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HomeMy WebLinkAboutNURB Draft Resolution 2018-02 v 3Northeast Urban Renewal District Board Resolution 2018-02 ~ 1 ~ 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 ~ 2 ~ 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 ~ 3 ~ 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. _________________________________ John Usher, Chair Northeast Urban Renewal District Board