HomeMy WebLinkAboutStaff Report - North Park Planning Board ResolutionResolution of Recommendation on the North Park Urban Renewal District Plan Page 1 of 5
Staff Report for Resolution of Recommendation on the North Park Urban Renewal
District Plan Application
Public Meeting Date: Planning Board meeting is July 18, 2017.
Public Hearing Date: City Commission hearing August 28, 2017.
Project Description: The urban renewal plan for the North Park Urban Renewal District.
Project Location: The North Park urban renewal area is located to the north and west of the
Interstate 90 – North 7th Interchange and is generally bound by Interstate
90 to the west, Red Wing Drive to the north and east, Flora Lane and
North 7th Avenue to the east, and Mandeville Lane to the south. The area
includes approximately 250 acres. The property is legally described as a
tract of land comprised of the SW 1/4 of Section 36, less the Lewis &
Clark Commercial Subdivision, Plat J- 376, less Minor subdivision 320,
Lot 1 and including Tract 2, COS 1723 and the W1/ 2, SE 1/4 of Section
36, less the Gordon Mandeville State School Section Subdivision, TIS,
R5E, PMM, Gallatin County along with adjacent public rights-of-way and
approximately 1.1 linear miles of Burlington Northern / Montana Rail
Link right-of-way and COS 2153, along with and subject to all easements
of record or apparent on the ground.
Recommendation: Approval of the Resolution of Recommendations
Recommended Motion: Having reviewed and considered staff and consultant materials, public
comment and all the information presented, I move to approve the
Resolution of Recommendations, as the Planning Board’s written
recommendation to the Bozeman City Commission, adopting the findings
of the North Park Urban Renewal District Plan’s conformance with the
Bozeman Community Plan and that the area of the North Park Urban
Renewal District is zoned for uses in accordance with the Bozeman
Community Plan.
Report Date: Friday, July 12, 2017
Staff Contacts: Chris Saunders, Policy and Planning Manager
Shawn Koltz, Development Review Engineer
Brit Fontenot, Director of Economic Development
Agenda Item Type: Action (Legislative)
Resolution of Recommendation on the North Park Urban Renewal District Plan Page 2 of 5
Summary
The North Park Urban Renewal Plan aligns with the City’s economic development priorities to facilitate
mid- and high wage job growth and industry diversification. Community partners work together in
support of the primary tenets of the City’s recently adopted 2016 Economic Development Strategy:
1. Retention and growth of existing businesses, while welcoming and encouraging new businesses;
2. Investment in infrastructure to drive economic development; and
3. Education and workforce development initiatives to provide businesses with qualified workers.
(Bozeman Economic Development Strategy Update, 2016)
Background
Established in 2006, the Mandeville Farm Tax Increment Financing Industrial District (TIFID), also
known as the North Park Industrial district was established to enable the use of incremental increases in
property tax revenues to encourage the attraction and retention of value-adding industries. The district,
however, failed to attract private investment, or contribute to the implementation of Bozeman’s
economic development strategy. On June 13, 2016, as part of the annual budget approval process, the
City Commission reviewed the district’s work plan and budget for FY 17. At that time, the City staff
voiced its concerns and options for the area going forward.
Since June, staff and the property owners, North Park Development Partners and the State of Montana
through the Department of Natural Resources and Conservation, have discussed the viability of the
existing industrial district. Part of that conversation included a discussion of the value of sunsetting the
existing industrial TIF and establishing a new district in keeping with the types of development
envisioned on the property. The participants in these discussions agreed that the establishment of an
urban renewal district with a TIF provision, emphasizing value-adding industries, is more appropriate
for the proposed development than the existing industrial district.
This approach acknowledges that economic development is a long-term proposition and maintains the
opportunity to use tax increments to attract and retain value-adding commerce. Therefore, the City of
Bozeman is proposing to sunset the existing industrial district and replace it with an urban renewal
district.
The Mandeville Farm TIFID is set to expire in 2021. The City of Bozeman plans to “sunset” (terminate)
the Mandeville Farm TIFID, and instead create the North Park Urban Renewal District (URD) to
prevent and eliminate blighted areas per §7-15-4202 MCA, reduce poverty in the City of Bozeman, and
deliver efficient public services through the following:
The investment in public infrastructure in support of economic development, with a focus on
value-adding commerce
The attainment of urban density to achieve greater efficiency in the delivery of public services
The facilitation of live-work opportunities for workforce housing in proximity to places of
employment in value-adding commerce
The creation of opportunities for livable wage jobs in value-adding commerce
Resolution of Recommendation on the North Park Urban Renewal District Plan Page 3 of 5
While a URD offers greater opportunity for innovation than a TIFID, a determination of blight must be
made prior to establishing a district. The North Park area is within the urban core, but the Interstate 90
corridor and the Montana Rail Link line, which border the property, serve as physical barriers to the
desired development and uses. The North Park area can be described as blighted under the Montana
Urban Renewal Law, because its geographic isolation “substantially impairs or arrests the sound
growth” of the municipality per §7-15-4201 MCA, making it eligible for designation as a URD.
Lack of appropriate infrastructure, including water, sewer, stormwater, transportation and
communication networks, under-developed ingress and egress, inappropriate uses of land or building,
and faulty lot layout in relation to size, adequacy, accessibility, or usefulness, can be remedied by
investment in infrastructure using tax increment financing in a URD.
City Commission action to “sunset” (terminate) the Mandeville Farm TIFID, and create the North Park
Urban Renewal District (URD) would occur in subsequent steps in the process when the City
Commission adopts the urban renewal plan by ordinance.
On April 10, 2017, with the adoption of Resolution 4792, the findings of blight and establishing the
necessity of rehabilitation and redevelopment of the North Park area, the Commission took the first step
in the process of creating a URD and expanding the existing boundaries of the North Park TIFID per 7-
15-4210 MCA.
Following this decision, the City has developed the Bozeman North Park Urban Renewal District (URD)
plan, and has consulted with the affected taxing jurisdictions of Gallatin County and Bozeman School
District #7. After the Planning Board review and recommendation as to the conformance of the URD
plan and accordance of the zoning within the area of the URD with the Bozeman Community Plan,
notice of the public hearing before the City Commission with be given. This notice will include a
certified notice to all property owners, and a formal notice to meet and consult to the affected taxing
jurisdictions.
The City Commission action to “sunset” (terminate) the Mandeville Farm TIFID, and create the North
Park Urban Renewal District (URD) would occur with the City Commission’s final adoption of the
ordinance.
Analysis and Findings
Analysis and resulting recommendations are based on the entirety of the application materials, municipal
codes, standards, and plans, public comment, and all other materials available during the review period.
Collectively this information is the record of the review. The analysis is a summary of the completed
review.
The purposes of this Planning Board review of the North Park Urban Renewal District Plan are: to
consider all relevant materials to determine whether the plan is in conformance with the Bozeman
Community Plan; and the zoning of the area of the North Park Urban Renewal District to determine if
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the land is zoned for uses in accordance with the Bozeman Community Plan; and to make a written
recommendation on such to the City Commission.
Chapter 5 of the North Park Urban Renewal District Plan describes the purpose and intent of the Plan to
be implemented through the goals and associated strategies of the Plan. The stated goals are:
Goal #1 Promote Economic Development, with a Focus on Value-Adding Commerce
Goal #2 Invest in Efficient Delivery of Public Infrastructure
Goal #3 Support Planned Urban Density and Design
Chapter 4 includes a synopsis of the review of the conformance of the North Park Urban Renewal
District Plan to the Bozeman Community Plan, and in Appendix A is found the more extensive review
of that conformance.
The North Park Urban Renewal District Plan has been found to be in conformance with the Bozeman
Community Plan; and the of the North Park Urban Renewal District has been determine to be zoned for
uses in accordance with the Bozeman Community Plan.
Zoning and Growth Policy
Zoning Designation and Land Uses:
The project site is designated as “M-1 Light Manufacturing” “M-2 Manufacturing and Industrial” zones.
The intent of each of these zones is established in Chapter 38, Unified Development Code, BMC and is
excerpted below.
From Section 38.12.010, BMC
A. The intent and purpose of the industrial zoning districts is to establish areas within the city that
are primarily industrial in character and to set forth certain minimum standards for development within
those areas. The purpose in having more than one industrial district is to provide opportunities for a
variety of employment and community service functions within the community while providing
predictability. There is a rebuttable presumption that the uses set forth for each district will be
compatible with each other when the standards of this chapter are met and any applicable conditions of
approval have been satisfied. Additional requirements for development apply within overlay districts.
1. The intent of the M-1 light manufacturing district is to provide for the community's needs
for wholesale trade, storage and warehousing, trucking and transportation terminals, light
manufacturing and similar activities. The district should be oriented to major transportation
facilities yet arranged to minimize adverse effects on residential development, therefore, some
type of screening may be necessary.
2. The intent of the M-2 manufacturing and industrial district is to provide for heavy
manufacturing and industrial uses, servicing vocational and employment needs of city residents.
Adopted Growth Policy Designation:
The property is designated as “Industrial” in the Bozeman Community Plan. The Plan indicates that this
classification provides areas for the uses which support an urban environment such as manufacturing,
warehousing, and transportation hubs. Development within these areas is intensive and is connected to
significant transportation corridors. In order to protect the economic base and necessary services
Resolution of Recommendation on the North Park Urban Renewal District Plan Page 5 of 5
represented by industrial uses, uses which would be detrimentally impacted by industrial activities are
discouraged. Although use in these areas is intensive, these areas are part of the larger community and
shall meet basic standards for landscaping and other site design issues and be integrated with the larger
community. In some circumstances, uses other than those typically considered industrial have been
historically present in areas which were given an industrial designation in this growth policy. Careful
consideration must be given to public policies to allow these mixed uses to coexist in harmony.
Noticing and Public Comment
Notice was published in the Bozeman Daily Chronicle on July 2, 2017. Notice has been provided at least
15 and not more than 45 days prior to the Planning Board public meeting. The City Commission public
hearing is scheduled on August 28, 2017. Certified notice to all property owners, and a formal notice to
meet and consult to the affected taxing jurisdictions shall be provided at least 15 and not more than 45
days prior to the City Commission public hearing
Owner Information and Reviewing Staff
Owners: North Park Development Partners; and
State of Montana Trust Land managed by the Trust Land Management Division (TMLD)
of the Montana Department of Natural Resources and Conservation (DNRC)
Applicant: Brit Fontenot, Director of Economic Development
Consultants: Lanette Windemaker, AICP; and
Janet Cornish, Community Development Services of Montana
Report By: Chris Saunders, Policy and Planning Manager
Fiscal Effects
The North Park TIFID currently has a deficit of $20,539 and an anticipated FY 16/17 increment of
$7,900 expected in May 2017. This increment will be applied to the existing debt leaving an estimated
deficit balance of $12,639 for FY 17/18. If nothing occurs in the existing District for two fiscal years, it
is likely that the District will have cleared the debts associated with the original master planning of the
site. If the North Park TIFID is sunsetted as proposed, a plan will be established to repay the last of the
TIFID debt and establish the URD with a base year of 2017. It is nearly impossible to assess the future
increase in taxable value that may or may not occur in the urban renewal district.
Attachments:
1. DRC Engineering Memo;
2. Resolution of Recommendation; and
3. North Park Urban Renewal District Plan