HomeMy WebLinkAbout09-10-18 City Commission Packet Materials - C4. Grant Agreement with Peach Street Property, LLC for Mixed-Use Project
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Urban Renewal Program Manager SUBJECT: Authorize the City Manager to sign the Grant Agreement for a Midtown TIF Assistance Program Grant for “The Monarch” Mixed-Use Project at Peach Street Lot 1-A-2
MEETING DATE: September 10, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign the Grant Agreement for the Midtown Urban Renewal Board’s award of up to $149,346.10 in incentive funds from the Midtown TIF Assistance Program for The Monarch mixed-use project. BACKGROUND: Pursuant to Resolution 4770, the Bozeman City Commission created the Midtown TIF Assistance Program (the “Program”) and authorized the Midtown Urban Renewal District Board (MURB) to administer the Program. While the Commission authorized the MURB to administer the program, the Commission required the placement of grant awards of over $50,000 on the City Commission consent agenda for ratification of the MURB’s award. The City Commission has final approval over TIF incentives exceeding this threshold. The applicant is proposing an infill project to construct a three-story building featuring two floors of commercial space and three apartments on the upper level. The site, located behind the Cellular Plus Verizon retail store on Peach Street, is constrained by existing infrastructure; a gas main must be relocated to construct the project. To make the project feasible, the Applicant is requesting $149,346.10 in TIF assistance to pay for demolition, impact fees, cash-in-lieu of parkland, cash-in-lieu of water rights, infrastructure connections, the relocation of the gas main, and off-site public infrastructure. A detailed list of eligible grant expenses is located on page 26 of the grant application. Based on tax generation model created by Leland Consulting /GEL Oregon, the project generates enough new incremental tax revenue to recoup the investment in 5.3 years.i
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The recently adopted Midtown Urban Renewal District Action Plan promotes targeted, private investment with a specific vision for the corridor, based on the values of the urban renewal plan, which focuses on an increase in housing units and the promotion of urban density mixed use redevelopment. Staff finds that the grant award to The Monarch aligns with the Midtown Urban Renewal District Plan, the Midtown Action Plan, and the criteria of the Midtown TIF Assistance Program. The MURB voted 3-1 to approve the grant application.
FISCAL EFFECTS: The $149,346.10 is paid as a reimbursement of costs incurred by the Applicant and will likely come due in Fiscal Year 2020. As grants are awarded at the time of occupancy permit, the award will most likely occur in FY 2020 and the proposed work plan and budget for that fiscal year will include specific authorization for this grant award. ATTACHMENTS: 1. Midtown TIF Assistance Program Grant Agreement 2. The Monarch TIF Assistance Program Grant Application Staff Report for the The Monarch Project 3. Leland Consulting Group/ GEL Oregon tax generation report 4. The Monarch Grant Application LINKS: Resolution 4770 – Midtown TIF Assistance Program Resolution 4781 – Midtown Urban Renewal District Action Plan Midtown Urban Renewal Plan (2015)
i CORRECTION: The original tax generation analysis used a higher TIF assistance amount than the Applicant’s final request. There is also in an error in the Staff Report, as presented to the Midtown Urban Renewal Board and attached to this memorandum. In the report, staff divided the assistance amount by the “estimated net increase in taxable value” rather than by the “estimated incremental taxes”. This error explains why the Leland Consulting/GEL Oregon report shows a payback of 7.5 years, the Midtown URB Staff Report incorrectly shows a payback of 3.75 years, and this memorandum shows a payback of 5.3 years. We believe the estimated payback of 5.3 years is correct.
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 1
MIDTOWN TIF ASSISTANCE PROGRAM
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into this ____ day of __________, 20__ by and
between the City of Bozeman, Montana, a self-governing municipal corporation located at 121
N. Rouse Ave., Bozeman MT 59771 (“City”) as “Grantor” and Peach Street Property, LLC, a
Limited Liability Corporation located at 321 East Mendenhall, Bozeman, MT 59715 as
“Grantee.”
WHEREAS, on December 16, 2015, the Bozeman City Commission adopted Ordinance 1925, the
Bozeman Midtown Urban Renewal District Plan (“Plan”), defining the boundaries of the
Bozeman Midtown Urban Renewal District (“District”) and delineating goals and strategies for
eliminating blight, and authorizing the Bozeman Midtown Urban Renewal Board (“Board”) to
act as the agency to exercise urban renewal powers; and
WHEREAS, the Plan encourages commercial and residential development or redevelopment
through the use of incentives, such as, but not limited to, public infrastructure support; and
WHEREAS, the Board developed the Midtown Urban Renewal district Tax Increment Financing
Assistance Program (“Midtown TIF Assistance Program”) to grant monies appropriated by the
City Commission for grant assistance in the Board’s Annual Work Plan and Budget; and
WHEREAS, on January 23, 2017 the Bozeman City Commission adopted Resolution No. 4770
establishing policies for the granting of funds by the Board to a requesting entity through the
Midtown TIF Assistance Program; and
WHEREAS, the intent of these funds is to offset the cost of redevelopment of substandard or
“blighted” properties within the District; and
WHEREAS, Grantee is the developer of The Monarch mixed-use development (the “Project”) to
be located at 605 West Peach, Bozeman MT; and
WHEREAS, Grantee presented a request to the Board for a grant of up to $149,346 to be used
for demolition of existing structures, impact fees, and cash-in-lieu of parkland; and
WHEREAS, on August 2, 2018 the Bozeman Midtown Urban Renewal Board approved the grant
request in the amount of $149,346 (“grant award”) documented in the minutes of the August 2,
2018 meeting; and
WHEREAS, on September 10, 2018, the City Commission approved the grant award.
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 2
THE PARTIES AGREE:
1. The Grant. The City, through the Board, will grant and release to Grantee a sum of up to
one hundred forty-nine thousand, three hundred forty-six dollars ($149,346) (the
“Grant”) pursuant to the payment terms in Section 3.
2. Use of Grant Funds.
a. Grant funds will be used by Grantee for the sole purpose of reimbursing
demolition costs, impact fees, cash-in-lieu of parkland, cash-in-lieu of water
rights, the provision of electricity and gas service to the site, and the connection
to and the provision of public infrastructure as described in the approved grant
application.
b. Grant funds must be used within two years of the date of the execution date of
this Agreement. Any funds not disbursed to the Grantee within that time will
remain in the District fund. The Board, in its sole discretion, may provide an
extension of up to one year to the original two year timeframe.
c. Use of TIF assistance funds must be in compliance with the terms of this Grant
Agreement.
3. Payment of Grant Funds
a. The Grant payment will be applied toward reimbursement of demolition costs,
impact fees, cash-in-lieu of parkland, cash-in-lieu of water rights the provision of
electricity and gas service to the site, and the connection to and the provision of
public infrastructure as described in the approved grant application, following
the issuance of the certificate of occupancy for the Project, unless the Board
reasonably determines, in its sole discretion, Grantee has failed to meet its
obligations pursuant to sections 2, 3(b), 4, 5, 9, or 10 of this Agreement.
b. Should Grantee receive additional funding for the Project from other funding
sources, or if for any other reason Grantee requires less than $149,346 to fully
fund the Project, it will notify the Board of such reduction in need as soon as
reasonably possible and the Board may reduce the amount of the Grant and the
payment(s) of Grant funds.
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 3
4. Grantee Representations. Grantee represents and warrants to City:
a. Grantee has familiarized itself with the nature and extent of this Grant
Agreement, the contents of Resolution 4770 (attached hereto as Exhibit A) and
with all local conditions and federal, state and local laws, ordinances, rules, and
regulations that in any manner may affect Grantee’s obligations under this Grant
Agreement.
b. Grantee has familiarized itself with applicable City of Bozeman procurement
regulations related to bidding, hiring, and prevailing wages and agrees to comply
with such regulations if applicable.
c. Grantee has the power to enter into and perform this Grant Agreement.
d. The Grant funds are necessary to accomplish the financing requirements of the
Project.
5. Reports/Accountability/Public Information. Grantee agrees to develop and/or provide
such documentation as requested by the Board demonstrating Grantee’s compliance
with the requirements of this Grant Agreement. Grantee shall allow the Board or the
City, its auditors, and other persons authorized by the Board to inspect and copy its
books and records for the purpose of verifying that monies provided to Grantee
pursuant to this Grant Agreement were used in compliance with this Grant Agreement
and all applicable provisions of federal, state, and local law. Grantee will retain such
records for fifteen years after receipt of final payment under this Agreement unless
permission to destroy them is granted by the Board.
6. Default and Termination. If Grantee fails to comply with any condition of this Grant
Agreement at the time or in the manner provided for, the City may terminate this
Agreement if the default is not cured within thirty (30) days after written notice is
provided to Grantee. The notice will set forth the items to be cured. If this Grant
Agreement is terminated pursuant to this Section, Grantee will repay to the City any
Grant funds already disbursed to Grantee or applied toward impact fees or cash-in-lieu
owed by Grantee for the Project.
7. Limitation on Grantee’s Damages; Time for Asserting Claim
a. In the event of a claim for damages by Grantee under this Grant Agreement,
Grantee hereby expressly waives any right to claim or recover consequential,
special, punitive, lost business opportunity, lost productivity, field office
overhead, general conditions costs, or lost profits damages of any nature or kind.
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 4
b. In the event Grantee wants to assert a claim for damages of any kind or nature,
Grantee shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of
damages sought by the claim, within ninety (90) days of the facts and
circumstances giving rise to the claim. In the event Grantee fails to provide such
notice, Grantee shall waive all rights to assert such claim.
8. Representatives
a. City’s Representative. The City’s Representative for the purpose of this
Agreement shall be David Fine or such other individual as City shall designate in
writing. Whenever approval or authorization from or communication or
submission to City is required by this Agreement, such communication or
submission shall be directed to the City’s Representative and approvals or
authorizations shall be issued only by such Representative; provided, however,
that in exigent circumstances when City’s Representative is not available,
Grantee may direct its communication or submission to other designated City
personnel or agents and may receive approvals or authorization from such
persons.
b. Grantee’s Representative. Grantee’s Representative for the purpose of this
Grant Agreement shall be Julien Morice, or such other individual as Grantee shall
designate in writing. Whenever direction to or communication with Grantee is
required by this Agreement, such direction or communication shall be directed
to Grantee’s Representative; provided, however, that in exigent circumstances
when Grantee’s Representative is not available, City may direct its direction or
communication to other designated Grantee personnel or agents.
9. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law,
Grantee agrees to defend, indemnify and hold the City and its agents, representatives,
employees, and officers (collectively referred to for purposes of this Section as the City)
harmless against all third party claims, demands, suits, damages, losses, and expenses,
including reasonable defense attorney fees, which arise out of, relate to or result from
Grantee’s (i) negligence or (ii) willful or reckless misconduct.
Such obligations shall not be construed to negate, abridge, or reduce other rights or
obligations of indemnity that would otherwise exist. The indemnification obligations of
this Section must not be construed to negate, abridge, or reduce any common-law or
statutory rights of the indemnitee(s) which would otherwise exist as to such
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 5
indemnitee(s). Grantee’s indemnification obligations under this Section shall be without
regard to and without any right to contribution from any insurance maintained by City.
Should any indemnitee described herein be required to bring an action against Grantee
to assert its right to defense or indemnification under this Grant Agreement or under
Grantee’s applicable insurance policies required below the indemnitee shall be entitled
to recover reasonable costs and attorney fees incurred in asserting its right to
indemnification or defense but only if a court of competent jurisdiction determines
Grantee was obligated to defend the claim(s) or was obligated to indemnify the
indemnitee for a claim(s) or any portion(s) thereof.
In the event of an action filed against City resulting from the City’s performance under
this Grant Agreement, the City may elect to represent itself and incur all costs and
expenses of suit.
Grantee also waives any and all claims and recourse against the City or its officers,
agents or employees, including the right of contribution for loss or damage to person or
property arising from, growing out of, or in any way connected with or incident to the
performance of this Grant Agreement except “responsibility for his own fraud, for willful
injury to the person or property of another, or for violation of law, whether willful or
negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Grant Agreement.
In addition to and independent from the above, Grantee shall at Grantee’s expense
secure insurance coverage through an insurance company or companies duly licensed
and authorized to conduct insurance business in Montana which insures the liabilities
and obligations specifically assumed by Grantee in this Section. The insurance coverage
shall not contain any exclusion for liabilities specifically assumed by Grantee in this
Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the
City without limit and without regard to the cause therefore in amounts not less than as
follows:
• Workers’ Compensation – statutory;
• Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 6
The City of Bozeman, its officers, agents, and employees, shall be endorsed as an
additional or named insured on a primary non-contributory basis on the Commercial
General policy. The insurance and required endorsements must be in a form suitable to
City and shall include no less than a thirty (30) day notice of cancellation or non-
renewal. The City must approve all insurance coverage and endorsements prior to
disbursement of Grant funds. Grantee shall notify City within two (2) business days of
Grantee’s receipt of notice that any required insurance coverage will be terminated or
Grantee’s decision to terminate any required insurance coverage for any reason.
10. Nondiscrimination. Grantee agrees that all hiring by Grantee of persons performing this
Grant Agreement shall be on the basis of merit and qualifications. Grantee will have a
policy to provide equal employment opportunity in accordance with all applicable state
and federal anti-discrimination laws, regulations, and contracts. Grantee will not refuse
employment to a person, bar a person from employment, or discriminate against a
person in compensation or in a term, condition, or privilege of employment because of
race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual
or perceived sexual orientation, gender identity, physical or mental disability, except
when the reasonable demands of the position require an age, physical or mental
disability, marital status or sex distinction. Grantee shall require these
nondiscrimination terms of its subcontractors providing services under this Grant
Agreement.
11. Attorney’s Fees and Costs. In the event it becomes necessary for a party to this
Agreement to retain an attorney to enforce any of the terms or conditions of this
Agreement or to give any notice required herein, then the prevailing party shall be
entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in-
house counsel to include City Attorney.
12. Integration and Modification. This document contains the entire agreement between
the parties and no statements, promises or inducements made by either party or agents
of either party not contained in this written Agreement may be considered valid or
binding. This Agreement may not be modified except by written agreement signed by
both parties.
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 7
13. Dispute Resolution
a. Any claim, controversy, or dispute between the parties, their agents, employees,
or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements.
Upon mutual agreement of the parties, the parties may invite an independent,
disinterested mediator to assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a
court of competent jurisdiction in compliance with the Applicable Law provisions
of this Agreement.
14. No Assignment. Grantee may not subcontract or assign Grantee’s rights, including the
right to Grant payments, or any other rights or duties arising hereunder, without the
prior written consent of City.
15. No Third Party Beneficiary. The terms and provisions of this Agreement are intended
solely for the benefit of each party and their respective successors and assigns. It is not
the parties’ intent to confer third party beneficiary rights upon any other person or
entity.
16. Choice of Law. This Agreement shall be governed and construed in accordance with the
laws of the State of Montana without regard to conflict of law provisions. The Parties
agree to submit to the personal and exclusive jurisdiction of the courts located within
Gallatin County, Montana.
17. Non-Waiver. A waiver by either party of any default or breach by the other party of any
terms or conditions of this Agreement does not limit the other party’s right to enforce
such term or conditions or to pursue any available legal or equitable rights in the event
of any subsequent default or breach.
18. Severability. If any portion of this Agreement is held to be void or unenforceable, the
balance of the Agreement shall continue in effect.
19. Counterparts. This Agreement may be executed in counterparts, which together
constitute one instrument.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 8
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Midtown TIF Assistance Grant Agreement with Peach Street Property,
LLC Page 9
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year
indicated below.
_______________________ Date: __________
___________, City Manager
City of Bozeman
STATE OF MONTANA )
: ss.
County of Gallatin )
On this ______ day of __________________, 20__, this instrument was acknowledged
before me by _________________ as City Manager of the City of Bozeman, a self-governing
municipal government.
______________________________________
Notary Public for the State of Montana
Printed Name: __________________________
Residing at: ____________________________, Montana
My commission expires: _______________
_______________________ Date: __________
_______________________ [print name]
_______________________ [title]
[Grantee name]
STATE OF MONTANA )
: ss.
County of Gallatin )
On this ______ day of __________________, 20__, this instrument was acknowledged
before me by _________________________, as _______________[title] of Peach Street
Property , LLC, a limited liability corporation.
______________________________________
Notary Public for the State of Montana
Printed Name: __________________________
Residing at: ____________________________, Montana
My commission expires: _______________
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EXHIBIT A
CITY OF BOZEMAN RESOLUTION 4770
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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
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$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.
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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]
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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 years1 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.
1 Please see the correction to this item in the City Commission Memo.
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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.”
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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.
67
BOZEMAN
MIDTOWN
TIF ASSISTANCE
REQUEST
MONARCH
68
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
69
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
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Midtown Urban Renewal District TIF Assistance Revised
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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
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Midtown Urban Renewal District TIF Assistance Revised
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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
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Midtown Urban Renewal District TIF Assistance Revised
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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.
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Midtown Urban Renewal District TIF Assistance Revised
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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.
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Midtown Urban Renewal District TIF Assistance Revised
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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
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Midtown Urban Renewal District TIF Assistance Revised
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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
76
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
77
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
78
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
79
Bozeman Midtown TIF Assistance Request
MONARCH \\ MIXED-USE PROJECT - PAGE 13MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA
PHOTOS
80
Bozeman Midtown TIF Assistance Request
81
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.82
Bozeman Midtown TIF Assistance Request
MONARCH
WEST PEACH
N. 7TH AVE
MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA
MAPS
83
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
84
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
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Midtown Urban Renewal District TIF Assistance Revised
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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.
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Midtown Urban Renewal District TIF Assistance Revised
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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.
87
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
88
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
89
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
90
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
91
MONARCH \\ COMMERCIAL SPACE & URBAN LIVING 615 WEST PEACH STREET \\ BOZEMAN MONTANA
Bozeman Midtown TIF Assistance Request
MONARCH \\ MIXED-USE PROJECT - PAGE 25
DEVELOPMENT BUDGET
92
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
93