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HomeMy WebLinkAbout01-02-18 Minutes - Northeast Urban Renewal Board (NURB)NURB Meeting – January 2, 2018 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, January 2, 2018 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, January 2, 2018, 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 Dalton Brink Nolan Campbell Commissioner Liaison: I-Ho Pomeroy Staff: Shane Strong, KLJ Engineering Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary Guests: Chris Nixon, 719 North Wallace Avenue Erik Nelson, 33 North Black Avenue Brian Caldwell, 33 North Black 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 – No comment was received under this agenda item. Minutes – November 7, 2017. It was moved by Bobbi Clem, seconded by Bob Pavlic, that the minutes of the meeting of November 7, 2017, be approved as submitted. The motion carried on a 5-0 vote. NURB Meeting – January 2, 2018 2 Discussion/Action Items – Presentation of proposed development from 400 Development Group. Erik Nelson noted the same group that has been involved in The Lark Motel and renovation of the Rialto Theatre are involved in the Cottonwood & Ida project. He stated the underlying premise of this project is to do something good for Bozeman; and it is their intent to include affordable housing in it. The project is to include residential units for both sale and rent at 100 percent of area median income (AMI), and residential units for rent at 70 percent of AMI. The development will also include some spaces for commercial activity, including 400 to 600 square-foot artist/maker spaces since many in this area were lost when the Brewery was torn down. Brian Caldwell noted that everyone talks about the eclectic nature of the northeast neighborhood; however, what they have found is that it’s less about the built environment and more about the people there. He stated this project provides spaces for people to both live and work; and he feels it is much more in line with the neighborhood than the luxury condominiums currently being constructed across the street from this project. Erik Nelson turned attention to the site, which is located at the corner of East Cottonwood Street and North Ida Avenue. He noted the name of the project reflects its location and its place in the neighborhood. He showed pictures of the design concept, noting that they are to reflect the scale and mass of the buildings, but not the facades or materials at this time. The buildings along the street edges are to be three stories or less while one of the buildings in the center is four stories high. It is their intent to incorporate the existing elevator into the project, possibly as a community center. The project will contain five buildings with approximately 20,000 square feet of plaza and open space breaking them up. Brian Caldwell stated they feel it is important to pay homage to the Misco Grain Elevator, and have tried to preserve the agricultural character of the site. He then stressed that North Wallace Avenue is a more retail area, and noted they are not interested in having “three breweries and other late night uses” on this site. They also don’t believe this is the appropriate location for a restaurant; rather, it is their intent to provide spaces for those who live in the area rather than attracting those from outside the district. Erik Nelson reviewed the anticipated uses along the various street frontages, noting they include artist/maker spaces and residential units along East Cottonwood Street and residential units and an office building along North Ida Avenue. He noted that one of the buildings is to be a commercial office building with approximately 10,000-square-foot spaces that provide an opportunity for more substantial employment. Brian Caldwell stated it is their intent to sell between nine and twenty condominiums at market rate and use those monies to help underwrite providing 20 percent of the apartments at an affordable rate. He then stated that, from a design perspective, they are not interested in doing one monolithic structure, like 5 West; rather, they wish to keep the site very open visually, with pathways and open space through it. Responding to questions from board members, Erik Nelson stated the area median income is $50,000 per year; and affordable housing is described as 30 percent of gross income. Those costs include mortgage payment, insurance and taxes for home ownership, and rent and renter’s insurance for rental units. NURB Meeting – January 2, 2018 3 Erik Nelson stated that parking is to be under the plaza and the buildings, except for Building D, and will contain 168 parking spaces. Brian Caldwell stated that access to the parking will be from East Aspen Street, with a right turn onto North Wallace Avenue for those exiting the site. Responding to questions, Erik Nelson stated the mill is 70 to 80 feet tall; and the adjacent buildings are 38 feet. Brian Caldwell recognized that they could have done a single building with a sea of parking in front of it; however, they have chosen to go through a year of review to provide a superior design solution. In doing so, they have carefully reviewed the goals of the urban renewal plan and the goals from the RUDAT process and feel they have been addressed in a comprehensive way. Erik Nelson stated that the residential units range from studio apartments to two-bedroom apartments, with a mix of units in each building. He stressed that the durability and sustainability of the buildings is important, as well as energy efficiency for the residents. Brian Caldwell stated that the rents for affordable units will be determined by the chart created by HRDC; and those units are to be affordable for those at 70 percent of AMI. Responding to questions about the timeline for this project, Erik Nelson stated the PUD process will probably consume the next six months. He noted that, in exchange for excellence in design, they will be seeking relaxations, including 10-foot setbacks instead of the required 20-foot setbacks. Brian Caldwell stated that next month they want to come back to the Board with a more specific proposal and will seek a Board recommendation of support to the Commission. He noted that they need a Memorandum of Understanding so they can seek revenue bond financing. Erik Nelson stated that this proposal meets seven of the nine goals and objectives in the urban renewal plan; and the other two do not apply. He noted it also meets many of the goals in the Vision NorthEast document. Brit Fontenot stated that the strategic plan, which has not yet been adopted by the Commission, talks about infill and good projects within the city limits. Responding to questions, Erik Nelson stated that lighting in this project will meet the City’s night sky lighting requirements. He then stated that the City is currently requesting a street light at the intersection of East Cottonwood Street and North Ida Avenue but has not identified any additional street lighting at this time. Brian Caldwell noted that typical development of this site could include a five-story building with surface parking, which would trigger a significant amount of lighting. Under this proposal, the lighting for the parking area will be under roof. He then stated that lighting for the plaza is being carefully considered in the design of this project to ensure preservation of the night sky. Erik Nelson stated that access to the parking garage will be from East Aspen Street under Building F. He noted that all of the street improvements for that roadway will be on the south NURB Meeting – January 2, 2018 4 side of the right-of-way, allowing for the existing trail to remain on the north half of the right-of- way. Accessibility to the garage will be through a variety of stairs and elevators into the buildings on the site. The parking garage will include a mechanical venting system. Responding to questions about energy efficiency, Brian Caldwell indicated that energy star standards will be the base, and then they will consider sustainability. They are collaborating with other architects who specialize in apartment housing design in planning of this project. While they have not included solar panels on this site, they are considering the installation of a solar farm on the Idaho Pole site. Also, they do not intend to seek LEED certification for the project although they will design to those standards to the greatest extent possible. Brian Caldwell stated that at next month’s meeting, they will ask that a portion of the garage be funded through tax increment revenue bonds because approximately 60 of the spaces in the parking garage will be made available to the public in perpetuity. The development group will bear the costs of installing the improvements upfront and is committed to making tax payments as owners of the property. Bond payments would not be incurred until final occupancy of the building, thus ensuring adequate revenues to cover the costs of the bond payments. He indicated that they will also be seeking reimbursement of costs for improving the public streets in the revenue bond issue. Responding to questions about the bonding procedure, Brian Caldwell stated he anticipates that during construction of the project, the paperwork for the bond issue will be undertaken. He indicated that, prior to final financing of the project, which is estimated at $35 million, the tax increment revenue bonds would be issued to reimburse the public portion of the project. If, for some reason, the property taxes within the district were to decline, the developers would commit to ensure servicing of the bond debt. Brit Fontenot reminded the Board that, once the East Tamarack Street improvements are completed, it is anticipated this district will not have any remaining monies to complete additional projects. He stated that, with the success of this project, a significant amount will be added to the annual increment. Responding to questions, Erik Nelson and Brian Caldwell noted that the project is to be completed in a single phase. They anticipate that portions of construction will be done like The Lark expansion. The hope is to complete the planning phase by July and then immediately begin construction, is estimated to take eighteen months. Brit Fontenot stated that, based on the applicants’ requests, this item will be placed on next month’s agenda with a resolution of support for the project for Board consideration. Presentation regarding NorthEast Area Wetlands. Chris Nixon stated the Sacajawea Audobon Society and Gallatin Valley Land Trust are interested in preserving the wetlands adjacent to The Village Downtown development. He noted that the Delaneys had submitted a proposal to construct houses on a portion of the current wetland; however, that was denied because it lacked the minimum density. They have withdrawn that request but are now considering a new proposal that would meet the density requirements. Chris Nixon stated that this wetland area, which is actually divided into three different sections with one of them under Delaneys’ ownership, is the largest wetland within city limits in the state NURB Meeting – January 2, 2018 5 of Montana. He noted that, since this property was previously agricultural land, funds might be available through the water conservation service for both purchase and restoration of the degraded wetlands. Chris Nixon noted that the enhancement of these wetlands could also be tied to extension of the trail system, providing the needed link from the library through the northeast side. He noted the old railroad bed would provide an elevated trail that looks down on the wetlands. Also, the wetlands could serve to purify the water from the development along East Main Street as it moves to the East Gallatin River. Responding to questions from Brit Fontenot, Chris Nixon stated he does not know if the wetlands would be a public park dedicated to the City or if it would be in private ownership. John Usher thanked Chris Nixon for his presentation. Continued discussion regarding funding of feasibility study for quiet zones at railroad crossings. Bobbi Clem stated that she and Chris Nixon have talked about how this project might dovetail with the wetlands project he just talked about. She noted that much of the funding obtained by other communities for the installation of quiet zones has been tied to providing fencing along the tracks. She noted that railroads are also beginning to give favorable consideration to both rails to trails systems and rails with trails systems, where a trail may be constructed within a live railroad right-of-way. In this case, the old railroad spur could be used, then turn to Front Street and along the railroad track to the Story Mill trail. She suggested that linking the wetlands preservation with the quiet zone could lead to better opportunities for saving the depot. She concluded by reporting that she has been playing phone tag with Scott Dehlendorf, developer of The Cannery District, about the potential of helping to fund the quiet zone study. John Usher noted that this Board has committed to cover one-third of the costs of the quiet zone study, and no additional monies have been raised in the past three months. He then asked if this Board wishes to continue pursuing this project. Nolan Campbell noted that delisting of the Idaho Pole superfund site is imminent and, as a result, options for development of that site are beginning to emerge. He then expressed interest in keeping “the pilot light going” for this project. Bobbi Clem stated she feels the Commissioners should be made aware of this proposed project. She then noted she is going to invite Joe Gentry and a person interested in the depot to the upcoming meeting so they can listen to the 400 Development presentation since it has a large affordable housing component to it. She then noted that some of the money for other quiet zone studies has come from the railroad. Brit Fontenot asked how this Board will be able to raise $500,000 for the construction of quiet zones if it can’t raise $14,000 to complete the study. Ethan Barlow stated he feels GVLT is better as a collaborative partner than as a source of funding for the study. NURB Meeting – January 2, 2018 6 Brit Fontenot indicated a willingness to set up meetings with potential interested parties; however, he needs to have at least two board members attend those meetings. As a result of suggestions from Nolan Campbell, John Usher asked that a letter to potentially interested parties be drafted for consideration at next month’s meeting. He noted that will make this project more concrete in the minds of those people rather than just hearsay. Brit Fontenot asked that he and Robin Sullivan be given an opportunity to draft a letter and bring it back next month for Board consideration. Update on Vision NorthEast process and findings. Bobbi Clem stated that this update has been covered in previous discussions. Updates on current projects. Shane Strong reported that the final pay request for the North Wallace Avenue improvements has been submitted and approved for payment. He noted that the two-year warranty period will end late this summer; and he will review the improvements to ensure there are no outstanding warranty issues. Shane Strong turned attention to the East Peach Street project, noting it is currently on winter shutdown. The contractor has ten days remaining on the contract before liquidated damages are triggered. He highlighted the work yet to be done, noting the biggest issues revolve around the paving that was completed outside specifications for weather. He noted that only a portion of the paving costs have been paid because they will need to mill and repave at least a portion of the street. He reported that the cores taken passed testing; however, the City will not accept the paving because of all the surface blemishes and the fact that it will not meet the requirements for longevity. Shane Strong stated that he will have a set of preliminary plans for East Tamarack Street improvements ready for review at next month’s meeting. He plans to advertise for bids in late March, with construction to be done this summer. Responding to questions from Bobbi Clem, Brit Fontenot stated that the North Ida Avenue street improvements are to be done in conjunction with the Cottonwood & Ida project. He noted that, because that street lies within this tax increment financing district, the applicants may include those public improvements in their request for reimbursement. Staff updates on items of interest to the Board. Brit Fontenot stated that Incoming Mayor Cyndy Andrus has asked for a review of all boards and proposals to consolidate boards and revise the structures of those boards. In light of that request, he noted one of those changes might be to create an agency to manage all tax increment financing districts, with one board that includes representatives from each of the districts. He stated that this proposed structure is being used in other communities and provides a more global look at infrastructure across the community. Update on financial status of NURB fund. Robin Sullivan distributed copies of the revenues and expenditures for Fiscal Year 2017-18, the spreadsheet showing revenues and NURB Meeting – January 2, 2018 7 expenditures by project since creation of the district, and the spreadsheet showing the bond proceeds expended to date. Responding to Robin Sullivan, Shane Strong stated a pay request for the East Peach Street improvements is currently being processed; and he anticipates two pay requests in the Spring. Election of Chair and Vice Chair for 2018. It was moved by Jeanne Wesley-Wiese, seconded by Bob Pavlic, that John Usher be elected Chair for 2018. The motion carried on a 5-0 vote. It was moved by John Usher, seconded by Bob Pavlic, that Jeanne Wesley-Wiese be elected Vice Chair for 2018. The motion carried on a 5-0 vote. Set agenda for February 6, 2018 meeting or cancel meeting. To be included on the agenda, in addition to the standard agenda items, are a presentation on the proposed development at Cottonwood and Ida and a continued discussion on the quiet zone. FYI/Discussion (formerly Neighborhood News). There was no discussion under this agenda item. Adjournment – 8:35 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