HomeMy WebLinkAboutWest Highway Plan
URBAN RENEWAL PLAN FOR THE
WEST HIGHWAY URBAN RENEWAL PROJECT
THE URBAN RENEWAL AGENCY OF THE CITY OF REXBURG, ALSO KNOWN AS THE REXBURG REDEVELOPMENT AGENCY
CITY OF REXBURG, IDAHO
Ordinance No. ________
Adopted _________
Effective _________
TABLE OF CONTENTS
Page
100 INTRODUCTION 1
101 General Procedures of the Agency 4
102 Provisions Necessary to Meet State and Local Requirements: Conformance with Idaho Code Sections 50-2008 and 50-2906 5
103 History and Current Conditions of the Area 6
104 Purpose of Activities 7
105 Open Land Criteria 9
200 DESCRIPTION OF PROJECT AREA 10
300 PROPOSED REDEVELOPMENT ACTIONS 10
301 General 10
302 Urban Renewal Plan Objectives 13
303 Participation Opportunities and Agreement 14
303.1 Participation Agreements 14
304 Cooperation with Public Bodies 16
305 Property Acquisition 17
305.1 Real Property 17
305.2 Personal Property 18
306 Property Management 19
307 Relocation of Persons (Including Individuals and Families), Business Concerns, and Others Displaced by the Project 19
308 Demolition, Clearance and Site Preparation 19
309 Property Disposition and Development 20
309.1 Disposition by the Agency 20
309.2 Disposition and Development Agreements 20
309.3 Development by the Agency 21
310 Development Plans 22
312 Participation with Others 22
313 Conforming Owners 23
400 USES PERMITTED IN THE PROJECT AREA 23
401 Designated Land Uses 23
402 [Reserved] 23
403 Public Rights-of-Way 23
404 Interim Uses 24
405 Development in the Project Area Subject to the Plan 24
406 Construction Shall Comply with Applicable Federal, State, and Local Laws and Ordinances and Agency Development Standards 24
407 [Reserved] 25
408 Nonconforming Uses 25
409 Design Guidelines for Development under a Disposition and Development Agreement or Owner Participation Agreement 25
500 METHODS OF FINANCING THE PROJECT 26
501 General Description of the Proposed Financing Method 26
502 Revenue Allocation Financing Provisions 26
502.1 Economic Feasibility Study 28
502.2 Assumptions and Conditions/Economic Feasibility Statement 28
502.3 Ten Percent Limitation 29
502.4 Financial Limitation 30
502.5 [Reserved] 32
502.6 Participation with Local Improvement Districts and/or Business Improvement Districts 32
502.7 Issuance of Debt and Debt Limitation 32
502.8 Impact on Other Taxing Districts and Levy Rate 32
503 Phasing and Other Fund Sources 35
504 Lease Revenue and Bonds 35
505 Membership Dues and Support of Community Economic Development 35
600 ACTIONS BY THE CITY AND COUNTY 36
601 Maintenance of Public Improvements 37
700 ENFORCEMENT 37
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW 37
900 PROCEDURE FOR AMENDMENT OR MODIFICATION 39
1000 SEVERABILITY 39
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS 39
1200 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES 40
100 INTRODUCTION 1
101 General Procedures of the Agency 4
102 Provisions Necessary to Meet State and Local Requirements: Conformance with Idaho Code Sections 50-2008 and 50-2906 5
103 History and Current Conditions of the Area 6
104 Purpose of Activities 7
105 Open Land Criteria 9
200 DESCRIPTION OF PROJECT AREA 10
300 PROPOSED REDEVELOPMENT ACTIONS 10
301 General 10
302 Urban Renewal Plan Objectives 13
303 Participation Opportunities and Agreement 14
303.1 Participation Agreements 14
304 Cooperation with Public Bodies 16
305 Property Acquisition 17
305.1 Real Property 17
305.2 Personal Property 18
306 Property Management 19
307 Relocation of Persons (Including Individuals and Families), Business Concerns, and Others Displaced by the Project 19
308 Demolition, Clearance and Site Preparation 19
309 Property Disposition and Development 20
309.1 Disposition by the Agency 20
309.2 Disposition and Development Agreements 20
309.3 Development by the Agency 21
310 Development Plans 22
312 Participation with Others 22
313 Conforming Owners 23
400 USES PERMITTED IN THE PROJECT AREA 23
401 Designated Land Uses 23
402 [Reserved] 23
403 Public Rights-of-Way 23
404 Interim Uses 24
405 Development in the Project Area Subject to the Plan 24
406 Construction Shall Comply with Applicable Federal, State, and Local Laws and Ordinances and Agency Development Standards 24
407 [Reserved] 25
408 Nonconforming Uses 25
409 Design Guidelines for Development under a Disposition and Development Agreement or Owner Participation Agreement 25
500 METHODS OF FINANCING THE PROJECT 26
501 General Description of the Proposed Financing Method 26
502 Revenue Allocation Financing Provisions 26
502.1 Economic Feasibility Study 28
502.2 Assumptions and Conditions/Economic Feasibility Statement 28
502.3 Ten Percent Limitation 29
502.4 Financial Limitation 30
502.5 [Reserved] 32
502.6 Participation with Local Improvement Districts and/or Business Improvement Districts 32
502.7 Issuance of Debt and Debt Limitation 32
502.8 Impact on Other Taxing Districts and Levy Rate 32
503 Phasing and Other Fund Sources 35
504 Lease Revenue and Bonds 35
505 Membership Dues and Support of Community Economic Development 35
600 ACTIONS BY THE CITY AND COUNTY 36
601 Maintenance of Public Improvements 37
700 ENFORCEMENT 37
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW 37
900 PROCEDURE FOR AMENDMENT OR MODIFICATION 39
1000 SEVERABILITY 39
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS 39
1200 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES 40
Attachments
Attachment 1 Boundary Map of Urban Renewal Project Area and Revenue Allocation Area
Attachment 2 Legal Description of Urban Renewal Project Area and Revenue Allocation Area
Attachment 3 Private Properties Which May be Acquired by the Agency
Attachment 4 Map Depicting Expected Land Use and Current Zoning Map of the Project Area
Attachment 5 Economic Feasibility Study
Attachment 6 Agricultural Operation Consents (Without Attachments B and C)
Attachment 7 Madison County Board of County Commissioners Resolution No. 531 (eligibility)
Attachment 8 Rexburg City Council Resolution No. 2025-12 (eligibility)
Attachment 9 Madison County Board of County Commissioners Ordinance No. _________ (Intergovernmental Agreement and Transfer of Powers Ordinance)
Attachment 10 Rexburg City Council Resolution No. _______(Intergovernmental Agreement – Madison County)
100 INTRODUCTION
This is the Urban Renewal Plan (the “Plan”) for the West Highway Urban Renewal Project (the “Project”) in the City of Rexburg (the “City”), state of Idaho. Attachments 1 through 10
attached hereto (collectively, the “Plan Attachments”) are incorporated herein and shall be considered a part of this Plan.
The term “Project” is used herein to describe the overall activities defined in this Plan and conforms to the statutory definition of an urban renewal project. Reference is specifically
made to Idaho Code §§ 50-2018(10) and 50-2903(13) for the various activities contemplated by the term “Project.” Such activities include both private and public development of property
within the urban renewal area. The West Highway Project Area is also referred to as the “Project Area” or the “Revenue Allocation Area.”
This Plan was prepared by the Board of Commissioners (the “Agency Board”) of the Urban Renewal Agency of the City of Rexburg, also known as the Rexburg Redevelopment Agency (the “Agency”),
its consultants, and staff, and reviewed and recommended by the Agency pursuant to the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the “Law”), the
Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the “Act”), and all applicable local laws and ordinances.
Idaho Code § 50-2905 identifies what information the Plan must include with specificity as follows:
(1) A statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the
municipality.
(2) A statement listing the kind, number, and location of all proposed public works or improvements within the revenue allocation area.
(3) An economic feasibility study.
(4) A detailed list of estimated project costs.
(5) A fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property on the
revenue allocation area.
(6) A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred;
(7) A termination date for the plan and the revenue allocation area as provided for in section 50-2903(20), Idaho Code. In determining the termination date, the plan shall recognize
that the agency shall receive allocation of revenues in the calendar
year following the last year of the revenue allocation provision described in the urban renewal plan.
(8) A description of the disposition or retention of any assets of the agency upon the termination date. Provided however, nothing herein shall prevent the agency from retaining assets
or revenues generated from such assets as long as the agency shall have resources other than revenue allocation funds to operate and manage such assets.
This Plan includes the above information with specificity.
The Project Area extends beyond the municipal boundary of the City to include parcels in unincorporated Madison County. Pursuant to Idaho Code Sections 50-2018(18) and 50-2906(1), the
Madison County Board of County Commissioners (the “BOCC”) has deemed the Project Area eligible for an urban renewal project (Attachment 7). Further, for purposes of implementing this
Plan, the BOCC entered into an intergovernmental agreement with the City and adopted a transfer of powers ordinance (Attachment 9 and 10).
The proposed development of the Project Area as described in this Plan conforms to The City of Rexburg 2023 Comprehensive Plan, Plan Rexburg: How We Live and Grow (the “Comprehensive
Plan”), as may be amended, and adopted by the City Council (the “City Council”). The Agency intends to rely heavily on any applicable City design standards which may cover all or part
of the Project Area, including development within the area of city impact. For applicable portions of the Project Area, the City’s Comprehensive Plan and zoning ordinances will guide
development as addressed in the intergovernmental agreement between the City and County. For the unincorporated area of the Project Area, redevelopment conforms to the Madison County
“2024” Comprehensive Plan, as may be amended (the “County’s Comprehensive Plan”).
This Plan is subject to the Plan modification limitations and reporting requirements set forth in Idaho Code § 50-2903A. Subject to limited exceptions as set forth in Idaho Code § 50-2903A,
if this Plan is modified by City Council ordinance, then the base value for the year immediately following the year in which modification occurs shall include the then current year’s
equalized assessed value of the taxable property in the revenue allocation area, effectively eliminating the Agency’s revenue stream. Should the Agency have any outstanding financial
obligations, the City shall not adopt an ordinance modifying this Plan unless modification is deemed to have not occurred as provided in Idaho Code § 50-2903A(1)(a)(i)-(iv) and written
consent has been obtained by any creditors, including but not limited to lending institutions and developers who have entered into reimbursement agreements with the Agency.
A modification shall not be deemed to occur when “[t]here is a plan amendment to make technical or ministerial changes to a plan that does not involve an increase in the use of revenues
allocated to the agency.” Idaho Code § 50-2903A(1)(a)(i). Annual adjustments as more specifically set forth in the Agency’s annual budget will be required to account for more/less estimated
revenue and project timing, including the specific locate and
prioritization of projects. Any adjustments for these stated purposes are technical and ministerial and are not modifications under Idaho Code § 50-2903A.
This Plan provides the Agency with powers, duties, and obligations to implement and further the program generally formulated in this Plan for the development, redevelopment, rehabilitation,
and revitalization of the area within the boundaries of the Project Area. The Agency retains all powers allowed by the Law and Act. This Plan presents a process and a basic framework
within which plan implementation, including contracts, agreements and ancillary documents will be presented and by which tools are provided to the Agency to fashion, develop, and proceed
with plan implementation. The Plan has balanced the need for flexibility over the twenty (20)-year timeframe of the Plan to implement the improvements identified in Attachment 5, with
the need for specificity as required by Idaho Code § 50-2905. The Plan narrative addresses the required elements of a plan set forth in Idaho Code § 50-2905(1), (2), (5), (6), (7) and
(8). Attachment 5, together with the Plan narrative, meets the specificity requirement for the required plan elements set forth in Idaho Code § 50-2905(2)-(6), recognizing that actual
Agency expenditures are prioritized each fiscal year during the required annual budgeting process.
Allowed projects are those activities which comply with the Law and the Act and meet the overall objectives of this Plan. The public-private relationship is crucial in the successful
development and redevelopment of the Project Area. Typically, the public will fund enhanced public improvements like utilities, streets, and sidewalks which, in turn, create an attractive
setting for adjacent private investment for a mix of uses, including commercial and residential facilities.
The purpose of the Law and Act will be attained through the implementation of the Plan. The master goals of this Plan are:
a. The planning, design, construction and/or reconstruction of public improvements, including but not limited to new collector and arterial streets and pedestrian pathways; improvements
to existing roadways and intersections, including road widening, road and intersection realignment, and the installation of traffic signals; installation of curbs, gutters and streetscapes,
which for purposes of this Plan, the term “streetscapes” includes sidewalks, lighting, landscaping, benches, bike racks, wayfinding, public art and similar amenities between the curb
and right of way line; installation and/or improvements to fiber optic facilities; improvements to public utilities including water and sewer system improvements, lift statements, pressurized
service lines, and fire protection systems; removal, burying, or relocation of overhead utilities; extension of electrical distribution lines and transformers; improvement, relocation
and/or piping over of irrigation and drainage ditches and laterals; and improvement of storm drainage facilities;
b. The acquisition of right-of-way, planning, design and construction of proposed improvements to reconfigure the intersection at 12th Street and 33rd Street; improvements to the 12th
West and 7th South intersection; widening of 12th West and Bridge Street, as well as improvements to other existing roadways and intersections within the Project Area;
c. The re-planning, redesign, and development of undeveloped or underdeveloped areas which are stagnant or improperly utilized because of limited traffic access, underserved utilities,
and other site conditions, including the acquisition of right-of-way as may be necessary;
d. The strengthening of the economic base of the Project Area and the community by the installation of needed public improvements to stimulate new private development providing employment
and economic growth;
e. The provision of adequate land for open space, street rights-of-way and pedestrian rights-of-way, including construction or improvements to multi-modal pathways and trails; and construction
and/or improvements to parks, plazas, and other public gathering spaces;
f. The reconstruction and improvement of street corridors to allow traffic flows to move through the Project Area along with the accompanying utility connections, through the Project
Area;
g. The provision of public service utilities, which may be sited outside of the Project Area, but are necessary to the development of the Project Area, such as water system improvements,
sewer system improvements and improvements to storm drainage facilities;
h. In conjunction with the City, the establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements
which provide unity and integrity to the entire Project Area, including commitment of funds for planning studies, achieving high standards of development, and leveraging such development
to achieve public objectives and efficient use of scarce resources;
i. The strengthening of the tax base by encouraging private development, thus increasing the assessed valuation of properties within the Project Area as a whole and benefiting the various
taxing districts in which the urban renewal area is located;
j. The acquisition of real property to support development and/or redevelopment initiatives consistent with the Law and Act, including parcel assemblage;
k. To engage in public-private partnerships to advance desired public projects and improvements, and to provide matching funds to leverage access to grants;
l. The funding of necessary public infrastructure to accommodate both public and private development.
101 General Procedures of the Agency
The Agency is a public body, corporate and politic, as defined and described under the Law and the Act. The Agency is also governed by its bylaws, as authorized by the Law, and adopted
by the Agency. Under the Law, the Agency is governed by the Idaho open meeting law; the Public Records Act; the Ethics in Government Act of 2015, Chapters 1, 2 and 4 of Title 74, Idaho
Code; reporting requirements pursuant to Idaho Code §§ 67-450B, 67-1076, 50-2903A and 50-2913; and the competitive bidding requirements under Chapter 28, Title 67, Idaho Code, as well
as other procurement or other public improvement delivery methods.
Subject to limited exceptions, the Agency shall conduct all meetings in open session and allow meaningful public input as mandated by the issue considered or by any statutory or regulatory
provision.
The Agency may adopt separate policy statements. Any modification to any policy statement is a technical or ministerial adjustment and is not a modification to this Plan under Idaho
Code § 50-2903A.
102 Provisions Necessary to Meet State and Local Requirements: Conformance with Idaho Code Sections 50-2008 and 50-2906
Idaho law requires that the City Council, by resolution, must determine a geographic area be a deteriorated area or a deteriorating area, or a combination thereof, and designate such
area as appropriate for an urban renewal project prior to preparation of an urban renewal plan. A consultant, Perspective Planning & Consulting, LLC, was retained to study an approximately
840-acre project area (the “Study Area”) and prepare an eligibility report. The Study Area included parcels located within the City limits as well as parcels located wholly within
unincorporated Madison County. The West Highway District Eligibility Report (the “Report”) was submitted to the Agency. The Agency accepted the Report by Agency Resolution No. 2025-03
on October 15, 2025, and thereafter submitted the Report to the Madison County Board of County Commissioners and the City Council for their consideration.
As properties within the Study Area included parcels that were within the City limits as well as outside the boundaries of the City and within unincorporated Madison County, and in accordance
with Idaho Code § 50-2018(18), the Madison County Board of County Commissioners considered adoption of a resolution finding the Study Area to be a deteriorated area and/or deteriorating
area and finding a need for the urban renewal plan.
On ________, 2025, representatives of the City and the Agency presented the Report to the Madison County Board of County Commissioners requesting the Commissioners to consider adopting
the findings concerning the Study Area. On October 27, 2025, the Madison County Board of County Commissioners, pursuant to Resolution No. 531 adopted the Agency’s findings concerning
the proposed Study Area A copy of Resolution No. 531 is attached hereto as Attachment 7
Thereafter, the City Council deemed the Study Area to be a deteriorating area and/or a deteriorated area, and therefore, eligible for an urban renewal project by adoption of Resolution
No. 2025-12 on November 18, 2025. With the adoption of Resolution No. 2025-12, the City
Council declared the Study Area described in the Report to be a deteriorated area and/or a deteriorating area as defined by Chapters 20 and 29, Title 50, Idaho Code, as amended, that
such area is appropriate for an urban renewal project, and directed the Agency to commence preparation of an urban renewal plan. A copy of Resolution No. 2025-12 is attached hereto
as Attachment 8.
Under the Law and Act, Idaho Code Sections 50-2903(8)(f) and 50-2018(8) and (9), the
definition of a deteriorating area shall not apply to any agricultural operation as defined in section 22-4502(2), Idaho Code, absent the consent of the owner of the agricultural operation
except for an agricultural operation that has not been used for three (3) consecutive years. The necessary agricultural operation consents (attached hereto as Attachment 6) have been
obtained.
The Plan was prepared and submitted to the Agency for its review and approval. The Agency approved the Plan by the adoption of Agency Resolution No. __________ on _______________, and
submitted the Plan to the BOCC, and the City Council with its recommendation for adoption.
In accordance with the Law, this Plan was submitted to the Planning and Zoning Commission of the City. After consideration of the Plan, the Commission reported to the City Council that
this Plan is in conformity with the City’s Comprehensive Plan.
[In accordance with the Law, this Plan was submitted to the Planning and Zoning Commission of the County. After consideration of the Plan, the Commission reported to the City Council
that this Plan is in conformity with the County’s Comprehensive Plan.]
In accordance with the Law and the Act, the City Council and BOCC entered into an intergovernmental agreement concerning the administration and implementation of the Plan and the BOCC
adopted a transfer of powers ordinance on ____________________, _________, by Ordinance No. ______ (Attachment 9).
Pursuant to the Law and Act, the City Council having published due notice thereof, a public hearing was held on this Plan. Notice of the hearing was duly published in the Rexburg Standard
Journal, a newspaper having general circulation in the City. The City Council adopted this Plan on ___________ __, ________, by Ordinance No. _____.
103 History and Current Conditions of the Area
This Project Area includes an estimated 840 acres with a mix of land uses. The Project Area is generally bounded by 1000 South on the southern end, US Highway 20 on the east, 3000 West
on the western side, and 2000 North on the northern boundary. The Project Area generally includes necessary properties and roadway to make necessary right-of-way improvements, including
alignment and widening, as well as intersection improvements, and to support below ground infrastructure system improvements and enhancements. The Project Area includes properties
located within the City limits as well as parcels within the City’s area of impact, in unincorporated Madison County, which parcels are necessary to address roadway, sewer and water
improvements, and to incent commercial and residential development consistent with the Comprehensive Plan.
The Project Area includes mixed zoning for mixed use, commercial and residential uses. A significant impediment to development is the extent of infrastructure necessary to develop and/or
redevelop the area to support contemplated and/or future land uses. Development potential within the Project Area is currently restricted due to defective or inadequate connectivity,
vehicular and pedestrian, in the Project Area, as well as, lack of access to the municipal water system, which creates fire flow issues. Extension of a water distribution system throughout
the Project Area is necessary to support development. Likewise, the sewer system will also need to be extended throughout the Project Area. Power system upgrades are also necessary
and undergrounding will support desired development. There are a number of larger parcels currently transitioning from traditional agricultural use that will likely need to be subdivided
into developable lots. The Project Area lacks the public infrastructure necessary to properly serve economic development contemplated by the City’s Comprehensive Plan.
The Plan proposes installation and improvements to public infrastructure and other publicly owned assets throughout the Project Area, as more specifically set forth in Attachment 5,
creating the opportunity for commercial and residential development.
The Project Area currently includes an area in transition within the City and County, moving from predominantly open lands and agricultural uses to an area of increased demand for mixed-use
growth as set forth in the Comprehensive Plan. As a result, the Project Area is underdeveloped and/or vacant and is not being used to its highest and best use due to the deteriorating
conditions found in the Project Area, specifically: predominance of defective or inadequate street layout; outmoded street patterns; need for correlation of area with other areas by
streets and modern traffic requirements; faulty lot layout in relation to size, adequacy, accessibility or usefulness; obsolete platting; insanitary or unsafe conditions; diversity
of ownership; and the existence of conditions which endanger life or property by fire and other causes. The foregoing conditions have arrested or impaired sound and orderly growth
in the Project Area and represents an area of economic underdevelopment.
The preparation and approval of an urban renewal plan, including a revenue allocation financing provision, gives the City additional resources to solve the public infrastructure and
development impediment issues in this area. Revenue allocation financing should help to improve the situation. In effect, property taxes generated by new developments within the
Project Area may be used by the Agency to finance a variety of needed public improvements and facilities. Finally, some of the new developments may also generate new jobs in the community
that would, in turn, benefit area residents.
It is unlikely individual developers will take on the prohibitive costs of constructing the necessary infrastructure in the Project Area without the ability of revenue allocation proceeds
to help offset at least some of these costs. But for urban renewal and revenue allocation financing the proposed residential and commercial developments would not occur.
104 Purpose of Activities
Attachment 5 includes the public improvements list identifying with specificity the proposed public improvements and projects contemplated in the Project Area. The description of activities,
public improvements, and the estimated costs of those items are intended to create an outside limit of the Agency’s activity. Due to the inherent difficulty in projecting future levy
rates, future taxable value, and the future costs of construction, the Agency reserves the right to:
change funding amounts from one Project to another.
to re-prioritize the Projects described in this Plan and the Plan Attachments, including eligible projects shown on the projects list may be substituted for priority projects.
Retain flexibility in funding the various activities in order to best meet the Plan and the needs of the Project Area.
Retain flexibility in determining whether to use the Agency’s funds or funds generated by other sources.
Alter the location of proposed improvements set forth in Attachment 5 to support development when it occurs. The information included in Attachment 5 presents a proposed, realistic development
scenario, projected timeline, and location, recognizing it is difficult to project with any certainty where the improvements will be sited until the future project submits plans to
the City for design review and permitting.
The Agency intends to discuss and negotiate with any owner or developer of the parcels within the Project Area seeking Agency assistance during the duration of the Plan and Project Area.
During such negotiation, the Agency will determine the eligibility of the activities sought for Agency funding, the amount the Agency may fund by way of percentage or other criteria
including the need for such assistance. The Agency will also take into account the amount of revenue allocation proceeds estimated to be generated from the developer’s activities. The
Agency also reserves the right to establish by way of policy, its funding percentage or participation, which would apply to all developers and owners.
Throughout this Plan, there are references to Agency activities, Agency funding, and the development, and contribution of public improvements. Such references do not necessarily constitute
a full, final, and formal commitment by the Agency but, rather, grant to the Agency
the discretion to participate as stated subject to achieving the objectives of this Plan and provided such activity is deemed eligible under the Law and the Act. The activities listed
in Attachment 5 will be determined or prioritized as the overall Project Area develops and through the annual budget setting process.
The activities listed in Attachment 5 are also prioritized by way of importance to the Agency by the amounts funded, and by year of funding, with earlier years reflecting the more important
activities, achievement of higher objectives, long term goals, and commitments. As required by the Law and Act, the Agency will adopt more specific budgets annually. The projected timing
of funding is primarily a function of the availability of market conditions and financial resources but is also strategic, considering the timing of private development partnership
opportunities and the ability of certain strategic activities to stimulate development at a given points in time within the planned 20-year period of the urban renewal district and
revenue allocation area.
The Study (Attachment 5) has described a list of prioritized public improvements and other related activities with an estimated cost in 2026 dollars of approximately $27,345,000. The
Agency has also identified a list of additional public projects, with an estimate cost of $24,250,000. These estimated amounts do not take into account inflationary factors, such as
increasing construction costs, which would increase that figure depending on when the owner, developer and/or Agency is able to develop, construct or initiate those activities. The
Study has concluded the capacity of revenue allocation funds through the term of the Plan based on the assumed development projects and assessed value increases will likely generate
an estimated range of $43.5-68.5 million in revenue allocation proceeds. The Agency reserves the discretion and flexibility to use revenue allocation proceeds in excess of the amounts
predicted in the event higher increases in assessed values occur during the term of the Plan for the improvements and activities identified. Additionally, the Agency reserves the discretion
and flexibility to use other sources of funds unrelated to revenue allocation to assist in the funding of the improvements and activities identified.
105 Open Land Criteria
This Plan contemplates Agency acquisition of property within the Project Area, in part, to support parcel assemblage for mixed-use, commercial, office, retail, multi-family and single
family residential, hospitality projects, right-of-way acquisition and economic development/demonstration projects. The Project Area is not predominantly open; however, the Project
Area includes parcels that are vacant and/or transitioning agricultural operations that could meet the undefined “open land” intent requiring the area meet the conditions set forth
in Idaho Code § 50-2008(d). These conditions include defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns,
deterioration of site, and faulty lot layout, all of which are included in one form or another in the definitions of deteriorated area or deteriorating area set forth in Idaho Code
§§ 50-2018(8), (9) and 50-2903(8). The issues listed only in Idaho Code § 50-2008(d)(4)(2) (the open land section) include economic disuse, unsuitable topography, and “the need for
the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development
of the area.”
Open land areas qualify for Agency acquisition and development for residential uses if the City Council determines there is a shortage of housing of sound standards and design which
is decent, safe and sanitary in the City, that the need for housing will be increased as a result of the clearance of deteriorated areas, that the conditions of blight in the area and
the shortage of decent, safe and sanitary housing contributes to an increase in the spread of disease and crime and constitutes a menace to the public health, safety, morals, or welfare,
and that the acquisition of the area for residential uses is an integral part of and essential to the program of the City. Due to the City’s expected growth, as described in Attachment
5, the need for housing is significant and integral to a successful mixed-use Project Area. Further, the existing zoning designations in the Project Area allow for mixed-density residential,
and the future land use map shows areas of projected increased residential density.
Open land areas qualify for Agency acquisition and development for primarily nonresidential uses if acquisition is necessary and appropriate to facilitate the proper growth and development
of the community in accordance with sound planning standards and local community objectives if any of the deteriorating area conditions set forth in Idaho Code §§ 50-2018(8), (9) and
50-2903(8) apply. But such areas also qualify if any of the issues listed only in Idaho Code § 50-2008(d)(4)(2) apply. The parcel size, lack of direct access to right-of-way, the needed
improvements to the water and sewer facilities to support future development; and fragmented streetscapes, including curb, gutter, sidewalks, and storm drainage facilities, are all
conditions with delay development in the Project Area. Further, the faulty lot layout in relation to size, adequacy, accessibility or usefulness/obsolete platting; diversity of ownership;
and economic disuse are all conditions which delay or impair development of the open land areas and satisfy the open land conditions as more fully supported by the Report, prepared
by Perspective Planning & Consulting, LLC.
This Plan anticipates Agency acquisition of property within the Project Area; however, the acquisition of specific parcels is unknown at this time. Should the Agency determine the need
to acquire property as further set forth in Attachment 3, then the open land areas in the Project Area qualify for Agency acquisition and development.
200 DESCRIPTION OF PROJECT AREA
The boundaries of the Project Area and the Revenue Allocation Area are shown on the Boundary Map of Urban Renewal Project Area and Revenue Allocation Area, attached hereto as Attachment
1 and incorporated herein by reference, and are described in the Legal Description of Urban Renewal Project Area and Revenue Allocation Area, attached hereto as Attachment 2 and incorporated
herein by reference. For purposes of boundary descriptions and use of proceeds for payment of improvements, the boundary shall be deemed to extend to the outer boundary of rights-of-way
or other natural boundaries unless otherwise stated.
300 PROPOSED REDEVELOPMENT ACTIONS
301 General
The Agency proposes to eliminate and prevent the spread of deteriorating conditions and deterioration in the Project Area by employing a strategy to improve and develop public and private
lands, and to grow the economy in the Project Area. Implementation of the strategy includes, but is not limited to the following actions:
a. The engineering, design, installation, construction, and/or reconstruction of storm water management infrastructure to support compliance with federal, state and local regulations
for storm water discharge and to support private development;
b. The provision for participation by property owners and developers within the Project Area to achieve the objectives of this Plan;
c. The engineering, design, installation, construction, and/or reconstruction of streets, pathways, and streetscapes, including but not limited to the _________________________and related
pedestrian facilities, curb and gutter, intersection and rail crossing improvements, and traffic signals;
d. The engineering, design, installation, construction, and/or reconstruction of utilities (within and outside of the Project Area) including but not limited to improvements and upgrades
to the water distribution system, water capacity improvements, water storage upgrades, sewer system improvements and upgrades, lift station, and improvements, and upgrades to power,
gas, fiber optics, communications and other such facilities. Such improvements include but are not limited to over-sizing the sewer line in _________________sewer line extension. Construction
of utilities outside of the Project Area are directly related to the growth and development within the Project Area, but cannot be sited within the Project Area;
e. Removal, burying, or relocation of overhead utilities; removal or relocation of underground utilities; extension of electrical distribution lines and transformers; improvement of
irrigation and drainage ditches and laterals; undergrounding or piping of laterals; addition of fiber optic lines or other communication systems; public parking facilities, and other
public improvements, including but not limited to, fire protection systems, roadways, curbs, gutters, and streetscapes, which for purposes of this Plan, the term streetscapes includes
sidewalks, lighting, landscaping, benches, signage, bike racks, public art, and similar amenities between the curb and right-of-way line; and other public improvements, including public
open spaces that may be deemed appropriate by the Board;
f. The acquisition of real property for public right-of-way improvements, public parks, pedestrian facilities, pathways and trails, recreational access points and to encourage development
opportunities consistent with the Plan, including but not
limited to future disposition to qualified developers. Improvements to public open space and pathways include but are not limited to the pedestrian bridges and installation and/or improvements
to the public pathways and trails;
g. The acquisition of real property for utility undergrounding and streetscape improvements to create development opportunities consistent with the Plan, including but not limited to
future disposition to qualified developers and for qualified developments, including economic development;
h. The disposition of real property through a competitive process in accordance with this Plan, Idaho law, including Idaho Code § 50-2011, and any disposition policies adopted by the
Agency;
i. The demolition or removal of certain buildings and/or improvements for public rights-of-way, pedestrian facilities, utility undergrounding and streetscape improvements to encourage
and enhance transportation and mobility options, decrease underutilized parcels, to eliminate unhealthful, unsanitary, or unsafe conditions, eliminate obsolete or other uses detrimental
to the public welfare or otherwise to remove or to prevent the spread of deteriorating or deteriorated conditions. Such improvements may include the acquisition of and/or improvements
to the County fairgrounds;
j. The management of any property acquired by and under the ownership and control of the Agency;
k. The development or redevelopment of land by private enterprise or public agencies for uses in accordance with this Plan;
l. The construction and financial support of infrastructure necessary for the provision of improved transit and alternative transportation;
m. The engineering, design, installation, construction, and/or reconstruction of below ground infrastructure to support the construction of certain municipal buildings pursuant to Idaho
Code § 50-2905A, including the purchase of public safety equipment, including, but not limited to equipment for the Madison Fire Department, Rexburg Police Department, Madison County
Ambulance and the Madison County Sheriff Department, for use in, but not limited to, the Project Area.
n The provision of financial and other assistance to encourage and attract business enterprise including but not limited to start-ups and microbusinesses, mid-sized companies and large-scale
corporations and industries;
o. The provision of financial and other assistance to encourage greater density;
p. The rehabilitation of structures and improvements by present owners, their successors, and the Agency;
q. The preparation and assembly of adequate sites for the development and construction of facilities for commercial, office, retail, residential, and governmental use;
r. In collaboration with property owners and other stakeholders, working with the City to amend zoning regulations (if necessary) and standards and guidelines for the design of streetscape,
festival streets, plazas, multi-use pathways, parks and open space and other like public spaces applicable to the Project Area as needed to support implementation of this Plan;
s. In conjunction with the City, the establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements
which provide unity and integrity to the entire Project Area, including commitment of funds for planning studies, achieving high standards of development, and leveraging such development
to achieve public objectives and efficient use of scarce resources;
t. To the extent allowed by law, lend or invest federal funds to facilitate development and/or redevelopment;
u. The provision for relocation assistance to displaced Project Area occupants, as required by law, or within the discretion of the Agency Board for displaced businesses;
v. Other related improvements to those set forth above as further set forth in Attachment 5.
In the accomplishment of these purposes and activities and in the implementation and furtherance of this Plan, the Agency is authorized to use all the powers provided in this Plan and
all the powers now or hereafter permitted by Law and Act.
302 Urban Renewal Plan Objectives
Urban renewal activity is necessary in the Project Area to combat problems of physical deterioration or deteriorating conditions. As set forth in greater detail in Section 103,
the Project Area has a history of stagnant growth and development compared to other areas of the City based on deteriorated or deteriorating conditions that have arrested or impaired
growth in the Project Area primarily attributed to: predominance of defective or inadequate street layout, outmoded street patters, need for correlation by area with other areas of
the City by streets and modern traffic requirements, faulty lot layout/obsolete platting, insanitary or unsafe conditions, and inadequate utility infrastructure needed for commercial
and residential development. The Plan for the Project Area is a proposal to work in partnership with public and private entities to
improve, develop, and grow the economy within the Project Area by the implementation of a strategy and program set forth in Section 301.
The provisions of this Plan are applicable to all public and private property in the Project Area. The provisions of the Plan shall be interpreted and applied as objectives and goals,
recognizing the need for flexibility in interpretation and implementation, while at the same time not in any way abdicating the rights and privileges of the property owners which are
vested in the present and future zoning classifications of the properties. All development under an owner participation agreement shall conform to those standards specified in Section
303.1 of this Plan.
This Plan must be practical in order to succeed. Particular attention has been paid to how it can be implemented, given the changing nature of market conditions. Transforming the Project
Area into a vital, thriving part of the community requires an assertive strategy. The following list represents the key elements of that effort:
a. Initiate simultaneous projects designed to revitalize the Project Area. From street and utility improvements to significant new public or private development, the Agency plays a key
role in creating the necessary momentum to get and keep things going.
b. Develop new mixed-use residential, retail, commercial, and office opportunities and encourage economic development.
c. Secure and improve certain public open space in critical areas.
d. Initiate projects designed to increase workforce transportation and mobility options.
Without direct public intervention, much of the Project Area could conceivably remain unchanged and in a deteriorated and/or deteriorating condition for the next twenty (20) years.
The Plan creates the necessary flexible framework for the Project Area to support the City’s economic development while complying with the “specificity” requirement set forth in Idaho
Code § 50-2905.
Land use in the Project Area will be modified to the extent that underutilized, underdeveloped, and vacant land and land now devoted to uses inconsistent with the future land uses of
the area will be converted to residential, commercial, retail and office uses. In implementing the activities described in this Plan, the Agency shall give due consideration to the
provision of adequate open space, park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety, and
welfare of residents in the general vicinity of the site covered by the Plan.
303 Participation Opportunities and Agreement
303.1 Participation Agreements
The Agency shall enter into various development participation agreements with any existing or future owner of property in the Project Area, in the event the property owner receives
assistance from the Agency in the development and/or redevelopment of the property. The term “owner participation agreement” or “participation agreement” is intended to include all
participation agreements with a property owner, including reimbursement agreements, grant agreements or other participation agreements. In that event, the Agency may allow for an existing
or future owner of property to remove the property and/or structure from future Agency acquisition subject to entering into an owner participation agreement. The Agency may also enter
into owner participation agreements with other future owners and developers within the Project Area throughout the duration of this Plan in order to implement the infrastructure improvements
set forth in this Plan.
Each structure and building in the Project Area to be rehabilitated or to be constructed as a condition of the owner participation agreement between the Agency and the owner pursuant
to this Plan will be considered to be satisfactorily rehabilitated and constructed, and the Agency will so certify, if the rehabilitated or new structure meets the standards set forth
in an executed owner participation agreement and meets the conditions described below:
a. Any such property within the Project Area shall be required to conform to all applicable provisions, requirements, and regulations of this Plan. The owner participation agreement
may require as a condition of financial participation by the Agency a commitment by the property owner to meet the greater objectives of the land use elements identified in the Comprehensive
Plan, and applicable zoning ordinances. Upon completion of any rehabilitation each structure must be safe and sound in all physical respects and be refurbished and altered to bring
the property to an upgraded marketable condition that will continue throughout an estimated useful life for a minimum of twenty (20) years.
b. Any owner shall give due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration
for the health, safety and welfare of children and seniors residing in the general vicinity of the site covered by the Plan.
c. All such buildings or portions of buildings which are to remain within the Project Area shall be rehabilitated or constructed in conformity with all applicable codes and ordinances
of the City.
d. Any new construction shall also conform to all applicable provisions, requirements, and regulations of this Plan, as well as to all applicable codes and ordinances of the City.
All owner participation agreements will address phasing issues, development timing, justification and eligibility of project costs, and achievement of the objectives of the Plan. The
Agency shall retain its discretion in the funding level of its participation. Obligations
under owner participation agreements shall terminate no later than the termination date of this Plan, December 31, 2046. The Agency shall retain its discretion to negotiate an earlier
date to accomplish all obligations under any owner participation agreement.
In all participation agreements, participants who retain real property shall be required to join in the recordation of such documents as may be necessary to make the provisions of this
Plan applicable to their properties. Whether or not a participant enters into a participation agreement with the Agency, the provisions of this Plan are applicable to all public and
private property in the Project Area.
In the event a participant fails or refuses to rehabilitate, develop, use, and maintain its real property pursuant to this Plan and a participation agreement, the real property or any
interest therein may be acquired by the Agency in accordance with Section 305.1 of this Plan and sold or leased for rehabilitation or development in accordance with this Plan.
Owner participation agreements may be used to implement the following objectives:
a. Encouraging property owners to revitalize and/or remediate deteriorated areas or deteriorating areas of their parcels to accelerate development in the Project Area.
b. Subject to the limitations of the Law and the Act, providing incentives to property owners to encourage utilization and expansion of existing permitted uses during the transition
period to prevent a decline in the employment base and a proliferation of vacant and deteriorated parcels in the Project Area during the extended redevelopment of the Project Area.
c. To accommodate improvements and expansions allowed by City regulations.
d. Subject to the limitations of the Law and Act, providing incentives to improve nonconforming properties so they implement the design guidelines contained in this Plan to the extent
possible and to encourage an orderly transition from nonconforming to conforming uses through the term of the Plan.
e. Provide for advance funding by the developer/owner participant of those certain public improvements related to or needed for the private development and related to the construction
of certain public improvements. In that event, the Agency will agree as set out in the participation agreement to reimburse a portion of, or all of, the costs of public improvements
identified in the participation agreement from the revenue allocation generated by the private development.
304 Cooperation with Public Bodies
Certain public bodies are authorized by state law to aid and cooperate, with or without consideration, in the planning, undertaking, construction, or operation of this Project. The
Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate
this Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and the highest public good.
The Agency, by law, is not authorized to acquire real property owned by public bodies without the consent of such public bodies. The Agency will seek the cooperation of all public bodies
which own or intend to acquire property in the Project Area. All plans for development of property in the Project Area by a public body shall be subject to Agency approval, in the event
the Agency is providing any financial assistance.
Subject to applicable authority, the Agency may impose on all public bodies the planning and design controls contained in this Plan to ensure that present uses and any future development
by public bodies will conform to the requirements of this Plan. The Agency is authorized to financially (and otherwise) assist any public entity in the cost of public land, buildings,
facilities, structures, or other improvements of the Project Area as allowed by the Law and Act.
The Agency intends to cooperate to the extent allowable with the City and County, as the case may be, for the engineering, design, installation, construction, and/or reconstruction
of public infrastructure improvements, including, but not limited to water, sewer, storm drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,
roads, curbs, gutters, sidewalks, walkways, public parking facilities and unoccupied auxiliary structures. The Agency shall also cooperate with the City and County on various relocation,
screening, or underground projects and the providing of fiber optic capability. To the extent any public entity, including the City and/or County, has funded certain improvements, the
Agency may reimburse those entities for those expenses. The Agency also intends to cooperate and seek available assistance from state, federal and other sources for economic development.
This Plan does not financially bind any public entity to a project and does not constitute any commitment for financial outlays by the City and/or County; rather this Plan provides
a framework for public entities to work together to resolve public infrastructure issues at the local level.
In the event the Agency is participating in the public development by way of financial incentive or otherwise, the public body shall enter into a participation agreement with the Agency
and then shall be bound by the Plan and other land use elements and shall conform to those standards specified in Section 303.1 of this Plan.
This Plan does not financially bind or obligate the Agency or other public entities to any project or property acquisition; rather, for purposes of determining the economic feasibility
of the Plan certain projects and expenditures have been estimated and included in the analysis. Agency revenue and the ability to fund reimbursement of eligible Project Costs is more
specifically detailed in any owner participation agreement and in the annual budget adopted by the Agency Board.
305 Property Acquisition
305.1 Real Property
Only as specifically authorized herein, the Agency may acquire, through the voluntary measures described below, but is not required to acquire, any real property located in the Project
Area where it is determined that the property is needed for construction of public improvements, required to eliminate or mitigate the deteriorated or deteriorating conditions, to facilitate
economic development, including acquisition of real property intended for disposition to qualified developers through a competitive process, and as otherwise allowed by law. The acquisition
shall be by any means authorized by law, including, but not limited to, the Law, the Act, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended, but shall not include the right to invoke eminent domain authority except as authorized herein. The Agency is authorized to acquire either the entire fee or any other interest
in real property less than a fee, including structures and fixtures upon the real property, without acquiring the land upon which those structures and fixtures are located.
The Agency intends to acquire any real property through voluntary or consensual gift, devise, exchange, or purchase. Such acquisition of property may be for the development of the public
improvements identified in this Plan. Such properties may include properties owned by private parties or public entities. This Plan does not anticipate the Agency’s widespread use of
its resources for property acquisition, except for the construction of public improvements, including right-of-way acquisition, and possible purchase of the Madison County Fairgrounds.
In the event the Agency identifies certain property which should be acquired to develop certain public improvements intended to be constructed under the provisions of this Plan, the
Agency shall coordinate such property acquisition with any other public entity (e.g., without limitation, the City, the County, the state of Idaho, or any of its authorized agencies),
including the assistance of the Agency of funds to acquire said property either through a voluntary acquisition or the public entity’s invoking of its eminent domain authority as limited
by Idaho Code Section 7-701A.
The Agency is authorized by this Plan to acquire the properties identified in Attachment 3 hereto, including but not limited to property to be acquired for the extension or expansion
of certain rights-of-way.
The Agency is authorized by this Plan and Idaho Code §§ 50-2010 and 50-2018(12) to acquire the properties identified in Attachment 3 hereto for the purposes set forth in this Plan. The
Agency has identified its intent to acquire and/or participate in the development of certain public improvements, including, but not limited to streets, streetscapes, water and sewer
improvements, environmental remediation/site preparation, public parking, community facilities, including but not limited to parks, pedestrian/bike paths and trails, recreation facilities
and other public facilities and/or equipment, such as public infrastructure improvements and/or equipment to support a police/sheriff, fire and/or emergency medical services facility.
Further, the Agency may acquire real property to facilitate commercial development by assembling and disposing of developable parcels. The Agency’s property acquisition will result
in remediating deteriorating conditions in the Project Area by facilitating the development of mixed-use, residential, commercial, and retail areas. The public improvements are intended
to be dedicated to the City or County upon completion where applicable. The Agency reserves the right to determine which
properties identified, if any, should be acquired. The open land areas qualify for Agency acquisition as further set forth in Section 105 of this Plan.
It is in the public interest and may be necessary, in order to eliminate the conditions requiring redevelopment and/or development and in order to execute this Plan, for the power of
eminent domain to be employed by the Agency or by the City with the Agency acting in an advisory capacity to acquire real property in the Project Area for the public improvements identified
in this Plan, which cannot be acquired by gift, devise, exchange, purchase, or any other lawful method.
Under the provisions of the Act, the urban renewal plan “shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements,
and rehabilitation as may be proposed to be carried out in the urban renewal area.” Idaho Code § 50-2018(12). The Agency has generally described those properties by use as set out in
Attachment 3 for acquisition for the construction of public improvements. The Agency may also acquire property for the purpose of developing streetscape and public utilities. The Agency
reserves the right to determine which properties, if any, should be acquired.
305.2 Personal Property
Generally, personal property shall not be acquired, except for purposes of providing for better police, sheriff and/or ambulance services in the Project Area. However, where necessary
in the execution of this Plan, the Agency is authorized to acquire personal property in the Project Area by any lawful means, including eminent domain for the purpose of developing
the public improvements described in section 305.1.
306 Property Management
During the time real property, if any, in the Project Area is owned by the Agency, such property shall be under the management and control of the Agency. Such property may be rented
or leased by the Agency pending its disposition for redevelopment, and such rental or lease shall be pursuant to such policies as the Agency may adopt.
307 Relocation of Persons (Including Individuals and Families), Business Concerns, and Others Displaced by the Project
If the Agency receives federal funds for real estate acquisition and relocation, the Agency shall comply with 24 C.F.R. Part 42, implementing the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended.
The Agency reserves the right to extend benefits for relocation to those not otherwise entitled to relocation benefits as a matter of state law under the Act or the Law. The Agency may
determine to use as a reference the relocation benefits and guidelines promulgated by the federal government, the state government, or local government, including the State Department
of Transportation. The intent of this section is to allow the Agency sufficient flexibility to award relocation benefits on some rational basis, or by payment of some lump-sum per case
basis. The
Agency may also consider the analysis of replacement value for the compensation awarded to either owner occupants or businesses displaced by the Agency to achieve the objectives of this
Plan. The Agency may adopt relocation guidelines which would define the extent of relocation assistance in non-federally-assisted projects and which relocation assistance to the greatest
extent feasible would be uniform. The Agency shall also coordinate with the various local, state, or federal agencies concerning relocation assistance as may be warranted.
In the event the Agency’s activities result in displacement, the Agency shall comply with, at a minimum, the standards set forth in the Law. The Agency shall also comply with all applicable
state laws concerning relocation benefits. The Agency shall also coordinate with the various local, state, or federal agencies concerning relocation assistance.
308 Demolition, Clearance and Site Preparation
The Agency is authorized (but not required) to demolish and clear buildings, structures, and other improvements from any real property in the Project Area as necessary to carry out
the purposes of this Plan.
Further, the Agency is authorized (but not required) to prepare, or cause to be prepared, as building sites any real property in the Project Area owned by the Agency including site preparation.
In connection therewith, the Agency may cause, provide for, or undertake the installation or construction of streets, utilities, parks, pedestrian walkways, parking facilities, drainage
facilities, and other public improvements necessary to carry out this Plan.
309 Property Disposition and Development
309.1 Disposition by the Agency
For the purposes of this Plan, the Agency is authorized to sell, lease, lease/purchase, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise
dispose of any interest in real property under the reuse provisions set forth in Idaho Code § 50-2011 and pursuant to any disposition policies adopted by the Agency. To the extent permitted
by law, the Agency is authorized to dispose of real property by negotiated lease, sale, or transfer without public bidding.
Real property acquired by the Agency may be conveyed by the Agency and, where beneficial to the Project Area, without charge to any public body as allowed by law. All real property
acquired by the Agency in the Project Area shall be sold or leased to public or private persons or entities for development for the uses permitted in this Plan.
309.2 Disposition and Development Agreements
To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of deteriorating conditions, all real property sold, leased,
or conveyed by the Agency is subject to the provisions of this Plan.
The Agency shall reserve such powers and controls in the disposition and development documents as may be necessary to prevent transfer, retention, or use of property for speculative
purposes and to ensure that development is carried out pursuant to this Plan.
Leases, lease/purchases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of
reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. Where appropriate, as determined by the Agency, such documents, or portions
thereof, shall be recorded in the office of the Recorder of Madison County, Idaho.
All property in the Project Area is hereby subject to the restriction that there shall be no discrimination or segregation based upon race, color, creed, religion, sex, age, national
origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, disability/handicap, tenure, or enjoyment of property in the Project Area. All property sold, leased, conveyed,
or subject to a participation agreement shall be expressly subject by appropriate documents to the restriction that all deeds, leases, or contracts for the sale, lease, sublease, or
other transfer of land in the Project Area shall contain such nondiscrimination and nonsegregation clauses as required by law.
As required by law or as determined in the Agency’s discretion to be in the best interest of the Agency and the public, the following requirements and obligations shall be included
in the disposition and development agreement.
That the developers, their successors, and assigns agree:
a. That a detailed scope and schedule for the proposed development shall be submitted to and agreed upon by the Agency.
b. That the purchase or lease of the land and/or subterranean rights and/or air rights is for the purpose of redevelopment and not for speculation.
c. That the building of improvements will be commenced and completed as jointly scheduled and determined by the Agency and the developer(s).
d. That the site and construction plans will be submitted to the Agency for review as to conformity with the provisions and purposes of this Plan.
e. All new construction shall have a minimum estimated life of no less than twenty (20) years.
f. That rehabilitation of any existing structure must assure that the structure is safe and sound in all physical respects and be refurbished and altered to bring the property to an
upgraded marketable condition which will continue throughout an estimated useful life for a minimum of twenty (20) years.
g. That the Agency receives adequate assurance acceptable to the Agency to ensure performance under the contract for sale.
h. All such buildings or portions of the buildings which are to remain within the Project Area shall be reconstructed in conformity with all applicable codes and ordinances of the City.
i. All disposition and development documents shall be governed by the provisions of Section 409 of this Plan.
j. All other requirements and obligations as may be set forth in any participation policy established and/or amended by the Agency.
All disposition and development agreements will address development timing and phasing. The Agency also reserves the right to determine the extent of its participation based upon the
achievements of the objectives of this Plan. Obligations under any disposition and development agreement and deed covenants, except for covenants which run with the land beyond the
termination date of this Plan, shall terminate no later than December 31, 2046. The Agency shall retain its discretion to negotiate an earlier date to accomplish all obligations under
any disposition and development agreement.
309.3 Development by the Agency
To the extent now or hereafter permitted by law, the Agency is authorized to pay for, develop, or construct public improvements within the Project Area for itself or for any public
body or entity, which public improvements are or would be of benefit to the Project Area. Specifically, the Agency may pay for, install, or construct the public improvements authorized
under Idaho Code Section 50-2007, 50-2018(10) and (13), and 50-2903(9), (13), and (14), and as otherwise identified in Attachment 5, attached hereto and incorporated herein by reference,
and may acquire or pay for the land required therefore.
The Agency may enter into contracts, leases, and agreements with the City or other public body or private entity pursuant to this section, and the obligation of the Agency under such
contract, lease, or agreement shall constitute an indebtedness of the Agency as described in Idaho Code § 50-2909 which may be made payable out of the taxes levied in the Project Area
and allocated to the Agency under Idaho Code § 50-2908(2)(b) and Section 500 of this Plan or out of any other available funds.
310 Development Plans
All development plans (whether public or private) prepared, pursuant to an owner participation or disposition and development agreement, shall be submitted to the Agency Board for approval
and architectural review. All development in the Project Area must conform to those standards specified in Section 409. Additionally, development must be consistent with all City ordinances.
312 Participation with Others
Under the Law, the Agency has the authority to lend or invest funds obtained from the federal government for the purposes of the Law if allowable under federal laws or regulations.
The federal funds that may be available to the Agency are governed by regulations promulgated by the Department of Housing and Urban Development for the Community Development Block
Grant Program (“CDBG”), the Economic Development Administration, the Small Business Administration, or other federal agencies. In order to enhance such grants, the Agency’s use of revenue
allocation funds is critical.
Under those regulations the Agency may participate with the private sector in the development and financing of those private projects that will attain certain federal objectives.
The Agency may, therefore, use the federal funds for the provision of assistance to private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest
supplements, technical assistance, and other forms to support, for any other activity necessary or appropriate to carry out an economic development project.
As allowed by law, the Agency may also use funds from any other sources for any purpose set forth under the Law or Act.
The Agency may enter into contracts, leases, and agreements with the City, or other public body or private entity, pursuant to this section, and the obligation of the Agency under such
contract, lease, or agreement shall constitute an indebtedness of the Agency as described in Idaho Code § 50-2909 which may be made payable out of the taxes levied in the Project Area
and allocated to the Agency under Idaho Code § 50-2908(2)(b) and Section 500 of this Plan or out of any other available funds.
313 Conforming Owners
The Agency may, at the Agency’s sole and absolute discretion, determine that certain real property within the Project Area presently meets the requirements of this Plan, and the owner
of such property will be permitted to remain as a conforming owner without a participation agreement with the Agency, provided such owner continues to operate, use, and maintain the
real property within the requirements of this Plan.
400 USES PERMITTED IN THE PROJECT AREA
401 Designated Land Uses
The Agency intends to rely upon the overall land use designations and zoning classifications of the City, as may be amended, and as depicted on Attachment 4 and as set forth
in the City’s Comprehensive Plan Land Use Map, including the future land use map and zoning classifications, as may be amended. For the most part, the Project Area is proposed as mixed-use,
residential, commercial, retail and office development. Provided, however, nothing herein within this Plan shall be deemed to be granting any particular right to zoning classification
or use.
402 [Reserved]
403 Public Rights-of-Way
The Project Area contains existing maintained public rights-of-way included within the boundaries, as shown on Attachment 1. Any new roadways, including new local, collector and arterial
roads to be engineered, designed, installed, and constructed in the Project Area, will be constructed in conjunction with any applicable policies and design standards of the City or
Madison County (and State and Federal standards, as the case may be) regarding dedicated rights-of-way. Additional public streets, alleys, and easements may be created in the Project
Area as needed for proper development.
Additional improvements to existing streets and easements may be created, improved, or extended in the Project Area as needed for development. Existing dirt roadways, streets, easements,
and irrigation or drainage laterals or ditches may be abandoned, closed, vacated, expanded, or modified as necessary for proper development of the Project Area, in conjunction with
any applicable policies and standards of the City or County (or Idaho Department of Transportation) regarding changes to dedicated rights-of-way, and appropriate irrigation or drainage
districts regarding changes to laterals or ditches.
Any development, maintenance and future changes in the interior or exterior street layout shall be in accordance with the objectives of this Plan and the City’s (or County’s) design
standards; shall be effectuated in the manner prescribed by State and local law; and shall be guided by the following criteria:
a. A balancing of the needs of proposed and potential new developments for adequate vehicular access, vehicular parking, and delivery loading docks with the similar needs of any existing
developments permitted to remain. Such balancing shall take into consideration the rights of existing owners and tenants under the rules for owner and tenant participation adopted by
the Agency for the Project and any participation agreements executed thereunder;
b. The requirements imposed by such factors as topography, traffic safety, and aesthetics; and
c. The potential need to serve not only the Project Area and new or existing developments, but to also serve areas outside the Project Area by providing convenient and efficient vehicular
access and movement.
The public rights-of-way may be used for vehicular and/or pedestrian traffic, as well as for public improvements, public and private utilities, and activities typically found in public
rights-of-way.
404 Interim Uses
Pending the ultimate development of land by developers and participants, the Agency is authorized to use or permit the use of any land in the Project Area for interim uses that are
not in conformity with the uses permitted in this Plan. However, any interim use must comply with applicable City Code or Madison County Code.
405 Development in the Project Area Subject to the Plan
All real property in the Project Area, under the provisions of either a disposition and development agreement or an owner participation agreement, is made subject to the controls and
requirements of this Plan. No such real property shall be developed, rehabilitated, or otherwise changed after the date of the adoption of this Plan, except in conformance with the
provisions of this Plan.
406 Construction Shall Comply with Applicable Federal, State, and Local Laws and Ordinances and Agency Development Standards
All construction in the Project Area shall comply with all applicable state laws, the Rexburg City Code, as may be amended from time to time, and any applicable City Council ordinances
pending codification, including but not limited to, regulations concerning the type, size, density and height of buildings; open space, landscaping, light, air, and privacy; the undergrounding
of utilities; limitation or prohibition of development that is incompatible with the surrounding area by reason of appearance, traffic, smoke, glare, noise, odor, or similar factors;
parcel subdivision; off-street loading and off-street parking requirements.
In addition to applicable codes, ordinances, or other requirements governing development in the Project Area, additional specific performance and development standards may be adopted
by the Agency to control and direct redevelopment activities in the Project Area in the event of a disposition and development agreement or owner participation agreement.
407 [Reserved]
408 Nonconforming Uses
The Agency may permit an existing use to remain in an existing building and site usage in good condition, which use does not conform to the provisions of this Plan, provided that such
use is generally compatible with existing and proposed developments and uses in the Project Area. The owner of such a property must be willing to enter into an owner participation agreement
and agree to the imposition of such reasonable restrictions as may be necessary to protect the development and use of the Project Area.
The Agency may authorize additions, alterations, repairs, or other improvements in the Project Area for uses which do not conform to the provisions of this Plan where such improvements
are within a portion of the Project Area where, in the determination of the Agency, such improvements would be compatible with surrounding Project uses and development.
All nonconforming uses shall also comply with the applicable local ordinances.
409 Design Guidelines for Development under a Disposition and Development Agreement or Owner Participation Agreement
Under a disposition and development agreement and an owner participation agreement, the design guidelines and land use elements of the Plan shall be achieved to the greatest extent
feasible, though the Agency retains the authority to grant minor variations under this Plan and subject to a negotiated agreement between the Agency and the developer or property owner.
Under those agreements, the architectural, landscape, and site plans shall be submitted to the Agency and approved in writing by the Agency. In such agreements, the Agency may impose
additional design controls. One of the objectives of this Plan is to create an attractive pedestrian environment in the Project Area. Therefore, such plans shall give consideration
to good design and amenities to enhance the aesthetic quality of the Project Area. These additional design standards or controls will be implemented through the provisions of any owner
participation agreement or disposition and development agreement. These controls are in addition to any standard and provisions of any applicable local building or zoning ordinances;
provided, however, each and every development shall comply with all applicable local zoning and building ordinances.
500 METHODS OF FINANCING THE PROJECT
501 General Description of the Proposed Financing Method
The Agency is authorized to finance this Project with revenue allocation funds, financial assistance from the City (loans, grants, other financial assistance), state of Idaho, federal
government or other public entities, interest income, developer advanced funds, donations, loans from private financial institutions (bonds, notes, line of credit), the lease or sale
of Agency-owned property, public parking revenue, or any other available source, public or private, including assistance from any taxing district or any public entity.
The Agency is also authorized to obtain advances, lines of credit, borrow funds, and create indebtedness in carrying out this Plan. The Agency may also consider an inter-fund transfer
or grant from the City or an inter-fund transfer from other urban renewal project areas. The principal and interest on such advances, funds, and indebtedness may be paid from any funds
available to the Agency. The City, as it is able, may also supply additional assistance through City loans and grants for various public improvements and facilities.
The City, County or any other public agency may expend money to assist the Agency in carrying out this Project.
As allowed by law and subject to restrictions as are imposed by law, the Agency is authorized to issue notes or bonds from time to time, if it deems appropriate to do so, in order to
finance all or any part of the Project. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds by reason of their issuance.
502 Revenue Allocation Financing Provisions
The Agency hereby adopts revenue allocation financing provisions as authorized by the Act, effective retroactively to January 1, 2026. These revenue allocation provisions shall apply
to all taxing districts which are located in or overlap the Revenue Allocation Area shown and described on Attachments 1 and 2 to this Plan. The Agency shall take all actions necessary
or convenient to implement these revenue allocation financing provisions. The Agency specifically finds that the equalized assessed valuation of property within the Revenue Allocation
Area is likely to increase as a result of the initiation of the Project.
The Agency, acting by one or more resolutions adopted by its Board, is hereby authorized to apply all or any portion of the revenues allocated to the Agency pursuant to the Act to pay
as costs are incurred (pay-as-you-go) or to pledge all or any portion of such revenues to the repayment of any moneys borrowed, indebtedness incurred, or notes or bonds issued by the
Agency to finance or to refinance the Project Costs (as defined in Idaho Code § 50-2903(14)) of one or more urban renewal projects.
The Agency may consider a note or line of credit issued by a bank or lending institution premised upon revenue allocation funds generated by a substantial private development contemplated
by the Study, as defined in Section 502.1, which would allow the Agency to more quickly fund the public improvements contemplated by this Plan. Likewise, a developer/owner advanced
funding could achieve the same purpose.
Upon enactment of a City Council ordinance finally adopting these revenue allocation financing provisions and defining the Revenue Allocation Area described herein as part of the Plan,
there shall hereby be created a special fund of the Agency into which the County Treasurer shall deposit allocated revenues as provided in Idaho Code § 50-2908. The Agency shall use
such funds solely in accordance with Idaho Code § 50-2909 and solely for the purpose of providing funds to pay the Project Costs, including any incidental costs, of such urban renewal
projects as the Agency may determine by resolution or resolutions of its Board.
A statement listing proposed public improvements and facilities, a schedule of improvements, an economic feasibility study, estimated project costs, fiscal impact upon other taxing
districts, and methods of financing project costs required by Idaho Code § 50-2905 is included in this Plan and in Attachment 5 to this Plan. This information necessarily incorporates
estimates and projections based on the Agency’s present knowledge and expectations. The
Agency is hereby authorized to adjust the presently anticipated urban renewal projects and use of revenue allocation financing of the related Project Costs if the Board deems such adjustment
necessary or convenient to effectuate the general objectives of the Plan in order to account for revenue inconsistencies and unknown future costs. Agency revenue and the ability to
fund reimbursement of eligible Project Costs is more specifically detailed in the annual budget.
Revenues will continue to be allocated to the Agency until termination of the revenue allocation area as set forth in Section 800. The Study incorporates estimates and projections based
on the Agency’s and its consultants’ present knowledge and expectations concerning the length of time to complete the improvements and estimated future revenues. The activity may take
longer depending on the significance and timeliness of development. Alternatively, the activity may be completed earlier if revenue allocation proceeds are greater or the Agency obtains
additional funds from another source.
The Agency may also appropriate funds consisting of revenue allocation proceeds on an annual basis without the issuance of notes or bonds. The Agency has also provided for bonding, obtaining
advances or loans from the Agency, or from the Agency’s other revenue allocation area, or private entity and financial institutions in order to immediately commence construction of
certain of the public improvements. Developer advanced funding of public improvements could also achieve the same purpose. The revenue allocation proceeds are hereby irrevocably pledged
for the payment of the principal and interest on the advance of monies or making of loans or the incurring of any indebtedness such as bonds, notes, and other obligations (whether funded,
refunded, assumed, or otherwise) by the Agency to finance or refinance the Project in whole or in part, including reimbursement to developers for the cost of eligible public improvements.
The Agency is authorized to make such pledges as to specific advances, loans, and indebtedness as appropriate in carrying out the Project.
The Agency reserves the right to either pay for Project Costs from available revenue (pay as you go basis) or borrow funds by incurring debt through notes or other obligations.
Revenue allocation proceeds are deemed to be only a part of the proposed funding sources for the payment of public improvements and other project improvements. Additionally, project
funding is proposed to be phased for the improvements, allowing various sources of funds to be accumulated for use.
502.1 Economic Feasibility Study
Attachment 5constitute the West Highway Urban Renewal District Economic Feasibility Study (the “Study”), prepared by Brad Cramer, Perspective Planning & Consulting. The Study constitutes
the financial analysis required by the Act and is based upon existing information from property owners, developers, the County, the Agency, the City and others.
502.2 Assumptions and Conditions/Economic Feasibility
Statement
The information contained in Attachment 5 assumes certain completed and projected actions. All debt is projected to be repaid no later than the duration period of the Plan. The total
amount of indebtedness (and all other loans or indebtedness), developer reimbursement and the amount of revenue generated by revenue allocation are dependent upon the extent and timing
of private development. Should all of the development take place as projected, the project indebtedness could be extinguished earlier, dependent upon other legal obligations. Should
private development take longer to materialize, or should the private development be substantially less than projected, then the amount of revenue generated will be substantially reduced
and debt may continue for its full term.
The Plan and the Plan Attachments incorporate estimates and projections based on the Agency’s present knowledge and expectations. The Plan proposes certain public improvements as set
forth in Attachment 5, which will facilitate development in the Revenue Allocation Area.
The assumptions set forth in the Study are based upon the best information available to the Agency through public sources or discussions with property owners, developers, the County,
the City and others. The information has been analyzed by the Agency in order to provide an analysis that meets the requirements set forth under the Law and Act. At the point in time
when the Agency may seek a loan from lenders or others, a more detailed and then-current financial pro forma will be presented to those lenders or underwriters for analysis to determine
the borrowing capacity of the Agency. As set forth herein, the Agency reserves the right to fund the Project on a “pay as you go” basis. The Agency Board will prioritize the activities
set forth in this Plan and determine what funds are available and what activities can be funded. The Agency will establish those priorities through its mandated annual budgetary process.
The assumptions concerning revenue allocation proceeds are based upon certain anticipated development, assessed value increases, and assumed tax levy rates as more specifically set
forth in Attachment 5. In projecting new construction, the Study considered conservative projections based on known or proposed developments in the Project Area, anticipated build-out
timeline, and anticipated projected future developments for commercial, retail and residential projects.
The list of public improvements, or activities within the Study are prioritized by way of feasibility based on estimated revenues to be received, amounts funded, and by timing of the
proposed funding, which the priority projects being identified as the most important. The projected timing of funding is primarily a function of the availability of financial resources
and market conditions but is also strategic, considering the timing of anticipated or projected private development partnership opportunities and the ability of certain strategic activities
to stimulate development at a given point in time within the duration of the Plan and Project Area.
The assumptions concerning revenue allocation proceeds are based upon certain anticipated or projected new developments, assessed value increases, and assumed tax levy rates as more
specifically set forth in the Study. In projecting new construction, the Study considered
parcels identified as expected to develop over the life of the Project Area, and review of growth and absorption of residential (multifamily and single-family), commercial (retail and
office), hotel projects. The Study projected that new development would phase in over the life of the Project Area, varying by land use and based on the completion of certain public
infrastructure projects making development feasible in certain parts of the Project Area. The Study assumed improved properties within the Project Area would appreciate by 7% annually.
The levy rate is assumed to decrease 5% throughout the life of the Project Area. Using these assumptions, it was projected that the Project Area is anticipated to generate approximately
$43.5-68.5 million in revenue over the life of the Project Area to fund public infrastructure projects.
The types of new construction expected in the Project Area are: commercial, office, residential, including residential above retail and office, live-work residences, higher density townhome,
and single-family homes, lodging and retail. Developers have identified significant interest in these development types. The Project Area has potential for a significant increase in
commercial growth due to the proximity to major transportation corridors and population growth. Several large parcels in the Project Area have recently been acquired for development
purposes. Other owners have expressed interest in developing their properties or selling to a developer. However, without a method to construct the identified public improvements such
as main water and sewer lines and street infrastructure, development is unlikely to occur in much of the Project Area.
The financial analysis set forth in Attachment 5 has taken into account and excluded levies that do not flow to the Agency consistent with Idaho Code § 50-2908.
It is understood that application of certain exemptions, including the homeowner’s exemption and Idaho Code § 63-602K, which provides for personal property tax exemption to businesses
may have the effect of reducing the increment value, which in turn reduces revenue.
502.3 Ten Percent Limitation
Under the Act, the base assessed valuation for all revenue allocation areas cannot exceed gross/net ten percent (10%) of the current assessed taxable value for the entire City. According
to the Madison County Assessor, the assessed taxable value for the City as of January 1, 2025, is $2,730,223,521. Therefore, the 10% limit is $273,022,352.00.
The adjusted base assessment roll values for the Agency’s four (4) existing revenue allocation areas as of January 1, 2025, and the proposed base value for the Project Area are as
follows:
Downtown Rexburg $32,941,731.00
University Boulevard $8,073,270.00
North Interchange $3,934,165.00
North Central $36,688,091.00
Proposed West Highway $33,384,430.00
TOTAL $115,021,687.00
The estimated base value for the proposed Project Area is $33,384,430.00. The combined total adjusted base assessment roll values for all existing revenue allocation areas including
this Project Area are $115,021,687.00 which is less than 10% of the City’s 2025 taxable value.
502.4 Financial Limitation
The Study identifies several capital improvement projects. Use of any particular funding source for any particular purpose is not assured or identified. Use of the funding source shall
be conditioned on any limitations set forth in the Law, the Act, or by contract. If revenue allocation funds are unavailable, then the Agency will need to use a different funding source
for that improvement.
The amount of funds available to the Agency from revenue allocation financing is directly related to the assessed value of new improvements within the Revenue Allocation Area. Under
the Act, the Agency is allowed the revenue allocation generated from inflationary increases and new development value. Increases have been assumed based upon the projected value of
new development as that development occurs along with possible land reassessment based on a construction start.
The Study, with the various estimates and projections, constitutes an economic feasibility study. Costs and revenues are analyzed, and the analysis shows the need for public capital
funds during the Project. Multiple financing sources including proposed revenue allocation notes, annual revenue allocations, developer contributions, City and/or County contributions,
interfund loan, and other funds are shown. This Study identifies the kind, number, and location of all proposed public works or improvements, a detailed list of estimated project costs,
a description of the methods of financing illustrating project costs, and the time when related costs or monetary obligations are to be incurred. See Idaho Code § 50-2905. Based on
these funding sources, the conclusion is that the Project is feasible.
The Study has further identified and described a list of “unfunded” additional improvements, i.e., non-prioritized projects on the project list. The Agency reserves the discretion and
flexibility to use revenue allocation proceeds in excess of the amounts projected in the Study for the purpose of funding the additional projects and improvements consistent with
those identified in Attachment 5. The projections in the Study are based on reasonable assumptions and existing market conditions. However, should the Project Area result in greater
than anticipated revenues, the Agency specifically reserves the ability to fund additional activity and projects identified in Attachment 5 and the Plan. Further, the Agency reserves
the discretion and flexibility to use other sources of funds unrelated to revenue allocation to assist in the funding of the improvements and activities identified, including but not
limited to owner participation agreements and disposition and development agreements. The Agency may also re-prioritize projects in the project list and the prioritized project list
pursuant to market conditions, project timing, funding availability, etc., as more specifically detailed in the annual budget. The Agency may also re-prioritize projects in the project
list and the location of those projects pursuant to market conditions, project timing, funding availability, etc. as more specifically detailed in the annual budget.
The proposed timing for the public improvements may have to be adjusted depending upon the availability of some of the funds and the Agency’s ability to finance any portion of the Project.
Any adjustment to Project timing or funding is technical or ministerial in nature and shall not be considered a modification of the Plan pursuant to Idaho Code Section 50-2903A.
The information contained in the Study assumes certain projected actions. First, the Agency has projected an interfund loan from the University Boulevard Project Area, which loan is
to be re-paid prior to termination of the University Boulevard Project Area. Additionally, the Agency has projected revenue allocation funds based on known or anticipated developments
within the Project Area, where establishment of this Plan was a critical factor in the developments moving forward. Under the provisions of the Act, revenue allocation may continue
until the end of the Plan term. Third, the total amount of indebtedness and the amount of revenue generated by revenue allocation is dependent upon the extent and timing of private
development. The Agency may also re-prioritize projects and the location of those projects pursuant to market conditions, project timing, funding availability, etc. as more specifically
detailed in the annual budget.
The Study lists those public improvements the Agency may finance or reimburse the developer and public entities for through the term of the Plan. The costs of improvements are estimates
only as it is impossible to know with any certainty what the costs of improvements will be in future years. There is general recognition that construction costs fluctuate and are impacted
by future unknowns, such as, the cost of materials and laborers. Final costs will be determined by way of construction contract public bidding or by an agreement between the developer/owner
and Agency. The listing of public improvements does not commit the Agency (or City and/or County) to any particular level of funding; rather, identification of the activity in the Plan
allows the Agency to negotiate the terms of any reimbursement with the developer and/or the public entities. This Plan does not financially bind or obligate the Agency (or City and/or
County) to any project or property acquisition; rather, for purposes of determining the economic feasibility of the Plan certain projects and expenditures have been estimated and included
in the analysis. Agency revenue and the ability to fund reimbursement of eligible Project Costs is more specifically detailed in any participation agreement and in the annual budget
adopted by the
Agency Board. The proposed location and siting of roads and utilities in the Project Area is generally shown in the Study recognizing that the specific location of roads, pedestrian
pathways, open space and utilities will depend on the type and timing of development. The change in the location of the improvements shown on Study does not constitute a modification
to the Plan.
The Agency reserves its discretion and flexibility in deciding which improvements are more critical for development or redevelopment, and the Agency intends to coordinate its public
improvements with associated development by private developers/owners. Where applicable, the Agency also intends to coordinate its participation in the public improvements with the
receipt of certain grants or loans which may require the Agency’s participation in some combination with the grant and loan funding.
Generally, the Agency expects to develop those prioritized projects and improvements identified in the Study first, in conjunction with private development within the Project Area generating
the increment as identified in the Study.
The Plan has shown that the equalized valuation of the Revenue Allocation Area as defined in the Plan is likely to increase as a result of the initiation and completion of urban renewal
projects pursuant to the Plan.
502.5 [Reserved]
502.6 Participation with Local Improvement Districts and/or Business Improvement Districts
Under the Idaho Local Improvement (“LID”) District Code, Chapter 17, Title 50, Idaho Code, the City has the authority to establish local improvement districts for various public facilities,
including, but not limited to, streets, curbs, gutters, sidewalks, storm drains, landscaping, and other like facilities. To the extent allowed by the Law and the Act, the Agency reserves
the authority, but not the obligation, to participate in the funding of local improvement district facilities. This participation may include either direct funding to reduce the overall
cost of the LID or to participate as an assessed entity to finance the LID project. Similarly, to the extent allowed by the Law and the Act, the Agency reserves the authority, but not
the obligation, to participate in the funding of the purposes specified under the Business Improvement Districts, Chapter 26, Title 50, Idaho Code.
502.7 Issuance of Debt and Debt Limitation
Any debt incurred by the Agency as allowed by the Law and Act shall be secured by revenue allocation funds as allowed by the Act. All such debt shall be repaid within the duration of
this Plan, except as may be authorized by law.
502.8 Impact on Other Taxing Districts and Levy Rate
An estimate of the overall impact of the revenue allocation project on each taxing district is shown in the Study through the new development projections.
The assessed value for each property in a revenue allocation area consists of a base value and an increment value. The base value is the assessed value as of January 1 of the year in
which a revenue allocation area is approved by a municipality, with periodic adjustments allowed by Idaho law. The increment value is the difference between the adjusted base assessed
value and current assessed taxable value in any given year while the property is in a revenue allocation area. Under Idaho Code § 63-802, taxing entities are constrained in establishing
levy rates by the amount each budget of each taxing district can increase on an annual basis. Taxing entities submit proposed budgets to the County Board of Commissioners, which budgets
are required to comply with the limitations set forth in Idaho Code § 63-802. Therefore, the impact of revenue allocation on the taxing entities is more of a product of the imposition
of Idaho Code § 63-802, then the effect of urban renewal.
The County Board of Commissioners calculates the levy rate required to produce the proposed budget amount for each taxing entity using the assessed values which are subject to each
taxing entity’s levy rate. Assessed values in urban renewal districts which are subject to revenue allocation (incremental values) are not included in this calculation. The combined
levy rate for the taxing entities is applied to the incremental property values in a revenue allocation area to determine the amount of property tax revenue which is allocated to an
urban renewal agency. The property taxes generated by the base values in the urban renewal districts and by properties outside revenue allocation areas are distributed to the other
taxing entities. Properties in revenue allocation areas are subject to the same levy rate as they would be outside a revenue allocation area. The difference is how the revenue is distributed.
If the overall levy rate is less than assumed, the Agency will receive fewer funds from revenue allocation.
In addition, without the Revenue Allocation Area and its ability to pay for public improvements and public facilities, fewer substantial improvements within the Revenue Allocation Area
would be expected during the term of the Plan; hence, there would be lower increases in assessed valuation to be used by the other taxing entities. The Study’s analysis is premised
upon the fact the proposed development and/or redevelopment would not occur but for the ability to use revenue allocation funds to fund certain significant public infrastructure improvements.
One result of new construction occurring outside the revenue allocation area (Idaho Code §§ 63-802 and 63-301A) is the likely reduction of the levy rate as assessed values increase
for property within each taxing entity’s jurisdiction . From and after December 31, 2006, Idaho Code § 63-301A prohibits taxing entities from including, as part of the new construction
roll, the increased value related to new construction within a revenue allocation area until the revenue allocation authority is terminated, or a deannexation occurs. Any new construction
within the Project Area is not available in the short term for inclusion by the taxing entities to increase their budget capacity. Upon termination of this Plan or deannexation of area,
the taxing entities will be able to include a percentage of the increment value on new construction roll for purposes of setting the following year’s budget and revenue from such value
is not limited to the eight percent cap set forth in Idaho Code § 63-802.
As the 2026 certified levy rates are not determined until late September or October 2026, the 2025 certified levy rates have been used in the Study for purposes of the analysis. For
Tax Year 2025, those districts and rates for the parcels located within the City are as follows:
City Parcel Taxing Districts Levy Rates:
Madison County
.003706181
Madison County Abatement District
.000205322
Madison County Ambulance
0
Madison County Road & Bridge
.000492414
Madison Library District
.000387339
City of Rexburg
.003136381
Madison School #321
.000046442
Rexburg Cemetery
.000028478
Burton Cemetery
.000046653
TOTAL:
.008002557
For Tax Year 2025, those districts and rates for the parcels located within the unincorporated County are as follows:
County Parcel Taxing Districts Levy Rates:
Madison County
.003706181
Madison County Abatement District
.000205322
Madison County Ambulance
0
Madson County Road & Bridge
.000492414
Madison Library District
.000387339
Madsion School #321
.000046442
Madison Fire
0
Rexburg Cemetery
.000028478
Burton Cemetery
.000046653
TOTAL:
.004866176
The Study has made certain assumptions concerning the levy rate. First, it is anticipated the parcels currently located outside the jurisdictional boundaries of the City and in unincorporated
Madison County will be developed in unincorporated Madison County; it is not anticipated those parcels will be annexed into the City prior to development. However, since the parcels
within unincorporated Madison County represent a smaller percentage of the total, the levy rate applied to parcels within the boundaries of the City has been used to estimate revenue.
Second, under each scenario in the Study, the levy rate is estimated to decrease 5% annually for the life of the revenue allocation area. The annual increment value is expected to increase
by approximately 7% per year over the term of the Plan. If the overall levy rate is less than projected, or if expected development fails to occur as estimated, the Agency shall receive
fewer funds from revenue allocation.
Pursuant to Idaho Code § 50-2908, the Agency is not entitled to revenue allocation proceeds from certain levy increases which are allowed by either specific statutory authorization
or approved by an election of the qualified electors of the particular taxing district. Therefore, for any levy election, the Agency will not receive revenue allocation funds which
would have been generated by imposing that levy on the assessed valuation within the Project Area. The Study has taken this statute into account.
House Bill 436, effective retroactive to January 1, 2025, amends Idaho Code § 50-2906 providing that fire protection and ambulance service districts are not subject to the financing
provisions of a revenue allocation area modified after July 1, 2025, unless the fire protection district and/or the ambulance service district each consent to be included pursuant to
the process outlined in Idaho Code § 50-2906(4). This amendment will apply to this Plan. Should Madison County Ambulance and/or Madison Fire Protection District fail to consent to be
included in the Project Area, the levy from that district will not generate revenue for this Project Area. To be conservative the Plan and the Study do not include receipt of revenue
allocation funds from the Madison County Ambulance levy or the Madison Fire Protection District levy in the revenue model.
503 Phasing and Other Fund Sources
The Agency anticipates funding only the prioritized portion of the total cost of the identified public improvements shown in the Study. The Agency also anticipates other sources of
funds for the additional projects on the project list, which may include City, and other public entity parties, owner/developer participation, and financing. It is important to note
this Plan does not financially bind or obligate the City, Agency, and/or any other public entity to any project or property acquisition. The City and/or other local government entities
continue to be subject to statutory and constitutional budget and levy limitations. The City, Agency, and/or other public entity participation in any project shall be determined by
the amount of revenue allocation funds generated and pursuant to the annual budgeting process.
504 Lease Revenue and Bonds
Under the Law (Idaho Code § 50-2012), the Agency is authorized to issue revenue bonds to finance certain public improvements identified in the Plan. Under that type of financing, the
public entity would pay the Agency a lease payment annually which provides certain funds to the Agency to retire the bond debt. Another variation of this type of financing is sometimes
referred to as conduit financing, which provides a mechanism where the Agency uses its bonding authority for the Project, with the end user making payments to the Agency to retire the
bond debt. These sources of revenues are not related to revenue allocation funds and are not particularly noted in the Study, because of the “pass through” aspects of the financing.
Under the Act, the economic feasibility study focuses on the revenue allocation aspects of the Agency’s financial model.
These financing models typically are for a longer period of time than the 20-year period set forth in the Act. However, these financing models do not involve revenue allocation funds,
but rather funds from the end users which provide a funding source for the Agency to continue to own and operate the facility beyond the term of the Plan as allowed by Idaho Code § 50-2905(8)
as those resources involve funds not related to revenue allocation funds.
505 Membership Dues and Support of Community Economic Development
The Act is premised upon economic development being a valid public purpose. To the extent allowed by the Law and the Act, the Agency reserves the authority to use revenue allocation
funds to contract with non-profit and charitable organizations established for the purpose of supporting economic development and job creation. Additionally, the Agency reserves the
authority to expend revenue allocation funds to join, participate and support non-profit organizations established to support Agency best practices and administration. The line item
of Operating Expenses within the Study shall be deemed to include expenditures for the purposes described in this section as may be deemed appropriate during the annual budgetary process.
600 ACTIONS BY THE CITY AND COUNTY
The City and County shall aid and cooperate with the Agency in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment of the purposes of this
Plan and to prevent the recurrence or spread in the area of conditions causing deterioration. Actions by the City and County may include, but not be limited to, the following:
a. Institution and completion of proceedings necessary for changes and improvements in private and publicly owned public utilities within or affecting the Project Area.
b. Revision of zoning (if necessary) within the Project Area to permit the land uses and development authorized by this Plan.
c. Imposition wherever necessary of appropriate controls within the limits of this Plan upon parcels in the Project Area to ensure their proper development and use.
d. Provision for administrative enforcement of this Plan by the City after development. The City, County and the Agency may develop and provide for enforcement of a program for continued
maintenance by owners of all real property, both public and private, within the Project Area throughout the duration of this Plan.
e. Building Code enforcement.
f. Performance of the above actions and of all other functions and services relating to public peace, health, safety, and physical development normally rendered in accordance with a
schedule which will permit the redevelopment of the Project Area to be commenced and carried to completion without unnecessary delays.
g. Institution and completion of proceedings necessary for the establishment of a local improvement district under Chapter 17, Title 50, Idaho Code, or a BID under Chapter 26, Title
50, Idaho Code.
h. The undertaking and completing of any other proceedings necessary to carry out the Project.
i. Administration of Community Development Block Grant funds that may be made available for this Project.
j. Appropriate agreements with the Agency for administration, supporting services, funding sources, and the like.
k. The waiver of any hookup or installation fee for sewer, water, or other utility services for any facility owned by any public agency, including any Agency facility.
l. Joint funding of certain public improvements, including but not limited to roadway improvements and/or improvements to sewer and water facilities.
m. Use of public entity labor, services, and materials for construction of the public improvements listed in this Plan.
n. The waiver of any city impact fee for development within the Project Area.
o. Assist with coordinating and implementing the public improvements in the Project Area identified in the Study.
The foregoing actions, if taken by the City, do not constitute any commitment for financial outlays by the City.
Actions by the County shall include, but not be limited to, entering into an agreement with the Agency and/or the City as may be necessary to make improvements to the portion of the
Project Area located within the boundaries of the County, to coordinate with the City on annexation proceedings, and to coordinate with the Agency and/or City on the establishment of
a community infrastructure district. The foregoing actions, if taken by the County, do not constitute any commitment for financial outlays by the County.
In addition to the above, other public entities shall aid and cooperate with the Agency in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment
of the purposes of this Plan.
601 Maintenance of Public Improvements
The Agency has not identified any commitment or obligation for long-term maintenance of the public improvements identified. The Agency will need to address this issue with the appropriate
entity, public or private, who has benefited from or is involved in the ongoing preservation of the public improvement.
700 ENFORCEMENT
The administration and enforcement of this Plan, including the preparation and execution of any documents implementing this Plan, shall be performed by the Agency and/or the City.
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW
Except for the nondiscrimination and nonsegregation provisions which shall run in perpetuity, the provisions of this Plan shall be effective, and the provisions of other documents formulated
pursuant to this Plan, shall be effective for twenty (20) years from the effective date of the Plan subject to modifications and/or extensions set forth in Idaho Code §§ 50-2904 and
50-2905(7). The revenue allocation authority will expire on December 31, 2046, except for any revenue allocation proceeds received in calendar year 2047, as contemplated by Idaho Code
§ 50-2905(7). The Agency may use proceeds in 2047 to complete the projects set forth herein. As stated in the Plan, any owner participation agreement or disposition and development
agreement obligations will cease as of December 31, 2046.
Pursuant to Idaho Code § 50-2914 the Agency may terminate an urban renewal plan containing a revenue allocation financing provision in accordance with the provisions of Idaho Code §§
50-2903(5) and 50-2909(4). Idaho Code § 50-2903(5) provides “[i]n the event that the [A]gency determines that current tax year revenues are sufficient to cover all estimated expenses
for the current year and all future years”, the Agency shall adopt a resolution of intent to terminate the revenue allocation area by September 1 in the year of termination. In order
to provide sufficient notice of termination to the affected taxing districts to allow them to benefit
from the increased budget capacity, the Agency will use its best efforts to provide notice of its intent to terminate this Plan and its revenue allocation authority by May 1, 2047, or
if the Agency determines an earlier terminate date, then by May 1 of the early termination year:
a. When the Revenue Allocation Area plan budget estimates that all financial obligations have been provided for, the principal of and interest on such moneys, indebtedness, and bonds
have been paid in full or when deposits in the special fund or funds created under this chapter are sufficient to pay such principal and interest as they come due, and to fund reserves,
if any, or any other obligations of the Agency funded through revenue allocation proceeds shall be satisfied and the Agency has determined no additional project costs need be funded
through revenue allocation financing, the allocation of revenues under Idaho Code § 50-2908 shall thereupon cease; any moneys in such fund or funds in excess of the amount necessary
to pay such principal and interest shall be distributed to the affected taxing districts in which the Revenue Allocation Area is located in the same manner and proportion as the most
recent distribution to the affected taxing districts of the taxes on the taxable property located within the Revenue Allocation Area; and the powers granted to the urban renewal agency
under Idaho Code § 50-2909 shall thereupon terminate.
b. In determining the termination date, the Plan shall recognize that the Agency shall receive allocation of revenues in the calendar year following the last year of the revenue allocation
provision described in the Plan.
c. For the fiscal year that immediately predates the termination date, the Agency shall adopt and publish a budget specifically for the projected revenues and expenses of the Plan and
make a determination as to whether the Revenue Allocation Area can be terminated before January 1 of the termination year pursuant to the terms of Idaho Code § 50-2909(4). In the event
that the Agency determines that current tax year revenues are sufficient to cover all estimated expenses for the current year and all future years, by May 1, but in any event, no later
than September 1, the Agency shall adopt a resolution advising and notifying the local governing body, the county auditor, and the State Tax Commission, recommending the adoption of
an ordinance for termination of the Revenue Allocation Area by December 31 of the current year, and declaring a surplus to be distributed as described in Idaho Code § 50-2909 should
a surplus be determined to exist. The Agency shall cause the ordinance to be filed with the office of the county recorder and the Idaho State Tax Commission as provided in Idaho Code
§ 63-215.
Upon termination of the revenue allocation authority of the Plan to the extent the Agency owns or possesses any assets, subject to the following paragraph, the Agency intends to dispose
of any remaining assets by granting or conveying or dedicating such assets to the City, unless based on the nature of the asset, disposition to another public entity is more appropriate.
As allowed by Idaho Code § 50-2905(8), the Agency may retain assets or revenues generated from such assets as long as the Agency shall have resources other than revenue
allocation funds to operate and manage such assets. Similarly, facilities which provide a lease income stream to the Agency for full retirement of the facility debt will allow the Agency
to meet debt services obligations and provide for the continued operation and management of the facility. For those assets which do not provide such resources or revenues, the Agency
will likely convey such assets to the City, depending on the nature of the asset.
900 PROCEDURE FOR AMENDMENT OR MODIFICATION
Modification of this Plan by City Council ordinance results in a reset of the base value for the year immediately following the year in which the modification occurred to include the
current year’s equalized assessed value of the taxable property in the revenue allocation area, effectively eliminating the Agency’s revenue stream as more fully set forth in Idaho
Code § 50-2903A subject to certain limited exceptions contained therein, including the exception to allow an amendment to support growth of an existing commercial or industrial project.
I.C. § 50-2903A(1)(a)(iv). As more specifically identified above, the Agency’s projections are based on estimated values, estimated levy rates, estimated future development, and estimated
costs of future construction/improvements. Annual adjustments, as more specifically set forth in the Agency’s annual budget, will be required to account for more/less estimated revenue
and prioritization of projects. Any adjustments for these stated purposes are technical and ministerial and are not deemed a modification under Idaho Code § 50-2903A(1)(a)(i).
1000 SEVERABILITY
If any one or more of the provisions contained in this Plan to be performed on the part of the Agency shall be declared by any court of competent jurisdiction to be contrary to law,
then such provision or provisions shall be null and void and shall be deemed separable from the remaining provisions in this Plan and shall in no way affect the validity of the other
provisions of this Plan.
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS
Under the Law, the Agency is required to file with the City and the State Controller’s office, on or before March 31 of each year, a report of the Agency’s activities for the preceding
calendar year, which report shall include certain financial information required under Idaho Code § 67-1076. This annual report shall be considered at a public meeting to report these
findings and take comments from the public.
Additionally, the Agency must comply with certain other reporting requirements as set forth in the local government registry portal, Idaho Code §§ 67-1076 and 50-2006(5)(c), State of
Idaho Controller’s Office, and Idaho Code § 50-2913, the tax commission plan repository, and Idaho Code § 50-2903A, the tax commission’s plan modification annual attestation. Failure
to report the information requested under any of these statutes results in significant penalties, including loss of increment revenue, and the imposition of other compliance measures
by the Madison County Board of County Commissioners.
1200 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES
All attachments and tables referenced in this Plan are attached and incorporated herein by their reference. All other documents referenced in this Plan but not attached are incorporated
by their reference as if set forth fully.
Attachment 1
Boundary Map of Urban Renewal Project Area and Revenue Allocation Area
Attachment 2
Legal Description of Urban Renewal Project Area and Revenue Allocation Area
Attachment 3
Private Properties Which May Be Acquired by Agency
The Agency has not identified any particular parcel for the construction of public improvements or for private redevelopment. Properties which may be subject to acquisition include parcels
to:
a) assemble with adjacent parcels to facilitate redevelopment;
b) assemble with adjacent rights-of-way to improve configuration and enlarge parcels for redevelopment;
c) reconfigure sites for development and possible extension of streets or pathways;
d) assemble for future transfer to qualified developers to facilitate the development of mixed-use, residential, commercial and retail areas; or
e) assemble for the construction of certain public improvements, including but not limited to streets, streetscapes, water and sewer improvements, environmental remediation/site preparation,
public parking, community facilities, parks, pedestrian/bike paths and trails, recreation access points, and other public facilities.
The Agency reserves the right to acquire any additional right-of-way or access routes near or around existing or planned rights-of-way.
The Agency reserves the right to acquire property needed to provide adequately sized sites for high priority projects for the development of public improvements (the exact location of
which has not been determined).
Other parcels may be acquired for the purpose of facilitating catalyst or demonstration projects, constructing public parking, constructing new streets or pathways, enhancing public
spaces, or to implement other elements of the urban renewal plan strategy and/or any master plan for the Project Area.
Attachment 4
Map Depicting Expected Land Uses and Current Zoning Map
of the Project Area
[Maps Will Be Inserted Upon Receipt]
Attachment 5
Economic Feasibility Study
Attachment 6
Agricultural Operation Consents
[Documents will be inserted upon finalization and receipt]
Attachment 7
Madison County Board of County Commissioners Resolution No. 531 (eligibility)
Attachment 8
Rexburg City Council Resolution No. 2025-12 (eligibility)
(Does not include the exhibits – see Attachment 7 for the Exhibits)
Attachment 9
Madison County Board of County Commissioners Ordinance No. _________
(Intergovernmental Agreement and Transfer of Powers Ordinance)
Attachment 10
Rexburg City Council Resolution No. _______
(Intergovernmental Agreement – Madison County)
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