Loading...
HomeMy WebLinkAbout08-03-20 City Commission Packet Materials - C4. TO3 with CDS of MT for Draft Urban Renewal Plan of 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 3 with Community Development Services of Montana (CDS) to Draft an Urban Renewal Plan and Associated Documents for the Idaho Pole Area of Bozeman MEETING DATE: August 3, 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 35 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 prospective purchaser of the site, 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. If the City Commission adopts a Resolution of Necessity and Statement of Blight for the Idaho Pole area, it will be necessary to draft an appropriate urban renewal plan and associated documents for the review of the Planning Board and Bozeman City Commission. The proposed Task Order with CDS would allow for CDS to draft an urban renewal plan and associated documents for the consideration of the Bozeman City 36 Commission and the Planning Board to facilitate the redevelopment of this brownfield site. FISCAL EFFECTS: The total cost of this professional services agreement is not-to-exceed $21,500. The Project would be actively managed for the benefit of the City and the Bozeman Community by the Economic Development Department. Scout DAC, LLC, the prospective purchaser of the Idaho Pole property has agreed to provide $21,500 in funding to the City for this phase of the project. ATTACHMENTS: • Task Order 3 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 37 Page 1 of 2 Community Development Service of Montana (CDS) Task Order Number 03 Task Order Number 03 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 , 202__ 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. 3 (the “Work”) as detailed in the attached Scope of Work – Task Order No. 3 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 will be invoiced monthly based on actual hours worked not-to-exceed $21,500. 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: 38 Page 2 of 2 Community Development Service of Montana (CDS) Task Order Number 03 Community Development Services of Montana Scope of Work – Task Order No. 3 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. 39 Community Development Services of Montana 954 Caledonia Street, Butte, MT 59701-9002 Memo PHONE FAX WEB 406-723-7993 406-723-7993 CDSofMontana.com MEMO TO: David Fine, City of Bozeman Economic Development FROM: Janet Cornish, CDS of Montana JC and Lanette Windemaker, AICP LW RE: Proposed Idaho Pole URD – Scope of Work DATE: July 20th, 2020 CDS of Montana is pleased to provide you with the following proposed scope services associated with creating a new Urban Renewal District (URD) in the Idaho Pole area of the City of Bozeman and providing for the use of Tax Increment Financing (TIF) within the District. Following the list of services, we have included the specific legal process requirements associated with the creation of a URD. The total cost of providing services will not exceed $21,500.00* (includes all expenses except document printing, map production, costs associated with the publication of notices and certified mailings to property owners). Scope of Work 1. The process of creating a URD will include all of the steps required by §7-15-4201 and 4301 et Seq. MCA and the Department of Revenue and associated Administrative Rules to create a URD. Please note that we have already prepared a Statement of Conditions that contribute to blight and an associated Resolution of Necessity in accordance with §7-15-4206 and 4210 MCA, under a previous task order. We will: a. Prepare an Urban Renewal Plan for the District b. Gather and assemble all necessary information including: i. Property owner names and mailing addresses ii. The district’s legal description and corresponding map. iii. Geocodes and other property codes and information required by the Department of Revenue c. Facilitate the required planning board review of the Urban Renewal Plan and written recommendation to the Bozeman City Commission d. Prepare notices of public hearing(s) for publication and mailing to district property owners by certified mail e. Prepare an ordinance for adoption of the Urban Renewal Plan with a TIF provision. 40 2 f. Assist in the preparation of the required packet of information for the Department of Revenue for certification of the base year for the purposes of calculating the tax increment 2. We anticipate that during the course of this effort, we will participate in and/or facilitate, via remote teleconferencing the following meetings and activities: a. One-two meetings with property owners and other stakeholders (optional) b. Meetings with the affected taxing jurisdictions c. Meetings with the City of Bozeman staff, Planning Board, and City Commission as required 3. The work will be completed by Janet Cornish, CDS of Montana and Lanette Windemaker, AICP. * This quote assumes that the creation of the URD will not require an amendment to the existing Bozeman City growth policy, known as the 2020 Bozeman Community Plan CITY OF BOZEMAN URD PROCESS AND LEGAL REQUIREMENTS Bozeman City Commission Meeting 1. Adoption of Resolution of Necessity based on Statement of Blight (§7-15-4210) Planning Board Meeting 1. Review of URD Plan Conformance and Zoning Accordance with Growth Policy (§7-15-4213) 2. Written (Resolution of) Recommendation on Plan Conformance and Zoning Accordance with Growth Policy (§7-15-4213) Notices URD Property Owners by Certified Mail, Affected Taxing Jurisdictions by regular mail and Publication (twice for 2 weeks) not less than 10-days prior to Public Hearing (§7-15-4214, §7-15-4215, §7-1-4221) Bozeman City Commission Meeting 1. Public Hearing on URD (§7-15-4214) 2. First Reading and Provisional Adoption of URD Ordinance (§7-15-4216) Bozeman City Commission Meeting (No Later than November 20th, 2020) 1. Second Reading and Final Adoption of URD Ordinance (§7-15-4216) Ordinance effective no later than December 31, 2020 41