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HomeMy WebLinkAboutResolution 3901 Approving Downtown Parking Garage as Urban Renewal . ~ COMMISSION RESOLUTION NO. 3901 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROVING THE DOWNTOWN PARKING GARAGE FACILITY AS AN URBAN RENEWAL PROJECT AND THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS AND GRANT ANTICIPATION REVENUE NOTES. BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City"), as follows: Section 1. Recitals. 1.01. Pursuant to Commission Resolution No. 3046, adopted on March 6, 1995, the Commission determined that blighted areas existed within the boundaries of the City and appointed an urban renewal planning committee to prepare an urban renewal plan. 1.02. The Commission, pursuant to Ordinance No. 1409 (the "Ordinance") adopted on November 20, 1995, created an Urban Renewal District for Bozeman's downtown area (the "District") and approved the City of Bozeman Urban Renewal Plan (the "Plan") for the District containing a tax increment financing provision all as set forth in the Ordinance and the Plan. 1.03. Pursuant to the Plan, tax increment financing would be used to pay the costs of public projects or the public portion of private projects. The Plan also provided that the City would not issue any tax increment bonds after either the 11 th year of the collection of tax increment revenues or the annual tax increment reached an inflation adjusted $750,000, whichever occurred first. 1.04. Pursuant to Commission Resolution No. 3718, adopted by the Commission on August 23, 2004, the Commission declared its intention to amend the Plan to extend the life of the tax increment provisions to fifteen years from the date of the original adoption to November 20, 2010. 1.05. A duly noticed public hearing was held by the Commission on September 20, 2004, at which time all persons were given an opportunity to speak on the extension of the tax increment financing provisions of the Plan. 1.06. On March 7,2005, the Commission adopted Ordinance No. 1628, extending the life of the tax increment provisions of the Plan. 1 .07. The City is authorized to issue bonds payable from tax increment revenues payable over a period of not to exceed twenty-five (25) years. The tax increment provisions of the Plan will terminate upon payment of such bonds. 1.08. One of the purposes of extending the life of the District was to enable the City to issue tax increment bonds payable from the District to pay the costs of a new parking garage to be located in the District to encourage the development of a performing arts center proposed by private development and to meet other parking needs of the District, and it was unclear whether a sufficient principal amount of bonds could be issued within the term of the Plan. 1.09. On December 7, 2003, the City solicited proposals for architectural and engineering services to assist in project design, bid document preparation, contractor selection, project oversight, and construction oversight for a parking/retail structure in downtown Bozeman, Montana (the "Parking Garage Facility" or the "Project"). . , 1.10. The City has determined the Parking Garage Facility designed by Prugh & Lenon, as shown on the plans and specifications, dated as of August 2005 and as modified to comply with the conditions of approval imposed by the City Commission, is a good and workable design and is in the best interests of the City. 1.11. Contracts with Prugh & Lenon and Morrison Maierle, Inc., will be transferred to the City and the City will enter into a project manager agreement with Martel Construction to complete the design, bidding, and supervision of construction of the Parking Garage Facility. 1.12. On February 28, 2006, the Commission adopted Commission Resolution No. 3894, a Resolution Calling a Public Hearing to Approve the Downtown Parking Garage Facility as an Urban Renewal Project and to Finance the Project through the Issuance of Tax Increment Urban Renewal Bonds and Grant Anticipation Revenue Notes. 1.13. Pursuant to Commission Resolution No. 3894, a public hearing was duly noticed and held on March 27, 2006, at which all persons wishing to speak were given the opportunity to address the Commission with respect to the Plan and the Project. Section 2. Proiect. 2.01. The Parking Garage Facility as proposed to be undertaken shall consist of a three to six floor parking garage which would provide up to 400 spaces to be owned and operated by the City (the "Parking Garage"), and a ground floor retail or commercial component of approximately 13,000 square feet that will be sold and developed by a private party (the "Commercial Facility") (together, the "Project"). Based on current projections, the estimated costs ofthe Parking Garage Facility is anticipated to be approximately $9,800,000. The City proposes to issue $4,760,000 of its Tax Increment Urban Renewal Bonds (the "Bonds"), of which approximately $4,300,000 will be used to pay a portion of the costs of designing and constructing the Project, and the remainder will be used to establish the necessary reserves and pay for the costs of the sale and issuance of the Bonds. D.A.Davidson & Co. has determined that the City can issue approximately $4,760,000 in Urban Renewal Tax Increment Revenue Bonds (the "B onds") based on the tax increment revenues anticipated to be received based on the current incremental taxable value of the District. Upon receipt of the incremental taxable value of the District for Fiscal Year 2006-2007, it is anticipated that the dollar amount of the Bonds that can be issued will increase. The Grant has been awarded in the amount of up to $4,034,000 and which will be payable to the City in four annual installments due September 30, 2006, September 30,2007, September 30,2008, and September 30,2009. The City proposes to issue Grant Anticipation Notes in the estimated amount of up to $4,034,000 (the "Notes") as may be required for the purpose of paying a portion of the costs of construction of the Project and related costs, which Notes will be repaid from the proceeds of the Grant as received. The City has approximately $1,150,000 of tax increment and parking funds available to complete the Project. 2.02. Upon completion of construction of the Project, the City will offer the Commercial Facility to a qualified purchaser submitting the highest and best offer. Proceeds of the sale of the Commercial Facility will be deposited in the City's Tax Increment Fund to reimburse it for the costs attributable to the Commercial Facility. The City's Request for Proposal of Qualification for the Development of the Commercial Facility (the "RFP") will request a proposal from a qualified firm or individual who would agree to pay the costs attributable to the design and construction of the commercial space, and be responsible for the development and build-out of the retail space and pay costs of the City Land. - 2 - . ", Section 3. Findinas. The Commission hereby finds, with respect to the Project as follows: a. no persons will be displaced from their housing by the Project; b. the Plan, as modified to include the Project, conforms to the comprehensive plan or parts thereof of the City; c. the Plan, as modified to include the Project, will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. the issuance of approximately $4,760,000 of Bonds and the receipt of $4,034,000 in Grant Anticipation Notes, and together with other available amounts in the Tax Increment Fund and parking revenues are adequate to cover the costs of the Parking Garage Facility and constitute a workable plan of financing for the Project based on construction estimates as of the date of this Resolution; and e. proceeds received from the sale or lease of the Commercial Facility will be deposited in the City's Tax Increment Fund and will be available for use for other approved tax increment urban renewal projects and costs; and f. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4. Authorizations. The City will proceed with the issuance of its Urban Renewal Tax Increment Urban Renewal Bonds in an amount approximately $4,760,000, of which approximately $4,300,000 will be used to pay a portion of the costs of designing and constructing the Project, and the remainder will be used to establish the necessary reserves and pay for the costs of the sale and issuance of the Bonds. The City will also proceed with the issuance of its Grant Anticipation Notes, in an amount up to $4,034,000, for the purpose of paying a portion of the costs of construction of the Project and related costs, which Notes will be repaid from the proceeds of the Grant as received. In the event construction bids for the Project exceed the current engineer's estimate and additional Bond proceeds are required, the Mayor, City Manager, and City Finance Director are authorized to increase the principal amount if and to the extent the increase in incremental taxable value will support the issuance of additional bonds. The Bonds and the Notes will be issued on a negotiated basis to D. A. Davidson & Co., and sold pursuant to Resolutions to be adopted by this Commission. The Mayor, City Manager, and City Finance Director are hereby authorized to determine the final principal amount of the Bonds and to negotiate the final terms and conditions of sale and enter into a bond purchase agreement with the Underwriter, subject to the condition that the Underwriter's compensation shall not exceed 2.00% of the principal amount of the Bonds and the Notes. The final details of the Bonds and the Notes are to be approved in a Resolution or Resolutions to be approved by the Commission. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 3rd day of April 2006. ATTEST: ~/Ltt....--~ DQ~~L'/- JE Y. U, Mayor Acting City Clerk - 3 - ." . CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the "City"), hereby certify that the attached resolution is a true copy of Commission Resolution No.3901 entitled: "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONT ANA, APPROVING THE DOWNTOWN PARKING GARAGE FACILITY AS AN URBAN RENEWAL PROJECT AND THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS AND GRANT ANTICIPATION REVENUE NOTES" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on April 3. 2006, and that the meeting was duly held by the City Commission and was attended throughout by a quorum. pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: Commissioner RUDD. Commissioner Kirchhoff. Commissioner Jacobson, Commissioner Becker and Mavor Krauss ; voted against the same: None ; abstained from voting thereon: None ; or were absent: None WITNESS my hand and seal officially this 4th day of April, 2006. (SEAL) , {l /1 J/L- City Clerk