HomeMy WebLinkAboutNURB Draft Resolution 2018-02 v 3Northeast Urban Renewal District Board
Resolution 2018-02
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RESOLUTION OF THE CITY OF BOZEMAN’S NORTHEAST URBAN RENEWAL DISTRICT BOARD
SUPPORTING THE MEMORANDUM OF UNDERSTANDING FOR THE COTTONWOOD & IDA
PROJECT AND REMOMMENDING CONSIDERSATION AND APPROVAL BY THE BOZEMAN CITY
COMMISSION.
WHEREAS, the Blight Study for the Northeast Urban Renewal District, dated June 6, 2005,
identified defective, inadequate and deficient public infrastructure and transportation facilities;
and
WHEREAS, through adoption of Commission Resolution No. 3835, the Bozeman City
Commission declared that blight exists within the Northeast Urban Renewal area associated with
defective or inadequate street layout and inadequate provisions and/or age obsolescence public
improvements (water, sewer, storm drainage, streets, sidewalks and parks) exist and that
rehabilitation and redevelopment is necessary and in the public interest; and
WHEREAS, the Northeast Urban Renewal District Plan was duly adopted by the Bozeman
City Commission by City of Bozeman Ordinance No. 1655, dated November 28, 2005 (the “Plan”);
and
WHEREAS, the City of Bozeman Northeast Urban Renewal District Board (the “Board”)
has been duly established by the Bozeman City Commission as provided for in the Northeast
Urban Renewal District Plan; and
WHEREAS, the Plan has the mission, vision and goals to remedy conditions associated
with blight, to improve infrastructure, revitalize the neighborhood, and utilize Tax Increment
Financing (TIF) in conjunction with other funding sources to improve the economic vitality within
the district; and
WHEREAS, at the January 2, February 6 and May 8, 2018 regularly scheduled and
publically noticed Board meetings, the Board was presented conceptual plan for the Cottonwood
& Ida Project, which provides for a mix of housing and commercial development and includes
improvements to public infrastructure, including improvements to North Ida Avenue, East
Cottonwood Street and East Aspen Street, and includes public parking spaces in the proposed
underground parking structure.
WHEREAS, on May 8, 2018, the Board was presented with a Memorandum of
Understanding for the Cottonwood & Ida development project for their consideration and
recommendation to the Bozeman City Commission; and
WHEREAS, the developer, Cottonwood & Ida LLC, proposes to fund the construction of
all private and public improvements associated with this project upfront and seek reimbursement
Northeast Urban Renewal District Board
Resolution 2018-02
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for the proposed public infrastructure improvements through the issuance of tax increment
urban renewal revenue bonds pursuant to Section 7-15-4255, MCA; and
WHEREAS, the spending of tax increment financing funds on infrastructure improvements
is allowed pursuant to Section 7-15-4288, MCA; and
WHEREAS, the Board believes the proposed project as presented appears to meet the
mission/vision in the Northeast Urban Renewal District Plan as well as Guiding Principle 1 and its
Goals A, B and C; Guiding Principle 2 and its Goals; Guiding Principle 3 and its Goals A and B;
Guiding Principle 4; and Guiding Principle 5 through the increased taxable value within the
district. The project also meets the intent of Principles 6 and 8 through the public review process;
and Principles 7 and 9 are not applicable to the proposed development; (Exhibit 1) and
WHEREAS, the proposed project seeks to improve existing and deficient infrastructure
within the District including adjacent water, sewer, strormwater, streets and public parking
facilities.
WHEREAS, the Board supports the intent of the Memorandum of Understanding which is
intended to serve as a starting point for the parties to consider the preparation and negotiation
of the Development Agreement. The MOU does not, and no party should construe this MOU to,
obligate either party to enter into the Development Agreement and either party may determine
in its discretion not to enter into the Development Agreement. Moreover, nothing contained in
the MOU (i) obligates the City to finance or pay or reimburse the Developer for any costs related
to the Proposed Project, or (ii) indicates or evidences that the City has approved or will approve
the Proposed Project or any portion thereof. Without limitation of the meaning of the foregoing
(ii), the Developer acknowledges and agrees that the Proposed Project is scheduled to be
reviewed as a planned unit development (“PUD”) under the City’s municipal code and policies
and procedures and nothing contained in this MOU will have a bearing upon or affect the City’s
review and, if applicable, approval of the Proposed Project as a PUD. The City should retain all
powers and rights conferred upon it with regard to the PUD without any liability to or limitation
on the City, including, but not limited to, the right, within legal limits, to reject all or a portion of
the Proposed Project or impose conditions or limitations on the Proposed Project. In addition,
the MOU does not affect or limit the City’s other regulatory powers with regard to the Proposed
Project, including, without limitation, those relating to building permits or other permits or the
payment of fees; and
WHEREAS, before tax increment is pledged to support the public portions of the project,
the city must enter into a negotiated development agreement with the developer; and
WHEREAS, at its regular monthly meeting held on February 6, 2018 the Board voted to
approve Resolution 2018-01 supporting the Cottonwood & Ida development concept.
NOW, THEREFORE, BE IT RESOLVED, that the City of Bozeman Northeast Urban Renewal
District Board, having heard the presentations and considered the proposed Memorandum of
Northeast Urban Renewal District Board
Resolution 2018-02
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Understanding for the Cottonwood & Ida Project, hereby forwards a resolution of Board support
of the Memorandum of Understanding to the Bozeman City Commission for their consideration
and approval. (Exhibit 2)
BE IT FURTHER RESOLVED, that the City of Bozeman Northeast Urban Renewal District
Board may, in the future, consider forwarding additional recommendations regarding the
issuance of tax increment urban renewal revenue bonds to reimburse costs of public
infrastructure improvements constructed in compliance with applicable local codes and state
statutes.
DATED THIS __ DAY OF ___ 2018.
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John Usher, Chair
Northeast Urban Renewal District Board