HomeMy WebLinkAboutItem #1 Pine Ridge Mall Redevelopment Fee440d,t\
CHUBBUCK
1 0 0 H 0
Memo
To: Honorable Mayor & City Council
Community Services Department
290 E Linden Ave., Chubbuck, ID 83202
208.237.2430
www.CityofChubbuck.us
From: Devin Hillam, Community Services Director ID 7
Date: August 8, 2024
Re: Pine Ridge Mall Request for Redevelopment Fee Relief
As the Council may be aware, there are new owners of the Pine Ridge Mall facility, Simon CRE, and they
intend to substantially redevelop and improve the site. In the attached request, they are seeking building permit
and plan review fee relief for projects within the redevelopment, citing high costs of construction, the interest rate
environment, and costs of relocating/terminating existing leases. In July 2024, Simon CRE sought fee relief from
Bannock County for landfill fees and after reviewing the petition, the County Commissioners approved up to
$200,000 in relief.
Upon review of the project estimates as provided in the attached documents, the Building Division has
found that estimated building permit and plan review costs are as follows:
B:\Public Works\Engineering\Developments\Pine Ridge Mall\Redevelopment 2023\Agency Approvals\City
Council - Fee Relief 2024\Pine Ridge Redevelopment fee relief O8.O8.2O24.docx
1
Estimated
Estimated Fee Eligible
Space
Construction Cost
Fee Type
Estimated
Fee
for Reduction
Target
20,000,000.00
Building Permit
$
53,958.75
$
53,958.75
Building Plan
Review
$
35,073.19
$
28,058.55
Shops J Interior
2,500,000.00
Building Permit
$
11,083.75
$
11,083.75
Building Plan
Review
$
7,204.37
$
5,763.50
Retail A- Kohl's
4,000,000.00
Building Permit
$
6,558.75
$
6,558.75
Building Plan
Review
$
10,763.19
$
8,610.55
Retail B -TBD
3,100,000.00
Building Permit
$
13,273.75
$
13,273.75
B:\Public Works\Engineering\Developments\Pine Ridge Mall\Redevelopment 2023\Agency Approvals\City
Council - Fee Relief 2024\Pine Ridge Redevelopment fee relief O8.O8.2O24.docx
1
With regards to fees, it needs to be understood that the only fees that the City can waive for this project are
building permit fees and 80% of commercial plan review fees (the remaining 20% is contractually obligated to go
to the City of Pocatello for electrical and plumbing plan reviews). Examples of fees that cannot be adjusted include:
• Water Treatment Plan Capacity Fees — pass through to City of Pocatello
• Water Connection/Capacity Fees — Rate Study required
• Sewer Connection/Capacity Fees — Rate Study required
• Police, Fire/EMS, & Parks/Rec (if ever applicable) Impact Fees — Statutorily required, when applicable
• Electrical Plan Review Fee (from the 20% cost of Plan Review Fee) — Fee for service from City of Pocatello
Electrical Permit Fee — Fee for service from City of Pocatello
Plumbing Plan Review Fee (from the 20% cost of Plan Review Fee) — Fee for service from City of Pocatello
B:\Public Works\Enginee ring\Developments\Pine Ridge Mall\Redevelopment 2023\Agency Approvals\City
Council - Fee Relief 2024\Pine Ridge Redevelopment fee relief 08.08.2024.docx 2
Building Plan
Review
$
8,627.94
$
6,902.35
Retail C- TBD
3,500,000.00
Building Permit
$
14,733.75
$
14,733.75
Building Plan
Review
$
9,576.94
$
7,661.55
Retail D- TBD
4,000,000.00
Building Permit
$
16,558.75
$
16,558.75
Building Plan
Review
$
10,763.19
$
8,610.55
Pad F -TBD
1,500,000.00
Building Permit
$
7,433.75
$
7,433.75
Building Plan
Review
$
4,831.94
$
3,865.55
Pad G- TBD
420,000.00
Building Permit
$
1,838.00
$
1,838.00
Building Plan
Review
$
1,194.70
$
955.76
Pad H- Buckle
2,143,592.00
Building Permit
$
9,784.35
$
9,784.35
Building Plan
Review
$
6,359.82
$
5,087.86
Padl-TBD
420,000.00
Building Permit
$
1,838.00
$
1,838.00
Building Plan
Review
$
1,194.70
$
955.76
Total
$
232,651.58
$
213,533.58
With regards to fees, it needs to be understood that the only fees that the City can waive for this project are
building permit fees and 80% of commercial plan review fees (the remaining 20% is contractually obligated to go
to the City of Pocatello for electrical and plumbing plan reviews). Examples of fees that cannot be adjusted include:
• Water Treatment Plan Capacity Fees — pass through to City of Pocatello
• Water Connection/Capacity Fees — Rate Study required
• Sewer Connection/Capacity Fees — Rate Study required
• Police, Fire/EMS, & Parks/Rec (if ever applicable) Impact Fees — Statutorily required, when applicable
• Electrical Plan Review Fee (from the 20% cost of Plan Review Fee) — Fee for service from City of Pocatello
Electrical Permit Fee — Fee for service from City of Pocatello
Plumbing Plan Review Fee (from the 20% cost of Plan Review Fee) — Fee for service from City of Pocatello
B:\Public Works\Enginee ring\Developments\Pine Ridge Mall\Redevelopment 2023\Agency Approvals\City
Council - Fee Relief 2024\Pine Ridge Redevelopment fee relief 08.08.2024.docx 2
• Plumbing Permit Fee — Fee for service from City of Pocatello
• Development Plan Review Fees, including plats, plan reviews, traffic impact analysis reviews, etc., due to
employee workloads and the facts that hard costs related to publishing and engaging with contractors for
reviews occurs.
Mayor's Recommendation
Mayor England recommends waiving up to $200,000 for building permit fees and the City's portion of plan
review fees, conditioned about written, binding acceptance by Simon CRE that if Target does not locate on the site,
the City may require waived fees to be paid to the City and Simon CRE agrees to pay them, and that Simon CRE
consent to allowing the political agencies the ability to be next in line for tax increment after the outstanding bond
is repaid.
Mayor England requests that if fees are waived, that the City (and County) ask the Chubbuck Development
Authority to enter into a Participation Agreement such that if/when the existing Pine Ridge Mall bond is repaid in
the urban renewal district, that remaining increment funds be used to reimburse the political entities the costs of
the fee waivers. Due to changes in the base value in the district in 2024, it is unknown whether or when the bond
will be repaid but in the event that it is, the Mayor believes that the political entities should be made as whole as
possible. This agreement will require binding consent by Simon CRE.
Mayor England is supportive of the request for the following reasons:
• Target has long been a desired commercial amenity in the community;
• The lack of Target, a popular big box store, in our area results in large retail leakage to markets like Idaho
Falls which have a Target;
• The mall site, although now nicely developed along the exterior edges, suffers from underutilization and is
in need of redevelopment;
• Under current workload and due to the fact that commercial buildings have engineers that do inspections
of many project elements, the Building Division should be able to accommodate the workload for plan
reviews and inspections without requiring additional resources (i.e., a soft cost for the City); and
• $200,000 aligns with what the County has currently approved.
B:\Public Works\Enginee ring\Developments\Pine Ridge Mall\Redevelopment 2023\Agency Approvals\City
Council - Fee Relief 2024\Pine Ridge Redevelopment fee relief 08.08.2024.docx 3
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
SIMONCRE PROSPECTOR, LLC
July 30, 2024
City of Chubbuck
ATTN: City Council Members
290 E. Linden Ave.
Chubbuck, ID 83201
Re: Building Permit Fee Waiver - Proposed Shopping Center Re -Development 4155
Yellowstone Avenue, Chubbuck, ID, 83202
Dear City of Chubbuck Council Members,
SimonCRE Prospector, LLC is the landowner and developer working on the Pine Ridge Mall
re -development where we are aiming to deliver a successful shopping center for the residents
of Chubbuck and surround areas. It is with a view towards accomplishing this goal that leads
us to respectfully request the waiver for future building permit fees related to the
redevelopment of the Pine Ridge Mall shopping center. The waiver request is needed given
the high costs of construction, interest rate environment, and specific requirements for
relocating / terminating existing leases; we are in need of assistance to help make this plan a
reality.
The following memorandum illustrates the importance of delivering this project to the city,
and residents alike.
Please feel free to reach out with any questions or concerns you may have. We look forward
to opening a productive and respectful dialogue with the City of Chubbuck City Council
members on this matter to move forward with this project in a financially sensible manner.
Thank you for taking the time to consider this request.
Kind regards,
DocuSigned by:
3E5EOOF4D413438...
Joshua Simon
Chief Executive Officer & Founder
SimonCRE Prospector, LLC
480.588.2999
Joshua&simoncre.com
SimonCRE Prospector, LLC
6900 E 2nd Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
SIMON
CRS
SIMON COMMERCT
SIMONCRE PROSPECTOR, LLC
DATE: JULY 30, 2024
TO: CITY OF CHUBBUCK CITY COUNCIL
FROM: JOSHUA SIMON, CHIEF EXECUTIVE OFFICER AND FOUNDER, SIMONCRE
PROSPECTOR, LLC
RE: 4155 Yellowstone Avenue, Chubbuck, ID, 83202 - Proposed Land Fill Fee Relief for Multi -
Tenant Commercial Shopping Center
Pine Ridge Mall Revitalization: Our project aims to revitalize the area and bring new life to
a currently outdated space. We believe there is a lack of modern amenities and retail offerings
has led to a decline in foot traffic and overall economic vitality in the area. Based on the latest
rent roll from early June 2024, the mall currently has a vacancy rate of 22.19%. This can be
attributed to the closure of the mall's anchor tenants, which has furthermore led to a decrease
in the tenant occupancy rates. SimonCRE bought this property in May of 2024, and it is
apparent that no real investment has been made since the origination of the mall, which is
unfortunate, considering the mall's longstanding importance as a cornerstone of the
community for many years. The roof and HVAC units haven't been replaced or updated since
the year 1981, so we can see that the conditions of the property have been neglected. The
market demands for a shopping center has significantly changed from 1981, so the current
operations that are on display at the current mall.
By replacing this outdated mall with a new, vibrant open-air retail shopping center, we aim to
revitalize the community, attract more visitors, and stimulate business growth in the area. Our
proposed shopping center will feature a mix of popular nationally credited stores and
restaurants that cater to the needs and preferences of the local population. We intend on
demoing mostly all the interior components of the mall that includes everything north of the
Cal Ranch building, all the way to the Herberger's suite. Please see exhibit "A" under item 4
below labeled "Project Plans and Exhibits" to review the demolition plan of the mall. We
want to make it clear that we are intending to work with a select group of tenants from the
existing mall to make them apart of the future redeveloped shopping center. We essentially
understand the need to keep these local tenants apart of the community, so we are going to
work on relocating them to newer buildings that are a part of the Herberger's spot.
The development of our shopping center will generate employment opportunities for residents
across different skill levels, starting from the initial construction phases, through retail
positions, and up to managerial roles. This will help stimulate economic growth in the area
and provide employment opportunities for the community. We are committed to working
closely with the city to ensure that our shopping center development meets all of the
regulatory requirements, as well as making sure were creating a design that aligns with the
vision for the area. We believe that our project will help improve the overall look and feel of
SimonCRE Prospector, LLC
6900 E 2nd Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
SIMON
CRS
SIMON OOMr:'
the community, attract new businesses and visitors, and contribute to the economic vitality of
the community.
2. Addition of Target: Target is a well-known and reputable retailer that has a proven track
record of boosting local economies and providing job opportunities for residents. Having a
Target store in the City of Chubbuck will attract more shoppers from neighboring areas,
thereby increasing foot traffic and revenue for other local businesses. Furthermore, the
establishment of a Target store will create job opportunities for residents, ranging from entry-
level positions to managerial roles. In addition, Target has a strong commitment to corporate
social responsibility and community engagement. Since 2001, they have partnered with local
organizations and charities to provide millions of pounds of food each year to families who
need these meal donations. By supporting Target's entry into your city, the city will be able to
benefit from their philanthropic efforts that will then in return make a positive impact to the
community.
Building Permit Fee Relief Reguest: We are requesting that the City of Chubbuck grant
SimonCRE a building permit fee waiver for the buildings listed in the next pages "Building
Breakdown" section 4, following permit approval. The "Building Permit Breakdown" that
follows will outline the estimated future construction costs required to build out our proposed
shopping center. Please be aware that these fees are currently only cost estimates and will be
subject to change during the final bidding process with our general contractor.
SimonCRE Prospector, LLC
6900 E 2nd Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
SIMON
CRS
SIMON COMMERO,,
3. Building Permit Breakdown: We have collaborated with Devin Hillman to determine the
requirements for formally submitting our building permit exemption letter to the city. Two
items that arose from that discussion was to provide a floor plan and estimated construction
cost for each of the buildings that were requesting a fee exemption from. The below
information will encapsulate what future development we intend on constructing as part of
our Pine Ridge Mall redevelopment. We do not have estimated construction numbers and
floor plans for some of these future developments, so I have labeled those specific
developments as TBD so that these items can be revisited with the city council members at a
later date.
Target:
Square Footage: 128,000
Floor Plan: TBD
Estimated Construction Cost: $20,000,000
Shops J Interior:
Square Footage: 33,072 (First Floor)
Floor Plan: Exhibit A
Estimated Construction Cost: $2,500,000
Retail A — Kohl's Redevelopment:
Square Footage: 60,340
Floor Plan: TBD
Estimated Construction Cost: $4,000,000
Retail B- TBD
Square Footage: 14,242
Floor Plan: TBD
Estimated Construction Cost: $3,100,000
SimonCRE Prospector, LLC
6900 E 2nd Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
AL
SIMON
CRE
Retail C — TBD:
Square Footage: 18,000
Floor Plan: TBD
Estimated Construction Cost: $3,500,000
Retail D - TBD
Square Footage: 23,000
Floor Plan: TBD
Estimated Construction Cost: $4,000,000
Pad F — TBD:
Square Footage: 8,385
Floor Plan: TBD
Estimated Construction Cost: TBD
Pad G — TBD:
Square Footage: 2,400
Floor Plan: TBD
Estimated Construction Cost: TBD
Pad H — Buckle:
Square Footage: 8,570 SF
Floor Plan: Exhibit B
Estimated Construction Cost: $2,143,592
Pad I — TBD:
Square Footage: 2,400
Floor Plan: TBD
Estimated Construction Cost: TBD
SimonCRE Prospector, LLC
6900 E 2nd Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
SIMON
CRE
Exhibits:
SimonCRE Prospector, LLC
6900 E 2"d Street Scottsdale, AZ 85251
Docusign Envelope ID: 9E47B398-58A5-4B4C-B1C7-D458361CF4B0
m
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CHUBBUCK,IDAHO
DATE: 07-18-2024 (PRELIMINARY)
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