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HomeMy WebLinkAbout01-23-17 CC Mtg - A5. Resolution 4770, Midtown TIF Assistance ProgramCommission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist SUBJECT: Resolution No. 4770 authorizing the Midtown Urban Renewal District Tax Increment Finance Assistance Program and authorizing the Bozeman Midtown Urban Renewal Board to Provide for the Administration of the Program. MEETING DATE: January 23, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Adopt Resolution 4770. SUGGESTED MOTION: I move to adopt Resolution 4770. BACKGROUND: The existing program incentivizing redevelopment in the Bozeman Midtown Urban Renewal District (the “District”) was authorized in 2010 pursuant to Commission Resolution 4289. The program, known as N7Rehab, provides grants focused on rehabilitation of existing buildings through façade, streetscape, and landscaping enhancements. The program made smaller grants for demolition activities. Grants under the program are for 15% of eligible project costs not to exceed a maximum grant amount of $50,000. The program was a component of several modest successes; the best example of a recent success being the new façade work converting the vacant Vans IGA building to the Universal Athletic corporate headquarters. Façade and landscaping enhancements represent useful tools in an urban renewal program. Such improvements create the sense of momentum in a district that is necessary to attract investment. The ongoing streetscape and lighting project serves a similar purpose. These tools, however, have limits. A long-term objective of the district plan is to facilitate urban density mixed land uses. Most of the buildings in the district were built at time when culture and zoning required an auto-oriented pattern of development. Buildings setback 25 feet or more from the street do not match the requirements of the new B-2M (Community Commercial – Mixed Use) zoning designation. Numerous driveways and parking lots impair 328 the pedestrian user experience. Many of the buildings on the corridor are reaching the end of their useful life: Perhaps more importantly, façade enhancements are less directly impactful for increasing taxable value than other incentive programs. Creating long-term taxable value increases that would not exist without tax increment finance projects to the City, County, and Schools is a significant purpose of an urban renewal district. Given the interest in Midtown investment, the Board has determined that it is time to transition to more impactful tools. The proposed Midtown Tax Increment Finance Assistance Program (TIFAP) incentivizes projects creating significant new taxable value that also facilitate the five blight remediation goals of the Midtown Urban Renewal Plan. The two part incentive program attempts to strike a balance between welcoming all investors to the District and participating in projects are unlikely “but for” TIF assistance. Applicants requesting $50,000 or less in assistance would have their project reviewed under program criteria based only on the urban renewal program goal. Applicants requesting more than $50,000 in assistance would be required to submit detailed financial data on their project to show how TIF assistance would make a project feasible that might not be feasible without TIF assistance. Maximum awards will be capped based on demonstrated need and contingent on the availability of appropriated incentive funds. Some large projects may require the approval of mid-year budget amendments by the City Commission to proceed. The program takes aim at one of the major challenges to redeveloping a corridor. It is difficult to make an investment case for redevelopment when existing structures produce modest rents, even when the subject property is obviously underdeveloped. Existing rents, combined with the cost of demolition and infrastructure upgrades make it tricky to catalyze redevelopment without the addition of incentives to the business case. The proposed incentives are tailored to address this dilemma by addressing the costs of demolition and infrastructure upgrades associated with new development. The program allows TIF assistance to be used for two eligible components of projects: 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. Incentive funds will be committed to the project at the time of grant to allow the funds to be considered as part of the development pro forma, but would be paid on a reimbursement basis at the time the building receives a certificate of occupancy. This stipulation significantly reduces risk for the City making sure funds are only awarded after the activities creating new taxable value are completed. The Midtown Urban Renewal Board voted unanimously on January 5, 2017 to recommend the adoption of this program to the City Commission. 329 FISCAL EFFECTS: The approval of this program has no immediate fiscal impact on the District. The Commission will have the opportunity to approve annual work plan and budgets for the District that implement this program and its associated appropriations. For example, in FY 2017, the Commission approved $250,000 for existing redevelopment incentive programs. ATTACHMENTS: Resolution 4770 Midtown Tax Increment Finance Assistance Program LINKS: Midtown Urban Renewal District Work Plan and Budget for FY 2017 Resolution 4289 authorizing N7Rehab Program (2010) 330 Page 1 of 5 COMMISSION RESOLUTION NO. 4770 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AUTHORIZING THE MIDTOWN URBAN RENEWAL DISTRICT TAX INCREMENT FINANCING ASSISTANCE PROGRAM AND AUTHORIZING THE BOZEMAN MIDTOWN URBAN RENEWAL BOARD TO PROVIDE FOR THE ADMINISTRATION OF THE PROGRAM. WHEREAS, the Bozeman City Commission did, pursuant to law, on the 22nd day of August 2005, adopt Resolution Number 3839, declaring that blighted areas exist in the portion of the North Seventh Avenue Corridor and that rehabilitation, redevelopment, or a combination thereof of the area is necessary and in the interest of the public health, safety, morals, or welfare of the residents of Bozeman; and WHEREAS, the Bozeman City Commission did, pursuant to law, on the 27th day of November 2006, adopt Ordinance Number 1685 defining the North Seventh Urban Renewal District boundary, creating a North Seventh Urban Renewal Board and authorizing the Board to act as the “agency” to exercise urban renewal powers; and WHEREAS, the Bozeman City Commission did, pursuant to law, on the 16th day of December, 2015, adopt Ordinance Number 1925, the Bozeman Midtown Urban Renewal District Plan (the “Plan”), defining an expanded District boundary, renaming the District the Bozeman Midtown Urban Renewal District (the “District”), delineating new goals and strategies for eliminating blight, and authorizing the Bozeman Midtown Urban Renewal Board (“Board”) to act as the “agency” to exercise urban renewal powers; and 331 Resolution 4770, Authorizing the Midtown Urban Renewal District Tax Increment Finance Assistance Program Page 2 of 5 WHEREAS, the Plan, “Encourages commercial and residential development or redevelopment of identified infill areas through the use of and publicizing of incentives, such as, but not limited to, public infrastructure support”; and WHEREAS, the Board develops an Annual Work Plan and Budget to implement the Plan that is presented to the Bozeman City Commission for approval following a public hearing, which may include the appropriation of funds for an incentive program as authorized by the Plan; and WHEREAS, the intent of these funds is to offset the cost of redevelopment of substandard or “blighted” properties within the District; and WHEREAS, by Ordinance Number 1925 the Board was granted the powers under Section 7-15-4233; and WHEREAS, Section 7-15-4233(1)(a), MCA, grants the City the power to formulate and coordinate a workable program as specified in 7-15-4209, 15-MCA; and WHEREAS, Section 7-15-4209, MCA, states: (1) a municipality may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. (2) Such workable program may include, without limitation, provision for: … (b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements, by encouraging voluntary rehabilitation, and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas of portions thereof. WHEREAS, Section 7-15-4288, MCA, “Costs that may be paid by tax increment 332 Resolution 4770, Authorizing the Midtown Urban Renewal District Tax Increment Finance Assistance Program Page 3 of 5 financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project. 1) demolition and removal of structures, 2) improvement of infrastructure, 3) public improvements and 4) costs incurred in connection with the redevelopment activities allowed under 7-15-4233; and WHEREAS, to fulfill the above statutory requirements, the Board developed a program for granting monies appropriated by the City Commission to redevelop and rehabilitate the District the name of which program is the Midtown Urban Renewal District Tax Increment Financing Assistance Program (“Midtown TIF Assistance Program”); and WHEREAS, the purpose of the Midtown TIF Assistance Program is to encourage investment in development and redevelopment of commercial and mixed use property within the District. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana (the “City”), as follows” Section 1 The primary objective of the Midtown 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, 7-15-4233, and 7-15-4288, M.C.A.). Additional District objectives are to: • 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 Section 2 333 Resolution 4770, Authorizing the Midtown Urban Renewal District Tax Increment Finance Assistance Program Page 4 of 5 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, as provided in the Midtown TIF Assistance Program as set forth in Attachment “A”. Section 3 The Board provides a Work Plan and Budget to the City Commission on an annual basis at which time the Board requests a portion of the District’s tax increment be allocated for the Midtown TIF Assistance Program and therefore eligible projects granted awards by the Board. Section 4 The Board is, hereby, delegated authority to administer the Midtown TIF Assistance Program as set forth in Attachment “A” and may enter into agreements with Applicants necessary to accomplish the purposes of the program. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 23rd day of January, 2017. CARSON TAYLOR Mayor ATTEST: ROBIN CROUGH City Clerk 334 Resolution 4770, Authorizing the Midtown Urban Renewal District Tax Increment Finance Assistance Program Page 5 of 5 APPROVED AS TO FORM: GREG SULLIVAN City Attorney 335 Midtown Urban Renewal District TIF Assistance Page 1 Revised January 2017 MIDTOWN TAX INCREMENT FINANCING ASSISTANCE PROGRAM 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. 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. 336 Midtown Urban Renewal District TIF Assistance Page 2 Revised January 2017 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, 7-15-4233, and 7-15-4288, M.C.A.). Additional District objectives are to: • 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. 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. 5. The applicant shall provide sufficient market, financial, environmental and other data relative to the successful operation of the project. 6. 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. This application must be signed by both the applicant(s) and the property owner(s) (if different). 7. 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 337 Midtown Urban Renewal District TIF Assistance Page 3 Revised January 2017 building departments, licensed architects, engineers, or building contractors before proceeding with final plans or construction. 8. The Applicant must demonstrate significant leverage of private investment through the use of public dollars. 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 $100,000 will require the ratification 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. USE OF ASSISTANCE FUNDS The award of TIF assistance funds is subject to the Applicant entering into a grant agreement with the District. The grant agreement will include requirements that the grantee comply with (i) applicable City of Bozeman procurement regulations related to bidding, hiring, and prevailing wages; (ii) the City’s nondiscrimination policy; and (iii) State of Montana public records laws. The grant agreement will include such additional terms as the District in its sole discretion determines are prudent or necessary to fulfill the goals of the TIF assistance program. TIF assistance funds must be used within two years of the date of the Letter of Award. Any funds not disbursed to the Applicant within that time will remain in the District fund. The Board, in its sole discretion, may provide an extension of up to one year to the original two year timeframe. Use of TIF assistance funds must be in compliance with the terms of the grant agreement 338 Midtown Urban Renewal District TIF Assistance Page 4 Revised January 2017 between the Applicant and the District. REVOCATION OF AWARD The grant agreement will include terms providing that an award of TIF assistance may be revoked by the Board if the Board finds, in its sole discretion, that Applicant has failed to comply with any of the terms of the assistance program or grant agreement, or has failed to provide information or provided inaccurate information on the application. Upon such a finding, the Board will provide Applicant with notice of the default and a 30-day opportunity to cure before the award is revoked. The grantee will be required to return TIF assistance funds already disbursed pursuant to the terms of the grant agreement. DISCLAIMER: Neither the Board nor the City of Bozeman will be responsible for the planning, design, or construction proposed by any work conducted as part of the TIF assistance program. No warrantees or guarantees are expressed or implied by the description of, application for, award of or participation in the TIF assistance program. 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 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. 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 $50,000 339 Revised 1/6/2017 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: ________________________________________ 340 Midtown Urban Renewal District TIF Assistance Page 6 Revised January 2017 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. This application must be signed by both the applicant(s) and the property owner(s) (if different). 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 that failure to comply with the terms of the TIF assistance program may result in revocation of an award. I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority, and must receive all required approvals prior to commencing the work. I (we) understand if approved for TIF assistance, the work to be performed must also be in accordance with TIF assistance program procedures and the general design guidelines for the District, as well as the specific plans approved for the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be assessed for my project. Further, I (we) agree to grant City personnel and other review agency representative’s access to the subject site during the course of the review process (Section 38.34.050, BMC). Applicant (s) (Print Name) Signature of Applicant Date Property Owner(s) (Print Name) Signature of Property Owner Date 341 Midtown Urban Renewal District TIF Assistance Page 7 Revised January 2017 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.) 342 Midtown Urban Renewal District TIF Assistance Page 8 Revised January 2017 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. 343 Midtown Urban Renewal District TIF Assistance Page 9 Revised January 2017 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 Prior to Board action on the grant application, the Applicant must have obtained and provide to the Board the Community Development Director’s written comments on the proposed development from the Conceptual Review Application. 344 Midtown Urban Renewal District TIF Assistance Page 10 Revised January 2017 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 345 Midtown Urban Renewal District TIF Assistance Page 11 Revised January 2017 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: 346 Midtown Urban Renewal District TIF Assistance Page 12 Revised January 2017 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. 347 Midtown Urban Renewal District TIF Assistance Page 13 Revised January 2017 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. 348