HomeMy WebLinkAbout06-22-20 City Commission Packet Materials - C15. TO 2 w CDS to Complete Review of Conditions for the ID Pole Area
Commission Memorandum REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Urban Renewal Program Manager Brit Fontenot, Economic Development Director
SUBJECT: Authorize the City Manager to Sign Task Order with Community
Development Services of Montana (CDS) to Complete a Review of Conditions that Contribute to Blight for the Idaho Pole Area of Bozeman
MEETING DATE: June 22, 2020
AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to Sign the Task Order with CDS.
BACKGROUND: Tax Increment Financing is valuable to tool for assisting with rehabilitation and
redevelopment of areas of the City that meet the statutory definitions of blight as defined
in 7-15-4206, MCA. To consider the creation of an urban renewal area, it is necessary to document the conditions that contribute to statutory blight within the proposed area. The Idaho Pole site is likely eligible for a blight designation as it remains a partially delisted Superfund site. In 2019, the City Commission authorized Staff to submit an application to
the U.S. Environmental Protection Agency (EPA) for their Community-Wide Brownfields Assessment Grant, which was ultimately denied. The Application described the brownfield nature of the site: The IPC [Idaho Pole Company] site, a former wood treating facility,
occupies an area of approximately 60 acres and is bisected by I-90. Within and
immediately south of the IPC lie numerous railroad properties historically
utilized as railroad right-of-way… The East Gallatin River and associated floodway run through the northern section of the IPC site, and form the eastern boundary of CT6. A creek and its associated floodway also run through the
southern section of the IPC site. Wood treating operations began here in 1945
using creosote, which was replaced with PCP in carrier oil in 1952. Wood
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treating operations and infrastructure, dismantled in 1999, were historically
located south of I-90; though soil and groundwater were impacted on both sides
of I-90 as groundwater flow is to the north. The Montana Department of Health and Environmental Sciences (MDHES) discovered an oily discharge in ditches near the Site and near Rocky Creek in 1978. The Site was placed on the National Priority List (NPL) in 1986. Pentachlorophenol (PCP), polycyclic aromatic
hydrocarbons (PAHs), polychlorinated dibenzo-p-dioxins, and polychlorinated
dibenzofurans were identified as contaminants of concern (COC). Subsequent remediation included actions for both soil and groundwater contaminated by the COCs. The soil component included excavation and land treatment of 19,000 cubic yards of soil, which commenced in 1995 and culminated with dismantling of
the land treatment units and on-site treated soil placement in 2002. The soil
component will be delisted from the NPL in March 2019. A groundwater remedy system has been operating since 1997 and was decommissioned in 2018. The EPA indicated delisting the groundwater component from the NPL will follow delisting of the soils. Although significant federal funds have been expended on the
assessment and cleanup at the IPC Superfund site, this prime opportunity location
remains vacant with limited developer interest or clear vision for redevelopment: additional funding is needed for redevelopment planning that the NPL process may not have accounted for. While the site will soon be delisted from the NPL, IPC remains on Bozeman’s priority list: residual environmental issues and a
paucity of utility and roadway infrastructure ensure the site will remain our City’s
heaviest brownfield burden without further action. (Keely Campbell, Ayres Associates, 2019.) Economic Development Staff are working with a development group that has a
transformative vision for this brownfield area in the core of our community. Conditions of blight including the brownfield and infrastructure deficiencies create a substantial, and possibly insurmountable, initial burden for redeveloping the site. It is worth studying the area and documenting blighting conditions as a prerequisite for the Commission to fully consider whether creating an urban renewal district with a tax increment financing
provision would facilitate redevelopment of this site that would not occur, “but for”, the use of tax increment financing. The proposed Task Order with CDS would allow for CDS to complete the blight report and, if appropriate, draft a resolution of necessity for consideration by the City
Commission to consider an urban renewal district to facilitate the redevelopment of this brownfield site.
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FISCAL EFFECTS: The total cost of this professional services agreement is $8,500 payable as a lump sum. Funds designated for contracted professional services in the Economic Development Budget would be utilized for this project.
ATTACHMENTS:
• Task Order 2 with Community Development Services of Montana
• Scope of Work: Review of Conditions that Contribute to Blight in the Idaho Pole
area of Bozeman– Proposed Scope of Work, Task Order 2
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Page 1 of 2
Community Development Service of Montana (CDS) Task Order Number
02
Task Order Number 02
Issued under the authority of Professional Services Agreement with Community Development
Services of Montana for Tax Increment Finance Consulting Services dated January 8, 2016
(“Agreement”).
This Task Order is dated , 201__ between City of Bozeman (City)
and Community Development Services of Montana (Contractor). The parties agree as follows:
The following representatives have been designated for the work performed under this Task
Order:
City: David Fine
Contractor: Janet Cornish, Community Development Services of Montana
SCOPE OF WORK:
Contractor agrees to perform the work for Task Order No. 02 (the “Work”) as detailed in the
attached Scope of Work – Task Order No. 2 for ongoing consulting services incorporated herein
and made a part of the Agreement by this reference.
COMPENSATION:
Community Development Services of Montana’s total billing for the scope of services included
with this task order is payable as lump sum of $8,500. Invoices will be due and payable 30 days
after receipt of the invoice by the City.
The provisions of the Agreement shall govern the Work.
IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have
executed this Task Order:
City of Bozeman Contractor
By: By:
Title: Title:
Date: Date:
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Page 2 of 2
Community Development Service of Montana (CDS) Task Order Number 02
Community Development Services of Montana Scope of Work – Task Order No. 2
Scope of Work:
Community Development Services of Montana will provide ongoing services for the General Scope of
Work.
Rates:
Rates are based on an hourly rate of $100/hour plus associated travel expenses.
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Community Development Services of Montana
954 Caledonia Street, Butte, MT 59701-9002
Memo
PHONE FAX WEB
406-723-7993 406-723-7993 cdsofmontana.com
TO: David Fine, Urban Renewal Program Manager, City of Bozeman Economic
Development Department
FROM: Janet Cornish JC and Lanette Windemaker LW
RE: Review of Conditions that Contribute to Blight in the Idaho Pole area of
Bozeman– Proposed Scope of Work, Task Order 2
Estimated Cost and Timeline
DATE: April 7th, 2020
The City of Bozeman (The City) is interested in addressing conditions that contribute to blight in
the area of Bozeman that includes the Idaho Pole Superfund Site, through the possible creation
of an urban renewal district. The first step in this process is the adoption of a resolution of
necessity by the Bozeman City Council, per §7-15-4210, MCA, finding that the area under
consideration displays at least three conditions of blight as described in §7-15-4206, MCA. This
action enables the adoption of an urban renewal district and provides the rationale for investing
public funds in redevelopment activities.
As provided for in our Professional Services Contract with the City of Bozeman (January 18th,
2018), Community Development Services (CDS) of Montana is proposing to assist the City in the
preparation of the “Review of Conditions that Contribute to Blight” in the area of interest, as a
basis for the possible future adoption of a resolution of necessity. More particularly, CDS of
Montana will undertake the following:
1. Conduct research and phone interviews with staff in order to identify and evaluate the
conditions that contribute to blight within the study area remotely
2. When possible, tour and evaluate the area of interest to determine whether it exhibits
the statutorily defined conditions of blight
a. Evaluate whether the size and extent of the area under consideration is
appropriate
b. Identify the conditions of blight that exist in the area
3. When possible, facilitate a series of meetings to get additional input from City
representatives and members of the public
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4. Prepare the “Review of Conditions that Contribute to Blight” and draft a Resolution of
Necessity
The cost for completing these items will not exceed $8,500.00, based on an hourly rate of $100.00
for 2020 and associated travel. This cost estimate assumes that the City of Bozeman would
reserve space and advertise the public meetings. We would be happy to provide the language
for any public notices that are published and posted. The preparation and adoption of a
Resolution of Necessity is not included in this cost proposal.
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