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Home My WebLink About09-24-19 Downtown URD Minutes Downtown Urban Renewal District Board Meeting Minutes September 24, 2019 Attending: Cory Lawrence, Marley McKenna, Tony Renslow, Bill Stoddart, Nick Zelver, Chris Naumann, Emily Cope Absent: Bobby Bear, Kate Wiggins, Public Comment: None Minutes ACTION: Tony Renslow moved to approve the August minutes as presented. Cory Lawrence seconded the motion. All voted in favor. Financial Report Chris presented the first formal finance report for Fiscal Year 2020. He noted that the starting balance is still estimated as $2.1 million pending the final year-end revenues for FY19. He highlighted six minor expenditures totaling just shy of $8,000. The board did not have any financial questions. 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 $3000. Other Financial Program Updates Streetscape Grants: None Hotel Incentive Grant: Armory Hotel-Pending Life-Safety Grants: None Fiber Connectivity Grant: ERA Landmark-Pending Date Project Name Project Address Applicant Professional Type Value 4/16/2018 Osborne Building 233 East Main Strreet Casey Durham Locati Arch Plan/Façade 10,500$ 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 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 C. Moose—expansion under construction • Zsa Zsa’s—23 West Main—formerly Bent Lens • TBD—23 West Main—formerly Stix • TBD—2 East Main—former Miller’s Jewelry location—tenant improvements • 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 Community Housing action plan is being drafted. https://www.bozeman.net/city-projects/community-housing-action-plan https://www.bozeman.net/city-projects/community-housing-needs-assessment FEMA Floodplain Map 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 is making significant progress. The project includes three elements: new pocket park; relocated Black Lot egress; and new streetscape including sidewalk, streetlamps, and trees. AV Construction began work the week of August 19th. 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 Project Management Course I am taking a project management course at MSU…8 x 2-hour sessions on Tuesday nights. “Project Management Theory and Practice: Understand the basics of sequential project management processes, tools, and techniques. In this introductory course, you will learn valuable waterfall and agile project management methodologies and leave with the skills and techniques required to be a successful project manager. You will benefit from the instructors combined 50+ years of experience across 10 industries! We will examine real world examples that connect project management theories into actions, paired with tried- and-true management templates.” Instructors: • Lindsey Tollefson, Program Manager at Ascent Vision Technologies • Jess Short, Director of Program Management for SaaS Compliance at Oracle • Lisa Armitage, Process Improvement and Efficiencies Consultant Discussion and Decision Items Residential Incentive Program Chris presented the proposed revisions to the grant program as recommended by the 2019 Downtown Bozeman Improvement Plan. The new grant would provide a 50% reimbursement of the impact fees associated with the creation of new “studio” and/or “one-bedroom” housing units. The maximum grant amount for this category would be $50,000. For new units meeting the defined criteria as “affordable” would be reimbursed 50% of the impact fees with a maximum award of $100,000. The definitions for “studio” and “one-bedroom” will be based upon the standards of the International Building Code. To qualify as “affordable” the units would have to be deed-restricted to certain AMI price or be owned by an accredited affordable housing trust. The board asked if the $50,000 and $100,000 grant maximums would be enough incentive. Chris said he would ask some developers for the impact fees paid on their projects including NEBO, Black Olive, and Hawthorne Place. This would provide some examples of the impact fees paid per residential units. Since these awards would be more than double the dollar amount of the other URD grants, Chris asked if the board want to have approval authority over these grants rather than them being approved administratively. Chris said he would send the board the complete draft grant document for closer review. He also said he would consult with Susan Riggs at Groundprint about their questions. The board agreed to consider the proposed revisions at the October board meeting. Certified TIF Values Chris presented a spreadsheet showing the growth of the taxable and increment values of Bozeman three largest URDs for 2017, 2018, and 2019. He pointed out that the Downtown URD’s taxable value increased 33% from $5.49 million to $7.32 million while the increment value increased 44% from $4.16 million to $5.99 million since last year. TIF Funding Plan The board continued the discussion about the reality that over the next decade there will be more demands for TIF funding than capacity. The group agreed that it would be good to review some other financial projections in addition to the bonding capacity analysis. The first requested projections would be annual cash flow over the next 10 years and the other a cost estimate of the recommended 2019 Downtown Improvement Plan projects. Chris said he will begin working on the requested projections. Meeting was adjourned at 1:10 pm URD Certified Taxable ValuesURDBase ValueTaxable ValueIncrement ValueTaxable Value%Increment Value%Taxable Value%Increment Value%Downtown1,328,695$ 5,098,612$ 3,769,917$ 5,488,691$ 8%4,159,996$ 10%7,316,105$ 33%5,987,410$ 44%N7th Midtown3,507,723$ 4,456,439$ 948,716$ 4,490,297$ 1%982,574$ 4%5,221,878$ 16%1,714,155$ 74%Northeast423,054$ 646,819$ 223,765$ 652,101$ 1%229,047$ 2%880,328$ 35%457,274$ 100%201720182019