Redevelopment agency approves McNeil MOU, narrows study area to three hotel parcels

The Idaho Falls Redevelopment Agency on March 20 approved a memorandum of understanding (MOU) with McNeil Development LLC and directed staff to replace the MOU map with a refined study area that focuses on three northern parcels where a hotel project is planned.

The action, approved by roll call as Resolution 2025-03, follows a presentation from Lauren Walker of McNeil Development and about an hour of board discussion about phasing, eligibility and infrastructure needs. Walker told the board, “We have received a draft from Megan on the MOU . . . and we find the terms and conditions acceptable to us.”

The board discussed whether to study the entire area McNeil initially proposed or to limit the revenue-allocation study to the parcels the developer said are ready to move forward. Several commissioners raised concerns about timing, the 20-year statutory limit for urban renewal districts and whether peripheral infrastructure (roundabout, turn lanes) would be eligible for reimbursement under an urban renewal plan. Commissioner Lee Radford said taking projects in “smaller bites” can preserve the full 20‑year term for future parcels; Walker and other McNeil representatives said they wanted flexibility but were willing to work with a smaller footprint for the immediate hotel project.

Agency staff advised the board that an MOU does not guarantee eligibility or City Council approval and that the consultant study can be scoped to a smaller footprint. Megan Conrad (agency staff) said staff would replace the attached map in the MOU with a study area focused on the three parcels and “any adjacent property needed to support infrastructure needs necessitated by the project,” and directed the consultant accordingly.

Two board members disclosed potential conflicts and recused themselves from participating in the discussion and votes on the McNeil item; the remaining quorum moved the matter forward. The board then adopted Resolution 2025-03 authorizing the chair or vice chair to execute the MOU, subject to replacing the map to narrow the study area to the three northern parcels and related adjacent infrastructure areas.

What this means

- The MOU launches a consultant-led eligibility and financial-feasibility study limited to the three hotel parcels and adjacent areas needed to support any infrastructure the project requires. - If the study finds those parcels eligible, the agency and McNeil would then negotiate any subsequent grant/participation agreement and the City Council would still need to adopt an ordinance creating a revenue-allocation area.

Board members and staff emphasized that public infrastructure items outside the defined study area (for example larger roundabout work) may require separate evaluation: as Commissioner Christopher Harvey put it, “If we’re just doing the hotel, I don’t think we’ll be able to go over and do the big roundabout.”

Agency next steps

Staff will: (1) replace the MOU map to reflect the refined study area, (2) direct the consultant to prepare an eligibility/feasibility report scoped to the three parcels (and immediate supporting infrastructure), and (3) return the draft study and any proposed agreement for board consideration. The formal vote authorized the chair or vice chair to execute documents and permitted technical changes to the agreement prior to signature.

Quotes

“We find the terms and conditions acceptable to us,” — Lauren Walker, McNeil Development.

“I think you can move forward with adopting the MOU and providing that a new map is replaced focusing on the three parcels,” — Megan Conrad, agency staff.

Ending

The vote on the resolution was unanimous among voting members present after the recusals. The agency indicated it will also seek an executive director to help manage the district-creation process and will return with the consultant’s report and a draft agreement in advance of subsequent action.