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HomeMy WebLinkAbout10 11 1994 Special CMCOUNCIL MEETING MINUT~,S October 11, 1994 Minutes of a Special Meeting held at city municipal building, October 11, 1994. Present= Mayor John O. Steven M. England, Thomas J. Holmes, Conlin. Cotant, Council members Leroy S. Quick, W. Dean Wood, Marvin C. Gunter, Attorney PWD Steve Smart and City Clerk Ron C. Meeting was called to order at 6:10 p.m. by Mayor Cotant. PURPOSE of meeting shall be to discuss additional subdivision located within tax financing district. CHUBBUCK DEVELOPMENT AUTHORITY REPORT - Todd Hong, SICOG was present to present a report on the Chubbuck Development Authority. Mr. Hong asked from the council what direction they want to take in the future. Mayor Cotant suggested the CDA District be expanded to include tax increment monies to install parks where needed, also upgrade parks in the following subdivisions. Bunce Subdivision - North Area. Ramsgates Area Area south of Briarwood - Develop a park. Bicentennial Park - Relocation of shelter and a walkway between Lariat and Eve St. Vera Armstrong Park Cotant Park Stuart Park Espie Subdivision Mayor Cotant suggested tax increment monies be used to pipe the Hawthorne Canal. PWD Smart stated, Gerd worked up some cost estimates on piping the Hawthorne Rd. Canal. PWD Smart said the estimated t h e cost to be $750,000. to $800,000. Mr. Hong suggested the tax increment monies be accumulated, then put to the priority projects. Mr. Hong said the monies will come in for thirty years. CHUBBUCK DEVELOPMENT AUTHORITY REPORT - cont.) 219 On August 16, 1994 with Mayor Cotant's signature, we officially requested a written estimate of funds to be distributed to CDA. There has been no response as of yet. Mayor Cotant suggested meeting with Bannock Collnty~ Commissioners and School District Representatives to explain the plans. Discussion about creation of smaller tax financing districts with limited time limits, to address needs of the parks located adjacent to existing, or proposed subdivisions. This approach may not attract as much negative attention from the County and School District. Mayor Cotant suggested including subdivisions not within the existing boundaries to address the park improvements issue, CDA Staff Representative Hong suggested the CDA Board concentrate on the canal issue at this time, as future subdivision development can be captured next year with new districts. Council was in consensus to proceed with the canal pro3ect, with consideration to be given to including the Paradise Acues area in the plan amendments. Mr. Hong stated he will work with PWD Smart, to consider the realignment of the CDA Boundaries. At Discussion about realigning of CDA Boundaries. 7:20 p.m. Councilman Quick moved, Councilman Gunter seconded, with full council approval to ad3ol]rn meeting. Ron C. Conlln, City Clerk CALL OF SPECIAL MEETING CITY OF CHUBBUCK Pursuant to Idaho Code Section 50-604, the undersigned Mayor of the City of Chubbuck~ idaho~ hereby call~ a special maeting of the City Council to be held at the Chubbuck Municipal Building, at the hour of 6:00 p.m., on Tuesday~ the i. ith. day of Octmbe~ 1.9q4. The object of the special lncrementatlon wlth Todd Hong, Dar e ~ meeting shall be discuss tax [ John O. Cotant~ Mayor NOTICE OF SPECIAL MEETING TO: MAYOR AND CO~qCIL OF THE CITY OF CHUBBUCK, Pursuant to the call set forth above, notice is of a special meeting of the Chubbuck city Council at place, and for the object, recited in the call. Ron C. Conlln, Clty Clerk iDAHO hereby given the time and ACKNOWLEDGEMENT OF NOTICE The undersigned, Mayor and members of the Chubbuck CJ. ty Council hereby acknowledge receipt of notice of the special meeting /~ set forth ~J~ohn O. Cotant, Leroy ~ Qu~.c~/~Counclimember w. uean Wood, Councilmember Chubbuck Development Authority Report for the Period Ending October 1, 1994 Background: CDA Staff has been gathering data as requested by Tom Holmes, CDA Legal Counsel, in regards to impacts of either broadening the existing boundaries of the CDA Tax Financing District, or creating a new district under CDA, to include subdivisions located adjacent to or near the Hawthorne Road/Siphon Road Canal areas. The purpose of this would be to direct tax increment funds towards the possible construction of some kind of covering over the canal to mitigate safety hazards, and adding additional safety barriers between vehicle traffic and the canal. Activity: During the months of August/September, staff has researched existing property values for the following subdivisions already located within the existing tax financing district - Misti Manor, Briarwood, Hiline Heights, and Mountain Park. CDA should be seeing the effects of the improvements made in these subdivisions as improved properties/houses are added to the tax base; if60 homes are built during 1994 as projected, the net increase CDA should see would be approximately $ 44,000 in 1996, with incremental increases annually for the next several years. An additional 142 homes are projected to be built in these subdivisions during the period 1995- 1998; if this comes to fruition, CDA could see up to approximately $102,872 in the year 2000, again with incremental increases annually. These estimates are based on homeowners exemption rule of taxing the first $50,000 ora house's value, as well as including the annual payment made from tax increment funds to School District No. 25, as required by Idaho code. Related CDA Activities: On August 16 of this year staff drafted a letter for Chairman Cotant's signature, officially requesting a written estimate of funds to be distributed to CDA as a result of CDA activities. As of today's date (October 11), Shelley Shannon, County Treasurer, has not forwarded a written response; she has, however, spoken with both staff and Ron Conlin since the letter was sent to her office, and conversation with her earlier today will result in a written response to Chairman Cotant. Planned Staff Activity: For the convenience of CDA board members, staff will from now on produce a monthly report to keep you abreast of activities related to CDA. In addition, Chuck Prince will assume a larger share ofCDA staffactivity, as Todd Hong has been re-assigned to other duties within SICOG. Chuck has extensive tax increment financing experience, and should be a valuable resource for CDA. Todd will continue with CDA until the transition has been completed. Staff Reminder to CDA: Carolyn Meline's term on CDA expired in May; she, or a representative of Bannock County government, should be appointed to a two year term, expiring May 31, 1996. In addition, a member of the City Council should be appointed t6 finish out David Landoffs term, which became open on David's departure from the Chubbuck area. Chubbuck Development Authority: Additional Subdivision Activity Discussion Background: As indicated in the staffs monthly report, CDA already has four subdivisions located within its tax financing district; CDA can reasonably expect to receive up to $44,000 from improvements made within these subdivisions by 1996, and up to $102,872 by the year 2000. New issue: Tom Holmes has requested staff assistance in determining the effect of adding additional subdivisions within the existing tax finance district, or perhaps creating a district encompassing some subdivisions located near/adjacent to Hawthorne Road's canal. Staff has consulted with Steve Smart in order to identify the location of said subdivisions in the target location near Hawthorne Road. Steve identified Espie and Cottage Grove as fitting the location criteria, along with a new, previously unidentified subdivision located adjacent to Cottage Grove (tentatively called the Nelson Subdivision). In addition, Steve also noted that land located above Cottage Grove and Nelson would soon be opened for development, and should be included in any discussion concerning expansion of the district. The financial impact on CDA if these subdivisions were to be included in CDA activities would be as follows: 1996 Impact: 35 homes x $ 50,000 = $1,750,000 x .024089 = $ 42,156 - $16,800 -- $ 25,356* 2000 Impact: 82 homes x $ 50,000 = $4,100,000 x .024089 -- $ 98,765 - $ 39,360 = $ 59,405** * based on 1993 levy rate of .024089, and school payment of valuation rate x .0096 (1,750,000 x .0096 = $16,800). ** same as above, using projected no. of homes to be built at Espie and Cottage Grove (52), plus 30 homes to be built in Nelson/unnamed subdivision, between 1995-1998. Options: Tom's ultimate question, beyond the financial impacts of including the additionaI subdivisions within CDA's purview, is how to include the subdivisions - expand the existing district's boundaries, or creating a new district? To do either, CDA would have to follow a similar process to either amend the existing CDA plan to include a larger tax financing district, or create a new plan/district. Both require resolutions by the City Council - one, to amend the plan and its activities, the other, to declare the new district as deteriorating and in need of tax increment-related activity to mitigate health/safety issues. Both would require public hearings/notices; both would require notice sent to tlie county's taxing entities. Because we have the ordinances and resolutions on record for the original CDA action, amending them to meet either course of action (amend existing plan v. creating new plan/district) would be fairly simple. Costs to do either would be virtually the same as far as publication of notices are concerned; a "political" question to consider is how the county commission will react to expansion of the existing district versus the creation of a new district. Page Two A tentative time frame for option to amend would be as follows: Chubbuck Development Authority develops an amended Urban Renewal Plan for the renewal area, which includes a Revenue Allocation Financing Provision for the Revenue Allocation Area. The Allocation Provision must include: kind, number and location of public works in the Allocation Area an economic feasibility study detailed list of estimated project costs - fiscal impact on the taxing districts in the allocation Area - method and tirmng of financing This can be accomplished within a two to three week period, given that we have the cost estimates for what you'd like to do with the canal. CDA submits the amended plan to Chubbuck City Council for review - second City Council meeting date of October (October 25), or first Council meeting of November (November 8). City Council can commence reading of ordinance adopting amended Urban Renewal Plan at this time, and continue to address the ordinance on consecutive Council meetings (November 8 and 22, December 13, depending on date of first reading). The City Council sets a Public Hearing date, sends copies of the amended Plan to the affected taxing districts, and refers the amended Plan to the city Planning and Land Use Commission for its recommendation concerning the amended Plan's conformance with the city's Comprehensive Plan - second Council meeting of October, or first Council meeting in November. The City Council prepares a Public Notice stating: - an amended urban renewal plan is being considered for an urban renewal district which will cause the increased property taxes to be allocated to the Chubbuck Development Authority the scope of the project Public Hearing before the City Council will be held to determine whether the Urban Renewal amended plan will be adopted by ordinance date for final reading of ordinance (must be at least 30 days, but not more than 60 days, after the publishing of the Public Notice). This can occur at the second October Council meeting, or first Council meeting of November. The City Council then: publishes the Public Notice at least once in the newspaper Page Three transmit the Notice fo the governing body of each affected taxing district located within the Allocation Area. The City Council holds the Public Hearing; proposed dates for hearing is November 29, which is not a regularly scheduled Council meeting, or December 13, which coincides with first December Council meeting. The City Council enacts the Ordinance adopting the Urban Renewal Amended Plan for the Urban Renewal Area containing the Revenue Allocation Financing Provision for the Revenue Allocation Area, and the Revenue Allocation Financing Provision becomes effective retroactive to January 1 of this year~ Ordinance must state that the City Council finds: a feasible method exists to relocate persons dislocated as a result of the project the Plan conforms to the city's Comprehensive Plan the Plan provides for adequate park and recreation facilities , - the Plan affords maximum opportunity for private redevelopment in the Urban Renewal Area. The Urban Renewal Amended Plan is in full force and effect on the effective date of the Ordinance. As soon as is practical after the effective date of the Ordinance the City Clerk transmits: a copy of the Ordinance the legal description of the Allocation Area the map of the Allocation Area to the County Auditor, County Assessor, the governing body of each of the taxing districts in the Allocation Area, and the State Tax Commission. If CDA chooses to create a new Allocation Area/Tax District the following steps would need to be accomplished prior to and in addition to the above steps: The City Council passes a Resolution declaring a new Urban Renewal Area (URA). The resolution must state: area deteriorating or deteriorated area appropriate for an urban renewal project specific area designated and defined City Council authorizes continued funding for CDA to prepare any amended urban renewal plan. Page Four Assignments: Given that there will be no substantial opposition to the Plan's amended activities, completion of all required activities for amendment should, be-the date of the Ordinance's adoption, no later than December 13. Staff`will then prepare transmittal letters to all taxing districts, the County Auditor and Assessor, and the State Tax Commission. Staff can prepare ordinances and resolutions for review by CDA/City Counsel prior to action by the City Council. Staffwill also prepare all amendments to the Plan as directed by CDA Board. Staff? requests that the city engineering department prepare, or have prepared, a cost estimate for the work you want accomplished with the additional funding CDA should receive. Staff will obtain the property value information for the Espie and Cottage Grove subdivisions to determine actual financial impact. By the October 25 Council meeting this information should be combined and ready to include in an amended plan. Funding: Staff? advises CDA at this time to deposit CDA funds into some kind of saving~s instrument, rather than approving a bond, until a steady stream of funding comes to CDA from the County's collection of tax funds; this safe guard's CDA until the steady stream has been identified over a period of time. INCREMENTAL FINANCING 1~ Bunce sub-division Northern Area o 10o Ao Park (Does not now exist) 1. Use flood zone west of present B. Fmry's Park street Develop completely a. Grass b. Natural area sprinkler system and plants Ramsgate area A. Complete Bistline B. Area not tied into Parrish could become a park. Area south of Briar Wood develop a park Bicentennial Ao Relocation of shelter. Need to consider residents Bp Possible walkway between Lariat and Eve to park. Kay Park should be Mary Harker park on city map. Vera Armstrong Park (Plaque on all parks identifying who Ao Enlarge to Gloria B. Enlarge Shelter Heritage A. Utilize funding to complete park Cotant Utilize Marshall and Misti Manor 1. Sprinkler system Jog and walk path 2. Purchase land from school district 3. Marshall area park develop shelter Stuart A. Nelson and North of Church could be utilized to develop Stuart. Roof on pavilion Espie Ao Develop Park Bo Cover canal Co Espie, Nelson, North of Church to develop Adams through to Hawthorne. Cross canal after canal is covered° Southeast Idaho Councit oct 7 280 South Arlhur of Governments, Inc. FAX (208) 233-4841 October 12, 1994 John O. Cotant, Jr., Chairman Chubbuck Development Authority 5160 Yellowstone Chubbuck, Idaho 83202 Re: Recap of October 11 CDA Meeting Dear Mr. Cotant: Enclosed is a written recap of last night's CDA meeting; I have re-created the events of the evening as best I could, and some items may not be 100% accurate, but should be pretty close. I will be working with Steve Smart to consider the re- alignment of the CDA boundaries; I should mention here that the district's boundaries cannot include more than 10% of the city's total' property value - this will affect the Board's decision in what to include in the amended boundaries, and what not to include. This may cause us to reconsider creating the smaller districts to include the subdivisions and parks as discussed - as soon as Chuck and I get the financial information we need, we'll pass it on to you. Please call me if you need to discuss any items the proposed changes in CDA. Th?ks, ~____~/ CDAS~ ~ Todd Hong ~ concerning CC: Tom Holmes w/enclosure Steve Smart w/enclosure Chubbuck Development AuthoriD,: Recap of October 11, 1994 Meeting The Chubbuck Development Authority (CDA) met on Tuesday, October 11, at 6 PM at the Chubbuck City Hall Council Chambers. In attendance were John O. Cotant, Jr. , Leroy Quick, Dean Wood, Steve England, Marvin Gunter, Steve Smart, Tom HoImes and Todd Hong. John O. Cotant, Jr, CDA Chairman, opened the meeting by' reviewing a list of priorities he had created. The list indicated his desire to use increment financing to improve existing and proposed parks within the city', particularly, those adjacent to housing subdivisions. Another major priority was the canal located alon~ Hawthorne Road between James Street and Siphon Road The canal is uncovered, posing a safety/hea~th risk to both pedestrians and vehicles, and CDA/City Council officials want to enclose the canal as much as available funding will allow. Steve Smart, Chubbuck City .Engineer, presented a cost estimate for covering the canal as mentioned; according to calculations made, the project would cost approximately $700,000. Steve indicated that this estimate appears iow, and that it would be safer to increase the estimate to approximately $800,000 to include some contingency funds Todd Hong, CDA Staffrepresentative, reviewed some information with CDA members concerning the amendment process for the Urban Renewal Plan, and requested some definitive direction from CDA in terms of firm priorities in order to proceed with any modification to the existing plan. Todd also noted that Bannock County Clerk, Shelly Shannon, will be forwarding a written response to the August 16, 1994 letter sent to her from Chairman Cotant; the letter requested a written estimate of funds to be disbursed to CDA from the collection of 1993 property taxes. The remainder of the meeting centered around the options available to CDA in either changing the existing tax finance district boundaries, create new districts, or do a combination of both. Chairman Cotant suggested that the existing boundaries could be expanded to include the Espie, Kasiska. Cottage Grove and Nelson subdivisions; these subdivisions could provide tax increment income that could be used to mitigate the Hawthorne Road canal issue In addition, Cotant indicated a preference to include existing subdivisions not yet included in the tax financing district so that increment financing could be used to improve the city's parks and recreation areas. This could be done by having the tax finance district's boundaries be coterminous with the city's boundaries; this approach, however, may appear to be too ambitious for acceptance by Bannock County and School District No. 25 officials. Mention was made towards the creation of smaller tax financing districts with iimited time limits to address the needs of the parks located adjacent to existing or proposed subdivisions The aim here would be to create a small district with set terms (2-4 years) to bring in enough tax increment financing to purchase park equipment, and upgrade the facilities. Todd suggested that this could be done on a rotating basis - establish a small district each year for the next two to three years, whose life expectancy would stop on a similar rotating basis. This approach may not attract as much negative attention from the county. CDA board members and staffdiscussed the two options at treat len~h, noting the "pros" and "cons" involved with either approach. V~hen asked for a decision, Chairma~ Cotant reiterated his desire to include subdivisions not within the e.xisting boundaries to address the park improvement issue: Hong suggested that the CDA Board concentrate on the canal issue at this time, as future subdivision development could be captured next year with new districts. Board consensus was to proceed with the canal project, with consideration to be given to including the Paradise Acres area in the Plan amendments. The meeting adjourned at 7:30 PM.