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Council Minutes 9/12/2006 (148) 112 May 5, 1994 CITY OF AMMON May 5, 1994 Minutes of the Special Meeting of the Ammon Urban Renewal Agency/City Council and the Regular Meeting of the Mayor and City Council: The meeting was called to order at 6:15 P.M. by Mayor C. Bruce Ard at the City Building, 3270 Molen Street, Ammon, Idaho, with the following City Officials present: * Mayor C. Bruce Ard * Councilman Harvey Crandall * Councilman Ira K. Hall * Councilman Steven J. Loveland * Councilman Greg J. Maeser Attorney W. Joe Anderson Engineer David E. Benton * Public Works Director David * City Clerk Aleen C. Jensen Wadsworth I Others Present: * Jeff Summers, East Central Idaho Planning and Development Association * Ryan Armbruster, Legal Counsel, P. O. Box 1539, Boise, Idaho 83701 * Harlan Mann, Consultant, 3800 North 33rd, Boise, Idaho 83703 * Eric Davis, Cantlon Properties, 101 South Capitol, Suite 1820, Boise, ID 83702 * Rob Moore, Cantlon Properties, 7050 Union Park Ct., Salt Lake City, Utah 84047 David and Patty Bergeson, 490 Vassar Way, Idaho Falls, Idaho 83402 Rod Ellsworth, Mountain River Engineering, 1020 East Lincoln Road, Idaho Falls Sue Ann and Sheridan (Scout) Summers, 3290 Molen Street, Ammon, Idaho 83406 Mindy Davis, 143 South Milton, Shelley, Idaho, 83274 David McMurtrey, 1590 South Pioneer Road, Idaho Falls, Idaho 83402 Lynne and Cameron (Scout) Bryan, 3705 Wanda Street, Ammon, Idaho 83406 Shawn Garbett, 2290 Dove Drive, Ammon, Idaho 83406 James Crumb, Ammon Assistant Fire Chief Robert Farrow, Ammon Fire Marshal Kathryn Dansie, Ammon Planning and Zoning Commission Representative * Present during the Special Meeting The Pledge of Allegiance to the Flag was directed by Councilman Loveland, and the invocation was offered by Councilman Crandall. The purpose of the Special Meeting with representatives of Cantlon Properties, I Ammon Urban Renewal Agency members, and the City Officials was to review and discuss the Urban Renewal Plan for the Hitt Road Urban Renewal Project as prepared by the Ammon Urban Renewal Agency prior to the Public Hearing on the plan scheduled for May 19, 1994. Mayor Ard announced that the commission members of the Ammon Urban Renewal Agency are Kenneth Shepherd, Brad Hall, Larry Thompson, Councilman Greg J. Maeser, and Councilman Steven J. Loveland. Kenneth Shepherd serves as the chairman. Eric Davis commented on the progress with the City of Idaho Falls for proj ect approval. A development agreement was submitted to the City of Idaho Falls about five weeks ago. It has been in their attorney's office for review and redraft, but it is now ready for City of Idaho Falls Council action. Because of the negative press coverage regarding the project, Cantlon representatives visited with Mayor Linda Milam earlier in the day (May 5, 1994). She reiterated her concern for their lack of funds, expressed a desire to not stand in the way of the project, and was concerned about the plan and resolution sent for their review. It was a good visit and more positive than in the past. Regarding the Jerry Bergeman property, an option to purchase agreement has been signed with Mr. Bergeman. It was decided the best way to approach an understanding of the Urban Renewal Plan for the Hitt Road Project would be through questions and answers. Councilman Crandall introduced the discussion. I In reviewing the plan, the biggest cost is for relocation of Sand Creek which includes acquisition of land with public funds. The property would be turned over to Cantlon Properties for a private enterprise. When the City Council first became interested in the program, they were specific that the funds generated would go for public development such as roads, signals, etc. Eric Davis discussed the hardship of the site and pointed out the existing location of Sand Creek and the proposed relocation. In order to put the buildings where they need to be and to provide adequate parking in front, the creek/canal has to be moved. Costs include grading, relocation, and land acquisition. The developer proposes that a seventy (70) foot strip of land cost be considered a cost of the actual relocation of Sand Creek. Based on total costs, the average cost of land I I I 113 May 5, 1994 is figured to be $3.66 per square foot. It is possible to improve the land area along the waterway and the storm sewer retention basin area to make a park and a walkway for public benefit. Rob Moore explained Cantlon Properties is fa~ed with two main issues. One is the widening and improvement of Hitt Road contingent upon approval of the City of Idaho Falls. Two, if Hitt Road is widened and Sand Creek is left in its existing location, the property is not wide enough to develop as a shopping center. Albertsens could build their store to face East Seventeenth Street but that dis- courages development of the rest of the property. Relocation of Sand Creek allows the entire site to be available for development. Extraordinary costs are involved, and the developer cannot develop without some assistance. The proj ect includes 28.39 acres of land. Phase I will not utilize all the property, but it is economically feasible to acquire all land needed for the Sand Creek relocation and to completely relocate it. Some of the land will be waste area until Phase II is developed. The land area involved in the acquisition costs was identified. It was necessary to purchase the existing canal bed from the Brunt heirs because of a deed gap. The City of Ammon now owns land in the project area which is used for the East Seventeenth Street storm drain lift station and a retention basin. The pumps and the retention basin will be relocated and increased in capacity. Phase I is planned for development at this time, and projected costs include land for the new creek bed and parkway $640,731; relocation $225,188; and demolition and grading $368,460. City Officials expressed concerns about being in the real estate business. It was pointed out, in theory, the funds are coming from Urban Renewal and not the City of Ammon. The developer stated when the project is complete, it will be public land. Phase I plans include A1bertsens, three pads, and some shops. Phase I will carry and dispose of the bond even if Phase II is not developed. The developers would like to move ahead to develop the whole project, but with restrictions of City of Idaho Falls on access, the Phase II tenant is not willing to go with the restrictions. It is hoped that by going ahead with Phase I that the City of Idaho Falls may reconsider. The mobile home park will remain untouched until Phase II is developed. Developers have negotiated with the owners to close off the Seventeenth Street access and to open an access from Hitt Road on the south end of the mobile home park property. Further discussion included what is the best use of the property and what affect legislative cuts in property tax would have on recapturing increment tax to pay for the bond. There are two possiblities to compensate for tax revenue reduction. One is to anticipate and build in a coverage factor. Another would be to consider a refunding issue and spread out payments. The City of Ammon is not at risk. The increase in tax revenue pays the bond. The existing tax base is left in tact for the various taxing entities. Except, the School District will get a piece of the increment tax, but some of the school revenue estimated in the plan is based on development of both phases. It was agreed the City Officials are obligated to assure that citizens benefit from the Urban Renewal Project. The City of Idaho Falls still has restrictions on the number of accesses on to Hitt Road, and Cantlon has lost a major tenant because of the restrictions. It was questioned how the City of Idaho Falls can legally impose such restrictions on the City of Ammon. This is a jurisdictional issue. The developer cannot take issue, but would lend support if the City of Ammon took issue. The issue would probably need to be settled in court. Cantlon does not want to become involved in court in the middle of construction. Since the Urban Renewal boundary extends into Hitt Road, the City of Idaho Falls will have to pass a resolution that the Urban Renewal planned for this area is good and that monies can be spent in their right-of-way. Idaho Falls will probably remain very firm in their right to control curb cuts and access. The developer is anxious to get Phase I going and is willing to cooperate to come up with a solution. The time to deal with pushing the issue is during Phase II. Hopefully the City of Idaho Falls will take action on a resolution in the new future. The draft resolution does not address any of the details of Hitt Road. The content is limited to allowing City of Ammon to spend money in the right-of-way in the Urban Renewal Project. A schedule of procedures was reviewed. The first step is for the City of Ammon to adopt the plan and pass an ordinance following the Public Hearing of May 19, 1994. It was estimated the bond closing would be October 1, 1994, at which time the Agency will have the money in the bank. In the meantime, Cantlon plans to begin construction so A1bertsens can be open by the end of 1994. 114 May 5, 1994 The participation agreement was described as a contract that binds the Agency and the developer. It commits the developer to convey the lots to the Agency who will reconvey them to the City. It is the agreement that obligates the developer to build the Phase I project, to go inthe right-of-way, to do Hitt Road, to relocate Sand Creek, to landscape Sand Creek in whatever way decided, etc. It is the obligation of the Agency to pay the developer back through bond proceeds. The agreement will be signed by Kenneth Shepherd and the Secretary. Councilman Hall studied cost estimates on Hitt Road improvements and wondered if they were not low. The developer stated he also had concerns, but he said there was a contingency amount included. There was a line item showing 50% of Hitt Road improvements were to be paid by the City of Idaho Falls. This caused concern with Idaho Falls so it has been elimated. Plan correction sheets were circulated. I Fifty percent of the improvements will be financed but that will be worked out by the developer. When the canal is moved, it appears the value of the mobile home park is increased. Councilman Hall questioned how the owner does not get benefit from tax payers money. He may openly get benefit, but the developer currently has an option on the property and the Urban Renewal Agency has some control. Under the participation agreement, Cantlon would request to remain the developer for the entire site. This provides some control but ultimately the mobile home park owner would benefit. Councilman Crandall asked if some legal wording could be included to show the title to the property bound by the canal would rest with some government agency and would not need to be repurchased. This can probably be addressed in the participation agreement rather than to revise and resubmit the plan. The Council appreciated the input of the Cantlon representatives, their legal counsel, and their consultant on the Urban Renewal Project. It was agreed the area needs improvement and such improvements would benefit the community. After a five minute recess, the business of the regular City Council Meeting continued at 7:30 P.M. David R. Bergeson, 490 Vassar Way, Idaho Falls, is moving into a new home at 3101 Fennec Lane, Ammon. He requested a home occupation permit to continue his upholstery and drapery business at his new place of residence. The property is zoned R-l. Work involves drapery installations on site and upholstery work in the garage. He has installed drapes for Sears for a number of years. He plans to build a detached 18' X 34' garage to utilize for storage and work space. The Council questioned the extra garage because it tends to turn into a commercial business in the middle of a residential area. The residential nature of the subdivision will be maintained. The materials stored in the extra garage will not crate an extra fire load. Mr. Bergeson understands the requirements for a home occupation permit specified in C.C. ll-5-27(H) and he can comply with them. The Council may want to review the application in a year or two to redetermine compliance. Councilman Hall moved to approve the home occupation permit for David R. Bergeson, 3101 Fennec Lane. The motion was seconded by Councilman Crandall. Roll call vote: Hall - Yes; Crandall - Yes; Loveland - Yes; Maeser - Yes. The motion carried unanimously. I David McMurtrey and Mtndy Davis discussed an OSHA Compliance Service available to the City. This program is designed to protect against liability and to help to educate the employees. They will conduct a free-of-charge evaluation to determine needs and how the City is complying with OSHA requirements. Following this evaluation they will make up a bid for the City. Mayor Ard, Public Works Director Wadsworth, the attorney, and the Fire Department will discuss the need for such a program and decide whether or not the City is interested. Kathryn Dansie reported there is an Eagle Scout ready to build the volleyball court I for Tie Breaker Park. The Scout has access to a backhoe to dig out the dirt and a truck to haul it away. The court is 30' X 60'. Some kind of border is needed around the outside. For example--railroad ties, treated 4 X 4's, or concrete. The neighborhood has some funds to buy poles and a net. If funds are available, they would like the City to pay for cement for the poles, sand to fill the court, and the border material. Councilman Loveland and Public Works Director Wadsworth were delegated to work with Mrs. Dansie and the park committee on the volleyball court. The Council agreed to pay for the fill sand and concrete for the border. Kathryn Dansie represented the Planning and Zoning Commission to discuss action taken at their May meeting. Dennis Austad proposed to develop the property behind Rush Auto, Circle K, and Carl Gray Tire with storage units. The property is zoned C-l. The Commission recommended approval of the land use because about 1986 the City Council ruled that storage units was an acceptable use for Grand Teton Self I I I 115 May 5, 1994 Storage in a C-l zone. Mr. Austad's plan was to access on to Hitt Road, but he is experiencing difficulty getting City of Idaho Falls approval. Therefore, he may change his plans to access on East 17th Street. The Commission passed a resolution to state they had reviewed the Hitt Road Urban Renewal Plan and determined that it conforms with the City of Ammon Comprehensive Plan. BRS Architects for Cantlon Properties requested permission to construct buildings within seventy-five (75) feet from the banks of a natural flood channel as specified in City Code 11-5-11 and ll-7-8-3(b). The Commission did not have any problems with location of the buildings within seventy five (75) feet of Sand Creek. Sand Creek is more like a canal than a natural flood channel. BRS Architects also asked for a permit granting approval for the demolition/construction of the canal in the Sand Creek Proj ect. There were no problems because relocation of Sand Creek was approved earlier. The preliminary plat for Ammon Town Center was approved. A final plat needs to be submitted to show utilities, the canal system, and other easements. Rod Ellsworth of Mountain River Engineering presented a preliminary plat for the Ammon Town Center. This plat shows a change in the number of accesses to Hitt Road to three. It will be presented to the City of Idaho Falls for their approval. Cantlon's goal is to get the Albertsens front portion of the Center approved. Engineer Benton questioned the need for City of Idaho Falls to approve the plat. He advised approval of the preliminary plat is a signal for the developer to go ahead with preparation of the final plat. Councilman Maeser moved to approve the preliminary plat for Ammon Town Center as proposed tonight. The motion was seconded by Councilman Hall. Roll call vote: Maeser - Yes; Hall - Yes; Loveland _ Yes; Crandall - Yes. The motion carried unanimously. The Council discussed what procedure is necessary in order to grant permission for Cantlon Properties in development of the property on the southeast corner of Hitt Road and East 17th Street to construct buildings within seventy-five (75) feet of Sand Creek. Attorney Anderson interpreted that City Code 11-5-11 and ll-7-8-3(b) requires them to apply to the Board of Adjustments for a conditional/special use permit. Previously it has been implied that no special permission was necessary. In order to avoid any technicalities, it was decided to follow the procedures for obtaining a conditional/special use permit. A public hearing will be scheduled for June 2, 1994, to consider this matter. Sheridan Summers explained that he is doing an Eagle Scout project. He has fifteen trees donated to him by the Department of Energy, and he requested a place to plant the trees. They are small blue spruce saplings. Mayor Ard suggested he plant the trees on the Well No. 7 property where some other small trees have been planted until they grow large enough to transplant in the parks. He was advised to work with Public Works Director David Wadsworth for planting instructions. The minutes of City Council Meeting held April 7, 1994, were discussed. Councilman Maeser pointed out a correction. Under the Urban Renewal Program where it reads "The next step is a participation agreement" change the next sentence to read "The committee has extensively discussed property acquisition costs (period)" and delete the rest of the sentence. Councilman Maeser moved to approve the minutes of City Council Meeting held April 7, 1994, as corrected. The motion was seconded by Councilman Hall. Roll call vote: Maeser - Yes; Hall - Yes; Loveland - Yes; Crand- all - Yes. The motion carried unanimously. Unfinished Business: The semi-trailer at 3444 Owen Street has been removed. The junkyard conditions at 3265/3275 Owen Street have not changed much. They may have moved a couple of old cars. The City of Ammon needs to appoint two members to the Citizens' Committee of the Bonneville Metropolitan Planning Organization. So far, the City has not been successful in obtaining individuals interested in serving. The Council was asked to make recommendations. Gerald "Jerry" Mitchell was suggested as a possibility. Councilman Crandall advised a new computer is needed in the City Office. He requested Attorney Anderson to advise if it involves conflict of interest if Councilman Crandall negotiates to purchase a computer through Korean dealers out of Los Angeles. It could be purchased at a savings for the City, but he would need to charge it on his personal credit card and then have the City reimburse him. The Council did not have a problem, but they decided it would promote good relations to buy locally. The City Clerk was instructed to check out local prices. The City also needs to consider purchasing a FAX machine and upgrading the copier. Websters, dba as Band D Distributors, have requested renewal of their business license to operate the ice shack on the corner of East Sunnyside and Ammon Roads. Public Works Director Wadsworth checked out their location and did not find a pro- blem with it. The Council authorized renewal of their license. Reports: David Wadsworth reported for Public Works. Steel has been purchased to build a small shelter in Tie Breaker Park. The underground storage tanks at Well No. 7 have been removed. As soon as results on the soil samples are received, the 116 May 5, 1994 holes will be back filled. Water pressure has improved, and pressure is being maintained near 62 pounds. Assistant Fire Chief James Crumb reported for the Fire Department. He made a trip to Reno to obtain eight surplus air pacs. They need to be upgraded to 1992 standards. They will be able to put the eight air pacs in service for about what one and one-half new pacs would cost. Other departments have been contacted about consortium training.Each department would purchase training materials and make them available for use by other departments. Councilman Loveland reported that the residents of Fox Hollow would like a park on their side of First Street. Supposedly Skidmore, the developer, will donate a lot to the City for a park. Costs of developing a park were discussed. The boxcar at Peterson Park has been moved. Councilman Hall advised he had discussed cleaning the irrigation ditches in the old Ammon Townsite with Kwin Dell Kopp. He agreed the City would allow $300 for labor to help with the ditch cleaning. The Association of Idaho Cities will conduct May 6, 1994, from 10:00 A.M. to 12:00 Noon. participate at the Westbank Inn, 475 River approved. a Budget Training Teleconference on District Six cities are invited to Parkway, Idaho Falls. Claims were Councilman Councilman ATTEST Maeser moved to adj ourn the meeting, and the motion Crandall. The meeting was adjourned at 8:55 P.M. c~ ~(!i?~J CITY CLERK . .::/ was seconded by I I I