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Home My WebLink About09 21 1993 Special CM163 COUNCIL MEETING MINUTES September 21, 1993 Minutes of a special meeting held at the city municipal building, September 2ist., i993. Present: Mayor John O. Cotant, Council members Leroy S. Quick, Steven M. England, David A. Landon, W. Dean Wood, Attorney Thomas J. Holmes, Public Works Director Steven M. Smart and City Clerk Ron C. Coniin. Meetiag was called to order at 7:35 p.m. by Mayor Cotant. PURPOSE OF MEETING is to discuss I) Intergovernmental transfer of fire truck. 2) Five Star Group Apartments proposal. CONTRACT FOR iNTERSOVERNMENTAL TRANSFER OF PERSONAL PROPERTY - Mayor Cotant read the Contract for intergovernmental Transfer of Personal Property. Mayor Cotant read the intergovernmental Transfer of Personal Property Agreement in full. Councilman Landon moved to direct Mayor Cotant to sign the Intergovernmental Transfer of Personal Property Agreement. Councliman Wood seconded. Ail council members voted in favor of the motlon. FiVE STAR GROUP APARTMENTS PROPOSAL - Kip Jardine, President, FSG Capital Corporation was present to present his proposal. Dr. David Peck, School District #25 was present. Mr. Jardlne stated, to the north of Pine Ridge Mall there is approx, a 2~ acre piece of property, they would like to develop a 32~ unit apartment complex. Mr. Jardine explained the apartment complex will be of the highest quality. Mr. Jardine passed to Dr. Peck, Mayor Cotant and Council several plumbing fixtures, pictures of appliances, etc. Mr. Jardine said, the apartment complex will be a gated community. Mr. Jardine explained the Tax increment Pro Forma that in forty years $34,~00,~. in taxes is assessed without tax increment. With the tax increment, based upon the formula we have proposed, Chubbuck and the school district will receive $i~,6~,0~, of that amount(which averages $265,~6. annually) and their project would receive S23,~0~,0~. in tax relief. Mr. Jardine felt the property tax in Idaho is way to high, as compared to Utah, and states in area. FIVE 165 STAR GROUP APARTMENTS PROPOSAL - (cont.) Attorney Holmes stated there is a limitation in Idaho on how much we can subject to tax increment financing, Attorney Holmes thought it might be $i2,~.~. in the City of Chubbuck. Mr. Jardine said he thought the formula used is incorrect, Mr. Jardine said the i~% cap applies to the year prior to the Chubbuck Development Authority, it is not based upon how much you can have inside the Authority, but, you cannot set aside mo~e than the i~% tax base in the redevelopment authority. Mr. Jardine said he has his people working to make sure this is correct. Mr. Jardine stated, if there is a i~% cap, it will kill the project. Mr. Jardine said the least expensive unlt will be, approx. S48~.~ per month. Councilman Wood expressed concern of what happens to Bannock County's share of property taxes normally collected. Mr. Jardine stated, as presented, Bannock County will not get taxes. Mr. Jardine said, if the project cannot be financed, we are wasting time, because the project will not go. Mr. Jardine said a gated community adds a secure environment for residents living inside. Mr. Jardine felt there would be a very limited need for police services in the complex. Dr. Peck, School District #25 asked when the project will be ready for occupancy. Mr. Jardine said if everything goes as projected, the project wlil be ready in 1995. Mr. Jardine told Dr. Reck there probably will not be more than 16% of occupants with school aged children. Dr. Peck stated, with the estimates he has received, It if difficult to see what impact the project would have on the School District, its not sure whether residents would move from one home in the area to the apartments, or would they move from out of town. Dr. Peck said any impact at all would hurt the school d/strict because of the over load now. Dr. Peck said he did not think the impact of the project would affect the School District either way. Dr. Peck stated there are a couple of board members that mlght look at this different than he does, Dr. Peck will get more information from Todd Hong, SICOG, then present it to the FIVE STAR GROUP APARTMENTS 167 PROPOSAL (cont.) ~ School Board the second Tuesday in October, Dr. Peck requested any updates in the proposal be sent to him as soon as possible. Dr. Peck said after presenting the proposal to the board, the School Distrlct wlil present a position statement, It was suggested the proposal be presented to Bannock County for their feelings. CouncJiman England felt we should involve Bannock County, but was in favor of proceeding with next step of finding out iegailty of cap. Attorney Holmes sald the Clty might face some stlff criticism about giving $23,~e~,~. in tax relief to a commercial project. ~ Discussion about water and sewer line improvement down Hawthorne Rd. Mr. Jardine stated they will help with water and sewer line improvements. Wlii be discussed at a later date. Discussion about sanitation pick-up at the proposed apartment building. Will be discussed at later date. Mr. Jardine stated there are only $i,20~.~ in property taxes being generated on the property now. Mr. Jardine stated his group cannot take any less than the $23~337,i16. tax deduction over the 49 years. Mr. Jardine said, if he can get a consensus from Mayor and Council, he will proceed with next step on the project. Council was in consensus, Mr. Jardine proceed with ge%ting regulations on Chubbuck Development Authority from the State. Mr. Jarlne will be in contact with Attorney Holmes. ~_~. At l~:~ p.m., seconded, with full Councilman England moved, Council Quick council approval to adjourn meeting. /John 0 cotant, Ma~or Ron C. Conlin, Clty Clerk/Treasurer CALL OF SPECIAL MEETING CITY OF CHUBBUCK Pursuant to Idaho Code Section 50-6~4, the undersigned Mayor of the City of Chubbuck, Idaho, hereby calls a special meeting of the City Council to be held at the Chubbuck Municipal Building, at the hour of 7:30 p.m., on Tuesday, the 21st. day of September, 1993. The ob3ect of the special meeting is to discuss 1. Proposed Intergovernmental Transfer of fire truck. 2. Five Star Group Apartments proposal. ~0. Cotant, Mayor NOTICE OF SPECIAL MEETING TO: MAYOR AND COUNCIL OF TEE CITY OF CHUBBUCK, IDAHO. Pursuant to the call set forth above, notice is hereby given of a special meeting of the Chubbuck City Council at the time and place, and for the ob3ect, recited in the call. Ron C. Conlin Chubbuck City Clerk ACKNOWLEDGEMENT OF NOTICE The undersigned, Mayor and members of the Chubbuck City Council hereby acknowledge receipt of notice of the special meeting /~ s et4 forthz~bove. _Ler°y S-/Quick//~Cou~cllmember St~V~en ~7 Englasd,/ ~ou~cll~'ember PRO FORMA T65320IC TAX INCREMENT Years 1 2 3 4 5 6 7 8 9 10 Assessed 103.000% $17 i60 000 ~ ~ 800 18 205 044 18 751 195 19 313 731 19 893 143 20 489 937 21 104 636 21 737 775 22 389 908 196,720,169 11 12 13 14 15 16 17 18 19 20 23,061,605 23,753 453 24,466 057 25,200 039 25,956 040 26,734 721 27,536 762 28,362 865 29,213 751 30,090 164 264,375,457 21 22 23 24 25 26 27 28 29 30 30,992,869 31,922.655 32,880.334 33 866.745 34 882.747 35 929229 37 007106 38 117 319 39 260 839 40 438 664 355,298,507 31 32 33 34 35 36 37 38 39 40 41,651,824 42,901,379 44,188,420 45,514,073 46,879,495 48,285,880 49,734,456 51,226,490 52,763,284 54,346,183 477,491,484 $1,293,885,617 Real 2. 529% $433,942 446,960 460,369 474,180 488,406 503,058 518,150 533,694 549,705 566,196 4,974,660 583,182 600,677 618,698 637,259 656,376 676,068 696,350 717,240 738,757 760,920 6,685,527 783 748 807 260 831 478 856 422 882 115 908 578 935 836 963 911 992,828 1,022,613 8,984,789 1,053,291 1,084,890 1,117 437 1,150,960 1,185,489 1,221~053 1,257.685 1,295.415 1,334.278 1,374306 12,074,805 $32,719,779 Personal 0.100% $17 160 17 675 18 205 18 751 19r314 19~893 20.490 21.105 21.738 22.390 196,720 23,062 23 753 24 466 25 200 25 956 26 735 27 537 28 363 29 214 30 090 264,375 30,993 31,923 32,880 33,867 34,883 35,929 37,007 38,117 39,261 40,439 355,299 41,652 42 901 44 188 45 514 46 879 48 286 49 734 51 226 52 763 54 346 477,491 $1,293,886 Total Prop Tax $451102 464 635 478 574 492 931 507 719 522 951 538 639 554,799 571,443 588,586 5,171,380 606,243 624,431 643,164 662,459 682,332 702,802 723,886 745,603 767,971 791,010 6,949,902 814 , 741 839,183 864,358 890,289 916,998 944 , 508 972,843 1,002,028 1,032,089 1,063,052 $9,340,087 1,094,943 1,127 791 1,161 625 1,196 474 1,232 368 1,269 339 1,307 419 1,346 642 1,387 041 1,428 652 $12,552,296 $34,013 , 665 School 14.236% $64,219 66,145 68,130 70,174 72,279 74,447 76,681 78,981 81,351 83,791 736,198 86,305 88~894 91.561 94.308 97.137 100.051 103.052 106.144 109.328 112.608 989,388 115,986 119,466 123 050 12~ 742 130 544 134 460 138 494 142 649 146 928 151 336 1,329,655 155,876 160,552 165,369 170,330 175,440 180,703 186,124 191,708 197,459 203,383 1,786,945 ~4,842,185 City 17.153% $77,378 79,699 82,090 84.553 -87.089 89.702 92393 95 165 98020 100960 887,047 103,989 107,109 110,322 113,632 117,040 120,552 124,168 127,893' 131,730 135,682 1,192,117 139,752 143,945 148,263 152,711 157,293 162,011 166,872 171,878 177,034 182,345 1,602,105 187,816 193 450 199 254 205 231 211 388 217 730 224 262 230 989 237 919 245 057 2,153,095 $5,834,364 State 0.OO0% $o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $o Five Star 68. 611% $309,506 318,791 328,355 338,205 348,351 358,802 369,566 380,653 392,072 403,835 3,548,135 415,950 428,428 441,281 454,519 468,155 482,200 496,666 511,566 526,913 542,720 4,768,397 559,002 575 772 593 045 610 836 629 161 648 036 667 477 687 501 708 127 729 370 6,408,327 751,251 773.789 797 003 820.913 845 540 870.906 897034 923 945 951 663 980 213 8,612,256 $23~337,116