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HomeMy WebLinkAboutWest Highway P&Z MemoMEMORANDUM To: Rexburg Planning and Zoning Commission From: Brad Cramer, Perspective Planning and Consulting, on behalf of the Rexburg Urban Renewal Agency Date: October 5, 2026 Re: Proposed West Highway Urban Renewal Plan Introduction In 2025, the Rexburg Urban Renewal Agency (RURA) began evaluating the creation of a new urban renewal area (URA) west of US highway 20 and north of University Boulevard. The Agency accepted the West Highway District Eligibility Report on October 15, 2025. Because the study area included unincorporated land, the Madison Board of County Commissioners (BOCC) also adopted the eligibility findings on October 27, 2025. The Rexburg City Council then found the area eligible on November 18, 2025 and directed RURA to prepare an urban renewal plan and revenue allocation area. After completion of the draft plan and accompanying Economic Feasibility Study, RURA approved the plan on September 16, 2026. The BOCC considered the plan on September 28, 2026. Before City Council consideration, Idaho Code §50-2008(b) requires that the plan be reviewed by the Rexburg Planning and Zoning Commission “for review and recommendations as to (the plan’s) conformity with the general plan for the development of the municipality as a whole.” The purpose of this memo is to outline how the proposed URA complies with this statute. Project Overview The West Highway Area encompasses approximately 840 acres, bounded by 1000 South, US Highway 20, 3000 West, and 2000 North. South 12th West is the main north/south route. Highway 33 runs east/west and connects the area to the rest of the City to the east. The area includes land within City limits and unincorporated land within the Area of City Impact (AOCI). Parcels outside the AOCI were included in the eligibility report, but removed from the final boundary. Lands within the boundary are generally undeveloped or transitioning from agriculture, but the general area includes a mix of developed residential and commercial uses. Commercial and office development is actively being developed in the central portion of the URA around the Highway 33/12th West intersection, where such development activity has been occurring since the early 2000s. There are new residential neighborhoods on the far north and south ends of the boundary. Madison High School and an elementary school sit just south of the area and are part of the University Boulevard Urban Renewal District. The primary barrier to development is infrastructure that individual developers cannot reasonably carry as well as a defective street network that doesn’t currently serve the growing traffic. There eligibility report also found areas of deterioration, the need to coordinate with the rest of the City’s street network, faulty lot layout, unsafe conditions, diversity of ownership, and conditions that generally slow development of the area. Specific items include: • A misaligned Highway 33/12th West intersection with limited right-of-way • Too many access points on Highway 33, creating conflict points near the curve west of the intersection with 12th West • Two-lane county road sections on 12th West with no curb, gutter, sidewalk or bike facilities near schools • An open canal parallel to 12th West that must be piped or relocated to widen the road • Regional sewer lift stations needed on both the north and south ends of the area. Conformity with the Comprehensive Plan Plan Rexburg: How We Live and Grow, the City’s 2023 Comprehensive Plan, organizes its policy direction into a Future Land Use Map (FLUM) and four plan implementation chapters. These implementation sections are summarized by charts focusing on goals, objectives and actions. This section evaluates the proposed West Highway Plan against both. Future Land Use Map The West Highway Area includes four FLUM designations as described on Map 5, page 53 of Plan Rexburg: Low Residential, Intermediate Residential, Commercial, and Open Space and Public Facilities. The map below shows where each designation is located in the study area. Note that since this map was created, the boundary has adjusted somewhat, but as of the writing of this report an updated boundary was not available. The development pattern assumed in the Economic Feasibility Study follow these designations. Residential areas were modeled at 4-units per acre for low density and 9-units per acre for medium density development. This matched existing conditions in developments near the study area. Commercial and mixed-use development is concentrated at the Highway 33/12th West intersection and along US 20, reflecting existing development patterns and zoning in that area. An important note is that an urban renewal plan does not modify the FLUM or zoning designations. Section 401 of the plan specifically states that no zoning rights are granted by the plan. All development must go through the same process as any project outside of a URA. While zoning dictates the types of uses that may occur, a URA enables those uses by funding the infrastructure needed to serve them. The West Highway Plan does not change what the FLUM calls for or zoning allows. Rather, it makes the FLUM’s vision achievable on a schedule that matches the area’s growth by supporting necessary infrastructure. Goals, Objectives, and Actions Plan Rexburg’s implementation tables on pages 38-46 are intended to “prioritize capital investments” and “leverage partnerships.” Nearly every project in the West Highway Plan implements a specific Plan Rexburg goal or action. How We Serve Our Community Goal or Action West Highway Plan Supporting Project Ensure that development occurs in a manner that is safe, that facilitates efficient delivery of public services, and does not outstrip available or potential capacities (pg. 38). The region infrastructure projects supported by the plan ensures the efficient delivery of utilities, safer roadways and intersections, and increased connectivity Implement financing programs to maintain and upgrade critical facilities and services (pg. 39) Tax Increment Financing (TIF) is intended to be used for these types of facilities in the West Highway Area Follow recommendations in the 2021 Wastewater Facilities Planning Study and the 2015 Water Facilities Planning Study (pg. 39) The West Highway Area plan supports facilities such as lift stations, a regional pressurized sewer line How We Grow our Community Goal or Action West Highway Plan Supporting Project Plan and facilitate purposeful growth patterns that promote efficiencies in infrastructure provision and advance quality of life for the Rexburg Community (pg. 41). The West Highway Area plan includes infrastructure that supports growth both within the boundaries and the surrounding region. It also identifies the need for expanded roadways and pathways to connect current and future residents with schools, goods, and services. Promote attainable, accessible, and quality housing options that meet the needs of all Rexburg residents (pg. 41). According to Plan Rexburg, Rexburg’s has the highest rate of cost-burdened renters, at 63%. Infrastructure that developers would otherwise pass into lot prices helps add housing supply across a range of densities. Ensure streets design and improvements consider both aesthetic and functional perspectives, including traffic control devices, signs, lighting medians, curb and gutter...pedestrian and bicyclist safety (p. 42). Streetscape enhancements, signage and wayfinding, signalization, and lighting area all eligible plan activities in the URA. How We Strengthen Our Economy Goal or Action West Highway Plan Supporting Project Convene Madison Economic Partners, State Economic Development Agencies, and the Urban Renewal Agency to assess grant opportunities, public-private partnerships, and infrastructure improvements that can support more economic development (pg. 44) TIF is a public-private partnership tool used within URAs. Ensure Infrastructure capacity is maintained and expanded to attract key businesses (pg. 44) Lift stations, water and sewer oversizing and roadway widening create the capacity for the rapid commercial and residential growth happening in the area. Align economic development and housing options (pg. 43) The West Highway plan supports commercial and residential development together, helping to provide necessary supportive infrastructure. Assess opportunities for expanding incentives for business growth and relocation (pg. 44) Because TIF assists with major infrastructure costs, it is a commonly used incentive tool to encourage growth in a particular area. How We Move Good and People Goal or Action West Highway Plan Supporting Project Facilitate, provide, and maintain transportation options that support economic development and enhance quality of life. (pg. 45) Projects identified in the plan include widening of roadways and intersections to support the increased traffic in the area and improve overall traffic safety. Improve safety, connectivity, and accessibility of sidewalks, bike lines, and trails to provide year-round active transportation to everyday destinations, like schools, parks, downtown, and places for work, worship, and shopping. (pg. 45) Lack of sidewalks connecting neighborhoods with nearby schools, goods, and services was identified as an eligibility condition within the URA. Projects include the addition of these pathways, increasing safety and connectivity to these neighborhood services. Conclusion and Recommended Action The proposed West Highway Urban Renewal Area aligns with Plan Rexburg by: • Funding the transportation, sewer, and water infrastructure necessary to serve growth efficiently. • Improving safe walking and biking routes to schools and extending the trail network along 12thWest. • Using RURA, public-private partnerships, and intergovernmental cooperation as recommended by Plan Rexburg. The Rexburg Urban Renewal Agency respectfully requests that the Planning and Zoning Commission find the West Highway Urban Renewal Plan in conformity with the Comprehensive Plan and forward that recommendation to the City Council. . Steps in Creating a New Urban Renewal Area and Revenue Allocation Area Steps in Creating a URA and Revenue Allocation Area If an urban renewal agency is in existence in in a community, the creation of an urban renewal area, including a revenue allocation area (required for use of tax increment financing), begins with an eligibility report for a designated area within the community. The central question for an eligibility report whether the study area has at least one of the statutory characteristics which must be found to be considered eligible for urban renewal activities. These characteristics or criteria are: 1. The presence of a substantial number of deteriorated or deteriorating structures and deterioration of site [50-2018(9), 50-2903(8)(b) and (8)(c), and 50-2008(d)(4)(2)], 2. Age or obsolescence [50-2018(8) and 50-2903(8)(a)], 3. Predominance of defective or inadequate street layout [50-2018(9) and 50-2903(8)(b)], 4. Outmoded street patterns [50-2008(d)(4)(2)], 5. Need for correlation of area with other areas of municipality by streets and modern traffic requirements [50-2008(d)(4)(2)], 6. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; obsolete platting [50-2018(9), 50-2903(8)(b) and (8)(c)], and 50-2008(d)(4)(2)] 7. Unsuitable topography [50-2008(d)(4)(2)], 8. Insanitary or unsafe conditions [50-2018(9), 50-2903(8)(b)], 9. Diversity of ownership [50-2018(9), 50-2903(8)(b) and (8)(c), and 50-2008(d)(4)(2)], 10. Tax or special assessment delinquency [50-2018(9), 50-2903(8)(b)], and 50-2008 (d)(4)(2)] 11. Defective or unusual conditions of title [50-2018(9), 50-2903(8)(b) and (8)(c), and 50- 2008(d)(4)(2)], 12. Existence of conditions which endanger life or property by fire and other causes [50- 2018(9), 50-2903(8)(b)], 13. Substantially impairs or arrests the sound growth of a municipality and is a menace to the public health, safety, morals or welfare [50-2018(9), 50-2903(8)(b) and 8(c)], 14. Conditions which retard development of the area [50-2008(d)(4)(2)], and 15. Results in economic underdevelopment of the area [50-2903(8)(b)] and economic disuse [50-2008(d)(4)(2)]. If it is determined the Study Area has characteristics which meet one or more of the statutory criteria listed above, the Agency may accept the eligibility report and request its consideration by the governing body. No URA can be formed unless the City Council adopts a resolution finding the area under consideration is deteriorated or deteriorating due to such characteristics, the redevelopment of the area is necessary for the welfare of the residents, and the area is appropriate for an urban renewal project. The resolution approved by City Council authorizes the Agency to prepare a plan for the proposed urban renewal area. The urban renewal area plan is to include the following with specificity: 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 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; Once the plan is prepared and approved by the Agency, it is forwarded to the City Council. Prior to the public hearing before the City Council, the City Council forwards the plan to the City Planning and Zoning Commission for its determination that the plan conforms to the City’s comprehensive plan. At least thirty (30) days prior to the public hearing, a copy of the notice and plan is distributed to the taxing entities overlapping the boundaries of the proposed district. After receiving the recommendation of the commission, and after notice fully published, the public hearing is held. The City Council must approve an urban renewal plan, including revenue allocation financing provisions, by an ordinance. If the ordinance is adopted by the City Council, a copy of the ordinance with legal description of the Revenue Allocation Area (RAA) is distributed to all the overlapping taxing entities, county officials and the State Tax Commission. By state statute, following adoption of the ordinance, the RAA is effective January 1, of the year in which it is adopted. The RAA has a maximum life of twenty years under Idaho statutes. The urban renewal agency implements the plan adopted by the City Council. Eligibility Report Summary of Findings Criterion Criterion Met Characteristics Supporting Finding Substantial deterioration of site No Most existing development is older residential homes, which are still in good condition. The site is also in generally good condition. Age or Obsolescence No Commercial development is newer and residential homes are still functional and in good condition. Predominance of Defective Street Layout or Inadequate Street Layout Yes There are issues with a misaligned intersection, and extreme challenges with widening 12th West. Outmoded Street Patterns Yes Too many access points create slower speeds than designed. Lack of bicycle and pedestrian infrastructure is not reflective of development patterns in the Study Area Need for Correlation of Area with Other Areas of Municipality by Streets and Modern Traffic Requirements Yes The main intersection of the Study Area, Hwy 33 and 12th West, is misaligned and very difficult to correct and widen due to lack of right-of-way. This is the main connection to Rexburg to the west. Faulty Lot Layout Yes Areas with existing housing would require platting to establish developable lots. Unsuitable Topography No Study Area is generally flat and challenges to development due to topography are limited. Insanitary or Unsafe Conditions Yes Too many access points along arterials creates unsafe traffic conditions. Lack of bicycle and pedestrian infrastructure on arterials is also unsafe. Diversity of Ownership Yes The area northwest of the Hwy 33 and 12th West intersection has multiple owners that make redevelopment challenging. Ownership along the arterials is diverse, making road widening difficult. Tax or Special Assessment Delinquency No Not reviewed Defective or Unusual Conditions of Title No Not reviewed Existence of Conditions Which Endanger Life or Property Yes Lack of bicycle and pedestrian infrastructure on arterials endangers life. Too many access points on arterials, especially near the curve in Hwy 33 creates overlapping points of conflict. Impairs or Arrests the Sound Growth of a Municipality Yes Major infrastructure in the Study Area is required to support development both within and without the boundaries. There are major challenges to constructing these necessary components. Retards Development of the Area Yes The challenges to development have or will slow growth due to extreme costs and lack of opportunity for cost sharing. Economic Underdevelopment and Economic Disuse Yes See above.