HomeMy WebLinkAbout09-15-20 City Commission Packet Materials - A3. Res 5145 Findings of Blight and Necessity for Pole Yard Area
1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Urban Renewal Program Manager
Dani Hess, Neighborhood Coordinator
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: September 15, 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.
STRATEGIC PLAN ASSOCIATION:
• Vision statement 2: An Innovative Economy
• Identify sites for new or redevelopment in areas that lack
adequate infrastructure and develop new financing strategies
to fund these investments; and
• Vision Statement 4: A Well-Planned City
292
2
• Strategic Infrastructure Choices - Prioritize long-term
investment and maintenance for existing and new
infrastructure.
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;
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
on certain kinds of infrastructure investments and funding sources for those
investments:
• Vision statement 2: An Innovative Economy
• Identify sites for new or redevelopment in areas that lack
adequate infrastructure and develop new financing strategies to
fund these investments; and
• Vision Statement 4: A Well-Planned City
• Strategic Infrastructure Choices - Prioritize long-term investment
and maintenance for existing and new infrastructure.
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 the application of 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 safe, productive redevelopment. Existing conditions, including the
infrastructure deficiencies and the brownfield create a substantial, initial burden for
redeveloping the site.
What is “blight” and why does the City Commission use that legal term when
adopting findings? “Blight” is a legal term of art first used in federal urban renewal laws
promulgated particularly during the inter-war period in the United States but really taking
293
3
off post World War II. The notion at the time was that cities across America were in a
state of decay and the term “blight” was used to sum up a series of conditions that
contributed to the urban decay. These federal statutes and their definitions were used in
the creation of many States’ urban renewal laws. For example, the Montana Urban
renewal statues were adopted in 1959. Montana’s urban renewal law defines a "Blighted
area" in §7-15-4206 MCA as one where:
(a) the substantial physical dilapidation, deterioration, age obsolescence, or
defective construction, material, and arrangement of buildings or improvements,
whether residential or nonresidential;
(b) inadequate provision for ventilation, light, proper sanitary facilities, or open
spaces as determined by competent appraisers on the basis of an examination of
the building standards of the municipality;
(c) inappropriate or mixed uses of land or buildings;
(d) high density of population and overcrowding;
(e) defective or inadequate street layout;
(f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(g) excessive land coverage;
(h) unsanitary or unsafe conditions;
(i) deterioration of site;
(j) diversity of ownership;
(k) tax or special assessment delinquency exceeding the fair value of the land;
(l) defective or unusual conditions of title;
(m) improper subdivision or obsolete platting;
(n) the existence of conditions that endanger life or property by fire or other causes;
or
(o) any combination of the factors listed in this subsection (2).
In other words, the City Commission must use the standard carried forward in
Montana law (§7-15-4206 MCA) in order to find deficiencies within the proposed
study area that can be remediated, or improved, by investment in public
infrastructure using Tax Increment Financing, or TIF. The term “blight”, when used in
the context of urban renewal, while unfortunate, simply means that one or more of
the above characteristics are found within the proposed study area boundary and
represents a legal rationale for using the financial mechanism of TIF, to remove,
remediate or improve the “blighted area” by well-developed and targeted
investments in public infrastructure. The reference to “blight” is not meant to single
out any one property or property owner, only to provide a list of identified
deficiencies, shown above, that can be overcome using TIF.
294
4
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.
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.
295
5
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; and
• 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. The complete list
of conditions is set forth in §7-15-4206 MCA, and listed above. More particularly, the
following specific conditions contributing to blight, as set forth in §7-15-4206 MCA,
are present within the proposed study area:
Inappropriate or mixed uses of land or building;
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; and
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.
ENGAGEMENT AND PUBLIC PROCESS:
Public Information Website: Pole Yard Urban Renewal District
• August 2020 Letter noticing property owners of study of existing
conditions; Property owner meeting and site visit with City staff;
296
6
• September 1, 2020 Letter noticing the September 15, 2020 City
Commission public hearing;
• September 3, 2020 Presentation to the Local Water Quality Board;
• September 9, 2020 Online community info session and Q&A (via
Webex); and
• September 15, 2020 City Commission Public Hearing considering the
Statement of Blight.
Next steps include:
• DATE PENDING - Presentation to the City-County Board of Health;
• October 5, 2020 Planning Board public hearing regarding
recommendation on conformance of the URD plan with the Bozeman
Community Plan;
• October 6, 2020 certified mailing of notice of October 27, 2020 City
Commission public hearing to all property owners;
• October 27, 2020 City Commission public hearing and provisional
adoption of proposed ordinance creating the District;
• November 10 or 17, 2020 City Commission final adoption of proposed
ordinance creating the District;
• December 10 or 17, 2020 ordinance effective date; and
• January, 2021 submit certification documents to the State of Montana
Department of Revenue for URD certification.
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 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,
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 with map attachment; and
297
7
2) Pole Yard Area Statement of Blight.
298
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,
299
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
300
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.
301
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
302
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
303
City of Bozeman
Pole Yard Area
Review and Findings of Conditions That
Contribute to Blight
August 2020
Story Mill Spur Trail at Pear Street
East Gallatin River along Bohart Lane
304
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 1
Chapter 1. Introduction and Overview
The Bozeman City Commission, on June 22nd, 2020, initiated an examination of conditions that
could be considered to contribute to blight in the northeast quadrant of the city in the vicinity of
the Idaho Pole brownfields of Bozeman. The purpose of the review is to determine whether such
conditions exist and whether rehabilitation, redevelopment, or both, are necessary in the
interest of the public health and welfare of the residents of the City of Bozeman. This evaluation
is required by Montana’s Urban Renewal statutes in §7-15-4210, Montana Codes Annotated
(MCA), as a first step in initiating an urban renewal program.
The statutory definitions of blight are found in §7-15-4206, MCA, and listed on page 9 in Chapter
2 of this review; however, for purposes of clarity, visible signs of conditions that contribute to
blight can be seen in the following:
Dirt or gravel roads
Graffiti or vandalism
Barbed wire
Constrained public access points
Brownfields
Attractive nuisances
Undeveloped or rural development
Aged or deteriorating public infrastructure
Lack of curb, gutter or sidewalks
Private encroachment into public rights-of-way
Following this examination, the City will determine the appropriateness of establishing an urban
renewal district (URD) in the area, as a means to improve the overall economic health of the
community. Efforts to revitalize the area would rely on both public and private participation,
thoughtful planning and the efficient use of resources. The establishment a URD would enable
the City to address conditions that contribute to blight through:
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
This effort reflects the goals presented in the March 2020 Draft Bozeman Community Plan, which
is being prepared in accordance with §76-1-601 MCA, the state’s Growth Policy statute. The draft
Community Plan sets forth a series of goals, grouped by theme. Of particular note to this
examination are the following themes and associated goals:
Theme 1. “A City of Neighborhoods”
Support well-planned, walkable neighborhoods.
305
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 2
Pursue simultaneous emergence of commercial nodes and residential development
through diverse mechanisms in appropriate locations.
Theme 2. “A City Bolstered by Downtown and Complementary Districts”
Support urban development within the City.
Encourage growth throughout the City, while increasing a pattern of community
development oriented on centers of employment and activity. Support a gradual increase
in intensity within developed areas.
Theme 5. “A city powered by its creative, innovative and entrepreneurial economy”
Promote the continued development of Bozeman as an innovative and thriving economic
center.
Survey and revise land use planning and regulations to promote and support economic
diversification efforts. (City of Bozeman, 2020)
Conditions in 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. More
particularly, the following specific conditions of that contribute to blight, as set forth in §7-15-
4206 MCA, are present within the area:
inappropriate or mixed uses of land or building
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
Figure 1 depicts the general area that was reviewed for conditions that contribute to blight.
306
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 3
Figure 1. General Pole Yard Review Area
307
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 4
State Authorization for the Creation of a URD with a Tax Increment Financing Provision
The establishment of a URD must be undertaken in accordance with §7-15-4201, et Seq., MCA
and enables a local government to use the tax increment financing (TIF) provision within the state
statute to help fund its efforts. TIF is a locally driven funding mechanism that allows cities to
direct property tax increments that accrue from increases in taxable value within a specified
urban renewal district to a special fund that can be used to finance public economic development
and infrastructure projects within that district.
Taxpayers located within a district where TIF is in effect pay the same amount of property tax as
they would if the property were located outside the district. 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, 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 urban renewal plan. (See Figure 2. TIF Schematic below.)
A TIF provision is authorized for 15 years but may be extended for up to an additional 25 years if
TIF bonds are sold any time during the first 15 years. Funds may be used for a variety of purposes
as provided for in §7-15-4288, MCA and include improvements to vehicular and pedestrian
transportation infrastructure; land acquisition; streetscapes, parks and landscaping, water and
sewer lines and for connecting to infrastructure outside the district. While funds are typically
used for public infrastructure investments, there are instances where local governments have
used TIF funds to partner with private property owners to make improvements to historic
buildings, to address life-safety issues and to enhance landscaping. The statutes also provide for
the establishment of a TIF revolving loan program that can support private investment in the
district. Loan funds can continue to “revolve” in perpetuity; however, eligible projects must be
undertaken in accordance with and in the area encompassed by an urban renewal (URD) plan for
the district.
308
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 5
Figure 2. Tax Increment Financing Schematic
Prior to its creation, the area under consideration for a URD must be found blighted as stated in
a “Resolution of Necessity”, adopted by the local governing body under §7-15-4210 MCA. This
Review and Findings of Conditions that Contribute to Blight documents the specific conditions.
Area Description
A portion of the northeast quadrant of the city was examined for conditions that could be
considered to contribute to blight, consisting of the area surrounding and including the Idaho
Pole Superfund site. The region consists 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.
In addition to the Idaho Pole Superfund site, land uses in the area include a crane and heavy
equipment business, building materials storage yards, Montana Rail Link property, a
Northwestern Energy substation, a dwelling, office buildings, a manufacturing plant, the Gallatin
Valley Food Bank, outside storage areas, numerous other businesses, floodplains, wetlands and
agricultural properties.
309
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 6
The Setting
The City of Bozeman is the county seat of Gallatin County in southwest Montana. The City is
named for John M. Bozeman who established the Bozeman Trail and was a key founder of the
town in August 1864. The town became incorporated in April 1883 with a city council form of
government and later in January 1922 transitioned to a city manager/city commission form of
government. In 2006, the voters of Bozeman adopted a Charter form of government granting the
City self-government powers. Bozeman was elected an All-America City in 2001 by the National
Civic League. Bozeman is home to Montana State University and is served by Bozeman
Yellowstone International Airport.
The Idaho Pole Company (IPC) Superfund site was designated in 1986 by the United States
Environmental Protection Agency and placed on the National Priorities List. The site is located
near the northern limits of Bozeman, Montana in Gallatin County. The site includes about 75
acres, of which approximately 65 acres are owned by Idaho Pole Co. A small section of Interstate
90 (I-90) transects the property. The following information is taken from the Environmental
Protection Agency Website:
“The IPC wood treating facility began operation in 1945 using creosote to preserve
wood. In 1952 the company switched to pentachlorophenol in carrier oil (similar to
fuel oil such as diesel) for the wood treating solution. Site processes included pole
treatment in butt vats with the later addition of pressurized heated retort equipment
in the area south of Cedar Street. Treated poles were stacked for drying and shipment
in the area. Burlington Northern Railway Company operated a railroad roundhouse
where wood treating chemicals and timber were shipped in and treated poles were
shipped out of the site. Pole treatment processes included pole peeling with a bark-
fill area for wood waste north of Cedar Street. In 1975 a pressurized heated retort
was added for treating full-length poles. The pole-length vats were removed in the
early 1980s. There was also a drying area where treated poles were stored prior to
shipment. IPC continued wood treating with a pressurized heated retort and butt-
dipping vat until September 1997, when the company ceased wood-treating
operations.
At this site, activity and use limitations that EPA calls institutional controls are in
place. Institutional controls play an important role in site remedies because they
reduce exposure to contamination by limiting land or resource use. They also guide
human behavior. For instance, zoning restrictions prevent land uses – such as
residential uses – that are not consistent with the level of cleanup.” (United States
Environmental Protection Agency, n.d.)
On February 3rd, 2020, The EPA announced the deletion of 82 acres of the Idaho Pole Company
Superfund site from the National Priorities List (NPL) of the nation’s most contaminated sites.
EPA and the Montana Department of Environmental Quality (MDEQ) have determined that all
310
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 7
required cleanup activities are complete in the deleted area. (United States Environmental
Protection Agency, 2020)
Demographic and Economic Information
The City of Bozeman is growing. According to 2019 Census estimates, there are 45,121 people
living in the City of Bozeman, significantly higher than the 2010 Census figure of 37,280. The
county’s population is projected to experience continued growth into the future, from 120,342
in 2020 to 182,379 in 2060, an increase of 51%. (ARCGIS.Com, 2019) Figure 3 presents population
data for the City from 1910 to 2019, based on the decennial census. (United States Census, 2019)
Census information, recorded over a period of 130 years beginning in 1890 and presented in
Figure 4, indicates that the City’s population has grown rapidly since 1950. (United States Census,
2019)
0
10,000
20,000
30,000
40,000
50,000
60,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Figure 3. City of Bozeman Population 2010-2019
(estimates)
311
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 8
However, despite rapid growth, the City’s poverty rate at 18.6% is significantly higher than the
poverty rates for Gallatin County, Montana and the nation, which are 11.8%, 13% and 9.0%
respectively. (United States Census, 2019)
Median Household Income for residents living in Bozeman is $51,896, lower than the County’s,
median, which is $61,499, slightly lower than the state, at $52,559 and lower than the nation, at
$60,293. (United States Census, 2019)
The following table (Figure 5) shows employment in the City of Bozeman by industry. The
“Educational services, health care and social assistance” sector employs the most people,
followed by “arts, entertainment, and recreation, and accommodation and food services” and
“retail trade”.
FIGURE 5. INDUSTRY BY OCCUPATION FOR THE
CIVILIAN EMPLOYED POPULATION 16 YEARS AND OVER
Estimate Percentage Margin of Error
Civilian employed population 16 years and
over 27,526 100% +/-745
Agriculture, forestry, fishing and hunting,
and mining 474 2% +/-167
Construction 2,603 9% +/-489
Manufacturing 1,699 6% +/-347
Wholesale trade 351 1% +/-132
Retail trade 3,588 13% +/-485
Transportation and warehousing, and
utilities 704 3% +/-211
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2019
Figure 4. City of Bozeman Population 1890-2019
312
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 9
Information 268 1% +/-109
Finance and insurance, and real estate and
rental and leasing 1,316 5% +/-257
Professional, scientific, and management,
and administrative and waste management
services
3,056 11% +/-392
Educational services, and health care and
social assistance 7,274 26% +/-615
Arts, entertainment, and recreation, and
accommodation and food services 4,192 15% +/-495
Other services, except public administration 1,264 5% +/-295
Public administration 737 3% +/-186
(United States Census, 2018)
However, this data does not reflect more recent economic conditions in Montana, which have
been severely affected by the Coronavirus pandemic. According to a May 2020 report prepared
by the Bureau of Economic Research at the University of Montana:
“Using the [US Bureau of Economic Analysis] definition of employment (which
includes payroll employment, self-employed, proprietors and non-employee
contractors and consultants), the Montana economy is now projected to
experience a shortfall of more than 75,000 jobs in 2020 over the entire year,
compared to the pre-Covid-19 projection made in December. This is a loss of
25,000 jobs more than was projected last month. The worsening of the
employment forecast reflects a reduced projection for health care and
transportation employment, and a slower recovery at the end of this year…
Specifically we now estimate: a loss of 75,000 jobs, on average, over the year 2020
for the Montana economy, reflecting worsening prospects for health care,
transportation and agriculture industries. Jobs include payroll jobs as well as self-
employed, business proprietors and non-employee contractor jobs…” (Bureau of
Business and Economic Research University of Montana, 2020)
313
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 10
The Pole Yard site is located within Gallatin County Census Tract 6, shown in the map below
(Figure 6). According to the 2018 American Community Survey, the population within Census
Tract 8 is 2,558 (+/- 221) and there are 1,401 housing units (+/- 76). (United States Census, 2018)
It is important to note that Census Tract 6 has been determined to be eligible for the deployment
of both Federal Low-Income Housing and New Market Tax Credits, both of which provide
significant incentives for reinvestment.
Figure 6. Gallatin County Census Tract 6
(US Census, 2011)
314
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 11
Chapter 2. Establishing Blight
Montana law sets forth the specific factors that characterize blight. In particular, state statute
defines a blighted area as one that substantially impairs or arrests the sound development of
communities or constitutes an economic or social liability. Per §7-15-4206, MCA a blighted area
means “an area that is conducive to ill health, transmission of disease, infant mortality, juvenile
delinquency, and crime, that substantially impairs or arrests the sound growth of the city or its
environs, that retards the provision of housing accommodations, or that constitutes an economic
or social liability or is detrimental or constitutes a menace to the public health, safety, welfare,
and morals in its present condition and use, by reason of:
(a) the substantial physical dilapidation; deterioration; defective construction, material, and
arrangement; or age obsolescence of buildings or improvements, whether residential or
nonresidential;
(b) inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as
determined by competent appraisers on the basis of an examination of the building
standards of the municipality;
(c) inappropriate or mixed uses of land or buildings;
(d) high density of population and overcrowding;
(e) defective or inadequate street layout;
(f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(g) excessive land coverage;
(h) unsanitary or unsafe conditions;
(i) deterioration of site;
(j) diversity of ownership;
(k) tax or special assessment delinquency exceeding the fair value of the land;
(l) defective or unusual conditions of title;
(m) improper subdivision or obsolete platting;
(n) the existence of conditions that endanger life or property by fire or other causes;
or
(o) any combination of the factors listed in this subsection (2).” (Montana Laws)
As discussed below, the area of this review, which includes more than 175 acres, exhibits several
conditions that contribute to blight.
This review identified that the following conditions that contribute to blight, as set forth in §7-
15-4206 MCA, are present within the Pole Yard area:
physical dilapidation, deterioration, age obsolete structures and improvements
inappropriate or mixed uses of land or building
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
315
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 12
the existence of conditions that endanger life or property by fire or other causes
any combination of the factors
The examination of the Pole Yard area revealed the following examples of conditions that
contribute to blight:
(a) the substantial physical dilapidation; deterioration; defective construction, material, and
arrangement; or age obsolescence of buildings or improvements, whether residential or
nonresidential
Conditions relating to this factor are evident in three categories - public structures and
improvements, quasi-public improvements and private structures and improvements. Physical
deterioration of private structures and improvements is evident in the lack of maintenance of
building facades, business signage, landscaping and irrigation, ADA compliance, parking facilities
and paving, storm drainage, and life safety. Defective arrangement of quasi-public
improvements can be seen in overhead electric lines, lack of natural gas lines, lack of or limited
communication lines and services (broadband, dark fiber, etc.). Obsolescence of public
structures and improvements is evident in such things as lack of municipal signage, storm
drainage, street lighting, fire hydrants, streets paving, curbs, gutters, and sidewalks.
Examples of this can be seen in but not limited to:
The lack of public and quasi-public improvements in the roads and services available to
the undeveloped/agricultural land along Cedar Street and Bohart Lane as well as the
material storage yards on Pear Street and North Broadway Avenue
The deterioration of private structures and improvements such as the graffiti on Pear
Street as shown in the picture on the title page
(c) inappropriate or mixed uses of land or buildings
Throughout this area are uses which are not in conformance, accordance or compliance with
current plans, standards or codes. Other conditions relating to this factor include low density or
vacant lands in the urban core, encroachment into the public rights-of-way and lack of
connectivity. The inappropriate uses of land seen in this area show a lack of but are not limited
to such things as economic development support, natural hazard mitigation, brownfield clean-
up and/or attractive nuisance mitigation.
For example, the Pole Yard area is largely vacant and underutilized. Vacant land in the urban core
results in lower land values and less efficient use of public infrastructure and services. Its
value is further diminished by lack of or poor access. In addition, much of the area is
characterized by land uses that encroach into the public rights-of-way as shown in Figure 7,
below.
316
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 13
(e) defective or inadequate street layout
The area has limited transportation infrastructure. The area is characterized by dead-end streets
and sidewalks, and unpaved or incomplete streets. It lacks street lighting, sidewalks, curb/gutters
and storm drainage facilities. The Bozeman Municipal Code requires that streets shall be
provided in accordance with the adopted growth policy and/or transportation plan. The future
arrangement, type, extent, width, grade and location of all streets shall be considered in relation
to existing and planned streets topographical conditions, public convenience and safety, and the
planned uses to be served by such streets. This defective and inadequate street layout in this
area shows a lack of but is not limited to connectivity of vehicular, pedestrian and other modes
of transportation. (Figure 8)
Examples of these are:
Streets without paving, curbs, gutters, sidewalks or storm drains including Cedar Street
and Bohart Lane
Streets without curbs, gutters and sidewalks including L Street and North Broadway
Avenue
Streets without sidewalks including Bond Street and Gold Avenue
Inadequate street layout with limited connectivity due to dead end streets including East
Oak/Birch Street, Cedar Street, and Bohart Lane
Lack of continuity in the Story Mill Spur, Oak and North Side/Village Trails
Figure 7. Along Plum Street
317
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 14
(f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness
Lots in the area are not generally in conformance, accordance or compliance with current plans,
standards or codes.
Examples of this can be seen in:
Parking lots such as the one on North Broadway Avenue, shown below in Figure 9, have
no controlled access or egress. As this picture indicates, cars must back out of a lot into
the public right of way. These poorly designed lots are difficult to maneuver and create
hazards for pedestrians and other vehicles.
Large lots, such as those parcels of 33, 24 and 20 acres found along Cedar Street and
Bohart Lane, which have been created for other purposes are too big to be useful for
development to urban standards and need to be subdivided. Other lots are too small to
be useful and may need to be aggregated.
Poor access and geographic isolation – the location of more than 90 acres between
Interstate 90 and the railroad right-of-way substantially impairs or arrests the sound
growth of the area. The limitation created by the single access from L Street is further
impaired by the at-grade railroad crossing. The lack of connectivity and guaranteed
emergency access needs to be addressed, potentially by an East Oak/Birch Street
extension railroad overpass.
Figure 8. Looking North along Cedar Street
318
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 15
(h) unsanitary or unsafe conditions
Conditions relating to this factor are evident in three categories including dangerous and
attractive nuisances, lack of municipal infrastructure and conditions related to Superfund
designation.
Dangerous and attractive nuisances can include but are not limited to uncontrolled accesses,
deteriorating improvements, barb wire fencing, inadequate storm drainage and broken
sidewalks. The existence of outdated and rural-type services, as well as discarded materials or
other attractive nuisances can result in conditions that endanger safety. In addition, there are
natural hazards, such as floodplains and wetlands that must be mitigated.
Examples of these include barbed wire fencing adjacent to Cedar Street and the unprotected
attractive nuisance of Bozeman Creek or the East Gallatin River adjacent to Bohart Lane. (See
picture on title page of this report.)
The area has limited municipal infrastructure. Future development will require the installation
of complete municipal water and sanitary sewer system facilities to serve any planned
development. Municipal storm sewer system facilities may also be required by the city.
Examples of municipal infrastructure improvements needed include:
Figure 9. North Broadway Avenue
319
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 16
The Lyman Tank and Transmission Main Construction, Pear St. Booster Station Upgrade,
the Front Street Interceptor, and Extension 30 Inch - Little Bridger Creek and Southern
Gallatin River Basin - Frontage Rd Connect to Bohart Ln to Bond St. (City of Bozeman
Geographic Information System, n.d.)
A grade separated railroad crossing that facilitates guaranteed access to the area for fire,
police, and other first responders
The Idaho Pole property has been designated a Superfund site. (Figure 10).
For example, according to the
Environmental Protection
Agency’s web site, in order
to protect human health,
response actions have been
designed to prevent human
exposure to contaminated
soils and groundwater
through treatment,
engineering controls (such
as capping) and institutional
controls to prevent contact.
To protect the environment,
sources of contamination have
been removed and
contaminated groundwater has
been treated and cleaned up
through an enhanced in-situ
biodegradation process.
A Controlled Groundwater Use Area (CGA) was issued by the Montana Division of Natural
Resources in 2001. This CGA restricts use of groundwater beneath the site for any purpose,
except as provided in the remedial action or as otherwise authorized by EPA and Montana
Department of Environmental Quality (MDEQ).
Areas where the treated soil was placed are restricted use areas and a survey has been completed
to identify these areas. The IPC filed a Notice of Institutional Control (deed restriction) with the
Gallatin County Clerk and Recorder. (United States Environmental Protection Agency, n.d.)
(m) improper subdivision or obsolete platting
The area was platted in 1883 as part of the Northern Pacific Addition to Bozeman. However, the
lot pattern established in 1883 is not optimized for current urban development. It consists of
large parcels intermixed with odd sized and shaped lots, many leftover remainders from the
Figure 10. Idaho Pole Superfund Site
(Environmental Protection Agency Photo)
320
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 17
highway and railroad rights-of-way. These lots are obsolete due to lack of conformance,
accordance or compliance with current plans, standards or codes.
Examples include parcels of 33, 24 and 20 acres found along Cedar Street and Bohart Lane.
(n) the existence of conditions that endanger life or property by fire or other causes
In addition to the lack of guaranteed emergency access, a connected transportation network and
complete municipal services, other conditions that endanger life or property include the at-grade
railroad crossing and use of barbed wire to fence portions of the property. Other conditions may
include but are not limited to buildings or properties that may not meet life safety standards such
as fire sprinklers, fire hydrants and ADA compliance.
Examples include:
The at-grade railroad crossing lacks safety feature such as wooden barriers with flashing
lights, technology to vehicle GPS, sensors to notify train
The lack of connectivity of an above or below grade railroad crossing such as the East
Oak/Birch Street extension railroad overpass
(o) any combination of the factors listed in this subsection (2) of §7-15-4206 MCA.
Any combination of factors identified 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. Other conditions contributing to blight will be identified and addressed
over time.
Examples of a combination of factors can be associated with such things as but not limited to
noise and light pollution, vandalism (graffiti and other defacement of property) and homeless
camps.
Conclusion
In §7-15-4210 MCA, a municipality must find that at least three factors contributing to blight be
identified in order to establish an urban renewal district. Based on the information presented in
this Review and Findings of Conditions that Contribute to Blight, a finding can be made that the
Pole Yard area exhibits at least three attributes, which can be described as blighted per Montana
Statute, and therefore the area is eligible for inclusion in an urban renewal district.
321
Pole Yard Area – Review and Findings of Conditions that Contribute to Blight – August 2020
Page 18
References
ARCGIS.Com. (2019, October 23). Montana Population Projection 2001 to 2060 from REMI
2019. Retrieved June 2020, from
https://www.arcgis.com/home/webmap/viewer.html?useExisting=1&layers=ae5235698
5984dbb8495b421c265a088&layerId=1
Bureau of Business and Economic Research University of Montana. (2020, May). The Economic
Impacts of Covid-19 in Montana Revised Analysis. Retrieved July 2020, from Bureau of
Business and Economic Resarch: http://www.bber.umt.edu/pubs/econ/CovidStudy.pdf
City of Bozeman. (2020, March 17). Bozeman Montana 2019 Community Plan. Retrieved from
City of Bozeman: https://www.bozeman.net/city-projects/bozeman-community-plan-
update
City of Bozeman Geographic Information System. (n.d.). Retrieved Ju.y 2020, from
Infrastructure Viewer: (Source:
https://gisweb.bozeman.net/Html5Viewer/?viewer=infrastructure)
United States Census. (2018). ACS DEMOGRAPHIC AND HOUSING ESTIMATES. Retrieved June
2020, from Explore Census Data:
https://data.census.gov/cedsci/?g=0100000US&tid=ACSDP1Y2018.DP05
United States Census. (2018). INDUSTRY BY OCCUPATION FOR THE CIVILIAN EMPLOYED
POPULATION 16 YEARS AND OVER. Retrieved June 2020, from United States Census:
https://data.census.gov/cedsci/table?q=S2405&tid=ACSST5Y2018.S2405&hidePreview=
true&g=1600000US3008950&vintage=2018
United States Census. (2019, July 1). Census QuickFacts. Retrieved June 2020, from
https://www.census.gov/quickfacts/fact/table/US/PST045219
United States Environmental Protection Agency. (2020, February 3). EPA deletes portion of
Idaho Pole Company site in Gallatin County, Montana from Superfund list. Retrieved
June 2020, from United States Environmental Protection Agency:
https://www.epa.gov/newsreleases/epa-deletes-portion-idaho-pole-company-site-
gallatin-county-montana-superfund-list
United States Environmental Protection Agency. (n.d.). IDAHO POLE CO. BOZEMAN, MT Cleanup
Activities. Retrieved June 2020, from Cleanup Activities:
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup
&id=0800379#bkground
US Census. (2011, May 4).
322