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Resolution - 2006 - 50 - Creating Eagle Urban Renewal Agency/Determining Deteriorated Area - 10/10/2006 RESOLUTION NO. 06-50 CITY COUNCIL RESOLUTION IMPLEMENTING THE STATUTORY CRITERIA CREATING AND EMPOWERING THE EAGLE URBAN RENEWAL AGENCY, MAKING CERTAIN FINDINGS OF FACT; DETERMINING A PORTION OF THE CITY OF EAGLE TO BE A DETERIORATING OR DETERIORATED AREA; AUTHORIZING THE MAYOR TO APPOINT AGENCY BOARD MEMBERS AND PROVIDING AN EFFECTIVE DATE. A RESOLUTION IMPLEMENTING THE STATUTORY CRITERIA, CREATING AND EMPOWERING THE EAGLE URBAN RENEWAL AGENCY, MAKING CERTAIN FINDINGS OF FACT, DETERMINING A PORTION OF THE CITY OF EAGLE TO BE A DETERIORATING OR DETERIORATED AREA AS DEFINED BY IDAHO CODE, SECTIONS 50-2018(9) AND 50-2903(8), AND AUTHORIZING THE MAYOR TO APPOINT AGENCY BOARD MEMBERS. WHEREAS, the City of Eagle ("City") desires to implement and empower an Urban Renewal Agency pursuant the Idaho Urban Renewal Law of 1965, as amended, Chapter 20, Title 50, Idaho Code (hereinafter the "Law"); WHEREAS, it is anticipated that the Urban Renewal Agency intends to prepare an Urban Renewal Plan containing a revenue allocation financing provision, pursuant to the Local Economic Development Act, Chapter 29, Title 50, as amended (hereinafter the "Act"); WHEREAS, the City recognizes that there are certain factual prerequisites to the empowerment of the Agency and the ultimate adoption of an Urban Renewal Plan containing revenue allocation financing provisions; WHEREAS, the City has obtained an eligibility report prepared by Harlan W. Mann, Real Estate Consultant, which examines an area bounded generally by S. Parkinson Street on the east, Highway 44 on the south, S. Edgewood Road, East State Street, and Academy on the west, and on the north by E. Bishop Way and East Syringa Street for the purpose of determining whether such area is a deteriorating area and deteriorated area as defined by Idaho Code, Sections 50-2018(9) and 50-2903(8); WHEREAS, the Eligibility Report, dated October 4, 2006, has been submitted to the Mayor and City Council, a copy of which is attached hereto as Exhibit I. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF EAGLE AS FOLLOWS: Section I. That there are one or more areas within the City of Eagle which are deteriorating or deteriorated areas as defined by Idaho Code, Sections 50-2018(9) and 50-2903(8). - I - (h. \]udy\eagle\rsolutns\establish agency.doc) Section 2. That one such area is the area bounded generally by S. Parkinson Street on the east, Highway 44 on the south, S. Edgewood Road, East State Street, and Academy on the west, and on the north by E. Bishop Way and East Syringa Street. Section 3. That the rehabilitation, conservation, and redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, and welfare of the residents of the City. Section 4. That there is a need for an Urban Renewal Agency to function in the City. Section 5. the findings that: Based on the October 4,2006, report of the Area, the City Council makes a. The area is determined to be a deteriorating area as defined by Idaho Code, Section 50-2018(9) and a deteriorated area as defined by Idaho Code, Section 50-2903(8); b. The area is determined to be appropriate for an urban renewal project. Section 6. That pursuant to Idaho Code, Section 50-2006(b), the Mayor is authorized and directed to appoint, with the advice and consent of the City Council, a number of commissioners of the Urban Renewal Agency as allowed by the Law. Section 7. That the City Council hereby directs the Urban Renewal Agency to commence the planning process to prepare an urban renewal plan for the area determined to be appropriate for an urban renewal project. Section 8. That this Resolution shall be in full force and effect immediately upon its adoption and approval. ATTEST: 1l1~\L~ '-SHARON K. BERGMANN CITY CLERK/TREASURER day of a cA--~ /"J-eY ,2006. ADOPTED AND APPROVED This /tP::ti.. :tl'.,....... I,#. ..........." "i 0 FE..... .:0 ......'\ ........... 0 ". ~v.. ..':(~ i Z ov.POIl... ." ~ ~ ,* C; ~\-: . \ . . ! ......:. ! ;. ~ SEAL ,,'; i "f.P. -.<'0 'v,. ~ '\ ~ -'::ORA'tt.~..AO" ~#. - ~ 1'. ...... .,..~.. .......11 OF IS> ~......' .,.,......,',. - 2 - (h. ~udy\eagle\rso]utns\estab] ish agency. doc) EXHIBIT 1 EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE CITY OF EAGLE BY HARLAN W. MANN CONSUL T ANT October 4, 2006 11:iJudy\WPDATA\Eagle\EaSI Slate Street Arca [)iJ;ibilil)' Report JOt' Octoher 6. ~f)()() (I ~:n5PM) EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT BACKGROUND The City of Eagle ("City") authorized preparation of the subject report in August 2006. The repOli will provide the technical support for two policy decisions by the Mayor and Eagle City Council ("City Council"). The first is that one or more deteriorating or deteliorated areas exist in the City of Eagle. The second decision is that the East State Street Area as defined onlhe attached map is a deteriorating and deteriorated area and is appropliate for an urban renewal project. The area is generally bounded by South Parkinson Street on the east; Highway 44 on the south; South Edgewood Road, East State Street, and Academy Avenue on the west; and on the north by East Bishop Way and East Syringa Street. Idaho Code Section 50-2008(a) states: 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. Hence, Step One in planning a new renewal project is a resolution by the City Council making certain findings about a specific geographic area in the City. This resolution would also authorize the City's urban renewal agency ("Agency") to prepare an urban renewal plan for the area. The attached definitions of deteriorating area and urban renewal project are very pertinent to this step and are the focus of this report. EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREP ARED FOR THE CITY OF EAGLE - 1 Step Two in the renewal plmming process is action by the Agency to prepare an urban renewal plan and recommend its approval to the City Council. The City Council initiates Step Three by refelTing the plan to the Planning and Zoning Commission and setting a public hearing on the plan or plan amendment. Step Three is completed by a Plarming and Zoning Commission finding that the urban renewal plan confom1s to the City's Comprehensive Plan. Step Four is the adoption ofa City Council ordinance approving the plan, after a public hearing. DISCUSSION This report focuses on whether the East State Street Area, as previously described and as outlined on the attached map, qualifies as a deteriorating area pursuant to Idaho Code Section 50-2018(9) and as a deteriorated area pursuant to Section 50-2903(8)(b) under virtually identical definitions. A copy of this joint definition is attached. The first statutory reference is from the basic urban renewal statute, while the second comes from the revenue allocation law. In addition, the repOli will discuss why the area is appropriate for an urban renewal proj ect. A. Present Conditions The attached definition of deteriorating area and deteriorated area [Idaho Code 950-2018(9) and 9 50-2903(8)(b)] lists ten different conditions that may be present in such an area, with the tenth being the catch-all "any combination of such factors." The presence of these EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREP ARED FOR THE CITY OF EAGLE - 2 conditions was documented by field trips on September 28 and 29, 2006, contacts with various City officials, and assessor file information. Then the area and its public infrastructure were evaluated, and the numbers that correspond to the applicable characteristics in the definition were placed at the appropriate locations on the attached map. B. DeterioratinglDeteriorated Area Characteristics The following is a listing of conditions found in the area by their corresponding numbers in the definition and a brief explanation of that condition and how it was evaluated and identified: 1. (1 ) A substantial number or deteriorated or deteriorating structures. Given their age and condition, most of the structures in the area would be evaluated as deteriorating. Newer buildings and those that were substantially rehabilitated within the last five to ten years are not considered deteriorating. Deteriorated buildings would be those that are so rlln down that they should be demolished, allowing the land to be recycled for other uses. No deteriorated buildings were identified in the area. Most of the structures in the area are single-family homes. These are found in the subdivision north of East Dunyan Street between South Conover and East Parkinson Street. The water company identified the subdivision as Randall Acres 15. This subdivision has mostly stick-built homes, but there are several small, 6-10 unit mobile home parks and some individual mobile homes. The area between East State Street and East McGrath Road contains several mobile home parks, with 50-60 total units. These units appear to be of the older variety. The number "1" appears at representative locations in both of these areas to indicate the presence of deteriorating EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREP ARED FOR THE CITY OF EAGLE - 3 structures. The othcr locations where number "I" appears are buildings designated as deteriorating. 2. (2) Predominance of defective or inadequate street layout. East State Street, Edgewood, and Highway 44 are the primary streets that serve the area. East Parkinson, East Syringa, South Conover, and East McGrath provide internal circulation. None o[these streets would be considered defective or inadequate to any major degree. 3. (3) Faulty lot layout in relation to size. adequacy. accessibility. or usefulness. This characteristic applies primarily to the long, narrow parcel n011h o[ East State Street and east of Academy Avenue and the three parcels south of the first parcel on the south side of East State Street. 4. (4) Insanitary or unsafe conditions. There are a number of conditions existing within the proposed renewal area that apply to this characteristic. Typical insanitary conditions include excessive amounts o[junk, trash, and weeds in violation o[City sanitation codes. Often the most significant insanitary condition occurs in areas that lack sanitary sewers or where the sanitary sewer system has insufficient capacity. According to the Eagle Sewer District, most of the sewers in the area are fairly new and provide adequate service. The designation "4T" appears on the map at several locations to indicate trashy conditions on the property. There are numerous unsafe conditions throughout the area. Most are found with the street systems and include lack of sidewalks, curbs, and gutters; narrow, inadequate streets; and lack of or inadequate street lights. Street lights were lacking on Conover, Dunyan, McGrath, and Elliott. EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREP ARED FOR THE CITY OF EAGLE - 4 The only sidewalks in the area served the two new developments on State Street and Edgewood. Therefore, the designation "4ST" appears on the map along most of the streets and indicates unsafe conditions, primarily the lack of sidewalks. 5. (S) Deterioration of site and other improvements. Site improvements include parking lots, fences, and landscaping areas, basically things other than structures that make up a developed property. The term "other improvements" is the place where public improvements such as streets, sidewalks, curbs, gutters, bridges, storm drains, water mains, sanitary sewers, and public facilities such as swimming pools and public buildings are included. When the number AS@ appears on the map on street rights-of-way, it denotes those streets are deteriorated, either entirely or in part. Visual inspections are used to make these designations. When the number appears on real property, that denotes deteriorated site improvements, usually parking lots for already improved properties. Several propeliies have a number "s" on them because of the condition of their parking lots. The mobile home parks on McGrath and East State Street also have this designation because the parking areas were not paved. 6. (6) Diversity of ownership. Typically this characteristic is present when an area that needs to be redeveloped because of rundown buildings is divided into a number of different ownerships. It could also occur where existing businesses are hindered 111 expandll1g because 01' the number of adjacent property ownerships. Multiple ownerships are more difficult for developers to assemble. The MU-zoned property between East State Street and Dunyan received this designation because of its ownership and development patterns. EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE CITY OF EAGLE - 5 7. (7) Tax and special assessment delinquency exceeding the fair yalue of the lam!. This characteristic does not apply to the area. 8. (8) Defective aml unusual conditions of title. Thesc conditions have not been found in the area. 9. (9) The existence of conditions which endanger life or property by fire and other causes. The primary focus of this characteristic is inadequate fire protection facilities, particularly fire hydrants for existing and projected new development. The hydrant problem is present in the Randall Acres 15 area except for a Sh0l1 section of Parkinson between State Strect m1d the canal. Therefore, a number "9F" appearing on the map in that location indicates a lack of adequate fire protection facilities. 10. (10) Any combination of such factors. This number is placed on all areas where two or more of the other characteristics are present. C. Effects of Present Conditions 1. (a) Results in economic underdevclopment of the area. field review and aerial photography show several examples of underdeveloped property. Parcels on both sides of Edgewood fit this description. 2. (b) Substantially impairs or arrests the sound growth of a municipality. Substantial areas on both sides of Edge wood are poised for redevelopment, but Edgewood needs to be upgraded. If Edgewood were improved to eliminate the unsafe conditions by adding full curb, gutter, and sidewalk treatment, the result could be faster development. When the City is unable to meet infrastructure needs for extended periods of time, there is less incentive for the EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE CITY OF EAGLE - 6 private sector to invest in new development. Thus the sound growth of the City is adversely affected. 3. (c) Retards the provision of housing accommodations or (d) constitutes an economic or socialliabilitv. Older commercial and residential areas often suffer from an inadequate public infrastructure. This area has significant problems with the street systems. The longer adequate public infrastructure is delayed, the more new private development will be discouraged. Hence, generation ofincreused property and other taxes will decline, so the area will become an economic liability for the City and the other taxing district. 4. Ie) And is a menace to the public health. safetv. morals. or welfare in its present condition or use. The previous discussion has established that this area has had slower growth and, as a result, has become a modest economic liability. In addition, the unsafe condition of the street system creates safety problems for the residents and businesses. Accordingly, these conditions represent a menace or threat to the public welfare or prosperity and safety of the community. D. Appropriateness ofthe Area for an Urban Renewal Project The second pali of the City Council's detem1ination is the policy decision of whether or not the area is appropriate for an urban renewal project. Note that part of the definition of an urban renewal project includes, "undertakings and activities of a municipality in an urban renewal area for the elimination of deteriorated and deteriorating areas." This report has provided evidence that the East State Street Area is a deteriorating area because of the presence of various conditions, most of which are related to the EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREP ARED FOR THE CITY OF EAGLE - 7 public infrastructure. Either public infrastructure is older and needs to be replaced and/or upgraded or it is inadequate to serve existing and new development. In either case, the result is the same, existing development is often discouraged from upgrading and expanding, and new development is often slowed or thwarted because of the lack of necessary public infi"astructure. In this area, there has been some new development on Edgewood, but the mobile home parks fronting on East State Street and McGrath still provide a negative image for the City that may discourage other more difficult private redevelopment efforts. Fortunately the preparation and approval of an urban renewal plan for this new area will give the City additional resources to solve the public infrastructure problems in this area. Tax increment revenue from the new developments on Edgewood could help to improve the situation. In effect, propel1y taxes generated by new developments within the total area may be used by the City's urban renewal agency to finance a variety of needed public improvemcnts. Public-private partnership between the Agency and developers could encourage other new private developments. Finally, some of the ncw developments may also generate new jobs in the community that would, in turn, benefit City residents. CONCLUSION This report concludes that the East State Street Area described in this report is a deteriorating and deteriorated area and, as such, is appropriate for an urban renewal project. Attaclunents EAST STATE STREET AREA URBAN RENEWAL ELIGIBILITY REPORT PREPARED FOR THE CITY OF EAGLE - 8 DEFINITION OF DETERIORATING AREA. IDAHO CODE Q 50-2018(9) AND DETERIORATED AREA. IDAHO CODE Q 50-2903(8)(b) A deteriorating or deteriorated area is any area which bv reason of the presence of (J) a substantial number of deteriorated or deteriorating structures; (2) predominance of defective or inadequate street layout; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) insanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership; (7) tax or special assessment delinquency exceeding the fair value ofthe land; (8) defective or unusual conditions of title; (9) the existence of conditions which endanger life or propeliy by fire and other causes; or (J 0) any combination of such factors, (a) (results in economic underdevelopment of the area);1 (b) substantially impairs or atTests the sound growth of a municipality; (c) retards the provision of housing accommodations; or (d) constitutes an economic or social liability; and (e) is a menace to the public health, safety, morals, or welfare in its present condition or use; provided, that if sllch deteriorating area consists of open land the conditions contained in the proviso in Idaho Code Section SO-2008(d) shall apply.2 Provided however, this definition shall not apply to any agricultural operation, as defined in section 22-4502(1), Idaho Code, absent the consent of the owner ofthe agricultural operation, except for an agricultural operation that has not been used for three (3) consecutive years2 IThis appears only in the revenue allocation statute. zThis appears only in the urban renewal statute. DEFINITION OF URBAN RENEWAL PROJECT, IDAHO CODE & 50-2018(10) "Urban renewal project" may include undeltakings and activities of a municipality in an urban renewal area for the elimination of deteriorated or deteriorating areas and for the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan. Such undertakings and activities may include: (a) acquisition of a deteriorated area or a deteriorating area or portion thereof; (b) demolition and removal of buildings and improvements; (c) installation, construction, or reconstruction of streets, utilities, parks, playgrounds, off-street parking facilities, public facilities or buildings and other improvements necessary for carrying out in the urban renewal area the urban renewal objectives ofthis act in accordance with thc urban renewal plan; (d) disposition of any property acquired in the urban renewal area (including sale, initial leasing or retention by the agency itself) at its fair value for uses in accordance with the urban renewal plan except for disposition of property to another public body; (e) carrying out plans for a program of voluntary orcompLllsory repair and rehabilitation of building or other improvements in accordance with the urban renewal plan; (f) acquisition of real property in the urban renewal area which, under the urban renewal plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair or rehabilitation 0 f the structures for guidance purposes, and resale of the property; (g) acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or to prevent the spread of blight or deterioration, or to provide land for needed public facilities; (h) lending or investing federal funds; and (i) construction of foundations, platfonns and other like structural forms. 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