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HomeMy WebLinkAbout06-12-17 City Commission Packet Materials - C7. NURD FY18 Work Plan and Budget 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: Northeast Urban Renewal Board FY 18 Work Plan and Budget MEETING DATE: June 12, 2017 AGENDA ITEM TYPE: Consent RECOMMENDATION: Review the attached materials and acknowledge receipt via an affirmative vote on the Consent agenda. Once acknowledged by the City Commission, the NURB FY 18 Work Plan and Budget Proposal will be considered as part of the City of Bozeman’s FY 18 Budget. BACKGROUND: At its regular meeting held on May 2, 2017 the Northeast Urban Renewal Board approved the attached FY 18 work plan and budget. (Attachments 1-3) The total amount of budgeted funds for FY 18 is $1,141,500, including carry over from previous years. FY 18 Proposed Budget Summary: Infrastructure $ 865,800 Parks/Trails $ 5,000 Planning $ 1,000 Staff Time $ 10,000 Noticing and Administrative Services $ 3,000 Consultant Costs $ 40,000 Bond Payment $ 97,600 Designated Bond Reserve $ 119,100 Undesignated Reserve $ 0 Overall Budget Total $ 1,141,500 137 2 The Northeast Urban Renewal Board proposes a work plan and budget and submits a report on an annual basis per Section 7-15-4237 of the 2009 Montana Code Annotated (MCA): (1) An agency authorized to transact business and exercise powers under this part and part 43 shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. (2) The report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of the fiscal year. UNRESOLVED ISSUES: None at this time. FISCAL EFFECTS: At the time of publication of the FY 17 budget, the estimated value of one mill was $88,295. The current fund balance, as of May 30, 2017 is $325,731.85. (Attachment 4) If approved by the City Commission, the NURB FY 17 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s Annual Budget adoption process. A map of the District is shown as Attachment 5. Attachments: 1. Northeast Urban Renewal District FY 18 Budget; 2. Northeast Urban Renewal District FY 18 Work Plan; 3. Northeast Urban Renewal District May 2, 2017 Draft Minutes; 4. Northeast Urban Renewal District Revenues and Expenditures as of May 30, 2017; and 5. Map of the Northeast Urban Renewal District. Report compiled on: May 30, 2017 138 Revenues:2017-18 Budget TIF Bonds Estimated Beginning Balance $350,000.00 $350,000.00 FY2017 Tax Increment $120,000.00 $120,000.00 Delinquent Increment State Shared/Entitlement Interest $1,500.00 $1,500.00 Bond Proceeds $670,000.00 $670,000.00 Total Estimated Revenues $1,141,500.00 $471,500.00 $670,000.00 Expenditures Budgeted: Maintenance Trails Maintenance $5,000.00 $5,000.00 Subtotal - Maintenance $5,000.00 $5,000.00 $0.00 Infrastructure East Tamarack Street $80,000.00 $80,000.00 East Peach Street $703,800.00 $33,800.00 $670,000.00 Pedestrian Bridge/East Aspen Street $82,000.00 $82,000.00 Front Street North Ida Avenue Quiet Zone Feasibility Study Public Arts Program Subtotal - Infrastructure $865,800.00 $195,800.00 $670,000.00 Neighborhood Development Planning Depot Rehabilitation Project $1,000.00 $1,000.00 Subtotal - Neighborhood Dev Planning $1,000.00 $1,000.00 $0.00 Administration Bond Costs $20,000.00 $20,000.00 Staff Support $10,000.00 $10,000.00 Administrative Services $3,000.00 $3,000.00 Bond Repayment $97,600.00 $97,600.00 Engineering Consultant (KLJ)$20,000.00 $20,000.00 Subtotal Administration $150,600.00 $150,600.00 $0.00 Reserves Designated Bond Reserve $119,100.00 $119,100.00 Undesignated Reserve Subtotal Reserves $119,100.00 $119,100.00 $0.00 Total Expenditures $1,141,500.00 $471,500.00 $670,000.00 Northeast Urban Renewal District 139 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 1 59771 NORTHEAST URBAN RENEWAL BOARD BUDGET FY 2018 PROPOSAL TO THE BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted Ordinance No. 1655 which formally enacted the Northeast Urban Renewal Plan. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight] Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the Northeast Urban Renewal District (NURD) the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan envisions a District with diversity of housing businesses and amenities, it intends to maintain the unique ambiance and historic character of the District”. Nine principles were developed for the plan. Each of the principles has one or more goals associated with the plan, some of which specifically relate to this work plan while others represent general objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows: GENERAL GOALS:  Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.  Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive.  Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.  Harmonize commercial and industrial development with residential quality of life.  New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership.  Promote sustainable building practices and design within the district  Procure new land for park and open space  Improve landscaping in existing public spaces  Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan.  Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan. 140 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 2  Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas.  Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District BACKGROUND In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1) Parks, Trails and Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. 2017 AT-A-GLANCE In FY 2017, the Board continued to work on its infrastructure priorities. The North Wallace Avenue reconstruction, which was identified by the City’s Public Works staff as one of the community’s highest priorities, was completed. The Board agreed to commit monies to the North Wallace Avenue street improvements; this action resulted in tax increment financing monies being used to pay what would have been special improvement district assessments for those properties lying within this district and fronting along North Wallace Avenue. A portion of the project included upgrades to the railroad crossing on North Wallace Avenue to provide for safer pedestrian crossing; and the costs of those materials were borne by this district. The Board, with the assistance of KLJ Engineering, has developed special designs for East Peach Street and East Tamarack Street. Those street designs are now ready for bidding; however, the East Tamarack Street improvements will be delayed for a couple years to coordinate with the Front Street interceptor sewer construction project. Improvements to East Peach Street are to be bid before the end of this fiscal year. To fund the costs of its top priority projects, which include East Tamarack Street and East Peach Street, the Board, with the assistance of staff and consultants, undertook the issuance of TIF revenue bonds. The bonds are to be sold through a private negotiated sale, with one of the stipulations being that the bond proceeds will be drawn as needed rather than as a lump sum. In April, a TIF revenue bond in the amount of $1,446,000 was obtained from Big Sky Western Bank. At the Board’s direction, KLJ Engineering has also worked on design for the pedestrian bridge at East Aspen Street and the City-required improvements to East Aspen Street between the creek and North Rouse Avenue. The Board’s intent is to fund the work in the upcoming year outside the bond issue. The Board was approached by a local architect firm about financially participating in a Regional/ Urban Design Team (RUDAT) project. The Board recognized the benefits that could result from participating in the project and committed funds to cover a portion of the costs incurred. The Board is beginning its review of the RUDAT report. The Board continued to demonstrate its commitment to preserving the District’s historic character by monitoring any proposals that might impact historic properties, including any potential for preservation and possible re-use of the Depot. The Board is vigilant in monitoring new proposed development within the District, to ensure its compatibility with the historic mixed use character of the area. 141 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 3 MOVING FORWARD – FY2018 The Board continues to support opportunities to work with Montana Rail Link and Burlington Northern Santa Fe on preservation and rehabilitation projects for the passenger depot. In light of the fact that bonds are being issued for the top priority street reconstruction projects, this budget and work plan focuses only on top priorities, bond coverage and repayment requirements, and administrative needs. Furthermore, the Board has pledged to designate future annual tax increment payments to repay the bonds authorized by the Bozeman City Commission. NORTHEAST URBAN RENEWAL PROJECTS INFRASTRUCTURE Poor pedestrian connectivity within the District is well documented. Lack of street improvements including missing curb, gutter, pavement and sidewalks creates an unwelcoming and potentially unsafe environment for pedestrians and bicyclists. A lack of stormwater drainage facilities leads to the ponding of water in public rights-of-way, encouraging pedestrians to walk in the street and emphasizing the need for street improvements. The District has a historic mix of light manufacturing and residential uses creating a more urban environment on the streets, especially during business hours. Modest improvements to pedestrian facilities to create safer more welcoming routes for pedestrians will reduce conflict between users. The lack of street delineation/improvements and stormwater facilities has caused an unknown number of individuals to use some sections of the District as dumping grounds for unwanted appliances and furniture. Street improvements coupled with improvements to trails and parks and the landscaping of public spaces will improve conditions for pedestrians and bicyclists and reduce, if not eliminate, dumping in the public right-of-way. Making improvements to sidewalks on unimproved streets comes with some difficulty especially if elevation differences are present across the width of the right-of-way and if a need to improve stormwater drainage is warranted as well. What seems like a rather simple project turns into a large scale street improvement project. Without additional information, moving forward on these improvements is difficult, so survey and design is the first step. Regarding design, the Board recognizes that creative solutions are needed to enhance the public right-of-way for two very different user types in the District. In support of improvements to these streets, the Board has allocated a portion of the budget to the following deficient street sections in the District: East Peach Street – Sidewalks, Storm Water control, Landscaping Construction $ 703,800 KLJ Engineering has completed the design for the East Peach Street reconstruction within the existing right-of-way. In light of the issues incurred in reconstruction of North Wallace Avenue and in light of analysis of core samples in this street, it has been determined complete reconstruction is needed, including stabilizing the subgrade materials; and that has significantly increased the estimated costs. In conjunction with this street reconstruction, the City will replace the sewer main, a portion of the water main, and the stormwater system in this roadway. Bidding of the project is scheduled for May 2017, with construction to begin as soon as possible if competitive bids are received. 142 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 4 The Board has chosen to issue tax increment financing bonds to cover the costs of constructing several infrastructure improvements over the next couple construction seasons, including this one. In FY18, $710,000 of the bond proceeds will be applied to this project. East Tamarack Street $ 80,000 KLJ Engineering has completed the design work for East Tamarack Street, and this Board has identified it as one of its top priority projects to be funded through the issuance of bonds. However, the City has requested that this street reconstruction not be undertaken until 2019 so that it can be done in conjunction with the Front Street interceptor sewer construction project. In the meantime, the Board has determined that it wishes to install fiber conduit along the street frontage during the upcoming construction season since that conduit is to be located under the sidewalk and, as a result, will not be impacted by the street reconstruction. Pedestrian Bridge/East Aspen Street right-of-way between North Rouse Avenue and Bozeman Creek $ 82,000 The City has determined that if the pedestrian bridge is constructed, pedestrian facilities along East Aspen Street will be required; however, complete reconstruction of the street will not be. Board members previously identified the need for a pedestrian bridge at the terminus of East Aspen Street and the North Church Avenue trail east of North Rouse Avenue. East Aspen Street comes to an end at Bozeman Creek; and the use along this section is largely residential with a retail store (The Meat Shoppe) at the southeast corner of North Rouse Avenue and East Aspen Street and a bakery (Unknotted) further south along North Rouse Avenue. During FY11, the NURB received positive feedback from the Northeast Neighborhood Association (NENA) on the project and Gaston Engineering completed a feasibility study and cost estimates; and KLJ Engineering has updated those cost estimates. Infrastructure Total $ 865,800 Rationale: The infrastructure improvements meet Guiding Principle 1 and Goals A & B under Principle 1 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Ensure the health, safety, and security of the District” • Goal A, “Outdated or insufficient infrastructure should be repaired, replaced or otherwise improved.” • Goal B, “Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.” The spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288, MCA which states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… 143 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 5 PARKS, TRAILS AND GREENSPACE District Trails and Depot Pocket Park Area Maintenance $ 5,000 The original trail, landscaping and bench installation were completed in 2012. Landscaping maintenance, including mowing and weed spraying, is on-going. Water is provided, as needed, from an adjacent property. The Board proposes continuing the operation of the temporary irrigation system, weed control and general maintenance. Weed control and general maintenance may also be needed in other District trail areas. Parks/Trails Total $ 5,000 Rationale: The park, trail and greenspace improvements meet Guiding Principle 4 and Goals A & B under Principle 4 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Public open space is essential to a healthy and appealing urban environment” • Goal A, “Procure new land for parks and public open space” • Goal B, “Improve landscaping in existing public spaces.”- to include enhancing boulevards and public rights-of-way by planting and maintaining trees where appropriate and controlling weeds The spending of TIF funds on park and open space improvements is allowed under 7-15-4255, Authority to provide or contract for services related to urban renewal, of the Montana Code Annotated. Specifically, item (1b) states that “Every municipality shall have power to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements” NEIGHBORHOOD DEVELOPMENT PLANNING Depot Rehabilitation Project $ 1,000 The Northeast Urban Renewal Board recognizes the importance of the depot within the district. Stabilization of the depot was accomplished, and some renewed interest in reuse of the depot has been expressed. If permission can be obtained from the railroad, the Board has expressed its strong interest in taking any necessary steps to preserve and rehabilitate the structure. The Board has also expressed interest is obtaining the lease for the depot if the current lessee decides to terminate his lease agreement. Planning Total $ 1,000 Rationale: Neighborhood Development Planning meets Guiding Principle 2 and the Goal under Principle 2 of the adopted Northeast Urban Renewal District Plan: • Guiding Principles, “Balance commerce and livability in the District within the mixed- use framework” AND “Honor the unique character and vitality of the District” • Goal, “Harmonize commercial and industrial development with residential quality of life” • Implementation Action, “Where historic structures are affected by public or private development, seek out the advice and assistance of local, state, or federal historic preservation professionals for opportunities to renovate existing historic structures.” 144 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 6 This funding proposal is for Neighborhood Plan implementation activities which are meant to encourage developers to build on parcels within the Northeast Urban Renewal District. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was created to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. Board proposes to award grants to reimburse developers for costs allowable under Section 7-15- 4288, MCA, but limited to public infrastructure. These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, which grants the City the power to formulate and coordinate a workable program as specified in Section 7-15-4209, MCA, which 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 or portions thereof. Additionally, Section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… ADMINISTRATION Part-time staff and other Administrative Services $ 13,000 The Board needs staff to assist with District Plan implementation. $10,000 is to be transferred to the Economic Development Division to offset the cost of staff time used to assist the NURB with District Plan implementation. $3,000 is budgeted to cover administrative services. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” 145 Northeast Urban Renewal Board Annual Work Plan and Budget FY18 7 Bond Counsel services $ 20,000 The Board has decided it wishes to proceed with the issuance of bonds during FY17 to cover the costs of infrastructure improvements, as noted above. Most costs have been incurred this fiscal year; however, some of those costs could occur in FY18. Section 7-15-4290, MCA states “(1)(a) The tax increment derived from an urban renewal area may be pledged for the payment of revenue bonds issued for urban renewal projects or of general obligation bonds, revenue bonds or special assessment bonds issued to pay urban renewal costs described in 7-15-4288 and 7-15-4289.” Bond payment $ 97,600 It is anticipated that bonds will be sold this fiscal year to fund the infrastructure improvements previously identified in this work plan. The budget includes bond proceeds in the amount of $1.446 million. This amount may vary slightly based on the terms and interest rate of the bond sale. Based on bids received, a minimum of $92,000 will be needed annually to repay those bonds. Designated bond reserve $ 119,100 TIF bonds are required to have 130 percent of the projected annual payment held in reserve. Based on the budgeted amount for the annual repayments, $119,100 will be needed annually to fund the bond reserve. Engineering consultant services $ 20,000 While it is anticipated that most of the engineering consultant costs will be charged against the specific projects, the consultant attends Board meetings and provides other assistance to the Board; and there is a potential that the consultant will be asked to provide additional services during the upcoming year that are not specific to any of the projects listed above. When that occurs, those costs will be charged against this line item. SUMMARY: FY 18 PROPOSED BUDGET URBAN RENEWAL PROJECTS Infrastructure $ 865,800 Parks/Trails $ 5,000 Planning $ 1,000 Staff Time $ 10,000 Noticing and Administrative Services $ 3,000 Consultant Costs $ 40,000 Bond Payment $ 97,600 Designated Bond Reserve $ 119,100 Undesignated Reserve $ Overall Budget Total $ 1,141,500 146 NURB Meeting – May 2, 2017 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, May 2, 2017 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, May 2, 2017, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Jeanne Wesley-Wiese, Vice Chair Robert Pavlic Bobbi Clem John Usher Non-Voting Members: Dalton Brink Ethan Barlow Tom Noble Commissioner Liaison: I-Ho Pomeroy Staff: Jessica Johnson, Neighborhood Coordinator Robin Sullivan, Recording Secretary Guests: Chris Nixon, 719 North Wallace Avenue Maurice Quanbeck, 520 North 11th Avenue Dan Doehring, 704 North Church Avenue Dennis Taylor, Interim City Manager Call to Order – Vice Chair Jeanne Wesley-Wiese called the meeting to order at 6:33 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – No comment was received under this agenda item. Minutes – April 4, 2017. It was moved by John Usher, seconded by Bobbi Clem, that the minutes of the meeting of April 4, 2017, be approved as submitted. The motion carried on a 3-0 vote. Discussion/Action Items – Discussion regarding Bozeman Creek pedestrian bridge project. Jeanne Wesley-Wiese noted that Shane Strong has sent copies of the bridge design to the Board. She also 147 NURB Meeting – May 2, 2017 2 noted that Martha Drysdale has written a letter to the Board voicing opposition to the pedestrian bridge, mainly because of the impact that strangers will have on the residents of this currently quiet street. She concluded by stated the RUDAT supported the pedestrian bridge. Bobbi Clem gave an overview of the RUDAT process, noting that she and Jeanne Wesley- Wiese served on the steering committee for that project. She noted the architects involved in the process have submitted a document that not only provides a vision of what is possible, they have identified a number of items this Board would be responsible for pushing forward. She stated some of those suggestions include increasing the size of this TIF district, since it was the core of the RUDAT process; possibly increasing the size of this Board and assuming additional duties to move the RUDAT process forward; and trail projects that include an additional trail along Bozeman Creek and an extension to the Story Mill trail. Discussions with City staff have revealed that increasing the size of the district is not a viable option because the result would be to take too much money out of the general funds for the various local entities. Responding to Commissioner Pomeroy, Jeanne Wesley-Wiese stated that the most recent survey of area residents showed 27 in favor and 12 against the pedestrian bridge. The previous survey showed few residents in opposition. She then stated that Lucia Stewart, who owns the property on the west side of the creek that would be most impacted by installation of the bridge, still supports it. She then noted that she and Chris Nixon walked down the street to see what the concerns are and how much would be impacted by the installation of a sidewalk. Responding to Jessica Johnson, Jeanne Wesley-Wiese stated one of the issues emphasized in the RUDAT report is the area’s natural feature and the need to utilize it for all of the people in the district. She characterized Bozeman Creek as a beautiful natural feature with no pedestrian bridge across it. Bobbi Clem questioned the need for a third bridge when two are only a few blocks apart. One of those crossings is on a street with a bike lane and the other is on a street that has a stop light to assist in crossing North Rouse Avenue. Jeanne Wesley-Wiese responded that the pedestrian bridge has been an approved project for several years. She noted this discussion has been placed on the agenda because of the concerns expressed by people along East Aspen Street. Bobbi Clem voiced her interest in seeing a connection between the library trail and the Story Mill trail, suggesting negotiations with the railroad to cross the tracks and then extending the trail along the creek. Jeanne Wesley-Wiese stated she has lived in this area for forty years and finds that she has to walk in the street because there are no sidewalks along many of the streets, including East Tamarack Street. Her preference is to walk in a more natural setting where there is no traffic. Responding to questions from Dalton Brink, Jeanne Wesley-Wiese confirmed that the pedestrian bridge is the fifth priority in the listing of projects to be covered by bond proceeds, with East Peach Street, East Tamarack Street, Front Street and North Ida Avenue ahead of it. Jessica Johnson stated that the projects on the list have been approved by the Commission; however, this Board may choose not to proceed with all of them. 148 NURB Meeting – May 2, 2017 3 Dalton Brink voiced his interest in looking at the RUDAT report prior to making any final decisions on this project. Bobbi Clem noted that, in light of recent controversial development projects, the Mayor has voiced an interest in seeing projects that will not generate a controversy. As a result, she suggested that the board step back from the bridge at this time and look at implementing some of the RUDAT recommendations. John Usher acknowledged the pressure points that accompany this project, which is the fifth priority on the list of items funded through the bond issue. He sees the RUDAT report as a red herring and stressed that this Board must concentrate on getting its street projects done since the bonds have just been awarded. Bobbi Clem suggested that a RUDAT steering committee be formed to keep that process alive, keeping it separate from this Board. Jessica Johnson reminded the Board that they committed $15,000 in TIF monies to assist in funding the project; and that made them one of the biggest contributors. It is important to look at this report since it is theirs, recognizing that not all of the recommendations are realistic. She suggested, however, that they look at the report and identify three things they want to look at more closely. Jeanne Wesley-Wiese concluded discussion on this agenda item, noting that monies have been set aside for the pedestrian bridge since shortly after this Board was formed. Discussion regarding previous Board direction regarding the quiet zone in work plan; directing staff to initiate CDBG application process; and use of the old Depot. Responding to Jeanne Wesley-Wiese, Interim City Manager Dennis Taylor stated that under the new CDBG guidelines, cities over 50,000 population receive entitlement monies; those under 50,000 compete through the application process. Bobbi Clem reported that she contacted the railroad regarding the old depot. It is currently being leased by Treasure State Oil for storage, and that use will likely continue even though their property immediately across Front Street has been sold and operations moved to Belgrade. She stated Montana Rail Link and Burlington Northern Santa Fe are willing to do a long-term lease. Depots are not their primary business focus; but they do have restrictions on their use, including a prohibition on restaurants and bars, and they require fencing from the railroad tracks. She asked the railroad about the Board leasing the depot or her personally leasing and managing it; however, they indicated that it will remain as storage at this time. Robin Sullivan stated this item was placed on the agenda because several months ago the Board directed staff to proceed with these three items. At that time, Brit Fontenot cautioned that staff would be unable to address any of them for a minimum of ninety days and these items keep getting pushed out month by month. She is seeking Board direction on whether these items are to remain on staff’s list of things to do or if they are to be removed. Responding to Dalton Brink, John Usher reviewed the purpose of the quiet zone and why the Board had set aside monies for a study. He stressed the Board was not to fund the entire cost, but was to serve as charge leader for the entire community. He then questioned whether the 149 NURB Meeting – May 2, 2017 4 Board should seek someone else to prepare a CDBG application for the quiet zone study or if it is easier for staff to do it. Jessica Johnson stated that in Missoula, she worked with grant programs. She suggested that a CDBG application for use of the depot as a community center might be competitive; however, she agreed that an application to fund a quiet zone study would probably not fare so well. She then offered to contact the person in charge of the CDBG program and report back to the Board at next month’s meeting. Jeanne Wesley-Wiese stated that, while that information would be beneficial, she feels it is important to develop a plan before directing staff to initiate a grant application. Final report on RUDAT process and findings. Bobbi Clem stated the big decision at this time is how to implement items identified in the final report. Based on the discussion earlier in this meeting, it appears that work should be done through a steering committee. Jeanne Wesley-Wiese stated it is important for this Board to remain informed; however, she stressed that it cannot take on those additional duties. She then noted that she is unable to access the RUDAT plan on line; and she needs to review it before determining if there are any parts of it that this Board should be involved in. John Usher characterized the RUDAT report as very well meaning and pie in the sky. He acknowledged that many of the ideas, or a variation of them, appear doable; and he is interested in having a plan that can be pushed against. He supports the idea of a steering committee, noting that this Board does not need to get distracted from what it is currently doing. Bobbi Clem stated she will continue to serve as the point person for the RUDAT project and will serve as the connection between the steering committee and this Board. Report on bid opening for the East Peach Street reconstruction project. A memo from Shane Strong dated May 2, 2017, revealed that the bids for the East Peach Street project came in lower than projected. The low bid, from JR Civil LLC, is in the amount of $856,246.92; and the street improvement portion is $563,306.63, which is $83,493.37 below the engineer’s estimate. Updates on current projects. There was no update on current projects since Shane Strong was absent. Update on financial status of NURB fund. Robin Sullivan distributed copies of the revenues and expenditures for Fiscal Year 2016-17, noting there is little change since last month. Budget and work plan for 2017-2018 fiscal year. Robin Sullivan distributed copies of the budget and work plan that she had submitted at last month’s meeting. She asked if the Board has any changes to the budget and work plan, since it must be adopted at this meeting to 150 NURB Meeting – May 2, 2017 5 meet the mid-May presentation of the City Manager’s budget recommendation to the City Commission. John Usher noted that the paragraph on Page 2 of the work plan pertaining to the RUDAT project needs to be revised, and suggested that it be done in an open-ended manner that gives the Board flexibility. Robin Sullivan responded that she left that paragraph incomplete because the final report on the RUDAT was to be discussed at this meeting, and would be the basis on which to complete the paragraph. She proposed that, based on the RUDAT discussion, the sentence read “The Board is beginning its review of the RUDAT report.” The Board agreed with the proposed change. In light of the favorable bids received for the East Peach Street project, Robin Sullivan voiced an interest in reducing both the amount budgeted for the project and the amount to be funded through bonds by $40,000, contingent on Brit Fontenot’s ability to successfully negotiate for that draw. Jeanne Wesley-Wiese expressed concern that the $82,000 budgeted for the pedestrian bridge and East Aspen Street will not cover the new projected costs of $80,000 for the bridge and $12,000 to $15,000 for the sidewalk. Robin Sullivan asked the Board to identify which line items it wishes to reduce to generate the additional monies for the bridge project, cautioning that those budgeted for the bonds cannot be changed. As a result of reviewing the proposed budget, the Board determined it cannot move any monies. It was moved by Bobbi Clem, seconded by Jeanne Wesley-Wiese, that the Board approve the work plan and budget for Fiscal Year 2017-2018, as revised in the discussion. The motion carried on a 3-0 vote. Set agenda for June 6, 2017 meeting or cancel meeting. Items to be included on the June 6 agenda, in addition to the standard agenda items, are: continued discussion on the pedestrian bridge, continued discussion on the RUDAT report, an update on possible CDBG funding options, engineering reports from Shane Strong on current projects, and selection of the Chair and Vice Chair for the remainder of the year. FYI/Discussion (formerly Neighborhood News). There was no discussion under this agenda item. Adjournment – 8:25 p.m. There being no further business to come before the Board at this time, Vice Chair Wesley-Wiese adjourned the meeting. Jeanne Wesley-Wiese, Vice Chair Northeast Urban Renewal Board City of Bozeman 151 152 153