The regular meeting of the Riggins Urban Renewal Agency was called to order by Board Member and Chairman Robert Crump. Board Members Anderson, Harper, and Underwood were also present. Members McClure and Barnard were absent. Richelle Barger was a guest.
The minutes of the previous meeting were presented. Board members were individually polled and all confirmed that they had read the minutes, had no changes or additions, and the minutes were approved as presented.
A special meeting with John Austin and Browns Industries officials was set for Tuesday, July 10th at 9:30am.
A concern was brought up about hazardous waste cleanup at the millsite. It was agreed that it should be addressed in the special meeting scheduled for Tuesday with Browns Industries. The Agency may request a copy of the certification of “No Hazardous Waste”, if Browns have addressed the problem previously.
The URA 2007-2008 Budget proposal prepared by John Austin was reviewed. Since there is no way of accurately assessing the anticipated revenue, Austin recommended that the budget include $100,000 tax increment and $3,000,000 developer contribution. After discussion, motion was made by Harper, seconded by Anderson, to tentatively approve the $3,100,000 2007-2008 URA budget and set the public hearing for August 9, 2007, to be held just prior to the public hearing scheduled for the City budget. Voting yea, Anderson, Harper, and Underwood. No nays.
The Clerk reported that Idaho County James Zehner had confirmed that the Riggins URD original tax base had been set at the 2006 assessed value, and the 2007 assessment will reflect the increased value of the annexation. Zehner indicated that the assessment increase was substantial for the millsite property. Those figures will be available later on in the year after the Board of Equalization process has been completed.
There being no further business, the meeting was adjourned.
A special meeting of the Urban Renewal Agency was called to order by Board Member and Chairman Robert Crump. Board Members present were Anderson, Barnard, Harper, McClure and Underwood. Guests present included John Austin, Judd DeBoer, Brian O’Marrow, Richelle Barger and Charlie Amell.
The purpose of the special meeting was to meet with John Austin and Browns Industries officials to review URD projects, financing sources and to review and consider the Master and Project Specific Owner Participation Agreements.
John Austin and Board Members visited with Browns Industries officials, advising them that the City and URA had done everything they could to prepare for Browns development, but needed some direction and/or commitment from them regarding their development schedule. There are many infrastructure expansions that are required to provide water and sewer service to the development, most of which will be at the developers expense, and the URD was formed to help with those costs through tax increment financing. However, the Urban Renewal is limited to a ten- year period, with only 9 ˝ years remaining. It is to the developers benefit to complete as much of his project as possible during that time to take advantage of the tax increment reimbursement of the infrastructure costs.
Judd DeBoer reported that the Millsite development plans now included 150 units, averaging around $200,000-$300,000 each. They were not ready at this time to commit to future development beyond that plan. He indicated that the softening real estate market in McCall was slowing their development plans in Riggins.
The following infrastructure expansion and upgrades needed to accommodate Browns development were reviewed:
Sewer Treatment Plant:
$3,124,200 Convert Existing Facility to MBR
Sewer Collection System:
$ 50,000 Well Street Sewer Lift Station Upgrade
$ 50,000 Add Pump Station Emergency Telemetry
$ 300,000 Millsite Lift Station-Force Main to Well Street Lift Station
$ 247,000 New Well, Well house, Property
$ 400,000 Water Storage Tank
$ 43,648 Water Facility Study
$ 15,000 Remote Read Meter System
Emergency Services Improvements … $ 355,000
Off-Street Parking …………………… $ 202,000
Parks and Recreation ………………… . $ 552,000
Austin reported there are three basic ways of financing these costs:
(1) The Developer can obtain private financing for the improvements, and would be eligible for tax-exempt interest rate, which amounts to approximately 3% savings in interest.
(2) The URA could go through traditional bonding for the improvements, which would require bond counsel, investment bankers, etc., which could add up to $80,000-$100,000 to the project costs. This method would not be recommended in small projects such as those anticipated.
(3) A Bank loan based on the URA’s TIF (tax increment financing) plus a guarantee from the Developer. He indicated that the lower, non-taxable interest rate would apply when the TIF flow is sufficient to cover the loan.
Austin also reported that another option is for the private Developer to contract for the improvements, constructed to the City and URA requirements. This private construction would save costs by not having to comply with Bacon Davis wages, and other regulations normally mandated for government projects. DeBoer indicated that Browns Industries was not in a position at this time to take on the projects needed, through private financing.
It was pointed out that some items listed in the infrastructure needs above should be addressed as soon as possible, such as the water study. DEQ is requiring the engineering study to be completed, and all identified deficiencies and system upgrades completed, prior to their approval of the Developer’s water and sewer plans. JUB Engineers, through a City contract, is currently in the process of completing the sewer study, and if the water facility study were combined with it, the costs would be reduced considerably. However, the water study must be done now to take advantage of that option. It was estimated that the cost of the water study, when added to the sewer study now in progress would be $36,000-$39,000 plus $6000 for the hydrologist. The study, done later, as a stand-alone project, was estimated to be in the $70,000 range. It was also reported that DEQ may have grant funding to assist in the water study project costs. The City will pursue all grant funding options available to help with the costs. If the Developer could finance the costs of the water study, a Project Specific Owner Participation Agreement would be completed, for reimbursement by the URA’s TIF, as they become available.
It was reported that there are several Project Specific Owner Participation Agreements currently in place, such as
(1) The Plan costs: $5,000 Brown’s Industries plus the City’s costs for the plan development $943
(2) City Administration costs, $5000 thru June 2007
(3) $27,000 City Sewer Facility Study
(4) $1000 Browns Water Capacity Study
Additional OPA agreements needed soon are Brown’s $2500 WhiteWater Park Study Grant Match and the Water Study $42,000-$45,000.
The Board inquired if the Millsite had been inspected for hazardous waste. O’Marrow reported that all asbestos had been removed, as well as the underground fuel tanks. He reported that a Level I Inspection may be required. The Board asked for copies of reports that indicate the there is no hazardous waste on the property.
The Master Owner Participation Agreement (MOPA) was reviewed. The MOPA outlines the concept of the projects and infrastructure improvements needed to accommodate the Millsite Development, and is a blanket agreement that indicates the Developer could be reimbursed by the URD’s tax increment, when it becomes available. Exhibit A is a conceptual list of projects, and Exhibit B is project specific estimating the costs for those improvements. After review, motion was made by Underwood, seconded by McClure, to approve the MOPA, authorize the signature of the Board Chairman, and send it on to Brown Industries for their consideration. Voting yea, Anderson, Barnard, Crump, Harper, McClure and Underwood. No nays.
A Project Specific Owner Participation Agreement, for $2500 for the grant match to be provided by Brown’s Industries for the White Water Park Study was then reviewed.
Motion was made by Barnard, seconded by Anderson, to approve the Project Specific OPA, authorize the signature of the Board Chairman, and send it on to Brown Industries for their consideration. Voting yea, Anderson, Barnard, Crump, Harper, McClure and Underwood. Nays.
The need for a Project Specific OPA for the Water Study, $42,000-$45,000, was then brought up. Since the study must be completed now, to take advantage of the cost savings of combining it with the sewer study currently in progress, motion was made by McClure, seconded by Underwood, to authorize the preparation of the document, authorize the signature of the Board Chairman, and send it on to Browns Industries for their consideration after a short time. Voting yea, Anderson, Barnard, Crump, Harper, McClure and Underwood. No nays.
There being no further business, the special meeting was adjourned.