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Home My WebLink About08-20-19 Downtown URD Minutes Downtown Urban Renewal District Board Meeting Minutes August 20, 2019 Attending: Bobby Bear, Cory Lawrence, Marley McKenna, Tony Renslow, Bill Stoddart, Kate Wiggins, Nick Zelver, Jeff Krauss, Chris Naumann, Emily Cope Absent: None Public Comment: None Chris introduced: Emily Cope as the Partnership’s District Manager; Nick Zelver as a new voting board member; Kate Wiggins as a “new” voting board member; and Marley McKenna as a new non-voting board member Minutes ACTION: Cory Lawrence moved to approve the June minutes as presented. Nick Zelver seconded the motion. All voted in favor. Financial Report Chris presented the draft year-end finances as of June 30, 2019. Revised income figures include: $1,849, 204 year-begin balance; $423,573 TIF income; $693,000 to date but estimated $830,000 COB Interlocal Share; $56,050 Entitlement Share; $33,777 earned interest. Updated expense figures: $120,302 for operations; $382,194 for improvements; $155,511 for planning; $433,573 for parking. The Board did not have any questions about the finance report. Executive Director’s Report Technical Assistance Program Update Four planning grants have been awarded in FY19. One grant remains from FY2018 for the Osborne Building. As a reminder, the Planning grants have a $7500 cap and the Façade grants are capped at $3000. Date Project Name Project Address Applicant Professional Type Value 4/16/2018 Osborne Building 233 East Main Strreet Casey Durham Locati Arch Plan/Façade 10,500$ Total 10,500$ Date Project Name Project Address Applicant Professional Type Value 8/20/2018 BSWB Building 106 East Babcock Randy Scully Intrinsik Planning 7,500$ 8/23/2018 Garage Restaurant 451 East Main Pete Strom Intrinsik Planning 7,500$ 8/28/2018 240 East Mend 240 East Mendenhall Stacy Hooks Intrinsik Planning 7,500$ 4/24/2019 I-Ho's Korean Restaurant 323 West Main Derik Pomeroy Architecture 118 Planning 7,500$ Total 30,000$ Technical Assistance Program FY2018 Report Technical Assistance Program FY2019 Report Other Financial Program Updates Streetscape Grants-None open Life-Safety Grants-None open Hotel Incentive Grant-Etha Hotel—Pending Fiber Connectivity Grant-Nova Café—Completed, ERA Landmark—Pending Building Project Updates Armory Hotel Substantial completion scheduled for December 31, 2019. Black & Olive Apartments under construction to be completed Fall 2019 Osborne Building (233 East Main) 4-story mixed use building with 2 floors of restaurant use and 2 floors of offices. Construction began October 2018. “OSM” Building 5 story mixed use building proposed on southwest corner of Babcock and Wallace—construction began Spring 2019 BG Mill Building 5 story mixed use building proposed on southwest corner of Mendenhall and Broadway—final site plan submitted One 11 Lofts (corner of North Willson and West Lamme) 50-unit apartment building with 53 parking spaces. Construction began spring 2019. Merin Condos (on North Bozeman across from Dave’s Sushi) 28 units of owner- occupied housing. In Final Site Plan review. Village Downtown 84 new residential loft units have been approved and 30 new residential condo units are under review by the City AC Hotel (5 East Mendenhall) 6 story 140 room full-service hotel. Currently in development review. East End Flats (240 East Mendenhall) 6-story mixed use project. Currently in development review. Veranda Apartments (111 South Church) proposed new construction of 6 units. New Businesses Update • Good Food Company—229 East Main—restaurant to open in Osborne Building • Blackbird Kitchen—140 East Main—former Chocolate Moose—expansion • Chocolate Moose—25 South Willson—relocated—OPEN • TBD—2 East Main—former Miller’s Jewelry location • TBD—23 West Main—formerly Bent Lens • TBD—17 East Main—formerly Sun Dog Gallery • TBD—544 East Main—formerly Heeb’s Planning Updates In this section, I will provide update about several ongoing City planning processes. Community Plan (City Growth Policy) Update Consultants: Logan Simpson (Ft. Collins) Update: Draft Plan is to be publicly released in September 2019. https://www.bozeman.net/city-projects/bozeman-community-plan-update NCOD and Design Guidelines Update Consultants: Bendon Adams Consulting (Aspen, CO) and Orion Planning (Missoula, MT) Update: Final Document was released in August 2019. https://www.bozeman.net/city-projects/ncod-review Housing Needs Assessment and Action Plan Consultants: Navigate, LLC Workforce Housing Solutions Update: the draft Community Housing action plan is being drafted. There is a public workshop for community input August 20 (11am–1pm & 5pm–7pm). https://www.bozeman.net/city-projects/community-housing-action-plan https://www.bozeman.net/city-projects/community-housing-needs-assessment FEMA Floodplain Mapping Update Next Steps: • The final draft map will be released in 2nd quarter of 2020. • The City then has 180 days to amend its floodplain regulations to incorporate the new maps. • The new regulatory floodplain map would become effective by the beginning of 2021. North Black Pocket Park Construction of the North Black Pocket Park in southwest corner of Black Lot public parking lot begins this week. The project will include three elements: create new pocket park; relocate Black Lot egress; install new streetscape including sidewalk, streetlamps, and street trees. AV Construction will begin work the week of August 19th with plans to complete the project in October. Below is a basic construction schedule: • 8/19—8/21 Mobilization and site preparations • 8/21—9/11 Demo and excavation • 9/3—10/7 Concrete and electrical installation • 10/8—10/19 Landscaping installation Discussion and Decision Items Downtown Plan (DBIP) Updates Chris presented an overview of the DBIP projects funded in the FY2020 URD work plan and budget (included by below). The projects include transportation planning, code amendments, design guidelines, and general implementation. Chris said he would periodically present an updated version as the projects progress. TIF Funding Plan Chris presented an estimate of the URD’s TIF bonding capacity based on a spreadsheet provided by the City of Bozeman Finance Department (included below). In summary, a City Interlocal Share of $850,000, a coverage ratio of 125%, an interest rate of 5%, and a term of 11 years, the bond proceeds would be approximately $5.7 million. For context, Chris reminded the board that the existing $6.5 million garage bond will cost the URD $10.8 million when you include the $4.3 million of interest paid by 2032. Chris challenged the board to start thinking about how best to invest TIF funds considering the district will expire in 12 years and the primary objectives of the 2019 Downtown Plan. The board agreed there would be more demands for funding than capacity which will require making some difficult decisions. Meeting was adjourned at 1:10 pm 2019 Downtown Bozeman Improvement Plan URD Funded Projects as of August 20, 2019 Transportation Planning Scope of Work drafted with Sanderson Stewart (URD Term Contract lead) to advance the transportation recommendations in the 2019 DBIP. Next steps are to ask City and MDT engineering staff to review and comment on the draft SOW. Further analysis will include: • 3-lane Main Street with diagonal parking • 2-way cycle track on Babcock • ‘Super’ sharrow on Mendenhall • Traffic signals at Black-Mendenhall and Black-Babcock • Black bicycle corridor improvements • Pedestrian intersection improvements at Babcock-Wallace, Babcock-Grand, and Mendenhall-Grand Code Amendments Contracted with Susan Riggs, Groundprint, to draft the formal code language necessary to advance the UDC revisions recommended in the 2019 DBIP. The Community Development Department is planning to advance a host of proposed UDC revisions to the Planning Board in September and then the City Commission in October. Design Guidelines Meeting with Marty Matsen, Community Development Director, and Phil Gonzalez, Historic Preservation Manager, on September 4th to discuss how best to proceed and advance both the NCOD and DBIP recommendations. General Implementation Renewed mySidewalk contract for State of Downtown demographic dashboard with a few improvements and referencing the 2019 DBIP. The City Economic Development Department contributed $1000 to renew the contract. Estimate of Downtown TIF Bonding CapacityAFTER REAPPRAISAL - ESTIMATE 20% Reduction in Taxable Values, no New Constructioncalculated 2-15-18ALLCity & SD7City & CoCity OnlyEstimate for FY18Total Taxable Value5,098,612.00 Base Taxable Value(1,328,695.00) Incremental Taxable Value3,769,917.00 TIF Mill Levy - estimate float700.062Dollar Value of TIF2,639,176$ Less: Debt Payment(425,000)$ Uncommitted Dollars Available County Share430,594$ -$ 430,594$ -$ City Share815,471$ 815,471$ 815,471$ 815,471$ SD #7 Share968,111$ 968,111$ -$ -$ Total Uncommitted Dollars Available2,214,176$ 1,783,582$ 1,246,065$ 815,471$ Bonding Estimates Coverage Requirement 130%130%130%130% Amount for Annual Debt Service 1,703,212$ 1,371,986$ 958,512$ 627,285$ Interest Rate of Bonds5.00%5.00%5.00%5.00% Term in Years (final pmt Tax Year 2032)12121212 ESTIMATED PRINCIPAL ABLE TO BE ISSUED15,230,961$ 12,268,974$ 8,571,483$ 5,609,495$ ALLCity & SDCity & CoCity Only5.00%115,700,241$ City Only2019 UNOFFICIAL ESTIMATES850,000$ 850,000$ 125%680,000$ City of Bozeman 2007 2019 Downtown Parking Garage With Final Bond Sizing Actual Realized & Final Buy Sell Sources & Uses Sources of Funds: Federal Award - Direct 1,901,339 1,901,339 Federal Award - GANS 2,123,320 2,123,320 TIF Bonds 6,280,896 6,280,896 TIF Cash 230,000 230,000 TIF Debt Service Interest 4,317,196 Investment Earnings 75,000 75,000 Sale of Commercial Space 1,290,842 1,290,842 11,901,397$ 16,218,593$ Uses of Funds: Construction - Phase I 9,266,046 9,266,046 Construction - Phase II 1,297,710 1,297,710 Construction Services - Arch. & Inspect 190,000 190,000 Costs of Issuance of the Bonds 174,255 174,255 Debt Service Reserve Fund 426,383 426,383 Debt Service Intereste Payments 4,317,196 Equipment (& Interior Painting) ***386,000 386,000 Commercial Space Closing Costs & Appraisal 15,000 15,000 Buildout of Public Restroom Space (200/sq ft)89,600 89,600 Painting costs 20% over our $100k Estimate 20,000 20,000 Building Signage 30,000 30,000 11,894,994$ 16,212,190$ Cost per Space (435 spaces)27,344.81$ 37,269.40$ TIF Expenses/Investments 6,510,896$ 10,828,092$ NOTE: "2019" column reflective of total costs including interest upon debt retirement in 2032