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
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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.
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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
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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
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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
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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.
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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.
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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
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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.
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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;
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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.”
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