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Issues of annexation, equitable provision of services, and taxation are complex. The City’s relationship with Avimor is complex and quite long. Until May of this year, the City was actively working with Avimor to determine if annexation was possible and mutually beneficial through a reimbursement agreement. This contract covered the City’s costs to review Avimor planning documents and ask critical questions of Avimor. All work completed was exploratory and never guaranteed annexation by the City nor commitment by Avimor.
The contract stated: “This Agreement does not constitute approval of any application, development agreement or conceptual plans for the Property and all development approval will be in accordance with the notice and hearing procedures of Eagle City Code and Idaho State Statutes”, but also limited the City’s ability to seek outside consultation until a formal application was received “the City would not typically retain an outside Consultant (for example, but not limited to, a traffic engineer)”.
As of October 1, 2019, Avimor has never made a formal application for annexation to the City of Eagle. Below is a brief outline of the City’s and Avimor’s interactions in 2019.
On March 11, 2019, after nearly two years of reviewing Avimor materials, the City Council and the Avimor development team met to discuss the path forward. At that meeting the City provided Avimor a list of items to be addressed if Avimor wished to move forward and make and a formal application to the City:
Paragraph2.5: M3/Spring Valley Development Agreement Public Facilities
1-acre site w/utilities
Utilities to the site, up to $1M to fund improvements or provided increased service prior to development build out
1 High School
Sites size will meet district standards, utilities to the sites, funding to ensure architectural consistency
1 K-8 School
Library & Municipal Services
Utilities to the sites
While Avimor addressed portions of the City’s list, many items remained outstanding and unaddressed. To that end, in March the City offered 3 options to Avimor:
Paragraph 8 of the Reimbursement Agreement - Avimor Right to Terminate or Suspend states: “In the event that Avimor elects in its sole discretion to cease or suspend pursuing the Development Submittals or upon completion of the City’s processing of the Development Submittals, Avimor will notify the City in writing”. (emphasis added)
On May 28, 2019, the City received a letter from Dan Richter, Managing Partner of Avimor, formally severing the reimbursement agreement with the City, requesting reimbursement of the balance of the escrow account, and stating they were no longer actively pursuing annexation.