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HomeMy WebLinkAboutA3 - Downtown TIF Workplan and Budget May 31, 2016 TO: Chris Kukulski Anna Rosenberry Bozeman City Commission FR: Chris Naumann Executive Director RE: Tax Increment Finance District FY 2017 Budget and Work Plan Commission Meeting: June 13, 2016 Attached are the Downtown Tax Increment Finance District (TIF) FY2016 Annual Report, FY2017 Work Plan and FY2017 Budget. The FY2017 Budget was unanimously approved by the TIF Board on May 17, 2016. I will be presenting these documents at the City Commission meeting on Monday, June 13, 2016. If you have any questions regarding the annual report, work plan or budgets, please feel free to contact me at any time. Respectfully Submitted, Chris Naumann 188 Downtown Tax Increment Finance (TIF) FY2016 Annual Report and FY2017 Work Plan and Budget On November 6, 1995, the City Commission passed Ordinance No 1409 adopting the Urban Renewal Plan for downtown Bozeman. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained. 2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan. 4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles, but are only listed once below). 1. Strengthen downtown’s economic vitality  Provide more, better managed parking; retain public offices and anchor businesses; facilitate commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly 2. Improve the safety, security and health of the district  Improve traffic flow emphasizing downtown as a destination; improve public works; improve night- time lighting; improve sidewalks; increase police presence; improve alley and parking lot appearance and safety 3. The image of downtown shall be continuously improved  Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to Bozeman Creek; improve trash removal 4. Downtown’s accessibility shall be improved  Provide effective public transportation; better accommodate bicycles; reduce reliance on private automobiles 5. “Community Partnership” is fundamental to downtown’s success  Encourage growth of cultural activities; preserve historic character 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly 9. Cultural activities shall be nurtured and expanded downtown TIF-IDB Mission Statement The Downtown Bozeman Tax Increment Finance board (TIF) will foster an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center. 189 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2016 Annual Report (July 1, 2015 to June 30, 2016) Downtown Parking Garage $ 437,000 invested The TIF made a debt service payment of $427,000 on the Bridger Park Garage construction bond. The TIF also pledged its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund. This year’s contribution will be $10,000. Chris Naumann, TIF Director, has continued to play an active role in the operation and maintenance of the parking garage as a member of the BPC. Fiber Broadband Project $ 400,000 invested Last year the TIF funded the design and engineering of downtown’s portion of Bozeman’s Fiber Master Plan. This year the TIF allocated $500,000 for the construction of the downtown portion of the Bozeman Fiber network. To date $400,000 has been invested as construction began in May 2016. Downtown Hotel Incentive Program $ 80,604 invested $ 100,000 encumbered The TIF had awarded up to $100,000 each to the Etha and Element hotel projects. The Element incentive equaled $80,604 and was paid this fiscal year. The Etha incentive remains encumbered. The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program provides reimbursement of the impact fees associated with the development of a downtown hotel upon issuance of the City occupancy permit. Downtown Partnership Management Fee $ 100,000 invested The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the Downtown Partnership office in addition to a majority of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF. DURT Phase 1 Preliminary Engineering $ 96,030 invested The TIF continues to design and engineer a large streetscape improvement project involving 21 block faces in downtown. The contract was awarded to TD&H Engineering and their work will continue in FY2017. Technical Assistance Grant Program $ 53,100 invested $ 20,000 encumbered This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. This year the TIF awarded 3 Planning Grants and 3 Facade Grants to a variety of proposed downtown redevelopment projects. Intersection Cable Anchor System Repairs $ 31,037 invested The TIF commissioned a structure analysis by Kerin & Associates of the intersection cable anchor system that supports the holiday “spider” decorations. The analysis recommended several cable anchors be repaired or replaced prior to the installation of the decorations. This work was performed by Montana Crane. 190 GVLT Burke Park Bridge Project $25,000 invested The TIF contributed $25,000 to the Gallatin Valley Land Trust for the design and construction of a new bridge at Burke Park. The board deemed this to be an important piece of infrastructure that was needed to improve access and safety at a point that is the gateway to downtown for the Main Street to Mountains trail system. Downtown Comprehensive Parking Plan $ 20,000 invested The TIF contributed $20,000 to the Bozeman Parking Commission/Division for the completion of a comprehensive parking plan. Rick Williams Consulting, Portland OR, was selected and subsequently presented the draft plan in May and June of 2016. The plan is anticipated to be finalized in July 2016. Streetscape Assistance Program $ 17,545 invested This TIF program provides property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape Element Purchases and Maintenance $ 16,180 invested The TIF purchased additional streetscape elements to augment those already located in the downtown district. This year’s purchases included: pedestrian benches, trash receptacles, and bike racks. The TIF also funded the on-going maintenance of the streetlamps and Soroptomist Park. Downtown Plan Implementation $ 10,800 invested The TIF made three small investments towards accomplishing priority objectives established in the 2009 Downtown Improvement Plan. Projects included: Downtown 3D Modeling Project, B3 Zone Map Amendment project, and Historic Inventory Update project. Code Compliance Program $ 0 invested The program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $10,000. Downtown Explosion Impact Fee Relief $ 0 invested On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. Downtown Housing Incentive Program $ 0 invested The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. 191 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2017 Work Plan (July 1, 2016 to June 30, 2017) Downtown Parking Garage $ 440,000 budgeted The TIF will make the annual bond payment and long-term maintenance fund contribution for Bridger Park, the downtown parking garage. Downtown Public Parking Improvements $ 250,000 budgeted The TIF is committed to partnering with the Bozeman Parking Commission and the Parking Enterprise Fund to make strategic improvements to the City-owned parking assets downtown. Possible improvements will be high-priority objectives from the forthcoming Downtown Comprehensive Park Plan. Downtown Hotel Incentive Program $ 100,000 budgeted $ 100,000 encumbered The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program offers to reimburse up to $100,000 of the impact fees associated with the development of a hotel. The TIF Board awarded incentives to the Element and Etha hotels in FY2014. The Element incentive was paid in FY16 and the Etha remains encumbered. Downtown Residential Incentive Program $ 200,000 budgeted The purpose of the Downtown Residential Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. Downtown Broadband Infrastructure $ 150,000 budgeted The TIF has committed funding to begin the construction and implementing the public portion of a fiber optic broadband network downtown as previously design as one component of the Bozeman Fiber Master Plan. The majority of the installation is expected to occur the end of FY2016, so these funds have been committed to finalize the installation. Downtown Partnership Management Fee $ 105,000 budgeted The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the downtown office at 222 East Main Street in addition to the majority of the payroll costs of Chris Naumann, who serves as the Director of the TIF. Downtown Explosion Impact Fee Relief $ 100,000 budgeted On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. There are still two properties to be reconstructed. Streetscape Assistance Program $ 80,000 budgeted This TIF program will provide property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to 192 stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Downtown Improvement Plan Update $ 80,000 budgeted The TIF has committed funds to update the 2009 Downtown Improvement Plan. This update will not only evaluate the progress accomplished but also the remaining work to be done from the existing plan. Perhaps most important the update will include developing a downtown design district and specific design guidelines as recommended in the 2016 NCOD Analysis. Other funding may include a contribution from the Downtown Business Improvement District and a Community Development Block Grant. Technical Assistance Grant Program $ 50,000 budgeted $ 10,000 FY16 encumbered This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. Code Compliance Program $ 50,000 budgeted This TIF program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $10,000. Intersection Cable Anchor Repairs $ 50,000 budgeted The TIF will continue to invest in the repair of the intersection cable and anchor system. In FY2016 the TIF funded a structural analysis of the anchor and cable system. The analysis recommended that 6 anchors be repaired as soon as possible which was completed in November 2016. The remaining of the suggested system enhancements will be made this year. Downtown Improvement Plan Implementation $ 35,000 budgeted The TIF board has allocated funds to be invested in high-priority projects identified by the Downtown Improvement Plan. These funds could be used for further planning or design projects or for implementation of particular projects specifically designated as follows: General Contingency Funds $ 20,000 Downtown Wayfinding Contribution $ 15,000 Library Pedestrian Safety Improvements $ 10,000 Streetscape Element Purchases and Maintenance $ 32,500 budgeted The TIF will continue to supplement the existing streetscape inventory by purchasing additional historic street lamps, trash receptacles, pedestrian benches, tree guards and bike racks. Funding is also available for the ongoing maintenance of the streetlamps and Soroptomist Park. DURT Phase 1 Design and Engineering $ 30,000 budgeted The TIF will continue the design and engineering work for a large streetscape improvement project involving 21 block faces in downtown. This year’s work will focus on completing the preliminary design for a new streetscape along Mendenhall between Rouse and 3rd Avenues. Alley Improvement Incentive Program $ 25,000 budgeted The TIF will offer a new program to assist property owners in the implementation of the ideas presented in the Downtown Alley Sketchbook. This document provides numerous examples of how to 193 improve the alley corridors with lighting, landscaping, and hardscaping. The incentive program will focus on assisting with the installation of pedestrian-scale lighting in the alleys. Downtown Strategic Parking Data Collection $ 20,000 budgeted This TIF will contribute funds to the high-priority data collection recommended in the Bozeman Parking Commission’s Comprehensive Parking Plan. The FY2017 Downtown Tax Increment Finance District Work Plan and Budget were unanimously approved by the TIF Board on May 17, 2016. 194 Downtown Tax Increment Finance District FY2017 Budget FY2017 Category BUDGET Income Starting Cash Balance 1,479,289$ Income from TIF (estimated)430,000$ COB Interlocal Share 472,500$ Entitlement Share State of Montana 45,436$ Interest Income (estimated)10,000$ Other Income (Library benches)3,000$ Total Income 2,440,225$ Expense Operations Management Fee and Admin.105,000$ Total Operations 105,000$ Infrastructure Improvements Street Furniture and Park Maintenance 7,500$ Streetscape--new purchases 25,000$ Streetscape Assistance Program 80,000$ Wayfinding Signage--fab & install 10,000$ Alley Improvement Incentive Program 25,000$ Public Parking Improvements 250,000$ Library Pedestrian Safety Improvements 10,000$ Code Compliance Program 50,000$ Fiber-Broadband Infrastructure 150,000$ Intersection Cable Anchor Repairs 50,000$ Total Improvements 657,500$ Planning Technical Assistance Grants 50,000$ FY16 Encumbered Funds 10,000$ Residential Incentive Program 200,000$ Hotel Incentive Program 100,000$ FY16 Encumbered Funds 100,000$ Downtown Improvement Plan Update 80,000$ DBIP Implementation Funds 20,000$ City Wayfinding--Downtown Planning 5,000$ DURT Phase 1 Prelim Engineering 30,000$ Strategic Parking Plan--Data Collection 20,000$ Total Planning 615,000$ Parking Structure Garage Bond Payment 430,000$ Garage Long-term Maintenance Fund 10,000$ Total Parking Garage Payments 440,000$ Explosion Impact Fee Expenses Explosion Impact Fees 100,000$ Total Impact Fee Expenses 100,000$ Total Expenses 1,917,500$ Year End Balance 522,725$ 195