what additional services Basic American Foods would receive if annexed and discussed the balance between the City's costs and the company's contributions. The discussion focused on infrastructure, public services, and the allocation of costs associated with growth and development. Spencer Rammell, City Attorney, reminded the commission that it had several options available, including recommending approval, recommending denial, or tabling the matter for additional consideration. Chairman McKay Francis responded to Commissioner Geddes' comments by emphasizing the importance of balancing the interests of both the City and Basic American Foods. He stated that the commission had heard valid points from both sides and encouraged commissioners to consider all of the information presented before making a recommendation. Commissioner Jim Lawrence asked whether the annexation proposal had reached the commission because the City and Basic American Foods had been unable to reach a mutual agreement. Spencer Rammell responded that the parties had not reached a consensus and that the City was proceeding under the implied consent provisions of Idaho law rather than through a voluntary annexation request. Commissioner Brian Thackeray asked whether the commission was prepared to make a decision or if further discussion was needed. Chairman McKay Francis rephrased the question for the commission and encouraged additional discussion if commissioners felt more information was necessary. Commissioner Candi McFadden shared her thoughts regarding the proposal and the importance of considering both the community benefits provided by Basic American Foods and the City's responsibility to maintain infrastructure and public services. Commissioner Dan Hanna asked additional questions regarding road impacts and the use of state highways by industrial traffic. Alan Parkinson provided clarification regarding the respective responsibilities of the City and the State for roadway maintenance. Chairman McKay Francis summarized the discussion by noting that the commission had heard compelling arguments from both the City and Basic American Foods. He stated that commissioners had a responsibility to evaluate the application based on the information presented and determine what they believed was in the best interest of the community. Commissioner Tina Lesh concluded the discussion by commenting on the longstanding relationship between the City of Rexburg and Basic American (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Foods and the importance of maintaining a positive working relationship while also planning for the City's future growth and service needs. Commissioner Tammy Geddes, participating online, asked whether the commission had an option other than recommending approval or denial of the annexation. She explained that Basic American Foods had repeatedly expressed concerns regarding a lack of clarity about future City services and wondered whether additional discussions between the parties could be encouraged before a final decision was made. Spencer Rammell, City Attorney, explained that the commission's options included recommending approval, recommending denial, or recommending that the matter be tabled for further consideration. He stated that tabling the item would allow additional time for discussion, although a conditional approval or denial was not an available option under the annexation process being considered. Commissioner Geddes further questioned what specific information or clarification regarding City services could be provided to address Basic American Foods' concerns and whether additional discussions would help resolve those questions. Chairman McKay Francis responded that the commission had heard testimony from both the City and Basic American Foods regarding the services currently provided, future expectations, and concerns associated with annexation. He stated that it was the commission's responsibility to weigh the information presented by both sides and determine what recommendation was most appropriate. Commissioner Jim Lawrence revisited an earlier question and asked whether the annexation request had reached the commission because the City and Basic American Foods had been unable to reach a mutually acceptable agreement. Spencer Rammell responded that discussions had occurred between the parties, but no consensus had been reached. He explained that Basic American Foods did not wish to be annexed, while the City believed annexation was appropriate under the implied consent provisions of Idaho law. Mr. Rammell stated that, because the City was proceeding under an implied consent theory, the commission's review was limited to that statutory framework rather than a negotiated annexation agreement. He noted that additional service planning requirements discussed by Basic American Foods would typically apply under different annexation procedures and were not required for an annexation proceeding based on implied consent. He concluded by stating that the commission's task was to determine whether it supported moving forward under the implied consent process authorized by state law. Commissioner Brian Thackeray asked whether the commission was ready to entertain a motion or whether additional discussion was needed. Chairman McKay Francis rephrased the question and invited any remaining discussion before a motion was made. (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org Commissioner Candi McFadden asked additional questions regarding the impacts of truck traffic associated with Basic American Foods and how much of that traffic utilized City streets. Alan Parkinson explained that employee traffic, deliveries, agricultural traffic, and shipping activities originate from multiple directions and use a variety of local roads. He noted that City streets are used by the facility, although not all traffic travels the same routes. Commissioner McFadden also asked about roadway ownership and maintenance responsibilities. Mr. Parkinson clarified that portions of 2nd East are maintained by the City of Rexburg, while other sections are part of State Highway 33 and under state jurisdiction. Commissioner Dan Hanna commented that recent road construction had highlighted the amount of heavy truck traffic in the area and stated that industrial traffic has a noticeable impact on local roadways. Chairman McKay Francis summarized what he viewed as the two primary issues before the commission. He stated that the City was relying on implied consent as the basis for annexation, while Basic American Foods was asserting that portions of the property qualified for the agricultural exemption under Idaho law. Chairman Francis expressed his belief that delaying the matter would be unlikely to produce new information, as both parties had clearly presented their positions. He stated that the commission's responsibility was to evaluate the competing arguments and determine which position carried greater weight. Commissioner Tina Lesh stated that Basic American Foods has been an important part of the community and has provided significant economic benefits to Rexburg. However, she also noted that the company has benefited from City infrastructure and services over many years. Commissioner Lesh expressed the view that there is a shared responsibility between businesses and the community in supporting infrastructure and public services. Commissioner Dan Hanna agreed that Basic American Foods has been a valuable community partner while also recognizing the City's role in providing infrastructure and services. He stated that both sides had presented valid arguments for the commission's consideration. Commissioner Brian Thackeray stated that he was prepared to make a motion and presented a motion to recommend that the City Council approve the annexation of Basic American Foods, located at approximately 80 East 7th North. Before proceeding to a vote, Chairman McKay Francis specifically asked Commissioner Tammy Geddes, who was participating online, whether she had any additional comments or questions. Commissioner Tammy Geddes responded that she had no further comments and appreciated the information and discussion that had taken place regarding the application. Commissioner Brian Thackeray then stated that the recommendation was based on the theory of implied consent through the property's use of City services and its consistency with the growth of the City. Commissioner Jim Lawrence seconded the motion. Chairman McKay Francis called for any additional discussion on the motion. Hearing none, a vote was (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org taken. The motion passed with one dissenting vote, and the commission recommended approval of the Basic American Foods Annexation to the City Council. MOTION: Motion to recommend City Council approve the annexation of Basic American Foods, located at approximately 80 East 7th North, based on the theory of implied consent through the use of City services and its consistency with the growth of the City. Action: Approve, Moved by Brian Thackery, Seconded by Jim Lawrence. Commissioner Discussion on the Motion: VOTE: Motion carried. (Summary: Yes= , No= , Abstain = ). Yes: Jim Lawrence, Bruce Casper, McKay Francis, Brian Thackeray, Dan Hanna, Tammy Geddes(online), Rick Robinson, Tina Lesh, & Candi McFadden No: Vern Muir Abstain: Heads Up: September 3rd: None Following completion of the public hearing items, Chairman McKay Francis asked whether there was any additional business to come before the commission. Alan Parkinson informed the commission that no applications were currently scheduled for the September 3, 2026 meeting, although several subdivision plats were nearing completion. He stated that staff would like to resume commissioner training sessions, particularly with several new members recently appointed to the commission. Mr. Parkinson suggested using an upcoming meeting as an opportunity to provide training on commission procedures, responsibilities, and decision-making processes. Mr. Parkinson explained that staff planned to utilize a series of training videos followed by discussion to help commissioners better understand their roles and responsibilities. He stated that the training would proceed if no major agenda items were scheduled and noted that a simple application, if received, could be addressed before the training session. Commissioners expressed support for the proposed training. Mr. Parkinson thanked the commission members for their service and participation and stated that staff appreciated their efforts. Before adjournment, Alan Parkinson reminded attendees that the Basic American Foods annexation request would proceed to the City Council for a public hearing and noted that interested parties would have an opportunity to provide comments during that process. Chairman McKay Francis thanked everyone for their participation and adjourned the meeting. 6. Adjourned at 8:15 PM.