HomeMy WebLinkAbout08-25-20 City Commission Packet Materials - A2.6 Res 5145 Adopt Findings of Blight and Est Necessity of the Pole Yard Area
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Urban Renewal Program Manager Brit Fontenot, Director of Economic Development SUBJECT: Resolution 5145 Adopting Findings of Blight and Establishing the Necessity of Rehabilitation and Redevelopment of the Pole Yard Area MEETING DATE: August 25, 2020
AGENDA ITEM TYPE: Action RECOMMENDATION:
Approve Resolution 5145 adopting findings regarding the existence of conditions contributing to blight within the Pole Yard area provided in the Statement of Blight, and declaring that the rehabilitation, redevelopment, or a combination thereof of the area is necessary and in the best interest of the City.
RECOMMENDED MOTION AND VOTE: I move to approve Resolution 5145 adopting the findings regarding the existence of conditions contributing to blight within the Pole Yard area of Bozeman provided in the Statement of Blight, and hereby declare that such areas of blight exist and
that the rehabilitation, redevelopment, or a combination thereof of the area is necessary and in the interest of the public health, safety, morals, or welfare of the residents of Bozeman. BACKGROUND: Resolution 5145 supports the Commission’s economic development priorities of facilitating mid- to high wage job growth and industry diversification. Community partners work together in support of the primary tenets of the City’s adopted 2016 Economic Development Strategy:
1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses;
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2. Invest in infrastructure to drive economic development; and
3. Support education and workforce development initiatives to provide
businesses with qualified workers. (Bozeman 2016 Economic Development
Strategy Update)
The City’s adopted Strategic Plan, moreover, directs us to focus more specifically certain kinds of infrastructure investments and funding sources for those investments:
2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. The Pole Yard area is within the urban core, but the Interstate 90 corridor and
the Montana Rail Link right-of-way, which border the property, serve as physical barriers to development and various land uses. In addition, portions of the area include a partially delisted Superfund site owned by the Idaho Pole Company. The state of remediation and potential environmental concerns raise the barriers for productive redevelopment. Existing conditions, including the infrastructure deficiencies and the
brownfield create a substantial, initial burden for redeveloping the site. Economic Development staff are working with a development group that has a transformative vision for this brownfield area in the core of our community. Staff expects that the group will submit a development application for review within the next
year. Protecting public health, safety and welfare when considering redevelopment of any brownfield site is paramount. For any future site development application, the U.S. Environmental Protection Agency (EPA), the Montana Department of Environmental Quality (DEQ), the Gallatin City-County Health Department (GCCHD), and the City will need to use their best professional and scientific knowledge to assess the safety
and risk of any proposed development. The creation, in the meantime, of an Urban Renewal District with a tax increment financing provision is the City’s only financial tool for making beneficial redevelopment feasible under these challenging conditions. It is important to note that making findings of blight and creating an urban renewal district does not create any obligation for the City to approve development applications or enter into development agreements that utilize the tax increment financing provision. The City Commission always retains the ability to end an urban renewal district in the event it cannot be used productively. This effort is about ensuring that the City has assembled all the tools at our disposal to plan for success.
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On June 22, 2020, the City Commission authorized the City Manager to sign a
Task Order with Community Development Services of Montana (CDS) to complete a
statement of conditions that contribute to blight in the area and, if appropriate, draft a resolution of necessity for consideration by the City Commission. Studying the area and documenting conditions contributing to blight is 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. Acknowledging that economic development is a long-term proposition, the
City should create the opportunity to use tax increments to attract and retain value-
adding commerce, which includes traded and local sector businesses, and make investments in public infrastructure. This proposal to approve Resolution 5145, adopting the findings regarding the
existence of conditions contributing to blight within the Pole Yard area and declaring
that the rehabilitation, redevelopment, or a combination thereof of the area is necessary and in the best interest of the City is part of a large collaborative effort. The Commission may consider a future proposal to create the Pole Yard Urban
Renewal District (URD) to prevent and eliminate “blighted areas” as defined by law
in §7-15-4202 MCA, reduce poverty in the City of Bozeman, and deliver efficient public services through the following:
• The investment in public infrastructure in support of economic development
• The attainment of urban density to achieve greater efficiency in the delivery of public
services
• The creation of opportunities for livable wage jobs
A determination of blight must be made prior to establishing an urban renewal district. The Pole Yard area can be described as blighted under the Montana Urban Renewal Law, because its geographic isolation “substantially impairs or arrests the
sound growth” of the municipality per §7-15-4201 MCA, making it eligible for
designation as a URD. Specifically, the Montana Urban Renewal Law requires that at least three conditions that contribute to blight must be identified. More particularly, the following specific conditions contributing to blight, as set forth in §7-15-4206 MCA, are present within the area
inappropriate or mixed uses of land or building
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defective or inadequate street layout
faulty lot layout in relation to size, adequacy, accessibility, or usefulness
unsanitary or unsafe conditions
improper subdivision or obsolete platting
the existence of conditions that endanger life or property by fire or other causes
City Commission action to create the Idaho Pole Urban Renewal District (URD) would occur in a series of steps culminating in the adoption of an urban renewal plan by ordinance. The adoption of Resolution 5145, the findings of blight and establishing the necessity of rehabilitation and redevelopment of the Idaho Pole area
is a prerequisite for creating a URD per §7-15-4210 MCA.
NEXT STEPS: In general, the proposed next steps include:
• A public meeting (via Webex) to present the draft urban renewal plan and to receive public comment
• City consultation with affected taxing jurisdictions (Gallatin County and BSD #7);
• Development of the Bozeman Pole Yard Urban Renewal District (URD)
plan;
• Planning Board recommendation on conformance of the URD plan with the Bozeman Community Plan;
• Certified notice of public hearing to all property owners;
• City Commission public hearing and provisional adoption of proposed
ordinance; and
• City Commission final adoption of proposed ordinance.
FISCAL EFFECTS: The adoption of a Resolution of Necessity and Statement of Blight has no fiscal effect.
If an Urban Renewal District where tax increment financing (TIF) is in effect
is created, taxpayers located in the new District would, in effect, pay the same amount of property tax as they would if the property were located outside the URD. TIF only affects the way that taxes, once collected, are distributed. Taxes that are derived from base year taxable values continue to be distributed to the various taxing jurisdictions,
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including local and state government entities and school districts. Taxes derived from
the incremental increase in taxable value are placed in a special fund for purposes set
forth in an adopted urban renewal plan. EXHIBITS:
1) Resolution 5145; 2) Pole Yard Area Statement of Blight; and 3) Map of Pole Yard Area of Review.
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Resolution 5145 Necessity, Statement of Blight Pole Yard Area
Page 1 of 4
COMMISSION RESOLUTION NO. 5145
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, FINDING THAT BLIGHTED AREAS EXIST WITHIN THE
MUNICIPALITY IN AND NEAR THE POLE YARD AREA AND THAT THE
REHABILITATION, REDEVELOPMENT, OR A COMBINATION THEREOF OF
SUCH AREAS IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH,
SAFETY, MORALS OR WELFARE OF THE RESIDENTS OF SUCH MUNICIPALITY
WHEREAS, the primary tenets of the City of Bozeman’s economic development strategy
are 1) retention and growth of existing businesses, while welcoming and encouraging new
businesses; 2) investment in infrastructure to drive economic development; and 3) education and
workforce development initiatives to provide businesses with qualified workers. (Bozeman
Economic Development Strategy Update, 2016); and
WHEREAS, the State of Montana has provided for the redevelopment of those portions of
municipalities which constitute an economic and social liability and substantially impair the sound
growth of a municipality; and
WHEREAS, the procedure provided in Title 7, Chapter 15, Part 42 and 43 of the Montana
Codes Annotated authorizes municipalities to exercise urban renewal powers for redevelopment
and rehabilitation through urban renewal plans and projects, after the municipality has made a
finding that a blighted area exists that substantially impairs or arrests the sound growth of the city
or its environs, constitutes an economic or social liability and/or is detrimental to the public health,
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Resolution 5145 Necessity, Statement of Blight Pole Yard Area
Page 2 of 4
safety, or welfare in its present condition and use; and
WHEREAS, a review of conditions contributing to blight in the Pole Yard area, as shown
on Exhibit A, more than 210 acres in the northeast quadrant of the City of Bozeman, was completed
at the direction of the City; and
WHEREAS, the Review and Findings of Conditions that Contribute to Blight (the
Statement of Blight) documents the conditions contributing to blight in the northeast quadrant of the
city surrounding and including the Idaho Pole Superfund site consisting of approximately 175 acres,
of which 90 acres are located between Interstate 90 and the railroad rights-of-way on both sides of
L Street and includes properties along Cedar and Pear Streets. Approximately 50 acres are located
east of Interstate 90 and include properties accessed by L Street and Bohart Lane. About 15 acres
are located on the east side of North Rouse Avenue extending south from Bond Street to Interstate
90. About 10 acres are located west of the railroad rights-of-way extending westerly to North Rouse
Avenue and south to the Northeast Neighborhood Urban Renewal District at about East Tamarack
Street. An additional 10 acres, also on the west side of the railroad rights-of-way, are located at the
eastern terminus of East Peach Street on the east side of North Broadway Avenue; and
WHEREAS, conditions contributing to blight as defined by §7-15-4206(2) MCA,
conditions that substantially impair or arrest the sound development of communities or constitute an
economic or social liability, exist within the Pole Yard area, and are associated with one or more
of the following:
physical dilapidation, deterioration, age obsolete structures and improvements - with
respect to but not limited to such things as:
1. lack of municipal signage, storm drainage, street lighting, fire hydrants, street paving,
curbs, gutters, and sidewalks
2. overhead electric lines, lack of natural gas lines, lack of or limited communication
lines and services (broadband, dark fiber, etc.)
3. lack of maintenance of building facades, business signage, landscaping and irrigation,
ADA compliance, parking facilities and paving, storm drainage, and life safety;
inappropriate or mixed uses of land or building - such as but not limited to low density or
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Resolution 5145 Necessity, Statement of Blight Pole Yard Area
Page 3 of 4
vacant lands in the urban core, encroachment into the public rights-of-way, lack of
connectivity, uses which are not in conformance, accordance or compliance with current
plans, standards or codes, lack of economic development support, natural hazard
mitigation, brownfield clean-up and/or attractive nuisance mitigation;
defective or inadequate street layout – including but not limited to dead end streets and
sidewalks, incomplete and unpaved streets, lack of street lighting, lack of curb, gutter, or
sidewalks and storm drainage facilities, and the lack of multi-modal connectivity;
faulty lot layout in relation to size, adequacy, accessibility, or usefulness – including but
not limited to:
1. large lots which need to be subdivided to be useful and lots that are too small to be
useful
2. lots with excessive or undeveloped accesses not in conformance, accordance or
compliance with current plans, standards or codes
3. access and geographic isolation that substantially impairs or arrests sound growth;
unsanitary or unsafe conditions – including but not limited to:
1. uncontrolled accesses, deteriorating improvements, barb wire fencing, inadequate
storm drainage and broken sidewalks, outdated and rural-type services, as well as
discarded materials or other attractive nuisances, and natural hazards, such as creeks
and floodplains
2. lack of municipal infrastructure
3. the presence of the Idaho Pole Superfund site;
improper subdivision or obsolete platting – including but not limited to lack of
conformance, accordance or compliance with current plans, standards or codes;
the existence of conditions that endanger life or property by fire or other causes –
including but are not limited to lack of guaranteed emergency access, a connected
transportation network, complete municipal services, the at-grade railroad crossing,
barbed wire, buildings or properties that may not meet life safety standards such as fire
sprinklers, fire hydrants and ADA compliance;
any combination of the factors listed can be interpreted as conditions that substantially
impair or arrest the sound development of communities or constitutes an economic or
social liability that contribute to blight – such as but not limited to noise and light
pollution, vandalism (graffiti and other defacement of property), homeless camps, and
other conditions as identified over time; and
WHEREAS, blighted areas exist in the Pole Yard area based on at least three of the factors
described above and listed in §7-15-4206(2), MCA; and
WHEREAS, the City desires to exercise, within the defined area on shown on Exhibit A, the
powers conferred by the Montana Urban Renewal Law; and
WHEREAS, Section 7-15-4210, MCA, requires a municipality adopt a resolution of
necessity to exercise its urban renewal authority.
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Resolution 5145 Necessity, Statement of Blight Pole Yard Area
Page 4 of 4
NOW, THEREFORE, BE IT RESOLVED by the City Commission (the
“Commission”) of the City of Bozeman (the “City”), Montana:
Section 1
The City adopts the findings regarding the existence of conditions contributing to blight
within the Pole Yard area of Bozeman provided in the Statement of Blight, and hereby declares
such areas of blight exist and that the rehabilitation, redevelopment, or a combination thereof of
the area is necessary in the interest of the public health, safety, or welfare of the residents of
Bozeman. The Pole Yard area to which this Resolution applies is shown on Exhibit A.
Section 2
The City shall not use its powers of eminent domain to acquire private property for any
private use in the implementation of any urban renewal project within this area as shown in the
Statement of Blight.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at
a regular session thereof held on the 25th day of August, 2020.
CHRIS MEHL
Mayor
ATTEST:
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney
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L ST E MAIN ST N ROUSE AVE IN
T
E
R
S
T
A
T
E 90 H
W
Y
BOHART LN
CEDAR ST IDA AVE FRONT ST N WALLACE AVE PLUM AVE N CHURCH AVE E LAMME ST
BIG GULCH DR N BROADWAY AVE N MONTANA AVE E PEACH ST PERKINS PL E MENDENHALL ST
E TAMARACK ST
BOND ST
E CURTISS ST S CHURCH AVE PEAR ST CYPRESS AVE S WALLACE AVE VILLAGE DOWNTOWN BLVD GOLD AVE BUTTONWOOD AVE E OAK ST
FRIDLEY ST
E COTTONWOOD ST
BRYANT ST S ROUSE AVE E ASPEN ST PARADISE VISTA RD BRADY AVE INTERSTATE 90 HWY
E ASPEN ST
Pole Yard Blight Study Area
Legend
City Limits
Parcels
Pole Yard Blight Study Area
´
0 1,000 2,000500Feet
Map Created by City of Bozeman GIS Division 8/10/2020
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L ST E MAIN ST N ROUSE AVE IN
T
E
R
S
T
A
T
E 90 H
W
Y
BOHART LN
CEDAR ST IDA AVE FRONT ST N WALLACE AVE PLUM AVE N CHURCH AVE E LAMME ST
BIG GULCH DR N BROADWAY AVE N MONTANA AVE E PEACH ST PERKINS PL E MENDENHALL ST
E TAMARACK ST
BOND ST
E CURTISS ST S CHURCH AVE PEAR ST CYPRESS AVE S WALLACE AVE VILLAGE DOWNTOWN BLVD GOLD AVE BUTTONWOOD AVE E OAK ST
FRIDLEY ST
E COTTONWOOD ST
BRYANT ST S ROUSE AVE E ASPEN ST PARADISE VISTA RD BRADY AVE INTERSTATE 90 HWY
E ASPEN ST
Pole Yard Blight Study Area
Legend
City Limits
Parcels
Pole Yard Blight Study Area
´
0 1,000 2,000500Feet
Map Created by City of Bozeman GIS Division 8/10/2020
392