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City Council Meeting Minutes 1 680 Park Avenue Idaho Falls, ID Thursday, September 24, 2026 6:30 PM City Council Chambers 1. Mayor Burtenshaw called the meeting to Order at 6:30 PM Present: Mayor Lisa Burtenshaw Council President Jim Francis Councilor Michelle Ziel-Dingman Councilor Jim Freeman Councilor Kirk Larsen Councilor Brandon Lee Councilor John Radford Also present: Brad Cramer, Perspective Planning (via Teams) Megan Conrad, Elam & Burke Tyson Fitzgerald, Developer Darin Jones, Human Resources Director Chris Fredericksen, IF Power GM Chris Canfield, PW Director Wade Sanner, CDS Director Mark Hagedorn, Finance Director/Treasurer Bryce Johnson, Police Chief Linda Lundquist, City Clerk Jacob Beck, Assistant City Attorney 2. Pledge of Allegiance Councilor Radford led those present in the Pledge of Allegiance. 3. Staff Responses to Prior Public Comment and Other Updates Director Jones - City Policy 300: Discrimination and Harassment: • Reiterated that the City maintains a zero-tolerance policy for unlawful discrimination, harassment, and disruptive behavior in the workplace and in interactions with the public. • Confirmed protections for all legally protected classes, including race, religion, gender, sexual orientation, gender identity, national origin, age, disability, and veteran status. • Emphasized that employees who report concerns, serve as witnesses, or participate in complaints are protected from retaliation. • All employees must complete interactive, 60-minute respectful workplace training through the Idaho Counties Risk Management Program (ICRMP) upon hire and annually thereafter, covering employee rights, civility, harassment, discrimination, and retaliation. • Employees may report concerns to supervisors, department directors, Human Resources, or the City Attorney. All reports are documented and reviewed. • Supervisors first attempt to resolve concerns directly. When necessary, Human Resources or the City Attorney's Office conducts a thorough review. Substantiated violations may result in disciplinary action, up to and including termination. Council clarification: Mayor Burtenshaw explained that the response was provided to clarify the City's existing policy and annual training requirements in light of comments received by Council. City Council Meeting Minutes 2 680 Park Avenue Idaho Falls, ID 4. Public Comment A. Mosy Moran, Idaho Falls Resident • Shared personal experiences with racism dating back to elementary school and continuing throughout his life, including after moving to Idaho Falls. • Reported experiencing racist comments and harassment on a daily basis, both in person and online, including racial slurs and derogatory remarks. • Stated that racism affects both Black and Hispanic residents and that he frequently hears negative comments about Hispanic people. • Expressed frustration that his accomplishments and community involvement are often overshadowed by his race. He emphasized his love for Idaho Falls, where he raised his children and operates a business. • Reported having screenshots involving City employees and racist comments, and stated that he was not aware of any action taken regarding the concerns. • Request: Asked the City to make a public statement, including on Facebook, explicitly stating that racism is wrong and that Idaho Falls leadership does not support racist attitudes. He emphasized that he was seeking public acknowledgment and validation rather than policy changes or disciplinary action. B. Drew Satterthwaite, Idaho Falls Resident, Stronger Idaho Falls • Addressed the proposed rescission of the Planned Unit Development (PUD) ordinance. • Explained that PUDs are a valuable development tool throughout Idaho, allowing developers to pursue creative projects that may not fit existing zoning requirements. • Emphasized the importance of retaining development flexibility while ensuring projects meet the City's needs. • Request: Encouraged Council to establish an alternative before rescinding the ordinance or consider revising the existing PUD ordinance to better meet Idaho Falls' needs. C. Chris, Ammon Resident • Expressed concerns about Flock cameras and other automated license plate readers, stating that they create databases tracking the movements of innocent residents. • Questioned who operates and controls the cameras, what information is collected, and whether residents' movements are being tracked. • Reported contacting the City of Ammon, Bonneville County Sheriff's Office, and Bonneville County but said he had not received clear answers about responsibility. • Acknowledged that kidnapping investigations were cited as a benefit but questioned the broader value of the system. • Request: Asked Council to remove Flock cameras and, if the City does not control them, use its influence with Bonneville County to have them removed. D. Jim Harlinger, Rexburg Resident • Supported amending rather than rescinding the PUD ordinance. • Stated that the concerns raised during the Council's work session and August discussions could be addressed through specific code amendments. • Identified blighted or otherwise undevelopable properties as situations where PUDs can provide a useful development option. • Suggested that issues involving private streets, parking, and fire access could be addressed through targeted amendments, potentially requiring only minor changes to the code. • Request: Asked Council to consider amending the ordinance rather than eliminating the PUD process entirely. City Council Meeting Minutes 3 680 Park Avenue Idaho Falls, ID E. Terri Ireland, Idaho Falls Downtown Merchants Association • Addressed concerns regarding the relationship between Idaho Falls Downtown Development Corporation (IFDDC) and downtown merchants, stating that communication and cooperation problems have persisted throughout her 10–11 years as a downtown merchant. • Explained that merchants' previously limited engagement with IFDDC shifted to strong opposition following proposed parking changes approximately one year earlier. • Reported that downtown merchants increasingly do not want to work with or communicate with the IFDDC. • Stated that recent property tax increases have also contributed to merchants' reluctance to renew the Business Improvement District (BID). • Request: Asked Council to consider merchants' concerns when deciding whether to renew the IFDDC management plan and emphasized the need for immediate discussions among all stakeholders. F. Melissa, Idaho Falls Resident and Downtown Merchant • Presented concerns from an email previously sent to Council regarding IFDDC’s relationship with existing downtown businesses. • Downtown events and traffic: Stated that Saturday events, street closures, parking restrictions, and congestion interfere with customer access during a retail day. Asked how merchants' financial impacts are considered and how much input they receive before event plans are finalized. • Alley dumpsters and garbage fees: Requested clarification on why merchants pay for separate dumpster service while also paying for garbage through City utility bills, what each charge covers, who sets the additional fee, and whether participation is mandatory. • Downtown events and parking: Cited recent events, including a jazz festival and Oktoberfest, that affected parking in front of her business. Reported concerns about app-based metered parking, including elderly visitors struggling to use the app and worrying about whether their payments were recorded or whether they might be towed. • Communication and representation: Stated that merchants primarily receive notifications after decisions have already been made, with little opportunity to provide input. Expressed that she does not feel IFDDC advocates for existing merchants. • Referenced concerns from other downtown business owners, including one who reportedly experienced a 177% increase in the business improvement district tax for the following year. • Request: Asked for a written response addressing merchant consultation, dumpster charges, the economic impact of downtown events, the status of metered parking and merchant opposition, and the services and advocacy IFDDC provides to existing businesses. G. James Foster, Idaho Falls Resident • Expressed concerns about the City's Flock automated license plate reader program, arguing that it continuously collects information on vehicles belonging to people who have committed no wrongdoing. • Thanked Council for its July unanimous vote prohibiting Flock from training its artificial intelligence on local license plate data, but argued that additional safeguards are necessary. • Cited Idaho Code § 49-1432, arguing that license plate data should be limited to investigating crimes, traffic accidents, and missing persons rather than creating a permanent record of residents' movements. • Challenged comparisons between automated cameras and officers taking notes, arguing that cameras enable continuous collection and rapid searches across jurisdictions. City Council Meeting Minutes 4 680 Park Avenue Idaho Falls, ID • Raised concerns about documented misuse of license plate reader systems by law enforcement officers and the absence of published audits in Idaho Falls. • Acknowledged that Police Chief Johnson had identified locating people with warrants as a benefit and stated that his proposed safeguards would not prevent legitimate investigative searches. • Requests: o Require public quarterly audits identifying every search, the agency conducting it, and the stated reason. o Limit data retention to seven days and prohibit sharing with out-of-state or federal agencies without a signed warrant. o Require an annual City Council vote to renew the program. • Noted that the City operates 13 cameras, distinct from the nine operated by Bonneville County, and asked Council to establish accountability for the City's system. H. Matthew, Idaho Falls Resident • Opposed Flock cameras and other forms of mass surveillance, citing constitutional protections for privacy, liberty, and freedom of movement. • Argued that continuous surveillance of innocent people without warrants or probable cause raises Fourth Amendment concerns. • Expressed concern that government agencies could access collected information to build profiles of private citizens and that safeguards could be circumvented or abused. • Stated that he did not consent to Flock or other mass surveillance, nor to the use or sale of his personal data without his knowledge. • Request: Asked Council to discontinue the use of all Flock cameras and Flock-style mass surveillance within Idaho Falls. 5. Consent Agenda A. Fire Department 1. 26-337 Battery-Powered Extrication Equipment B. Finance 1. 26-357 Treasurer’s Report for May 2026 *Correction* C. Office of the City Clerk 1. 26-354 IFDDC Extension to Management Services Agreement -> moved to Regular Agenda 2. 26-355 August 2026 Licensing through the Office of the City Clerk a. 62 New Business Licenses b. 29 Renewed Business Licenses c. 26 Contractor Licenses Motion: Approve, accept, or receive all items on the Consent Agenda according to the recommendations presented. o Moved by: Councilor Dingman o Second: Councilor Radford o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. City Council Meeting Minutes 5 680 Park Avenue Idaho Falls, ID 6. Regular Agenda 5.c.1 - 26-354 - IFDDC Extension to Management Services Agreement (Moved from consent agenda) Discussion: • Mayor Burtenshaw explained that the IFDDC requested additional time to meet and develop proposals regarding its parking management and enforcement agreement, BID agreement, FY 2026–27 budget, and goals. • IFDDC's next Executive Board meeting is scheduled for October 1, 2026, followed by a full Board of Directors meeting on October 13, 2026. • The City proposed extending the existing management services agreement through October 31, 2026, rather than allowing it to lapse. The extension would allow IFDDC to continue legally performing its duties, including parking enforcement and issuing citations, while preparing its proposals. • Mayor Burtenshaw anticipated that IFDDC would present draft parking management and BID agreements at a future Council work session for discussion and consideration of a vote. • Councilors expressed concerns about downtown management, billing, and outstanding bills, and encouraged further review of IFDDC's operations and finances. • Council clarified that the extension applied only to the previous year's agreement for one additional month, not a renewal for another full year. • Council agreed that additional time was needed for both the City and IFDDC to work through the concerns outside the Council meeting and develop proposals for future consideration. Motion: Move to extend the IFDDC management agreement and authorize the Mayor and City Clerk to execute necessary documents, with the recommendation to work through issues that have arisen. o Moved by: Councilor Radford o Second: Councilor Francis o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. A. Public Works 1. 26-201 Service Agreement for Wastewater Collection and Treatment with the Iona Bonneville Sewer District (IBSD) Presentation/Discussion (Director Canfield): Staff presented a five-year agreement for wastewater collection and treatment services for the Iona Bonneville Sewer District. The agreement aligns with the City's current wastewater facility plan and includes incremental annual rate increases of approximately 5% to cover treatment facility costs. The agreement maintains the District's existing service area and addresses the possibility of IBSD transitioning to its own wastewater treatment facility in the future, with provisions intended to minimize impacts to the City. Council recognized Director Canfield's work to protect the City's interests and maintain a mutually beneficial agreement. City Council Meeting Minutes 6 680 Park Avenue Idaho Falls, ID Motion: Approve the Service Agreement for Wastewater Collection and Treatment with the Iona Bonneville Sewer District and give authorization for the Mayor and City Clerk to execute the necessary documents o Moved by: Councilor Dingman o Second: Councilor Larsen o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. B. Finance 1. 26-369 Professional Audit Services for Fiscal Year Ending September 30, 2026 Presentation/Discussion (Director Hagedorn): Staff requested approval of the final year of the City's three-year professional audit services agreement with Baker Tilly LLP, with an option to extend for an additional two years. The audit includes the City's annual financial report and internal controls, passenger facility charges, transit fund procedures, and a single audit of federal awards. The contract amount is $184,500 and covers two major federal programs. If an additional major program is identified, additional fees would require further approval. Motion: Approve the professional services contract with Baker Tilly, LLP, for professional audit services for an estimated amount of $ 184,500 and authorize the Mayor and City Clerk to sign the necessary documents o Moved by: Councilor Dingman o Second: Councilor Larsen o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. C. Idaho Falls Power 1. 26-369 IFP 26-24 Substation 72.5KV SF6 Breakers Purchase Presentation/Discussion (GM Fredericksen): Idaho Falls Power requested approval to purchase three 72.5KV SF6 substation breakers from Western Electric Alliance, the lowest responsible bidder, for $342,588. Four bids were received. The breakers will be installed at the Rack Substation as part of its reconstruction. Delivery is estimated at 55 to 65 weeks. Council discussed supply-chain improvements and the anticipated delivery timeline. Motion: Approve the purchase of three (3) SF6 dead-tank breakers for substations and award the bid to the lowest responsive, responsible bidder, Western Electric Alliance, in the amount of $342,588.00. o Moved by: Councilor Freeman o Second: Councilor Francis o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. City Council Meeting Minutes 7 680 Park Avenue Idaho Falls, ID 2. 26-349 Amendment to the Power Sales Agreement with Orchard Park Apartments Presentation/Discussion (GM Fredericksen): Staff presented an amendment to the existing power sales agreement with Orchard Park Apartments, part of Idaho Falls Power's net metering pilot project. The amendment incorporates recently approved rate and fee increases of approximately 5% to 9%, effective October 1, 2026. It also allows future rate adjustments to be incorporated into the agreement as part of the City's rate-setting process, eliminating the need to bring the agreement back to Council for annual amendments. Motion: Approve the amendment to the Power Sales Agreement with Orchard Park Energy and give authorization to the Mayor and City Clerk to execute the necessary documents. o Moved by: Councilor Freeman o Second: Councilor Francis o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. D. Office of the Mayor 1. 26-359 Ordinance Amending Title 4, Chapter 12, Section 7, Itinerant Merchant License Presentation/Discussion (City Clerk Lundquist): Staff proposed removing the licensing and bonding requirements for non-food itinerant merchants participating in City Parks and Recreation special events. The change is intended to reduce the financial burden on small vendors, simplify the licensing process, and allow event organizers greater flexibility when managing vendor lists and making last-minute substitutions. Vendors must be approved by Parks and Recreation and pay the applicable booth rental fees. Motion: Adopt the Ordinance amending Title 4, Chapter 12, Section 7 under a suspension of the rules requiring three complete readings, and request that it be read by title and published by summary. o Moved by: Councilor Freeman o Second: Councilor Francis o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. ORDINANCE 3678: AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, AMENDING TITLE 4, CHAPTER 12, SECTION 7 TO PROVIDE AN EXCEPTION TO THE ITINERANT MERCHANT LICENSE REQUIREMENT FOR SPECIAL EVENTS; PROVIDING FOR SEVERABILITY; CODIFICATION; PUBLICATION BY SUMMARY; AND ESTABLISHING EFFECTIVE DATE. 2. 26-360 Ordinance Amending Title 4, Chapter 15, Sections 5, 6 and 11, Public Transportation Operator License City Council Meeting Minutes 8 680 Park Avenue Idaho Falls, ID Presentation/Discussion (City Clerk Lundquist): Staff proposed changing public transportation operator licenses for taxi, Uber, and similar services from annual renewals to two-year licenses. The amendment also changes fingerprinting from every three years to each two-year application, aligns badge expiration dates with the actual license term, and provides for phasing in current license holders. Council requested clarification regarding the need for repeat fingerprinting and identified the need to amend the license-fee language to reflect the two-year licensing period. Motion: Adopt the Ordinance amending Title 4, Chapter 15, Sections 5, 6, and 11 under suspension of the rules requiring three complete readings and request that it be read by title with the amendment of sentence one in 4.15.6. o Moved by: Councilor Francis o Second: Councilor Freeman o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. ORDINANCE 3679: AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, AMENDING TITLE 4, CHAPTER 15, SECTIONS 5, 6, AND 11 TO CHANGE THE EXPIRATION DATE FOR PUBLIC TRANSPORTATION OPERATOR’S LICENSES FROM ONE TO TWO YEARS; REQUIRE A FULL SET OF FINGERPRINTS FOR EACH APPLICATION; PROVIDE FOR THE PHASING IN OF CURRENT LICENSE HOLDERS; AND PROVIDING THAT PHOTO IDENTIFICATION SHALL SERVE AS PROOF OF LICENSE; AND PROVIDING FOR SEVERABILITY; CODIFICATION; PUBLICATION BY SUMMARY; AND ESTABLISHING EFFECTIVE DATE. E. Community Development Services 1. 26-376 Provide staff direction regarding Planned Unit Development (PUD) from the Comprehensive Zoning Code Presentation/Discussion (Director Sanner, Mayor Burtenshaw, Council President Francis): • Council continued its discussion from the Monday work session regarding concerns with the existing PUD ordinance and whether to rescind, amend, or temporarily suspend it. • The October 5 Planning Commission meeting was scheduled to consider the proposed rescission and provide a recommendation to City Council. • Council generally expressed interest in retaining PUDs as a development tool while addressing concerns with the current ordinance, including private streets, setbacks, emergency access, streetscape design, and the interpretation of development standards. • Several Councilors expressed concern that rescinding the ordinance could leave the City without a PUD framework for an extended period while a replacement ordinance is City Council Meeting Minutes 9 680 Park Avenue Idaho Falls, ID developed. Others favored rescission as a way to move forward with a comprehensive rewrite. Key Discussion Points 1. Rescission, Moratorium, and Amendment Options • Council discussed three primary options: rescinding the ordinance, imposing a temporary moratorium, or leaving the ordinance in place while amendments are prepared. • A moratorium would require additional legal review. Legal counsel explained that emergency moratoriums are limited to 182 days and require evidence of imminent peril, while an interim moratorium involves a longer process and may last up to one year. • Council expressed concern about the legal ramifications of a moratorium, including potential impacts on applications already in process and vested development rights. • Some Councilors preferred exploring a moratorium or suspension before deciding whether to rescind the ordinance. Others noted that rescission and moratoriums could produce similar outcomes but with different legal requirements. • Council emphasized that PUDs should not be eliminated entirely and that the City should continue working toward a revised ordinance. 2. Proposed Ordinance Amendments • Staff indicated that certain amendments, including restrictions on varying setbacks and building heights, could be completed relatively quickly. • More extensive revisions involving private versus public streets would require coordination among Community Development Services, Public Works, and Fire Department staff. • Staff was reviewing PUD ordinances from other Idaho cities and offered to bring forward proposed issues and revisions based on Council's previous discussions. • Council emphasized the need for clearer communication between staff and Council regarding the purpose of PUD hearings and the City's expectations for development proposals. 3. Council's Role and the PUD Review Process • Council discussed its role as the land-use authority in quasi-judicial PUD hearings and the responsibility to independently evaluate whether proposals meet the intent of the ordinance. • Councilors expressed concern that staff presentations sometimes focus on whether applications meet the written code without adequately explaining potential conflicts, trade-offs, or conditions that could address community concerns. • Staff stated it was revising its reports and presentations to better explain negotiations with developers, the rationale behind design decisions, and potential conditions. City Council Meeting Minutes 10 680 Park Avenue Idaho Falls, ID • Legal counsel explained that Council may approve an application, deny it, approve it with legally supported conditions, or table it for additional fact-finding or reflection. • Tabling would allow staff to investigate specific concerns and return with additional information. Legal counsel recommended setting a definite date for reconsideration and cautioned against lengthy delays that could create legal concerns. • Council discussed the importance of resolving concerns earlier in the development process while recognizing the limitations on communications during quasi-judicial proceedings. 4. Development Standards and Community Concerns • Councilors raised concerns about private streets, street widths, emergency access, snow removal, public infrastructure, parking, garages, setbacks, and the overall appearance of developments. • Some Councilors questioned whether private streets and homeowners' association responsibilities adequately serve residents and the broader community. • Other Councilors emphasized that PUDs have produced successful developments and may provide housing opportunities at lower prices or rents. • Staff noted that Fire Department personnel had reviewed and approved existing projects' emergency-access provisions, including street-width and turning-radius requirements. Motion: Not rescinding the PUD Ordinance at this time and begin preparing amendments to the PUD Ordinance for consideration as soon as possible. o Moved by: Councilor Freeman o Second: Councilor Lee o Vote: Aye: Dingman, Freeman, Larsen, Lee. Nay: Radford, Francis. o Motion carries 4-2. 2. 25-352 Legislative Hearing for Consideration of an Ordinance approving the Urban Renewal Plan for the Willow Creek Urban Renewal Project Presentation/Discussion (Director Sanner, Mr. Cramer): Staff presented the proposed Willow Creek Urban Renewal Plan and Revenue Allocation Area, encompassing approximately 100 acres near the northwest corner of Holmes Avenue and Science Center Drive. The project anticipates more than $91 million in private investment across three phases and includes proposed public infrastructure improvements, including Aspen View Road, Alpine Ridge Road, and utility extensions. The plan identifies approximately $12 million in potential public projects and assumes 75% reimbursement to the developer through tax increment revenues, with remaining funds available for administrative costs and future projects. Staff reported that the plan is financially feasible under the assumptions presented, with projected developer City Council Meeting Minutes 11 680 Park Avenue Idaho Falls, ID reimbursement by 2042 under the conservative scenario and 2041 under the moderate scenario. Council discussed the revenue assumptions, statutory limitations, and potential benefits of improving access and infrastructure in the area. Motion: Approve the Ordinance approving the Urban Renewal Plan for the Willow Creek Urban Renewal Project and revenue allocation area under a suspension of the rules requiring three complete and separate readings and request that it be read by title and published by summary. o Moved by: Councilor Lee o Second: Councilor Francis o Vote: Aye: Francis, Dingman, Freeman, Larsen, Lee, Radford. Nay: none. o Motion carries 6-0. ORDINANCE 3680: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IDAHO FALLS, IDAHO, APPROVING THE URBAN RENEWAL PLAN FOR THE WILLOW CREEK URBAN RENEWAL PROJECT, WHICH PLAN INCLUDES REVENUE ALLOCATION FINANCING PROVISIONS; AUTHORIZING THE CITY CLERK TO TRANSMIT A COPY OF THIS ORDINANCE AND OTHER REQUIRED INFORMATION TO COUNTY AND STATE OFFICIALS AND THE AFFECTED TAXING ENTITIES; PROVIDING SEVERABILITY, CODIFICATION, AND PUBLICATION BY SUMMARY; PROVIDING FOR A WAIVER OF THE READING RULES; AND PROVIDING AN EFFECTIVE DATE. 7. Announcements • Oktoberfest: Oktoberfest events are taking place throughout the City this weekend. The event is designed to be family-friendly, with a different format and popular musical entertainment planned this year. • INL Tour: Mayor Burtenshaw reported that a majority of Tier One leaders and directors toured Idaho National Laboratory (INL). Several attendees had never visited the facility despite growing up locally or having family members who worked there. She praised staff for their thoughtful questions, enthusiasm, and engagement in learning about INL's work and its significance to Idaho Falls. • Greenbelt Maintenance: A community member expressed appreciation for Parks and Recreation's improvements to trees and brush along the Greenbelt pathways. Mayor Burtenshaw recognized the department's work and partnerships with local corporations and organizations that helped clear brush and improve the area. • Frontier Fields Recognition: Councilor Lee recognized Frontier Credit Union for its community partnership and contributions to Frontier Fields. The first varsity soccer match was held at the facility that day, following five to six years of community effort to bring the project to fruition. There being no further business, the meeting adjourned at 8:42 PM. /s/ Linda Lundquist_________________ /s/ Lisa Burtenshaw _____________ Linda Lundquist, City Clerk Lisa Burtenshaw, Mayor IDAHO FALLS REDEVELOPMENT AGENCY P.O. BOX 50220 IDAHO FALLS, IDAHO 83405-0220 MEMORANDUM To: Idaho Falls Planning and Zoning Commission From: Brad Cramer, Executive Director Date: July 24, 2026 Re: Proposed Willow Creek Urban Renewal Area Introduction In 2024, the Idaho Falls Redevelopment Agency (the Agency) began evaluating the creation of a new urban renewal area known as the Willow Creek Urban Renewal Area (Willow Creek Area). Following the procedures outlined in Idaho Code §50-200 and summarized in the attached process overview, the Agency approved a resolution on August 14, 2024, finding the area eligible for designation as an Urban Renewal Area (URA). The Idaho Falls City Council subsequently approved a resolution on September 27, 2024, confirming the area’s eligibility and authorizing preparation of an Urban Renewal Plan and Revenue Allocation Area. After completion of the draft plan and accompanying Economic Feasibility Study, the Agency approved the final plan on May 21, 2026. Before City Council consideration, Idaho Code §50-2008(b) requires that the plan be reviewed by the Idaho Falls Planning and Zoning Commission “for review and recommendations as to (the plan’s) conformity with the general plan for the development of the municipality as a whole.” Project Overview The Willow Creek Area encompasses approximately 100 acres, located generally north of Anderson Street, west of Holmes Avenue, and west and south of Highway 20. The property includes Light Manufacturing (LM), Highway Commercial (HC), and Limited Commercial (LC) zoning and is identified as part of the Industrial and General Urban Transects on the City’s Future Land Use Map. The edges of the area have existing small-scale, light industrial development. The central portion has remined vacant, largely due to shallow basalt. This is the primary factor contributing to eligibility as a URA. The costs of blasting, removal, and importing suitable fill material have discouraged investment. Other contributing factors include an inadequate street network, faulty lot layout, diversity of ownership, and unsafe conditions. These conditions have left the area in a state of economic under development and qualify it for urban renewal designation under Idaho Code §50-2018. A summary table of all qualifying conditions is attached to this report. Only one of the statutory criteria must be met for an area to be deemed eligible. Conformity with the Comprehensive Plan The City’s comprehensive plan, Imagine IF, includes both city-wide policies and neighborhood- specific goals. This section evaluates the Willow Creek Plan for consistency with those policies. City-Wide Policies Imagine IF describes each transect these areas found on the Future Land Use Map: Industrial “The Industrial Transect denotes areas set aside for all varieties of industrial operations, from manufacturing facilities and related warehousing and distribution to machine shops or greenhouses. These areas are generally near major roadways, with frontage on arterial roadways, and they may have railroad access.” General Urban “The General Urban Transect denotes residential areas with a mix of commercial and service uses convenient to residents. These areas contain a wide variety of housing types, generally including small single-units, duplexes, triplexes, fourplexes, courtyard apartments, bungalow courts, townhouses, multiplexes and live-work units. Lot sizes are smaller and more compact than suburban areas. These areas could also include parks, schools, churches and commercial services. These areas have highly connective street patterns, similar to the traditional grid-pattern that encourages bicycle and pedestrian usage. These areas should be near an existing or part of a new walkable center.” While zoning primarily dictates the types of uses that may occur, an Urban Renewal Area enables those uses by providing tools to facilitate development. The mix of zones that exist across the proposed URA are appropriate for the type of development contemplated in the comprehensive plan. Encouraging the development of the vacant parcels and redevelopment of the peripheral areas supports the comprehensive plan’s vision for a mixed-use area near a major intersection. Connectivity and Walkability The primary intersection in the Willow Creek Area is Anderson and Holmes. The comprehensive plan discusses the importance of implementing the Bonneville Metropolitan Planning Organization’s (BMPO) High Capacity Roadway Needs study. The study identifies Anderon and Holmes an intersection which functions appropriately today, but will deteriorate to a Level of Service (LOS) D by 2050. Because TIF revenues can be used for public projects such as street and intersection improvements, the URA can provide assistance towards projects which keep the intersection at an acceptable LOS, maintaining traffic flow at a key arterial intersection. The proposed plan also proposes to assist with construction of an internal roadway network, which improves overall connectivity in the area, especially between the Willow Creek Area and the existing industrial development to the west. Economic Development The plan also promotes urban renewal and tax increment financing (TIF) as tools for reinvestment in older or underutilized areas, particularly where infrastructure already exists. The Willow Creek Area includes roadways and utilities on the perimeter. It is an infill site that has seen development in the surrounding area but remained underdeveloped due to the challenging characteristics of area. Relevant economic development actions from page 101 of Imagine IF include: e Continue to collaborate with the Idaho Falls Redevelopment Agency to identify and promote redevelopment opportunities in older parts of the City. e Promote tax-increment financing as a primary tool for redevelopment. e Encourage development in areas already served by public utilities, or where extensions are least costly, through infill incentive programs. e Utilize local improvement districts (LIDs) and other financing tools to address identified infrastructure needs. Neighborhood-Specific Policies The Willow Creek Area lies within Area 4, which includes areas on the east side of the river including downtown and north to Fairway Estates. Urban renewal has recently been used in this area, including the Stanley Boge and Anderson Bush urban renewal districts. The Yellowstone Square urban renewal district is also located just to the east in Area 2. The Willow Creek Area also falls within an area that identified by a Community Health Assessment, which was a supporting study of the comprehensive plan, as a Tier 1, or least healthy, area of Idaho Falls. The assessment identified higher rents, lower incomes, and lower access to jobs. The comprehensive plan states, “This area also expressed repeated concerns about the need to continue efforts to redevelop and revitalize the City’s core and not just continue to expand outward. These revitalization efforts need to focus on diversifying the housing stock, improving walkability and increasing employment opportunities.” (pg. 171). The proposed housing in the Willow Creek Area, which is an infill site, and connections to employment centers and services support the goals of comprehensive plan for Area 4. One Imagine IF actions specific to Area 4 supports creation of the Willow Creek URA: e Explore TIF, LID and other grant and financing programs to focus on redevelopment of small neighborhood crossroads in more walkable areas, such as along Lindsey Blvd, or by Freeman Park. (p.173). The Willow Creek Plan advances the goals of the comprehensive plan by promoting infill development and enhancing bicycle and pedestrian connections to nearby commercial and residential areas. Conclusion and Recommended Action The proposed Willow Creek Urban Renewal Area aligns with the Imagine IF comprehensive plan by: e Promoting infill development over sprawl, e Utilizing urban renewal and TIF as strategic reinvestment tools, and e Advancing key connectivity infrastructure improvements. The Idaho Falls Redevelopment Agency respectfully requests that the Planning and Zoning Commission approve the resolution and forward the Willow Creek Urban Renewal Plan to the City Council for final adoption. Steps in Creating a New Urban Renewal Area and Revenue Allocation Area Steps in Creating a URA and Revenue Allocation Area If an urban renewal agency is in existence in in a community, the creation of an urban renewal area, including a revenue allocation area (required for use of tax increment financing), begins with an eligibility report for a designated area within the community. The central question for an eligibility report whether the study area has at least one of the statutory characteristics which | must be found to be considered eligible for urban renewal activities. These characteristics or criteria are: 1. The presence of a substantial number of deteriorated or deteriorating structures and deterioration of site [50-2018(9), 50-2903(8)(b) and (8)(c), and 50-2008(d)(4)(2)], Age or obsolescence [50-2018(8) and 50-2903(8)(a)], Predominance of defective or inadequate street layout [50-2018(9) and 50-2903(8)(b)], Outmoded street patterns [50-2008(d)(4)(2)], Need for correlation of area with other areas of municipality by streets and modern traffic requirements [50-2008(d)(4)(2)], Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; obsolete platting [50-2018(9), 50-2903(8)(b) and (8)(c)], and 50-2008(d)(4)(2)} Unsuitable topography [50-2008(d)(4)(2)], Insanitary or unsafe conditions [50-2018(9), 50-2903(8)(b)], Diversity of ownership [50-2018(9), 50-2903(8)(b) and (8)(c), and 50-2008(d)(4)(2)], 10. Tax or special assessment delinquency [50-2018(9), 50-2903(8)(b)], and 50-2008 (d)(4)(2)] 11. Defective or unusual conditions of title [50-2018(9), 50-2903(8)(b) and (8)(c), and 50- 2008(d)(4)(2)], 12. Existence of conditions which endanger life or property by fire and other causes [50- 2018(9), 50-2903(8)(b)], 13. Substantially impairs or arrests the sound growth of a municipality and is a menace to the public health, safety, morals or welfare [50-2018(9), 50-2903(8)(b) and 8(c)], 14. Conditions which retard development of the area [50-2008(d)(4)(2)], and 15. Results in economic underdevelopment of the area [50-2903(8)(b)] and economic disuse [50-2008(d)(4)(2)]. a wPwnds oe N If it is determined the Study Area has characteristics which meet one or more of the statutory criteria listed above, the Agency may accept the eligibility report and request its consideration by the governing body. No URA can be formed unless the City Council adopts a resolution finding the area under consideration is deteriorated or deteriorating due to such characteristics, the redevelopment of the area is necessary for the welfare of the residents, and the area is appropriate for an urban renewal project. The resolution approved by City Council authorizes the Agency to prepare a plan for the proposed urban renewal area. The urban renewal area plan is to include the following with specificity: 1. A statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the municipality; 2. A statement listing the kind, number, and location of all proposed public works or improvements within the revenue allocation area; 3. An economic feasibility study; 4. Adetailed list of estimated project costs; 5. A fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property on the revenue allocation area; 6. Adescription of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; 7. Atermination date for the plan and revenue allocation area as provided for in section 50- 2903(20), Idaho Code. In determining the termination date, the plan shall recognize that the agency shall receive allocation of revenues in the calendar year following the last year of the revenue allocation provision described in the urban renewal plan; 8. A description of the disposition or retention of any assets of the agency upon the termination date. Provided however, nothing herein shall prevent the agency from retaining assets or revenues generated from such assets as long as the agency shall have resources other than revenue allocation funds to operate and manage such assets; Once the plan is prepared and approved by the Agency, it is forwarded to the City Council. Prior to the public hearing before the City Council, the City Council forwards the plan to the City Planning and Zoning Commission for its determination that the plan conforms to the City’s comprehensive plan. At least thirty (30) days prior to the public hearing, a copy of the notice and plan is distributed to the taxing entities overlapping the boundaries of the proposed district. After receiving the recommendation of the commission, and after notice fully published, the public hearing is held. The City Council must approve an urban renewal plan, including revenue allocation financing provisions, by an ordinance. If the ordinance is adopted by the City Council, a copy of the ordinance with legal description of the Revenue Allocation Area (RAA) is distributed to all the overlapping taxing entities, county officials and the State Tax Commission. By state statute, following adoption of the ordinance, the RAA is effective January 1, of the year in which it is adopted. The RAA has a maximum life of twenty years under Idaho statutes. The urban renewal agency implements the plan adopted by the City Council. Eligibility Report Summary of Findings t CRITERION CRITERION CHARACTERISTICS SUPPORTING FINDING Substantial deterioration of No structures and site _ _ ; a oo There is not an internal public, developed street system . in the internal portion of the study area. Approximately Defective streety layout or Yes fifty acres is not served by a collector street or a local inadequate street layout . - : street system. There is no provision for vehicular or pedestrian traffic. ; 7 The central portion of the study area, approximately fifty acres, requires further subdivision to be developed at urban densities. Most of the developed portions of the study area adjacent to North Holmes and Anderson Faulty lot layout/obsolete Yes Street consist of metes and bounds parcels, many of _ platting which are combined into one ownership to have sufficient land to develop to modern commercial uses. A few of the existing unplatted properties are too narrow to be developed under today’s regulations or ; - today’s modern standards. Diversity of ownership Yes _ There are nineteen owners in roughly 80 acres. Unusual conditions of title No Tax delinquency _ No ; _ - _ 7 There is no public water or sewer system in the central portion of the study area. Nor is there a system to handle stormwater. The soil conditions for the western half of the study area present severe limitations for on- | site septic systems. The lack of public utility systems creates the potential for unsafe conditions. The : deterioration of the sidewalk in certain locations creates _ an unsafe condition. . There is no collector street to move traffic from the interior of the study to the adjacent arterial streets. There is no local street system in approximately 50 | acres to encourage and serve urban densities. = Basalt rock underlies the study area. Basalt, especially . Unsuitable topography Yes near the surface, substantially discourages urban _ development a . ' Although many of the buildings are over fifty years old, a site visit did not reveal a substantial number of Age or obsolescence Yes deteriorating buildings. The homes, of which a few are suffering from lack of maintenance, are nonconforming ' under the present zoning. — ; Access from fifty acres of the study area is not provided _ _ to the arterial streets and the community or region at | large by a collector street. No public local streets access | _ the majority of the study area. 7 a The widespread basalt rock has delayed the development of the study area. Over one half of the study area is underlain with basalt and substantially increases the costsofdevelopment. Unsafe conditions Yes Outmoded street patterns Yes Lack of correlation with Streets in municipality Yes Conditions which retard Y development of the area &s CRITERION Economic disuse or underdevelopment of the area Arrests or impairs the sound growth of the municipality CRITERION MET Yes CHARACTERISTICS SUPPORTING FINDING Development began in the study area prior to 1975. However, the presence of basalt, the lack of utilities, and the absence of an interior street system has meant __ the area has not developed at urban densities. The long-range plan of the City of Idaho Falls designates this area as general urban and industrial. Over half of the area is vacant, although the study area is adjacent to U.S. 20, a regional highway, and is served __ by two principal arterial streets.
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