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Agency agrees to use River Commons funds to reimburse Ball Ventures for site remediation, directs grant agreement
Summary
The agency agreed in principle to use available River Commons revenues to reimburse Ball Ventures for site remediation work—estimated in a submitted bid at roughly $2.5 million—and directed legal counsel to draft a grant/participation agreement setting reimbursement details and timing.
The Idaho Falls Redevelopment Agency on March 20 agreed in principle to use available revenues in the River Commons urban renewal district to reimburse Ball Ventures for site remediation work and directed legal counsel to prepare a grant participation agreement to memorialize reimbursement terms.
Megan Conrad (agency staff) summarized staff discussions and told the board that, after evaluating potential public projects in the district, staff and city departments concluded there were no other viable capital projects that could be completed in the district’s remaining life that would best use the funds. Brad Kramer (city staff) said the city’s planning and public-works review estimated roughly $3.5 million to $3.8 million in available revenues in River Commons between now and district closeout, and that the remediation request from Ball Ventures (a submitted bid) was approximately $2,500,000.
Brad Kramer said the city and developer reviewed alternatives—pathways, Milligan Road connections and other capital projects—but either those projects would not be completed within the urban renewal time frame or private funding was already in place. Kramer said the city preference expressed in staff meetings was to allow the remediation reimbursement rather than pursue small capital projects with limited added value.
Megan Conrad explained the next step would be a grant participation agreement that spells out specific reimbursement amounts, timing and priorities for revenue allocation. Conrad and other staff noted that revenue allocation proceeds are first pledged to repay existing obligations, then agency operations and other priorities; if revenues fall short, the full $2.5 million may not be payable in a single lump sum and reimbursement could be spread across future years.
Board action
A motion directing legal counsel to prepare a grant participation agreement with Ball Ventures and authorizing staff to continue negotiations passed unanimously. The motion directed staff to (1) prepare a draft agreement reflecting available revenues and repayment priorities and (2) return the draft agreement to the board for approval.
Key facts and figures
- Developer-provided remediation bid (approximate): $2,500,000. - Staff projection of River Commons available revenues before district closeout: $3,500,000–$3,800,000 (staff estimate). - Staff advised that existing pledged obligations and operations costs must be paid before reimbursements; reimbursement timing and amounts will be detailed in the forthcoming grant participation agreement.
Quotes
“There is an anticipated three and a half to $3,800,000 between now and the end of the district that could be spent,” — Brad Kramer, city staff.
“We will work with them on the grant participation agreement to figure out exactly what that looks like moving forward,” — Megan Conrad, agency staff.
Next steps
Legal counsel will draft a grant participation agreement that allocates available revenues to obligations and specifies the reimbursement schedule and maximum payable amount. Staff and the developer will then return the draft agreement to the board for formal approval at a future meeting.
