TREMONTON CITY CORPORATION
REDEVELOPMENT AGENCY
APRIL 16, 2019

Board Members Present:
Roger Fridal, Chairman
Diana Doutre, Board Member
Lyle Holmgren, Board Member
Jeff Reese, Board Member
Bret Rohde, Board Member
Lyle Vance, Board Member—excused
Shawn Warnke, Executive Director
Linsey Nessen, Executive Secretary

Chairman Fridal called the Tremonton Redevelopment Agency Meeting to order at 8:11 p.m. The meeting was held in the City Council Meeting Room at 102 South Tremont Street, Tremonton, Utah. Those in attendance were Chairman Fridal, Board Members Doutre, Holmgren, Reese, and Rohde, Executive Director Warnke, and Executive Secretary Nessen. Also in attendance were Director Marc Christensen, Director Paul Fulgham (left 8:30 p.m.), and Chief Kurt Fertig.

1. Approval of agenda:

Motion by Board Member Reese to approve the April 16, 2019 agenda. Motion seconded by Board Member Rohde. Vote: Board Member Doutre – aye, Board Member Holmgren – aye, Board Member Reese – aye, Board Member Rohde – aye. Motion approved.

2. Approval of minutes – January 29, 2019

Motion by Board Member Reese to approve the minutes of January 29, 2019. Motion seconded by Board Member Doutre. Vote: Board Member Doutre – aye, Board Member Holmgren – aye, Board Member Reese – aye, Board Member Rohde – aye. Motion approved.

Chairman Fridal called a Public Hearing to order at 8:12 p.m. to amend The Redevelopment Agency of Tremonton City Annual Implementation Budget. There were three people in attendance.

3. Public Hearing

a. On consideration of amending the Budget entitled “The Redevelopment Agency of Tremonton City Annual Implementation Budget 2018-2019 for Tremonton West Liberty Foods EDA 172 and Fund 71 RDA District #2 – Downtown, for the period commencing July 1, 2018, and ending June 30, 2019.

Executive Director Warnke said it includes 600 West, as well as the acquisition and demolition of the homes in the Tremont Center. The reason we are including these in the RDA budget is because they are potentially eligible for the use of tax increment. Right now tax increment is being used to reimburse the developer. Over time as the taxable value grows and more investment occurs within that boundary, there will be more increment. The hope is that the City’s General Fund will be reimbursed for the contributions that it is making now by amending the budget and moving money from the General Fund ($500,000) into the RDA Fund.

There were no public comments. Chairman Fridal closed the Public Hearing at 8:14 p.m.

4. Presentation

a. Northern Utah Neighborhood Improvement Projects- Dave Schuster

Dave Schuster said this is our second phase of the rehibilitation program that we started six years ago. We just finished another 50 homes, 20 of them were in Tremonton, fixing roofs and siding for low income families. We get funding through a Federal Home Loan Bank in Iowa ($200,000), Tremonton City ($50,000), and Box Elder County ($50,000). On average we give the families $11,000 and if they stay in their home for five years, the money is forgiven. Of those 20 homes, 15 were seniors or people who are disabled. We would like to do another project so I need to start writing the grant. They are cutting us back from three years to two. We are trying to figure out how many homes we would like to do in Logan, Brigham City and Tremonton. So far we have done 40 homes in Tremonton. We have done a lot of good and feel good about it. Executive Director Warnke said Mr. Schuster has been great to work with—it feels like he is part of the City staff. This program does a lot of good and is not costing the City anything beyond a small contribution relative to the other funding sources that are participating.

5. New Business- Discussion

a. Discussion of Tremonton City Redevelopment Agency participating in a future phase of Northern Utah Neighborhood Improvement Projects

Executive Director Warnke said Mr. Schuster is preparing to submit the next grant and wants to make sure he can present that the City would participate in the program. We have plenty of RDA funds that are specific for this. Board Member Reese asked how we find these people or if they find us. Mr. Schuster said a little of both. Executive Director Warnke had families who needed help with their roof or had sewer issues. We had more of a problem in Tremonton because the older families thought I was not legit. Once they got the idea and were comfortable with it, it has taken off. Executive Director Warnke said Administrator Steve Bench do a great job. He and Mr. Schuster run the program and will move forward with this.

b. Discussion of draft Tentative Budget entitled “The Redevelopment Agency of Tremonton City Annual Implementation Budget 2019-2020 for RDA District #2 Fund – Downtown and Tremonton West Liberty Foods EDA 172” for the period commencing July 1, 2019 and ending June 30, 2020

6. New Business- Action

a. Discussion and consideration of adopting Resolution No. RDA 19-02 approving the amendment of the Budget entitled “The Redevelopment Agency of Tremonton City Annual Implementation Budget 2018-2019 for Tremonton West Liberty Foods EDA 172 and Fund 71 RDA District #2 – Downtown, for the period commencing July 1, 2018 and ending June 30, 2019.

Motion by Board Member Holmgren to adopt the resolution. Motion seconded by Board Member Rohde. Roll Call Vote: Board Member Doutre – aye, Board Member Holmgren – aye, Board Member Reese – aye, Board Member Rohde – aye. Motion approved.

b. Discussion and consideration of adopting Resolution No. RDA 19-03 approving the Second Restated Property Tax Increment Reimbursement Agreement between the Tremonton City Redevelopment Agency and Tremont Center, LLC for Infrastructure Improvements

Executive Director Warnke said I want the Board to know how we are structuring this deal. We have proposed that developer Micah Capener will sign the purchase agreement and the City will make the purchase of the homes and the full title to the property. Mr. Capener and his group will arrange for the homes to be demolished while we still own the property. At which point we will deed the property to Mr. Capener and his group. Within six years of deeding the property to them, they will be required to bury the canal and construct the secondary access. We have talked about the importance of good internal circulation, especially with housing in the back. If they do not do these things, they will be required to deed the property back to the City and the City can interrupt their tax increment. The City would start receiving increment to be reimbursed for the outlay cash that was used to purchase and demolish the homes. There is also money available to help with reengineering the secondary access. We have a financial path of $350,000, which is what the CDA budget estimated the acquisition and purchase of the three homes would cost. Board Member Doutre asked if Mr. Capener will cover the canal all the way. Mr. Capener said yes we want to bury it all, but it will depend if there is tax increment. We have committed to the west side of the new entrance. Executive Director Warnke said they would bury the canal from the existing location westward beyond the secondary access—to the end of the next phase (at the 6th West access point). If they develop a corner lot on 6th West, the lot frontage on the west side of the road would be buried to that phase subdivision line. There would still be some area unburied with no mechanism to require them to do so.

Executive Director Warnke said Mr. Capener has already submitted reimbursement. The RDA has documented and verified these as actual reimbursable expenses up to $900,000. They then discussed Mr. Capener’s cap. Mr. Capener said it is complicated. It is $2.34 million plus $234,000 the way it is now. We are subtracting $350,000 so it will be $1.884 million plus the $234,000 if we build the park, trees and secondary. Executive Director Warnke said once Mr. Capener hits the $1.89 million in expenses, then the tax increment shifts to the City for $350,000 reimbursement and then it splits increment 50/50 up to an additional $230,000. After which it is the City’s increment going forward. Mr. Capener said we had $30,000 the first year and the second year was $90,000, but we have accrued more than that in interest over that time period. Executive Director Warnke said the next increment is $95,000.

Motion by Board Member Rohde to pass the resolution as it was outlined in the agenda with the updates discussed. Motion seconded by Board Member Reese. Roll Call Vote: Board Member Doutre – aye, Board Member Holmgren – aye, Board Member Reese – aye, Board Member Rohde – aye. Motion approved.

7. CLOSED SESSIONS: No closed session was held at this time.

a. Strategy session to discuss the purchase of real property when public discussion of the transaction would disclose the appraisal or estimated value of the property under consideration or prevent the public body from completing the transaction on the best possible terms.

8. Adjournment

Motion by Board Member Rohde to adjourn the meeting. Motion seconded by Board Member Reese. Vote: Board Member Doutre – aye, Board Member Holmgren – aye, Board Member Reese – aye, Board Member Rohde – aye. Motion approved.

The meeting adjourned at 8:33 p.m.

The undersigned duly acting and appointed Executive Secretary for Tremonton City Corporation Redevelopment Agency hereby certifies that the foregoing is a true and correct copy of the minutes for the RDA Meeting held on the above referenced date. Minutes were prepared by Jessica Tanner.

Dated this 7th day day of May, 2019.

____________________________
Linsey Nessen, Executive Secretary