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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