HomeMy WebLinkAboutResolution 4993 Designating Aspen Crossing as an Urban Renewal Project 40 BO2�,
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RESOLUTION NO. 4993
A RESOLUTION APPROVING A PROJECT IN THE BOZEMAN MIDTOWN URBAN
RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT, MAKING FINDINGS
WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT
REVENUES OR TAX INCREMENT REVENUE BONDS TO PAY, REIMBURSE OR
FINANCE ELIGIBLE COSTS THEREOF; APPROVING A RELATED DEVELOPMENT
AGREEMENT; AND MAKING A REIMBURSEMENT DECLARATION; KNOWN AS
ASPEN CROSSING
BE IT RESOLVED by the City Commission (the "Commission") of the City of
Bozeman(the"City"), Montana, as follows:
Section 1
Recitals.
1.01. Under the provisions of Montana Code Annotated,Title 7, Chapter 15,Parts 42 and
43 (the "Act"), the City is authorized to create an urban renewal area, prepare and adopt a
redevelopment plan therefor and amendments thereto, undertake urban renewal projects therein,
provide for the segregation and collection of tax increment with respect to taxes collected in such
area, issue its bonds to pay the costs of such projects and to refund bonds previously issued under
the Act and pledge to the repayment of the bonds the tax increment and other revenues derived
from projects undertaken within the urban renewal area.
1.02. Pursuant to the Act and Ordinance No. 1685, adopted on November 27, 2006, as
amended by Ordinance No. 1925,adopted by the Commission on December 16,2015 (collectively,
the"Ordinance"),the City created the Bozeman Midtown Urban Renewal District(the"District")
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
as an urban renewal district and approved the Bozeman Midtown Urban Renewal District Plan
(the "Plan") as an urban renewal plan,which Plan contains a tax increment financing provision in
accordance with the Act.
1.03. On March 4, 2019,the Commission adopted Resolution No. 4992, calling a public
hearing to approve the development of a 3-story mixed-use building, expected to include
approximately 65,000 square feet, and to include restaurant and retail space, office space and
approximately 25 residential condominiums,to be known as Aspen Crossing(the"Project"), as an
urban renewal project under the Act and the Plan and to approve using tax increment revenues or
proceeds of tax increment revenue bonds to pay or reimburse Aspen Land Co., L.L.C., as the
developer of the Project (the "Developer"), for certain eligible costs thereof, including public
infrastructure,public utility connections, demolition of the existing structures, and impact fees, as
well as costs related to the relocation of households displaced by the project(the"Eligible Costs").
1.04. On March 25, 2019, a duly noticed public hearing was held on the question of
approving the Project as an urban renewal project and the use of tax increment revenues or
proceeds of tax increment bonds to pay or reimburse the Developer for the Eligible Costs, and all
persons appearing were given an opportunity to speak at the public hearing.
Section 2
Relocation Agreement.
Based on information from the Developer,the Project includes removal and/or demolition
of the Sunset Mobile Home Park, which will have the effect of displacing approximately 21
households. The Human Resource Development Council of District IX, Inc., of Bozeman,
Montana("HRDC"), a local nonprofit that specializes in housing, and the Developer have entered
into an agreement (the "Relocation Agreement") to establish a workable and feasible plan for
relocating households that would be displaced by the Project. Under the Relocation Agreement,
HRDC will provide housing navigation services to the households being displaced and the
Developer will provide funds to be administered by the HRDC that will be made available, subject
to appropriate conditions, to assist the affected households in locating adequate replacement
housing. It is expected that, if the Developer completes the Project in accordance with the terms
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
and conditions of the Development Agreement (defined below in Section 5), the City will
reimburse the Developer, from tax increment revenues or proceeds of tax increment bonds, the
dollar amount provided by the Developer to the HRDC under the Relocation Agreement to
facilitate the transition to replacement housing.
A draft of the Relocation Agreement has been provided to the Commission, and the
Commission has had the opportunity to ask questions of the Developer and HRDC. The
Commission hereby finds that the Relocation Agreement provides a workable and feasible plan
for making available adequate housing for the persons who will be displaced from their housing
by the Project.
Section 3
Findings.
The Commission hereby finds with respect to the Project as follows:
a. based on the Relocation Agreement, a workable and feasible plan exists for
making available adequate housing for the persons who will be displaced
from their housing by the Project;
b. the Plan and the Project conform to the Bozeman Community 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.
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
Section 4
Approval of the Project as an Urban Renewal Project.
The Commission hereby approves the Project as an urban renewal project under the Act
and the Plan. 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.
Section 5
Development Agreement; Use of Tax Increment.
5.01. The Midtown Urban Renewal Board (the "Board") and the Developer have
negotiated a Development Agreement, the form of which is attached hereto as Exhibit A (the
"Development Agreement"). The Development Agreement is hereby approved in substantially
the form attached. The City Manager,or her designee,is hereby authorized and directed to finalize,
approve, execute and deliver to the Developer the Development Agreement, substantially in the
form attached as Exhibit A, with such changes as she shall deem necessary or appropriate.
5.02. The Commission hereby approves the use of tax increment revenues or proceeds of
tax increment bonds to pay or reimburse the Developer for Eligible Costs of the Project, subject to
the terms and conditions of the Development Agreement. No further Commission action shall be
required if the City's obligations under the Development Agreement are to be paid or satisfied
with tax increment revenues then on hand and available therefor. If the City's obligations under
the Development Agreement are to be financed with proceeds of tax increment revenue bonds,the
forms of such bonds and the terms and conditions thereof shall be prescribed by a subsequent
resolution or resolutions to be adopted by this Commission.
Section 6
Reimbursement Expenditures.
6.01. Regulations. The City may issue tax-exempt bonds in one or more series (the
"Bonds")to finance all or a portion of the Eligible Costs and pay costs associated with the
financing. The United States Department of Treasury has promulgated regulations governing the
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the
City for project expenditures paid by the City prior to the date of issuance of such bonds. Those
regulations (Treasury Regulations, Section 1.150-2) (the "Regulations")require that the City
adopt a statement of official intent to reimburse an original expenditure not later than 60 days
after payment of the original expenditure. The Regulations also generally require that the bonds
be issued and the reimbursement allocation made from the proceeds of the bonds within 18
months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception
from the arbitrage rebate requirement) after the later of(i)the date the expenditure is paid or(ii)
the date the project is placed in service or abandoned, but (unless the issue qualifies for the
"small issuer" exception from the arbitrage rebate requirement) in no event more than three years
after the date the expenditure is paid. The Regulations generally permit reimbursement of capital
expenditures and costs of issuance of the bonds.
6.02. Prior Expenditures. Other than (i) expenditures to be paid or reimbursed from
sources other than the Bonds, (ii) expenditures constituting preliminary expenditures within the
meaning of Section 1.15 0-2(f)(2) of the Regulations, or(iii) expenditures in a"de minimus"
amount(as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Eligible
Costs of the Project have been paid by the City before the date 60 days before the date of
adoption of this Resolution.
6.03. Declaration of Intent. The City reasonably expects that it may reimburse the
expenditures made for Eligible Costs of the Project out'of the proceeds of Bonds in an estimated
maximum aggregate principal amount of$849;958 after the date of payment of all or a portion of
the Eligible Costs of the Project. All reimbursed`expenditures`shall be capital expenditures, a
cost of issuance of the bonds or other expenditures eligible for reimbursement under Section
1.150-2(d)(3) of the Regulations.
6.04. Budgetary Matters. As of the date hereof, there are no City funds reserved,
allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved,
allocated on a long-term basis or otherwise set aside)to provide permanent financing for the
expenditures related to the Project, other than pursuant to the issuance of the Bonds. The
statement of intent contained in this Resolution,therefore, is determined to be consistent with the
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Resolution 4993,Approving a Project in the Midtown URD, Known as Aspen Crossing
City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the
date hereof.
6.05. Reimbursement Allocations. The City's Finance Director shall be responsible for
making the "reimbursement allocations" described in the Regulations, being generally the
transfer of the appropriate amount of proceeds of the bonds to reimburse the source of temporary
financing used by the City to make prior payment of the Eligible Costs of the Project. Each
allocation shall be evidenced by an entry on the official books and records of the City maintained
for the Bonds or the Project and shall specifically identify the actual original expenditure being
reimbursed.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 25th day of March, 2019.
CYNT RUS
Mayor
ATTEST: ,�0�•S fl,2�,
RdBYN CROUGH '_ T- -
City Clerk 1883 .••
co APPROVED AS TO FORM:
GREGS111 T *A N �i OE � N n�;fYJt&4
1'�1'-i..1 V s� t
A-s61,fi.,>r1-City Attorney
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the "City"), hereby certify that the attached resolution is a true copy of
Resolution No. 4993, entitled: "RESOLUTION APPROVING A PROJECT IN THE
BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL
PROJECT, MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE
USE OF TAX INCREMENT REVENUES OR TAX INCREMENT REVENUE BONDS TO
PAY, REIMBURSE OR FINANCE ELIGIBLE COSTS THEREOF; APPROVING A
RELATED DEVELOPMENT AGREEMENT; AND MAKING A REIMBURSEMENT
DECLARATION,KNOWN AS ASPEN CROSSING"(the"Resolution"), on file in the original
records of the City in my legal custody; that the Resolution was duly adopted by the City
Commission of the City at a regular meeting on March 25, 2019, and that the meeting was duly
held by the City Commission and was attended throughout by a quorum,pursuant to call and notice
of such meeting given as required by law; and that the Resolution has not as of the date hereof
been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said
meeting,the following Commissioners voted in favor thereof: PQAo✓ pfv-A kiA QC.01fU L/IC qDv-
"14 Lbn�OVUV S I A.K-5, Pt>VVV" iyac a tin ; voted against
the same: ; abstained from voting
thereon: T/j ; or were absent:
WITNESS my hand officially this 26th day of March, 2019.
JJ`Q�,B�Z.��.
RO N CROUGH z U; '- , WS,_�,.
City Clerk * • .' let .
• '�_Y
03
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Resolution 4993,Approving a Project in the Midtown URD,Known as Aspen Crossing
EXHIBIT A
[Form of Development Agreement]
b
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