HomeMy WebLinkAboutItem #2 3rd Addendum (CDA)City of Chubbuck
290 E Linden Ave
CHUBBUCI( Chubbuck, ID 83202
The urban renewal agency in the City of Chubbuck, Idaho
Memo
To: Honorable Mayor and City Council
From: Devin Hillam, CDA Executive Director �-N
Date: August 24, 2023
Re: 3rd Addendum to Project Development Agreement
As we draw near to the sunsetting of the 1992 Urban Renewal District, there are a few projects
that are incomplete. All but one of those projects will likely be completed in coming months but there is
one portion of a project that started years ago, the New Day Parkway expansion, that is waiting on the
railroad and state to widen railroad crossings and both the City and CDA are unaware of what the
construction timing will be. As such, at their August meeting, the Chubbuck Development Authority
approved the attached 3rd Addendum to the Project Development Agreement which proposes that the
CDA pay the City $350,000 (the estimated cost that CDA would have paid towards the crossing had the
project been completed within the life of the district) with the stated release of any further obligations
for funding or commitments for the project from the CDA.
Both attorneys from the CDA and City have reviewed the agreement. I recommend approval by
the City Council.
J: JAdministration�Chubbuck DevelopmentAuthority�00 Urban Renewal Plan 1992�city cda 92 plan agreement 2020 3rd
Addendum memo to Council post CDA sign_ dbh_8.24.2023.docx
THIRD ADDENDUM TO PROJECT DEVELOPMENT AGREEMENT
This Third Addendum to Project Development Agreement ("Second Addendum") is entered into
effective August , 2023 ("Effective Date"), to supplement the Project Development Agreement
dated May 19, 2021 ("Agreement"), as amended by the First Addendum to Project Development
Agreement dated January 18, 2023 ("First Addendum") and further amended by the Second Addendum to
Project Development agreement dated April 6p, 2023 ("Second Addendum"), between the City of
Chubbuck, an Idaho municipal corporation ("City"), and the Chubbuck Development Authority
("CDA"), the urban renewal agency of the City organized under the Idaho Urban Renewal Law of 1965,
Chapter 20, Title 50, Idaho Code .
Recitals
A. The Chubbuck City Council, by Ordinance No. 385 dated October 27, 1992, approved the
Urban Renewal Plan Chubbuck Downtown Improvement Project ("1992 Plan") authorizing the CDA to
carry out projects to eliminate, remedy, or prevent deteriorated or deteriorating areas through redevelop-
ment, rehabilitation, conservation, or a combination thereof, in accordance with the 1992 Plan.
B. The City and the CDA entered into the Agreement for the purpose of identifying priority
public improvement projects to be completed under the 1992 Plan, and to identify additional projects that
may be completed should funding permit, and to define the rights and obligations of the CDA and the
City with regard to development of such projects.
C. As of the date of this Third Addendum, some of the projects the CDA has committed to
complete and fund under the 1992 Plan are incomplete. The incomplete projects include the widening of
New Day Parkway to four (4) lanes ("New Day Parkway Project").
D. The CDA, by Resolution No. 2023-1 dated July 18, 2023, terminated the 1992 Plan. In ter-
minating the 1992 Plan, the CDA contemplated that all projects under the 1992 Plan would be completed
and paid for by the end of FY2023 (September 30, 2023). Due to delays in obtaining approval from the
Union Pacific Railroad, the current status of the New Day Parkway Project indicates that the work will
not be complete and billed by the end of FY2023.
E. In light of the time constraints for completion and payment of the projects by the CDA under
the 1992 Plan and termination thereof, the CDA and the City desire to enter into an agreement wherein
the CDA agrees to pre -pay the $350,000.00 it committed to the New Day Parkway Project to the City in
advance of completion of the project, and the City agrees to ensure completion of the New Day Parkway
Project utilizing the CDA funds as well as the amount the City has committed toward the project.
Agreement
Therefore, the parties agree as follows:
1. Pre -payment. The CDA shall immediately tender to the City the amount of $350,000.00 as
pre -payment of its share for the remaining work to be completed on the New Day Parkway Project.
2. Project Completion. The City agrees to ensure completion of the New Day Parkway Project and
utilize the pre -payment funds of $350,000.00 from the CDA in payment of the New Day Parkway Project.
3. Release. Upon receipt of the pre -payment funds in the amount of $350,000.00 from the CDA, the
City releases the CDA from any and all obligations, monetary or otherwise, in relation to the New Day
Parkway Project.
THIRD ADDENDUM TO PROJECT DEVELOPMENT AGREEMENT
4. Counterparts. This Third Addendum may be executed in counterparts which, when taken together,
shall constitute one and the same agreement.
5. Electronic Signatures. Signatures to this Third Addendum transmitted by facsimile or email shall
be valid and effective to bind the party so signing.
SIGNED and DATED EFFECTIVE on the Effective Date set forth above.
Kevin Englagd, Mayor
u <er, Chair
Development Authority
THIRD ADDENDUM TO PROJECT DEVELOPMENT AGREEMENT