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HomeMy WebLinkAbout09-25-17 City Commission Packet Materials - C2. MURD FY17 Annual Report Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist, Midtown Urban Renewal Board Staff Liaison SUBJECT: Midtown Urban Renewal District Fiscal Year 2017 Annual Report MEETING DATE: September 25, 2017 AGENDA ITEM TYPE: Consent RECOMMENDATION: Accept the Midtown Urban Renewal District Annual Report for FY 2017. BACKGROUND: Annual Reports for Bozeman’s tax increment finance (TIF) districts are traditionally presented alongside the work plan and budget for the next Fiscal Year. Due to time constraints, the report for the Midtown Urban Renewal District was not presented at that time. Annual Reports for TIF districts must be filed with the governing body prior to September 30 of each year. The 2017 Montana Legislature made changes to the requirements for annual reports. Specifically, statute now requires annual reports to “describe the expenditures of tax increment in the preceding fiscal year and how the expenditures comply with the approved urban renewal plan or comprehensive development plan for the District.” 7-15-4237 (2), MCA. Since the filing of the annual report was delayed, it is subject to the new requirements, which were not effective at the time of previous annual reports for other TIF districts. FISCAL EFFECTS: None. ATTACHMENT: Midtown Urban Renewal District Annual Report for Fiscal Year 2017 7 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 1 of 10 Fiscal Year 2017 Annual Report The City Commission passed Ordinance No. 1685, “Adopting an Urban Renewal Plan for the North Seventh Avenue Corridor and Adjacent Properties”, on November 27, 2006. On December 16, 2015, the City Commission passed Ordinance No. 1925, which adopted a new urban renewal plan, expanded the boundaries of the original district, and renamed the North Seventh Urban Renewal District the Bozeman Midtown Urban Renewal District. The new Midtown Urban Renewal Plan provides for the remediation of blighted conditions within the urban renewal area by advancing five broad goals through a series of implementing activities and strategies. The five goals include the following items: 1. Promote Economic Development • Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight. 2. Improve Multimodal Transportation • Rationale: Increasing travel options supports public health, reduces resource demand, increases efficiency and reduces costs, improving the quality of life and making the community a better place to live and work, helping to eliminate conditions that contribute to blight. 3. Improve, Maintain and Support Innovation Infrastructure • Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Therefore, capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight. 4. Promote Unified, Human Scale Urban Design • Rationale: Protecting and building upon existing physical assets increases vitality, desirability and leverages economic development, strengthening community values and mutual support helping to eliminate the conditions that contribute to blight. 5. Support Compatible Urban Density Mixed Land Uses • Rationale: A sense of place is strengthened by a strong core identity. Increasing live-work opportunities and community interaction, ensures that the North 7th Avenue area remains a great place to live, work, operate a business, and play, and helps to eliminate conditions that contribute to blight. This Annual Report is prepared as required by 7-15-4237, MCA, pertaining to Annual Reports. Compliance with 2-7-503, MCA, pertaining to financial reports and audits of local government entities, is satisfied by the City of Bozeman’s Comprehensive Annual Financial Report (CAFR), which is reported on a different schedule. 8 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 2 of 10 Annual Report. The report must include a complete financial statement setting forth its assets, liabilities, income, and operating expenses and the amount of tax increment as of the end of the fiscal year. The report must describe the expenditures of tax increment in the preceding fiscal year and how the expenditures comply with the approved urban renewal plan or comprehensive development plan for the District. 7-15-4237 (2), MCA. Assets: $1,579,190 Liabilities: $103,593 Income: $695,091 Total Operating Expenses: $1,156,680.96 Amount of Tax Increment for FY 2017: $645,014 Lighting and Streetscape Project Expenditures: $172,106.15 Street Lighting and Streetscape Project, Juniper St. to Durston Rd. Final Payment The included the final contractor payment for construction of the project segment between Juniper St. and Durston R. Main St. to Peach St./ Durston Rd. Engineering The installation of new light fixtures for the corridor was identified as one of the top three priorities for District Plan Implementation in 2008. The MURB recognizes that new light fixtures will help establish a distinct identity for the corridor, define key intersections, improve vehicular and pedestrian safety and improve the aesthetic experience of the corridor. Our engineer is working with the Montana Department of Transportation on design elements that include boulevard trees, tree grates, permeable pavers, and new street lights. Right-of-Way Acquisition Engineer The District has been very successfully utilizing the City’s contract with DOWL for a right-of-way acquisition engineer to obtain easements for the Lighting and Streetscape Project. This budget item continues that work and allows for additional time toward right-of way acquisition for multi-use path projects in other parts of the district. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #4, Promote Unified, Human Scale Urban Design  Rationale: Protecting and building upon existing physical assets increases vitality, desirability and leverages economic development, strengthening community values and mutual support helping to eliminate the conditions that contribute to blight.  Continue the Lighting, Gateway and related Sidewalk Improvements Project - the installation of new architectural street lights, gateway improvements and related sidewalk with boulevard improvements along the corridor to enhance pedestrian safety and to make the neighborhood more pedestrian friendly 9 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 3 of 10  Continue the Median and Boulevard Landscaping Project. o Chapter 5, Goal #2 Improve Multi-Modal Transportation:  Construct improvements to facilitate transportation mode shift to expand non- motorized and public transit travel (such as bikeways, trails, parking facilities, high quality bus stops and public transit access)  Construct non-vehicular safety improvements such as sidewalks, pedestrian crossings, high intensity activated cross walk signals and traffic calming features o 7-15-4288 (4), MCA, ” (4) the acquisition, construction, and improvement of public improvements or infrastructure” Multi-use Trail Expansions Engineering Expenditures: $26,519.60 Oak St. Multi-Use Path Design and Construction – N. 5th Ave. to N. 7th Ave. This project involves designing and constructing a 10 foot, concrete multi-use path on the south side of Oak St. from N. 5th Ave. to N. 7th Ave. to connect the existing multi-use path along Oak St. to N. 7th. N. 5th Avenue Multi-Use Path Design – Oak St. to Tamarack St. This project involves designing a 10 foot, multi-use path in the existing dedicated 5th Street right of way from Oak St. to Tamarack St. City Staff will also explore obtaining additional right of way for the path from the adjoining property owner if it is found to be mutually beneficial to both parties. N. 8th Avenue Multi-Use Path Design – Juniper St. to Durston Rd. This project involves designing a 10 foot, multi-use path in the existing dedicated 8th Street right of way from Juniper St. to Durston Rd. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #2 Improve Multi-Modal Transportation:  Rationale: Increasing travel options supports public health, reduces resource demand, increases efficiency and reduces costs, improving the quality of life and making the community a better place to live and work, helping to eliminate conditions that contribute to blight. • Construct improvements to facilitate transportation mode shift to expand non-motorized and public transit travel (such as bikeways, trails, parking facilities, high quality bus stops and public transit access) • $26,519.60 to Sanderson-Stewart in costs related to multi-use path engineering Westlake BMX Park Master Planning Expenditures: $23,817.85 10 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 4 of 10 The MURB is collaborating with the City Parks Department on improving the BMX Park as a significant corridor asset and as a regional attraction to draw people into the district. The goal is to create and then implement a BMX park master plan. This action has two features. First, it improves a public park as an amenity for the corridor. Second, it will function as an incentive for future infill residential development. Improvements made to the park by the District will be logged in a “parkland bank” and developers can apply against the banked improvements for their parkland dedication requirement. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #2 Improve Multi-Modal Transportation:  Support improvements to public facilities within the district (such as parks, schools and local government buildings, storm water facilities) Economic Development, Corridor Revitalization and Parking Consulting Services in the Midtown Urban Renewal District Expenditures: $119,099.00 The MURB completed the majority of its work towards the Adoption of the Midtown Action Plan. The Bozeman City Commission adopted the Midtown Action Plan in August 2017. The Fiscal Year 2017 Work Plan for the Midtown Urban Renewal Board (MURB) identified two projects for which the Leland Consulting Group team was retained. The current parking standards in effect were in conflict with the Bozeman Midtown Urban Renewal Plan’s recommendation for supporting urban density mixed land uses. The Board sought to integrate the regulatory framework for parking with the Midtown Board’s adopted vision of the corridor’s built environment, in a manner that respects the need for adequate parking and a desire for urban density and walkability. The node action planning effort proposed in the attached scope of services proactively coordinates public infrastructure investments and maximizes incentives thus optimizing the return on public investment by phasing and coordinating redevelopment efforts with property owners at various geographic nodes along the corridor. The planning effort included preliminary engineering cost estimates for numerous redevelopment nodes that can be used to diminish risk for private investment in the Midtown, and quantify, and clarify public infrastructure incentives. The effort focused on specific infrastructure deficiencies, a statutory condition of blight, in target areas. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #1 – Promote Economic Development  Engage in area and issue specific planning efforts to further retention and/or increase in the number of jobs and economic activity  Examine the usefulness of potential incentives (such as application or regulatory fee mitigation, impact fee reimbursement, etc.)  Continue the process of updating Bozeman's Unified Development Code to clearly communicate the community's expectations for development as expressed in the Bozeman Community Plan, and to generate implementation and design provisions for the Midtown URD Plan 11 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 5 of 10 o Chapter 5, Goal #3 – Improve, Maintain, and Support Innovation in Infrastructure  Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Therefore, capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight.  Examine parking strategies that support higher density, mixed use development o Chapter 5, Goal #5 – Support Compatible Urban Density Mixed Land Uses  Rationale: A sense of place is strengthened by a strong core identity. Increasing live-work opportunities and community interaction, ensures that the North 7th Avenue area remains a great place to live, work, operate a business, and play, and helps to eliminate conditions that contribute to blight.  Assess the need for a variety of housing types, including, but not limited to co- op, transitional, senior, and special needs  Study opportunities for “live-work” and mixed commercial residential development  Study strategies to expand affordable housing opportunities for all populations  Evaluate land use code requirements (such as building height restrictions, parking requirements and signage restrictions), to remove obstacles in order to increase density, support mixed-use development and foster economic vitality Telecommunications Conduit Urban Renewal Project Engineering and Construction Expenditures: $646,949.96 The MURB is continuing the expansion of its conduit infrastructure project. The project allows the MURB to plan more comprehensively for fiber optic infrastructure throughout the district to facilitate blight remediation by means of enhanced infrastructure that may attract new businesses and support existing businesses. The District installed conduit for lease to broadband companies in FY16 and continued expansion of the system in FY17. At this point, two, private, competitive broadband providers are licensing conduit from the City. Fiscal Year 2017 expenditures includes payments budgeted in FY16 and paid in FY17. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #3, Improve, Maintain and Support Innovation in Infrastructure  Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Therefore, capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight.  Continue to support open access fiber optic networks to provide affordable broadband for the region's business community, public sector and residents, as described by the Bozeman Fiber Master Plan and Feasibility Study adopted pursuant to Resolution #4576.  Support infrastructure improvements to and expansion of the broadband network for next generation fiber-optic connectivity. 12 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 6 of 10 o Chapter 5, Goal #4, Promote Unified, Human Scale Urban Design  Rationale: Protecting and building upon existing physical assets increases vitality, desirability and leverages economic development, strengthening community values and mutual support helping to eliminate the conditions that contribute to blight.  Continue the Lighting, Gateway and related Sidewalk Improvements Project - the installation of new architectural street lights, gateway improvements and related sidewalk with boulevard improvements along the corridor to enhance pedestrian safety and to make the neighborhood more pedestrian friendly  Continue the Median and Boulevard Landscaping Project. o 7-15-4288 (4), MCA, ” (4) the acquisition, construction, and improvement of public improvements or infrastructure” Marketing Expenditures: $27.17 The board renewed its domain name registry to maintain its websites’ presence for District marketing purposes. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #1 – Promote Economic Development  Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight.  Prepare marketing plan that includes such things as targeted anchor businesses, marketing strategies, branding and/or wayfinding. Technical Assistance Grant Program Expenditures: $13.701.50 The Technical Assistance program supports current or potential developers, owners, and tenants with engineering and architectural technical assistance during the preliminary phases of possible redevelopment or rehabilitation projects within the district. EZ Auto Grant The MURB awarded the TAG to the owners of EZ Auto to study the feasibility of a multi-story mixed use building on their site at N. 7th Ave. and Mendenhall St. The redevelopment concepts are on file to facilitate private investment in the district. 13 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 7 of 10 John Colter LTD The MURB awarded the TAG to John Colter LTD to study the feasibility of a multi-story mixed use building on their site off N. 7th Ave. at Peach St. A proposed project based on the preliminary site work will be submitted to the Community Development Department in the near future. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Goal #1 – Promote Economic Development  Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight.  Continue the N7Rehab Technical Assistance Grants Program for property owners to plan updates to their sites, including: o • Site Planning and Master Site Planning • Building condition assessment in conjunction with exterior renovation or reuse proposals for existing structures • Engineering and surveying services • Landscape Design • Preliminary Development Review N7 Rehab Demolition Grant Program Expenditures: $20,000 The Wok Restaurant Demolition The Wok Restaurant had been vacant for more than two years, was functionally obsolete and had significant asbestos issues that complicated reuse. The building contributed significantly to blight on the corridor. The grant contributed to the demolition of the structure. In addition, the MURB awarded a TAG to the property owners to study the feasibility of a new structure on the site. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Goal #1 – Promote Economic Development  Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight.  Continue the N7Rehab Construction Grants Program to help property owners improve their facades and sites, eligible activities include: • Demolition 14 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 8 of 10 N7 Rehab Façade Grant Program Expenditures: $10,294.48 The N7 Rehab Façade Grant Program was sunset and replaced in January 2017 by the Midtown Urban Renewal District TIF Assistance Program, which the MURB believes will be more effective in generating new tax revenue. Comfort Inn Façade Grant The Comfort Inn at N. 7th Avenue and Oak St. needed updates to meet current standards to and to arrest the property’s decline. The N7 Rehab Façade grant allowed the board to cover 15% of the cost of new rock façade treatments, site lighting, and landscaping fronting N. 7th Ave. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Goal #1 – Promote Economic Development  Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight.  Continue the N7Rehab Construction Grants Program to help property owners improve their facades and sites, eligible activities include: • Demolition • Façade Improvements • ADA Accessibility Improvements • Landscaping incorporated into a public space • Sidewalks • Improvements which reduce drive accesses in width and/or number • Improvements to create shared parking arrangements • Storm water facility improvements • Improvements in the public right-of-way or within a public access easement: sidewalk construction or repair, landscaping, ADA sidewalk ramps, tree grates, installation of District lighting Whittier School Improvements Expenditures: $68,003.99 The Midtown Urban Renewal Plan recognizes Whittier School as an important asset in the revitalization of the District as a mixed-use neighborhood. The MURB is committed to assisting Whittier School as increment accrues. 15 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 9 of 10 Pre-K Playground Equipment The School District started a Running Start Kindergarten Program for 4 year olds at Whittier School in January 2015. In addition, one of two Special Education Pre-School classes will be moved to Whittier next year. The playground equipment that is currently on the playground is too big for this age group of students. This request is for preparation, purchase and installation of age appropriate playground equipment in a separate area for these younger children. Like all of the Bozeman School playgrounds, Whittier’s playground is open to the public when not in use by the school, therefore, these improvements will benefit our entire community. Asphalt parking lot and playground improvements Needed maintenance of both the off-site parking lot and the existing playground to enhance durability and safety. This will consist of patching and filling in cracks, a slurry coat, and re-striping all required pavement markings. Renovations to the Pre-K SPED area Shifts within the SPED Pre-K program have resulted in an increased need for completed and adequate space at Whittier Elementary. Proposed improvements incorporate renovations to facilitate this function with the existing SPED program. Added improvements include better circulation between activities and classroom features. Improved instruction components will include additional whiteboards and teaching aides. Horizontal Climbing wall in the gym Provide an alternative play activity in the gymnasium area. Climbing walls are becoming increasingly popular and are already in-place at Longfellow, Irving, and Hyalite Elementary Schools. There is a potential cost share with the Whittier Parent Advisory Council for this item. • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 5, Goal #2 Improve Multi-Modal Transportation:  Support improvements to public facilities within the district (such as parks, schools and local government buildings, storm water facilities) Administrative Costs Expenditures: $42,922 Transfer to the General Fund to Support Economic Development Department Staff Support: $36,000 Term Contract for Planning and Engineering Services with Sanderson Stewart: $5,260 • Urban Renewal Plan (URP) and Montana Code Annotated (MCA) Compliance o Chapter 7: Implementation, Administration:  7-15-4233, MCA (as referenced in the URP): • (q) to organize, coordinate, and direct the administration of the provisions of this part and part 43; 16 Bozeman Midtown Urban Renewal District An Urban Renewal District with a Tax Increment Financing (TIF) Program Fiscal Year 2017 Annual Report Page 10 of 10 • (r) to perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and performance of the duties and responsibilities entrusted to the local governing body.  7-15-4288 (7) “administrative costs associated with the management of the urban renewal area” • $1,662 City Planning Fee, for the B-2M Zone Text Amendment regarding on-street and off-street parking requirements o Chapter 5, Goal #3: “Examine parking strategies that support higher density, mixed use development.” 17