HomeMy WebLinkAboutResolution 5030 Approving Cottonwood and Ida an Urban Renewal Project U w
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RESOLUTION NO. 5030
A RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL
DISTRICT AS AN URBAN RENEWAL PROJECT, MAKING FINDINGS WITH
RESPECT THERETO AND APPROVING THE USKOF 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
COTTONWOOD AND IDA
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. 1655, adopted on November 28, 2005 (the
"Ordinance"), the City created the Northeast Urban Renewal District (the "District") as an urban
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Resolution 5030,Designating Cottonwood and Ida as an Urban Renewal Project
renewal district and approved the Northeast 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 25,2019,the Commission adopted Resolution No. 5029,calling a public
hearing to approve the construction of a mixed-use development consisting of residential housing;
office, retail and artist/maker spaces; parking; public plaza spaces, greenways and/or pavilions;
and related public infrastructure improvements, including sidewalks, bike lanes, street
improvements and utility improvements (collectively, 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 by Cottonwood and Ida, LLC, as developer of the
Project (the "Developer"), for certain eligible costs thereof, including the public infrastructure
improvements and impact fees (the "Eligible Costs").
1.04. On April 15, 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
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 3
Findings.
The Commission hereby fi-nds with respect to the Project as follows:
a. no persons will be displaced from their housing by the Project;
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Resolution 5030,Designating Cottonwood and Ida as an Urban Renewal 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.
Section 4
Development Agreement; Use of Tax Increment.
4.01. The Northeast 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 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.
4.02. 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.
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Resolution 5030,Designating Cottonwood and Ida as an Urban Renewal Project
Section 5
Reimbursement Expenditures.
5.01. 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
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.
5.02. 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.
5.03. 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$2,129,215.68 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.
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Resolution 5030,Designating Cottonwood and Ida as are Urban Renewal Project
5.04. 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
City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the
date hereof.
5.05. 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 22nd day of A-Dfil,,2019.
T
Mayor
ATTEST:
w .�:
ROBIN CROUGH
City Clerk * • � """;
. ,•
�9LL9Tl • •® +O APPR VED A ORM:
NC
LLIVAN
City Attorney
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Resolution 5030, Designating Cottonwood and Ida as an Urban Renewal Project
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. 5030, entitled: "RESOLUTION APPROVING A PROJECT IN THE
NORTHEAST 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 COTTONWOOD AND IDA" (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 April 22,2019, 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: Mq 4ew PrAj wts� M' 14ty Vy'e-&t
voted against
the same: ; abstained from voting
thereon: ; or were absent:
WITNESS my hand officially this 2 d ay of 2019.
C �aOI� rJ
sD7 sj 'J
ROB CROUGH ''"+: 4"he •
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City Clerk . * _ '•
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EXHIBIT A
Form of Development Agreement