HomeMy WebLinkAbout007.28.15City of Chubbuck
Chubbuck Development Authority
July 28, 2015
5:30 PM
Minutes of the Chubbuck Development Authority quarterly meeting held at Chubbuck City Hall Council
Room, 5160 Yellowstone, July 28, 2015.
Vice Chairman: Gordon Wilks. Commission Members: Kent Kearns, Rick Keller, Steven Hadley, Dan
Heiner. Mayor: Kevin England. Executive Director: Steven Smart. Clerk: Richard Morgan. Assistant Public
Works Director: Rodney Burch. Attorney: Tom Holmes. Secretary: Ranelle Simmons.
Vice-chairman Wilks called the meeting to order at 5:35 pm.
1. APPROVAL OF MINUTES: for April 28, 2015
Heiner moved the minutes of April 28, 2015, be approved as mailed; Kearns seconded. All voted to
approve.
2. REVIEW AND CONSIDER FOR APPROVAL THE URBAN RENEWAL PROJECT AND PLAN FOR THE
PINE RIDGE MALL.
Commission was supplied with the Pine Ridge Mall Urban Renewal Area and Improvement Plan that was
prepared by Farmer Holding and the City.
Smart stated that Farmer Holding has identified in attachment 5 they are anticipating 11.7 million
dollars of improvement to the Pine Ridge Mall that could be eligible for approval and reimbursement
through CDA. In attachment 7 the estimate of value that will be added to the mall is 8.8 million that
would produce a tax increment for use by CDA to reimburse those improvements. The calculation
assumes the same levy rate throughout the entire 20 year period.
Rob Kingsbury from Farmer Holding reminded the board of how their company takes a project and
makes it successful. Kingsbury explained how they have improved Capital Mall in Jefferson City, MO and
they intend to do the same thing here. There are national retailers that are expressing an interest.
Kingsbury is very optimistic about the future. Valuation in 1 year going from 24 million to 45 million will
be able to happen if aesthetics are improved so retailers will want to come to the Pine Ridge Mall.
Keller wanted to know if the proposal is everything they need and want. Kingsbury feels strongly that
the plan will work and everyone needs to be comfortable with it. Farmer Holding is very excited that
Panera Bread is going up.
Smart shared with the board a report that shows the deterioration of the mall. Also explained that the
city council sees the value of the project and plan and would like to move forward. The Land Use and
Development Commission and City Council will also review and vote on the adoption of this plan. There
will be a public hearing at the council level. All of the nine taxing jurisdictions will be invited to the public
hearing. An ordinance will need to be adopted which will create this specific urban renewal area for this
project. The goal is to have the ordinance adopted by the end of the year.
Wilks is concerned with how CDA will get their money back.
Heiner explained it is not a stretch to see the numbers go up the way they have projected from 2015 to
2016. Farmer Holding will invest 18.6 million in the mall with a 23 million dollar increase in the value.
This is actual cost, if you talk about appraised value, most of the time when you build a structure there is
more value than what the actual cost is.
Smart stated the tax increment will come in based on the increase in valuation and that tax increment is
the only thing that CDA has to work with for reimbursement back to Farmer Holding. We will reimburse
back only what we collect.
Heiner went on to explain if the increment is impaired Farmer Holding will not get the reimbursement
that they are planning on.
Kearns concurs and is glad the CDA money will be spent on infrastructure.
Wilks entertained a motion. Kearns proposed to accept and approve the Urban Renewal Area and
Improvement Plan for the Pine Ridge Mall. Keller seconded. All voted in favor.
3. REVIEW STATUS OF 2015 CONSTRUCTION PROGRAM
Smart gave the board a review of the construction program on a spread sheet. Allstate was paid $28,750
and the budget for their payment was $650,000. When they produced their employment records they
were penalized all but the $28,750. They were paid in early May. Next year another aspect of the
contract will begin and that is reimbursement for difference in lease value from our area and the other
competing area. The city is beginning to receive data supporting that part of the contract.
Whitaker Road Reconstruction Project is moving along nicely. DePatco is 2 % weeks ahead of schedule.
The budget for the project is 1.3 million and the bids came in at just over $820,000. With change orders
the project will likely come in under $ 900,000. The first pay estimate from DePatco should come in
soon.
Mayor was told the Tiger grant results for the Siphon interchange will come in in September.
ITEMS FROM BOARD
Mayor informed board regarding Auditorium District Event Center that they cannot get funding. Hadley
is on the Auditorium District board and informed the commission that at this point they are looking for
someone to finance the building. Grace Lutheran will build the building for them according to Don Zebe.
Mayor let board know this is Steve's last meeting and thanked him for his 37 % years of service to the
city.
ADJOURN: Wilks entertained a motion. Move made by Heiner to adjourn. Kearns seconded. Meeting
was adjourned at 6:20 pm.
NEXT MEETING: October 27, 2015
Gord ilks, Commission Vice- Chair Ranelle Simmons, Secretary