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HomeMy WebLinkAbout03-05-19 Minutes - Northeast Urban Renewal Board (NURB)NURB Meeting – March 5, 2019 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, March 5, 2019 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, March 5, 2019, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: John Usher, Chair Bobbi Clem Dan Doehring Robert Pavlic Jeanne Wesley-Wiese (arrived at 6:37 p.m.) Non-Voting Members: Ethan Barlow (left meeting at 7:50 p.m.) Dalton Brink Nolan Campbell Corwin Dormire Commissioner Liaison: I-Ho Pomeroy Staff: Brit Fontenot, Economic Development Director David Fine, TIF Specialist Robin Sullivan, Recording Secretary Guests: Brian Caldwell, 33 North Black Avenue Chris Nixon, 719 North Wallace Avenue Call to Order – Chair John Usher called the meeting to order at 6:30 p.m. Changes to the Agenda – Chair Usher stated that the resolution for the Cottonwood & Ida project will be first discussion item and the ethics training will be the second item, as requested by staff. Public Comment – No comment was received under this agenda item. Minutes – February 12, 2019. It was moved by Bob Pavlic, seconded by Dan Doehring, that the minutes of the regular meeting of February 12, 2019 be approved as submitted. The motion carried on a 4-0 vote. NURB Meeting – March 5, 2019 2 Discussion/Action Items – Resolution No. 2019-01 – Recommending that the City Commission identify the Cottonwood & Ida project as an urban renewal project. Due to his conflict of interest, Nolan Campbell removed himself from participation in this presentation and discussion. Brian Caldwell, Think Tank, presented the final site plan to the Board, noting that their next presentation will be before Commission on March 25. The plan has remained true to the original vision, with some modifications. There will be 92 residential units designed to be diverse from both demographic and economic standpoints and it is not a luxury condo project. He stated that both affordable and attainable units are to be provided, and the units will range from 400-square-foot studio units to 1,500-square-foot two-bedroom units. Instead of a single monolithic building on the site, this project will include six buildings with a variety of architectural characteristics that are in keeping with the existing neighborhood. Brian Caldwell stated that 200 parking spaces are to be provided for this project, which is a slight reduction from the number of spaces required under the zone code. The 96 underground parking spaces on site will generally be for the residents, and the surface parking spaces for the commercial portions will be on the Brewery site and on the street. Jeanne Wesley-Wiese asked how many people will be located on this site when the project is complete; Brian Caldwell estimated there will be 120 beds in the residential portion of the project plus those who work in the commercial spaces. He then stated that, with the sizes of the residential units, this project is designed to provide a more pedestrian based lifestyle, hopefully with a percentage living and working within the development or within the neighborhood. Further responding to questions from Jeanne Wesley-Wiese, Brian Caldwell compared the number of parking spaces for the commercial portion of this project to the number of spaces provided by Wild Crumb and stressed that it is significantly higher. He then stated that, based on projected hour-by-hour use demands, 125 parking spaces will be required, and this project provides 200 spaces. He then noted that this project has been vetted by the Planning staff and has their support. Brian Caldwell turned attention to the Memorandum of Understanding that was executed for this project, and noted the only differences are the reduction of underground parking spaces and the request being for less tax increment financing monies. He confirmed that, with the lower number of underground parking spaces, there will be no public spaces with this project; rather, all of the spaces will be for the residential and commercial uses on the site. Responding to Jeanne Wesley-Wiese, Brian Caldwell acknowledged that the MOU was written when public parking was proposed in the underground garage. He stated, however, that the off- site improvements were more expensive than anticipated and the underground parking was extremely expensive. As a result, the amount of underground parking was significantly reduced, and its private use will allow the developer to better control access and provide for safety of the residents within this project. Responding to Bobbi Clem, Brian Caldwell confirmed that the on-street parking will be public parking and are not part of the parking calculations for this development. He also noted that the on-street parking spaces near the climbing boulder are being added as a part of this project but are not counted for this project. NURB Meeting – March 5, 2019 3 Bob Pavlic noted that snow plowing in this area is extremely limited, which will keep people from parking in those spaces. Brian Caldwell stated they are responsible for making a number of improvements to the public rights-of-way, which will result in places for snow to be piled. He then noted that the parking on the Brewery site will meet the suburban parking lot standards and can be easily maintained because it is an open area. Brian Caldwell highlighted the changes between the improvements included in the MOU for which reimbursement would be sought and the improvements now included in that list. He stated that the underground parking has been eliminated and the improvements to the North Ida Avenue/East Aspen Street/Front Street intersection and on-street parking have been added. Responding to Jeanne Wesley-Wiese, Brian Caldwell stated that development of the Brewery site will be a separate project. He noted that this is a $40 million project; and that is a large project for his team as well as for this area. He noted that once the project is completed, they can analyze the need for more residential, retail or other commercial uses before pursuing development of this site. Responding to John Usher, Brian Caldwell confirmed that they have purchased the Brewery site. He noted that the parking spaces being constructed on this site as a part of the current project will be subject to a 25-year lease agreement. Responding to concerns voiced by board members about the number of people that will live, work or visit this site, Brian Caldwell acknowledged that parking is a big deal. He stressed that this development will not impact the area further because of the number of parking spaces provided. Brian Caldwell turned attention to the additional taxes that will be generated by this development, which are projected at $350,000 annually, or nearly three times the amount of tax increment generated at this time. He then stressed that the requested bond issue for reimbursement of public infrastructure expenses will not occur until after the project is completed and the taxable value is certified. This process will result in no exposure for this Board or the City. He projected that the amount remaining after the bond repayment will be $167,000 annually, which the Board can use for additional improvements. He then stated that this project will provide affordable housing and attainable housing, will meet LEED neighborhood standards, and will include robust landscaping, varied architectural character and building elevations, and access to public plazas on the site. David Fine stated the resolution before the Board broadly designates the Cottonwood & Ida project as an urban renewal project, which makes it eligible for tax increment funds. He then noted that this Board is advisory; and the City Commission makes the decisions on whether to designate this as an urban renewal project and on the issuance of tax increment bonds. As a result, this is the only action that this Board will take. Responding to questions from Dan Doehring, Brian Caldwell stated that the seven units to be rented at 65 percent of AMI will be managed by HRDC. He then stated that he does not anticipate the prices of the small units to climb dramatically, although the 1600-square-foot two- bedroom units may be attractive as a second home. NURB Meeting – March 5, 2019 4 Responding to Dalton Brink, Brian Caldwell stated he feels a majority of the units will be attainable, based on 100 percent of AMI. He then indicated he believes that allowing the construction of more units will help to balance the rents charged. Responding to questions raised by Bob Pavlic, John Usher noted that people traveling in and out of the development put stress on the street system. He then noted that there seems to be a tension between development in the area and the underlying HMU zoning. David Fine noted that the report done by Economic and Planning Systems for the Community Development Department revealed that Bozeman has far more industrially zoned land that it will need at the current rate of development. He then noted that Bozeman land is so expensive it is not conducive to industrial uses. John Usher turned attention to the resolution before the Board. Responding to questions from the Board, Brian Caldwell stated that the taxing authority sets the taxes to be assessed after the project is complete. He does not anticipate that it will take a year for the Department of Revenue to measure and document the project and to certify the taxes. David Fine assured the Board that staff will work with bond counsel on the timing for issuance of the bonds. He noted the City will need to know that tax increment monies will be received before the bonds are issued and monies released to the developer. Brian Caldwell stated he is pushing for a June 1 start date for construction; however, he recognizes that date will likely be pushed back to July 1. He projected that construction will take eighteen months to complete. John Usher expressed concern about the general tone of the resolution and asked for more specificity. David Fine noted the resolution includes a number of recitals that reflect the history of the district and the project; and the meat of the resolution is found on the last page and include four items. Those are analyzing the proposal to ensure its adequacy, identifying this as an urban renewal project, authorizing the issuance of tax increment financing bonds, and pledging the annual tax increment for repayment of those bonds. He acknowledged that the resolution is sequential and broad. Further responding to questions, David Fine stated this Board forwards its recommendation, the Commission designates the project and then staff works with bond counsel and the Commission to complete issuance of the bonds. He then confirmed that repayment of the bonds is projected to take slightly more than half of the tax increment once this project is complete. The remaining portion of the increment can then be used for other projects within the district. Responding to concerns voiced by the Board, David Fine recommended that the three-page exhibit submitted by the developer be included as Attachment A, noting that it outlines what the developer is requesting and the estimated costs of the public infrastructure projects. Brian Caldwell stated that removing the request for reimbursement of a portion of the underground parking spaces makes it much cleaner. NURB Meeting – March 5, 2019 5 Brit Fontenot cautioned that any changes to the resolution will require review and approval by bond counsel. He then voiced support for adding the three-page exhibit to the resolution to provide the specificity sought. He then indicated that the final bond resolution will be specific and will reflect the details of the project as constructed. Following additional discussion about the wording of the resolution and the referenced Memorandum of Understanding, staff noted that the bond monies are to be used only for those infrastructure improvements that the public will benefit from. Brit Fontenot encouraged board members to attend the Commission’s public hearings on the issuance of tax increment bonds for this project. Board members recognized that this site will be developed in some manner; and this project is going through a public process that other recent developments have not. It was moved by John Usher, seconded by Dan Doehring, that the Board adopt Resolution No. 2019-01 as amended to correct typographical errors and add Attachment “A”, which is the three- page exhibit prepared by the developer. The motion carried on a 5-0 vote. David Fine indicated he will revise the resolution to reflect the Board’s action and will forward it to the Board. Ethics training. Since he had previously completed the ethics training, Ethan Barlow left the meeting. In his power point presentation, Brit Fontenot stressed the importance that the City has placed on annual ethics training, noting that it is included in both the City Charter and the City Code. He gave an overview of the ethics training processes that have been followed in past years, noting that this year staff is providing training to the boards at their regular meetings. Brit Fontenot stated that completing an annual financial disclosure statement is required, and asked any board member who has not done so to complete and return the statement as soon as possible. He also circulated a sign-up sheet, noting that it must be signed to confirm that the training has been completed. Brit Fontenot noted that board members must be aware of not only conflicts of interest but also perceived conflicts of interest. He then identified resources available to those who are unsure if they have a conflict of interest, which includes various city staff. Brit Fontenot stated that this year’s training is scenario based. He asked that once the scenario has been read, board members identify whether a conflict of interest exists and, if so, where the conflict lies. The scenarios included a variety of situations encountered by city staff and by various advisory boards. Staff updates on items of interest to the Board. Due to the late hour, there was no staff update. NURB Meeting – March 5, 2019 6 Discussion regarding items to be included in work plan and budget for Fiscal Year 2019-2020. Due to the late hour, this item was deferred until the March meeting. Appointment of Chair and Vice Chair for 2019. Bob Pavlic indicated a willingness to serve as Chair; however, he noted that he will be out of town in May and June because his father recently died and he has estate issues to handle. John Usher noted that the Vice Chair can serve as Chair for those meetings. It was moved by Bobbi Clem, seconded by Dan Doehring, that Bob Pavlic be appointed as Chair and Jeanne Wesley-Wiese appointed as Vice Chair for 2019. The motion carried on a 5-0 vote. Set agenda for April 2, 2019 meeting or cancel meeting. To be included on the agenda, in addition to the standard agenda items, is discussion on the work plan and budget for Fiscal Year 2019-2020. FYI/Discussion. There was no discussion under this agenda item. Adjournment – 8:48 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