HomeMy WebLinkAbout08-21-17 City Commission Packet Materials - A3. Resolution 4781, Midtown Urban Renewal District Action PlanCommission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Economic Development Specialist
SUBJECT: Resolution 4781 Adopting the Midtown Urban Renewal District Action Plan
MEETING DATE: August 21, 2017
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution 4781.
RECOMMENDED MOTION:
“I move to adopt Resolution 4781.”
BACKGROUND: The 2015 Bozeman Midtown Urban Renewal District Plan provided broad goals and strategies for addressing conditions of blight within the Midtown Urban Renewal District (MURD) and encouraging private investment within the District. Since the MURD, created in 2006, has four remaining years to identify its first major project for bonding, identifying specific projects to maximize public benefit for the MURD and the City is essential. Identifying these projects and how they are used to attract private investment is the purpose of the Midtown Urban Renewal District Action Plan (the “Action Plan”). The Action Plan itself says it best: “The intent of this Plan is to attract targeted private investment by leveraging the market potential of the Midtown District, and removing barriers to development through strategic infrastructure investments and incentives. This is especially important for this District as the city does not own any property and is reliant on cooperation and collaboration with property owners to realize the vision for this area.”
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The Action Plan identifies several high-value potential development nodes and specifies infrastructure projects that could incentivize the redevelopment of those nodes. Additionally, the Action Plan promotes targeted private investment with a specific vision for the corridor, based on the values of the urban renewal plan, which focuses on an increase in housing units and the promotion of urban density mixed use redevelopment. The Action Plan prioritizes selecting projects that promote specific private investment first. The Action Plan also identifies regional investments serving the broader community and overall improvement of the District that could be made without coordination with private investment. In the next four years, these projects could be undertaken in the absence of private investment, or if they are specifically prioritized by the Urban Renewal Board or the City Commission.
FISCAL EFFECTS: None. While the plan lists millions of dollars in potential projects, adoption of the plan does not direct the specific funding of any projects.
ATTACHMENTS: Resolution 4781 Midtown Urban Renewal District Action Plan
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COMMISSION RESOLUTION NO. 4781
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA ADOPTING THE MIDTOWN URBAN RENEWAL DISTRICT ACTION
PLAN.
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
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
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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 projects and programs 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
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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.
WHEREAS, given the finite nature of public resources, a plan to coordinate public and
private investments to meet the objectives of the Bozeman Midtown Urban Renewal Plan is in
the public interest,
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
The Midtown Urban Renewal District Action Plan, attached as Exhibit A and on file in the City
Clerk’s Office, is hereby adopted.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 21st day of August, 2017.
CARSON TAYLOR Mayor
ATTEST:
__ ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney
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ACTION
PLAN
August 2017
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Bozeman Urban Renewal Action Plan August 2017
Acknowledgements
Bozeman City Commission
Mayor Carson Taylor
Deputy Mayor Cynthia Andrus
Commissioner Chris Mehl
Commissioner I-Ho Pomeroy
Commissioner Jeff Krauss
Midtown Urban Renewal Board
Commissioner Jeff Krauss, Commission Liaison
Andrew Cetraro
Susan Fraser
Austin Rector
Carl Solvie
Bill Fogarty
Kevin Cook
Scott Hedglin
Josh Palmer
Nick Rodgers
Economic Development Department
Brit Fontenot
David Fine
Prepared By
Leland Consulting Group, Inc.
610 SW Alder Street, Suite 1200
Portland, Oregon 97205
www.lelandconsulting.com
In partnership with Sanderson Stewart, A&E Architects, Rick Williams Consulting, and DHM Design
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Bozeman Urban Renewal Action Plan August 2017
Table of Contents
Introduction ........................................................................................................................................................ 1
Executive Summary .......................................................................................................................................... 2
Strategic Infrastructure ................................................................................................................................. 2
Incentives ........................................................................................................................................................ 3
Targeted Private Investment ....................................................................................................................... 4
Background ........................................................................................................................................................ 5
Establishment of the Urban Renewal District and Plan ......................................................................... 5
Design and Connectivity Plan for North 7th Avenue Corridor ............................................................. 6
B-2M Zone and New Parking Minimums .................................................................................................... 7
Opportunities and Constraints ........................................................................................................................ 8
Market Trends ................................................................................................................................................. 8
Barriers to Private Development ............................................................................................................... 11
Embrace Infill Development ...................................................................................................................... 12
Midtown District Vision .................................................................................................................................... 14
Why Midtown? ............................................................................................................................................. 15
District Vision ................................................................................................................................................. 15
District Assets................................................................................................................................................. 16
District Opportunities ................................................................................................................................... 17
Future Development ................................................................................................................................... 20
Action Plan Implementation ......................................................................................................................... 26
Strategic Infrastructure ............................................................................................................................... 26
Incentives ...................................................................................................................................................... 27
Targeted Private Investment ..................................................................................................................... 28
Attachment A: Site Concepts ........................................................................................................................ 1
Attachment B: Midtown Project List .............................................................................................................. 2
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Bozeman Urban Renewal Action Plan August 2017 / 1
Introduction
The City of Bozeman is a university town with a vibrant downtown,
growing industries, and immediate access to mountain and outdoor
activities. It is a magnet for young talent and families, and is
therefore projected to continue to grow at an annual rate of 4.2
percent. Understandably the community wants to be thoughtful
about this growth in order to manage the cost of living, especially for
housing, and retain its small town appeal. At the same time, the City
desires more compact form with higher densities to reduce
congestion and encourage active transportation uses, which reduce
environmental impacts. Focused redevelopment of the Midtown
District, with a deliberate emphasis on new, urban density housing
construction, is an important strategy to achieve these community
goals regarding overall growth.
Redevelopment of underutilized areas, such as the Midtown District,
is challenging compared to traditional “greenfield” development:
new construction on vacant land that typically involves one
developer on one large parcel with minimal constraints such as
existing buildings or challenging road connections. Due to the
difficult nature of infill development, public and private collaboration
is critical to achieve results. Ideally, the public partner will identify
and alleviate barriers and risk, and the private partner will invest in
the area and increase property values and provide desired services.
This Action Plan provides guidelines and actions for the City to
implement their part of the partnership and garner the desired
private infill development within the District.
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Bozeman Urban Renewal Action Plan August 2017 / 2
Executive Summary
The intent of this Plan is to attract targeted private investment by leveraging the market potential
of the Midtown District, and removing barriers to development through strategic infrastructure
investments and incentives. This is especially important for this District as the city does not own
any property and is reliant on cooperation and collaboration with property owners to realize the
vision for this area. The following information details the type of infrastructure anticipated and
the type of private investment that is desired.
Strategic Infrastructure
One of the most important roles for the city is to construct strategic infrastructure projects that
benefit several property owners and the broader community. This is especially important for infill
development where the perceived value of these types of properties is that the infrastructure
(sewer, water, roads) are built to current standard as there was once a use on the property.
Proactively determining the status of infrastructure quality, if upgrades are required and the cost,
is necessary to engage interest in development.
A detailed list of identified projects within the Midtown District are provided in Attachment B.
The projects are separated into two categories: Regional and Private Development as they
each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a
direct message to developers regarding the level of investment the city is willing to make in this
District.
Regional Investments
The proposed regional investments are projects within the District that benefit the broader
community through the provision of key transportation connections or amenities. These projects
meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2)
improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects
can occur independent of private property owner engagement. While these projects serve the
broader community, they also indirectly incentivize private development with the overall
improvement of the District.
Private Development Investments
The proposed private development infrastructure is identified through different zones of private
property that will benefit from the necessary infrastructure upgrades. There is no prioritization of
the improvements as it is dependent on private party engagement, which can’t be anticipated.
However, by determining these projects in advance, staff can clearly communicate to private
property owners the type and cost of infrastructure that would be built that serves as direct
incentive for them to consider redevelopment of their property.
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or rights to construct a public facility
that may be necessary to make the desired improvements. In all public-private partnerships this
transparent information is necessary to ensure sound community investments.
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Bozeman Urban Renewal Action Plan August 2017 / 3
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
Investment Timing
The urban renewal statutes allow for the bonding of substantial public projects within 14 years of
establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th
year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission
should be cognizant of this timing when evaluating project investments and in communications
with private developers. To leverage this financing opportunity, staff should determine projects
to consider for bonding by Q1 2019.
Incentives
Infrastructure Projects
Infrastructure projects can often present a significant cost for developers. Infill projects are
especially complex as often a small lot will face outsized regional infrastructure costs due to
“upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can
off-set a significant cost barrier of a regional project that is needed to allow the redevelopment
of an individual lot to move forward. See Attachment B for a detailed list of recommended
projects and costs based on specific site analysis case studies within Midtown and collaboration
with public works.
Off-Set Project Costs
Targeted incentives can close the financial gap in making a project move forward. As discussed
previously, City staff and private developers should work together in a transparent manner to
identify that an incentive addresses a clear “but for” need of support to off-set costs to
encourage the targeted private investment for this area. Future development providing much
needed affordable housing should especially be considered to receive incentives. An allocation
of incentives for SDC off-sets and demolition costs have been included with the list of projects in
Attachment B.
Streamlined Permitting
Streamlined permitting is always cited as a top incentive for developers to attract investment. As
discussed, infill development consists of risks regarding untested markets and uncertainty
regarding infrastructure requirements. Both risks can result in costs not anticipated by a
developer when initially pursuing a project. City staff can provide critical support in removing
these uncertainties by providing transparent information as early as possible regarding
infrastructure needs, as well as unified direction regarding desired building design and density.
Creating a “Midtown team” of staff from various departments provides a consistent group of
staff that comprehensively understands the infrastructure, transportation and building design
issues in the area. Such a team can serve as a powerful resource to proactively achieve the
desired development in collaboration with the developer, and sends a clear signal that this
District is a priority to the community.
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Bozeman Urban Renewal Action Plan August 2017 / 4
Targeted Private Investment
The overall objective of the Midtown Urban Renewal District is to create a more vibrant place
with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals
of the most recently adopted Urban Renewal Plan include:
• Promote Economic Development
• Improve Multimodal Transportation
• Improve, Maintain, and Support Innovation in Infrastructure
• Promote Unified, Human Scale Urban Design
• Support Compatible Urban Density Mixed Land Uses
To achieve these goals, targeted future development should include the following elements:
• Infill. The intent of urban renewal is to remove blight to improve an area for the entire
community benefit. Remodeling of existing structures or infill of underutilized lots is the priority
of this Plan. As discussed, infill development is more challenging than vacant greenfield
development and warrants focused investment of staff time and resources.
• Increased building density. Increased building density increases the number of people in the
District, which helps create the desired active pedestrian environment. More density of
buildings grouped together in districts is especially desired to encourage pedestrians to
explore adjacent buildings. Buildings that are separated by large parking area or vacant lots
will impede pedestrian movement.
• Encourages multimodal transportation. New projects should provide amenities such as
adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the
Urban Renewal District should invest in infrastructure projects such as bike lanes and signals
or covered bus stops to make alternative transportation options visible, safe, and desirable.
• Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented
environment the District must consist of uses that are a frequent destination by residents.
Retail amenities that are experience based such as restaurants or ice creams shops are
desired because they generate activity and are more resilient to emerging ecommerce
trends. Such amenities will also attract more housing investment.
• Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a
specific use that is desired. The Midtown District zoning is intended to accommodate more
dense housing projects with potential access to retail amenities nearby.
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Bozeman Urban Renewal Action Plan August 2017 / 5
Background
The Midtown District consists of property along the North 7th Avenue corridor between Main
Street at the south end of the District and the railroad tracks to the north. The City has taken
deliberate steps to foster the infill and redevelopment of properties along the North 7th Avenue
corridor. The current Action Plan builds off this prior work to further focus City efforts to continue
to realize investment in the District.
Establishment
of the Urban
Renewal District
and Plan
In November 2006, City
Commission adopted an
ordinance to create the North
7th Avenue Urban Renewal
District and adopted the North
7th Avenue Urban Renewal
District Plan with a provision for
tax increment financing, to be
calculated using a base year
of 2006. In November 2015,
the City adopted a revised
Urban Renewal Plan including
the expanded urban renewal
areas and renamed the
district to Midtown. The Plan
also adopted the following
goals that set the foundation
for the envisioned
development in the District:
• Promote Economic
Development
• Improve Multimodal
Transportation
• Improve, Maintain,
and Support
Innovation in
Infrastructure
• Promote Unified,
Human Scale Urban
Design
• Support Compatible
Urban Density Mixed
Land Uses
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Bozeman Urban Renewal Action Plan August 2017 / 6
Design and Connectivity Plan for North 7th Avenue Corridor
The Connectivity Plan
adopted in 2006
defines specific
gateway treatments
and streetscape
improvements to
balance the needs of
pedestrians, bicyclists,
and automobile users
along North 7th
Avenue. This work has
largely been
implemented
between Oak and
Durston with improved
or new sidewalks and
distinct streetlights that
provide an identifying
definition to the
District.
The remaining section
of North 7th Avenue
between Durston Road
and Main Street will also
include enhanced
paving and design as
shown in the image at
right. This streetscape
defines the anticipated
modern design of the
corridor which is distinct
from the more historic
feel of the downtown
district. The low-
maintenance
hardscape design is
appropriate for winter
months to
accommodate snow
removal while keeping
the streetscape inviting
during the warmer
months.
Future streetscape improvements south of Durston Road. The modern paving
and furniture reflect the mid-century design of the original development along
the corridor.
Completed streetscape improvements north of Durston Road. The blue
streetlights reflect ties to Montana State University.
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Bozeman Urban Renewal Action Plan August 2017 / 7
B-2M Zone and New Parking Minimums
The City created the B-2M zoning designation during the first phase of the update of the Unified
Development Code (UDC) in the spring 2016. The previous B-2 zoning did not encourage the
redevelopment of the Midtown corridor in the manner envisioned in the area’s adopted
neighborhood plan, the Design and Connectivity Plan for the North 7th corridor (2006). This plan
specifically called for mixed-use development with “commercial services on the main level
fronting the corridor, with residential uses above and behind.” The previous B-2 zoning contained
yard and setback provisions that made the development of buildings fronting the street difficult,
especially given the shallow lots along the corridor.
The new B-2M code allows new buildings to be built near the street, encourages ground floor
commercial, and requires that parking occur on the side or the rear of structures. The goal is to
enhance the pedestrian experience along the corridor by reducing the amount of parking in
front of and around buildings. These changes were consistent with two goals of the 2015
Midtown Urban Renewal Plan included promoting “Human Scale Urban Design” and supporting
“Urban Density Mixed Land Uses.”
The City Commission will soon consider reduced parking minimums for the B-2M zone that
remove a barrier to development and foster the envisioned development form throughout the
District.
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Bozeman Urban Renewal Action Plan August 2017 / 8
Opportunities and Constraints
The Midtown District is ripe for redevelopment as identified in the market trends, and is why this
Action Plan was created. While the trends bode well for Midtown, there are current barriers that
can be addressed to incentivize new private investment. Finally, it should be recognized that infill
development is challenging and must be approached differently than traditional greenfield
development in order to achieve the goal of redevelopment throughout the District.
Market Trends
There are several market trends driving infill development across the country. These trends,
outlined below, suggest there is a strong opportunity for development within the Midtown
District.
Walkability
Current market trends indicate that people of
all ages desire access to an urban lifestyle
with housing, restaurants, entertainment and
retail within pedestrian proximity of each other.
This urban lifestyle does not mean that an entire
community must conform to urban densities.
What is important is that some element of an
urban lifestyle through a healthy Main Street,
traditional downtown, or denser town centers in
suburbs is provided.
This type of urban lifestyle is often measured by
developers using a “walk score” that analyzes
population density and road metrics such as
block length and intersection density, and
access to amenities to summarize pedestrian
friendliness. As indicated below, the Midtown
District is more pedestrian friendly than many
parts of Bozeman and can currently cite Walk
Scores of 91 at its southern end and 51 at its
northern end. Considering the limited amenities, such as restaurants, grocery stores and retail,
this relatively strong score is likely based on the existing block configurations adjacent to the
North 7th corridor. This suggests that with targeted investment of housing and amenities, the
Midtown District is ripe for redevelopment into the type of environment desired by the market.
Commute Patterns
In addition to this desired urban lifestyle, people are wanting a shorter commute and often
choose to live and work in the same area if possible. Emphasizing this trend is the preference of
many Millennials to not drive if they don’t have to. As reported in Urban Land Institute (ULI)
Emerging Trends 2016, miles traveled by car for those people 34 years old or younger are down
23 percent nationally. Locally, the average miles travelled by any mode – walking, driving,
biking, or taking transit – is the lowest for Millennials.
Figure 1. Walk Score® Map
Source: Walk Score®
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Bozeman Urban Renewal Action Plan August 2017 / 9
Bozeman commute patterns reflect this market trend. Table 1 shows there is an increase of
employment and residents within the city between years 2010 and 2014. What is remarkable is
the minimal increase in people commuting into Bozeman for a job and living outside the city.
Instead there is an increase in people living and working in Bozeman, as well as the number of
people living in Bozeman but working outside the city. What this suggests is that the workforce
prefers to live in Bozeman. Therefore, if an employer locates a business within Bozeman they
have a competitive advantage in providing a desired location that reduces commute times
and congestion and more access to local sector businesses. This is an opportunity for future
development within the Midtown District.
Table 1. City of Bozeman Commute Patterns
2010 2014 Percentage
Change
Employment in City 24,384 27,317 11%
Employed Individuals Living in City 13,737 18,266 25%
Commute into City for Employment and Live Outside 16,370 16,637 2%
Live and Work in City 8,014 10,680 25%
Live in City but Leave for Employment 5,723 7,585 25%
Source: U.S. Census LEHD, Leland Consulting Group.
Affordable Lifestyle (Housing and Transportation)
Demand for housing at affordable prices will continue to be a significant issue for the City of
Bozeman. More housing, with a range of options, must be provided. In addition, the City can
provide the crucial infrastructure to foster affordable lifestyle (not just affordable housing)
through active transportation investments. With a focused effort to promote infill housing,
employment, and retail amenities and services along corridors, individuals are less compelled to
own an automobile, which translates into $8,5601 in personal annual savings. The Midtown District
has the potential infrastructure network and site locations to accommodate this type of
development which would address this significant market demand for affordable housing.
1 American Automobile Association, June 2016.
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Bozeman Urban Renewal Action Plan August 2017 / 10
Student Housing
The National Center for Education Statistics predicts college enrollment in the U.S. will reach 19.8
million students by 2025, an increase of 14 percent from its 2014 enrollment of 17.3 million.
Montana State University (MSU) reflects this trend through their historic growth that is projected to
continue.
Figure 2. Montana State University Student Headcount
Source: MSU, Leland Consulting Group.
Based on this growth, “it would be pretty hard to overbuild in most markets, there is such strong
demand,” says Nat Kunes, vice president of product management at AppFolio Inc., a provider
of property management software. “In most markets you could double the amount and not
overbuild.”2 What investors find attractive in student housing are the returns relative to
conventional apartments because the occupancy rates run higher.
2 National Real Estate Investor, Demand for Student Housing Looks Strong for 2017, November 21, 2016.
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016173
Bozeman Urban Renewal Action Plan August 2017 / 11
The Midtown District is well positioned to meet the demand of this student housing. As indicated
in Figure 3, sites within the Midtown District are immediately adjacent to 8th Avenue, which is the
main bike corridor to
MSU. Furthermore, the
sites are not that much
further than the location
of new student housing
to the south of MSU,
with the distinct
advantage of being
much closer to
amenities in downtown
or the Cannery District.
Barriers to
Private
Development
While there have been
plans in place and
improvements made to
encourage
development within the
area, results have been
limited. Areas such as
Midtown often do not
receive private
development interest
due to market and
physical barriers that
must be overcome.
Specific barriers
pertaining to the
Midtown District include:
Market barriers:
• Unknown public infrastructure requirements and uncertain costs
• Current market leases and rents within District are not shown to align with costs for new
construction
• Minimum parking code requirements that exceed actual demand and need
• Absentee or disengaged property owners offer limited sites for redevelopment
Physical barriers:
• The policies and approach of the Montana Department of Transportation impede the
construction of high-quality, human-scale urban design features for the North 7th corridor
• Poor multimodal connectivity
• Lack of new mixed-use development, especially residential, to generate activity
Source: Leland Consulting Group
Figure 3. Student Housing Location Opportunity
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Bozeman Urban Renewal Action Plan August 2017 / 12
• Dangerous pedestrian intersections
• No unifying theme as a gateway to city
Embrace Infill Development
Communities across the country over the past few decades have traditionally grown through
“greenfield” development: new construction on vacant land. This type of development typically
involves one developer with minimal significant development constraints such as existing
buildings, challenging road connections, or potential site contamination. Development of
vacant land with minimal encumbrances has allowed for new growth to occur in a relatively
straight-forward manner with less risk, and why it has typically been the preferred form of
development.
This development pattern is changing due to growth trends that are pulling residents and
employees back toward urban centers, and communities that desire a more resilient
development form that thoughtfully expands utility services. While this repurposing of
underutilized land benefits a community with an improved tax base and modern development
patterns, it is extremely challenging to actualize due to the nature of infill development in
contrast to greenfield development. City staff should embrace the following mindset to foster
infill development.
Build Partnerships
Relationships and trust are the key ingredient to realizing infill development. Fortunately,
Bozeman staff embraces this philosophy. Direct outreach (not flyers or emails) with property
owners, developers, and architects to foster connections, opportunities, and strategic
investments is important.
Build Infrastructure
In building partnerships, City staff can hone in on key infrastructure improvements that are
impeding development. This is especially important for infill development where the perceived
value of these types of properties is that the infrastructure (sewer, water, roads) are built to
current standard as there was once a use on the property. Proactively determining the status of
infrastructure quality, if upgrades are required and the cost, is necessary to engage interest in
development. Building this public infrastructure that will benefit the developer as well as
surrounding properties is extremely valuable to developers.
Make Strategic Investments
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or easements that may be necessary to
make the desired improvements. In all public-private partnerships this transparent information is
necessary to ensure sound community investments.
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
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Bozeman Urban Renewal Action Plan August 2017 / 13
Have Patience
The community needs to understand that development is a risky endeavor. The term “catalyst”
development is rarely heard by a developer as an opportunity, but instead as the first project
going into an untested market. Developers must make a return on investment (ROI) on a project,
otherwise there is no reason to proceed.
Redevelopment of existing buildings is always the first form of investment in an area such as
Midtown because it has the most minimal risk to generate an ROI. Once these development
pioneers begin to create energy and increased awareness of opportunity, additional investment
will occur. Due to the improved environment and demand, eventually tenants will be willing to
pay the necessary rents for residential and commercial spaces that will produce enough
revenue for a developer to build new construction.
In addition, the type of construction will vary in cost. Early phases of two to three-story buildings
and adaptive reuse is typical for entry market development. Eventually mid-rise projects of five-
story with commercial on the ground floor will emerge. Finally, in more urban environments, high-
rise construction will be built with proven rents and adequate amenity and transportation
infrastructure to off-set the need to provide parking and off-set costs. Figure 4 shows how this
development phasing emerged in Portland, Oregon.
Figure 4. Phasing of Infill Development: Pearl District, Portland, Oregon
Source: Leland Consulting Group
176
Bozeman Urban Renewal Action Plan August 2017 / 14
Midtown District Vision
The Midtown District surrounds North 7th Avenue: a post-WWII auto-oriented arterial road under
the jurisdiction of Montana DOT. The District is in the northeast portion of the city in between
Interstate 90 and Main
Street. North 7th Avenue
originally served as the
northern gateway into the
city and is home to some
mid-century motels that
lined the corridor for tourists.
Because of North 7th
Avenue’s classification as a
highway, it is a wider
roadway that is intended to
facilitate automobile
movement. The intent of
the Midtown District vision is
to leverage the current
design as an asset that will
accommodate the scale of
higher building densities. In
addition, the roadway
should remain a more auto-
oriented facility with
parallel parking that
accommodates pedestrian
uses with wider sidewalks
and key crossings with
“bump-outs.” Bike lanes on
parallel routes such as 8th
and 5th Avenues will be
more attractive to the
biking community and
remove conflicts between
auto and bike traffic.
Figure 5. Midtown District
177
Bozeman Urban Renewal Action Plan August 2017 / 15
Why Midtown?
The southern end of the Midtown District intersects with Main Street, which serves the traditional
downtown core of the city. The Main Street area is highly desirable for housing, hotel, and
commercial activity and is reaching peak redevelopment capacity. As such, growth
opportunities and demand are spreading toward the Midtown District, especially at the southern
end of the District. At the same time, the Midtown District is surrounded by an established and
historic neighborhood with excellent street connectivity and walk score that ties into North 7th
Avenue.
Beyond the positive surrounding
neighborhoods and commercial
area impacts, the Midtown District
has a distinct character that should
be embraced and attributes that
make it a unique place for Bozeman
residents. The following local assets
should be recognized and
incorporated as development
occurs to make Midtown a defined
area with a cohesive character that
builds upon Bozeman genuine
brand.
Investors are wisely seizing this
authentic quality and adapting
existing uses into modern amenities
that are highly desired and provide
significant activity and energy along
the corridor. Rainbow Hotel
developer Dean Folkvord
understands that “one thing
happens at a time, and it might take
10 years, but the investment is going
to happen on North Seventh”.3
District Vision
The Midtown District embraces its
past while it hosts new opportunities.
It is a hub for entertainment, business,
amenities and residents wanting close connections to MSU and downtown. Midtown is an
authentic district for active and engaged Bozeman community members.
3 Bozeman Daily Chronicle, Rainbow Motel changes hands, set for revamp, August 2016.
Rainbow Hotel currently under renovation and scheduled
for completion in Winter 2017.
178
Bozeman Urban Renewal Action Plan August 2017 / 16
District Assets
The following assets define the Midtown District and shape the opportunities for future
development.
Authentic
Midtown has a unique mid-century
heritage with community icons such as
Haufbrau, Rainbow Hotel, and the Lewis
and Clark Hotel that give the District
distinct character.
Iconic Signage
Walkable
Midtown is surrounded by urban
neighborhoods with tree lined streets that
invite residents to walk and bike to the
District. New sidewalks on North 7th Avenue
will encourage activity on the street.
West Lamme Street
Dynamic
Midtown is home to the BMX Park and
quick access to Story Mill Trail. Residents
within Midtown don’t drive to recreation
spots, they bike there.
Alter Cycle
179
Bozeman Urban Renewal Action Plan August 2017 / 17
Community
Whittier Elementary School is in the heart of
Midtown and connects the District to
surrounding neighborhoods.
Whittier School Classroom
Local Gathering Place
Aspen Street is an emerging entertainment
district that provides an accessible
alternative and alleviates peak demand
pressure on downtown. Connecting Aspen
Street, the BMX Park and the Fairgrounds
with targeted improvements creates an
entertainment destination for the
community.
BMX Park
District Opportunities
Amenities and Sites
The Midtown District is poised as a place for families to gather, business to emerge, and young
professionals and students to live. As shown in the Opportunities Map there are series of
upcoming investments that will enhance connectivity, invite pedestrian activity, and make
Midtown the place for locals to gather. The potential development sites identified on the map
consist reflect interest property owners willing to explore development opportunities. The phasing
is only based on level of interest and is not intended to prescribe how development will occur.
See Attachment A for specific site opportunities and preliminary market assessments for private
investment.
180
Bozeman Urban Renewal Action Plan August 2017 / 18
Figure 6. Midtown Opportunities Map
Source: Leland Consulting Group
181
Bozeman Urban Renewal Action Plan August 2017 / 19
Safe Connections
In order to realize the envisioned pedestrian activity between surrounding neighborhood and
emerging amenities within the Midtown District, safe pedestrian connections must be built. By
investing in new sidewalks to complete connections and improving the safety at key
intersections this will be achieved. The Bozeman school district has identified where these
improvements need to occur, and are included in the list of projects recommended for funding
in the Action Plan.
Figure 7.Whittier School Walking Map
Source: Alta Planning and Design
182
Bozeman Urban Renewal Action Plan August 2017 / 20
Future Development
As investment in the Midtown District occurs, it is anticipated that it will manifest in more modern
design as opposed to the more historic nature of the downtown district. Additionally, the wider
width of North 7th Avenue will accommodate larger scale buildings and make the pedestrian
experience along the corridor more inviting. Images of anticipated building design and form are
provided below.
Building Design
North 7th Avenue is a classic post-WW II corridor designed for the automobile and hosts mid-
century architecture and signage reflecting that era. It is anticipated that the Midtown corridor
will continue to embrace this history with a more modern design as represented in the following
renderings.
Rainbow Motel: Remodel, Love Schack Architecture
Gallatin Valley Furniture: Remodel, Bechtle Architects
183
Bozeman Urban Renewal Action Plan August 2017 / 21
City Brew: New Construction, A&E Architects
SOBO Lofts: New Construction, Intrinsik Architecture
Urbaine Home: Adaptive reuse
of former auto-body shop
184
Bozeman Urban Renewal Action Plan August 2017 / 22
Building Form
For purposes of conveying the potential building from along North 7th Avenue, the following
images, prepared by DHM Design, are focused between Durston Road and Main Street where
the enhanced streetscape will occur. Proposed developments are located on sites where
property owners have conveyed an interest in future development. As described earlier in the
Plan, early development will likely consist of renovations or lower density new construction. All
proposed development is designed to maximum densities for purposes of understanding the full
scale of development that could occur in the District. This maximum build-out is the desired
vision to meet housing and transportation goals, as well as creating an active and vibrant
District.
185
Bozeman Urban Renewal Action Plan August 2017 / 23
Existing Conditions
Maximum Density Build-Out of Corridor
186
Bozeman Urban Renewal Action Plan August 2017 / 24
Maximum Density (four to five story + renovation) with location of perspective for following image
North 7th Avenue looking north, Villard Street is in the next intersection
187
Bozeman Urban Renewal Action Plan August 2017 / 25
Intersection of Main Street and North 7th Avenue looking north
Bozeman 7th Avenue Development Study
188
Bozeman Urban Renewal Action Plan August 2017 / 26
Action Plan Implementation
The intent of this Plan is to attract targeted private investment by leveraging the market potential
of the Midtown District, and removing barriers to development through strategic infrastructure
investments and incentives. This is especially important for this District as the city does not own
any property and is reliant on cooperation and collaboration with property owners to realize the
vision for this area. The following information details the type of infrastructure anticipated and
the type of private investment that is desired.
Strategic Infrastructure
One of the most important roles for the city is to construct strategic infrastructure projects that
benefit several property owners and the broader community. This is especially important for infill
development where the perceived value of these types of properties is that the infrastructure
(sewer, water, roads) are built to current standard as there was once a use on the property.
Proactively determining the status of infrastructure quality, if upgrades are required and the cost,
is necessary to engage interest in development.
A detailed list of identified projects within the Midtown District are provided in Attachment B.
The projects are separated into two categories: Regional and Private Development as they
each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a
direct message to developers regarding the level of investment the city is willing to make in this
District.
Regional Investments
The proposed regional investments are projects within the District that benefit the broader
community through the provision of key transportation connections or amenities. These projects
meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2)
improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects
can occur independent of private property owner engagement. While these projects serve the
broader community, they also indirectly incentivize private development with the overall
improvement of the District.
Private Development Investments
The proposed private development infrastructure is identified through different zones of private
property that will benefit from the necessary infrastructure upgrades. There is no prioritization of
the improvements as it is dependent on private party engagement, which can’t be anticipated.
However, by determining these projects in advance, staff can clearly communicate to private
property owners the type and cost of infrastructure that would be built that serves as direct
incentive for them to consider redevelopment of their property.
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or rights to construct a public facility
that may be necessary to make the desired improvements. In all public-private partnerships this
transparent information is necessary to ensure sound community investments.
189
Bozeman Urban Renewal Action Plan August 2017 / 27
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
Investment Timing
The urban renewal statutes allow for the bonding of substantial public projects within 14 years of
establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th
year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission
should be cognizant of this timing when evaluating project investments and in communications
with private developers. In order to leverage this financing opportunity, staff should determine
projects to consider for bonding by Q1 2019.
Incentives
Infrastructure Projects
Infrastructure projects can often present a significant cost for developers. Infill projects are
especially complex as often a small lot will face outsized regional infrastructure costs due to
“upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can
off-set a significant cost barrier of a regional project that is needed to allow the redevelopment
of an individual lot to move forward. See Attachment B for a detailed list of recommended
projects and costs based on specific site analysis case studies within Midtown and collaboration
with public works.
Off-Set Project Costs
Targeted incentives can close the financial gap in making a project move forward. As discussed
previously, City staff and private developers should work together in a transparent manner to
identify that an incentive addresses a clear “but for” need of support to off-set costs to
encourage the targeted private investment for this area. Future development providing much
needed affordable housing should especially be considered to receive incentives. An allocation
of incentives for SDC off-sets and demolition costs have been included with the list of projects in
Attachment B.
Streamlined Permitting
Streamlined permitting is always cited as a top incentive for developers to attract investment. As
discussed, infill development consists of risks regarding untested markets and uncertainty
regarding infrastructure requirements. Both risks can result in costs not anticipated by a
developer when initially pursuing a project. City staff can provide critical support in removing
these uncertainties by providing transparent information as early as possible regarding
infrastructure needs, as well as unified direction regarding desired building design and density.
Creating a “Midtown team” of staff from various departments provides a consistent group of
staff that comprehensively understands the infrastructure, transportation and building design
issues in the area. Such a team can serve as a powerful resource to proactively achieve the
desired development in collaboration with the developer, and sends a clear signal that this
District is a priority to the community.
190
Bozeman Urban Renewal Action Plan August 2017 / 28
Targeted Private Investment
The overall objective of the Midtown Urban Renewal District is to create a more vibrant place
with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals
of the most recent Urban Renewal Plan which include:
• Promote Economic Development
• Improve Multimodal Transportation
• Improve, Maintain, and Support Innovation in Infrastructure
• Promote Unified, Human Scale Urban Design
• Support Compatible Urban Density Mixed Land Uses
To achieve these goals, targeted future development should include the following elements:
• Infill. The intent of urban renewal is to remove blight to improve an area for the entire
community benefit. Remodeling of existing structures or infill of underutilized lots is the priority
of this Plan. As discussed, infill development is more challenging than vacant greenfield
development and warrants focused investment of staff time and resources.
• Increased building density. Increased building density increases the number of people in the
District, which helps create the desired active pedestrian environment. More density of
buildings grouped together in districts is especially desired to encourage pedestrians to
explore adjacent buildings. Buildings that are separated by large parking area or vacant lots
will impede pedestrian movement.
• Encourages multimodal transportation. New projects should provide amenities such as
adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the
Urban Renewal District should invest in infrastructure projects such as bike lanes and signals
or covered bus stops to make alternative transportation options visible, safe, and desirable.
• Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented
environment the District must consist of uses that are a frequent destination by residents.
Retail amenities that are experience based such as restaurants or ice creams shops are
desired because they generate activity and are more resilient to emerging ecommerce
trends. Such amenities will also attract more housing investment.
• Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a
specific use that is desired. The Midtown District zoning is intended to accommodate more
dense housing projects with potential access to retail amenities nearby.
191
Bozeman Urban Renewal Action Plan August 2017
Attachment A: Site Concepts
192
Midtown Site Opportunity – “The Wok” Site
1
The Wok” site is in
reference to the
former Chinese
restaurant that was
once located here.
This site has been
identified as
opportunity site within
Midtown for the
following reasons:
• recent investment
by the Urban
Renewal Board;
• property owner
engagement; and
• proximity to the 8th
Street bike corridor
to MSU
We view this site as an
opportunity for
student housing due
to the proximity to
MSU via bike as well as
the central location to
entertainment districts
in downtown and on
North 7th Street.
Furthermore, the
profile for a student
renter is one that
typically prefers
alternative
transportation modes
and desires amenities
nearby, thus reduces
the need for parking
and associated costs
with construction.
LOCATION
Address: 319 N 7th Ave, Bozeman, MT 59715
SITE SIZE
Approximately 36,500 square feet (SWC of 7th & West Villard Street)
ASSUMPTIONS
• Rent: $1.84 per sq. ft. (market)
(market) or $1,295 per month
for a 700-sq. ft., one-bed apt.
• Land cost: $15.00 per sq. ft.
• Building Costs:
o $150 PSF Apt.
o $220 PSF Retail
• Parking Provided: 2.5 spaces
per 1,000 square feet.
PROGRAM OPTIONS
DEVELOPMENT RETURN ON INVESTMENT (ROI)
The “CAP” rate is the industry standard for ROI. This analysis assumes a 7% rate.
Building Program
Baseline
Concrete
Podium
Wood Frame
Reduce Retail
Wood Frame
Reduce Retail
Rent+10%
Wood Frame
Reduce Retail
Rent+10%
Add Apts
Wood Frame
Reduce Retail
Rent+10%
Add Apts
No Land Cost
Three story
Wood frame
Three story
Wood frame
Rent+10%
Three story
Wood frame
Rent+10%
No Land Cost
Gross Building Area (SF)
Apartments 9,000 9,000
Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
1- Retail 9,000 4,500 4,500 4,500 4,500
1- Tuck Under Parking 4,500 4,500 9,000 9,000
Total 36,000 36,000 36,000 49,500 49,500 27,000 27,000 27,000
Total Apartment Area (GBA) 27,000 27,000 27,000 36,000 36,000 27,000 27,000 27,000
193
Midtown Site Opportunity – “The Wok” Site
2
EXAMPLES OF POTENTIAL DEVELOPMENT
East Beall, Bozeman, MT The Anthony Apts., Eugene, OR
SoBo Lofts, Bozeman, MT Stadium View Living Apts., Bozeman, MT
FEASIBILITY
Under previous parking requirements, the site could support a building with a FAR of about 1:1. With
the new parking requirements, the site can now increase the building density and/or building
footprint, increasing the feasibility of the development. With minimal required onsite parking, the site
also becomes more flexible, with a wider array of available development and site options.
BARRIERS
The Wok site’s separation from the main development cluster around 7th and Main and 7th and
Mendenhall is one of the few potential development barriers, as this new construction activity
cannot be leveraged. However, this may be mitigated given the larger lot size and the opportunity
to develop a self-sustaining community.
194
Midtown Site Opportunity – “Main Street Properties” Sites
1
The Main Street
Properties are
adjacent to the
vacant City
Center Inn
property. The
current owners
have expressed
interest in
exploring
opportunities for
redevelopment
on their property.
This analysis
assumes full build
out of the
properties by
utilizing a parking
structure that is
anticipated on
the north side of
the site.
This analysis
consists of office
and retail uses to
provide an
alternative
scenario to
housing.
Furthermore, we
see this as a
viable location to
meet the office
demand for
downtown
serving small
creative office
and software
firms.
LOCATION
Address: 601-607 W Main St, Bozeman, MT 59715
SITE SIZE
Site area approximately 25,480 square feet; building footprint approximately
16,305 (9,175 for landscaping/circulation)
ASSUMPTIONS
• Rent: $20 to $24 PSF NNN (top of
market)
• Land cost: $15.00 per sq. ft.
• Building Costs: $150 PSF
(Commercial/Office)
• Construction costs have been
rising rapidly, meaning projects
that were deemed feasible in 2014
may not be in today’s market.
• Parking provided off site, in city lot,
reducing construction cost.
PROGRAM OPTION
• Two separate buildings, each four stories (ground
fl. Retail + 3-fls. office)
• LCG established a target return on cost of 8.0%
based on review of current office cap rates
(estimated at 6.5%) and a developer’s risk-
adjusted return spread of 1.5%.
• Six different rent scenarios were evaluated based
on this building area.
DEVELOPMENT RETURN ON INVESTMENT (NOI/Total Project Cost)
Parking
Area (SF)
Office 16,305
Office 16,305
Office 16,305
Retail 16,305
GBA 65,220
195
Midtown Site Opportunity – “Main Street Properties” Sites
2
EXAMPLES OF POTENTIAL DEVELOPMENT
Snowload Building, Bozeman, MT 5 West Mendenhall, Bozeman, MT
Hudson, Vancouver, WA Blackmore Bend, Bozeman, MT
FEASIBILITY
This desirable location on Main Street serves as an extension of the strong growth in downtown. With
the redevelopment of the City Center site, a strong connection to downtown will be made, making
this a viable site.
The development of the site depends on the City’s construction of the parking structure. The
proposed buildings would require approximately 163 parking spaces, which would cost an
estimated $4.28 million. The alternative would be to require the developer to build parking on site,
which would have a significant negative impact on returns, rendering development infeasible.
BARRIERS
There are three separate property owners, so consolidation of parcels and agreement on real
estate terms will be required.
Some additional issues remain with the proposed development. Namely, there is a risk the
development could not achieve the top-of-the-market rents and construction cost escalation could
add further complications. Additional information about site preparation, on and off-site costs,
landscaping and placemaking will help reduce unknowns.
196
Midtown Site Opportunity – “EZ Auto” Site
1
The EZ Auto site
is currently a car
dealership
along N 7th
Street. The
property owners
have expressed
interest in
redevelopment.
This analysis
consists of an
early phase of
market
development.
Is consists of on-
site parking
without a
parking
structure to
provide a sense
of how the site is
impacted
without the
parking
structure.
Furthermore, it
would be
advantageous
to include
surrounding
parcels to
maximize the
building
footprint and
shared parking.
LOCATION
Address: 23 N 7th Ave, Bozeman, MT 59715
SITE SIZE
Site area approximately 25,480 square feet; proposed (shown) building footprint
approximately 5,500 square feet (19,980 square feet parking area)
ASSUMPTIONS
• Rent: Estimated $1.85 per sq. ft.
(market) or $1,295 per month for a 700-
sq. ft., one-bed apt.
• Land cost: $15.00 per sq. ft.
• Building Costs:
o Wood frame apt.: $167 PSF
o Ground floor retail, incl. TIs: $216
PSF
o Post tension slab (fire & structural
separation between retail and
housing: $50 PSF
• Parking Provided: 0.9 spaces per 1,000
square feet (surface)
PROGRAM OPTIONS
DEVELOPMENT RETURN ON INVESTMENT (NOI/Total Project Costs)
The “CAP” rate is the industry standard for ROI. This analysis assumes a 7% rate.
Building Program
Baseline Rent+10%No retail No retail,
rent+ 10%
No retail,
three stories
Gross Building Area (SF)
Apartments 5,961 5,961 5,961
Apartments 5,961 5,961 5,961 5,961 5,961 5,961
Apartments 5,961 5,961 5,961 5,961 5,961 5,961
Apartments 5,961 5,961 5,961 5,961 5,961 5,961
1- Retail 5,961 5,961 5,961
Total 23,844 23,844 23,844 23,844 17,883
Total Apartment Area (GBA)17,883 17,883 23,844 23,844 17,883
197
Midtown Site Opportunity – “EZ Auto” Site
2
EXAMPLES OF POTENTIAL DEVELOPMENT
East Beall, Bozeman, MT The Anthony Apts., Eugene, OR
SoBo Lofts, Bozeman, MT Stadium View Living Apts., Bozeman, MT
FEASIBILITY
This site is close to Main Street and downtown development, as well as 8th Street, which serves as the
major bike route to Montana State University. We recommend exploring student housing due to this
location and willingness of students to embrace bikes over automobiles, which reduces need for
parking.
BARRIERS
The site size presents a barrier for building scale. Otherwise, it is in a desirable location due to
proximity to downtown and MSU.
198
Bozeman Urban Renewal Action Plan August 2017
Attachment B: Midtown Project List
199
200
July 2017
Item Improvement
Type
Issue Location Notes Length Street Cost
Per LF
Utility Cost
Per LF
Total Cost
Street 8th Avenue new local street section 8th Avenue between Birch and Peach Completes 8th Ave within existing ROW, connected
with development of adjacent property
2050 345.00$ 707,250$
Incentives Off-Set SDC Costs 150,000$
Subtotal 857,250$
Zone B - Hemlock Street
Water Upgrade water main to 8" Standard Hemlock, Between 5th and 7th Upgrade if demand from redevelopment 575 230.00$ 132,250$
Sewer New 8" Sewer Main Hemlock, alley to 5th Provide service to properties along Hemlock Ave.
5th Avenue sewer would need to be completed for
service
230 270.00$ 62,100$
Incentives Off-Set SDC Costs 150,000$
Subtotal 344,350$
Zone C - Aspen Street
Street Section Festival Street Aspen Street Concept for pedestrian and street improvements 540 170.00$ 91,800$
Sewer New 8" Sewer Main Tamarack, 3rd to 5th Provide service to properties along Tamarack, with
connection to future 5th Ave sewer main
750 270.00$ 202,500$
Water Upgrade water main to 8" Standard Tamarack, Between 5th and 7th Upgrade if demand from redevelopment 580 230.00$ 133,400$
Water Upgrade water main to 8" Standard Aspen, Between 5th and 7th Upgrade if demand from redevelopment 570 230.00$ 131,100$
Incentives Off-Set SDC Costs 450,000$
Subtotal 1,008,800$
Zone D - N. 8th Avenue
Street 8th Avenue new local street section 8th Avenue between Villard and Beall Completes 8th Ave within existing ROW, connected
with development of adjacent property
370 345.00$ 127,650$
Incentives Off-Set SDC Costs 150,000$
Subtotal 277,650$
Zone E - Lamme Street
Water Upgrade water main to 8" Standard 7th Avenue, between Beall and Mendenhall Upgrade if demand from redevelopment 620 230.00$ 142,600$
Water Upgrade water main to 8" Standard Lamme, between 7th Ave and 8th Ave Upgrade if demand from redevelopment 308 230.00$ 70,840$
Incentives Off-Set SDC Costs 150,000$
Subtotal 363,440$
Zone F - Mendenhall Avenue
Water Upgrade water main to 8" Standard Mendenhall, between 7th Ave and 8th Ave Upgrade if demand from redevelopment 324 230.00$ 74,520$
Sewer Upgrade sewer main to 8" Standard Upgrade, Mendendall, Grand to 7th Upgrade if demand from redevelopment 1600 270.00$ 432,000$
Parking Structure Assumes $26,000/stall at 400 stalls (similar price to
downtown structure)
10,400,000$
Incentives Off-Set SDC Costs 150,000$
Subtotal 11,056,520$
Total Investment 13,908,010$
PRIVATE DEVELOPMENT INFRASTRUCTURE IMPROVEMENTS
Zone A - N. 8th Avenue
Notes:
*local street section: 35' pavement, 6' boulevard and 5' sidewalk
1. Cost estimate does not include impacts due to groundwater or contaminated soil
2. Pricing reflects 2016/2017 typical bids
3. SDC off-set assumes one 26,000 sf residential building
201
202
July 2017
Item Improvement Type Location Issue Notes Length Street Cost
Per LF
Utility Cost
Per LF
Total Cost
A. North 5th Avenue Corridor
Street N. 5th Avenue between Oak and Hemlock Complete street connection for N. 5th
Avenue
Completes connection of 5th Avenue. Facilitates
regional connectivity and removes barrier to
redevelopment for parcels north of Durston.
850 345.00$ 293,250$
Street N. 5th Avenue between Hemlock and Tamarack N. 5th Avenue upgrade to local street
section (curb, gutter, sidewalk on both
sides)
Within this block, N. 5th Avenue does not meet
City standard street section
720 170.00$ 122,400$
Parking 5th Avenue between Tamarack and south boundary
of the Westlake BMX park.
N. 5th Avenue Parking and Sidewalk Parking and sidewalk improvements associated
with park improvements
665 160.00$ 106,400$
Street 5th Avenue between the 700 Block of N. 5th Ave to
Tamarack
Upgrade 5th Street section to new west side
curb, gutter, sidewalk in conjunction with
park improvements
5th does not meet City standard street section
and does not have safe sidewalks to Whittier
665 60.00$ 39,900$
Sewer 5th Avenue between Aspen and Oak, 3 sections New 8" sewer main Aspen to Tamarack 720 270.00$ 194,400$
to complete sewer main connection Tamarack to Hemlock 710 270.00$ 191,700$
Hemlock to Oak 970 160.00$ 155,200$
Water 5th Avenue between Tamarack and Aspen 8" Water Main Provides looping in the system for
redevelopment of property along Aspen St. or
5th Ave. Efficient to complete in conjunction
with 5th Street improvements.
350 290.00$ 101,500$
Street Oak Street and N. 7th Avenue Oak corridor analysis recommends a right
turn lane from the westbound Oak Street to
northbound N. 7th Ave.
This improves traffic movement. Until the
intersection is improvement, development of
property will be restricted
662,000$
Subtotal Construction Costs 1,866,750$
Contigency (15%)280,013$
A&E Fees (14%)261,345$
Total Costs 2,408,108$
B. West Tamarack Pedestrian Improvements
Safe Pedestrian
Crossings
Tamarack at Grand, 3rd and 5th Avenues Improve pedestrian connections for
improved safety.
Difficult intersections, defined in Safe Routes to
School Plan.
20,000$
Safe Pedestrian
Crossings
Along Tamarack Difficult intersections have been defined and
should be improved for school connections.
Improves pedestrian connections to school.20,000$
Sidewalks Beteween Tamarack and Peach Wittier school connection missing Improves pedestrian connections to school.20,000$
Subtotal Construction Costs 60,000$
Contigency (15%)9,000$
A&E Fees (14%)8,400$
Total Costs 77,400$
Internal Multi-Use Trails
C.Trail Oak Street, between 5th Ave and 7th Ave Mullti-use trail connection Continues multi-use path along the south side of
Oak Street and facilitates regional bike and ped
connectivity.
673 66.00$ 44,418$
D.Trail 5th Avenue, between Tamarack and Oak Street Mullti-use trail connection Provide off-street trail connection to Oak Street
trail network and facilitates regional bike and ped
connectivity.
1692 66.00$ 111,672$
E.Trail N. 8th Avenue, between Durston and Oak Street Mullti-use trail connection Provide off-street trail connection to Oak Street
trail network and facilitates regional bike and ped
connectivity.
1968 66.00$ 129,888$
Subtotal Construction Costs 285,978$
Contigency (15%)42,897$
A&E Fees (14%)40,037$
Total Costs 368,912$
NEW INFRASTRUCTURE
REGIONAL CONNECTIONS
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Item Improvement Type Location Issue Notes Length Street Cost
Per LF
Utility Cost
Per LF
Total Cost
F. North 7th Ave.
Streetscape 7th Avenue, Durston to Main and Tamarack to Aspen 7th Avenue Streetscape Continuation of streetscape plan 970 3,000,000$
Pedestrian Crossings N. 7th Avenue, at Lamme, Beall and Villard Difficult intersections, defined in Safe Routes
to School Plan
Build bulb-outs and crosswalks for safe access to
school. Pedestrian hybrid beacon with bulb out
recommended for Lamme intersection in the
Transportation Master Plan
125,000$
Subtotal Construction Costs 3,125,000$
Contigency (15%)468,750$
A&E Fees (14%)437,500$
Total Costs 4,031,250$
G. PARK
District Amenity BMX Park Master Plan Implementation Need desirable community space Park Cash-in-lieu fees for new residential
development in the area.
400,000$
400,000$
STUDIES
Bike Lanes Entire district No north/south connections throughout
Midtown
Define a safe connection between MSU and
throughout district. Determine how to connect
district to story mill and map brewing areas that
have no bike connections.
40,000$
Traffic Signal Properties north of I-90 N. 7th Avenue and Griffin Drive Modify intersection to add additional turning
lanes and revise traffic signal. Current
intersection conditions constrains redevelop in
this area.
2,350,000$
Subtotal 2,390,000$
Subtotal all projects 8,127,728$
Contingency (15%)800,659$
A&E Fees (14%)747,282$
Total 9,675,669$
Notes:
*local street section: 35' pavement, 6' boulevard and 5' sidewalk
1. Cost estimate does not include impacts due to groundwater or contaminated soil
2. Pricing reflects 2016/2017 typical bids
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