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HomeMy WebLinkAbout02-02-16 NURB MinutesNURB Meeting – February 2, 2016 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, February 2, 2016 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, February 2, 2016, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Tom Noble, Chair (via telecon) Robert Pavlic Daniel Doehring Erik Nelson, Vice Chair Jeanne Wesley-Wiese Non-Voting Members: John Usher Commissioner Liaison: I-Ho Pomeroy Staff: Brit Fontenot, Economic Development Director Craig Woolard, Director of Public Service Robin Sullivan, Recording Secretary Guests: John How, KLJ Engineering Shane Strong, KLJ Engineering Chris Nixon, 719 North Wallace Avenue Call to Order – Chair Tom Noble called the meeting to order at 6:34 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – No comment was received under this agenda item. Minutes – January 5, 2016. It was moved by Erik Nelson, seconded by Dan Doehring, that the minutes of the meeting of January 5, 2016, be approved as submitted. The motion carried on 4-0 vote. Discussion/Action Items – Resolution authorizing expenditure of TIF dollars to cover proportional North NURB Meeting – February 2, 2016 2 Wallace Avenue road reconstruction costs for properties within the district. Economic Development Director Brit Fontenot stated this resolution recommends to the Commission that tax increment financing (TIF) dollars be used to cover the 15 percent of the costs to be paid by the adjacent property owners. It formalizes the Board’s previous actions and allows the Commission to accommodate this funding mechanism in its creation of the special improvement district. The attached exhibit outlines the costs for each parcel within the special improvement district; and the lines in green reflect those properties for which TIF monies will fund the improvements. He noted that the estimated local portion for the district totals just over $322,000, of which just over $149,305 is for properties within the district. Jeanne Wesley-Wiese noted that the property along the west side of North Wallace Avenue between East Tamarack Street and the railroad tracks lies outside the district and asked how those costs are to be paid. As a result of discussion, it was acknowledged that the TIF district boundaries include the North Wallace Avenue right-of-way to the tracks but that the property along the west side of the street is outside the district. As a result, the SID costs to those properties are in white on the exhibit and, therefore, those costs are to be paid by the property owner. Director of Public Service Craig Woolard stated the property owners along North Wallace Avenue within the SID boundaries will receive a letter stating what their share of the estimated costs will be along with a protest form that they may return if they wish to protest. He stated it is important for those lying within the TIF district to know that their costs will be covered. Responding to Erik Nelson, the Director stated that the $322,000 estimate is the local share only, and that is the principal amount that would be funded over twenty years under the SID. He noted that the total estimated cost of the project is just over $2 million. Further responding to Erik Nelson, the Director reviewed the various options that would be considered if the bids come in higher than estimated. If the costs are under or slightly over, the project could move forward with recalculated costs. If the costs come in considerably higher, then the project goes back through the entire process, which delays construction for a year. He noted that the cost of materials, how busy the contractors are and how large the project is all impact the bids received. It was moved by Tom Noble, seconded by Erik Nelson, that the Board approve the resolution as written. The motion carried on a 4-0 vote. Review of draft letter to residents within TIF district describing the North Wallace Avenue project and funding mechanism. Economic Development Director Fontenot stated this letter is to let property owners within the TIF district know, in the least confusing way possible, that their SID costs will be paid through TIF monies. He has also attempted to draft the letter in a way that does not create tension between neighbors along the street. Chair Noble noted that, even though the concept is simple, it is difficult to explain in a letter, particularly one that comes from the City. NURB Meeting – February 2, 2016 3 Director of Public Service Craig Woolard stated that property owners along North Wallace Avenue received a letter informing them of last night’s Commission meeting. Now that the Commission has adopted the resolution of intent, the property owners will receive a letter stating what their share of the estimated costs will be along with a protest form that they may return if they wish to protest the district. He noted that those within the TIF district boundaries will then receive a letter from this Board that informs them TIF dollars will be used to cover their costs. Erik Nelson stated he feels the letter should be more of a “rah rah” letter since their costs will be covered. He suggested that the first paragraph of the letter inform the property owners that their costs are being covered, followed by the required legal language. John Usher asked if it would be possible to include both letters in the same envelope so that all of the information reaches those within the TIF at once. Director of Public Service Woolard responded he feels that would be appropriate and something that staff can easily do. The Board members agreed with the revisions to the letter and the process for mailing it to the property owners. Discussion with Director of Public Service Craig Woolard regarding district’s projects. Economic Development Director Brit Fontenot noted that last month’s meeting included discussion about combining projects and allowing some of the projects to fall off the list so that efforts can be concentrated on the most important ones. John How introduced Shane Strong, who replaced Dustin Johnson in the local office approximately three weeks ago. He stated that his memo dated January 21, 2016, provides a revised list of projects with updated cost estimates as a result of last month’s discussions. He briefly reviewed the information, noting that the top four projects, which include the pedestrian railroad crossing upgrades, East Tamarack Street, East Peach Street and East Aspen Street/pedestrian bridge, are to be funded through bonding. Improvements for the quiet zone have been eliminated; however, monies are proposed for a diagnostic review of a quiet zone so that that information is available for future discussions. He noted that Front Street and North Ida Avenue improvements are included in the list but with no funding source identified. Chair Noble asked about a practical and feasible timeline for rebuilding East Tamarack Street, East Peach Street and Front Street, particularly in light of the impending improvements to North Wallace Avenue and North Rouse Avenue. Director of Public Service Woolard stated that, if everything proceeds as planned, the improvements to North Wallace Avenue should be completed this fall. At the present time, the Montana Department of Transportation plans to make improvements to the north half of North Rouse Avenue, which is that portion between East Oak Street and Story Mill Road, this year; however, they have encountered right-of-way acquisition issues. As a result, he anticipates that some preliminary work might be done this fall, but he does not expect construction of the improvements to be undertaken until summer 2017. Improvements on the south half of North Rouse Avenue, which is that portion lying between East Oak Street and NURB Meeting – February 2, 2016 4 East Mendenhall Street, are currently scheduled for 2018 or 2019. He urged the Board to not let the timing of that project impact their intent to improve the roadways mentioned because of the uncertainties involved in the MDT project. Director of Public Service Woolard stated he is supportive of the projects that have been identified by this Board; however, he stressed that they must be fully funded with its monies. He noted that improvements to local streets have been scheduled out for the next fifteen years; and none of these streets are on that list. He stated, however, any water and sewer improvements that may occur in conjunction with those street improvements would be borne by those utilities. He then noted that the stormwater system is typically part of street reconstruction and would, therefore, be paid by tax increment financing funds. Responding to Economic Development Director Fontenot, John How stated the projected costs are in today’s dollars, and inflation is typically calculated at 3 to 4 percent per year. Responding to Director Fontenot, Director of Public Service Woolard stated that once the Board decides to move forward with these street projects and has identified a timeline for doing so, he will have staff determine if water, sewer and stormwater improvements are needed. Those improvements will then be included in the design for the street improvements. He confirmed that staff will work with the Board on the stormwater improvements to be included in the East Tamarack Street improvements. Responding to Chair Noble, Director Woolard stated he has no problem with including all of the streets in a single package, noting that those improvements could be completed in a summer, and bidding them together could result in a better bid. He noted that now is the time to get the detailed design completed, with the bidding to be done in late fall or winter and under construction in 2017. He suggested that the contract could be written to identify the order in which streets are to be torn up and completed to minimize impacts on the area. He urged the Board members to consider how much negative feedback they are willing to absorb during the reconstruction process. Economic Development Director Fontenot noted that the Board must be in a position to pay for the improvements, so timing of the bond sale process is important. He then stated he and Administrative Services Director Rosenberry have been working on the possibility of a private bond sale. He noted that the process is essentially the same as for a public bond sale, but could be beneficial to the district. Responding to questions from Economic Development Director Fontenot, Board members stated the neighborhood would like to see the street improvements completed, particularly the pedestrian facilities. They feel that, with staging of the improvements, the negative impacts on the district can be minimized. John How noted that Front Street and North Ida Avenue have not been included in his calculations for the bond sale, but Chair Noble has included Front Street in his list of priorities. He stated that, if the Board wishes to include Front Street in the bond amount, he will need to update those costs. Responding to questions from Erik Nelson, Director Fontenot stated the same bond coverage requirements would apply to the private bond sale. He then noted that at last month’s Board meeting, Front Street and North Ida Avenue were left on the bottom of the list for the bond NURB Meeting – February 2, 2016 5 sale, recognizing that they will be the sacrificial projects if the funding is not adequate to do all of them. Jeanne Wesley-Wiese noted there are engineering issues on Front Street and North Ida Avenue that still need to be addressed. Director of Public Service Woolard reminded the Board that a floodplain analysis will be required for a bridge across Bozeman Creek, even though it is in a floodway rather than a floodplain. Erik Nelson voiced his support for the listing of projects and the priority in which they are listed. In response to comments from Chair Noble, Director Woolard stated that, at some point, sewer work will be needed along Front Street; and it is important to make sure those improvements are coordinated. He then noted that he will need to review the capital plan, but he believes that project is scheduled four or five years out. Responding to Economic Development Director Fontenot, John How suggested that one of the first steps to be taken is adoption of a reimbursement resolution so that the costs of updating the street designs can be recaptured. Recording Secretary Robin Sullivan reminded the Board of the procedure that has been previously established for approval of the street designs for East Peach Street and East Tamarack Street, noting it includes input from various advisory boards and adoption of an ordinance by the City Commission. She cautioned that could take several months to complete. Director of Public Service Woolard suggested it may not be necessary to go through that lengthy process; and he will follow up with other staff members to identify the process. He recognized that existing conditions in this district warrant an alternate street design. Economic Development Director Fontenot stated the Administrative Services Director has received some interest from local banks for a private bond sale. The process for that sale will include a request for proposals, with those proposals including the interest rate and term of the bonds. He characterized this process as equivalent to a public bond sale but less costly. He then noted that this is not the only district for which that process may be followed. It was moved by Erik Nelson, seconded by Jeanne Wesley-Wiese, that the Board agree with the prioritization of projects as set forth in the memo from KLJ Engineering dated January 21, 2016, and proceed with the bonding process. The motion carried on a 4-0 vote. Updates on construction cost estimates and timelines for projects in work plan. This item was covered in the previous agenda item. Set priorities for projects to be funded through bond issue, based on information provided in previous agenda item. This item was covered in the agenda item above. NURB Meeting – February 2, 2016 6 Discussion regarding work plan and budget for Fiscal Year 2016-2017. Erik Nelson asked if the Board needs to reserve any of its monies for bonding; the Economic Development Director stated he feels some monies should be set aside for that purpose since it has not yet been determined how the bonds will be issued. Responding to Erik Nelson, John How stated the engineering and administration for the projects listed in his memo dated January 21, 2016, total approximately $158,000. He noted that, typically, monies are about evenly split between engineering and administration but, since much of the design work has been done for East Peach Street and East Tamarack Street, he anticipates the split will be different. Erik Nelson suggested that the Board set aside $160,000 for engineering and administration for the projects to be bonded. He noted that monies need to be budgeted for staffing and administrative costs and suggested that the remaining monies could be left in reserve. Set agenda for March 1, 2016 meeting or cancel meeting. Items to be included on the agenda include a resolution for bonding, the work plan and budget for Fiscal Year 2016- 2017, and election of the Chair and Vice Chair for 2016. Director of Public Service Craig Woolard stated he will follow up on the process for approving an alternative street section and may have an update for the Board at its next meeting. FYI/Discussion (formerly Neighborhood News). There was no discussion under this agenda item. Adjournment – 7:45 p.m. There being no further business to come before the Board at this time, Vice Chair Nelson adjourned the meeting. Tom Noble, Chair Northeast Urban Renewal Board City of Bozeman