Document Jerome_doc_fa02a7ca1a

FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 1 FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT JEROME URBAN RENEWAL AGENCY CITY OF JEROME, IDAHO Ordinance No. 1172 Adopted December 4, 2018 Effective December 10, 2018, publication First Amendment to the Area 5 Plan Ordinance No. Adopted Effective publication ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 2 BACKGROUND This First Amendment (“First Amendment”) to the Urban Renewal Plan for the Area 5 Urban Renewal Project (the “Plan”) amends the Plan for the following purpose: to add approximately 7.55 acres (including rights-of-way) of land contiguous to the northeastern boundary of the Area 5 Project Area and generally bounded on the west by the Area 5 Project Area boundary and by East 100 South Road (East Nez Perce Avenue) on the south, an area referred to as the “Amendment Area.” The scope of this First Amendment is limited to addressing the addition of the Amendment Area to the Area 5 Project Area. It is important to note this First Amendment to the Plan does not extend the Plan’s duration. The Plan terminates on December 31, 2038; however, revenue allocation proceeds will be received in 2039 pursuant to Idaho Code Section 50-2905(7). This First Amendment to the Plan, seeking to add the Amendment Area to the Area 5 Project Area pursuant to Idaho Code Section 50-2033, is not deemed to be a modification under Idaho Code Section 50-2903A. “Modification shall not be deemed to have occurred when: . . . (ii) There is a plan amendment to accommodate an increase in the revenue allocation area boundary as permitted in section 50-2033, Idaho Code…” Idaho Code Section 50-2903A(1)(a)(ii). Idaho Code Section 50-2033 permits an urban renewal agency, after July 1, 2011, to add area to an existing revenue allocation area one time “so long as the total area to be added is not greater than ten percent (10%) of the existing revenue allocation area and the area to be added is contiguous to the existing revenue allocation area . . . Idaho Code § 50-2033. Contiguity cannot be established solely by a shoestring or public railroad right-of-way. See Idaho Code § 50-2033. The geographic area to be added to the Area 5 Project Area is contiguous to the existing Area 5 Project Area and is less than ten percent (10%) of the existing revenue allocation area, which is approximately 99 acres. A separate base assessment value will be established for the area to be added to the Area 5 Project Area, effective retroactive to January 1, 2023. To the extent there are any, the Agency will receive an allocation of revenues from the added area from any increases in value above the base value through the remaining years of the Plan. The base values for the original Area 5 Project Area will continue to be retroactive to January 1, 2018. The area to be added to the Area 5 Project Area was deemed to be a deteriorated area and/or a deteriorating area under the Law and Act and, therefore, eligible for inclusion into the existing revenue allocation area pursuant to the Jerome Area 5 Urban Renewal District Annexation Eligibility Report, prepared by Kushlan I Associates, dated January 2023 (the “Eligibility Report”). The Eligibility Report was submitted to the Agency, which by adoption of Resolution No. 01-23 on February 2, 2023, found the additional area to be eligible and authorized the transmission of the Eligibility Report and Resolution to the Jerome City Council, together with the Agency’s recommendation that the area be designated as appropriate for an urban renewal project, and seeking direction from the City Council to proceed with an urban renewal plan amendment. The Jerome City Council, by adoption of Resolution No. 03-23 on February 7, 2023, found the area under consideration to be a deteriorating area or a deteriorated area in the City, as defined by the Law and the Act, and authorized preparation of a plan amendment. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 3 AMENDMENTS TO THE PLAN 1. Definitions. Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the Plan. 2. The following defined terms are amended throughout the Plan as follows: a. Delete “Project Area” and replace with “Amended Project Area” except where specifically referenced in this First Amendment. b. Delete references to “Attachment 1” and replace with “Attachment 1, as supplemented by Attachment 1A” except where specifically referenced in this First Amendment. c. Delete references to “Attachment 2” and replace with “Attachment 2, as supplemented by Attachment 2A” except where specifically referenced in this First Amendment. d. Delete references to “Attachment 4” and replace with “Attachment 4, as supplemented by Attachment 4A” except where specifically referenced in this First Amendment e. Delete references to “Attachments 5.1-5.4” and replace with “Attachments 5.1-5.4, as supplemented by Attachment 5A” except where specifically referenced in this First Amendment. 3. Amendment to List of Attachments. The List of Attachments on page iii of the Plan is amended by deleting the list of attachments and replacing it as follows: Attachment 1 Map of Urban Renewal Project Area and Revenue Allocation Area Attachment 1A Map of the Amendment Area Attachment 2 Legal Description of Urban Renewal Project Area and Revenue Allocation Area Attachment 2A Legal Description of the Boundary of the Amendment Area Attachment 3 Properties Which May be Acquired by the Agency (Limited to Public Improvements and Facilities) Attachment 4 Map Depicting Expected Land Uses and Current Zoning Map of the Project Area Attachment 4A Map Depicting Expected Land Uses and Current Zoning Within the Area Added by the First Amendment Attachment 5.1 Public Improvements within the Revenue Allocation Area Attachment 5.2 Economic Feasibility Study ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 4 Attachment 5.3 Revenue Allocation Estimates Attachment 5.4 Cash Flow Analysis Attachment 5A Supplement to Attachments 5.1-5.4: Financial Analysis Related to the 2023 Annexation Attachment 6 Agricultural Operation Consents Attachment 6A Agricultural Operation Consent Regarding the Amendment Area 4. Amendment to Section 100 of the Plan. Section 100 is amended by deleting the last sentence of the first paragraph and replacing it as follows: Attachments 1 through 6, as supplemented by Attachments 1A, 2A, 4A, 5A and 6A, attached hereto (collectively, the “Plan Attachments, as supplemented”) are incorporated herein and shall be considered a part of this Plan. 5. Amendment to Section 102 of the Plan. Section 102 entitled “Procedures Necessary to Meet State and Local Requirements: Conformance with the Idaho Urban Renewal Law of 1965, As Amended” is amended by adding new paragraphs to the end of the existing language as follows: Subsequent to the adoption of this Plan in 2018, in 2022, the Agency retained a third-party consultant to review approximately 7.55 acres of land adjacent and contiguous to the Project Area for an eligibility determination for an urban renewal project. The area reviewed included land contiguous to the northeastern boundary of the Project Area and generally bounded on the west by the Project Area boundary and by East 100 South Road (East Nez Perce Avenue) on the south (the “Amendment Area”). The Amendment Area represents a portion of a parcel that was part of a larger property purchased by the Agency with the stated purpose of developing a park as envisioned in the Plan. The Amendment Area was annexed into the City. The Amendment Area was reviewed and determined to be a deteriorated area and/or a deteriorating area under the Law and the Act and, therefore, eligible for inclusion into the existing revenue allocation area pursuant to the Jerome Area 5 Urban Renewal District Annexation Eligibility Report, prepared by Kushlan I Associates, dated June 2023 (the “Eligibility Report”). The Eligibility Report was submitted to the Agency, which by adoption of Resolution No. 01-23 on February 2, 2023, found the additional area to be eligible and authorized the transmission of the Eligibility Report and Resolution to the City Council, together with the Agency’s recommendation that the area be designated as appropriate for an urban renewal plan amendment. The City Council by adoption of Resolution No. 03-23 on February 7, 2023, found the area under ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 5 consideration to be a deteriorating area or a deteriorated area in the City, as defined by the Law and the Act, and authorized preparation of a plan amendment. This First Amendment to the Plan (the “First Amendment”) seeks to add the Amendment Area to the existing Project Area, and to make corresponding updates to the Plan and Plan Attachments. This First Amendment was prepared and submitted to the Agency for its review and approval. The Agency approved the First Amendment by the adoption of Resolution No. 03-23 on March 16, 2023 and submitted the First Amendment to the City Council with its recommendation for adoption. In accordance with the Law, this First Amendment was submitted to the Planning and Zoning Commission of the City. After consideration of the First Amendment, the Commission filed Resolution dated 2023, with the City Council stating that the First Amendment is in conformity with the City’s Comprehensive Plan. Pursuant to the Law and Act, the City Council, having published due notice thereof, held a public hearing on the First Amendment. Notice of the hearing was duly published in the Times-News, a newspaper having general circulation in the City. The City Council adopted the First Amendment on 2023, pursuant to Ordinance No. The Amendment Area being added to the Project Area hereby creates the “Amended Project Area” as further described and shown in Attachments 1, 1A, 2, and 2A. 6. Amendment to Section 103 of the Plan. Section 103 of the Plan is amended by the addition of new Section 103.1 entitled “History and Current Conditions of the Amendment Area” as follows: During 2022, the City, Agency, and other interested parties began to examine the need to expand the Project Area to include additional area adjacent and contiguous to the Project Area that continued to be underdeveloped and was a portion of a larger parcel acquired by the Agency. Located in the south-central part of the City, and immediately adjacent to the existing Project Area, the approximately 7.55 acres to be added to the Project Area includes currently undeveloped farmland acquired by the Agency for the purpose of developing a park as envisioned in the Plan. The Amendment Area was annexed into the City and was re-zoned. The Amendment Area exhibited deteriorating conditions similar to those identified in the original eligibility report, dated May 2018, and appended to the Eligibility Report, due to the predominance of defective or inadequate street layout and insanitary or unsafe conditions. The area is transitioning ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 6 from an agricultural use to a significant City park, including soccer fields, public parking, restrooms, picnic shelters, playground, pathways, and related park amenities, including the necessary below ground public infrastructure improvements, such as water and sewer system improvements. The inadequate street layout and insanitary/unsafe conditions result in economic underdevelopment of the area and are conditions that substantially impair and arrest the sound growth of the City. The First Amendment embraces the principles set forth in the Plan and proposes improvements to public infrastructure and other publicly owned assets throughout the Amendment Area, creating the framework for the development of the City park. The preparation and approval of an urban renewal plan amendment including a revenue allocation financing provision, gives the City additional resources to solve the public infrastructure problems in this area necessary to support development of the City park. Revenue allocation financing should help to improve the situation. In effect, property taxes generated by new developments within the Amended Project Area may be used by the Agency to finance a variety of needed public improvements and facilities in the Amended Project Area. Finally, the development of the new park supports community goals that would, in turn, benefit area residents. It is unlikely individual developers will take on the prohibitive costs of constructing the necessary infrastructure in the Amended Project Area without the ability of revenue allocation to help offset at least some of these costs. But for urban renewal and revenue allocation financing, the proposed City park and related public improvements would not occur. 7. Amendment to Section 200 of the Plan. a. Section 200 entitled “DESCRIPTION OF THE PROJECT AREA” is deleted and replaced as follows: DESCRIPTION OF THE AMENDED PROJECT AREA The boundaries of the Project Area and of the Revenue Allocation Area are shown on Attachment 1, Map of Urban Renewal Project Area and Revenue Allocation Area, and are described in Attachment 2, Legal Description of Urban Renewal Project Area and Revenue Allocation Area. The boundaries of the area added to the Project Area, pursuant to the First Amendment, are shown on Attachment 1A, Map of the Amendment Area, and are described in Attachment 2A, Legal Description of the Boundary of the Amendment Area. Collectively, the Project Area, as amended, may be referred to as the “Amended Project Area.” ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 7 For purposes of boundary descriptions and use of proceeds for payment of improvements, the boundary shall be deemed to extend to the outer boundary of rights-of-way or other natural boundary unless otherwise specified. The attachments referenced above are attached hereto and are incorporated herein by reference. 8. Amendment to Section 301 of the Plan. Section 301 is amended as follows: a. Section 301 is amended by adding a new paragraph to the end of the existing language as follows: m. The installation and construction of a new City park, which improvement is anticipated to include, soccer fields, and other sporting fields, public parking, public restrooms, picnic shelters, playground, pathways, and related park amenities, including the necessary public infrastructure or belowground public improvements, including, but not limited to, water, sewer, storm drainage, irrigation, electrical, natural gas, telecommunication, or other similar systems and lines, streets, roads, curbs, gutters, sidewalks, walkways, public parking facilities, or unoccupied auxiliary structures. 9. Amendment to Section 302 of the Plan. Section 302 is amended by deleting the first paragraph and replacing it as follows: Urban renewal activity is necessary in the Amended Project Area to combat problems of physical deterioration or deteriorating conditions. As set forth in greater detail in Sections 103 and 103.1, the Amended Project Area has a history of a slow growing tax base based on deteriorated or deteriorating conditions that have arrested or impaired growth in the Amended Project Area primarily attributed to: the presence of a substantial number of deteriorating structures; deterioration of site; age or obsolescence; a predominance of defective or inadequate street layout; outmoded street patterns; need for correlation of area with other areas of a municipality by streets and modern traffic requirements; faulty lot layout in relation to size, adequacy, accessibility or usefulness; unsuitable topography; unsanitary or unsafe conditions; diversity of ownership; and defective or very unusual conditions of title. The Plan for the Amended Project Area is a proposal to work in partnership with public and private entities to improve, develop, and grow the economy within the Amended Project Area, as well as the development of a significant public park, by the implementation of a strategy and program set forth in Section 301, as amended. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 8 10. Amendment to Section 502 of the Plan. a. Section 502 is amended by deleting the first sentence of the first paragraph and replacing it as follows: The Agency hereby adopts revenue allocation financing provisions as authorized by the Act, effective retroactively to January 1, 2018, for the original Project Area and effective retroactively to January 1, 2023, for the area added to the Project Area by the First Amendment. b. Section 502 is amended by deleting the first and second sentences of the fifth paragraph and replacing them as follows: A statement listing proposed public improvements and facilities, a schedule of improvements, an economic feasibility study, estimated project costs, fiscal impact upon other taxing districts, and methods of financing project costs required by Idaho Code Section 50-2905 is included in Attachments 5.1-5.4 to this Plan, and as updated and supplemented in Attachment 5A to include area added by the First Amendment. The information contained in Attachments 5.1-5.4 incorporated estimates and projections based on the Agency’s and the consultants’ knowledge and expectations at that time. The information contained in Attachment 5A necessarily incorporates estimates and projections based on the Agency’s present knowledge and expectations and includes analysis and assessment based on funding the proposed park improvements on the additional 7.55 acres added to the Project Area.1 11. Amendment to Section 502.1 of the Plan. Section 502.1 is amended by deleting Section 502.1 and replacing it as follows: Attachment 5.2 constitutes the Economic Feasibility Study (“Study”) as supported by Attachments 5.1, 5.3 and 5.4 prepared by Kushlan I Associates for the original Project Area. Attachment 5A updates and supplements the Study to include the area added to the Project Area by the First Amendment prepared by Kushlan I Associates. Portions of the data from Attachments 5.1-5.4 are restated in Attachment 5A to the extent additional information was available related to the timing of projects impacting revenue generation and project funding in the Amended Project Area (collectively, Attachments 5.1-5.4 and 5A are referred to as the “Study”). The Study constitutes the financial analysis required by the Act. 12. Amendment to Section 502.3 of the Plan. Section 502.3 of the Plan is amended by the addition of new Section 502.3.1 entitled “Updated Ten Percent Value Limitation and the Ten Percent Geographic Limitation” as follows: The First Amendment does not impact the 10% valuation limitation. For FY2023, it is estimated there would be significant increases to the taxable value due to rising property assessments and the Agency’s termination of the Southeast Industrial Project Area (Area The City estimated the City’s taxable value for FY2023 budget purposes to be $830,519.045. Therefore the 10% limit is $83,051,906.00. 1 See also Section 301 to the Plan, as amended. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 9 The adjusted base assessed value of each of the existing revenue allocation areas, plus the Amendment Area is estimated as follows: Area 3 Project Area $38,093,940 Area 4 Project Area $316,935 Area 5 Project Area $5,253,824 Proposed First Amendment to the Area 5 Project Area $02 TOTAL: $43,664,699 The adjusted base values for the combined revenue allocation areas total $43,664,699, which is less than 10% of the City’s current taxable value. Further, Idaho Code Section 50-2033 provides that after July 1, 2011: “[a]n urban renewal plan that includes a revenue allocation area may be extended only one time to extend the boundary of the revenue allocation area so long as the total are to be added is not greater than ten percent (10%) of the existing revenue allocation area and the area to be added is contiguous to the existing revenue allocation area but such contiguity cannot be established solely by a shoestring or strip of land which comprises a railroad or public right-of-way.” The Project Area consists of approximately 99 acres; therefore, the 10% geographic limit is approximately 9.9 acres. The area to be added to the Project Area, which is adjacent and contiguous to the Project Area, consists of approximately 7.55 acres, which is less than 10% of the acreage included in the Project Area. 13. Amendment to Section 502.7 of the Plan. a. Section 502.7 is amended by adding a new sentence at the end of the second sentence of the second paragraph as follows: The addition of the geographic area to the Project Area pursuant to the First Amendment does not reset the base;3 however, for the area added, the base value is the assessed value as of January 1 of the year in which the municipality approved the expansion or, in this instance, January 1, 2023. b. Section 502.7 is amended by adding a new footnote following the fourth sentence of the second paragraph as follows: House Bill 389 passed during the 2021 Legislative Session, effective in significant part as of January 1, 2021, further limits a taxing entity’s ability to increase the property tax portion of its budget. c. Section 502.7 is amended by adding a new footnote following the first sentence of the fifth paragraph as follows: House Bill 389 amended Idaho Code Sections 63-802 2 Amendment Area is tax exempt. 3 See Idaho Code Sections 50-2903A(1)(a)(ii) and 50-2033. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 10 and 63-301A limiting the value placed on the new construction roll and available to a taxing district for a budget capacity increase. This could result in lower levy rates over time. d. Section 502.7 is amended by deleting the last sentence of the fifth paragraph and replacing it as follows: Upon termination of this Plan, as amended by the First Amendment, and the Amended Project Area, the taxing entities will be able to include a percentage4 of the accumulated increment value on the new construction roll in setting the following year’s budget pursuant to Idaho Code Sections 63-802 and 63-301A. e. Section 502.7 is amended by adding new paragraphs following the end of the seventh paragraph as follows: Pursuant to the First Amendment and Attachment 5A concerning the expansion, as 2023 certified levy rates are not determined until late September 2023, the 2022 certified levy rates have been used in Attachment 5A for purposes of the analysis.5 Those taxing districts and rates are as follows: Taxing Districts: Levy Rates: City of Jerome .006653609 Jerome County .003406102 Cemetery District .000239758 Jerome Highway .001067804 Jerome Recreation .000418622 Jerome School #261 0 Ambulance District .000263308 South Idaho Jr. College .000728329 TOTAL6 House Bill 587, as amended in the Senate, effective July 1, 2020, amends Idaho Code Section 50-2908 altering the allocation of revenue allocation funds to the Agency from the Jerome County Highway District levy7. This amendment will apply to the Amendment Area8 added by this First Amendment and provides: “[i]n the case of a revenue allocation area first formed or expanded to include the property on or after July 1, 2020, all taxes levied by any highway district, unless the local governing body that 4 Pursuant to House Bill 389, 80% of the total eligible increment value is added to the new construction roll. 5 Due to the timing of the taxing districts’ budget and levy setting process, certification of the 2023 levy rates will not occur until this First Amendment had been prepared and considered by the Agency. In order to provide a basis to analyze the impact on the taxing entities, the 2022 levy rates are used. Use of the 2022 levy rates provides a more accurate base than estimating the 2023 levy rates. 6 Net of voter approved bonds and levies. 7 Senate Bill 1107, as amended in the Senate, effective July 1, 2021, made a corresponding amendment to Idaho Code Section 40-1415(3) to address the responsibility for funding certain urban renewal projects. 8 The amendment to Idaho Code Section 50-2908 does not apply to the original Project Area. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 11 created the revenue allocation area has responsibility for the maintenance of roads or highways” will be allocated to the applicable highway district, which in this case is the Jerome County Highway District. As the City has responsibility for the maintenance of roads or highways, the taxes levied by the Jerome County Highway District will be allocated to the Agency without the need for an agreement. The Study has made certain assumptions concerning the levy rate. As the actual impact of the property value fluctuations on the levy rate is unknown, the Study has assumed a combined levy rate of .0128, using the 2022 certified levy rate, and has assumed the levy rate will remain constant for the life of the Amended Project Area. Land values are estimated to inflate at 6%/year through 2024 and then inflate at a rate of 3%/year for the remaining duration of the Amended Project Area. Improvement values are estimated to inflate at a rate of 8%/year through 2024, and thereafter are estimated to inflate at a rate of 4%/year for the duration of the Amended Project Area. Estimated new development is anticipated occur periodically and be fully on the tax rolls in tax years 2021, 2022, 2025, 2027, 2029, 2031, 2035 and 2036. If the overall levy rate is less than projected, or if expected development fails to occur as estimated, the Agency shall receive fewer funds from revenue allocation. The Study has also considered the timing of the original projects identified in the Plan and advanced and/or pushed back the completion timeline where necessary to account for current market conditions. 14. Amendment to Section 800 of the Plan. Section 800 is amended by adding a new sentence at the end of the first paragraph as follows: The addition of parcels to the original Project Area pursuant to this First Amendment has no impact on the duration of this Plan. 15. Amendment to Plan to add new Attachment 1A. The Plan is amended to add new Attachment 1A entitled “Map of the Amendment Area,” attached hereto. 16. Amendment to Plan to add new Attachment 2A. The Plan is amended to add new Attachment 2A entitled “Legal Description of the Boundary of the Amendment Area,” attached hereto. 17. Amendment to Plan to add new Attachment 4A. The Plan is amended to add new Attachment 4A entitled “Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First Amendment,” attached hereto. 18. Amendment to Plan to add new Attachment 5A. The Plan is amended to add new Attachment 5A entitled “Supplement to Attachments 5.1-5.5: Financial Analysis Related to the 2023 Annexation,” attached hereto. ---PAGE BREAK--- FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE AREA 5 URBAN RENEWAL PROJECT- 12 19. Amendment to Plan to add new Attachment 6A. The Plan is amended to add new Attachment 6A entitled “Agricultural Operation Consent Regarding the Amendment Area,” attached hereto. 20. Area 5 Plan Remains in Effect. Except as expressly modified in this First Amendment, the Plan and the Attachments thereto remain in full force and effect. ---PAGE BREAK--- Attachment 1A Boundary Map of the Amendment Area Attachment 1A Boundary Map of the Amendment Area Attachment 1A Boundary Map of the Amendment Area Attachment 1A Boundary Map of the Amendment Area ---PAGE BREAK--- Instrument # 2225289 YEROME COUNTY. JEROME. IDAHO Located In A Portion of SW * & SE4, Section 19 Township 8 South, Range 17 East Boise Meridian Jerome County, Idaho 2022 ' HOVEY SUBDIVISION ! N89°54'24°E 599.10" a s Legend SURVEY BOUNDARY UNE SECTION LINE — SIXTEENTH SECTION LINE - — - — ADJACENT PROPERTY UNE fe COUNTY ROADWAY EASEMENT UNE = 3 CALCULATED POINT (NOT SET) A " FOUN ar ue L~00'r ‘ie ; 5 OUND BRASS CAP e / PARCEL 2 2 FOUND 5/8” REBAR (AS NOTED) ° .4 20.46 ACRES B FOUND 1/2” REBAR (AS NOTED) ° FOUND ALUMINUM CAP 8 roa 1/2” x 24° REBAR PARCEL 1 & CAP — LS 10110 . 7.55 ACRES+ %p . N89°52°02°;W 354.82 a 8 : le I % I 3 als I “ 2 g 4 ! ie s 5 z I Deed References Survey References 5 s je, NEI'SZO2W 325.00 ' p28 1485 ur 2 ca Y #248385 #311352 1 I #266760 #314343 . orien oye ‘ #987854 1 #2015431 ! I 42034440 A ‘ i #2036717 3 I 1 42056876 Pe I #2067224 o t $2182676 x » ; 42182248 s iS I 42160441 g 1 I #2184412 8 H ' #2202406 I ' #2214430 : \ I FOUND ALUMINUM CAP 42222607 R 1 \ CP. $2193880 #2174868 - LUTHERAN HEIGHTS SUBOIMISION 9190177 — KERRI SUBDIMISION 10 eh pts a wre 4 or I L rsigas’, 2 Y7 #2211453 - UPLAND MEADOWS SUBDMSION 30 1 Ng9°52'01'W 639.38" _ = Si a BS HOVEY SUBDNISION FOUND BRASS CAP CP. 42170369 NEZ PERCE (100 SOUTH ROAD) Curve Table Line Table Surveyor's Narrative PURPOSE OF THIS SURVEY TO 7 iB THI CURVE # DELTA RADIUS ARC CHORD TANGENT CHORD BRG UNE $ BEARING DISTANCE DRAM OF SPE DAECEL OF LOL SHOUT GAT REDDRD Gr SLVEY RECORDED AS INSTRUMENT NO. 2214430 FOR A SoMa ue ct 18°21'16" 325.00 104.11° 103.67" 52.51" N80°57'19°E ul $89°52'05"E 42.82' ADJUSTMENT BETWEEN DEEDS #248385 & $266760. MONUMENTS WERE 1 N68°55'28"E 185,00" a AL IEE COUNTY CORNERS, SECTION AND QUARTER CORNERS 3 7.94" SOOTHE; VIR CERTIFICATE OF SURVEYOR L4 N7I°46'41"E 142.02" LS so'o7'56°W 9.80" {6 = $84'29°46"E = 267.76" NorO9'01'W 158.41" I, CHRISTOPHER S. HARMISON, DO HEREBY CERTIFY THAT I AM A REGISTERED LAND SURVEYOR, IN THE STATE OF IDAHO, AND THIS MAP HAS BEEN PREPARED FROM AN ACTUAL SURVEY MADE ON THE GROUND UNDER MY DIRECT SUPERVISION, AND IS AN ACCURATE REPRESENTATION OF SAID SURVEY. IT IS IN CONFORMITY WITH THE CORNER PERPETUATION AND FILING ACT, STATE OF IDAHO CODE 55-1601 THROUGH 55-1612 AND TO THE IDAHO CODE RELATING TO SURVEYS. , Inc. gineers Engineers / Surveyors / Planners BUILDING THE FUTURE ON A FOUNDATION OF EXCELLENCE 621 North College Road, Suite 100 Twin Falls, Idaho 83301 p (208)-734-4888 fax (208)-734-6049 web: ehminc.com FM En Y < Record of Survey / Boundary Adjustment for JEROME RECREATION DISTRICT bomdens 219-20 APPROMID oesKem onan cH on NOVEMBER 2022 AL Ae Shows V 210-20 ROS-LLA 4 ---PAGE BREAK--- Attachment 2A Legal Description of the Boundary of the Amendment Area Attachment 2A Legal Description of the Boundary of the Amendment Area Attachment 2A Legal Description of the Boundary of the Amendment Area ---PAGE BREAK--- 210-20 Admin/Doc/Parcel 1 Page 1 of 1 Legal Description Parcel 1 Jerome County, Idaho Being a portion of the SW ¼ SE ¼ of Section 19, Township 8 South, Range 17 East, Boise Meridian, Jerome County, Idaho, more particularly described as follows: Beginning at the South Quarter corner of said Section 19 and being the REAL POINT OF BEGINNING; Thence, along the South Boundary of the SE ¼ of said Section 19, South 89°52’01” East 271.82 feet; Thence, leaving said South Boundary, North 00°07’34” West 1157.61 feet along a line parallel with the West Boundary of said SW ¼ SE ¼ of Section 19; Thence, South 71°46’41” West 59.14 feet; Thence, North 00°07’58” West 127.94 feet; Thence, South 68°55’28” West 185.00 feet; Thence, North 89°52’05” West 42.82 feet to a point on said West Boundary; Thence, along said West Boundary, South 00°07’34” East 1200.00 feet to said REAL POINT OF BEGINNING. Containing approximately 7.55 acres. End of Description ---PAGE BREAK--- Attachment 4A Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First Amendment Attachment 4A Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First Amendment ---PAGE BREAK--- 6 5 4 9 8 8 7 6 5 4 8 7 6 5 4 1 1 1 1 2 3 1 2 3 1 3 2 2 1 1 1 1 1 1 1 2 1 1 1 1 2 3 2 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1 3 1 1 1 1 1 2 1 3 1 2 3 3 1 2 11 16 10 13 10 11 12 10 18 16 18 11 16 15 12 16 12 16 13 16 16 10 10 16 10 12 16 11 4B 4A 3D 3C 3A 3B 3G 3F 3E 4D 4C 10 16 21 27 10 11 12 13 14 15 16 17 18 19 11 10 6 9 5 2 9 6 543 2 1 9 1357 VTR M O J I H F D B 58 575655 53 5251 50 48 47 46 45 44 43 42 41 40 38 3635 33 32 31 29 27 26 24 222120191817 15 13 12 11 68 33 31 41 39 51 53 59 55 65 61 7476 79 85 8792 96 27 23 19 15 11 21 18 12 24 42 52 32 38 26 62 56 68 800 816 808 804 811 819 815 914 910 904 820 423 405 415 407 403 425 417 808 804 805 801 719 715 711 707 807 805 801 717 713 709 705 808 804 720 716 712 708 800 720 716 708 805 801 725 419 422 434 512 442 916 904 912 900 908 920 915 907 911 919 923 903 417 425 433 437 511 519 427 435 439 507 515 422 430 438 510 518 945 941 937 929 925 917 943 939 935 927 919 915 950 946 942 934 930 926 922 926 918 944 930 940 936 934 947 939 935 931 927 923 919 948 944 940 936 932 928 924 920 218 314 129 121 115 316 273 406 414 528 520 516 504 426 712 328 322 312 310 220 212 106 535 523 519 505 429 419 403 331 323 317 311 209 219 221 229 115 125 801 975 901 218 114 112 110 108 106 104 103 101 100 106 215 411 401 319 309 227 221 215 209 311 321 325 401 407 415 419 429 308 318 326 408 412 416 420 424 148 202 310 314 324 400 406 410 418 428 432 510 515 509 503 427 421 415 333 327 321 315 237 231 225 209 203 123 115 109 103 547 323 237 238 310 430 199 183 167 151 135 119 105 124 107 136 134 141 211 130 160 150 115 110 280 311 429 425 820 607 527 521 515 509 508 514 520 526 527 521 515 509 409 415 420 414 412 402 403 409 415 403 409 415 420 414 408 329 323 317 311 306 310 316 322 328 329 323 317 311 310 316 322 328 329 323 317 311 301 225 225 201 221 229 219 911 821 808 804 726 725 805 800 726 915 919 923 927 931 935 942 936 928 920 916 701 711 717 807 803 725 508 934 924 922 501 511 523 525 609 617 625 629 915 923 929 931 612 608 602 600 520 512 303 305 315 401 424 412 406 400 332 326 320 316 306 930 928 906 230 222 122 909 919 923 927 929 117 119 127 207 213 219 223 225 980 942 932 900 417 409 820 810 309 301 225 219 211 201 121 832 808 813 925 929 933 929 925 921 917 916 912 909 913 813 808 804 800 720 716 712 706 702 812 714 700 616 610 600 524 518 510 504 800 517 509 514 524 815 801 717 709 412 408 402 300 312 320 118 124 716 200 212 [PHONE REDACTED] 1517 1520 1516 1512 1508 1410 1516 1512 1508 1504 1520 1617 1609 1605 1601 1521 1519 1515 1511 1507 1503 1409 1405 1401 1317 1329 1407 1321 1411 1415 1313 1333 1325 1301 1403 1620 1208 1015 1005 1027 1019 1009 1009 1019 1027 1035 1441 1343 1323 1285 1225 1515 1809 1843 1865 1833 1815 1731 1575 1922 1906 1848 1720 1532 1703 1756 1466 1410 1302 1002 1018 1201 1016 1100 1210 1120 1102 1038 1030 1228 910C 914C 914A 910A 1001 539 LS 541 LS 47E 100S 56E 100S 50E 100S USDA Wright SIRCOMM Darigold Schwan's Darigold Les Schwab LDS Church Rotary Park Trailer Yard Dairy Health FMI EPS LLC Jerome Homes Windwood Apts Plaza Mexico Family Health WOW Logistics B & R Bearing Lincoln Plaza Jerome Storage Pioneer Federal Napa Auto Parts Jackson Trucking Candlelight Park Lighthouse Church Dave's Automotive Retail & Resturant Old Hickory Sheds Bridon Cordage LLC Farnsworth Mortuary Caribou Construction Mountain View Equip Progressive Dairyman Valley Country Store Intermtn. Fabrication Jerome Cheese Company Farmers National Bank Jerome Business Center Automated Dairy Systems Automated Dairy Systems Magic Valley Milk Quality Mountain West Components Rich Thompson Trucking Inc Family Dollar Retail Spaces Canyonside Christian School Desano Place Assisted Living Magic Valley Christian Academy Future Proposed Park& Sports Complex S Lincoln Ave E Avenue H E Avenue I W Avenue I Bridon Way W Avenue H W Avenue G S Davis St W Avenue K 100 South Rd E E Avenue G W Nez Perce Ave Rose St E Avenue J E Nez Perce Ave S Buchanan St Leslie Dr. S Fillmore St W Avenue J E Avenue K Luther Way S Date St Roen Rd Trinity Rd S Birch St Glen Eagle Dr Thompson Ct. S Garfield St S Cedar St Country Ln Latemar Rd S Cleveland St Pioneer Ct Bird Farm Dr Owl Ct S Adams St Hawk Ct S Eisenhower St S Alder St S Jackson St E Avenue G S Alder St S Date St E Avenue K S Buchanan St S Date St S Birch St S Buchanan St W Avenue J S Cedar St Ridley's Farm Bureau Edward Jones D & B Supply Today's Dental Links Properties Majestic Meadows Clover Creek Apts First Federal Bank Thompson Subdivision Thompson Subdivision First American Title . \ City of Jerome The i n formati on represen ted on thi s map results from the compi lati on of a vari ety of source materi als. It ’s i n ten ded use i s as a resource for the Ci ty of Jerome Staff an d should n ot be used as a legal descri pti on or documen t. The Ci ty of Jerome makes n o represen tati on or warran ty con cern i n g the accuracy of sai d i n formati on , n or clai ms i t as a legal cartographi c resource. Legend Rai lroad Pri vate Streets Ci ty Li mi ts URA Area 5 Current URA Area 5 Amendment C2 General Business M2 Heavy Industrial Public/Semi Public R2 Residential Urban Renewal Agency Area 5 Current Zoning 2023 Apri l 2023 URA_Area5Amen d Z on i n g.mxd 1 inch = 500 feet Exhi bi t Map ---PAGE BREAK--- 5 4 9 8 9 8 7 6 5 4 7 6 5 4 1 1 1 1 1 2 3 1 2 3 1 3 2 2 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 2 3 2 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1 3 1 1 1 1 1 2 1 3 1 2 3 3 1 2 11 16 10 13 10 11 12 10 18 16 18 11 16 15 12 16 12 16 13 16 16 10 10 16 10 12 16 11 4B 4A 3D 3C 3A 3B 3G 3F 3E 4D 4C 10 16 21 27 10 11 12 13 14 15 16 17 18 19 11 6 9 5 2 9 6 543 2 1 9 1357 VTR M O J I H F D B 58 575655 53 5251 50 48 47 46 45 44 43 42 41 40 38 3635 33 32 31 29 27 26 24 222120191817 15 13 12 11 68 33 31 41 39 51 53 59 55 65 61 7476 79 85 8792 96 27 23 19 15 11 21 18 12 24 42 52 32 38 26 62 56 68 800 816 808 804 811 819 815 914 910 904 820 423 405 415 407 403 425 417 808 804 805 801 719 715 711 707 807 805 801 717 713 709 705 808 804 720 716 712 708 800 720 716 708 805 801 725 419 422 434 512 442 916 904 912 900 908 920 915 907 911 919 923 903 417 425 433 437 511 519 427 435 439 507 515 422 430 438 510 518 945 941 937 929 925 917 943 939 935 927 919 915 950 946 942 934 930 926 922 926 918 944 930 940 936 934 947 939 935 931 927 923 919 948 944 940 936 932 928 924 920 218 314 129 121 115 316 273 406 414 520 516 504 426 712 328 322 312 310 220 212 106 535 523 519 505 429 419 403 331 323 317 311 209 219 221 229 115 125 801 975 901 218 114 112 110 108 106 104 103 101 100 106 215 411 401 319 309 227 221 215 209 311 321 325 401 407 415 419 429 308 318 326 408 412 416 420 424 148 202 310 314 324 400 406 410 418 428 432 510 515 509 503 427 421 415 333 327 321 315 237 231 225 209 203 123 115 109 103 547 323 237 238 310 430 199 183 167 151 135 119 105 124 107 136 134 141 211 130 160 150 115 110 280 311 429 425 820 607 527 521 515 509 508 514 520 526 527 521 515 509 409 415 420 414 412 402 403 409 415 403 409 415 420 414 408 329 323 317 311 306 310 316 322 328 329 323 317 311 310 316 322 328 329 323 317 311 301 225 225 201 221 229 219 911 821 808 804 726 725 805 800 726 915 919 923 927 931 935 942 936 928 920 916 701 711 717 807 803 725 508 934 924 922 501 511 523 525 609 617 625 629 915 923 929 931 612 608 602 600 520 512 303 305 315 401 424 412 406 400 332 326 320 316 306 930 928 906 230 222 122 909 919 923 927 929 117 119 127 207 213 219 223 225 980 942 932 900 417 409 820 810 309 301 225 219 211 201 121 832 808 925 929 933 929 925 921 917 916 903 909 913 813 808 804 800 720 716 712 706 702 812 714 700 616 610 600 524 518 510 504 800 517 509 514 524 815 801 717 709 412 408 402 300 312 320 118 124 716 200 212 [PHONE REDACTED] 1517 1520 1516 1512 1508 1410 1516 1512 1508 1504 1520 1617 1609 1605 1601 1521 1519 1515 1511 1507 1503 1409 1405 1401 1317 1329 1407 1321 1411 1415 1313 1333 1325 1301 1403 1620 1208 1015 1005 1027 1019 1009 1009 1019 1027 1035 1441 1343 1323 1285 1225 1515 1809 1843 1865 1833 1815 1731 1575 1921 1922 1906 1848 1720 1532 1703 1756 1466 1410 1302 1002 1018 1201 1016 1100 1210 1120 1102 1038 1030 1228 910C 914C 914A 910A 1001 539 LS 541 LS 47E 100S 56E 100S 50E 100S USDA Wright SIRCOMM Darigold Schwan's Darigold Les Schwab LDS Church Rotary Park Trailer Yard Dairy Health FMI EPS LLC Jerome Homes Windwood Apts Plaza Mexico Family Health WOW Logistics B & R Bearing Lincoln Plaza Jerome Storage Pioneer Federal Napa Auto Parts Jackson Trucking Candlelight Park Lighthouse Church Dave's Automotive Retail & Resturant Northside Implement Old Hickory Sheds Bridon Cordage LLC Farnsworth Mortuary Caribou Construction Mountain View Equip Progressive Dairyman Valley Country Store Intermtn. Fabrication Jerome Cheese Company Farmers National Bank Jerome Business Center Automated Dairy Systems Automated Dairy Systems Magic Valley Milk Quality Mountain West Components Rich Thompson Trucking Inc Family Dollar Retail Spaces Canyonside Christian School Desano Place Assisted Living Magic Valley Christian Academy Future Proposed Park& Sports Complex S Lincoln Ave E Avenue H E Avenue I W Avenue I Bridon Way W Avenue H W Avenue G S Davis St 100 South Rd E E Avenue G W Avenue K W Nez Perce Ave Rose St E Avenue J E Nez Perce Ave S Buchanan St Leslie Dr. S Fillmore St W Avenue J E Avenue K Luther Way S Date St Roen Rd Trinity Rd Glen Eagle Dr S Birch St S Garfield St Thompson Ct. S Cedar St Country Ln Latemar Rd S Cleveland St S Alder St Pioneer Ct Bird Farm Dr S Adams St Owl Ct Hawk Ct S Eisenhower St S Jackson St S Date St S Birch St E Avenue G S Alder St E Avenue K S Birch St S Buchanan St W Avenue J S Date St W Avenue K S Buchanan St S Cedar St Ridley's Farm Bureau Edward Jones D & B Supply Today's Dental Links Properties Majestic Meadows Clover Creek Apts First Federal Bank Thompson Subdivision Thompson Subdivision First American Title . \ City of Jerome The i nfo rm ati o n represented o n thi s m ap resul ts fro m the co m pi l ati o n o f a vari ety o f so urce m ateri al s. It ’s i ntended use i s as a reso urce fo r the Ci ty o f Jero m e Staff and sho ul d no t be used as a l egal descri pti o n o r do cum ent. The Ci ty o f Jero m e m akes no representati o n o r warranty co ncerni ng the accuracy o f sai d i nfo rm ati o n, no r cl ai m s i t as a l egal carto graphi c reso urce. Legend Rai l ro ad Pri vate Streets Ci ty Li m i ts URA Area 5 Current URA Area 5 Amendment Current Land Use COMMERCIAL INDUSTRIAL MIX USE PUBLIC Current City of Jerome/County Impact Area Industrial Residential Urban Renewal Agency Area 5 Current Land Use 2023 Apri l 2023 URA_ Area5Am end Land Use.m xd 1 inch = 500 feet Amendment Area With the approval of the City of Jerome 2023 Comp. Plan/ FLUM the amended area and surrounding parcel land use classification will be Public. Exhi bi t Map ---PAGE BREAK--- Attachment 5A Supplement to the Attachments 5.1-5.4: Financial Analysis Related to the 2023 Annexation Attachment 5A Supplement to the Attachments 5.1-5.4: Financial Analysis Related to the 2023 Annexation ---PAGE BREAK--- ATTACHMENT 5.1A Public Improvements within the Revenue Allocation Area, As Amended This Attachment includes a project list of proposed public works or improvements within the Area 5 Project Area, as amended by the First Amendment (the “First Amendment”) to the Urban Renewal Plan for the Area 5 Urban Renewal Project (the “Area 5 Plan”). The Area 5 Project Area, as amended by the First Amendment, is collectively referred to as the “Amended Project Area” and the area added by the First Amendment is referred to as the “Amendment Area.” The proposed improvements within the Amended Project Area include improvements to streets, utilities, and other public rights-of-way amenities as well as improvements to parks and open space, property acquisition, bicycle and pedestrian facilities, and public parking. The revised Area 5 District Public Improvement List set forth below identifies needed investments in capital facilities by the Urban Renewal Agency of the City of Jerome (the “Agency” or “Jerome URA”). Capital facilities generally have long useful lives and significant costs. Some of the improvement projects contained in the revised Area 5 District Public Improvement List are also contained in the City of Jerome Capital Improvement Plan (CIP). Some improvement projects included in the revised Area 5 District Public Improvement List have evolved upon consideration of these and various other City plans and policies, including the Comprehensive Plan, and have grant funding allocated. The revised Area 5 District Public Improvement List is not an appropriation or approval of any specific project. The original Jerome URA Area 5 Plan covers the 20-year period 2019 to 2039. The First Amendment supplements and updates the original economic feasibility study and focuses on the remaining years from 2023 to 2039. The operation of the Idaho property tax system will provide a year’s revenue in 2039 after the formal termination of the Revenue Allocation Area (estimated at $2,400,000) this analysis does not recognize that income in determining economic feasibility. The Amended Project Area is estimated to generate $24,473,737 in tax increment revenue between 2019 and 2038 in addition to an initial operating loan from the Southeast Industrial Urban Renewal District totaling $40,000 to activate the program. The City of Jerome provided grant funds in the amount of $271,000 for certain street work within the Amended Project Area. In 2022 the Agency issued bonds (2022 Series B Bonds) yielding $4,410,000 for capital investment in the Amended Project Area. In 2023, the City of Jerome provided advance funding for park and street improvements in the amount of $2,238,908. It is anticipated that the Amended Project Area will reimburse the City for the advance funding in the later years prior to September 30, 2039. The total from the five sources is estimated to be $31,433,645. There are $7,425,204 of debt service obligations including the principal and interest on the 2022 Series B Bonds and the repayment of the initial operating loan identified in the fiscal analysis1. The fiscal analysis recognizes a sum of $22,611,000 for total other project costs as well as $866,473 for administrative/operating costs over the life of the Amended Project Area. The sum of $2,250,000 has been included to reimburse the City of Jerome for their advance funding of project expenses. 1 The $42,000 inter-fund loan was repaid in 2021. ---PAGE BREAK--- Total estimated expenditures, therefore, equal $30,902,677 leaving a small positive program balance of $530,968 at the end of the term. See attached cash flow analysis for detailed estimates. Project Funding Secure funding includes revenue allocation funds and is money the Jerome URA is highly likely to receive. The funds may not be in the Jerome URA’s possession at the beginning of the Plan period, but it is virtually certain that the Jerome URA will receive the funds. The Jerome URA may need to take specific actions to generate the funding, but those actions are within the Jerome URA’s powers. Despite the high probability of secure funding, no project can proceed until a specific, enforceable funding plan is in place. Potential funding is money that might be received by the Jerome URA. In every case the Jerome URA is eligible for the funding, and the source of funding exists under current law. However, each potential funding source requires one or more additional steps or decisions before the Jerome URA can obtain the resources, and the ultimate decision is outside of the Jerome URA’s independent control. Grant funds are an example of potential funding. Unfunded projects, or portions of projects lack secure or potential funding. The amount of tax increment contributed to each project may vary. These projects will be funded in part from a variety of other revenue sources if available. The timing of each project and the availability of all revenue sources will determine the final combination of funding sources. The Plan, as amended by the First Amendment to add the Amendment Area, proposes certain public improvements that will facilitate development and support rehabilitation in the Amended Project Area. The investments are anticipated to be funded from a variety of financing methods and sources. The primary method of financing will be through the use of tax increment revenue incremental property taxes from the revenue allocation area). This Plan, as amended, anticipates that the tax increment revenue may be used to pay for improvements on a pay-as- you-go basis, or through the issuance of bonds, Owner Participation Agreements (OPAs), grants, or a combination of sources. Other sources of funding for project may include, but are not limited to: • Local Improvement District (LID) • Business Improvement District (BID) • Development Impact Fees • Franchise Fees • Grants from federal, state, local, regional agencies and/or private entities • Other bonds, notes and/or loans • Improvements and/or payments by developers ---PAGE BREAK--- The total project costs and the amount of tax increment contributed to each project are estimates. The estimated project costs and revenues are based on the Jerome URA’s present knowledge and expectations supported by information from property owners, and City and Agency staff and consultants. The timing of each project and the availability of all revenue sources will determine the final combination of funding sources. ---PAGE BREAK--- Summary of Projects The following table summarizes the estimated total project costs to be incurred in implementing the Plan, as amended by the First Amendment adding the Amendment Area to the original Project Area, in the Amended Project Area. Specific project funding will be reviewed by the Jerome Urban Renewal Board during the annual budget cycle. Area 5 District Public Improvements List Street Improvements $3,951,000 Includes Drainage Improvements Includes Arterial and Collector Streets Streetscapes and Parking $600,000 Water System Improvements $805,000 Sewer System Improvements $5,355,000 Park Development2 $4,850,000 Property Acquisition & Site remediation $4,800,000 Total Project Costs $20,361,000 2 The College of Southern Idaho (CSI) has expressed its interest to enhance one of the planned soccer fields to accommodate intercollegiate soccer. CSI would fund those enhancements from its own resources. No revenue allocation funds will be used for those enhancements. Thus, the CSI funding is not shown or designated within the material set forth herein. In the event the CSI funding is not forthcoming, the soccer fields will be developed as part of the planned park improvements. ---PAGE BREAK--- Cost of Improvements by Year (2019-2039) Year Secure Funding Potential Funding Unfunded Total Project Liabilities 2019 $311,000.00 $0.00 $0.00 $291,000.00 2020 $28,321.00 $0.00 $0.00 $20,000.00 2021 $230,470.00 $0.00 $0.00 $65,047.00 2022 $316,891.00 $0.00 $0.00 $31,689.00 2023 $4,256,278.00 $0.00 $0.00 $4,096,141.00 2024 $2,191,860.00 $0.00 $0.00 $2,268,050.00 2025 $2,239,975.00 $0.00 $0.00 $1,968,050.00 2026 $1,008,009.00 $0.00 $0.00 $838,050.00 2027 $1,050,756.00 $0.00 $0.00 $912,250.00 2028 $1,351,206.00 $0.00 $0.00 $1,140,450.00 2029 $1,407,666.00 $0.00 $0.00 $1,267,450.00 2030 $1,530,377.00 $0.00 $0.00 $2,298,250.00 2031 $1,593,987.00 $0.00 $0.00 $1,636,250.00 2032 $1,660,134.00 $0.00 $0.00 $1,777,000.00 2033 $1,728,918.00 $0.00 $0.00 $1,515,250.00 2034 $1,838,845.00 $0.00 $0.00 $2,066,000.00 2035 $2,042,760.00 $0.00 $0.00 $1,818,500.00 2036 $2,126,821.00 $0.00 $0.00 $2,022,500.00 2037 $2,214,235.00 $0.00 $0.00 $2,237,750.00 2038 $2,305,136.00 $0.00 $0.00 $2,633,000.00 2039 $0.00 $0.00 $0.00 $0.00 Total $31,433,645.00 $0.00 $0.00 $30,902,677.00 • 1: Start up loan from Area 2 ($40,000) and Grant Funding ($271,000) • 2: Included annual revenue allocation proceeds ($217,370) City of Jerome Advance Funding ($2,238,908) and 2022B bond proceeds ($1,800,000) • 3: Includes revenue allocation proceeds ($891,860) and 2022B bond proceeds ($1,300,000) • 4: Includes revenue allocation proceeds ($929,975) and 2022B bond proceeds ($1,310,000) • 5: A positive cash balance of $530,968 remains at District termination ---PAGE BREAK--- ATTACHMENT 5.2A Updated Economic Feasibility Study The Plan, as amended by the First Amendment, is economically feasible because the proposed development is consistent with the City’s Comprehensive Plan, the amount of growth in the area is consistent with the growth projected in the Comprehensive Plan and the revenue from the Amended Project Area equals or exceeds the estimated costs of the projects to be funded by the Jerome URA. The economic feasibility of the Plan, as amended by the First Amendment, is based on the following factors: • The amount of development proposed in the Amended Project Area • The amount of tax revenue to be generated by the proposed development • The amount of other funding received or contemplated to be received for the Jerome URA public improvement projects • The estimated cost of Jerome URA public improvement projects to be funded by the Jerome URA’s tax increment revenue and other potentially available funds. The following is a summary of the analysis and estimates of the factors used to determine the economic feasibility of Plan, as amended by the First Amendment. Updated Economic Feasibility Analysis Summary: Over the course of the Amended Project Area, $24,473,737 of Tax Increment Revenue is anticipated to be generated. The updated Economic Feasibility Study assumes ten percent (10%) will be used annually for administration of the Amended Project Area for a total of $866,473 (2.76% of total revenue) for administration and operating costs over the 20-year lifespan of the Amended Project Area. Administrative expense has been capped at $50,000 annually for this analysis. At the conclusion of the Amended Project Area in 2039, the termination plan will submit any unspent funds by September 30, 2039 to the County Treasurer to distribute to the taxing districts according to their levy percentages. The spreadsheet entitled “Amended Jerome Area 5 Urban Renewal District Cash Flow Analysis” gives a more detailed outlook on the revenues and expenses of the Amended Project Area. The following assumptions were made in the formulation of the Updated Economic Feasibility Analysis: ---PAGE BREAK--- o Land Value Increase @ 6% / Year through 2024 then 3% thereafter. o Improvement Value Increase @ 8% / Year through 2024 then 4% thereafter. o Early industrial investment within the original Project Area along with anticipated additional investment drive the projections. One project came on the tax rolls in 2021 followed by a second significant investment (currently under construction) in 2023 with tax impacts in 2024. Other similar investments are anticipated in the later years of the Amended Project Area. Smaller commercial investments are spread throughout the analysis period. o Tax Rate remains constant. o Total estimated cost of the revised Area 5 District Public Improvements List over the life of the project: $20,361,000. o Tax rate does not include levies excluded pursuant to Idaho Code 50-2908, such as voter approved bonds/levies after 2007, judgment levies or the School District Plant or supplemental levies excluded by law. The Updated Economic Feasibility Analysis shows that the project is 100% financially feasible and will generate adequate funds within the original Project Area to fund the necessary capital improvements in the Amended Project Area. The Agency has pursued outside funding sources to augment tax increment revenues and has issued debt advancing project schedules. The Agency is committed to closing the Amended Project Area as soon as the projects are deemed completed and all infrastructure improvements are made and financial obligations satisfied. This would result in a benefit to the overlapping taxing districts and taxpayers supporting those districts. 4881-4458-6580, v. 5 ---PAGE BREAK--- Jerome Area 5 Amended Project Area Revenue Allocation Estimate March 2023 6% annual increase in Land Value for 5 years from 2019, then and 8% annual increase in Improvement Value for 5 years from 2019, then 4% Year Land Value annually) for 5 years, then 3% Initial Improvement Value annually for 5 years, then 4% Total Assessed Value New Development Value on tax roll Cum. New Const Value + Inflation Taxable Value Increment Value (G - Base) Levy Rate Tax Increment Yield Admin Costs Contribution (10%) Funding for Capital Projects/Debt Service 2019 1,503,579 $ 3,722,824 $ 5,226,403 $ - $ - $ 5,226,403 $ - $ 0.015 2020 1,593,794 $ 4,020,650 $ 5,614,444 $ 1,500,000 $ 1,500,000 $ 7,114,444 $ 1,888,041 $ 0.015 28,321 $ 2,832 $ 25,489 $ 2021 1,689,421 $ 4,342,302 $ 6,031,723 $ 13,059,367 $ 14,559,367 $ 20,591,090 $ 15,364,687 $ 0.015 230,470 $ 23,047 $ 207,423 $ 2022 1,631,012 $ 12,628,355 $ 14,259,367 $ 15,724,116 $ 29,983,483 $ 24,757,080 $ 0.0128 316,891 $ 31,689 $ 285,202 $ 2023 1,728,873 $ 13,638,623 $ 15,367,496 $ - $ 16,982,046 $ 32,349,542 $ 16,982,046 $ 0.0128 217,370 $ 21,737 $ 195,633 $ 2024 1,832,605 $ 14,729,713 $ 16,562,318 $ 40,000,000 $ 58,340,609 $ 74,902,928 $ 69,676,525 $ 0.0128 891,860 $ 50,000 $ 841,860 $ 2025 1,887,583 $ 15,318,902 $ 17,206,485 $ - $ 60,674,234 $ 77,880,719 $ 72,654,316 $ 0.0128 929,975 $ 50,000 $ 879,975 $ 2026 1,944,211 $ 15,931,658 $ 17,875,869 $ 3,000,000 $ 66,101,203 $ 83,977,072 $ 78,750,669 $ 0.0128 1,008,009 $ 50,000 $ 958,009 $ 2027 2,002,537 $ 16,568,924 $ 18,571,461 $ - $ 68,745,251 $ 87,316,712 $ 82,090,309 $ 0.0128 1,050,756 $ 50,000 $ 1,000,756 $ 2028 2,062,613 $ 17,231,681 $ 19,294,294 $ 20,000,000 $ 91,495,061 $ 110,789,356 $ 105,562,953 $ 0.0128 1,351,206 $ 50,000 $ 1,301,206 $ 2029 2,124,492 $ 17,920,948 $ 20,045,440 $ - $ 95,154,864 $ 115,200,304 $ 109,973,901 $ 0.0128 1,407,666 $ 50,000 $ 1,357,666 $ 2030 2,188,226 $ 18,637,786 $ 20,826,013 $ 5,000,000 $ 103,961,058 $ 124,787,071 $ 119,560,668 $ 0.0128 1,530,377 $ 50,000 $ 1,480,377 $ 2031 2,253,873 $ 19,383,298 $ 21,637,171 $ - $ 108,119,501 $ 129,756,671 $ 124,530,268 $ 0.0128 1,593,987 $ 50,000 $ 1,543,987 $ 2032 2,321,489 $ 20,158,630 $ 22,480,119 $ - $ 112,444,281 $ 134,924,400 $ 129,697,997 $ 0.0128 1,660,134 $ 50,000 $ 1,610,134 $ 2033 2,391,134 $ 20,964,975 $ 23,356,109 $ - $ 116,942,052 $ 140,298,161 $ 135,071,758 $ 0.0128 1,728,918 $ 50,000 $ 1,678,918 $ 2034 2,462,868 $ 21,803,574 $ 24,266,442 $ 3,000,000 $ 124,619,734 $ 148,886,176 $ 143,659,773 $ 0.0128 1,838,845 $ 50,000 $ 1,788,845 $ 2035 2,536,754 $ 22,675,717 $ 25,212,471 $ 10,000,000 $ 139,604,523 $ 164,816,994 $ 159,590,591 $ 0.0128 2,042,760 $ 50,000 $ 1,992,760 $ 2036 2,612,857 $ 23,582,746 $ 26,195,602 $ - $ 145,188,704 $ 171,384,306 $ 166,157,903 $ 0.0128 2,126,821 $ 50,000 $ 2,076,821 $ 2037 2,691,242 $ 24,526,055 $ 27,217,298 $ - $ 150,996,252 $ 178,213,550 $ 172,987,147 $ 0.0128 2,214,235 $ 50,000 $ 2,164,235 $ 2038 2,771,980 $ 25,507,098 $ 28,279,077 $ - $ 157,036,102 $ 185,315,180 $ 180,088,777 $ 0.0128 2,305,136 $ 50,000 $ 2,255,136 $ 95,559,367 $ 24,473,737 $ 829,305 $ 23,644,432 $ Assumptions: Amendment Area is tax exempt and has a base value of $0 Property tax income available in the year after completion of construction New construction values inflate on same basis as original improvement values Administrative costs at 10% capped at $50,000 per year, augmented by inter-district loan Land Values inflate at 6% per year through 2024 then 3% thereafter Improvement Values inflate at 8% per year through 2024 then 4% thereafter Assumes no owner occupied structures eligible for Homeowner's Exemption ---PAGE BREAK--- Projected Jerome Area 5 Amended Urban Renewal District Cash Flow Analysis 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Beginning Balance - $ 20,000 $ 28,321 $ 193,744 $ 478,946 $ 639,083 $ 562,893 $ 834,818 $ 1,004,777 $ 1,143,283 $ 1,354,039 $ Source of Funds Revenue Allocation - $ 28,321 $ 230,470 $ 316,891 $ 217,370 $ 891,860 $ 929,975 $ 1,008,009 $ 1,050,756 $ 1,351,206 $ 1,407,666 $ JURA Inter-District Loan * 40,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Other Revenue - Grant 271,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Other Revenue - City Advance Funding - $ - $ - $ - $ 2,238,908 $ - $ - $ - $ - $ - $ - $ Bond Proceeds 1,800,000 $ 1,300,000 $ 1,310,000 $ Total Funds Available 311,000 $ 48,321 $ 258,791 $ 510,635 $ 4,735,224 $ 2,830,943 $ 2,802,868 $ 1,842,827 $ 2,055,533 $ 2,494,489 $ 2,761,705 $ Use of Funds District Operating Expenses 20,000 $ 20,000 $ 23,047 $ 31,689 $ 21,737 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ et Available After Operating Expenses 291,000 $ 28,321 $ 235,744 $ 478,946 $ 4,713,487 $ 2,780,943 $ 2,752,868 $ 1,792,827 $ 2,005,533 $ 2,444,489 $ 2,711,705 $ 2022B Bond Debt Service Interest - $ - $ - $ - $ 234,404 $ 218,050 $ 218,050 $ 218,050 $ 217,250 $ 215,450 $ 212,450 $ 2022B Bond Principal - $ - $ - $ 20,000 $ 45,000 $ 75,000 $ 105,000 $ Total Debt Service - $ - $ 234,404 $ 218,050 $ 218,050 $ 238,050 $ 262,250 $ 290,450 $ 317,450 $ Repay Inter-District Loan @ 5% - $ - $ 42,000 $ - $ - $ - $ - $ - $ - $ - $ - $ Available for Other District Projects 193,744 $ 478,946 $ 4,479,083 $ 2,562,893 $ 2,534,818 $ 1,554,777 $ 1,743,283 $ 2,154,039 $ 2,394,255 $ Sewer System - $ 105,000 $ 2,000,000 $ 1,700,000 $ 300,000 $ 500,000 $ Water System 255,000 $ 250,000 $ 100,000 $ Streets 271,000 $ 630,000 $ 300,000 $ 500,000 $ 300,000 $ Streetscapes 300,000 $ 200,000 $ 100,000 $ Park Development 2,850,000 $ roperty Acquisition /Site Remediation - $ Reimburse City Advance Funding - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total Other District Projects 271,000 $ - $ - $ - $ 3,840,000 $ 2,000,000 $ 1,700,000 $ 550,000 $ 600,000 $ 800,000 $ 900,000 $ Total Use of Funds 291,000 $ 20,000 $ 65,047 $ 31,689 $ 4,096,141 $ 2,268,050 $ 1,968,050 $ 838,050 $ 912,250 $ 1,140,450 $ 1,267,450 $ Ending Balance 20,000 $ 28,321 $ 193,744 $ 478,946 $ 639,083 $ 562,893 $ 834,818 $ 1,004,777 $ 1,143,283 $ 1,354,039 $ 1,494,255 $ 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Total Beginning Balance 1,494,255 $ 726,382 $ 684,119 $ 567,253 $ 780,921 $ 553,766 $ 778,026 $ 882,347 $ 858,832 $ - $ Source of Funds Revenue Allocation 1,530,377 $ 1,593,987 $ 1,660,134 $ 1,728,918 $ 1,838,845 $ 2,042,760 $ 2,126,821 $ 2,214,235 $ 2,305,136 $ - $ 24,473,737 $ JURA Inter-District Loan - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 40,000 $ Other Revenue - Grant - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 271,000 $ Other Revenue - City Advance Funding - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,238,908 $ Bond Proceeds - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,410,000 $ Total Funds Available 3,024,632 $ 2,320,369 $ 2,344,253 $ 2,296,171 $ 2,619,766 $ 2,596,526 $ 2,904,847 $ 3,096,582 $ 3,163,968 $ - $ 31,433,645 $ Use of Funds District Operating Expenses 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ - $ 866,473 $ et Available After Operating Expenses 2,974,632 $ 2,270,369 $ 2,294,253 $ 2,246,171 $ 2,569,766 $ 2,546,526 $ 2,854,847 $ 3,046,582 $ 3,113,968 $ - $ 44,152,975 $ 2022B Bond Debt Service Interest 208,250 $ 201,250 $ 192,000 $ 180,250 $ 166,000 $ 148,500 $ 127,500 $ 102,750 $ 113,000 $ - $ 2,973,204 $ 2022B Bond Principal 140,000 $ 185,000 $ 235,000 $ 285,000 $ 350,000 $ 420,000 $ 495,000 $ 585,000 $ 1,470,000 $ - $ 4,410,000 $ Total Debt Service 348,250 $ 386,250 $ 427,000 $ 465,250 $ 516,000 $ 568,500 $ 622,500 $ 687,750 $ 1,583,000 $ - $ 7,383,204 $ Repay Inter-district Loan @ 5% - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 42,000 $ Available for Other District Projects 2,626,382 $ 1,884,119 $ 1,867,253 $ 1,780,921 $ 2,053,766 $ 1,978,026 $ 2,232,347 $ 2,358,832 $ 1,530,968 $ - $ Sewer System 400,000 $ 350,000 $ - $ 5,355,000 $ ---PAGE BREAK--- Projected Jerome Area 5 Amended Urban Renewal District Cash Flow Analysis Water System - $ 200,000 $ 805,000 $ Streets 500,000 $ 450,000 $ 500,000 $ 500,000 $ - $ - $ 3,951,000 $ Streetscapes 600,000 $ Park Development - $ 1,000,000 $ 1,000,000 $ - $ - $ 4,850,000 $ roperty Acquisition /Site Remediation 500,000 $ 550,000 $ 250,000 $ 1,000,000 $ 1,500,000 $ 1,000,000 $ - $ 4,800,000 $ Reimburse City Advance Funding 1,000,000 $ 250,000 $ 250,000 $ 750,000 $ - $ - $ - $ - $ - $ - $ 2,250,000 $ Total Other District Projects 1,900,000 $ 1,200,000 $ 1,300,000 $ 1,000,000 $ 1,500,000 $ 1,200,000 $ 1,350,000 $ 1,500,000 $ 1,000,000 $ - $ 22,611,000 $ Total Use of Funds 2,298,250 $ 1,636,250 $ 1,777,000 $ 1,515,250 $ 2,066,000 $ 1,818,500 $ 2,022,500 $ 2,237,750 $ 2,633,000 $ - $ 30,902,677 $ Ending Balance 726,382 $ 684,119 $ 567,253 $ 780,921 $ 553,766 $ 778,026 $ 882,347 $ 858,832 $ 530,968 $ - $ Assumptions 2022B Bond Payments due on 9/30/2039 have been included in the FY 2038 allocation. (2038 Interest = $73,500; 2039 Interest = $39,500; 2038 Principal = $680,000; 2039 Principal = $790,000) Reflects Positive Cash Balance at termination in 2038 of $530,968 Cash Flow does not recognize revenue allocation proceeds due to JURA in year after district termination (estimate = $2,400,000) Assumes Reimbursement to City of Jerome for initial advance funding for park related costs in 2023. ($2,250,000) It is anticipated that the Jerome Urban Renewal Agency will loan the new District $40,000 to fund operations until tax receipts are available. Provides for 10% of annual revenue allocation for administration and professional support. Capped at $50,000 annually. Adminstrative expenses equals approximately 2.76% of revenues ($866,473) Reflects total debt service for 2022B Bonds ($7,383,204) ---PAGE BREAK--- Attachment 6A Agricultural Operation Consent Regarding the Amendment Area 4883-3738-9908, v. 5 Attachment 6A Agricultural Operation Consent Regarding the Amendment Area 4883-3738-9908, v. 5 ---PAGE BREAK--- AGRICULTURAL OPERATION CONSENT FORM COMES NOW Kathy Cone, Chair of the Urban Renewal Agency of the City of Jerome, Idaho, an independent public body corporate and politic under Chapters 20 and 29, Idaho Code (the “Agency”), and states that the Agency owns that certain property generally described as Parcel Identification Number in the real property records of Jerome County, Idaho, and more particularly described on Exhibit A attached hereto and incorporated herein by reference (the “Property”), and hereby certifies: that the Property has been used, within the last three years, as an agricultural operation; and that the undersigned has reviewed the materials provided in Exhibit B, and has had an opportunity to review the urban renewal eligibility report, dated January 2023, entitled Jerome Area S Urban Renewal District Annexation Eligibility Report, prepared by KushlanI Associates and as attached hereto as Exhibit C. Further, Kathy Cone, Chair of the Agency, hereby provides the Agency’s consent and approval that the subject Property may be included within a proposed urban renewal/revenue allocation area and may be deemed appropriate for inclusion within an urban renewal project area as defined by the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended, and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended, as the property possesses certain characteristics of eligibility. URBAN RENEWAL AGENCY OF THE CITY OF JEROME, IDAHO L. Name:Kathy’Cone Title: Chair ---PAGE BREAK--- STATE OF IDAHO ) ) ss: County of Jerome On this 2nd day of Eelacaay, 2023, before me, a Notary Public for the state of Idaho, personally appeared Kathy Coney known or identified to me to be the Chair of the Urban Renewal Agency of the City of Jeromé, ie and acknowledged to me that she executed the same. penetra ot om PER D. a: QOTARY ye 1H atell, Cake < ON o> Wy: = =I Notary Public = + Pf N Aes UBL\ Pi My Commission Expires on Ito . =p OS ~ “222 No, 2084" VS 4, Seenet or. 71, & oF Ws ---PAGE BREAK--- 210-20 Admin/Doc/Parcel 1 Page 1 of 1 Legal Description Parcel 1 Jerome County, Idaho Being a portion of the SW ¼ SE ¼ of Section 19, Township 8 South, Range 17 East, Boise Meridian, Jerome County, Idaho, more particularly described as follows: Beginning at the South Quarter corner of said Section 19 and being the REAL POINT OF BEGINNING; Thence, along the South Boundary of the SE ¼ of said Section 19, South 89°52’01” East 271.82 feet; Thence, leaving said South Boundary, North 00°07’34” West 1157.61 feet along a line parallel with the West Boundary of said SW ¼ SE ¼ of Section 19; Thence, South 71°46’41” West 59.14 feet; Thence, North 00°07’58” West 127.94 feet; Thence, South 68°55’28” West 185.00 feet; Thence, North 89°52’05” West 42.82 feet to a point on said West Boundary; Thence, along said West Boundary, South 00°07’34” East 1200.00 feet to said REAL POINT OF BEGINNING. Containing approximately 7.55 acres. End of Description ---PAGE BREAK--- Instrument # 2225289 YEROME COUNTY. JEROME. IDAHO Located In A Portion of SW * & SE4, Section 19 Township 8 South, Range 17 East Boise Meridian Jerome County, Idaho 2022 ' HOVEY SUBDIVISION ! N89°54'24°E 599.10" a s Legend SURVEY BOUNDARY UNE SECTION LINE — SIXTEENTH SECTION LINE - — - — ADJACENT PROPERTY UNE fe COUNTY ROADWAY EASEMENT UNE = 3 CALCULATED POINT (NOT SET) A " FOUN ar ue L~00'r ‘ie ; 5 OUND BRASS CAP e / PARCEL 2 2 FOUND 5/8” REBAR (AS NOTED) ° .4 20.46 ACRES B FOUND 1/2” REBAR (AS NOTED) ° FOUND ALUMINUM CAP 8 roa 1/2” x 24° REBAR PARCEL 1 & CAP — LS 10110 . 7.55 ACRES+ %p . N89°52°02°;W 354.82 a 8 : le I % I 3 als I “ 2 g 4 ! ie s 5 z I Deed References Survey References 5 s je, NEI'SZO2W 325.00 ' p28 1485 ur 2 ca Y #248385 #311352 1 I #266760 #314343 . orien oye ‘ #987854 1 #2015431 ! I 42034440 A ‘ i #2036717 3 I 1 42056876 Pe I #2067224 o t $2182676 x » ; 42182248 s iS I 42160441 g 1 I #2184412 8 H ' #2202406 I ' #2214430 : \ I FOUND ALUMINUM CAP 42222607 R 1 \ CP. $2193880 #2174868 - LUTHERAN HEIGHTS SUBOIMISION 9190177 — KERRI SUBDIMISION 10 eh pts a wre 4 or I L rsigas’, 2 Y7 #2211453 - UPLAND MEADOWS SUBDMSION 30 1 Ng9°52'01'W 639.38" _ = Si a BS HOVEY SUBDNISION FOUND BRASS CAP CP. 42170369 NEZ PERCE (100 SOUTH ROAD) Curve Table Line Table Surveyor's Narrative PURPOSE OF THIS SURVEY TO 7 iB THI CURVE # DELTA RADIUS ARC CHORD TANGENT CHORD BRG UNE $ BEARING DISTANCE DRAM OF SPE DAECEL OF LOL SHOUT GAT REDDRD Gr SLVEY RECORDED AS INSTRUMENT NO. 2214430 FOR A SoMa ue ct 18°21'16" 325.00 104.11° 103.67" 52.51" N80°57'19°E ul $89°52'05"E 42.82' ADJUSTMENT BETWEEN DEEDS #248385 & $266760. MONUMENTS WERE 1 N68°55'28"E 185,00" a AL IEE COUNTY CORNERS, SECTION AND QUARTER CORNERS 3 7.94" SOOTHE; VIR CERTIFICATE OF SURVEYOR L4 N7I°46'41"E 142.02" LS so'o7'56°W 9.80" {6 = $84'29°46"E = 267.76" NorO9'01'W 158.41" I, CHRISTOPHER S. HARMISON, DO HEREBY CERTIFY THAT I AM A REGISTERED LAND SURVEYOR, IN THE STATE OF IDAHO, AND THIS MAP HAS BEEN PREPARED FROM AN ACTUAL SURVEY MADE ON THE GROUND UNDER MY DIRECT SUPERVISION, AND IS AN ACCURATE REPRESENTATION OF SAID SURVEY. IT IS IN CONFORMITY WITH THE CORNER PERPETUATION AND FILING ACT, STATE OF IDAHO CODE 55-1601 THROUGH 55-1612 AND TO THE IDAHO CODE RELATING TO SURVEYS. , Inc. gineers Engineers / Surveyors / Planners BUILDING THE FUTURE ON A FOUNDATION OF EXCELLENCE 621 North College Road, Suite 100 Twin Falls, Idaho 83301 p (208)-734-4888 fax (208)-734-6049 web: ehminc.com FM En Y < Record of Survey / Boundary Adjustment for JEROME RECREATION DISTRICT bomdens 219-20 APPROMID oesKem onan cH on NOVEMBER 2022 AL Ae Shows V 210-20 ROS-LLA 4 ---PAGE BREAK--- EXHIBIT B EXCERPTS OF STATUTES IDAHO CODE 50-2018(8) AND "Deteriorated area” shall mean an area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare. Provided however, this definition shall not apply to any agricultural operation, as defined in section 22-4502(2), Idaho Code, absent the consent of the owner of the agricultural operation or to any forest land as defined in section 63- 1701(4), Idaho Code, absent the consent of the forest landowner, as defined in section 63-1701(5), Idaho Code, except for an agricultural operation or forest land that has not been used for three consecutive years. "Deteriorating area" shall mean an area which by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use; provided, that if such deteriorating area consists of open land the conditions contained in the proviso in section 50-2008(d), Idaho Code, shall apply; and provided further, that any disaster area referred to in section 50-2008(g), Idaho Code, shall constitute a deteriorating area. Provided however, this definition shall not apply to any agricultural operation, as defined in section 22-4502(2), Idaho Code, absent the consent of the owner of the agricultural operation or to any forest land as defined in section 63-1701(4), Idaho Code, absent the consent of the forest landowner, as defined in section 63-1701(5), Idaho Code, except for an agricultural operation or forest land that has not been used for three consecutive years. ---PAGE BREAK--- IDAHO CODE § 50-2008 50-2008. PREPARATION AND APPROVAL OF PLAN FOR URBAN RENEWAL PROJECT. An urban renewal project for an urban renewal area shall not be planned or initiated unless the local governing body has, by resolution, determined such area to be a deteriorated area or a deteriorating area or a combination thereof and designated such area as appropriate for an urban renewal project. An urban renewal agency may itself prepare or cause to be prepared an urban renewal plan, or any person or agency, public or private, may submit such a plan to an urban renewal agency. Prior to its approval of an urban renewal project, the local governing body shall submit such plan to the planning commission of the municipality, if any, for review and recommendations as to its conformity with the general plan for the development of the municipality as a whole. The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within sixty (60) days after receipt of the plan for review. Upon receipt of the recommendations of the planning commission, or if no recommendations are received within said sixty (60) days, then without such recommendations, the local governing body may proceed with the hearing on the proposed urban renewal project prescribed by subsection hereof. The local governing body shall hold a public hearing on an urban renewal project, after public notice thereof by publication in a newspaper having a general circulation in the area of operation of the municipality. The notice shall describe the time, date, place and purpose of the hearing, shall generally identify the urban renewal area covered by the plan, and shall outline the general scope of the urban renewal project under consideration. Following such hearing, the local governing body may approve an urban renewal project and the plan therefor if it finds that a feasible method exists for the location of families who will be displaced from the urban renewal area in decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families; the urban renewal plan conforms to the general plan of the municipality as a whole; the urban renewal plan gives due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety and welfare of children residing in the general vicinity of the site covered by the plan; and the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise: Provided, that if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency, such area shall not be so acquired unless if it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and ---PAGE BREAK--- development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. An urban renewal plan may be modified at any time: Provided that if modified after the lease or sale by the urban renewal agency of real property in the urban renewal project area, such modification may be conditioned upon such approval of the owner, lessee or successor in interest as the urban renewal agency may deem advisable and in any event shall be subject to such rights at law or in equity as a lessee or purchaser, or his successor or successors in interest, may be entitled to assert. Upon the approval by the local governing body of an urban renewal plan or of any modification thereof, such plan or modification shall be deemed to be in full force and effect for the respective urban renewal area, and the urban renewal agency may then cause such plan or modification to be carried out in accordance with its terms. Notwithstanding any other provisions of this act, where the local governing body certifies that an area is in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe respecting which the governor of the state has certified the need for disaster assistance under 42 U.S.C. section 5121, or other federal law, the local governing body may approve an urban renewal plan and an urban renewal project with respect to such area without regard to the provisions of subsection of this section and the provisions of this section requiring a general plan for the municipality and a public hearing on the urban renewal project. Any urban renewal plan containing a revenue allocation financing provision shall include the information set forth in section 50-2905, Idaho Code. ---PAGE BREAK--- IDAHO CODE §50-2903(8) "Deteriorated area" means: Any area, including a slum area, in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare. Any area which by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, results in economic underdevelopment of the area, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use. Any area which is predominately open and which because of obsolete platting, diversity of ownership, deterioration of structures or improvements, or otherwise, results in economic underdevelopment of the area or substantially impairs or arrests the sound growth of a municipality. The provisions of section 50-2008(d), Idaho Code, shall apply to open areas. Any area which the local governing body certifies is in need of redevelopment or rehabilitation as a result of a flood, storm, earthquake, or other natural disaster or catastrophe respecting which the governor of the state has certified the need for disaster assistance under any federal law. Any area which by reason of its proximity to the border of an adjacent state is competitively disadvantaged in its ability to attract private investment, business or commercial development which would promote the purposes of this chapter. "Deteriorated area" does not mean not developed beyond agricultural, or any agricultural operation as defined in section 22-4502(1), Idaho Code, or any forest land as defined in section 63-1701(4), Idaho Code, unless the owner of the agricultural operation or the forest landowner of the forest land gives written consent to be included in the deteriorated area, except for an agricultural operation or forest land that has not been used for three consecutive years. ---PAGE BREAK--- EXHIBIT C ELIGIBILITY REPORT EXHIBIT C ELIGIBILITY REPORT EXHIBIT C ELIGIBILITY REPORT EXHIBIT C ELIGIBILITY REPORT EXHIBIT C ELIGIBILITY REPORT ---PAGE BREAK--- 1 I P a g e Jerome Area 5 Urban Renewal District Annexation Eligibility Report Prepared for The Jerome Urban Renewal Agency January 2023 Kushlan I Associates Boise, Idaho ---PAGE BREAK--- 2 I P a g e Introduction: Kushlan I Associates was retained by the Jerome Urban Renewal Agency to assist them in their consideration of amending the boundary of the Area 5 urban renewal/revenue allocation district in the City of Jerome, Idaho. The Mayor, with the confirmation of the City Council, has appointed five members to the Board of Commissioners of the Urban Renewal Agency of the City of Jerome to guide the development of urban renewal plans and oversee their implementation. The current membership of the Commission is as follows: Chair: Kathy Cone Vice Chair Shonna Fraser Commissioners Jason Peterson Bryan Craig B.J Hess Urban Renewal Administrator: Mike Williams Background: While Native Americans inhabited the area for millennia, the development of the community of Jerome, as we know it today, was initiated in 1907. This event occurred in anticipation of the development of irrigation facilities on the north side of the Snake River providing much needed water to support agricultural pursuits. Irrigation water came to the north side in 1910. As farming grew as the lead component of the area’s economy, the community grew to support those engaged in that enterprise. In 1919, the Idaho Legislature created Jerome County and designated the City of Jerome as its County Seat. Over time the community has grown and prospered, often influenced by transportation improvements impacting the region. The Oregon Short Line railroad served the community in 1912. The Twin Falls – Jerome Intercounty Bridge was opened in 1927 connecting the communities north and south of the Snake River. Now called the I.B. Perrine Bridge, it serves as the crossing for US Highway 93 which connects Mexico and Canada through Arizona, Nevada, Idaho and Montana. U.S 93 runs just east of the Jerome city limits. Interstate 84 now carries its east-west traffic on the south city limits of Jerome. Main Street occupies the right-of-way of Idaho State Highway 25 that bisects the community in its east- west alignment. All of these improvements have helped establish Jerome’s location as a strategic aspect in its economic development. In support of that continuing economic vitality and in support of the agricultural economy of the region, the community turned to the Urban Renewal Law and Economic Development Act in 1998. With the creation of the Jerome Urban Renewal Agency and the establishment of the South Lincoln Urban Renewal Area plan resources were provided that allowed significant public investment in supportive infrastructure in the southern part of the City. In 2005, the Southeast Industrial Urban Renewal Area, also referred to as “Area was established ---PAGE BREAK--- 3 I P a g e further expanding the community’s capacity to support its economic development goals. In 2012, with the objectives of the South Lincoln Area largely achieved, that first area was terminated earlier than planned, releasing significant new resources to the various taxing entities and providing an expanded tax base resulting in a reduction of the property tax rate for the citizens of the community. However, some properties did not receive the remediation experienced by others in the South Lincoln Area. With the closure of the initial urban renewal district, the community again expressed interest in using these tools and initiated consideration of the establishment of a third area located in the central and older area of the City. This area is referred to as “Area This was accomplished in 2014. At the same time as Area 3 was being considered a substantial part of Area 2, which had lagged in its development due to its location within the boundaries of the urban renewal area, but not having been included in the Revenue Allocation Area associated with Area 2, was de-annexed from Area 2 urban renewal area and reestablished as its own revenue allocation area (Area Further, industrial development outside any existing urban renewal/revenue allocation area generated interest in bringing the urban renewal toolkit to another part of the City. The geographic area that resulted from that effort is referred to as “Area The Jerome Urban Renewal Agency concluded the objectives of the Southeast Industrial Area (Area 2) were achieved and pursued the early termination of that revenue allocation area. That closure was concluded in 2022. For reference purposes we will note the adjusted base values of the existing urban renewal districts in Jerome below: Area 3 – Downtown / Main Street Area $38,093,940 Area 4 $ 316,935 Area 5 $ 5,253,824 Total Adjusted Base Values $43,664,699 Demographics: According to the US Census Bureau, the 2021 population of the City of Jerome was 12,555 and has grown by 2% since 2020. This is a lower growth rate than that experienced statewide which was 3.4% during that period. At 32.1%, Jerome’s percentage of people under 18 years of age exceeds the statewide percentage of 24.7% by 7.4%. The percentage of Jerome’s population over 65 years of age is less than the statewide percentage (16.6%) by 6.7%. When income statistics are compared to statewide numbers, we see that the population of Jerome lags the rest of Idaho in these categories as well. The median ---PAGE BREAK--- 4 I P a g e household income in Jerome is $54,535, approximately 14% below the statewide figure of $63,377. Per capita money income for the Jerome population is $24,788 as compared to the statewide number of $31,509. The percentage of the Jerome population below poverty level is 18.2% as compared to the statewide number of 11.0%. Of course, these numbers are skewed since the statewide numbers include the higher values generated in Ada County, driving the statewide numbers higher. However, the numbers do show that Jerome is not a community where high levels of wealth are commonly found. Investment Capacity: Cities across the nation actively participate in the economic vitality of their communities through investment in infrastructure. Water and sewer facilities as well as transportation and other systems are all integral elements of an economically vital community. Idaho cities have a significant challenge in responding to these demands along with the on-going need to reinvest in their general physical plant to ensure it does not deteriorate to the point of system failure. Idaho cities face stringent constitutional limitations and near total dependence upon legislative action to provide funding. An Idaho city’s access to funding sources and the ability to employ effective financing mechanisms such as general obligation bonding, severely constrain capital investment strategies. In Jerome with an economically burdened populace, coupled with a difficult approval threshold (66 2/3%) for bond issues, accessing what few tools exist in Idaho cities remains a prudent exercise of the City’s fiduciary obligations. The tools made available to Cities in Title 50, Chapters 20 and 29, the Urban Renewal Law and Economic Development Act (collectively, the “Law”) are some of the few that are available. New sources of State support are not likely to become available in the foreseeable future, thus the Jerome Urban Renewal Agency’s interest in exploring the continuation of their utilization of these tools is an appropriate public policy consideration. Steps in Consideration of an Amendment to an Urban Renewal District: The process for amending the boundary of an existing urban renewal district and revenue allocation area is the same as that used to establish a new district. The first step is to define a potential area for analysis as to whether conditions exist within it to qualify for redevelopment activities under the statute. We have called this the “Study Area”. The next step in the process is to review the conditions within the Study Area to determine whether the area is eligible for creating a district. The Law governing urban renewal sets out the following criteria, at least one of which must be found, for an area to be considered eligible for urban renewal activities. 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures and Deterioration of Site or Other Improvements [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] ---PAGE BREAK--- 5 I P a g e 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and 50-2903(8)(b)] 4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or Usefulness; Obsolete Platting [50-2018(9) and 50-2903(8)(b); 50- 2903(8)(c)] 5. Insanitary or Unsafe Conditions [50-2018(9) and 50-2903(8)(b)] 6. Diversity of Ownership [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] 7. Tax or Special Assessment Delinquency [50-2018(9) and 50-2903(8)(b)] 8. Defective or Unusual Conditions of Title [50-2018(9) and 50-2903(8)(b)] 9. Results in Economic Underdevelopment of the Area [50-2903(8)(b); 50- 2903(8)(c)] 10. Substantially Impairs or Arrests the Sound Growth of a Municipality [50- 2018(9) and 50-2903(8)(b); 50-2903(8)(c)] If the Eligibility Report finds that one or more of the conditions noted above exist within the Study Area, then the Urban Renewal Agency may accept it and forward it to the City Council for their consideration. If the City Council concurs with the determination of the Urban Renewal Agency, it may direct that an urban renewal plan be developed for the area that addresses the issues raised in the Eligibility Report. The Urban Renewal Agency, then acts to prepare the urban renewal plan for the amended district and determines whether to also recommend extending the revenue allocation area to fund improvements called for in the Plan. Once the Plan for the amended district and revenue allocation area are completed, the Urban Renewal Board forwards it to the City Council for their consideration. The City Council must refer the amended urban renewal plan to the Planning and Zoning Commission for a finding that the plan, as presented, is consistent with the City’s Comprehensive Plan. At the same time, other taxing entities levying taxes within the boundaries of the proposed annexation are provided a thirty-day opportunity to comment on the Plan to the City Council. While the taxing entities are invited to comment on the Plan, their concurrence is not required for the City Council to proceed with its formal consideration. Once the Planning and Zoning Commission makes their finding of consistency and the thirty-day comment period has passed, the City Council is permitted to hold a public hearing and formally consider the adoption of the plan amending the new urban renewal district and revenue allocation area. The City Council must also find that the taxable value the amended district, plus the base assessed value of any existing urban renewal / revenue allocation area does not exceed the statutory maximum of 10% of the citywide assessed valuation. ---PAGE BREAK--- 6 I P a g e If the City Council, in its discretion chooses to proceed, they will officially adopt the amended urban renewal plan and revenue allocation area and provide official notification of that action to the County Assessor and Idaho State Tax Commission. The Urban Renewal Agency then proceeds to implement the revised Plan. Description of the Area 5 Annexation Study Area: The Study Area subject to the current review (Area 5 Annexation) is located primarily in the south-central part of the City and immediately adjacent to the Area 5 Urban Renewal District created in 2018. The annexation parcel consists of one newly created parcel adjacent to the extreme northeast corner of Area 5. The single lot contains 7.55 acres and is currently undeveloped farmland. The annexation parcel was part of a larger property purchase by the Urban Renewal Agency of the City of Jerome with the stated purpose of developing a park as envisioned in the original Area 5 Urban Renewal Plan. The annexation parcel fronts on E 100 South Road, otherwise known as East Nez Perce Avenue. Please see the map below for a graphic representation of the Study Area for the Area 5 Annexation. Analysis of the Study Area: The Study Area consists of one tax parcel representing 7.55 acres located in the Southeast section of the City of Jerome. It is located generally east of South Lincoln Avenue and north of East Nez Perce Avenue. The entire parcel is undeveloped and Click to start drawing Street ---PAGE BREAK--- 7 I P a g e until its purchase by the Urban Renewal Agency, was being farmed. The property reflects an assessed value associated with agricultural lands in the county ($0.03 / square foot). According to the statute governing the establishment or amendment of urban renewal districts and revenue allocation areas requires that the owner of record of any property engaged in an agricultural operation in the last three years must consent, in writing, for the property to be included in the proposed or amended district / area. Given that the property is now owned by the Agency, we assume this consent will be attained. The property is devoid of any infrastructure to support its evolution to an urban use. The only infrastructure serving the area is East Nez Perce Avenue which abuts the southerly boundary of the property. It is not improved to current urban standards. A copy of the original Eligibility Report, dated May 2018, has been appended to this report and should be considered an integral part of it. That document details the eligibility criteria enumerated in state law and how the properties located within Area 5 met those criteria. In evaluating the conditions found within an area to be annexed into an existing urban renewal district and revenue allocation area, the following criteria, as enumerated in State Law, must be reviewed. The criteria are reiterated here. 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures and Deterioration of Site or Other Improvements [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and 50- 2903(8)(b)] 4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or Usefulness; Obsolete Platting [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] 5. Insanitary or Unsafe Conditions [50-2018(9) and 50-2903(8)(b)] 6. Diversity of Ownership [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] 7. Tax or Special Assessment Delinquency [50-2018(9) and 50-2903(8)(b)] 8. Defective or Unusual Conditions of Title [50-2018(9) and 50-2903(8)(b)] 9. Results in Economic Underdevelopment of the Area [50-2903(8)(b); 50- 2903(8)(c)] 10. Substantially Impairs or Arrests the Sound Growth of a Municipality [50-2018(9) and 50-2903(8)(b); 50-2903(8)(c)] ---PAGE BREAK--- 8 I P a g e Criterion The Presence of a Substantial Number of Deteriorated or Deteriorating Structures and Deterioration of Site or Other Improvements: As the entire site remains undeveloped and committed to its long-standing agricultural use, there are no structures to be evaluated, therefore, criterion #1 is not met. Criterion Age or Obsolescence: Again, no structures or infrastructure are located within the boundaries of the annexation parcel, therefore, criterion #2 is not met. Criterion Predominance of Defective or Inadequate Street Layout: The planning documents call for the area to be annexed to Area 5 to be developed as an urban park as well as providing needed additional north-south street connections. No street network exists to support that vision. The abutting East Nez Perce Avenue on the south edge of the property is not improved to current urban standards, likely unable to accommodate the increased traffic demand generated by the development envisioned and the new connections to the north-south street network, therefore, criterion #3 is met. Criterion Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or Usefulness; Obsolete Platting: The single parcel within the Study Area consists of 7.55 undivided acres. The City plans for the area call for a large urban-level developed park, however further subdivision of this parcel is not envisioned at this time, therefore, criterion #4 is not met. Criterion Insanitary or Unsafe Conditions: The plan for the area anticipates a significant number of people, both from the community and beyond, will be drawn to the site. Due to the current lack of infrastructure, no provision for required water and sewer facilities can be provided. The current limited access to the site would challenge any needed emergency response, therefore, criterion #5 is met. Criterion Diversity of Ownership: The entire site is under the single ownership of the Jerome Urban Renewal Agency, therefore, criterion #6 is not met. Criterion Tax or Special Assessment Delinquency: No tax or special assessment deficiencies are noted in County Assessor records, therefore, criterion #7 is not met. Criterion Defective or Unusual Conditions of Title: No defective or unusual conditions of title are noted, therefore, criterion #8 is not met. Criterion Results in Economic Underdevelopment of the Area: The Study Area is virtually surrounded by urban development. Commercial uses dominate the area to the west, a residential area abuts the property to the north and industrial uses are found to the south across East Nez Perce Avenue. The area to the east is rapidly evolving as a residential area. Retention of the historic agricultural use would be an anomaly in the middle of the urbanization of the broader area, therefore, criterion #9 is met. Criterion #10: Substantially Impairs or Arrests the Sound Growth of a Municipality: See Criertion#9 above. In addition, the City has recognized that despite a large portion of the City population residing south of Main Street, there are no park facilities located there. The continuing growth in the area demands this imbalance be rectified, as called for in City planning documents, therefore, criterion #10 is met. ---PAGE BREAK--- 9 I P a g e Criteria Met Not Met 1 The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site X 2 Age or Obsolescence X 3 Predominance of Defective or Inadequate Street Layout X 4 Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness X 5 Insanitary or Unsafe Conditions X 6 Diversity of Ownership X 7 Tax or Special Assessment Delinquency X 8 Defective or unusual condition of title X 9 Results in Economic Underdevelopment of the Area X 10 Substantially Impairs or Arrests the Sound Growth of a Municipality X As noted above, the 7.55 acres under consideration for annexation is undeveloped open land and as such has no structures or infrastructure to be reviewed against the criteria. However, State Law does recognize the potential for including “Open Land” within the boundaries of urban renewal districts and revenue allocation areas. Those provisions and our analysis are noted below: Analysis: Open Land Conditions: The Study Area includes open space/land. Idaho Code Section 50-2903(8)(c) states: “[a]ny area which is predominately open and which because of obsolete platting, diversity of ownership, deterioration of structures or improvements, or otherwise, results in economic underdevelopment of the area or substantially impairs or arrests the sound growth of a municipality. The provisions of section 50-2008(d), Idaho Code, shall apply to open areas.” The eligibility criteria set forth in Idaho Code Section 50-2903(8)(c) for predominantly open land areas mirror or are the same as those criteria set forth in Idaho Code Sections 50-2018(9) and 50-2903(8)(b). “Diversity of ownership” is the same, while “obsolete platting” appears to be equivalent to “faulty lot layout in relation to size, adequacy, accessibility, or usefulness.” “Deterioration of structures or improvements” is the same or similar to “a substantial number of deteriorated or deteriorating structures” and “deterioration of site or other improvements.” There is also an additional qualification that the provisions of Idaho Code Section 50-2008(d) shall apply to open areas. Idaho Code Section 50-2008 primarily addresses the urban renewal plan approval process and Idaho Code Section 50-2008(d)(4) sets forth certain conditions and findings for agency acquisition of open land as follows: the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise: Provided, that if the urban renewal area consists of an area of open land to be acquired ---PAGE BREAK--- 10 I P a g e by the urban renewal agency, such area shall not be so acquired unless if it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. In sum, there is one set of findings if the area of open land is to be acquired and developed for residential uses and a separate set of findings if the land is to be acquired and developed for nonresidential uses. Basically, open land areas may be acquired by an urban renewal agency and developed for nonresidential uses if such acquisition is necessary to solve various problems, associated with the land or the infrastructure, that have delayed the area’s development. These problems include defective or usual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, and faulty lot layout. All the stated conditions are included in one form or another in the definition of a deteriorated area and/or a deteriorating area set forth in Idaho Code Sections 50-2903(8)(b) and 50-2018(9). The conditions listed only in Section 50- 2008(d)(4)(2) (the open land section) include economic disuse, unsuitable topography, and “the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area.” The conclusion of this discussion concerning open land areas is that the area qualifies if any of the eligibility conditions set forth in Idaho Code Sections 50-2018(9) and 50- 2903(8)(b) apply. Alternatively, the area under consideration qualifies if any of the conditions listed only in Idaho Code Section 50-2008(d)(4)(2) apply. As set forth in greater detail above, the deficient water and sewer facilities in the Study Area; the changing economic uses in this area, the lack of an internal street network, and need improvements to East Nez Perce Avenue, including curb, gutter and sidewalks; and deficient fire protection, are all conditions which delay development of the Study Area. ---PAGE BREAK--- 11 I P a g e Based on the above analysis, while the Study Area does appear to be “predominantly open land,” which is not a defined term, the conditions found in the Study Area as set forth above result in the economic underdevelopment of the area and/or substantially impairs or arrests the sound growth of a municipality , and therefore, the open land condition is satisfied. Findings: Jerome Area 5 Urban Renewal District Annexation: Conditions exist within the Study Area to allow the Board of Commissioners of the Jerome Urban Renewal Agency and the Jerome City Council to determine that the area is eligible for urban renewal activities as prescribed in Law. CONCLUSION: Based upon our review of the data and the conditions that exist within the Study Area as noted above, the Jerome City Council may, at its discretion determine that the Jerome Area 5 Urban Renewal District Annexation, as proposed, is eligible for the expansion of an urban renewal district. Other Relevant Issues Agricultural Landowners concurrence: The area within the Study Area is agricultural land as recognized under state law. The statutory provisions concerning the expansion of an urban renewal district prohibit inclusion of any land used for agricultural operations within the past three years without the express written consent of the property owner. Such consent has not yet been requested. Final consideration of any urban renewal plan created through this process could not proceed without the required consents being in-hand. 10% Analysis: In addition to the findings reported above, we also sought to verify that the assessed value of the proposed Study Area is within the statutory limits. As noted above, State Law limits the percentage of assessed value that can be included in urban renewal / revenue allocation districts to 10% of the total taxable valuation of the City. According to Jerome County Assessor records, the most recent certified value for the City of Jerome is $882,432,198. The taxable value of the Study Area is as it is owned by a public entity and thus, tax-exempt having no impact on the required calculations. The Base Assessed Value of Jerome Area 3 is $38,093,940, Jerome Area 4 is $316,935, and Jerome Area 5 is $5,253,824. With the recent acquisition of the properties within the Study Area and the adjacent agricultural parcels, the Base Assessed Value of Area 5 will be reduced. The Jerome County Assessor reflects an agricultural value of $.03 per square foot for these properties. Using this number, we estimate that the Base Assessed Value of Area 5 will be reduced by approximately $11,000, bringing the estimated Adjusted Base Value to $5,242,824. The Table below shows the result compared to the statutory requirement. Statutory 10% Limitation Analysis Area Base Assessed Value Percentage Total City $882,432,198 100% • Jerome Area 3 $38,093,940 4.32% • Jerome Area 4 $316,935 0.04% ---PAGE BREAK--- 12 I P a g e • Jerome Area 5 $5,242,824 0.59% • Jerome Area 5 Annexation $0 0% Total UR Base Assessed Value Percentage $43,653,699 4.95% We also explored the effect of amending this district on the capacity of the Urban Renewal Agency to consider future districts should they choose to do so. The table below shows that approximately 5.05% of the citywide assessed value would remain uncommitted. Remaining Urban Renewal Capacity • Maximum 10% Limitation $88,243,220 10% • Jerome Area 3 $38,093,940 4.32% • Jerome Area 4 $316,935 0.04% • Jerome Area 5 $5,242,824 0.59%% • Proposed Area 5 Annexation $0 0% Total AV in Revenue Allocation Areas $43,653,699 4.95% • Available AV under limitation $44,589,521 5.05% 10% Geographic Analysis: In addition to the findings reported above, verification that the geographic area proposed to be annexed into the existing Union District is within the statutory limits is needed. State Law limits the number of acres that may be annexed into an existing district. Idaho Code Section 50-2033 states, in pertinent part: “…an urban renewal plan that includes a revenue allocation area may be extended only one time to extend the boundary of the revenue allocation so long as the total area to be added is not greater than ten percent (10%) of the existing revenue allocation area and the area to be added is contiguous to the existing revenue allocation area but such contiguity cannot be established solely by a shoestring or strip of land which comprises a railroad or public right-of-way.” The existing Area 5 is approximately 99 acres; therefore, Area 5 is permitted to be amended one time to include up to 9 acres. The Study Area represents 7.55 acres, which is within the permitted annexation limitation. A plan amendment to increase the revenue allocation area boundary as permitted in Idaho Code Section 50-2033 is not a modification pursuant to Idaho Code Section 50-2903A. Idaho Code Section 50-2903A(1)(a)(ii). ---PAGE BREAK--- Appendix Area 5 Eligibility Report, May 2018 13IPage Appendix Area 5 Eligibility Report, May 2018 13IPage 13 I P a g e Appendix Area 5 Eligibility Report, May 2018 ---PAGE BREAK--- 1 I P a g e Jerome Area 5 Urban Renewal District Eligibility Report Prepared for The Jerome Urban Renewal Agency May 2018 Kushlan I Associates Boise, Idaho ---PAGE BREAK--- 2 I P a g e Introduction: Kushlan I Associates was retained by the Jerome Urban Renewal Agency to assist them in their consideration of establishing the fifth urban renewal district in the City of Jerome, Idaho. The Mayor, with the confirmation of the City Council, has appointed five members to the Urban Renewal Agency of the City of Jerome to guide the development of urban renewal plans and oversee their implementation. The current membership of the Commission is as follows: Chair: Vacant Commissioners Gary Warr Jason Peterson Kathy Cone Vacant (appointment pending) Urban Renewal Administrator: Mike Williams Background: While Native Americans inhabited the area for millennia, the development of the community of Jerome, as we know it today was initiated in 1907. This event occurred in anticipation of the development of irrigation facilities on the north side of the Snake River providing much needed water to support agricultural pursuits. Irrigation water came to the north side in 1910. As farming grew as the lead component of the area’s economy, the community grew to support those engaged in that enterprise. In 1919, the Idaho Legislature created Jerome County and designated the City of Jerome as its County Seat. Over time the community has grown and prospered, often influenced by transportation improvements impacting the region. The Oregon Short Line railroad served the community in 1912. The Twin Falls – Jerome Intercounty Bridge was opened in 1927 connecting the communities north and south of the Snake River. Now called the I.B. Perrine Bridge it serves as the crossing for US Highway 93 which connects Mexico and Canada through Nevada, Idaho and Montana. U.S 93 runs just east of the Jerome city limits. Interstate 84 now carries its east-west traffic on the south city limits of Jerome. All of these improvements have helped establish Jerome’s location as a strategic aspect in its economic development. In support of that continuing economic vitality and in support of the agricultural economy of the region, the community turned to the Urban Renewal Law and Economic Development Act in 1998. With the creation of the Jerome Urban Renewal Agency and the establishment of the South Lincoln Urban Renewal Area plans and resources were provided that allowed significant public investment in supportive infrastructure in the southern part of the City. In 2005, the Southeast Industrial Area, also referred to as “Area was established further expanding the community’s capacity to support its economic development goals. ---PAGE BREAK--- 3 I P a g e In 2012, with the objectives of the South Lincoln Area largely achieved, that first area was closed out earlier than planned, releasing significant new resources to the various taxing entities and providing an expanded tax base resulting in a reduction of the property tax rate for the citizens of the community. However, some properties did not receive the remediation experienced by others in the South Lincoln Area. With the closure of the initial urban renewal district, the community again expressed interest in using these tools and initiated consideration of the establishment of a third area located in the central and older area of the City. This area is referred to as “Area This was accomplished in 2014. At the same time as Area 3 was being considered a substantial part of Area 2, which had lagged in its development due to its location within the boundaries of the urban renewal area, but not having been included in the Revenue Allocation Area associated with Area 2, was deannexed from Area 2 and reestablished as its own district (Area Further industrial development outside any existing urban renewal area has generated interest in bringing the urban renewal toolkit to another part of the City. The geographic area that is the subject of this Report is referred to as “Area According to the US Census Bureau, the 2016 population of the City of Jerome is 11,317 and has grown by 3.8% since 2010. This is a lower growth rate than that experienced statewide which was 7.4% during that period. At 33.9%, Jerome’s percentage of people under 18 years of age exceeds the statewide percentage of 26.0% by 7.9%. The percentage of Jerome’s population over 65 years of age (11.8%) is less than the statewide percentage (15.1%) by 3.3%. When income statistics are compared to statewide numbers, we see that the population of Jerome lags the rest of Idaho in these categories as well. The median household income in Jerome is $38,196, approximately 22.3% below the statewide figure of $49,174. Per capita money income for the Jerome population is $14,918 as compared to the statewide number of $24,280. The percentage of the Jerome population below poverty level is 21.8% as compared to the statewide number of 14.4%. Of course, these numbers are skewed due to the fact that the statewide numbers include the higher values generated in Ada County, driving the statewide numbers higher. However, the numbers do show that Jerome is not a community where high levels of wealth are commonly found. Cities across the nation actively participate in the economic vitality of their communities through investment in infrastructure. Water and sewer facilities as well as transportation and other systems are all integral elements of an economically vital community. Idaho cities have a significant challenge in responding to these demands along with the on-going need to reinvest in their general physical plant to ensure it does not deteriorate to the point of system ---PAGE BREAK--- 4 I P a g e failure. Idaho cities face stringent constitutional limitations and near total dependence upon legislative action to provide funding. An Idaho city’s access to funding sources and the ability to employ effective financing mechanisms such as general obligation bonding, severely constrain capital investment strategies. In Jerome with an economically burdened populace, coupled with a difficult approval threshold (66 2/3%) for bond issues, accessing what few tools exist in Idaho cities remains a prudent exercise of the City’s fiduciary obligations. The tools made available to cities in Title 50, Chapters 20 and 29, the Urban Renewal Law and Economic Development Act (collectively, the “Law”) are some of the few that are available. New sources of State support are not likely to become available in the foreseeable future, thus the Jerome Urban Renewal Agency’s interest in exploring the potential for establishing their fifth urban renewal district is an appropriate public policy consideration. Steps in Consideration of an Urban Renewal District: The first step in consideration of establishing an urban renewal district in Idaho is to define a potential area for analysis as to whether conditions exist within it to qualify for redevelopment activities under the statute. We have called this the “Study Area”. The next step in the process is to review the conditions within the Study Area to determine whether the area is eligible for creating a district. The Law governing urban renewal sets out the following criteria, at least one of which must be found, for an area to be considered eligible for urban renewal activities. 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site [50-2018(9); and 50-2903(8)(b)] 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and 50-2903(8)] 4. Outmoded Street Patterns [50-2008(d)(4)(2)] 5. Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements [50-2008(d)(4)(2)] 6. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness [50- 2018(9) and 50-2903(8)(b)] 7. Unsuitable Topography or Faulty Lot Layouts [50-2008(d)(4)(2)] 8. Insanitary or Unsafe Conditions [50-2018(9) and 50-2903(8)(b)] 9. Diversity of Ownership [50-2018(9) and 50-2903(8)(b)] 10. Tax or Special Assessment Delinquency [50-2018(9) and 50-2903(8)(b)] ---PAGE BREAK--- 5 I P a g e 11. Substantially Impairs or Arrests the Sound Growth of a Municipality [50-2018(9) and 50-2903(8)(b)] 12. Conditions Which Retard Development of the Area [50-2008(d)(4)(2)] 13. Results in Economic Underdevelopment of the Area [50-2903(8)(b)]; and Economic Disuse [50-2008(d)(4)(2)] If the Eligibility Report finds that one or more of the conditions noted above exist within the Study Area, then the Urban Renewal Agency may accept it and forward it to the City Council for their consideration. If the City Council concurs with the determination of the Urban Renewal Agency, it may direct that an urban renewal plan be developed for the area that addresses the issues raised in the Eligibility Report. The Urban Renewal Agency, then acts to prepare the urban renewal plan for the new district and determines whether to also recommend the establishment of a revenue allocation area to fund improvements called for in the Plan. Once the Plan for the district and revenue allocation area are completed, the Urban Renewal Board forwards it to the City Council for their consideration. The City Council must refer the urban renewal plan to the Planning and Zoning Commission for a finding that the plan, as presented, is consistent with the City’s Comprehensive Plan. At the same time, other taxing entities levying taxes within the boundaries of the proposed urban renewal district are provided a thirty-day opportunity to comment on the Plan to the City Council. While the taxing entities are invited to comment on the Plan, their concurrence is not required for the City Council to proceed with its formal consideration. Once the Planning and Zoning Commission makes their finding of consistency and the thirty-day comment period has passed, the City Council is permitted to hold a public hearing and formally consider the adoption of the plan creating the new urban renewal district and revenue allocation area. The City Council must also find that the taxable value the district to be created, plus the base assessed value of any existing urban renewal / revenue allocation area does not exceed the statutory maximum of 10% of the citywide assessed valuation. If the City Council, in its discretion chooses to proceed, they will officially adopt the urban renewal plan and revenue allocation area and provide official notification of that action to the County Assessor and Idaho State Tax Commission. The Urban Renewal Agency then proceeds to implement the Plan. Description of the Area 5 Study Area: The Study Area subject to the current review (Area 5) is located primarily in the south- central part of the city and consists mainly of parcels that had been included within the original South Lincoln Urban Renewal District but had not experienced the revitalization experienced by other parts of the South Lincoln Urban Renewal District. According to ---PAGE BREAK--- 6 I P a g e the records supplied by the Jerome County Assessor, the Study Area contains a total of 89.34 acres, excluding public rights-of-way. This Study Area encompasses 32 individual tax parcels. Of the total area, 82.45 acres are taxable with the balance (6.89 acres) being a church and associated properties. Table 1 reflects the data for each of the 32 tax parcels represented in the Study Area: Table 1 Tax Parcel Owner Acres Land Value Impr. Value Total Value RPJ1366002009A Jackson A Scott 6.4 $108,300 $0 $108,300 RPJ1366002009B Magic Valley Quality Milk Producers Inc 2.98 $67,050 $0 $67,050 RPJ00000302470 Magic Valley Quality Milk Producers Inc 3.11 $69,975 $0 $69,975 RPJ13660020100 Magic Valley Quality Milk Producers Inc $41,920 $1,784,314 $1,826,234 RPJ00000302462 Life Church Of The Magic Valley Inc 1.0 $0 $0 $0 RPJ00000302454 Life Church Of The Magic Valley Inc 5.89 $0 $0 $0 RPJ13660020110 Darigold Inc 2.62 $58,950 $0 $58,950 RPJ13660020120 Darigold Inc 1.49 $33,525 $0 $33,525 RPJ13660020130 Darigold Inc 1.49 $33,525 $0 $33,525 RPJ1366001007A Darigold Inc 0.74 $16,650 $0 $16,650 RPJ1366001008A Darigold Inc 1.29 $33,727 $0 $33,727 RPJ13660010090 Darigold Inc 2.13 $47,925 $0 $47,925 RPJ13660010100 Darigold Inc 2.13 $47,925 $0 $47,925 RPJ00000303002 Walz Anita G 5.42 $39,304 $79,800 $119,104 RPJ00000196654 Darigold Inc 17 $24,990 $0 $24,990 RPJ00000196618 Kasbergen Neil Family 1981 Trust 10.93 $16,067 $0 $16,067 RPJ00000196610 Kasbergen Neil Family 1981 Trust 6.01 $8,835 $0 $8,835 RPJ00000196623 Kasbergen Neil Family 1981 Trust 2.38 $3,499 $0 $3,499 RPJ00000196241 Fairbrother Guy 0.76 $38,000 $0 $38,000 RPJ00000196100 Miguro L L C 3.36 $150,000 $72,102 $222,102 RPJ00000196001 Cortez Celerino 1.0 $53,800 $47,090 $100,890 RPJ13701610030 P H I LLC 0.36 $40,547 $74,969 $115,516 RPJ13701610130 Dnkk LLC 1.4 $71,788 $7,370 $79,158 RPJ13701610140 Dnkk LLC 1.66 $86,295 $0 $86,295 RPJ13701610120 Dnkk LLC 2.05 $106,580 $639210 $745,790 RPJ13701610110 Liang Brian 0.36 $40,547 $143,990 $184,537 ---PAGE BREAK--- 7 I P a g e RPJ13701610090 Cjm Ltd. Principe 2.19 $113,289 $683,420 $796,709 RPJ1370170013B DL Evans Bank 1.64 $54,293 $0 $54,293 RPJ13701700190 Scarrow, Gerald 0.23 $24,489 $12,549 $30,038 RPJ13701700200 Scarrow, Gerald 0.36 $28,184 $82,393 $110,577 RPJ13701700120 Burnham, Allen 0.56 $27,950 $47,990 $75,940 RPJ13701700140 Af Properties 0.4 $41,650 $47,627 $89,277 Total 89.34 $1,503,579 $3,722,824 $5,253,824 Please see the map below for a graphic representation of the Study areas Area depicted by the red boundary lines. ---PAGE BREAK--- 8 I P a g e Analysis of the Study Area: The Study Area consists of 32 tax parcels representing 89.34 acres located in the Southeast section of the City of Jerome. It is located generally east of South Lincoln Avenue and south of Avenue H. It is a mixture of industrial and commercially zoned properties, the most of which are vacant. A significant portion of the Study Area (41.74 acres – 42.5%) remains in agricultural uses pending urban level development. These properties appear to enjoy an agricultural exemption for property taxes that will need to be considered if there is a decision to proceed with the development of an urban renewal plan for the area, as consents from these property owners will be required for their inclusion. A detailed review of the Study Area reflects a pattern of underinvestment and disinvestment over time. Within the Study Area one finds properties where recent investment has been made with either new construction or significant renovation. In these instances one finds a ratio of improvement value to land value of approximately 6:1. Conversely where one finds improvement values less than land values, the property is either vacant or the structures are generally obsolete. Table 1 above shows that a substantial percentage of the properties located within the Study Area reflects this condition. Seventeen (17) properties representing 71.65 acres are currently vacant and nine properties representing 13.22 acres have improvement values approaching or dropping below land values. The American Institute of Appraisers suggests that an economically viable, developed property would reflect a ratio of 30% land to 70% improvements. After initial improvements are made, without continuing reinvestment the improvement ratio declines and as it approaches par, a condition of disinvestment or deterioration is assumed. Additionally, six parcels within the Study Area are landlocked with no access to a public street Even if one arbitrarily set an Improvement to Land Value ratio of 2:1 as a benchmark below which one finds notable disinvestment, one finds the vast majority of properties within the Study Area below this line. Table 2 The comparison of land value to improvement value Category Number of Lots Percentage Vacant 17 53.1% Improvement Value < 2 X Land Value 7 21.87% 200% - 300% 2 6.25% 300% - 400% 1 3.13% 400% - 500% 0 0% ---PAGE BREAK--- 9 I P a g e 500% - 600% 0 0% 600% - 700% 2 6.25% 700% - 800% 0 0% 800%-900% 0 0% 900% - 1000% 0 0% Improvement Value > 1000% 1 3.13% Tax Exempt (Church) 2 6.25% As the table shows, the percentage of properties where re-investment has been made is very small. Infrastructure: A similar pattern of under-investment exists in the public infrastructure in the Study Area. While recent investment has been made on Lincoln Avenue and portions of Avenue H and I and Nez Perce South associated with prior developments, the balance of the streets throughout the Study Area reflect an improvement standard reflective of historic county roads consisting of an asphalt mat with no provision for storm drainage, pedestrian facilities or urban levels of illumination. Such facilities were not designed to accommodate current levels of commercial and industrial traffic resulting in significant deterioration of the street network. South Buchanan Avenue retains its historic county-level of improvements with no urban level facilities in place In the areas where no curbs and gutters exist, storm drainage facilities, piped systems or open ditches, are not in place to handle discharges from storms or from melting snow. This allows ponding of water creating traffic hazards as well as deterioration of the roadbed itself. This condition is predominant throughout the Study Area. A section of the community walking / biking path has been installed on the north side of 100th South. Water: Municipal water service extends throughout the Study Area and fire hydrants are in place to serve the current demand. However as much of the area is undeveloped vacant land that is zoned for significantly more dense urban uses represented by their commercial and industrial zoning designations, extensions will be required to serve the large parcels when development occurs. Depending upon specific uses, fire flows may have to be upgraded to ensure adequate fire protection is available in a more dense development environment. Sewer: As with the water system, sewer service will need to be enhanced throughout the area to serve development envisioned in the City’s Comprehensive Plan and zoning documents. Of particular concern is the current limitation in capacity of the sewer lift stations that will be responsible for handling flows from this part of the City. Current plans cannot be accommodated until the lift stations are modified for greater flows or are eliminated allowing for gravity flow to the wastewater treatment facility in the northwest part of the City. Street lighting is generally present in parts the Study Area. However the pattern of illumination appears inconsistent. Areas of the City, experiencing more recent development enjoy a significantly higher standard of illumination than found through ---PAGE BREAK--- 10 I P a g e most of the Study Area. The exception appears to be a fairly high level of illumination along those sections South Lincoln Avenue where more recent improvements have been made. Required Findings Regarding Eligibility for Area 5: In order to make a finding that the Study Area is, in fact, eligible for being considered for the establishment of an urban renewal district, one must compare the conditions found in the area with the statutory criteria noted above. For the convenience of the reader those criteria are repeated here: 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site [50-2018(9) and 50-2903(8)(b)] 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and 50-2903(8)] 4. Outmoded Street Patterns [50-2008(d)(4)(2)] 5. Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements [50-2008(d)(4)(2)] 6. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness [50- 2018(9) and 50-2903(8)(b)] 7. Unsuitable Topography or Faulty Lot Layouts [50-2008(d)(4)(2)] 8. Insanitary or Unsafe Conditions [50-2018(9) and 50-2903(8)(b)] 9. Diversity of Ownership [50-2018(9) 50-2903(8)(b)] 10. Tax or Special Assessment Delinquency [50-2018(9) and 50-2903(8)(b)] 11. Substantially Impairs or Arrests the Sound Growth of a Municipality [50-2018(9) and 50-2903(8)(b) 12. Conditions Which Retard Development of the Area [50-2008(d)(4)(2)] 13. Results in Economic Underdevelopment of the Area [50-2903(8)(b)]; and Economic Disuse [50-2008(d)(4)(2)] Criterion The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site: As noted above 9 of the properties (28.12%) reflect land to improvement values suggesting that deteriorated or deteriorating structures exist. A site visit confirms the data. Therefore, Criterion #1 is met. Criterion Age or Obsolescence: Again, as in Criterion #1 we find substantial presence of ageing and obsolete structures. While some may retain viability for current ---PAGE BREAK--- 11 I P a g e uses, they will prove obsolete as the area develops in accordance with City planning documents. Therefore, Criterion #2 is met. Criterion Predominance of Defective or Inadequate Street Layout. While many of the parcels can be served by the existing street network, the presence of several large acreages suggest the current network will prove inadequate to support future development. In addition, the current lack of urban-level improvements will prove detrimental to supporting the heavy uses envisioned. Therefore Criterion #3 is met. Criterion Outmoded Street Patterns. See analysis under Criterion Criterion #4 is met. Criterion Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements. While South Lincoln Avenue has been improved to urban standards, the intersecting streets are inadequate to meet current and anticipated demands. Avenue H, Avenue I and Nez Perce Avenue all serve areas of the City east of the Study Area. Traffic from those areas already tax the minimal level of improvements found in these streets. As the Study Area and areas east grow, the ability for these substandard facilities to provide adequate urban levels of serves will be further eroded. Therefore, Criterion # 5 is met. Criterion Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness. Six of the parcels within the Study Area are larger than 5 acres and two of those exceed 10 acres in size. It is likely that future development consistent with the City’s Comprehensive Plan will require subdivision and the extension of public access to the complete parcels. Also, as noted above, there are six parcels that currently have no access to a public street, thus severely limiting their utility in an urban setting. Therefore, Criterion #6 is met. Criterion Unsuitable Topography or Faulty Lot Layouts. While no unusual topographical features exist within the Study Area, the lot layouts as discussed in Criterion #6 apply. Therefore, Criterion #7 is met. Criterion Insanitary or Unsafe Conditions. The substandard condition of the streets, the lack of storm drainage facilities, the incomplete street lighting system and the lack of adequate pedestrian facilities on all but South Lincoln Avenue point to current unsafe conditions that will be exacerbated as development occurs consistent with the City’s Comprehensive Plan. The water system will need to be expanded into the large parcels to provide adequate fire protection. Sewer system upgrades will be required to fully serve the anticipated development. Therefore, Criterion #8 is met. Criterion Diversity of Ownership. The 32 parcels examined in this study are under the ownership of 17 entities. Such diversity of ownership creates challenges for creating and executing a common vision for the area. Therefore, Criterion #9 is met. Criterion #10: Tax or Special Assessment Delinquency: The records of the Jerome County Assessor do not reflect any tax or special assessment delinquency. Therefore, Criterion #10 is not met. Criterion #11: Substantially Impairs or Arrests the Sound Growth of a Municipality. The Study Area exists within the corporate limits of the City of Jerome and abuts dense ---PAGE BREAK--- 12 I P a g e urban development on the north, west and south sides. Significant industrial development is occurring to the east. The lack of adequate infrastructure within the Study Area inhibits the development envisioned in the City’s Comprehensive Plan to the east. Therefore Criterion #11 is met. Criterion #12: Conditions Which Retard Development of the Area. Large and landlocked parcels, a diverse ownership pattern and inadequate infrastructure are all factors that inhibit the development of properties within the Study Area as envisioned in City planning documents. Therefore, Criterion #12 is met. Criterion #13: Results in Economic Underdevelopment of the Area. The South Lincoln area in Jerome has seen significant investment in recent years. However, the Study Area lies adjacent to the area and in certain cases had been included in a prior urban renewal area, yet the properties remain underutilized and in some cases are deteriorating. Criterion, #13 is met. Findings: Jerome Area 5 Urban Renewal District: Conditions exist within the district to allow the Board of Commissioners of the Jerome Urban Renewal Agency and the Jerome City Council to determine that the area is eligible for urban renewal activities as prescribed in Law. Criteria Met Not Met 1 The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site X 2 Age or Obsolescence X 3 Predominance of Defective or Inadequate Street Layout X 4 Outmoded Street Patterns X 5 Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements X 6 Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness X 7 Unsuitable Topography or Faulty Lot Layouts X 8 Insanitary or Unsafe Conditions X 9 Diversity of Ownership X 10 Tax or Special Assessment Delinquency X 11 Defective or unusual condition of title X 12 Substantially Impairs or Arrests the Sound Growth of a Municipality X 13 Results in Economic Underdevelopment of the Area X Analysis: Open Land Conditions In addition to the eligibility conditions identified above, the geographic area under review is also required to satisfy the “open land” conditions. Idaho Code Section 50- 2903(8)(c) states: “[a]ny area which is predominately open and which because of obsolete platting, diversity of ownership, deterioration of structures or improvements, or otherwise, results in economic underdevelopment of the area or substantially impairs or ---PAGE BREAK--- 13 I P a g e arrests the sound growth of a municipality. The provisions of section 50-2008(d), Idaho Code, shall apply to open areas.” Many of the eligibility criteria set forth in Idaho Code Section 50-2903(8)(c) for predominantly open land areas mirror or are the same as those criteria set forth in Idaho Code Sections 50-2018(9) and 50-2903(8)(b). “Diversity of ownership” is the same, while “obsolete platting” appears to be equivalent to “faulty lot layout in relation to size, adequacy, accessibility, or usefulness.” “Deterioration of structures or improvements” is the same or similar to “a substantial number of deteriorated or deteriorating structures” and “deterioration of site or other improvements.” There is also an additional qualification that the provisions of Idaho Code Section 50-2008(d) shall apply to open areas. Idaho Code Section 50-2008(d)(4) primarily addresses the urban renewal plan approval process and sets forth certain conditions and findings for agency acquisition of open land as follows: the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise: Provided, that if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency, such area shall not be so acquired unless if it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area. In sum, there is one set of findings if the area of open land is to be acquired and developed for residential uses and a separate set of findings if the land is to be acquired and developed for nonresidential uses. Basically, open land areas may be acquired by an urban renewal agency and developed for nonresidential uses if such acquisition is necessary to solve various problems, associated with the land or the infrastructure, that have delayed the area’s development. These problems include defective or usual conditions of title, diversity of ownership, tax ---PAGE BREAK--- 14 I P a g e delinquency, improper subdivisions, outmoded street patterns, deterioration of site, and faulty lot layout. All of the stated conditions are included in one form or another in the definition of deteriorated area set forth in Idaho Code Sections 50-2903(8)(b) and 50- 2018(9). The conditions listed only in Section 50-2008(d)(4)(2) (the open land section) include economic disuse, unsuitable topography, and “the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area.” The conclusion of this discussion concerning open land areas is that the area qualifies if any of the eligibility conditions set forth in Idaho Code Sections 50-2018(9) and 50- 2903(8)(b) apply. Alternatively, the area under consideration qualifies if any of the conditions listed only in Idaho Code Section 50-2008(d)(4)(2) apply. The parcel size, the lack of water and sewer facilities; a nonexistent access and internal street system; an inadequate storm drain system; and lack of fire protection, are all conditions which delay development of the Study Area. Based on the above analysis, diversity of ownership, obsolete platting/faulty lot layout and economic underdevelopment are conditions found in the Study Area, and therefore, the open land condition is satisfied. CONCLUSION: Based upon our review of the data and the conditions that exist within the Study Area as noted above, the Jerome City Council may, at its discretion determine that the Jerome Area 5 Urban Renewal District, as proposed, is eligible for the establishment of an urban renewal district. Other Relevant Issues Agricultural Land Owners concurrence: A substantial part of the area within the Study Area maintains an agricultural land property tax exemption as authorized under state law. The statutory provisions concerning the creation of an urban renewal district prohibit inclusion of any land used for agricultural purposes without the express written consent of the property owner. Such consent has not yet been requested. Final consideration of any urban renewal plan created through this process could not proceed without the required consents being in-hand. 10% Analysis: In addition to the findings reported above, we also sought to verify that the assessed value of the proposed Study Area is within the statutory limits. As noted above, State Law limits the percentage of assessed value that can be included in urban renewal / revenue allocation districts to 10% of the total valuation of the City. According to Jerome County Assessor records, the most recent certified value for the City of Jerome is $472,283,338. The taxable value of the Study Area is $5,253,824 representing 6.63% of the total City assessed value. The Base Assessed Value of the Southeast Industrial Urban Renewal Area is $1,221,754, Jerome Area 3 is $38,093,940, and Jerome Area 4 is $316,935 The Table below shows the result compared to the statutory requirement. ---PAGE BREAK--- 15 I P a g e Statutory 10% Limitation Analysis Area Base Assessed Value Percentage Total City $472,283,338 100% • Southeast Industrial $1,221,754 0.26% • Jerome Area 3 $38,093,940 8.07% • Jerome Area 4 $316,935 0.07% • Proposed Jerome Area 5 $5,253,824 1.11% Total UR Base Assessed Value Percentage $44,886,453 9.50% We also explored the effect of creating this district on the capacity of the Urban Renewal Agency to consider future districts should they choose to do so. The table below shows that even if a new district similar to Area 5 were to be established, approximately of the citywide assessed value would remain uncommitted. Remaining Urban Renewal Capacity • Maximum 10% Limitation $47,228,334 10% • Southeast Industrial $1,221,754 0.26% • Jerome Area 3 $38,093,940 8.07% • Jerome Area 4 $316,935 0.07% • Proposed Jerome Area 5 $5,253,824 1.11%% • Total AV in Revenue Allocation Areas $44,886,453 9.50% • Available AV under limitation $2,341,881 0.5% Impact of losing Agricultural Land Exemption: It should be noted that five of the parcels carry an agricultural property tax exemption, thereby significantly reducing the assessed values reflected in the numbers above. At such time that such properties change use, the agricultural exemption is withdrawn and the resultant assessed value accrues to the Adjusted Base Value not the Incremental Value. We needed to test the impact of this circumstance to ensure the 10% limitation reviewed above remains met. In doing this analysis I adjusted the “per acre” value of the 5 properties to reflect the non-exempt values of adjacent properties. That analysis is reflected below: Parcel Number Area Land Value AV per acre Adjacent Non- Exempt AV Revised Non-exempt AV RPJ00000303002 5.42 $39,304 $7,521.60 $22,500 $121,950 RPJ00000196654 17.0 $24,990 $1,470.00 $22,500 $382,500 RPJ00000196618 10.93 $16,067 $1,469.99 $22,500 $245,925 RPJ00000196610 6.01 $8,835 $1,470.05 $22,500 $135,225 RPJ00000196623 2.38 $3,499 $1,470.17 $22,500 $53,550 Totals $92,695 $939,150 Difference $846,455 Amount Below 10% Cap w/ Area 5 with Ag Exemptions $2,341,881 ---PAGE BREAK--- 4844-1555-2358, v. 3 16IPage 16 I P a g e (0.50%) Amount Below 10% Cap w/ Area 5 without Ag Exemptions $1,495,426 (0.32%) 4844-1555-2358, v. 3