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HomeMy WebLinkAbout02-12-19 Minutes - Northeast Urban Renewal Board (NURB)NURB Meeting – February 12, 2019 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, February 12, 2019 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, February 12, 2019, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: John Usher, Chair Dan Doehring Bobbi Clem Jeanne Wesley-Wiese Robert Pavlic Non-Voting Members: Ethan Barlow Dalton Brink Nolan Campbell (arrived at 6:41 pm) Corwin Dormire Commissioner Liaison: I-Ho Pomeroy Staff: Brit Fontenot, Economic Development Director David Fine, TIF Specialist Shane Strong, KLJ Robin Sullivan, Recording Secretary Guests: Erik Nelson, 33 North Black Avenue Call to Order – Chair John Usher called the meeting to order at 6:32 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – No comment was received under this agenda item. Minutes – December 4, 2018. It was moved by John Usher, seconded by Bob Pavlic, that the minutes of the regular meeting of December 4, 2018 be approved as submitted. The motion carried on a 3-0 vote. Discussion/Action Items – Update on Cottonwood & Ida project. When Nolan Campbell arrived, he sat in the back of the room and did not participate due to his conflict of interest. NURB Meeting – February 12, 2019 2 Erik Nelson gave an update on the Cottonwood & Ida project, noting that the last update was provided at this Board’s June 2018 meeting. He stated that, while there have been some modifications, the general project remains. He stressed that the goals are unchanged, with a broad range of housing types and various sizes of commercial spaces to be provided. He noted that this project started in June 2016 with ideas and visioning, followed by outreach with the RUDAT project in April 2017 and a concept plan submitted in June 2017. While the designs have evolved, the original concepts remain. The project has been moving forward under the Memorandum of Understanding dated June 2018, with some revisions resulting from meetings with the NorthEast Neighborhood Association and Vision NorthEast. Erik Nelson stated that the proposed underground parking is one of the major changes. Because of site constraints, the underground parking costs that had been estimated at $4 million rose to $9 million. Because of those high costs, the amount of underground parking was reduced by half; and the developers acquired the Brewery site. Erik Nelson stated that 92 residential units will be provided; 24 are for sale and 68 are rentals. Commercial spaces will range from small makers spaces to larger commercial spaces. Building 5 is the existing building on the site; and it is their plan to tie it to the 8,000-square-foot public plaza with a small café and true European style plaza. He then highlighted the amount of open space to be provided on the site, noting that public ways are to be provided into the plaza and through the project. Erik Nelson stated that the natural grade from East Cottonwood Street to East Aspen Street is four feet; and it is their proposal to raise the structures five feet on the Cottonwood side, with the underground parking to be located under Buildings 1, 2 and 6. He then noted that preservation of the Misco Mill is critical; and they have pushed the new buildings as far away as possible so it can be used as a focal point. Erik Nelson highlighted the goals and objectives and how this project meets the various plans for the district, noting there are no changes from the previous presentation. He stated this will be the first LEED project in the community. It will include a sophisticated stormwater system and will provide affordable housing and public open space. He then turned to what has changed since the Memorandum of Understanding was signed, noting the proposal for reimbursement of the public underground parking spaces has been removed; however, the list of other attributes and offsite improvements remains the same. Erik Nelson stated the City Engineering Department has an issue with the acute angle at which North Ida Avenue intersects Front Street. As a result, they are requiring reconfiguration of that intersection, with public parking to be provided around the boulder. Also, future development of the depot will be able to claim some of those on-street parking spaces. Erik Nelson stated the estimated tax increment remains at $350,000 a year; however, the requested reimbursement is expected to decrease from the $3.1 million initially requested to $2.1 million with elimination of the parking and addition of Front Street. Responding to Bobbi Clem, Erik Nelson stated that the City Engineering Department is requiring improvement of East Aspen Street as a city-standard street with on-street parallel parking; and that requirement will result in elimination of the existing Aspen Street park. NURB Meeting – February 12, 2019 3 Erik Nelson showed renderings of the buildings to be constructed on the site, and noted that the crib construction of the existing structure is to be retained. He stated that Buildings 1 and 2 are to be connected. Building 2 has co-op housing, with an open kitchen/living area and a pod of six bedrooms around it. He anticipated that these spaces will be used by young working people or possibly retirees. Responding to Bobbi Clem, Erik Nelson stated it is their hope that the site amenities will fuel and energize people during the day and provide a place for residents in the evening. Further responding to Bobbi Clem, Erik Nelson stated that eliminating half of the underground parking spaces on site and using the Brewery site for parking will provide 200 parking spaces instead of the 195 initially proposed. He then stated they are seeking a reduction in the number of required parking spaces for studios and one-bedroom units as well as commercial uses because of the mixed-use nature of the development. He noted that the studio apartments are to be 350 to 500 square feet while the one-bedroom units will be 450 to 600 square feet in size. Erik Nelson stated that the parking on the Brewery site is to be pushed back toward Lattice Materials to keep the space along North Wallace Avenue open for future development. He stated that access will be from East Tamarack Street and East Aspen Street. He indicated that this site will be used as the staging area for the project during its construction phase. Erik Nelson stated this application is still in the preliminary Planned Unit Development review process; and he expects to make a presentation to the City Commission on March 25. After that meeting, they will prepare a final Planned Unit Development application; and he expects that review process to be completed by the end of May. After approval has been received, final paperwork to execute the Memorandum of Understanding for off-site improvements will be done; and he expects work on the project will begin in August. He stressed that the developer will be responsible to build all of the infrastructure improvements and, one tax year after completion, the tax rolls will be verified and the bond sale actuated. Those bond proceeds can then be used to pay back the direct costs for qualifying infrastructure improvements. Erik Nelson stated the next step in the process is to designate the Cottonwood & Ida project as one of the urban renewal projects. He then indicated a willingness to respond to questions at next month’s meeting in anticipation of this Board taking action on designating it as an urban renewal project. Erik Nelson noted that improvements have just been completed to East Tamarack Street; however, it is designated as a collector street and the City is asking for another 15 feet of right- of-way along the Brewery site street frontage. Responding to Bob Pavlic, Erik Nelson confirmed there will be no parking on North Wallace Avenue for this project. Responding to Chair Usher, the Board members generally indicated a willingness to consider designating this as an urban renewal project at the March meeting. David Fine stated he will have a resolution prepared recommending to the Commission that they designate the Cottonwood & Ida project as an urban renewal project. He then indicated that the Economic Development Department will absorb the costs of preparing the document. NURB Meeting – February 12, 2019 4 Erik Nelson asked that this project also be included as a part of the work plan for next year. John Usher asked that the resolution be forwarded to the board members for their review prior to next month’s meeting. Responding to Bob Pavlic, David Fine stated that if this is approved as an urban renewal project, the developer will be required to go through the competitive bidding process and pay prevailing wages. Updates on current projects. Shane Strong reported that the East Tamarack Street project is in winter shutdown. As soon as the snow melts, work on the boulevards will be completed, curbs will be painted, striping will be done and a walk through will be completed to identify punch list and correction items. He stated that RMC is still working on the installation of fiber conduit and should be done next week. He then noted that the asphalt was laid within specified conditions; however, he has noted some rolled seams and minor surface defects that may need to be included on the punch list. Responding to Bobbi Clem, Brit Fontenot stated the conduit is City-owned and may be leased by anyone wanting to run fiber in it. Shane Strong reported on the East Peach Street project, noting he has received the final pay request from JR Civil and will submit it to City staff tomorrow for processing. He noted that monies are being withheld for asphalt correction and damage to an irrigation system. He then indicated that the final walk through will occur when the snow melts. Responding to questions from Brit Fontenot, Shane Strong stated that the asphalt is 3½ inches thick instead of 4 inches; however, that does not impact its structural integrity and its life expectancy is 50 plus years. Bob Pavlic asked about the possibility of completing the North Ida Avenue improvements between East Cottonwood Street and East Peach Street, particularly since it is only one block long and the remainder the street is to be improved with the Cottonwood & Ida project. David Fine cautioned that the Board must consider all of the projects on its wish list when determining how to budget its monies. He then urged the Board to not “eat your seed corn.” Brit Fontenot reminded the Board that there were five projects on the list for bond proceeds; and two of those have been completed. He indicated that the remaining projects may be recycled on a new list for funding in the future. David Fine noted that the Cottonwood & Ida project will bring money into the tax increment; however, there will be a lag time before that occurs. Staff updates on items of interest to the Board, including update on selection of engineering firm for all TIF districts. David Fine reported that an interdisciplinary team has been retained on a four-year contract for all TIF districts. He stated that Sanderson Stewart is the prime engineering contractor, with architects, structural engineers and a parking consulting firm being part of the team; however, there is no expertise in quiet zones on the team. He NURB Meeting – February 12, 2019 5 stated that a written task order will be prepared for any work that a board wishes to undertake; and that tax increment financing district will then be charged for the work completed. Update on financial status of NURB Fund. Robin Sullivan distributed copies of the revenues and expenditures for Fiscal Year 2018-19, the spreadsheet showing expenditures from the bonds, and the spreadsheet showing revenues and expenditures from inception to date. She briefly highlighted the reports, noting that the bond proceeds have been fully expended. She also identified anticipated expenditures for the remainder of the year and cautioned that the balance in the fund at the end of the year will be low. She stressed, however, that the three major streets running through the district have now been improved over the past three years. Appointment of Chair and Vice Chair for 2019. John Usher announced that he will no longer serve as Chair. Since only three voting members were present, they deferred action on this item until next month. Responding to Brit Fontenot, John Usher stated he feels the Chair needs to have a heightened awareness of items coming before the Board, and it is important to respond to any flurry of e- mails that may occur. He estimated that he spends five to ten hours a month working on issues related to the Chair position. Set agenda for March 5, 2019 meeting or cancel meeting. To be included on the agenda, in addition to the standard agenda items, are consideration of a resolution identifying the Cottonwood & Ida project as an urban renewal project, initial discussion of items to be included in the work plan and budget for Fiscal Year 2019-2020, appointment of the Chair and Vice Chair for 2019, and ethics training. Responding to Brit Fontenot, the board members indicated they have no problem with members of other boards participating in the mandatory ethics training. As a result, it was determined that the ethics training should be scheduled from 6:30 to 7:30 p.m., with the regular agenda items scheduled thereafter. FYI/Discussion. Bob Pavlic noted that preliminary work is being done for extension of the Front Street sewer main to the hospital. Bob Pavlic stated it appears cold storage will continue at one end of the depot and that the remainder of the depot will be heated and used as a bunk house. He noted that many improvements to the building are needed; and the railroad is not happy about the graffiti that has recently appeared. Bobbi Clem noted that discussions are still being held about a possible lease of the depot. NURB Meeting – February 12, 2019 6 Adjournment – 8:04 p.m. There being no further business to come before the Board at this time, Chair Usher adjourned the meeting. John Usher, Chair Northeast Urban Renewal Board City of Bozeman