HomeMy WebLinkAboutResolution 5126 Approving Midtown Infrastructure Improvements as an Urban Renewal Project ° BO?
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RESOLUTION NO. 5126
RESOLUTION APPROVING CERTAIN INFRASTRUCTURE IMPROVEMENTS IN
THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN
RENEWAL PROJECT, MAKING FINDINGS WITH RESPECT THERETO AND
APPROVING THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL REVENUE
BONDS TO PAY COSTS THEREOF; PRELIMINARILY AUTHORIZING THE
ISSUANCE AND PRIVATE NEGOTIATED SALE OF BONDS AND AUTHORIZING
THE PROCESS FOR SELECTING A PURCHASER THEREOF
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
Resolution 5126,Approving a Project in the Midtoivn URD, Known as Midtown Infrastructure Improvements
Urban Renewal District(the"District")as an urban renewal district and has approved the Bozeman
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 January 13, 2020, the Commission adopted Resolution No. 5125, calling a
public hearing to approve the design, engineering and construction of various public infrastructure
improvements within the District, including (i) development of Aspen Street as a"festival"street,
including sidewalk, street light and curb and gutter improvements,pedestrian crossing, street trees
and stormwater infrastructure improvements to Aspen Street between North 5th Avenue and North
7th Avenue; (ii) installation of angle parking infrastructure along the western edge of the Westlake
BMX Park; (iii) street, sidewalk, street light and curb and gutter improvements, pedestrian
crossing, street trees and stormwater infrastructure improvements to North 71h Avenue between
Durston Road and Mendenhall Street; and (iv) construction of a multi-use path, allowing
pedestrian and bike connectivity to the Westlake BMX Park, the Aspen Street improvements
described above and a new mixed-use development in the District known as the Aspen Crossing
Project (such public infrastructure improvements, collectively, the "Project") and the expenditure
of tax increment revenues or the issuance of tax increment revenue bonds to pay all or a portion of
the costs of the Project. On February 3, 2020, the City scheduled a duly noticed public hearing
that was continued to February 10, 2020. On the February 10, 2020 the 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.
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Resolution 5126,Approving a Project in the Midtown URD, Known as Midtown Infrastructure Improvements
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.
The Project is contemplated by and within the scope of the Plan, and is eligible for tax increment
financing under the Act.
Section 3
Findings.
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. 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
Authorization; Sale of Bonds.
Bonds. Pursuant to the approval and findings in Sections 2 and 3 hereof,
4.01. The pp g , it is
hereby determined that it is in the best interests of the City to offer for sale and issue its Tax
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Resolution 5126,Approving a Project in the Midtown ORA Known as Midtown Infrastructure Improvements
Increment Urban Renewal Revenue Bonds (Bozeman Midtown Urban Renewal District), Series
2020 (the "Bonds"), in the maximum aggregate principal amount of$5,500,000, for the purpose
of paying costs of the Project and, if necessary or desirable, paying costs associated with the sale
and issuance of the Bonds.
4.02. Negotiated Sale. Pursuant to Montana Code Annotated, Section 7-15-4322, the
City may sell the Bonds at a public or a private negotiated sale as the governing body shall
determine. The Commission determines it is in the best interest of the City to sell the Bonds at a
private negotiated sale and desires to contract with a placement agent to privately place the Bonds
with a bank or banks. The Interim City Manager and City Finance Director or their designees
(including, without limitation, the Director of Economic Development) are authorized to select a
placement agent with respect to the Bonds (the"Placement Agent").
4.03. Pricing and Terms. The Bonds are authorized to be sold to the purchaser of the
Bonds(the"Purchaser")that provides the City the most favorable interest rate and other terms and
conditions, as determined in the sole discretion of the City, in consultation with the Placement
Agent. The Interim City Manager and City Finance Director are hereby authorized to provide or
make available, directly or through the Placement Agent, the terms and conditions relating to the
sale of the Bonds to banks and other financial institutions and solicit proposals to purchase the
Bonds. The City may, in its sole discretion, in consultation with the Placement Agent, accept a
proposal to purchase the Bonds, negotiate further with any proposer, or reject any and all such
proposals.
All costs of issuing the Bonds(including,without limitation,the fees and expenses of Bond
Counsel) shall be paid by the City as part of the fmancing, from proceeds of the Bonds or other
available sources.
4.04. Bond Purchase Agreement. The Interim City Manager or his designee (including,
without limitation, the Director of Economic Development) is hereby authorized and directed to
approve the final principal amount of the Bonds, dated date, term, whether all principal of the
Bonds is advanced at closing or in increments over time,payment dates and installment amounts,
interest rates, and redemption provisions of the Bonds, subject to the limitations contained in the
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Resolution 5126,Approving a Project in the Midtown ORD,Known as Midtown Infrastructure Improvements
preceding paragraphs and the Act. Upon approving such terms, the Interim City Manager or his
designee (including, without limitation, the Director of Economic Development) is hereby
authorized and directed to negotiate,approve,execute and deliver to the Purchaser a bond purchase
agreement(the"Bond Purchase Agreement"),containing the agreement of the City to sell, and the
agreement of the Purchaser to purchase,the Bonds on the terms so approved, and containing such
other provisions as the Interim City Manager or his designee shall deem necessary and appropriate.
The execution and delivery of the Bond Purchase Agreement by the Interim City Manager or his
designee shall be conclusive as to the approval of such officer of the terms of the Bonds and the
agreement of the City to sell the Bonds on such terms in accordance with the provisions thereof.
The form of the Bonds and the final terms and conditions thereof shall be prescribed by a
subsequent resolution to be adopted by this Commission.
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Resolution 5126,Approving a Project in the Midtown URD, Known as Midtown Infrastructure Improvements
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman,Montana, at a regular session thereof held on the 1 Oth day of February, 2020.
CHRIS MEHL
Mayor
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ATTEST: ,� O m ,
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MIKE MAAS • "� __ - • ,
City Clerk ``Y '.*18831,•�$,
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APPROVED A TO FORM:
GWUULLIVAN
City Attorney
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Resolution 5126,Approving a Project in the Midtown URD, Known as Midtown Infrastructure Improvements
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. 5126, entitled: "RESOLUTION APPROVING CERTAIN
INFRASTRUCTURE IMPROVEMENTS IN THE BOZEMAN MIDTOWN URBAN
RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT, MAKING FINDINGS
WITH RESPECT THERETO AND APPROVING THE ISSUANCE OF TAX
INCREMENT URBAN RENEWAL REVENUE BONDS TO PAY COSTS THEREOF;
PRELIMINARILY AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED
SALE OF BONDS AND AUTHORIZING THE PROCESS FOR SELECTING A
PURCHASER THEREOF" (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 February 10, 2020, 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: l"l 2 k�l
?e3VV%-41 bit Ct VIAi nulm,,,,.� voted against
the same: 14/a ; abstained from voting
thereon: Igf/ ; or were absent: /Y/14
WITNESS my hand officially this 1Oth day of February,2020.
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MIKE MAAS
City Clerk
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