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HomeMy WebLinkAboutTIF Minutes 2-16/ Downtown Tax Increment Finance Board Meeting Minutes February 16, 2016 Attending: Bobby Bear, Bob Hietala, Vonda Laird, Bob Lashaway, Bill Stoddart, Jeff Krauss, Chris Naumann Absent: Shannon Haish Public Comments: None Disclosure: None Minutes ACTION: Bob Hietala moved to approve the November and January minutes as presented. Bob Lashaway seconded the motion. All voted in favor. Financial Report Chris presented the finance report as of February 16, 2016. No new income to report since the January figures. The most recent expenses included: $20,000 for Comprehensive Downtown Parking Plan; approximately $2600 for Fiber Network engineering; and just over $1100 for streetscape engineering. The board had no other questions regarding the finance report. Executive Director’s Report Technical Assistance Program Update—NO CHANGES Four grants have been awarded in FY2016—shown at the bottom of the chart. The chart also lists uncompleted grants that were awarded in FY2015. Keep in mind that the committed grant amounts are only tentative since the actual reimbursement amount will be determined as a one to one match upon completion of the grant work. As a reminder, the Planning grants have a $7500 cap and the Façade grants are capped at $3000. Bold listings indicate completed. / Building Project Updates Lark Addition (corner of Grand and Main) 4-5 story building with 28 new Lark hotel rooms. Passed through DRC and DRB. CC consideration March 7th. 5 West Building (northwest corner of Mendenhall and Tracy) Construction began on Friday October 2nd with the demolition of the old Opportunity Bank building. Scheduled to open in Jan/Feb 2017. Etha Hotel (old Armory building) the project has all the entitlements and permits needed to begin construction but no start date has been publicized. Willson Residences (old East Willson School) being redeveloped into 18 residential units with underground parking. Partial completion scheduled for Summer 2016. New Businesses Update Bozeman Taproom—Mendenhall/Rouse…Service Elec (north) Union Market— Mendenhall/Rouse…Service Elec (south) Squire House—Element Hotel restaurant Spice and Tea Shop—Stylon Bisl Restaurant—Poor Richards Restaurant—Universal Athletics Bakery—Downtowner (third down from Babcock corner) Berkshire Hathaway Real Estate—Perspectives/Downtowner (nearest Babcock corner) Downtown Fiber Network Project Update The construction bids for the installation of the fiber conduit within the Downtown and North 7th urban renewal districts are due Thursday, February 18th. Utility locates will be taking place downtown in preparation for the conduit to be installed beginning late spring or early summer. Planning Updates In this section I will provide update about several important City planning processes. City of Bozeman Planning Updates Transportation Master Plan www.bozemantmp.com Consultants: Peccia & Associates (Helena), Alta Planning (Bozeman) Timeline: September 2015 (kickoff) through September 2016 (adoption) UDC Revisions http://bozeman.net/Projects/U DCCodeupdate/Home Consultants: Makers (Seattle), Leland Group (Portland), Studio Cascade (Spokane) Timeline: September 2015 (kickoff) through February 2017 (adoption) Neighborhood Conservation Overlay District Analysis Consultants: KLJ/ArchTrio Timeline: Final report released December 18, 2016 http://www.bozeman.net/CMSPages/GetFile.aspx?nodeguid=39bede2f-b3ab-4c6c-a7c3-f2d4696e4ecb&lang= en-US Comprehensive Parking Plan Consultants: Rick Williams Consulting (Portland) Timeline: September 2105 (kickoff) through April 2016 (adoption) 2017 Downtown Improvement Plan Consultants: yet to be determined Timeline: yet to be determined…RFP spring/summer 2016 Discussion and Decision Items NCOD Review and Recommendations Chris and the board reviewed the NCOD Report that Chris had prepared in advance. The summary is included below for the record. Chris said that the report’s analysis of how downtown is impacted by the NCOD seemed accurate. He also said he agreed with the recommendation that a Design Overlay District be created for the B3 “halo” area surround the Main Street Historic District. The board asked that Chris clarify the origins and specifics of the east and west entryway districts as presented in the NCOD Report. The board agreed that the conflicts between the Downtown Improvement Plan and the NCOD and its design guidelines need to be addressed and resolved. Chris suggested that the downtown Design Overlay District could be a component of a new or updated Downtown Improvement Plan. The board asked Chris to continue to develop that concept and present a plan to move the idea forward. Intersection Cable System Repair Update Chris informed the board that the previously approved intersection cable anchor repair work was performed in late November by Montana Crane in conjunction with Kerin & Associates engineering. He said that two of the 6 anchors had to be completely replaced rather than just repaired. This additional work resulted in a total cost of $15,700. In October, the board had approved the work with a not to exceed cost authorization of $12,000. ACTION: Bob Lashaway moved to approve the payment of $15,699.92 to Montana Crane for the repairs to the intersection cable anchor system. Bill Stoddart seconded the motion. All voted in favor. **The meeting was adjourned at 1:00pm** / Executive Summary The City of Bozeman established the Neighborhood Conservation Overlay District (NCOD) in 1991 as a locally-adopted zoning district that prioritizes conservation of neighborhood character and preservation of historic properties. The boundary was initially based on the City’s 1957 census boundary. The boundary does not necessarily reflect the historical integrity of structures either adjacent to, within or outside the boundary. Substantial reinvestment has occurred in the NCOD area over the past 24 years as Bozeman has grown significantly since 1991. Therefore, the City is evaluating the NCOD and what recommendations may be needed to update the district and its associated regulations. The analysis concluded that the NCOD has affected affordable housing, infill development and the historical integrity of properties within the district. The District has had several successes including preserving potential historical buildings, creating historic districts and preserving neighborhood context in certain areas. However, the NCOD has also had challenges including affordable housing and application of design guidelines and code enforcement. [page 1] Preferred Recommendations Remove existing NCOD boundary within 5 years or upon replacement with Historic Primary Districts (based on existing NR districts) and Design Overlay Districts. Some areas currently part of the NCOD will no longer have overlay district protection. Proceed with making immediate changes to NCOD to remove N 7th (Midtown) area from NCOD. Create local historic districts (Historic Primary Districts) based on the existing National Register districts each with their own boundaries including Historic Buffer Districts (HBD), update building inventories, and implement design guidelines specific to each district that clearly define significance and character. Renovation, new construction, demolition and land use would be still be reviewed through a Certificate of Appropriateness (COA) process. Preservation Plans will closely resemble the existing Design Guidelines. The COA process would remain in place with continued improvements to procedures and review. Provide for Design Overlay Districts to enhance a particular design character through an overlay district plan. These districts will be similar to Design Objectives Plan for Entryway Corridors but much simpler in size and scope. Allow ground floor ADUs and increase sidewall height to five feet and reduce parking and parkland requirements for units less than 800 square feet. Remove the demolition restriction of requiring a building permit before demolishing structures that are non-contributing to a historic district. Change “Deviations” to “Permissible Modifications” and allow greater flexibility in their use. Continue or expand implementation of affordable housing incentives such as waiving impact fees, reducing parkland requirements, allowing density bonuses and reducing parking requirements. Implement code changes to allow for small-scale development on small, platted lots.[page4] Analysis of Existing Conditions Historic Preservation As Main Street remains strong and vital as an anchor of retail for Bozeman, there is a need to “spread out” a little. Mendenhall and Babcock Streets provide that fertile ground for growth opportunities. When the original NCOD Design Guidelines were written, the vision of the City was primarily focused on the preservation of Main Street. The guidelines reflect this and therefore echo a very traditional approach to development. Only limitedly, and without clear guidance, do they address areas with little or no historic integrity or context. With the amendment to the B-3 guidelines, the City has begun to take steps to recognize the need for revised guidelines that expand beyond Main Street. A more comprehensive assessment with focus on structures outside historic districts and Main Street will be needed for the successful redevelopment of these areas. [page 11] Infill Potential The Downtown Improvement Plan (Plan) also specifically calls for and recognizes the importance of infill development. Two strategies – Build Housing and Strengthen Downtown Businesses - speak directly to infill development. Additionally, the Plan identifies three specific sites along Mendenhall with the potential for infill; one of these sites has been redeveloped, evidence that plans such as these can become reality. [page 19] Design Guidelines Guidelines for the Commercial Character Area This chapter provides guidance for new commercial properties. It is in this section where recently adopted changes to the NCOD guidelines to better address the B3 Commercial zoning district attempt to correct and clarify the intentions of portions of this chapter. The NCOD guidelines for this chapter appear to be incomplete in that they consider primarily the Main Street Historic District and less so the opportunities for development and commercial growth in the “halo” area around the central core of the downtown. In general, the guidelines were written with a stronger bent towards more pure traditional Main Street-type development and less towards encouraging an innovative, contemporary, yet compatible new design. [page 24] Further conflicting were the zoning classification and the recommendations in the Bozeman Community Plan for higher intensity development. Much of the intensive B3 areas directly abuts residential zoning districts and in accordance with the design guidelines, new development needs to be contextually compatible. The amended guidelines are intended to be a temporary solution until updated permanent guidelines are put in place. [page 25] UDC Provisions Demolition of Existing Structures Obviously, the original goal of the NCOD was to protect historic structures and the legacy and roots that have provided the foundation for Bozeman to become the city it is today. That is and should continue to be a priority for Bozeman’s urban core. However, certain structures that do not contribute to historic districts or have little to no historic integrity should be allowed to be demolished to make way for new, creative development. Some development professionals were and continue to be encouraged by the recent redevelopment efforts within the NCOD noting that Bozeman is transforming into a more sophisticated city. [page 32] Parking and Access In speaking with the Downtown Partnership and the Downtown Business Improvement District (BID) board, parking reductions and access to parking lots were a top priority for ensuring continued commerce in the downtown. While parking standards for residential units may be appropriate, some downtown businesses (retail in particular) noted that further reductions for studio or efficiency units may help spur development of additional units and densify downtown. In 2004, the City significantly reduced parking requirements for the B-3 zoning district. Construction of the Bridger Park public use garage in 2009 provided an important resource for all of downtown’s use. Parking varied from 60 percent to full capacity for both on-street parking and dedicated parking lots; however, on-street parking was more fully occupied. In some cases certain block faces reached 100 percent, while off-street parking lots, especially outlying lots, did not achieve full occupancy except for the Armory and Willson lots. The 2014Parking Study further states, that “while the results of the occupancy rate analysis did not indicate any problems at present, it is possible that issues may arise in the future. This is particularly true if downtown tourism traffic continues to grow.” [page 33] With the recently completed high density developments along Mendenhall and proposed development along Lamme, parking will undeniably continue to be a premium for infill developments. The Study further notes, “While adequate parking capacity still exists in the downtown area to absorb these peaks at present, occupancy rates (and possibly dwell times) should continue to be monitored in the future.” Parking adequacy is a frequent subject of public comment on development applications and is likely to continue to be a “hot topic” going forward. Currently, the City has three parking districts within portions of the NCOD – shown in Figure 11- to help manage intensive demand for parking and impacts to adjacent properties. As more high-density projects develop within Bozeman’s urban core, more districts may need to be created to help alleviate parking demand and manage where additional vehicles should be parked. [page 34] Recommendations NCOD Boundary The NCOD’s current boundary was chosen based on the 1957 US Census boundary for the City of Bozeman but did not take into account specific properties outside the boundary at the time of implementation. It has not been modified since its inception in 1991 and hence, is outdated and provides no logical boundary for conserving potential properties. The original boundary did not include an analysis of what potential properties may be historic or worth conserving. As such, the boundary should be modified to reflect changing development patterns and an aging housing stock in areas that may qualify for local or national historic districts. It is recommended the phasing out of the NCOD occur over a five (5) year period to allow for the necessary ordinance changes, organization of neighborhoods to determine significant neighborhood characteristics and associated guidelines for renovation and new development. Existing National Register Historic Districts, which would remain as National Districts, should be the priority for adoption as locally designated historic districts. The intention is to allow enough time for neighborhoods and property owners to create Design Districts or Local Historic Districts. The properties not included within either a Design or Local Historic District would be exempt from additional design guidelines. The end result would be to provide areas within the current district to grow and develop by ushering in new structures that display today’s architectural elements and form. Historic districts will still remain in place and new local districts should be created within the five-year time frame to preserve up to five potential new districts. [page 47] Design Overlay District (DOD) INTENT The DOD would be a separate zoning overlay district and different than historic districts and entryway corridors. The goal is to preserve a particular “character” or development strategy with a clear purpose and intent. Each district would have a separate document with boundaries clearly identified. The purpose and intent would have to be very clear and again, each “design district” would have its own guidelines as a separate document with boundaries clearly defined and referenced in the code. Each neighborhood within the NCOD is unique with its own architectural, cultural and neighborhood elements that make these areas vibrant places to live. No two areas are the same. What may be appropriate for northeast Bozeman (mixed-use residential) may not be appropriate in south central Bozeman (Victorian homes). This district type would address in particular those areas of the City, similarly to the intent of the Entryway Corridor Guidelines that are of highest visibility and are meant to represent the core values of our community. The guidelines for a DOD might include massing, construction materials with a demonstrated longevity, design which represents the area but also reflects innovation, green building features, respect of public space and/or green space, signage and streetscape appearance. Two areas for DOD designation may include the developing commercial areas adjacent to MSU campus and the B-3 halo area around Historic Main Street. PURPOSE To provide an overlay design district for the purpose of achieving a high level of design and consideration of particular areas, features or districts that have had or are intended to have a particular purpose (e.g. gateways, brewery district, university associated commercial pockets, historic signs, historic parklands) or a defined neighborhood character. CRITERIA Contain a minimum of eight “standard size” blocks. Follow similar protocols for Special Improvement Districts with respect to voluntary formulation and 51 percent of all property owners agreeing to district boundary and guidelines. Clearly stated intent and purpose for the Design Overlay District. May or may not meet the criteria of the National Register of Historic Places but is of local significance or importance. Identify characteristics to protect. Establish Design Guidelines to achieve the desired outcome for the intent and purpose. Massing, streetscape attributes, material pallet, signage, respect to open/green space, preserving sightlines or view-sheds, and lighting. Define boundaries or list of resources to include in district. Create ad hoc committee – property owner delegates, planning staff and neighborhood coordinator /