2009 Board Meeting Minutes by Tony Berns

LAKE CITY Development C O R P O R A T I O N

2009 Meeting

Minutes

BOARD MEETING MINUTES WEDNESDAY

JANUARY 21, 2009

5:30 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Davis called the LCDC Board meeting to order at 5:33 p.m. LCDC Board members present: Goodlander, Davis, Elder, Colwell, Hassell, Jordan, Hoskins, Patzer. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Gordon Dobler, Dennis Grant, Dick Stauffer, Tom Hasslinger, Chris Hollibaugh, Craig Wilcox. Craig Wilcox – Craig shared an idea with the Board re. the placement of benches at CityLink bus stops around town. Craig shared the bench idea on behalf of a subcommittee formed under the auspices of the Kootenai Metropolitan Planning Organization (KMPO). Craig and team are working with the City of Coeur d’Alene, CityLink, KMPO and other entities on the concept. Craig shared that a risk assessment analysis has been completed and the appropriate insurance coverage will be in place once the initiative is sanctioned. Craig and team are looking for bench sponsors to help pay for the costs of the benches. Bench installation will be performed by local service organizations at no cost. Craig shared that his current visit with the Board is just informational in nature, and that he will come back to the Board with a funding request once the bench initiative gains steam.  Commissioner Patzer asked how many benches are planned to be installed, and how much do the benches cost? Craig shared that they are currently targeting 20 bus stops as a start (there are 88+ bus stops in the system). The cost of a bench is not absolute at this time, but will most likely be in the $500 range depending upon the resolution of placement issues pertaining to urban vs. rural areas.

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 Commissioner Hassell asked if there will be any bus shelters installed? Craig shared that a few folks are interested in buying and installing shelters, but the KMPO subcommittee is just focusing on benches at this time.  Commissioner Elder asked for clarification on the cost of bench installation and shared with Craig that the LCDC can only spend funds on projects located within the LCDC districts. Craig shared that he understood the funding limitations of the LCDC, and shared that the current plans are for the benches to be installed at no cost by service organizations like the Kiwanis.  Commissioner Jordan asked if any federal dollars were available for this initiative? Craig shared that the subcommittee is waiting to see if the Administration’s proposed stimulus package will contain any such funding – they are not sure at this time. Board members thanked Craig for his comments and wished his team well on their project, and look forward to hearing back on how the project is progressing. 4. APPROVAL OF MINUTES  December 17, 2008 Board Meeting Minutes Motion by Elder, seconded by Goodlander to approve the December 17, 2008 Minutes. Motion carried. 5. COMMITTEE REPORTS Finance Committee – Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell reviewed and discussed the December Lake and River District financial files, and the December account payables sheet, with the Board. Motion by Goodlander, seconded by Hassel, to approve the December accounts payables and the December financial packets for the Lake & River Districts as presented. Motion carried. Midtown Project Financing Recommendation Chairman Colwell, along with Committee members Dave Patzer and Denny Davis, shared that the Finance Committee has analyzed various ways to fund LCDC’s share of the 2009 Midtown 4th Street reconstruction and placemaking initiative. Rod, Dave and Denny shared that, from a financial planning perspective, the Committee concluded that funding the LCDC’s estimated

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project cost contribution of $1,654,000 would best be accomplished by financing $850,000 of the project cost, and paying the remaining portion of the project cost utilizing existing Lake District cash reserves. The Committee feels that the LCDC could arrange financing for the $850,000 in the form of a tax increment revenue anticipation note, and benefit from favorable loan terms due to the current economic climate. In closing remarks, Rod shared that the Committee believes the aforementioned funding formula for the Midtown project is the best financial approach for the LCDC, and thus the Committee recommends said approach to the Board.  Commissioner Goodlander asked Rod, due to the current economic climate, if LCDC will have any problems acquiring bank financing for the Midtown initiative? Rod shared that LCDC Lake District financials are solid, and that the projected tax increment revenue stream for the Lake District is strong; he does not anticipate any problems in obtaining financing.  Commissioner Elder asked what the interest rate might be associated with this financing proposal? Rod shared that in this current market, he envisions an interest rate in the 4-5% range. Motion by Elder, seconded by Hoskins, to accept the Finance Committee’s recommendation that the LCDC seek financing for $850,000 of the total estimated LCDC Midtown Project cost of $1,654,000 and pay for the remaining portion of the Midtown Project utilizing Lake District cash reserves. Motion carried. Library Pledge Payoff Recommendation Chairman Colwell shared that while reviewing the financial status of the Lake District via the Midtown analysis, the Committee felt comfortable in recommending to the Board that the Board consider paying off the outstanding portion ($150,000) of the LCDC’s 2007 $250,000 pledge to the City of CDA (this LCDC pledge was intended to help offset the additional costs associated with the construction of the CDA Public Library). This recommendation is based upon financial modeling forecasts used by the Committee to evaluate the pros & cons of retiring certain debt obligations early. In this case, the Committee feels that the outstanding CDA Library debt obligation should be retired early to balance revenues and expenditures anticipated in future fiscal years.  Commissioner Elder asked Rod to provide more of an explanation to the TV audience as to why the Committee recommends financing $850,000 for the Midtown project, while also recommending retiring the Library pledge debt obligation early? Rod shared that the Committee

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recommendations are based upon the nature of the specific projects, the size of the debt obligation, and the timing associated with each project. In the case of the Library, the remaining portion of the LCDC’s pledge to the City is in an amount that will not hinder the Board’s possible actions on other funding fronts in the Lake District. The Midtown project’s fiscal scope and scale is much more significant, and thus is more impactful to the projected cash flow forecast for the Lake District; therefore the recommendation to finance a significant portion of the Midtown debt obligation. Motion by Elder, seconded by Patzer, to accept the Finance Committee’s recommendation that the LCDC payoff the outstanding Coeur d’Alene Public Library pledge amount of $150,000 to the City of Coeur d’Alene in the first quarter of 2009. Motion carried. FY2008 Audit Update LCDC Executive Director Berns shared that the fiscal year 2008 is nearing completion. Auditors are awaiting a few final reports from the County to finalize the audit package. Q1FY09 Report LCDC Executive Director Berns shared and reviewed the first quarter (Q1) fiscal year 2009 quarterly report with the Board. The three page report provides updated information pertaining to LCDC partnership projects and the LCDC’s strategic property portfolio. Sorenson School Partnership ADA Funding: Update Background: Please refer to December, 2008 LCDC Board meeting minutes for more background regarding this initiative. Executive Director Berns shared that he is working with LCDC legal counsel to develop a draft LCDC/School District 271 agreement that will structure the partnership between the two entities involving the Sorenson “Americans with Disabilities Act” (ADA) funding improvements. Tony shared that he hopes to have a copy of the draft agreement to SD271 leadership by the end of January. 

Housing Committee – Jim Elder Housing Committee Chair Jim Elder welcomed Dick Stauffer (Miller-Stauffer Architects) to share an update with the Board regarding the Midtown Idaho Housing & Financing Association (IHFA) workforce housing project. MillerStauffer is the architectural firm retained by the IHFA to design the Midtown mix-use workforce housing project.

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Dick Stauffer joined the Board meeting and shared with the Board that his visit today might be a bit premature as the project’s concept is still evolving. Dick shared that IHFA is still scoping the project to determine how “big” it should be; i.e. how many residential units, how much office/retail space, how big of a building envelope on the site. Dick shared that information presented today to the Board will be slightly vague because some project issues are still fluid. Dick shared the following project conceptual graphic with the Board, stating that this is still just a concept and not an actual depiction of the project:

The project will be either 3 or 4 stories tall (there is a 45’ height limit in the City’s Midtown infill district), and contain 25-35 residential units. Residential units will range in size from 600-1,800 square feet. Initial plans call for approximately 8,000-10,000 square feet of commercial space (i.e. retail/office) on the first floor at street level. The project will have 40-50 secure parking spaces onsite, plus additional non-secure public parking. Via the overall Midtown redevelopment project proposed by the City and LCDC, there will be a significant net gain in overall public parking for Midtown. Proposed IHFA project enhancements include:  Pedestrian connection through the site (i.e. from 4th street to the alley and parking)  Areas for public art  Public space  Upscale design and façade materials  Sidewalk canopies LCDC Meeting Minutes

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 Streetscape amenities Estimated overall “fully loaded” project cost (i.e. construction costs, permits, fees, design, etc.) is $4-$10 million.  Commissioner Patzer shared that at the last Midtown stakeholder meeting held in November, a conceptual design graphic was shared with the stakeholders that looked very similar to the graphic showed tonight at this Board meeting; is that a fair assessment? Dick shared that yes, the graphic presented tonight is very similar to the design shared with the Midtown stakeholders in November.  Commissioner Elder asked about the project’s time frame? Dick shared that IHFA does not have an official start date set yet, but plan to coordinate the project’s construction effort with the planned 4th street reconstruction effort scheduled for this coming spring.  Commissioner Davis asked when the existing Idaho Youth Ranch building (located on the corner of 4th and Roosevelt) will be razed? Dick estimated that the Idaho Youth Ranch organization will move into their new building within 4 weeks, so the demolition of the old Youth Ranch building will probably occur within possibly 6-8 weeks.  Commissioner Hassell likes the graphic concept as presented and congratulated Dick on a fine effort. Al thinks the proposed design has a unique look and feel, very fitting to Midtown.  Commissioner Elder asked if IHFA plans to use brick on the façade? Dick shared that brick will be the primary façade element. Board members thanked Dick for his presentation and efforts, and would welcome him back for an updated presentation once the design becomes final. 

Parking Committee – Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, shared that the Commission’s “in lieu of” parking recommendations for Midtown have been approved by City Council. The price of an “in lieu of” parking space in Midtown will be $5,000 and the Midtown “in lieu of parking” area has been geographically defined by the City and is depicted as follows:

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 working on the street tree plan – no major issues encountered to date with the planned installation of the new street trees. However, a few existing trees will need to be removed due to road alignment issues. Commissioner Davis asked if the property owners have been contacted regarding the tree removals? Gordon shared that the property owners have not been formally contacted, but will be contacted soon to discuss the issues.  working on street light placement  working on the design of colored accents for the sidewalks and intersections in the “placemaking” area of the project (Roosevelt Avenue to Boise Avenue). Gordon shared that the construction plans should be completed in early March and ready for bidding. The only issue that has arisen that will need a bit more work is the issue of tree irrigation. Irrigating the trees in the Midtown project area is somewhat complex, and it appears the best solution will involve a “common irrigation system”. This type of system will water all of the street trees via drip irrigation from one main system. These types of systems are usually paid for and maintained by a Business Improvement District (BID). However, since the Midtown stakeholders did not want to form a BID, the issue becomes who will pay for, and maintain, the common irrigation system? The City? The LCDC? A City/LCDC partnership?  Commissioner Goodlander asked if the BID issue should be revisited to address the tree irrigation issue? Gordon is reluctant to reopen the BID conversation because there was very little support for a BID from the Midtown stakeholders during all of the public meetings held last summer. Gordon does not view the tree irrigation issue as a major issue; he views the issue as solvable without a BID.  Commissioner Elder asked how the project will be scheduled and sequenced? Gordon shared that the goal is to start reconstruction work in April or May, 2009. As for project sequencing, the strategy will be to open up the entire project area at one time, providing the contractor full flexibility in an effort to reduce the overall construction time frame. Historically, property owner and business owner feedback has been that they would rather be inconvenienced for a short period of time given an overall shorter project duration. Tentative plans are calling for a 3 month construction time frame. The challenge for the project team is to maintain good access to the project area during the construction period via a business access plan; i.e. directional signs on 3rd and 5th streets at key intersections.  Commissioner Patzer asked if there will be any performance incentives, or performance penalties, included in the contract? Gordon shared that there will be a defined time frame for the project and that

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penalties would be incurred by the contractor if that time frame was exceeded.  Commissioner Patzer asked if there has been discussion re. the hours of construction? Gordon shared that historically, contractors are asked to start work later in the morning (e.g. 7 a.m.) and are asked to conclude work at dusk (e.g. 7 p.m.) on weekdays and Saturdays. The contractors typically do not work on Sundays unless the construction timeframe so dictates.  Commissioner Patzer asked if the project will last through the summer? Gordon shared that if the contractors are up and running in May, they should be done in July. The City would rather have the contractors finish the project in one timeframe rather than stop them in mid-June and restart the project after Labor Day. A shorter project time frame is the better plan, without breaking the job into two parts.  Commissioner Patzer asked if the contractor will be asked to start work in one direction, e.g. south to north on 4th? Gordon shared that his plan will be to open up the whole area at once and let the contractor determine the best way to sequence the project. Contractors usually develop some creative, and cost/time saving, ideas for how to make the projects work better. Board members thanked Gordon and Dennis for attending the meeting, and invited them back on a monthly basis to provide project updates to the Board. Communication Strategy Implementation: Commissioner Patzer shared that the Committee met on January 20th to review initial recommendations for the re-designed LCDC website. Chris Hollibaugh, LCDC/Chamber Online Communication Coordinator, developed the website recommendations and presented them to the Committee at the meeting. Committee members shared their insights with Chris, and asked Chris to have a refined website re-design available for Board review at the February LCDC Board meeting. 6. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Tony Berns reviewed the first quarter fiscal year 2009 Lake & River District Scorecards, discussed operational issues and updated the Board on LCDC initiatives. Lake District Strategic Plan (ZGF Plan) and Walker/Macy Plan Reviews Tony asked the Board to review both of these plans over the next several weeks. Commissioner Nipp has volunteered to spend some time at the February and March Board meetings reviewing the recommendations of these two well done

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planning efforts. The 2003 ZGF plan will be reviewed and discussed at the February Board meeting, and the 1999 Walker/Macy plan will be reviewed at the March Board meeting. 2009 LCDC Strategic Planning Session Tony advised the Board that they should target either April or May to schedule the Board’s 2009 strategic planning session (formerly referred to as the LCDC retreat). Holding the strategic planning session in April or May will allow for the inclusion of any fiscal impacts associated with the Board’s 2009-10 tactical planning efforts in the FY10 budgeting process which begins in June. 3rd & 4th Street Midtown Lots Tony shared that initial ingress/egress work has been completed on the 4th Street lot. Final ingress/egress work will coincide with the 4th street reconstruction effort scheduled for the spring/summer of 2009. Snow removal efforts have been completed wherein the record snow from the December storms has been removed from the lots to facilitate use by the public and the Idaho Youth Ranch. Lot striping and lighting will be the next foci as weather permits. 7. PUBLIC COMMENT No public comment. 8. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Elder, seconded by Hoskins, to enter into Executive Session, as provided by Idaho Code 67-2345(1) Subsection C: to discuss acquisition of an interest in real property which is not owned by a public agency.

Roll Call: Nipp Absent Colwell Yes Elder Yes

Goodlander Patzer Davis

Yes Yes Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. The LCDC Board entered into Executive Session at 6:55 p.m. Those present were the LCDC Board of Commissioners and LCDC Executive Director Tony Berns. Matters discussed were those of property acquisition. No action was taken and the LCDC Board returned to regular session at 7:35 p.m. Following Executive Session, the Board discussed the possibility of touring the Kroc Community Center in either March or April. Ex. Director Berns will

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explore possible tour dates. The Board also discussed potential meeting sites for the upcoming LCDC annual strategic planning session. 9. ADJOURN Motion by Colwell, seconded by Elder to adjourn. Motion carried. The LCDC meeting adjourned at 7:45 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

FEBRUARY 18, 2009

5:30 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Davis called the LCDC Board meeting to order at 5:33 p.m. LCDC Board members present: Goodlander, Davis, Elder, Hassell, Jordan, Hoskins, Patzer, Nipp. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Dennis Grant, Tom Hasslinger, Chris Hollibaugh, Dick Stauffer, Denise Lundy, Dale Baune, Alan Soderling, Arlin Berge, Elizabeth Garland, Dell Hatch. No public comment. 4. APPROVAL OF MINUTES  January 21, 2009 Board Meeting Minutes Motion by Hassell, seconded by Elder to approve the January 21, 2009 Minutes. Motion carried. 5. LAKE DISTRICT STRATEGIC PLAN REVIEW LCDC Board Commissioner Charlie Nipp led the Board, meeting attendees, and the home viewers through a review of the 2003 Lake District strategic plan as prepared by the consultant group Zimmer-Gunsul-Frasca (ZGF). The ZGF Plan is available for review in its entirety on the LCDC website (www.lcdc.org). Charlie and Board members spent significant time reviewing pages 102-104 of the report discussing the successes to date by the LCDC as per the ZGF recommendations for the Downtown, Midtown and NW Boulevard areas of the Lake District.

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A key insight generated by the report is that communities take a long time to grow, meaning that patience, good planning & partnerships are key ingredients to the success of long-term value creation within a community. Charlie ended his presentation by emphasizing to Board members and the Coeur d’Alene community how much the LCDC has accomplished over the past few years per the direction and recommendations of this strategic planning effort. Charlie suggested that the Board consider updating this strategic planning effort since it has been five years since the plan was completed. The April LCDC strategic planning session would be an optimal time for such a Board discussion. Board members thanked Charlie for his presentation, and all agreed that updating this planning effort will be a discussion topic at the April strategic planning session. 6. COMMITTEE REPORTS Finance Committee – Rod Colwell Lake & River District Monthly Financials Lake & River District Payables LCDC Executive Director Tony Berns, in Finance Committee Chair Rod Colwell’s stead, reviewed and discussed the January Lake and River District financial files, and the January account payables sheet, with the Board. Motion by Goodlander, seconded by Nipp, to approve the January accounts payables and the January financial packets for the Lake & River Districts as presented. Motion carried. Midtown Project Financing - Update LCDC Executive Director Berns updated the Board as to progress made on the Midtown financing initiative involving seeking bank financing in the amount of $850,000 of the total estimated LCDC Midtown Project cost of $1,654,000. Bank financing proposals are due by the end of February and to date, two of the five banks contacted have expressed interest in submitting a financing proposal for the Midtown project. Sorenson School Partnership ADA Funding: Update Background: Please refer to December, 2008 LCDC Board meeting minutes for more background regarding this initiative. Executive Director Berns shared that a draft LCDC/School District 271 agreement involving the Sorenson “Americans with Disabilities Act” (ADA) funding improvements has been developed by the LCDC and reviewed by SD271 leadership. A final draft of the agreement is expected to be completed

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by early March for Board review/approval at the March 18, 2009 Board meeting. Trails Edge Condominium Project Parking Cost Issue Background: on 2/21/07 the LCDC Board agreed to fund $42,194 of public improvements associated with this project in the form of a grant payable over 3 years. One element of the $42,194 was $6,250 towards the off street “public realm” parking element of the project. This value equates to 25% of the projected public realm parking cost which was submitted at $25,000 ($25,000*.25 = $6,250). The Board felt that some level of public support was warranted for the developer to create off street parking to facilitate the parking issues in that area of town. The total build out value of the project was estimated in 2007 to be $4 million. As of 2008, the assessed increment value of the project was $425,029 yielding a FY09 increment revenue stream to the LCDC of $3,545. If the project is fully assessed at the estimated $4 million value, the project will yield an estimated annual increment revenue stream to the LCDC of about $33,000. Tony shared with the Board that an issue has developed re. this LCDC partnership grant. A cost submittal error was contained in the developer’s application package when sent to the Board in 2007. The actual public realm cost of the three off street parking spaces created by the project was equated to be $52,500 and not the $25,000 as submitted. Art Elliott, developer for the project, discovered the error recently when compiling the project’s cost validation package, and asked if there might be some form of reconsideration on the Board’s part to increase the support level for the project’s public realm parking element above the $6,250. Mr. Elliott’s 2/12/09 correspondence to the LCDC regarding this matter follows: ____________________________________________________ Tony, I went back and reviewed Trail’s Edge LLC’s original request. The footnote on the Underground Parking request reads as follows “the parking garage provides two additional parking spaces over the requirements of the city code thus improving the neighborhood by getting vehicles off the street. This figure represents the proportionate cost of providing those two spaces underground.” There were actually three extra spaces created at an average cost of $17,500 or a total of $52,500.00 rather than $25,000.00 as originally requested. On a 1 in 4 basis this would increase the payment to $13,125.00. In addition we ask that you increase the proportionate contribution to 1 in 2 or $26,250.00. The project is viable and 100% contributing to the tax base. The original design of the project could of have had open parking on the ground floor. This, however, would have entailed unsightly open parking with a two

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story living space above requiring a flat roof to meet height restrictions to incorporate the allowed living space. In keeping with an architectural design reflecting the character of the surrounding Sanders Beach area the election was make to incur the extra expense to construct underground parking. This allowed a much more attractive and architecturally interesting building design. Art ___________________________________________________________ Denise Lundy was invited to join the Board meeting to address a few project related questions. Denise was the realtor involved with selling the Trails Edge condominiums and was representing the Trails Edge development team at the meeting.  Commissioner Patzer asked Denise how on-street parking is working in the neighborhood, and also asked if the Trails Edge residents are utilizing any on-street parking? Denise shared that to her knowledge, no Trails Edge residents are parking on the street, and that the project has not created any adverse on-street parking issues.  Commissioner Davis asked how many residential units comprised the project, and how many parking spaces are contained within the development? Denise shared that the project contains eight residential units, and sixteen internal parking spaces.  Commissioner Jordan asked since it appears that the project is not fully assessed at this point, are all of the condominium units sold? Denise shared that all of the residential units have been purchased.  Commissioner Elder asked how the $17,500 per structured parking space value was calculated? Denise shared that Art Elliott supplied the cost information as submitted and that she did not have the detail backup in hand. Jim felt the price per space seemed a bit high and that Art would need to provide some more detailed cost information as to the cost’s derivation.  Commissioner Davis commented as to the 2007 derivation of the Board’s 25% contribution percentage. Denny shared that back in 2007, the Board had thorough conversations pertaining to the LCDC’s role in supporting “public realm” off-street parking. The development team made a good case back in 2007 that they would build a few extra off-street parking spaces within the project to mitigate the project’s parking impact on Mullan Avenue and the accompanying Centennial Trail. The Board rationalized that there was some public value being created by the project’s off-street parking spaces and determined a

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25% partnership funding level was valid in supporting the on-street parking mitigation efforts. Denny shared that the Board should focus its current discussion on what should be the level of public support for this type of project element. Is a 25% metric the correct metric to use for these types of project elements?  Commissioner Patzer, following up on Denny’s comments, asked if the City’s recent efforts in trying to capture the value of off-street surface parking via the “parking in lieu of” analysis could be of benefit in addressing the issue at hand? Commissioner Goodlander shared that the parking in lieu of recommendations recently adopted by the City Council were generated by the recently completed parking study. Deanna also shared that the study’s results were applicable to commercial area parking issues and might not be applicable to residential structured parking issues.  Commissioner Elder shared that he had a concern with the timing of the request at hand, and that this parking cost issue should have been captured much earlier in the process by the development team and shared at that time with the LCDC.  Commissioner Jordan expressed the same concern as Jim in that there is a very awkward time issue on the table. It has been over two years since the development team submitted their costs – has too much time passed for the Board to revisit this issue?  Commissioner Hassell expressed the same concerns and Jim and Brad stating that too much time has passed on this matter and this issue should have been discovered earlier in the build out process.  Commissioner Patzer shared that the LCDC needs to be consistent on this issue. Was helping this development team with public realm offstreet parking a onetime deal, or will the Board entertain a similar request in the future? Dave feels the Board needs to make a decision on this project metric and stick with that decision metric as future projects involving a similar issue arise. Motion by Jordan, seconded by Goodlander, to table this increased funding request until further analysis is conducted as to the appropriate level of LCDC participation in this type of public realm off-street project element. Motion carried. 

Housing Committee – Jim Elder Housing Committee Chair Jim Elder shared with the Board that there is nothing new to report regarding the status of the Midtown Idaho Housing &

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Financing Association (IHFA) workforce housing project. Jim did share that the Idaho Youth Ranch retail store plans to open in their new Midtown location in mid-March. 

Parking Committee – Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, shared that there is no new news to report at this time on the parking front.

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Communication Committee – Dave Patzer Communication Committee Chair Dave Patzer discussed the following Committee initiatives with the Board: Midtown Place Making Initiative Update: (Please refer to the October, November, December, 2008 & January 2009 LCDC Board meeting minutes for more background information re. this initiative.) Dave invited Dennis Grant (City staff engineer), Dale Baune & Alan Soderling (JUB Engineering) and Dell Hatch (LCDC consultant to the Midtown project) to visit with the Board and provide a Midtown project update. Dennis shared that Fred Ogram (Abbotswood Designs) has been retained by JUB as the landscape architect for the project. Dennis shared that the City team is still meeting with individual property owners on 4th street regarding project related issues. There will be a public open house for the Midtown project on March 4th at City Hall where the City and consultant teams will look for public feedback on the conceptual project plans prior to going out for construction bids. Dennis shared that the general public and the Midtown stakeholder groups will be amply notified as to the open house meeting.  Commissioner Patzer asked if full design diagrams (e.g. graphics showing where the curb cuts will be on the street) will be available for review at the open house? Dennis shared that yes, full draft plans will be available for review at the open house.  Commissioner Patzer asked how soon after the March 4th open house meeting will plans be ready for bid – i.e. how long will the City entertain public input on the draft plans? Dennis shared that he anticipates that plans will be finalized by the end of March time frame, with a construction start time planned for May.

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 Commissioner Patzer asked if any “surprises” have developed in the process? Dennis shared that there have been no substantial surprises to this point.  Commissioner Goodlander asked if there were some design changes proposed for the Midtown placemaking area (the area on 4th street between Roosevelt Avenue and Boise Avenue)? Dennis shared that Fred Ogram has developed several design themes, in addition to the original design theme developed by Dell Hatch, for the placemaking area that will be shared with the Board for their review and input prior to the March 4th open house. o Dell Hatch, as a follow-up to Dennis’ response, shared that the original placemaking concept was shared with the JUB / Abbotswood team as a guide to incorporate color into the streetscape design. Dell felt that the Midtown stakeholders were very much in favor of having color included in the streetscaping element of the placemaking design.  Commissioner Davis asked Dennis to share Fred’s placemaking conceptual designs with the LCDC commissioners as soon as possible so that Board member feedback can be received prior to the March 4th open house.  Commissioners Jordan and Goodlander both shared that the project team needs to be very mindful of the disruptive construction effects of the project on the local businesses along 4th street. Dale Baune shared that as a whole, this project should go rather smoothly and will be approached in a manner designed to keep 4th street open as much as possible.  Commissioner Patzer asked how will the open house be advertised / communicated to the public? Dennis shared that letters will be sent to all of the LID-affected property owners on 4th street. A story in the Press will also run prior to the open house to encourage attendance. Commissioners Patzer and Davis asked Dennis to also communicate the open house meeting date to the Midtown neighborhood group that has been meeting with the IHFA in regards to the Midtown workforce housing project. Board members thanked Dennis, Dale, Alan and Dell for attending the meeting, and once again invited them back on a monthly basis to provide project updates to the Board.

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Communication Strategy Implementation: Commissioner Patzer invited Chris Hollibaugh, LCDC/Chamber/Visitors Bureau Online Communication Coordinator, to visit with the Board and share the latest draft of the re-designed LCDC website. Chris led the Board through an online overview of the draft LCDC website redesign, sharing all of the new parameters and functionality of the website. Board members were very impressed with the draft re-design, and encouraged Chris to finalize the design, populate the website, and activate the new website in March. 7. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Tony Berns discussed operational issues and updated the Board on LCDC initiatives. Walker/Macy Plan Review Tony shared that Commissioner Nipp has volunteered to spend time at the March Board meeting to review the recommendations of the Walker/Macy plan. 2009 LCDC Strategic Planning Session Tony shared with the Board that the LCDC strategic planning session will be held on April 9th at North Idaho College’s student union building. Final meeting logistics are still being developed. Holding the strategic planning session in April will allow for the inclusion of any fiscal impacts associated with the Board’s 2009-10 tactical planning efforts in the FY10 budgeting process which begins in June. 3rd & 4th Street Midtown Lots Tony shared that he has met with City engineering staff on site to review issues associated with the 4th street parking lot as related to the pending 4th street reconstruction effort. The Idaho Youth Ranch organization will be opening their relocated Midtown retail store operations in March. Lot striping and lighting will be the next foci as weather permits. Kroc Community Center Tour Tony shared that he has contacted Major John Chamness regarding a possible site tour for the Board. John looks forward to hosting the Board on a tour and shared that the best time for a tour is during the week at lunch time (that is the time when the work crews are on break and it is safe to visit the site). Tony will contact Board members to arrange a tour time that works for all.

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8. PUBLIC COMMENT Tom Hasslinger, reporter with the Coeur dâ&#x20AC;&#x2122;Alene Press, shared with the Board his apology for errors made in a February 18th Press article involving the LCDC. Tom shared that he will strive to be more thorough in his reporting and article proofing efforts. 9. EXECUTIVE SESSION â&#x20AC;&#x201C; Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Elder, seconded by Hoskins, to enter into Executive Session, as provided by Idaho Code 67-2345(1) Subsection C: to discuss acquisition of an interest in real property which is not owned by a public agency. Roll Call: Nipp Yes Colwell Absent Elder Yes

Goodlander Patzer Davis

Yes Yes Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. The LCDC Board entered into Executive Session at 7:40 p.m. Those present were the LCDC Board of Commissioners, LCDC Executive Director Tony Berns, and Dick Stauffer (Miller-Stauffer Architects). Matters discussed were those of property acquisition. No action was taken and the LCDC Board returned to regular session at 8:30 p.m. 10. ADJOURN Motion by Patzer, seconded by Elder to adjourn. Motion carried. The LCDC meeting adjourned at 8:31 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

MARCH 18, 2009

5:30 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Davis called the LCDC Board meeting to order at 5:33 p.m. LCDC Board members present: Goodlander, Davis, Elder, Hassell, Jordan, Colwell, Patzer, Nipp. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Chris Hollibaugh, Art Elliott, Dell Hatch, Dave Tomson, Wes Johnson, Ben Johnston, Wendy Gabriel, Chris Holloway, Nelson Gourley, Terry Cooper, Ron Edinger, Jim Gray. Alison Boggs, Sandy Emerson. Art Elliott, owner of Shelter Associates, addressed the Board re. the Trails Edge project’s additional funding request that was submitted and discussed at the February LCDC Board meeting. Art shared his comments as the builder of the condominium project representing the owners of the Trails Edge development. Art clarified the February request made to the Board for additional partnership funding consideration for the project’s parking element due to the following issue: The original Trails Edge funding request to the LCDC involved two offstreet parking stalls when three off-street parking stalls were actually constructed; thus resulting in increased project costs but also an enhanced public benefit due to the additional off-street parking stall. Art thanked the Board for their consideration of this additional request and expressed his sorrow that this issue drew so much misguided media attention to the LCDC Board. Art then, on behalf of the project owners, withdrew the request to the LCDC Board for the consideration of additional partnership funding for the Trails Edge project.

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4. PUBLIC COMMENT – LCDC STRATEGIC PLANNING SESSION No public comment was provided. 5. APPROVAL OF MINUTES  February 18, 2009 Board Meeting Minutes Motion by Elder, seconded by Hassell to approve the February 18, 2009 Minutes. Motion carried. 6. PRESENTATION: CDA SPORTS & EVENTS COMPLEX FEASIBILITY STUDY – Wes Johnson (Conventions, Sport & Leisure) and Dave Tomson. Recusal: - Chairman Davis recused himself from chairing the meeting during this agenda item, and asked Vice Chairman Elder to chair the meeting while the Board addressed this agenda item, citing a potential conflict of interest because his firm was recently engaged by one of the developer’s entities on a matter related to the Riverstone development.

Executive Director Berns introduced Dave Tomson (Project Manager for Riverstone) and Wes Johnson (CS&L Consulting) to the Board and asked them to provide the Board with a summary overview of the CDA Sports & Events Complex feasibility study. Dave thanked the Board for helping to fund the feasibility study in partnership with other community organizations and entities. Dave shared a few comments about the community value of such a complex, citing its ability to draw a wide array of regional sports and recreation events. Dave shared that there are over 147,000 residents in the area without any true gathering space for these types of events, and shared that this project will have a huge positive economic impact on the community mainly during the shoulder months of the year (mid fall to mid spring); a much needed benefit to the community during the traditionally slow time of the year. Dave concluded his remarks by sharing that CS&L has performed many arena / sports complex feasibility studies across the country, including the planning studies for both the Spokane Arena and the Gonzaga McCarthy arena. Wes led the Board through an overview presentation of the feasibility study. This study is posted in its entirety online at the LCDC website (www.lcdc.org). Following Wes’ PowerPoint presentation, Dave Tomson shared a few final comments, including the insight that almost all sport complex/arenas exist in some form of a public/private partnership, where multiple funding partners gather to benefit the community as a whole.  Commissioner Patzer asked Wes which city that they have studied most closely resembles the issues/demographics of Coeur d’Alene (CDA)? Wes shared that Iowa City, which hosts the University of Iowa, is LCDC Meeting Minutes

3/18/09

probably the closest match. Iowa City has a lot of issues similar to CDA, including that Iowa City is close to a large regional city (Des Moines) which has a modern arena. Wes shared that CDA does have a uniqueness in that it has such a strong tourism industry, possessing a fairly structured seasonality (i.e. late spring to early fall). Wes feels that an arena complex would work well in the CDA market because an arena would draw folks to CDA during the “off season” (i.e. mid-fall to mid-spring) thus complimenting the summer tourism industry.  Commissioner Colwell asked if the feasibility study financial pro-forma included any debt service for the proposed arena building? Wes shared that no, the pro-forma discussed just included debt service involving arena operations. Rod then asked if there is a recommended method re. arena building debt service to target for these types of projects? Wes shared that there is no one recommended method for structuring arena debt service.  Commissioner Patzer asked if any ice sports (e.g. hockey) were investigated as potential users (tenants) of the arena? Wes shared that these types of users were not evaluated in the base case analysis, but they were looked at in a separate analysis involving a tenant-type arena. An ice-type tenant model showed a little better financial pro-forma in that an ice-type tenant would most likely be able to attract longer-term “suite sales”, and would also bring with them a larger advertising budget (i.e. there is more money in advertising and promotions). Wes however shared that a tenant-type model would be tough to host in CDA due to a host of reasons.  Commissioner Elder asked Wes to comment more on the recommendation that fairground leadership look at more of a clear-span flat roof type venue. Wes shared that his team felt that a flat roof clear-span type building without spectator seating would be a logical move for the fairground board. Wes shared that the fairgrounds should focus more on consumer type shows & exhibitions, capturing a larger market share of the types of events they currently are attracting – i.e. lure more events to the fairgrounds with a larger event hosting venue. Wes shared that this type of venue would not be competitive with the proposed arena, but would be more synergistic in its amenities.  Commissioner Patzer asked Wes how many motel rooms would be needed in the community per the base case analysis? Wes shared that he did not have that data with him, but would provide that number.  Commissioner Patzer asked how would a possible hotel bed tax help with the project’s financing? Wes shared that if such a tax were to be established, CDA would be able to produce a fairly significant value given the number of hotel rooms currently in place. A tax of this nature would

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not be the single answer for the project’s financing, but it could help significantly when combined with other types of financing (e.g. tax increment financing).  Commissioner Patzer shared that when looking at the project’s rendering, it appears that the arena will need to access planned surface parking spaces to the west of the Prairie Trail. How many arena users would have to park in the planned area to the west of the Trail and access the arena complex via the planned pedestrian bridge over the Prairie Trail? Wes shared that a significant number of the arena users would park in those western surface lots and access the arena over the pedestrian bridge.  Commissioner Jordan asked if an arena as planned can co-exist with the fairgrounds and work well together? Wes shared that yes, there could be synergies developed to make both venues work well together. Dave Tomson shared that the Spokane Sports Commission is excited about the proposed CDA arena because additional quality flat floor space is needed for the Spokane-CDA region. The area as a whole would be more competitive with additional space in the form of an arena and an enhanced fairground operation.  Commissioner Patzer asked if the project’s estimated $25 million cost included any funds for the: 1) development of the proposed ball fields to the west of the arena site, 2) traffic engineering design issues, and 3) needed site infrastructure? Wes shared that the feasibility study cost estimates only relate to the operations of the proposed arena facility itself. Wes stated that it is too early in the planning process to cost out the items identified in Dave’s question. Board members thanked Wes and Dave for their presentation. 7. RESOLUTION FY09-03: SORENSON ADA IMPROVEMENT GRANT AGREEMENT Background: Please refer to December, 2008 LCDC Board meeting minutes for more background regarding this initiative. LCDC Executive Director Berns led the Board through an overview of the Sorenson Improvement Grant Agreement, highlighting several key elements of the Agreement.  Commissioners Patzer and Hassell asked a few clarifying questions as to the Agreement’s governance involving potential building disposition and/or closure by SD271.

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 Commissioner Patzer asked Sorenson Magnet School Principal Jim Gray if all phases of the ADA improvements will be completed by the time students return to school in the fall? Principal Gray shared that yes, all proposed ADA improvements should be in place prior to the start of the new 2009-2010 school year. Motion by Elder, seconded by Colwell, to approve Resolution FY09-03 as presented, approving the Sorenson ADA Improvement Grant Agreement with School District 271. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Patzer Davis

Yes Yes Yes

Hassell Jordan Hoskins

Yes Yes Absent

Motion carried. 8. WALKER/MACY DOWNTOWN PUBLIC SPACES MASTER PLAN REVIEW LCDC Board Commissioner Charlie Nipp led the Board, meeting attendees, and the home viewers through a review of the 1999 Walker/Macy Downtown Public Spaces Master Plan as prepared by the Walker/Macy led consultant group. The Walker/Macy Plan is available for review in its entirety on the LCDC website (www.lcdc.org). Charlie and Board members spent time discussing the successes of this planning effort, and how heavily involved the LCDC was in this planning effort from day one. Board members shared that the Walker/Macy study was/is a key study for the community, and that in just ten short years, a host of good things have happened for the community.  Commissioner Hassell emphasized that the study’s recommendations encompass a long-term planning horizon, and that improvements take some time to happen, and that a lot of progress has occurred to date.  Commissioner Elder shared that the “Committee of Nine”, which was commissioned to move the Walker/Macy plan forward, did a fine job in their task, but it has been quite a few years since they made their findings and recommendations. Jim suggested that representatives from the original Committee of Nine be reengaged to update their recommendations in light of current community opportunities. A suggestion was made by Jim to possibly have Dell Hatch, a representative of the Committee of Nine, visit with the LCDC Board about possible next steps regarding a re-engagement of the Committee’s findings.

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In closing, Charlie suggested that the Board envelop the recommendations of this strategic planning effort in the discussions set to occur at the April LCDC strategic planning session. Board members thanked Charlie for his presentation, and all agreed that some of the study’s recommendations are worthy of discussion at the April strategic planning session. 9. COMMITTEE REPORTS Finance Committee – Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell reviewed and discussed the February Lake and River District financial files, and the February account payables sheet, with the Board. Motion by Goodlander, seconded by Patzer, to approve the February accounts payables and the February financial packets for the Lake & River Districts as presented. Motion carried. Recusal: - Chairman Davis recused himself from voting on the CS&L payable, citing a potential conflict of interest because his firm was recently engaged by one of the developer’s entities on a matter related to the Riverstone development.

FY08 Audit Presentation Ben Johnston, of the Magnuson & McHugh accounting firm, provided Board members with a copy of the fiscal year 2008 (FY08) LCDC audit, and reviewed key aspects of the audit with the Board. Board members asked several clarifying questions of Ben regarding the audit report, and also asked Ben for any suggestions that he had regarding LCDC’s business model for the upcoming year. Ben suggested that LCDC monitor County processes more closely this upcoming year since the County now has automated their systems to a point where LCDC-related information is more easily accessible.  Commissioner Elder asked for Ben’s thoughts regarding a recent newspaper story about the City of Eagle posting online some of their financial transactions. Ben shared that he supports all efforts that make public information more readily available to the public for review if the conveyance of that information can be accomplished in a secure manner – i.e. the interests of the public entity must be protected. Motion by Elder, seconded by Hassell, to accept the FY08 LCDC audit as prepared by Magnuson & McHugh. Motion carried.

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Midtown Project Financing Recommendation Background: the LCDC Board has chosen to seek bank financing in the amount of $850,000 towards the LCDC’s Midtown Project estimated cost obligation of $1,654,000. Bank financing proposals were sent to five area banks, with financing proposals due by the end of February. Commissioner Colwell led the Board through an overview discussion of the three financing proposals received for the Midtown project (depicted below). Bank loan amount $ amortization schedule fee (%) fee (amount) tax exempt int. rate

monthly payment pre-payment penalty

Mountain West $850,000 10 years

Inland NW $850,000 10 years

Washington Trust $850,000 10 years

maturity = 10 years 1.00% $ 8,500 4.10% reprice @ 5 years 4.65% reprice @ 7 years 4.80% no reprice: 10 yr. rate $ 8,646 on 5 year reprice rate no

maturity = 10 years 0.50% $ 4,250 4.50% reprice @ 5 years

maturity = 10 years 0.75% $ 6,375 4.15% reprice @ 5 years

8,809

8,667

Inland Northwest Bank, Mountain West Bank, and Washington Trust Bank all submitted financing proposals for the Midtown project. Rod shared that the Finance Committee recommends that the Board choose either the Mountain West or Washington Trust proposal depending upon the Board’s time frame preference for an interest rate lock-in. If the Board desires to lock-in to a five year term, then the Washington Trust financing proposal is the best choice. If the Board desires to lock-in to a longer term fixed rate proposal, then the Mountain West financing proposal would be the best choice.  Commissioner Jordan asked why not lock-in to 10 year fixed rate given these uncertain economic times, and the strong possibility that interest rates will not be this low again in 10 years?  Commissioner Patzer agreed with Brad sharing that LCDC has an opportunity to lock-in now for 10 years at a very attractive interest rate. Dave shared that the jury is still out on how quickly the economy will recover, and that economic volatility may be with us for quite a few years.

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Motion by Goodlander, seconded by Jordan, to accept Mountain West Bank’s financing proposal as submitted, and to select the 10 year fixed rate financing alternative of said proposal. Motion carried. Recusal: - Commissioner Hassell recused himself from voting on the motion, citing a potential conflict of interest because he is a shareholder in Mountain West Bank. Recusal: - Commissioner Nipp recused himself from voting on the motion, citing a potential conflict of interest because he is a member of Mountain West Bank’s Board of Directors. Mr. Nipp also shared that he did not attend the LCDC Finance Committee meeting where the individual bank proposals were discussed.



Housing Committee – Jim Elder Housing Committee Chair Jim Elder shared with the Board that there is nothing new to report regarding the status of the Midtown Idaho Housing & Financing Association (IHFA) workforce housing project.



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March 4, 2009 - Public Open House/Project Review Approximately 80 people attended the 3 hour public meeting held at City Council Chambers on March 4, 2009 to review the progress of the project. During that meeting, two concepts were presented that illustrated the treatment of the sidewalks, intersections, suggested tree types and their placement, tree grates, bus shelters, pedestrian level light fixtures and street furniture. The two options shown were the “Wave” pattern and the “Bubble” pattern. Each pattern was set within identical street layouts related to curb alignment, curb cuts, parking, etc. Those attending were given the opportunity to select their preferred concept by placing an adhesive colored marker alongside the plan. According to City Engineering the Wave pattern received a substantial majority of votes, although I have not been given the exact count. Coloring of the sidewalks will be done using a method that combines acid etching of the designed pattern followed by color stain applications. One mottled color range will be used for the pattern combined with standard concrete. Attendees were provided a form that requested their name, address and contact information with a number of questions related to the design, should they have concerns and wish to visit with a design team member following the meeting. I was told that about 5-6 people responded to the questionnaire. Also provided for review were progress construction drawings showing the overall project from Lakeside to Harrison. Although not complete, these drawings illustrated such details as the curb alignment, road width, driveway access to properties, adjustments to current conditions, intersection layouts with “bump outs” and preliminary proposed tree locations. The plans showed a consistent 38’ wide roadway with parking on both sides. Intersections at Foster, Roosevelt and Miller are intended to be raised intersections; set approximately 2 inches below the adjacent curbing. Because of this height difference there will still be the need to provide handicap access ramps at the raised intersections, although bollards are not anticipated to be required. Project Design Details The intersections will be ramped to meet street level and are designed to be comfortably negotiated by vehicles traveling 25 MPH; the raised condition combined with the bulb outs is intended to act as a traffic calming condition as well as allowing pedestrians a safer positioning related to seeing oncoming traffic and a shorter distance to cross traffic lanes. The materials currently under consideration for use in the intersections are concrete and colored concrete unit pavers. It is anticipated that the colored pavers for intersections will be chosen and the color for the sidewalks will be specified to match as closely as possible to maintain the consistency of the pattern crossing intersections. Final street furniture and tree grates are being selected now. I had anticipated being provided copies of the product cut sheets for these items along with the color palette for presentation to the board at this meeting but have not been provided this info yet. At this time, those furniture items presented at the public open house are planned for the project. Bike racks are anticipated to be opportunities for functional public art and I believe this is being discussed with the Bike/Ped committee. The open house drawings illustrated street tree placement in a preliminary condition with some adjustments being required due to conflicts with drives or existing trees to

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remain. During my last meeting with JUB/City Engineering, I reiterated that the concept looked to not necessarily place trees in what appeared to be a consistently spaced pattern along the street, but to approach the placement of trees in more of a clustered fashion. I do believe that some street trees should be set within the sidewalk however to provide occasional natural shade areas. All trees will be irrigated by automated underground irrigation. Consideration for installing electrical conduit that could provide future lighting of the trees is being evaluated against the budget at this time. A new street tree layout has been completed and City Engineering has used it while walking the project to verify that the placement of these trees will fit within the context of the project. Positioning of decorative pedestrian level lights must also be coordinated with the tree placement as well as other enhancement elements. This plan has also been recently submitted to City Engineering for review and verification. I was to have been provided copies of each of these modified drawings for review and comment but have not as of today. Project Schedule In discussion with Dennis Grant, City Engineering, on Tuesday March 17 th, I was told that the project is still following the anticipated schedule that will have the documents out to bid the first week of April 2009, with a Construction Start scheduled for the first part of May 2009 following approval of bids by City Council. Project Budget I have not been provided an updated project budget. Based on the percentage of completion for final documents I would anticipate a final Opinion of Probable Cost within the next two weeks so that the bid documents can be evaluated against anticipated costs so that enough time can be allotted for changes prior to bid should adjustments be required. An alternative to this would be to develop an addendum that addresses any changes to the bid documents that would alert the bidder to changes made following advertisement.

______________________________________________________________ Commissioner Patzer thanked Dell for the update and asked if there were any questions for Dell. ď&#x192;&#x2DC; Commissioner Elder asked how is the timing of this project going to work regarding Board review of the final plan documents if the City plans to go to bid in early April and the next LCDC Board meeting is not until April 15th? Commissioner Davis shared with Jim that the way he sees the process unfolding is that Dell will work closely with the LCDC Communication Committee, with the Communication Committee having a formal sign-off role for the plans prior to the City going to bid. Denny also sees the possibility of calling an LCDC Special Call Board meeting to have all Board members review the final plans prior to bid. ď&#x192;&#x2DC; Commissioner Patzer invited Wendy Gabriel, CDA City Administrator, to visit with the Board. Dave asked Wendy if the City has considered waiting to go to bid on this project until late summer to give everyone involved in the project more time to work pending

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issues? Wendy shared that waiting to break ground on the project until later in the summer has been discussed, but that City staff feels there is too high of a risk of running into weather issues during the early fall months. Wendy shared that the City is still working towards a May construction date, and also indicated that 4th street will remain open during the construction period in some fashion – i.e. at least one lane open all of the time during construction.  Commissioner Elder shared with Wendy that City Engineering staff and the City’s consultant team really need to work harder to make sure that Dell is in the decision making loop on the project. Wendy said that she fully agrees, and will make sure that Dell is fully engaged in the planning aspect of the project. Commissioner Patzer thanked both Dell and Wendy for their time with the Board and for their comments. Communication Strategy Implementation: Commissioner Patzer invited Chris Hollibaugh, LCDC/Chamber/Visitors Bureau Online Communication Coordinator, to visit with the Board and share an update regarding the LCDC re-designed website. Chris shared that the look and feel of the new website is being well received, and that the mapping ability of the website is working well via the utilization of Google maps. Updates and enhancements are still occurring, and new information will be posted as that information becomes available. Chris also is evaluating the possibility of placing video of LCDC Board meetings on the website. 10. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Tony Berns discussed operational issues and updated the Board on LCDC initiatives. 2009 LCDC Strategic Planning Session Tony shared with the Board that the LCDC strategic planning session is set for April 9th starting at 5:00 p.m. at North Idaho College’s student union building, Lake Coeur d’Alene room. Mayor Bloem, Steve Griffitts, Jonathan Coe, Priscilla Bell, Cyndie Hammond, Larry Branen, Rick Currie and Terry Cooper have been invited to visit with the Board re. their respective organization’s strategic plans, and how those plans interface with the LCDC. 3rd & 4th Street Midtown Lots Tony shared that the Idaho Youth Ranch organization will be opening their relocated Midtown retail store operations on April 3rd. Lot striping and lighting are the next foci as weather permits.

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11. PUBLIC COMMENT No public comment was provided. 12. EXECUTIVE SESSION â&#x20AC;&#x201C; Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Goodlander, seconded by Patzer, to enter into Executive Session, as provided by Idaho Code 67-2345(1) Subsection C: to discuss acquisition of an interest in real property which is not owned by a public agency. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Patzer Davis

Yes Yes Yes

Hassell Jordan Hoskins

Yes Yes Absent

Motion carried. The LCDC Board entered into Executive Session at 7:55 p.m. Those present were the LCDC Board of Commissioners and LCDC Executive Director Tony Berns. Matters discussed were those of property acquisition. No action was taken and the LCDC Board returned to regular session at 8:10 p.m. 13. ADJOURN Motion by Patzer, seconded by Colwell to adjourn. Motion carried. The LCDC meeting adjourned at 8:11 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

APRIL 15, 2009

5:30 P.M.

COEUR Dâ&#x20AC;&#x2122;ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Chairman Denny Davis called the LCDC Board meeting to order at 5:30 p.m. LCDC Board members present: Goodlander, Davis, Elder, Hassell, Jordan, Colwell, Patzer, Nipp, Hoskins. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Chris Hollibaugh, Dell Hatch, Arlin Berge, Steve Roth, Gordon Dobler, Dennis Grant., Teresa Capone, Don Murrell*, Marty Kapintzi*, Jeremy Boler*, Pete Harleson*, Kali Dorrfler*. (* = phonetic spelling) No public comment was provided. Midtown Place Making Initiative Update: (Please refer to the October, November, December, 2008 & January- March 2009 LCDC Board meeting minutes for more background information re. this initiative.) Chairman Davis moved this item forward on the agenda to facilitate the schedules of invited guests. Committee Chairman Dave Patzer invited Gordon Dobler, City of CDA Engineer, Dennis Grant, City of CDA Engineering Department, and Dell Hatch, Dell Hatch Design Studio, to provide a project update to the Board. Gordon shared with the Board that the Midtown 4th Street reconstruction and placemaking project is currently out to bid, with a planned bid opening date of April 28th. The preferred bid(s) will be presented to City Council for their review/consideration at the May 5th Council meeting. Gordon anticipates that the chosen contractor will begin construction work by mid-May, with a not-to-exceed construction period of 120 days.

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Gordon also shared that he felt that all project elements came together effectively prior to the bid date, and thanked Dell Hatch for his contributions on the project. Gordon and Dell shared that due to lower than anticipated paver costs, that colored pavers will be utilized in all five 4th street intersections scheduled to receive special “placemaking” focus. Gordon and Dell shared that the best methodology for running electricity to the curb side tree wells (for future street/sidewalk event uses) is to focus on one centralized electrical system. JUB engineering is researching what the design & construction costs will be for such a centralized electrical system. As for street trees, Dell & Gordon shared that the tree species mix and tree locations are all finalized and in the bid construction plans. There will be 120 trees planted via the reconstruction / placemaking effort. Tree grate selection has been accomplished with the help of the City’s urban forester and the City’s Parks department. Three inch (3”) caliper trees will be installed in the placemaking area (Roosevelt Avenue to Boise Avenue). Gordon’s final comments involved elements of the construction. The selected contractor will have limited time between when asphalt is removed and when the area is paved – not to exceed 22 days in length. The City will use its website to keep stakeholders informed on progress, and to address stakeholder issues. Newsletters will also be used by the City to facilitate communications.  Commissioner Goodlander asked Gordon to reconfirm the construction timeline. Gordon shared that the contract calls for a maximum construction period of 120 calendar days from notice to proceed to when the project is completed. Gordon feels that the 120 day timeframe is and “outside date”, and that the project should be completed in less time. Following is a Midtown progress report submitted by Dell Hatch: __________________________________________________________ April 15, 2009 Mr. Tony Berns, Executive Director Lake City Development Corporation March 2009 Board Meeting RE: Progress Report: 4th Street Reconstruction/Midtown Placemaking Enhancements Dear Tony and Members of the Board: The following is a summary of my understanding of the Midtown Placemaking Enhancements within the 4th Street Reconstruction Project since my last report to your Board at the March 18, 2009 Meeting. Most of the following information was shared with the LCDC Communications Committee.

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Project Design Details – Design Development to Construction Documents Following the March 18 LCDC Board Meeting, I was requested by City Engineering and JUB Engineers, with authorization by Tony Berns, to assist the design team with the integration of the ‘Wave’ pattern concept that was developed during the 2008 summer public meetings. This effort involved the patterning of the sidewalk and intersection areas; coordinating this pattern with the positioning of both tree and light locations. The Wave pattern will be laid out over a five foot square grid. This pattern is then scored to identify the limits that will be masked vs. the limits to be etched and stained. The Wave will consist of two colors; basic gray concrete and the stain color which will be a red/purple/rust mottled color. The Wave pattern will also be extended to the intersections within the Enhancement Area. The construction of the intersections will be of concrete unit pavers; using both a similar mottled color to match the stain and a standard concrete gray. The intersections at Foster, Roosevelt and Miller will all be constructed in a raised condition that will have approximately a 1-1/2 to 2” curb edge. You will recall that this is intended to reinforce the traffic calming for the vehicles traveling through the Midtown area. Another benefit is that it lessens the pedestrian ramp gradient required to access the intersection from the sidewalk area and vice versa. The intersections throughout the Enhancement area are ‘bulbed’ or extended. This allows for activity areas on the sidewalk or pedestrian zone as well acting as a safety element; placing the pedestrian out in view of vehicles and allowing the pedestrian to see on-coming traffic. The other major benefit of the bulb is that it shortens the crossing distance and time by more than a third. Although the intersections at Montana and Boise were not intended to be colored or raised, the decision to include the improvements of colored concrete unit pavers including the wave pattern was made just following the Bid Advertisement and it is my understanding that they were sent to plan holders as an Addenda item. Trees The 4th Street project is planned to incorporate three (3) types of new tree plantings. Within the Enhancement area, two tree species will be used; a Flowering Pear at the intersections, and a Zelkova (a vase shaped tree that is similar to characteristics to an Elm although not as susceptible to disease and pests) for the other locations on the streets. Throughout the remainder of the project where new trees are being installed, a variety of Silver Linden is planned. The tree locations within the Wave pattern are set so as to either be fully in or out of the stained area; none will be broken by the wave edge. The tree grates were selected with the input of the City Urban Forester, Ms. Karen Haskew and the City Parks Dept., Mr. Bill Greenwood. Ms. Haskew also had input on the tree selections. As you will recall, the trees within the Enhancement area will be automatically irrigated with a drip type system. Lights The lights are also coordinated with the tree locations and the wave pattern. They will be an Avista fixture; one that is more contemporary than used in other prior streetscape projects. They will be mounted at a 14 ft. height on metal poles. The color is intended to be black. The 14 ft. height was selected in part for the intent to add banners to the poles

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at a future date. This height lessens the potential for vandalism to the banners. The lights are set at approximately 75 ft. on center. Furniture The benches, trash receptacles, and bus shelters will be purchased by the City with an allowance requested in the bid to install these items following the completion of the sidewalk construction. The choices of furniture are consistent with those shown during the Open House Presentation. The color selections will be made at a point following the award of the contract. Bike racks will be provided as part of a design competition that will feature â&#x20AC;&#x2DC;functional public artâ&#x20AC;&#x2122;; unique and interesting creations that will serve as bike racks. These elements will also be located for installation following the completion of the sidewalks. Related Information, Schedule and Final Review Since the documents being prepared for bid right up until they were advertised on Monday March 30th, some of the fine tuning and adjustments related to tree locations and count, added intersections and layout issues related to the Wave pattern, the Bid Documents do not necessarily incorporate every item is a final form. To ensure that the project reflects the intent of the concept studies conducted last summer, Gordon Dobler with City Engineering has stated LCDC will be provided an opportunity to give a final review to the project prior to the Award of Bid. At that time, decisions can be made in an educated fashion related to the bid price vs. the budget. It is my understanding that the project is considered to be on time and on budget at this time. Current Invoice My current invoice represents time spent in meetings with JUB/City Engineering from mid-March to early April and my time assisting with the incorporation of the details related to the Wave patterning of the sidewalks in the Enhancement are. It also represents a number of meetings with Tony Berns, Director LCDC, presentation to the LCDC Communications Committee, as well as written correspondence and telephone conversations related to the project. The additional requested assistance to the project for the Design Development efforts has exceeded that which I had allotted for in my original proposal to LCDC. I have submitted this information to the Board with a request for an increase to cover this overage and to cover my continued involvement on behalf of LCDC throughout the construction period. Respectfully Submitted, Dell Hatch Design Studio, PC

Dell R. Hatch Licensed Landscape Architect

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4. APPROVAL OF MINUTES  March 18, 2009 Board Meeting Minutes Motion by Elder, seconded by Hassell to approve the March 18, 2009 Minutes. Motion carried. 5. DELL HATCH DESIGN STUDIO: MIDTOWN CONTRACT MODIFICATION LCDC Executive Director Tony Berns shared, and Chairman Davis discussed with the Board, the following letter submitted by Dell Hatch re. his efforts to date via his Midtown contract: _____________________________________________________ April 2, 2009 Mr. Tony Berns, Executive Director Board of Directors Lake City Development Corporation 105 N. 1st Street, Suite 100 Coeur d’Alene, Idaho 83814 RE: Landscape Architecture Consultant Services: LCDC Representation for Midtown Placemaking Enhancements and 4th Street Reconstruction Project. Dear Tony and Members of the Board: This letter is to inform you that based on my increased participation over the last 2 weeks in which I was requested to assist JUB and the City of Coeur d’Alene in adapting the original ‘Wave’ pattern and other streetscape elements to be applied to the Midtown area, I have exceeded my anticipated and quoted fee related to my current contract with LCDC. My quoted maximum fee based on the identified scope of work in my proposal dated November 2, 2008 was anticipated as a not-to-exceed figure of $7,500.00. That fee was based on my involvement as a design resource for JUB and the City of Coeur d’Alene and their consultants in that I would offer my assistance and understanding of the project: “to ensure that the overall design intent and concepts that were developed during the previously completed study by Northwest Dynamics are incorporated to the fullest extent practical into the construction documents that will be prepared by JUB Engineers and Fred Ogram, landscape architect”. From November 12 through April 1, 2009 I have accrued 67.5 hours toward this effort. My draftsperson has accrued 17.5 hours. Combined, these hours reflect a total fee of $9,662.50, or $2,162.50 over my authorized contract amount. During this last week in discussions with Tony Berns he inquired as to the status of my budgeted hours and I replied that with this latest requested effort I was rapidly approaching and could exceed my budgeted amount. Although my involvement has not followed the traditional design format as outlined in my proposal, I am still anticipating my continued involvement during the Construction Phase as noted in the original Scope of Services; scheduled for approximately 3 months. In that phase, I had allowed for weekly observations and reports as to the construction progress and presentation monthly at your Board meetings.

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My continued involvement during the Construction Phase is projected to reflect a fee of $3,000.00. This is representative of spending up to one hour per week in observation and preparing a written report that summarizes aspects of the Placemaking elements of the Midtown District from roughly Roosevelt Ave. to East Boise Ave.; also including the intersection treatments and enhancements at Foster Ave. and Miller Ave. With notice of this letter, I am requesting your consideration to increase my current contract fee in the amount of $5,162.50. This amount would account for the current overage of $2,162.50 and allow for up to $3,000.00 for my continued involvement throughout the construction phase. Thank you for your time and consideration of this issue. I look forward to your response and the opportunity to further assist LCDC in this effort.

Sincerely, Dell Hatch Design Studio, PC

Dell R. Hatch Licensed Landscape Architect

________________________________________________________ Tony recommended to the Board that the Board modify Dell’s existing contract and increase the contract’s not-to-exceed amount from $7,500 to $14,000 thus allowing Dell to fulfill the intent of his initial engagement by the LCDC. Board members expressed their appreciation for Dell’s efforts, sharing that Dell has been instrumental in the success of the project’s planning phases to date. Motion by Elder, seconded by Hoskins to approve the proposed modification of Dell Hatch’s Midtown contract, increasing the not-toexceed contact amount from $7,500 to $14,000. Motion carried. 6. COMMITTEE REPORTS Finance Committee – Rod Colwell Lake & River District Monthly Financials Lake & River District Payables Finance Committee Chair Rod Colwell reviewed and discussed the March Lake and River District financial files, and the March account payables sheet, with the Board.

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Motion by Goodlander, seconded by Hassell, to approve the March accounts payables and the March financial packets for the Lake & River Districts as presented. Motion carried. Review of Q2-FY09 quarterly reports Rod and Executive Director Berns reviewed and discussed the fiscal year 2009 (FY09) second quarter (Q2) financial summary report with the Board. Rod shared that Tony, at the direction of the Finance Committee, contacted Mark Jackson regarding the status of his 114 Wallace Avenue project (LCDC pledged $16,250 in grant funds towards public improvements associated with the project on 11/21/07). Mr. Jackson shared that he has not proceeded with the project for several reasons, and that he would be fine with the LCDC rescinding the pledged amount due to his inactivity on the project front. Mr. Jackson also shared that he might re-engage the LCDC on this project should his circumstances change. Motion by Patzer, seconded by Goodlander, to rescind the Mark Jackson 114 Wallace Avenue project grant award totaling $16,250. Motion carried. 

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Parking Committee – Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, shared that he and Executive Director Berns met with Dan Geiger of Diamond Parking to review possible management scenarios for the LCDC’s Midtown parking lots. Mr. Geiger has provided a draft proposal for LCDC’s consideration. Jim shared that the Parking Committee will meet in the near future to review the proposal and prepare a recommendation for the Board re. parking management oversight for the Midtown lots.  Chairman Davis asked Jim to, where practical, engage the Midtown stakeholder group during the parking proposal review process. Jim agreed to do so.

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Communication Committee – Dave Patzer Communication Committee Chair Dave Patzer discussed the following Committee initiative with the Board:

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Communication Strategy Implementation: Commissioner Patzer invited Chris Hollibaugh, LCDC/Chamber/Visitors Bureau Online Communication Coordinator, to visit with the Board and share an update regarding the LCDC re-designed website. Chris shared that website “hits” are up quite a bit from a percentage point, but not a great in real number terms. Chris suggested to the Board that the LCDC consider adding other organization’s meeting dates (e.g. Jobs Plus) on the LCDC web calendar to help better inform interested stakeholders of LCDC-related issues occurring in the community. Chris also shared that he will be gathering additional project photos for the website once the weather improves. 7. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Tony Berns reviewed the quarterly District scorecards, discussed operational issues, and updated the Board on LCDC initiatives. LCDC / City Council Workshop Tony shared that the next LCDC/Council workshop is scheduled for May 14th @ noon in the Library’s Community room. The workshop will be televised. Library Community Room Sound System An issue has surfaced regarding the Library Community Room’s ability to effectively handle the TV broadcasting of larger group meetings held on the main floor away from the City Council dais. The issue involves effectively capturing and broadcasting the audio of these gatherings. The issue is described in the following note from Jeff Crowe, CDA TV to Susan Weathers, CDA City Clerk, regarding the upcoming LCDC/City Council workshop: __________________________________________________________ Susan, We have done groups this large in the past, both this same workshop as well as others including Council-NIC Board workshops, Council-SD-271 Board workshops , etc. We don’t do them very well audio-wise due to the lack of boundary (table) microphones. We have four available where we should really have twice that many to do it correctly. We really stretch the ones we have just to accomplish the regular floor type meetings. Usually factor a boundary mic per 2 people, unless they are all loud talkers then sometimes you can get away with a mic per 3 people. I bring this up just so you know that there will be “dead-spots” at the table. Meaning those sitting in these spots will be difficult, if not impossible to hear. At the last LCDC/Council workshop that we taped, the Mayor sat in one of these spots and it was very difficult to hear her. There really is a finite amount of folks we can reasonably get with the equipment we currently have. If we are going to expand our group sizes we will need to expand our equipment to match. Of course with this, we will also need to purchase and run additional audio cables and need to purchase and install an additional audio mixer to adequately facilitate these larger groups. So if you get comments that some people at this meeting were hard to hear, you will know why. Jeff CdA-TV

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Chairman Davis invited Jeff Crowe to join the meeting. Jeff reiterated the information in his email note above, and shared that he estimates it will cost approximately $2,800 to purchase the necessary equipment to address this audio issue. Board members asked several clarifying questions, and shared with the audience that the LCDC helped to purchase the four existing area mics currently in use at the Board meeting. All Board members were very supportive of providing funding to enhance the effectiveness of communication emanating from the Library’s community room. Motion by Elder, seconded by Nipp, to authorize $2,800 of LCDC partnership funding, in the form of a grant, to acquire the necessary audio equipment to enhance the broadcast functionality of the Library community room. Motion carried. Chamber A+ Award for Education Tony shared that the CDA Chamber of Commerce’s Education Committee selected LCDC for its “A+ in Education Award”. The award was presented by Jay Baldwin, Chamber Education Committee Chair (pictured below at left) to LCDC Chairman Denny Davis at the April 14th Chamber Upbeat Breakfast. LCDC was nominated for the award by Jim Gray, Sorenson Magnet School Principal, for LCDC’s partnership efforts with Sorenson pertaining to the Americans with Disability Act (ADA) remodeling efforts scheduled to occur in the summer of 2009.

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8. PUBLIC COMMENT No public comment was provided. 9. EXECUTIVE SESSION â&#x20AC;&#x201C; Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Hassell, seconded by Hoskins, to enter into Executive Session, as provided by Idaho Code 67-2345(1) Subsection C: to discuss acquisition of an interest in real property which is not owned by a public agency. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Patzer Davis

Yes Yes Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. The LCDC Board entered into Executive Session at 6:30 p.m. Those present were the LCDC Board of Commissioners and LCDC Executive Director Tony Berns. Matters discussed were those of property acquisition. No action was taken and the LCDC Board returned to regular session at 6:45 p.m. Following Executive Session, the Board briefly discussed the issue of engaging the leadership at both the City of CDA and North Idaho College re. the Board related education corridor goals involving the mill site engineering planning and associated area traffic study. Executive Director Berns will visit with the two leadership groups about how best to move these two initiatives forward. 10. ADJOURN Motion by Colwell, seconded by Hassell to adjourn. Motion carried. The LCDC meeting adjourned at 6:55 p.m. Minutes prepared and submitted by Tony Berns.

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STRATEGIC PLANNING SESSION NORTH IDAHO COLLEGE APRIL 9, 2009 MINUTES 1. CALL TO ORDER Chairman Davis called the Strategic Planning Session to order at 5:00 p.m. LCDC Board members present: Hoskins, Nipp, Patzer, Davis, Goodlander, Jordan, Colwell, Hassell. Community Stakeholder Guests: Mayor Bloem, Jonathan Coe, Steve Griffitts, Larry Branen, Cyndie Hammond, Priscilla Bell, Mic Armon, Rolly Jurgens, Terry Cooper. General Public Guests: Gary Ingram, Sharon Culbreth, Kathy Sims, Chris Hollibaugh, Ron Ayers, Nathan Armon, Tom Hasslinger. 2. WELCOME & RETREAT OVERVIEW Chairman Denny Davis welcomed LCDC Board members, invited guests and the general public to the strategic planning session and reviewed the agenda for the evening. Denny shared that this is a workshop venue for the Board, and that public comment would not be heard during the workshop; however, anyone who wishes, may submit comments in writing to Tony Berns, Executive Director. 3. INVITED GUEST PRESENTATIONS North Idaho College (NIC): Dr. Priscilla Bell, Mic Armon and Rolly Jurgens President Bell discussed several possible partnership initiatives between LCDC and NIC, in particular NICâ&#x20AC;&#x2122;s Strategic Plan Theme VII: Physical Resources; which includes Goal 1: Assure opportunities for college expansion. Dr. Bell reported that NIC is currently in the process of acquiring the DeArmond mill site property adjacent to the NIC campus. In addition, NIC has completed the environmental assessment and remediation plan that has been reported to the DEQ via the Stimson organization. The tentative closing date for the DeArmond mill site acquisition is July 31, 2009 and NIC anticipates an on-time closing. Dr.

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Bell noted that NIC has also requested for the mill site to be annexed into the City of Coeur d’Alene (CDA). Dr. Bell reported that the three main higher education institutions (NIC, University of Idaho, Lewis Clark State College) are working together to provide a joint matriculation process for students, and based on that goal, envision the first building built on the mill site being a collaborative facility, shared by the participating higher education institutions. NIC Trustee Mic Armon discussed that redevelopment of the mill site will take several years. From NIC’s standpoint, the next steps will involve partnership opportunities for LCDC. A first step will be to start looking at site design and engineering, determining what infrastructure improvements are needed. Another urgent issue will be to address the ingress and egress design issues for the education corridor area. Mic stressed the importance of signalized intersections at both the Hubbard and Northwest Boulevard intersection, as well as the proposed River Avenue and Northwest Boulevard intersection. Other infrastructure needs include lighting, sidewalks, and landscaping for the Hubbard Road extension through the mill site area, and along River Avenue. Mic shared that additional resources need to target creating a main entrance to the campus which might include monumentation and landscaping. Finally, Mic shared that the Centennial Trail needs to be relocated along the Spokane River, and that the possibility of constructing a bike/pedestrian bridge over the Spokane River from the NIC campus to Blackwell Island should be explored. Rolly Jurgens, NIC Finance Vice President, shared that any upgraded infrastructure needs to include technology networking capabilities that are compatible with all of the education institutions, as well as the City’s wastewater treatment plant.  Chairman Davis asked if NIC has a timeline for the engineering design of Hubbard Avenue? Mr. Armon responded that NIC would like to start as soon as possible, as he believes the sooner the engineering design is completed, the sooner NIC can pursue construction designs.  Chairman Davis asked what the role of LCDC might be in constructing Hubbard Avenue? Mr. Armon responded that NIC has invested heavily into the purchase of the mill site property, and therefore will not be financially able to start site redevelopment for several years. Mic shared that LCDC could add great value by helping with the mill site redevelopment planning as soon as possible, which includes the location and construction of Hubbard Avenue.  Commissioner Patzer asked how is parking being viewed on the mill site area? Mr. Jurgens responded that when the mill site acquisition closes, NIC would look to utilize certain areas of the site for temporary parking in order to address some of the current parking issues. Rolly suggested that NIC might consider using recycled asphalt as a temporary surface.

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 Commissioner Nipp asked how NIC sees the mill site design work progressing, and what work needs to be done to coordinate that effort with the need for an education corridor traffic study? Mr. Armon responded that from a timing point of view, NIC would like to get started on these initiatives in 2009, and would like LCDC to consider partnership funding towards the site engineering/design effort.  Chairman Davis asked what would be the priority for NIC: work completed on the Hubbard Avenue intersection at Northwest Boulevard, or the reconstruction of Hubbard Avenue through the mill site and the extension of River Avenue to Northwest Boulevard? Mr. Armon responded that NIC would need to review the results of the traffic study before making that decision. Mic added that he believes the first step is to get a sense of the engineering costs associated with reconstructing Hubbard Avenue through to River Avenue. Dr. Bell added that NIC leadership wants to be prepared for emergencies related to both NIC and the Fort Grounds community via better ingress and egress routes onto Northwest Boulevard. Mr. Armon added that signalization is essential at that Hubbard/Northwest Boulevard intersection. Dr. Bell concluded NIC’s remarks by recalling that the Education Corridor concept has been “in the works” for many years, and NIC is very happy that they can be a part of the partnership that turns the corridor concept into a reality. UNIVERSITY OF IDAHO (UI-CDA): Dr. Larry Branen Dr. Branen thanked LCDC for their participation in the higher education corridor initiative. Dr. Branen reported that the University of Idaho does not see any major changes to the proposed UI presence in CDA, even in light of the current economic conditions. As a matter of fact, the University of Idaho has added programs in Coeur d’Alene. Larry shared that the UI is focusing on the “3P” concept for their CDA campus: people, programs and place. First, the importance of people. UI-CDA has added a total of five faculty positions in education, business (the EMBA program), child development, and nutrition. The UI-CDA currently has 16 faculty members. Larry noted that one faculty member has brought $3,000,000 of grants funds to the UI-CDA campus. Second, the importance of programs. UI-CDA works in collaboration with other Idaho higher education institutions, with NIC being premier in partnering with their 2-year undergraduate programs. UI-CDA works very closely with Lewis Clark State College (LCSC) for both undergraduate and graduate programs. The City of CDA has been a great partner, as have the local area school districts (CDA, Post Falls and Lakeland). UI-CDA is currently partnering with the CDA and Post Falls school districts to provide teacher training for their elementary teaching programs. Another future UI-CDA program will focus on water quality in partnership with the City of CDA, Idaho Department of Environmental Quality, and the CDA Tribe.

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Third, the importance of place. Following great internal discussion, UI leadership has determined that the soon to be redeveloped mill site area is the best long-term location for the UI-CDA. The mill site area is the prime choice due to its proximity to NIC’s existing campus and related infrastructure. One of the programs that UI-CDA is creating is an interdisciplinary degree program that begins at NIC, and then migrates on to the UI-CDA and LCSC. UI has $420,000 in planning money available for the UI-CDA presence in the Education Corridor, and their hope is that they will be able to begin planning once the mill site is acquired. In the mean time, UI-CDA has renewed their lease with the City for another four years (until 2013) which provides a four year period for planning. Dr. Branen concluded his remarks by commenting that Harbor Center provides a good place for their current functions, but space is limited. UI-CDA has discussed increasing the amount of joint classroom sharing with NIC. UI-CDA is very optimistic about their long-term presence in CDA, and hopes to have a collaborative (i.e. joint use) building built on the mill site within 5-10 years. LEWIS AND CLARK STATE COLLEGE (LCSC-CDA): Dr. Cyndie Hammond Dr. Hammond thanked LCDC for their contribution to the community and reaffirmed LCSC’s commitment to Region I by offering 13 bachelor degrees, and working closely with 21 regional health agencies to provide further educational opportunities. Cyndie believes that education is a pathway to employment. On behalf of LCSC-CDA, Dr. Hammond presented several short-term initiatives that might warrant LCDC partnership funding. Cyndie shared that The North Idaho Committee for Higher Education (NICHE) organization requires that funds received through this venture must be used for collaborative endeavors. Cyndie shared that LCSC-CDA believes that a redesign and remodel of the Harbor Center building will facilitate the goals of the NICHE program by creating a venue of collaboration for the state’s higher education institutions. The Harbor Center remodel vision includes two new classrooms for LCSC-CDA, which would eliminate the need for LCSC-CDA students to cross Northwest Boulevard (currently, LCSC-CDA has temporary classroom space in the Harbor Plaza development). Cyndie believes that LCDC should focus on both the long-term and short-term issues associated with the Education Corridor initiative, and that LCDC participation with the Harbor Center remodel would be of great value in the short-term until new facilities are developed on the mill site area.  Commissioner Colwell asked if there are any plans for a dental hygienist program at LCSC-CDA? Dr. Hammond responded that LCSC has this type of program at the Lewiston campus, but nothing is planned for the CDA campus – more of an NIC focus.

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CITY OF COEUR D’ALENE: Mayor Sandi Bloem On behalf of the City, Mayor Bloem thanked LCDC Board members for their time in serving the community. She reviewed the original goals and mission of LCDC, and offered the following insights/opportunities. Sandi shared that in the downtown, there is a small privately owned pocket park (referred to as Sherman Park) located at the old Woolworths site. There has been discussion that a public entity, possibly LCDC, could have first option to purchase this property and assure the park’s long-term availability to the public. Sandi shared that the City feels additional housing, across the pricing spectrum, is needed in the downtown. Sandi noted that the strength of the surrounding neighborhoods is essential for the vitality of the downtown area, and a great example supporting the strength of these surrounding neighborhoods is the success of the Sorenson Magnet School. She encouraged the LCDC to continue its support of the downtown, so that it remains the vibrant heart of the City. With regards to McEuen Field, Sandi shared that when LCDC was formed, the City conducted hearings as to the potential boundaries of the district and whether or not to include McEuen Field within the district – it was included. The City has been delaying improvements to Front Street until the McEuen Field Plan could be implemented. The Plan, completed in 2002, has not been implemented and she believes that the time is right to re-look at the McEuen Field Plan. Two of the values that accompanied the McEuen Field Plan were that 1) no high rise structure(s) would be constructed on the site, and 2) if an asset is moved from the field, an equal or better location must be found for that asset within the City. Sandi asked for LCDC’s help in re-looking at the McEuen Field Plan and its interaction with Front Street and the downtown. Sandi shared that a fairly expensive Local Improvement District (LID) was formed for the redevelopment of Sherman Avenue about 20 years ago. From a community value standpoint, Sandi shared that a vital/viable Sherman Avenue is critical to not only the health of the downtown, but is critical to the overall health of the community as a whole. She suggested maybe a less expensive Sherman Avenue LID, in partnership with LCDC, might be an initiative worth analyzing pertaining to the updating of street improvements installed 20 years ago. Sandi also shared that CDA has been selected as a city to benefit from a visit by the members of the “Mayor’s Institute on City Design” this summer. This visit will bring world class designers/architects/developers to the city to review the potential of the Education Corridor initiative. City leadership might request some funds from the LCDC to facilitate this visit. Sandi commended the LCDC Board for their efforts in the Midtown District, and she believes that the planned improvements will make a major difference to that area. She commended LCDC for the quality of jobs that have been

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created/retained in the city through the efforts of LCDC, such as the US Bank Call Center, the Kroc Center, and Night Hawk Radiology. She also believes that having a higher Education Corridor will be a wonderful addition to the city. She commended the Board for televising their Board meetings on public access TV. She also suggested that the Board consider having legal counsel present during Board meetings to aide in any matters requiring legal counsel.  Chairman Davis thanked the Mayor for her support and leadership.  Commissioner Nipp asked Sandi about the status of a Northwest Boulevard traffic study? Mayor Bloem responded that when consideration was given to purchasing the DeArmond mill site, Northwest Boulevard was evaluated to see if it could support the anticipated increased traffic load. She noted that a conceptual study has been completed, and confirmed that Northwest Boulevard could handle the projected increased traffic load. Sandi shared that since the mill site acquisition is nearing completion, that a thorough traffic study is needed encompassing the entire higher Education Corridor site impact area.  Commissioner Patzer asked what the realistic time frame is for the abandonment of the BNSF railroad right-of-way along Northwest Boulevard? Sandi responded that the process has started, with an anticipated timeline of 12-18 months. Dave asked who performs the environmental studies and railroad tie removal, and if BNSF plans to abandon the area in stages? Sandi shared whoever owns the underlying ground is responsible for the due diligence work, and that BNSF will most likely abandon the site in stages. CHAMBER OF COMMERCE: Jonathan Coe Mr. Coe thanked LCDC for all the hard work they have done over the years and reiterated the Chambers commitment to supporting the urban renewal economic development tool. Jonathan asked that the LCDC consider three factors when reviewing any/all potential initiatives: 1) First, evaluate how the initiative will impact local businesses. 2) Second, to cooperate with other entities when leveraging investment dollars. Jonathan suggested that LCDC monitor the possibility of partnering with federal dollars where appropriate, stating that he believes CDA has not been very successful in gaining access to federal dollars. 3) Third, to the extent possible, encourage economic activities during the “shoulder season” (i.e. late fall and early spring). Jonathan shared that our community needs activities or programs that stimulate our economy throughout the entire year, and a project such as the proposed sports complex (or similar projects) be closely evaluated from a value added perspective.  Commissioner Patzer asked if the CDA Lake Management Plan represents a potential liability in terms of the economic viability of the city, and what is the

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Chamber’s role in this Plan? Mr. Coe responded that the Chamber has supported the Plan since its inception as the best approach to dealing with the heavy metals issue in the lake’s sediment. The Chamber has also supported the Legislature funding the Plan which will provide funding for the administration of the Plan. What will be required in the future is funding for support programs, such as a program focusing on lowering the phosphorous level in the lake’s water.  Commissioner Patzer asked if the Chamber views the lake issue as a danger to the economic climate of Coeur d’Alene? Mr. Coe responded no, because efforts to date have made a distinction between a “Lake Management Plan” and a “Superfund Site”. Jonathan believes that Lake CDA will always present a possible liability unless the community preserves and protects this wonderful community asset. COEUR D’ALENE DOWNTOWN ASSOCIATION: Terry Cooper Mr. Cooper reported that in 1990, the Downtown Business Improvement District (BID) was formed, comprising 25 blocks of the downtown. Today there are 1,150 employees who work within the BID, and the BID members are actively involved in the Downtown Association. The Association has worked hard inviting people to come downtown via their marketing and events programs, and Terry expressed the Association’s appreciation to the LCDC for their continued support of the events program. Events such as Car d’Lane and the holiday lighting ceremony draw people from all over the west coast to downtown CDA. With regards to the Sherman Park opportunity, Terry shared that this site has been wonderful for hosting several downtown events. This year, the Association assumed operational management of Sherman Park and is paying the property taxes. The Association has been meeting with the owner of Sherman Park to see if there is some way the Association can purchase the property in order to keep it a viable green space in the downtown area for the long-term. The Association strongly supports moving forward with the update of the McEuen Field Plan and forming a possible LID for Front Street. Creating an event plaza area on the McEuen Field site would be a great addition to downtown. Terry shared that the weekly Wednesday Farmers Market has been a great addition to the downtown, and it could be enhanced with a larger footprint. The Association’s current focus during these hard economic times is retention of the small businesses located in the downtown area. Terry commented that the BID would appreciate LCDC partnership in the form of possibly helping to create a low-cost LID on CDA Avenue. He noted that anything that can be done to lure people off of Sherman Avenue and onto the downtown side streets would be very helpful.

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 LCDC Commissioner Goodlander noted that some of the sidewalk pavers along Sherman Avenue are wearing out and that a possible LCDC/Association LID partnership to replace these pavers would be beneficial. Mr. Cooper added that several trees have pushed up the pavers on the sidewalks creating a liability, and he believes that a smaller valued LID would be doable to replace some of the sidewalks that have been damaged.  LCDC Commissioner Patzer asked if the Downtown Association has discussed forming a new LID with BID members? Mr. Cooper responded that the LID issue has been discussed this year, and that there is some energy to create an LID.  LCDC Commissioner Jordan asked if there are plans to remove some of the street trees due to the paver issue, or simply perform some root pruning? Mr. Cooper responded that he believes some trees need to be removed because they are oversized for the area. He noted that tree roots have grown into the foundation of some buildings and wrapped around the water lines which would make root removal questionable. Some trees definitely need to be removed. JOBS PLUS: Steve Griffitts Mr. Griffitts believes that urban renewal is the best economic development arrow in the State of Idaho’s quiver; and thanked the LCDC Board for their wise use of said arrow. Steve shared that the direct and indirect efforts of the LCDC helps to bring jobs to the CDA area. Steve noted that hundreds of jobs have been created as a result of LCDC initiatives, and hundreds more have been created in terms of construction. Jobs Plus has been very successful throughout Kootenai County, and Steve shared that a biotech firm will be coming to Post Falls soon. Steve noted that even though the biotech firm is locating their business in Post Falls, the firm would not have come here if it were not for the wonderful attributes of the City of CDA. Mr. Griffitts shared that Jobs Plus was formed in 1987, and noted that in 1991 a prominent leader in the CDA community believed that Jobs Plus had reached its peak. Since 1991, 72 businesses have been recruited to the area. He noted that Seltice Way is one of the primary roadways that he shows to potential clients who are looking at a possible move to the area.  Commissioner Patzer asked how important “to the quiver” is higher education and the ability for a company to grow if they moved to the area? Mr. Griffitts responded that every company that looks to relocate to our area looks at the community’s educational offerings (K-12, NIC, UI-CDA, LCSC-CDA). He added that if a company has any inkling that higher education is not a high priority in a community, they will not relocate to that area. So, a viable higher education offering is crucial to his recruitment efforts.

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 Commissioner Colwell asked Steve to comment on how today’s economy is impacting Jobs Plus? Mr. Griffitts responded that even with today’s economic climate, there are still recruitment opportunities and noted that Jobs Plus is busier now than ever on working with quality companies that are looking to relocate to this community. He believes that our area is positioned very well at this time. Jobs Plus has a three-pronged marketing approach to their success – quality of life, affordable housing, and a workforce that is available and trainable.  Chairman Davis noted that with regards to the Seltice Way area, LCDC has objectives still to accomplish in the River District and asked Steve from a recruitment standpoint, what improvements need to be done in that area? Mr. Griffitts noted that it is a matter of the chicken and the egg; in that some companies have felt that there exists suitable infrastructure along Seltice Way, while other companies believe that more work needs to be accomplished prior to their relocation. So, he could not provide any clear cut answer for the Board. Chairman Davis, on behalf of the Board, thanked all invited guests for their comments. 4. BOARD DISCUSSION: STRATEGIC (LONG-TERM) GOALS LCDC Executive Director Tony Berns facilitated the Board’s discussion re. LCDC long-term 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 developed the following updated list for fiscal year 2010 (FY10): (goals are listed in no specific order of importance, updated goal areas are highlighted in purple):

Strategic (long-term) Goal Foci Education: o Facilitate the creation of the Education Corridor in partnership with the City, UI, NIC, LCSC, Fort Ground Neighborhood, and other community stakeholders.  Including an LCDC partnership effort to implement the “Four Corners” plan (area of Government Way, NW Blvd. & Mullan). o Help to support the success of the downtown neighborhood-oriented Sorenson Magnet School by providing capital funding for appropriate building improvements. o Help to support the long-term viability of Winton Elementary School. Workforce Housing: o LCDC will play a key support role in helping the city achieve its vision for workforce housing in the community.

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Midtown: LCDC / IHFA (Idaho Housing & Finance Association) / THC (The Housing Company) workforce housing project. 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”. Student 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.

Public Space: Create New & Enhance Existing Public Space: o Help to implement the City Council approved McEuen Field Plan.  Part of the plan is to locate new public space for the relocation of the American Legion ball field.  Front Street re-design included in planning efforts. 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 Winton Park – partner with City to define the park’s long-term community role. o Sherman Park - partner with City and Downtown Association on potential acquisition of this space as a permanent pocket park. o Continuing Commitments:  Continued support of the CDA Public Library partnership including a $250,000 contribution to capital costs (coupled with an existing $900,000 contribution for library site acquisition).  Partnership funding for the Kroc Community Center; $500,000 pledge towards long-term public improvements.  Continue LCDC partnership with the North Idaho Centennial Trail Foundation on developing the “Prairie Trail” bike/pedestrian trail (Note: LCDC loaned Foundation $2.5 million to acquire old UP RR right of way). Job Creation & Retention o Continue partnership efforts to facilitate job creation and job retention in both redevelopment districts. Public Parking: o LCDC, in partnership with the City and the Downtown Association, will help to rationalize and plan for a downtown mixed use structured parking facility.

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Midtown Redevelopment: o LCDC will partner with the City, Midtown property owners, Midtown businesses, and Midtown stakeholders on opportunities to enhance the vitality of the Midtown area.  2009 - Contributed capital funding to the 4th Street reconstruction project from Lakeside Avenue to Harrison Avenue,  2009 - Contributed capital funding for a “place making” initiative in the core of Midtown (Roosevelt Avenue to Boise Avenue). Downtown Vitalization: o LCDC will partner with the City, Downtown property owners, the Downtown Association, and Downtown stakeholders on continued economic support to enhance the vitality of the Downtown (e.g. partner efforts involving building code review pertaining to renovation of older downtown buildings, establishment of viable downtown pocket parks, LID partnership endeavors where appropriate). 5. BOARD DISCUSSION: ESTABLISHMENT OF FY10 GOALS Following the refinement of the LCDC long-term strategic goals, Executive Director Berns reviewed the current annual goals with the Board, and facilitated the Board discussion that resulted in the establishment of the following FY10 goals.

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 nonattainment.

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

Membership Nipp*, Goodlander, Jordan Colwell*, Nipp, Patzer, + guest board members Elder*, Davis, Goodlander, Hassell Patzer*, Colwell, Davis, Hoskins Elder*, Jordan, Hassell

6. EXECUTIVE DIRECTOR REPORT No report was provided. 7. ADJOURN Motion by Hoskins, seconded by Goodlander to adjourn. Motion carried. The LCDC meeting adjourned at 8:53 p.m. Minutes prepared and submitted by Susan Weathers, City Clerk (City of Coeur dâ&#x20AC;&#x2122;Alene), and Tony Berns.

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A JOINT CITY COUNCIL AND LAKE CITY DEVELOPMENT CORPORATION WORKSHIOP MAY 14, 2009 The Mayor and Council met in a continued session in a joint workshop with the members of the Lake City Development Corporation at 12:00 noon on May 14, 2009, there being present upon roll call a quorum Sandi Bloem, Mayor Ron Edinger John Bruning A. J. “Al” Hassell, III Deanna Goodlander Mike Kennedy Woody McEvers

) ) ) ) ) )

Members of Council Present

Denny Davis, LCDC Chairman Charles Nipp Rod Colwell Brad Jordan Scott Hoskins Deanna Goodlander A. J. Al Hassell, III

) ) ) ) ) )

Members of LCDC Present

STAFF: Tony Berns, LCDC Executive Director; Wendy Gabriel, City Administrator; Jon Ingalls, Deputy City Administrator; Susan Weathers, City Clerk; Warren Wilson, Deputy City Attorney; Troy Tymesen, Finance Director. GUESTS: Donnie Murrell, Tom Hasslinger, Chris Hollibaugh CALL TO ORDER: Mayor Bloem called the meeting to order. LCDC STRATGIC PLANNING SESSION REVIEW: LCDC Executive Director Tony Berns reviewed the draft of the long term focus areas set by the Lake City Development Corporation. The first focus area is Education which includes the Education Corridor and “Four Corners” area and involves participation in a traffic study for the Education Corridor area; Sorenson Magnet School for ADA building improvements; and, Winton Elementary School long-term viability. Chairman Davis noted that the first phase of the Education Corridor design that LCDC would participate in is a traffic study. Councilman McEvers related that Rolly Jergens has voiced NIC’s concerns regarding the open space that exists

until construction is undertaken at the DeArmond Mill site. Chairman Davis noted that the Education Corridor partners need to complete a plan to put the street through this site. The next major focus area is Workforce Housing which has been expanded from Midtown to include the Downtown area and Student Housing within the two LCDC districts. Councilman Kennedy noted that the Workforce Housing group (North Idaho Housing Coalition) is very active in light of the stimulus funds and have currently been working with the Idaho Housing and Financing Association (IHFA) in Midtown. He noted that the old Idaho Youth Ranch building owned by IHFA rents the building out on a month to month basis so this old building could be demolished within a short period of time. The third major focus area is Public Space which includes LCDC partnership in help the City/community implement the proposed McEuen Field Plan including the section of Front Avenue abutting McEuen Field; continue to secure long-term public access to the lake and river waterfronts; partner with the City and School District for the development of Winton Park, and; the potential acquisition of the Sherman Park as long-term public space downtown pocket park. Additionally, LCDC has continuing partnerships with the Library, Kroc Center, and Prairie Trail initiatives. Councilman Edinger recalled that the original McEuen Plan eliminated the American Legion Ball field and he personally does not see anyplace where you can move the American Legion Ball Field and would like to see LCDC work on redoing the existing plan with improvements to the American Legion Field. Chairman Davis responded that LCDC was not looking at implementing the entire McEuen Field Plan but rather, with the term of the LDCD Lake District becoming limited for financing long term projects, there may be some elements within the McEuen Field Plan that could be attained by the City in partnership with the LCDC. Board Member Goodlander noted that the opportunity to find an equal or better location for the American Legion ball field was part of the original McEuen Field plan, but there is more to McEuen Field than the American Legion Ball Field and she believes that it is good to look at other potential improvements to McEuen Field including opening up the waterfront for more public use. The fourth major area of focus is Job Creation and Job Retention in both the Lake and River districts. The fifth focus area is Public Parking which includes plans for a downtown mixed use structured parking facility. The sixth focus area is Midtown Redevelopment which is about ready to begin with the 4th Street reconstruction project starting May 26th. Executive Director Berns commended the Mayor for conducting a fine meeting with the Midtown stakeholders on the evening of May 12th. The final focus area is Downtown Vitalization which involves continued LCDC economic support to enhance the vitality of the Downtown area including downtown pocket parks.

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Councilman McEvers asked if LCDC could do a report that shows what has been accomplished in terms of financial expenditures. Tony Berns responded that LCDC has two such reports one being a district “score card” and the other being a quarterly financial summary report. Chairman Davis suggested that the Finance Committee visit with Councilman McEvers to address his information requests. FISCAL YEAR 2010 LCDC GOALS: Executive Director Tony Berns reported on next fiscal year’s goals for the various subcommittees of LCDC which include The Ad Hoc Public Space Committee working as a partner with the City/Community on updating the 2002 McEuen Field Plan. The Communication Committee will be working on meeting with key community stakeholders to discuss community issues; continued implementation of their LCDC communication strategy, hosting an Urban Land Institute forum in Coeur d’Alene and; establishing an LCDC Advisory Group. The Education Corridor Ad Hoc Committee will be working with the Education Corridor partners on engineering infrastructure plans for old DeArmond mill site, and working with the City and other stakeholders on commissioning a traffic study for the Education Corridor area. The Finance Committee will evaluate the merit of commissioning a River District Strategic Planning effort, and continue frequent reviews of the district economic forecasting models. The Parking Committee will continue to work on acquiring property for the downtown mixed used structured parking facility. The Housing Committee will continue looking for ways to best partner with other organizations on workforce housing projects within the LCDC Districts. Councilman Kennedy, regarding job creation, asked if LCDC has a clear sense of the jobs created in the Urban Renewal Districts. Mr. Berns responded that LCDC did complete such a job quantification report a year ago but they could develop an ongoing reporting system showing jobs created or retained within the districts. Councilman Goodlander believes that type of information needs to be provided showing how many jobs have been created through LCDC partnership efforts. Councilman Edinger asked about LCDC hiring an attorney to be present at their Board meetings. Chairman Davis responded that LCDC is currently exploring the options of having current LCDC attorney, Ryan Armbruster, (based in Boise) attend their meetings or if it would be more economically prudent to retain qualified legal counsel locally. Chairman Davis shared that Ryan is viewed as one of the best municipal attorneys in the state, so it would be hard to replace his level of expertise. Councilman McEvers asked if there was any legislation this year that impacted Urban Renewal Districts. Mr. Berns responded that the proposed changes that would have adversely affected urban renewal across the state never made it past the House floor vote. The only change to urban renewal code this session was more specific verbiage associated with limiting the terms of urban renewal districts to 24 years.

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ADJOURNMENT: Motion by Edinger, seconded by Kennedy that there being no further business, that this meeting be adjourned. Motion carried. The meeting adjourned at 1:05 p.m.

______________________________ Sand Bloem, Mayor ATTEST:

___________________________ Susan K. Weathers, CMC City Clerk

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BOARD MEETING MINUTES WEDNESDAY

JUNE 17, 2009

4:00 P.M.

COEUR D’ALENE PUBLIC LIBRARY COMMUNITY ROOM 1. CALL TO ORDER Vice Chairman Jim Elder called the LCDC Board meeting to order at 4:00 p.m. LCDC Board members present: Goodlander, Elder, Hassell, Jordan, Colwell, Patzer, Nipp. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Danielle Quade, Dennis Spencer, Chris Hollibaugh, Dell Hatch, Dennis Grant, Kevin Stevens, Gordon Dobler, Chris Guggemos, Terry Cooper, Monte Miller, Susie Snedaker. Susie Snedaker: Ms. Snedaker inquired of the Board if they were going to discuss Safco’s recent request for LCDC partnership funding directed towards the Midtown project liaison effort (Dennis Spencer’s role). Commissioner Patzer shared that he plans to address Safco’s request during his Communications Committee update report. 4. APPROVAL OF MINUTES  May 14, 2009 LCDC/City Council Workshop Minutes,  May 20, 2009 Board Meeting Minutes Motion by Hassell, seconded by Goodlander to approve the May 14, 2009 LCDC / City Council Workshop Minutes, and the May 20, 2009 Board Meeting Minutes. Motion carried. 5. COMMITTEE REPORTS Finance Committee – Commissioner Rod Colwell Lake & River District Monthly Financials Lake & River District Payables

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Finance Committee Chair Rod Colwell reviewed and discussed the May Lake and River District financial files, and the May account payables sheet, with the Board. Motion by Patzer, seconded by Goodlander, to approve the May accounts payables and the May financial packets for the Lake & River Districts as presented. Motion carried. Mt. West Bank 2009 Revenue Allocation Note Background: pursuant to Resolution No. 09-04 adopted May 20, 2009, the LCDC Commissioners approved, among other things, (i) the issuance and sale to Mountain West Bank (the “Bank”) of the Agency’s Revenue Allocation Note, 2009 (Midtown Redevelopment Project), in the principal amount of $850,000 (the “Note”), and (ii) that certain Note Purchase and Security Agreement (the “Purchase Agreement”) to be entered into between the Agency and Bank. Finance Committee Chair Rod Colwell, LCDC Executive Director Tony Berns, and LCDC Bond Counsel Danielle Quade (with Hawley Troxell law firm), shared with the Board that following approval of Resolution 09-04 at the May 20, 2009 Board meeting, Mt. West Bank leadership contacted LCDC asking that additional property collateral be pledged by LCDC towards the Note. This request by the Bank was made due to the pending Supreme Court cases “In re: Urban Renewal Agency of the City of Rexburg, Case No. CV08-121” and “In re: Nampa Development Agency, the Urban Renewal Agency of the City of Nampa, Idaho, Petitioner, Case No.CV-08-2431” (together, the “Appeals”) where long standing urban renewal tenets will be reviewed by the Court. Mt. West Bank’s property collateral request relative to the Note will be released immediately pending a Supreme Court opinion on the Appeals that does not declare the Note void or affect the LCDC’s ability to service the debt associated with the Note.  Commissioner Jordan asked Commissioner Colwell if he thinks other banks will also require this type of extra collateral; is LCDC setting a precedent by possibly agreeing to Mt. West’s request? Commissioner Colwell responded that he does not know what other banks might require for these types of deals in the future, but he is not too concerned at this time. Mrs. Quade shared that her firm has not seen this type of request in other cities across the state where they provide legal counsel.  Commissioner Patzer shared with the Board a concern he raised in the Finance Committee discussion regarding the extra costs to be incurred by LCDC due to the bank’s property collateral request (approximately $1,000). With this added cost, is the Mt. West Bank financing LCDC Meeting Minutes

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package still the best package for LCDC? The conclusion of the Finance Committee was that yes, even with the added costs pertaining to the property collateral request, Mt. West’s proposal of a fixed rate for 10 years is still very attractive to the LCDC. Commissioner Patzer also shared that he does not think the Supreme Court ruling on the Appeals will affect this financing deal, or the LCDC’s ability to service the debt on its existing debt obligations. Commissioner Patzer also shared that LCDC needs to make the property collateral release language in the documentation “crystal clear” so that no issues arise when the time comes to release the collateralized properties.  Commissioner Goodlander asked if Mt. West would still require the property collateral if the loan amount was reduced? Commissioner Colwell shared that he felt Mt. West would still require some level of real property collateral even at a lower loan value.  Commissioner Hassell asked how LCDC’s liquidity would be affected if LCDC decided to pay cash for the whole Midtown project and not seek bank financing? Commissioner Colwell shared that he felt LCDC would be fine from a cash viewpoint in the short-term, but LCDC would most likely be limited somewhat in the long-term. The primary issue here is that we have the ability to borrow funds over 10 years at a very attractive interest rate, thus allowing LCDC to use its cash reserves for other value adding initiatives. Motion by Jordan, seconded by Goodlander to secure the debt service payments due under the Mountain West 2009 Revenue Allocation Note, in addition to the security pledged to the Bank under the Purchase Agreement, the Agency shall execute and deliver in favor of the Bank certain deed(s) of trust (the “Deed(s) of Trust”) conveying the six (6) properties itemized below: 1) 2) 3) 4) 5) 6)

720 Young Avenue Young Avenue Lots 211 N. 4th Street 612 N. Park Road 620 N. Park Road 626 N. Park Road

Additionally: partial deed release language will be included in the Deed of Trust(s), providing for the efficient and timely release of each individual collateral property at any time upon payment of a negotiated release price,

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at the closing of the issuance of the Note, the Chairman or Vice Chairman of the Agency is authorized to execute the Deed(s) of Trust in the forms provided by the Bank, after approval thereof by Agency Bond Counsel, LCDC Executive Director is given approval to publish a “Notice of Approval of the Motions” in the CDA Press. Abstained: Commissioner Hassell abstained from voting on this motion. Recusal: - Commissioner Nipp recused himself from Board discussion re. this agenda item, and also recused himself from voting on the motion, citing a potential conflict of interest because he is a member of Mountain West Bank’s Board of Directors. Commissioner Nipp also recused himself from the Finance Committee meeting when the Mt. West financing / property collateral issue item was discussed.

Motion carried. LCDC Economic Forecast Models Commissioner Colwell also shared with the Board that the Finance Committee is working on its periodic fine tuning of the economic assumptions contained in the Lake and River district forecast / simulation models. The Committee has completed work on updating the model’s revenue projection assumptions. At the July committee meeting, the model’s debt/expense projection assumptions will be reviewed and updated as deemed appropriate. The Committee plans to share the updated model assumptions / projections with the Board later this summer. 

Housing Committee – Commissioner Jim Elder Housing Committee Chair Jim Elder shared with the Board that there is no update to report regarding the status of the Midtown Idaho Housing & Financing Association (IHFA) workforce housing project. Commissioner Elder also shared that Ryan Armbruster, LCDC legal counsel, has issued a draft opinion regarding the latitude LCDC has under Idaho statues re. potential workforce housing partnership efforts with local workforce housing entities like the North Idaho Housing Coalition (NIHC). Mr. Armbruster’s draft opinion is currently being reviewed by Commissioner (LCDC Chairman) Davis, who will recommend the best methodology for working the issue further with the full Board.

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Diamond Parking – Proposed Management of Midtown Lots Diamond Parking was asked to submit a proposal to the LCDC pertinent to parking management of the LCDC’s Midtown surface parking lots. Diamond Parking’s proposal, authored by Dan Geiger (Spokane-based Diamond Parking General Manager), provides several possible Diamond Parking management scenarios for LCDC’s consideration. Commissioner Elder shared that the LCDC Parking Committee met to discuss the Diamond Parking proposal, and the Committee recommends to the Board that the following Diamond Parking management proposal essentials be accepted:  

  

Diamond to patrol the LCDC Midtown lots once a day. Estimated non-winter monthly management fee of $225. Estimated winter monthly management fee of $290 (includes snow plowing) Diamond will seek LCDC approval prior to spending any funds on repair and maintenance expenditures (e.g. lot striping, asphalt patching, etc.) Diamond’s oversight of the lots on a daily basis will: discourage folks from using the parking lots for long-term storage parking of vehicles, deal with any Idaho Youth Ranch parking issues, discourage vandalism, etc.

The Committee also recommended that LCDC approach management of the Midtown lots assuming no revenue generation at this time. Diamond shared with the Committee that the way parking currently works in Midtown, if LCDC were to impose a parking fee in the lots at this time, patrons of Midtown would just seek on-street parking, defeating the intent of what LCDC is trying to do re. parking use in Midtown. The parking lot revenue issue will be revisited once the Midtown redevelopment project is finished and the IHFA mix-use workforce housing project is complete.  Commissioner Patzer asked if Diamond plans to patrol the lots seven days a week? Commissioner Elder shared that was his understanding. Commissioner Patzer also asked if Diamond will issue tickets for cars parked illegally (e.g. cars parked on the lots for multiple days)? Commissioner Elder shared that yes, dealing with illegally parked cars would be a part of the negotiated agreement in that Diamond would help LCDC manage parking abuses on the site.  Commissioner Patzer asked in the Midtown stakeholders had a chance to provide input in the possibility of Diamond managing the lots? Commissioner Elder shared that the Midtown stakeholders provided input on possible lot management scenarios during the workshops held last summer, but have not been asked for input recently. LCDC Meeting Minutes

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 Commissioner Goodlander shared that she was not inclined to move forward with this proposed Diamond agreement at this time. She would like to wait and see how the LCDC Midtown lots are utilized by Midtown stakeholders after the Midtown / 4th Street redevelopment work is completed. She also suggested the possibility of the Midtown stakeholders having some role in “policing” the LCDC lots.  Commissioner Elder shared that he is concerned that if LCDC does not engage a professional management firm to oversee parking issues in Midtown, then LCDC staff may bear an un-needed burden in dealing with operational parking issues, taking time away from more critical LCDC issues.  Commissioner Hassell shared that he is concerned that LCDC will have problems on the Midtown lots if not managed correctly; i.e. if not overseen by a group that has parking lot management experience.  Commissioner Patzer shared that LCDC may want to visit with the management of the Idaho Youth Ranch retail store to see if there is any common ground for parking lot oversight. Commissioner Elder shared that after hearing the issues/concerns of the Board members, the Parking Committee will re-visit the issue and return to the Board with a revised recommendation re. a parking management scenario for the LCDC parking lots in Midtown. “ParkSide Park” Background: the Coeur d’Alene Downtown Association (DTA) and the owners of the currently vacant lots on 6th and Sherman Avenue (Stauffer, Miller, Galbreath) want to partner in utilizing that site for a community benefit before the site is developed (development being at least several years out). The proposal has the DTA grading the site and installing grass on the four lots fronting Sherman Avenue. In return for the improvements, the owners of this property will allow the DTA to use the site, at no cost, for the farmer’s market and other appropriate downtown events. The DTA will insure & maintain the property. The DTA and property owners are proposing to invest approximately $25,000 into landscaping, irrigation, and grading with site work proposed for early July. The property owners and DTA are seeking LCDC partnership funding to address a few public right-of-way issues involving the sidewalks, curbs, street trees, and existing curb cuts (see graphic below). This initiative will result not only in the creation of temporary downtown green space, but will add six (6) valuable on-street parking spaces for that area of downtown, and make the

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public walkway safer by fixing deteriorated portions of the sidewalk. The approximate cost for the proposed public improvements is $39,719:

ParkSide Park Site Plan

Benefits of the proposed downtown green space initiative: Creates new temporary green space for events in downtown. Creates six (6) new on-street public parking spaces in downtown. Will improve downtown Sherman Avenue aesthetics. LCDC Meeting Minutes

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Will fix sidewalks that are in very poor condition, thus increasing public safety. Although repair of sidewalks is the responsibility of property owners, if the park concept materializes, investment of LCDC funds into this DTA/developer partnership will add value to the downtown. Commissioner Elder invited Terry Cooper (Coeur d’Alene DTA Manager) and Monte Miller (property owner representative) to visit with the Board. Mr. Cooper provided further background information to the Board regarding the value of pocket parks to downtowns, and the success of the “Sherman Park” pocket park in the downtown. Mr. Cooper shared that the DTA Board is excited to partner with the property owners on this endeavor. Mr. Cooper also shared that the DTA is needing more space to host off-street events, and that this proposed green space (150’ wide by 105’ deep: 15,750 square feet) would be of great value to downtown.  Commissioner Jordan asked how much is being invested on the private property per this initiative? Mr. Cooper shared that the DTA is planning to invest between $25,000-$30,000 for improvements on the four privately owned lots.  Commissioner Hassell asked who will pay for the power and water to the street trees? Mr. Cooper shared that the DTA will pay for those city services.  Commissioner Jordan asked how long will the DTA be able to use the park once it is created? Mr. Cooper shared that the DTA is planning on a 5 or 6 year lease term of the site once improvements are completed.  Commissioner Elder asked when will development of the park begin? Mr. Cooper shared that the DTA would like to begin work on the improvements starting in July so that improvements could be in place by Street Fair time.  Commissioner Hassell asked what the value of the proposed park is to the DTA? Mr. Cooper shared that development of this green space will add a new quality venue for that area of downtown which will be very valuable to the DTA. Mr. Cooper also shared that any new green space and new venues will attract more folks to downtown benefiting all downtown stakeholders.  Commissioner Goodlander shared that the proposed public improvements will most likely be needed anyway when the property owners decide to develop the property, and that the property owners will most likely approach the LCDC for funding assistance for these same improvements in a few years. Commissioner Goodlander asked

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what would be the cost savings if the LCDC agreed to fund the public improvements as proposed on just Sherman Avenue? Mr. Miller shared that the project costs savings would be somewhat minimal, maybe $5,000.  Commissioner Jordan asked how folks would access the site if all of the curb cuts are removed? Mr. Miller shared that access to the site would be off of the alley.  Commissioner Elder shared that the costs of the public improvements as presented are quite a bit higher than the original cost estimate in the $10,000 range. He feels that the Board will need some time to digest the new proposed costs and associated public benefit.  Commissioner Patzer asked what is the market value of the additional six on-street parking spots? Commissioner Elder shared that a good estimate as to the value of each space is about $12,000. Mr. Cooper shared that the City’s “in lieu of” parking cost for downtown parking spots is $11,000. So a total value estimate would be in the $66,000 $72,000 range.  Commissioner Jordan shared that this proposal would generate a definite needed improvement from an urban renewal standpoint. Commissioner Jordan shared that he is concerned about the cost of the public improvements. He also shared that since the DTA is using Business Improvement District (BID) funds to pay for the improvements on the private property, he thinks that participation by LCDC at some level in the public right of way makes good sense.  Commissioners Goodlander & Hassell are concerned about site security and asked about the security plans for the site? Mr. Miller shared that the DTA will have the responsibility to protect the property. The main issue is to keep vehicles off of the site to protect the grass and irrigation system. Mr. Cooper shared that the DTA is considering placing bollards around the property for site protection.  Commissioner Patzer discussed the issue that the previous land owners paid the original Sherman Avenue Local Improvement District (LID) charge for the original street-oriented public improvements, and that the cost of those improvements were reflected in the purchase price of the land paid by the current property owners. Commissioner Patzer thus shared that LCDC potentially agreeing to fund these new proposed street-oriented public improvements would not be benefitting the current property owners at the expense of other downtown property owners.

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 Commissioner Nipp shared that Mr. Cooper and Mr. Miller did a good job of identifying the positive aspects of this initiative for the downtown and the community as a whole. Commissioner Nipp further shared that undeveloped land in downtowns is not a good thing from both an economic development and aesthetic standpoint, and that adding green space to downtowns is a key tenet of urban renewal. He views this proposal as a good economic stimulus for the downtown and urged the Board to strongly consider a partnership role.  Commissioner Nipp asked if this initiative will need a permit? Mr. Miller shared that yes, a permit will be required from the city. Commissioner Nipp suggested that LCDC consider approving the “ParkSide Park concept” as presented, thus providing some feedback to the DTA and property owners as they proceed with the permitting process.  Commissioners Colwell and Hassell both agreed with Commissioner Nipp and feel that a bit more time is needed for the Board to digest the costs, and that the Finance Committee spend some time in July to work the issue, and report back to the Board in July with a funding recommendation. Motion by Goodlander, seconded by Colwell, to approve the “ParkSide Park” concept as proposed and presented, so that the property owners can move forward with the City permitting process (at their own risk and expense), with LCDC to further review the project’s public improvement costs, revisiting possible LCDC partnership funding at the July 15, 2009 Board meeting. Motion carried. 

Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared the following Committee updates with the Board: Midtown Placemaking Project Commissioner Patzer shared that one outstanding project element discussed at last month’s Board meeting that still needed some resolution (the design and installation of an electrical conduit infrastructure system within the placemaking area of the project - from Roosevelt Avenue to Boise Avenue) has been resolved. The City of CDA Engineering Department worked with Safco (general contractor) and Thorco (the electrical subcontractor) on a design/build process for the electrical conduit infrastructure system. Thorco, working through Safco, returned the following proposal to the city in the form of a project change order:

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City Engineering staff contacted LCDC with the Safco/Thorco proposal. Following review, LCDC and City Engineering staff felt the change order was viable, and directed Safco/Thorco to proceed with Phase 1 of the proposal (the installation of the electrical conduit “piping system” costing $40,210) and not Phase 2 of the proposal (the installation of the conductors and wiring) at this time. Phase 2 can be completed at a later date via a potential partnership effort with a Midtown business improvement district – if formed. Commissioner Patzer invited Gordon Dobler, City of CDA Engineer, and Dennis Grant, City of CDA Engineering Department, to visit with the Board and provide a project update.  Mr. Dobler shared that phase 1 of the project’s 3 phases is going very well. Several crews are currently working at this time on the phase 1 area of the project site (Foster to Miller Avenue). The majority of the underground infrastructure is complete in phase 1 (i.e. stormwater, water, sewer). Curbs are going in, followed by the various conduit infrastructure elements (e.g. electrical conduit). Communication between the City, contractor and the Midtown residents/property owners has been going very well. LCDC Meeting Minutes

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 Mr. Dobler also shared that the electrical conduit piping infrastructure cost discussed above may be able to be paid for out of project contingency funds. He sees the electrical conduit change order as a level two priority, so if there are sufficient funds remaining in the project contingency fund at the end of the overall project, then those funds will be used to pay for the electrical conduit piping. If not, the City will approach the LCDC for additional funding to cover those expenses. Commissioner Hassell asked what happened to the “one lane on 4th Street open most of the time” pledge heard prior to commencement of reconstruction? Mr. Dobler shared that the City made the call to have multiple crews work at the same time in order to finish the project sooner, which is the primary reason for not having one lane open for travel. Commissioner Patzer invited Kevin Stevens (Safco President) and Dennis Spencer (Midtown project liaison) to the visit with the Board and provide an update from their viewpoint.  Mr. Stevens shared that the crews are ahead of schedule and he feels the project is going very well. Mr. Spencer shared that he has received 95% positive feedback from area stakeholders, and that folks have been very appreciative as to how quickly their concerns are addressed by the contractor team. Mr. Spencer shared that folks in the area are definitely feeling the pinch caused by the construction, but everyone is thankful for the fast pace re. project completion. Mr. Spencer closed his comments by sharing how often he has heard folks comment about how quiet the noise level is for the project. Commissioner Patzer asked if any unforeseen issues have arisen? Mr. Stevens shared that nothing totally surprising has happened to date, other than uncovering and removing an old wooden water main from 4th Street. Commissioner Patzer asked Mr. Stevens how Mr. Spencer’s role is working? Mr. Stevens shared that Mr. Spencer is doing a fantastic job. Mr. Stevens also shared that the City staff have been very good to work with to date.  Mr. Stevens also commented about the “one lane open” issue. He shared that the plan was always to have the road closed for major project work to 1) help speed the project along, and 2) for safety issues (e.g. having folks working in the trenches with cars passing by is a

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dangerous proposition). Mr. Stevens shared that one lane will be open on 4th when conditions permit. Commissioner Patzer asked Mr. Spencer how is work load is shaping up?  Mr. Spencer shared that some days are mild, while other days are quite hectic. He shared that he gets a lot of phone calls and works many issues over the phone. There does not seem to be a routine day, issues are all over the board.  Mr. Spencer also shared some clarification as to the funding of his liaison role. Safco has budgeted $19,200 for the public relations aspect of the Midtown project; $5,600 budgeted for project related advertising materials, and $13,600 for his contract compensation. Mr. Spencer shared that he is working with the CDA Press on several Midtown related advertising initiatives. He shared that the CDA Press has been very supportive, and wanted to publicly thank them for their supportive role. Commissioner Patzer discussed the possibility, as raised by Safco at last month’s meeting, of LCDC funding a certain level of Mr. Spencer’s project liaison work. Commissioner Patzer asked other Board members for their thoughts / interest re. this request.  Commissioner Elder asked about the funding level for Mr. Spencer’s role? Mr. Stevens shared that the budget for Mr. Spencer’s role is 3 hours/day, with an overall time budget of 360 hours. Mr. Spencer has clocked 113 hours to date on phase 1 of the project. Mr. Stevens shared that Mr. Spencer is doing a fine job and that Safco will continue to utilize his skill sets for the duration of the project with or without funding help from the LCDC.  Commissioner Colwell shared that LCDC did discuss having a project liaison in place prior to the project bid, and supports some level of LCDC contribution for this facet of the project.  Commissioner Jordan shared that he too supports LCDC contributing some level of funding for Mr. Spencer’s role.  Commissioner Patzer thanked Mr. Spencer for his daily log compilation reports, and asked him to keep them coming. These reports will help the Board as discussions continue re. potential LCDC funding support for his role.

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 Commissioner Elder suggested that LCDC keep an eye on the progress of the project, and to monitor the time that Mr. Spencer spends on the project, and revisit the LCDC funding issue at the July Board meeting. Commissioner Patzer invited Dell Hatch, LCDC consultant to the Midtown project, to visit with the Board and share his thoughts.  Mr. Hatch shared that he feels the project is going along well. He also shared that he is hearing very positive feedback about Mr. Spencer’s role, and even though Mr. Spencer has spent almost 1/3 of his allotted ours in phase 1 of the project, it is tough to say if his time will slow down or stay constant through phases 2 and 3. Mr. Hatch has been working on several project elements with the City including getting the correct pavers ordered for the traffic intersections, and working with structural engineers to get the proper transit bus shelters developed for the transit stop locations on 4th street. Mr. Hatch was happy to see the decision to green light the installation of the electrical conduit piping infrastructure for the placemaking area of the project. LCDC “e-brochure” Commissioner Patzer invited Chris Hollibaugh, LCDC Online Communication Coordinator, to share a draft version of the newly designed LCDC “e-brochure” with the Board that will be available for viewing and downloading from the LCDC website. Mr. Hollibaugh discussed the brochure with the Board, and asked Board members to review the draft brochure and to share their feedback as a final draft of the brochure is crafted. 6. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Tony Berns discussed the following issues with the Board. CDA Press Meeting Ex. Director Berns shared that he and Commissioner Davis recently visited with CDA Press leadership (Mike Patrick & Jim Thompson) to discuss LCDC initiatives and address any LCDC-related questions. These meetings are held twice a year and are a very important facet of LCDC’s efforts to enhance communications with community stakeholders. Legal Counsel at LCDC Board Meetings Ex. Director Berns shared that he and Commissioner Davis have been discussing the value of having legal counsel present at LCDC Board meetings with LCDC legal counsel Ryan Armbruster. All agree that having legal counsel present at Board meetings will help Board members better work through issues benefiting from legal input. Mr. Armbruster is located in Boise, so costs and travel logistics are an issue if the Board wants Mr. Armbruster to attend the monthly Board

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meetings. It was decided by all involved in the discussion to seek the interest of local area lawyers to fulfill the need of the Board for having legal counsel present at the monthly LCDC Board meetings, to help the Board address any conflict of interest issues, as well as provide counsel on general legal matters. Mr. Armbruster will still handle all significant LCDC legal matters. Ex. Director Berns and Commissioner Davis will work on a recommendation for the Board as to the process for engaging local legal talent. Sorenson update Please refer to the minutes from the LCDC March 2008 Board meeting for additional background information re. this LCDC partnership initiative. Ex. Director Berns shared that School District 271 leadership recently opened and reviewed contractor bids for the Sorenson remodel project (including needed ADA improvements). The lowest project bid came in approximately 26% over the architect’s estimated project cost. SD271 & Sorenson leadership have decided to re-bid several aspects of the Sorenson project later this month to get better pricing, allowing the contractors to work during the upcoming school year. SD271 & Sorenson leadership will visit with the LCDC Board at the July Board meeting to provide a more thorough project update. 823 N. 4th Street Land Acquisition Ex. Director Berns shared that The Housing Company (THC) and the Gagnons have both signed an acquisition agreement for the real property located at 823 N. 4th Street. THC is seeking financing for the purchase, and anticipates a July closing. 7. PUBLIC COMMENT Susie Snedaker: Ms. Snedaker thanked City and LCDC leadership for addressing the alley issues (grading, dust control) in the area of Midtown currently under reconstruction. Ms. Snedaker also thanked the Board for their thorough discussion of potentially funding a portion of Dennis Spencer’s time in his role as Midtown project liaison. Her input to the Board is to not provide any additional funding for Mr. Spencer’s time in that Mr. Spencer’s efforts should be compensated by the contractor (Safco). Ms. Snedaker also shared that she feels 5th Street is being very heavily used as the alternate route around the 4th street reconstruction work and is concerned about potential issues on that street. Commissioner Goodlander shared that she has been monitoring the traffic use on 5th Street and has not heard any other public concerns re. overuse of the street by the commuting public. 8. ADJOURN Motion by Patzer, seconded by Colwell to adjourn. Motion carried. The LCDC meeting adjourned at 6:25 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

JULY 15, 2009

4:00 P.M.

4. APPROVAL OF MINUTES  June 17, 2009 Board Meeting Minutes Motion by Elder, seconded by Patzer to approve the June 17, 2009 Board Meeting Minutes. Motion carried. 5. 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 June Lake and River District financial files, and the June account payables sheet, with the Board.

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Motion by Hassell, seconded by Elder, to approve the June accounts payables and the June financial packets for the Lake & River Districts as presented. Motion carried. Mt. West Bank 2009 Revenue Allocation Note Please refer to the minutes from the LCDC June 17, 2009 Board meeting for additional background information re. this LCDC financing initiative. Background: pursuant to Resolution No. 09-04 adopted May 20, 2009 and a Motion approved on June 17, 2009, the LCDC Commissioners approved, among other things, (i) the issuance and sale to Mountain West Bank (the “Bank”) of the Agency’s Revenue Allocation Note, 2009 (Midtown Redevelopment Project), in the principal amount of $850,000 (the “Note”), (ii) that certain Note Purchase and Security Agreement (the “Purchase Agreement”) to be entered into between the Agency and Bank, and (iii) encumbering 6 LCDC owned properties to provide additional security for the Note pursuant to Deed of Trust(s) to include certain partial and full reconveyance language (the “Deed of Trust”). Finance Committee Chair Rod Colwell, LCDC Executive Director Tony Berns, and LCDC Bond Counsel Danielle Quade (with Hawley Troxell law firm), shared with the Board that following discussions with Bank leadership, Bank leadership felt that the best way to structure the desired partial and full reconveyance language was to develop a loan to value (LTV) metric wherein the value of the collateralized LCDC properties are on par with the proposed total LCDC/Mt. West debt portfolio. Following the Bank’s analysis, a partial and/or full reconveyance 100% LTV metric was established for each LCDC collateralized property, resulting in a new approved loan amount of $712,435 vs. the original $850,000. Motion by Patzer, seconded by Colwell to decrease the amount of the Note to $712,435 and approve the terms of the Deed of Trust as presented. Additionally: LCDC Executive Director is given approval to publish a “Notice of Approval of the Motion” in the CDA Press. Abstained: Commissioner Hassell abstained from voting on this motion. Recusal: - Although absent, for the record, Commissioner Nipp has recused himself from Board discussions re. this agenda item, and has also recused himself from voting on related motions, citing a potential conflict of interest because he is a member of Mountain West Bank’s Board of Directors. Commissioner Nipp has also recused himself from Finance Committee meeting discussions involving the Mt. West financing / property collateral issue.

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Recusal: Commissioner Davis recused himself from Board discussion re. this agenda item, and also recused himself from voting on the motion, citing a potential conflict of interest because his firm has undertaken the representation of Mt. West Bank on a single collection matter.

Motion carried. Sorensen ADA Project Update Please refer to the minutes from the LCDC March 2008 Board meeting for additional background information re. this LCDC partnership initiative. Ex. Director Berns shared that SD271 leadership has re-bid certain portions of the Sorensen renovation project to acquire better pricing for the proposed improvements. SD271 representatives will open the new project bids on July 16, 2009 and will share their revised course of action with the Board at the August 19, 2009 LCDC Board meeting. Draft FY10 Budget Discussion Executive Director Berns led the Board through an overview discussion of the draft fiscal year 2010 (FY10) budgets for the Lake & River districts. Ex. Director Berns also shared that, due to 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 meeting, and authorize publication of the draft budgets prior to the August Board meeting where a public hearing is held on the proposed budgets. Motion by Elder, seconded by Patzer, to authorize the Executive Director to publish the proposed draft budgets as presented in the CDA Press prior to the August 19, 2009 budget public hearing date. Motion carried. Parkside Park â&#x20AC;&#x201C; Funding of Proposed Public Improvements Please refer to the June 17, 2009 LCDC Board meeting minutes for more information re. this issue. Ex. Director Berns shared that the property owners and the CDA Downtown Association are still working on several development aspects of this proposed project, and plan to visit with the Board at the August LCDC Board meeting regarding updated development plans and an updated partnership funding request of the LCDC. Review of Third Quarter (Q3) FY09 Summary Report Commissioner Colwell and Executive Director Berns reviewed and discussed the fiscal year 2009 (FY09) third quarter (Q3) financial summary report with the Board.

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LCDC Economic Forecast Models Commissioner Colwell shared with the Board that the Finance Committee is still working on its periodic fine tuning of the economic assumptions contained in the Lake and River district forecast / simulation models. The Committee has completed work on updating the model’s revenue projection assumptions. Prior to the August Board meeting, the Committee plans to review and update the model’s debt/expense projection assumptions as deemed appropriate. 

Housing Committee – Commissioner Jim Elder Housing Committee Chair Jim Elder shared with the Board that the Committee had no initiative updates to report.



Parking Committee – Commissioner Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, discussed the following Committee initiative with the Board: Diamond Parking – Proposed Management of Midtown Lots Background: Diamond Parking was asked to submit a proposal to the LCDC pertinent to parking management of the LCDC’s Midtown surface parking lots. Diamond Parking’s proposal, authored by Dan Geiger (Spokane-based Diamond Parking General Manager), provides several possible Diamond Parking management scenarios for LCDC’s consideration. Commissioner Elder shared that the LCDC Parking Committee met to discuss the Diamond Parking proposal, and the Committee recommends to the Board that the following Diamond Parking management proposal essentials be accepted:  

  

The Committee also recommended that LCDC approach management of the Midtown lots assuming no revenue generation at this time. Diamond shared

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with the Committee that the way parking currently works in Midtown, if LCDC were to impose a parking fee in the lots at this time, patrons of Midtown would just seek on-street parking, defeating the intent of what LCDC is trying to do re. parking use in Midtown. The parking lot revenue issue will be revisited once the Midtown redevelopment project is finished and the IHFA mix-use workforce housing project is complete. Commissioner Elder and Ex. Director Berns shared the following responses from Diamond management with the Board pertaining to questions raised about this initiative at the June Board meeting: Will the lots be visited by a Diamond representative 7 days/week? Yes. Will the Diamond representative remove trash from the lots? Yes, as long as the amount of trash is not excessive ("excessive" metrics will be spelled out in a negotiated management agreement). Will the lots be signed? Yes, Diamond will work with LCDC to post the appropriate signage on the lots (e.g. "no overnight parking, violators will be towed at owner's expenses"). How will a typical Diamond day look? At some time on a daily basis, a Diamond representative will visit and walk the LCDC lots, pick up garbage as warranted, check on lot conditions, and monitor parking issues. The Diamond representative may chalk tires on cars parked in the area, or enter license numbers in the handheld computer, in an effort to monitor vehicles parked overnight. If there is a vehicle parked overnight in violation, Diamond will issue a ticket to the vehicle. If the vehicle remains parked in violation, towing of the vehicle will occur as a last resort. Latitude will be given to local bar patrons who have left their vehicles parked overnight and who have taken a cab home (patrons will need to get back to the lot the next morning and take their cars home). Commissioner Elder invited Dan Geiger, of Diamond Parking, to visit with the Board. Mr. Geiger shared, that following last month’s Board discussion, he made the decision to further assist this LCDC Midtown initiative by reducing the Diamond base monthly management fee by $25/month. Mr. Geiger also shared the LCDC will not only be acquiring Diamond’s professional management services for the Midtown lots through this proposed management agreement, but will also benefit from Diamond’s “economies of scale” position on minimizing costs associated with parking management services – e.g. Diamond can provide snow plowing services for less money vs. LCDC contracting for that service as a single independent customer.  Commissioner Patzer commented for the guests present, and for the viewing audience, that the proposed contract with Diamond Parking is for parking management oversight services, and that the intent of the LCDC at this time is to not charge for parking on the Midtown lots.

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 Commissioner Hassel asked about the term, or length, of the proposed Diamond contract? Mr. Geiger shared that Diamond’s proposal is on a month to month basis.  Commissioner Patzer shared that he feels the utilization of the Midtown parking lots will increase substantially following the completion of the Midtown reconstruction effort, so having a parking management services contract in place by early fall would be a wise move.  Commissioner Patzer also suggested that having appropriate parking management signage (e.g. no overnight parking permitted) installed/posted on the Midtown lots as early as possible would be a good idea. Motion by Colwell, seconded by Patzer authorizing the Parking Committee and Ex. Director Berns to enter into contract negotiations with Diamond Parking regarding parking management services for the LCDC Midtown surface parking lots located at 839 3rd & 845 4th . Recusal: Commissioner Davis recused himself from Board discussion re. this agenda item, and also recused himself from voting on the motion, citing a potential conflict of interest because his firm occasionally represents Diamond Parking on legal issues.

Motion carried. Commissioner Elder thanked Board members and Mr. Geiger for the comments shared, and indicated that the Parking Committee will work to have an LCDC/Diamond Parking contract available for Board review by the August Board meeting. 

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that he expects that phase of the project area to be 99% complete by September 1st.  Commissioner Elder shared that, earlier in the day, he saw the first lift of paving occurring in the phase 1 area. Commissioner Elder also shared that the Press editorial on July 15th was very complimentary of Safco’s work on the project.  Commissioner Elder asked if the project is on schedule? Mr. Stevens shared that based on the original scope of work, Safco would be about 2 weeks ahead of schedule. But with the value adding change orders to the project (e.g. installation of electrical conduit to the street trees between Roosevelt and Boise), Safco is back to being right on schedule.  Commissioner Elder asked Mr. Spencer how his role is going in the project, and how his workload is shaping up? Mr. Spencer shared that he is spending about 5 hours/workday on project related issues. Mr. Spencer is not sure if his work load will diminish during phases 2 and 3 of the project. Mr. Stevens added that he feels the time commitment for Mr. Spencer will ease a bit once Safco enters phase 3 of the project.  Commissioner Patzer asked how phase 2 of the project is progressing? Mr. Stevens shared that phase 2 is going well. Following feedback re. phase 1 activities from Midtown stakeholders, Safco changed their process in phase 2 and performed total demolition work at the outset of operations (i.e. removal of the old asphalt from the streets and demolition of the sidewalks at the same time). This process change removes the need for two stages of demolition, thus resulting in a benefit to the property/ business owners.  Commissioner Patzer asked for an explanation re. the signage change order cost incurred on the first project invoice? Mr. Stevens shared that the original project design did not accurately capture the signage need for the project. This issue was discovered and remedied by Safco once the project started. Mr. Stevens shared that it was a minor change order cost in the neighborhood of $2,000.  Mr. Spencer shared with the Board that there is an urgent need to have the gravel alleys associated with the project area oiled for dust abatement. The hot and dry summer weather is making this a serious issue for the area’s residents and business owners. Mr. Spencer commended the City for doing a great job of initially oiling the alleys, but that process needs to be repeated. City staff shared with Mr. Spencer that there are no funds budgeted for oiling of the gravel alleys in question. Mr. Spencer asked if LCDC could help address this issue?  Commissioner Patzer summed up the Board’s response to this issue by saying that the alleys need to be oiled, and who pays for the cost of the

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dust abatement treatment can be worked out at a later date. (Note: City of Coeur d’Alene Administrator Wendy Gabriel, who was present at the meeting, shared with the Board that she would address this issue right away. The Board thanked Mrs. Gabriel for her leadership on this initiative). LCDC “e-brochure” Commissioner Patzer shared that Chris Hollibaugh, LCDC Online Communication Coordinator, has completed a near final draft version of the newly designed LCDC “e-brochure” that will be available for viewing and downloading from the LCDC website. Mr. Hollibaugh shared the draft brochure with the Board. Commissioner Patzer asked Board members to share any feedback with Mr. Hollibaugh, and that the Communication Committee will review a final draft of the brochure prior to bringing the brochure back to the Board for final approval. 6. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns reviewed the quarterly District scorecards, discussed operational issues, and updated the Board on LCDC initiatives: Mayor’s Institute on City Design (MICD) Visit Ex. Director Berns invited City of Coeur d’Alene administrator Wendy Gabriel to update the Board re. this initiative. Following is a City press release re. this visit: ________________________________________________________ CdA Awarded Mayors’ Institute on City Design “Alumni Technical Assistance Program” The City of Coeur d’Alene was selected by the Mayors' Institute on City Design (MICD) to receive post-Institute technical design assistance. In a three-day charette (August 11-13), Resource Team members Michael Singer, Scot Hein, Maurice Cox, and other nationally-recognized designers and planners will expand upon the urban design lessons learned last May in Portland, Oregon when Mayor Bloem presented the education corridor for the 2008 spring Institute. Portland METRO development team members will collaborate with Resource Team members to further realize the potential of the riverfront site. Because team members from the former Institute are invited to participate, the Alumni Technical Assistance program can build on the efficiencies of having some professionals “on the same page” with respect to plans, regional history, and stakeholders. What is the Mayors' Institute? The Mayors' Institute on City Design (MICD) is a partnership program of the National Endowment for the Arts, the American Architectural Foundation, and the United States Conference of Mayors. The Mayors' Institute has helped

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transform communities through design by preparing mayors to be the chief urban designers of their cities since 1986. The MICD achieves its mission by organizing sessions where mayors engage leading design experts to find solutions to their most critical planning and design challenges. Sessions are organized around a specific issue presented by a mayor from his or her city for the other mayors and designers to discuss. The Mayors’ Institute on City Design Alumni Technical Assistance program is made possible by a generous $250,000 gift from the Edward W. Rose III Family Fund of the Dallas Foundation, directed to the National Endowment for Arts (NEA) by Mrs. Evelyn “Deedie” Potter Rose. “We are honored and are looking forward to the opportunity in August. The partnership with MICD, Portland Metro, and the community stakeholders will undoubtedly produce a quality program for our citizens,” said Mayor Bloem. “Because the Higher Education Corridor is vital to the economic development in our region, further planning is critical and we couldn’t ask for a better team of experts.” Mayors from Alexandria, VA., Auburn, WA, Little Rock, AR, and New Bedford, MA have also been selected to take part in the Mayors’ Institute on City Design Alumni Technical Assistance Program in their respective regions.

__________________________________________________ Mrs. Gabriel shared that the City is extremely honored to have the MICD coming to Coeur d’Alene. All of the funding for this visit is in place except for $15,000 needed to cover the City’s hosting costs for this event. Mrs. Gabriel hopes that the LCDC might be a willing partner in helping to fund a portion of the hosting costs. Other non-City partners being asked to provide funding for the hosting costs are North Idaho College, University of Idaho, and Lewis Clark State College. Mrs. Gabriel will come back to the Board in August with a formal partnership funding request.  Commissioner Elder asked how the findings/recommendations of the MICD will be shared with the community? Mrs. Gabriel shared that the MICD sessions will be filmed, but probably will not be televised live. The taped meetings / presentations will then be aired on public channel 19. All LCDC Board Commissioners shared that they believe this is a wonderful opportunity for the City, to gain world class insight on a strategic community project.

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632 N. Park Building Demolition Ex. Director Berns discussed the following two demolition bids for the 632 N. Park building with the Board:

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Commissioner Hassell recommended that the Board choose the lower cost bid from Cannon Hill, and to not remove either of the two large maple trees located in the public right of way at this time. Commissioner Patzer agreed with Commissioner Hassellâ&#x20AC;&#x2122;s recommendation on Cannon Hill, and concurred with the decision to leave the two street trees in place. Motion by Elder, seconded by Patzer to award the 632 N. Park demolition bid to Cannon Hill, directing Ex. Director Berns to move forward with the demolition planning / execution process. Recusal: Commissioner Colwell recused himself from Board discussion re. this agenda item, and also recused himself from voting on the motion, citing a potential conflict of interest because Cannon Hill is a client of his employer.

Motion Carried.

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Local LCDC Legal Counsel Please refer to the June 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that he and Commissioner Davis have been working on the local LCDC legal counsel initiative with LCDC legal counsel Ryan Armbruster. Mr. Armbruster has prepared draft Request for Qualification (RFQ) documentation for Commissioner Davis’ review. Mr. Armbruster has also provided recommendations re. the RFQ advertising process. Ex. Director Berns and Commissioner Davis are working on a recommendation for the Board as to the process to utilize for engaging local legal talent. LCDC Partnerships: Job Creation / Retention Summary Ex. Director Berns shared a summary as to how the LCDC, through its numerous partnership initiatives, has helped to create and retain jobs in both LCDC redevelopment districts. The table below provides June 2009 estimates as to the jobs created and retained in the respective LCDC Districts. A few key success examples: US Bank Call Center (River District: 472 new jobs), NightHawk Radiology (Lake District: 173 retained jobs), Kroc Community Center (Lake District: 150 new jobs). (“New” = new jobs created in CDA) / (“Retained” = jobs retained in CDA). Summary Table Lake District River District Total

New 780 597 1377

Retained 484 12 496

Total 1264 609 1873

7. PUBLIC COMMENT Mr. Jim Brannon asked the Board for clarification regarding several proposed FY10 budget values. Ex. Director Berns reviewed the primary budget line items per Mr. Brannon’s inquiry. 8. ADJOURN Motion by Elder, seconded by Hassell to adjourn. Motion carried. The LCDC meeting adjourned at 5:45 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

AUGUST 19, 2009

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: Elder, Hassell, Colwell, Patzer, Davis, Nipp, Hoskins, Goodlander, Jordan. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Dennis Spencer, Chris Hollibaugh, Craig Firkins, Jim Brannon, Jim Gray, John Austin, John Goedde, Deanna Austin. No public comment was given. 4. APPROVAL OF MINUTES  July 15, 2009 Board Meeting Minutes Motion by Hoskins, seconded by Goodlander to approve the July 15, 2009 Board Meeting Minutes. Motion carried. 5. ICRMP INSURANCE POLICY: COVERGE UPDATE – John Goedde John Goedde, of Panhandle Insurance, updated the Board on recent Idaho Counties Risk Management Programs (ICRMP) insurance policy coverage changes applicable to the LCDC. Mr. Goedde shared that a new issue ICRMP is working with is insurance coverage pertaining to the federal “Terrorism Insurance Act”. ICRMP has $20 million in terrorism umbrella coverage for all of its policy holders in Idaho. ICRMP is required to see if any policy holder wants to obtain individual terrorism coverage for their specific entity. Mr. Goedde feels that LCDC obtaining additional terrorism coverage would be duplicative to the ICRMP umbrella

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coverage, and thus recommended that the Board not pursue additional terrorism insurance coverage.  Commissioner Elder asked if ICRMP’s umbrella coverage provides protection for all of its policy holders in the state. Mr. Goedde answered yes. Motion by Hassel, seconded by Elder to decline individual terrorism insurance coverage for LCDC. Motion Carried.  Commissioner Colwell asked if the current LCDC deductible levels are appropriate? Mr. Goedde shared that yes, LCDC’s deductibles are appropriate.  Commissioner Patzer asked if there is any LCDC loss history with ICRMP? Mr. Goedde shared that there is no LCDC loss history, and that LCDC has not filed any claims to the best of his knowledge.  Commissioner Davis asked if the current LCDC policy contained director and officer coverage? Mr. Goedde shared that yes, that type of coverage is provided under the errors and omissions section of the policy.  Commissioner Patzer asked if Mr. Goedde had any coaching for the LCDC regarding insurance issues involving the management of surface parking lots? Mr. Goedde shared that he had no specific recommendations, other than to have the entity providing parking lot management services possess very good liability coverage. The Board thanked Mr. Goedde for his time with the Board. 6. LCDC FY2010 BUDGET  Sorensen ADA Project Update Please refer to the minutes from the LCDC March 2008 Board meeting for additional background information re. this LCDC partnership initiative. Ex. Director Berns invited SD271 Sorensen principal Jim Gray to visit with the Board and share a Sorensen project update. Mr. Gray shared that the school district was successful in receiving better construction bids following their revised project approach. Sorensen leadership is approaching the project in two phases, with phase one focusing on accessibility issues and the installation of the internal lift (elevator) infrastructure. Completion of both phases is planned for the fall of 2010.  Commissioner Elder asked when Sorensen will be ADA compliant? Mr. Gray shared that Sorensen may never be 100% officially ADA compliant, but that organizations that have buildings like Sorensen look to address

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ADA concerns as remodeling efforts occur. This current project will move Sorensen much closer to ADA compliance. ď&#x192;&#x2DC; Commissioner Davis asked about the plans for Sorensen to invoice the LCDC for project payments? Ex. Director Berns shared that Sorensen leadership estimates that approximately $216,000 of the LCDC allotted ADA funding of $450,000 will be requested from the LCDC by the end of the current LCDC fiscal year (September 30, 2009). The remaining portion of the $450,000 allotted LCDC funding will be requested by Sorensen in fiscal year 2010. The Board thanked Mr. Gray for his time and wished his team good luck on the overall Sorensen remodel effort. ď&#x201A;ˇ

LCDC FY2010 Budget Public Hearing Chairman Davis called the fiscal year 2010 budget public hearing to order at 4:21 p.m. and asked Executive Director Berns to provide an overview of the proposed budget prior to public comment. Mr. Berns shared summary comments re. the following LCDC proposed FY10 budget:

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Notice of Public Hearing Lake City Development Corporation Redevelopment Agency for the City of Coeur d’Alene Proposed Budget for Fiscal Year 2010 A public hearing for consideration of the proposed Lake City Development Corporation (LCDC) budget for the fiscal year that begins October 1, 2009, and ends September 30, 2010, will be held in the City of Coeur d’Alene Public Library’s Community Room, 702 E. Front Ave, Coeur d’Alene, Idaho, on August 19th, 2009 at 4:00 p.m., pursuant to Idaho Code 50-1002. Written or oral comments about the proposed budget are welcome. The budget provides information about revenue sources and allocated costs for LCDC services and facilities incurred for FY2008 (audited per GASB No. 34 required standards), Plan FY2009 and Proposed FY2010. The LCDC’s FY2010 proposed budget includes financial information for two Districts, the Lake District (original LCDC District formed in 1997) and the River District (LCDC District formed in 2003). The FY2008 and FY2009 data reflects financial information for both Districts. The LCDC budget funds the programs, services, and capital projects that the LCDC Board has determined to be important to meet the LCDC’s strategic goals. Additional information regarding the LCDC’s FY2010 budget, goals and strategies is available from the LCDC’s Executive Director, or from the LCDC website (www.lcdc.org). You may call the Executive Director’s office at 208-292-1630, or submit your comments or questions to LCDC Executive Director, 105 N. 1 st, Suite 100, Coeur d’Alene, Idaho, 83814. This public hearing on the proposed budget is required for formal adoption of the FY2010 budget. The Library is accessible to persons with disabilities. Any persons with disabilities desiring accommodations for the public hearing, please contact the Library office at 769-2471. FY2008 Actual Expenditures (Audited) Administration Expenses/Debt Service Capital/Debt Service Totals

FY2008 Actual Revenues (Audited)

$131,142 $1,835,801 $1,042,348 $3,009,291

Tax Increment Revenue (1) Rental Receipts Int. & Misc. Funds Capital Financing Totals

$3,489,785 $ 209,611 $ 126,471 $ 967,193 $4,793,060

Fund Balance (2), Beginning of Year Revenues Expenditures Fund Balance (2), Ending of Year

FY2008 (Audited) $2,175,916 $4,793,060 ($3,009,291) $3,959,685

(1) (2)

FY2009 FY2009 Plan Plan Expenditures Revenues

FY2010 FY2010 Proposed Proposed Expenditures Revenues

$ 161,684 $3,704,963 $1,646,909 $5,513,556

$ 170,873 $4,102,778 $1,434,480 $5,708,131 $3,795,923 $ 181,713 $ 85,000 $1,040,000 $5,102,636

FY2009 Plan $4,103,842 $5,102,636 ($5,513,556) $3,692,922

$5,129,411 $ 168,333 $ 61,000 $1,040,000 $6,398,744

FY2010 Proposed $4,936,183 $6,398,744 ($5,708,131) $5,626,796

FY2009 & FY2010 tax increment revenue generated from Kootenai County data - estimated at time of publication. FY2009 (Plan) & FY2010 (Proposed) fund balances are estimated values at time of publication. Fund Balances can be applied to debt service, applied to Board approved initiatives, or held in reserve.

Tony Berns Executive Director, LCDC

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Publication Dates:

8/19/09

August 5, 2009 & August 12, 2009

Revenues

FY2010 Budget Detail Lake District Estimated Tax Increment $ 3,442,123 Property Rental Receipts $ 168,333 Int. & Misc. Funds $ 55,000

River District $ 1,687,288 $ $ 6,000

Total $5,129,411 $ 168,333 $ 61,000

Capital Acquisition Financing Total

$ 1,040,000 $ 4,705,456

$ $ 1,693,288

$1,040,000 $6,398,744

Administration Office Expenses Travel Professional Services Notices Communications Insurance Meetings Utilities Property Management Organization Dues Miscellaneous Public Art Capital Acquisition Expense Debt: Interest Debt: Principal Property Leases LID Payments Parking Initiatives Planning Grants Sorensen ADA Project Partnership Agreements Midtown Place Making Project Ed. Corridor: Hubbard Signal

$ 102,524 $ 5,556 $ 7,200 $ 58,580 $ 2,000 $ 4,500 $ 3,415 $ 4,530 $ 12,840 $ 55,194 $ 4,446 $ 600 $ 103,264 $1,300,000 $ 336,864 $ 134,480 $ 15,200 $ 12,486 $ 50,000 $ 375,000 $ 249,065 $ 450,000 $ 568,877 $ 25,000 $ 250,000

$ 68,349 $ 3,704 $ 4,800 $ 40,920 $ 1,750 $ 3,000 $ 2,277 $ 3,020 $ $ $ 2,964 $ 400 $ 50,619 $ $ $ $ $ $ $ 88,000 $ $ $1,006,707 $ $ -

$ 170,873 $ 9,260 $ 12,000 $ 99,500 $ 3,750 $ 7,500 $ 5,692 $ 7,550 $ 12,840 $ 55,194 $ 7,410 $ 1,000 $ 153,883 $1,300,000 $ 336,864 $ 134,480 $ 15,200 $ 12,486 $ 50,000 $ 463,000 $ 249,065 $ 450,000 $1,575,584 $ 25,000 $ 250,000

Special Project Reserve

$ 300,000 $4,431,621

$ $1,276,510

$ 300,000 $5,708,131

Expenses

Total

Following Mr. Bernsâ&#x20AC;&#x2122; summary remarks, Board members discussed various line items of the budget, and asked clarification questions regarding specific budget line items. Chairman Davis asked if there was any public comment on the proposed budget. No public comment was provided regarding the LCDC FY2010 budget as proposed. Chairman Davis closed the Public Hearing at 4:30 p.m.

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

Resolution 09-06: Adoption of LCDC FY2010 Budget Motion by Elder, seconded by Patzer to approve Resolution 09-06 adopting the LCDC FY2010 Budget as proposed. Roll Call: Nipp Hassell Jordan

Yes Yes Yes

Goodlander Yes Colwell Yes Hoskins Yes

Davis Yes Patzer Yes Elder Yes

Motion carried. 7. PRESENTATION: REGIONAL TRANSIT CENTER John Austin (Panhandle Area Council, Kootenai Metropolitan Planning Organization - KMPO) shared an overview presentation with the Board regarding the planned development of a regional transit center located in the phase 2 area of the Riverstone West development area. Mr. Austin thanked the LCDC Board for allowing him to present this transit concept model at the Board meeting and to the viewing audience. Mr. Austin shared that he is presenting this evening on behalf of the Kootenai County Commissioners, wearing his KMPO public transit administrator hat. Mr. Austin’s presentation to the Board is summarized below: _____________________________________________________________ INTRODUCTION The Kootenai County Commissioners, on behalf of the Kootenai Metropolitan Planning Organization (KMPO), are pleased to present this overview of the proposed CityLink Transit Center in the Riverstone Development. Partial funding for the County’s acquisition of the site is being secured via ARRA stimulus funds and a tenant is in place for the proposed building to pay for the construction of the Center, a total of over $1.7 million. Unfunded currently are the remaining land acquisition costs and improvements to be outlined within this presentation. The County would appreciate LCDC’s consideration of the project, and help with any unfunded costs when determined. This will ensure that the project proceeds, providing a comfortable and useful link point for the 45,000 riders accessing CityLink each month. OVERVIEW OF PUBLIC TRANSIT AND CITYLINK The KMPO Board is comprised of officials from ten agencies, including the cities in the urban area, the four highway districts, Idaho Transportation Department and the County. Since 2002, the Kootenai County Commissioners, on behalf of the KMPO, have been stewards of Federal Transit Administration (FTA) funds for public transit in the urbanized area of the county. Annual matching funds come from the following partners:  The Coeur d’Alene Tribe $397,328  Kootenai Medical Center (KMC) 26,037

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      

Panhandle Area Council (PAC) City of Coeur d’Alene City of Post Falls City of Hayden City of Rathdrum City of Dalton Gardens City of Huetter Total annual match

12,000 43,983 21,950 11,696 6,166 2,904 165 $522,229

In addition, Kootenai County provides valuable in-kind match in the form of financial and administrative oversight, including the annual audit. As grantees they receive about $1.1 million annually for their Third-party Contractors as follows:  Coeur d’Alene Tribe $583,726 For Fixed Routes  Kootenai Area Transit Service (KATS) 399,420 For Demand Response  Kootenai Medical Center (KMC) 31,650 For Paratransit  Panhandle Area Council (PAC) 73,000 For Planning and Admin. Total federal funds $1,087,796 RIDERSHIP AND AWARD Ridership on the CityLink routes has increased from 8,000 the first month (November 2005) to nearly 40,000 in July 2009. Added to the monthly transports provided by KMC and KATS, total CityLink ridership is over 45,000 per month, and growing. In May, FTA awarded to CityLink its prestigious National Ridership Award, recognizing the unique partnership between a Tribe and a County to operate a free public transit service, and for being the fastest growing operation in the country. Here’s a breakdown of who rode recently:     

6,236 were students under 18 2,460 were students over 18 3,276 used CityLink to get to their employment 3,187 were seniors 161 were in wheelchairs or other ambulatory

In addition, the CDA Tribe operates a rural transit service south of Worley to Desmet in Benewah County. This has allowed anyone needing a ride from anywhere on the reservation to seek employment or educational opportunities, reducing the unemployment rate drastically from over 50% before CityLink. Intermodal transit is also popular as bicycle racks are provided. This allows a rider to access free transit to popular trails such as the Trail of the Coeur d’Alenes in Plummer. CityLink operates 20 hours a day, seven days a week, with all services free to the public.

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Since 2005, SRM Development has provided free parking to CityLink in its Riverstone Development. Buses from the four routes come together at this link every 80 minutes. TRANSIT CENTER LOCATION STUDY Earlier this year, the KMPO hired The Land Group of Coeur dâ&#x20AC;&#x2122;Alene to conduct a Transit Center Location Study. Utilizing criteria developed by the Study Location Committee, Stan Griswold of the Land Group narrowed down the potential sites from 40 to three, all of which were near the I-90 and Northwest Boulevard/Ramsey corridor. After public comments and recommendations from the Committee, the Transportation Roundtable and KCATT, the KMPO approved a site near the intersection of Seltice and Riverstone Drive. This site is near the current lot provided by SRM Development. Upon their selection, negotiations began with SRM Development for a specific site within the targeted location. That potential site is shown on the graphic following this summary. DEVELOPER CONTRIBUTION SRM Development has made the following contributions to the CityLink system and acquisition of the potential site: Land Below Cost ($14.50 vs.$13.50/SF) $ 174,240 (4 acres = 174,240 SF) NEPA Environmental for FTA 25,000 Appraisal on Potential Site 5,000 Total SRM Contributions $ 204,240 In addition SRM has contributed space for CityLinkâ&#x20AC;&#x2122;s park and ride since its inception in 2005. Had CityLink been required to rent the space, it would have cost thousands of dollars a year. CURRENT FUNDING: Kootenai County has identified $1,710,610 that is available to fund the partial acquisition of the site and construction of the transit center building. When further costs are determined, the County and the KMPO would appreciate assistance for the balance needed for site and infrastructure improvements. Here are the estimated costs from the Transit Center Study, and identified funding to date (please see attached detail): Transit Center Cost Land Cost (4 acres - estimated) Site Improvements Transit Center (5,295 SF) Design, Environmental, Contingency Total Estimated Cost

$2,352,240 1,042,235 990,410 134,646 $4,519,531

Transit Center Funding ARRA (stimulus) funds Tenant-funded Lease Total Estimated Funding

$ 720,200 990,410 $1,710,610

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(@ $13.50/SF)

Funding Shortfall – As of August 2009

$2,808,921

To close this shortfall, the County and KMPO will seek additional federal funds available for park and ride lots. They’ll also get an appraisal of the property to confirm the land cost. It is expected, however, that there will still be a shortfall after all efforts are made, so a request to LCDC will likely occur in the very near future. SUMMARY A Transit Center Location Study funded by the KMPO found that the best place for the Center is in the Riverstone Development near the intersection of Seltice Way and Riverstone Drive. A potential parcel has been identified and partial funding in place for its acquisition by the County. In addition, a potential tenant for the building has been identified that could cover the cost of the transit center building. With LCDC’s assistance for the site and infrastructure improvements, a transit center to serve the 45,000 monthly riders can become a reality. On behalf of the KMPO members and the operators of CityLink, we thank you for your consideration of this project, both now and in the very near future. Kootenai County Commissioners Rick Currie Rich Piazza Todd Tondee

Graphic Illustration of Proposed Transit Center Site (below)

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_________________________________________________________________

Mr. Austin also shared that the depicted park and ride area will contain 150 parking spaces, and that both Greyhound and NW Trailways bus lines could possibly utilize the site.

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 Commissioner Jordan asked if the proposed 5,200 square feet of building space will be comprised of one or two buildings? Mr. Austin shared that the proposed design calls for two buildings comprising the 5,200 square feet.  Commissioner Jordan asked if the site will house any repair or maintenance facilities? Mr. Austin shared that maintenance of the buses will occur at a facility in Worley, and that the buses will be stored when not in use at facility controlled by the Post Falls Highway District.  Commissioner Patzer asked how bike riders and foot travelers transported by bus to the proposed facility will access the Prairie and Centennial Trail systems? Mr. Austin shared that bike riders and pedestrians will be easily able to access both trail systems since the proposed transit center is only a short distance from a trail access point near the I90 overpass on Seltice Way.  Commissioner Davis asked how the Spokane Transit Authority (STA) will be incorporated into the proposed regional transportation plan? Mr. Austin shared that the ultimate goal of the KMPO transit center is to provide riders access to both the regional CDA area as well as access to Spokane. KMPO leadership envisions a logical connection to STA might be a common transit site located on the Cabelas site in Post Falls near state line. The Board thanked Mr. Austin for his overview presentation and insights, and looks forward to a project update once federal funding opportunities have been explored. 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 files, and the July account payables sheet, with the Board. Motion by Goodlander, seconded by Hoskins, to approve the July accounts payables and the July financial packets for the Lake & River Districts as presented. Motion carried. LCDC Economic Forecast Models Commissioner Colwell shared with the Board that the Finance Committee is still working on its periodic fine tuning of the economic assumptions contained in the Lake and River district forecast / simulation models. The Committee has completed work on updating the model’s revenue projection assumptions. The Committee plans to review and update the model’s

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debt/expense projection assumptions as deemed appropriate, and share the updated model assumptions with the Board at a future date. 

Housing Committee – Commissioner Jim Elder Housing Committee Chair Jim Elder shared with the Board that the Committee is still working with LCDC legal counsel regarding LCDC’s latitude involving partnership endeavors with workforce / affordable housing entities like the North Idaho Housing Coalition (NIHC).



Parking Committee – Commissioner Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, discussed the following Committee initiative with the Board: Diamond Parking – Proposed Management of Midtown Lots Please refer to June, 2009 LCDC Board meeting minutes for background on this initiative Commissioner Elder shared that the latest draft of a Diamond Parking / LCDC parking management agreement is being reviewed by the Diamond Parking organization. Commissioner Elder hopes to have a parking management agreement for Board review at the September Board meeting.



Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared the following Committee updates with the Board: Midtown Placemaking Project Commissioner Patzer invited Dennis Spencer and Craig Firkins of the Safco Construction firm to join the Board meeting and provide a project update. Mr. Firkins shared that the project is moving along well, is on schedule and that all three project phases are underway. He is happy with the project’s progress to date, and shared that the road paving and sidewalk installations are on schedule. Mr. Firkins also shared that work on the five colored paver intersections will commence by the end of August.  Commissioner Colwell asked when the entire project will be completed? Mr. Firkins shared that his estimate is that all three phases will be completed by the first week of October.  Commissioner Elder asked how the intersection paver installation process will flow? Mr. Firkins shared that by August 31, work on the intersection

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at 4th & Roosevelt will have commenced, with the Roosevelt intersection closed to all traffic for about one week to allow the pavers to set properly. The same process will occur during the first week of September at the intersections of 4th & Foster, and 4th & Boise. The second week of September will see paver installation at the intersections of 4th & Miller and 4th & Montana.  Commissioner Patzer asked about the status of the sidewalk installation in phase 2 of the project (Lakeside Avenue to Foster Avenue)? Mr. Firkins shared that those sidewalks should be completed by the first week of September.  Commissioner Davis asked why a few businesses in phase 1 of the project are still without sidewalks? Mr. Firkins shared that the 17’ wide sidewalks in that phase of the project created a few unique drainage issues that are still being addressed.  Commissioner Patzer asked Mr. Spencer for his insights on the project. Mr. Spencer shared that he is hearing a lot of positive feedback coupled with a lesser degree of negative feedback. Mr. Spencer feels that certain businesses in Midtown, like Clean Cuts, have very effectively embraced the construction project and have done ok business-wise through the construction cycle.  Commissioner Elder commended Mr. Spencer for his efforts in Midtown, and shared that Mr. Spencer may be elected the “honorary Mayor” of Midtown. Commissioner Elder indicated that Mr. Spencer has 360 hours of budgeted consultant time with Safco, and that he has utilized 298 hours to date. Commissioner Elder asked Mr. Spencer if his time demands will diminish a bit in September? Mr. Spencer feels that his time will probably diminish a bit in the later part of September.  Commissioner Elder asked if Safco has plans to keep Mr. Spencer on board if his project time exceeds the current 360 hour limit? Mr. Firkins shared that there are no plans to curtail Mr. Spencer’s efforts in Midtown until the project ends in early October. o Mr. Spencer encouraged LCDC members and City of CDA staff to continue to frequent the businesses in Midtown – it is surely appreciated by the business owners. Commissioner Hassel shared that City staff have been placing quite a few food take-out orders over the past few months.  Commissioner Goodlander thanked Mr. Spencer and the Safco organization for doing such a fine job in Midtown. Commissioner Goodlander knows that the Midtown businesses are struggling, and she

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encouraged folks present at the meeting and the viewing audience to frequent the Midtown businesses as much as possible during this construction process. LCDC “e-brochure” Commissioner Patzer shared that Chris Hollibaugh, LCDC Online Communication Coordinator, has completed a final draft version of the newly designed LCDC “e-brochure” that will be available for viewing and downloading from the LCDC website. Mr. Hollibaugh shared the final draft brochure with the Board, and indicated that only two updated aerial photos are needed prior to brochure completion (the aerial photos have been ordered). Mr. Hollibaugh feels that this 4 page brochure contains a lot of information, and that if additional information needs to be shared, one page brochure inserts can be developed to communicate the necessary information. Board members thanked Mr. Hollibaugh for his work in this endeavor. 9. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns discussed operational issues and updated the Board on LCDC initiatives: Centra Consulting Inc. – Government Relations Services Contract Executive Director Berns reviewed the proposed Government Relations Services Contract as submitted by Teresa Molitor of Centra Consulting, Inc. The proposed contract is for a 10 month term (August 1, 2009 through June 1, 2010) at a rate of $2,000 per month ($20,000 total contract cost).  Commissioner Patzer asked how many hours Ms. Molitor worked on LCDC’s behalf during her last contract period with the LCDC? Ex. Director Berns shared that he did not know the number of hours worked on behalf of the LCDC, but would pursue the information.  Commissioner Davis, in response to Commissioner Patzer’s question, shared that people in Ms. Molitor’s position have a hard time capturing hours spent per individual client due to the nature of the advocacy business. Often times, a conversation with a legislator can cover several topics affecting several clients.  Commissioner Davis shared that he feels it is very important for LCDC to have a resource like Ms. Molitor in Boise to handle legislative issues, especially with just an LCDC staff of one, who is located here in CDA.

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Motion by Colwell, seconded by Elder, to approve the Centra Government Relations Services Contract as proposed, retaining Teresa Molitor’s government relations services, from August 1, 2009 through June 1, 2010. Motion carried. Mayor’s Institute on City Design (MICD) Visit Ex. Director Berns and Board members shared their respective thoughts regarding the August 11-13 visit of the MICD team. Terms such as “fantastic”, “extraordinary”, “insightful”, “enlightening” were used to describe the visit by the MICD team, comprised of the following members:

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Board members expressed their amazement that Sandi Bloem, Mayor of CDA, was able to entice such talented individuals to come to CDA to share their visions on how the community can best embrace the “education corridor” concept. All Board members agreed that the Mayor’s passion, commitment and energy were the key elements in successfully engaging the Mayor’s Institute visit.

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Parkside Park – Funding of Proposed Public Improvements Please refer to the June, 2009 LCDC Board meeting minutes for more information re. this issue. Ex. Director Berns shared that the property owners, the CDA Downtown Association and the City of Coeur d’Alene are still working on several development aspects of this proposed project and plan to visit with the Board at a future date regarding updated development plans, and an updated partnership funding proposal request of the LCDC. Local LCDC Legal Counsel Please refer to the June 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that he and Commissioner Davis have been working on the local LCDC legal counsel initiative with Boise-based LCDC legal counsel Ryan Armbruster. Mr. Armbruster has prepared Request for Qualifications (RFQ) documentation and has also provided recommendations re. the RFQ advertising process. Ex. Director Berns and Commissioner Davis reviewed the RFQ documentation with the Board and discussed the RFQ advertising process utilizing both local media sources (i.e. the CDA Press & Spokesman Review) and possibly the Advocate magazine (a statewide law publication read by many Idaho law professionals). Motion by Hoskins, seconded by Hassell, authorizing the issuance of an RFQ for local LCDC legal counsel. Motion carried. 632 N. Park Avenue Building Demolition Ex. Director Berns shared that the building owned by LCDC located at 632 N. Park was demolished by Cannon Hill Industries on August 10th & 11th. Cannon Hill did an excellent job on the demolition process. Ex. Director Berns shared that his plan is to engage a contractor to install irrigation, spread grass seed and construct a low fence around the property to encourage an aesthetically pleasing environment, and to discourage parking on the site. Ex. Director Berns is working with Vista Property Management on the contractor selection process.  Commissioner Patzer asked if any salvage operation occurred in the building prior to demolition. Ex. Director Berns thanked Commissioner Patzer for the question, and that yes, the Habitat for Humanity organization was contacted re. their potential interest in salvaging assets of the building. Habitat for Humanity was very interested and performed salvage operations prior to building demolition.

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10. PUBLIC COMMENT Jim Brannon – Mr. Brannon, on behalf of the Habitat for Humanity organization, thanked the LCDC Board for allowing his organization the opportunity to salvage building assets at 632 N. Park Avenue prior to demolition; it was very much appreciated. 11. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of LCDC executive director; Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Elder, seconded by Hoskins to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of LCDC executive director; and Subsection C: acquiring an interest in real property not owned by a public agency. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Yes Davis Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. The LCDC Board entered into Executive Session at 5:36 p.m. Those present were the LCDC Board Commissioners, LCDC Executive Director Tony Berns, and Coeur d’Alene City Attorney Mike Gridley. Deliberations were conducted concerning the evaluation of the LCDC Executive Director and the acquisition of an interest in real property which is not owned by a public agency. Motion by Colwell, seconded by Hoskins to adjourn the Executive Session. Motion carried. No action was taken in Executive Session and the LCDC Board returned to regular session at 6:35 p.m. 12. ADJOURN Motion by Patzer, seconded by Elder to adjourn. Motion carried. The LCDC meeting adjourned at 6:36 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

SEPTEMBER 16, 2009

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: Elder, Hassell, Colwell, Davis, Nipp, Hoskins, Goodlander. 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Dennis Spencer, Chris Hollibaugh, Craig Firkins, Jim Brannon, Wendy Gabriel, Fred Ogram, Steve Anthony, Gordon Dobler, Jim Gray, Terry Cooper, Elizabeth Garland, Susie Snedaker. No public comment was given. 4. APPROVAL OF MINUTES  August 19, 2009 Board Meeting Minutes Motion by Elder, seconded by Hoskins to approve the August 19, 2009 Board Meeting Minutes. Motion carried. 5. PRESENTATION: KOOTENAI YOUTH RECREATION ORGANIZATION (KYRO) COMMUNITYARENA LCDC Executive Director Tony Berns shared that the KYRO presentation team asked to postpone their presentation to the Board until the October LCDC Board meeting due to team member scheduling conflicts.

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6. CDA ARTS COMMISSION â&#x20AC;&#x201C; PROJECT UPDATES Chairman Davis invited Fred Ogram, Chair of the CDA Arts Commission, Steve Anthony, CDA Arts Commission staff liaison, Elizabeth Garland & Jim Gray of the CDA Arts Commission, to join the Board meeting and share project updates. Mr. Ogram shared that the Arts Commission is doing very well in bringing public art to the community, and shared the following handouts with the Board:

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_________________________________________________________________ Mr. Ogram shared that the color brochure depicted above has just been completed by the Arts Commission and illustrates where the various pieces of public art are located in the community.

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Mr. Ogram also reviewed the “top 5” priority location lists for both the City and LCDC districts (depicted in graphic form above). As denoted, the Midtown project area in the LCDC’s Lake District is first priority for installation of public art. The Arts Commission has selected functional art for Midtown in the form of bike racks. Four fantastic bike rack design concepts were chosen for installation along 4th street in 2009 (the Commission hopes to eventually install 8 bike racks on 4th street). Mr. Ogram and Mr. Anthony also shared with the Board an overview of the selection of Teresa McHugh’s artwork for the Sherman Avenue gateway area. Mr. Gray, Sorensen Magnet School principal, shared that the Sorensen 3rd grade class is performing a city-wide inventory of “private art in public view”. The goal of the project is to produce a brochure showing the location of existing private art in the public view. A great project for the kids, with a great deliverable to the Arts Commission / community. Mr. Ogram also shared with the Board that the Commission is working with City legal staff on the best methodology for working public/private art partnership initiatives. In other words, how can the City’s Arts Commission work with the private sector to establish art in the private realm that is available to the public? To that end, the Arts Commission is benchmarking other communities around the country as to the methods they employ re. public/private art partnerships. Finally, Mr. Ogram shared that the Arts Commission is developing a model “deaccessioning policy”, which is a policy that describes the process to remove existing public art from the city’s collection if necessary. Examples of this might be a sculpture that has been so badly damaged that repairs would be impractical or not cost effective; or moving a piece of public art from one location to another for any number of reasons.  Commissioner Nipp thanked the Arts Commission representatives for their leadership on the public art front in Coeur d’Alene. Commissioner Nipp shared that he sees the community awakening to public art and appreciating its inherent value, and that the color public art “locator” brochure shared with the Board will be a great aid in helping the community better appreciate the City’s public art. Commissioner Nipp shared that helping on the public art front has been a key goal for the LCDC for many years. The City should be very proud of its public art because the City’s public art collection and commitment to public art is being recognized far and wide.  Commissioner Elder asked if all of the proposed bike rack functional art will be located in Midtown? Mr. Anthony shared that yes, the four approved concept designs will be installed in the Midtown area on 4th Street most likely between Roosevelt and Miller Avenues.

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 Commissioner Hassell asked where can the public access the new color public art brochure? Mr. Anthony shared that the brochures were just approved by the Arts Commission and plans are to have the brochure reproduced and available around town in locations like the library, Chamber of Commerce, and City Hall. Board members thanked the Arts Commission representatives for their presentation and their hard work on behalf of the community. 7. 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 August Lake and River District financial files, and the August account payables sheet, with the Board. Motion by Goodlander, seconded by Hoskins, to approve the August accounts payables and the August financial packets for the Lake & River Districts as presented. Motion carried. LCDC Economic Forecast Models Commissioner Colwell shared with the Board that the Finance Committee completed its periodic economic assumption updates pertaining to the Lake and River district forecast / simulation models. Commissioner Colwell indicated that the forecast models for both districts show tax increment revenue receipts exceeding all current LCDC debt obligation expenses, as well as potential LCDC debt obligations, simulated over the terms of the districts. Commissioner Colwell closed his comments by indicating that Board members should visit with Executive Director Berns if they would like to delve deeper into any element of the forecast model assumptions / parameters. 



Parking Committee – Commissioner Jim Elder

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Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, discussed the following Committee initiative with the Board: Diamond Parking – Proposed Management of Midtown Lots Please refer to June, 2009 LCDC Board meeting minutes for background on this initiative Commissioner Elder shared that the latest draft of a Diamond Parking / LCDC parking agreement is still being reviewed by the Diamond Parking organization and their insurance carrier. Commissioner Elder hopes to have an agreement for Board review at the October Board meeting. 

Communication Committee – Commissioner Dave Patzer Ex. Director Berns, in Communication Committee Chair Dave Patzer stead, shared the following Committee update with the Board: Midtown Placemaking Project Ex. Director Berns invited Dennis Spencer and Craig Firkins of the Safco Construction firm, and Gordon Dobler (City of Coeur d’Alene engineer) to join the Board meeting. Mr. Firkins shared with the Board that he feels the project is progressing very well and sees the “finish line” approaching. Phase 3 of the project will receive the first lift of asphalt by September 18th. Four of the paver intersections will be completed by September 18th. All project sidewalks will be installed, lighting fixtures will be installed and coloring of the designated sidewalk sections will begin by September 23rd. Street trees will be installed following the sidewalk work and then the final lift of asphalt will be installed by the end of the 2nd week of October. Mr. Dobler concurred with Mr. Firkins that the project is going along well.  Commissioner Goodlander asked if the original design plan called for installation of all of the asphalt prior to paver installation? Mr. Firkins said that yes, that was the original plan, but after further analysis, the strategy of installing the asphalt in two lifts worked better in protecting the pavers in the designated intersections.  Commissioner Goodlander asked if 4th Street will be open after all of the paver intersections are completed? Mr. Firkins and Mr. Dobler shared that yes, after the pavers are installed, there should be just intermittent lane closures on 4th Street, but no street closures.

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 Commissioner Nipp shared that the Midtown / 4th Street project has been a priority for the LCDC for many years, and that he was very pleased to see the project coming to fruition. Mr. Firkins thanked Commissioner Mr. Nipp and shared that the project truly has been a team effort, and gave special recognition to the efforts of Dennis Spencer in making the project run as smooth as possible. 8. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns discussed operational issues and updated the Board on LCDC initiatives: Mayor’s Institute on City Design (MICD) Visit Ex. Director Berns invited City of Coeur d’Alene Administrator Wendy Gabriel to update the Board on the recent MICD visit. Mrs. Gabriel shared that the City was extremely honored to have the MICD team visit Coeur d’Alene on August 11-13, 2009 where the team focused their 3-day review session on the education corridor and its connectivity to activities to the east and to the west. Mrs. Gabriel thanked Board members for their participation in the many MICD meetings and events. Mrs. Gabriel reminded Board members that the City’s total cost in bringing the Mayors’ Institute to Coeur d’Alene would not exceed $15,000; total of both inkind and out-of-pocket expenses. The City’s total out-of-pocket cost for this event was $10,803 of which the education partners (North Idaho College, University of Idaho, Lewis Clark State College), through the NICHE entity, have agreed to contribute $3,000. Mrs. Gabriel shared that the City of Coeur d’Alene respectfully requests that LCDC provide partnership funding in the amount of $3,500 towards the MICD hosting cost. The City will absorb the remaining balance of $4,303. Following is a breakdown of the MICD visit costs: Misc. Supplies Misc. microphone rental Dinner Cruise Food Airfare Lodging Total

$ 374 $ 150 $3,000 $2,057 $1,713 $3,509 $10,803

Motion by Elder, seconded by Hoskins, to authorize $3,500 in LCDC partnership funding to help defray the costs incurred by the City of Coeur d’Alene for hosting the MICD team visit.

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Discussion:  Commissioner Hassell asked if there will be any MICD team deliverables? Mrs. Gabriel shared that yes, the City should receive a final written document by the end of next week. Next steps will involve the review of the draft MICD team document by the education corridor stakeholder groups, and then to have a Memorandum of Understanding (MOU) developed adopting a framework plan for the education corridor area.  Commissioner Goodlander asked if there still is a need for a traffic study for the area? Mrs. Gabriel shared that yes, there still is a need to evaluate how traffic will flow throughout the whole education corridor area, including the best locations for ingress/egress intersections onto Northwest Boulevard from the North Idaho College / Fort Grounds area.  Commissioner Elder asked if the MICD presentations are still being broadcast on channel 19? Mrs. Gabriel shared that yes, the taped MICD sessions are still being broadcast on channel 19.  Commissioner Davis shared that he is extremely pleased with the outcome of the MICD team visit. He shared that the Coeur d’Alene community received a huge benefit for their investment in the process. Motion carried. 823 N. 4th Land Asset Acquisition Ex. Director Berns shared that The Housing Company (THC), an entity of the Idaho Housing & Financing Association (IHFA), has completed the purchase of the building and land located at 823 N. 4th Street. Per LCDC Board direction provided at the May 20, 2009 Board meeting (via LCDC Resolution 09-05), the LCDC Ex. Director will work with THC leadership on developing a purchase and sale agreement wherein the LCDC will purchase the land asset from THC. Local LCDC Legal Counsel Please refer to the June 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that the first printing of the legal notice for the proposed LCDC local legal counsel was published on September 15, 2009 in both the CDA Press and the Spokesman Review. A second printing in both newspapers will occur on September 24, 2009. An ad mirroring the language of the published legal notice was also submitted for posting on the Idaho State Bar

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Associationâ&#x20AC;&#x2122;s website under the job announcement section. Interested parties need to submit qualification packages to the LCDC by October 8, 2009. 9. PUBLIC COMMENT No public comment 10. ELECTION OF LCDC CHAIRMAN & VICE CHAIRMAN Motion by Commissioner Colwell that Commissioner Denny Davis be nominated as LCDC Board Chairman, and that Commissioner Jim Elder be nominated as LCDC Vice-Chairman, for fiscal year 2010. Commissioner Goodlander 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 Elder 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 Elder thanked their fellow Board members, and shared that what gets accomplished by the LCDC is a result of a team effort, not the efforts of just one or two Board members. 11. EXECUTIVE SESSION â&#x20AC;&#x201C; Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of LCDC executive director; Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Hassell, seconded by Hoskins to convene an Executive Session, as provided by Idaho Code Section 67-2345(1) Subsection B: to consider the evaluation of LCDC executive director; and Subsection C: acquiring an interest in real property not owned by a public agency. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Absent Davis Yes

Hassell Jordan Hoskins

Yes Absent Yes

Motion carried. The LCDC Board entered into Executive Session at 4:50 p.m. Those present were the LCDC Board Commissioners and LCDC Executive Director Tony Berns. Deliberations were conducted concerning the evaluation of the LCDC Executive Director and the acquisition of an interest in real property which is not owned by a public agency.

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Motion by Elder, seconded by Hoskins to adjourn the Executive Session. Motion carried. No action was taken in Executive Session and the LCDC Board returned to regular session at 5:31 p.m. 12. CONSIDER APPROVAL OF EXECUTIVE DIRECTOR EMPLOYMENT AGREEMENT Chairman Davis shared that the Board has reviewed the updated LCDC Executive Director employment agreement as prepared by LCDC legal counsel. Chairman Davis and other Board members shared that they are very pleased to renew the contract of the LCDC Executive Director, and complimented Mr. Berns on his professionalism and leadership. Resolution 09-07: Authorization of Executive Director Contract Renewal Motion by Colwell, seconded by Hoskins, to approve Resolution 09-07 authorizing a renewed employment agreement for the LCDC Executive Director, and to make the following adjustments to the LCDC Executive Director’s compensation package for fiscal year 2010: The LCDC (employer) contribution match amount to the Executive Director’s 401(k) plan for fiscal year 2010 will reflect a 3% increase over the fiscal year 2009 amount. No modifications at this time to the Executive Director’s current salary. Roll Call: Nipp Hassell Jordan

Yes Yes Absent

Goodlander Yes Colwell Yes Hoskins Yes

Davis Yes Patzer Absent Elder Yes

Motion carried. 13. ADJOURN Motion by Nipp, seconded by Elder to adjourn. Motion carried. The LCDC meeting adjourned at 5:38 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

OCTOBER 21, 2009

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: Elder, Hassell, Colwell, Davis, Nipp, Hoskins, Goodlander, Patzer, Jordan 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Dennis Spencer, Chris Hollibaugh, Jim Brannon, Matt Beam, Vince Hughes, Dan Geiger, Dennis Grant, Gordon Dobler, Charlie Miller, Kevin Stevens, Arlin Berge, Larry Spencer, and others (mainly KYRO organization supporters). No public comment was given. 4. APPROVAL OF MINUTES  September 16, 2009 Board Meeting Minutes Motion by Hoskins, seconded by Hassell to approve the September 16, 2009 Board Meeting Minutes. Motion carried. 5. PRESENTATION: KOOTENAI YOUTH RECREATION ORGANIZATION (KYRO) COMMUNITYARENA Chairman Davis welcomed KYRO president Vince Hughes to the Board meeting. Mr. Hughes, with support of KYRO manager Matt Beam, led the Board through a PowerPoint presentation detailing the business model and background of the KYRO organization; the January, 2009 destruction (roof collapse) of the KYRO facility; the planned reconstruction of the KYRO facility; and the desire to have LCDC provide partnership funding ($221,000) for the new KYRO 139 space surface parking lot. Key slides of the presentation follow.

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Other KYRO facility reconstruction specifics shared by the presentation team included:  KYRO is a 501c(3) nonprofit organization (tax-exempt entity).  New 38,000+ sq. ft. KYRO facility will have one ice sheet, with a seating capacity of 510. A second ice sheet could be added in the future if economic conditions are favorable.  KYRO’s insurance settlement pertaining to last winter’s building roof collapse (due to excessive snow load) equals $2.03 million.  KYRO’s “bare-bones” construction budget for the new building complex equals $2.3 million.  KYRO’s desired construction budget for the new building complex equals $2.8 million.  Anticipated total project value of new facility when completed equals $3.9 million.  The four (4) acres of land upon which the KYRO facility will reside is currently owned by the Hughes family. The land will be transferred at no cost to the KYRO organization. Charlie Miller, Executive Director of the North Idaho Centennial Trail Foundation (NICTF), also addressed the Board on behalf of the KYRO organization, lending NICTF’s support to the KYRO proposal re. the public benefit associated with KYRO’s connectivity to the Centennial Trail (“Trail”). Mr. Miller shared that the proposed parking lot will act as a great trail head for the Trail, creating extremely valuable access to that section of the Trail, and will also serve as a valuable park & ride for the community. Mr. Miller also shared that the NICTF views KYRO as an organization that has a positive effect on the community, teaching positive life skills to the community’s youth.  Commissioner Goodlander asked how long it will take to complete construction of the new ice facility? Mr. Hughes responded that the KYRO planning team envisions a 5-6 month construction period, and have a target opening date of September 1, 2010.  Commissioner Elder commended the KYRO organization for a very nice presentation. Commissioner Elder asked when the 4 acre property is transferred from the Hughes family to the KYRO organization, will there be debt service associated with the land transfer? Mr. Hughes shared that the land will be transferred in the near future to KYRO at no cost, but eventually, the Hughes family would like to realize some type of financial return from the land transfer.  Commissioner Elder asked Mr. Miller if NICTF anticipates any change in use of the section of the Trail that parallels the KYRO facility area? Mr. Miller shared that NICTF hopes to expand use on that section of the Trail, so there are long-term strategic goals for that section which translates into that section of the Trail staying viable for years to come.

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 Commissioner Patzer asked Mr. Miller what kind of usage other trailheads on the Trail receive? Mr. Miller shared that NICTF does not have any hard usage data, but anecdotally, existing trail heads on the Trail system have been determined to be heavily used by the community. Close-in trail head access to the Trail system, as proposed by the KYRO plan, add great value to the overall Trail system.  Chairman Davis asked Mr. Miller if the land under the section of the Trail in question is owned by the State of Idaho as part of the I90 corridor? Mr. Miller responded that yes, the underlying land for that section of the Trail is owned by the State.  Commissioner Jordan asked Mr. Miller what Trail user group would most likely utilize the proposed KYRO parking lot? Mr. Miller shared that many varied user groups would utilize this trail head. The City of CDA maintains the Trail year round (i.e. snow plowed) which offers better access to trail heads for Trail users. Mr. Miller noted that the proposed KYRO trial head lot offers very good synergies to NICTF due to the different seasonality of use: Trail users will use the KYRO trail head parking lot when KYRO patrons (i.e. ice rink users) are not, and vice versa.  Commissioner Jordan asked if the 4 acres of land to be transferred to KYRO will be tax exempt? Mr. Hughes responded that yes, once transferred to KYRO, the 4 acres would become tax exempt.  Commissioner Patzer asked how much public ice time will be available when the new facility is completed? Mr. Hughes shared that KYRO plans to have public skate times available during the week (e.g. maybe on Fridays for 2 hours) and on the weekends (e.g. maybe Saturday and Sunday afternoons for 2 hours). Mr. Hughes shared that there will also be “learn to skate” & “learn to play hockey” classes offered in the evenings. Classes usually cost about $50, which includes all needed equipment. KYRO charges for public skate sessions will be about $3 for youth and $5 for adults.  Commissioner Patzer asked how KYRO’s financial pro-forma will fare with the new facility vs. the old facility – i.e. will the new KYRO facility improve the financial performance of the organization? Mr. Hughes shared that one large benefit associated with the new facility will be that utility costs will decrease quite substantially due to better construction and ice sheet insulation. Revenues will also see an increase due to increased private skate lessons. Mr. Hughes shared that the KYRO organization’s main goal is not to make a lot of money, but to offer community patrons valued services at reasonable prices.  Commissioner Patzer asked if the LCDC Board could review a copy of KYRO bylaws? Mr. Beam will share a copy of the bylaws with the Board.

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 Commissioner Colwell asked if LCDC were to offer partnership funding towards the KYRO project, would KYRO consider offering the public free skate time opportunities which would enhance the overall public benefit of the project? Mr. Hughes shared that yes, KYRO would entertain and evaluate such an overture if LCDC partnership funding materializes.  Chairman Davis asked if the Post Falls highway district approach cost element, as presented, is in the public right of way? Mr. Hughes was not completely sure how much of the proposed cost element is in the public right of way, but will research that issue.  Commissioner Patzer asked if LCDC chose not to provide partnership funding to the KYRO project, would the KYRO facility be built anyway? Mr. Hughes shared that yes, regardless of LCDC partnership funding, the new KYRO facility will be built. However, the facility would not be built as desired, and would take longer to build. KYRO would have to realize cost savings in the facility to pay for the required parking lot, thus possibly foregoing galvanized steel trusses (a savings of $100,000), and/or not including a concession stand in the new facility; and/or utilizing old rubber flooring instead of buying new flooring.  Commissioner Jordan noted that the KYRO facility is in the County now, does KYRO plan to stay in the County long-term? Mr. Hughes responded that yes, KYRO is in the County due to cost savings at this point in time (water and septic cost savings). KYRO does plan to seek annexation into the City of CDA if/when they decide to add a second ice sheet to the facility.  Commissioner Jordan asked if the 510 seat facility is the right size for the long-term? Mr. Hughes shared that yes, the proposed footprint will work well for the foreseeable future. KYRO would like to build an Olympic size rink but can’t justify the extra costs based upon planned usage levels. KYRO leadership feels the project is sized right for the community’s needs.  Commissioner Nipp thanked all of the KYRO representatives for attending the meeting and commended the organization for a fine presentation. Commissioner Nipp praised all of the KYRO volunteers for their efforts and commitment to the community. Note: Commissioner Goodlander left the meeting at 5:05 p.m. Chairman Davis thanked the KYRO presentation team for a fine job, and echoed Commissioner Nipp’s praise of the volunteer efforts. Chairman Davis asked the Finance Committee to continue working the KYRO request and develop a recommendation for the Board.

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6. 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 September Lake and River District financial files, and the September account payables sheet, with the Board. Motion by Patzer, seconded by Hassell, to approve the September accounts payables and the September financial packets for the Lake & River Districts as presented. Motion carried. Review of Fourth Quarter (Q4) FY09 Summary Report Commissioner Colwell and Executive Director Berns reviewed and discussed the fiscal year 2009 (FY09) fourth quarter (Q4) financial summary report with the Board. 

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Parking Committee – Commissioner Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, invited Dan Geiger (Diamond Parking’s Regional General Manager) to join the meeting. Commissioner Elder shared that discussions between Diamond Parking and the LCDC re. a Midtown parking management agreement are now complete, and that the following agreement parameters have been provided to LCDC by Diamond:  Diamond Parking monthly management fee: $226.40 (includes labor, insurance and management overhead costs),  Diamond Parking management services provided include: Daily lot visitation (7 days/week), Removal of trash from site, Assist LCDC with appropriate lot signage, Arrange and manage lot maintenance issues (snow plowing, lot striping, etc.) Monitor lots to prevent long-term (i.e. storage) parking of vehicles, Assist Idaho Youth Ranch with any parking related issues,

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Discourage vandalism. Commissioner Elder also shared that the intent at this time is for LCDC to not charge for parking on the Midtown lots.  Commissioner Nipp shared that he feels Diamond’s proposal is very reasonable and very appropriate for the LCDC Midtown parking assets.  Commissioner Hassell asked if Diamond will provide weed management services for the parking lots? Mr. Geiger shared that annual (or seasonal) weed treatment will be part of their management services for the lots, and any treatment costs will billed to LCDC.  Commissioner Patzer shared that he feels signage for the parking lots is critical and looks forward to Diamond’s help in placing appropriate signage on the lots. Commissioner Patzer also raised the issue of the existing post & chain fencing around certain portions of the lots and asked if Diamond would help develop a better fencing solution? Mr. Geiger shared that Diamond will work with Ex. Director Berns on a better fencing solution for the lots. Motion by Colwell, seconded by Jordan, authorizing the Parking Committee & Ex. Director Berns to finalize negotiations with Diamond for management of the LCDC Midtown lots, with said final management agreement containing the specific conditions as outlined above. Motion carried. Recusal – Commissioner Davis recused himself from voting on this motion because his law firm occasionally provides legal counsel to the Diamond Parking organization.

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Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared the following Committee update with the Board: Midtown Placemaking Project Commissioner Patzer invited Dennis Spencer and Kevin Stevens of the Safco Construction firm, and Gordon Dobler & Dennis Grant (City of Coeur d’Alene Engineering Department) to join the Board meeting and provide a project update. Mr. Dobler shared that the Midtown project is just about complete, with just a few minor issues left to address. He termed the project a “flagship project”

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for the City and commended the Safco organization for a great job. The project came in on time and under budget. Mr. Stevens shared that it has been a pleasure working with the City and the LCDC on the Midtown project. Mr. Stevens reintroduced the possibility of the LCDC helping to defray some of the costs associated with Safco hiring Dennis Spencer for his PR role on the project. Mr. Spencer was budgeted for 360 hours, and actually spent 428 hours on the project. Would LCDC be willing to possibly pickup the cost associated with the extra 68 hours?  Commissioner Colwell asked Mr. Stevens what Mr. Spencer was paid per hour under his Safco contract? Mr. Stevens shared that the rate was $40/hour. Commissioner Patzer shared that he felt Mr. Spencer did and excellent job in Midtown, and was a great aid to the project. Commissioner Patzer shared that as the project wraps up, LCDC will look to see what level of contingency funding remains that could possibly be used to address Mr. Spencer’s contract overrun hours. Commissioner Patzer also reviewed the second Midtown project invoice submitted to the LCDC by the City in the amount of $833,008.50. Commissioners asked Mr. Dobler a few clarifying questions regarding the invoice and project spending to date. Motion by Elder, seconded by Colwell, to approve the second Midtown Project invoice in the amount of $833,008.50. Motion carried. 7. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns reviewed the 4th quarter FY09 district scorecards and updated the Board on LCDC initiatives: Local LCDC Legal Counsel Please refer to the June 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that the following four (4) law firms submitted Statements of Qualifications (SOQ) per the local LCDC legal counsel Request for Qualifications (RFQ):  Quane Smith LLP (CDA Office) Attorneys: Randy Adams / Robert Williams  Lukins & Annis (CDA Office)

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Attorney: Peter Smith  Hawley Troxell (CDA Office) Attorney: Danielle Quade  Christensen & Doman, PC (St. Maries) Attorneys: Rich Christensen / Andrew Doman Chairman Davis shared that he would like to form a team to review the SOQs and develop a recommendation for the Board. Commissioner Hoskins, Commissioner Elder, and Commissioner Hassell volunteered to help Chairman Davis review the SOQs. Education Corridor “Guiding Principles” Initiative Chairman Davis and Ex. Director Berns discussed the initiative to develop “guiding principles” that will help govern the development of the education corridor area over the years to come. By year end 2009, each education corridor partner entity (i.e. City of CDA, North Idaho College, University of Idaho, Lewis Clark State College, LCDC) will work on developing what they feel should be principles that guide development on the corridor. These guiding principles will then be collated and used as a strawman to seek public input as to the completeness of these principles in early 2010. Ex. Director Berns shared that he will ask the Education Corridor Ad hoc Committee (Commissioners Nipp, Davis, Elder, Hoskins) to develop a draft guiding principle document for the Board to review by year end. 8. PUBLIC COMMENT No public comment 9. EXECUTIVE SESSION – Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Hassell, seconded by Patzer 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: Nipp Yes Colwell Yes Elder Yes

Goodlander Absent Patzer Yes Davis Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried.

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The LCDC Board entered into Executive Session at 5:45 p.m. Those present were the LCDC Board Commissioners, LCDC Executive Director Tony Berns, and Coeur dâ&#x20AC;&#x2122;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. Motion by Colwell, seconded by Davis to adjourn the Executive Session. Motion carried. No action was taken in Executive Session and the LCDC Board returned to regular session at 6:51 p.m. 10. ADJOURN Motion by Hassell, seconded by Elder to adjourn. Motion carried. The LCDC meeting adjourned at 6:52 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

NOVEMBER 18, 2009

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: Elder, Colwell, Davis, Nipp, Hoskins, Goodlander, Patzer 2. PLEDGE TO ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Eric Bailey No public comment was given. 4. APPROVAL OF MINUTES  October 21, 2009 Board Meeting Minutes Motion by Hoskins, seconded by Patzer to approve the October 21, 2009 Board Meeting Minutes. Motion carried. 5. RESOLUTION NO. 10-01: 823 N. 4TH STREET – PURCHASE AGREEMENT FOR LAND ASSET LCDC Executive Director Tony Berns provided an overview of the purchase agreement for the land asset located at 823 N. 4th Street. The land asset is owned by The Housing Company (THC). The purchase agreement calls for the LCDC to purchase the land asset from THC for $100,000. THC will retain ownership of the existing building on the site until THC’s Midtown redevelopment efforts commence, at which time the building will be demolished and the underlying land (now owned by the LCDC) will be utilized for public surface parking purposes. Commissioner Patzer recommended that additional language be included in Section 5 of the agreement that indemnifies the LCDC from any claims or

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demands and all actions, damages, liabilities, obligations, loss or injury to any person or property arising from acts or omissions that occur on or after the date of closing which arise or result from any acts or omission by the Seller (i.e. The Housing Company), its agents, employees or tenants. Other Board members agreed with Commissioner Patzer’s suggestion and directed Ex. Director Berns to include such language in the agreement. Motion by Goodlander, seconded by Hoskins to approve Resolution 10-01 authorizing the purchase agreement, as amended re. indemnification, between the LCDC and The Housing Company wherein the LCDC will acquire the land asset located at 823 N. 4th Street from The Housing Company for $100,000. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Yes Davis Yes

Hassell Jordan Hoskins

Absent Absent Yes

Motion carried. 6. 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 October Lake and River District financial files, and the October account payables sheet, with the Board. Motion by Hoskins, seconded by Patzer, to approve the October accounts payables and the October financial packets for the Lake & River Districts as presented. Motion carried. KYRO Partnership Funding Request Please refer to the October 21, 2009 Board meeting minutes for background on this initiative. Commissioner Colwell shared that the Finance Committee is still reviewing the KYRO partnership funding request and plans to have a funding recommendation for Board review at the December Board meeting. 

Housing Committee – Commissioner Jim Elder Housing Committee Chair Jim Elder had no report to share with the Board.

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Parking Committee – Commissioner Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, shared that the LCDC / Diamond Parking Midtown parking management agreement is being routed through the signature process. Commissioner Elder also shared that downtown parking audit work is continuing via the assistance of Diamond Parking. The current audit work is a follow-up to the original parking audit work performed by Rich and Associates in the summer of 2007. The current audit work is designed to further validate the parking needs for downtown and to help determine the eventual timing for a downtown structured parking facility. Diamond’s recent results show that downtown parking is available on a typical summer day (test date was Friday August 28, 2009). On-street public parking results showed a 33% availability rate due to 2-hour parking rotation enforcement, and off-street public parking results showed a 30 to 72% availability rate depending upon the time of day. The highest use of both onstreet and off-street parking occurred in the afternoon. Diamond parking audits will continue through the upcoming winter and spring months to assess seasonality issues. Commissioner Elder shared that based upon the recent Diamond audit results, there appears to be adequate downtown parking capacity in the near term. The necessity of a downtown parking structure still seems to be a few years out.  Commissioner Nipp asked if the audit dealt with both the efficiency of the current downtown parking system, and how well-used is the existing public parking capacity? Commissioner Elder shared that the Parking Commission still needs to better understand the turnover rates and how rotating parking capacity best benefits the downtown area. That is one of the desired deliverables from the Diamond Parking audit work.

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Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared the following Committee update with the Board: Midtown Placemaking Project - Commissioner Patzer shared that the Midtown project dedication went very well last month, and that snow removal readiness level issues are the topic of the day. Overall, very positive feedback received on the project.

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 Commissioner Goodlander shared that Tim Martin (City of CDA Streets Superintendent) has met with the Midtown stakeholders to discuss snow removal issues. Commissioner Goodlander noted that sidewalk snow removal needs to be arranged for the property owned by LCDC/THC on 4th Street.  Commissioner Patzer shared that Diamond Parking’s snow plowing contractor might be willing to clear the sidewalks adjoining the LCDC/THC properties.  Commissioner Hoskins asked if the City plans to place a 2 hour free parking limit on the Midtown (4th Street) on-street parking stalls? Commissioners Goodlander and Elder responded that they know of no plans at this time for the installation of 2 hour on-street parking signs in the Midtown area. The hope is that the Midtown business owners will encourage their employees to utilize the abundant off-street parking space available to the Midtown area. 7. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns discussed operational issues and updated the Board on LCDC initiatives: Urban Land Institute (ULI) Coeur d’Alene “Emerging Trends” Program Ex. Director Berns provided a summary review of the following ULI Emerging Trends program held at the Kroc Center on November 17th.:

Real Estate in 2010: What it Means for You! Emerging Trends in Real Estate 2010 November 17, 2009 | Coeur D'Alene, KROC Center

Emerging Trends in Real Estate® is a trends and forecast publication with a 30-year history, and is the most highly-regarded and widely-read forecast report in the real estate industry. Emerging Trends in Real Estate® 2010, undertaken jointly by ULI and PricewaterhouseCoopers, provides

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an outlook on U.S. investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues. The report draws on formal and informal surveys of real estate executives, investors, developers, and market experts around the U.S., including survey responses from over 400 real estate executives and personal interviews with over 150 industry leaders. Registration for this event includes continental breakfast and a copy of Emerging Trends in Real Estate速. Event Timeline 7:30 - 8:00 am Registration & Breakfast 8:00 - 8:35 Keynote speaker, Dean Schwanke, ULI Senior Vice-President and Editor of the Emerging Trends Report 8:35 - 9:35 am Local Response Panel Jason Wheaton, President of Greenstone Corporation Charlie Nipp, President of Parkwood Business Properties Jack Heath, Spokane, President of Washington Trust Bank Steve Griffitts, President of Jobs Plus 9:35 - 10:00 am Q & A period Scheduled Speakers: Dean Schwanke - Senior Vice President, Publications at the Urban Land Institute, Washington D.C. - Dean directs the development of new books and research reports and oversees the work of research directors and other staff who manage book development projects, research programs, and information service programs. In this capacity, he oversees development of the Emerging Trends in Real Estate reports for the Americas, Europe and the Asia Pacific. Over the past twenty-five years, he has authored or co-authored numerous books and reports for ULI on a variety of real estate and development topics, including the annual ULI Real Estate Forecast from 1996 to 2003, the Mixed-Use Development Handbook in 2003, and the Resort Development Handbook in 1997. In addition to research and publication projects, he has developed numerous conference programs for ULI, including investment conferences in London and Tokyo and the annual ULI conference on Place Making. He holds a BA degree from the University of Wisconsin - Madison and a master of planning degree from the University of Virginia. Coeur D'Alene Speakers: Jason Wheaton - President, Greenstone Corporation - Jason Wheaton has over 30 years of experience in real estate development and all aspects of residential construction. He spent 17 years in Southern California with M.J. Brock and Sons, a division of The Ryland Group, leaving his position as Division Manager of the Los Angeles Office to join the Greenstone Corporation in 1993. He is the President and Chief Operating Officer for Greenstone Corporation, an affiliated group of innovative real estate development and construction companies with projects throughout the Inland Northwest.

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Charlie Nipp - President, Parkwood Business Properties - Charlie Nipp is an owner, developer, and manager of commercial real estate projects located primarily in Idaho. Charlie started creating and developing commercial properties in 1978 and is involved in the management and ownership of Parkwood Business Properties. He graduated from Whitworth College in 1967 with a degree in Business Administration, and received his Masters Degree from Portland State University in 1971. Charlie has been very active in a variety of civic organizations in Idaho and the Northwest. He is a past President of the Kootenai Medical Center Foundation, the Coeur d'Alene Area Chamber of Commerce, and Job's Plus (an economic development corporation); and a former director of both Bank of America, Idaho and of the Life Center Northwest Donor Network. Charlie is currently the Chairman of the Board of Mountain West Bank, and a commissioner of the Lake City Development Corporation. Jack Heath - President, Washington Trust Bank - John ("Jack") Heath is President and Chief Operating Officer of Washington Trust Bank. He was elected to this position in March 2000. Prior to this, Mr. Heath was Senior Vice President, Retail Banking - September 1998, Senior Vice President, North Idaho Market Manager - February 1996, and Vice President, Commercial Loans - October 1989. Prior to joining the Corporate Banking Group, Mr. Heath held numerous positions in Marketing, Investment Services, and Branch Banking. Mr. Heath is active in the community, currently serving on the Gonzaga Board of Trustees and Gonzaga Forum Board, University of Idaho Investment Committee and the Mobius Science Center Board. Mr. Heath is also the past Chairman of the Washington Bankers Association and serves on the board of the Pacific Coast Banking School. Mr. Heath received a BA in Finance from the University of Idaho and an MBA in Finance from Gonzaga University. He and his wife Lisa, have two children, Julia and John. Washington Trust Bank is the largest independently owned full-service commercial bank in Washington, Oregon, Utah, Arizona and Idaho with a total of 40 offices and branches. The Bank was founded in 1902 in Spokane, Washington, which remains its headquarters today. A wholly owned subsidiary of W.T.B. Financial Corporation, Washington Trust Bank has assets in excess of $3.8 billion. Washington Trust Bank currently employs about 760 people. Steve Griffitts - President, Jobs Plus – Steve is a graduate of Coeur D'Alene High School (1973) and of Brigham Young University, with a B.S. Degree in Business Management, focusing on finance, accounting, economics. Mr. Griffitts’ experience includes: > GTE Directories, Division Manager (Spokane) > GTE Directories/Begacom Telephone Co. (Joint Venture) Chief Operating Officer (Belgium) > AT&T Director of Sales (Wisconsin/Iowa) > AT&T Vice President Business Services (Missouri/Kansas) > AT&T Sales Center Vice President, Western Region Government Solutions > Jobs Plus, Inc. – President since 2003 Mr. Griffitts also is involved in the following organizations: > Idaho Economic Development Association - Executive Board Member > Inland Northwest Partners - Member

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> Salvation Army - Executive Committee Member > Coeur d'Alene Rotary - Member > Leadership Coeur d'Alene - 2004 Graduate > Married to Marilyn, four children, seven grandchildren

_________________________________________________________________ Ex. Director Berns shared that the program was very well attended by a regional audience, and that the local panelists did an outstanding job of “regionalizing” for the audience how global/national real estate trends will most likely impact the Inland Northwest in 2010.  Commissioner Elder congratulated Commissioner Nipp on doing an outstanding job as a panel member. Commissioner Elder said he was very impressed with the turnout for the program and thought the program’s content was right on the mark.  Commissioner Davis echoed Commissioner Elder’s comments re. the program’s content and Commissioner Nipp’s contribution to the event – a very value adding program for the community.  Commissioner Goodlander also thanked Commissioner Nipp for his participation on the ULI panel, as well has his efforts over the years to position LCDC as a key sponsor and supporter of ULI efforts in Idaho.  Commissioner Nipp thanked everyone for their comments and shared that ULI, as an entity, provides tremendous value to communities like CDA and encouraged the Board to maintain the Agency’s commitment to ULI efforts. Commissioner Nipp also shared that he sees great value in encouraging our elected City officials to attend one of the national ULI events, they would greatly benefit from such an experience. Local LCDC Legal Counsel Please refer to the October 21, 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that the ad hoc team (Commissioners Davis, Elder, Hassell, Hoskins) formed by the Board in October met and reviewed the four submitted Statements of Qualifications (SOQ) packets per the local LCDC legal counsel Request for Qualifications (RFQ). The following two law firms have been invited for an interview:  Quane Smith LLP (CDA Office) Attorney: Randy Adams  Hawley Troxell (CDA Office) Attorney: Danielle Quade LCDC Meeting Minutes

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The interviews are scheduled for early December. Education Corridor “Guiding Principles” Initiative Commissioner Nipp discussed the initial work completed by the Education Corridor ad hoc committee (Commissioners Nipp, Davis, Elder, Hoskins) concerning the development of “guiding principles” that will help govern development within the education corridor area over the years to come. Following is the list of guiding principles developed by the committee (no specific importance tied to the sequence of bullets):  



 



Collaboration  Development within the education corridor should help to facilitate the collaboration between the education institutions. Connectivity  Development within the education corridor should enhance the following “connections”: Public access to the water Education institutions to the downtown core Pedestrians/bikers to the corridor/downtown core Corridor to Blackwell Island Density  Development within the corridor should always strive to optimize the infill capability of land assets to support the highest appropriate density of use (built form). Building footprints/envelops should incorporate structured parking where practical minimizing the need for off-site parking. Facilities should focus on shared institutional uses when feasible. Public/private partnerships should be evaluated where feasible to optimize building footprints/envelops. Single story buildings should be discouraged. Public Space / Public Art  Development within the education corridor should incorporate (or create) public space and art where practical and appropriate. Culture & History  Development within the education corridor should respect and protect the diversity, integrity and character of existing cultural / historic assets.  Special consideration should be provided the Ft. Grounds neighborhood. Housing  Development within the education corridor should encourage additional housing opportunities across the housing affordability spectrum.

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

Sustainability (the sustainability definition below is one of many definitions – it is included just for discussion purposes) 

Development within the education corridor should strive to make development choices which respect the relationship between the three "E's"-economy, ecology, and equity: Economy - Economic activity should serve the common good, be self-renewing, and build local assets and self-reliance. 2. Ecology - Humans are part of nature, nature has limits, and communities are responsible for protecting and building natural assets. 3. Equity - The opportunity for full participation in all activities, benefits, and decision-making of a society. 1.

 Commissioner Patzer suggested that a separate bullet be shown in the “guiding principles” recognizing the importance of the Ft. Grounds neighborhood. Commissioner Nipp shared that the Ft. Grounds neighborhood was a key topic of conversation during the development of the guiding principles and agreed that it does deserve its own bullet point (which does now appear in the revised list as shown above). By year end 2009, each education corridor partner entity (i.e. City of CDA, North Idaho College, University of Idaho, Lewis Clark State College, LCDC) will work on developing what they feel should be principles that guide development on the corridor. These guiding principles will then be collated and used as a strawman to seek public input as to the completeness of these principles in early 2010. 8. PUBLIC COMMENT No public comment 9. 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 Colwell 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: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Yes Davis Yes

Hassell Jordan Hoskins

Absent Absent Yes

Motion carried.

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The LCDC Board entered into Executive Session at 4:50 p.m. Those present were the LCDC Board Commissioners, LCDC Executive Director Tony Berns, and CDA City Attorney Mike Gridley. Deliberations were conducted concerning the acquisition of an interest in real property which is not owned by a public agency. Motion by Hoskins, seconded by Colwell to adjourn the Executive Session. Motion carried. No action was taken in Executive Session and the LCDC Board returned to regular session at 5:40 p.m. 10. ADJOURN Motion by Elder, seconded by Hoskins to adjourn. Motion carried. The LCDC meeting adjourned at 5:41 p.m. Minutes prepared and submitted by Tony Berns.

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BOARD MEETING MINUTES WEDNESDAY

DECEMBER 16, 2009

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: Elder, Colwell, Davis, Nipp, Hoskins, Goodlander, Patzer, Jordan, Hassell 2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENT Guests Present: Tom Hasslinger, Matthew Beam, Vince Hughes, Dick Stauffer, Monte Miller, Chris Hollibaugh, Jim Brannon, Skip Fuller, Susie Snedaker No public comment was given. 4. APPROVAL OF MINUTES  November 18, 2009 Board Meeting Minutes Motion by Elder, seconded by Hoskins to approve the November 18, 2009 Board Meeting Minutes. Motion carried. 5. 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 November Lake and River District financial files, and the November account payables sheet, with the Board. Commissioner Patzer and Executive Director Berns provided additional input on the City of CDA’s final invoice payable for the Midtown placemaking

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project, and discussed the additional $20,000 charge to LCDC pertaining to the electrical conduit installation on 4th Street between Roosevelt and Boise Avenues. Motion by Hoskins, seconded by Goodlander, to approve the November accounts payables and the November financial packets for the Lake & River Districts as presented. Motion carried. KYRO Partnership Funding Request Please refer to the October 21, 2009 Board meeting minutes for background on this initiative. Commissioner Colwell shared that after considerable review, the Finance Committee recommends that LCDC partner with the KYRO organization on the public parking element of the proposed KYRO project in an amount ranging from $165,000 (75% of KYRO’s $221,411 funding request) to $200,000 (90% of KYRO’s $221,411 funding request) under the following conditions: The land asset supporting the proposed surface parking area will be transferred in ownership and title to the KYRO organization prior to issuance of any LCDC funds. The surface parking area will be public in nature, servicing as access to both the KYRO facility and the Centennial Trail. Therefore, the KYRO organization will agree to a recorded KYRO/LCDC “Parking Use & Access Agreement” (similar to the LCDC/Kroc Center agreement) pertaining to the surface parking area. During each year’s operational season, the KYRO organization will provide to the public a minimum number of hours (value to be determined at a later date) of free ice skating time per week, with said free skate times available throughout the week. KYRO will agree to an LCDC reimbursement provision wherein KYRO will agree to reimburse LCDC for a portion of LCDC’s parking area investment should KYRO operations cease prior to 2027, and/or a change in the facility’s functionality occur prior to 2027. The yet to be developed reimbursement provision will be structured on a sliding reimbursement scale (i.e. the potential reimbursement to LCDC will be less in 2020 than in 2015).  Commissioner Jordan asked if the proposed parking agreement should run with the land? Commissioner Davis responded that yes, the agreement should run with the land perpetually, and that language could be inserted into the agreement regarding some form of relinquishment provision, allowing for reimbursement to the LCDC should the parking use cease in the future.

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 Commissioner Patzer shared that the potential LCDC investment in this project needs to be clearly aligned with public benefits. The public benefits need to be very clear. Commissioner Patzer would still like the Centennial Trail Foundation to help better quantify the potential usage of the proposed trail head. The proposed free ice time to the public is also very important to clearly define.  Commissioner Elder thinks Commissioner Patzer’s concerns are very valid, and would like to move forward with the KYRO organization on negotiating an agreement.  Commissioner Goodlander shared that she knows of only four ice rink venues in the state of Idaho. She believers supporting the KYRO initiative is appropriate for LCDC, and favors partipcating at the proposed $200,000 level if all of the conditions can be worked out. Motion by Goodlander, seconded by Elder, to continue discussions with the KYRO organization, targeting for now an LCDC participation funding level in the $200,000 range pertinent to the proposed KYRO public parking lot project element, contingent upon successful negotiations involving the aforementioned conditions. Discussion re. the motion:  Commissioner Patzer would like to hear further input from the public on this issue. For example, what does the cycling and trail user communities think of the proposed LCDC/KYRO partnership?  Commissioner Davis recalled that Charlie Miller, Executive Director of the North Idaho Centennial Trail Foundation (NICTF), shared his organization’s support for the KYRO proposal, and that NICTF sees great value in increasing access venues to the CDA trail system.  Commissioner Elder would like to see a more finalized design of the KYRO facility and parking area prior to a final funding recommendation.  Commissioner Hassell shared that the new transit center at Riverstone will also be providing additional public parking capacity adjacent to the Centennial trail system. Motion carried. Recusal – Commissioner Nipp recused himself from the vote on the motion, and did not participate in the Board’s discussion involving the KYRO initiative.

The LCDC Finance Committee will continue to work with the KYRO organization on the issues discussed, and will provide an update to the Board at the January Board meeting. LCDC Meeting Minutes

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

Housing Committee – Commissioner Jim Elder North Idaho Housing Coalition (NIHC) Request Background: in March, 2009, NIHC approached LCDC proposing that LCDC partner with NIHC to develop workforce housing within the two LCDC Districts via two proposed partnership venues: 1) a Community Land Trust Program, and 2) a Shared Equity Program. Since March, LCDC legal counsel has been reviewing the latitude LCDC possesses under current Idaho statutes to partner with a non-profit entity such as NIHC via the two proposed partnership venues. Housing Committee Chair Jim Elder and Commissioner Davis reviewed with the Board a letter written by LCDC legal counsel Ryan Armbruster to the NIHC organization. In the letter, Mr. Armbruster states that current Idaho statutes do not permit urban renewal agencies, like the LCDC, to participate with non-profit organizations in programs as proposed by NIHC. Following are excerpts from Mr. Armbruster’s letter to NIHC central to his counsel to the LCDC Board: It is our understanding that North Idaho Housing Coalition is a 501(c)(3) non-profit organization. Even so, using tax increment funds1 for such programs, and donating such funds to NIHC, as opposed to federal funds (such as Community Development Block Grants, stimulus money or perhaps non-property tax funds) potentially violates the Idaho Constitution. Urban renewal agencies are constitutionally required to expend tax funds for public, as opposed to private, benefit. As there is no Idaho Supreme Court case specifically on this issue, a court might concur with the use of these funds if LCDC can demonstrate it is providing a primary public benefit by funding these housing purchase assistance programs and the benefit to the private homeowner is ancillary or merely incidental of the primary public benefit. In that instance, there may be no constitutional violation. Some support for this position may be found in the case Hansen v. Kootenai County, but the case did not deal with urban renewal agencies and seemed to contradict clear precedent holding that providing any benefit to private interests by a political subdivision from public funds, no matter if there was a public benefit as well, would violate the Idaho Constitution. Idaho Code Chapter 19, Title 50 specifically notes, for purposes of that statute, “the providing of safe and sanitary dwelling accommodations for persons of low income are public uses and purposes for which public money may be spent and private property acquired and are governmental functions.” I.C. § 50-1902(c). “Persons of low income” is defined as those who cannot afford decent, safe and sanitary housing without assistance. I.C. § 50-1903(i). The Housing Authorities and Cooperation Law does not mention or define “workforce housing.” NIHC provides assistance to 1

Tax increment funds is the common reference to taxes generated by increases in assessed values of property within a revenue allocation area. The Local Economic Development Act (the “Act”), Chapter 29, Title 50, uses the term revenue allocation. In this letter, the terms may be used interchangeably. Regardless of the reference, the funds are tax dollars generated through Idaho’s property tax system.

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persons seeking workforce housing. I.C. § 50-1902 provides some support for the argument providing workforce housing promotes a public purpose. However, the Idaho Legislature has only found providing housing to low income persons to be a public purpose. See I.C. §§ 67-6201(a) and (b); 67-6205(j); 67-6206. No Idaho Court has considered whether or not providing housing assistance to moderate income families constitutes a public purpose. The most recent pronouncement by the Idaho Supreme Court concerning an urban renewal agency is found in Rexburg v. Hart, decided on November 26, 2009. Though the Supreme Court reaffirmed an agency’s authority to issue long term debt and generally addressed issues related to Art. 8, § 3 and Art. 8, § 4 of the Idaho Constitution, the precise point of assisting a non-profit corporation (as opposed to a public entity) for the purpose of workforce housing was not at issue and remains unresolved. Although LCDC recognizes the valuable contributions made by North Idaho Housing Coalition, LCDC must decline the request for participation in the non-profit organization’s programs. Upon review of the applicable law, it is our belief that LCDC’s participation in such programs could be a violation of Art. 8, § 4 of the Idaho Constitution which provides that no political subdivision shall lend or pledge the credit of the subdivision in the aid of “any individual, association, or corporation, for any amount or for any purpose whatever . . . .” Case law handed down by the Idaho Supreme Court has not made a distinction between the aid rendered to for profit private corporations as opposed to non-profit organizations such as North Idaho Housing Coalition or concluded providing the type of housing assistance proposed constitutes a public purpose which would not trigger the application of Art. 8, § 4.

LCDC Board members commented how valuable NIHC’s efforts are to the community, and despite LCDC’s ability to help, hope that NIHC continues to excel in bringing affordable housing programs to the community. Motion by Jordan, seconded by Hassell, to send Mr. Armbruster’s letter to the North Idaho Housing Coalition (NIHC) in care of Lori Isenberg, NIHC’s Executive Director. Motion carried. 

Parking Committee – Commissioner Jim Elder Parking Committee Chair Jim Elder, who also serves as a member (and LCDC liaison) on the City’s Parking Commission, shared that the downtown parking audit work discussed last month is still on deck for implementation in 2010. The proposed audit work, to be performed by Diamond Parking, is a followup to the original parking audit work performed by Rich and Associates in the summer of 2007. The current audit work is designed to further validate the parking needs for downtown and to help determine the eventual timing for a downtown structured parking facility.

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

Communication Committee – Commissioner Dave Patzer Communication Committee Chair Dave Patzer shared the following Committee update with the Board: Midtown Association Meeting Commissioner Patzer shared that a meeting was held with interested Midtown stakeholders regarding the possible formation of a Midtown Association, similar to the Downtown Association. Mayor Bloem, Councilman Kennedy, Terry Cooper (Downtown Association) and Tony Berns (LCDC) participated in the meeting. There is a core group of Midtown stakeholders who want to further explore the feasibility of an association for Midtown. A follow-up meeting is planned for January. Commissioner Patzer also shared that he has been contacted by individuals interested in utilizing the LCDC lots on 4th Street for possible Midtown event venues during the summer season of 2010. Midtown Placemaking Project – Funding of a Portion of Dennis Spencer Midtown’s Project Advocacy Role Background: Commissioner Patzer shared that at the October 21, 2009 Board meeting, the LCDC Board was asked by Kevin Stevens, President of Safco Construction, if LCDC would consider helping to defray some of the costs incurred by Safco in the hiring of Dennis Spencer as the “project advocate” for the Midtown project. Safco budgeted 360 hours for Mr. Spencer, with Mr. Spencer actually logging 428 hours on the project. Mr. Stevens asked if LCDC would be willing to possibly pay the cost associated with the extra 68 hours logged by Mr. Spencer at his contract rate of $40/hour ($2,720 in total)? At the October 21st meeting, the Board shared that as the project wraps up, LCDC will look to see what level of project contingency funding remains that could possibly be used to address Mr. Spencer’s Safco contract overrun hours. Commissioner Patzer reviewed the background of Dennis Spencer’s role in Midtown and the related funding request from the Safco organization. Commissioner Patzer also shared that as discussed earlier, LCDC realized $0 in remaining funds from the Midtown funding commitment, and was actually billed an extra $20,000 by the City to help defray costs associated with the electrical conduit installation. Commissioner Patzer asked his fellow Board commissioners for their input on this Safco funding request.  Commissioner Hoskins shared that he felt it was a great idea to hire Mr. Spencer for his advocacy role in Midtown, and supports LCDC committing the requested funds to Safco. Having Mr. Spencer on site helped the project immensely.

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 Commissioner Colwell shared that he felt Safco did an excellent job in Midtown, were very good to work with, and supports Safco’s request for the extra funding for Mr. Spencer’s role in Midtown.  Commissioner Elder agreed with Commissioner Colwell, and heard nothing but good reports regarding Mr. Spencer’s performance in Midtown. Mr. Spencer’s advocacy role saved huge amounts of time for both LCDC and City staff.  Commissioner Hassell proposed possibility paying half of the requested amount, basically splitting the overrun costs with Safco.  Commissioner Davis reminded the Board that LCDC had considered early in the Midtown project planning stages of hiring a person like Mr. Spencer for a project advocacy role. LCDC did not have to pursue this issue because the Safco organization also saw similar value and proactively hired Mr. Spencer for the advocacy role. Commissioner Davis supports the Safco funding request of LCDC.  Commissioner Patzer agreed with Commissioner Davis in that LCDC saw the value of such a person early on, and acknowledged the value added by Mr. Spencer’s presence throughout the project’s course. Motion by Elder, seconded by Hoskins authorizing $2,720 in LCDC funds payable to the Safco Construction firm as reimbursement for a portion of the hours paid for Dennis Spencer’s “project advocate” role in Midtown during the 4th Street reconstruction project, subject to validation of Safco payment records involving Mr. Spencer’s total contract disbursements. Motion carried. 6. RESOLUTION NO. 10-02: PARKSIDE IMPROVEMENT REIMBURSEMENT AGREEMENT (IRA) Executive Director Berns provided the Board an overview of the Parkside IRA, sharing the history of the project and the rationale for the proposed LCDC funding of certain public improvements associated with the project: Fall, 2006: Parkside developer application package was submitted to LCDC requesting funding for certain proposed project-related public improvements totaling $2,829,000. February 21, 2007: LCDC Board agreed to partner in the costs of certain proposed project-related public improvements totaling $820,000. Below is a brief summary of the proposed LCDC Parkside IRA funding for the specified public improvements.

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Item Site Remediation Asbestos Abatement Building Demolition Curb/Walk Removal Tenant Relocation Sewer, Water Terminations (12) sub-total

Total Project Cost

LCDC Share $$

LCDC Share

$ 27,000 $ 80,000 $ 15,000 $ 142,000 $ 18,000 $ 282,000

$ 27,000 $ 80,000 $ 15,000 $142,000 $ 18,000 $282,000

100% 100% 100% 100% 100% 100%

R-O-W Improvements Water Line Extension Asphalt Alley Overlay Curb/Walk Bulb Outs, Pavers, Grates Overhead Utility Relocation Landsc., Irrig., Furn., Lighting, Power Artwork (Banners/Rigging) sub-total

$ 5,000 $ 30,000 $ 60,000 $ 250,000 $ 100,000 $ 12,000 $ 457,000

$ 5,000 $ 30,000 $ 60,000 $250,000 $100,000 $ 12,000 $457,000

100% 100% 100% 100% 100% 100% 100%

Subterranean Parking Public Plaza* Green Roof sub-total

$1,300,000 $ 450,000 $ 340,000 $2,090,000

$ $ 81,000 $ $ 81,000

0% 18% 0% 4%

Total

2,829,000

$820,000

29%

Construction

* $81,000 = public accessible water feature

December 31, 2008: City issued Certificate of Occupancy for the Parkside project. May, 2009: Welch-Comer Engineering engaged as a third party entity to conduct a cost validation analysis pertaining to the LCDC agreed-to public improvements. November, 2009: Welch-Comer cost validation analysis completed. December, 2009: Parkside IRA on Board agenda for review/approval. Executive Director Berns shared that the $820,000 in reimbursement funding for the Parkside public improvements will be derived only from tax increment revenue proceeds (i.e. property taxes) generated by the Parkside project itself â&#x20AC;&#x201C; i.e. no other LCDC revenue resources will be utilized to pay for the aforementioned Parkside public improvements. The Parkside IRA represents a self-funding project

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reimbursement model that is totally risk free for the taxpayer; i.e. if the Parkside project itself does not generate sufficient property taxes to repay the $820,000 in LCDC approved public improvements, then no other public funds will be used to repay the costs for said public improvements â&#x20AC;&#x201C; the developer would then bear the burden for the funds invested. Executive Director Berns shared that a third party cost validation analysis was performed by Larry Comer of Welch-Comer Engineering. The Welch-Comer analysis validated that all of the specified Parkside public improvements were installed, and that documented project records validated that over $820,000 was spent on the aforementioned LCDC approved Parkside public improvements. Mr. Comerâ&#x20AC;&#x2122;s cover letter to the LCDC Board regarding the cost validation analysis follows:

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Board members asked a few clarifying questions of Executive Director Berns regarding the Parkside IRA document. Motion by Elder, seconded by Goodlander approving Resolution 10-02, authorizing the Parkside Improvement Reimbursement Agreement (IRA) as drafted and presented. Roll Call: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Yes Davis Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. 7. EXECUTIVE DIRECTOR’S REPORT LCDC Executive Director Berns discussed operational issues and updated the Board on LCDC initiatives: Local LCDC Legal Counsel Please refer to the October 21, 2009 & November 18, 2009 Board meeting minutes for background on this initiative. Ex. Director Berns shared that on December 3, 2009, the ad hoc team (Commissioners Davis, Elder, Hassell, Hoskins) formed by the Board in October to shepherd the local legal counsel initiative, interviewed the following two individuals for the LCDC local legal counsel contract position:  Randy Adams of the Quane-Smith LLP Law Firm (CDA Office)  Danielle Quade of the Hawley-Troxell Law Firm (CDA Office) Commissioner Davis shared that both candidates interviewed very well and brought substantive skill sets to the table. The ad hoc committee took into account that the Hawley-Troxell law firm brings a deeper bench of municipal law talent to the position, and that Danielle Quade (and other Hawley-Troxell legal counsel) has also worked with LCDC and LCDC special legal counsel Ryan Armbruster in the past. Following deliberations, the ad hoc committee recommends that the LCDC Board engage Danielle Quade of Hawley-Troxell as LCDC’s local legal counsel.  Commissioner Patzer asked what contract rate Mrs. Quade will charge LCDC? Commissioner Davis shared that the rate will need to be negotiated, but will be less than the discounted rate of $165/hour currently billed by LCDC special legal counsel Ryan Armbruster.

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 Commissioner Patzer asked what type of work will be provided LCDC by Mrs. Quade? Commissioner Davis shared that Mrs. Quade will attend all LCDC Board meetings, and will offer her insight on general municipal law issues, potential conflict of interest issues, procedural issues, etc. LCDC special legal counsel Ryan Armbruster will still perform most of the LCDC contractual document preparation, and that Mr. Armbruster will have the latitude to advise that certain LCDC legal tasks be delegated to Mrs. Quade.  Commissioner Patzer commented that the LCDC local legal counsel initiative was initiated because the economics of having Boise-based LCDC special legal counsel Ryan Armbruster attend LCDC Board meetings on a regular basis were not practical. The Board decided it made better fiscal / operational sense to engage a local attorney to assist LCDC at Board meetings.  Commissioner Patzer, for audience clarification purposes, asked why local attorney and Board Commissioner Denny Davis does not serve LCDC in a counselor role? Commissioner Davis shared that the LCDC needs and independent person in the local legal counsel role, and that he serves the LCDC as a policy maker; not a lawyer.  Commissioner Patzer asked what if Mrs. Quade relocates away from Coeur d’Alene? Commissioner Davis shared that the LCDC local legal counsel agreement will be with the Hawley-Troxell firm, and not with just one individual in that firm. Motion by Patzer, seconded by Hassell, approving the selection of Danielle Quade of the Hawley-Troxell law firm as LCDC’s local legal counsel, and directing Executive Director Berns to develop and execute the necessary contractual agreements for the engagement of Mrs. Quade as LCDC local legal counsel. Motion carried. Recusal – Commissioner Colwell recused himself from the discussion and voting on the motion because his employer sometimes does business with the Hawley-Troxell law firm.

Annual Board Member Disclosure Letters Executive Director Berns collected the 2009 LCDC Board member annual disclosure letters. The submitted letters disclose any Board member “personal interest, property or contract” associated with any LCDC projects, and disclose any real property ownership within an LCDC urban renewal district. 8. PUBLIC COMMENT No public comment

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9. EXECUTIVE SESSION â&#x20AC;&#x201C; Idaho Code Section 67-2345(1) Subsection C: acquiring an interest in real property not owned by a public agency. Motion by Goodlander, seconded by Hassell 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: Nipp Yes Colwell Yes Elder Yes

Goodlander Yes Patzer Yes Davis Yes

Hassell Jordan Hoskins

Yes Yes Yes

Motion carried. The LCDC Board entered into Executive Session at 5:15 p.m. Those present were the LCDC Board of Commissioners and LCDC Executive Director Tony Berns. Deliberations were conducted concerning the acquisition of an interest in real property which is not owned by a public agency. Motion by Colwell, seconded by Hoskins to adjourn the Executive Session. Motion carried. No action was taken in Executive Session and the LCDC Board returned to regular session at 6:15 p.m. 10. ADJOURN Motion by Patzer, seconded by Colwell to adjourn. Motion carried. The LCDC Board meeting adjourned at 6:16 p.m. Minutes prepared and submitted by Tony Berns.

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