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ORDINANCE NO. 2004 - 28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MOSCOW, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, APPROVING THE FIRST AMENDED AND RESTATED CITY OF MOSCOW, IDAHO RESEARCH AND TECHNOLOGY URBAN RENEWAL/COMPETITIVELY DISADVANTAGED BORDER COMMUNITY AREA PLAN 2004, WHICH PLAN INCLUDES REVENUE ALLOCATION FINANCING PROVISIONS; AUTHORIZING THE CITY CLERK TO TRANSMIT A COPY OF THIS ORDINANCE AND OTHER REQUIRED INFORMATION TO COUNTY AND STATE OFFICIALS; APPROVING THE SUMMARY OF THE ORDINANCE; PROVIDING FOR A WAIVER OF THE READING RULES; PROVIDING AN EFFECTIVE DATE; AND PROVIDING THAT THIS ORDINANCE BE DEEMED SEVERABLE. WHEREAS, on June 19, 1995, the Moscow City Council and Mayor approved Resolution No. 95-08, finding that the City is a competitively disadvantaged border community, creating and empowering the Moscow Urban Renewal Agency, describing the Moscow Urban Renewal Agency, making Findings of Fact and Declarations of Necessity regarding the need for the urban renewal agency, providing for the resolution to be effective upon its passage and approval; and WHEREAS, since June 19, 1995, the City of Moscow conducted a continuing analysis of the Idaho Urban Renewal Law, Title 50, Chapter 20, Idaho Code (the "Law"), and the Local Economic Development Act, Title 50, Chapter 29, Idaho Code (the "Act"), which provides for the designation of a competitively disadvantaged border community; and WHEREAS, based upon such analysis, the Council deemed it necessary to amend and restate the provisions of Resolution No. 95-08 and therefore adopted Resolution 95-13 on November 6, 1995; and WHEREAS, by virtue of the Law, the Idaho State Legislature has created in the City of Moscow an independent public body, corporate and politic, known as the "Urban Renewal Agency of the City of Moscowă'; and WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not be planned or initiated unless the local governing body has, pursuant to law, determined such area to be a deteriorated area or a deteriorating area, or combination thereof, and designated such area as appropriate for an urban renewal project; and WHEREAS, Idaho Code Section 50-2906 also requires that, in order to adopt an urban renewal plan containing a revenue allocation financing provision, the local governing body must make a finding or determination that the area included in such plan is a deteriorated area or deteriorating area; and WHEREAS, on November 6, 1995, the City of Moscow, through its Mayor and Council, passed Resolution No. 95-13, finding that there existed one or more deteriorated or deteriorating areas as defined by relevant portions of the Idaho Code Sections 50-2918(i) and 50-2903(7)(b) based upon an eligibility report received from Harlan W. Mann, consultant, dated October 30, 1995; and WHEREAS, under Section 50-2903(8)(e) a deteriorated area includes 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 the Act; and WHEREAS, the City of Moscow received a report from Business Planning Consultants, Inc., which report makes certain findings concerning the competitive disadvantage of the City of Moscow; ORDINANCE 2004-28 THE FIRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE10F9 ---PAGE BREAK--- WHEREAS, based upon the reports of Harlan W. Mann and Business Planning Consultants the Council adopted Resolution No. 95-13 which made several findings; including: I. There are one or more areas within the City of Moscow which are "deteriorating" or "deteriorated areas" as defined by Idaho Code Sections 50-2018 and 50-2903. 2. The rehabilitation, conservation, and redevelopment, or a combination thereof, of such area or areas are necessary in the interest of the pubic health, safety, and welfare of the residents of the City of Moscow. 3. There is a need for an urban renewal agency to function in the City of Moscow. 4. The Council hereby sustains and adopts the following findings and declarations of necessity: a. The City of Moscow's competitive disadvantage as a border community hinders its ability to engender a diversified economy through promotion of locally originated businesses based on emerging technologies. b. This competitive disadvantage acts to impair and limit the City of Moscow's ability to nurture and manage its potential for growth. c. Diversification of the local economy and the orderly management of growth are essential undertakings in the promotion of the public welfare. d. Through its proved ability to generate viable high-technology businesses, the North Central Idaho Business Technology Incubator ("NCIBTf'), located within the City of Moscow, constitutes a valuable tool for orderly economic diversification and growth. e. Retaining locally originated businesses such as those generated by the NCIBTI is conducive to the public welfare of the City of Moscow; competing with other municipalities for business originated elsewhere generally is not. f. By virtue of its competitive disadvantage, the City of Moscow is compromised in its ability to retain locally originated, business technology-based companies, such as those businesses which must relocate from the NCIBTI, by the nonexistence of locally available developed properties. g. The City of Moscow requires a means by which it may promote development of properties suitable for the permanent location of locally originated companies. This need is made more acute by Moscow's proximity to the Idaho/Washington border, which facilitates competitive offers to those companies from other locations outside Idaho, in particular the State of Washington. Revenue allocation financing is the only viable tool available to the City for the promotion of such development. 5. City of Moscow staff, working with the Urban Renewal Agency, is hereby directed to present a recommendation as to what area or areas of the City of Moscow (including the designation of the entire City) should be identified as a "competitively disadvantaged border community," what criteria should be used to designate an area for use of revenue allocation financing within a competitively disadvantaged border community, whether those areas should be of a specific size or zoning classification, and other criteria the Urban Renewal Agency deems necessary. 6. Such recommendation shall be presented to the Mayor and Council for consideration of adoption of an ordinance in compliance with the Act. WHEREAS, the Mayor has duly appointed commissioners to constitute the Moscow Urban Renewal Agency Board, which appointments were duly confirmed by the Council; and ORDINANCE 2004-28 THE FIRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 2 OF9 ---PAGE BREAK--- WHEREAS, the Legislature of the State of Idaho has enacted the local Economic Development Act, Title 50, Chapter 29 Idaho Code, referred to herein as the "Act", authorizing certain urban renewal agencies (including the Agency) to adopt revenue allocation financing provisions as part of their urban renewal plans; and WHEREAS, in order to implement the provisions of the Act and the Law, the Agency may prepare a plan or any person, public or private, may submit such plan to the Agency; and WHEREAS, the City on July l, 1996, after notice duly published, conducted a public hearing on the Research Park Plan; and WHEREAS, following said public hearing, the City adopted Ordinance No. 96-12 on July 1, 1996, approving the Research Park Plan; and WHEREAS, Agency staff and consultants have previously considered changes to the Research Park Plan to allow for the extension and inclusion of another phase of the Project; and WHEREAS, since late 2003, the Agency Board had authorized staff and consultants to consider designating adjacent property to the Research Park Plan area as appropriate for urban renewal activities; and WHEREAS, The First Amended And Restated City Of Moscow, Idaho Research And Technology Urban Renewal/Competitively Disadvantaged Border Community Area Plan 2004 (hereinafter the "First Amended and Restated Research Park Plan") has been drafted; and WHEREAS, the First Amended and Restated Research Park Plan also contains provisions of revenue allocation financing as allowed by the Act; and WHEREAS, on March 12, 2004, the Agency Board conducted a meeting concerning the First Amended and Restated Research Park Plan, at which time the Board passed Resolution No. 2004-0 I proposing the First Amended and Restated Research Park Plan for the Moscow Research and Technology Park; and WHEREAS, at a meeting held May 29, 2004, the Moscow Planning and Zoning Commission considered the First Amended and Restated Research Park Plan and found that the First Amended and Restated Research Park Plan is in all respects in conformity with the City of Moscow Comprehensive Plan; and WHEREAS, notice of the puhlic hearing of the Plan was caused to be published by the Moscow City Clerk in the Moscow/Pullman Daily News on May 7, 2004 and May 29, 2004, a copy of said notice being attached hereto as Exhibit I; and WHEREAS, as required by Idaho Code Sections 50-2905 and 50-2906, the First Amended and Restated Research Park Plan contains the following information which was made available to the general public and all taxing districts at least thirty (30) days prior to the June 7, 2004, regular meeting of the Council: the kind, number, and location of all proposed public works or improvements within the revenue allocation area; an economic feasibility study; a detailed list of estimated project costs; a fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property in the revenue allocation area; and a description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; and ORDINANCE 2004-28 THE FIRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 30F9 ---PAGE BREAK--- WHEREAS, the First Amended and Restated Research Park Plan authorizes certain projects to be financed by revenue allocation bonds or other obligations and proceeds from revenue allocation; and WHEREAS, as of March 19, 2004, the First Amended and Restated Research Park Plan was submitted to the effected taxing entities, available to the public, and under consideration by the City Council; and WHEREAS, appropriate notice of the First Amended and Restated Research Park Plan and revenue allocation provision contained therein has been given to the taxing districts and to the public as required by Idaho Code Section 50-2906; and WHEREAS, the Council at its regular meeting on June 7, 2004, held a public hearing in accordance with Idaho Law and did consider the First Amended and Restated Research Park Plan as proposed and made certain findings; and WHEREAS, it is necessary and in the best interest of the citizens of the City of Moscow, Idaho, to adopt the First Amended and Restated Research Park Plan, including revenue allocation financing provisions, because revenue allocation will help finance projects to be completed in accordance with the First Amended and Restated Research Park Plan (as now or hereafter amended), in order to address the following needs: I) encourage private development in the urban renewal area and competitively disadvantaged border community areas; 2) prevent and arrest decay of Moscow due to the inability of existing financing methods to provide needed public improvements; 3) encourage taxing districts to cooperate in the allocation of future tax revenues arising in the urban renewal area and competitively disadvantaged border community areas in order to facilitate the long-term growth of their common tax base; 4) encourage private investment within the City of Moscow; and 5) further the public purposes of the Agency; and WHEREAS, 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 the Law, 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 modem traffic requirements, or any combination of such factors or other conditions which retard development of the area; and WHEREAS, under the Act and the Law certain additional findings must be made concerning predominantly open land to be included within the urban renewal area or revenue allocation area, including obsolete platting, diversity of ownership, deterioration of structures or improvements, or other conditions which result in the economic underdevelopment of the area or substantially impair or arrest the sound growth of the area; improper subdivisions; outmoded street patterns; deterioration of site; economic disuse; unsuitable topography, faulty lot layouts; the need for the correlation of the area with the other ORDINANCE 2004-28 THE FiRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE4 OF 9 ---PAGE BREAK--- areas of the city by streets and modem traffic requirements; the shortage of housing; and the need for housing accommodations; and WHEREAS, a deteriorated area as defined by Section 50-2903(8)(e) includes 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 the Act; and WHEREAS, after consideration of the Research Park Plan and the reports submitted by Business Planning Consultants, the Council deems it to be in the best interest of the citizens of the City of Moscow to declare the City of Moscow as a competitively disadvantaged border community and to use revenue allocation financing within a particular geographic area of the City for the purposes set forth in the Act; and WHEREAS, the overall First Amended and Restated Research Park Plan base assessment rolls for the various revenue allocation area carmot exceed ten percent (I of the Base Assessment Value of the City of Moscow, Idaho; NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF MOSCOW, IDAHO AS FOLLOWS: SECTION 1: The above statements are true and correct. SECTION 2: It is hereby found and determined that: a. There exists a deteriorating area or areas within the City of Moscow, including a competitively disadvantaged area or areas as defmed by the Act. b. The Project Area as defined in the First Amended and Restated Research Park Plan includes 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 the Act; c. The redevelopment of the Research Park area pursuant to the First Amended and Restated Research Park Plan is necessary in the interest of public health, safety, and welfare of the residents of the City of Moscow. d. The First Amended and Restated Research Park Plan conforms to the Comprehensive Plan of the City of Moscow. e. The base assessment roll within the Revenue Allocation Area does not exceed ten percent (10%) of the 1996 assessed value of property within the City of Moscow. f. The First Amended and Restated Research Park Plan affords maximum opportunity consistent with the sound needs of the City as a whole for the rehabilitation and redevelopment of the Research Park area by private enterprises. g. Because of the nature of the First Amended and Restated Research Park Plan Area, there should be no activity which results in the involuntary displacement of families residing with the area. h. The area contained within the corporate limits of the City of Moscow exceeds forty (40) acres, and is within twenty-five (25) miles of the state border. 1. There continues to be a need for the Agency to function in the City of Moscow, Idaho. J. The First Amended and Restated Research Park Plan gives due consideration to the provision of adequate park and recreation areas and facilities that may be desirable for neighborhood improvement (recognizing the primary commercial component of the First Amended and Restated Research Park Plan, the need for overall public improvements, ORDINANCE 2004-28 THE FIRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 5 OF 9 ---PAGE BREAK--- the proposed public open space), and shows consideration for the health, safety, and welfare of any residents or businesses in the general vicinity of the urban renewal area covered by the First Amended and Restated Research Park Plan. SECTION 3: The Agency does not intend to acquire any open land on any widespread basis, and the Project Area is planned to be redeveloped in a manner that will include nonresidential uses. Provided, however, the Council does find, if portions of the Project Area and Revenue Allocation Area are deemed "open land", the criteria set forth in the Act and the Law, as amended, have been met, and that portion of the Project Area which is identified for nonresidential uses is necessary and appropriate to facilitate the proper growth and development standards in accordance with the objectives of the Comprehensive Plan to overcome economic disuse, the need for improved traffic patterns, and the need for improved infrastructure and facilities in the area. SECTION 4: The First Amended and Restated Research Park Plan, a copy of which is attached hereto and marked as Exhibit 2 and made a part hereof by attachment, be and the same hereby is approved. SECTION 5: In accordance with Idaho Code Sections 50-2027 and 50-2911, no direct or collateral action attacking the Plan may be brought prior to the effective date of this Ordinance or after elapse of thirty (30) days from and after the effective date of the Ordinance adopting the First Amended and Restated Research Park Plan. SECTION 6: Upon the effective date of this Ordinance, the City Clerk is authorized and directed to transmit to the county auditor and tax assessor of Latah County and to the appropriate officials of the North Latah Highway District, School District No. 281, Latah County, Moscow Cemetery District, Latah County Free Library District, and the Idaho State Tax Commission a copy of this Ordinance, a copy of the legal description of the boundaries of the Revenue Allocation Area, and a map or plan indicating the boundaries of the Revenue Allocation Area. SECTION 7: The Council hereby finds and declares that the Revenue Allocation Area as defined in the First Amended and Restated Research Park Plan includes that portion of the Project Area the equalized assessed valuation of which the Council hereby determines in and as part of the Plan is likely to increase as a result of the initiation and completion of urban renewal projects pursuant to the First Amended and Restated Research Park Plan. SECTION 8: The Council hereby approves and adopts the following statement of policy relating to the appointment of Council members as members of the Agency's Board of Commissioners: So long as any Agency bonds are outstanding, the Council will not exercise its powers to appoint a sitting Council member or members to the Urban Renewal Board. After any Agency bonds are retired, if any Council members are appointed to the Board, they are not acting in an ex officio capacity but rather as private citizens who, although they are members of the Council, are exercising their independent judgment as private citizens when they sit on the Board. Except for the powers to appoint and terminate Board members and to adopt the Amended Urban Renewal Plan, the Council recognizes that it has no power to control the powers or operations of the Agency. SECTION 9: So long as any Agency bonds are outstanding, the Council will not exercise its power under Idaho Code Section 50-2006 to designate itself as the Agency Board. ORDINANCE 2004-28 THE fiRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 6 OF 9 ---PAGE BREAK--- SECTION lO: A. After consideration of the testimony, consultant's report, and other information available to it, the Council hereby sustains and makes a finding that the City of Moscow is a competitively disadvantaged area when compared with property located across the state line in the State of Washington, Whitman County, such finding based on, but not limited to, the following particulars: I. Higher property taxes than those of bordering areas in Washington State affect both residential and business development in Moscow. 2. The corporate income tax method of taxation causes overall business taxes to be greater than in bordering areas in Washington. 3. Personal income taxes crate a burden on all individuals, whether business owners or employees, which is not borne by people in Washington State. This adversely affects location decision when Pullman, Washington and Moscow, Idaho are compared. 4. Moscow has a disadvantage regarding the potential for development of a Port District to finance economic development. Also, the existence of the Whitman County Port District causes a disadvantage in Moscow's ability to attract and develop an industrial economic base. 5. Companies which distribute products outside this area would find particularly strong incentives to be located in Washington rather than Idaho because the business and occupation tax is not applicable to out-of-state sales. 6. Overall taxation of individual home owners in Idaho is greater than in Washington. When state income tax, annual sales tax payments, and property taxes are added for a hypothetical homeowner, Idaho state taxes are significantly higher. The Council hereby fmds that the types of competitive disadvantage in the City of Moscow include, but are not limited to, the following: I. Higher property taxes affect both residential and business development in Moscow. 2. There is lack of infrastructure in Moscow, which means water and sewer lines and roads are currently just being built, when the infrastructure in neighboring Washington State was built previously, at a time when infrastructure costs were less and federal and state grant funds were more readily available. 3. The application of sales tax on food may discourage certain types of development. 4. Personal income taxes applied to individuals make Idaho a less desirous location for some types of business, particularly businesses that involve income flowing directly to individuals. The Council lists the following types of business activities which are competitively disadvantageous in Latah County, particularly the City of Moscow, as compared to neighboring Washington State: I. Manufacturing or retail facilities are in need of significant infrastructure and support, including roads, water and sewer lines, among them incubator businesses developed within the NCIBTI. 2. Retail facilities of some types are at a disadvantage as a result of the sales tax on food in Idaho. ORDINANCE 2004-28 TH E FiRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 7 OF 9 ---PAGE BREAK--- 3. Wholesale trade companies are disadvantaged. B. The Council hereby declares that it is in the best interest of the citizens of the City to declare all property located within the boundaries of the City as competitively disadvantaged under the definitions provided in Idaho Code Section 50-2903, as it now exists or may later be modified. The Council finds that such designation will help to remove some of the negative effects of the competitive disadvantage that currently exists between the City of Moscow and Whitman County, Washington. The removal of some of the impact of the competitive disadvantage may lead to increased development, consistent with the City's comprehensive plan, which will lead to economic benefits for the community, including, but not limited to, the creation of jobs, the orderly development of the City, and the development of additional tax revenues which can be used by the City and other taxing districts to provide the necessary services to the residents of the City and surrounding area. C. Urban renewal projects in the City of Moscow may assist in neutralizing to some extent the disadvantaged of being located close to the Washington state border. Some of the types of projects which can help to overcome these disadvantages include: 1. Projects which can positively impact the community by reducing overall property tax burdens of Moscow residents. 2. Projects which reduce property tax payments for existing commercial and industrial property. 3. Projects which provide incentives to manufacturers to reduce the personal and corporate income tax and industrial insurance tax burdens. 4. Projects which can provide an infrastructure base for the development of industrial businesses. 5. Projects which overcome the disadvantages for wholesale distribution and businesses. 6. projects which reduce the combination of a state income tax and proportionately higher property taxes for individual homeowners. D. The Council hereby sustains previous findings which designates the entire area of the City of Moscow as a competitively disadvantaged area under the definition of Idaho Code Section 50-2903. E. Pursuant to the First Amended and Restated Research Park Plan, revenue allocation financing is authorized and will be used for the area described as the Moscow Research and Technology Park. SECTION 11: Pursuant to the affirmative vote of one-half ( 1/2) plus one ( 1) of the members of the full Council, the rule requiring two separate readings by title and one reading in full be and the same hereby is dispensed with and accordingly this Ordinance shall be in full force and effect immediately upon its passage, approval, and publication and shall be retroactive to January 1, 1996, to the extent permitted by the Act. SECTION 12: The provision of this Ordinance are severable and if any provision of this Ordinance or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of remaining portions of this Ordinance. ORDINANCE 2004-28 TH E FIRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE 8 OF 9 ---PAGE BREAK--- SECTION 13: The Summary of this Ordinance, a copy of which is attached hereto as Exhibit 3, is hereby approved. PASSED by the Council and APPROVED by the Mayor this 71h day of June, 2004. ATTEST: pm JUlY 12 1887 ORDINANCE 2004-28 THE FiRST AMENDED AND RESTATED RESEARCH PARK PLAN PAGE9 0F 9