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Home My WebLink About2020-01 T.I.F. Eligibility StudyRESOLUTION NO. ZO ZD - 0 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 OR PLANS SUBJECT TO CERTAIN CONDITIONS, WHICH PLAN OR PLANS MAY INCLUDE REVENUE ALLOCATION PROVISIONS FOR ALL OR PART OF THE AREA; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council (the "City Council") of the city of Chubbuck (the "City") found that deteriorating areas existin 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 - I 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 Commission ("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 and the Agency Board on August 20, 2019, by way of Resolution No. 2019-03, accepted the 2019 Study and authorized the Agency Chair to submit the Resolution and 2019 Study to the City Council for its consideration; WHEREAS, the City Council on or about October 16, 2019, adopted and approved Resolution No. 2019-08 finding the Study Area described in the 2019 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 2019 Study is attached hereto as Exhibit B; WHEREAS, after adoption of Resolution No. 2019-08 by the City Council, a property owner requested that additional property adjacent and contiguous to the Study Area and the Supplemental 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, in February 2020, the Agency retained Outwest Policy Advisors and authorized Brent Tolman to commence an eligibility study and preparation of an eligibility report (the "2020 Study") of an area approximately 87 acres in size generally located at the southeast intersection of Tyhee Road and the Union Pacific Railroad (UPRR) Mainline which runs from Pocatello to Idaho Falls. The property is bordered by the UPRR Mainline on the west, Tyhee Road on the north, bordered on the east by a line of longitude at approximately 112°.27'.23.00" W and bordered on the south by a line of latitude at approximately 42°.56'.25.00" N. (the "2020 CITY COUNCIL RESOLUTION - 3 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 502018(9) and 502903(8); WHEREAS, the 2020 Study was submitted to the Agency, a copy of which is attached hereto as Exhibit C; 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 2020 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; C. insanitary or unsafe conditions; d. deterioration of site and other improvements; and e. existence of conditions which endanger life or property by fire and other causes. WHEREAS, the 2020 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; WHEREAS, such additional conditions regarding open areas are present and are found in the 2020 Supplemental Study Area; WHEREAS, the effects of the listed conditions cited in the 2020 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 May 19, 2020, adopted Resolution No. 2020-02 (a copy of which is attached hereto as Exhibit D, without attachments thereto) accepting the 2020 Study and authorizing the Chair or Vice -Chair of the Agency to transmit the 2020 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 or plans for the 2020 Supplemental Study Area, which plan or plans 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 2020 Study; CITY COUNCIL RESOLUTION - 4 WHEREAS, the 2020 Study includes a preliminary analysis concluding the base assessment roll value for the 2020 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)(#) 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(2), 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 2020 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 2020 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 or plans for all, or a portion, of the geographic area identified in the 2020 Study located in the city of Chubbuck, county of Bannock, state of Idaho. 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 2020 Supplemental Study Area described in the 2020 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 2020 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. CITY COUNCIL RESOLUTION - 5 Section 2: That the Agency is hereby directed to commence preparation of an urban renewal plan or plans for the Study Area, the Supplemental Study Area and the 2020 Supplemental Study Area 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 or plans 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 3 `� , 2020. APPROVED by the Mayor and City Council of Chubbuck Idaho, on 3'J-,2020. Kevin England, Nor ATTEST: CITY COUNCIL RESOLUTION - 6 Exhibit A Eligibility Study for Siphon Interchange West Urban Renewal Area for Chubbuck Development Authority October, 2018 Hoster and Associates 425 Capital Avenue Idaho Falls Idaho 83402 Executive Summary This report examines approximately 650 acres northeast and east of the City of Chubbuck (the "City") to determine if the conditions exist which qualify all or part of the area as appropriate for an urban renewal project. The area studied lies west of I-15, south of Tyhee Road, east of Whitaker extended north, and north of Chubbuck Road. The proposed Siphon-Northgate interchange scheduled for construction on I-15 in 2019 is centrally located in the proposed urban renewal area. A small portion, slightly over ten acres, of the area under review is annexed to the City, and the remainder of the area under review is located in unincorporated Bannock County (the "County"). Landowners of the parcels in unincorporated County have petitioned for annexation. The parcels within the study area (the "Study Area") are predominantly open lands and in agricultural use, either as irrigated agriculture, non- irrigated agriculture, or dry land grazing. It is anticipated the landowners of agricultural parcels will or have given consent for their parcels to be included in an urban renewal area. The Study Area is found to be a deteriorated area and/or a deteriorated area, and therefore, is eligible for an urban renewal project under the 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 following reasons: 1. Obsolete platting (open land criteria) and faulty lot layout due to size and usefulness. With the anticipated demand for business and mixed use growth in the area surrounding the new interchange with I-15, the existing land use pattern of ownerships of large agricultural acreages or large residential lots 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 area. 2. Outmoded street patterns/inadequate street layout. The majority of existing streets in the Study Area have two travel lanes with uneven shoulder widths and no pedestrian facilities. These streets do not meet current street standards or offer safety to pedestrians. More importantly, as illustrated by the 2018 functional class road system map in the Chubbuck Comprehensive Plan, as amended (the "Comprehensive Plan"), the existing road pattern does not serve major portions of the Study Area, especially those lands near and adjacent to I-15 east of the Fort Hall Main Canal, 3. Unsafe conditions. A central public water system and a sewer collection system does not serve most of the Study Area. The lack of fire hydrants in the Study Area reduces fire protection. DEQ has identified a portion of the Study Area as an area where water quality may be degraded due to nitrates. This situation increases the importance of central water and sewer systems. Three floodplains lie west of I-15 in the Study Area. Although this Study has found the lands included in the Study Area to be eligible for an urban renewal project, a finding of eligibility does not commit either the Urban Renewal Agency of the City of Chubbuck also known as the Chubbuck Development Authority (the "Agency") or the City Council of the City of Chubbuck (the "City Council") to include any or all portions of the Study Area within an urban renewal project area. Background "Interchange project expected to trigger economic boom for Pocatello area," was the headline on August 16, 2018, in an Idaho State Journal article about the proposed Siphon-Northgate interchange to be constructed on 1-15 in 2019. Earlier headlines from the same publication described a "massive wave of development" to be triggered by the new 1-15 interchange and associated private development. Growth as described in the articles, including a technology park, shopping centers, new neighborhoods, and parks, demands major investments in public infrastructure. Tax increment, or revenue allocation financing is one of the few tools available to local governments in Idaho to assist with financing such infrastructure in cooperation with private developers, to respond to the demands created by growth, and to create jobs. The Idaho Legislature authorized tax increment financing in Idaho in 1988 with the passage of the Act. The purpose of the Act is to provide a means to raise revenue to finance the economic growth of communities and development of deteriorating areas and/or deteriorated areas through financing public improvements. Since its passage in 1988, tax increment financing has grown from a tool to not only redevelop deteriorating and/or deteriorated downtowns and increase the tax base of a community but also as an economic development tool to create jobs by providing public improvements to areas in Idaho communities without the necessary infrastructure to promote private development. Description of Eligibility Study Area This Study examines a Study Area approximately 650 acres in size west of I-15 in the vicinity of Siphon and Tyhee Roads as described above. The purpose of this Study is to determine if conditions exist which qualify all or a portion of the Study Area for designation as appropriate for an urban renewal project. The Study Area consists of thirty parcels owned by eighteen property owners according to Bannock County online parcel maps. A new interchange to I-15, the Siphon-Northgate Interchange, is planned three quarters of a mile north of Chubbuck Road. In the Study Area, the principal arterial streets of Siphon Road, Tyhee Road, and Hiline Road provide a spine for a future road system to serve approximately 650 acres. This Study Area is predominantly irrigated agricultural land or dry grazing land. Clusters of single-family homes on Tree Valley Road and Buffalo Road are located in or surrounded by the Study Area. 04 Eligibility Study Area East of Whitaker Road, the City is improving and extending Siphon Road to provide access to the Siphon-Northgate Interchange with I-15. The interchange itself has not been started and will not be completed until August, 2019, at the earliest. The improvements on Siphon Road from the intersection with Whitaker Road to the interchange will include widening the road to four travel lanes, drainage facilities, and sidewalk/pedestrian facilities. Improvements will be 9 constructed on Hiline Road at the intersection with Siphon Road. Hiline and Siphon Roads outside of the interchange connection improvements are two lane roads with barrow pits and no pedestrian facilities. Tyhee Road at the north end of the study area is also a two lane road with barrow pits and no pedestrian facilities. The City water system serves a portion of the Study Area. Water mains are located in Siphon Road and Hiline Road south of Siphon Road. Therefore, the majority of the Study Area is not served by a public water distribution system. The City's sanitary sewer lines are located in Siphon Road and a portion of Hiline Road north and south of Siphon Road. Most of the 650 acres in Study Area are not served by a public sewer system. Community Plans for Study Area In 2015, the regional transportation planning organization for the County, City of Pocatello, and the City completed the BTPO 2040 Metropolitan Transportation Plan, Amendment 1. A preferred scenario is included in the plan. According to the document, the scenario is based on public feedback, the performance of various scenarios outlined in the document, and local vision and goals for the transportation network. In the preferred scenario, business employment growth spurred by the Siphon-Northgate Interchange is expected to extend into north Chubbuck along Siphon Road and Hiline Road towards Tyhee Road. Below: Portion of Conceptual Scenario Map, Preferred Scenario, page 20. BTPO 2040 Metropolitan Transportation Plan. 7 Buskess employment growth In vicinity of planned Siphon interchange, to extend into North Chubbuck along Siphon Road Mixed use and residential development is a longer range vision that may not occur within itte 20 -year planning horizon More mixed use development l r Housing growth R�� 3 �JJII anticipatededinn Saterfield Development area Robust residential and employment growth 0 In the Chubbuck Comprehensive Plan, Our Valley, Our Vision, as recently updated, the land use designation on Siphon Road east of Hiline Road is commercial. The mixed use designation is on Siphon from Hiline Road to Whitaker Road and lines Hiline Road. The employment designation is north of Siphon Road to Tyhee Road along the Union Pacific railroad and adjacent to I-15 north of Chubbuck Road. Medium density is shown in the northeast corner of the Study Area. The Chubbuck Comprehensive Plan, under community design, has an objective of a strong arrival feature at the entrance way at the Siphon- Northgate Interchange. Landscaping is discussed as a component of this arrival feature. A functional class road system map is included in the Chubbuck Comprehensive Plan. In June of 2018, the map was updated and includes not only the future interchange of Siphon Road extended and I-15 but the plan to realign the Tyhee Road-Hiline intersection and create a Tyhce Road north -south corridor on the bench between Hiline Road and I-15. In addition to improvements to Tyhee Road, the road system map proposes the extension of Whitaker to Tyhee Road and the creation of a north -south collector to the east of Hiline Road. Portion of 2018 Functional Class Road System map. Black: Principal arterial Blue Minor arterial Pink: Collector The existing comprehensive plans above are being implemented with the annexation requests filed in August, 2018, for the parcels in the Study Area. The zoning district, General Commercial zone (C-2), is being proposed north and south of Siphon Road east of Hiline Road to the I-15 interchange. The purpose of the General Commercial zone is provide for a variety of businesses for both community and regional markets. Although the areas north and south of this proposed commercial district are being proposed for agricultural zoning in the annexation request for approximately 650 acres, the staff report prepared by the Chubbuck planning department states the owners of the properties wish to develop their lands under the proposed mixed use zone, the Creative Community Zone. The Agriculture Zone is a place holder until development plans can be prepared. ral Statutory Criteria for Deteriorating Areas and Open Land Generally, eligibility criteria are set forth in the definitions of "deteriorated area" found in Idaho Code Sections 50-2018(9) and 50-2903(8), and "deteriorating area" found in Idaho Code Section 50-2018(9). A deteriorated area means: an area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of: 1. dilapidation, 2. deterioration, 3. age or obsolescence, 4. inadequate provision for ventilation, light, air, sanitation, or open spaces, 5. high density of population and overcrowding, 6. or the existence of conditions which endanger life or property by fire and other causes, 7. or any combination of such factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare. Idaho Code Section 50-2018(8). See also, Idaho Code Section 50-2903(8)(a). In general, these conditions were not identified or observed in the Study Area. A deteriorating area means: an area which by reason of: I . the presence of a substantial number of deteriorated or deteriorating structures, 2. predominance of defective or inadequate street layout, 3. faulty lot layout in relation to size, adequacy, accessibility or usefulness, 4. insanitary or unsafe conditions, 5. deterioration of site or other improvements, 6. diversity of ownership, 7. tax or special assessment delinquency exceeding the fair value of the land, 8. defective or unusual conditions of title, 9. or the existence of conditions which endanger life or property by fire and other causes, 10. or any combination of such factors, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use; provided, that if such deteriorating area consists of open land the conditions contained in the proviso in section 50- 2008(d), Idaho Code, shall apply. Idaho Code Section 50-2018(9). See also, Idaho Code Section 50-2903(8)(b). 7 While there is no definition of "open land" in the Law or the Act, there are specific eligibility criteria for "open land" set forth in Idaho Code Section 50-2903(8)(c). The Study Area appears to be predominantly open land. A "deteriorated area" means, in part: 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. The provisions of Section 50- 2008(d), Idaho Code, shall apply to open areas. Idaho Code Section 50-2008(d) does not specifically address eligibility; rather, it sets forth the necessary findings for an Agency to acquire open land for residential use or nonresidential uses. If the Agency is to acquire open land for residential purposes, the City Council must determine that: 1. a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; 2. the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; 3. the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; 4. and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality. If the Agency is to acquire open land for nonresidential purposes, the City Council shall determine such nonresidential uses are: necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. It can be argued the criteria for acquisition of nonresidential uses by an agency are the same or similar to the general criteria for eligibility. Therefore, if deteriorating conditions exist, the Agency would necessary meet the acquisition standard. Under the Law and the Act, an agricultural operation or forest land cannot be deemed a deteriorating area or a deteriorated area or included within an urban renewal area unless the owner of the agricultural operation or forest landowner gives his/her written consent to be included in the urban renewal district: "Deteriorated area" does not mean not developed beyond agricultural, or 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, unless the owner of the agricultural operation or the forest landowner of the forest land gives written consent to be included in the deteriorated area, except for an agricultural operation or forest land that has not been used for three (3) consecutive years. (Emphasis added.) Idaho Code Section 50-2903(8)(f); see also, Idaho Code Sections 50-2018(8) and (9). Findings Windshield and walking surveys as well as meetings with City staff and a review of applicable resources and references reveal the existence of the following criteria for eligibility in the Study Area. Obsolete platting/faulty lot layout: Obsolete platting is an eligibility criteria for open land. Obsolete platting may include either older subdivision plats which contain lots too small for today's market or the opposite, i.e., lots too large to accommodate growth without further subdivision. In the open land scenario, the latter condition is more likely to be found. In the Study Area, land ownerships vary from single-family homes on approximately one-half acre lots to agricultural lands about 250 acres in size. Homes on large lots or small agricultural parcels occupy about 43 acres of the Study Area. Farms or lands used for agriculture occupy approximately 580 acres. Community future land use plans as well as regional plans for the City articulate significant growth from the Siphon-Northgate interchange north to Tybee Road. The present land ownership pattern, i.e., large agricultural parcels, requires further subdivision and, therefore, impairs the sound growth of the City towards 1-15. The parcel size results in economic underdevelopment of the area. Inadequate street system/outmoded streets, Siphon, Hiline, and Tyhee Roads are principal arterial streets serving the Study Area. They are presently, with the exception of the construction of Siphon Road from Whitaker Road to the proposed I-15 interchange, two lane roads with approximately twelve foot travel lanes and shoulders varying in width from one to six feet. Drainage facilities are limited to barrow pits, and there are no pedestrian facilities. The roads do not meet present City road standards or comply with plans for an improved road system to serve the area. The present roads are not suitable to serve the projected business development and mixed land use planned on the west side of the Siphon-Northgatc interchange. The existing system of roads retards the development of the area. Other than the arterial streets, there are few existing streets west of 1-15 in the Study Area to serve the area and provide access within the Study Area or to other parts of the community. Buffalo Road is a long dead-end street. Tree Valley is an unimproved gravel dead-end street. There is no consistent collector or interior street system west of I-15. The present street pattern does not promote the movement of traffic from undeveloped parcels to the community. Chubbuck Road has been the primary east/west road in Chubbuck. As early as 2010, the lack of connectivity was seen as an issue as well as congestion due to the lack of north/south accesses, according to BTPO. The construction of the interchange will improve Siphon Road to a limited 10 extent and provide another cast -west street. However, it will also introduce more traffic into the Study Area. To provide access along the bench east of Hiline Road and to bridge the Fort Hall Main Canal, the City is proposing to extend Tyhee southeast paralleling 1-15. This planned improvement will improve east/west access as well as north/south access. An urban renewal area in this portion of the community will provide a means to create access to lands closest to I-15 and eliminate a substandard arterial street. It will address the issue of connecting growth near I- 15 and on the bench with other portions of the Study Area and the City. Unsafe Conditions. The majority of the Study Area is not served by a water distribution system or a sewer collection system. The area cast of the Union Pacific Railroad and north of Siphon Road as well as the area north of Tree Valley and west of I-15 is not served by a water distribution system. Fire protection is an issue since this area is not served by fire hydrants. Those portions on the bench and adjacent to the proposed interchange will face pressures for development as the demand for commercial uses increase. Significant investments are needed to assure orderly management of growth and safe development resulting from the traffic and demand for services at the proposed interchange. In the illustrations below, the area shown in pink and lying west of I-15 is included in the Study Area and has no public water or sewer system with the exception of a sewer trunk line lying in a portion of Hiline Road. Water system, Chubbuck. Sewer system, Chubbuck. pq A portion of the Study Area lying west of I-15 has been identified as an Idaho DEQ 2014 Nitrate Priority Area. Such an area is a general area where nitrate levels are likely to be elevated, and 11 ground water quality may be degraded. In such an area, the development of a central water distribution system is an important public priority to assure the safety of residents. The sewer collection system, with the exception of an approximately 4,000 feet of trunk line in Hiline Road north of Siphon Road, does not serve the Study Area. There is no collection system beyond this one sewer line. Considering the issues with nitrates in the Study Area, service by a public sewer collection system to growth in the area is a priority. Photographs of Tyhee Road and Hiline, construction on Siphon Road, and Hiline Road, August, 2018. I I i Three floodplains exist in the Study Area west of 1-15. Little Pocatello Creek has a floodplain located north of Chubbuck Road from 1-15 to Hiline Road. The floodplain flows near the southern portion of Tree Valley Road. Buffalo Creek has a 1% floodplain lying between Hiline Road and 1-15 from Buffalo Road east. A third 1 % floodplain, or Zone AE, lies east of Hiline to 1-15 south of West Walton Road, Floodplain, Little Pocatello Creek, City of Chubbuck Website. 12 Idaho Department of Water Resources, Flood Hazard Maps, Zone AE illustrated. As a reflection of the floodplain of the Little Pocatello Creek, there are storm drainage issues west of 1-15 and north of Chubbuck Road. The location of floodplains will require mitigation in development plans and possibly additional public infrastructure, depending on solutions to address potential flooding. To summarize, at least one open land criteria for eligibility has been found in the Study Area: obsolete platting. The existing land ownership pattern of large acreages in single ownership substantially arrests the growth of the City to the northeast and east. The existing land use patterns results in economic underdevelopment of the area will continue to do so in the long term. The additional criteria found in the Study Area and enumerated in the Law for non-residential acquisition of open land, Idaho Code Section 50-2008(d), are: 1. Outmoded street patterns. See discussion of inadequate street system above. 2. Unsuitable topography. See discussion of floodplain areas above. 3. Faulty lot layouts. See obsolete platting discussion above. 4. Need for correlation of area with other areas by streets. See discussion under inadequate street system above. The present state of the proposed urban renewal area as revealed in the fmdings above fulfill the following criteria under "deteriorating," Idaho Code Section 50-2018(9): 1. Faulty lot layout in relation to ....usefulness. 13 2. Predominance of defective or inadequate street layout, 3. Insanitary or unsafe conditions, or 4. Any such combination of factors which arrest the sound growth of the municipality. Agricultural Operations in Study Area The owners of the agricultural operations in the Study Area will need to give their written consent to be included within any revenue allocation area: ...Provided, however, this definition (deteriorated area or deteriorated area) shall not apply to any agricultural operation, as defined in section 22- 4502(2), Idaho Code, absent the consent of the owner of the agricultural operation.... except for an agricultural operation ... that has not been used for three (3) consecutive years. Idaho Code Section 50-2018(8) and (9); Idaho Code Section 50-2903(8)(#). There are three landowners who have agricultural exemptions on their lands. These exemptions cover over 425 acres or approximately 68% of the Study Area. The amount of value assigned for agricultural exemptions will be included in the base value of any revenue allocation area when the land use changes on these exempted agricultural lands: The equalized assessed valuation of the taxable property in a revenue allocation area as shown on the base assessment roll shall be increased by the equalized assessed valuation, as of the date of the base assessment roll, of taxable property in such revenue allocation area that becomes taxable after the date of the base assessment roll, provided any increase in valuation caused by the removal of the agricultural exemption from undeveloped agricultural land in a revenue allocation area shall be added to the base assessment roll. Idaho Code Section 50-2903(4). There may be parcels within the Study Area which are agricultural parcels which do not have exemptions, e.g., if there are parcels which are used for grazing or have been farmed recently, written permission will be needed to include such parcels within the district. Ten Percent Limitation on Assessed Valuation within Revenue Allocation Area Under Idaho Code Section 50-2903(15), the collective base assessment rolls of all revenue allocation areas in the City are not to exceed ten percent of the current assessed valuation of all taxable property within the City. 14 "Revenue allocation area" means that portion of an urban renewal area ....where the equalized assessed valuation (as shown on the taxable property assessment rolls) of which the local governing body has determined, on and as a part of an urban renewal plan, is likely to increase as a result of the initiation of an urban renewal project .... The base assessment roll or rolls of revenue allocation area or areas shall not exceed at any time ten percent (10%) of the current assessed valuation of all taxable property within the municipality. Idaho Code Section 50-2903(15). The City's current assessed valuation of taxable property within the City is $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 $ 13,382,652 Pine Ridge Mall $ 36,163,800 The 2018 estimated base for the Study Area is $3,089,605. According to the County, there is no significant personal property value in the Study Area. The adjusted base values for the Central Chubbuck Project Area and the Pine Ridge Mall Project Area include personal property. The total valuation for the two existing revenue allocation areas and this proposed area, not considering conversion to non-agricultural uses, is $52,636,057 or slightly less than 7% of the total valuation. 15 Conclusion The Study 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, and unsuitable topography in a portion of the Study Area, the Study Area meet the criteria for deteriorating areas, Idaho Code Sections 50-2018(9) and 50-2903(8)(b). 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(d), accommodate commercial growth and mixed uses which Section 50-2018(9) need smaller lots for business and higher density housing. Inadequate street Yes The Study Area has arterial streets which do not meet layout, Section 50- modern street standards or provide pedestrian or biking 2018(9) facilities. The pattern of existing streets does not serve the bench area or provide a collector or local street system in the Study Area. Outmoded street Yes See above. The outmoded street patterns, obsolete patterns, Section 50- platting, and lack of central water and sewer systems 2008(d) 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 cast 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) 16 Unsafe conditions, Yes A public water distribution system or a public sewer Section 50-2018(9) collection system does not serve most of the proposed urban renewal area. Fire hydrants are lacking in most the Study Area. There are no pedestrian facilities in much of the Study Area. Three floodplain exist in the Study Area. Substantially impairs Yes An inadequate street system, faulty lot layout, and the sound growth, lack of a centralized water and sewer system inhibits the Section 50-2018 (9) sound and orderly growth of the City in this area of anticipated demand for growth. 17 Next Steps: The Urban Renewal Process If an urban renewal agency is in existence in a community, the creation of revenue allocation area, begins with an eligibility study. The purpose of the eligibility study is to determine if a specific geographic area meets the criteria for a deteriorating area and/or a deteriorated area as defined in the Law and the Act to be included in an urban renewal project. If it is determined the Study Area has such characteristics, the Agency may accept the eligibility study and request its consideration by the City Council. No urban renewal district can be formed unless the City Council adopts a resolution finding the area under consideration is a deteriorated area and/or a deteriorating area. If the area under consideration includes land which does not lie within the jurisdictional boundaries of the City, the Board of County Commissioners must adopt a resolution declaring a need for an urban renewal project prior to City Council consideration. If any land within the proposed district has been used for an "agricultural operation" within the past three years, the property owner must consent to inclusion of his/her land within the district. 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 urban renewal plan is to include the following with specificity: (1) A statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the municipality; (2) A statement listing the kind, number, and location of all proposed public works or improvements within the revenue allocation area; (3) An economic feasibility study; (4) A detailed list of estimated project costs; (5) A fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property on the revenue allocation area; (6) A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; (7) A termination date for the plan and the revenue allocation area as provided for in section 50-2903(20), Idaho Code. In determining the termination date, the plan shall recognize that the agency shall receive allocation of revenues in the calendar year following the last year of the revenue allocation provision described in the urban renewal plan; (8) A description of the disposition or retention of any assets of the agency upon the termination date. Once the plan is prepared and approved by the Agency, it is forwarded to the City Council. The City Council forwards the plan to the City planning commission for its determination that the plan conforms to the city's comprehensive plan. The City Council also schedules the public hearing, and notice of the hearing is published, and a copy of the notice and plan is sent to all taxing entities at least thirty days prior to the date set for the public hearing. If lands outside the City are included within the proposed district, an intergovernmental agreement is drafted and 18 approved by the county and city, together with a transfer of powers ordinance. The City Council must approve an urban renewal district, including the revenue allocation area, by an ordinance. If the ordinance is adopted by the City Council, the ordinance summary is published, the ordinance is recorded, and a copy of the ordinance with legal description of the district and a map as well as a copy of any intergovernmental agreement is distributed to all the taxing entities and the State Tax Commission. By state statute, an ordinance approving a district and revenue allocation area is effective January 1 of the year in which the revenue allocation area is established: this retroactive effect recognizes projects necessary to generate tax increment may have begun prior to the approval of the plan to meet private deadlines and encourage economic development. The district has a maximum life of twenty years under Idaho statutes. 19 SOURCES AND REFERENCES 1. Interviews with Rodney Burch, PLS, Public Works Director, and Devin Hillam, MPA, Planning and Development Director, City of Chubbuck. August 28, 2018. 2. Interview with Anita Hymas, Chief Deputy, Bannock County Assessor. August 28, 2018. 3. 2018 Chubbuck Urban Renewal Evaluation, Bannock County Assessor's Office, August 29, 2018. 4. Staff Report, Chubbuck Land Use and Development Commission, Request to amend Land Use Designations of Chubbuck's Comprehensive PIan to add approximately 950 acres of land to Commercial and Mixed Use, August 23, 2018. Planning and Development Department, Chubbuck. August 23, 2018. 5. Staff Report. Chubbuck Land Use and Development Commission, A request for Category A Annexation of approximately 660 acres with Agricultural and Commercial General zoning designations. Planning and Development Department, Chubbuck, August 29, 2018. 6. Staff Report. Chubbuck Land Use and Development Commission. A request to amend the Future Land Use Designations Map of Chubbuck's Comprehensive Plan to change the designation of approximately 150 acres of land to Commercial. Planning and Development Department, Chubbuck. August 23, 2018. 7. Chubbuck Land Use and Development Commission Agenda, September 18, 2018. Annexation request for 680 acres west of I-15 and 832 acres east of I-15. September 18, 2018. 8. Chubbuck Comprehensive Plan, Our Valley, Our Vision, January, 2002, with updates through June, 2018. 9. BTPO 2040 Metropolitan Transportation Plan, Final Report (January 1, 2015) and Amendment I (May 1, 2015). 10. Final Report: I-15 Environmental Study Concept Report, June 2007. Prepared for Idaho Transporation Department by CH2MHill. 11. Bannock County Online Parcel Viewer, https://bannock.maps.aregis.com/apps/ webappviewer/index.html?iddfe86cb077844d8f8b68ba01ac6f7087. Contains 2017 valuations. 12. Chubbuck GIS System maps provided by Ryan Howerton, GIS Specialist, Chubbuck. Maps of water system, sewer system, fire hydrants, land use classifications, floodplains, road classifications, proposed URA. September and October, 2018. 13. Email, Richard Morgan, City of Chubbuck, City valuation, August 28, 2018. 20 14. Idaho State Tax Commission, List of Categories, Property Tax Rules 130, 510, 511, and 512. 15. 2014 NPA Delineation and Ranking Process. Idaho Department of Environmental Quality. July, 2014. https://www.deg.idaho.gov/media/ .../nitrate-prioiity-area-delineation-ranking-2014.pdf 16. "Northgate project delayed until at least summer 2019," Idaho State Journal, August 5, 2018. 17. "Interchange project expected to trigger economic boom for Pocatello area," Idaho State Journal, August 16, 2017. 18. "Northgate project expected to trigger massive wave of development," Idaho State Journal, 19. "City of Pocatello Annexes 300 Acres for Northgate Project," www.kpvi/news/local, December 11, 2017. 20. Minutes, City of Pocatello City Council, February 15, 2018. 21. "Northgate partners say project is no Hoku," Idaho State Journal, August 11, 2018. 22. Telephone conversation, Melanie Gygli, Director, City of Pocatello Planning and Development Services, September 21, 2018. 23. Memorandum, Siphon Road Extension, Phase 2 - Hiline/Siphon Intersection: Traffic Demand Forecast and Capacity Analysis, From Cameron Waite to Rodney Burch. August 16, 2017. 24. Taxing District Details, Ordinance No. 3001, February 15, 2018, City of Pocatello, Idaho State Tax Commission, haps:Htax.idaho.gov/i-1 070.cfm?year-2019&figs=ID005 &Ord=ord%2E%5F3004 25. Idaho State Tax Commission, Urban Renewal Registry, Chubbuck #5 and Pine Ridge Mall. htips://tax.idaho.gov/i-2007.cfin 26. Stanley Consultants, 1-15 Northgate Interchange, Project No. A020(314), Key No. 20314, Northgate Parkway. 27. Idaho Department of Water Resources, Floodplain Management, https://idwr.idaho.gov/floods/map.html 28. 4845-4271-4235, v. 7 21 Exhibit B l: '._ ,_ Amended Eligibility Study Area Oelgi-1 Area Al } E bbud Red f Eligibility Study for Siphon Interchange West Urban Renewal Area 2019 Supplement for Chubhuck Development Authority August, 2019 Executive Summary This 2019 Supplement to the Eligibility Study for Siphon Interchange West Urban Renewal Area, dated October, 2018, prepared by Moster 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 I-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. 2 Background The 2018 Study encompassed approximately 650 acres generally located west of 1-15, 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 of Supplemental 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. I 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. C! 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 -I5 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 I-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 I-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 $ 13,382,652 Pine Ridge Mall $ 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 I-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). 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(d), 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(d) 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 Urban 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. Exhibit C SIPHON INTERCHANGE WEST SUPPLEMENTAL URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE CHUBBUCK DEVELOPMENT AUTHORITY BY BRENT TOLMAN of OUTWEST POLICY ADVISORS MARCH 5, 2020 Siphon Interchange West Area Eligibility Report `' Page 1 THE SIPHON INTERCHANGE WEST AREA URBAN RENEWAL ELIGIBILITY REPORT BACKGROUND Preparation of this Eligibility Report ("Report") was authorized by Rodney Burch, Administrator for the Urban Renewal Agency of the City of Chubbuck, Idaho, also known as the Chubbuck Development Authority ("Agency") on February 18, 2020. This Report supplements the two reports listed below: Eligibility Study for Siphon Interchange West Urban Renewal Area, dated October 2018 Eligibility Study for Siphon Interchange West Urban Renewal Area, 2019 Supplement, dated August 2019, The City Council of the City of Chubbuck, Idaho (the "City Council") adopted the findings set forth in the above reports and directed the Agency to prepare an urban renewal plan or plans for the area deemed eligible. This Report considers the eligibility of an additional parcel of real property adjacent and contiguous to the properties considered for eligibility in the previous reports and will provide the technical support for the first step in planning urban renewal projects. That first step is a policy decision by the City Council to designate a specific area as deteriorated or deteriorating and to authorize the Agency to prepare an urban renewal plan or plans for the area encompassed by the three (3) reports. The subject property, also referred to as the supplemental study area, consists of 87.04 acres generally located at the southeast intersection of Tyhee Road and the Union Pacific Railroad (UPRR) Mainline which runs from Pocatello to Idaho Falls. The property is bordered by the UPRR Mainline on the west, Tyhee Road on the north, bordered on the east by a line of longitude at approximately 112°.27'.23.00" W and bordered on the south by a line of latitude at approximately 42°.56'.25.00" N. Please see the attached map in EXHIBIT A for a clearer understanding of the proposed boundaries of the supplemental study area. SIPHON INTERCHANGE WEST AREA Siphon Interchange West Area Eligibility Report Page 2 The Agency Board has asked that a study be completed to determine compliance with the statutory requirements before recommending to the City Council that a new Urban Renewal Area be created. Idaho Code Section 50-2008(a) states: An urban renewal project for an urban renewal area shall 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 a combination thereof and designated such area as appropriate for an urban renewal project. This Report will provide an application of the criteria outlined in Title 50, Chapters 20 and 29, Idaho Code, to aid the City Council in making this determination and if so determined, authorize the development of an urban renewal plan or plans for said area. As previously discussed, Step One in planning new renewal projects is a resolution by the City Council making certain findings about specific geographic areas. This resolution would also authorize the Agency to prepare urban renewal plans for the areas. The attached definitions of deteriorating area and urban renewal project are very pertinent to this step and are the focus of this Report. Step Two in the renewal planning process is action by the Agency to prepare urban renewal plans and recommend their approval to the City Council. The City Council initiates Step Three by referring the plans to the Planning and Zoning Commission and setting a public hearing before the City Council on the plans. Step Three is completed by a Planning and Zoning Commission finding that the urban renewal plans conform to the City's Comprehensive Plan. Step Four is the adoption of a City Council ordinance approving the plans, after a public hearing. Siphon interchange West Area Eligibility Report /lk Page 3 DISCUSSION This Report focuses on whether the Siphon Interchange West supplemental area, as previously described and as outlined on the attached map, qualifies as a deteriorating area pursuant to Idaho Code Section 50-2018(9) and as a deteriorated area pursuant to Idaho Code Section 50-2903(8)(b) under virtually identical definitions. A copy of this joint definition is attached as Exhibit B. The first statutory reference is from the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, which is the basic urban renewal statute, while the second comes from the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, which is the revenue allocation law. Idaho Code Section 50-2018(9) was amended in 2006 by adding a new proviso concerning agricultural operations. Such agricultural operations may not be included in a deteriorating area unless the owner consents or if the operation has not been used for three consecutive years. This Report, including the area map, certifies that the proposed deteriorating area has been farmed within the last three years. In order to consider the supplemental area as deteriorated or deteriorating as defined in Idaho Code Section 50-2018(9) and Idaho Code Section 50-2903(8), consent to include the subject property in an urban renewal plan will need to be obtained from the property owner. The subject area is open land, so the area must qualify under a specific portion of Idaho Code Section 50-2018(9) and a different statutory provision, Idaho Code Section 50-2903(8)(c), which reads as follows: Any area which is predominately 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. The provisions of section 50- 2008(d), Idaho Code, shall apply to open areas. Finally, the report will discuss why the area is appropriate for an urban renewal project. A. Present Conditions Siphon Interchange West Area Eligibility Report Page 4 The attached definition of deteriorating area and deteriorated area [Idaho Code §§ 50-2018(9) and 50-2903(8)(b)] lists ten different conditions that may be present in such an area, with the tenth being the catch-all "any combination of such factors." The presence of these conditions was documented through physical observation as well as photographically documented during a site visit in February 2020, contacts with various City & County officials, and assessor file information. The area and its public infrastructure were then evaluated, and the numbers that correspond to the applicable characteristics in the definition were placed at the appropriate locations on the attached map. B. Oen Land Area The definition of Section 50-2903(8)(c) cited above lists several of the same characteristics as Idaho Code Sections 50-2018(9) and 50-2903(8)(b) under the same or similar descriptions. "Diversity of ownership" is the same, while "obsolete platting" appears to be equivalent to "faulty lot layout in relation to size, adequacy, accessibility, or usefulness." "Deterioration of structures or improvements" is apparently a combination of "a substantial number of deteriorated or deteriorating structures" and "deterioration of site or other improvements." The final term, "or otherwise," at least implies that a predominately open area shares some of the same characteristics as the previous definition of deteriorated area, Idaho Code Section 50-2903(8)(b). There is also an additional qualification that, "The provisions of Section 50-2008(d), Idaho Code, shall apply to open areas." Section 50-2008(d) lists the findings that the Council must make in the ordinance approving an urban renewal plan. In addition, this section lists the special findings that the Council must make "if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency." There is one set of findings if the area of open land is to be developed for residential uses and a separate set of findings if the land is to be developed for nonresidential uses. Basically, such open land areas may be acquired by the Agency and developed for nonresidential uses if such acquisition is needed to solve various problems, associated with the Siphon Interchange West Area Eligibility Report /1 Page 5 land or the public infrastructure, that have unreasonably delayed its development. These problems include defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, and faulty lot layout, all of which are included in one form or another in the Section 50-2903(8)(b) definition of deteriorated area. The problems that are listed only in Section 50-2008(d)(4)(2) (the open land section, specifically for non-residential uses) include economic disuse, unsuitable topography, and "the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area." The conclusion of this discussion about open land areas is that such areas qualify if any of the standard 50-2018(9) and 50-2903(8)(b) characteristics apply. But such areas also qualify if any of the problems listed only in 50-2008(d)(4)(2) apply. Clearly, lack of water and sewer facilities, a nonexistent or inadequate street system to facilitate development of the subject property, and lack of fire protection facilities are all conditions resulting in economic underdevelopment of the area or substantially impairing or arresting the sound growth of the City. The Report text that follows below discusses each of the applicable characteristics of a deteriorated area, as defined by Idaho Code Section 50-2903(8)(b). Several of these characteristics, including diversity of ownership and predominance of defective or inadequate street layout, have exact or approximate counterparts listed under Section 50-2008(d)(4)(2), so their associated numbers, 6 and 2, may be used interchangeably. Other numbers, such as 4 (insanitary or unsafe conditions) and 9 (the existence of conditions which endanger life or property by fire or other causes), fit the broader characteristic of "any combination of such factors or other conditions which retard development of the area." As discussed above, the lack of public infrastructure in the predominately open area is a significant factor in the underdevelopment of this area. Open land areas are designated with the words "Open Land." In Siphon Interchange West Area Eligibility Report Page 6 addition, lack of public infrastructure in the open land area is designated by the words "Lacks Public Infrastructure." C. DeterioratingIDeteriorated Area Characteristics The following is a listing of conditions found in the area by their corresponding numbers in the definition and a brief explanation of that condition and how it was evaluated and identified: (1) A substantial number of deteriorated or deteriorating structures. There are no structures in the supplemental study area. As a result, this criterion is not met. 2. (2) Predominance of defective or inadequate street layout. The proposed project area is open land with one two-lane road bordering it on the north. This road is inadequate to provide adequate access for development purposes of the 87 +/- acres. There are no interior roads on the subject property. As such, this constitutes an inadequate street layout and is shown by the number "2" on the map. 3. (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. The existing parcel is one large lot totaling 87.04 acres. Due to the size of the parcel, it is largely unusable until re -platted; hence a number "3" or "open land" appears on the map. 4. (4) Insanitary or unsafe conditions. There are several conditions existing within the supplemental study area that apply to this characteristic. Typical insanitary conditions include excessive amounts of junk, trash, and weeds in violation of City or County sanitation codes. Another insanitary condition occurs in areas that lack sanitary sewers or where the sanitary sewer system has insufficient capacity to serve the area. The supplemental study area is a large open area, previously used for agricultural purposes. The closest sewer service terminates approximately %4 mile from the closest border of the subject property. The closest potable water is located over 1/3 mile from the closest boundary of the subject property. As such, no public water distribution or sewer collection service exists in the interior area of the subject property, and therefore, is insufficient to serve any future development. This is partially Siphon Interchange West Area Eligibility Report A i� h Page 7 due to inadequate street system and a faulty lot layout described above. This is represented on the map by the number "4S." 5. (5) Deterioration of site and other improvements. Site improvements include parking lots, sidewalks, curb & gutter, fences, and landscaping areas, basically things other than structures that make up a developed property. The term "other improvements" is the place where public improvements such as streets, sidewalks, curbs, gutters, bridges, storm drains, parks, water mains, sanitary sewers are included. When the number "5" appears on the map in a street right-of-way it denotes those streets are deteriorated and lack site improvements as described. 6. (6) Diversity of ownership. Typically, this characteristic is present when an area that needs to be redeveloped because of rundown buildings, is divided into a number of different ownerships. It could also occur where existing businesses are hindered in expanding because of the number of adjacent property ownerships. Multiple ownerships are more difficult for developers to assemble. This characteristic does not apply to the proposed area as the property is owned by a single entity. 7. (7) Tax and special assessment delinquency exceeding the fair value of the land. This characteristic does not apply to the proposed area. 8. (8) Defective and unusual conditions of title. As the property within the proposed project area is owned by a single entity, there is not issue of defective and unusual conditions of title. This characteristic is not met. 9. (9) The existence of conditions which endanger life or property by fire and other causes. The primary focus of this characteristic is inadequate fire protection facilities, particularly fire hydrants for projected new development. This characteristic applies to the supplemental study area because adequate placement of fire hydrants does not exist within the interior of the subject property. Existing hydrants are indicated on the map with "9FH". Due to the lack of public water systems in proximity or within the supplemental study area, there is an existence of conditions which, if development occurs without such protection, would endanger life or property by fire or other causes. The lack of fire hydrants is typical throughout the entire Siphon Interchange West Area Eligibility Report ""' Page 8 area. Therefore, a number "9F" appears on the map throughout the area and indicates a lack of adequate fire protection facilities. 10. (10) Any combination of such factors. This number is placed on all areas where two or more of the other characteristics are present. D. Effects of Present Conditions 1. (a) Results in economic underdevelopment of the area. Field review and aerial photography confirm the current underdeveloped status of the area. 2. (c) Retards the provision of housingaccommodations or L) constitutes an economic or social liability. In its current condition, the property in the supplemental study area is producing minimal property taxes. In addition, there is no public infrastructure serving the area. Hence such area tends to become an economic liability for the City. (e) And is a menace to the public health, safety, morals, or welfare in its present condition or use. The previous discussion has established that this area has had very slow to no growth and, as a result, has become a modest economic liability. In addition, the nonexistent fire protection facilities create a safety problem in the area. Accordingly, these conditions represent a menace or threat to the public welfare or prosperity and safety of the community. E. Appropriateness of the Area for an Urban Renewal Project The second part of the City Council detemination requires a policy decision that the area is appropriate for an urban renewal project. Note that part of the definition of an urban renewal project includes, "undertakings and activities of a municipality in an urban renewal area for the elimination of deteriorated and deteriorating areas." The subject property once annexed, will be subject to the provisions of City of Chubbuck Comprehensive Plan, Our Valley, Our Vision, January 2002, with updates through June 2018. A fording that the area meets the definition of a deteriorating or deteriorated area would indicate that to comply with the provisions of the Comprehensive Plan the area would be appropriate for an urban renewal project. Siphon Interchange West Area Siphon Interchange West Area Eligibility Report Page 9 This Report has provided support for a finding that the Siphon Interchange West 2020 Supplemental Area constitutes a deteriorating or deteriorated area because of the presence of various conditions, most of which are related to the public infrastructure. The public infrastructure, particularly streets, water, sewer, and fire protection, are very inadequate to serve the needs of planned future development. Preparation and approval of an urban renewal plan, including a revenue allocation financing provision, would give the City an additional resource to help solve the public infrastructure problems in the proposed project area. In effect, property taxes generated by new development within the area can be used by the Authority to finance the needed public improvements to encourage more development. Finally, the new development would also generate additional jobs that would, in turn, benefit residents of the community. REVENUE ALLOCATION AREAS BASE VALUE The discussion of Base Value of existing and proposed Revenue Allocation Areas ("RAA") in the City present an interesting proposition. There are currently two existing RAA's within the city limits --- The Pincridge Mall URD and the Central Chubbuck URD. There are additionally three proposed RAAs -- Harvest Springs, Northside Crossing, and Hillcrest Heights. Prior to completing this 2020 supplemental report, a total of three eligibility studies were conducted on properties within or adjacent to the City. As referenced at the beginning of this Report, two studies were conducted in 2018 and 2019 on properties west of I-15. An additional study was completed in 2018 on properties cast of I-15. The 2019 supplemental report utilized the estimated base values from the 2018 studies to determine whether base values of the proposed RAAs and larger study areas exceeded the statutory limit as listed in Idaho Code 50- 2903(15). EXHIBIT C shows the current values as reported on the Bannock County Parcel Viewer as of the date of this Report. For those properties where an assessed value is not shown on the Bannock County Parcel Viewer certain assumptions have been made. The basis of these assumptions is looking at like properties located in the vicinity of the various study areas and are identified in EXHIBIT C. Siphon Interchange West Area Eligibility Report Page 10 Summary of Base Values Existing Revenue Allocation Areas Value Year of Valuation Central Chubbuck URD $13,382,652 2018 Pine Ridge Mall URD $36,163,800 2018 Proposed Revenue Allocation Areas Value Year of Valuation Hillcrests Heights $ 297,913 2019 Harvest Springs $ 293,089 2019 Northside Crossing $ 309,731 2019 2020 Supplemental Area $ 107,021 2020 Balance of Study Areas 2018 Eligibility Report $4,291,406 2018 Total Base Valuation of existing and Proposed RAA's $50,975,612 Total Base Value of Existing RAA's, proposed RAA's and the balance of previous study areas totals $54,886,175. The 2018 taxable value for the City was $779,359,220. As limited by Idaho Code 50-2903(15), the base value of all RAAs cannot exceed 10% of the taxable valuation of the City, or $77,935,922. As evidenced in this calculation the current RAA's, the proposed RAA's and the balance of study areas already determined to be eligible for urban renewal development projects does not exceed the statutory limitation. CONCLUSION This report concludes that the Siphon Interchange West 2020 Supplemental Area as described in this Report constitutes a deteriorating or deteriorated area characterized by inadequate public infrastructure that is appropriate for urban renewal projects. Siphon Interchange West Area Eligibility Report Page 11 EXHIBIT A MAPS OF SUBJECT AREA Siphon Interchange West Area Eligibility Report """ Page 12 r — s.ra Siphon Interchange West Area Eligibility Report 2018 Study Area 2019 Supplemental Area 2020 Supplemental Area Page 13 Siphon Interchange West Area Eligibility Report "" Page 14 1 i:.,: t. ik LACKS INMUTRUCIURE !T 1w, EXHIBIT B EXCERPTS OF IDAHO CODE DEFINITION OF DETERIORATING AREA, IDAHO CODE § 50-2018(9) AND DETERIORATED AREA, IDAHO CODE 50-2903(8)(b) A deteriorating or deteriorated area is any area which by reason of the presence of (1) a substantial number of deteriorated or deteriorating structures; (2) predominance of defective or inadequate street layout; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) insanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership; (7) tax or special assessment delinquency exceeding the fair value of the Iand; (8) defective or unusual conditions of title; (9) the existence of conditions which endanger life or property by fire and other causes; or (10) any combination of such factors, (a) (results in economic underdevelopment of the area);' (b) substantially impairs or arrests the sound growth of a municipality; (c) retards the provision of housing accommodations; or (d) constitutes an economic or social liability; and (e) is a menace to the public health, safety, morals, or welfare in its present condition or use; provided, that if such deteriorating area consists of open land the conditions contained in the proviso in Idaho Code Section 50-2008(d) shall apply.' Provided, however, this definition shall not apply to any agricultural operation, as defined in Section 22- 4502(1), Idaho Code, absent the consent of the owner of the agricultural operation, except for an agricultural operation that has not been used for three (3) consecutive years.3 'This appears only in the revenue allocation statute. '--This appears only in the urban renewal statute. 3 This broviso was added to the urban renewal statute in 2006 by House Bill 735, as amended. Siphon Interchange West Area Eligibility Report AL,' i � Page 17 Idaho Code § 50-2008(d) (d) Following such hearing, the local governing body may approve an urban renewal project and the plan therefor if it finds that (1) a feasible method exists for the location of families who will be displaced from the urban renewal area in decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families; (2) the urban renewal plan conforms to the general plan of the municipality as a whole; (3) the urban renewal plan gives due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety and welfare of children residing in the general vicinity of the site covered by the plan; and (4) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise: Provided, that if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency, such area shall not be so acquired unless (1) it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or (2) if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. DEFINITION OF URBAN RENEWAL PROJECT, IDAHO CODE § 50-2018{10) "Urban renewal project" may include undertakings and activities of a municipality in an urban renewal area for the elimination of deteriorated or deteriorating areas and for the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan. Such undertakings and activities may include: (a) acquisition of a deteriorated area or a deteriorating area or portion thereof; (b) demolition and removal of buildings and improvements; (c) installation, construction, or reconstruction of streets, utilities, parks, playgrounds, off-street parking facilities, public facilities or buildings and other improvements necessary for carrying out in the urban renewal area the urban renewal objectives of this act in accordance with the urban renewal plan; (d) disposition of any property acquired in the urban renewal area (including sale, initial leasing or retention by the agency itself) at its fair value for uses in accordance with the urban renewal plan except for disposition of property to another public body; (e) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of building or other improvements in accordance with the urban renewal plan; (f) acquisition of real property in the urban renewal area which, under the urban renewal plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair or rehabilitation of the structures for guidance purposes, and resale of the property; (g) acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or to prevent the spread of blight or deterioration, or to provide land for needed public facilities; (h) lending or investing federal funds; and (i) construction of foundations, platforms and other like structural forms. Exhibit C EXISTING & PROPOSED REVENUE ALLOCATION AREAS BASE VALUE CALCULATIONS Siphon Interchange West Area Eligibility Report Page 20 City of Pine Ridge Mall Existing 36,163,8011 Central Chubbuck Existing 13,382,652 Harvest Springs Proposed $ 293,089 HiR[rest Heights Proposed $ 297,913 Northside Crossing Proposed $ 309,791 $ 293,089 Proposedto Acres Value 2020 Supplemental be Included in RPRCCPC042500 Area Northside $ 107,021 RPRCCPC043200 Crossing 461.46 Oalance of Parcels RPRCCPr042300 25.80 $ 3,996.00 $ in 2018 Eligibility $ 3,996 RUPP, HAROLD L SR TRUST $ 4,331,969 Study 97.11 $ 3,059 RUPP, HAROLD L511 TRUST TOTAL BASE VALUE 16.07 $ 27,190.00 5 1,691.97 $ 27,190 RUPP, HAROLD LSR TRUST RPRCCPC0431CO $ 54,886,175 bbuck Base Value Worksheet Assumptions: For those properties highlighted in yellow, an assumption of an AG -Exempt value of $1229.56 per acre has been made. As these parcels have recently been split or combined due to sales or other activity, they have not been reviewed and assessed by the Bannock County Assessor's office as of the date of this report Harvest springs Acres Value $/Acre rrnp-iso-ts $ $ $ $ 85,917 $ $ $ 85,917 $ RPRCCPC041700 256.47 $ 280,157 $ 1,092.36 $ 280,157 Harvust5p&Sn JV RPRCCPC041600 11.08 $ 17,937 $ 1,167.15 $ 12,932 Harvest springs JV $ - 267.55 $ 293,089 $ - $ 293,089 Hillcrest Heights Acres Value $/Acre improvements 1.19 $ 45,421.00 $ RPRCCPC042500 7.88 $ 1,752.00 $ 222.34 $ 1,752 RUPP, HAROLD L SR TRUST RPRCCPC043200 112.06 $ 51,711.00 $ 461.46 $ 51,711 RUPP, HAROLD LSR TRUST RPRCCPr042300 25.80 $ 3,996.00 $ 154.88 $ 3,996 RUPP, HAROLD L SR TRUST RPRCCPC0436CO 35.23 $ 3,069.00 $ 97.11 $ 3,059 RUPP, HAROLD L511 TRUST RPRCCPC043000 16.07 $ 27,190.00 5 1,691.97 $ 27,190 RUPP, HAROLD LSR TRUST RPRCCPC0431CO 24.76 $ 179,090.00 $ 7,232.63 $ 179,080 RUPP, HAROLD LSR TRUST RPRCCPC043700 80.69 $ 20,027.00 $ 248.20 $ 20,027 RUPP, HAROLD L SR TRUST RPRCCPC043ROO 31.97 $ 11,088.00 $ 346.83 $ 11,088.00 RUPP, HAROLD L SR TRUST BPRCCPC040200 334.46 5 297,913 $ 979.80 $ - $ 297,913 Northside Crossing RPRCCPC044088 RPR04CI000100 WCITAKER AD RFRCCFC0419861 RPRCCPC042000 RPRCCPC041900 RPR38®3055507 32.57 $ 40,046.77 $ 6.40 $ 7,869.18 $ 0.75 $ 922.17 $ 98.45 $ 121,050.00 $ 0.91 $ 53,926.00 $ 2.40 $ - $ 87.04 $ 107,020.90 $ 5 330,83503 1,229.56 1,229.56 1,2x8.s6 1,729.56 59.259 $ - 1,229.56 $ $ $ $ $ 85,917 $ $ $ 85,917 $ 40,047 JYY LLC 7,869 Try LLC 922 JYY LLC 121,050 Yost 139,843 yast - City 107,021 JYY LLC 416,752 Miscellaneous Parcels Studied in All Eliglhilily SN&es 74.78 $ 15,893.00 $ 212.53 East of Hiline, West of Harvest Springs 0.67 $ - RPRCCPC0412GO 1.50 $ 69,54000 $ 46,360-00 $ 176,272.00 $ 245,762.00 Dunn RPRCCPC041300 1.19 $ 45,421.00 $ 38,168.91 $ 45,421.00 Dunn R8R3803056213 25.16 $ 30,935.73 $ 1,229.56 $ 30,935.73 Freed RPRCCPC041400 15.37 $ 68,747.00 $ 4,472.80 $ 373,919.00 $ 442,666.00 Freed RPR3803056214 7.83 $ 9,627.45 $ 1,229.56 $ 9,627.45 Stoddard $ 45,116.00 $ 88,462.75 $ 236,509.00 $ 281,625AO Heiner $ 774,412,18 Terra Venture Holdings $ 316,&12.00 $ 344,531.00 Findlay RPRCTV5000303 0.54 RPRCCPCO39900 9.32 $ 62,777.00 $ 6,735.73 $ 62,777.00 Terraventure BPRCCPC040200 11.38 $ 80,713.00 $ 7,092.53 $ 80,713.00 Terraventure RPRCCPC0403GO 4.33 $ 26,9u4.00 $ 6,Z13.39 $ 26,904.00 Terraventure RPRCCPC040500 9.68 $ 62,777.00 $ 6,485.23 $ 62,777.00 Terraventure RPRCCPC040000 6.25 $ 44,840.00 $ 7,174.40 $ 44,840.00 Terraventure RPRCCPCO39600 14.67 $ 98,6511.00 $ 6,724.61 $ 98,650.00 Terraventure RPRCCPCO39900 10.56 $ 71,744.00 $ 6,793.94 $ 71,744.00 Terraventure RPRCCPC039400 36.50 $ 223,490.00 $ 6,123.01 $ 223,490.00 Terraventure RPRCCPCO39200 28.65 $ 197,299.00 $ 6,886.53 $ 197,299.00 Terraventure $ - $ city $ 869,194.00 Miscellaneous Parcels RPRCCPCO391CO 74.78 $ 15,893.00 $ 212.53 $ 15,1893.00 Hart RPRrCPC041100 0.67 $ - $ - City RPRCCPC04U9UU 1.68 $ - $ - City RPRCCPC0409GO 1.84 $ - $ - City RPRCCPC0406CO 3.85 $ 129,483.00 $ 33,631.95 $ 6,721.00 $ 136,204.00 Scardino RPRCCPC040700 7.81 $ 149,360.00 $ 19,124.20 $ 239,778.00 $ 389,138.00 Scardino RPRCTV5000101 0.51 $ 45,116.00 $ 88,462.75 $ 236,509.00 $ 281,625AO Heiner RPRCTVS000200 0.57 $ 27,689.00 $ 48,577.19 $ 316,&12.00 $ 344,531.00 Findlay RPRCTV5000303 0.54 $ 43,493.00 $ 80,542.59 $ 126,716.00 $ 170,209,00 Thomas RPRCTV5000302 0.36 $ 21,754.00 $ 60,427.78 $ 1,620.00 $ 23,374.00 Findlay RPRCBE0000101 0.75 $ 48,119.00 $ 64,158.67 $ 262,459.00 $ 310,578.00 Williams RPRCBECOOD102 0.75 $ 48,119.00 $ 64,158.67 $ 255,679,00 $ 303,798.00 Perkins RPRCBECO00202 0.98 $ 61,772,00 $ 53,032,65 5 336,752,00 $ 398,524.00 Burnham RPRCBECOD0201 0.46 $ 48,247.00 $104,884.78 $ 266,242.00 $ 314,489.00 Wells Fargo RPRCMVSDO0200 0.71 $ - $ - City RPRCMVSDODI00 0.85 $ - $ - City GARDEN DR 047. $ - $ - City RPRCJCV000300 0.24 $ - $ city $ 2,688,363.00 4842-4467-5768, v. 1 Exhibit D RESOLUTION NO.2020-_O�, BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO A/K/A CHUBBUCK DEVELOPMENT AUTHORITY: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO AWA CHUBBUCK DEVELOPMENT AUTHORITY, ACCEPTING THAT CERTAIN SUPPLEMENTAL URBAN RENEWAL ELIGIBILITY REPORT CONCERNING THE ELIGIBILITY OF CERTAIN PROPERTY ADJACENT AND CONTIGUOUS TO THE 2018 AND 2019 STUDY AREAS REFERRED TO AS THE SIPHON- NORTHGATE INTERCHANGE WEST AREA AS AN URBAN RENEWAL AREA AND REVENUE ALLOCATION AREA AND JUSTIFICATION FOR DESIGNATING THE SUPPLEMENTAL AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; AUTHORIZING AND DIRECTING THE CHAIR, VICE -CHAIR OR AGENCY ADMINISTRATOR TO TRANSMIT THE SUPPLEMENTAL REPORT AND THIS RESOLUTION TO THE CITY COUNCIL OF THE CITY OF CHUBBUCK REQUESTING ITS CONSIDERATION FOR DESIGNATION OF AN URBAN RENEWAL AREA AND SEEKING FURTHER DIRECTION FROM THE CITY COUNCIL SUBJECT TO CERTAIN CONDITIONS, AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the Urban Renewal Agency of the City of Chubbuck, Idaho, also known as the Chubbuck Development Authority, an independent public body corporate and politic, authorized under the authority of the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (hereinafter the "Law") and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (hereinafter the "Act'j, a duly created and functioning urban renewal agency for Chubbuck, Idaho, hereinafter referred to as "Agency." WHEREAS, by Resolution No. 4-92, dated April 11, 1992, the City Council (the "City Council") of the City of Chubbuck, Idaho (the "City") created an urban renewal agency, pursuant to the Law; 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 RESOLUTION NO. 2020- - I 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; WHEREAS, on or about November 23, I998, 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 I992 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 Commission ("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 Project 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 Mail 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 retained 1 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"); RESOLUTION NO. 2020- -2 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 was 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 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; 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; 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, and the Agency on August 2019, by way of Resolution No. 2019-_, accepted the 2019 Study and authorized the Agency Chair to submit the Resolution and 2019 Study to the City Council for its consideration; WHEREAS, the City Council on or about August _, 2019, adopted and approved Resolution No. 2019_ finding the Study Area described in the 2019 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; WHEREAS, after adoption of Resolution No. 2019- by the City Council, a property owner requested that additional property adjacent and contiguous 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; RESOLUTION NO. 2020- -3 WHEREAS, in February 2020, the Agency retained Outwest Policy Advisors and authorized Brent Tolman to commence an eligibility study and preparation of an eligibility report of an area approximately 87 acres in size generally located at the southeast intersection ofTyhee Road and the: Union Pacific Railroad (UPRR) Mainline which runs from Pocatello to Idaho Falls. The property is bordered by the UPRR Mainline on the west, Tyhee Road on the north, bordered on the east by a line of longitude at approximately 112°.27'.23.00" W and bordered on the south by a line of latitude at approximately 42°.56'.25.00" N. (the "2020 Supplemental Study Area"); WHEREAS, the Agency has obtained a supplemental eligibility report entitled Siphon Interchange West Supplemental Urban Renewal Eligibility Report, dated March 5, 2020 (the 112020 Study"), which examined the 2020 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 2020 Study has been submitted to the Agency, a copy of which is attached hereto as Exhibit A; WHEREAS, under the Law and Act, Idaho Code Sections 50-2903(8)(1) 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(2), Idaho Code, absent the consent of the owner of the agricultural operation except for an agricultural operation that has not been used for three (3) consecutive years; WHEREAS, the 2020 Study includes a parcel subject to such consent. While the necessary consent has not been obtained, any consent shall be obtained prior to City Council consideration of any urban renewal plan; 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 §§ 50-2018(9), 50-2903(8) and 50-2008(d) list additional conditions applicable to open land areas, including open land areas to be acquired by the Agency; WHEREAS, the 2020 Study addresses the necessary findings concerning including open land within any urban renewal area as defined in Idaho Code Sections 50-2018(9), 50- 2903(8)(c), and 50-2008(d); WHEREAS, pursuant to Idaho Code § 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; RESOLUTION NO. 2020- -4 WHEREAS, Idaho Code § 50-2906 also requires that in order to adopt an urban renewal plan containing a revenue allocation financing provision, the local governing body trust matte a finding or determination that the area included in such plan is a deteriorated area or deteriorating area; WHEREAS, the Agency Board finds it in the best public interest to accept the 2020 Report. NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO, AIKIA CHUBBUCK DEVELOPMENT AUTHORITY, AS FOLLOWS: Section 1. That the above statements are true and correct. Section 2. That the Board acknowledges acceptance and receipt of the 2020 Study. Section 3. That there are one or more areas within the City that arc a deteriorating area or a deteriorated area, or a combination thereof, as defined by Idaho Code §§ 50-2018(9) and 50-2903(8). Section 4. That one such area is an area approximately 87.04 acres in size generally located at the southeast intersection of Tyhee Road and the Union Pacific Railroad (UPRR) Mainline which runs from Pocatello to Idaho Falls. The property is bordered by the UPRR Mainline on the west, Tyhee Road on the north, bordered on the east by a line of longitude at approximately 112°.27'.23.00" W and bordered on the south by a line of latitude at approximately 42°.56'.25.00'° N. Section 5. That the rehabilitation, conservation, development, and redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, and welfare of the residents of the City. Section 6. That the Chair or Vice -Chair of the Board of Commissioners or the Agency Administrator is hereby authorized to transmit the 2020 Study to the City Council requesting that the City Council: a. Determine whether the Supplemental Study Area identified in the 2020 Study qualifies for an urban renewal project and justification for designating the area, as appropriate, for an urban renewal project; b. If such designation is made, whether the Agency should proceed with the preparation of an urban renewal plan or plans for the area, which plan or plans may include a revenue allocation provision as allowed by law; C. Coordinate with the Agency to obtain the required agricultural operation consent from the property owner. RESOLUTION NO. 2020- -5 Section 7. That this Resolution shall be in full force and effect immediately upon its adoption and approval. We PASSED by the Urban Renewal Agency of the city of Chubbuck, Idaho, on i P, . 2020. Signed by the Chair of the Board of Commissioners and attested by the Secretary to the Board of Commissioners, on ApM JB, 2020. APPROVED: a' ATTEST: Cnr B 1 4W, Qqlt'- Secretary 4824-0849-1704, V, 1 RESOLUTION NO. 2020- -6