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HomeMy WebLinkAboutTIF Minutes 10-16 Downtown Tax Increment Finance Board Meeting Minutes October 18, 2016 Attending: Bob Hietala, Cory Lawrence, Bobby Bear, Bill Stoddart, Jeff Krauss, Chris Naumann Absent: Vonda Laird Public Comments: None Disclosure: None Minutes ACTION: Bob Hietala moved to approve the August and September minutes as presented. Bill Stoddart seconded the motion. All voted in favor. Financial Report Chris presented the finance report as of October 18, 2016. Expenses included: 2nd quarter management fee of $26,250; $7500 grant reimbursement; and $3675 of other expenses. The board had no other questions regarding the finance report. Executive Director’s Report Technical Assistance Program Update No grants have been awarded in FY2017—shown at the bottom of the chart. The chart also lists uncompleted grants that were awarded in FY2016. Keep in mind that the committed grant amounts are only tentative since the actual reimbursement amount will be determined as a one to one match upon completion of the grant work. As a reminder, the Planning grants have a $7500 cap and the Façade grants are capped at $3000. Date Project Name Project Address Applicant Professional Type Value 8/21/2015 712 East Main 712-716 East Main BCHO Architects BCHO Architects Plan/Façade $10,500 12/28/2015 Rialto 10 West Main BARC Thinktank Planning $7,500 12/30/2015 Big Sky Western Bank 106 East Main Big Sky Western Sanderson Stewart Façade $3,000 Total 21,000$ Date Project Name Project Address Applicant Professional Type Value Technical Assistance Program FY2016 Report Technical Assistance Program FY2017 Report Downtown Fiber Network Project Update The fiber network engineer is finalizing design of the two additional sections of conduit on West Lamme and East Babcock that would create a complete “outer ring” of fiber downtown. These two extensions would bring fiber to several more blocks and dozens of property and create redundancy downtown which is advantageous. Early estimates indicate that the extensions could be designed and constructed for less than $150,000. I will bring a specific proposal and cost to the TIF Board as soon as it is available. TIF Legislation Update I am still following a couple draft bills regarding various aspects of the Urban Renewal Law and Tax Increment Financing. One important detail about the legislation being proposed this session versus those in the past is that Jess Essmann, a Republican leader in the Senate and Chairman of the Montana Republican Party, is introducing and sponsoring several bills addressing TIF “issues”. He has considerable more political clout than previous TIF bill sponsors. Building Project Updates Lark Addition (corner of Grand and Main) 4 story building with 28 new Lark hotel rooms. Construction is expected to begin October 2016. 5 West Building (northwest corner of Mendenhall and Tracy) Construction began on October 2016. First floor businesses scheduled to open in April 2017 and the upper floors completed in June 2017. Etha Hotel (old Armory building) first phase of foundation work complete. No date for when construction will resume. Willson Residences (old East Willson School) being redeveloped into 18 residential units with underground parking. Partial completion scheduled for Summer 2016. NeBo (400 block of East Mendenhall) 2 buildings, four floors each. 12 residential units each with 2-car garage. Expected completion October 2016. Rialto Theater under construction to be completed by August 2017. Black & Olive Apartments formal site plan application was submitted in late September. Would like to begin construction in March 2017 and be completed in May 2018. New Businesses Update • Montana Fish Company Japanese Restaurant—to open this week • Rockford Coffee—now open • Jam Fusion Restaurant—renovations underway at old Universal Athletics • Union Market— Mendenhall/Rouse…Service Elec (south) opening date unknown • Squire House—Element Hotel restaurant has a new proprietor • F-11 Space—vacant • Headroom Space—vacant • Reflections—going out of business Planning Updates In this section I will provide update about several ongoing City planning processes. Community Development Director Martin Matsen was hired as new director and will start October 24th. Transportation Master Plan www.bozemantmp.com Consultants: Peccia & Associates (Helena), Alta Planning (Bozeman) Timeline: September 2015 (kickoff) through September 2016 (adoption) Update: Draft plan available in July 2016 UDC Revisions http://bozeman.net/Projects/UDCCodeupdate/Home Consultants: Makers (Seattle), Leland Group (Portland), Studio Cascade (Spokane) Timeline: September 2015 (kickoff) through February 2017 (adoption) City Vision & Strategic Plan Consultants: HDR Timeline: March 2016 (kickoff) through October 2016 2017 Downtown Improvement Plan Consultants: yet to be determined Timeline: yet to be determined 2017 Community Plan (City Growth Policy) Update Timeline: October 2016 through late 2017 Discussion and Decision Items Floodplain Map Update Brian Heaston, City of Bozeman Engineer Brian presented a memo titled “Downtown Floodplain Update” (see below). In summary, the initial 2D modelling shows promising reduction in primary floodplain. The City Public Works department recommends using 2D models to appeal the proposed FEMA floodplain map. The cost estimate to prepare and submit the appeal is $80,000 to $100,000. Brian asked if the TIF would consider contributing some funds for the appeal. The board discussed if and how to fund a cost-share. Chris said he would also be asking the BID to consider contributing funds to the appeal. The board agreed to submit a letter to the City encouraging the City Commission to approve pursing and funding the appeal. Jeff Krauss questioned whether floodplain mitigation is prescribed in the Urban Renewal Plan. Bob asked Chris to prepare a report about the floodplain issue vis a vis the URP and MCA. Intersection Cable Anchor Repair Update Chris informed the board that he released an RFP for the needed repair work on the intersection cable anchors. Montana Crane Service was the only company to respond and has been awarded the contract. The work will take place during the next two or three weeks. Kerin & Associates will prepare a comprehensive report detailing all the work completed to date. New Business Chris informed the board about several upcoming meetings that he will be attending: internal COB parking meeting; Black Olive DRC and DRB; City Commission policy discussion about downtown (November 21 or 28). Chris also said he is writing a guest editorial about the Downtown Plan and its continued importance as a guiding document. Meeting was adjourned at 1:15pm October 11, 2016 To: Chris Naumann, DBP Executive Director From: Brian Heaston, City Floodplain Administrator RE: Downtown Floodplain Update Memo National Flood Insurance Program Flood insurance coverage is required as a matter of federal law for any building located within a special flood hazard area mapped by FEMA with a federally secured mortgage. The City of Bozeman is a participating community in the National Flood Insurance Program and has been so since the early 1980s. The NFIP underwrites the community’s flood risk and makes flood insurance available to properties at risk for flooding in exchange for the enforcement of local floodplain development ordinance meeting minimum federal standards. The local ordinance regulates the type, nature and extent of activities that can occur in mapped special flood hazard areas and includes requirements that new buildings or alterations to existing buildings be elevated or floodproofed to a height no less than 2 feet above the predicted flood elevation. Special flood hazard areas, more commonly known as 100-year floodplains, are mapped by FEMA on Flood Insurance Rate Maps (FIRMs). FIRMs are the product of a comprehensive engineering evaluation, known as a federal Flood Insurance Study (FIS), which utilizes flood models to predict the water surface elevation of 100-year flood events for specific flooding sources in a community. Bozeman’s Original Floodplain Maps The original FIS for Bozeman Creek was initiated in the late 1970s and the community’s original FIRMs were completed in 1982. These FIRMs show the 100-year floodplain of Bozeman Creek to be contained within its channel in the downtown reach between Olive and Lamme streets. A digital conversion of the FIRMs was completed by FEMA in 2011 which simply converted the old paper FIRMs into a digital format. See Attachment A for paper FIRM. Unfortunately, FEMA’s digital conversion of the floodplains was fraught with problems, producing digital data where the actual location of Bozeman Creek does not align with the mapped location of its floodplain. These spatial errors impose significant burdens upon property owners that are incorrectly mapped into the floodplain because they must obtain flood insurance, or correct FEMA’s error at their own cost. See Attachment B for digital FIRM. FEMA’s New FIS A new FIS was initiated by FEMA soon after the 2011 digital conversion errors were discovered. The new FIS is a comprehensive update to the floodplain maps and uses best available data. The FIS will replace the outdated FIS data (1970s) underlying Bozeman’s current floodplain maps. For the mew FIS, hydraulic structures were field surveyed and ground topography was captured using aerial survey techniques. One-dimensional modeling was then employed for all of Bozeman Creek to simulate 100-year floodplain elevations. The Bozeman Creek floodplain in the downtown reach between Olive and Lamme is dramatically larger that mapped originally. A wide swath of downtown is predicted by FEMA to be in the 100-year floodplain. See Attachment C. If the new FIS and floodplain areas become effective in their current form, many downtown buildings will be required to obtain flood insurance (presuming they are mortgaged). The insurance mandate will add a new and significant annual cost for the building owner. Flood insurance costs will undoubtedly escalate over time. Furthermore, local floodplain regulations will apply to any buildings or property in the floodplain, which may present significant challenges or limitations to the ongoing development of the downtown area. 2D Appeal of FIS The federal FIS adoption process provides a formal 90-day appeal opportunity whereby the technical information of the FIS can be challenged if better data or methodology is brought forward that more accurately simulates flooding behavior. The City believes map accuracy can be improved by utilizing a more sophisticated two-dimensional flood model approach. A preliminary 2D evaluation was prepare by Allied Engineering to determine the potential mapping differences this approach has when compared to the conventional 1D approach employed by FEMA in the new FIS. Results of this evaluation indicate that the high hazard inundation area is reduced due to dispersion of floodwater into City streets that is not accounted for in FEMA’s current 1D model. This 2D model approach may render fewer buildings into the floodplain than FEMA’s 1D approach. See Attachment D. Thus, fewer properties may carry the mandate to obtain flood insurance, or fall under the City’s local floodplain development regulations, if the appeal is successful. The goal of the 2D appeal is to map flood risk in the downtown area as accurately as possible utilizing best available technology such that the costs to comply with ongoing insurance mandates and floodplain regulations reflect the actual flood risk. It is anticipated that the FEMA’s formal appeal process will kick off in February or March 2017. The deadline for appeals is 90 days later. There is sufficient time to prepare a comprehensive appeal data package, but work must begin relatively soon. Mill Ditch Flood Hazard Mitigation Mill Ditch diverts flow from Bozeman Creek near the Gallagator Trail just upstream of Church Avenue south of Story Street. The ditch has potential to serve as a flood hazard mitigation facility which would divert floodwater out of Bozeman Creek to route around the downtown area, thus reducing the flood hazards downtown. Initial evaluation of the mitigation potential was completed by Allied Engineering. Results indicate marginal hazard reduction to downtown without making significant improvements to ditch geometry and alignment. See Attachment E. Further evaluation is warranted to determine the improvements needed to the ditch in order to keep the 100-year flood contained within the banks of Bozeman Creek downstream of the ditch diversion. This is a long-range project that would occur outside of FEMA’s new FIS and flood mapping project. Mill Ditch flood hazard mitigation will not be included in appeal documentation to FEMA. Appeal Consultant Selection Costs to prepare the requisite 2D data package and supporting documentation are substantial. It is estimated that the appeal, together with further evaluation mill ditch flood hazard mitigation potential, will cost from $80k - $100k to complete. This expense is for the community to bear. An RFP for the mitigation and appeal project has been developed and is advertised. See Attachment F. The City aims to have a contract for this project in front of the City Commission for approval on November 7, 2016 and for work to begin immediately thereafter. The Commission will be asked to approve a budget amendment as this project was not anticipated to occur when the budget was prepared last year. Because the map appeal and the flood hazard mitigation evaluation directly benefit the downtown area, a cost-share with the DBP will be requested. Due to time constraints for the appeal, the cost- share discussion will likely conclude after work begins on the project, presuming the City Commission authorizes the budget amendment and contract. The Commission will be notified that the cost-share discussion will occur with the DBP.