HomeMy WebLinkAboutResolution 5046 Declaring West Peach Condos as an Urban Renewal Project B0
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RESOLUTION NO. 5046
RESOLUTION APPROVING A PROJECT IN THE BOZEMAN MIDTOWN URBAN
RENEWAL DISTRICT KNOWN AS WEST PEACH CONDOS 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
BE IT RESOLVED by the City Commission(the"Commission")of the City of Bozeman,
Montana(the"City"), 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 by the Commission on
November 27, 2006, as amended by Ordinance No. 1925, adopted by the City Commission on
December 16, 2015 (collectively, the "Ordinance"), the City has created the Bozeman Midtown
Urban Renewal District(the"District")as an urban renewal district and has approved the Bozeman
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Resolution 5046,Approving a Project in the Midtown Urban Renewal District Known as West Peach Condos
Midtown Urban Renewal Plan (the "Plan") for the District containing a tax increment financing
provision, all as set forth in the Ordinance and the Plan.
1.03. The Plan details conditions of blight in the District,including physical deterioration
of public improvements, including with respect to streets, curbs, gutters, sidewalks, storm
drainage, lighting and landscaping. In addition, the Plan outlines goals and initiatives for the
District, including installing signage, lighting, landscaping and sidewalk, curb, gutter and street
improvements, to promote economic development, improve multi-modal transportation and
improve, maintain and support innovation in infrastructure.
1.04. On May 6, 2019, the Commission adopted Resolution No. 5045, calling a public
hearing to approve the construction of a residential condominium project known as "West Peach
Condos," expected to consist of approximately seventeen units with private garages, and related
public infrastructure improvements, including sidewalks, street lights, street improvements and
water and sewer infrastructure 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 West Peach, LLC, as developer of the Project (the
"Developer"), for certain eligible costs thereof, consisting of the costs of the public infrastructure
improvements (the"Eligible Costs"). On May 20,2019,a duly noticed public hearing was held on
the approval of the Project and the use of tax increment revenues to pay or finance all or a portion
of the costs of the Project 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.
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Resolution 5046,Approving a Project in the Midtown Urban Renewal District Known as West Peach Condos
The Commission hereby finds with respect to the Project as follows:
a. no persons 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.
Section 4
Development Agreement; Use of Tax Increment.
4.01. 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,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
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Resolution 5046,Approving a Project in the Midtown Urban Renewal District Known as West Peach Condos
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 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 1.150-2(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.
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Resolution 5046,Approving a Project in the Midtown Urban Renewal District Known as West Peach Condos
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$275,000 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.
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.
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Resolution 5046,Approving a Project in the Midtorvn Urban Renewal District Known as West Peach Condos
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 20th day of May, 2019.
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APPROVED AS FORM:
GIWG LIVAN
City Attorney
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Resolution 5046,Approving a Project in the Midtown Urban Reneival District Known as West Peach Condos
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. 5046, entitled: "RESOLUTION APPROVING A PROJECT IN THE
BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT KNOWN AS WEST PEACH
CONDOS 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"(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 May 20, 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: V)-,AA(-x AyAilL� f1-r�j
Rj " LA vrAa voted against
the same: abstained from voting
thereon: ; or were absent: ( nAM ✓ Vtl-.,tnsS
WITNESS my hand officially this 21st day of May, 2019.
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ROBIN CROUGH
City Clerk U; , ,�'�y-? A
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EXHIBIT A
[Form of Development Agreement]
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