HomeMy WebLinkAboutPages from Midtown URD Agenda and Packet Materials 20190912
Page 1 of 5
Unapproved minutes from July 11, 2019 board meeting
held at the City Hall, Madison Room TO DO List:
Everyone attend August 1 board meeting
In attendance: Andrew Cetraro, Susan Fraser, Scott Hedglin, David Fine, Nolan Campbell,
Valerie Wyman, Carl Solvie, Kevin Cook, Terry Cunningham
A. Call to Order – Andrew called to order at 4:30pm.
B. Changes to Agenda – Scott wanted to ask about moving September meeting during the
FYI section.
C. Public Comment – none.
D. Approve Minutes
Nolan motioned acceptance of May 2019 minutes as presented. Scott seconded the
motion. All in favor.
F.1. Action Item – Updates to Midtown TIF Assistance Program App
Sanderson-Stewart’s Lauren joined the table as most edits reflect her experienced
suggestions. David gave overview, including addition of credit for single-family housing
(see Attachment A for sections with suggested edits).
Scott asked if application could be part of concept review. David responded noting $5500
to process each of this applications as $5K for the return on investment report.
Discussion.
Lauren suggested not adding this application to an already convoluted process, but
suggested a sandwich approach before site plan review stage.
Discussion continued. David went through each suggested edit. Some language tweaks
discussed, including affordable housing addition.
Staff will make edits as suggested and will bring back to board for approval at August 1
meeting.
FYI
Scott asked to move the September meeting to the second week, making it Thursday,
September 12. David will make the date change.
David gave an update from Kevin with Morrison Maierle. Kevin says he will hand over the
full design for the Mendenhall to Beall project by August 1 so can get MDT final approval
and out to bid during the winter months.
Adjournment
Andrew adjourned the meeting at 5:30pm.
Page 2 of 5
Attachment A
Page 4 of program description, application process, 2nd paragraph:
Prior to submitting the grant application, the Applicant must have obtained and
provide to the Board written comments on the proposed development from the
Conceptual Review Application through the Community Development Department.
The Conceptual Review must provide adequate detail to receive comments from the
Engineering Division on required utility connections and off-site infrastructure.
Page 5 of application, project narrative:
Proposed use(s) of project
o e.g. industrial, commercial, retail, office, mixed use, residential for sale or for
rental, etc.
o Total number and individual square footage of residential units; type of
residential units (e.g. for-sale, rental, condominium, single-family, etc.);
number and type of parking spaces provided; and construction phasing.
Project Timeline
o Include anticipated dates for site acquisition, project start and completion, as
well as other project milestones. Multi-phase projects must include details for
each phase. The timeline should also identify any critical or time-sensitive
dates as well as any time constraints facing the applicant.
Construction information
o size of any existing structure to be demolished or rehabbed; size of any new
construction; types of construction materials (structural and finish);
delineation of square foot allocation by use
Public Benefits
o Describe the public benefits that can be realized by the completion of this
project. Projects with a high degree of public benefits are typically more likely
to receive TIF assistance. This statement should include qualitative examples
of public benefits as well as quantifiable and measurable outcomes of the
short-term and long-term benefits to the District. Examples of public benefits
include, but are not limited to the following:
Elimination of blight
Creation of urban density mixed use project that includes new
housing options
Increased tax revenue
Job-training opportunities
Page 7 of application, site maps and building plans:
The Applicant must submit a completed Conceptual Review Application and City
responses to the Board. The Conceptual Review application must include, at minimum:
Photographs of project site and/or building
Map showing the location of the site and its immediate surroundings
Page 3 of 5
Proposed development plans including site plans, floor plans indicating square
footage and layout, building elevations
Description of parking accommodations for residential units and commercial
uses
Estimated date of occupancy
Anticipated off-site infrastructure improvements
Copy of Concept Review comments
Page 8 of application, criteria matrix:
In reviewing the TIF assistance application the Board will evaluate each project
utilizing the following criteria and point system. Points can range from 0 to the
maximum shown below in each category. Please rate your project according to the
following criteria. To receive points for any given item, provide a detailed narrative
response to each criterion and include documentation demonstrating adherence to
the criteria must be submitted with the application. The Board will use this
information to evaluate the project.
Midtown District Goals Points
Promote Economic Development
1. Tax Generation: The project will increase the taxable value within the District.
The increase in taxable value due to new construction & rehabilitation is
estimated by the County Assessor’s office or State Department of Revenue to
determine tax increment generation. Submit documentation of estimated
tax projections to receive points for this criteria
/4
2. Elimination of Blight – The project’s direct and indirect impact on the physical
and fiscal deterioration within the Tax Increment Financing District and the
community. Projects that redevelop underutilized properties will be given
priority. Submit information showing current conditions of property.
/4
3. Employment Generation – Total employment generated by the project
assessed in terms of new permanent and part-time jobs, and construction
jobs. Submit documentation of estimated new jobs to receive points for this
criterion.
/3
Improve Multi-Modal Transportation
4. Reduces Resource Demand: Project promotes the use of transit, ride sharing,
or car sharing. Provide plans, agreements or other methods to demonstrate
reduction of resource demand.
/1
5. Promotes Active Transportation: Project promotes bicycling as an active
transportation option by constructing or improving bike lanes, providing
covered bike parking, and/or participating in a bike share program. Provide
plans, agreements or other methods that demonstrates the project goes
beyond the minimum Bozeman UDC requirements for site development.
/2
Improve, Maintain and Support Innovation in Infrastructure
6. Infrastructure Improvements: Project promotes innovation in infrastructure
and/or reduces long term costs of maintenance. Examples include low impact
/2
Page 4 of 5
development for stormwater or car charging stations. Does the project
enable better connectivity or provide critical infrastructure for the
community? Provide plans and descriptions of innovations proposed.
Promote Unified Human Scale Urban Design
7. The project reduces the number of vehicular access points to the property
and improves the pedestrian experience. Provide plans, agreements or other
methods to demonstrate reduction.
/2
8. The project enhances the North 7th Ave. entryway corridor by having
buildings oriented toward the street and designed to provide interest and
activity.
/2
9. The project enhances the pedestrian experience by using a storefront block
frontage (BMC 38.510) as a component of the project. Key elements of the
frontage would include façade transparency, building articulation, street
furniture and/or landscaping. Submit plans and details that address this
criterion.
/2
10. The quality of development and overall aesthetics (architectural, site design,
landscaping, etc.) are beyond that which is minimally required by the UDC.
Provide a narrative and submit documentation to demonstrate compliance
with this criterion.
/1
Support Compatible Urban Density Mixed Land Uses
11. The project increases housing units within the District. Submit plans
demonstrating an increase in the number of housing units.
/6
12. The project is a mix of residential and commercial. Commercial uses include
retail, restaurant, office and services. Hotels would not be supported unless
included with a project that included residential development. Submit plans
detailing the proposed mix of uses within the project.
/6
13. The project shares parking among compatible uses. Provide details
demonstrating compliance with the UDC and as well as total number of
parking spaces reduced because of a shared arrangement.
/2
14. The project provides affordable dwelling units. For the purposes of this criterion, an
affordable dwelling unit is defined as a unit that requires no more than 33 percent of
a household’s income for housing payments based on a designated percentage of
area median income (AMI). Eligible rental units shall be affordable at 70% AMI and
eligible for sale units shall be affordable at 90% AMI. Condominium units are eligible
as for sale units.
Eligible rental dwellings to be constructed in the proposed residential development
shall be provided by long-term contractual obligation to an affordable housing
agency, for a period of not less than 20 years, with a written plan assuring ongoing
affordability pricing and eligibility monitoring, and annual re-certification. The city's
affordability guidelines and subsequent revisions establish affordability and
eligibility. To receive 3 points under this criterion, 10% of all units must meet the
affordability criteria. To receive 6 points under this criterion, 20% of all units must
meet the affordability criteria.
/3
or
6
Page 5 of 5
Overall District Relevance
15. Relevance to the Midtown Urban Renewal Plan – Documentation of the
project’s impact in relation to the goals and objectives of the Midtown Urban
Renewal Plan, particularly mixed-use development. Urban design elements
will also be considered, including pedestrian emphasis and quality of design.
/5
16 The investment of public funds in the project results in a leverage ratio of at
least 10:1 for multifamily, 8:1 for commercial, or 5:1 for family wage jobs.
/4
Total Points /52
Page 11 of application, for projects requesting over $50K:
Project Financial Information
In order for the Midtown Urban Renewal District Board to adequately review
applications seeking TIF assistance, the following information must be submitted
with the application. This information will be used to perform a third-party financial
analysis to determine the project’s anticipated return on investment (ROI) and
reasonableness of developer profit. The goal of the Midtown TIF Assistance program
is to make projects financially feasible. Therefore, projects that demonstrate
financial need for public funding will be given priority.
MIDTOWN TAX INCREMENT FINANCING (TIF) ASSISTANCE PROGRAM
INTRODUCTION
The Midtown Urban Renewal Plan (“Plan”), adopted by the Bozeman City Commission on November 16,
2015, authorized the Midtown Urban Renewal Board (“Board”) to establish monetary incentives in the
Midtown Urban Renewal District (“District”) in support of the Plan’s goal to promote economic
development. The Board established and administers this Tax Increment Financing (“TIF”) assistance
program for the redevelopment and rehabilitation of properties within the District.
TIF assistance applications are subject to program eligibility criteria and project guidelines listed below.
Applications will be accepted and processed in the order in which they are received and approved based
on the availability of funds for the program.
PURPOSE
The purpose of the TIF assistance program is to encourage desirable development/redevelopment
projects, as well as assist projects that would not otherwise occur “but for” the assistance provided
through tax increment financing. The purpose of this document is to provide guidelines for the Board to
offer monetary incentives for development activities in the District in the form of TIF assistance funds.
This policy shall be used as a guide in processing and reviewing applications requesting TIF assistance.
The Board shall have the option of amending or waiving sections of this policy when it determines, in its
sole discretion, such an amendment or waiver is necessary or appropriate. In amending or waiving any
sections of this policy, the Board shall document the reason for the deviation.
The provision of financial assistance is at the sole discretion of the Board. The Board reserves the right
to reject or approve applications on a case‐by‐case basis, taking into account established policies,
specific project criteria and the demand on District services in relation to the potential benefits to be
received from the proposed project. Meeting policy guidelines or other criteria does not guarantee the
award of TIF assistance. Furthermore, the approval or denial of one application is not intended to set
precedent for approval or denial of another application.
Page 2 of 4
Midtown Urban Renewal District TIF Assistance
Revised August 2019
PROGRAM OBJECTIVES
The primary objective of the TIF assistance program is to encourage investment in development and
redevelopment of commercial and mixed‐use property within the District in accordance with the
provisions of the Montana Urban Renewal Law (7‐15‐4209, 7‐15‐4233, and 7‐15‐4288, M.C.A.).
Additional District objectives are to:
• Encourage private investment in commercial property in the District through the use of public
incentives;
• Expand the property tax base in the District through private investment in income producing
properties;
• Stimulate economic and business development within the District; and
• Reduce blighting influences in the District
The grants are awarded at the discretion of the Board as authorized by the Bozeman City Commission,
based upon review of the Applicant's compliance with program objectives, eligibility requirements, and
eligible construction activities.
GENERAL POLICIES
1. TIF assistance priority will be given to projects that do not have the financial feasibility to proceed
without the benefit of the assistance.
2. The applicant shall provide market and financial feasibility studies, appraisals or other information
provided to private lenders for the project as well as any other information or data which the Board,
or its financial consultants, may require in order to review the need for TIF assistance.
3. TIF assistance will not be used for projects that place extraordinary demands on District
infrastructure or services.
4. The applicant must be able to demonstrate, to the Board’s satisfaction, an ability to construct,
operate and maintain the proposed project based upon past experience, general reputation and
credit history.
5. The applicant shall provide sufficient market, financial, environmental and other data relative to the
successful operation of the project.
6. The Applicant must retain ownership of the project long enough to complete it, to stabilize its
occupancy, to establish the project management, and to initiate payment of taxes based on the
increased project value. This application must be signed by both the applicant(s) and the property
owner(s) (if different).
7. Project plans and construction must comply with all applicable code and permit requirements.
Applicant is advised to consult with the City of Bozeman planning and building departments,
licensed architects, engineers, or building contractors before proceeding with final plans or
construction.
8. The Applicant must demonstrate significant leverage of private investment through the use of public
dollars.
Page 3 of 4
Midtown Urban Renewal District TIF Assistance
Revised August 2019
ELIGIBLE COSTS
TIF eligible expenses are defined by Montana Code Annotated, 7‐15‐4288 and further limited by the
Plan. The project seeking TIF assistance must be located within the boundary of the District.
Costs related to the following are eligible for financial assistance:
1. Demolition and removal of structures
2. Construction and improvement of public improvements or infrastructure, including streets,
curbs, gutters, sidewalks, alleys, parking lots and off‐street parking facilities, sewer lines,
storm sewers, waterlines, and impact fees
Requests for funding above $50,000 will require the ratification of the Bozeman City Commission.
DISBURSEMENT OF ASSISTANCE FUNDS
The TIF assistance program is a reimbursement program. No funds will be disbursed until all completion
criteria have been satisfactorily met as determined by the Board in its sole discretion. At the end of the
project, the recipient will submit a Certificate of Completion and required supporting documentation to
the Board including itemized invoices and other documentation as the Board may reasonably request.
USE OF ASSISTANCE FUNDS
The award of TIF assistance funds is subject to the Applicant entering into a grant agreement with the
District. The grant agreement will include requirements that the grantee comply with (i) applicable City
of Bozeman procurement regulations related to bidding, hiring, and prevailing wages; (ii) the City’s
nondiscrimination policy; and (iii) State of Montana public records laws. The grant agreement will
include such additional terms as the District in its sole discretion determines are prudent or necessary to
fulfill the goals of the TIF assistance program.
TIF assistance funds must be used within two years of the date of the Letter of Award. Any funds not
disbursed to the Applicant within that time will remain in the District fund. The Board, in its sole
discretion, may provide an extension of up to one year to the original two‐year timeframe.
Use of TIF assistance funds must be in compliance with the terms of the grant agreement between the
Applicant and the District.
REVOCATION OF AWARD
The grant agreement will include terms providing that an award of TIF assistance may be revoked by the
Board if the Board finds, in its sole discretion, that Applicant has failed to comply with any of the terms
of the assistance program or grant agreement, or has failed to provide information or provided
inaccurate information on the application. Upon such a finding, the Board will provide Applicant with
notice of the default and a 30‐day opportunity to cure before the award is revoked. The grantee will be
required to return TIF assistance funds already disbursed pursuant to the terms of the grant agreement.
DISCLAIMER: Neither the Board nor the City of Bozeman will be responsible for the planning, design,
or construction proposed by any work conducted as part of the TIF assistance program. No
Page 4 of 4
Midtown Urban Renewal District TIF Assistance
Revised August 2019
warrantees or guarantees are expressed or implied by the description of, application for, award of or
participation in the TIF assistance program.
APPLICATION PROCESS AND PROCEDURE
Application for TIF assistance shall be made on the forms provided by the Board and submitted to the
Economic Development Department for review and comment. Deadlines for submittals shall be as
published and posted by the Board. Incomplete forms will be returned to the applicant with an
explanation on additional information as may be required.
Prior to submitting the grant application, the Applicant must have obtained and provide to the Board
written comments on the proposed development from the Conceptual Review Application through the
Community Development Department. The Conceptual Review must provide adequate detail to receive
comments from the Engineering Division on required utility connections and off‐site infrastructure.
For projects seeking TIF assistance for demolition or payment of impact fees, the City of Bozeman
Economic Development Department will review the application and provide a recommendation to the
Board and, if applicable, the Bozeman City Commission.
Application for TIF assistance are reviewed and analyzed using the information provided by the
application. Criteria are provided in the application materials and the applicant should provided detailed
documentation to demonstration adherence with the goals of the program. In addition, an analysis by a
third‐party economic consultant will be used to evaluate the application for creation of new taxable
value. The analysis will include a return on investment and estimated payback period for public
assistance and proposed metric for the ratio or private investment to public assistance. An additional
assessment will be completed of the development pro forma in order to assess the reasonableness of
the applicant’s incentive request.
If approved by the Board, or City Commission, a “letter of intent” outlining the specific terms and
conditions of the TIF assistance will be provided to the applicant.
SUBMITTAL INFORMATION
There are two parts to the application. All applicants must complete Part 1. Applicants requesting TIF
assistance above $50,000 must complete and include information identified in Part 2.
Part 1 – All Applications
Part 2 – Applications requesting funding over $50,000
Fee ‐ $3,500.00 for applications requesting funding over $200,000
Midtown TIF Assistance Part 1 Page 1
Midtown Urban Renewal District
TAX INCREMENT FINANCING ASSISTANCE (TIF) APPLICATION
PART 1
Property Information
Property Address: __
Property Owner:
Legal Description:
Property Geo‐Code:
County Tax ID #:
Applicant Information
Property Owner
Tenant
Developer
Other
Applicant’s primary contact:
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
Project Representative (if not applicant):
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
Property Owner (if not applicant):
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
Midtown TIF Assistance Part 1 Page 2
Company Profile
Business Location
New business establishing itself in Bozeman
Existing business
Expanding/remodeling at same location
Expanding to an additional location
Existing business relocating from (identify location):
Street Address:
City: State: Zip:
Other:
Year Business Established:
Type of Business (Describe):
Has a business plan been developed in relation to the proposed project?
No (Development of a business plan may be required as part of the application process)
Yes (Include a copy with the application)
Project Detail
Property Status:
Vacant land
Building on leased land – Describe:
Land and building(s) – Describe:
Type of TIF Assistance Sought:
Requesting assistance for public infrastructure costs
Building demolition
Value of TIF Assistance Sought:
$
Will this project proceed if TIF assistance is not granted?
No
In a limited fashion (explain):
Yes, but at a later date (explain):
Yes, as scheduled
Other:
Midtown TIF Assistance Part 1 Page 3
Midtown TIF Assistance Part 1 Page 4
Additional Information
1. Project Narrative
Provide an overview of the project in narrative format. The narrative must include a description of
the following aspects of the project:
Proposed use(s) of project
o e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc.
o Total number and individual square footage of residential units; type of residential units
(e.g. for‐sale, rental, condominium, single‐family, etc.); number and type of parking
spaces provided; and construction phasing.
Project Timeline
o Include anticipated dates for site acquisition, project start and completion, as well as
other project milestones. Multi‐phase projects must include details for each phase. The
timeline should also identify any critical or time‐sensitive dates as well as any time
constraints facing the applicant.
Construction information
o size of any existing structure to be demolished or rehabbed; size of any new
construction; types of construction materials (structural and finish); delineation of
square foot allocation by use
Public Benefits
o Projects with a high degree of public benefits are typically more likely to receive TIF
assistance. The criteria on pages 4‐6 of this application are intended to help the Board
understand and evaluate the public benefits for a project. Provide a detailed narrative
response to each criterion and include supporting documentation.
2. Site Maps and Building Plans
The Applicant must submit a completed Conceptual Review Application and City responses to the
Board. The Conceptual Review application must include, at minimum:
Photographs of project site and/or building
Map showing the location of the site and its immediate surroundings
Proposed development plans including site plans, floor plans indicating square footage and
layout, building elevations
Description of parking accommodations for residential units and commercial uses
Estimated date of occupancy
Anticipated off‐site infrastructure improvements, including anticipated costs
Copy of Concept Review comments
Midtown TIF Assistance Part 1 Page 5
CRITERIA FOR TIF ASSISTANCE
In reviewing the TIF assistance application the Board will evaluate each project utilizing the following
criteria and point system. Points can range from 0 to the maximum shown below in each category. The
following criteria will be used to rate your project. To receive points for any given item, provide a
detailed narrative response to each criterion and include documentation demonstrating adherence to
the criteria must be submitted with the application. The Board will use this information to evaluate the
project.
Midtown District Goals Points
Promote Economic Development
1. Tax Generation: The project will increase the taxable value within the District. The
increase in taxable value due to new construction & rehabilitation is estimated by
the County Assessor’s office or State Department of Revenue to determine tax
increment generation. Submit documentation of estimated tax projections to
receive points for this criterion.
/4
2. Elimination of Blight – The project’s direct and indirect impact on the physical and
fiscal deterioration within the Tax Increment Financing District and the community.
Projects that redevelop underutilized properties will be given priority. The
characteristics of an underutilized site includes land on which development occupies
only a small amount, and/or land or buildings that are or have been vacant for some
time. Submit information showing current conditions of property.
/4
3. Employment Generation – Total employment generated by the project assessed in
terms of new permanent and part‐time jobs, and construction jobs. Submit
documentation of estimated new jobs to receive points for this criterion.
/3
Improve Multi‐Modal Transportation
4. Facilitates Public Health and Mobility: Project will construct or improve ADA access
to and within existing structures. Provide detailed information demonstrating that
the current condition inhibits public health and mobility and the proposed
improvements benefit accessibility.
/1
5. Reduces Resource Demand: Project promotes the use of transit, ride sharing, or car
sharing. Provide plans, agreements or other methods to demonstrate reduction of
resource demand.
/1
6. Promotes Active Transportation: Project promotes bicycling as an active
transportation option by constructing or improving bike lanes, providing covered
bike parking, and/or participating in a bike share program. Provide plans,
agreements or other methods that demonstrates the project goes beyond the
minimum Bozeman UDC requirements for site development.
/2
Improve, Maintain and Support Innovation in Infrastructure
7. Infrastructure Improvements: Project promotes innovation in infrastructure and/or
reduces long term costs of maintenance. Examples include low impact development
for stormwater, incorporation of green roof design into building architecture, or car
charging stations. Low impact development (LID) incorporates designs such as
bioretention facilities, rain gardens and permeable pavers. Does the project enable
better connectivity or provide critical infrastructure for the community? Provide
plans and descriptions of innovations proposed.
/2
Midtown TIF Assistance Part 1 Page 6
Promote Unified Human Scale Urban Design
7. The project reduces the number of vehicular access points to the property and
improves the pedestrian experience. Provide plans, agreements or other methods to
demonstrate reduction.
/2
8. The project enhances the North 7th Ave. entryway corridor by having buildings
oriented toward the street and designed to provide interest and activity.
/2
9. The project enhances the pedestrian experience by using a storefront block frontage
(BMC 38.510) as a component of the project. Key elements of the frontage would
include façade transparency, building articulation, street furniture and/or
landscaping. Submit plans and details that address this criterion.
/2
10. The quality of development and overall aesthetics (architectural, site design,
landscaping, etc.) are beyond that which is minimally required by the UDC. Provide a
narrative and submit documentation to demonstrate compliance with this criterion.
/1
Support Compatible Urban Density Mixed Land Uses
11. The project increases housing units within the District. Submit plans demonstrating
an increase in the number of housing units.
/6
12. The project is a mix of residential and commercial. Commercial uses include retail,
restaurant, office and services. Hotels would not be supported unless included with
a project that included residential development. Submit plans detailing the proposed
mix of uses within the project.
/6
13. The project shares parking among compatible uses. Provide details demonstrating
compliance with the UDC and as well as total number of parking spaces reduced
because of a shared arrangement.
/2
14. The project provides affordable dwelling units. For the purposes of this criterion, an
affordable dwelling unit is defined as a unit that requires no more than 33 percent of
a household’s income for housing payments based on a designated percentage of
area median income (AMI). Eligible rental units shall be affordable at 70% AMI and
eligible for sale units shall be affordable at 90% AMI. Condominium units are eligible
as for sale units. Additional points may be awarded for projects that provide on‐site
housing for the proposed workforce.
Eligible rental dwellings to be constructed in the proposed residential development
shall be provided by long‐term contractual obligation to an affordable housing
agency, for a period of not less than 20 years, with a written plan assuring ongoing
affordability pricing and eligibility monitoring, and annual re‐certification. The city's
affordability guidelines and subsequent revisions establish affordability and
eligibility. To receive 3 points under this criterion, 10% of all units must meet the
affordability criteria. To receive 6 points under this criterion, 20% of all units must
meet the affordability criteria.
/3
or 6
Overall District Relevance
15. Relevance to the Midtown Urban Renewal Plan – Documentation of the project’s
impact in relation to the goals and objectives of the Midtown Urban Renewal Plan,
particularly mixed‐use development. Urban design elements will also be considered,
including pedestrian emphasis and quality of design.
/5
16 The investment of public funds in the project results in a leverage ratio of at least /4
Midtown TIF Assistance Part 1 Page 7
10:1 for multifamily, 8:1 for commercial, or 5:1 for family wage jobs.
Total Points /52
APPROVAL (For Official Use Only)
Approval Status:
Date Approved:
Date Letter of Award Sent:
Date Certificate of Completion:
Date of Payment Request:
Midtown TIF Assistance Part 2 Page 8
PART 2
FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE
Project Financial Information
In order for the Midtown Urban Renewal District Board to adequately review applications seeking TIF
assistance, the following information must be submitted with the application. This information will be
used to perform a third‐party financial analysis to determine the project’s anticipated return on
investment (ROI) and reasonableness of developer profit. The goal of the Midtown TIF Assistance
program is to make projects financially feasible. Therefore, projects that demonstrate financial need for
public funding will be given priority.
1. Sources & Uses of Funds
a. Identify the sources of funds used to finance the project. Typical sources include equity, lender
financing, mezzanine financing, other anticipated types of public assistance, and any other types
or methods of financing. Describe the sources of equity and include a term sheet for lender
financing, if available.
b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project
budget must identify the up‐front sources intended to finance the development costs of the
project. If determined, specify the specific line items of the project budget that each source will
finance.
c. Summarize the uses of funds. General categories to be identified include acquisition and related
site costs, hard construction costs, and a breakdown of soft costs.
2. Development Budget
Provide an accurate and detailed development budget for the project that includes a detailed
breakdown of significant line item costs consistent with the sample included in the application packet.
The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs.
Also, identify all line items that are performed by the developer, owner, or related entities.
3. Budget of TIF Eligible Expenses
Identify which of the development budget costs are eligible for reimbursement as allowed by 7‐15‐
4288, MCA.
4. Financial Commitments
Submit commitment letters and/or term sheets from all lenders for proposed debt (such as
construction, mezzanine, permanent, and government financing) and all other financial sources of
the project (such as grants, and tax credits). Commitment letters must clearly specify the nature and
terms of the obligations.
Note: Changes to financial documentation, development budget to timelines after the project has been
submitted and reviewed by the third‐party financial analyst will require a review fee to be paid by the
applicant. The review fee will cover the re‐work required by the analyst. Projects may be charged an
additional $7,500.00 to cover the cost of re‐analysis. All awards are contingent upon staff analysis, board
recommendation and City Commission approval of a projects ability to meet the criteria and an analysis
of the role of public assistance in meeting appropriate fiscal feasibility criteria.