HomeMy WebLinkAbout2019-008 Amended T.I.F. Eligibility Study West of I-15RESOLUTION NO. Z011-00
BY THE COUNCIL:
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF CHUBBUCK,
IDAHO, DETERMINING A CERTAIN ADDITIONAL AREA WITHIN THE
CITY TO BE A DETERIORATED AREA OR A DETERIORATING AREA AS
DEFINED BY IDAHO CODE SECTIONS 50-2018(9) AND 50-2903(8);
DIRECTING THE URBAN RENEWAL AGENCY OF THE CITY OF.
CHUBBUCK, IDAHO, ALSO KNOWN AS CHUBBUCK DEVELOPMENT
AUTHORITY TO COMMENCE THE PREPARATION OF AN URBAN
RENEWAL PLAN SUBJECT TO CERTAIN CONDITIONS, WHICH PLAN
MAY INCLUDE REVENUE ALLOCATION PROVISIONS FOR ALL OR
PART OF THE AREA; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council ("City Council") of the city of Chubbuck ("City") found
that deteriorating areas exist in the City; therefore, for the purposes of the Idaho Urban Renewal
Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law"), by Resolution No. 4-
92, dated April 11, 1992, created an urban renewal agency pursuant to the Law, authorizing the
urban renewal agency to transact business and exercise the powers granted by the Law and the
Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the "Act")
upon making the findings of necessity required for creating the Urban Renewal Agency of the
city of Chubbuck, also known as the Chubbuck Development Authority (the "Agency");
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Urban Renewal Plan Chubbuck Downtown Improvement Project (the "1992 Plan") to
redevelop a portion of the City, pursuant to the Law and the Act;
WHEREAS, the City Council, in response to the public hearing on October 27, 1992, by
Resolution No. 11-92, amended City Council Resolution No. 4-92 and 7-92, to reduce the
geographic boundaries of the revenue allocation area, which resulted in removal of the northern
parcels from the proposed revenue allocation area;
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 385 on October 27, 1992, approving the 1992 Plan, and making certain findings;
WHEREAS, the revenue allocation area boundaries were further administratively
adjusted at the request of the Bannock County Assessor's Office by City Council Resolution No.
1-93, dated January 19, 1993, to avoid splitting parcels;
CITY COUNCIL RESOLUTION - 1
WHEREAS, on or about November 23, 1998, the Agency, City, and the Bannock County
Board of County Commissioners ("BOCC") and the Bannock County Assessor ("Assessor")
(collectively, the BOCC and Assessor may be referred to as `Bannock County") entered into the
Intergovernmental Agreement With Respect to the Chubbuck Development Authority and its
Urban Renewal Plan (the "IGA"), to address concerns generally related to the geographic size
and value of the 1992 Plan revenue allocation area;
WHEREAS, the parties to the IGA agreed to an informal partial deannexation from the
1992 Plan revenue allocation area by specifically listing the parcel numbers of the properties to
remain within the revenue allocation area; all other parcels not listed were to be disregarded for
purposes of calculating tax increment (revenue allocation). The Assessor continues to track the
parcels included in the 1992 Plan revenue allocation area consistent with the terms of the IGA;
WHEREAS, the boundary map and legal description of record with the State Tax
Cominlssion ("STC") were not updated to reflect the agreed upon changes in the IGA;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the First Amendment to the Urban Renewal Plan Chubbuck Downtown Improvement Project
(the "First Amendment"), which sought to deannex parcels from the 1992 Plan revenue
allocation area commonly referred to as the "Old CarMike" parcels;
WHEREAS, following said public hearing, the City Council adopted its Ordinance No.
758 on August 3, 2016, approving the First Amendment and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Pine Ridge Mall Urban Renewal Area and Improvement Plan (the "Pine Ridge Mall Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance No.
759 on August 3, 2016, approving the Pine Ridge Mall Plan and making certain findings;
WHEREAS, the Agency Board retained J Foster & Associates LLC and authorized
Renee Magee to commence an eligibility study and preparation of an eligibility report of an area
approximately 650 acres in size located generally west of Interstate 15, south of Tyhee Road,
east of Whitaker and north of Chubbuck Road (the "Study Area") to analyze and determine
whether the Study Area is eligible for urban renewal planning, and provide the Agency Board
with a report and recommendation;
WHEREAS, the Agency obtained an eligibility report entitled Eligibility Study for
Siphon Interchange West Urban Renewal Area, dated October 2018 (the "2018 Study"), which
examined the Study Area for the purpose of determining whether such area is a deteriorating area
and/or a deteriorated area as defined by Idaho Code Sections 50-2018(9) and 50-2903(8);
WHEREAS, the 2018 Study was submitted to the Agency and the Agency Board on
November 20, 2018, by way of Resolution No. 2018-03, accepted the 2018 Study and authorized
the Agency Chair to submit the Resolution and 2018 Study to the City Council for its
consideration;
CITY COUNCIL RESOLUTION - 2
WHEREAS, the City Council on or about December 5, 2018, adopted and approved
Resolution No. 2018-12 finding the Study Area described in the 2018 Study was a deteriorated
area and/or a deteriorating area as defined by Chapters 20 and 29, Title 50, Idaho Code, and
directed the Agency to prepare an urban renewal plan. A copy of the 2018 Study is attached
hereto as Exhibit A;
WHEREAS, after adoption of Resolution No. 2018-12 by the City Council, several
property owners requested that additional property adjacent to the Study Area, which was
recently annexed into the City, be reviewed for eligibility. The Agency agreed to examine the
property to determine whether such supplemental area is eligible for urban renewal planning
purposes;
WHEREAS, during 2019, Agency and City staff reviewed such additional area within the
City and prepared a supplemental eligibility report, including the additional area;
WHEREAS, the Agency obtained a supplemental eligibility report entitled Eligibility
Study for Siphon Interchange West Urban Renewal Area, 2019 Supplement, dated August 2019
(the "2019 Study"), which examined two additional open land parcels totaling approximately 75
acres in size adjacent and contiguous to the Study Area generally located north of Siphon Road
and west of Interstate 15 (the "Supplemental Study Area"), for the purpose of determining
whether such area is a deteriorating area and/or a deteriorated area as defined by Idaho Code
Sections 50-2018(9) and 50-2903(8);
WHEREAS, the 2019 Study was submitted to the Agency, a copy of which is attached
hereto as Exhibit B;
WHEREAS, pursuant to Idaho Code Sections 50-2018(9) and 50-2903(8), which define
the qualifying conditions of a deteriorating area and a deteriorated area, several of the conditions
were found in the Supplemental Study Area, i.e.,
a. outmoded street patterns/inadequate street layout;
b. obsolete platting and faulty lot layout in relation to size, adequacy, accessibility,
or usefulness; and
C. unsafe conditions;
WHEREAS, the Supplemental Study Area is predominantly open;
WHEREAS, under the Act a deteriorated area includes any area which is predominantly
open and which, because of obsolete platting, diversity of ownership, deterioration of structures
or improvements, or otherwise, results in economic underdevelopment of the area or
substantially impairs or arrests the sound growth of a municipality. See Idaho Code § 50-
2903(8)(c);
WHEREAS, Idaho Code Sections 50-2018(9), 50-2903(8) and 50-2008(d) list the
additional conditions applicable to open areas, including open land areas to be acquired by the
Agency, which are the same or similar to the conditions set forth above;
CITY COUNCIL RESOLUTION - 3
WHEREAS, such additional conditions regarding open areas are present and are found in
the Supplemental Study Area;
WHEREAS, the effects of the listed conditions cited in the 2019 Study result in
economic underdevelopment of the area, substantially impairs or arrests the sound growth of a
municipality, constitutes an economic or social liability, and is a menace to the public health,
safety, morals, or welfare in its present condition or use;
WHEREAS, the Agency, on August 20, 2019, adopted Resolution No. 2019- 0 E3 (a
copy of which is attached hereto as Exhibit C, without attachments thereto) accepting the 2019
Study and authorizing the Chair or Vice -Chair of the Agency to transmit the 2019 Study to the
City Council requesting its consideration for designation of an urban renewal area and requesting
the City Council to direct the Agency to prepare an urban renewal plan for the Supplemental
Study Area, which plan may include a revenue allocation provision as allowed by law, as well as
guidance on the boundary of the proposed project area, which may be geographically smaller
than the area reviewed in the 2019 Study;
WHEREAS, the 2019 Study includes a preliminary analysis concluding the base
assessment roll value for the Supplemental Study Area, together with the adjusted base
assessment roll values for the existing and proposed revenue allocation areas, collectively do not
exceed 10% of the current assessed valuation of all taxable property within the City;
WHEREAS, under the Law, Sections 50-2903(8)(f) and 50-2018 (8) and (9), the
definition of a deteriorating area shall not apply to any agricultural operation as defined in
section 22-4502(1), Idaho Code, or any forest land as defined in section 63-1701(4), Idaho Code,
absent the consent of the owner of the agricultural operation or the forest landowner of the forest
land, except for an agricultural operation or forest land that has not been used for three (3)
consecutive years;
WHEREAS, the Supplemental Study Area includes parcels subject to such consent.
While the necessary consents have not been obtained, any consents shall be obtained prior to
submittal of any urban renewal plan for the Supplemental Study Area to the City Council;
WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not
be planned or initiated unless the local governing body has, by resolution, determined such area
to be a deteriorated area or a deteriorating area, or combination thereof, and designated such area
as appropriate for an urban renewal project;
WHEREAS, Idaho Code Section 50-2906 also requires that in order to adopt an urban
renewal plan containing a revenue allocation financing provision, the local governing body must
make a finding or determination that the area included in such plan is a deteriorated area or a
deteriorating area; and
WHEREAS, it is desirable and in the best public interest that the Agency prepare an
urban renewal plan for all, or a portion, of the geographic area identified in the 2019 Study
located in the city of Chubbuck, county of Bannock, state of Idaho.
CITY COUNCIL RESOLUTION - 4
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF CHUBBUCK, AS FOLLOWS:
Section 1: That the Mayor and City Council finds and declares:
(a) That the Supplemental Study Area described in the 2019 Study is a
deteriorated area, a deteriorating area, or a combination thereof, as defined by Chapters 20 and
29, Title 50, Idaho Code, as amended, within the city of Chubbuck, Idaho;
(b) That there is a need for the Agency, an urban renewal agency, to
function in accordance with the provisions of said Chapters 20 and 29, Title 50, Idaho Code, as
amended, within a designated area for the purpose of establishing an urban renewal plan; and
(c) That the geographic area identified in the 2019 Study is determined to be a
deteriorated area or a deteriorating area, as defined in Chapters 20 and 29, Title 50, Idaho Code,
as amended, or a combination thereof, and such area is designated as appropriate for an urban
renewal project.
Section 2: That the Agency is hereby directed to commence preparation of an urban
renewal plan for consideration by the Agency Board and, if acceptable, final consideration by the
City Council in compliance with Chapters 20 and 29, Title 50, Idaho Code, as amended.
Section 3: That the Agency will obtain any agricultural operation consents from the
real property owners, as may be necessary, prior to formally submitting the proposed urban
renewal plan to the City Council for its consideration.
Section 4: That this Resolution shall be in full force and effect immediately upon its
adoption and approval.
ADOPTED by the Council of the city of Chubbuck, Idaho, on October x(2019.
APPROVED by the Mayor and City Council of Chubbuck Idaho, on October ��'2019.
K&in England,"Ilayor
ATTEST:
Ji5b-y- , City Clerk
4838-4713-6676, v. 2
CITY COUNCIL RESOLUTION - 5
Eligibility Study for Siphon Interchange West
Urban Renewal Area
2019 Supplement
for Chubbuck Development Authority
August, 2019
Executive Summary
This 2019 Supplement to the Eligibility Study for Siphon Interchange West Urban Renewal Area,
dated October, 20I8, prepared by ]Foster and Associates (the "2018 Study") examines an
additional 75 acres of open land adjacent and contiguous to the area reviewed in the 2018 Study
(the "2018 Study Area") that was determined to be eligible for an urban renewal project pursuant to
City Council Resolution 2018-12, dated December 5, 2018. The area reviewed in this 2019
Supplement was annexed into the City after the City Council made its findings concerning the
2018 Study Area. This 2019 Supplement was prepared by staff of the City of Chubbuck (the
"City") and the Urban Renewal Agency of the City of Chubbuck, also known as the Chubbuck
Development Authority (the "Agency"). City and Agency staff note the conditions supporting
eligibility of the 2018 Study Area remain unchanged since the City Council adopted its findings in
Resolution 2018-12, on December 5, 2018, and the same conditions exist in the supplemental 75
acres reviewed herein (the "Supplemental Area").
The Supplemental Area is found to have certain conditions set forth in the definitions of a
deteriorated area and/or a deteriorating area, and therefore, is eligible for an urban renewal project
in accordance with Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as
amended (the "Law"), and the Local Economic Development Act, Chapter 29, Title 50, Idaho
Code, as amended (the "Act") for the identical reasons as stated in the 2018 Study which generally
are:
1) Obsolete platting/faulty lot layout. With the anticipated demand for business and mixed use
growth in the area surrounding the new interchange with 1-15, the existing land use pattern of
ownerships of large agricultural acreages will inhibit the orderly growth of the City and, if not
encouraged to subdivide into smaller parcels responding to demand for businesses, technology,
and mixed uses, will result in the economic underdevelopment of the Supplemental Area.
2) Inadequate street system/outmoded streets. The existing roadways in the Supplemental Area
are inconsistent with City standards and the existing road pattern does not serve the
Supplemental Area, The Supplemental Area lacks interior collector and local roads.
3) Unsafe Conditions. The water and sewer system do not serve the interior of the Supplemental
Area. The Supplemental Area also lacks fire hydrants impacting fire protection. Water quality
in the Supplemental Area also remains a concern.
Although this 2019 Supplement has found the lands included in the Supplemental Area to be
eligible for an urban renewal project, a finding of eligibility does not commit either the Agency or
the City Council of the City of Chubbuck (the "City Council") to include any or allportions of the
Study Area within an urban renewal project area.
K
Background
The 2018 Study encompassed approximately 650 acres generally located west of I-15, south of
Tyhee Road, east of Whitaker extended north, and north of Chubbuck Road. The 2018 Study was
accepted by resolution of the Chubbuck Development Authority on November 20, 2018 and by
City Council on December 5, 2018.
This 2019 Supplement is needed to review for eligibility two additional parcels that have recently
annexed into the City in order to be considered for inclusion in any proposed urban renewal project
area.
This 2019 Supplement has been prepared by City and Agency staff.
Description ofSupplemental Eligibility Study Area
This 2019 Supplement examines a Supplemental Area approximately 75 acres in size west of I-
15 in the vicinity of Siphon and Hiline Roads. The Supplemental Area consists of two parcels
owned by separate property owners.
In the Supplemental Area, the principal arterial streets of Siphon Road, Whitaker Road, Hiline
Road and Little Buffalo Creek Road provide a spine for a future road system in the 2018 Study
Area and the Supplemental Area. The Supplemental Area is predominantly irrigated agricultural
land or dry grazing land. No structures exist on the parcels in the Supplemental Area.
Existing water and sewer mains exist in Siphon Road. The parcels in the Supplemental Area do
not currently have water distribution or sewer collection facilities and therefore are not currently
served by City water and sewer.
The Chubbuck Comprehensive Plan, Our Valley, Our Vision, as recently updated, designates the
land use for the Supplemental Area as commercial and mixed use for the westernmost parcel
adjacent to Siphon Road and commercial and medium density for the parcel located between I-15
and Hiline Road and north of Siphon Road.
Amended Eligibility Stu
dyArea '
New Parcels
to
i
g�
' E Chubb.ck Rd
Community Plans for Supplemental Area
The community plans for the Supplemental Area reflect the same information as represented in the
2018 Study, and are specifically incorporated by reference herein.
4
Statutory Criteria for Deteriorating Areas and Open Land
The eligibility criteria for the Supplemental Area reflect the same guidelines as represented in the
2018 Study, and are specifically incorporated by reference herein.
Findings
The findings for the Supplemental Area reflect the existence of the following criteria for eligibility
in the Supplemental Area.
Obsolete platting/faulty lot layout. Obsolete platting is an eligibility criterion for open land.
See 2018 Study. Obsolete platting includes lots too large to accommodate growth without
further subdivision. In the Supplemental Area, there are two large, open land parcels totaling
75 acres transitioning from agricultural use. Community future land use plans as well as
regional plans for the City articulate significant growth from the Siphon-Northgate interchange
with I-15 north to Tyhee Road. The present land ownership pattern of large agricultural parcels
requires further subdivision and, therefore, impairs the sought growth of the City towards 1-15.
The parcel size results in economic underdevelopment of the Supplemental Area.
Inadequate street system/outmoded streets. Siphon Road west of Whitaker Road continues
to not conform with City standards and is a two-lane road with approximately twelve -foot
travel lanes and shoulders varying in width from one to six feet. There are no pedestrian
facilities and drainage facilities are limited to barrow pits. Likewise, Hiline Road fails to meet
present City road standards or comply with plans for an improved road system to serve the
area. The existing system of roads retards the development of the Supplemental Area.
Further, there are few existing streets west of I-15. There is no internal street network to serve
the Supplemental Area, or to provide access within the Supplemental Area to other parts of the
community. The lack of consistent collector or interior street system west of I-15 does not
promote the movement of traffic from undeveloped parcels to the community. An urban
renewal area in this portion of the community will provide a means to create access to lands
closest to 1-15 and eliminate a substandard arterial street. It will further address the issue of
connecting growth near I-15 with the Supplemental Area and the City.
Unsafe Conditions. The Supplemental Area is not served by a water distribution system or a
sewer collection system. Fire protection is an issue as the Supplemental Area is not served by
fire hydrants. Significant investments are necessary to assure orderly management of growth
and safe development resulting from the traffic and demand for services at the proposed
interchange. Ground water quality is an issue as the Supplemental Area is located where
nitrate levels are likely to be elevated and groundwater quality may be degraded. The
development of a central water distribution system is an important public priority to assure
safety of residents and business owners.
Agricultural Operations in Study Area
The owners of the two parcels in the Supplemental Area will need to give their written consent to
be included within any revenue allocation area as the Supplemental Area has been used for an
agricultural operation within the last three years.
Ten Percent Limitation on Assessed Valuation within Revenue Allocation Area
At the date of the 2018 Study, the City's assessed valuation of taxable property within the City
was $779,359,220. Ten percent of that valuation is $77,935,922. The City has two revenue
allocation areas, and the 2018 adjusted base values of these revenue allocation areas according to
Bannock County are:
Central Chubbuck
Pine Ridge Mall
$ 13,382,652
$ 36,163,800
Additionally, the following base values have been included in previous Eligibility Study Areas.
2018 Study $ 3,089,605
Study Area East of 1-15 $ 57,600
The 2019 estimated base for the Supplemental Area parcels is $91,863. The total valuation for the
two existing revenue allocation areas, the previous Eligibility Study Areas and this proposed
Supplemental Area, not considering conversion to non-agricultural uses, is $52,785,520 or 6.8%
of the total valuation.
Conclusion
The Supplemental Area meets the criteria for eligibility under Idaho Code Section 50-2903(8)(c),
predominantly open land, as well as the criteria for acquisition for nonresidential purposes, Idaho
Code Section 50-2008(d). In addition, due to faulty lot layouts for sound growth, outmoded street
patterns, the need for street correlation to other areas of the City, the Supplemental Area meet the
criteria for deteriorating areas, Idaho Code Sections 50-2018(9) and 50-2903(8)(b).
2
Criteria
Criteria
Characteristics supporting finding
met?
Obsolete platting,
Yes
Further subdivision with local street and collector street
Section 50-2903(8)(c)
patterns are required to allow orderly growth spurred by
interchange and private development proposals.
Substantially arrests
Yes
Large agricultural parcels impair sound growth of
sound growth of
Chubbuck. Without further subdivision, demand for
municipality, Section
growth will need to leapfrog proposed urban renewal
50-2903(8)(c)
area.
Faulty lot layouts,
Yes
Large land ownerships are not useful or adequate to
Section 50-2008(4),
accommodate commercial growth and mixed uses which
Section 50-2018(9)
need smaller lots for business and higher density housing.
Inadequate street
Yes
The Supplemental Area includes arterial streets which do
layout, Section 50-
not meet modern street standards or provide pedestrian or
2018(9)
biking facilities. The pattern of existing streets does not
provide a collector or local street system in the
Supplemental Area.
Outmoded street
Yes
See above. The outmoded street patterns, obsolete
patterns, Section 50-
platting, and lack of central water and sewer systems
2008(4)
retard the development of the area.
Need for correlation
Yes
The existing arterial street system does not meet today's
of the area with other
standards. There is no coordinated street system east of
areas of municipality
Hiline nor a collector street system north of Siphon Road
by streets or modern
and east of Yellowstone Highway.
traffic requirements,
Section 50-2008(d)
Unsafe conditions,
Yes
A public water distribution system or a public sewer
Section 50-2018(9)
collection system does not serve the Supplemental Area.
Fire hydrants are lacking in the Supplemental Area. There
are no pedestrian facilities in the Supplemental Area.
Substantially impairs
Yes
An inadequate street system, faulty lot layout, and the lack
sound growth,
of a centralized water and sewer system inhibits the sound
Section 50-2018 (9)
and orderly growth of the City in this area of anticipated
demand for growth.
Next Steps: The Urhan Renewal Process
If it is determined the Supplemental Area meets the criteria for a deteriorating area and/or a
deteriorated area, the Agency may accept the eligibility study and request its consideration by the
City Council.
If the City Council makes the necessary findings by resolution, the City Council would direct and
authorize the Agency to prepare an urban renewal plan for a portion or all of lands considered
eligible. The plan approval process is set forth in the 2018 Study.