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HomeMy WebLinkAbout01-03-19 Midtown PacketPage 1 of 10 Unapproved minutes from December 6, 2018 special board meeting held at the City Hall, Madison Room TO DO List: Everyone attend January 3 board meeting In attendance: Carl Solvie, Andrew Cetraro, Susan Fraser, Scott Hedglin, Valerie Wyman, David Fine, Bill Fogarty, Terry Cunningham, Nolan Campbell A. Call to Order – Andrew called the meeting at 4:30pm. B. Changes to Agenda – moved NCOD letter to third action item so presenters could go first. C. Public Comment – it was noted that board member Kevin Cook had emailed to say he would not be able to attend today. Emily Talago at 416 W Short Street, neighbor of Whittier School, spoke to the timeline on the bigger picture of the district. She also noted money spent hiring on Ruh and Aspen Crossing projects with no public comment period until projects scheduled for site plan review. She would like information shared before getting to that point. Emily went on to add that when blight designation pitched it was going to be great, then district lines were drawn and no single family neighbors able to use TIF funds. Andrew thanked Emily for attending and noted that the Midtown meetings are the place to comment. He added the board shares the same interests with example of K12’s Steve Johnson sitting next to her. The hope is to include all constituents. D. Approve Minutes from November 2018 meeting Scott motioned acceptance; Carl seconded the motion. All in favor. E.2. Action Item – Ruh Building TIF Assistance Request (see Attachment A for staff report) JDS Architect presented project. 16 residential units, brewery and hoping for a restaurant, with rooftop patio for residents and brewery. Requesting ~$726K. Questions and discussion. Brit Fontenot added this infill project is in line with the City’s and Midtown’s vision, is a good example of a project. Presentation closed and went to board for discussion. Scott asked David about fiber optics and David confirmed the project has requested $25K for such with existing access point next to the building. Another question on engineering fees at 80K and JDS answered fees actual, formed by three different engineering design fees. Discussion continued. Scott asked staff, after this project is complete, to see a listing of the actual dollars spent on city requirements such as alleyway for fire service, etc. Carl asked David if will be funded through a bond and David responded with probably but MURB has cash but could consider splitting funding between cash and bond. David went on to note reasonable target rates of return (actual language included in last page of staff report, Attachment A). Also in public audience was Mike Hope at 2215 Arrowleaf, noting it is great to see this presentation as is learning for him. Emily Talago added that she’d like data-driven feedback from neighbors what they would like to see along the corridor. Emily added as example that the districts’ plan notes parking requirements based on Minnesota Page 2 of 10 where public transport is close and available every 15 minutes. Nolan noted it is a project we want to see, will be a catalyst for Midtown. Scott motioned to direct staff to negotiate a development agreement with the applicant for Midtown TIF assistance not to exceed $726,667 and to draft a resolution to designate the Ruh Building as an urban renewal project with the condition that landscaping is similar to overall vision of the district. Carl seconded. Terry Cunningham asked if could add language determining landscape/streetscape and Scott said the vision/choices are already out there, just asking for blending along the corridor. All in favor. E.3. Action Item – Aspen Crossing TIF Assistance Request (see Attachment B for staff report) Mike Hope joined the table to present the project. Public comment – Tracy Munuez with HRDC commended Mike on contacting them early to work on tenants’ relocation as he is concerned about it. Tracy added it is a difficult market for their clients. David asked Tracy to join the table. David went over the state code 7-15-4217 and how we must manage funds for relocation work. Discussion. David added the board will see bond language at its January meeting. Discussion also included festival street support – will have wider sidewalk, parallel parking only, narrow drive lane. Bill made two motions: 1) to direct staff to negotiate a development agreement with the applicant for Midtown TIF assistance not to exceed $684,262 and to draft a resolution to designate the Aspen Crossing as an urban renewal project; and 2) to direct staff to develop a relocation plan for existing residents as recommended by the staff report. Carl seconded both motions. All in favor. E.1. Action Item – Neighborhood Conservation Overlay District advisory letter All in favor as presented. David will print draft included in agenda attachments so Andrew can sign tonight. FYI none Adjournment Andrew adjourned the meeting at 6:00pm. Page 3 of 10 Attachment A Page 4 of 10 Page 5 of 10 Page 6 of 10 Page 7 of 10 Attachment B Page 8 of 10 Page 9 of 10 Page 10 of 10 Bozeman Midtown Urban Renewal District Board Resolution 2019-01 1 RESOLUTION OF THE CITY OF BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT BOARD RECOMMENDING THE BOZEMAN CITY COMMISSION DESIGNATE THE RUH BUILDING, LOCATED WITHIN THE MIDTOWN URBAN RENEWAL DISTRICT, AS AN URBAN RENEWAL PROJECT, AND USING TAX INCREMENT REVENUES OR TAX INCREMENT REVENUE BONDS TO PAY, REIMBURSE OR FINANCE ELIGIBLE COSTS OF SUCH PROJECT WHEREAS, the Bozeman Midtown Urban Renewal District Plan (the “Plan) was duly adopted by the Bozeman City Commission by City of Bozeman Ordinance No. 1925, dated November 16, 2015 (the “Plan”); and WHEREAS, the City of Bozeman Midtown Urban Renewal District Board (the “Board”) has been duly established by the Bozeman City Commission as provided for in the Midtown Urban Renewal District Plan; and WHEREAS, the Blight Studies for the Midtown Urban Renewal District completed August 22, 2005, and September 4, 2015, identified defective, inadequate and deficient public infrastructure and transportation facilities; and WHEREAS, through Commission Resolution No. 3839 and No. 4639, the Bozeman City Commission declared that blight within the Midtown Urban Renewal area associated with the defective or inadequate street layout; and inadequate provisions and/ or age obsolescence public improvements: water, sewer, storm drainage, streets, sidewalks and parks; and that rehabilitation and redevelopment is necessary in the interest of the public; and WHEREAS, the Plan has the mission, vision and goals to remedy conditions associated with blight, to improve infrastructure, revitalize the neighborhood, and utilize Tax Increment Financing (TIF) in conjunction with other funding sources to improve the economic vitality within the district; and WHEREAS, the City Commission adopted the Midtown Action Plan pursuant to Resolution No. 4781; and WHEREAS, in the Midtown Action Plan, the City Commission identified urban renewal projects to address blight, improve infrastructure, revitalize the area, and utilize TIF in conjunction with other funding sources to improve the economic vitality within the district; and WHEREAS, the City of Bozeman has determined that these public infrastructure and transportation facilities are needed and important to the function of the overall public infrastructure and street network; and WHEREAS, Pursuant to Resolution No. 4770, adopted by the Commission on January 23, 2017, the City approved a program to encourage investment in the development and redevelopment of commercial and mixed use property within the District (the “Midtown TIF Bozeman Midtown Urban Renewal District Board Resolution 2019-01 2 Assistance Program”), and delegated authority to the Board to administer the Midtown TIF Assistance Program. WHEREAS, the spending of TIF funds on infrastructure improvements, such as the Project, is allowed under Section 7-15-4288, MCA; and WHEREAS, the Board desires that the Bozeman City Commission authorize the issuance of tax increment urban renewal revenue bond(s) to finance all or a portion of the costs of the Projects and intends to utilize tax increment to make payments on the bonds; and WHEREAS, the use of tax increment financing revenues to make bond payments has been shown to be a sound and adequate approach for urban renewal infrastructure development projects; and WHEREAS, the Board has considered the effect that taxable values, project timing, construction bids, availability of additional funding, debt coverage requirements and interest rates will have on the estimated bonding capacity, and the subsequent ability to finance all or a portion of the costs of the Projects; and WHEREAS, the Board directs staff in consultation with bond counsel to move this Resolution as edited and supporting documentation forward, recommending that the Bozeman City Commission approve this Urban Renewal Project, the costs of which are eligible and appropriate to be financed with tax increment urban renewal revenue bonds to which tax increment is pledged to make payments on the bonds; and NOW, THEREFORE, BE IT RESOLVED, that the City of Bozeman Midtown Urban Renewal District Board, having heard and considered all input, adopted the findings presented herein and recommends that the Bozeman City Commission undertake appropriate proceedings to approve the project as an Urban Renewal Project pursuant to the Plan and Commission Resolution No. 4770, (the “Midtown TIF Assistance Program”): 1. The Project. Life Style Solutions Real Estate, LLC (the “Developer”) proposes to undertake the construction of The Ruh Building (the “Project”) on land located in the District. The Developer has submitted an application through the Midtown TIF Assistance Program, requesting tax increment assistance with respect to certain eligible costs of the Project, including public infrastructure, public infrastructure engineering, demolition of structures, public utility service, impact fees, cash-in-lieu of park land, cash-in-lieu of water rights, and impact fees (the “Eligible Costs”). On January 3, 2019, the Board adopted a resolution granting preliminary approval to the use of tax increment assistance to pay Eligible Costs. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. The Board has, by its Resolution No. 2019-01, requested that the Commission approve the Project as an urban renewal project under the Act and approve using tax increment revenues or issuing tax Bozeman Midtown Urban Renewal District Board Resolution 2019-01 3 increment revenue bonds payable from tax increment revenues of the District, as the bonding capacity of the District allows, to pay, reimburse or finance all or a portion of the Eligible Costs. 2. Preliminary Findings. The Board hereby finds, as a preliminary matter, with respect to the Project, including the Eligible costs, as follows: a. no persons will be displaced from their housing by the Project; b. the Plan and the Project conform to the comprehensive plan or parts thereof for the City as a whole; c. the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. taking into account the use of tax increment revenues or the proceeds of tax increment revenue bonds to pay or reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. DATED THIS 3rd DAY OF January, 2019 Resolution of Recommendation _____________________________ Andrew Cetraro, Chair Midtown Urban Renewal District Board