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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER COMPANY
Respondent.
Case No. IPC-04-Complainant
vs.
CITY OF EAGLE, IDAHO
EAGLE RIVER, LLC
Applicant for Intervention.
Direct Testimony of Charles Carlise
On Behalf of Eagle River, LLC
July 8, 2004
Please state your name and address.
My name is Charles Carlise. I am the Managing Partner
for the Eagle River Development located in Eagle , Idaho. The address is 485
East Riverside Drive, Eagle , Idaho 83616.
What is the purpose of your testimony in these
proceedings?
Eagle River is a premier mixed-use commercial
development located at the intersection of Eagle Road and State Highway 44.
If Idaho Power Company is permitted to construct the 138 kV transmission
line along State Highway 44 (the Eagle Bypass), the transmission line will be
directly adjacent to Eagle River s property and will cause substantial and
irreparable economic injury to our Development.
I am testifying to describe the impacts and detrimental effects that
Idaho Power Company s proposed transmission line will cause to Eagle
River, the City of Eagle, and the surrounding area. I am also testifying to
explain how Eagle River was developed in strict accordance with the City of
Eagle s Comprehensive Plan and the Development Agreement between the
City and Eagle River, and how, if Idaho Power Company s transmission line
is constructed as proposed, Eagle River s reliance upon the City of Eagle
development plan and the considerable costs incurred to satisfy the City of
Eagle s requirements will have been utterly wasted. Finally, I am testifying
to explain how Idaho Power Company failed to notify Eagle River of its plan
to construct the 138 k V transmission line and how Idaho Power Company
acted in bad faith when it agreed to bury one of its power lines along Eagle
Road to protect the aesthetic of our Development, while at the same time it
Carlise, Di
Eagle River, LLC
was planning to construct a larger transmission line along the entire mile of
our frontage along the Eagle Bypass. In sum , I am testifying to voice our
objection to the construction of the transmission line as proposed by Idaho
Power Company.
Would you describe the Eagle River Development.
The Eagle River Development is a unique high-end
commercial development located on the southeast corner of Eagle Road and
the Eagle Bypass. The Development, which is also known as Eagle River
consists of approximately 90 acres of land that is bounded on the south side
by the North Channel of the Boise River and on the north by the Eagle
Bypass.
The Eagle River Development began with a vision of creating a
premier mixed-use community that would take advantage of the natural
environment of its river front setting and tie in with the City of Eagle
development plan for a distinctive rural town setting. The Eagle River site
was specifically chosen for several reasons, including its river frontage and
natural aesthetics and its prime location within the City of Eagle, which in
and of itself is one of the most desirable locations within the Treasure Valley.
The site was also chosen because the property is located at the gateway to
Meridian, Emmett, Star, Horseshoe Bend and McCall.
In addition to the prime physical location of the property, we also
favored locating our development within the City of Eagle because of the
City s high standards for development. It has been our experience that
communities with high standards for development are better able to attract
quality businesses and a high-end demographic of customers and visitors
Carlise, Di
Eagle River, LLC
which in turn results in higher land values and a more profitable
development. The City of Eagle recognizes the important connection
between the enforcement of exacting development standards and resulting
heightened quality of development within a community, and it is one of the
reasons why Eagle River and its parent company tend to purchase and
develop in areas like Eagle.
Once we decided on the location for the Development, we then
began an extensive planning and design phase. That phase took years of
planning and thousands of hours of work and coordination with the City of
Eagle to ensure that the Eagle River Development would promote the
development objectives of the City. In order to create the caliber of
development that Eagle River has now become, more than $7.8 million
dollars has been spent. By way of illustration, Eagle River has invested the
following amounts in site improvements for the Development:
Engineering/ Archi tecturallP ermi $ 878 326.
388 631.Electric
Water/Gas Systems
Irrigation System/Canal Relocation
178 664.
844 402.
Roads 859 699.
438 178.Storm Drainage/Sanitary Sewer
Ponds/F ountains/W aterfalls 801 936.
506 685.Landsca ping/T re e s/L i ghting
Sidewalks/Bike Paths 119 322.
211 176.Traffic Signal Lighting
Carlise , Di
Eagle River, LLC
Taxes/Construction Management/LegallMisc.622.617.
$ 7 847 651.71TOT AL
At its full build out, the Development will consist of approximately
000 000 square feet of mixed-use commercial space, with the commercial
uses being distributed between an Office Building Component of
approximately 600 000 square feet, an Ambulatory Care Facility with
Medical Offices of approximately 90 000 square feet, a 144-room Hotel with
related meeting facilities totaling 135 000 square feet, and a Retail
Component of approximately 200 000 square feet.
The Retail Component is being developed along the western and
northern part of the property to take advantage of its exposure to Eagle Road
and the Eagle Bypass. This portion of the Development is designed as a
Lifestyle Retail Center" that will focus on up-scale tenants in a pleasing
setting in order to focus upon the high-end demographic market of Eagle.
currently planned, the Retail Component will have at least ten restaurants
with indoor and outdoor dining and at least twenty-five stores.
The Office Building Component when completed will consist of
approximately 600 000 square feet of a mix of one- and two-story, first class
professional and medical offices. The offices will be situated in a garden
setting with exposure to the Boise River, pond frontage , walking paths, bike
paths , beautiful roads , all which are landscaped with planted medians, mature
trees and flowers.
The remaining building area consists of the river front Hilton
Garden Inn. The Hilton currently has 99 rooms and is in the process of
completing the final building plans that will expand its capacity to a total of
Carlise, Di
Eagle River, LLC
144 rooms. The expansion will also include a convention meeting area that
will accommodate more than 600 people.
The development as a whole has a variety of amenities such as over
500 feet of Boise River frontage, a river front greenbelt, integrated
pathways and bike paths, six large ponds , three waterfall entry features
fountains and water features , mature landscaping, vintage street lighting
along all roads , and approximately 25% of its property dedicated to open
space. And significant to this case, all utilities have been buried , including
Eagle River s payment of more than $100 000 to Idaho Power Company to
bury its power line along Eagle Road.
All of this effort was made to make Eagle River an attractive, up-
scale commercial center within the City of Eagle, and I believe our efforts
have been a success. I have attached a copy of materials about Eagle River as
Exhibit 201.
What are some of the businesses currently located at
Eagle River?
Eagle River is still in the early stages of its development
with the full build out to be completed within the next ten years. To date
several sites have been sold and businesses constructed. Among the
businesses that are currently located in Eagle River include, Hilton Garden
Inn, Land Group, Wendy , Westmark Credit Union, Eagle River I , Bardenay
Restaurant, and the Riverside Office Building I.
The Eagle River Development is continuing to grow.
completed five sales transactions in 2003 and have fifteen scheduled for
2004. Several businesses will begin building construction within the next
Carlise , Di
Eagle River, LLC
year, including St. Alphonsus Regional Medical Center, Home Federal
Savings, Eagle River II , and Riverside Office Building II.
In addition to the actual development of property
within the City of Eagle, does Eagle River bring any other benefits to the
City and the surrounding area?
Yes, in several regards. First, the Eagle River
Development is designed to be an employment center that will bring several
thousand jobs to the City of Eagle and the surrounding community. As noted
above, at completion Eagle River will encompass approximately 1 million
square feet of commercial development space. The Development will employ
one person for every 100 square feet of space, which translates to
approximately 10 000 jobs. The creation of employment opportunities and a
solid job-base is important for the City of Eagle and the surrounding areas
and it is one of the many goals of the Eagle River Development.
Additionally, the type of jobs that the Development will bring to
the area are solid, quality jobs that will benefit the community. Because
Eagle River is creating opportunities for office and retail businesses, it has
been able to , and will continue to, attract medical personnel and staff, as well
as other professional jobs such as banking, mortgage business, and other
office jobs. In addition, the Retail Component of the Development will offer
retail and restaurant jobs.
Next, because of the quality of the Eagle River Development, the
property values within the Development have increased. Presently the land
values at Eagle River range between $9.50 to $17.00 per square foot. These
high land values translate into a higher tax base for the City of Eagle, which
Carlise , Di
Eagle River, LLC
in turn results in higher property tax revenues.
Finally, the Eagle River Development will benefit the community
by providing opportunities for additional tax revenues in the form of retail
sales. The Retail Component of the Development is designed to
accommodate at least twenty-five retail stores. At a standard rate of $300 of
gross sales per square foot for the approximately 200 000 square feet of retail
space , the Retail Component of the Development will produce approximately
$60 000 000 in retail sales , which at a sale tax rate of 6% totals
approximately $3.6 million in additional sales tax revenue.
The benefits that will result from a successful development at Eagle
River will be felt beyond the borders of our Development. It will extend to
the City, the surrounding areas and to the state as a whole.
Did the City of Eagle impose any requirements on the
Eagle River Development?
Yes. The City of Eagle has very exacting development
standards, and it was very strict in enforcing those standards for the Eagle
River Development. Consistent with its Comprehensive Plan and its
designation of the Eagle Bypass corridor as a scenic area, the City required
that Eagle River enter into a Development Agreement, which set forth the
standards for our development. I have attached a copy of the Development
Agreement as Exhibit 202.
Under that Agreement, the Eagle River Development was required
to be constructed "in harmony with the existing community.(Exhibit 202
Development Agreement
, p.
l). The Agreement further required Eagle River
to:
Carlise, Di
Eagle River, LLC
Provide a public easement for a greenbelt pathway; (Exhibit
202 , Development Agreement, p. 7).
Provide on-site , tree-lined landscaped strip along State Highway
44 and Riverside Driver (Id.
Provide a ten-foot wide bicycle/pedestrian pathway within the
landscaped strip (Id.
Provide a minimum 28 000 square foot on-site landscaped area
at the corner of State Highway 44 and Eagle Road (Id.
Provide public art, water features , or other features of interest
(Id., p. 8);
Provide pedestrian amenities which encourage pedestrian use
(i., outdoor drinking fountains, benches , tables, etc.) (Id.
And the list goes on and on. The purpose for these development
requirements is perhaps best stated in the Development Agreement itself:
The Purpose of the Design Guidelines is to provide an
aesthetic roadmap for the development of the Eagle River project within the
highly visible and scenic city of Eagle/Boise River context." (Id., Design
Guidelines, p. 1).
The Development Agreement further provides that:
The intent of the Design Guidelines is to provide a
harmonious and integrated development of commercial and residential
buildings sharing common streets, trails , wetlands, and open spaces. The
general theme of the City of Eagle is to emphasize Northwest, turn of the
19th Century, architectural styles and appropriate materials." (Id.
Eagle River is committed to meet, if not exceed these goals , for the
Carlise, Di
Eagle River, LLC
purpose of creating a pleasing, premium quality development that enhances
the Eagle community and for economic benefits that will result from such a
development.
Could the Eagle River Development have been
constructed without meeting those requirements?
No. The Development Agreement was a requirement for
the Eagle River Development, as it is for other developments within the City
of Eagle. One of the important considerations for Eagle River in creating its
development was the fact that the City of Eagle was serious about its
development requirements, its development ordinances and its
Comprehensive Plan. What that meant to us was that not only would Eagle
River be subject to the City s high standards for development, but other
developers would be as well. Eagle River relied upon the City of Eagle
strict enforcement of its development standards so that all developments
would have the same themes, aesthetic and meet the same design goals as
Eagle River.
How did Eagle River learn about Idaho Power
Company s proposal to construct a 138 kV transmission line along the
Eagle Bypass corridor?
We found out about the proposal almost by accident.
One of our employees was at the City of Eagle Sewer Office when he saw a
copy of a notice of a Planning & Zoning Commission meeting where the
Idaho Power Company s proposed line was to be discussed. The news was
surprising to us, since Eagle River had been working closely with Idaho
Power Company to have the company bury one of its power lines-at Eagle
Carlise, Di
Eagle River, LLC
River s expense-in order to protect our Development from these unsightly
overhead lines. It seemed incredible that we had paid Idaho Power Company
to bury these lines, when at the same time the company was planning and
moving forward with a proposal to construct a much larger transmission line
along the entire length of Eagle River s property on the north. All of this
occurred without any communication to us by Idaho Power.
Upon discovering the information about the hearing, we contacted
Layne Dodson at Idaho Power Company and met with him to discover why
Eagle River was not informed about the transmission line. Through that
meeting, we learned that we were not notified of the meetings-despite our
prior interactions with Idaho Power Company and despite our owning
property right next to the proposed line-because Idaho Power Company only
mailed notices to owners who had an Eagle zip code.
How will the transmission line affect Eagle River?
The construction of an overhead 138 kV transmission
line along the entire mile-long northern boundary of the Eagle River property
will have significant detrimental effects to our development. Because so
much of our Development focuses on the aesthetic, natural environs , the
transmission line will severely impact that aspect of what we have created
with Eagle River. In concrete terms , what this means is that with the 70-
foot towers that are proposed for the transmission line , along with the tangle
of overhead wires, the Eagle River Development will be degraded to the point
that land values will fall and building standards will be forced down.
Instead of a premium, high quality development, the Eagle River
Development will be reduced to a more average quality development, with
Carlise, Di
Eagle River, LLC
much less desirability and appeal to the high-end businesses and customers
Eagle River is seeking to attract. Eagle River would then have more
industrial-type uses, rather than general office/medical office uses.
Additionally, the Retail Component of the Development would be diminished
because high-end retail will not locate in the project as a result of its more
industrial appearance.
As a result, the Eagle River Development will suffer lower land
values with a lesser quality of development. The Development build-out
period will be delayed, there will be a loss of leverage for Eagle River to
realize its plan for the development, and we will have lost the investment of
the cost and expense of the high-end amenities which we incorporated into
our Development. And Eagle River will have lost out on our reliance upon
the City of Eagle s development plan, Comprehensive Plan, and Development
Agreement, as well as our future plans for the Eagle River Development.
Will the impacts to the Eagle River Development that
you described above have affects beyond your property?
Yes. As a result of the lower land values that will be
realized from a more industrial-type development, the City will loose a
portion of its property tax base. In addition, the Development will not attract
the same type or quantity of employment opportunities , and therefore the City
will lose out on these benefits as well. And finally, because the Development
will be unable to support the Retail Component, the City and State will lose
the sales tax revenues that it would have otherwise enjoyed.
As noted above , the detrimental effects of Idaho Power Company
transmission line will not only be substantial , they will reach far beyond the
Carlise, Di
Eagle River, LLC
borders of our Development.
Are you aware that Idaho Power Company previously
requested approval from the City of Eagle to construct the 138 kV
transmission line?
Yes. Before filing its complaint with the Idaho Public
Utilities Commission, Idaho Power Company first sought permission from the
City of Eagle to construct is transmission line through the City. Eagle River
was involved in that process as a landowner affected by the proposed
transmission line. Eagle River objected to the proposed line at every stage of
the process and explained how it would be adversely impacted by the line.
Ultimately, the City of Eagle rejected Idaho Power Company s request.
Is there anything else that you would like to add to
your testimony?
Just that, Eagle River is adamantly opposed to the
proposed 138 k V transmission line. It will drastically alter the Eagle Bypass
corridor and will have substantial adverse impacts on the Eagle River
Development and other developments along its path.
In addition, it is our understanding that there exists reliable
technology that would not require Idaho Power Company to construct the
massive 138 kV poles and lines and that would not cost any more than Idaho
Power Company s current proposal to construct the lines along the Eagle
Bypass. It is also our understanding that this technology is currently in use in
a number of other communities and that Idaho Power Company failed to
consider any similar alternatives in its analysis of its current proposal.
fact, Eagle River in conjunction with the City of Eagle specifically asked
Carlise , Di
Eagle River, LLC
Idaho Power Company whether there were any alternatives that would
mitigate the injury that would be caused as a result of the construction of the
138 kV transmission line. And to my knowledge, Idaho Power Company did
not consider alternative technologies as a means of mitigating the impacts of
its transmission line.
Eagle River respectfully requests that the Commission deny Idaho
Power Company s request to construct an overhead 138 kV transmission line
within the right of way for the Eagle Bypass as proposed. Eagle River also
requests that if alternative technologies that were not considered by Idaho
Power Company are available, those alternatives should be considered as a
reasonable resolution and accommodation to all landowners who will be
affected by the proposed transmission line, the City of Eagle and Idaho Power
Company.
Does this conclude your direct testimony?
Yes , it does.
3251403 2.DOC
Carlise, Di
Eagle River, LLC
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Case-No::IPC~04-04
~lia~l~s Carl~~e;E~gl River ~LC;
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I DAI-IO'S PREMIER BU SINES S 0 DR E S S
Exhibit No. 201
Case No. IPC-04-
Charles Carlise , Eagle River, LLC
Page 2 of 9
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Parking
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Price
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User
Type
1.29 acre 097 SF BarDEnay 00/1000 L D Restaurant
96 acre 128 868 SF Hilton Garden Inn xx/l000 L D Hotel
97 acre 047 SF 200 SF 67/1000 746 334.$17.Restaurant
92 acre 135 SF WA Trust Bank 00/1 000 L D Financial
P5a 64 acre 821 SF 500 SF 36/1000 $ 445 136.$16.Retail
P5b 63 acre 27 ,380 SF 500 SF 73/1 000 438 080.$16.Bank
P5c 56 acre 24,450 SF 000 SF 66/1000 342 300.00'$14.Restaurant
89 acre 880 SF Under Contract . 13.77/1000 PEND IN G Restaurant
. P7 82 acre 778 SF Westmark Credit 5~00/1 000 L D Financial
52 acre 206 SF 460 SF 00/iooo ' $ . 943 435.$14.Retail
68 acre 116 693 SF 000 SF 24/1000 166 930.$10.Retail
PIO 46 acre 237 612 SF 000 SF 80/1000 673 135.$11.25 Retail
Pl1 04 acre 063 SF 000 SF 00/1000 $1 ;380 476.$15.Retail
P28 70 acre 660 SF 400 SF 66/1000 398 580.$13.Restaurant
Exhibit No. 201 Updated Febmary 2004
Case No. IPC-04-04
Charles Carlise, Eagle River, LLC
Page 4 of 9
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Exhibit No. 201
Case No. IPC-04-
Charles Carlise, Eagle River, LLC
Page 5, of 9
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establishinentS~:;I)llb~ and~hi
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staiidi ng a~chor bui Idings i ~di yiduaL,' c
'; p~d ~lt~s~:o~~~m~Il:s~rip'sp'a~es:"
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t~~~1~1*s~~~~th;!I~~;~=
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thesurrounding cornrmi~,io/-;:Eagle RiveralsoproViges ~vari~ty9f~ccupimcy option's for officeusers;inc~uding parcels: ~~ ~ifferirig 'sizes
~:a locati6n~ ay~~l~blef?r sat ~~n ~s ~~~.l~i id'bu.iltfo~~al~orlease.
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A ~ :J,eo ~~ & J 0 flOagl~~Ne , t h~(3 ;ossn:~nProl'~rty' co~~ny has devote di tsc.i osi d e ~ ~ i eex perti~e t ~ tl1~~u ccc~s6 f~hi$ to~"'f.
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~~vel.op~ent.:-: This xtr~~elY" ~apab Ie property:' gcvel bper~ o\Z~~t ~rt~rnanager has a'naiionalr~p~tati()rtfo " s~ccessf~l dlsiirtctlv
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dev~lopm~ntan'dred iC?PTrle~tp:~6Jectsiri' th e West~rh Uillted St~tes': they'are able create anbpportimityin EagIe Rt~~r i4'~eetthe ' "
)o~t~pancy:'n~e 6fat~osiariybusines
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I ~J McMILLAN RD.Bois~ReseaiY:h
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USTICK RD.
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FAlRVIEW AVE-
Owsroods CeRtU
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R.c. Wdle.1
St. Luke;; Medlial
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Exhibit No. 201
Case No. IPC-04-
Charles Carlise , Eagle River, LLC
Page 6 of 9
" "..., ' ....."..", ", ., ' " "' :"' ,, '' " . ' ', " , "" ". ' .' " ' . ., "" ".. ', ," ,':"" ', ,, '
0 RIVERSIDE BUILDING
G LAND GROUP BUILDING
G EAGLE,RIVER BUILDING
SAINT ALPHONSUS REGIONAL
MED I CAL CENTER
BARDENAY
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Exhibit No. 201
Case No. IPC- E-O4-
Charles Carlise, Eagle River, LLC
Page 7 of 9
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c, .. " ', " ", ' ' ," ", ,. .". '' ", ', .'" ' "" ." ,, '' ". ', ' ' " , ,' , , " ,, '.., . ..' "', . '. " ,, '' ';, ..
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ver'
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IDAHO,S P:REMl'ER SINESS A DDRESS:
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TREAsuREY ALLEV'PREMIERBUsiNESS ADDRESS
MIXEb.V~ED EVELOPMENT INC~ ~D~ GA Hn. TON HOTEL OFF! CES . RETAIL SH 0 PS B ANKS , AND REST A ~ANTS
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~, 9~"AcRE :DEVi~oPMEN:r.' LOCATEDAT THE SEC 'OF EA~LE ROAD AND, Hwy., 4 (EAGLE BYPASS) ON TIlE
()ISE RrVE
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HIGH ~ISIBIU'fY INTERSECTION WITll'TRAFFIC COUNTS ~F50'OOO (AI)T) , AUT()MOBILES, PER DAY ,
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EXCELLENrINGRESS AND ' EGRESS TO AND FROMTHE PROPERTYAND ACCESS 'TO ALL AREAS
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AMENITIES~NC~UDE A HIGH QU:ALITYEN:vIRONMENTWITH DRAMATICENTRIE WATER FEATURE$, COMMUNITY,
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PARK'ACCESSTOBoiSERIVER,
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~ EXPERIE~CED CAPABLE QUALITY DEVELOPER WITH ABILITY T~ TAILOR OP~ORTUNITY TO THE NEEDS OF THE USER
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SURROUNDING AREA' HAs ONE O E THE HIGHEST :INCOME .LEVELS IN THE TREASURE 'y ALLEY
SAINiAL~HO~SUS REGIONALM~DICALCENTERAMBULATORY CARE FACILITY TO BE BUILT IN THE
CENTER OF THE PROJECT
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Exhibit No. 201
Case No. IPC-O4-
Charles Carlise, Eagle River, LLC
Page 8 of 9
Exhibit No. 201
Case No. IPC-04-
Charles Carlise, Eagle River, LLC
Page 9 of 9
DEVELOPMENT AGREEMENT
Between
City of Eagle and Eagle River, LLC
January 25 , 2000
BOUND REPORT
SEE CASE FILE
Exhibit No. 202
Case No. IPC-04-
Charles Carlise , Eagle River , LLC