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HomeMy WebLinkAboutMURD TIF Assistance - draft dsf 12-29-2017 Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 1 MIDTOWN URBAN RENEWAL DISRICT TAX INCREMENT FINANCING ASSISTANCE and APPLICATION INTRODUCTION The Midtown Urban Renewal Plan (“Plan”), adopted by the Bozeman City Commission on November 16, 2015, authorized the Midtown Urban Renewal Board (“Board”) to establish monetary incentives in the Midtown Urban Renewal District (“District”) in support of the Plan’s goal to promote economic development. The Board established and administers this Tax Increment Financing (“TIF”) assistance program for the redevelopment and rehabilitation of properties within the District. TIF assistance applications are subject to program eligibility criteria and project guidelines listed below. Applications will be accepted and processed in the order in which they are received and approved based on the availability of funds for the program. PURPOSE The purpose of the TIF assistance program is to encourage desirable development/redevelopment projects, as well as assist projects that would not otherwise occur “but for” the assistance provided through tax increment financing. The purpose of this document is to provide guidelines for the Board to offer monetary incentives for development activities in the District in the form of TIF assistance funds. This policy shall be used as a guide in processing and reviewing applications requesting TIF assistance. The Board shall have the option of amending or waiving sections of this policy when it determines, in its sole discretion, such an amendment or waiver is necessary or appropriate. In amending or waiving any sections of this policy, the Board shall document the reason for the deviation in the project’s development agreement. The provision of financial assistance is at the sole discretion of the Board. The Board reserves the right to reject or approve applications on a case-by-case basis, taking into account established policies, specific project criteria and the demand on District services in relation to the potential benefits to be received from the proposed project. Meeting policy guidelines or other criteria does not guarantee the award of TIF assistance. Furthermore, the approval or denial of one application is not intended to set precedent for approval or denial of another application. PROGRAM OBJECTIVES The primary objective of the TIF assistance program is to encourage investment in development and redevelopment of commercial and mixed use property within the District in accordance with the provisions of the Montana Urban Renewal Law (7-15-4209 and 7-15-4288, M.C.A.). Additional District objectives are to: Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 2 • Encourage private investment in commercial property in the District through the use of public incentives; • Expand the property tax base in the District through private investment in income producing properties; • Stimulate economic and business development within the District; and • Reduce blighting influences in the District The grants are awarded at the discretion of the Board as authorized by the Bozeman City Commission, based upon review of the Applicant's compliance with program objectives, eligibility requirements, and eligible construction activities. GENERAL POLICIES 1. TIF assistance priority will be given to projects that do not have the financial feasibility to proceed without the benefit of the assistance. 2. The applicant shall provide any market and financial feasibility studies, appraisals or other information provided to private lenders for the project as well as any other information or data which the Board, or its financial consultants, may require in order to review the need for TIF assistance. 3. TIF assistance will not be used for projects that place extraordinary demands on District infrastructure or services. 4. If requested by the Board, the applicant shall provide adequate financial guarantees to ensure completion of the project in a form acceptable to the City Attorney. 5. The applicant must be able to demonstrate, to the Board’s satisfaction, an ability to construct, operate and maintain the proposed project based upon past experience, general reputation and credit history. 6. The applicant shall provide sufficient market, financial, environmental and other data relative to the successful operation of the project. 7. The applicant must be the owner of the project property. The Applicant must retain ownership of the project long enough to complete it, to stabilize its occupancy, to establish the project management, and to initiate payment of taxes based on the increased project value. 8. Project plans and construction must comply with all applicable code and permit requirements. Applicant is advised to consult with the City of Bozeman planning and building departments, licensed architects, engineers, or building contractors before Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 3 proceeding with final plans or construction. ELIGIBLE COSTS TIF eligible expenses are defined by Montana Code Annotated, 7-15-4288 and further limited by the Plan. The project seeking TIF assistance must be located within the boundary of the District. Costs related to the following are eligible for financial assistance: 1. Demolition and removal of structures 2. Construction and improvement of public improvements or infrastructure, including streets, curbs, gutters, sidewalks, alleys, parking lots and off-street parking facilities, sewer lines, storm sewers, waterlines, and impact fees Requests for funding above $50,000 will require the review and approval of the Bozeman City Commission. DISBURSEMENT OF ASSISTANCE FUNDS The TIF assistance program is a reimbursement program. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the Board in its sole discretion. At the end of the project, the recipient will submit a Certificate of Completion and required supporting documentation to the Board including itemized invoices and other documentation as the Board may reasonably request. APPLICATION PROCESS AND PROCEDURE Application for TIF assistance shall be made on the forms provided by the Board and submitted to the Economic Development Department for review and comment. Deadlines for submittals shall be as published and posted by the Board. Incomplete forms will be returned to the applicant with an explanation on additional information as may be required. For applicants seeking TIF assistance to construct and improve public improvements or infrastructure (not including payment of impact fees), the City of Bozeman Development Review Committee will review the application and materials and provide a recommendation to the Board and, if applicable, the Bozeman City Commission. For projects seeking TIF assistance for demolition or payment of impact fees, the City of Bozeman Economic Development Department will review the application and provide a recommendation to the Board and, if applicable, the Bozeman City Commission. If approved by the Board, or City Commission, a “letter of intent” outlining the specific terms and conditions of the TIF assistance will be provided to the applicant. Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 4 SUBMITTAL INFORMATION There are two parts to the attached application. All applicants must complete Part 1. Applicants requesting TIF assistance above $50,000 must complete and include information identified in Part 2.  Part 1 – All Applications  Part 2 – Applications requesting funding over $50,000 Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 5 Midtown Urban Renewal District TAX INCREMENT FINANCING APPLICATION PART 1 Property Information Property Address: ____________________________________________________________ Property Owner: _____________________________________________________________ Legal Description: ____________________________________________________________ Property Geo-Code: __________________________________________________________ County Tax ID #: ____________________________________________________________ Applicant Information  Property Owner  Tenant  Developer  Other Applicant’s primary contact: Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: ________________________________Cell Phone: _______________________ Email: ________________________________________ Project Representative (if not applicant): Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: ________________________________Cell Phone: _______________________ Email: ________________________________________ Property Owner (if not applicant): Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: ________________________________Cell Phone: _______________________ Email: ________________________________________ Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 6 Please attach a list of all other property owners, business partners, developers and/or investors associated with this project, with the above information provided for each. I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to participate in the Midtown Urban Renewal District TIF assistance program. I (we) understand the work to be performed must be in accordance with all City codes, and must receive all approvals, as required in the City of Bozeman Unified Development Code, and that any work performed prior to approval will result in the TIF assistance application being declared void. I understand if approved for TIF assistance, the work to be performed must be in accordance with TIF assistance program procedures, all applicable code requirements, and the general design guidelines for the District, as well as the specific plans approved for the project. Applicant (s) (Print Name) Signature of Applicant Date Property Owner(s) (Print Name) Signature of Property Owner Date Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 7 Company Profile Business Location  New business establishing itself in Bozeman  Existing business  Expanding/remodeling at same location  Expanding to an additional location  Existing business relocating from (identify location): Street Address: City: State: Zip:  Other: Year Business Established: Type of Business (Describe): Has a business plan been developed in relation to the proposed project?  No (Development of a business plan may be required as part of the application process.)  Yes (Include a copy with the application.) Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 8 Project Detail Property Status:  Vacant land  Building on leased land – Describe:  Land and building(s) – Describe: Type of TIF Assistance Sought:  Requesting assistance for public infrastructure costs  Building demolition Value of TIF Assistance Sought: $ Will this project proceed if TIF assistance is not granted?  No  In a limited fashion (explain):  Yes, but at a later date (explain):  Yes, as scheduled  Other: 1. Project Narrative Provide an overview of the project in narrative format. The narrative must include a description of the following aspects of the project:  Proposed use(s) or project (e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc.)  Construction information about the project including size of any existing structure to be demolished or rehabbed; sized of any new construction; types of construction materials (structural and finish); delineation of square foot allocation by use;  Total number and individual square footage of residential units; type of residential units (e.g. for-sale, rental, condominium, single-family, etc.); number and type of parking spaces provided; and construction phasing. Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 9 2. Site Maps and Building Plans The Applicant must submit a completed Conceptual Review Application to the Board and concurrently to the Community Development Department. The Conceptual Review application must include, at minimum:  Photographs of project site and/or building  Map showing the location of the site and its immediate surroundings  Proposed development plans including site plans, floor plans indicating square footage and layout, building elevations  Description of parking accommodations for residential units and commercial uses  Estimated date of occupancy Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 10 CRITERIA FOR TIF ASSISTANCE In reviewing the TIF assistance application the Board will evaluate each project utilizing the following criteria and point system. Points can range from 0 to the maximum shown below in each category. Please rate your project according to the following criteria. To receive points for any given item, documentation demonstrating adherence to the criteria must be submitted with the application. The Board will use this information to evaluate the project. Overall District Relevance Points 1. Relevance to the Midtown Urban Renewal Plan – Documentation of the project’s impact in relation to the goals and objectives of the Midtown Urban Renewal Plan, particularly mixed-use development. Urban design elements will also be considered, including pedestrian emphasis and quality of design. /5 Promote Economic Development 2. Tax Generation: The project will increase the taxable value within the District. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor’s office or State Department of Revenue to determine tax increment generation. Submit documentation of estimated tax projections to receive points for this criteria /4 3. Elimination of Blight – The project’s direct and indirect impact on the physical and fiscal deterioration within the Tax Increment Financing District and the community. Submit information showing current conditions of property. /4 4. Employment Generation – Total employment generated by the project assessed in terms of new permanent and part-time jobs, and construction jobs. Submit documentation of estimated new jobs to receive points for this criteria. /3 Improve Multi-Modal Transportation 5. Facilitates Public Health and Mobility: Project will construct or improve sidewalks, including ADA access to buildings. Provide detailed information demonstrating that the current condition inhibits public health and mobility. /1 6. Reduces Resource Demand: Project promotes the use of transit, ride sharing, or car sharing. Provide plans, agreements or other methods to demonstrate reduction of resource demand. /1 7. Promotes Active Transportation: Project promotes bicycling as an active transportation option by constructing or improving bike lanes, providing covered bike parking, and/or participating in a bike share program. Provide plans, agreements or other methods to demonstrate reduction of resource demand. /2 Improve, Maintain and Support Innovation in Infrastructure 8. Infrastructure Improvements: Project promotes innovation in infrastructure and/or reduces long term costs of maintenance. Provide plans and descriptions of innovations proposed. /2 Promote Unified Human Scale Urban Design Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 11 9. The project improves the street frontage by eliminating parking between the right-of-way and the building. Provide plans to demonstrate improvement in street frontage. /2 10. The project reduces the number of vehicular access points to the property and improves the pedestrian experience. Provide plans, agreements or other methods to demonstrate reduction. /2 11. The project enhances the North 7th Ave. entryway corridor by having buildings oriented toward the street and designed to provide interest and activity. /3 12. The project enhances the pedestrian experience with elements such as façade transparency, building articulation, street furniture and/or landscaping. Submit plans and details that address this criterion. /3 13. The quality of development and overall aesthetics (architectural, site design, landscaping, etc.) are beyond that which is minimally required by the UDC. Submit documentation to demonstrate compliance with this criterion. /2 Support Compatible Urban Density Mixed Land Uses 14. The project increases housing units within the District. Submit plans demonstrating an increase in the number of housing units. /4 15. The project has a mix of uses, including residential. Submit plans detailing the proposed mix of uses within the project. /4 16. The project shares parking among compatible uses. Provide details demonstrating compliance with the UDC and as well as total number of parking spaces reduced because of a shared arrangement. /2 Total Points /44 APPROVAL (For Official Use Only) Approval Status: Date Approved: Date Letter of Award Sent: Date Certificate of Completion: Date of Payment Request: Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 12 PART 2 FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE 1. Detailed Project Information Submit the following information regarding the project requesting TIF assistance.  Project Timeline A project timeline is required. Include anticipated dates for site acquisition, project start and completion, as well as other project milestones. Multi-phase projects must include details for each phase. The timeline should also identify any critical or time-sensitive dates as well as any time constraints facing the applicant.  Public Benefits Fully describe the public benefits that can be realized by the completion of this project. Projects with a high degree of public benefits are typically more likely to receive TIF assistance. Examples of public benefits include, but are not limited to the following:  Re-occupancy of a vacant building  Elimination of blight  Creation of new retail choices  Increased tax revenue  Job-training opportunities This statement should include qualitative examples of public benefits as well as quantifiable and measurable outcomes of the short-term and long-term benefits to the District. Include documentation in support of estimates of public benefits. 2. Project Financial Information In order for the Midtown Urban Renewal District Board to adequately review applications seeking TIF assistance, the following information must be submitted with the application.  Sources & Uses of Funds Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, other anticipated types of public assistance, and any other types or methods of financing. Describe the sources of equity and include a term sheet for lender financing, if available. TIF assistance is available as a reimbursement after the project is complete. Thus, the project budget must identify the up-front sources intended to finance the development costs of the project. If determined, specify the specific line items of the project budget that each source will finance. Revised 12/29/2016 Midtown Urban Renewal District TIF Assistance Page 13 Summarize the uses of funds. General categories to be identified include: acquisition and related site costs, hard construction costs, and a breakdown of soft costs.  Development Budget Provide an accurate and detailed development budget for the project that includes a detailed breakdown of significant line item costs consistent with the sample included in the application packet. The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs. Also, identify all line items that are performed by the developer, owner, or related entities.  Budget of TIF Eligible Expenses Identify which of the development budget costs are eligible for reimbursement as allowed by 7-15-4288, MCA.  Financial Commitments Submit commitment letters and/or term sheets from all lenders for proposed debt (such as construction, mezzanine, permanent, and government financing) and all other financial sources of the project (such as grants, and tax credits). Commitment letters must clearly specify the nature and terms of the obligations.