ignitecda 2014 minutes combined

Coeur d’Alene’s Urban Renewal Agency

2014 Meeting

Minutes

BOARD MEETING MINUTES WEDNESDAY JANUARY 15, 2014 4:00 P.M. COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Hassell, Jordan, Armon, Druffel, Davis, Hoskins, Patzer, Colwell. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Keith Erickson, Ben Johnston, Jeff Selle, Terry Cooper, and others.

No public comment was provided.

4. APPROVAL OF MINUTES  December 18, 2013 Board Meeting Minutes Motion by Commissioner Hoskins, seconded by Commissioner Armon, to approve the December 18, 2013 Board meeting minutes. Motion carried.

5. 2013 LCDC DRAFT ANNUAL REPORT LCDC Executive Director Berns shared that there was a change to the urban renewal statutes in the summer of 2011 that now requires an urban renewal agency to accept public comment on their annual report prior to submittal to City Council. The following LCDC process has been established to meet the new statute requirements:  The "draft" 2013 annual report to council was posted on the LCDC website's home page a week prior to the January, 2014 LCDC Board meeting,  A public notice ran in the CDA Press a week prior to the January, 2014 LCDC Board meeting indicating that the LCDC Board will accept public comment on the annual report at the January, 2014 LCDC Board meeting. The notice states that the draft report is posted on line, and also states that written public comments are welcome and can be submitted via mail or email,

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Public comment on the LCDC annual report will be a discrete agenda item at the January, 2014 LCDC Board meeting. When this agenda item is addressed, an overview of the annual report will be provided by the Ex. Director. The LCDC Chairman will then ask if there is any public comment on the annual report. The Board will then listen to public comment, and then review any written public comments received. The Board can then choose to discuss any issues as they wish, directing the Ex. Director to work with the Chairman on making any modifications to the draft annual report prior to submission to City Council. The Board will then approve the draft annual report, via motion, with any proposed modifications as noted.

Ex. Director Berns then proceeded to provide an overview of the draft 2013 LCDC annual report (audience members and television viewers were also able to view the draft annual report).

Public Comment Re. 2013 LCDC Draft Annual Report No public comment was provided at the Board meeting. Also, no written public comment was received re. the 2013 LCDC draft annual report.

Motion by Commissioner Armon, seconded by Commissioner Druffel, to approve the 2013 LCDC Annual Report as drafted, authorizing the LCDC Executive Director to submit the 2013 LCDC Annual Report to the CDA City Council as required by Idaho statute. Motion carried.

6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Finance Committee Chair Rod Colwell reviewed and discussed the December Lake and River District financial statements, and the December/January account payables sheet, with the Board.

Motion by Commissioner Hoskins, seconded by Commissioner Hassell, to approve the December financial statements and the December/January accounts payables for the Lake & River Districts as presented. Motion carried.

2013 Fiscal Year Audit – Ben Johnston, Magnuson & McHugh Co. Commissioners Davis and Colwell welcomed Ben Johnston, Magnuson & McHugh (M&M) accounting firm, to the Board meeting. Commissioner Colwell shared that the Finance Committee reviewed the 2013 audit packet in detail, and met with Mr.

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Johnston to review and discuss the draft audit packet at the committee’s January meeting.

Mr. Johnston shared an overview of the fiscal year 2013 LCDC audit report with the Board. Mr. Johnston shared that the LCDC financial statements meet GASB standards as established and LCDC’s fiscal year 2013 audit is considered a “clean” audit. Mr. Johnston also shared that LCDC has very good internal controls regarding its business model, and stated that the necessary checks/balances exist in the organization to help prevent theft/fraud issues.

Mr. Johnston discussed the fiscal year 2012 prior period adjustment value of $3,213,599 related to the agreement between the LCDC and North Idaho Centennial Trail Foundation (NICTF) pertaining to the Bureau of Land Management (BLM) / Prairie Trail initiative. This prior period adjustment was necessary because the settlement agreement between the LCDC and NICTF re. the disposition of the Prairie Trail asset actually occurred in December 2012 (fiscal year 2013), after the end of fiscal year 2012 which ended September 30, 2012.

Mr. Johnston also shared that as a result of accounting principal GASB 65, agencies like LCDC can no longer capitalize closing costs, thus a ($71,019) adjustment was made to the financial statements.  Commissioner Colwell asked Mr. Johnston to explain how M&M confirms LCDC financial debt values and cash positions.  Mr. Johnston shared that M&M contacts financial institutions and other owners of LCDC debt to confirm debt amounts owed. As for cash assets, M&M relies on published bank statements for confirmation.  Commissioner Armon asked if the Prairie Trail asset will be shown as an asset on the City of CDA balance sheet?  Mr. Johnston shared that yes, the City will book the Prairie Trail as a cityowned asset.

Motion by Commissioner Armon, seconded by Commissioner Patzer, to approve and accept the Fiscal Year 2013 LCDC audit as prepared by the Magnuson & McHugh accounting firm. Motion carried.

Piper/Jaffray Financial Consulting Contract Commissioner Colwell shared that the LCDC Board will need to spend time early in 2014 working through a capital allocation prioritization exercise for the River District. With several significant community project endeavors on the horizon, the Board needs to make sure that available LCDC funds are invested wisely, optimizing the benefit to the community.

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To that end, the Finance Committee recommends that LCDC engage Eric Heringer’s team with Piper/Jaffray to assist the LCDC in analyzing River District financial alternatives. The Piper/Jaffray team will assist in helping to evaluate the potential financial capacity of the River District and assist in evaluating the pros and cons of entering into either a public bond financing scenario or a private bank placement scenario. The Finance Committee wants to make sure that LCDC can afford to be a financial partner in any significant LCDC Board commitments within the River District (e.g. proposed NIC Event Center).

The Piper/Jaffray fee proposal assumes Piper/Jaffray will act as financial advisor to LCDC in evaluating revenues, structuring debt and developing possible debt obligation placement strategies (both private and public placements).

Piper/Jaffray’s fee for this proposed financial advisory services engagement will have a spending cap of $20,000.

Mr. Heringer’s team performed a similar financial analysis several years ago for the LCDC’s Lake District. The fee cap for the Lake District analysis was $20,000.

LCDC’s actual payment for the Lake District analysis was $17,303.

Motion by Commissioner Colwell, seconded by Commissioner Armon, authorizing the engagement of Piper/Jaffray to act as an LCDC financial advisor with a contract spending fee cap of $20,000.

Discussion: Commissioner Armon asked since the River District is smaller than the Lake District, might the actual cost for this analysis be less than what was paid for the Lake District analysis?  Commissioner Colwell shared that yes, the actual cost paid for this analysis may be less than what was paid for the Lake District analysis.

Commissioner Patzer asked if the potential expansion of the River District boundary to include a proposed event center will be evaluated in the analysis?  Ex. Director Berns shared that yes, the boundary expansion will be considered in the analysis, even though current plans call for the new geography to be tax exempt (i.e. owned by a public entity).

Commissioner Davis shared that Mr. Heringer’s team performed very fine work for the LCDC via their work on the Lake District financial analysis.

Commissioner Colwell asked LCDC legal counsel Danielle Quade to offer her opinion on the Piper/Jaffray team.  Mrs. Quade shared that she feels that Mr. Heringer’s team is the best team in the state to perform this type of proposed financial analysis.

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Motion carried.

FY14 Q1 Quarterly Report Executive Director Berns shared the Fiscal Year 2014 first quarter (FY14 Q1) report with the Board, asking Board members to review the package at their convenience, and to contact him with any questions.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that representatives of The Housing Company plan to visit in the near term with area stakeholders re. the redesigned Midtown mix-use housing initiative in Midtown.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan shared that he had no report to provide.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the January LCDC newsletter was distributed on January 14th. Topics covered in the January issue of the newsletter include:  McEuen Park construction update,  Partnering for a stronger workforce article, discussing the differences associated with economic redevelopment projects vs. economic development projects ,  Article on current River District development initiatives along Seltice Way and in the Riverstone West area, and  An interview with CDA Downtown Association Manager Terry Cooper.

7. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns reviewed the 1st quarter status of the LCDC Board’s fiscal year 2014 tactical goals.

Commissioner Davis asked Commissioner Patzer, who also serves as a commissioner on the Parks & Recreation Commission, to share an update on the “four corner” project public input process.  Commissioner Patzer shared that there was a public workshop help on January 13th wherein the public was offered another opportunity to provide input on the proposed project. The workshop went very well, and people understand the proposed public process that is underway. The next step in the process is to place the four corner initiative on the January Parks & Recreation Commission agenda, and then to have the Parks & Recreation Commission move to forward a four corners project recommendation to the appropriate City Council committee for further consideration.

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Commissioner Colwell asked Ex. Director Berns for an update on the McEuen Park project.  Ex. Director Berns, and LCDC communication consultant Keith Erickson provided a project update, indicating that current plans call for project completion in May of this year.

8. BOARD COMMISSIONER COMMENTS: Commissioner Patzer clarified for the viewing audience that the next Parks & Recreation Commission meeting is on January 27th.

9. PUBLIC COMMENT: No public comment was provided.

10. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency.

Motion by Commissioner Hassell, seconded by Commissioner Jordan, to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency.

Roll Call: Goodlander Yes Colwell Yes Davis Yes

Hassell Patzer Hoskins

Yes Yes Yes

Druffel Jordan Armon

Yes Yes Yes

Motion carried.

The LCDC Board entered into Executive Session at 4:50 p.m. Those present were the LCDC Board of Commissioners, LCDC Ex. Director Berns, and LCDC legal counsel Danielle Quade. Deliberations were conducted regarding the acquisition of an interest in real property not owned by a public agency.

No action was taken in Executive Session and the LCDC Board returned to regular session at 5:23 p.m.

11. ADJOURN: Motion by Commissioner Colwell, seconded by Commissioner Hassell, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 5:24 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

FEBRUARY 19, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Hassell, Jordan, Armon, Druffel, Davis, Hoskins, Patzer, Colwell. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Keith Erickson, Jeff Selle, Bill Greenwood, Frank Orzell, Wendy Gabriel, Steve Widmyer, Troy Tymesen, and others.

No public comment was provided.

4. APPROVAL OF MINUTES  January 15, 2014 Board Meeting Minutes Motion by Commissioner Hassell, seconded by Commissioner Hoskins, to approve the January 15, 2014 Board meeting minutes. Motion carried.

5. PRESENTATION: CITY OF CDA “FOUR CORNER” MASTER PLANNING INITIATIVE LCDC Chairman Davis welcomed City of CDA Parks Director Bill Greenwood and City of CDA Administrator Wendy Gabriel to the meeting. Mr. Greenwood shared a PowerPoint summary presentation with the Board re. the proposed “Four Corner” master planning initiative (“Four Corners”). Generally, the Four Corners area is defined as the area around the intersection of Government Way, Mullan Avenue and Northwest Boulevard, and includes places like Memorial Field, Human Rights Education Institute, the Kootenai County campus, and the Bureau of Land Management (BLM) owned former rail road corridor (area depicted below in two graphics): LCDC Meeting Minutes

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Below is some initiative background provided by Mr. Greenwood: _________________________________________________________

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Mr. Greenwood shared that the City’s Parks & Recreation Commission started gathering input from stakeholders re. the Four Corners planning initiative via workshop venues last June. The Parks & Recreation Commission approached the City’s General Services committee for their support to move this planning initiative forward: the General Services committee approved. The Parks & Recreation Commission then approached City Council to gain their approval to move the planning initiative forward, and to approach LCDC for partnership funding; City Council approved. Mr. Greenwood and Mrs. Gabriel asked if the LCDC Board would agree to fund the entire planning consultant cost associated with the proposed planning initiative, i.e. pay for the cost of a to-be-determine consultant team, recognizing the City’s in-kind contribution to date (i.e. manpower costs of city staff focused on this initiative since last June). Mrs. Gabriel shared that the City has compiled a lot of data over the years pertaining to the Four Corners area that should help facilitate the planning effort. City staff time invested to date is estimated at approximately $25,000. The City anticipates adding another $25,000 of staff time to the planning effort once initiated.  Commissioner Davis asked what geographic area is included in the proposed study scope?  Mr. Greenwood shared that in addition to the intersection area near Memorial Field and the BLM right-of-way area, additional areas proposed for the study include CDA City Park, Independence Point area, and possibly portions of the dike road area along Lake CDA/Spokane River.  Commissioner Armon asked for a cost estimate pertaining to this type of master planning effort?  Mr. Greenwood shared that he believes the master planning effort will be in the $100,000 range. This estimate was derived based on past City planning endeavors.  Commissioner Davis asked if the City has approached any planning firms re. potential costs?  Mr. Greenwood shared that he has not contacted any planning professionals re. possible costs related to this proposed planning initiative.  Commissioner Jordan asked what is the overall goal of this planning effort?  Mr. Greenwood shared that the planning effort is designed to meet the requirements of the proposed BLM lease, as well as to evaluate the highest and best uses of the properties in the Four Corners area.  Commissioner Jordan shared that LCDC needs to have input into the Four Corners Request for Qualifications (RFQ) scoping document.  Commissioner Goodlander thought the cost estimate for this planning effort was in the $70-$80,000 range, when did the estimate jump to $100,000?  Mr. Greenwood indicated that he was not sure where the $70-80,000 estimate originated. The final scope of the project will determine the price range of the planning effort.

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Mrs. Gabriel reminded everyone that costs for these types of planning efforts are not determined through a bid process, but by a negotiation process initiated once a planning consultant team is chosen through a (RFQ) process.

 Commissioner Armon commented that the geographic area as outlined is very large, and that the scope of the planning effort needs to be refined. Additionally, there are several other adjoining community stakeholders in this geographic area that need to be at the table for both input and funding purposes.  Commissioner Patzer shared that an effort needs to be made during this planning process to take a holistic approach re. connectivity in the community; that is why the initial proposed study area is so large. Additionally, the hope is that the BLM property will one day be owned by the City of CDA thru the land “patent” process.  Commissioner Druffel asked for and explanation of the land patent process.  Mr. Greenwood shared that a successful land patent process would place the land area currently controlled by the BLM in City of CDA ownership based on property use restrictions.  Commissioner Goodlander asked when planning first started on the Four Corners area?  Mrs. Gabriel shared that planning for this area began around 2002.  Commissioner Armon asked, for clarification purposes, if the City is asking LCDC to pay 100% of the planning consultant cost for the Four Corners project?  Mrs. Gabriel shared that yes, the City is seeking 100% LCDC funding for the planning consultant cost since the City has invested quite a bit of City staff time on pre-design, which should help keep the ultimate negotiated planning cost down.  Commissioner Davis asked if the City needs some form of partnership funding commitment from the LCDC in order to proceed with the planning process.  Mrs. Gabriel said yes, the City cannot proceed without some understanding of LCDC financial support.

Motion by Commissioner Goodlander, seconded by Commissioner Jordan, authorizing LCDC partnership funding for the City of CDA Four Corner master planning initiative, at a partnership funding level not to exceed 75% of the actual planning consultant negotiated cost for the master planning effort, with the LCDC having input into the scope of the RFQ process.

Motion carried.  Commissioner Davis asked for board member volunteers to work with the City on finalizing the Four Corners RFQ scoping document. Commissioners Patzer, Goodlander and Hassell volunteered.

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6. ELIGIBILITY ANALYSIS / REPORT DISCUSSION RE. ATLAS MILL SITE AREA LCDC Ex. Director Berns led the Board in a discussion re. the old Atlas mill site area's (“Atlas Site�) potential eligibility as an urban renewal project area (Atlas Site depicted below).

Atlas Mill Site Area LCDC River District: Yellow LCDC Lake District: Pink

Ex. Director Berns shared that Idaho's urban renewal statutes call for an eligibility report/analysis to be performed to determine if areas proposed for urban renewal qualify for urban renewal. As for the Atlas Site, the analysis would determine if the area meets the urban renewal inclusion standards most likely based on the following Idaho statute deteriorating/deteriorated criteria: "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.

"Deteriorating area" shall mean an area which by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of LCDC Meeting Minutes

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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.

Ex. Director Berns shared that the Atlas Site was evaluated for potential urban renewal inclusion back in 2003 when the LCDC River District was formed. Although the Atlas Site did qualify for urban renewal consideration at that time (see graphic below), the Atlas Site was excluded from the River District boundary based on feedback received from then Kootenai County Commissioners.

River District Eligibility Report: 2003 (Atlas Site Depicted by Blue Boundary) 1= substantial number of deteriorating or deteriorated structures 4= insanitary or unsafe conditions 4S= problems with sanitary sewer systems 10 = any combination of two or more deteriorated or deteriorated factors

Recent overtures to LCDC by Washington Trust Bank (WTB) representatives (the bank owns the westerly 30 +/- acres of the Atlas Site) and Stimson Lumber Co. representatives (the lumber company owns 41 +/- acres of the Atlas Site) have rekindled the effort to consider this area for urban renewal treatment. Both aforementioned entities are interested in LCDC's potential partnership to help address LCDC Meeting Minutes

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the infrastructure needs (e.g. sewer, water, roads, dry utilities, signalized intersection) associated with the Atlas Site. Below is a current depiction of the Atlas Site showing current ownership entities:

WTB BNSF Stimson / Others

Ex. Director Berns proposed that the Board update/refresh the 2003 Atlas Site eligibility study. Should the Board be willing to update/refresh the 2003 study, the next step would be for LCDC to engage a consultant to update the Atlas Site eligibility analysis to determine if the Atlas Site still qualifies for urban renewal consideration.

This determination is needed should the LCDC Board and the CDA City Council choose to pursue further urban renewal consideration for the Atlas Site.

The completed eligibility report will determine whether part or all of the Atlas Site still meets the criteria and qualifies for an urban renewal project. Following is a summary of the process steps from eligibility analysis to CDA City Council consideration:  Perform / refresh Atlas Site eligibility analysis.  LCDC Board decides whether or not to accept completed eligibility report.  If accepted, LCDC forwards eligibility report to CDA City Council & to Kootenai County Commissioners (since portions of the Atlas Site are located in the county).  LCDC/City receive consent from Kootenai County Commissioners re. Atlas Site’s eligibility.

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CDA City Council then decides if the Atlas Site should receive urban renewal consideration, and if so, asks LCDC to prepare an urban renewal plan for said area.

Ex. Director Berns stated that the Atlas Site currently offers very little value to the community due to lack of infrastructure (water, sewer, adequate roads, etc.), and that with economic energy being generated in the area, it makes sense now to discuss the infrastructure needs to support economic momentum in the area.  Commissioner Patzer commented, that from a land use planning perspective, the Atlas Site is a perfect candidate site for potential inclusion in an urban renewal district. This could be an area that would require minimal time to bring up to speed from an economic development standpoint.  Commissioner Hoskins shared that he is very pleased that there are developers very interested to invest capital in the Atlas Site.  Commissioner Armon asked for a cost estimate for this type of eligibility report?  Ex. Director Berns shared that in 2003, LCDC paid $2,900 for the River District eligibility report. A general cost estimate for such a report in 2014 is between $3,000 and $5,000.

Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, directing LCDC Ex. Director Berns to pursue engagement of a consultant to update the 2003 eligibility report pertaining to the Atlas mill site area. Motion carried.  Commissioner Davis shared that there has been recent public interest / conversation re. the potential use of the urban renewal tool in the East Sherman Avenue area.

Commissioner Davis shared that successful urban renewal areas/districts have key “economic engine” projects at the outset that generate sufficient tax increment revenues to help facilitate economic development in other portions of the district.

The East Sherman Avenue area has no known economic engine projects on the horizon, which makes the use of the urban renewal tool in that area extremely challenging vs. the recently discussed Atlas Site where private sector investment is waiting on the sidelines. Additionally, it is unknown what type of “placemaking” effort East Sherman Avenue stakeholders desire.  Commissioner Scott Hoskins concurred with Commissioner Davis in that there does not currently appear to be any viable private sector partners to move forward with urban renewal enhancements on East Sherman vs. the tangible partnership opportunities that are on the horizon in the Atlas Site area.  Commissioner Jordan shared that before any movement could be made on East Sherman, there must be more consensus building among current and potential

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stakeholders within that area as to how to proceed and what outcomes are desired – i.e. what type of “place” do the East Sherman Avenue stakeholders desire?  Commissioner Davis asked Ex. Director Berns to place an East Sherman Avenue agenda item on the February 27th LCDC/City Council workshop agenda.

7. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Finance Committee Chair Rod Colwell reviewed and discussed the January Lake and River District financial statements, and the January/February account payables sheet, with the Board.

Motion by Commissioner Hoskins, seconded by Commissioner Druffel, to approve the January financial statements and the January/February accounts payables for the Lake & River Districts as presented. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that Douglas Peterson (The Housing Company), Ex. Director Berns and herself met recently with Mayor Widmyer to discuss the redesigned Midtown mix-use housing initiative. The Mayor is supportive of the project and offered to help engage Midtown stakeholders on the redesigned concept. Mr. Peterson plans to travel to CDA in early March to visit with stakeholders.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan shared that current plans call for the McEuen Park parking structure to be fully open by mid-May. Enhanced communication efforts are also being considered to increase the public’s awareness of the lightly used free public surface parking lot located just to the south of city hall. Use of these numerous free parking spaces could help alleviate parking issues currently being encountered at both the City’s public library and also in the neighborhood surrounding the library and city hall.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the February LCDC newsletter was distributed on February 18th. Topics covered in the February issue of the newsletter include: LCDC Meeting Minutes

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“Four Corners” master planning initiative, Urban Land Institute (ULI) Healthy Places program in CDA on February 27th , Downtown CDA sidewalk initiative, and An interview with Phil Boyd, Welch-Comer Engineers.

Commissioner Patzer also shared that LCDC website updates are still occurring (e.g. downloading of recent LCDC Board meeting videos from the City’s site), and that it may be time to contemplate re-engaging the McEuen Park webcam as construction activity picks back up this spring.

8. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns shared that the LCDC Board will be having a workshop with the CDA City Council on February 27th at noon in the Community Room of the CDA Public Library. The workshop is open to the public and will be televised on Channel 19.

Ex. Director Berns also shared that another Urban Land Institute (ULI) program will be held in CDA on February 27th at the Kroc Community Center beginning at 9:00 a.m.

This ULI program will focus on “building healthy spaces” and will feature a national ULI speaker on this topic. Additionally, a local panel has been engaged to discuss examples of existing healthy building in the CDA area, as well as healthy building opportunities for the future.

9. BOARD COMMISSIONER COMMENTS: Commissioner Patzer shared that he is happy to see all eight of his fellow LCDC Commissioners at the meeting. Often, schedules do not allow for all commissioners to attend board meetings; it is always nice to see a full board contingent when possible.

10. PUBLIC COMMENT: No public comment was provided.

11. ADJOURN: Motion by Commissioner Patzer, seconded by Commissioner Colwell, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 5:36 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

MARCH 19, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Hassell, Jordan, Armon, Druffel, Davis, Hoskins, Patzer, Colwell. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Keith Erickson, Jeff Selle, and many others.

No public comment was provided.

4. APPROVAL OF MINUTES  February 19, 2014 Board Meeting Minutes  February 27, 2014 LCDC/City Council Workshop Minutes Motion by Commissioner Druffel, seconded by Commissioner Hoskins, to approve the February 19, 2014 Board meeting minutes. Motion carried.

Motion by Commissioner Druffel, seconded by Commissioner Armon, to approve the February 27, 2014 LCDC/City Council workshop meeting minutes. Motion carried.

5. PRESENTATION: DR. JERRY BECK ECONOMIC DEVELOPMENT DISCUSSION Chairman Davis welcomed Dr. Jerry Beck to the Board meeting. Dr. Beck, who recently retired as the President of the College of Southern Idaho (CSI), has worked for years helping to align collaborative political/civic/economic development forces to focus on an economic development partnership that benefits southern Idaho. The

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partnership is called the Southern Idaho Economic Development Organization (SIEDO). Below is a summary of the organization: The Southern Idaho Economic Development Organization (SIEDO) is a joint venture of public and private sectors in the communities of Twin Falls, Jerome, Kimberly, Filer, Gooding, Wendell, Glenns Ferry, Castleford, Burley, Heyburn, Paul, and Rupert formed to help diversify and strengthen the local economy by retaining and attracting business to the Southern Idaho region.

SIEDO works closely with each of these communities to promote economic development through expansion of existing business and to implement a focused consistent program to attract new businesses to the region.

Dr. Beck shared the following observations/comments during his visit with the LCDC Board:  Congratulated the CDA community on being a great city.  Provided historic background as to why southern Idaho communities surrounding the Twin Falls area were having challenges recruiting companies/jobs to the area.  Found that most companies knew more about the southern Idaho communities than the communities knew about themselves, thus targeted visits to employers to sell the employers on relocating to southern Idaho because of the inherent community virtues were not working well.  The Lockwood-Greene organization was hired to tell the southern Idaho communities what they “could be” and what they “could not be”.  The report shared that a major challenge to the area was lack of a good airport facility, a challenge that would most likely not be overcome.  The report shared that a major asset to the area was that the area is located near major western markets via good freeways, and has good warehousing / distribution capabilities.  The most enlightening finding of the report was that Lockwood-Greene told the communities to stop fighting with one another, and work towards being one cohesive region on the economic development front, just not stand alone communities. Help each other out where possible for the benefit of the region.  As a result of the report, eight counties and their respective cities formed up as a team; thus the formation of SIEDO.  SIEDO is comprised of 25+ members, and is led by a five member Executive Board.  SIEDO decided early on to not chase retail; retail will follow jobs and housing.  SIEDO members all agreed to support one another and to put turf issues aside.  SIEDO’s business model is to promote the area widely, invite employers to the area, and have “ready teams” available to sell their area.  SIEDO helped communities develop the ready teams, which consist of only 4-5 individuals that have the knowledge needed to focus on the targeted employer interested in the area; i.e. customer focused approach.

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A “business plus” entity was developed to work with SIEDO that houses funds contributed by the private sector to help close deals when needed – no public funds in this entity.

 Commissioner Davis asked Dr. Beck to share how urban renewal helped to land the Chobani Yogurt and Clif Bar organizations?  Dr. Beck shared that he was more familiar with the Chobani deal. Twin Falls was not the original Idaho site that Chobani evaluated. The Twin Falls Urban Renewal Agency (URA) was able to contribute $18 million of infrastructure to the project to help close the deal. Chobani also wanted to create an industrial park so that they could bring in related companies (e.g. berry companies, packaging companies) that help contribute to their success.  Commissioner Armon asked how SIEDO aligned state legislators with their economic development efforts?  Dr. Beck shared that legislators were part of SIEDO from the beginning.

SIEDO recruited Sen. Cameron, who had a very powerful influence in Boise, which was very helpful to SIEDO efforts. If you have cities and counties and other stakeholders working together to better the region, that is a powerful scenario to help engage legislators on your behalf.  Commissioner Goodlander asked who took the lead in assembling SIEDO?  Dr. Beck shared that the lead effort began with the CSI President at the time.  Commissioner Patzer asked how do companies/employers “value” quality of life in a potential relocation analysis?  Dr. Beck shared, that in his opinion, the quality of life metric takes a back seat to the bottom line of dollars and cents. The State of Idaho’s track record of managing towards a balanced budget is a big draw to companies; companies do not like government fiscal issues affecting their business models. Companies are also concerned about good health care systems, good schools, the available workforce, and affordable housing. CDA has a reputation of having high land costs, which is not true once you remove the high end waterfront properties from the equation: this is a perception issue for CDA, not a reality issue.  Commissioner Patzer asked if the presence of CSI in the area was a key in recruiting companies to the area?  Dr. Beck shared that the presence of CSI was a positive factor, but not an overriding factor. CSI could help with some workforce development training funds, but those funds materialize after the deal is done. The state legislature did provide CSI with some up front training dollars that did help in the recruiting process.  Commissioner Jordan asked if southern Idaho communities tried to influence CSI to establish satellite campuses / curriculums in their communities?

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

Dr. Beck shared that CSI received grants years ago to establish satellite campuses in various southern Idaho communities that have worked out well.

CSI has a strong partnership record with communities on structuring appropriate curriculums for the communities they serve.

Commissioner Davis thanked Dr. Beck for sharing his insights with the LCDC Board and community.

6. ATLAS MILL SITE ELIGIBILITY ANALYSIS / REPORT Issue Background: the following italicized excerpts are from the February, 2014 LCDC Board meeting minutes, please refer to the February minutes for more detail.

LCDC Ex. Director Berns led the Board in a discussion re. the old Atlas mill site area's (“Atlas Site”) potential eligibility as an urban renewal project area (Atlas Site depicted below).

Atlas Mill Site Area LCDC River District: Yellow LCDC Lake District: Pink

Ex. Director Berns shared that Idaho's urban renewal statutes call for an eligibility report/analysis to be performed to determine if areas proposed for urban renewal qualify for urban renewal. As for the Atlas Site, the analysis would determine if the area meets the urban renewal inclusion standards most likely based being a deteriorated or deteriorating area.

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Ex. Director Berns shared that the Atlas Site was evaluated for potential urban renewal inclusion back in 2003 when the LCDC River District was formed. Although the Atlas Site did qualify for urban renewal consideration at that time (see graphic below), the Atlas Site was excluded from the River District boundary based on feedback received from then Kootenai County Commissioners.

River District Eligibility Report: 2003 (Atlas Site Depicted by Blue Boundary) 1= substantial number of deteriorating or deteriorated structures 4= insanitary or unsafe conditions 4S= problems with sanitary sewer systems 10 = any combination of two or more deteriorated or deteriorated factors

Chairman Davis and Ex. Director Berns welcomed Cynthia Reyburn, Chief Finanical Officer with the Panhandle Area Council (PAC), to the board meeting. The PAC organization was engaged by LCDC to perform an eligibilty study update for the Altas Mill site area. PAC has performed numerous urban renewal eligibility reports over the years affiliated with urban renewal initiatives in northern Idaho.

Ms. Reyburn discussed the PAC report with the Board, highlighting the key metrics an area must meet to qualify for urban renewal treatment. Following are key excerpts from the PAC report addressing these metrics: Note – Commissioner Goodlander left the board meeting at 4:55.

Deteriorating/Deteriorated Area Characteristics The following is a listing of conditions found in the area as they relate to Idaho Code and a brief explanation of that condition and how it was evaluated and

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identified: 1. Substantial number of deteriorated or deteriorating structures. Buildings that existed on the site in 2003 have since been completely razed and no major structures remain on the site.

2. Predominance of defective or inadequate street layout. Seltice Way, running east and west, Old Atlas Road, and Atlas Road are the streets that serve the area and are adequate.

3. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Three parcels exist in the Site area, one approximately 21 acres one approximately 37 acres and one about 4 acres.

4. Unsanitary or unsafe conditions. There are a number of conditions existing within the proposed renewal area that apply to this characteristic. Typical unsanitary conditions include excessive amounts of junk, trash, and weeds in violation of City sanitation codes. There are also a number of unsafe conditions throughout the area related to steep topography, environmental contamination from mill operations and trash.

5. 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. The only remaining site improvement is a large, deteriorating parking lot. The status of public improvements related to underground utilities is unknown at this time.

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. Multiple ownerships are more difficult for developers to assemble. At this time, there are three owners of property in the Site area, not including BNSF Railroad which appears to have an easement through the property: The owners: Owner (1)

AIN

Parcel Number

Washington Trust Bank 228110 50N04W-09-200 311904 50N04W103300 TOTAL Stimson Lumber 100905 50N04W103200 103518 50N04W102500 TOTAL Rivers Edge Aparts 318388 50N04W102600 (1)

Acreage Total 18.462 3.191 21.653 32.168 5.523 37.691 3.8459

Kootenai County Assessor

7. Tax and special assessment delinquency exceeding the fair value of the land. This characteristic does not apply to the area.

8. Defective and unusual conditions of title. These conditions have not been found in the area.

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.

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10. Any combination of such factors. There are several areas where two or more of the other characteristics are present.

Effects of Present Conditions 1. Results in economic underdevelopment of the area. Field review shows that the entire area now consists of underdeveloped or undeveloped property. This is a major deterrent to encouraging economic development because of the cost of basic infrastructure.

2. Substantially impairs or arrests the sound growth of a municipality. The current city limits below I-90 stop at Seltice and Huetter Road.

3. Retards the provision of housing accommodations or constitutes an economic or social liability. This area suffers from inadequate public infrastructure. Only a small area possesses unused water and sewer systems. Inadequate public infrastructure tends to increase public service costs without much increased generation of property and other taxes. Hence such an area tends to become an economic liability for the City.

4. And is a menace to the public health, safety, morals, or welfare in its present condition or welfare in its present condition or use. The area has become a modest economic liability. In addition, the unsafe condition of lack of sidewalks and street lights represent a menace or threat to the public welfare or prosperity and safety of the community.

Conclusion This report concludes that the old Atlas mill site area as described herein is a deteriorating and deteriorated area and, as such, is appropriate for an urban renewal project.

 Commissioner Davis shared a correction to the draft report re. the “diversity of ownership” metric. BNSF railroad ownership should be included in the report since it does affect the development of the site.  Ms. Reyburn agreed and shared that she would update the report to reflect the BNSF railroad element (the PAC report excerpt above is from the final draft of the PAC report which does contain the BNSF railroad addition).  Commissioner Jordan shared that since BNSF owns land that bifurcates the site, BNSF ownership is truly an obstacle to development of the site, and another reason for potential urban renewal assistance.  Commissioner Patzer asked if urban renewal designation included portions of the Spokane River, would LCDC be able to address river related issues like piling removal, etc.?  Commissioner Davis shared that Commissioner Patzer raises a good question since the area below the river’s high water mark is controlled by the Idaho Department of Lands.  Ex. Director Berns shared that LCDC has not been approached for any such river-related redevelopment assistance since the River District was established in 2003.

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

Resolution 14-01: Acceptance of Atlas Mill Site Eligibility Report Motion by Commissioner Jordan, seconded by Commissioner Armon, to approve Resolution 14-01 accepting the Atlas Mill Site eligibility report as prepared by Panhandle Area Council, given the following correction to the draft report: inclusion of the BNSF railroad ownership element into the “Diversity of Ownership” report category.

Roll Call: Goodlander Hassell Jordan

Absent Yes Yes

Davis Colwell Hoskins

Yes Yes Yes

Druffel Patzer Armon

Yes Yes Yes

Motion carried.

7. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Finance Committee Chair Rod Colwell reviewed and discussed the February Lake and River District financial statements, and the February / March account payables sheet, with the Board.

Motion by Commissioner Armon, seconded by Commissioner Druffel, to approve the February financial statements and the February / March accounts payables for the Lake & River Districts as presented. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Ex. Director Berns, in Housing Committee Chair Deanna Goodlander’s stead, shared that Douglas Peterson (The Housing Company) will be joining other Midtown stakeholders at 6:30 p.m. on April 3rd @ the CDA Public Library to discuss the redesigned Midtown mix-use housing initiative proposal.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan had no report to share.

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 Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer invited Keith Erickson to join the meeting. Mr. Erickson shared that the March LCDC newsletter was distributed on March 18th. Topics covered in the March issue of the newsletter include:  Atlas Mill site’s eligibility for urban renewal treatment,  Measuring success of LCDC partnership initiatives,  McEuen Park update, and  An interview with Eden Irgens, Chair of the CDA Arts Commission.

Mr. Erickson also shared that the McEuen Park project is progressing well and on schedule for a May, 2014 opening. The final segment of angled parking will be open on Front Avenue next week following completion of the new sidewalk.

Mr. Erickson suggested to the Board that the time might be right to discuss the renewal of the very successful LCDC Huckleberries blog tile ad which linked readers to the LCDC website and the McEuen Park webcam. Given that work on McEuen Park has picked up with the better weather, April might be good time to renew the blog tile ad communication effort. The price for the Huckleberries tile ad is still $300/month, and the location of the LCDC tile ad will be in the same place as last year (front page, left hand side). Mr. Erickson suggested that the Board delay a decision on this matter until the McEuen Park webcam is working better – currently experiencing some technical issues. Mr. Erickson will keep the Board apprised on this issue and suggest a time to re-engage the tile ad.  Commissioner Davis asked Mr. Erickson to refresh his memory as to where exactly the tile ad sends the reader?  Mr. Erickson shared that when the reader clicks on the tile ad, the reader is sent to the LCDC’s home page where the reader can access the McEuen Park webcam, or learn more about the LCDC by visiting any page of the website.  Commissioner Armon asked if a buying a tile ad on the CDA Press would be money well spent?  Mr. Erickson shared that LCDC did buy a tile ad on the CDA Press website last year ($300/month) and experienced mixed results. The Press tile ad would appear randomly throughout the day, and reader click through metrics were not impressive.

Commissioner Patzer also shared that the LCDC sub-team appointed at the February board meeting to supply feedback to the City’s draft Four Corner Request for Qualifications (RFQ) document has submitted their feedback. Expectations are that the Four Corner RFQ will be released at the end of March or in early April.

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8. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns shared the following update: Jobs Adhoc Committee – Focus on Health Care Jobs Ex. Director Berns shared that the “jobs team”, which is comprised of representatives from LCDC, North Idaho College (NIC), University of Idaho (UI), Lewis Clark State College (LSCS) and Kootenai Health, met on March 18th to further discuss the health care jobs initiative. NIC updated the team on their efforts to refine the health care jobs need analysis, determining that key focus areas are Surgery Technicians, Medical Laboratory Technicians, and Health Informatics. Health Informatics is a discipline at the intersection of information technology, computer science, and health care. It deals with the resources, devices, and methods required to optimize the acquisition, storage, retrieval, and use of information in health care and biomedicine. Health Informatics tools include computers, clinical guidelines, formal medical terminologies, and information and communication systems.

Next steps for the jobs team are to:  finalize the health care jobs need analysis,  evaluate the current design of the NIC/UI/LCSC joint use building (to be located on the Higher Education Campus) to determine if the current design needs to be modified to meet the newly identified health care jobs need, and  pursue funding for the desired programming costs and capital building costs relative to the proposed joint use building.

9. BOARD COMMISSIONER COMMENTS: No Board member comments were provided.

10. PUBLIC COMMENT: No public comment was provided.

11. ADJOURN: Motion by Commissioner Druffel, seconded by Commissioner Patzer, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 5:42 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

APRIL 16, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Hassell, Jordan, Armon, Davis, Hoskins, Patzer, Colwell. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Keith Erickson, Greg Cook, Frank Orzell, Jon Mueller.

No public comment was provided.

4. APPROVAL OF MINUTES  March 19, 2014 Board Meeting Minutes Motion by Commissioner Armon, seconded by Commissioner Hoskins, to approve the March 19, 2014 Board meeting minutes. Motion carried.

5. PRESENTATION: GREG COOK, PANHANDLE AREA COUNCIL (PAC) Chairman Davis welcomed PAC Executive Director Greg Cook to the meeting. Mr. Cook, a native of the CDA area, assumed leadership of the PAC organization following the retirement of Jim Deffenbaugh. Mr. Cook shared a PAC PowerPoint overview presentation with the Board. Key slides of the presentation follow:

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During his presentation, Mr. Cook congratulated LCDC for all of their successes in the community. Mr. Cook shared that he was very impressed with the quality and quantity of new development in the CDA area since returning to his home town following a career in the military, and understands that the majority of the new development involved LCDC partnership efforts.  Commissioner Davis asked about local funding sources for the PAC organization?  Mr. Cook shared that PAC receives local funds from the following sources: dues collected from PAC membership entities (i.e. cities and counties), loan program fees and interest, small monthly fees associated with PAC held mortgages, fees charged for services provided by PAC (e.g. fees for grant applications). Mr. Cook shared that one key focus area for PAC is to refine the revenue generating component of its business model.  Commissioner Davis inquired as to the size of PAC’s annual budget?  Mr. Cook shared that PAC’s annual budget is in the $700-$800,000 range.  Commissioner Davis asked how demand is looking for PAC’s business incubator program?  Mr. Cook shared that the business incubator program is currently 100% full.

PAC’s incubator program was designed to be a short-term commitment to help emerging businesses get off the ground, usually a one year or so time frame.

However, some businesses have been in place at the incubator for quite some time; a situation that PAC leadership plans to address in the near term.  Commissioner Jordan commented that he hopes the LCDC and the PAC organization can work together in the future on initiatives that better the community.  Mr. Cook shared that he agrees completely with that sentiment, and plans to work closely with local economic development organizations to identify potential partnerships opportunities.  Commissioner Armon shared that the Avista organization has made a grant to North Idaho College (NIC) for an entrepreneurial program. Is PAC working on this initiative with NIC and Avista?  Mr. Cook shared that yes, PAC is involved with that program, and other similar types of programs in the area.

Chairman Davis, on behalf of the entire LCDC Board, thanked Mr. Cook for his visit, sharing that LCDC looks forward to exploring future opportunities with PAC.

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6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Finance Committee Chair Rod Colwell reviewed and discussed the March Lake and River District financial statements, and the March / April account payables sheet, with the Board.

Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, to approve the March financial statements and the March / April accounts payables for the Lake & River Districts as presented. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that Douglas Peterson (The Housing Company: THC) joined other Midtown stakeholders, including CDA Mayor Steve Widmyer, on April 3rd at the CDA Public Library to discuss the redesigned Midtown mix-use housing initiative proposal. The meeting went well, and THC is moving forward with their due diligence efforts targeting the September, 2014 tax credit application window. If successful in obtaining federal tax credits to help finance the project, THC plans to break ground on the project in the spring of 2015.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan shared that Diamond Parking will manage the newly constructed McEuen Park public parking facility, maintaining the prior 3rd Street parking lot fee schedule for the near term.

The Parking Commission also discussed the issue of managing “boat parking” at the public moorage docks located adjacent to McEuen Park. The boat moorage area was designed to be short-term moorage for boats so folks could visit and enjoy downtown CDA. However, the short-term moorage aspect has been abused by quite a few boat owners. The City is reviewing ordinances to determine enforcement latitude re. the short-term boat moorage issue.

The Parking Commission was also approached recently re. the idea of “bike corrals” located in several areas of downtown. The bike corral concept involves the use of one surface parking space to “park” 10 or so bicycles for some period of time. The Parking Commission liked the bike corral concept, and referred the issue to the City’s Bike/Ped committee.

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 Commissioner Goodlander asked if the Parking Commission is aware of the removal of a handicapped parking space downtown on 4th street, and is there any chance of getting the space back?  Commissioner Jordan is not sure of the situation associated with that handicapped parking space, but will check into the issue.  Commissioner Goodlander asked if the first two hours of parking will still be free of charge in the new McEuen Park parking facility?  Commissioner Jordan shared that parking fees in the facility will be collected utilizing electronic pay kiosks, and his understanding is that the City still plans to allow for the first two hours of parking to be free.  Commissioner Colwell commented that folks are very surprised re. how nice and open the McEuen Park parking facility feels. A lot of folks were under the impression that this facility would be underground, and they are happy to see that the facility is an “at grade” facility that opens up to McEuen Park.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer invited Keith Erickson to join the meeting. Commissioner Patzer shared that this is the last visit by Mr. Erickson as an LCDC communication consultant (Mr. Erickson has been hired by the City of CDA as the City’s new communication director). Commissioner Patzer thanked Mr. Erickson for his excellent work on behalf of LCDC over the past two years, and for continuing to help the community via his new role with the City.

Mr. Erickson thanked the Board for hiring him two years ago in the communications consulting role. He feels that the LCDC has been a trail blazer on the communication front, with other entities around the state following the LCDC’s lead. Mr. Erickson believes the LCDC communications efforts have been viewed positively by the public, and recommends the LCDC Board, in some form, consider continuing this communications outreach initiative.

Mr. Erickson shared that the April LCDC newsletter was distributed on April 15th.

Topics covered in the April issue of the newsletter include:  Summary of Dr. Jerry Beck’s economic development discussion with LCDC Board members,  Update on the Midtown mix-use workforce housing project,  McEuen Park update, and  An interview with John Bruning, past City of CDA City Councilman, past longterm Chair of City’s Planning and Zoning Commission.

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Mr. Erickson also shared the following: McEuen Park: the park project is progressing well and a partial opening is planned for May 2nd. The City is tentatively planning for two park related public events: May 24th (Saturday prior to Memorial Day), and July 12th (City Parks Day).  Commissioner Armon asked how the donor wall was progressing, and how folks can contribute to the donor wall?  Mr. Erickson shared that donations for the donor wall are still occurring, and that folks interested in donating to the wall contact the Panhandle Parks Foundation (www.panhandleparksfoundation.org).

Media Outreach: The McEuen Park webcam is back up and running. Mr. Erickson suggested that LCDC revive its engagement with the Huckleberries blog to provide once again a blog tile ad that links the blog visitor to the LCDC website homepage and McEuen Park webcam. The blog tile ad offers good exposure to the LCDC and the LCDC tile ad will receive the same top left spot placement on the blog site that it held previously. The fee for the blog tile ad remains the same at $300/month. Mr. Erickson recommended that LCDC run the tile ad through July, 2014.

Motion by Commissioner Hassell, seconded by Commissioner Armon, to reactivate the LCDC Huckleberries blog tile ad at a cost of $300/month, with the tile ad beginning in April and ending in July, 2014. Motion carried.

Commissioner Davis, along with the other Board members, echoed Commissioner Patzer’s praise for Mr. Erickson’s work over the past two years, thanking him for all of his excellent communication work on behalf of the LCDC. 7. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns shared the following update: LCDC Annual Strategic Planning Session Ex. Director Berns shared that the LCDC Board will be holding its annual planning session on April 22, 2014 beginning at 7:30 a.m. at the Kroc Center. The public is welcome to attend the session.

FY14 Goals Review Ex. Director Berns reviewed the second quarter status of the Fiscal Year (FY) 2014 annual goals with the Board.

8. BOARD COMMISSIONER COMMENTS: No Board member comments were provided.

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9. PUBLIC COMMENT: No public comment was provided.

10. ADJOURN: Motion by Commissioner Armon, seconded by Commissioner Patzer, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 5:00 p.m. Minutes prepared and submitted by Ex. Director Berns.

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STRATEGIC PLANNING SESSION KROC COMMUNITY CENTER APRIL 22, 2014 MINUTES 1. CALL TO ORDER Chairman Davis called the Strategic Planning Session to order at 7:30 a.m.

LCDC Board members present: Hoskins, Armon, Hassell, Patzer, Davis, Goodlander, Jordan, Druffel. LCDC staff present: Berns. LCDC legal counsel present: Quade.

Community Stakeholder Guests: Steve Griffitts, Steve Widmyer, Joe Dunlap, Charles Buck, Rocky Owens, Todd Tondee.

General Public Guests: Frank Orzell, Mike Gridley, Keith Erickson, Teresa Molitor, Nicole Kahler.

2. WELCOME & SESSION OVERVIEW Chairman Davis welcomed LCDC Board members, invited guests and the general public to the strategic planning session.

3. INVITED GUEST PRESENTATIONS Mayor Steve Widmyer, City of Coeur d’Alene (CDA) Mayor Widmyer thanked the LCDC Board for the invitation and the opportunity to share his insights as to LCDC’s role in the community. Following are highlights from Mayor Widmyer’s presentation to the Board:  Job creation / job retention is the number one goal for the City working in partnership with LCDC, Jobs Plus and other community stakeholders. Discussed the benefits of the Twin Falls economic development model.  Further development of the Higher Education Campus (HEC), in partnership with the LCDC, North Idaho College (NIC), University of Idaho (UI) and Lewis Clark State College (LCSC) is another priority for the City. Construction of the proposed joint use building on the HEC should be a short-term goal for the HEC stakeholders.

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 The Four Corners master planning initiative is underway. The Mayor sees too much waterfront area currently tied up in surface parking (e.g. Independence Point parking area); this is an issue that needs to be addressed in the planning effort.  Planning for the future growth and development of the East Sherman Avenue / Lake CDA Drive area is a priority for the City. Looking to partner with numerous stakeholders on this initiative, including the City of Fernan.  Finally, continued development of new bike / pedestrian trails for the community is a priority for the City. The Mayor thanked LCDC for its past involvement with trail development, and hopes for future partnership opportunities on this front.  Commissioner Goodlander shared her concerns re. the loss of some handicap parking spaces in downtown due to recent street redesign efforts. She is also concerned about potential loss of the Independence Point parking lot area.  Mayor Widmyer shared that he would still recommend some limited parking spaces located at Independence Point, primarily for handicap access to that area.  Commissioner Patzer shared that some level of public parking needs to remain at the Independence Point area to service the commercial activity located on the dock.  Commissioner Patzer asked when might be the best time to consider moving forward with the planned public parking structure on the old federal building block (4th & Lakeside)?  Mayor Widmyer shared that he feels the downtown parking need issue should be revisited in about a year after the McEuen Park project impact on parking is better understood.  Commissioner Davis commented that one of LCDC priorities is to help with job creation / job retention. To that end, creating places for new job development is important. The old Atlas mill site property might be a great place for the community to set the table for job recruitment, and he would like to have the conversation continue re. the possibility of a potential technology and innovation campus in that area.  Mayor Widmyer agreed that the area along the Seltice Way corridor should be further evaluated for job creation opportunities.  Commissioner Armon commented that the Twin Falls economic development success story is not a new story. Commissioner Armon and Steve Griffitts visited the Twin Falls team 12 years ago to benchmark on their economic development strategy. The takeaway was that the Twin Falls team had/has a better process in place that aligns all stakeholders to common goals. They also have their elected politicians aligned with their development strategies, which is a key benefit in achieving success. Commissioner Armon shared that all stakeholders in northern Idaho need to become aligned on a cohesive economic development strategy, including elected officials.  Commissioner Jordan commented that he would like to see the cities of Post Falls and CDA work together more closely in the future.

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 Commissioner Patzer commented that he sees great value with all of the area’s urban renewal agencies working together on the economic development front, sharing best practices to benefit the entire region.

Todd Tondee, Chairman, Kootenai County Commissioners Commissioner Tondee thanked the LCDC Board for the invitation and the opportunity to share his insights as to LCDC’s role in the community. Following are highlights from Mr. Tondee’s presentation to the Board:  Re. the previous Twin Falls conversation: communities in that area worked together to develop quite a few incentives for the companies they recruited. Will that type of effort work in our community? Commissioner Tondee feels we have a good economic engine in our region, but lack some of the incentives other competing areas possess.  The County has hired a Boise-based consulting firm to help the County gather public input on their proposed campus master plan, which includes a proposed new six story justice building and new four story parking facility.  The County’s jail initiative is still being worked; evaluating several options.  The upcoming County election could be very impactful to the community; could change the entire leadership dynamic.  Commissioner Goodlander asked how the proposed campus master plan capital improvements would be funded?  Commissioner Tondee shared that the County has cash on hand to fund some of the proposed improvements, but may choose to go to a public vote depending upon the scope and scale of the actual capital improvements desired.  Commissioner Davis asked if the current justice building could be expanded?  Commissioner Tondee shared that one more story could be added to the current building, which would be insufficient for the County’s needs.  Commissioners Davis, Jordan and Patzer shared that they fully support continued development of the County’s downtown campus, stressing that it is critical for the health of the downtown that the County campus remain and prosper.  Commissioner Armon asked if a jail location has been determined?  Commissioner Tondee shared that the jail location will not be on any County-owned property. The jail will be located on private ground somewhere in the county, and the County will lease the facility from a private developer. Estimated cost for the jail initiative is in the $35-$40 million range.  Commissioner Davis shared that he hopes County leadership supports the urban renewal development model and appreciates the successes across the county to date.  Commissioner Tondee shared that he supports the tool and understands its value.

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Rocky Owens, Director, Lewis Clark State College (LCSC) Coeur d’Alene Mr. Owens thanked the LCDC Board for the invitation and the opportunity to share his insights as to LCSC’s initiatives and role in the community. Following are highlights from Mr. Owens’ presentation to the Board:  Times are good for higher education in Idaho. LCSC is growing, enrollment is up 9% for this coming fall, with record enrollment in the CDA area.  Most of the CDA growth is occurring from online programs, with most of the online students residing in Post Falls.  LCSC is and will remain closely tied to the downtown area and the HEC. LCSC will continue to grow via online students here locally and across the state. LCSC is constantly evaluating new programming ideas.  LCSC is still very committed to the proposed joint use building on the HEC, with needs shifting a bit from classroom space to more faculty office space.  Existing partnerships with NIC and UI are still very important. A key partnership initiative between Idaho’s higher education institutions is The Northern Idaho Consortium for Higher Education (NICHE). NICHE is coming out with a new slogan for northern Idaho: “five schools, one location”. The purpose of this new slogan is to tout the new HEC.  LCSC and its NICHE partners (NIC, UI, Boise State University, Idaho State University) have a huge and very positive economic impact on the local community.  Commissioner Armon asked what the proposed footprint is for the proposed new joint use building?  Mr. Owens indicated that an exact square footage has yet to be determined, based upon the final re-design of the initial building. Initial concepts called for a $24 million building. For budgetary reasons, the original concept for the building has been downsized by 50%. The new proposed $12 million building will be funded as follows: State of Idaho permanent building fund: $4 million; Colleges/Universities: $4 million; other sources (e.g. foundations, private sector): $4 million. LCSC has funds set aside for their share of the proposed college/university $4 million.

Steve Griffitts, President, Jobs Plus Mr. Griffitts thanked the LCDC Board for the invitation and the opportunity to share some of his organizations’ thoughts re. economic development and LCDC’s role on that front. Following are highlights from Mr. Griffitts’ presentation to the Board:  New technology innovation initiatives need to be included in the discussion re. future growth opportunities. Recently, folks bringing new insights and expertise re. technology innovation have arrived in the community offering the ability to capitalize on their energy and passion for new technology jobs in the area.  For example, the robotics technology field is a very plausible growth opportunity for the CDA area.  Attracting technology folks requires a certain type of “space & place” market offering.

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 This past session, the Idaho Legislature passed significant new economic development legislation entitled the Reimbursement Incentive Act. This new tool will allow the state to reimburse current or new employers certain taxes paid depending upon the type of jobs they create. This is a big deal for Idaho, helping Idaho to be more competitive with other states on the job creation front.  With regards to certain railroad issues pending in the area, Jobs Plus has a good relationship with the Burlington Northern Santa Fe (BNSF) railroad, and is willing to visit with BNSF folks on issues if asked.  Finally, Mr. Griffitts thanked LCDC for all they do in the community to create value, and to keep up the solid strategic thinking that will continue to move the community forward.  Commissioner Jordan asked if Jobs Plus had more money, what more could you do?  Mr. Griffitts shared that Jobs Plus leadership is looking into asking member organizations to slightly increase their annual contributions to Jobs Plus to allow the Jobs Plus team to increase their efforts on the job recruitment front. No specific contribution total has been determined yet.  Commissioner Jordan asked if Idaho suffers from a competitive disadvantage when compared to eastern Washington state when employers are considering relocation?  Mr. Griffitts shared that Washington state has a bit of an edge on Idaho re. technology infrastructure, but Idaho is catching up fast on that front. A lot of times the relocation decision comes down to where folks want to live.  Commissioner Patzer asked other than the materials received directly from Jobs Plus, where do companies go to glean information about CDA?  Mr. Griffitts shared that companies utilize online resources, like local newspapers and state-wide databases, to gather intel on communities they are considering for relocation. Jobs Plus provides as much material as they can to help companies make informed decisions.  Commissioner Druffel asked what LCDC can do for Jobs Plus to be of more help?  Mr. Griffitts shared that one opportunity will be on the technology infrastructure front, but what type of help that is still needs to be identified via input from the new technology folks relocating to the community.

Dr. Charles Buck, University of Idaho (UI) Associate Vice President/Center Executive Officer for Northern Idaho Dr. Buck thanked the LCDC Board for the invitation and the opportunity to share his insights on UI initiatives and the CDA 2030 visioning project. Following are highlights from Dr. Buck’s presentation to the Board:  UI has recently hired a new president, Dr. Chuck Staben. Dr. Staben’s vision for UI is yet to be seen; not sure how the new leadership will affect UI’s mission in northern Idaho (UICDA).

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 Dr. Staben has emphasized his past experiences & expertise in growing enrollment at higher education institutions, including online programming.  UI-CDA anticipates offering more online programming in the near future, exact programming still to be determined.  UI enrollment is currently about 11,500 statewide, with about 500 enrolled at UI-CDA. UICDA anticipates holding steady at the 500 student level for the next year, and hopes that online programming will help increase enrollment.  UI-CDA is focused on growth in high tech fields where possible; would like to see growth on the bio-medical front. UI-CDA is working with private sector folks to grow enthusiasm and investment re. the high tech fields.  Research is still very important from UI’s perspective. UI plans to focus efforts on contributing practical research solutions to communities.  UI-CDA is working with LCDC and other local stakeholders on the health care jobs initiative front, and views bio / health informatics jobs (i.e. jobs that mine and utilize health care data to better enhance health care results) as a jobs front to focus upon.  CDA 2030 visioning initiative: UI is very focused on the future, and that is what the CDA 2030 visioning initiative is all about. CDA 2030 has developed a very rich data set that has been derived from in-depth community surveys.  CDA 2030 data is in, and the CDA 2030 team is now working on an implementation plan.

It is anticipated that the City of CDA will take a lead role in the implementation effort, and the CDA 2030 team hopes the LCDC will also play a role in the implementation process, possibly contributing funds to help with consulting services, and meeting logistics.  Dr. Buck closed his comments by sharing that CDA needs to differentiate itself from other places to attract talent; e.g. the manner in which Boise created a whitewater river park on the Boise River – a very unique place that is an attractant to the city.  Commissioner Davis asked with regards to building research capacity, what are UI-CDA infrastructure needs?  Dr. Buck shared that high end lab space is always a critical need, and that may be one of the components pursued re. the proposed joint use building.  Commissioner Davis asked as to the current status of the proposed joint use building?  Dr. Buck shared that the new UI leadership may have an impact on capital dollar allocation. The proposed joint use building on the HEC is currently second on UI’s statewide priority list. The redesign of the original $24 million building to a $12 million dollar footprint is still pending.

North Idaho College (NIC) President Dr. Joe Dunlap Dr. Joe Dunlap, NIC President, thanked the LCDC Board for the invitation and the opportunity to share his insights regarding NIC’s role in the community and NIC initiatives. Following are highlights from his presentation to the Board:  Program partnerships are a key strategy for NIC, including:  the new Aerospace program partnership located at the CDA airport which helps support the composite industry.

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

  

 

The entrepreneurship program which works with individuals who have expertise in certain areas to develop sound business plans to help start new businesses.  The forest products program which works with local forest products companies to develop programs for folks seeking work in that industry.

NIC is also working with the Albertson Foundation to develop online career and technical programs for dual credit students.

NIC’s enrollment is down 10% this year, and NIC is budgeting for another 10% decrease next year. These enrollment decreases typically occur when the economy improves; more folks are working and fewer are going to school.

On the capital projects front, the proposed career and technical facility is now the primary focus for NIC. Planning for the facility is ongoing. Financing for the facility will be accomplished in one of two ways: general obligation bond or a leasing venue which would require judicial confirmation. NIC leadership hopes to have a recommendation to the Trustees by June of this year capturing the size/scope, cost and proposed location for the facility.

NIC is still very supportive of the proposed joint use building, and are enthused that Kootenai Health (KH) is strongly considering being a partner in the endeavor. NIC plans to re-evaluate potential programming for the facility based on KH’s involvement.

The joint use building partnership package, consisting of LCDC, NIC, UI, LCSC and KH, should be a great partnership package to take to the state’s permanent building fund seeking their help in financing the proposed building. Plans at this time call for approaching the legislature and building fund in early 2015 for potential state funding for the building in the state’s fiscal 2016 budget year.  Commissioner Goodlander asked how the original scope and scale of the joint use building got downsized?  Dr. Dunlap shared that the original $24 million building design was a three story building focused on classrooms, offices and a common student services area. The new design anticipates a two story building that would include some new lab space, plus a large meeting space (a KH request), plus smaller versions of the aforementioned classroom, office and student services areas.  Commissioner Armon asked if the career technical building footprint could fit on the HEC?  Dr. Dunlap shared that yes it could, depending upon the final scope and scale of the facility. The current proposal is shaping up to be about 150,000 sq.ft. that could be contained in a three story structure.  Commissioner Jordan asked if LCDC can play a role in helping to determine the location of the facility, thinking it makes a lot of sense for the facility to be located on the HEC.  Dr. Dunlap shared that yes, all stakeholders can make their intentions known to the Trustees.  Commissioner Armon asked if there are any near-term plans for structured parking on the HEC?

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

Dr. Dunlap shared that NIC is evaluating that issue, but feel they do not have a parking problem at this time, they just have a walking problem. So the need for more parking is not critical at this time. As the HEC builds out, the parking need will continually be evaluated.

Public Comment Mike Gridley: thanked the LCDC Board for their past, and hopefully continued support of bike/ped trails in the community. LCDC’s support was crucial for the development of the Prairie Trail. Mr. Gridley also thanked the Board for their insight in helping to bring the Kroc Community Center to CDA. Without LCDC’s strategic vision on property acquisition and community use, the Kroc Center would not have happened.

4. BOARD DISCUSSION: STRATEGIC (LONG-TERM) GOALS LCDC Executive Director Tony Berns facilitated the Board’s discussion re. LCDC long-term strategic goals for both the Lake and River Districts. The Board reviewed the existing list of key thematic LCDC goals, reviewed the input received by the invited guests and general public, and developed the following updated list for fiscal year 2015 (FY15): (goals are listed in no specific order of importance, updates to goals are highlighted in purple, strikethrough indicates goal achievement/goal removal):



Education: o Facilitate the future utilization of the Higher Education Campus (HEC) in partnership with the City, UI, NIC, LCSC, Fort Ground Neighborhood, and other community stakeholders.  Including possible LCDC partnership efforts focused on the “Four (4) Corner Area” (defined as the area of publicly owned property adjoining the Government Way, Northwest Blvd. & Mullan Avenue intersection, north to the Riverstone development).  Student/Faculty Housing: per ZGF Strategic Plan, “LCDC should work closely with both NIC and UI to evaluate the current housing situation and quantify future needs and types” throughout the Lake District.  Joint Use Building: work with NIC, UI and LCSC to bring creation of the Joint Use Building, located on the HEC, to fruition.



Job Creation & Retention o Continue partnership efforts with Jobs Plus, City of CDA and private employers to facilitate job creation and retention.



Workforce Housing: o LCDC will play a key support role in helping the City achieve its vision for workforce housing in the community, by pursuing workforce opportunities in both the Lake and River Districts.

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 

Midtown: Partner with The Housing Company to develop a mix use workforce housing project. continue to encourage mixed-use development supported by Midtown stakeholders.

Downtown: per ZGF Strategic Plan, “LCDC should explore formal and informal partnerships with local housing agencies, such as IHFA, to support the development of new affordable housing units”.



Public Space: Create New & Enhance Existing Public Space: o Partner with HEC stakeholders to identify and develop public space opportunities within the HEC area.  Four Corner Area should be explored for public space opportunities. o LCDC will partner with stakeholders to encourage connectivity of existing and new public space. o LCDC will continue efforts to secure long-term public access to the lake and river waterfronts (e.g. Mill River (Johnson) Park) and continue to leverage public funds to create new public parks (e.g. Riverstone Park). o Sherman Park - partner with City and Downtown Association on potential acquisition of this space as a permanent pocket park. o Seltice Way Roadway Improvements – partner with City and other stakeholders to improve the Seltice Way Roadway to facilitate continued River District growth opportunities. o Continuing Commitments:  Continued support of the CDA Public Library partnership by servicing the $900,000 site acquisition debt obligation.  Continue dialogue with pertinent stakeholders regarding possible railroad rightof-way property acquisitions.  Evaluate development and connectivity opportunities from the Four Corner area to Mill River.



Public Parking: o LCDC, in partnership with the City and the Downtown Association, will help to rationalize and plan for downtown structured parking facilities, possibly including a downtown mixed-use parking facility, and help in rationalizing overall parking needs for the Central Business District (CBD), HEC and Kootenai County campus areas.



Midtown Vitalization: o LCDC will partner with the City, Midtown property owners, Midtown businesses, Midtown residents, and Midtown stakeholders on opportunities to enhance the vitality of the Midtown area.



Downtown Vitalization: o LCDC will partner with the City, Downtown property owners, the Downtown Association, Downtown residents and Downtown stakeholders on continued economic support to enhance the vitality of the Downtown; e.g. establishment of viable downtown pocket parks, LID partnership endeavors where appropriate (e.g. CDA Avenue improvements from 1st Street eastward).

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5. BOARD DISCUSSION: ESTABLISHMENT OF FY15 GOALS Following the refinement of the LCDC long-term strategic goals, Executive Director Berns reviewed the current FY14 goals with the Board, and facilitated the Board discussion that resulted in the establishment of FY15 goals.

LCDC Fiscal Year 2014 (FY14) Tactical Goals FY14 LCDC Board Goals - Both Districts Committee Theme Responsible Public Space

Communication

District / Success Measures

Status

Ad hoc: BJ, DG, AH

1)

Lake: McEuen Park: construction of city approved improvements completed.

green

Acquisition

2)

LCDC: acq. and planning re. abandoned RR r-o-ws from HEC to Huetter Rd.

green

Ad hoc: BJ, DP, AH, JD

3)

Lake: Four Corners public space opportunities explored

green

Communication

1) 2)

LCDC: community leaders / stakeholders invited regularly to Board meetings LCDC: communication strategy: continued implementation

green green

3)

LCDC: 1 (stretch 2) ULI-Idaho programs held in CDA in FY14

green

4)

LCDC: 2030 Visioning Initiative – partner with other stakeholders to get effort complete in 2014 Lake: Student/faculty housing & Joint Use Building opportunities identified thru collaboration with higher education institutions and experts in the field

green

HEC

Ad hoc: SH, DD, JD

Finance

Finance

Parking

Parking

Work Force Housing

Housing

Jobs

Ad hoc: DP, DD, SH

LCDC: continue frequent review of district economic forecasting models

green

1)

Lake: land assemblage for future downtown parking facility continued

green

2)

Lake: parking needs rationalized for CBD (McEuen Park temp. parking), County campus, & HEC areas

green

1) 2)

LCDC: workforce housing project opportunities identified (IHFA & private sector) Lake: Partner with IHFA to identify future Midtown opportunities

green green

LCDC: Evaluate local job related statistical data to identify pro-active partnership opportunities

green

April , 2014 Status

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LCDC Fiscal Year 2015 (FY15) Tactical Goals

FY15 LCDC Board Goals - Both Districts Committee Theme Responsible Public Space

Communication

Status

District / Success Measures

Ad hoc: BJ, DG, AH

1)

Lake: McEuen Park: construction of city approved improvements completed.

Acquisition

1)

LCDC: acquisition and planning re. abandoned RR r-o-ws from HEC to Huetter Rd.

green

Ad hoc: BJ, DP, AH, JD

2)

Lake: Four Corners public space opportunities explored

green

3)

River: Atlas mill site area within LCDC scope with public space opportunities explored

1) 2)

LCDC: community leaders / stakeholders invited regularly to Board meetings LCDC: communication strategy: continued implementation

green green

3)

green

Communication

HEC

Ad hoc: SH, DD, JD

LCDC: 1 (stretch 2) ULI-Idaho programs held in CDA in FY14 LCDC: 2030 Visioning Initiative – partner with other stakeholders to implement action plan get effort complete in 2014 Lake: Student/faculty housing & Joint Use Building opportunity pursued ies identified thru collaboration with higher education institutions and experts in the field

Finance

Finance

LCDC: continue frequent review of district economic forecasting models

green

Parking

Parking

1)

Lake: land assemblage for future downtown parking facility continued

green

2)

Lake: parking needs rationalized for CBD (McEuen Park temp. parking), County campus, & HEC areas

green

1) 2)

LCDC: workforce housing project opportunities identified (IHFA & private sector) Lake: Partner with IHFA/THC to bring identify future Midtown mix-use project to fruition opportunities

green

4)

Work Force Housing Jobs

Housing

green

LCDC: Evaluate local job related statistical data to identify pro-active partnership opportunities

Jobs 1)

LCDC: Continue health care jobs exploration initiative with partner stakeholders

green

2)

River: Atlas mill site area within LCDC scope with job creation opportunities explored

green

3)

LCDC: High tech job partnership opportunities explored

green

April , 2014 Status

Note: Goals with a “green” status are considered progressing well. A “yellow” status would mean a goal may be in jeopardy of not being achieved during the year, and a “red” status would mean that the goal is in definite jeopardy of non-attainment.

The Committee structure employed to achieve the aforementioned goals is as follows (Committee Chair denoted by asterisk): Committee Acquisition Finance Housing Communication Parking Jobs

green

Membership Goodlander*, Jordan, Davis, Druffel Colwell*, Patzer, Davis, Armon Goodlander*, Hoskins, Hassell Patzer*, Goodlander, Davis, Hoskins Jordan*, Hassell, Hoskins Armon*, Hoskins, Patzer, Druffel

6. EXECUTIVE DIRECTOR REPORT Ex. Director Berns invited LCDC’s government relations consultant Teresa Molitor to join the meeting. Ms. Molitor shared that she appreciated the comments heard today re. the need for a unified political focus from the elected representatives from northern Idaho. Northern Idaho needs to develop that “team” presence in Boise that the Twin Falls area has cultivated over the LCDC Planning Session Minutes

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years. Ms. Molitor also commented on how important the May 20th primaries will be statewide: depending upon the outcomes, one could see a very different look next session in Boise.

7. ADJOURN Motion by Armon, seconded by Hoskins to adjourn. Motion carried.

The LCDC meeting adjourned at 11:35 a.m.

Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

MAY 21, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Jordan, Armon, Davis, Hoskins, Patzer, Colwell, Druffel. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Nick Smoot, Andy Huska, Frank Orzell, and one other.

No public comment was provided.

4. APPROVAL OF MINUTES  April 16, 2014 Board Meeting Minutes  April 22, 2014 Strategic Planning Session Minutes Motion by Commissioner Armon, seconded by Commissioner Druffel, to approve the April 16, 2014 Board meeting minutes. Motion carried.

Motion by Commissioner Hoskins, seconded by Commissioner Goodlander, to approve the April 22, 2014 strategic planning session meeting minutes. Motion carried.

5. PRESENTATION: TECHNOLOGY-RELATED GROWTH OPPORTUNITIES – Nick Smoot & Andy Huska Commissioner Davis welcomed Mr. Smoot and Mr. Huska to the board meeting.

Messrs. Smoot and Huska shared their background with the Board, indicating that they both grew up in the community, went away for a while, and now are back to help lead LCDC Meeting Minutes

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the community into new technology fields. They shared that CDA has a missing technology component in the local economy, specifically involving start-up companies; an issue that they hope to correct. They both believe CDA has a very bright future in technology start-up companies, with a focus on the robotic industry. Efforts are underway to recruit young/new talent to the area, with the draw being the area’s low cost of living, beautiful area to live and raise a family, a decent nearby airport, and the presence of quality financial and mental capital.

Informal gatherings (e.g. fireside chats, coffee & concepts) are occurring now in the community, connecting budding talent with resources (e.g. mentors, investors) to help budding entrepreneurs deal with real world business issues like: where can one get business plan help, where can one lease affordable space, how does one get the appropriate insurance for a startup. One identified need that the LCDC may be able to help with is the need for a physical location in the CDA core area where these start-up entities could be housed (i.e. an incubator type location); a type of “innovation avenue”.

The ideal situation would be to develop some type of “innovation campus” that is large enough to handle the necessary incubator space as well as technology conferences.  Commissioner Armon asked how large of a space is needed?  Mr. Smoot shared that a building footprint in the 10,000 to 15,000 sq.ft. range would be good; 20,000+ sq.ft. would be great. The preferred location for a facility of this size would be in downtown CDA.  Commissioner Jordan asked how important is a higher education degree in the technology field?  Messrs. Smoot and Huska shared that higher education matters, but it is not the only path. They are working with Dr. Charles Buck (University of Idaho CDA) to one day hopefully move the software program from the University’s Moscow campus to CDA. Higher education recruits young talent to the area, and university research is important to the high tech industry.  Commissioner Jordan asked if CDA, and Idaho in general, suffers from competitive disadvantages compared to other areas in the country?  Mr. Smoot shared that yes there are some challenges for the CDA area re. attracting talent, but the positives outweigh the negatives. There are always issues for communities to overcome, but CDA has a huge amount of potential.

CDA can be a better startup community vs. Spokane.  Commissioner Patzer commented that he liked the term “positive dissatisfaction” as used by Mr. Huska. It is refreshing to hear the optimism that these gentlemen bring to the community. Commissioner Patzer asked them both to keep sharing their message / telling their story in the community.  Commissioner Armon commented that the new LCDC Jobs Committee was recently formed, and that the committee will hopefully be able to address some of

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the opportunities presented today, and looks forward to further engagement with Messrs. Huska and Smoot.

6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Finance Committee Chair Rod Colwell reviewed and discussed the April Lake and River District financial statements, and the April / May account payables sheet, with the Board.

Motion by Commissioner Druffel, seconded by Commissioner Hoskins, to approve the April financial statements and the April / May accounts payables for the Lake & River Districts as presented. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared The Housing Company (THC) is moving forward with the redesigned Midtown mix-use housing initiative proposal, and is still targeting the September, 2014 tax credit application window.

If successful in obtaining federal tax credits to help finance the project, THC plans to break ground on the project in the spring of 2015. The project redesign includes a 4,000 square foot pocket park located on the corner of Roosevelt and 4th Street.

The inclusion of the pocket park element does not change the building configuration; the building envelope just moves a bit to the north on 4th Street.

Inclusion of the pocket park element will call for a slight realignment of the project’s proposed parking solution.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan shared that he had no report to provide; the City Parking Commission meets next on June 3rd.  Commissioner Colwell asked if there will be any free parking available in the new McEuen Park parking facility?  Commissioner Jordan shared that he understands the first two hours of parking at McEuen Park will still be free, and folks parking at McEuen Park will now need to use the parking kiosks to gather their parking slips.

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 Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the May LCDC newsletter was distributed on May 20th. Topics covered in the May issue of the newsletter include:  Four Corner project update,  McEuen Park project update,  Pursuing Prosperity article (reprint from newsletter issue #11)  Community profile: Keith Erickson Commissioner Patzer also shared that LCDC has been approached by the Range organization re. a communication proposal. Range would like to offer their communication talents to help LCDC with ongoing communication efforts. Range will provide LCDC with a proposal outlining their proposed communication services. Once received, the Communication Committee will gather to discuss the Range proposal.  Commissioner Colwell suggested that it would be beneficial to explain to the public some of the background details associated with the new McEuen Park; e.g. how efficiently water will be utilized in the park for irrigation and running the splash pad.  Commissioner Patzer concurred, and shared that he will visit with the City’s Parks Department re. the development of a McEuen Park fact sheet.  Commissioner Goodlander agreed with Commissioner’s Colwell’s suggestions, sharing that it is very important for the public to understand how efficiently the public’s investment in the park is being managed.  Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon shared that the newly formed committee (committee formed at the April strategic planning session) will hold its first meeting later this month to determine committee strategies/goals. Commissioner Armon was very impressed with the visit by Messrs. Smoot and Huska, and that he envisions future dialogue with these gentlemen.

7. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns shared the following updates: Atlas Mill Site Feasibility Study (please refer to the February 19, 2014 LCDC Board meeting minutes for more background on this issue) Ex. Director Berns shared that he presented the Atlas mill site feasibility study to the Kootenai County Board of Commissioners (BOCC) on Wednesday, May 21st. Since a LCDC Meeting Minutes

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portion of the Atlas mill site resides in Kootenai County, the BOCC needs to agree that this geographic area is eligible for urban renewal treatment prior to taking the eligibility initiative forward to the CDA City Council. The BOCC’s legal counsel raised some Idaho Code statute interpretation issues that will require a conversation with Ms. Quade, LCDC’s legal counsel; that conversation will happen in the very near future.

Ex. Director Berns shared that he will keep the Board apprised as to the progress with the BOCC. Four Corner Master Plan Initiative Commissioner Patzer shared that the Welch-Comer consultant team will be recommended to City Council by the Four Corner project selection team (City of CDA Mayor Widmyer, Mr. Patzer, Scott Cranston [City of CDA Parks & Rec Commission], Steve Anthony [City of CDA Recreation Director], Bill Greenwood [ City of CDA Parks Director]) as the master planning consultant for the Four Corner project.

Commissioner Patzer shared that the three teams who submitted qualifications for the project were all very talented local consulting firms, which is a great testament to the quality of professionals we have in the community. Commissioner Patzer shared that it was not an easy decision, and also not a unanimous decision, to choose one firm from the three applicants; it was a very competitive process.

If approved/selected by City Council, the City will begin the process of negotiating a professional services contract with the Welch-Comer consultant team in early June.

Molitor & Associates Governmental Relations Contract Renewal Ex. Director Berns reviewed with the Board the proposed Teresa Molitor government relations contract renewal for 2015. The only modification to the 2015 contract is an increase of annual compensation from $20,000 to $22,000; all government relations deliverables to LCDC remain unchanged. Ms. Molitor has been providing contract government relations services to LCDC since 2007 for the same annual compensation.

Costs of doing business have risen, thus Ms. Molitor’s overture for an increased annual compensation amount. Ex. Director Berns recommended that the Board support the proposed compensation modification, since Ms. Molitor’s year-round government relations efforts on LCDC’s behalf have proven very successful.

Motion by Commissioner Armon, seconded by Commissioner Goodlander, to approve the renewal of the Molitor & Associates government relations contract as presented. Motion carried.

McEuen Park Dedication Ex. Director Berns shared with the Board and viewing audience that the dedication of McEuen Park will occur at 11:00 a.m. on Saturday May 24th. The dedication ceremony will be held in the Grand Staircase area of the park. Following the ceremony, food and music will be available to the general public in the new Pavilion area, compliments of the CDA Downtown Association.

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8. BOARD COMMISSIONER COMMENTS: Commissioner Jordan shared that he really enjoyed the visit earlier in the meeting with Messrs. Smoot and Huska, and was pleased to hear how important quality of life amenities, like the new McEuen Park, are to attracting very talented folks to the CDA area.

9. PUBLIC COMMENT: No public comment was provided.

10. ADJOURN: Motion by Commissioner Hoskins, seconded by Commissioner Colwell, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 5:13 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

JUNE 18, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:10 p.m.

LCDC Board members present: Goodlander, Jordan, Armon, Davis, Hoskins. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Frank Orzell, Eden Irgens, Bill Greenwood, Phil Boyd, Troy Tymesen, Dell Hatch, Teree Taylor, Keith Erickson, Scott Cranston, Greg Johnson.

No public comment was provided.

4. APPROVAL OF MINUTES  May 21, 2014 Board Meeting Minutes Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, to approve the May 21, 2014 Board meeting minutes. Motion carried.

5. PRESENTATION: FOUR CORNERS MASTER PLAN INITIATIVE Bill Greenwood, City of CDA Parks Department Phil Boyd, Welch-Comer Engineers Background: Please refer to the February 19, 2014 LCDC Board meeting minutes for background on this initiative, where the LCDC Board agreed to an LCDC partnership funding level not to exceed 75% of the actual planning consultant negotiated cost for the master planning effort.

Commissioner Davis welcomed Mr. Greenwood and Mr. Boyd to the board meeting.

Mr. Greenwood provided initiative background to the Board, including the LCDC Meeting Minutes

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review/selection team’s process used for the selection of the Welch-Comer (WC) planning team. The review/selection team worked with WC to develop a project scope for the planning initiative, and to develop a fee for the WC planning services: $118,220.

Mr. Greenwood also shared that the negotiated timeline for the planning initiative calls for plan completion by the end of this calendar year. Mr. Boyd shared a PowerPoint overview presentation with the Board re. the proposed Four Corner master planning initiative. Following are key slides from that presentation.

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Following Mr. Boyd’s presentation, Mr. Greenwood asked the LCDC Board to consider funding 75% of the negotiated master planning consultant fee of $118,220, which equates to $88,665.  Commissioners Armon and Davis asked Mr. Greenwood to describe the boundaries of the proposed Four Corner planning area.  Mr. Greenwood provided such a description for the Board and viewing audience.  Commissioner Armon asked if the City is confident they can raise the remaining 25% of the funds needed to engage the WC planning team?

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Mr. Greenwood shared that yes, he is very confident of securing the needed funding from various partner entities, e.g. North Idaho College.

Commissioner Armon suggested that the City also contact Kootenai County and the Hagadone Corporation for possible partnership funding.

 Commissioner Davis shared that this geographic area of the city is a key area of the community that needs some improvement; a great opportunity for enhanced public space.  Commissioner Goodlander shared that the Bureau of Land Management (BLM) controlled property in the study area is a key portion of land that is critical to be well planned.

February 19, 2014 Board motion: Motion by Commissioner Goodlander, seconded by Commissioner Jordan, authorizing LCDC partnership funding for the City of CDA Four Corner master planning initiative, at a partnership funding level not to exceed 75% of the actual planning consultant negotiated cost for the master planning effort, with the LCDC having input into the scope of the RFQ process. Motion carried.

Motion by Commissioner Armon, seconded by Commissioner Hoskins, authorizing LCDC partnership funding for the City of CDA Four Corner master planning initiative with the Welch-Comer planning team in an amount not to exceed $88,665 (75% of the negotiated contract amount of $118,220), with LCDC funding contingent on the other 25% of required funds being secured by the City of CDA to meet the total negotiated consultant fee commitment of $118,220. Motion carried.

6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Ex. Director Berns, in Finance Committee Chair Rod Colwell’s stead, reviewed and discussed the May Lake and River District financial statements, and the May / June account payables sheet, with the Board.

Motion by Commissioner Goodlander, seconded by Commissioner Armon, to approve the May financial statements and the May / June accounts payables for the Lake & River Districts as presented. Motion carried.

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 Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that The Housing Company (THC) is still working on moving the redesigned Midtown mix-use housing initiative proposal forward, and is currently addressing some federal tax credit program qualification/scoring modifications that arose this year.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan, who serves as the LCDC representative on the City’s Parking Commission, shared that the McEuen Park parking structure is up and running, with the City still working out a few startup issues involving the pay kiosks. The City also plans to address some parking signage issues at the park to help the public better navigate the parking area. Additionally, the City is addressing the issue of handicap parking spaces in the downtown area, making sure that the City is in compliance with all handicap parking requirements.  Communication Committee – Commissioner Dave Patzer LCDC Ex. Director Berns, in Communication Committee Chair Dave Patzer’s stead, shared that the June LCDC newsletter will be distributed in the near future.

Topics covered in the June issue of the newsletter include:  Four Corner project update,  Midtown workforce housing – mix use building project update,  Saving Sorenson article (reprint from newsletter issue #12)  Community profile: Dr. Charles Buck, University of Idaho Ex. Director Berns invited Eden Irgens, principal with the Range NW Company, to visit with the Board. Ex. Director Berns shared that LCDC has been approached recently by the Range NW Company re. a communication outreach proposal.

Range NW would like to offer their communication talents to help LCDC with ongoing communication efforts.

Mrs. Irgens shared that the Range NW proposal consists of three (3) phases:  Phase 1: conduct a survey of the community to identify key communication issues to focus upon, and to engage Range NW on a monthly retainer offering communication support. Two survey options:  Formal scientific survey with a representative sample of the CDA population, both online and via phone: $24,500, conducted by the University of Idaho (this option recommended by Range NW).  Non-representative, informal survey. This survey will be done online and promoted through social media, a press release and emails. This outcome will not be considered representative of the population: $2,500, conducted by Range NW.

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Phase 2: Identity Update – pending the outcome of the survey conducted in Phase 1, evaluate an LCDC identity update which would include an LCDC website update/makeover and possibly a brand update. This phase would focus on creating an LCDC communication venue that is easier for the community to understand.

Phase 3: Short “Burst” communication initiatives designed to share LCDC successes in the community, conveying the message that LCDC is working hard to better the community.

Mrs. Irgens discussed the various facets of the proposal with the Board, and recommended the LCDC stop producing a monthly newsletter which reaches a rather small audience, and instead focus its resources on more effective “burst” communication initiatives which would touch many more folks in the community.  Commissioner Jordan shared that he agrees that LCDC needs to enhance communication efforts with the community and help make what LCDC does more understandable to folks. Commissioner Jordan shared that he is a bit concerned about potential rebranding and burst campaigns, and the proposed cost of the UI survey.  Mrs. Irgens shared that LCDC needs to focus on messaging, to hit that “sweet spot” where folks can understand and appreciate what LCDC is doing.  Commissioner Davis shared that the Range proposal really helps to focus LCDC efforts on continued messaging and not marketing/promotion; LCDC needs to get accurate information out to the community in an understandable way.  Commissioner Davis shared that the Communication Committee as a group recommends that the LCDC engage Range NW for Phase 1 of their proposal.

The UI scientific polling survey will be very beneficial to help the Board with messaging. Additionally, the information gathered from the UI effort will also be beneficial to City of CDA leadership.  Commissioner Goodlander shared that she was a bit concerned initially about the cost of the proposed UI survey, but now believes that the UI survey results will be well worth the investment, and valuable to the City Council.  Commissioner Armon asked about the scope of the UI survey?  Mrs. Irgens shared that scope development of the UI survey will involve participation from the LCDC, Range and the UI. The survey demographic (i.e. population sampled) will also be determined by the three aforementioned entities. The UI survey will be a telephone survey including both land line users and cell phone users. UI will determine the minimal number of survey contacts needed to create a scientific-based result outcome.

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 Commissioner Jordan shared that he is a bit concerned about spending that amount of money for the UI survey, but supports the concept. Can the lower cost non-scientific survey option proposed by Range NW provide similar results to the UI survey?  Commissioners Armon and Davis shared that informal survey results cannot be relied upon for decisive action based upon the biases inherent in such informal surveys.  Commissioner Armon shared that he would like to gain a better understanding of how the UI survey would work (e.g. defined deliverables) prior to moving forward on the survey initiative.  Commissioner Davis asked Mrs. Irgens to gather some more detailed structural information re. the UI proposed survey, and re-visit this issue with the Board at the July Board meeting.

Motion by Commissioner Hoskins, seconded by Commissioner Goodlander, authorizing LCDC to engage Range NW on a $400/month contract retainer, for approximately four (4) hours of contract communication support per month, with a 30 day notice provision allowing for termination of the retainer agreement. Motion carried.  Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon shared that the committee held a meeting recently with community stakeholders interested in the creation of technologyrelated jobs in CDA. Meeting participants in addition to the committee members were Steve Meyer, Mayor Widmyer, Mike Patrick, Nick Smoot, Cody Peterson, Andy Huska, Charles Buck (UI), Larry Briggs (NIC) and Jamie Davis (Jobs Plus).

It was a very exciting gathering hearing the visions and potential opportunities from folks fully engaged on this front. A key question asked by the committee to the attendees was how can LCDC partner in helping to create high tech jobs in the community? The answer to this question will be multi-faceted.

One current partnership opportunity on the high tech job front involves an upcoming event in CDA sponsored by the Innovative Collective, which is led in part by Nick Smoot and Andy Huska who visited with the Board in May. The Innovative Collective is hosting a “Think Big Festival” on August 15th at North Idaho College. The intent of the “festival” is to educate and empower entrepreneurs by focusing on the speed at which technology is moving and CDA’s role in its progression. The August 15th event will focus on the field of robotics.

The Jobs Committee felt that the Innovative Collective is helping to lead the way in encouraging technology-related job growth in the community, and that this festival idea is a good move along that front. The committee recommended the Board

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consider a $1,000 sponsorship level for this August 15th event to show LCDC’s support of these job creation-related initiatives.

Motion by Commissioner Armon, seconded by Commissioner Hoskins, authorizing $1,000 in LCDC sponsorship funding for the August 15, 2014 Innovative Collective’s “Think Big Festival”.

Discussion: The Board discussed the potential power/impact of this initiative for the CDA community.

Amended motion: Commissioner Jordan motioned that the LCDC sponsorship funding for the August 15, 2014 Innovative Collective’s “Think Big Festival” be increased to $2,000. Commissioners Armon and Hoskins agreed to this amended motion. Motion carried.

7. EXECUTIVE DIRECTOR’S REPORT Ex. Director Berns had no report to share.

8. BOARD COMMISSIONER COMMENTS: Commissioner Davis shared that he has heard that NIC leadership is strongly considering locating the new NIC career/technical facility on the downtown Higher Education Campus (HEC), and not on the KTEC campus (Rathdrum) or in the Jacklin Seed Facility (Post Falls). The potential decision is in line with the NIC-engaged consultant recommendation to locate the facility on the HEC. Commissioner Davis is concerned that placing this type of facility in an urban area (i.e.

HEC) may be detrimental in the long run re. the goal of recruiting higher level academic programs to the HEC. Additionally, this type of facility would not be a good fit for a campus that borders an historic urban residential neighborhood.

Commissioner Armon shared that he has read through the NIC consultant study, and that all three proposed sites have positives and negatives. The KTEC & Jacklin location negatives involve their distance from the main NIC campus; there is a desire to minimize the required travel of students. The KTEC location has available space for this new facility but would need to replicate services that currently exist on the main NIC downtown campus. Having automotive and diesel programs on the HEC could present some challenges given the space needed to house some of the needed equipment for such a facility.

9. PUBLIC COMMENT: No public comment was provided.

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10. ADJOURN: Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 5:28 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

JULY 16, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Patzer, Druffel, Armon, Davis, Hoskins, Hassell. LCDC staff present: Berns. LCDC legal counsel present: Quade (HawleyTroxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Eden Irgens, Nick Smoot, Frank Orzell, Scott Hoover, Greg Johnson, Teree Taylor and others.

No public comment was provided.

4. APPROVAL OF MINUTES  June 18, 2014 Board Meeting Minutes Motion by Commissioner Goodlander, seconded by Commissioner Armon, to approve the June 18, 2014 Board meeting minutes. Motion carried.

5. PRESENTATION: CDA INNOVATION CENTER – Nick Smoot Background for this presentation can be found in the May 21, 2014 & June 18, 2014 LCDC Board meeting minutes.

Commissioner Davis welcomed Mr. Smoot to the board meeting. Mr. Smoot shared a PowerPoint presentation with the Board pertaining to the possibility of the LCDC partnering with the Innovative Collective team to create a CDA Innovation Center on the property owned by LCDC located south of city hall next to Tubbs Hill. Following are some key slides from the PowerPoint presentation:

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During his presentation, Mr. Smoot provided background on the Innovative Collective entity, and shared that he has discussed this proposed project with local stakeholder groups, the city’s planning department, neighborhood groups, and the Tubbs Hill Foundation. All of the entities/stakeholders contacted re. this project to date are supportive of the concept.  Commissioner Davis asked about the proposed square footage of the project?  Mr. Smoot shared that the current concept calls for a 20,000-25,000 square foot building envelope, not exceeding two stories in height.  Commissioner Goodlander shared that she felt the proposed building footprint was quite large.  Commissioner Druffel asked about parking; will there be onsite parking, possibly including below grade parking?  Mr. Smoot shared that ideally, the project would have parking on site and would be able to use a portion of the adjacent existing city public parking lot. Mr. Smoot is still discussing this issue with the city.  Commissioner Goodlander asked if Mr. Smoot was asking LCDC for a commitment at this time?  Mr. Smoot shared that he would like LCDC to be open to this overture. His team has looked at other sites in the CDA area, but feel the LCDC property location is the best spot for the Innovation Center.  Commissioner Druffel shared that there is quite a bit of existing available commercial space in the downtown CDA area, why does a new facility need to be built?  Mr. Smoot agreed that there is available commercial space downtown, but the space does not meet the need for the Innovation Center. None of the existing space can offer the experience that a facility like this would generate. The marriage of location, plus design, plus collaborative culture will make the proposed Innovation Center work.  Commissioner Patzer asked how many folks would be employed at this type of Center, and what is the expectation for job growth / job spin off from this type of Center?  Mr. Smoot shared that the premise for the Center is to have companies come in, collaborate with others, utilize the accelerator space & incubator space, then move out of the Center when they reach a size of 20 or so employees. The hope/plan is to have these companies then stay in the area and move into existing commercial space.  Commissioner Patzer shared that in earlier conversations, Mr. Smoot suggested that a technology campus should be the goal for CDA, has that changed?  Mr. Smoot shared that he now feels that the first step is to have the Innovation Center developed on this proposed site, and work towards the technology LCDC Meeting Minutes

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campus down the road if the Innovation Center can generate the energy/demand for such a campus.  Commissioner Davis asked what is the proposed ownership model for this project?  Mr. Smoot shared that he envisions a for-profit corporation building and owning the facility, with said corporation then working with tenants on lease/rent space.

Mr. Smoot also shared that if the for-profit model is not the best approach to use in working with the LCDC, then he would be open to considering a nonprofit business model approach.  Commissioner Goodlander shared that she feels some further planning needs to occur re. this proposed project, specifically re. the parking component.

Commissioner Goodlander also shared that she is very supportive of the project concept, but has some concerns that this type of project is not the best fit for the LCDC owned property south of city hall.

Commissioner Davis thanked Mr. Smoot for this initial presentation and discussion, and encouraged him to continue working with the LCDC on this proposed initiative.

6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Ex. Director Berns, in Finance Committee Chair Rod Colwell’s stead, reviewed and discussed the June Lake and River District financial statements, and the June / July account payables sheet, with the Board.

Motion by Commissioner Druffel, seconded by Commissioner Patzer, to approve the June financial statements and the June / July accounts payables for the Lake & River Districts as presented. Motion carried.

Recusal: Commissioner Davis recused himself from voting on approving the following payable items since his organization works/has worked with or for the applicant or principals of these organizations on initiatives unrelated to the payable items: the three “Riverstone West” payable items, and the Mill River Seniors Apartments payable item.

Draft Fiscal Year 2015 (FY15) Budget Discussion Executive Director Berns led the Board through an overview discussion of the draft FY15 budgets for the Lake & River Districts (summary table below). These draft budgets have been reviewed in detail by the Finance Committee. Ex. Director Berns also shared that under Idaho urban renewal law, urban renewal agencies are required to prepare and finalize budgets prior to September 1st of each year.

Therefore, the LCDC Board needs to review draft budgets at the July Board LCDC Meeting Minutes

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meeting, and authorize publication of the draft budgets prior to the August Board meeting where a public hearing is held on the proposed budgets.

LCDC Draft Fiscal Year 2015 Budget Revenues Estimated Tax Increment Property Rental Receipts Int. & Misc. Funds WTB Bond Draw Capital: Acquisition Financing

Lake District $ 4,336,966 $ 143,551 $ 2,796 $ 1,250,000 $ 350,000 Total $ 6,083,313

River District $ 1,946,946 $ $ 3,684 $ $ $ 1,950,630

Total $ 6,283,912 $ 143,551 $ 6,480 $ 1,250,000 $ 350,000 $ 8,033,943

Expenses Administration Services/Supplies/Interest & OPA/IRA Debt Service Capital: Acquisition & Property Debt Service Total

$ 89,899 $ 1,906,454 $ 4,323,981 $ 6,320,334

$ 89,899 $ 1,043,443 $ 400,000 $ 1,533,342

$ 179,798 $ 2,949,897 $ 4,723,981 $ 7,853,676

Summary Estimated Beginning Fund Balance (10/1/14) Revenues Expenses Estimated Ending Fund Balance (9/30/15)

$ $ $ $

$ $ $ $

$ $ $ $

2,179,422 6,083,313 6,320,334 1,942,401

4,122,972 1,950,630 1,533,342 4,540,260

6,302,394 8,033,943 7,853,676 6,482,661

Key FY15 budget issues discussed with the Board: Revenues:  2013 levy rates for applicable taxing entities are used in the draft district budgets to determine estimated tax increment revenues. For 2014, preliminary assessment values show the Lake District experiencing a $20.7 million pre-BOE property valuation increase over the previous year, and the River District a $16.3 million pre-BOE property valuation increase over the previous year.

These valuation increases result in a Lake District estimated FY15 tax increment (TI) revenue of $4.3 million, and a River District estimated FY15 TI revenue of $1.9 million.  The Lake District draft budget calls for a $1.25 million bond draw on the Washington Trust Bank (WTB) line of credit for FY15; thus concluding LCDC draws on the existing WTB Lake District line of credit. Bond proceeds can be used for expenses such as land acquisition, and capital improvements associated with a project such as the 4 Corners.  70% bank financing is proposed to help finance the capital acquisition expense in the Lake District.

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Expenses:  Public Art: 2% of TI revenue transfers to the City Arts Commission for future public art projects located within the LCDC districts: $86,739 for the Lake District; $38,939 for the River District.  Professional Services: The draft budgets include costs for LCDC’s professional contract services for accounting (Gourley & Associates), legal counsel (Hawley-Troxell and Elam & Burke), external audit, community relations (Range NW, Inc.), and government relations (Molitor & Associates).  Planning: funds are budgeted for professional planning expenses for potential district-related initiatives (e.g. Lake District: $90,000 towards the 4 Corner master planning effort; River District: $250,000 towards engineering planning for proposed Seltice Way roadway improvements).  Special Project Reserves:  The Lake District budget special project reserve line item contains funding for property demolition and site rehabilitation efforts (possibly 712 & 722 Young Avenue properties), and potential funds for possible redevelopment work associated with the 4-corner project (including the BLM property corridor) area should the Board so choose to allocate funding to that initiative in FY15.  The River District budget special project reserve line item contains funds for potential CityLink capital improvements ($250K) in the Riverstone area, plus funds ($100K) for potential Johnson Park (Mill River area) capital improvements.  Lake District: As per the LCDC agreement with WTB, a $2,080,000 annual bond payment is included as an expense in the FY15 Lake District budget.  Lake District: $71,200 is budgeted for improvements associated with the 823 & 845 4th Street properties, and the 839 3rd Street property related to the proposed Midtown mix-use project.  Lake District: budget includes a $43,750 grant to the CDA Downtown Association (DTA) to assist in funding the costs associated with the DTA events program.

Motion by Goodlander, seconded by Hoskins, to authorize the LCDC Executive Director to publish the proposed FY15 draft LCDC budget as presented in the CDA Press prior to the August 20, 2014 budget public hearing date. Motion carried.

FY14 Q3 Quarterly Report Executive Director Berns shared the Fiscal Year 2014 third quarter (FY14 Q3) report with the Board, asking Board members to review the package at their convenience, and to contact him with any questions.

Demolition of 518 N. Park Avenue Residence Ex. Director Berns shared that the Finance Committee recommends that the Agency demolish the building located at 518 N. Park Avenue. Gary Frederickson of Vista Property Management, LCDC’s contract property management firm, recommended LCDC Meeting Minutes

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to the LCDC that they consider demolishing this building due to its poor condition.

The building is currently vacant and the projected R&M investment to get the building once again into rentable shape is significant.

Three firms were contacted for demolition bids. Only one firm, Cannon Hill, submitted a bid: $5,970 ($5,000 for demolition, $470 for asbestos sampling, and $500 for fill dirt to fill in the small basement area).

If the Board decides to move forward with demolition of this property in the near future, the existing Washington Trust Bank loan note due July 14, 2015 will need to be retired early; the outstanding current principal balance for this bank note is approximately $140,000. There is no pre-payment penalty to retire the note early.

Motion by Hoskins, seconded by Druffel, accepting the Cannon Hill bid to demolish the building located at 518 N. Park Avenue, and authorizing the Ex. Director to retire the 518 N. Park Avenue debt obligation prior to demolition. Motion carried.

Fiscal Year 2014 Audit Ex. Director Berns shared that the Finance Committee recommends that the Agency engage Magnuson & McHugh (M&M) for the LCDC’s fiscal year 2014 audit. Mr. Scott Hoover, CPA & Audit/Assurance Services Manager for M&M, will be the lead auditor for the LCDC audit. M&M’s engagement letter contains all of the necessary requirements for the LCDC 2014 audit, at a cost of $12,000.

Motion by Armon, seconded by Druffel, to engage the Magnuson & McHugh accounting firm to perform the LCDC’s fiscal year 2014 audit, per the audit deliverables and cost as outlined in their audit engagement letter. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that the committee met with The Housing Company (THC) recently to discuss potential modifications to the Midtown mix-use workforce housing project due to recent changes in the federal tax credit program qualification/scoring process. THC is still confident they can produce a project that can be competitive in the scoring process and achieve federal tax credit funding. However, due to the process changes, they feel they will now need to target the February, 2015 application window (vs. the previously planned September, 2014 application window). The committee plans to continue working closely with THC staff on the Midtown initiative.

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 Parking Committee – Commissioner Brad Jordan Ex. Director Berns, in Parking Committee Chair Brad Jordan’s (who serves as the LCDC representative on the City’s Parking Commission) stead, shared that the committee had no report this month.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer invited Eden Irgens, principal with the Range NW Company, to visit with the Board. Commissioner Patzer shared that Mrs. Irgens visited with the Board last month to discuss the Range NW Company’s communication outreach proposal for the LCDC. Range NW would like to offer their communication talents to help LCDC with ongoing communication efforts.

For more background on this initiative, please refer to the June 18, 2014 LCDC Board meeting minutes.

Following June’s board meeting where the University of Idaho’s survey proposal was discussed, Range NW was asked to solicit additional survey proposals from other survey organizations in the area. Strategic Research and Robinson Research, both located in Spokane, provided proposals for a potential LCDC community survey. The three survey proposals are summarized below: Strategic Research  350-response quota with 275 from within city limits and 75 from outside of city limits.  Mixture of cell and landlines.  Margin of error +/- 5% Research Costs: Strategy & Project Mgt.: Admin: TOTAL

$26,500 $ 1,000 $ 110 $27,610

Robinson Research  600-sample telephone survey, quotas to be determined.  Mixture of cell and landlines.  30 closed-ended questions, one open-ended question and five demographic questions.  Question development begins with a meeting with all interested parties.

Research Costs: Strategy & Project Mgt.: Admin: TOTAL

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University of Idaho Research Costs: Strategy & Project Mgt: Admin: TOTAL

$24,500 $ 1,000 $ 110 $25,610

Mrs. Irgens shared that the three survey proposals offer the same final deliverable; a representative sample of the community that will identify the awareness and feelings the community has re. the LCDC as a whole. The survey will help LCDC understand what the community thinks LCDC is doing well, and possibly identify some areas where the community feels there are some areas for improvement re. communication. The goal of the survey is to gain perspective; perspective that will help LCDC develop future messaging.

Mrs. Irgens shared that based upon the proposals submitted, Range NW recommends that LCDC engage Robinson Research for the survey initiative. As for process, should LCDC agree to engage Robinson, then Range NW recommends that the Communication Committee meet with the Robinson team to begin the survey scoping / question formulation process.  Commissioner Patzer asked for Robinson to generate 600 responses, how many phone calls do they need to make?  Mrs. Irgens did not have an exact number to share, but she indicated it would be quite a few phone calls.  Commissioner Patzer asked if there is a certain targeted window for survey calling?  Mrs. Irgens shared that yes there is, and that is what the Robinson team will bring to the table; the art & science behind surveying.  Commissioner Patzer asked how will Robinson derive their caller base?  Mrs. Irgens shared that Robinson has caller lists that they use, and will refine the targeted caller base based upon input received from LCDC.  Commissioner Goodlander shared that the Robinson proposal looks good, and at a very competitive cost.  Commissioners Davis and Patzer asked if Robinson can generate the desired statistical responses based upon their proposal?  Mrs. Irgens shared that yes, the Robinson proposal indicates that their proposed calling plan will yield desired statistical results.

Motion by Commissioner Armon, seconded by Commissioner Hoskins, authorizing LCDC to engage Range NW to engage Robinson Research for the survey protocol and cost as proposed, provided LCDC has 600 completed responses in the statistical outcome. Motion carried.

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 Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon had no report to share.

7. EXECUTIVE DIRECTOR’S REPORT Quarterly Review of Board’s Fiscal Year Goals Ex. Director Berns reviewed the 3rd quarter status of the LCDC Board’s fiscal year 2014 tactical goals.

8. BOARD COMMISSIONER COMMENTS: No Board Commissioner comments were shared.

Note – Commissioner Goodlander left the board meeting at 5:10 9. PUBLIC COMMENT: No public comment was provided.

10. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency.

Motion by Patzer, seconded by Hoskins, to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency.

Roll Call: Armon Yes Colwell Absent Druffel Yes

Goodlander Absent Patzer Yes Davis Yes

Hassell Jordan Hoskins

Yes Absent Yes

Motion carried.

The LCDC Board entered into Executive Session at 5:16 p.m. Those present were the LCDC Board of Commissioners, LCDC Executive Director Tony Berns, LCDC Legal Counsel Danielle Quade, and Coeur d’Alene City Attorney Mike Gridley.

Deliberations were conducted concerning the acquisition of an interest in real property which is not owned by a public agency.

No action was taken in Executive Session and the LCDC Board returned to regular session at 6:12 p.m.

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11. ADJOURN: Motion by Commissioner Patzer, seconded by Commissioner Hoskins, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 6:13 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

AUGUST 20, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Goodlander, Patzer, Druffel, Armon, Davis, Hoskins, Hassell, Colwell, Jordan. LCDC staff present: Berns. LCDC legal counsel present: Quade (Hawley-Troxell).

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Frank Orzell, Keith Erickson, Mike Gridley, Charles Buck, Nicole Kahler, Steve Wilson and others.

Chet Gadey, president of the Mill River Homeowners Association, shared with the Board that he is supportive of the LCDC acquiring the BNSF railroad right of way in the Mill River area, and requested that the public and stakeholder groups be involved with the planning process associated with the railroad right of way area. He also suggested that LCDC consider the need for additional operating dollars for the City Parks Department should more public space be created in relation to the Johnson Park area in the Mill River development.

4. APPROVAL OF MINUTES  July 16, 2014 Board Meeting Minutes Motion by Commissioner Hoskins, seconded by Commissioner Druffel, to approve the July 16, 2014 Board meeting minutes. Motion carried.

5. CDA 2030: INITIATIVE UPDATE & FUNDING REQUEST Commissioner Davis welcomed Dr. Charles Buck to the board meeting. Dr. Buck was visiting with the Board representing the leadership team of the CDA 2030 Visioning initiative. Dr. Buck thanked the LCDC Board for all they do in the community and LCDC Meeting Minutes 8/20/14 1

updated the Board as to the current status of the CDA 2030 initiative, as well as plans for year two of the initiative (see CDA 2030 handout below): ____________________________________________________________________

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______________________________________________________________________

Dr. Buck requested $25,000 in additional partnership funding from LCDC to help with phase 2 / year 2 of the initiative; with said funding planned to be used primarily for further professional consulting assistance. Dr. Buck shared that CDA 2030 will also be approaching other community entities/stakeholders for second year funding: e.g. city of CDA, various large and small businesses in the community, Kootenai Health, Avista, CDA Realtors, and local contractors.

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 Commissioner Druffel commended CDA 2030 on their progress to date. What does CDA 2030 envision for ongoing funding from LCDC and other stakeholders beyond the year two mark?  Dr. Buck shared that it is hard to predict future funding needs at this time. CDA 2030 has been very focused on year one activities and has not spent sufficient time looking beyond year one. There are visioning effort models from across the country that have worked, and those models are available for benchmarking.

Plans are to focus on appropriate models to help with future forecasting / planning needs.  Commissioner Patzer also thanked CDA 2030 for their efforts to date. How does CDA 2030 plan to measure success of their planned goals/initiatives?  Dr. Buck shared there are two parts to that answer. Community feedback data collected to date will provide an effective baseline data set to help measure future success. Additionally, CDA 2030 plans to measure the impacts of discrete project implementation plans that will be initiated in year two. The CDA 2030 Project Manager will be tasked with establishing an appropriate process for measuring success for the projects implemented.  Commissioner Patzer acknowledged that a downtown parking study appears to be a potential CDA 2030 project item in the near term. Is this the type of project where CDA 2030 would approach an entity like LCDC, who has a keen interest in downtown parking, for funding to get this type of study completed?  Dr. Buck shared that yes, that is the approach CDA 2030 plans to take; identifying and approaching a logical lead partner to fund discrete projects.  Commissioner Goodlander also thanked the CDA 2030 team for their efforts to date. If LCDC were to grant the additional funds requested, would CDA 2030 agree to providing periodic progress updates to the LCDC Board?  Dr. Buck: yes.  Commissioner Davis also thanked the CDA 2030 team for a great effort, and offered strong encouragement for the CDA 2030 team to keep the momentum going.

Motion by Commissioner Goodlander, seconded by Commissioner Druffel, to approve $25,000 in additional LCDC partnership funding for the CDA 2030 Visioning Initiative, with the understanding that the CDA 2030 Team will provide quarterly progress reports to the LCDC Board. Motion carried.

6. PROPERTY ACQUISITION COMMITTEE – Commissioner Goodlander BNSF Rail Road (RR) Right of Way (r-o-w) Property Acquisition: Lake & River Districts LCDC Meeting Minutes

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Commissioner Goodlander shared with the Board that the Property Acquisition Committee has met to review/discuss the potential role of LCDC assisting the City of CDA in acquiring BNSF’s fee owned RR r-o-w that extends from Huetter Road to near the southern cul-de-sac of Lakewood Drive in Riverstone. The graphic below depicts the r-o-w areas, denoted by red lines, which are located within the Lake & River districts.

Background: On July 15th, City Council authorized the purchase of the BNSF RR r-o-w for $2.5 million dollars. The property was appraised in November, 2013 at $4.330 million. BNSF has agreed to give the City sixty days until September 15, 2014 to negotiate the terms of a mutually acceptable Purchase and Sale Agreement and then close on the purchase of the property in December, 2014 or January, 2015. A 10% down payment ($250,000.00) will be required at the time of signing the Purchase and Sale Agreement.

Commissioner Goodlander and Ex. Director Berns shared that City Council has agreed to BNSF’s purchase price of $2.5 million for this r-o-w corridor, subject to the City seeking and securing LCDC’s partnership in the acquisition of BNSF r-o-w property located within the LCDC’s Lake and River Districts. If LCDC agrees to acquire the BNSF r-o-w property within its districts, then the City would acquire the remaining LCDC Meeting Minutes

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segment of BNSF r-o-w property that resides in the old Atlas mill site area that is located outside of any LCDC district.

Ex. Director Berns shared with the Board the results of an analysis calculating proposed acquisition costs for both LCDC districts based upon appraisal work performed for BNSF by Valbridge Property Advisors in 2013. Based upon the r-o-w square footage values contained in the Valbridge appraisals, and BNSF’s sale price of $2.5 million for the entire BNSF r-o-w corridor, Ex. Director Berns calculated an average square foot cost of $2.95. Using this average square foot cost value, LCDC’s share of the purchase price, based upon the r-o-w square footage located in LCDC’s two districts, is as follows:  Lake District: $728,193  River District: $755,534  Total: $1,483,727 Ex. Director Berns shared that if the Board chooses to move forward with this acquisition initiative, then the Board may want to increase the acquisition cost amounts to cover acquisition closing costs (e.g. title work, legal counsel costs, etc.). Therefore, Ex. Director Berns recommended the following not to exceed total acquisition values if the Board should choose to proceed with the acquisition:  Lake District: $750,000  River District: $775,000  Total: $1,525,000  Commissioner Colwell asked what are the plans for the property once acquired?  Commissioner Goodlander invited City of CDA Attorney Mike Gridley to join the meeting to address that question. Mr. Gridley shared that a master planning effort including the BNSF r-o-w is underway to help address future disposition opportunities once the property is acquired.  Commissioner Patzer asked if LCDC will own the land it acquires in fee simple ownership?  Commissioner Davis shared that yes, LCDC will have fee ownership.  Commissioner Colwell asked if any of the BNSF r-o-w touches the waterfront?  Mr. Gridley shared that none of the BNSF r-o-w touches the waterfront, thus opening up the possibility for public/private partnership discussions to determine the best land uses for the community.

Motion by Commissioner Hoskins, seconded by Commissioner Goodlander, to approve an amount not to exceed $1,525,000 for acquisition of BNSF r-o-w property located in the LCDC’s Lake and River districts, subject to an acceptable yet to be crafted Purchase & Sale Agreement, with said acquisition amount broken down as follows: Lake District: $750,000; River District: $775,000. Motion carried.

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7. LCDC FISCAL YEAR 2015 (FY2015) BUDGET HEARING LCDC Chairman Davis called the FY2015 budget public hearing to order at 5:10 p.m.

No public comment on the budget was provided. Executive Director Berns provided an overview of the proposed budget to the Board and viewing audience.

Ex. Director Berns shared summary comments re. the following LCDC proposed FY2015 budget, which includes one modification to the proposed budget that was published as a legal notice in the CDA Press; increasing the River District’s capital expenditure from $400,000 to $775,000 to cover the anticipated cost of the BNSF railroad r-o-w acquisition as just approved by the LCDC Board:

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Lake District River District $ 2,179,422 $ 4,122,972 $

Estimated Beginning Fund Balance (10/1/14)

Total 6,302,394

Revenues Estimated Tax Increment1 Property Rental Receipts Int. & Misc. Funds WTB Lake District Bond Draw Capital Acquisition Financing

$ 4,336,966 $ 143,551 $ 2,796 $ 1,250,000 $ 350,000 Total $ 6,083,313

$ 1,946,946 $ $ 3,684 $ $ $ 1,950,630

$ $ $ $ $ $

6,283,912 143,551 6,480 1,250,000 350,000 8,033,943

$ $ $ $ $ $ $ $ $

89,899 5,770 3,250 67,180 1,000 2,500 2,672 2,850 -

$ $ $ $ $ $ $ $ $

179,798 11,540 6,500 133,060 3,000 5,000 5,344 5,700 13,380

Expenses Administration Office Expenses Travel Professional Services Notices Communications Insurance Meetings Utilities

$ $ $ $ $ $ $ $ $

Property Management 2 Organization Dues Miscellaneous Public Art Capital Acquisition Expense Debt: Interest Debt: Principal Parking Initiatives Planning Grants Partnership Agreements (OPAs, IRAs) Midtown Place Making Special Project Reserve Total

$ 118,664 $ 4,355 $ 500 $ 86,739 $ 500,000 $ 409,860 $ 3,823,981 $ 50,000 $ 165,000 $ 128,750 $ 69,284 $ 25,000 $ 750,000 $ 6,320,334

$ $ 4,355 $ 500 $ 38,939 $ 760,000 $ $ $ $ 278,000 $ $ 301,427 $ $ 350,000 $ 1,908,342

$ $ $ $ $ $ $ $ $ $ $ $ $ $

118,664 8,710 1,000 125,678 1,260,000 409,860 3,823,981 50,000 443,000 128,750 370,711 25,000 1,100,000 8,228,676

$ 1,942,401

$ 4,165,260

$

6,107,661

Estimated Ending Fund Balance (9/30/15) Notes:

89,899 5,770 3,250 65,880 2,000 2,500 2,672 2,850 13,380

1

0% change from 2013 levy rates proposed in budget.

2

Property Mgt. value includes $71,200 for improvements associated with 823 & 845 4th street properties, and 839 3rd St. property related to the proposed Midtown project.

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Executive Director Berns shared that the proposed budget has been reviewed in detail by the Finance Committee. Ex. Director Berns also shared that under Idaho urban renewal law, urban renewal agencies are required to prepare and finalize a budget prior to September 1st of each year. Therefore, the LCDC Board reviews a draft budget at the July Board meeting, and holds a public hearing on the proposed budget at the August Board meeting.

Key FY15 budget issues discussed with the Board: Revenues:  2013 levy rates for applicable taxing entities are used in the draft district budgets to determine estimated tax increment revenues. For 2014, preliminary assessment values show the Lake District experiencing a $20.7 million pre-BOE property valuation increase over the previous year, and the River District a $16.3 million pre-BOE property valuation increase over the previous year.

These valuation increases result in a Lake District estimated FY15 tax increment (TI) revenue of $4.3 million, and a River District estimated FY15 TI revenue of $1.9 million.  The Lake District draft budget calls for a $1.25 million bond draw on the Washington Trust Bank (WTB) line of credit for FY15; thus concluding LCDC draws on the existing WTB Lake District line of credit. Bond proceeds can be used for expenses such as land acquisition, and capital improvements associated with a project such as the 4 Corners.  70% bank financing is proposed to help finance the capital acquisition expense in the Lake District.

Expenses:  Public Art: 2% of TI revenue transfers to the City Arts Commission for future public art projects located within the LCDC districts: $86,739 for the Lake District; $38,939 for the River District.  Professional Services: The draft budgets include costs for LCDC’s professional contract services for accounting (Gourley & Associates), legal counsel (Hawley-Troxell and Elam & Burke), external audit (Magnuson & McHugh), community relations (Range NW, Inc.), and government relations (Molitor & Associates).  Planning: funds are budgeted for professional planning expenses for potential district-related initiatives (e.g. Lake District: $90,000 towards the 4 Corner master planning effort; River District: $250,000 towards engineering planning for proposed Seltice Way roadway improvements).  Special Project Reserves:  The Lake District budget special project reserve line item contains funding for property demolition and site rehabilitation efforts (possibly 712 & 722 Young Avenue properties), and potential funds for possible redevelopment work associated with the 4-corner project (including the LCDC Meeting Minutes

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BLM property corridor) area should the Board so choose to allocate funding to that initiative in FY15.  The River District budget special project reserve line item contains funds for potential CityLink capital improvements ($250K) in the Riverstone area, plus funds ($100K) for potential Johnson Park (Mill River area) capital improvements.  Lake District: As per the LCDC agreement with WTB, a $2,080,000 annual bond payment is included as an expense in the FY15 Lake District budget.  Lake District: $71,200 is budgeted for improvements associated with the 823 & 845 4th Street properties, and the 839 3rd Street property related to the proposed Midtown mix-use project.  Lake District: budget includes a $43,750 grant to the CDA Downtown Association (DTA) to assist in funding the costs associated with the DTA events program.

Following Ex. Director Berns’ summary remarks, Chairman Davis asked if there were any questions re. the proposed FY2015 budget. Chairman Davis closed the Public Hearing at 5:16 p.m. 

Resolution 14-02: Adoption of LCDC FY2015 Budget Motion by Commissioner Hoskins, seconded by Commissioner Patzer, to approve Resolution 14-02 adopting the LCDC FY2015 Budget as originally proposed, with one modification: increasing the River District’s capital expenditure from $400,000 to $775,000.

Roll Call: Goodlander Hassell Jordan

Yes Yes Yes

Davis Colwell Hoskins

Yes Yes Yes

Druffel Yes Patzer Yes Armon Yes

Motion carried.

8. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell, reviewed and discussed the July Lake and River District financial statements, and the July / August account payables sheet, with the Board.

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Motion by Commissioner Armon, seconded by Commissioner Hassell, to approve the July financial statements and the July / August accounts payables for the Lake & River Districts as presented. Motion carried.  Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander shared that the committee’s only active initiative at this time is The Housing Company’s (THC) Midtown mix-use workforce housing project which is still progressing forward. THC still plans to submit a federal tax credit application package in February, 2015.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan (who serves as the LCDC representative on the City’s Parking Commission), shared that the committee had no report this month.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared two update items with the Board:  An August LCDC newsletter will be distributed this afternoon, and  The Committee is actively working with the Range NW team on communication initiatives.  Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon had no report to share.

9. EXECUTIVE DIRECTOR’S REPORT 518 N. Park Drive Demolition: Update Ex. Director Berns shared that demolition of the 518 N. Drive buildings is scheduled for August 20th.

Four (4) Corner Project: Update Ex. Director Berns and Commissioner Patzer, both who serve on the 4 Corner Project oversight team, shared that the Welch-Comer led planning effort is underway and progressing. The timeline calls for the master plan to be completed by calendar year end. Commissioner Patzer shared that there is energy to extend the Welch-Comer planning effort to include the recently discussed BNSF railroad r-o-w area all of the way to Huetter, which he sees as a good idea from a holistic planning standpoint.

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10. BOARD COMMISSIONER COMMENTS:  Commissioner Colwell asked if the wet area near the Harbor House in McEuen Park has been remedied?  Ex. Director Berns shared that yes, further engineering work from Team McEuen and CNI has fixed the drainage problem in that area of the park.

11. PUBLIC COMMENT: No public comment was provided.

12. ADJOURN: Motion by Commissioner Hoskins, seconded by Commissioner Patzer, to adjourn.

Motion carried.

The LCDC Board meeting adjourned at 5:30 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

SEPTEMBER 17, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Hoskins, Patzer, Davis, Hassell, Colwell, Jordan.

LCDC staff present: Berns.

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Susie Snedaker, Jeff Selle, Adam Graves, Lynn Schwindel, Keith Erickson, Steve Anthony, Gregg Johnson, Tina Johnson, Eden Irgens, and others.

No public comment was provided.

4. APPROVAL OF MINUTES  August 20, 2014 Board Meeting Minutes Motion by Commissioner Hoskins, seconded by Commissioner Patzer, to approve the August 20, 2014 Board meeting minutes. Motion carried.

5. A. MIDTOWN NEIGHBORS – Gregg Johnson Commissioner Davis welcomed Mr. Johnson to the board meeting. Mr. Johnson shared that he was representing a group of Midtown neighbors/stakeholders that have concerns about the proposed mix-use workforce housing project (“Project”) as currently proposed by The Housing Company (THC). Mr. Johnson referred to the group he was representing as a new Midtown Association.

Mr. Johnson shared that he has personally been living in Midtown for 20 years, and has seen the highs and lows that have affected Midtown. He shared that the group he represents is not aligned with the proposed THC Project, as evidenced by a neighborhood poll his group conducted. He and others are looking for the “perfect fit” LCDC Meeting Minutes 9/17/14 1

project for Midtown and gave examples of project areas in Spokane that might be benchmarked for Midtown-type projects; e.g. the Garland and Perry districts. He shared that a new mix use building in Sandpoint might be a design to emulate in Midtown.

Mr. Johnson shared that his group wants to partner with the LCDC and THC on other project possibilities for the corner of 4th and Roosevelt; specifically a project that involves a residential ownership component (i.e. condominiums (condos) vs. rental apartments). He shared that there are investors that are willing to partner in Midtown to develop a mix-use condo project on the site controlled by the LCDC & THC. The following individuals also provided comments to the Board indicating their concerns and opposition with the proposed THC Project. Some shared that they would rather see a return to an original design concept that included condos as the residential product in the mix-use building, and others shared that further involvement of the Midtown neighbors in the Project discussion is important and that the scale and character of Midtown needs to be kept in mind during the design process (spelling of the individual names below is phonetic in nature): o Wendy Delagos, Wayne Pervonous, Meg Sullivan, Lynn Schwindel, Scott Burkhart, Art Oliver, Susie Snedaker.  Commissioner Jordan commented that the Sandpoint building project referenced looks similar to THC conceptual building design. What are the concerns with THC design?  Mr. Johnson replied that THC concept is a nice start, but that the concept needs some polish. He feels the proposed building is a little big. However, the biggest issue the neighbors have is what is inside the building (i.e. workforce housing apartments).  Commissioner Jordan asked that given the height of the suggested Sandpoint building concept, does the neighborhood group support the original four story height of THC Project if the residential component shifted from rentals to condos?  Mr. Johnson shared that he supports three stories vs. four stories.  Commissioner Jordan made the following comments:  That the proposed THC Project includes workforce housing apartments and not low income apartments that are supported by the Section 8 federal low income housing program. There is a huge difference between these two types of housing programs, and he feels this difference is not understood by most folks in the area. Among the many differences between the workforce and Section 8 housing programs is that people living in the workforce housing units need to be employed, and remain employed while they live in these units.  Regarding condo projects: there are well run condos projects, and poorly run condo projects. So, condos projects have to be well vetted and designed to achieve a desirable outcome.

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

His vision is for well managed workforce rental units in Midtown, and that is the way he views THC Project. However, he does not want to force a project into a neighborhood that is not supportive.

 Commissioner Patzer thanked the Midtown neighbors/stakeholders for attending the meeting and visiting with the Board. He shared that it is nice to hear how successful LCDC has been in bringing vitality to the Midtown area via its placemaking initiative. Commissioner Patzer asked what is the Midtown neighborhood?  Mr. Johnson replied that they view Midtown as the area on 4th Street from Indiana Avenue to Harrison Avenue.  Commissioner Patzer shared that he appreciated the healthy discussion re. next steps in Midtown. Improving economic times have helped to refresh the conversation re. possible projects in Midtown. He asked if the Midtown neighbors have talked with Douglas Peterson of THC?  Mr. Johnson shared that yes, two members of his group have talked with THC.  Commissioner Patzer shared that THC is a good partner with a proven track record in Idaho and that they really want to help create a project that works in Midtown.  Commissioner Patzer asked if the neighborhood group informed THC that they prefer to see condos vs. rental units in Midtown?  Mr. Johnson replied yes.  Commissioner Hoskins also thanked the Midtown stakeholders for visiting with the Board. He shared that LCDC wants to be a part of a positive solution in Midtown.  Commissioner Hassell shared that reviewing the original THC mix-use project concept, which included condos, with THC leadership would be worth the effort.  Commissioner Davis also thanked the Midtown neighbors/stakeholders for attending the board meeting and sharing their thoughts/suggestions for the next steps in the Midtown placemaking process. He shared the challenge is to find the right mix-use economic model to use in Midtown. He also reaffirmed that LCDC is not the sole owner/partner in the Midtown initiative; that THC is a key partner and needs to be involved in all Midtown related discussions. In closing, he shared that LCDC will continue the dialog with THC and the Midtown stakeholders on the Midtown initiative.

5. B. CDA ARTS COMMISSION – Steve Anthony Commissioner Davis welcomed Mr. Anthony, City of CDA Recreation Director and City liaison to the CDA Arts Commission, to the board meeting.

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Mr. Anthony shared a PowerPoint presentation with the Board highlighting all of the following successful city art projects that would not have happened without LCDC partnership funding:  Art work located in the round-a-bouts on Higher Education Campus  “Sailboats” art piece on NW Blvd by I90  Utility box / signal box art wrap program  “Art Current” program in downtown CDA  McEuen Park art pieces Mr. Anthony shared that most of the aforementioned art projects are located in the LCDC’s Lake District, and that the Arts Commission is diligently working to find more art placement opportunities in the LCDC’s River District. Following is the current financial balance, by art fund account, of the Arts Commission: (note: LCDC art funds can only be utilized for art projects located within the districts where the art funding is generated)

Mr. Anthony shared that 41 local artists have created 63 art pieces that are located in the city, highlighting the level of local art talent in the area. The value of the City’s art collection is estimated at $1,322,482.

Board members thanked Mr. Anthony for his presentation, and shared with him how successful the City’s arts program has become, and how proud LCDC is to be a partner in that success.

6. COMMITTEE REPORTS  Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Meeting Minutes

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Finance Committee Chair Rod Colwell, reviewed and discussed the August Lake and River District financial statements, and the August / September account payables sheet, with the Board.

Motion by Commissioner Hassell, seconded by Commissioner Hoskins, to approve the August financial statements and the August / September accounts payables for the Lake & River Districts as presented. Motion carried.

728 Sherman Avenue Property Divestiture: Resolution 14-03: Approving & Authorizing the Sale or Exchange of Surplus Real Property Ex. Director Berns shared an overview of the real property divestiture process proposed for the LCDC owned property located at 728 Sherman Avenue in the LCDC’s Lake District. The overview included the following:  In August of 2001, LCDC acquired a parcel of real property with residential improvements located at the end of 8th Street at 728 Sherman Avenue, Coeur D’Alene, Idaho (the “Property” – illustrations below).

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 



   

LCDC, in partnership with the City of CDA, intended to demolish the improvements on the Property and utilize the Property to extend 8th Street through to the new CDA public library area.

The City has determined that extending 8th Street is now unnecessary due to the better than expected traffic related performance of the library area; thus LCDC does not have a use for the Property and desires to sell the Property and use the sale proceeds within the Lake District.

LCDC intends to declare the Property as surplus property and pursuant to Idaho code 50-2011(b), LCDC intends to dispose of the Property using reasonable competitive bidding procedures (i.e. a public auction) as contained in the municipal competitive bidding process for disposition of surplus property set forth in Idaho Code Title 50, Chapter 14 (the “Municipal Act”); LCDC has obtained an appraisal of the Property provided by the Columbia Valuation Group, and recommends that the minimum price for the Property to be obtained at a public auction be set at $150,000, the appraised value.

Prior to the scheduling of a public auction, LCDC will conduct a public hearing at a noticed LCDC Board meeting in compliance with Idaho Code 50-1402; Following the public hearing, LCDC will schedule and conduct a sealed bid public auction to sell or exchange the Property to the winning bidder.

In the event no bids are received at the public auction, LCDC will proceed to sell or exchange the Property as it deems most reasonable and in the best interest of LCDC. Motion by Commissioner Colwell, seconded by Commissioner Patzer, to approve Resolution 14-03 approving and authorizing the sale of surplus

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real property located at 728 Sherman Avenue, Coeur d’Alene, Idaho, utilizing the process as outlined in Resolution 14-03.

Roll Call: Goodlander Hassell Jordan

Absent Yes Yes

Davis Colwell Hoskins

Yes Yes Yes

Druffel Absent Patzer Yes Armon Absent

Motion carried.  Housing Committee – Commissioner Deanna Goodlander LCDC Ex. Direct Berns, in Housing Committee Chair Deanna Goodlander’s stead, shared that the committee had no report to provide.  Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan (who serves as the LCDC representative on the City’s Parking Commission), shared that the Parking Commission will meet again in October. He shared that there is a city ordinance under development that will deal with vagrancy issues associated with the new McEuen Park parking structure.

Commissioner Patzer commented that he would like to know how the McEuen Park parking structure is performing to help the LCDC Board strategize as to how the LCDC moves forward with the planned parking structure located on the downtown old federal building block (corner of 4th and Lakeside). How/when should the LCDC approach the Parking Commission on this performance question?  Commissioner Jordan thinks that is great parking performance data to pursue, but feels it may be too early for the McEuen Park parking structure to yield viable performance statistics.  Commissioner Patzer shared that he would like to review as much data as available prior to next year’s LCDC strategic planning session to help the Board on the strategic parking planning front.

Commissioner Davis shared that he agrees that it might be too soon to gather viable parking data from McEuen Park, but that parking data from McEuen Park will be critical to the strategic planning of any future LCDC downtown parking initiatives.  Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the committee continues to work with the Range NW team on communication initiatives including the facilitation of a community assessment of LCDC. Commissioner Patzer hopes to have a report out on the assessment initiative at the October board meeting.

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 Jobs Committee – Commissioner Mic Armon LCDC Ex. Director Berns, in Jobs Committee Chair Mic Armon’s stead, shared that the committee had no report to provide.

7. EXECUTIVE DIRECTOR’S REPORT ICRMP Policy: Terrorism Insurance Coverage Declined Executive Director Berns shared that LCDC, at the recommendation of LCDC’s insurance agent, should decline Idaho Counties Risk Management Program’s (ICRMP) offer for additional terrorism insurance coverage per the Terrorism Risk Insurance Act; additional coverage for LCDC would cost $5,000 per year. ICRMP is required to offer its policy holders this additional terrorism coverage if so desired. ICRMP carries $20 million in terrorism insurance for its clients in its standard policy which LCDC deems appropriate coverage.

Motion by Commissioner Hassell, seconded by Commissioner Hoskins, to decline the additional ICRMP terrorism insurance coverage. Motion carried Four (4) Corner Project: Update Ex. Director Berns and Commissioner Patzer, both who serve on the 4 Corner Project oversight team, shared that the Welch-Comer led planning effort is underway and progressing. The Welch-Comer planning team is currently meeting with stakeholder groups, compiling stakeholder input that will be utilized in crafting the initial draft of the master planning document.

8. ELECTION OF LCDC CHAIRMAN & VICE CHAIRMAN Motion by Commissioner Jordan that Commissioner Denny Davis be nominated as LCDC Board Chairman, and that Commissioner Dave Patzer be nominated as LCDC Vice-Chairman, for fiscal year 2015. Commissioner Hoskins seconded the motion. No other nominations were proffered, and no objections to the nomination slate were voiced. Motion carried.

Board members thanked Commissioners Davis and Patzer for their hard work on behalf of the LCDC and the community, and for their willingness to once again serve in LCDC leadership positions. Commissioners Davis and Patzer thanked their fellow Board members for their support and trust.

9. BOARD COMMISSIONER COMMENTS  Commissioner Jordan suggested that the LCDC Housing Committee continue to work with THC on the Midtown mix use workforce housing initiative.  Commissioner Davis will ask Commissioner Goodlander to continue her committee’s efforts.

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 Commissioner Patzer shared that he appreciated the visit by the Midtown neighbors/stakeholders.

10. PUBLIC COMMENT Susie Snedaker: thanked the Board for having the Midtown neighborhood presentation.

She shared that she would like to see a workshop scheduled with the Midtown stakeholders, LCDC and THC.  Commissioner Patzer suggested a midweek, evening venue for such a workshop.

Lynn Schwindel: shared that the number one concern of the Midtown business owners that he has visited is that they want more businesses in Midtown that create foot traffic.  Commissioner Jordan shared that active streetscapes create a lot of value for the neighborhoods.  Commissioner Patzer asked if the Midtown businesses are excited about the current state of Midtown? o Mr. Schwindel shared that yes, the businesses are indeed excited.

11. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of LCDC executive director.

Motion by Commissioner Colwell, seconded by Commissioner Hoskins, to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of the LCDC executive director.

Roll Call: Goodlander Absent Colwell Yes Armon Absent

Hassell Patzer Davis

Yes Yes Yes

Druffel Jordan Hoskins

Absent Yes Yes

Motion carried.

The LCDC Board entered into Executive Session at 5:42 p.m. Those present were the LCDC Board of Commissioners. Deliberations were conducted regarding the performance review of the executive director. No action was taken in Executive Session and the LCDC Board returned to regular session at 6:03 p.m.

12. ADJOURN: Motion by Commissioner Hoskins, seconded by Commissioner Jordan, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 6:04 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

OCTOBER 15, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Hoskins, Goodlander, Armon, Patzer, Davis, Colwell, Jordan.

LCDC staff present: Berns.

LCDC Legal Counsel present: Quade.

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Gordon Dobler, Dennis Grant, Candace Godwin, Frank Orzell, Susie Snedaker, Keith Cousins, Keith Erickson, Gregg Johnson, Troy Tymesen and others.

No public comment was provided.

4. APPROVAL OF MINUTES  September 17, 2014 Board Meeting Minutes  October 8, 2014 Special Call Board Meeting Minutes Motion by Commissioner Hoskins, seconded by Commissioner Armon, to approve the September 17, 2014 Board meeting minutes. Motion carried.

Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, to approve the October 8, 2014 Special Call Board meeting minutes. Motion carried.

5. Public Hearing: 728 Sherman Avenue Property Divestiture LCDC Chairman Davis called the public hearing to order at 4:05 p.m. Chairman Davis asked LCDC Ex. Director Berns to provide an overview of the proposed property divestiture location and process to the Board and viewing audience (please refer to the September 17, 2014 LCDC Board Meeting Minutes for more background on this issue).

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Following Ex. Director Berns’ overview, Chairman Davis asked for any public comment re. the proposed divestiture. No public comment re. the divesture of the LCDC property located at 728 Sherman Avenue was provided. Ex. Director Berns shared that he received no written public comment re. the proposed property divesture. 

Resolution 15-01: Public Auction for the Sale or Exchange of Surplus Real Property Motion by Commissioner Hoskins, seconded by Commissioner Armon, to approve Resolution 15-01 re. the public auction for the sale or exchange of surplus real property located at 728 Sherman Avenue, CDA, Idaho.

Roll Call: Goodlander Hassell Jordan

Yes Absent Yes

Davis Colwell Hoskins

Yes Yes Yes

Druffel Absent Patzer Yes Armon Yes

Motion carried.

6. A. PRESENTATION: Seltice Way Road Reconstruction Project & LCDC Partnership Funding Request – Dennis Grant / Gordon Dobler Commissioner Davis welcomed Mr. Grant and Mr. Dobler, both with the City of CDA Engineering Department, to the board meeting. The following LCDC partnership funding request from the City was shared with the Board: ______________________________________________________________________ CITY OF CD’A STAFF REPORT TO LCDC BOARD DATE: FROM: SUBJECT:

October 15, 2014 Dennis J. Grant, Engineering Project Manager Funding for the Seltice Way Reconstruction Project Design

DECISION POINT The City of CD’A is requesting the Lake City Development Corporation (LCDC) approve $250,000 in partnership funding for the roadway design of Seltice Way between Northwest Boulevard and Huetter Road.

HISTORY Seltice Way was the original Interstate Highway prior to construction of I-90. Most of the roadway east of Huetter has been annexed into the City of CD’A over the past several years. However, it remains in serious disrepair and needs to be reconstructed. The original concrete road has failed and needs to be removed. In addition, curbing, drainage, and sidewalks all need to be installed or upgraded. The roadway east of the bridge was reconstructed with Federal aid in 2005; however the remaining portion west to Huetter Ave remains unrepaired.

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FINANCIAL ANALYSIS The cost for design and construction is currently estimated to be $4.5 to $5.0 million dollars, which means that the City of CD’A must seek outside funding to proceed. The City was successful in obtaining $305,000 of Federal funding for project development in FY15, but that is about $250,000 short of the estimated $555,000 needed. The City is requesting LCDC participation of this amount.

There are no construction funds available as yet, but it is likely that once the design is complete and construction estimates are refined, the project would be bid-ready as other federally programmed projects fall out and their Federal funds become available.

PERFORMANCE ANALYSIS The project would include reconstruction of the roadway, installation of curbing, drainage facilities, signalization of the Atlas Road intersection and possibly Huetter Avenue, bike lanes and sidewalk / multi-use paths, and bus stops. This would be a multi-jurisdictional effort including the Post Falls Highway District, Kootenai County, and the City of CD’A. RECOMMENDATION The City of CD’A requests the LCDC to approve $250,000.00 in partnership funding for the roadway design of Seltice Way Reconstruction Project.

______________________________________________________________________ Mr. Dobler shared that Seltice Way has been around for a long time, and is expensive to maintain in its current state. City leadership believes that a reconstructed Seltice Way will facilitate economic development in that part of the community. Mr. Dobler asked a rhetorical question as to why can’t the City pay for the design and reconstruction of this section of Seltice Way? Basically, the City has no funds available in their budget now, or in their strategic budget plan, for the total cost associated with this road related expense. That is why the City is looking for federal road reconstruction assistance in partnership with the Kootenai Metropolitan Planning Organization (KMPO). Working with KMPO, the City has been able to get federal funding for reconstruction design totaling $305,000. No capital funding is available yet, just funding for design. The City estimates that the reconstruction design cost will be approximately $555,000; thus their LCDC funding request of $250,000. The City expects to contribute $25,000 to the design process when all is said and done. The City has yet to engage a design engineer via an RFP process, so they are not certain as to the ultimate cost of the design process. The City’s request of LCDC would be for a not to exceed commitment of $250,000.  Commissioner Goodlander asked if part of the reconstruction will include a traffic signal at Seltice and Atlas road?  Mr. Dobler shared that yes, that signalized intersection is part of the design, and it will be fairly expensive due to the existing grade issues.  Commissioner Patzer asked if the City will be able to handle their expected match of the capital costs needed for reconstruction?

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Mr. Dobler shared that yes, the City is budgeting for their match amount, and hopes that the federal funding for this program will not be decreased in the future.

 Commissioner Patzer shared that there is currently a rental apartment housing boom occurring on Seltice Way; will the design effort include a travel/traffic study?  Mr. Dobler: yes.  Commissioner Patzer asked as the Atlas mill site gets annexed into the City, will the developers of the site be asked to contribute funds for infrastructure needs via annexation and impact fees?  Mr. Dobler shared that yes, those fees will part of the development process.  Commissioner Colwell asked what are the odds of the City receiving the federal roadway funding?  Mr. Dobler shared that with a completed roadway design in hand, the City’s odds are pretty good for obtaining the federal funds; it is not a sure thing, but the City will be in a good position.  Commissioner Armon asked if there are any state funds available for this type of roadway reconstruction?  Mr. Dobler shared that there are no state funds available for this type of project.  Commissioner Armon asked if the City of Post Falls is spending any funds on Seltice Way west of Huetter?  Mr. Dobler shared that Post Falls Highway District has already invested funds to fix the portion of Seltice Way west of Huetter.  Commissioner Armon asked if the City expects to have funds available for the capital reconstruction effort, why doesn’t the City have money to spend now on design?  Mr. Dobler shared that the City has very limited funding in place now for design costs, but anticipates to have capital funds in place within the next five years; five years being the timeframe the City expects to receive the federal funding for the project.  Commissioner Goodlander shared that KMPO has ranked Seltice Way as a top priority for the CDA community.  Commissioner Patzer asked Ex. Director Berns if the LCDC FY15 River District budget has these planning funds available?  Ex. Director Berns shared that yes, the LCDC Board anticipated this City request and budgeted $250,000 for this Seltice Way project in the River District FY15 budget.

Board members thanked Mr. Dobler and Mr. Grant for their visit/presentation.

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Motion by Commissioner Goodlander, seconded by Commissioner Hoskins, authorizing an amount not to exceed $250,000 of LCDC River District partnership funding to assist the City in planning/design for the proposed Seltice Way road reconstruction project; funds to be expended within the bounds of the River District. Motion carried.

6. B. PRESENTATION: North Idaho Family Group (NIFG): Pre-K Through Career Education Information Center – Candace Godwin Commissioner Davis welcomed Mrs. Godwin, NIFG Board member, to the board meeting. Mrs. Godwin thanked the Board for the opportunity to present the NIFG’s “Education Information Center” project. Mrs. Godwin shared that this new, and very exciting project, closely aligns with the LCDC mission to bring together resources to achieve a vibrant and prosperous community, today and into the future. NIFG believes the LCDC would make an outstanding Visionary Partner for the project. The Education Information Center is a comprehensive “Pre-Kindergarten through Career” portal website; linking to educational information and opportunities that are within an hour of the LCDC’s Lake and River districts. She shared that there isn’t anything else like this portal available today. Mrs. Godwin shared and discussed the following NIFG materials during her visit with the LCDC Board:

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Following are remarks that Mrs. Godwin shared during her presentation:  This current initiative involves the development of a web site portal, not a brick and mortar building. A building could actually be built in the future, but that is not part of the current initiative.  There is no single source web portal site like this in our community.  She stressed that a key element of this initiative concerns job creation and job retention.  NIFG is requesting the LCDC to consider a $15,000 Visionary Partner contribution over two years; $7,500/year. All Visionary Partners contribute at the same funding level.  The requested funding will support the development of the web portal, and pay for associated development costs; e.g. legal, office expenses, marketing, and grant writing fees.  Currently, NIFG has 90% of the website data collected. The website is under development, and the marketing plan is underway. Anticipated launch date for the web portal is January 31, 2015.  Commissioner Davis asked if NIFG is a 501c3?  Mrs. Godwin: yes  Commissioner Davis asked how much money does NIFG need to make the web portal work?  Mrs. Godwin shared that she did not know the total funding level needed for the initiative.  Commissioner Davis asked if any other communities have developed a similar project in Idaho?  Mrs. Godwin shared that she is not aware of any other projects like this in the state.  Commissioner Davis asked if this portal would serve all education institutions, both public and private?  Mrs. Godwin: yes  Commissioner Davis asked who is on the NIFG Board?  Mrs. Godwin will send that information to the LCDC.  Commissioner Armon asked if for-profit entities like the University of Phoenix could participate?  Mrs. Godwin was not sure how “for profits” will be handled in the system.  Commissioner Colwell asked if the NIFG organization promotes the concept of healthy families, and is this concept included in this initiative?  Mrs. Godwin shared that promoting healthy families is a core goal of NIFG, but is not part of this proposed portal initiative.

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 Commissioner Armon shared that NIFG’s proposed portal initiative might be obsolete before it gets started since education is becoming more web based; a person can go to school anywhere on line.  Mrs. Godwin disagreed with that assessment. NIFG wants to bring resources together to benefit the local community by providing easy access to educational resources. This initiative is not just about higher education, but also about K-12 institutions.  Commissioner Colwell suggested the Board take this partnership funding request under advisement at this time, taking no action until further information is provided

by NIFG including budget data, NIFG Board membership, and a long-term plan.

Board members thanked Mrs. Godwin for her visit and presentation.

7. COMMITTEE REPORTS A. Housing Committee – Commissioner Deanna Goodlander The Housing Company’s (THC) Midtown Mix-Use Workforce Housing Initiative Ex. Director Berns shared an historic overview presentation on the LCDC’s role in Midtown to set the stage for the Board’s continuing conversation re. THC/LCDC proposed mix-use workforce housing initiative in Midtown. Following are three slides excerpted from that presentation. The entire presentation is available for viewing in the October 15, 2014 LCDC Board meeting video (online at www.lcdc.org).

Slide 1: Current LCDC & THC Midtown property related investments.

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Slide 2: LCDC “Placemaking” investment totaling $1.7 million.

Slide 3: LCDC’s total investment to date in Midtown: $2.5 million. _______________________________________________________________ Commissioner Goodlander recapped the October 8th meeting with THC and Midtown stakeholders. She shared that for THC to move forward on the project, THC needs to know that the LCDC is a committed partner on the proposed Midtown mix-use initiative.

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Motion by Commissioner Goodlander, seconded by Commissioner Armon, confirming LCDC’s support of THC’s Midtown mix-use workforce housing initiative as currently proposed, with an actual LCDC funding commitment to be determined at a later time.

Discussion ensued among Board members re. several aspects of the proposed Midtown initiative (please refer to the October 15, 2014 LCDC Board meeting video (www.lcdc.org) to view the Board’s discussion).

Motion carried.

B. Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Ex. Director Berns and Finance Committee Chair Rod Colwell reviewed and discussed the September Lake and River District financial statements, and the September / October account payables sheet, with the Board.

Motion by Commissioner Armon, seconded by Commissioner Hoskins, to approve the September financial statements and the September / October accounts payables for the Lake & River Districts as presented. Motion carried.

FY14 Q4 Quarterly Report Ex. Director Berns shared the Fiscal Year 2014 fourth quarter (FY14 Q4) report with the Board, asking Board members to review the package at their convenience, and to contact him with any questions.

C. Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan (who serves as the LCDC representative on the City’s Parking Commission), shared that the Parking Commission met earlier in the month. Commissioner Jordan shared that Diamond Parking is working on a more simple to understand signage program for downtown parking. Diamond and the City are also addressing customer feedback re. the ease of use of the automatic pay parking kiosks. Diamond was asked how the McEuen parking garage is performing from a financial perspective, and they responded that it is too early to tell. Commissioner Jordan also shared that monthly parking permits are now only available for purchase in one form; a $35 monthly parking permit.

The City is also reviewing the number of handicap parking spots located in the downtown core. Additional spots have been proposed for Sherman Avenue, but it is difficult to install handicap spots on Sherman Avenue to ADA parking stall size requirements.

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 Commissioner Armon asked if the current lighting solution is sufficient for the McEuen garage parking, and if security cameras have been installed in the McEuen garage?  Commissioner Jordan shared that the City is addressing both issues, and that improvements to the McEuen parking area will occur over time.

D. Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the community assessment survey is complete and that the committee is performing an initial review of the data. Commissioner Patzer plans to have a report out on the assessment initiative at the November board meeting.

Commissioner Patzer also asked each Board member to review their online LCDC website bios for potential updates.

E. Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon shared that the committee had no report to provide.

8. EXECUTIVE DIRECTOR’S REPORT Quarterly Review of Board’s Fiscal Year Goals Ex. Director Berns reviewed the Board’s tactical goals for FY15.

Four (4) Corner Project: Update Ex. Director Berns and Commissioner Patzer, both who serve on the 4 Corner Project oversight team, shared that the Welch-Comer led planning effort is underway and progressing. The Welch-Comer planning team is currently meeting with stakeholder groups, compiling stakeholder input that will be utilized in crafting the initial draft of the master planning document, which should be available in November.

9. BOARD COMMISSIONER COMMENTS No comments were provided.

10. PUBLIC COMMENT Susie Snedaker: shared the following comments:  She felt the meeting minutes from the October 8th LCDC special call meeting did an inadequate job of capturing the feedback/input from the Midtown stakeholders.  She felt the City of CDA’s PowerPoint presentation shared at the October 8th LCDC special call meeting was incomplete re. the topics discussed.

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She shared that the Midtown neighbors were surprised as to the existence of the City’s Midtown district overlay.

She shared that THC is a separate entity from the IHFA. She was disappointed that the LCDC special call meeting was not set up more as a workshop with the Midtown neighbors which she felt would have facilitated a more free exchange of ideas.

She was disappointed that Douglas Peterson (of THC) was not more interactive with the audience at the October 8th LCDC special call meeting.

Gregg Johnson: shared the following comments:  Hopes the Board would still entertain a walk and talk venue in Midtown as proposed at the September Board meeting.  The Midtown neighbors are still working with a developer (developer name withheld) on a new proposal for the Midtown site; they hope to have the proposal to LCDC within the next 30-45 days.  Referred to Douglas Peterson’s comments several years ago in the CDA Press re. not moving forward with a project in Midtown without the support of the neighborhood.  The Midtown neighbors want to stay involved in THC conversation as the concept gets refined over the next few months.  Shared that the Midtown neighbors meet at Kelly’s @ 5:30 on Mondays, and invited the Board to attend.

11. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of the LCDC executive director.

Motion by Commissioner Armon, seconded by Commissioner Hoskins, to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of the LCDC executive director.

Roll Call: Goodlander Yes Colwell Yes Armon Yes

Hassell Patzer Davis

Absent Yes Yes

Druffel Jordan Hoskins

Absent Yes Yes

Motion carried.

The LCDC Board entered into Executive Session at 6:04 p.m. Those present were the LCDC Board of Commissioners and LCDC legal counsel Quade. Deliberations were conducted regarding the performance review of the executive director. No action was taken in Executive Session and the LCDC Board returned to regular session at 6:20 p.m.

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12. PERSONNEL ACTION RELATED TO EXECUTIVE DIRECTOR Motion by Commissioner Colwell, seconded by Commissioner Patzer, to authorize the following changes to the LCDC’s Executive Director’s compensation package for fiscal year 2015, effective October 1, 2014: a 5% total compensation increase broken out as follows per the Ex. Director’s choice:  3% compensation increase to the Ex. Director’s salary, and a 2% increase in the employer’s contribution to the Ex. Director’s 401K Plan, or  2% compensation increase to the Ex. Director’s salary, and a 3% increase in the employer’s contribution to the Ex. Director’s 401K Plan.

Motion carried.

13. ADJOURN Motion by Commissioner Goodlander, seconded by Commissioner Patzer, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 6:25 p.m. Minutes prepared and submitted by Ex. Director Berns.

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SPECIAL CALL BOARD MEETING MINUTES WEDNESDAY

OCTOBER 8, 2014

6:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM

1. CALL TO ORDER Chairman Denny Davis called the LCDC Special Call Board meeting to order at 6:00 p.m.

LCDC Board members present: Davis, Goodlander, Jordan, Patzer, Hoskins, Druffel.

LCDC staff present: Berns.

Guests Present: Douglas Peterson, Renata McLeod, Troy Tymesen, Midtown stakeholders.

2. MIDTOWN STAKEHOLDER MEETING  DISCUSSION OF THE HOUSING COMPANY’S PROPOSED MIDTOWN MIX-USE WORKFROCE HOUSING PROJECT LCDC Chairman Davis welcomed Renata McLeod, City Clerk for the City of CDA, and Troy Tymesen, Interim Administrator for the City of CDA, to the board meeting.

Mrs. McLeod and Mr. Tymesen shared the following PowerPoint presentation outlining the City’s position on fair housing / workforce housing in the CDA community.

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_______________________________________________ Mr. Tymesen and Mrs. McLeod shared the following comments during the presentation:  The City of CDA is very committed to fair housing / workforce housing throughout the entire community.  Tenants who would qualify to rent apartments in the proposed Midtown mix-use workforce housing development would need to have jobs, have no criminal records, and maintain that status during their rental term.  On site supervision, as proposed in The Housing Company’s (THC) project, is key to having a successful workforce housing project.  The City has no data indicating that workforce/affordable housing projects increase crime in the areas where they are located.  The Midtown Infill Overlay was approved by the CDA City Council years ago to encourage higher density development in the Midtown commercial core area of 4th street. THC’s proposed project aligns well with that intent.  The City’s “needs assessment” research shows there is still a need for workforce housing rental units in the CDA community.

LCDC Chairman Davis welcomed Douglas Peterson, President of THC, to the board meeting. Mr. Peterson shared a summary as to how THC’s Midtown proposed mix-use workforce housing project has evolved over the years, and how the current proposal is designed to be the most competitive for the next round of federal workforce housing tax credit funding. Mr. Peterson shared the following comments during his visit with the Board:  THC has been working hard on this mix-use workforce housing project for the past six years.  The project has changed over the past six years, adapting to both economic variables and community input/feedback. Following community input/feedback, the proposed building was converted to three stories in height vs. the original four stories, the bulk of the building has been reduced and LCDC Special Call Meeting Minutes

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moved farther away from the alley towards 4th Street, and a new public pocket park has been added to the concept.

The current proposal calls for two floors of residential workforce housing rental apartment units (40 units in total) located over street level commercial space.

Tenants for these rental units would need to earn between $16,000-40,000/year to qualify.

People with the following occupations are examples of people in the CDA community who would qualify as tenants: City of CDA employee, radiology technician at Kootenai Health.

There are no rent subsidies associated with the proposed THC Midtown project.

There will be a full time on-site project manager, with an on-site office. THC hires experienced, trained on-site managers; people who are well trained to handle the position.

There is a new element to the federal tax credit funding program: a Qualified Allocation Plan (QAP). This new plan element allows for the conversion of the rental apartments to a home ownership product after 15 years. THC will include a QAP in their application package for the federal tax credits.  A QAP conversion plan will outline how, in year 14, the building will be converted from rental apartments to home ownership. Tenants in good standing would hopefully qualify as potential owners.

The building will be a smoke free building, with a designated smoking area.

THC rental leases are very detailed, and very thorough. Anyone who lives in the unit has to be named on the rental lease; you can’t have folks living in the units that are not on the lease.

As for auditing, there are announced rental unit inspections every quarter by THC. The project is also audited annually by the project’s financing partner, the Idaho Housing & Financing Association, and HUD. THC makes every effort to avoid problems arising with tenants. THC has over 1,500 rental units in their portfolio and has the necessary project management expertise in house.

LCDC Chairman Davis, on behalf of the Board, thanked Mr. Tymesen, Mrs. McLeod, Mr. Peterson, and the meeting attendees for participating in the Midtown conversation.

3. ADJOURN: Motion by Commissioner Goodlander, seconded by Commissioner Druffel, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 7:49 p.m. Minutes prepared and submitted by Executive Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

NOVEMBER 19, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Hoskins, Armon, Patzer, Davis, Colwell, Jordan.

LCDC staff present: Berns LCDC Legal Counsel present: Quade 2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Candace Godwin, Frank Orzell, Gregg Johnson, Nicole Kahler, Jim Hammond, Phil Provost, Kiki Miller and others.

Gary Hurst (801 Pine St, CDA) – commented about the proposed Innovation Center that may be located on the LCDC property south of city hall. Mr. Hurst expressed concerns with the proposed project; concerns associated with increased traffic, increased lighting, and the scope/scale of the proposed building. Mr. Hurst supports the concept of such a center, but not located south of city hall.

Carl Wickman – lives near Mr. Hurst and shared similar concerns with the proposed Innovation Center: more noise and more traffic concerns. Mr. Wickman does not feel that this type of project would be compatible with the existing neighborhood area. Mr. Wickman supports the concept of such a center, but not located south of city hall.

Gregg Johnson – Midtown neighborhood association. Mr. Johnson commented on the Midtown walkabout with the LCDC Board scheduled for Thursday November 20th, and shared that a future Saturday walkabout might be desired.  Commissioner Armon shared that he watched the public comment that Mr. Johnson provided to City Council on November 18th, indicating that the Midtown neighbors have a better plan that the LCDC was not considering. What plan – LCDC has not been provided a plan from the Midtown neighborhood association.

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Mr. Johnson shared that a plan technically does not exist, but there are some investors that are interested in possibly doing a different type of project on the Midtown site. These investors have contacted The Housing Company (THC) re. THC’s investment to date in Midtown. THC’s investment in Midtown appears to be too high for the interested investors to consider buying out.  Commissioner Armon shared that if these interested investors plan to submit a project application package for LCDC to review/consider, they should submit such a package soon.

Amy Lyons – commented representing the 2nd Street Homeowners Inc. entity (a homeowners association for six townhomes located on 2nd Street, between Foster Avenue and Miller Avenue). Mrs. Lyons commented that she does not feel the Midtown neighbors/stakeholders are being listened to, and that too much deference is being given to The Housing Company re. the proposed Midtown project.

4. APPROVAL OF MINUTES  October 15, 2014 Board Meeting Minutes Motion by Commissioner Colwell, seconded by Commissioner Hoskins, to approve the October 15, 2014 Board meeting minutes. Motion carried.

5. PROPERTY AUCTION BID OPENING: 728 Sherman Avenue Property Divestiture Background: Please refer to the September 17, 2014 and October 15, 2014 LCDC Board meeting minutes for background on this issue.

LCDC Chairman Davis acknowledged that the LCDC is in receipt of three (3) sealed bids for the 728 Sherman Avenue property. Chairman Davis opened the bids indicating the following bids were received:   

Tombstone Investment LLC: $161,600 (cash offer) Miller Development Group LLC: $161,250 (cash offer) Fifth Peak LLC: $151,100 (non-qualifying bid due to lack of proof of funds)

Chairman Davis stated that the bid from Tombstone Investment LLC in the amount of $161,600 is the high bid, and thus the successful bid for the property.

Motion by Commissioner Hoskins, seconded by Commissioner Armon, to accept the bid offer of $161,600 provided by Tombstone Investment LLC for the acquisition of the LCDC property located at 728 Sherman Avenue, Coeur d’Alene, Idaho contingent upon the terms and conditions as set forward in the sealed bid auction packet; also authorizing the LCDC Chairman and LCDC Ex. Director to execute the necessary property sale documents. Motion carried.

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6. BURLINGTON NORTHERN SANTA FE (BNSF) PURCHASE & SALE AGREEMENT (PSA)

Background: On July 15, 2014 CDA City Council authorized the purchase of the BNSF Railroad property in Coeur d’Alene for $2,500,000. Since that time representatives of BNSF, LCDC and the City have negotiated the terms of the PSA. If approved, the PSA will allow the City and LCDC fifty (50) days to review the title, survey and environmental reports concerning the property. If everything checks out as anticipated the City and LCDC would close on the purchase of the property on or before January 21, 2015. LCDC has agreed to pay $1,483,727 of the purchase price for the land located within it’s River and Lake Districts. The City will pay $1,016,273 for the land located between the two LCDC districts. Please refer to the August 20, 2014 LCDC Board meeting minutes for further background on this issue.

LCDC Ex. Director Berns and LCDC legal counsel Quade discussed the BNSF PSA with the Board. The PSA presented to the Board is a joint instrument between BNSF, the City of CDA and LCDC, that emanated in part from the Board’s decision at the August 20, 2014 Board meeting to approve an amount not to exceed $1,525,000 for acquisition of BNSF r-o-w property located in the LCDC’s Lake and River districts, subject to the crafting of an acceptable PSA, with said acquisition amount broken down as follows: Lake District: $750,000 ($728,193 + closing/legal costs); River District: $775,000 ($755,534 + closing/legal costs). Upon signing of the PSA, a 10% ($250,000) earnest money payment is required. The City will pay to BNSF earnest money in the amount of $101,627; LCDC will pay BNSF earnest money in the amount of $148,373 (Lake District: $72,819; River District: $75,554). The earnest money will be applied to the purchase price at the time of closing, or will be refunded if the purchase does not close.

RESOLUTION 15-02: A RESOLUTION OF THE COEUR D'ALENE URBAN RENEWAL AGENCY, dba THE LAKE CITY DEVELOPMENT CORPORATION (“LCDC”), KOOTENAI COUNTY, IDAHO AUTHORIZING THE REAL ESTATE PURCAHSE AND SALE AGREEMENT BETWEEN LCDC, BNSF RAILWAY COMPANY (“BNSF”) AND THE CITY OF COEUR D’ALENE, IDAHO RELATED TO THE PURCHASE OF CERTAIN REAL PROPERTY LOCATED IN COEUR D’ALENE, IDAHO. Motion by Commissioner Armon, seconded by Commissioner Hoskins, to approve Resolution 15-02 re. the acquisition of the specified segments as outlined in Resolution 15-02 of the Burlington Northern Santa Fe (BNSF) railroad right of way located in the LCDC’s Lake and River districts.

Roll Call: Goodlander Absent Hassell Absent Jordan Yes

Davis Colwell Hoskins

Yes Yes Yes

Druffel Absent Patzer Yes Armon Yes

Motion carried.

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7. A. PRESENTATION: North Idaho Family Group (NIFG): Pre-K Through Career Education Information Center – Candace Godwin Background: please refer to the October 15, 2014 LCDC Board meeting minutes for background on this initiative.

Commissioner Davis welcomed Candace Godwin and Kiki Miller, NIFG Board of Directors members, to the board meeting. Mrs. Godwin thanked the LCDC Board for the opportunity to once again visit with the LCDC on the NIFG’s Education Information Center (“Center”) project, and to address questions posed at the October 15th board meeting by providing an additional information packet.

Mrs. Godwin shared that since she last met with the Board, North Idaho College, Lewis Clark State College and University of Idaho have joined the Center initiative as a collective visionary partner at a funding level of $15,000. Three other area organizations also are seriously considering becoming Center visionary partners, but have yet to formally commit.  Commissioner Patzer commented that he views this Center funding request as similar to LCDC’s commitment to Jobs Plus. The benefits of this Center are hard to fully quantify, but the initiative has merit and will benefit the LCDC’s two districts as well as the community in general; definitely worth the investment.  Commissioner Armon shared that he feels the questions posed by the Board last month have been addressed, and he sees the Center initiative tying directly into helping grow jobs in the community. Great opportunity to get more people employable.  Commissioner Colwell thanked Mrs. Godwin for the additional information; it helped him gain a better understanding of the initiative.  Commissioner Davis shared that the NIFG funding request of LCDC is $15,000; a two year commitment of $7,500 / year. Can the second year commitment be conditioned on the success of the first year effort?  Mrs. Miller shared that the two year commitment by the visionary partners is designed to build the engine needed for the long-term sustainability of the initiative; so the visionary partners need to commit to the two year $15,000 total funding request.  Commissioner Jordan asked if NIFG is confident in the long-term sustainability of the Center initiative?  Mrs. Miller shared that yes, this will be a viable initiative for years to come.  Commissioner Armon asked if this is a onetime funding request of LCDC?  Mrs. Miller shared that yes, it is a onetime funding request of $15,000.

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 Commissioner Patzer asked if NIFG was able to benchmark any other “Center” ideas that are already established and working?  Mrs. Miller shared that NIFG has looked around for a long time for a Center model to benchmark, but did not find a model that met the envisioned needs. So NIFG took components of several similar concepts to develop the Center idea as proposed.

Motion by Commissioner Armon, seconded by Commissioner Colwell, to authorize a total of $15,000 of LCDC partnership grant funding as a Visionary Partner for the “Education Information Center” initiative as proposed, payable in two equal $7,500 installments over two fiscal years.

Motion carried.

7. B. PRESENTATION: CDA 2030 VISION UPDATE – Nicole Kahler Commissioner Davis welcomed Nicole Kahler, CDA 2030 Project Manager, to the board meeting. Mrs. Kahler updated the Board on CDA 2030’s progress, sharing that Phase 1 of the 2030 initiative lasted 15 months, a little longer than the planned 12 month time horizon. Funds spent during Phase 1 totaled $163,000 (see graphic below for cost details).

Phase 2 of the 2030 initiative is underway. One of the first actions underway is to seek 501(c)(3) tax status for the organization. Additionally, a new 19 member board of directors has been installed for the organization (see graphic below). The 2030 Board is comprised of a fine cross section of community leaders. Fundraising continues for Phase 2, with a significant portion of the Phase 2 donations already achieved. In closing, Mrs. Kahler shared that numerous organizations in the community are using elements of the CDA 2030 visioning process to help shape their short and long-term goals.

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8. COMMITTEE REPORTS A. Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell reviewed and discussed the October Lake and River District financial statements, and the October / November account payables sheet, with the Board.

Motion by Commissioner Hoskins, seconded by Commissioner Patzer, to approve the October financial statements and the October / November accounts payables for the Lake & River Districts as presented. Motion carried.

609 Sherman Avenue Lofts IRA: Assignment to Gringo Properties, LLC

LCDC Ex. Director Berns and LCDC legal counsel Quade shared that the owners of the 609 Sherman Avenue Lofts project (“Project”) have decided to refinance their interests in the Project with a third party: Gringo Properties LLC. Included in the Project’s refinancing matrix is the LCDC’s 609 Sherman Avenue Lofts Improvement Reimbursement Agreement (IRA) issued in 2011 with an original value of $404,993. The LCDC’s IRA is assignable to other parties should the LCDC agree. Following are excerpts from the draft LCDC IRA “Assignment of Payment Rights” document that summarize the issue:

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_____________________________________________________________________ Additionally, LCDC has received from Gringo Properties LLC a letter confirming that they are a sophisticated investor, and that they fully understand the 609 Sherman Avenue Lofts IRA financial instrument.

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Motion by Commissioner Colwell, seconded by Commissioner Armon, to approve the assignment of the 609 Sherman Avenue Lofts IRA as per the “Assignment of Payment Rights” document, inclusive of the confirmation received from Gringo Properties LLC acknowledging that they are a sophisticated investor and understand the 609 Sherman Avenue Lofts IRA financial instrument. Motion carried.

Recusal: Commissioner Davis recused himself from voting on this motion because he had assisted in the formation of 609 Sherman, LLC when this project was first proposed.

B. Housing Committee – Commissioner Deanna Goodlander Commissioner Davis, in Housing Committee Chair Deanna Goodlander’s stead, shared that board members will be meeting with Midtown stakeholders in Midtown on the 20th to continue conversations pertaining to their ideas/concerns for the Midtown area.

C. Parking Committee – Commissioner Brad Jordan Parking Committee Chair Brad Jordan (who serves as the LCDC representative on the City’s Parking Commission), shared that the City’s Parking Commission is considering adjusting the parking rules associated with the public library parking lot. Apparently, the existing two hour parking limit is not working well for certain library patrons who desire to spend more time in the library. The Commission is also still evaluating the need for additional handicap parking stalls in the downtown core area.

D. Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared that the LCDC sponsored Robinson Research scientific community “public perceptions and awareness” survey has been completed. The purpose of the Robinson survey was to gain a better understanding of citizen’s awareness of, and attitudes toward, LCDC. The Robinson team conducted a 600 sample survey of adults 18 years and older in the CDA community from September 3, 2014 through October 7, 2014 with a margin of error of +/- 3.98%. A margin of error of +/- 3.98% means that results have a 95% chance of coming within +/- 3.98% of results that would have been obtained if all qualifying households had been included in the survey. The following was learned of those surveyed:  65% have no awareness of LCDC,  73% have no idea what the acronym LCDC means. LCDC is a vague acronym and sounds very “corporate” when explained,  49% would vote in favor of the City of CDA continuing its relationship with LCDC,  The terms “urban renewal” and “TIF (tax increment financing)” are not understood,  The term “Community Projects” is widely understood,  A major benefit of LCDC is that LCDC projects beautify the city, LCDC Meeting Minutes

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The Kroc Center and CDA Public Library are well appreciated LCDC projects.

Commissioner Patzer shared that the committee plans to continue to work with Range NW on new communication initiatives based on the survey data, and will bring forward to the Board communication strategy recommendations at a future board meeting.

Commissioner Patzer also shared that the committee feels that the LCDC’s 2013 video needs to be updated. The proposed update for 2014 involves just updating the video’s interview sessions. The committee recommends working with Range NW to update the interview footage, including possibly multiple interviewees, with a budget for this exercise not to exceed $2,500.  Commissioner Colwell asked how often should the video be updated?  Commissioner Patzer shared that Range’s coaching is to update the video as needed.

Motion by Commissioner Jordan, seconded by Commissioner Hoskins, to approve an amount not to exceed $2,500 for updating the LCDC video as proposed. Motion carried.

E. Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon shared that the committee had no report to provide.

9. EXECUTIVE DIRECTOR’S REPORT Four (4) Corner Project: Update Ex. Director Berns and Commissioner Patzer, both who serve on the 4 Corner Project oversight team, shared that the Welch-Comer led planning effort is progressing, and that a public workshop to present/discuss initial plan concepts will be held on December 4th in the CDA Public Library; time still to be determined.

10. BOARD COMMISSIONER COMMENTS: No comments were provided.

11. PUBLIC COMMENT: No public comment provided.

12. ADJOURN Motion by Commissioner Hoskins, seconded by Commissioner Patzer, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 5:27 p.m. Minutes prepared and submitted by Ex. Director Berns.

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BOARD MEETING MINUTES WEDNESDAY

DECEMBER 17, 2014

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 4:00 p.m.

LCDC Board members present: Druffel, Hassell, Goodlander, Armon, Patzer, Davis, Colwell.

LCDC staff present: Berns

LCDC Legal Counsel present: Quade

2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Public Present: Frank Orzell, Gregg Johnson, Bill Robinson, Adam Graves, Scott Hoover, Amy Lyons, Keith Cousins, Teree Taylor and others.

No public comment was provided.

4. APPROVAL OF MINUTES 

November 19, 2014 Board Meeting Minutes Motion by Commissioner Goodlander, seconded by Commissioner Armon, to approve the November 19, 2014 Board meeting minutes. Motion carried.

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December 2, 2014 LCDC-City Council Workshop Minutes Motion by Commissioner Armon, seconded by Commissioner Goodlander, to approve the December 2, 2014 LCDC-City Council workshop minutes.

Motion carried.

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5. COMMITTEE REPORTS A. Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell reviewed and discussed the November Lake and River District financial statements, and the November / December account payables sheet, with the Board.

Motion by Commissioner Armon, seconded by Commissioner Patzer, to approve the November financial statements and the November / December accounts payables for the Lake & River Districts as presented. Motion carried.

Fiscal Year 2014 (FY14) Audit – Scott Hoover, Magnuson & McHugh (M&M) Commissioners Colwell and Davis welcomed Mr. Hoover to the board meeting.

Mr. Hoover shared the following comments re. the FY14 audit with the Board:    

The FY14 audit performed by M&M is recognized and conducted as an independent / external audit of the LCDC organization.

M&M audits are conducted using professional accounting standards.

The FY14 audit of LCDC provided a clean opinion of LCDC’s FY14 year; the best audit opinion an organization can achieve.

M&M reviewed the internal financial controls for LCDC and found that LCDC has very good internal financial controls. No recommendations for improvements re. financial management / oversight were offered by M&M. Motion by Commissioner Druffel, seconded by Commissioner Armon, to approve and accept the Fiscal Year 2014 audit report as prepared and submitted by Magnuson & McHugh. Motion carried.

B. Housing Committee – Commissioner Deanna Goodlander Housing Committee Chair Deanna Goodlander had no report to share.

C. Parking Committee – Commissioner Brad Jordan LCDC Ex. Director Berns, in Parking Committee Chair Brad Jordan (who serves as the LCDC representative on the City’s Parking Commission) stead, had no report to share.

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D. Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer welcomed Mr. Bill Robinson (Robinson Research) and Adam Graves (Range NW, Inc.) to the board meeting to discuss the results of the LCDC Public Perceptions and Awareness Survey.

Mr. Robinson provided an overview of the survey structure and the survey results, with highlights depicted below: Structure  Robinson Research was commissioned to conduct a 600-sample telephone survey among adults age eighteen and above in Kootenai County.  The purpose of the survey was to gain a better understanding of citizens’ awareness of and attitudes toward LCDC.  The telephone interviews were conducted at our facility from September 3, 2014 through October 7, 2014.  No fewer than fifteen percent (15%) of the interviews were monitored in their entirety and an additional ten percent (10%) were called back by a supervisor for verification of key points of the data. Interim trial runs of the data were cross-tabulated by interviewer as a quality assurance procedure. Calls resulting in a no answer, busy signal, or respondent not available were set aside for subsequent attempts before a replacement was issued.  Households in which someone worked in the market research, advertising, or public relations industries were excluded from this survey.  A 600-sample survey has a margin of error of +/-3.98%, which means that, in theory, results have a ninety-five percent (95%) chance of coming within +/3.98 percentage points of results that would have been obtained if all qualifying households had been included.  An even number of surveys were conducted in the northeast, northwest, and south areas (Highway 95 and I-90 were used as dividing lines) of Coeur d’Alene and outside Coeur d’Alene.

Results  The data makes it obvious that the greater familiarity a respondent considered him/herself to have of LCDC, the more intense their opinions of the agency.  The Kroc Center and the new downtown library appear to be well-liked projects, yet were not often mentioned when asked for a description of LCDC.  While the favorability mean score LCDC received (2.90 on a one to five scale) fell below the midpoint of the scale, half (49%) of respondents would vote in favor (strongly or somewhat) of Coeur d’Alene continuing its relationship with LCDC.  It appears that the term “urban renewal” could be a problematic way of phrasing the types of projects LCDC promotes, “community projects” elicited more responses.  McEuen Park was not rated as highly as the above two projects, but was mentioned far more often in the comments.

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 Three in five respondents (60%) named McEuen Park as an urban renewal or community project.  Respondents were more than twice as likely to report being unable to think of an “urban renewal” project than when asked to name a “community” project.  One in nine respondents (11%) demonstrated unaided awareness of LCDC.  One in four respondents (25%) reported awareness of LCDC.  Two in three participants (67%) had no awareness of LCDC.  Two in five respondents (40%) cited beautifies city as a benefit of urban renewal.  One in four participants (25%) cited increases taxes as a downside of urban renewal.  Half of respondents (50%) reported being somewhat or very familiar with LCDC.  Three in ten respondents (30%) were unable or unwilling to rate how favorably they viewed LCDC.  Nearly one in four respondents (25%) rated LCDC above the midpoint of the scale, the same portion that rated at the midpoint and below the midpoint.  Three in ten respondents (30%) reported that they were aware that LCDC provides funds to the City of Coeur d’Alene’s Arts Commission.  A majority of respondents reported being strongly or somewhat in support of using public funds for public art.  When respondents were asked to rate a series of projects on how beneficial they had been to the area, the Kroc Center and the new downtown library were ranked in the top two spots.  Riverview Tower (a commercial building on NW Blvd. near Riverstone) and McEuen Park were ranked in the lowest two spots, Riverview Tower received the lowest mean score by a wide margin. (note: LCDC had no partnership relationship with the developers of the Riverview Tower project).  One in twenty respondents (5%) demonstrated unaided awareness of tax increment financing.  One in four respondents (25%) reported having heard the term “tax increment financing”.  One in three respondents (33%) rated tax increment financing above the midpoint of the scale.  Nearly half of respondents (50%) reported they would vote somewhat or strongly for the city continuing its relationship with LCDC, compared to one in three (33%) who would vote against.  Commissioner Goodlander asked if folks surveyed could identify the Riverview Tower project?  Mr. Robinson was not sure if they knew what this project was, but it was inserted as a survey “control” to provide a non-LCDC affiliated project.  Commissioner Patzer shared the following comments:  an interesting survey result is that 75% of the folks surveyed have never heard of tax increment financing; LCDC’s primary source of funding.

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Evidence that LCDC has not done a very good job of explaining how the agency is funded.

11% of folks surveyed knew what LCDC was without prompting, while 67% of folks surveyed have never heard of LCDC. Therein lies an opportunity to engage the community.

67% of the community has no idea what LCDC does. Again, another opportunity exists to engage these folks, as well as to continue to better engage the 33% of the community that already has some understanding of the LCDC.

 Commissioner Patzer asked Mr. Robinson for a bit more detail re. the science behind the survey?  Mr. Robinson shared that the survey sample included a random mix of land lines and cell phone numbers. Five attempts were made to call each sample number. No messages were left on answering machines. Robinson Research knew the geographic location of all folks called.  Commissioner Patzer asked Mr. Graves that based on the survey results, where should LCDC focus its efforts on better engaging the public?  Mr. Graves shared the following suggestions:  LCDC should consider an enhanced public outreach effort beyond what LCDC is doing now.  LCDC should consider modifying the name and image of LCDC.  LCDC should “re-skin” the LCDC’s website to better communicate its message to the community by including more project-related photography and easier to understand terminology.  LCDC needs to position itself better as a community partner; there appears to be a huge void in the community’s understanding of what LCDC is and does.  Commissioner Patzer asked what type of other media should LCDC consider utilizing to better engage the community?  Mr. Graves shared that in the past, LCDC has been more of a responding organization, relying on tools such as its website. LCDC needs to do more outreach to the community; this is a big opportunity for LCDC. There are a lot of mediums and venues on the communication front, all with different cost structures. LCDC will need to determine how much money they want to budget to effectively tell the LCDC story. The goal should be to attain the “30,000 foot” understanding level with the community as a whole.  Commissioner Colwell shared that LCDC has struggled over the years on the communication front; it has not been easy to get folks to understand what LCDC does for the community. There could be an upside to looking at modifying LCDC’s name and logo.

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 Commissioner Druffel shared that if someone does not live within an LCDC district, he could see how someone outside of the district would not have an awareness and understanding of LCDC.  Commissioner Armon shared that he feels LCDC does not do a good enough job of sharing with the community the value that LCDC creates in the community. For example, how many folks in the community are aware of LCDC’s planned acquisition of the BNSF railroad right-of-way and the resulting value creation opportunities for the community.  Commissioner Goodlander shared that one of LCDC’s flaws, which is also a very critical strength in many ways, is that LCDC is typically very technical in its communication efforts. LCDC needs to find a better way to communicate the technical aspects of what LCDC has done, as well as what LCDC is currently doing.

Commissioner Patzer shared that the committee plans to continue to work with Range NW on new communication initiatives based on the survey results, and will bring forward to the Board communication strategy recommendations at a future board meeting.

Commissioner Patzer also shared that the LCDC video update process is underway, with plans to shoot a few more community stakeholder interviews in January.

E. Jobs Committee – Commissioner Mic Armon Jobs Committee Chair Mic Armon shared that the committee had no report to provide.

6. EXECUTIVE DIRECTOR’S REPORT Environmental Supplement to BNSF Real Estate Purchase and Sale Agreement The recently approved Purchase and Sale Agreement between BNSF, the City of CDA and LCDC stated that BNSF would conduct soil sampling on the sale property and provide the results to the City and LCDC. This sampling has been completed and BNSF seeks the Supplement to document that the City and LCDC have received the sample results and are aware that the sampling and testing were not a comprehensive representation of the site conditions. Also, the parties agree that the closing date for the purchase of the property should be extended from January 21, 2015 to March 5, 2015.

The City plans to seek further professional environmental review of the sampling results and the property. The Supplement does not cause any harm or additional risk to the City or LCDC, and the City and LCDC will have 50 days from the date BNSF signs the original PSA and the Supplement (anticipated signing is January 8, 2015) to complete any review and terminate the PSA if they choose.

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 Commissioner Patzer asked since BNSF is requiring a long-term easement on the western most section of the right of way, will BNSF be responsible for any future environmental problems they cause via that easement use agreement?  Mrs. Quade shared that LCDC has yet to see the easement agreement that BNSF is crafting, but she feels BNSF will most likely not indemnify the LCDC and or the City for future environmental issues that may arise from their use of the tracks in the easement area.  Commissioner Armon asked if LCDC can acquire insurance to cover BNSF-related environmental issues on the easement area?  Mrs. Quade shared that insurance coverage of that nature is very hard to acquire from insurance carriers, so LCDC most likely would not be able to obtain such insurance coverage.

Motion by Commissioner Goodlander, seconded by Commissioner Armon, authorizing the Chairman to sign the Environment Supplement to the BNSF Real Estate Purchase and Sale Agreement as presented. Motion carried.

4 Corner Project Update Ex. Director Berns and Commissioner Patzer, both who serve on the 4 Corner Project oversight team, shared that the Welch-Comer led planning effort is progressing, and that a public open house to present/discuss initial plan concepts was held on December 4th in the CDA Public Library. There was a good turnout for the open house; with many ideas/opinions shared on the concepts developed to date. Another public open house to review refined concepts is planned for the early part of February.

728 Sherman Avenue Closing Ex. Director Berns shared that the closing on the 728 Sherman Avenue property is scheduled for December 19th.

7. BOARD COMMISSIONER COMMENTS: No comments were provided.

8. PUBLIC COMMENT: Gregg Johnson: representing the Midtown neighborhood association. Mr. Johnson shared the following comments:  Compromise was discussed at the recently held City Council / LCDC workshop.

The neighborhood stakeholders are still interested in discussing possible project compromises  Potentially selling the LCDC and The Housing Company (THC) property assets in Midtown was mentioned at the workshop, could that be a viable option?  Before LCDC commits to the Midtown project, LCDC needs to see a market study to make sure the demand for the proposed rental units in Midtown exists.

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The neighborhood stakeholders have never thought that LCDC should back out of the Midtown effort. But given the current project concept, maybe it would be good for the LCDC’s image to start over in Midtown and consider a different type of project.  Commissioner Armon shared that the Midtown neighborhood stakeholders do not like THC project, but have yet to bring forward another viable project option for the Board to consider. Is there another Midtown project your group plans to bring forward for LCDC consideration? o Mr. Johnson shared that the neighborhood stakeholders do not have a project to bring forward, but they feel that a condominium project vs. a rental project would work better in Midtown.

Amy Lyons: shared that she feels the LCDC has an excellent website containing a lot of valuable information. Her concern is that LCDC will enter into a project that will not benefit LCDC in Midtown. She asked if the LCDC Board has received enough information re. the facets of the Midtown project. She shared that THC and the Idaho Housing and Finance Association are the same entity. Mrs. Lyons shared many additional statements/concerns/opinions on the Midtown project and the Low Income Housing Tax Credit program. Please view the LCDC Board meeting video (www.lcdc.org) for a comprehensive account of Mrs. Lyons comments.

Joe Corsio: shared that it is nice to hear that LCDC has received a clean audit report, and applauded the Board on continuing its efforts to become a more proactive agency.

Mr. Corsio shared that he is interested in the potential Innovation Center proposed for the LCDC ownership south of city hall. Mr. Corsio lives in the neighborhood south of city hall and would like to learn more about this possible initiative; he has concerns re. surrounding property values and increased traffic.  Commissioner Davis shared that LCDC has been approached by a small group of technology entrepreneurs that feel an Innovation Center would create great value for the CDA community, and they are interested in possibly locating such a center on the LCDC property south of city hall. There has been no formal overture to LCDC at this time by this group for this proposed Innovation Center; there is no project at this point. Commissioner Davis encouraged Mr. Corsio to continue to monitor LCDC board meeting agendas to see if this project comes forward for Board consideration.

9. ADJOURN Motion by Commissioner Patzer, seconded by Commissioner Armon, to adjourn. Motion carried.

The LCDC Board meeting adjourned at 5:31 p.m. Minutes prepared and submitted by Ex. Director Berns.

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COEUR D’ALENE CITY COUNCIL / LAKE CITY DEVELOPMENT CORPORATION WORKSHOP MINUTES CDA PUBLIC LIBRARY: COMMUNITY ROOM DECEMBER 2, 2014 12:00 noon 1. Call to Order Chairman Denny Davis called the workshop meeting with City Council to order at 12:00 p.m.

LCDC Board members present: Armon, Goodlander, Patzer, Davis, Colwell, Jordan, Hassel.

LCDC staff present: Berns

LCDC Legal Counsel present: Quade

2. LCDC / The Housing Company’s Midtown Mix-Use Workforce Housing Initiative The following LCDC/City Council workshop minutes were compiled by Renata McLeod, City Clerk, City of CDA.

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Mayor Widmyer stated that the purpose of the meeting was to provide the City Council with an opportunity to ask questions regarding the proposed Housing Company and the LCDC mid-town project.

City Administrator Jim Hammond explained that this meeting was based on a motion of the City Council in order to seek additional information from LCDC and the neighborhood representative regarding the midtown project.

LCDC PRESENTATION: Tony Berns presented the history of the proposed development starting in 2002 by the acquisition of land in mid-town. He explained the strategic goal for the Lake District is to bring a mix of housing opportunities, including the need for workforce housing. He reiterated that the Fair Housing Act applies to the City and projects brought before it. The zoning overlay district was approved in 2004, which encourages a mix of housing with retail. Then in 2006, LCDC acquired the Rose Bud tavern, which provided more development opportunities for the land. Mr. Berns explained that a few development projects were discussed at that time but they could not make them pencil. In 2008 the Paris Flea Market building was acquired by LCDC in partnership with The Housing Company. The Housing Company purchased the Youth Ranch property in order to make the building envelope large enough to make a project financially feasible. He presented a rendering of the currently proposed project.

Kathryn Almberg with the Housing Company presented the timeline of events between the LCDC and the Housing Company. In 2010 Doug Peterson, from The Housing Company, began holding design charrettes with the neighborhood. In 2011 the building design proposed was four stories and the building covered a majority of the lot. After input from the neighbors in 2012, The Housing Company changed the design to be three stories with open space upon the lot and reduced the size of the project by 25%. Ms. Almberg explained that in 2013 and 2014 they continued to work with the Architect and LCDC regarding market needs. They continued to work with the neighborhood regarding design and modified the design to include open space on the corner at the request of the neighbors. The Housing Company is now ready to submit project for funding in February 2015.

Mayor Widmyer asked for clarification regarding the number of residential units and commercial square footage. Ms. Almberg explained that the commercial space will be approximately 5,800 sq. ft. and they are proposing 40 residential units. Councilmember Gookin asked if other Housing Company projects have commercial space. Ms. Almberg confirmed that they have a project in Pocatello that includes commercial space that is no longer owned by The Housing Company. She explained that The Housing Company is a nonprofit so it is not in their mission to be commercial property owners. Councilmember Gookin asked if they would sell the mid-town commercial space. Ms. Almberg said they could work toward selling the commercial space.

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Mayor Widmyer asked what the estimated property taxes would be from the proposed project. Ms. Almberg said that it is an $8.5 million project and estimated it would be $40,000 to $50,000 in property taxes per year.

NEIGHBORHOOD PRESENTATION: Gregg Johnson stated that he is representing the mid-town neighborhood. He stated that the project began as an owner occupied project which the neighborhood thought would bring value, and then it was switched to workforce housing. He agreed that The Housing Company has listened to some of the neighborhood design concerns. The neighborhood has expressed concern that an additional 40 rental units would affect the rentals that already exist and that there would be no opportunity for ownership. Mr. Johnson said that he believes more owner occupied units are needed in the neighborhood. He explained the petition process they used to collect 150 signatures that included businesses and residents saying “No,� to the proposed development. The neighbors just want to have a say in what develops in their neighborhood. He stated that good examples of neighborhood development are the Perry and Garland Districts of Spokane. Mr. Johnson expressed that the design does not blend with the neighborhood and has no drive-by value. He stated that the goals reflected in the Vision 2030 Plan are not being addressed with regard to community history, small town feel, and a blending of old and new.

Mr. Johnson explained that the property purchased by LCDC and The Housing Company has an inflated price due to the investment of improvements and designs and that should not be passed on to potential buyers. He believes the project has forgotten the neighborhood and is not the right fit. He believes there are too many rentals and there is too much impact for one corner of a neighborhood. He stated the neighborhood had questions about the project turning into Section 8 housing and if there has been any study of the need and impact this development will have on the community.

Ms. Almberg explained that Section 8 housing program ended in the late 1970s so there is no way this project could be converted to that program. She explained that this development is part of the Section 42 workforce housing program that would benefit citizens with incomes between $15,500 and $34,000, which is usually a $12.45/hour worker and there are no rent subsidies. Mr. Berns stated that this development is in the infill overlay and would allow up to a 125,000 sq. ft. building; however, The Housing company is proposing a development with 1/3 the density as allowed by right. City Planner Tami Stroud clarified that traffic patterns and impacts would have to be reviewed by the Engineering Department before zoning was approved.

DISCUSSION: Discussion ensued regarding the process and option for LCDC to liquidate the property. Commissioner Armon reiterated that whoever would buy the property would be able to develop it as they want rather than listening to the neighborhood and compromising as The Housing Company is today. Mr. LCDC Workshop Minutes

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Johnson clarified that the neighborhood wants LCDC to be a partner in this and not step completely out and hopes they could work together without this project.

Discussion ensued regarding other project proposals not coming forward with better offers that are economically feasible.

Councilmember Miller asked for clarification regarding what the City Council’s role would be in this development as the property is already zoned and would require no additional Council approval. Deputy City Attorney Warren Wilson explained that the Council could listen to the concerns and that the only item that would come to Council would be an appeal of the design review process. Mr. Johnson clarified that his intent was to be heard by an elected official and seek options for those who live and are invested in the area.

Councilmember Gookin asked if The Housing Company evaluates the need for a project before they plan a development. Ms. Almberg explained that a third party market study is conducted which reviews growth, vacancy rates, etc. She clarified that for this project they reviewed the market in February and determined that out of 738 units (affordable to the workforce income group) only 6 were vacant. This demonstrates pent up demand with a 0.4% vacancy, and a total market vacancy rate of 1.5%. Additionally, another study will be conducted starting next week to be included with the February grant application, and anything less than 5% is determined to be a high demand market.

Councilmember McEvers asked Mr. Johnson to explain what he meant by the vibe of the neighborhood. Mr. Johnson stated that it has always been a slow turn of change and seems to have a funk different to downtown and the neighbors do not want to lose it.

Commissioner Jordon stated that one of the missions of LCDC was to help get mid-town moving forward and that is why LCDC was willing to pay a higher price for land. Additionally, the shift from condominiums to rentals was a result of the market not working and clarified that tax credits are managed well. He said he was committed to help midtown and thinks this project would do and may not be perfect.

Councilmember Adams asked what the compromise would be for the neighborhood if there was one. Mr. Johnson said the project should be owner occupied with some retail, but not four stories. Mayor Widmyer noted that the challenge is that even in a 40 unit condominium project the owners could rent their units, so it would not solve all the issues. The Housing Company offers one property manager and does as good job of operating their facilities.

Councilmember Edinger felt that the neighborhood has to work out some compromise.

Ms. Almberg offered that the exterior design could still be discussed and amended with the neighborhood input. Mr. Johnson reiterated that the rentals are the issue, LCDC Workshop Minutes

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as the neighborhood wants owner occupied. Councilmember Gookin expressed that he believes LCDC should better form their strategic plans and goals so they are less vague. Mr. Berns stated that the 2003 plan has a specific section regarding mid-town that is very detailed. Commissioner Patzer explained that there have been positive impacts from LCDC investments in the neighborhood including the VFW ability to sell their property, and the Capone’s buying more property, as people are optimistic about the future based on positive changes within the neighborhood. He noted that Mr. Johnson’s group is not the same as four years ago and that The Housing Company has made many compromises. He felt that they would never be able to satisfy all the parties involved between owner occupied versus rentals. Commissioner Colwell said that any developer would have to look at economics to make a project work, and a private developer would have to build four stories minimum to make the property economically feasible.

Ms. Almberg reiterated that it is very difficult to make any of these projects economically feasible, especially as a condominium deal as they would be required to have a percentage of pre-sells before they break ground and it would be years into the future. Mr. Johnson stated that the neighborhood would be willing to wait two years for development of the property. Ms. Almberg clarified that the next funding round would require a grant submittal in February, which is the intent of The Housing Company.

Mayor Widmyer thanked Mr. Johnson for bringing information forward and felt more conversation could be held on the matter regarding the design elements.

3. Adjourn Motion by Commissioner Goodlander, seconded by Commissioner Colwell, to adjourn. Motion carried.

The LCDC workshop meeting adjourned at 1:18 p.m.

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