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HomeMy WebLinkAboutTIF Minutes 11-16 Downtown Tax Increment Finance Board Meeting Minutes November 15, 2016 Attending: Bob Hietala, Vonda Laird, Bobby Bear, Bill Stoddart, Jeff Krauss, Chris Naumann Absent: Cory Lawrence Public Comments: None Disclosure: None Minutes ACTION: Bill Stoddart moved to approve the October minutes as presented. Bob Hietala seconded the motion. All voted in favor. Financial Report Chris presented an updated FY2016 year-end finance report with the final revenue figures constituting an additional $175,000 for the FY16 year-end balance. The October 18, 2016 finance report expenses included: Fiber infrastructure $26,250; $7500 grant reimbursement for 101 East Mendenhall; and $3300 for DURT Phase 1 Mendenhall preliminary design. The board had no other questions regarding the finance report. Discussion and Decision Items Floodplain Issue and Appeal vis-à-vis URP & MCA As the board had requested at the previous meeting, Chris presented the board with a review (see below) of the Downtown Urban Renewal Plan and Montana Code Annotated. ************************************ TIF BOARD MEMO 11-14-16 Downtown FEMA Appeal and Floodplain Issues in Relation to the Urban Renewal Plan and Urban Renewal Law Background Overarching intent of URD/URP/TIF: eliminate blight and create a built environment that grows the value of the district. One aspect of the proposed FEMA FIS and Floodplain map is the impact it may have on the redevelopment of the two remaining properties resulting from the 2009 explosion and fire. Following that tragedy, the City of Bozeman and the Downtown Partnership appealed to the Department of Revenue that the disaster site was now blighted and requested that the base valuation of the TIF District be adjusted to account for the lost buildings. DOR agreed and granted the request. The TIF Board established an impact fee reimbursement program to incentivize redevelopment at the disaster site. The FEMA floodplain map as proposed would further perpetuate the blighted condition of 221-223 and 229-233 East Main Street. Urban Renewal Plan Review Elimination of Blight The City shall aid and cooperate with the IDB in carrying out this Plan, and shall take actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the area of conditions causing blight. The IDB will assist and encourage public and private entities to eliminate blight or blighting influences, and strengthen the City’s economy by developing property in the District. The list of Action Items and potential funding sources follows: Creeks and Streams: TIF, Public and Private Grants, Storm Water Management, Private Donations Implementation Actions: Develop storm water management techniques to protect Bozeman Creek. Enhance the appearance of and accessibility to Bozeman Creek. Consideration might even be given to uncovering Bozeman Creek. Montana Code Annotated Review 7-15-4206. Definitions. The following terms, wherever used or referred to in part 43 or this part, have the following meanings unless a different meaning is clearly indicated by the context: (2) "Blighted area" means an area that is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime, that substantially impairs or arrests the sound growth of the city or its environs, that retards the provision of housing accommodations, or that constitutes an economic or social liability or is detrimental or constitutes a menace to the public health, safety, welfare, and morals in its present condition and use, by reason of: (h) unsanitary or unsafe conditions; (n) the existence of conditions that endanger life or property by fire or other causes; or (o) any combination of the factors listed in this subsection (2). 7-15-4202. Existence of blighted areas and resulting problems -- statement of policy. It is hereby found and declared: (1) that blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state, exist in municipalities of the state; (2) that the existence of such areas: (a) contributes substantially and increasingly to the spread of disease and crime and depreciation of property values; (b) constitutes an economic and social liability; (c) substantially impairs or arrests the sound growth of municipalities; 7-15-4203. Need for redevelopment and rehabilitation of blighted areas. It is further found and declared: (1) that certain of such blighted areas or portions thereof may require acquisition, clearance, and disposition subject to use restrictions as provided in this part, since the prevailing condition of decay may make impracticable the reclamation of the area by rehabilitation; (2) that other areas or portions thereof may, through the means provided in this part, be susceptible of rehabilitation in such a manner that the conditions and evils enumerated in 7-15-4202 may be eliminated, remedied, or prevented; and (3) that to the extent feasible salvable blighted areas should be rehabilitated through voluntary action and the regulatory process. 7-15-4251. General powers of municipalities in connection with urban renewal. Every municipality shall have all the power necessary or convenient: (1) to carry out and effectuate the purposes and provisions of this part and part 43; (2) to undertake and carry out urban renewal projects within the municipality, to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under this part and part 43, and to disseminate blight clearance and urban renewal information; (3) to organize, coordinate, and direct, within the municipality, the administration of the provisions of this part and part 43 as they apply to such municipality in order that the objective of remedying blighted areas and preventing the causes thereof within such municipality may be most effectively promoted and achieved and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out such purpose most effectively; (4) to exercise all or any part or combination of powers granted in this part or part 43. ************************************ Floodplain Appeal Cost Share Chris presented the board with a cost share proposal (see below) for the Bozeman Creek FEMA floodplain appeal. He said after further discussions with the City Public Works Department it became clear the downtown boards would need to cover the appeal costs above the City’s $25,000 allocation. The board agreed that making a fiscal commitment to the FEMA appeal would be important to limit the negative impacts to future downtown development. Chris said the City Commission would approve the appeal contract in conjunction with a TIF budget adjustment. ACTION: Bob Hietala moved to approve $41,674 for the Bozeman Creek FEMA Floodplain appeal and the necessary budget amendment. Vonda Laird seconded the motion. All voted in favor. ************************************ TO: BID Board TIF Board FR: Chris Naumann DA: 14 November 2016 RE: Downtown Bozeman FEMA Appeal Cost Share Proposal FEMA Appeal Analysis Scope Below are some excerpts from the City of Bozeman Engineering Department’s memo to the BID and TIF boards as presented and discussed at the October meetings. The excerpts describe the analysis that would be required to formally prepare and submit an appeal to FEMA. 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. 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 28, 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. Appeal Cost The cost of the FEMA appeal is $86,674 according to a itemized budget prepared by Allied Engineering. Cost Share Proposal The City of Bozeman has committed $25,000 to the project and is requesting the TIF and BID boards contribute the balance of $61,674. This is roughly a 30% - 70% cost share. My assessment of the TIF and BID boards financial capacities, I suggest the following funding contributions: TIF Board $41,674 BID Board $20,000 Of course the exact amounts of funding will be discussed, finalized and approved by each board at their respective November meetings. Timeline The funding decisions by the TIF and BID boards must occur at their meeting on Tuesday November 15th and Wednesday November 16th. Letter documenting each board’s financial contribution will need to submitted to the City Engineers on Thursday November 17th. This timing would allow the City Commission packet for the appeal to be submitted to the City Clerk by the deadline on Friday November 18th to be on the CC agenda for the meeting on November 28th. ************************************ Downtown Policy Discussion Chris informed the board that the City Manager asked him to participate in the City Commission downtown policy discussion. Specifically, Chris will give a detailed overview of the Downtown Improvement Plan. The board asked about the format and intent of the discussion. Chris said the purpose is to reiterate the objectives of the Downtown Plan and review the downtown planning history. Chris asked that board member attend the City Commission meeting and speak in support of the Downtown Plan. Meeting was adjourned at 1:15pm