HomeMy WebLinkAbout07-13-20 City Commission Packet Materials - A2. DT URD FY20 Annual Report and FY21 WP and Budget
CITY COMMISSION MEMORANDUM
TO: Mayor Mehl and City Commission
FROM: Chris Naumann, Executive Director Downtown Bozeman Partnership SUBJECT: Downtown Urban Renewal District Fiscal Year 2020 Annual Report and Fiscal Year 2021 Budget and Work Plan
MEETING DATE: July 13, 2020 AGENDA ITEM TYPE: Action
RECOMMENDATION: Approve the Downtown Urban Renewal District Fiscal Year 2021 Work Plan and Budget as submitted with the requested amendment.
BACKGROUND: The Downtown Bozeman Partnership administers the Downtown Urban Renewal District on behalf of the City of Bozeman. The Downtown Urban Renewal District Board, as appointed by the Mayor and City Commission, directs the programs, projects and
initiatives of the Downtown URD. The 1995 Downtown Urban Renewal Plan and 2019 Downtown Bozeman Improvement Plan, as adopted by the City Commission, guides the programs, projects and initiatives of the Downtown URD. The Downtown URD Board took formal action to approve the FY2021 work plan and
budget at their public board meeting on June 16, 2020. The Downtown URD presents an annual report for last year and proposes the next year’s work plan and budget for approval by the City Commission during public hearings as required by statute.
FISCAL EFFECTS: The Downtown URD anticipates a FY20 year-end balance of $3.10 million and FY21 revenues are projected to be $1.81 million which totals $4.91 million of funding available
for FY21. The proposed FY21 expenditures total $3.17 million with an estimated FY21 year-end balance of $1.74 million.
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UNRESOLVED ISSUE: The Western Transportation Institute is in the process of completing the Main Street
Truck Traffic Study, as an update to the same study conducted back in 2015. There is
approximately $15,000 of payables remaining for completion of the project. The FY21 budget should have included a corresponding line item encumbering the remainder of this project’s funding from FY20. Kristin Donald, City Finance Director, recommends that the City Commission make this
amendment with the support of the URD Board. On June 30, 2020, the board
unanimously supported this amendment. ATTACHMENTS:
The following documentation is included as a single attachment:
• FY20 Downtown URD Annual Report
• FY21 Downtown URD Work Plan
• FY21 Downtown URD Budget Prepared by Chris Naumann, Downtown Bozeman Partnership executive director, and
submitted to City Clerk on July 2, 2020.
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Downtown Urban Renewal District
FY2020 Annual Report
and
FY2021 Work Plan and Budget
In 1995, the City Commission adopted the Urban Renewal Plan for downtown Bozeman which was subsequently amended in 2015. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained.
2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan.
4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation.
7. This Plan is further detailed, refined, prioritized and implemented by the “Downtown Improvement Plan” which outlines specific programs and projects consistent with the Urban Renewal Plan. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles but are only listed once below).
1. Strengthen downtown’s economic vitality
• Provide more, better managed parking; retain public offices and anchor businesses; facilitate commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly 2. Improve the safety, security and health of the district
• Improve traffic flow emphasizing downtown as a destination; improve public works; improve night-time lighting; improve sidewalks; increase police presence; improve alley and parking lot appearance and safety 3. The image of downtown shall be continuously improved
• Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to Bozeman Creek; improve trash removal 4. Downtown’s accessibility shall be improved
• Provide effective public transportation; better accommodate bicycles; reduce reliance on private automobiles 5. “Community Partnership” is fundamental to downtown’s success
• Encourage growth of cultural activities; preserve historic character 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly
9. Cultural activities shall be nurtured and expanded downtown Downtown URD Mission Statement
The Downtown Bozeman Urban Renewal District board (URD) will foster an economically thriving
district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center.
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Downtown Urban Renewal District (URD)
FY2020 Annual Report (July 1, 2019 to June 30, 2020)
All investments over $15,000 are documented
Downtown Parking Garage $ 405,965 invested The URD made the debt service payment of $405,965 on the Bridger Park Garage construction bond. The payment amount was slightly reduced over year’s past thanks to successfully refinancing the bond terms. (Thank you, Kristin Donald)
Public Parking Improvements $ 250,000 invested In FY2017 the URD pledged $1 million of funding ($250,000/year for four years) to implement high-priority objectives from the 2016 Downtown Comprehensive Park Plan. During this, the final year of the pledge, $191,350 of this year’s funding was transferred to the Bozeman Parking Division. The
balance of approximately $58,650 was directly invested by the URD to continue the Downtown
Structured Parking Site Feasibility Study, to relocate the egress at the Black Avenue public parking lot, and to fabricate additional parking signage. Downtown Partnership Management Fee $ 162,000 invested
The URD is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated
management agency for all the downtown organizations. This management fee pays for a portion of the operating costs of the Downtown Partnership office in addition to much of the payroll costs of Executive Director and the new District Manager position.
Downtown Hotel Incentive Program $ 100,000 encumbered
In FY2014 the URD awarded up to $100,000 to the Armor Hotel project and those funds remain encumbered until the completion of the hotel. The purpose of the Downtown Hotel Incentive Grant Program was to encourage the construction of a quality hotel within Downtown URD.
Fiber Broadband Infrastructure $ 83,000 invested
The URD invested $81,000 to extend the fiber conduit system along Lamme to create another connection to the fiber conduit system in the Midtown URD. The URD also invested approximately $2,000 in grants to property owners to cost-share for installation of fiber broadband infrastructure into downtown buildings.
South Wallace Asbestos Project $ 75,000 encumbered The URD has pledged these funds to either be invested in the remediation of the asbestos contamination under the South Wallace roadway. The remediation will be performed in conjunction
with the sewer and water line upgrade along South Wallace between Main Street and Babcock
Streets which is being contracted for by OnSite Management. Technical Assistance Grant Program $ 25,500 invested $ 15,000 encumbered
This program supports current or potential developers, owners, and tenants with technical assistance
during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This year the URD awarded five Planning Grants to a variety of proposed downtown redevelopment projects. Two grant that was awarded last year have not been completed and the corresponding funds are encumbered.
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Streetscape Element Purchases and Maintenance $ 40,000 invested The URD purchased additional streetscape elements to augment those already located in the downtown district. This year’s purchases included: recycling receptacles, trash receptacles, and bike
racks. The URD also funded the on-going maintenance of the streetlamps and Soroptomist Park.
Streetscape Engineering $ 19,959 invested For over a decade, the URD has invested in the preliminary and final civil engineering for upgrading downtown’s streetscapes. This year the engineering work focused on preliminary and final
engineering of the North Rouse streetscape to be constructed in conjunction with the Montana
Department of Transportation’s Rouse reconstruction project. Some other engineering was done for North Black and North Willson avenues. Main Street Through-Truck Traffic Study $ 4,700 invested
$ 15,000 encumbered
The URD contracted with the Western Transportation Institute at Montana State University to study the large through-truck traffic on Main Street. This study will quantify the amount of large truck traffic that passing through downtown. The analysis differentiates between local truck traffic and the 18-wheelers using Highway 191 for intra and interstate transport. The data collected will be compared
the same study conducted in 2015 to identify trends.
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Downtown Urban Renewal District (URD)
FY2021 Work Plan (July 1, 2020 to June 30, 2021)
All budgeted investments over $15,000 are documented **New or modified work plan elements **Structured Parking Informal, Site Plan, Bids $ 750,000 budgeted The URD will continue to invest in planning for additional structured parking downtown. This $750k
would fund the informal (schematic) and site plan design work for a specific second parking garage.
As noted below this is just a portion of the “soft costs” associated with constructing a new garage.
**Downtown Parking Garage $ 335,000 budgeted The URD will make the annual bond payment contribution for Bridger Park, the downtown parking garage. Since 2008 the debt service payment was about $425,000, but the City Finance Department refinanced the bond this year reducing the annual payment to approximately $335,000. Over the
remainder of the bond term (2032), approximately $1 million will be saved. Downtown Streetlamp Power Reconfiguration $ 250,000 budgeted In conjunction with finalizing a comprehensive Special Improvement Lighting District, the URD is committing funds to reconfigure the power sources for dozens of public streetlamps that currently
powered from private electric services to public electric sources. **North Rouse Streetscape Project $ 225,000 budgeted The URD has been working with the Montana Department of Transportation since 2018 to incorporate the elements of the downtown streetscape into the reconstruction of Rouse Avenue. The
streetscape project has changed dramatically over the last 6 months. Street trees were removed from the design. The current scope includes purchasing the streetlamps ($85,000), contracting for the coordinated installation of the electric conduit system ($60,000), and a separate contract after MDT’s construction is complete to retroactively install the streetlamps ($80,000). **Downtown Residential Incentive Program $ 200,000 budgeted The purpose of the Downtown Residential Incentive Grant Program is to encourage the creation of more attainable housing units downtown. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. This year the program was revised to encourage the creation of new smaller studio and one-bedroom residential units as well as residential units that have
long-term affordability controls. Downtown Partnership Management Fee $ 175,0000 budgeted The URD is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all the downtown organizations (BID, DBA, URD). This management fee
pays for a portion of the operating costs of the downtown office in addition to most of the payroll costs of the Executive Director and District Manager positions.
Schematic Design (17.5%) = $306,250 306,250$
Design Development (25%) = $437,500 437,500$ 743,750$
Construction Documents (33%) = $577,500 577,500$
Bidding & Negotiation (2%) = $35,000 35,000$
Construction Administration (22.5%) = $393,750 393,750$
Total (100%) = $1,750,000 1,750,000$ Complete design, permitting and construction administration services for a second structured parking facility in Downtown Bozeman,
including architectural, MEP, structural, civil, survey and geotechnical services. Permitting includes the City of Bozeman site plan
application and building permit processes.
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**Downtown Plan Transportation Projects $ 122,300 budgeted This funding is intended for the study of the transportation concepts in 2019 Downtown Improvement
Plan encompassing a wide variety of potential projects including: 3-lane Main Street configuration
with diagonal parking options; bicycle facility improvements on Mendenhall and Babcock; possible new traffic signals on Mendenhall and Babcock; and pedestrian crosswalk improvements. The URD board approved Part 1 of a scope of work prepared by Sanderson Stewart which will include concept designs to verify the feasibility of each component. Part 1 has a not-to-exceed cost of
$31,710.
Part 2 will include traffic data collection and analysis of the affected intersections and corridors for the extent of the improvements. The scope of work for Part 2 may need to be reconsidered based on the findings from Part 1 prior to the separate authorization to proceed. Part 2, as currently scoped, has a not-to-exceed cost of $90,590.
Fiber Infrastructure Project $ 110,000 budgeted The URD continues to invest in upgrades to downtown’s open-source fiber broadband infrastructure and provide grants to defray the costs to connect downtown buildings/businesses to the fiber network.
Armory Hotel Incentive $ 100,000 encumbered
In 2013 the URD awarded up to $100,000 to the Armory Hotel project and those funds remain encumbered until the completion of the hotel. The purpose of the Downtown Hotel Incentive Grant Program was to encourage the construction of a quality hotel within the district.
Downtown Improvement Plan Implementation $ 100,000 budgeted
This funding is intended to be available for smaller investments in the implementation of the 2019 Downtown Improvement Plan objectives. South Wallace Asbestos Project $ 75,000 encumbered
The URD has pledged these funds to be invested in the remediation of the asbestos contamination
under the South Wallace roadway. The remediation will be performed in conjunction with the sewer and water line upgrade along South Wallace between Main Street and Babcock Streets. **North Willson Streetscape Project $ 75,000 budgeted
This funding is to construct new streetscape (sidewalk, trees, and lamps) along North Willson
adjacent to the South Willson public parking lot and connect to new streetscape along East Mendenhall adjacent to the Armory Hotel. Professional Services Term Contract $ 75,000 budgeted
The intent of this funding is to allow the URD to nimbly respond to needs for professional services in
response to unanticipated issues. The professional services will include but not be limited to engineering, architecture, urban planning, parking and fiber consulting. Technical Assistance Grant Program $ 50,000 budgeted
$ 15,000 encumbered
This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations.
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Streetscape Assistance Program $ 50,000 budgeted This URD program will provide property owners with partial reimbursement for the installation of streetlamps in accordance with the Downtown Streetscape Plan. The program is designed to support
private investment, redevelopment of property and the improvement of public areas in downtown. Life-Safety Grant Program $ 50,000 budgeted This URD program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a
building’s sprinkler system to the municipal water main. The program has a one-to-one match
required of the property owner and a per-project dollar cap of $10,000. Streetscape Element Purchases and Maintenance $ 45,000 budgeted The URD will continue to supplement the existing streetscape inventory by purchasing additional
historic streetlamps, trash receptacles, pedestrian benches, tree guards and bike racks. Funding is
also available for the ongoing maintenance of the streetlamps, Soroptomist Park, and the North Black Pocket Park. SILD and Streetscape Engineering $ 50,000 budgeted
This year’s work will focus on finalizing a new comprehensive Special Improvement Lighting District
and conducting preliminary streetscape engineering on North Willson and West Main. **Downtown Plan Historic Inventory Updates $ 38,750 budgeted These are matching funds to assist the Community Development Department to update the historic
inventories for over 150 downtown buildings. This is the first step of developing a set of downtown
design guidelines per the 2019 Downtown Plan and 2019 NCOD Report. In 2015 the URD provided $30,000 of matching funds for updating the historic inventories for over 100 buildings. **DBIP: Alley Enhancement Project $ 19,000 encumbered (planning)
$ 50,000 budgeted (implementation) $ 25,000 budgeted (planning) The $19,000 of encumbered funds are to complete preliminary design of alley improvements in north alley between Tracy and Black—the parking garage alley—that includes a combination of public art, seasonal planters, pavement treatments, lighting, seating, and landscaping.
The URD board has earmarked $50,000 for implementation of alley improvements in the garage
alley. The $25,000 is for planning improvements to a new section of alley (TBD). **DBIP: Bozeman Creek Project $ 30,000 budgeted (planning)
$ 50,000 budgeted (implementation)
The URD intends to continue planning for a variety of enhancements to Bozeman Creek as suggested in the 2019 Downtown Improvement Plan with $30,000 of funding. The $50,000 is for creek improvements that could include a combination of public art, education elements, culvert improvements, furniture (benches, picnic tables), stream restoration, and bank
stabilization.
Alternative Transportation Project $ 25,000 budgeted This URD funding is to be invested in the planning, design, and implementation of alternative transportation infrastructure potentially including EV charging, car share, and multi-modal
transportation systems as recommended in the 2019 Downtown Improvement Plan.
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Structured Parking Feasibility Analysis $ 25,000 budgeted The URD will finance Phase 3 of the feasibility site analysis of potential locations for the construction of structured parking in the downtown district.
City Economic Development Technician $ 21,740 budgeted The URD is committed to partially fund the City Economic Development Department Specialist FTE. This employee will work on a variety of tasks directly related to the downtown URD including parking and tax increment financing. The URD began contributing funding for this position in FY20 URD.
**Library Pedestrian Safety Improvements $ 15,000 budgeted The URD board approved a $15,000 request from Bozeman Public Library director and board for the Library’s parking lot pedestrian safety improvement plan. This project was allocated in FY19 URD budget but was then postponed.
Requested Budget Amendment **Main Street Truck Traffic Study $ 15,000 encumbered The Western Transportation Institute is in the process of completing the Main Street Truck Traffic Study, as an update to the same study conducted back in 2015. There is approximately $15,000 of
payables remaining for completion of the project. The FY21 budget should have included a
corresponding line item encumbering the remainder of this project’s funding from FY20. Kristin Donald, City Finance Director, recommends that the City Commission make this amendment with the support of the URD Board. On June 30, 2020, the board unanimously supported this amendment.
The FY2021 Downtown Urban Renewal District Work Plan and Budget was approved by the URD Board on June 16, 2020.
Prepared and submitted by: Chris Naumann Downtown Bozeman Partnership 222 East Main Street #302 Bozeman MT 59715
chris@downtownbozeman.org
406-586-4008
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Downtown URD FY2021 FINAL Budget
Downtown Urban Renewal District FY2021 Budget
Category
Board Approved Budget
Income
Starting Cash Balance 3,100,000 Income from TIF 335,000 COB Interlocal Share 1,400,000
Entitlement Share State of Montana 56,050 Interest Income 20,000
Other Income - Total Income 4,911,050$
Expenses Operations
DBP Management Fee 175,000 Total Operations 175,000$
Infrastructure Improvements
Street Furniture and Park Maintenance 15,000 Streetscape--new purchases 30,000
North Rouse Streetscape ProjectStreetlamps (26 qty)85,000 Phase 1 Construction: Conduit 60,000
Phase 2 Construction: Lamps 80,000 North Willson Streetscape Project 75,000
Streetscape Assistance Grant Program 50,000 Streetlamp Power Reconfiguration Project 250,000 Alley Improvements 50,000
FY20 Encumbered 19,000 DBIP: Bozeman Creek Improvements 50,000
Library Pedestrian Safety Improvements 15,000 Life-Safety Grant Program 50,000 Fiber Infrastructure 100,000
Fiber-Broadband Infrastructure--Grants 10,000 Alternative Transportation Projects 25,000
Total Improvements 964,000$
PlanningCity Economic Development Specialist 21,740
Technical Assistance Grants 50,000 FY20 Encumbered Funds 15,000 FY19 Encumbered Funds
Residential Incentive Program 200,000 Armory Hotel Incentive Encumbered Funds 100,000
DBIP: Transportation PlanningFY20 Encumbered Part One--Concepts 31,710 Part Two--Data, Analysis, Cost Est 90,590
DBIP: Alley Planning 25,000 DBIP: Bozeman Creek Planning 30,000
DBIP: Soroptomist Park Planning 6,000 DBIP: Code Amendments 10,000 DBIP: Design Guidelines-Historic Inventories 38,750
DBIP: General Implementation 100,000 FY20 Encumbered Main Street Truck Study 15,000
SILD & Streetscape Engineering 25,000 Structured Parking Feasibility Analysis 25,000 Structured Parking Informal, Site Plan, Bids 750,000
South Wallace Asbestos Project 75,000 Professional Services Term Contract 75,000
Streetscape Preliminary Engineering 25,000 Total Planning 1,708,790$
Parking StructureGarage Bond Payment 335,000 Total Parking Garage Payments 335,000$
Total Expenses 3,182,790$
Balance 1,728,260$
The FY2021 Budget was approved by the URD Board on 6-16-20
DTN URD Budget FY2021 APPROVED
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