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Home My WebLink About08-02-18 Midtown PacketBozeman Midtown Urban Renewal Board Thursday, August 2, 2018, 4:30pm, Bozeman City Hall, 121 North Rouse Avenue, Madison Conference Room A. Call meeting to order at 4:30 pm B. Changes to the Agenda C. Public Comment Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. D. Approve Minutes 1. Special Meeting, November 15, 2016 2. Regular Meeting, May 3, 2018 E. Action Items 1. Monarch, Bozeman Midtown TIF Assistance Request 2. Midtown Streetscape Project Modification and Updates F. FYI/Discussion G. Adjournment – 6:00 pm For more information please contact David Fine, dfine@bozeman.net . This board generally meets the first Thursday of the month from 4:30pm to 6:30pm Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Chuck Winn at cwinn@bozeman.net, 582‐3207 (TDD 582‐2301). Page 1 of 2 Unapproved action minutes from November 15, 2016 board meeting Accompanies Audio Recording as the Official Record held at the City Hall, Madison Room In attendance: Andrew Cetraro, Esther Schwier, Scott Hedglin, David Fine, Carl Solvie, Bill Fogarty, Austin Rector, Jeff Krauss A. Call to Order – Scott called the meeting to order at 5:00pm. B. Changes to the Agenda  Reverse Action Item E.1 and Action Item E.2. C. Public Comment  None. D. Special Presentations 1. PT Land Presentation, Troy Miller Bennett Hospitality E.2. Action Item – Bozeman Exchange Associates, LLC (City Center Hotel), Demolition and Site Improvements Grant Application  Cetraro moved to approve grant application for $50,000. Fogerty seconded. o All in favor, the motion passed. E.1. Action Item – Bozeman Exchange Associates, LLC (City Center Hotel), Technical Assistance Grant Application  Cetraro moved to approve the Technical Assistance Grant application for $7,200. o The motion failed for lack of a second. E.3. Action Item  Midtown Node Redevelopment Project, Leland Consulting Group o Chris Zahas (LGC), Alisa Pyzska (LGC), and team members Lauren Waterton from Sanderson-Stewart, and Dusty Eaton from A&E Architects presented an update on the Midtown Node Redevelopment planning effort. F. FYI/Discussion  None G. Adjournment  Scott adjourned at 6:30pm. Page 2 of 2 Attachment A Page 1 of 2 Unapproved minutes from May 3, 2018 special board meeting held at the City Hall, Madison Room TO DO List: Everyone attend June 7 board meeting In attendance: Carl Solvie, David Fine, Scott Hedglin, Andrew Cetraro, Josh Palmer, Nick Rodgers, Susan Fraser, Kevin Cook, Bill Fogarty A. Call to Order – Scott called the meeting to order at 4:30pm. B. Changes to Agenda - None C. Public Comment - None D. Approve Minutes from April meeting Carl motioned acceptance; Andrew seconded the motion. All in favor. E.1. Action Item – Midtown Streetscape Kevin Jacobsen with Morrison-Maierle joined the table. Discussion opened with RSVP project is progressing; irrigation is a little behind schedule but otherwise going well. Mendenhall to Beall project is now back to MDT for approval after we answered their initial questions. Hopefully will hear back from them in one month. David rehashed MDT’s director’s April visit, including onsite discussion about crossing safety at Villard. Essig’s administrative settlement (easement) finalized. E.4. Action Item – Streamline route Lee Hazelbaker joined the table at Scott’s request. Lee thanked the board for this time. He shared the bus program’s status: funding is very limited, about tapped out; thinking about creating Unified Transportation District for funding stream. Scott asked the board members in hospitality business what would help them, considering current routes: https://streamlinebus.com/routes-schedules/route-maps/ . Discussion. David said MURB could pay for a bus stop installation but cannot put money towards costs of the bus service. Lee said actual cost is $75/hour to run one bus. E.2. Action Item – FY19 Work Plan and Budget David walked thru the budget draft one item at a time (see Attachment A). Discussion. Kevin motioned approval as presented; Bill seconded. All in favor. E.3. Action Item – Election of Officers Kevin nominated Andrew for Chair; Carl seconded. All in favor. Kevin will continue as Vice Chair and Susan will continue as Recorder. All in favor. FYI - Website up and running: http://midtownbozeman.org/ Adjournment Scott adjourned at 5:40pm. Page 2 of 2 Attachment A BOZEMAN MIDTOWN TIF ASSISTANCE REQUEST MONARCH MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request PROPERTY INFORMATION • APPLICANT INFORMATION • COMPANY PROFILE • PROJECT DETAIL PART 1 Midtown Urban Renewal District TAX INCREMENT FINANCING APPLICATION PART 1 Property Information Property Address: ____________________________________________________________ Property Owner: _____________________________________________________________ Legal Description: ____________________________________________________________ Property Geo-Code: __________________________________________________________ County Tax ID #: ____________________________________________________________ Applicant Information  Property Owner  Tenant  Developer  Other Applicant’s primary contact: Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: _______________________________Cell Phone: _______________________ Email: ________________________________________ Project Representative (if not applicant): Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: _______________________________Cell Phone: _______________________ Email: ________________________________________ Property Owner (if not applicant): Name: ________________________________________________________________________ Business Name: _________________________________________________________________ Business Phone: _______________________________Cell Phone: _______________________ Email: ________________________________________ Peach Street / Lot 1-A-2 Peach Street Property, LLC SHONKWILER ADD, S01, T02 S, R05 E, Lot 1-A-2, PLAT E-4-B 06-0798-01-4-05-52-0000 RGG69323 4 4 Julien Morice Peach Street Property, LLC 406-581-9999 406-581-9999 j@ironwoodd.com Jenn Clary Encompass V2 LLC 406-540-4437 406-880-2841 jenn@encompassv2.com Page 6 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 Please attach a list of all other property owners, business partners, developers and/or investors associated with this project, with the above information provided for each. This application must be signed by both the applicant(s) and the property owner(s) (if different). I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to participate in the Midtown Urban Renewal District TIF assistance program. I (we) understand that failure to comply with the terms of the TIF assistance program may result in revocation of an award. I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority, and must receive all required approvals prior to commencing the work. I (we) understand if approved for TIF assistance, the work to be performed must also be in accordance with TIF assistance program procedures and the general design guidelines for the District, as well as the specific plans approved for the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be assessed for my project. Further, I (we) agree to grant City personnel and other review agency representative’s access to the subject site during the course of the review process (Section 38.34.050, BMC). Applicant (s) (Print Name) Signature of Applicant Date Property Owner(s) (Print Name) Signature of Property Owner Date Julien Morice 06/08/2018 Peach Street Property, LLC 06/08/2018 Page 7 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 Company Profile Business Location  New business establishing itself in Bozeman  Existing business  Expanding/remodeling at same location  Expanding to an additional location  Existing business relocating from (identify location): Street Address: City: State: Zip:  Other: Year Business Established: Type of Business (Describe): Has a business plan been developed in relation to the proposed project?  No (Development of a business plan may be required as part of the application process.)  Yes (Include a copy with the application.) 605 West Peach Street Bozeman MT 59715 2018 Mixed-Use Office/Residential Page 8 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 Project Detail Property Status:  Vacant land  Building on leased land – Describe:  Land and building(s) – Describe: Type of TIF Assistance Sought:  Requesting assistance for public infrastructure costs  Building demolition Value of TIF Assistance Sought: $ Will this project proceed if TIF assistance is not granted?  No  In a limited fashion (explain):  Yes, but at a later date (explain):  Yes, as scheduled  Other: 1. Project Narrative Provide an overview of the project in narrative format. The narrative must include a description of the following aspects of the project:  Proposed use(s) or project (e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc.)  Construction information about the project including size of any existing structure to be demolished or rehabbed; sized of any new construction; types of construction materials (structural and finish); delineation of square foot allocation by use;  Total number and individual square footage of residential units; type of residential units (e.g. for-sale, rental, condominium, single-family, etc.); number and type of parking spaces provided; and construction phasing. Page 9 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 2. Site Maps and Building Plans The Applicant must submit a completed Conceptual Review Application to the Board and concurrently to the Community Development Department. The Conceptual Review application must include, at minimum:  Photographs of project site and/or building  Map showing the location of the site and its immediate surroundings  Proposed development plans including site plans, floor plans indicating square footage and layout, building elevations  Description of parking accommodations for residential units and commercial uses  Estimated date of occupancy Prior to Board action on the grant application, the Applicant must have obtained and provide to the Board the Community Development Director’s written comments on the proposed development from the Conceptual Review Application. Page 10 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 CRITERIA FOR TIF ASSISTANCE In reviewing the TIF assistance application the Board will evaluate each project utilizing the following criteria and point system. Points can range from 0 to the maximum shown below in each category. Please rate your project according to the following criteria. To receive points for any given item, documentation demonstrating adherence to the criteria must be submitted with the application. The Board will use this information to evaluate the project. Overall District Relevance Points 1. Relevance to the Midtown Urban Renewal Plan – Documentation of the project’s impact in relation to the goals and objectives of the Midtown Urban Renewal Plan, particularly mixed-use development. Urban design elements will also be considered, including pedestrian emphasis and quality of design. /5 Promote Economic Development 2. Tax Generation: The project will increase the taxable value within the District. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor’s office or State Department of Revenue to determine tax increment generation. Submit documentation of estimated tax projections to receive points for this criteria /4 3. Elimination of Blight – The project’s direct and indirect impact on the physical and fiscal deterioration within the Tax Increment Financing District and the community. Submit information showing current conditions of property. /4 4. Employment Generation – Total employment generated by the project assessed in terms of new permanent and part-time jobs, and construction jobs. Submit documentation of estimated new jobs to receive points for this criterion. /3 Improve Multi-Modal Transportation 5. Facilitates Public Health and Mobility: Project will construct or improve sidewalks, including ADA access to buildings. Provide detailed information demonstrating that the current condition inhibits public health and mobility. /1 6. Reduces Resource Demand: Project promotes the use of transit, ride sharing, or car sharing. Provide plans, agreements or other methods to demonstrate reduction of resource demand. /1 7. Promotes Active Transportation: Project promotes bicycling as an active transportation option by constructing or improving bike lanes, providing covered bike parking, and/or participating in a bike share program. Provide plans, agreements or other methods to demonstrate reduction of resource demand. /2 Improve, Maintain and Support Innovation in Infrastructure 8. Infrastructure Improvements: Project promotes innovation in infrastructure and/or reduces long term costs of maintenance. Provide plans and descriptions of innovations proposed. /2 5 4 4 3 1 1 2 2 Page 11 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 Promote Unified Human Scale Urban Design 9. The project improves the street frontage by eliminating parking between the right-of-way and the building. Provide plans to demonstrate improvement in street frontage. /2 10. The project reduces the number of vehicular access points to the property and improves the pedestrian experience. Provide plans, agreements or other methods to demonstrate reduction. /2 11. The project enhances the North 7th Ave. entryway corridor by having buildings oriented toward the street and designed to provide interest and activity. /3 12. The project enhances the pedestrian experience with elements such as façade transparency, building articulation, street furniture and/or landscaping. Submit plans and details that address this criterion. /3 13. The quality of development and overall aesthetics (architectural, site design, landscaping, etc.) are beyond that which is minimally required by the UDC. Submit documentation to demonstrate compliance with this criterion. /2 Support Compatible Urban Density Mixed Land Uses 14. The project increases housing units within the District. Submit plans demonstrating an increase in the number of housing units. /4 15. The project has a mix of uses, including residential. Submit plans detailing the proposed mix of uses within the project. /4 16. The project shares parking among compatible uses. Provide details demonstrating compliance with the UDC and as well as total number of parking spaces reduced because of a shared arrangement. /2 Total Points /44 APPROVAL (For Official Use Only) Approval Status: Date Approved: Date Letter of Award Sent: Date Certificate of Completion: Date of Payment Request: 2 2 3 3 2 4 4 2 44 PROJECT INFO MONARCH PROJECT ARCHITECTPROJECT MANAGER PROJECT NAME Spring 2019 ESTIMATE DATE OF OCCUPANCY PROPERTY INFO Physical Address: 605 West Peach Street Bozeman, MT 59715 Legal Description: SHONKWILER ADD, S01, T02 S, R05 E, Lot 1-A-2, PLAT E-4-B Property Geo-Code: 06-0798-01-4-05-52-0000 County Tax ID: RGG69323 Property Owner: Peach Street Property, LLC Julien Morice Ironwood Development 406-581-9999 j@ironwoodd.com Jenn Clary Encompass V2, LLC 406-540-4437 jenn@encompassv2.com PROJECT DESCRIPTION The Monarch is a mixed-use commercial/residential building located in the heart of Bozeman’s Midtown District. This building will provide two commercial units with a shared common break room and restrooms on the basement floor and two commercial units with a shared common break room and restrooms on the main floor for office use. Three residential units will resided on the upper floor. Bozeman Midtown TIF Assistance Request MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA A B M1 L1 C M2 L2 UPPER LEVEL The upper level includes three residential units. The open concept floor plan includes high ceilings, large windows, air conditioning, private patios, high-speed internet fiber and one designated parking space per unit. Unit A & C • 1,086 Sq Ft • 117 Sq Ft Patio • 2 Bedroom + 2 Bath • Stainless Steel Appliances • Quartz Countertops • Vaulted Ceilings in Living Room & Master • Stackable Washer/Dryer • Gas Fireplace Unit B • 420 Sq Ft • 126 Sq Ft Patio • 1 Bath • Stainless Steel Appliances • Quartz Countertops • Stackable Washer/Dryer MAIN LEVEL The main level includes two commercial units with a shared common break room and restrooms. Each unit includes large windows, spacious patio areas, high-speed internet fiber and two entrances. Unit M1 • 2,130 Gross Sq Ft • 380 Sq Ft Shared Patio • 652 Sq Ft Side Patio • Shared Break room & Restrooms • High-Speed Internet Fiber Unit M2 • 1,923 Gross Sq Ft • 380 Sq Ft Shared Patio • 445 Sq Ft Side Patio • Shared Break Room & Restrooms • High-Speed Internet Fiber MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 605 WEST PEACH STREET \\ BOZEMAN MONTANA LOWER LEVEL The lower level includes two commercial units with a shared common break room and restrooms. Each unit includes large windows, private patios, high-speed internet fiber and one entrance. Unit L1 • 1,721 Gross Sq Ft • 130 Sq Ft Private Patio • Shared Break room & Restrooms • High-Speed Internet Fiber Unit L2 • 1,669 Gross Sq Ft • 78 Sq Ft Private Patio • Shared Break room & Restrooms • High-Speed Internet Fiber Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 11- Fee Simple, Free and Clear MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request The 0.443 acre B-2M zoned property sits on the north side of Peach Street, immediately behind the Verizon store on North 7th. The site currently has remnants of an existing parking lot and building which will be demolished with this development. The Monarch is a mixed-use commercial/residential building located in the heart of Bozeman’s Midtown District. This building will provide four commercial units with a shared common break room and restrooms on the basement floor and two commercial units with a shared common break room and restrooms on the main floor for office use. Three residential units will resided on the upper floor. The 21,884± gross sf building will face Peach Street and be accessed by a shared use drive with the commercial building to the east. The proposed parking will be behind the building to the north. Pedestrian access will be provided from Peach Street. The modern design will provide much needed added value to the area. The design reflects large open windows for the office tenants which creates a transparent connection with the outside area as well as the inside spaces. As well, spacious porch areas above the street will provide openness and the ability to sit outside and be above the vehicular traffic a bit while still engaging with the neighborhood. Essentially the design allows for each tenant, whether office or dwelling, to use all decks and patios. We utilize those connections to enhance the building facade. Cantilevered structural components create shading and visual interest. The materials are chosen to be the most durable to ensure long lasting life span. We want the building to be seen as a valuable addition for years to come. We will utilize shaped, pre-finished Metal Siding, cedar lap/screen in soffit and recessed entrances, concrete and composite siding to be painted. As well, concrete ramps, porches, stairs will finish the foundation portion of the project. It is anticipated the solid waste will be disposed of in the existing trash enclosure with a shared use agreement and water and sewer services will be extended from Peach Street. The project will be built at one time. No phasing is proposed. The project is projected to be completed by Spring of 2019. PROJECT NARRATIVE Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 13MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA PHOTOS Bozeman Midtown TIF Assistance Request Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 15A3.4EXTERIOR 3DIMAGES10-11-1717.115ev2 Job #:CONCEPT REVIEW11-21-173-30-181535 liberty lanesuite 110bmissoula, montana59808phone: 406.540.4437SCALE :13D View - Southwest CornerN.T.S.SCALE :23D View - Northwest CornerN.T.S.SCALE :33D View - Northeast CornerN.T.S.SCALE :43D View - Southeast CornerN.T.S.LANDSCAPING SHOWN IS REPRESENTATIONAL.SEE CIVIL FOR LANDSCAPING PLAN.LANDSCAPING SHOWN IS REPRESENTATIONAL.SEE CIVIL FOR LANDSCAPING PLAN.LANDSCAPING SHOWN IS REPRESENTATIONAL.SEE CIVIL FOR LANDSCAPING PLAN.LANDSCAPING SHOWN IS REPRESENTATIONAL.SEE CIVIL FOR LANDSCAPING PLAN. Bozeman Midtown TIF Assistance Request MONARCH WEST PEACH N. 7TH AVE MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA MAPS Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 17GARBAGEENCLOSURE LOT 1-A-2 LANDING LANDING LANDINGDN ACCESSIBLE ROUTERAMP OFFICE 1RM#1248 NET SQ FT WINDOW WELLBELOW OFFICE 2RM#1248 NET SQ FT FDCDN DN DN DN DN DN DN WINDOW WELLBELOW WINDOW WELLBELOWWINDOW WELLBELOW UP EXISTING SIDEWALK18'-0"9'-0"24'-0"18'-0"24'-0"30'-5 3/4" +/- 21 SPACES SHOWN (SHARED & REDUCTION BEING INVESTIGATED) MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA PARKING MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request PROJECT TIMELINE • PUBLIC BENEFITS • PROJECT FINANCIAL INFORMATION PART 2 Page 12 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 PART 2 FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE 1. Detailed Project Information Submit the following information regarding the project requesting TIF assistance.  Project Timeline A project timeline is required. Include anticipated dates for site acquisition, project start and completion, as well as other project milestones. Multi-phase projects must include details for each phase. The timeline should also identify any critical or time-sensitive dates as well as any time constraints facing the applicant.  Public Benefits Fully describe the public benefits that can be realized by the completion of this project. Projects with a high degree of public benefits are typically more likely to receive TIF assistance. Examples of public benefits include, but are not limited to the following:  Re-occupancy of a vacant building  Elimination of blight  Creation of new retail choices  Increased tax revenue  Job-training opportunities This statement should include qualitative examples of public benefits as well as quantifiable and measurable outcomes of the short-term and long-term benefits to the District. Include documentation in support of estimates of public benefits. 2. Project Financial Information In order for the Midtown Urban Renewal District Board to adequately review applications seeking TIF assistance, the following information must be submitted with the application.  Sources & Uses of Funds Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, other anticipated types of public assistance, and any other types or methods of financing. Describe the sources of equity and include a term sheet for lender financing, if available. TIF assistance is available as a reimbursement after the project is complete. Thus, the project budget must identify the up-front sources intended to finance the development costs of the project. If determined, specify the specific line items of the project budget that each source will finance. Page 13 of 13 Midtown Urban Renewal District TIF Assistance Revised January 2017 Summarize the uses of funds. General categories to be identified include: acquisition and related site costs, hard construction costs, and a breakdown of soft costs.  Development Budget Provide an accurate and detailed development budget for the project that includes a detailed breakdown of significant line item costs consistent with the sample included in the application packet. The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs. Also, identify all line items that are performed by the developer, owner, or related entities.  Budget of TIF Eligible Expenses Identify which of the development budget costs are eligible for reimbursement as allowed by 7-15-4288, MCA.  Financial Commitments Submit commitment letters and/or term sheets from all lenders for proposed debt (such as construction, mezzanine, permanent, and government financing) and all other financial sources of the project (such as grants, and tax credits). Commitment letters must clearly specify the nature and terms of the obligations. MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 21TIMELINE DEC / JAN / FEB MAR / APR / MAY JUN / JULY / AUG SEP / OCT / NOV DEC / JAN / FEB MAR / APR / MAY CONSTRUCTION Evaluation and concept for the Monarch project began in July of 2017. Planning and review is to be completed in the spring of 2019. Demo will begin in the summer, starting Aug 1st. Following demo and the relocation of utilities, construction will begin September 1st. The Monarch project will be built at one time. No phasing is proposed. Completion of the project is projected for the spring of 2019. PLANNING & REVIEW EXCAVATION / FOUNDATION CONCEPT & DESIGN DEMO / UTILITY RELOCATION COMPLETE FINISHING WORK 04 PUBLIC BENEFITS 01 02 03 Bozeman Midtown TIF Assistance Request Re-occupancy of Vacant Land Lot 1-A-2 was the past home of local bank. Since it’s demolition this lot has sat vacant for a couple of years. The Monarch will be a redevelop- ment project that will make the area more vibrant and desirable which will draw activity to the Bozeman Midtown District. Elimination of Blight Currently Lot 1-A-2 consists of vacant land and an empty parking lot. The Monarch’s modern design will provide much needed added value to the area. The design reflects large open windows for the office tenants which creates a transparent connection with the outside area as well as the inside spaces. As well, spacious porch areas above the street will provide openness and the ability to sit outside and be above the vehicular traffic a bit while still engaging with the neighborhood. Essentially the design allows for each tenant, whether office or dwelling, to use all decks and patios. We utilize those connections to enhance the building facade. Cantilevered structural components create shading and visual interest. Creation of New Office/Retail Spaces The Monarch, a mixed-use building, has four office/retail spaces available. The spaces will range from approximately 1,385 to 2,130 gross square feet. Each unit has large windows, spacious porch areas and share a common parking lot with ample free parking. New businesses in the area will draw activity and provide new jobs. Urban Living Options There are three dwellings available on the upper level of the Monarch. Each unit ranges from 420 to 1,088 square feet. Large windows provide beautiful views of the mountains, cityscape and big sky. Walkability options are endless with nearby schools, restaurants, services and downtown only blocks away. MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA 05 PUBLIC BENEFITS Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 2306 Increased Tax Revenue With the construction of the Monarch this will create new commercial and residential spaces which in turn will creates new jobs, additional sales and property taxes. All of these items will enhance the infrastructure and services in the Bozeman Midtown District. See estimated property taxes include in the budget. New Jobs and Local Sales With the construction of the Monarch building Ironwood Development will be hiring 30+ local subcontractors and suppliers. Supporting local businesses builds strong communities by linking everyone involved in a web of economic and social relationships that contribute the cities economic success, enriching the whole community. MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 605 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request SOURCES & USES OF FUNDS The Monarch Sources and Uses of Funds statement below shows a cash and land investment from Peach Street Property, LLC. Construction will be financed locally at either Opportunity Bank of Bozeman or First Security Bank of Bozeman. Peach Street Property, LLC is partnered by local business owners Ironwood, Inc and John Colter, Ltd. USES OF FUNDS LAND (Fair Market Value) $ 386,080.00 SOFT COSTS $ 150,000.00 - Engineering, Architecture, Planning, Permitting, Carrying Costs, Marketing, etc. HARD COSTS $ 2,177,767.26 - Direct Construction Costs TOTAL USES OF FUNDS $ 2,713,847.26 SOURCES OF FUNDS LAND | Peach Street Property, LLC $ 386,080.00 - Fee Simple, Free and Clear CASH | Peach Street Property, LLC $ 150,000.00 CONSTRUCTION LOAN $ 2,177,767.26 TOTAL SOURCES OF FUNDS $ 2,713,847.26 MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request MONARCH \\ MIXED-USE PROJECT - PAGE 25 DEVELOPMENT BUDGET MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 605 WEST PEACH STREET \\ BOZEMAN MONTANA Bozeman Midtown TIF Assistance Request TIF ELIGIBLE EXPENSES CITY OF BOZEMAN | Commercial Impact Fees $25,458.68 CITY OF BOZEMAN | Residential Impact Fees $14,392.90 CITY OF BOZEMAN | Cash In Lieu of Park Land $ 5,096.52 CITY OF BOZEMAN | Cash In Lieu of Water Rights $3,240.00 CITY OF BOZEMAN | Fiber/Conduit Installation $ TBD BOZEMAN EXCAVATION SEPTIC & TRUCKING | Demo $38,920.00 NORTH WESTERN ENERGY | Relocation of Services $18,377.00 NORTH WESTERN ENERGY | Primary, New Transformer, Gas and Electric Services $ 5,861.00 CS STRUCTURES | Fire Suppression - 4” Water Line $ 4,000.00 IRONWOOD DEVELOPMENT | Sidewalks $ 9,000.00 SPALDING EXCAVATION | Water & Sewer Hook-ups, Street Cut, Traffic Controls $ 25,000.00 ESTIMATED TOTAL $149,346.10 Midtown TIF Assistance Program Grant Application Staff Report “Monarch” Peach Street Property, LLC, Peach Street Lot 1‐A‐2 Date: July 13, 2018 To: Midtown Urban Renewal District Board From: David Fine, Economic Development Specialist Overview This project application is the third received under the new Midtown TIF Assistance Program. The new program places special emphasis on the five goals articulated in the urban renewal plan for relieving blighted conditions in the urban renewal area. Each of these five goals is further refined with particular criteria for a total of sixteen categories in which points can be received. In many categories, specific documentation must be received in order to receive points. The new program is designed to move away from the previous façade grant program to support projects that reinforced the goals of the new urban renewal plan, as well as projects that create significant new taxable value. Criteria for TIF Assistance Overall District Relevance 1. Relevance to the Midtown Urban Renewal Plan: Documentation of the project’s impact in relation to the goals and objectives of the Midtown Urban Renewal Plan, particularly mixed‐use development. Urban design elements are also considered, including pedestrian emphasis and quality of design. The project eliminates blight by demolishing a vacant and depreciating parking lot and replacing it with a contemporary building that adds retail, office space, and housing units and increases the taxable value of the property use. This 21,884 gross square foot vertical mixed‐use project locates a new building closer to the street adding interest and activity. The project and creates spaces for long‐term traded sector and retail jobs. [5 of 5] Promote Economic Development 2. Tax Generation: The project will increase the taxable value within the District. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor’s office or State Department of Revenue to determine tax increment generation. Submit documentation of estimated tax projections to receive points for these criteria. Leland Consulting Group (LCG) created a tax revenue generation model for the Midtown URD. Using data provided by the property owner, LCG estimates that the property will provide an annual net tax revenue increase of $39,829 for the District. The new construction value of the new property is $2,073,588 which represents a $1,270,000 increase in the value of the property. For the assumptions related to these projections, please see the LGC report. [4 of 4] 3. Elimination of Blight: The project’s direct and indirect impact on the physical and fiscal deterioration within the Tax Increment Financing District and the community. Submit information showing current conditions of property. The project eliminates blight by replacing a vacant parking lot with a 21,884 gross square foot vertical mixed‐use building that adds 3 housing units and increases the density of development on the property. [4 of 4] 4. Employment Generation: Total employment generated by the project assessed in terms of new permanent and part‐time jobs, and construction jobs. Submit documentation of estimated new jobs to receive points for this criterion. The project will generate temporary construction jobs. The inclusion of commercial and retail space in the project provides 7443 square feet of new space for employment. No specific tenants are associated with this application. [1 of 3] Improve Multi‐Modal Transportation 5. Facilitates Public Health and Mobility: Project will construct or improve sidewalks, including ADA access to buildings. Provide detailed information demonstrating that the current condition inhibits public health and mobility. The new building will be ADA accessible. [1 of 1] 6. Reduces Resource Demand: Project promotes the use of transit, ride sharing, or car sharing. Provide plans, agreements or other methods to demonstrate reduction of resource demand. While locating housing and commercial development in Midtown places it in a centrally located location, this project does not take particularly exceptional or innovative measures to promote transit use, ride sharing, or car sharing. [0 of 1] 7. Promotes Active Transportation: Project promotes bicycling as an active transportation option by constructing or improving bike lanes, providing covered bike parking, and/or participating in a bike share program. Provide plans, agreements or other methods to demonstrate reduction of resource demand. No qualifying covered bike parking is proposed. [0 of 1] Improve, Maintain, and Support Innovation in Infrastructure 8. Infrastructure Improvements: Project promotes innovation in infrastructure and/or reduces long‐ term costs of maintenance. Provide plans and descriptions of innovations proposed. The project, with TIF Assistance, plans to extend and utilize the City of Bozeman fiber conduit system. The project will relocate Northwestern Energy utilities servicing other parcels that essentially made the Monarch site undevelopable. [2 of 2] Promote Unified Human Scale Urban Design 9. Street Frontage: The project improves the street frontage by eliminating parking between the right‐ of‐way and the building. Provide plans to demonstrate improvement in street frontage. The building removes a residential driveway from the front of the building and all parking is tucked under the building with a driveway on the side of the building. Moving parking to the side and rear of structures is a new code requirement and is consistent with the vision of the Midtown Urban Renewal Plan. [2 of 2] 10. Vehicular Access Points: The project reduces the number of vehicular access points to the property and improves the pedestrian experience. Provide plans, agreements or other methods to demonstrate reduction. The Monarch developer acquired an easement from the adjacent property (Cellular Plus) that allowed the Monarch to share the existing drive approach rather than creating a new approach. [1 of 2] 11. Street Orientation: The project enhances the North 7th Ave. entryway corridor by having buildings oriented toward the street and designed to provide interest and activity. The proposed structure would orient the structure toward the street and provide new interest and activity. The developer is in the process of evaluating raising the first level to ground level, which would enhance visual interest and allow the developer to receive full points in this category. [2 of 3] 12. Pedestrian Experience: The project enhances the pedestrian experience with elements such as façade transparency, building articulation, street furniture and/or landscaping. Submit plans and details that address this criterion. The project provides some enhanced façade transparency and new landscaping along Peach St. frontage. The building could do more to engage the street and enhance the public realm through the use of enhanced landscaping and a raising the first floor to street level. No landscaping plan was submitted with this application. [1 of 3] 13. Quality of the Development Exceeds Minimum Requirements. The quality of development and overall aesthetics (architectural, site design, landscaping, etc.) are beyond that which is minimally required by the UDC. Submit documentation to demonstrate compliance with this criterion. Based on preliminary renderings, the project as proposed appears to exceed the minimal requirements of the UDC for architecture, site design, and landscaping. [2 of 2] Support Compatible Urban Density Mixed Land Uses 14. Increases Housing Units: The project increases housing units within the District. Submit plans demonstrating an increase in the number of housing units. The project includes three residential units. [3 of 4] 15. Mix of Uses Including Residential: The project has a mix of uses, including residential. Submit plans detailing the proposed mix of uses within the project. The project includes a mix of uses. [4 of 4] 16. Shared Parking: The project shares parking among compatible uses. Provide details demonstrating compliance with the UDC and as well as total number of parking spaces reduced because of a shared arrangement. The project provides parking for its uses and does not share parking among compatible uses. Future more detailed plans for parking could show a shared parking arrangement to receive points for this category. [0 of 2] Total Points (32/44) Staff Recommendation The Midtown TIF Assistance Program allows the payment of eligible costs of development to incentivize development that meets the goals of the urban renewal plan. The applicant is applying for several eligible cost areas totaling $149,346.10 (An earlier draft of this proposal requested $169.346.10 in expenditures. After a discussion with staff about cost eligibility, the applicant revised their application.) Staff finds that the proposed costs are eligible for TIF assistance. Leland Consulting Group (LCG) completed a financial analysis of the project (attached) to help staff evaluate the project. Their report analyzed return on investment (ROI), estimated payback period for the public assistance and proposed target metrics for the ratio of private investment to public assistance. Their analysis was based on awarding the applicant’s full assistance request. LCG recommends a ratio of private investment to public assistance of 8:1 or greater for commercial projects; the ratio for this project is 14.11:1. LCG also created a tax generation model for the Midtown URD. According to their model, the project would produce net new annual taxes of $39,829, which would allow TIF assistance to be paid back in 3.75 years for new increment‐based payback if assistance is provided at the staff recommended amount. This level of increment generation to payback ensures that the proposed project will contribute to the long‐term ability of the District to make investments in new projects. Staff scored the application based on the program criteria. Based on our review and the application materials presented, the project received 32 of 44 available points. The project eliminates blight and advances the District goal of creating urban density land uses and providing increased housing stock within the District to drive further commercial development. Staff recommends authorizing staff to negotiate a development agreement with the Applicant for presentation to the Bozeman City Commission for approval. Recommended motion: “I move to authorize staff to negotiate a development agreement with the Applicant for TIF Assistance not‐to‐exceed $149,346.10 and to recommend the Monarch project for TIF Assistance to the Bozeman City Commission.” Peach Street Property, LLC Tax Increment Analysis June 27, 2018 Prepared by: Andy Parks, CPA Leland Consulting/GEL Oregon, Inc. on behalf of the City of Bozeman Economic Development Department Summary Applicant plans to build a mixed-‐use commercial/residential building located in the heart of Bozeman's Midtown District. Applicant plans to invest approximately $2.074 million and is requesting $169,346 from the Agency. The following schedule summarizes our findings of our analysis. Estimated construction costs to complete project 2,073,588$ Estimated capitalized interest 46,656 Less: 2017 market value per assessor (improvements only)12,910 Net estimated increase in value 2,107,334 Estimated net increase in taxable value 39,829 TIF tax rate -‐ estimated -‐ FY 2020 707.66 Estimated incremental taxes (TIF) -‐ annual 28,185 TIF investment 169,346 ROI -‐ estimated 16.6% Estimated payback period (years)7.5 assumes 5.0% interest rate on advanced amount Private investment to public investment 11.24 Metric: Greater than 8 to 1 -‐ commercial Greater than 5 to 1 -‐ family wage jobs Assumptions Cost and timing information provided in application -‐ except construction financing which is estimated Estimated start date Aug-‐18 Estimated completion per application is approximately 10 months May-‐19 Spring 2019 Increase in property taxes applicable fiscal year 2020 Construction Interest -‐ estimated 46,656 12 month construction loan rate 6.00%Note: estimated commercial rate Current property taxes -‐ Estimated Financing Cost -‐ Construction Construction Financing Project Costs Amount Beg Month Ending Month Months of Interest Estimated Interest Aug 207,359 9 9,331 Sept 207,359 8 8,294 Oct 207,359 7 7,258 Nov 207,359 6 6,221 Dec 207,359 5 5,184 Jan 207,359 4 4,147 Feb 207,359 3 3,110 Mar 207,359 2 2,074 Apr 207,359 1 1,037 May 207,359 -‐ -‐ Estimated cost to complete 2,073,588 46,656 Note: Financing cost assues 10 month construction period, equal monthly expenditures throughout construction. Analysis has been performed to determine: Return on Investment (ROI), Estimated payback period and metrics related to private to public sector investment http://gis.gallatin.mt.gov/common/parcel_informati on.aspx?tab=taxcode&taxID=RGG3097&geocodeid=0 6079801405070000 Greater than 10 to 1 -‐ desired for multi-‐ family Property valuation is limited to the cost approach, i.e., cost to complete project -‐ real market value will likely differ. Different valuation methods include but are not limited to; income approach, sales comparisons, and Capital Asset Pricing Model.