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HomeMy WebLinkAbout9Ten MURD TIF Request REVISED 12.2019BOZEMAN MIDTOWN TIF ASSISTANCE REQUEST MAY 2019 Revised December 2019 9TEN mixed use 802-910 North 8th Avenue Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Project Summary The 9TEN mixed use project site is located west of the North 7th Avenue U -Haul and southwest of Gallatin Valley Furniture. The project site is vacant and is generally bound by North 8th Avenue, Aspen and Juniper Streets. This infill project targets a best use scenario for the site by delivering higher density, smart-growth development with workforce housing near the core of Midtown. This project will provide much needed housing in a central location and will foster desirable, walkable urban living, especially as Midtown continues to evolve. Furthermore, this project will provide tenant amenities not common to most rental apartments in the area. The project is seeking TIF assistance and consists of two buildings to be constructed in a single phase. A concept review application for this project was submitted to the City of Bozeman Office of Community Development on May 7th. At full build out the site will include two buildings totaling 120,760 sf and off-street parking. Building 1 is located on the north end of the site and consists entirely of residential units. Building 2 is located on the south end and consists of a mix of residential units on the upper floors and ground floor commercial space. The project will also provide open space and tenant amenities on site. The commercial spaces will front onto North 8th Avenue and Aspen Street, providing an active and engaging streetscape. The property abuts existing rights-of-way along Aspen Street, Eighth Avenue and a 20’ wide alley. However, there are currently no completed streets and limited utility infrastructure at this location. This project proposes to collaborate with the City of Bozeman to complete the infrastructure adjacent to this property . Anticipated improvements include new infrastructure at North 8th Avenue between Aspen and Juniper Streets, and completion/update of infrastructure along Aspen and Juniper Streets from North 7th to North 8th. . This includes all necessary curb and gutter, sidewalks, water line extensions and stormwater infrastructure needed at these locations. Additionally, it is anticipated that the existing sewer line that runs in the alley to the east will need to be re-routed to some extent. It is anticipated the project would incur the burden of these costs initially, with eventual reimbursement via TIF Assistance Funds. With necessary approvals, construction of streets and infrastructure will begin late Winter 2020 with building construction beginning in Summer 2020, and a target completion date in late Summer 2021. Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PROPERTY INFORMATION • • • • • • APPLICANT INFORMATION • • • • • • COMPANY PROFILE • • • • • • PROJECT INFO & DETAIL • • • • • • CRITERIA FOR TIF ASSISTANCE • • • • • • PROJECT NARRATIVE • • • • • • MAPS, EXHIBITS, PLANS PART 1 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Property Address: 802-910 North 8th Avenue Legal Description: Lots 13-18 & south 35 feet of Lot 12, Block 12 of Durston’s 2nd Subdivision Property Owner 816 N 8th, LLC & Developer: Geoff Anderson 203.376.0746 geoffreympanderson@gmail.com Project Intrinsik Architecture, Inc Representative: Attn: Scott Freimuth 406.582.8988 PROPERTY & APPLICANT INFO Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Geoff Anderson 12-20-2019 SAME 9TEN mixed use Bozeman Midtown TIF Assistance Request Business Location: The project site is currently a vacant, undeveloped lot at 802-910 North 8th Avenue Year Business Established: 2018 (816 N 8th LLC) Type of Business 816 N 8th LLC is a development company Outline Business Plan: (Please note these are the best estimates and projections at this time). COMPANY PROFILE GROSS SALES Gross Condominium Sales (min. 20% units sold to individuals 80% AMI) $24,827,813 Gross Commercial Shell Space Sales $700,000 TOTAL Gross Sale Revenue $25,527,813 TAX REVENUE Annual Tax Generation $216,986 TIF FUNDING Eligible TIF Funding Requested $1,829,578 PAYBACK PERIOD Estimated TIF Payback timeline 8.4 Years Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request SOURCES & USES OF FUNDS The 9TEN project will use and allocate funds and resources as outlined below. USE of FUNDS LAND (fair market value) $ 1,147,600 SOFT COSTS (Planning, Arch, Engineering, Entitlements) 796,422 CONSTRCUTION COSTS $20,143,245 HARD COST CONTINGENCY $1,991,055 IMPACT FESS $ 702,900 PERMIT FEES $ 30,000 MISC (Title, Recording, Insurance) $100,000 FINANCE COSTS (Origination, Lender Legal, Appraisal) $ 225,384 LOAN INTEREST $1,425,973 NMTC (New Market Tax Credits) COSTS $2,000,000 DEVELOPER FEE $2,832,988 TOTAL $31,395,567 SOURCE of FUNDS GROSS NMTC Equity $6,630,000 SOURCE LENDER PROVIDING NMTC $13,370,000 DIRECT LOAN $11,395,567 TOTAL $31,395,567 9TEN mixed use Bozeman Midtown TIF Assistance Request Project Information: 9TEN is a mixed-use development consisting of two buildings: one an exclusively residential building with 52 units (Bldg 1) and a second mixed-use with commercial & 45 multi-household residential units on the upper levels (Bldg 2). Property Manager: North Coast Companies General Contractor: TBD Project Intrinsik Architecture, Inc Manager: Attn: Scott Freimuth 406.582.8988 sfreimuth@intrinsikarchitecture.com Property Status The property is currently vacant, undeveloped land. Type of TIF Assistance Sought Assistance with Public Infrastructure Costs, Impact Fees Value of TIF Assistance Sought $1,829,578 PROJECT INFO & DETAILS Project Name: 9TEN mixed use The subject site (1.62 acres) is vacant land on the SW portion of the block between N Seventh & N Eighth Avenues and Juniper & Aspen Streets. The site is adjacent to the current U-Haul store and Gallatin Valley Furniture. The site is currently vacant and lacks adjacent infrastructure. This project seeks to complete the block with streets and infrastructure in addition to new development. Site: Estimated Occupancy: Spring 2022 Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request $31,162,872 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request CRITERIA FOR TIF ASSISTANCE OVERALL DISTRICT RELEVANCE 1. This project touches on the major goals and objectives identified in the Midtown Urban Renewal Plan: Specifically, 9TEN will promote economic development; improve opportunities for multimodal transportation; promote unified, human scale urban design and support compatible urban density mixed land uses. PROMOTE ECONOMIC DEVELOPMENT 2. Tax Generation: The two buildings (120,760 SF) and site improvements, at full build out, will significantly increase the tax base for the site. Further, the addition of this development will add commercial space and increase the property values for adjacent sites, thus increasing the overall tax generation for the area. 3. Elimination of Blight: Currently the site is vacant, undeveloped land and the adjacent rights-of-way (ROW) are incomplete. Adjacent lots and ROW (U-Haul, Cat’s Paw) contain infrastructure that is not up to current City standards (lack sidewalks, curb and gutter, standard access points, etc.). The development of this site will complete the City block generally encompassed by Juniper & Aspen Streets and 7th & 8th Avenues. Standard sidewalks and boulevard tree plantings will be installed as required. Drive access points to the adjacent businesses are anticipated to be improved and brought into compliance, creating more complete and pedestrian friendly streetscapes. 4. Employment Generation: The project development itself will create jobs in the form of design and construction opportunities for local businesses. Upon final build out, the commercial space, totaling 5/5 4/4 4/4 3/3 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request CRITERIA FOR TIF ASSISTANCE 3,500 sf, will generate office or retail based jobs. Additionally, property management and maintenance positions will be required for the post- occupancy operations and upkeep. IMPROVE MULTI-MODAL TRANSPORTATION 5. Facilitate Public Health & Mobility: Given its location near the Midtown core, proximity to transit and downtown, this site offer multiple options for walkability and cyclists alike. The improvements the project will bring to the block will provide ADA standard accessibility and extend the streetscape along the east side of 7th avenue and allow visitors and residents of the site to easily access the North 7th corridor. 6. Reduces Resource Demand: The Blue Line bus stop is only a few blocks away (less than .15 miles) and allows riders to access the transfer station downtown in under 10 minutes and then connect to the Orange and Red lines headed for other destinations in the city. Expanded future bus service is contemplated in the pending Downtown Bozeman Improvement Plan that would connect several central hubs and parking facilities. With these planned densities, ride sharing opportunities are probable. 7. Promotes Active Transportation: It’s close proximity to downtown and area amenities make it a walkable and bikeable destination. This project site development will includes ample bicycle parking. IMPROVE, MAINTAIN and SUPPORT INNOVATION IN INFRASTRUCTURE 8. Infrastructure Improvements: The project proposes to improve sidewalks, completing the block and installing boulevard trees where required. 1/1 1/1 2/2 1/2 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request CRITERIA FOR TIF ASSISTANCE PROMOTE UNIFIED HUMAN SCALE URBAN DESIGN 9. Street Frontage: Building 2 will adhere to Storefront Block standards along 8th and Aspen, promoting pedestrian activity with 12’ wide sidewalks, weather protection, and expansive storefront glazing. The overall site configuration highlights the pedestrian oriented street façade and prioritizes pedestrian access. 10. Reduced Vehicular Access: There are only two main vehicular access points via the alley at the rear of the site and a central drive to be created between the two buildings. This moves vehicular access to the rear of the buildings and away from the Pedestrian circulation on Aspen Street and Eighth Avenue. 11. Enhances 7th Ave Entry Corridor: The proposed project does not front directly onto North 7th Avenue. However, the associated improvements will improve pedestrian access along Aspen Street, improve the vehicular access points to properties on Aspen Street and provide an infill project on a highly visible block on North 7th Avenue. Existing and future businesses along North 7th will benefit from the residents and commercial spaces created. 12. Enhances Pedestrian Experience: This project will adhere to Storefront and landscape Block standards along 8th and Aspen, promoting pedestrian activity with 12’ wide sidewalks, weather protection, and expansive storefront glazing, and street trees. Furthermore, landscaped and urban plazas are placed directly adjacent to the sidewalks. 13. Quality of Development: The design intent is to meet or exceed the Bozeman UDC requirements. 2/2 2/2 2/3 3/3 2/2 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request SUPPORT COMPATIBLE URBAN DESNITY MIXED LAND USES 14. Increases Housing Units: This project proposes 52 units in Building One and 45 units Building two, for a total of 97 dwelling units of workforce housing. This will include a mix of Studio, 1, 2 & 3 bedroom units. 15. Mixed Use: Building two includes 3,500 sf of commercial on the ground floor along with 45 multi-household dwelling units on the subsequent three floors. The project as a hole places multiple households in the heart of the Midtown district, walkable to multiple commercial and retail destinations, and encouraging future development. 16. Shared Parking: The project currently does not have a shared parking component. It will be providing, at a minimum, the required parking B- 2M zoning requirements; as opposed to providing no or limited parking as currently allowed in the Midtown District. The applicant may explore a shared parking agreement with adjacent properties in the future. 4/4 3/4 1/2 TOTAL POINTS: 40/44 Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PROJECT NARRATIVE Intro This project consists of a 1.62 acre site zoned B-2M located along North 8th Avenue between Aspen and Juniper Streets. The 816 North 8th Avenue project consists of two 4-story buildings and related site improvements. Building 1 is exclusively residential and Building 2 provides ground floor commercial and parking, and multi-household residential. Building 1 totals 58,880 gross sf and includes 52 dwelling units and 2,350 sf of tenant amenity space. Building 2 totals 61,880 gross sf and includes 45 dwelling units, 3,500 sf of ground floor commercial, and ground level indoor parking. This application seeks TIF assistance for Impact fees for both buildings, as well as costs to build out non-existent street and utility infrastructure adjacent to the property. A concept review application for this project was submitted to the City of Bozeman Office of Community Development on May 7, 2019. Building Design Upon full build out, the site will include off-street parking, a residential building, and a building with a mix of residential units and ground floor commercial space, as well as open space and tenant amenities. The commercial space(s) will front onto North 8th Avenue, providing an active and engaging storefront for pedestrians. The commercial space will be built as shell space with the flexibility to accommodate a single large or several smaller commercial tenants. The upper floors will house the dwelling units, which at this time are anticipated to be a mix of Studio, 1, 2 & 3 bedroom units. Preliminarily, this project will include 45 units on the upper 3 levels of Building 2 and 52 units in Building 1. Open space for tenants will be provided by a mix of private balconies and in-building amenity space. Building 1 will include the fourth floor roof- top amenity space for tenants. Additionally, Building 1 will house ground level lobbies with workstations and lounge space, and additional tenant amenity areas. In addition to the recreational & amenity areas, indoor vehicle parking, bike parking, and storage for residents will be located on the ground level of Building 2. Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PROJECT NARRATIVE Anticipated Infrastructure improvements The public right-of-way abuts the property on all sides, but the streets are not complete and the utility infrastructure at these locations is minimal. This project proposes to collaborate with the City of Bozeman to complete the infrastructure adjacent to this property. Anticipated improvements include paving, curbs, gutter and public sidewalks of North 8th Avenue between Aspen and Juniper Streets. Additional improvements along Aspen and Juniper Streets from North 7th to North 8th are anticipated. This includes the water, sewer, and stormwater infrastructure needed at these locations. Additionally, it is anticipated that the existing sewer line that runs in the alley to the east will need to be re-routed to some extent. It is anticipated the project will incur the burden of these costs with some sort of payback program with the city and through the TIF assistance program. Access and Parking Both Building 1 and 2 will front on North 8th Avenue, where the primary residential entrance and commercial storefront will be located. A central drive access in between the two buildings. Surface parking will flank the entire length of the east side of the property, accessible via the Alley, as well as along the central drive. The Alley will be accessed by the Aspen street to the south as well as a west entrance to the north of the property. Additionally, indoor garage parking will be provided on the ground level of the Building 2. Schedule With necessary approvals, construction of streets and infrastructure will begin late spring 2020 with building construction beginning in fall 2020, and a target completion date in spring 2022. Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request MAPS, EXHIBITS, PLANS 9TEN mixed use Bozeman Midtown TIF Assistance Request SITE SURVEY 9TEN mixed use Bozeman Midtown TIF Assistance Request SITE DIAGRAM & VICINITY Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Aerial Perspective looking East Aerial Perspective Looking West PERSPECTIVE IMAGES Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PERSPECTIVE IMAGES Perspective looking Northeast Perspective Looking Northwest Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PERSPECTIVE IMAGES Perspective looking Southwest Perspective Looking Northwest Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request SITE PLAN CONCEPT N Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request FLOOR PLANS BUILDING 1 LEVELS 2,3 FLOOR PLAN BUILDING 1 LEVEL 1 FLOOR PLAN N Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request FLOOR PLANS BUILDING 1 LEVEL 4 FLOOR PLAN N Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request FLOOR PLANS BUILDING 1 LEVEL 1 FLOOR PLAN BUILDING 2 LEVELS 2-4 FLOOR PLAN N Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PART 2 PROJECT TIMELINE • • • • • • PUBLIC BENEFITS • • • • • • PROJECT FINANCIAL INFORMATION Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request Project Milestones Development Concept Review Submittal May 7, 2019 Preliminary TIF request approval (MURD Board) Oct. 3, 2019 Final TIF request approval (MURD Board) Jan. 9, 2020 Final TIF request approval (City Commission) Feb. 24, 2020 Infrastructure entitlements submittal May 1, 2020 Development entitlements submittal (Site Plan) June 1, 2020 Start of Infrastructure Construction July 1, 2020 Development Building Permit Submittal Oct. 1, 2020 Start of Development construction Dec. 1, 2020 Est. completion of infrastructure construction Nov. 15,2020 Est. completion of development construction (occupancy) June 1, 2022 • • • • • • Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request PUBLIC BENEFIT Re-occupancy of Vacant Land This lot has historically been vacant, so this isn’t re-occupancy in the true sense. However, the addition of this project will complete the block making the area more vibrant, desirable and walkable. Project infrastructure will contribute to “completing” Aspen and Juniper Streets. Additionally, Aspen Street is a designated “Storefront” block frontage, and the streetscape will be reflective of that with wider sidewalks and an activated streetscape. Elimination of Blight Currently the parking lots, sidewalks and curbs in and around the site are not up to city standards and are unsafe. As part of this project and site development, infrastructure will contribute to complete and improve conditions on Aspen & Juniper Streets. Rather than unsightly, vanishing streets to nowhere, the block will be completed and built to City Engineering Standards. This means pedestrian friendly routes, sidewalks and boulevard tree plantings. Clearly defined ground level spaces will surround the new buildings providing office and retails spaces along with a mixture of multi-household workforce living units. Creation of New Office/Retail Spaces Building 2 includes 3,500 sf of ground level commercial space. The use(s) is TBD, but it will be well suited for office or retail space with a highly visible location in the Midtown corridor. Urban Living Options This project proposes a variety of dwelling types including Studio, 1, 2 & 3-bedroom units. The design of the building and layout of dwelling units will maximize natural Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request light coupled with surrounding views of the mountains encompassing the valley. This site is located in the heart of Midtown and residents will enjoy many options to access local eateries, music venues, services, bus lines, schools and Downtown. Health and Mobility Site development will modernize this block and area of the Midtown Corridor. It is close to the Blue Line and easily accessible for pedestrians, cyclists, bus riders and drivers alike. The site will include accessible facilities and a green space for passive recreation and enjoyment. Its proximity to other Midtown Amenities and the urban sidewalk network make it an easy destination to access. Site improvements will also create a clean, safe and inviting location within the district. Increased Tax Revenue This project development will translate into new property tax revenues that contribute to future Midtown projects. A breakdown of the anticipated tax projections are as follows: Projected Taxes: $ 216,986 Payback to TIF (8.4 years): $1,829,578 New Jobs and Local Sales The project development itself will create jobs in the form of design and construction opportunities for local businesses. Upon final build out, the commercial space, totaling 3,500 sf, will generate office or retail based jobs. Additionally, property management and maintenance positions will be required for the post-occupancy operations and upkeep. PUBLIC BENEFIT Residential Mixed-Use Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request 9TEN mixed use Bozeman Midtown TIF Assistance Request Concept Review: 816 North 8th Residential Urban Infill 9TEN mixed use Bozeman Midtown TIF Assistance Request TIF ELIGIBLE EXPENSES Description Amount CITY of BOZEMAN: Impact Fees $702,900 Public R.O.W. Infrastructure Upgrades ( Juniper, Aspen & 8th ) $1,126,679.87 TOTAL $1,829,578