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HomeMy WebLinkAbout10-03-17 Minutes - Northeast Urban Renewal Board (NURB) NURB Meeting – October 3, 2017 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, October 3, 2017 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, October 3, 2017, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: John Usher, Chair Bobbi Clem Dan Doehring Robert Pavlic Jeanne Wesley-Wiese Non-Voting Members: Ethan Barlow Nolan Campbell Dalton Brink Commissioner Liaison: I-Ho Pomeroy Staff: Shane Strong, KLJ Engineering Brit Fontenot, Economic Development Director Kristin Donald, Finance Director Robin Sullivan, Recording Secretary Guests: Chris Nixon, 719 North Wallace Avenue Call to Order – Chair John Usher called the meeting to order at 6:30 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – Jeanne Wesley-Wiese reported that her neighbor on East Cottonwood Street is rallying the neighborhood to oppose a proposed Conditional Use Permit to allow the construction of a very large house that includes a roof top party garden and an archery shooting range in the basement at the corner of East Cottonwood Street and North Church Avenue. She noted that this monstrous house would cover a significant portion of the lot and would really dwarf the tiny house located on the adjacent lot. Minutes – September 5, 2017. It was moved by Dan Doehring, seconded by Jeanne Wesley-Wiese, that the minutes of the meeting of September 5, 2017, be approved as submitted. The motion carried on a 3-0 vote. NURB Meeting – October 3, 2017 2 Discussion/Action Items – Introduction of Finance Director Kristin Donald. Brit Fontenot introduced Kristin Donald to the Board, after which each of those in attendance introduced themselves. Kristin Donald voiced her appreciation for the feedback from advisory boards. She then noted that she has spent half of her working life as an auditor and the other half in operations. Review of taxable values from the Department of Revenue. Kristin Donald stated the tax increment is based on the taxable values done by the State Department of Revenue. She noted that reappraisals are done every two years, which means that tax increment financing districts can be subject to big changes in those years. In 2017, the districts saw some changes so there will be minimal changes in 2018. However, in 2019 there could be significant changes in the values based on development and tear downs. Brit Fontenot reminded the Board that they are currently investing $1.4 million in infrastructure improvements and has already paid for a portion of the improvements to North Wallace Avenue. Kristin Donald cautioned that infrastructure improvements will not impact the value of the increment; however, those improvements may attract development that will impact the value. Brit Fontenot stated that the five tax increment financing districts in Bozeman saw a mix of taxable values increasing and decreasing as a result of the 2017 reappraisals; and this district saw an increase. He then cautioned that every two years, the Legislature pulls the tax increment laws apart and tries to eliminate them. Kristin Donald stated that the zoning of property impacts its value. She noted that agricultural zoned land does not generate the taxable values that commercially zoned lots do. Responding to questions from Chris Nixon, Kristin Donald stated that taxable values are significantly lower than market values. John Usher noted that bonds have been now been issued for this district and asked if they may be affected by the taxable values in the future. Kristin Donald responded that the bond commitments must be met, no matter how the taxable values fluctuate over the next twenty years. She then stated that the City is committed to levying to meet the bond payments if needed. Responding to Dan Doehring, Kristin Donald confirmed that the number of mills set by the City, County and School District can change. She then noted that the City is not near the cap on its tax levy. Continued discussion regarding funding of feasibility study for quiet zones at railroad crossings. John Usher suggested that final discussion and action on this item be deferred since not all voting members are not present. Ethan Barlow reported that he has made some contacts but has no feedback at this time. He feels, however, this is an issue worth pursuing. NURB Meeting – October 3, 2017 3 John Usher stated he has done a lot of research on the quiet zone in Helena and has several newspaper articles that he can send out if the Board is interested. The Board agreed that the information will be sent to Brit Fontenot and forwarded to all board members. Responding to Ethan Barlow, Shane Strong stated he can get more information on the feasibility study and the process. He noted the easiest and cheapest option for implementing a quiet zone is the installation of double gates on each side and a center median. He noted the fastest option is a directional horn; however, that does not completely eliminate the noise and costs about the same. Brit Fontenot stated it is important to not focus on just one crossing because that does not really solve the issue. Responding to Jeanne Wesley-Wiese, Brit Fontenot stated this Board cannot use TIF monies to do the feasibility studies for the crossings at North Rouse Avenue and Griffin Drive. He then noted that board members are talking to business owners and he will approach Gallatin Valley Land Trust to see if they will contribute to funding of the feasibility study. He asked if there are other possible sources of funding. Robin Sullivan reminded the Board that it did not include monies in this year’s budget to cover the costs of a feasibility study. She noted, however, that $20,000 was budgeted for the engineering consultant, and it could choose to commit $7,250 of those monies to cover the costs of the feasibility study for the crossing on North Wallace Avenue. Brit Fontenot stated that those monies, coupled with monies from private sources, could fund the feasibility studies for all three crossings. Ethan Barlow suggested that all other commitments be identified before the Board commits its monies to the project. He noted that GVLT has a broad interest in connectivity and may be willing to commit monies to the feasibility study at the Griffin Drive crossing. He then suggested that business owners in The Cannery District may be willing to contribute toward the feasibility study for the North Rouse Avenue crossing. Brit Fontenot noted that approach would reflect community interest in the project, and that could be beneficial when applying for grant monies to fund the quiet zone improvements. Ethan Barlow volunteered to talk to business owners in The Cannery District; Brit Fontenot indicated a willingness to go with him. John Usher stated he feels the Board has identified a good plan for moving forward and asked that further discussion and action be placed on next month’s agenda. Update on Vision NorthEast process and findings. John Usher deferred this agenda item since Bobbi Clem is not present. Updates on current projects. Shane Strong reported that he has received the final pay application for the North Wallace Avenue project. There are a couple of places where the concrete needs to be fixed and some dirt needs to be added along the sidewalk; but he expects NURB Meeting – October 3, 2017 4 the project will be closed out this month. Shane Strong then reported on the East Peach Street project, noting it has progressed quite a bit since the last meeting. He stated they are on the fourth superintendent, and he has seen many laborers and operators come and go. On the east side of North Wallace Avenue, curb and gutter has been installed and they are working on the road base. Paving is to be completed by the end of this week or early next week. The contractor is to work on the east side of North Wallace Avenue for the rest of the week, with the utility work nearly done and the road base to be built up. The work should be completed in the next four to six weeks. Shane Strong stated the soils on the west side of North Wallace Avenue are “absolutely terrible”. The contractor has given him a price for patch work on that portion of the street; however, the soils for the full width of the street must be replaced and stabilized. He anticipates that the cost will be $13,000, and NorthWestern Energy is requiring some additional work that is estimated to cost $9,000. He noted that, with the $25,000 contingency in the contract, he does not expect any change to the current contract price. Responding to Brit Fontenot, Jeanne Wesley-Wiese stated people are talking and wondering why the project is taking so long but don’t seem to be “up in arms”. Staff updates on items of interest to the Board. Brit Fontenot stated that once again he has received an inquiry about the level of Board interest in expanding the tax increment financing district to include the portion of Idaho Pole that has been removed from Department of Environmental Quality oversight. He noted that infrastructure improvements could then be funded to incentivize development. Responding to Dalton Brink, Brit Fontenot stated the pros include infrastructure improvements while the cons are political, including the fact that it would facilitate more development in the area. He encouraged the Board to consider how development of this site will impact this district. Jeanne Wesley-Wiese stated that traffic will be an issue. She then asked about the potential that Nolan Campbell will encounter a conflict of interest since he is the realtor selling some of that land; Brit Fontenot responded that he can remove himself from discussion and action on this item. Responding to John Usher, Brit Fontenot stated that expanding the district involves opening the original plan, doing another study and analyzing the area, including the Idaho Pole site. He characterized this as a detail oriented process that will probably require some outside assistance. John Usher asked if another tax increment financing district with a separate board can be created adjacent to this district; Brit Fontenot responded that it can be. Jeanne Wesley-Wiese stated that access to the site and traffic are issues to be considered. John Usher asked that a presentation of this proposal be placed on the agenda for next month’s meeting, after which the Board can determine whether it wishes to consider the issue any further. NURB Meeting – October 3, 2017 5 Jeanne Wesley-Wiese noted that when the NorthEast Urban Renewal District was created, the building trades industry did not want to be part of the district; and the boundaries were drawn accordingly. She then noted that she did not realize how important this area was until the RUDAT process. Dalton Brink suggested that, by expanding the district to include the Idaho Pole site, this Board may have more control over what happens on the property. Update on financial status of NURB fund. Robin Sullivan distributed copies of the revenues and expenditures for Fiscal Year 2016-17 and for Fiscal Year 2017-18, briefly highlighting the information. She noted this will probably be the last report for Fiscal Year 2016- 17 since that fiscal year ended on June 30. Set agenda for November 7, 2017 meeting or cancel meeting. To be included on the agenda, in addition to the standard agenda items, are a proposal to include the Idaho Pole site in the district, and further discussion and action on the feasibility study for quiet zones at the three railroad crossings. Responding to Ethan Barlow, Brit Fontenot stated a feasibility study is needed to apply for any grant monies or matching monies to construct quiet zone improvements. He then noted that he can ask Brad Koon to provide a list of application potentials. Shane Strong stated he will get a PDF copy of the feasibility study for the Helena project. FYI/Discussion (formerly Neighborhood News). There was no discussion under this agenda item. Adjournment – 8:15 p.m. There being no further business to come before the Board at this time, Chair Usher adjourned the meeting. John Usher, Chair Northeast Urban Renewal Board City of Bozeman