HomeMy WebLinkAbout05-06-19 City Commission Packet Materials - C13. Res 5045, Approving West Peach Condos as an Urban Renewal Project
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Urban Renewal Program Manager SUBJECT: Resolution 5045: Resolution Calling a Public Hearing on Approving a Project in the Bozeman 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 a Project, Known as West Peach Condos MEETING DATE: May 6, 2019 AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the Mayor to sign Resolution 5045.
BACKGROUND: The City Commission created the Midtown Tax Increment Financing (TIF) Assistance Program on January 23, 2017 pursuant to Resolution Number 4770. The program encourages investment and the development and redevelopment of mixed-use and residential property within the Midtown Urban Renewal District using targeted incentives. West Peach, LLC (the “Applicant”) submitted an application for assistance through this program to support West Peach Condos, which consists of 17 townhome-style condominiums, each unit featuring 3 bathrooms, two bedrooms and an office, proposed for the corner of N. 3rd Ave. and West Peach St. Staff is negotiating a development agreement which may include mitigation of the costs for public infrastructure, public utility connections, demolition of the existing structure, impact fees, cash-in-lieu of water rights, and cash-in-lieu of parkland. A public hearing on a Resolution designating the proposed project as an urban renewal project and approving the negotiated development agreement is proposed for May 20, 2019. To provide for a more expedient processing of this application, this Memorandum was drafted in advance of the Midtown Urban Renewal Board meeting scheduled for May 2, 2019, where this project is being considered for a recommendation. In the event the project does not move forward at that meeting, or more information is required, Staff will request that no action be taken on this consent item. The Applicant desires to move forward on the project as soon as possible. Due to full City Commission agendas and the need to provide
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packet materials in advance, keeping the project on schedule required completing some steps of the required process in parallel instead of in series. To the extent that “time is money” for redevelopment projects and as the City Commission is considering providing monetary incentives to ensure the financial feasibility of projects, it makes sense to promote schedules that save time and money, while still ensuring adequate review and opportunities for public participation.
FISCAL EFFECTS: This Resolution of Intent to call a public hearing has no fiscal effects. ATTACHMENTS:
• Resolution 5045
• Certificate as to Resolution and Adopting Vote
Report prepared on April 26, 2019
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Page 1 of 7
RESOLUTION NO. 5045
RESOLUTION CALLING A PUBLIC HEARING ON APPROVING A PROJECT IN
THE BOZEMAN 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, KNOWN AS WEST PEACH CONDOS
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”) as an urban renewal district and approved the Bozeman Midtown Urban Renewal
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District Plan (the “Plan”) as an urban renewal plan, which Plan contains a tax increment
financing provision in accordance with the Act.
1.03. Pursuant to the Plan, tax increment financing is to be used to further the
implementation goals in the Plan, which include encouraging investment in development and
redevelopment of commercial and mixed use property within the District in accordance with the
provisions of the Act.
1.04. In addition, the Plan created the Midtown Urban Renewal Board (the “Board”) to
exercise the powers of an urban renewal agency under the Act with respect to the District and to
implement the Plan. Among other things, the Board is required to prepare an annual work
program and budget for projects in the District, which program and budget are subject to review
and approval by the Commission.
1.05. Pursuant to Resolution No. 4770, adopted by the Commission on January 23, 2017,
the City approved a program to encourage investment the development and redevelopment of
commercial and mixed use property within the District (the “Midtown TIF Assistance
Program”), and delegated authority to the Board to administer the Midtown TIF Assistance
Program.
Section 2
The Project.
West Peach, LLC (the “Developer”) proposes to undertake the construction of West
Peach Condos (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.
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Resolution 5045, Calling a Public Hearing on Approving a Project in the Bozeman Midtown Urban Renewal District
Page 3 of 7
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 recommended that the Commission approve the Project as an urban renewal project under
the Act and approve using tax increment revenues or issuing tax 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.
Section 3
Preliminary Findings.
The Commission 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.
Section 4
Public Hearing.
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Resolution 5045, Calling a Public Hearing on Approving a Project in the Bozeman Midtown Urban Renewal District
Page 4 of 7
A public hearing is hereby called and shall be held on May 20, 2019 at 6:00 p.m. in the
City Commission Room at City Hall, 121 N. Rouse Avenue, Bozeman, Montana, on the
approval of the Project as an urban renewal project under the Plan and the proposed use of tax
increment revenues or the proceeds of tax increment bonds to pay, reimburse or finance all or a
portion of the Eligible Costs.
Section 5
Notice.
Notice of the public hearing shall be published in the Bozeman Daily Chronicle on May
12, 2019 and May 19, 2019, in substantially the form attached as Exhibit A hereto (which is
incorporated by reference and made a part hereof).
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Resolution 5045, Calling a Public Hearing on Approving a Project in the Bozeman Midtown Urban Renewal District
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 6th day of May 2019.
___________________________________
CYNTHIA L. ANDRUS Mayor
ATTEST:
__________________________________ ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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EXHIBIT A
NOTICE OF PUBLIC HEARING ON APPROVING A PROJECT IN THE BOZEMAN
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, KNOWN AS WEST PEACH CONDOS
NOTICE IS HEREBY GIVEN that the City Commission (the “Commission”) of the City
of Bozeman, Montana (the “City”) will hold a public hearing on May 20, 2019, at 6:00 p.m. in
the City Commission Room at City Hall, 121 N. Rouse Avenue, Bozeman, Montana on the
approval of the following project in the Bozeman Midtown Urban Renewal District as an urban
renewal project under state law and the Bozeman Midtown Urban Renewal District Plan: West
Peach Condos (collectively, the “Project”). It is proposed that the City pay or reimburse the
developer of the Project for certain eligible costs of the Project, either from tax increment
revenues or the proceeds of tax increment revenue bonds.
Any interested persons may appear and will be heard or may file written comments with
the City Clerk prior to such hearing.
Dated this 8th day of May, 2019
_________________________________________
Robin Crough
City Clerk
Legal Ad
Publication Dates:
Sunday, May 12, 2019
Sunday, May 19, 2019
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Resolution 5045, Calling a Public Hearing on Approving a Project in the Bozeman Midtown Urban Renewal District
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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. 5045, entitled: “A RESOLUTION CALLING A PUBLIC HEARING ON
APPROVING A PROJECT IN THE BOZEMAN 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, KNOWN AS WEST PEACH CONDOS” (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 meeting on May 6, 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:______________________________________
_____________________________________________; voted against the same: _______ ;
abstained from voting thereon: ____________ ; or were absent: ___________ .
WITNESS my hand officially this 7th day of May, 2019.
___________________________________
ROBIN CROUGH City Clerk
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