HomeMy WebLinkAboutC7 - S. Bozeman TIF Update
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: South Bozeman Technology District Update
MEETING DATE: June 13, 2016
AGENDA ITEM TYPE: Consent RECOMMENDATION: Receive the information contained in this memo and consider this in the context of FY 17 TIF District work plans and budgets. BACKGROUND: The Bozeman City Commission created the South Bozeman Technology District (the “District”) in December, 2012 and authorized the District’s use of tax increment financing to support a wide array of activities, statutorily defined, within the District including the development of public infrastructure. (Attachment 1) A primary purpose of creating the South Bozeman Technology District (the “District”) was to address existing public and high tech infrastructure deficiencies on property occupied by the Montana State University Innovation Campus (“MSU IC”). Currently, property within the District lacks the necessary infrastructure to facilitate the aforementioned development. The City continues to work with MSU, the MSU Foundation, the MSU IC and other community partners to solidify the vision of the MSU IC. Since the last report, the MSU IC Board has not selected an Executive Director but is reviewing candidates for the position. The absence of an Executive Director continues to impede the progress of the IC and the District. The District Board and staff have met irregularly over the past few years. Recently, an updated vision was created by MSU leadership that will chart the course of the MSU IC over the next several years. (Attachment 2) Community
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partners are engaged in the discussion and the District Board and staff await the outcome of those discussions to determine if and when the District will play a role in the future of the Innovation Campus. Currently, the District’s role in that evolution of the MSU Innovation Campus vision is unclear. Options include whether or not the District should exist at all given some of the concepts for proposed use and ownership. Should the District remain in its present form, a Technology Tax Increment Financing District limited by where goods and services can be sold sold (50% of sales must occur outside of the State of Montana)? Should the District Board and Commission consider an alternative framework? Authorized by the Montana Legislature in 2015, Targeted Economic Development Districts, or TEDDs, offer more flexibility in use without the outside sales requirements. The Current SBTD Board includes:
First Name Last Name Expires Appointed Vacancy Matt Johnson July 8, 2019 July 8, 2013 Steve Johnson July 8, 2018 7/28/14, 7/8/2013 John Jutila July 8, 2016 July 8, 2013 Kathleen Saylor July 8, 2019 July 8, 2013
UNRESOLVED ISSUES:
The current value of one mill is $86,564. Estimates indicate an approximate 2% increase in taxable values during reappraisal in 2017 which will have an impact on Districts around the City. Commercial and residential property reappraisals have shifted from a six-year to a two-year reappraisal cycle. What is the district’s future? Should it remain in existence as a Technology Tax Increment Finance District? Should the District be sun-setted? Should a Targeted Economic Development District, or TEDD, be created? Answers to these unresolved issues are driven by the intentions of majority property owner within the District and that vision is only now achieving clarity although the role of the District remains just out of focus.
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FISCAL EFFECTS: The District deficit reported in June of 2015 was ($7,410). As of May 26, 2016 the District deficit is ($7,454.40). (Attachment 3) Attachments: 1) Map of the South Bozeman Technology District; 2) MSU IC Mission and Vision Presentation; and 3) South Bozeman Technology District Revenues and Expenditures to date. Report compiled on: June 3, 2016
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Research at Montana State University
and the MSU-IC
Renee Reijo Pera
Vice President for Research MSU
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Excerpt of Letter from President Franklin D Roosevelt to Office of Scientific
Research and Development (July, 1945):
(1) What can be done …. to make known to the world as soon as possible the
contributions which have been made during our war effort to scientific knowledge?
(2) With particular reference to the war of science against disease, what can be
done now to organize a program for continuing in the future the work which has
been done in medicine and related sciences?
(3) What can the Government do now and in the future to aid research activities
by public and private organizations? The proper roles of public and of private
research, and their interrelation, should be carefully considered.
(4) Can an effective program be proposed for discovering and developing
scientific talent in American youth so that the continuing future of scientific
research in this country may be assured on a level comparable to what has been
done during the war?
Research in Universities Began with the Land Grant Institutions and
Established Current Funding Model Following WWII
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Strategic Planning
Goal: Double our expenditures to $220M+ by 2021.
(1) Precision agriculture
(2) Natural resources (including energy)
(3) Optics
(4) Health and biomedical sciences
Rural health in native and non-native populations, especially mental
health
Immunology, microbiology, zoonotics and antibiotic resistance
Foundational strategic area across disciplines: Data/modeling/computation
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The Original Mission and Vision of the MSU-IC
Mission & Vision
The Mission of the Montana State University Innovation Campus is –“Create
a world-class university-related research park to promote economic
development and partnerships between high-tech based businesses and the
research community of Montana State University, the region, and the State of
Montana.
The Vision of the Montana State University Innovation Campus is –“To be
recognized as ‘the place’ that provides a unique community to connect people
and support public private partnerships to stimulate new ideas, push forward
the advancement of research and science, and produce new discoveries and
technologies that will transform the world.”
Paraphrased: Our mission is to provide unprecedented opportunity for our
students at Montana State University and positively engage the surrounding
community and the state of Montana.
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Types of Innovation Centers
Incubators
Accelerators
Research/tech parks
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MSU Synergy with MSU-IC
1) Longevity
Precision nutrition/medicine
Lifestyle/financial choices
Education
Transitions
2) Classified Research
Data sciences
Optics
3) Workforce development
Clinical Sciences
Clinical trials (current clinical trials in schizophrenia, meth use)
Healthcare workforce
Native and rural health
Computer Sciences
Veteran re-entry
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Many Models for the MSU-IC
QB3: UC Berkeley, UC San Francisco, UC Santa Cruz
CALIT2: UC San Diego, UC Irvine
UU Research Park
USU Research Park
Stanford University
Purdue Innovation Park
Colorado State University at Boulder
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The Vision For the Physical Space
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Schematic of the Current Space
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Take-Home Message
The research enterprise is our shared enterprise and should serve Montana
including the technology community.
We have the opportunity to create one of the world’s most sustainable and
outstanding research enterprises, to be envied nationally, that is responsive to
the needs of Montana and beyond.
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Appendix
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Funding
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VPR Research Funds
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This Year
1.Focused on fundamentals: Policies and support to olleges, departments, centers and
institutes
2.MSU Funding Opportunities and Publications updates weekly
3.Research Expansion Funding issued with Deans and President (have seen >3X ROI to date)
4.Increased and improved proposal (“no RFP left behind”)
5.Restructured the VPRED office to improve oversight, customer-service mentality and focus
6.Established first Centers and Institutes (Center for Communication of Science, Center for
Mental Health Research and Recovery, Center for Health and Safety Culture, HELPS
Laboratory, pending: eXtreme Gravity Institute)
7.Developed external relationships important to funding, economic development
8.MT Research Initiative
9.S&C Programs/Centers/Institutes RFP
10.Bridge-funding, IDC and space policies adopted
11.Prioritization process underway
12.Nomination committee formed
13.Established research student internship partnership with Stanford University
14.Unprecedented grant awards and incoming funds including prestigious national centers
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National Centers
•Funding in national competition from NSF::
David Dickensheets and colleagues, National Nanotechnology Research Center; $3M
•Site visit from Keck Administration:
Brent Peyton and colleagues, Thermal Biology Institute –$2M; $2M match
Discovering Alkaliphilic Hyperthermophilic Archaea: Novel Organisms and Molecules for Medicine,
Chemicals, and Energy
•Invited to submit full proposals:
1.Kenning Arlitsch, Patrick O’Brien and Jerry Sheehan -Expanding Serendipitous Knowledge
Discovery -$1.5M; $1.5M match
2. Robert Usselmann and David Singel –The Quantum Biology of
Reactive Oxygen Species -$1.5M; $1.5M match
3.Brian Bothner, Ed Dratz, Valerie Copie, David Dickensheets and
Tomas Gedeon --High Time Resolution Analysis of Metabolism,
Oxidative Stress and Stem Cell Reprogramming --$1.5M; $1.5M match
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The MT Research and Economic Development Initiative
1.Palmer –Development and Commercialization of Autonomous Chemical & Biological
Instrumentation for Water Quality Monitoring (UM): $1,292,398
2.Voyich –One Medicine: Reducing the Impacts of Inflammatory and Infectious Diseases
on Animal and Human Health (MSU): $1,500,000
3.Lefcort –Synergistic Improvement in the Diagnosis & Treatment of Mental Illness,
Dementia, & Chronic Pain (MSU): $1,462,158
4.Spangler –Enhancing MT’s Energy Resources: Research in Support of the State of
MT Energy Policy Goals (MSU & MT Tech): $1,200,000 plus MSU Northern $800,000
5.Jacobsen –Increasing Profitability by Improving Efficiency of MT’s Farm & Ranch
Lands (MSU): $2,276,734
6.Patel -Translational Science at the Neural Injury Center (UM): $2,234,834
7.Shaw –Optics & Photonics Research for MT Economic Development (MSU):
$2,496,513
Distribution to date:
MSU $9,735,405
UM $3,527,232
Remaining for additional projects (TBA) $1,737,363111
R:\Accounting\TIFD_Tax_Increment_Financing_Districts\Fund_192_South_Bozeman_Technology\South_Bozema
n_Technology_TIF_Fund_192_Balance_-_05.26.2016.xls\Presentation - 5.26.16
5/26/2016 at 4:06 PM
BEGINNING FUND BALANCE: JULY 1, 2013 -$
ADD: REVENUES
Property Tax Increment 167.10$
TOTAL REVENUES 167.10$
LESS: EXPENDITURES
Contracted Services/Consultants & Prof Services (7,621.50)$
TOTAL EXPENDITURES (7,621.50)$
CURRENT FUND BALANCE/(FUND DEFICIT)(7,454.40)$
SOUTH BOZEMAN TECHNOLOGY TIF DISTRICT FUND BALANCE
Fund 192
As Of 5/26/2016
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