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HomeMy WebLinkAboutCity Center Grant Report 161115 MEMORANDUM TO: Midtown Urban Renewal District Board FROM: David Fine, Economic Development Specialist RE: City Center Inn Rehabilitation Grant Application DATE: October 11, 2016 Project Description: A request for rehab grant funding in the amount of $50,000 for demolition and site improvements. Total project costs are $696,646. Project Location: 507 W. Main St, Tracys 1st Add. S12, TO25, RO5E, Block E, Lot 29, 30, within Bozeman, Gallatin County, Montana. The property is located within the B-2M, Community Business District - Mixed. Recommendation: Approve grant in the amount of $50,000 including demolition and eligible site improvements. See Project Review Criteria for analysis. Suggested Motion: “I move to approve the Rehabilitation Grant Application for the City Center Inn site in the amount of $50,000 contingent on a thorough review and approval of the proposed demolition and remediation plan by the Community Development Department and a selection of contractors in conformance with the City’s purchasing policy.” Project Review Criteria: The N7Rehab Program provides grants to foster voluntary rehabilitation or redevelopment of eligible commercial properties for the elimination of blight in the North 7th Corridor. To evaluate requests, the following review criteria are used by the Midtown Urban Renewal Board and Staff to evaluate projects. Staff analysis follows each criterion. Public Improvements Does the proposed project address a lack of, or poor condition of: storm water facilities, curb and gutter, sidewalks, landscaping in the right-of-way, parking lot approaches, parking lot access issue, or encroachments into the public right-of-way? Yes. The project reduces storm water runoff by reducing impermeable surfaces like buildings from the site. It provides landscaping as the property owners create a full development plan for a future boutique hotel and leaves the property in more aesthetically pleasing interim condition. Regulation Compliance Does the proposed project address non-compliant signage, lack of paving or poor condition of paving, ADA access, landscaping, parking circulation or storm water control? Yes. See above. 3. Is the building/site currently vacant? Yes. The building has been vacant since July 1, 2015. The building itself does not meet current building codes and is functionally obsolete. 4. Is it converting a building/site from a non-conforming use to a conforming use? Yes. The existing vacant and obsolete building is not in conformance with the newly adopted B-2M zoning. A new building would be required to conform to the requirements of the new zoning in terms of orientation to the street and other design considerations. 5. Design and Connectivity Plan Does the proposed project address the site and building level objectives to encourage the rehabilitation and redevelopment of parcels that are underutilized or do not meet current standards, establish a stronger relationship between buildings and the street by providing pedestrian connections and orienting buildings to the street; incorporates pedestrian amenities and landscaping in existing developments, and incorporates public art in small pocket parks and plazas? Yes. The proposed demolition project addresses the site level objectives of the Design and Connectivity Plan by encouraging “the rehabilitation and redevelopment of parcels that are underutilized and that do not meet current standards” (p. 2) Demolishing a vacant and outdated structure will serve this criterion in two ways: It will remove a blighted and vacant building from the corridor, and it will ensure that new development will be compliant with the requirements of the new zoning designation. The project enhances the vegetation and landscaping on the site. 6. Design and Connectivity Plan Corridor Goals Does the proposed project strengthen the corridor as a neighborhood service center by providing double fronting building, pedestrian connection to public right-of-way and on-site bicycle facilities or landscape buffers when adjacent to residential neighborhoods? No. While subsequent development of the site could address these goals, the proposed project does not address them. 7. Bozeman Design Objectives Plan Does the proposal improve the aesthetic experience by strengthening the appearance, character and feel of the building through the application of guidelines from the Bozeman Design Objectives Plan? No. While future buildings are planned for the site, they are not included in this proposal. Summary The Design and Connectivity Plan for North 7th Avenue Corridor (DCP) highlighted a number of issues with the corridor that could be remedied by the demolition of existing structures that are non-compliant, outdated and in this case vacant. Redoubling efforts to rehabilitate existing properties that are underutilized and set back from the street will only compound the issues this board is attempting to address with the DCP and the new B-2M zoning. Property owners should be encouraged to proactively demolish and redevelop properties with these characteristics. Such actions clearly address the overarching urban renewal district aim of eliminating blight. The interim landscaping proposed by this plan is significant, particularly considering its interim and transitional nature. It ensures that delays in redevelopment do not leave the City with an unsightly vacant lot at the intersection of two entryway corridors. This proposal would be stronger if it was being submitted in conjunction with a site plan that proposed the construction of new structures. It is recommended that a grant award in the amount of $50,000 be given for project costs related to demolition, landscaping and site improvements, with conditions. This amount represents the maximum allowed for total project costs under the N7 Rehabilitation Program, which allows for up to 15% of the eligible project costs to be covered. The grant should be contingent on verification by Economic Development Department that vendor selection is compliant with the City of Bozeman purchasing policy. The grant should also be contingent on a thorough review and approval of the proposed demolition and remediation plan by the Community Development Department.