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Home My Public Portal About2021.09.07 MRA Resolution 05-2021 RESOLUTION NO. 05-2021 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF McCALL, IDAHO: A SUPPLEMENTAL TERMINATION RESOLUTION SUPPLEMENTING RESOLUTION NO. 02-2021 OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF McCALL, IDAHO, ALSO KNOWN AS THE McCALL REDEVELOPMENT AGENCY, PROVIDING FOR A SUPPLEMENT TO THE TERMINATION PLAN APPROVED BY RESOLUTION NO. 02-2021; PROVIDING AN UPDATED ESTIMATE OF REMAINING PROJECT OBLIGATIONS AND COSTS; PROVIDING AN ESTIMATE OF THE BALANCE CARRYOVER TO FY2022; APPROVING THE SUPPLEMENTAL TERMINATION PLAN AND PROPOSING AN UPDATED TERMINATION BUDGET; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION,made on the date hereinafter set forth by the Urban Renewal Agency of the City of McCall, Idaho, also known as the McCall Redevelopment Agency, an independent public body, corporate and politic, is an urban renewal agency created by and existing under the authority of the Idaho Urban Renewal Law of 1965, Chapter 20,Title 50, Idaho Code, as amended(the"Law"), a duly created and functioning urban renewal agency for McCall, Idaho, hereinafter referred to as the"Agency." WHEREAS, the City Council ("City Council")of the City of McCall, Idaho("City"), after notice duly published, conducted a public hearing on the 1990 Urban Renewal Plan for the Railroad Avenue Area(the"Railroad Avenue Plan"); WHEREAS, following said public hearing the City Council adopted its Ordinance No. 578 on December 13, 1990, approving the Railroad Avenue Plan,making certain findings and establishing the Railroad Avenue revenue allocation area(the"Project Area"); WHEREAS, in 2006, pursuant to Section 900 of the Railroad Avenue Plan, the Agency prepared the 2006 Updated Urban Renewal Plan(the"Amended Railroad Avenue Plan"); WHEREAS,the Railroad Avenue Plan, as amended in 2006, collectively will be referred to as the"Railroad Avenue Plan'and the corresponding revenue allocation area will be referred to as the Project Area; WHEREAS, the Railroad Avenue Plan contained a revenue allocation financing provision pursuant to the Local Economic Development Act, Title 50, Chapter 29, Idaho Code, as amended(the"Act"); RESOLUTION NO. 05-2021 - 1 WHEREAS, the termination date for this revenue allocation area, as set forth in the Railroad Avenue Plan, is December 31, 2020, except for revenues to be received in 2021, as authorized pursuant to Idaho Code § 50-2905(7); WHEREAS, a substantial portion of identified improvements and/or projects have been completed in the Project Area; WHEREAS, on June 29, 2021,the Agency Board adopted Resolution No. 02-2021, which approved a Termination Plan narrative and a proposed Termination Budget; WHEREAS, as set forth in the Termination Plan,the Agency in partnership with the City is currently working on implementing the E. Lake Street&Brown Park Improvements Project, which project is managed by the City and is funded by the Agency. This significant project was identified as a priority project in and around late 2018/early 2019 and seeks to implement the goals for this geographic area as identified in the McCall Lake Front Improvements—An Urban Renewal Project, Design Development and Decision Package, dated October 2006(the"Lake Front Improvement Project Plan") and the Railroad Avenue Plan; WHEREAS, the E. Lake Street&Brown Park Improvements Project is currently underway and was anticipated to be completed by September 30, 2021; WHEREAS, due in part to issues related to COVID-19,particularly supply chain issues and worker shortages, and other unexpected construction delays, it is expected the construction of certain improvements under the Railroad Avenue Plan related to the E. Lake Street&Brown Park Improvements Project and expenses related thereto will not be fully completed and/or satisfied by the Agency's current fiscal year ending September 30, 2021, which also includes the installation of the mill whistle public art piece, which improvement costs will carry over to FY2022; WHEREAS, Agency staff and counsel have determined the Termination Plan narrative should be supplemented to describe what improvements costs are remaining under the E. Lake Street&Brown Park Improvements Project, and an updated timeline for completion; WHEREAS, Agency staff and counsel have prepared a Supplemental Termination Plan, attached hereto as Exhibit 1,updating certain information within the Termination Plan narrative; WHEREAS, since August 17, 2021,Agency staff has refined the Termination Budget and the Supplemental Termination Budget is attached hereto as Exhibit 2; WHEREAS, the Agency has reviewed the remaining improvements and/or projects and based on projected revenues and expenses of the Railroad Avenue Plan, has determined there are sufficient funds on deposit as carryover or in its fund balance for payment of all final project costs and Agency administrative expenses in FY2022 and reaffirms the revenue allocation area can be terminated on or before December 31, 2021; RESOLUTION NO. 05-2021 -2 WHEREAS,pursuant to the Supplemental Termination Plan and Supplemental Termination Budget, the Agency estimates a surplus will not be available for remittance to Valley County for distribution to the taxing districts on or before September 30, 2021; NOW,THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF McCALL, IDAHO, AS FOLLOWS: Section 1: That the above statements are true and correct. Section 2: That the Supplemental Termination Plan attached hereto as Exhibit 1 is hereby approved and adopted by the Agency Board. Section 3: That the Supplemental Termination Budget attached hereto as Exhibit 2 is hereby approved and adopted by the Agency Board, and Agency staff is directed to publish the Supplemental Termination Budget as an amendment to the original Termination Budget. Section 4: That a copy of this Resolution be sent to the Valley County Assessor's Office, the County Auditor/Recorder and the Idaho State Tax Commission to provide supplemental notice of termination of the revenue allocation area in the Railroad Avenue Plan. Section 5: That this Resolution shall be in full force and effect immediately upon its adoption and approval. PASSED AND ADOPTED by the Urban Renewal Agency of the city of McCall, Idaho, on September 7,2021. Signed by the Chair of the Board of Commissioners and attested by the Secretary to the Board of Commissioners,on this 7th day of September, 2021. APPROVED; By: � GC Chair ATTEST: By cretary RESOLUTION NO. 05-2021 - 3 EXHIBIT 1 (Supplemental Termination Plan) RESOLUTION NO. 05-2021 -4 EXHIBIT 1 THE URBAN RENEWAL AGENCY OF THE CITY OF McCALL, IDAHO, ALSO KNOWN AS THE McCALL REDEVELOPMENT AGENCY SUPPLEMENTAL TERMINATION PLAN FOR THE REVENUE ALLOCATION AREA SET FORTH IN THE 1990 URBAN RENEWAL PLAN FOR THE RAILROAD AVENUE AREA THE"RAILROAD AVENUE PLAN" The Urban Renewal Agency of the City of McCall, Idaho, also known as the McCall Redevelopment Agency("Agency") is terminating the revenue allocation area adopted at the time of the original adoption of the 1990 Urban Renewal Plan for the Railroad Avenue Area, by the McCall City Council on December 13, 1990,by Ordinance No. 578, as amended in 2006, pursuant to Section 900 of the Railroad Avenue Plan, and currently referred to as the Railroad Avenue Plan(the"Plan") for the Railroad Avenue revenue allocation area or project area(the "Project Area"). The termination date for this revenue allocation area as set forth in the Plan is December 31, 2020; except for revenues to be received in 2021, as authorized pursuant to Idaho Code § 50-2905(7). The Agency has reviewed the projected revenues and expenses of the Plan and Project Area and has determined the revenue allocation area can be terminated by December 31, 2021, effective retroactive to January 1,2021, as it relates to assessed values within the Project Area. As a result, the Agency will not receive revenue allocation funds in calendar year 2022, generated from the 2021 assessed values, and the allocation of revenues under§ 50-2908, Idaho Code, shall cease effective January 1, 20211. On June 29, 2021,the Agency Board adopted Resolution No. 02-2021, the termination resolution, approving a narrative Termination Plan and tentative Termination Budget for the Plan and Project Area. Thereafter,the Agency distributed to the affected taxing districts, Valley County Assessor's Office, Auditor/Recorder and the Idaho State tax Commission a copy of Resolution No. 02-2021 and its exhibits. Based on updated budget information, and in order to provide additional information as to the status of the E. Lake Street&Brown Park Improvements Project, this Supplemental Termination Plan is revised as of September 7, 2021,with the adoption of Agency Resolution No. 05-2021,the supplemental termination resolution. Revisions to the original Termination Plan and updates to the Termination Budget are intended to provide updated information concerning the timing of the completion of projects currently underway and to identify certain administrative and project cost carryovers to FY2022 due to certain construction delays requiring the reservation of existing revenue allocation proceeds to pay certain obligations after September 30, 2021. These changes do not impact the cessation of revenue allocation authority or impact the treatment of assessed values as determined in 2021 Intent RegardingDelinquencies: The Agency requests the County Treasurer to not distribute to the Agency any Railroad Avenue revenue allocation funds from delinquency tax payments in calendar year 2022, or 1 The Agency does intend to receive its allocation of revenues generated from the 2020 assessed values in 2021. The allocation of revenues is anticipated to be received by the Agency in February and July 2021,with late payments/delinquencies being received through September 2021. Resolution No. 05-2021 Railroad Avenue RAA Termination)—EXHIBIT 1 1 subsequent years, generated from the 2020 assessed values, or earlier. The County Treasurer shall distribute any delinquency tax payments due to the Agency to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. Fiscal Years 2021 and 2022 Termination Budget Summary: As further set forth below, due to unexpected construction delays, in part due to COVID- 19, resulting in continued supply chain and worker shortage issues,the Agency expects the improvements under the E. Lake Street&Brown Park Improvements Project will not be fully completed on or before September 30, 2021, and there will be project costs carried over into FY2022. These carryover expenses are identified in the Railroad Avenue Plan Supplemental Termination Budget. Existing funds will be reserved through carryover balance and/or existing fund balances to cover any carryover project costs, miscellaneous expenses and/or administrative expenses to be incurred in Fiscal Year 2022; however, the Agency will not receive any revenue allocation proceeds in FY2022, or beyond. The Agency is anticipating there will not be any surplus funds to be distributed back to the taxing districts, through Valley County,prior to the end of the Agency's 2021 fiscal year, on September 30, 2021. Additionally, at this time,there are not anticipated to be any surplus funds available for distribution on or before September 30, 2022. To the extent there are any unexpended,non-obligated surplus funds on September 30, 2022,those funds will be remitted to the County Treasurer to be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area, following a final accounting and payment of all final Agency expenses and financial obligations. Real Property Disposition: The real property owned by the Agency in the Railroad Avenue Project Area,more specifically described below, shall be transferred to the City of McCall (the"City")on or before December 31,2021. 1) 1614 Davis Avenue(MCCALLACREAGE TAX NO. 19 IN GOV'T. LOT 1 S9 T18N R3E INSTR. #197853 8/3/1993 FROM R.J. MANDERY) 2)Pine Avenue Vacant Lots (MCCALL'S 1ST ADDITION LOTS 6, 7, 8 &9, BLOCK 11) E. Lake Street&Brown Park Improvements Project: The Agency in partnership with the City is currently working on implementing the E. Lake Street& Brown Park Improvements Project, which project is managed by the City and is funded by the Agency. This significant project that was identified as a priority project in and around late 2018/early 2019 will implement the goals for this geographic area as identified in the McCall Lake Front Improvements—An Urban Renewal Project, Design Development and Decision Package, dated October 2006 (the"Lake Front Improvement Project Plan") and the Plan. This phase of the E. Lake Street& Brown Park Improvements Project was originally anticipated to be completed by September 30, 2021; however, due to unexpected construction Resolution No.05-2021 Railroad Avenue RAA Termination)—EXHIBIT 1 2 delays, the project is anticipated to be substantially completed by December 31, 2021, with minor remaining project costs to be incurred on or before September 30, 2022. The Planning, Design, Engineering, and Construction Project Agreement for the Lakefront Improvement Project was amended in August to reflect the contracted amount for the current phase of the project in the amount of$1,165,115. To the extent budget capacity exists, and due to contemplated development in and around E. Lake Street,there are significant public benefits to funding additional engineering and design on E. Lake Street from Fir Street to Hemlock Street, and from Hemlock Street to Mill Street in the estimated amount of$35,000, including a cost savings by performing the scope of work now due to the timing of the improvements being carried out pursuant to the E. Lake Street&Brown Park Improvements Project. The additional design and engineering is significantly related to the current phase of the E. Lake Street& Brown Park Improvements Project and would establish a baseline for future improvements in that section of the roadway and would ensure drainage issues are avoided in the future roadway design. Project completion and payment of related expenses is anticipated to occur in FY22; however,payment of these costs and expenses will come from the Agency's existing fund balances and this project delay will not impact closure of the revenue allocation area. The improvements contemplated under the E. Lake Street&Brown Park Improvements Project are focused on the area along the shoreline north of Mile High Marina to Brown Park, and include shoreline stabilization to remediate wave erosion caused by boat traffic, waterfront improvements increasing non-motorized access to Payette Lake, improvements to Brown Park, improvements to the pathways and access into Brown Park, and ultimately improvements to E. Lake Street, if sufficient funds exist to complete the full project. The timing of these improvements is largely driven by the short construction season and the limited access to Payette Lake for shoreline improvements. As noted above, this project is currently underway and was originally anticipated to be completed on or before September 30, 2021. It is currently estimated substantial completion of the project will occur on or before December 31, 2021, with project completion to occur on or before September 30, 2022. Final project and administrative expenses to be paid thereafter in an estimated amount of$608,184.--, will be reserved and paid out of the Agency's existing fund balances for the Project Area. Such funds will be reserved and budgeted in FY2022 (and not returned to the taxing districts as surplus)to pay costs when due, in any event on or before September 30, 2022. To the extent the Agency determines a surplus existing as of September 30, 2022, following payment of the above financial obligations, then the Agency will return those funds to the County Treasurer for distribution to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. Whistle Restoration and Artwork Installation The Agency in partnership with the City selected Westover Artworks, LLC to design and install a public art piece within the boundaries of the Project Area and the parties entered into the Artwork Commission Agreement, dated July 28, 2020, as amended. Several artwork design proposals were reviewed, together with potential installation locations, and ultimately the public art piece centered around the restoration of the mill whistle was selected. The artwork will be installed in Brown Park. The restoration of the mill whistle and the fabrication of the portable boiler necessary to blow the whistle are well underway and it is anticipated the installation of the Resolution No. 05-2021 Railroad Avenue RAA Termination)—EXHIBIT 1 3 artwork will be completed on or before September 30, 2021. To the extent there are construction delays related to the improvements to Brown Park, there could be corresponding delays in the installation of the artwork on or before September 30, 2021. To the extent there are delays in the installation of the artwork,revenue allocation proceeds will be reserved to pay costs related to the artwork when due, in any event on or before December 31, 2021. As of September 7, 2021, it is understood completion of the art project, including final payment,will occur in FY2022. As a result$5,000 will be reserved from the Agency's existing fund balances and carried over into FY2022. To the extent the Agency determines a surplus existing as of September 30, 2022, following payment of the above financial obligations,then the Agency will return those funds to the County Treasurer for distribution to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable property located within the revenue allocation area. Resolution No.05-2021 Railroad Avenue RAA Termination)—EXHIBIT 1 4 EXHIBIT 2 (FY21 Supplemental Termination Budget) RESOLUTION NO. 05-2021 - 5 1990 RAILROAD AVENUE PROJECT AREA SUPPLEMENTAL TERMINATION BUDGET Projected Projected Termination Termination Tax Increment Revenue Fund Balance as of 08/2021 $ 767,622 $ Revenue Allocation Fund Receipts through 09/30/2021(Estimated) $ - $ Interest through 09/30/2021(Estimated) $ 2,868 Other Revenue(GPSGI) $ 16,442 Fund Balance as of 9/30/2020 $ 1,346,344 $ 608,184 T97A4 REVENUE:,$ Publication Costs $ 1,654 Professional Services Expense(Legal and Auditor) $ 23,250 $ 3,500 Other Expense(RAI,ICRMP,Estimated through 09/30/21 Bank Account Fees) $ 4,786 $ 29,690 $ 3,500 Public Art Art and Whistle Restoration $ 140,000 $ 5,000 $ 140,000 $ 5,000 Committed Projects:Brown Pork/E.Lake Street-City/Agency City-Agency Design and Engineering Agreement $ 200,000 City-Agency Construction Agreement(Project#1 Shoreline Stabilization) $ S97,696 City-Agency Construction Agreement(Project#2 E.Lake Street&Brown Park Improve $ 634,470 $ 530,625 City-Agency Design and Engineering Agreement-E.Lake/Hemlock $ 35,000 LESS$111,764 grant funding re playground $ (111,764) City-Agency Construction Agreement Contingency Subtotal-Committed Projects: $ 1,355,402 $ S99,684 TOTAL EXPENSES: $ 1,525,092 $ 608,184 BALANCE- $ 608,184 $ - 'Due to Lake Street&Brawn Park Improvement Project construction delays,the project will not be fully completed by September 30,2021,which also impacts finalizing the public art/whistle restoration project;therefore,the balance will be reserved and carried into FY2022 to pay the committed project costs At this time,the Agency is not anticipating any surplus balance as of September 30,2021,and therefore,$0 will be submitted to Valley County to distribute to the affected taxing districts pro rata based on 2020levy rates, Additionally,$0 balance is anticipated as of Septembe 30,2022, To the extent there is a positive balance at the end of FY2022,then those ❑ds will be submitted to Valley County ipt djslnh.VVgn S4 tfa�affect@ La241A1 dtstiricts pro rata based on the 2021 levy rates. _