HomeMy WebLinkAboutStaff Report - Orchard Dr. E - Plan
Date:
To: Urban Renewal Agency of the
City of Twin Falls
From:
ACTION ITEM
Request: Consideration of a request to sign Resolution No. 2022-____ approving the Urban Renewal Plan
for the Orchard Drive East Urban Renewal Project.
Background:
Developer Summit Creek Development, LLC (the “Developer”) approached the Agency to consider
studying approximately 78 acres west of N. 3300 E. and north of Orchard Drive East to determine
eligibility for a new urban renewal project to support the development of an industrial park. The
Agency and Developer entered into a Memorandum of Understanding, wherein the Developer agreed
to provide funding for planning costs related to the establishment of a new plan and urban
renewal/revenue allocation area.
The first step in the establishment of a new plan and urban renewal/revenue allocation area was to
define a potential geographic area for analysis as to whether conditions exist within it to qualify for
redevelopment activities.
Phil Kushlan, Kushlan Associates, was retained to review the study area and prepare an eligibility
report. The Orchard Drive East Urban Renewal District (Proposed) Eligibility Report, dated January
2022, was accepted by the Agency pursuant to Resolution No. 2022-01, dated February 14, 2022. The
City Council adopted the Report, and made the findings of deteriorating conditions, pursuant to
Resolution No. 2022-0008, dated March 14, 2022, and further directed the Agency to commence
preparation of the urban renewal plan for the area studied.
The second step in the establishment of a new plan and urban renewal/revenue allocation area (the
“Project Area”) is to prepare the urban renewal plan.
An urban renewal plan must contain the following information 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.
Provided however, nothing herein shall prevent the agency from retaining assets or revenues generated
from such assets as long as the agency shall have resources other than revenue allocation funds to
operate and manage such assets; and
(9) Any changes to an urban renewal plan as provided in subsections (2) and (6) of this section shall
be noticed and shall be completed in an open public meeting.
Phil Kushlan, Kushlan Associates, was retained to prepare the economic feasibility study, which
analyzes the revenue projections over the duration of the Project Area, the infrastructure needs, the
estimated infrastructure costs and makes a determination as to the economic feasibility of the Project
Area. Based on conversations with City staff and the developer, the anticipated public infrastructure
improvements that may be eligible for reimbursement total $9,253,110. Such improvements include
improvements to public utilities (water and sewer systems), street improvements, irrigation canal
improvements, and electrical and gas improvements. The Project Area is projected to generate
$20,646,663 in revenue allocation proceeds between 2022 and 2042, recognizing the Agency would
receive revenues in 2043. The consultant has determined the project to be economically feasible.
The Agency has received the necessary agricultural operation consent from the property owner.
Additionally, the combined base assessment rolls, together with the proposed base assessment roll of
the proposed Orchard Drive East Project Area do not exceed 10% of the current assessed taxable value
of the City (using 2021 certified values).
If the Plan and Project Area are adopted on or before December 31, 2022, the Plan would have a base
year of January 1, 2022, with a termination date of December 31, 2042, recognizing the Agency would
receive its allocation of revenues in 2043.
If the Resolution adopting the Plan is approved by the Agency Board, the anticipated next steps are as
follows:
September 30: Formal transmittal of the Plan to the City
October 7: mail notice to Times News for publication
October 14: 1st publication/plans to be received by taxing districts (may require hand delivery)
October 25: Planning Commission
October 28: 2nd publication
November 14: CC public hearing and 1st reading
November 28: CC 2nd/3rd readings
Approval Process:
Majority vote of the Board of Commissioners present at a meeting where quorum is present.
Budget Impact:
Developer is advance funding the costs related to urban renewal planning for the Orchard Drive East
Urban Renewal Project. There is no budget impact at this time.
Regulatory Impact:
N/A
Conclusion:
Agency staff recommends adopting Resolution No. 2022-____ adopting the Urban Renewal Plan for
the Orchard Drive East Urban Renewal Project, and directing Agency staff to submit the Agency
Resolution, Plan, and other information to the City to take appropriate action.
Attachments:
1. Resolution No. 2022-___ -Urban Renewal Plan for the Orchard Drive East Urban Renewal
Project
4882-5061-7908, v. 1