HomeMy WebLinkAboutG.1b Pole Yard Urban Renewal Plan 09-29-20
Pole Yard
Urban Renewal District Plan – 2020
Figure 1. Structure on Cedar Street
Acknowledgements
Bozeman City Commission
Bozeman City Planning Board
Bozeman GIS Department
Bozeman Economic Development
Bozeman Community Engagement
Consultants:
Janet Cornish, CDS of Montana
Lanette Windemaker, AICP
Table of Contents
Chapter 1. Introduction and Overview ................................................................ 1
Chapter 2. Description of the Pole Yard Urban Renewal District ........................ 10
Chapter 3. Documenting Blight .......................................................................... 17
Chapter 4. Planning Consistency ........................................................................ 25
Chapter 5. Goals and Strategies of the Urban Renewal District Plan ................. 34
Chapter 6. Project Evaluation Criteria ................................................................ 38
Chapter 7. Implementation ............................................................................... 42
Chapter 8. Urban Renewal Program Evaluation and Plan Amendments ............ 54
References ......................................................................................................... 55
Appendix A. Public Comment .......................................................................... A-1
Appendix B. Property Ownership Data ............................................................ B-1
Pole Yard Urban Renewal District Plan – 2020 Page 1
Chapter 1. Introduction and Overview
Introduction
The City of Bozeman is embarking on a program to improve the overall economic health of the
community through the revitalization of an area in the northeast quadrant of Bozeman. Renewal
efforts will rely on both public and private participation, thoughtful planning and the efficient use
of resources. Establishing the Pole Yard URD will enable the City of Bozeman to generate an
urban neighborhood with thriving commerce through:
• Investment in public infrastructure,
• Retention and recruitment of commerce, and
• Leveraging limited resources
The State of Montana, in its urban renewal statutes, provides the statutory authority to create
local programs to address conditions that may contribute to blight, which adversely affect
economic health within municipalities. The City of Bozeman is creating this URD in accordance
with §7-15-4201 et seq. of the Montana Code Annotated (MCA). The plan for this district includes
a Tax Increment Financing (TIF) provision to help fund renewal efforts. The base year for the
purposes of calculating each year’s increment will be January 1st, 2020. This Plan will guide
revitalization activities in addressing critical issues. As stated in §7-15-4209, MCA, a local
government “may formulate a workable program for utilizing appropriate private and public
resources:
(a) to eliminate and prevent the development or spread of blighted areas;
(b) to encourage needed urban rehabilitation;
(c) to provide for the redevelopment of such areas; or
(d) to undertake such of the aforesaid activities or other feasible municipal
activities as may be suitably employed to achieve the objectives of such
workable program”
In addition, according to §7-15-4210 MCA, in order to utilize the provisions of the Montana urban
renewal statutes, the governing body must first adopt a resolution of necessity. The resolution
must find at least three conditions that contribute to blight exist in the “area or a part of the
area.” On September 15th, 2020, the Bozeman City Commission passed Resolution No. 5145,
which adopted findings regarding the existence of conditions that contribute to blight within the
Pole Yard in Bozeman’s northeast quadrant. In doing so, the Commission declared “that blighted
areas exist within the municipality in and near the Pole Yard 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.”
The Resolution noted eight conditions that contribute to blight as defined in the Montana Urban
Renewal Law, §7-15-4206 MCA in the Pole Yard URD, which include the following, described in
more detail in Chapter 3:
Pole Yard Urban Renewal District Plan – 2020 Page 2
• 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
• unsanitary or unsafe conditions
• improper subdivision or obsolete platting
• the existence of conditions that endanger life or property by fire or other
• any combination of the factors listed
The Purpose and Intent of the Pole Yard Urban Renewal District and Plan
The creation of the URD in the Pole Yard enables the City of Bozeman to eliminate conditions
that contribute to blight substantially impairing sound growth of the City through investments in
public infrastructure and efficient delivery of public services. This is in keeping with the Bozeman
Strategic Plan, adopted by the Bozeman City Commission on April 16th, 2018. Vision Statement
#2 of the Strategic Plan is for – “An Innovative Economy. We grow a diversified and innovative
economy leveraging our natural amenities, skilled and creative people, and educational
resources to generate economic opportunities.” The Strategic Plan identifies the following:
2.1 Business Growth - Support retention and growth of both the traded and local
business sectors while welcoming and encouraging new and existing
businesses, in coordination with the Economic Development Plan.
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.
2.3 Workforce Development - Support education and workforce development
initiatives to improve the skills of our citizens. (City of Bozeman, 2018)
In addition, the Vision Statement #4 of the Strategic Plan state – “A Well-Planned City. We
consistently improve our community's quality of life as it grows and changes, honoring our sense
of place and the "Bozeman feel" as we plan for a livable, affordable, more connected city.” The
Strategic Plan identifies the following:
4.3 Strategic Infrastructure Choices - Prioritize long-term investment and
maintenance for existing and new infrastructure.
Secondly, in 2016, the City of Bozeman adopted an update to its Economic Development Strategy.
The creation of an urban renewal plan is in keeping with the overall intent of the Strategy. In
Pole Yard Urban Renewal District Plan – 2020 Page 3
particular, the intent of the Pole Yard Renewal District Plan is to enable the City of Bozeman to
address blighted conditions, in order to facilitate mid- and high wage job growth and improve
overall economic strength and diversification. The Plan will enable community stakeholders to
work together in support of the primary tenets of the City’s economic development strategy,
which include:
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.
Finally, this effort also 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.
✓ 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)
The intent of the Pole Yard URD Plan (Plan) is to present a series of goals and strategies that will
assist the local government in focusing its limited resources efficiently. The Plan is intended to
support community stakeholders as they work together to address blighted conditions through
a series of urban renewal programs and projects to:
• Renew economic vitality and foster a cohesive neighborhood through
improved connectivity and the strategic investment in public infrastructure
within the Pole Yard URD
Pole Yard Urban Renewal District Plan – 2020 Page 4
• Enhance opportunities for private investment to generate jobs and new
taxable value
This Plan provides a context for activities that will be undertaken by a variety of public and private
entities. It recommends a series of programs and types of projects that may be undertaken by
the City of Bozeman to encourage investment in the district, which will in turn address conditions
that have diminished economic potential. The revitalization challenges will be significant, in light
of global shifts in economic development patterns.
This Plan is adopted by ordinance, which will create the Pole Yard URD. This Plan includes a
provision to use TIF, as funds become available, in addition to other resources in implementing
its goals and strategies.
Tax Increment Financing
As stated above, the City of Bozeman will utilize Tax Increment Financing (TIF) in conjunction with
other funding sources to help support urban renewal activities within the Pole Yard URD. The
base year for the purposes of measuring any incremental increases in the taxable value of
property within the district boundaries will be 2020.
TIF is a state authorized, locally driven funding mechanism that allows cities and counties to direct
property tax dollars that accrue from new development, in a specifically designated urban
renewal or targeted economic development district, to community and economic development
activities within that district. In Montana, TIF is authorized in Parts §7-15-4201 and 4301, et Seq.
MCA, the State’s Urban Renewal Law.
TIF is used in districts that are characterized by conditions that contribute to blight (URDs) or that
have infrastructure deficiencies (targeted economic development districts or TEDDs), that result
in limiting or prohibiting new investment. A base year is established from which "incremental"
increases in property taxable values are measured. Virtually all the resulting new property tax
dollars (except for the six-mill state-wide university levy and certain voted levies) can be directed
to support redevelopment and economic revitalization activities within the district in which they
are generated.
Taxpayers located within a district where TIF is in effect pay the same amount 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, streetscapes, parks and landscaping, water and sewer lines and for
Pole Yard Urban Renewal District Plan – 2020 Page 5
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.
Figure 2. Tax Increment Financing Schematic
Consultation with Affected Local Taxing Jurisdictions
The 2017, Montana Legislature amended the state’s urban renewal law to specifically require a
local governing body that intends to create a URD with a TIF provision or modify a URD to include
a TIF provision, or to issue TIF bonds, to confer with the affected school taxing jurisdictions that
levy mills within the jurisdiction that includes the district. The requirement, which is included in
§7-15-4221 and 4282, MCA, calls for the governing body that is establishing the district to provide
these jurisdictions with the opportunity to meet and consult at a publicly noticed meeting. The
City of Bozeman has worked closely with the Bozeman School District and the Gallatin County
Commission regarding the creation of the Pole Yard URD and will continue to do so.
The City of Bozeman met with the County Commission on September 21st, 2020 and with the
School District on September 14th, 2020 and mailed both a letter noticing the opportunity to meet
and consult at the public hearing on the creation of the URD, held on October 27th, 2020.
Pole Yard Urban Renewal District Plan – 2020 Page 6
Community Engagement
In addition to working with and informing the affected taxing jurisdictions, the City of Bozeman
sent letters to the property owners within the area informing them of the review for conditions
that contribute to blight and the potential of inclusion in an urban renewal district.
City staff, as well as, the consultant has had numerous discussions with property owners and
potential developers in the area.
The City of Bozeman held a community engagement Webex meeting on September 9th, 2020, at
6 pm. Numerous questions and comments were received.
Notice has been published for all public meetings/hearings before the Bozeman City Commission
and the Bozeman City Planning Board.
A letter noticing the public hearing before the Bozeman City Commission on the ordinance to
adopt the Pole Yard Urban Renewal District and Plan was sent to all property owners in the
district listed on the Gallatin County tax rolls.
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.
Pole Yard Urban Renewal District Plan – 2020 Page 7
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
required cleanup activities are complete in the deleted area. (United States Environmental
Protection Agency, 2020)
Current 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)
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)
Pole Yard Urban Renewal District Plan – 2020 Page 8
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)
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
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
Pole Yard Urban Renewal District Plan – 2020 Page 9
Wholesale trade 351 1% +/-132
Retail trade 3,588 13% +/-485
Transportation and
warehousing, and utilities 704 3% +/-211
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)
Pole Yard Urban Renewal District Plan – 2020 Page 10
Chapter 2. Description of the Pole Yard Urban Renewal District
Area Description
The Pole Yard Urban Renewal District (URD) Plan applies to an area of 273.3 acres including rights-
of-way, and parcels are 149.1 acres of that total, located within the northeast quadrant of the
City of Bozeman in portions of Sections 5, 6, 7, and 8, Township 2 South, Range 6 East, PMM, City
of Bozeman, Gallatin County, Montana. The core area is located between the Interstate 90 and
railroad rights-of-way on both sides of L Street. Beyond the core, the western extent of the URD
is North Rouse Avenue, the eastern extent ends before Big Gulch Drive, the northern extent is
Bond Street, and the southern extent is south of the intersection of East Peach/Avocado Street
on the east and 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 (Figure 6), 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.
Figure 6. A Storage Yard on Pear Street
General Description
The Pole Yard Urban Renewal District (URD) Plan applies to an area encompassing 273.3 acres
including rights-of-way, and parcels are 149.1 acres of that total, located within the northeast
quadrant of the City of Bozeman in portions of portions of the West ½ of the Southwest ¼ of
Section 5, the East ½ of Section 6, the East ½ of the Northeast ¼ of Section 7, and the Northwest
¼ of Section 8, Township 2 South, Range 6 East, PMM, City of Bozeman, Gallatin County, Montana.
Boundary Description of the Urban Renewal District
Beginning at the intersection of North Rouse Avenue and Bond Street;
Pole Yard Urban Renewal District Plan – 2020 Page 11
Thence counterclockwise;
thence southerly along North Rouse Avenue to the intersection with East Juniper Street;
thence easterly along East Juniper Street to the intersection with North Church Avenue;
thence southerly along North Church Avenue to the intersection with East Tamarack Street;
thence easterly along East Tamarack Street to the intersection with North Wallace Avenue;
thence northerly along North Wallace Avenue to the intersection with Front Street;
thence easterly to the railroad right-of-way;
thence southeasterly along the railroad right-of-way approximately XXXX feet;
thence southwesterly to the intersection of Front Street and Plum Avenue;
thence southwesterly along Plum Avenue to the intersection with East Peach/Avocado
Street(s);
thence southeasterly along East Avocado Street to the intersection with North Broadway
Avenue;
thence southwesterly along North Broadway Avenue to the southwest corner of Lot 1-3,
Block 41, Northern Pacific Addition;
thence southeasterly along the southern boundary of Lot 1-3, Block 41, Northern Pacific
Addition to the boundary of Geocode: 06-0799-07-1-40-93-0000 (described as Lot 17
Remainder, Block: 46, Northern Pacific Addition (also described by Montana Cadastral as
Northern Pacific Add, S07, T02 S, R06 E, Lot 13 - 15, Plat C-23 & Abandoned C M St P & P
Rr Northern Pacific Add Plus Pt Vac Meadow Ave));
thence counterclockwise around the perimeter of Geocode: 06-0799-07-1-40-93-0000
(described above) to Montana Rail Link right-of-way, Geocode: 06-0799-07-1-22-01-
2000;
thence northeasterly along the railroad right-of-way to the Front Street right-of-way;
thence northeasterly across the Front Street right-of-way to the railroad right-of-way;
thence southeasterly along the railroad right-of-way to the Interstate 90 right-of-way;
thence northwesterly along the Interstate 90 right-of-way approximately XXXX feet;
thence northeasterly across the Bohart Lane right-of-way to the southern corner of the
property owned by Northwestern Energy, Geocode: 06-0799-05-3-01-01-0000
(described as Taxcode: RGH51909, Northern Pacific Addition);
thence counterclockwise around the perimeter of Geocode: 06-0799-05-3-01-01-0000 to
the property line of Lot 9, Block 90, Northern Pacific Addition;
thence northeasterly along the property line of Lot 9, Block 90, Northern Pacific Addition to
the east-west half-section line of Section 5, T2S, R6E;
thence westerly along the east-west half-section line of Section 5, T2S, R6E;
thence continuing westerly along the east-west half-section line of Section 6, T2S, R6E
crossing the L Street right-of-way, following East Oak Street to the Montana Rail Link
railroad right-of-way bike path being a portion of the Story Mill Spur; thence
northeasterly along the railroad right-of-way approximately XXXX feet to northern
property line of Geocode:06-0799-06-1-01-60-0000 (a tract described as Northeast
Annex, S06, T2S, R6E, acres 10.232, TR in S2NE4 COS 893);
thence westerly along the northern property line of Geocode:06-0799-06-1-01-60-0000 to
the northeastern corner of Lot 4, Bomont Center Subdivision;
Pole Yard Urban Renewal District Plan – 2020 Page 12
thence continuing westerly along the northern property line of Lot 4, Bomont Center
Subdivision to Gold Avenue;
thence southerly along Gold Avenue to the intersection with Bond Street;
thence westerly along Bond Street to the point of beginning at North Rouse Avenue.
Less any portion of Geocode: 06-0799-08-2-59-01-0000 lying southwest of the Interstate 90
right-of-way.
Including all adjacent rights-of-ways. Along with and subject to all easements of record or
apparent on the ground. The district encompasses 273.3 acres including rights-of-way, and
parcels are 149.1 acres of the total. End of boundary description.
Figure 7, below, is a map of the boundary of the Pole Yard URD.
Pole Yard Urban Renewal District Plan – 2020 Page 13
Figure 7. Pole Yard Urban Renewal District
Pole Yard Urban Renewal District Plan – 2020 Page 14
The Pole Yard URD is located within Gallatin County Census Tract 6, shown in the map below
(Figure 8). 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 8. Gallatin County Census Tract 6 (US Census, 2011)
Montana Department of Revenue Assessment Codes:
A list of parcels and properties within the district was obtained from the Montana Department
of Revenue (DOR) cadastral records to help meet the requirements for mail notice and DOR
recognition of the district. The compilation of the list of parcels and properties, see Appendix B,
included identifying geocodes and the following information as appropriate.
• Owners’ names and mailing addresses of all properties with geocodes in the district.
• All centrally assessed properties and identifying information within the district
including an estimate of the number of miles of railroad tracks.
• Personal property within the district and the corresponding assessor codes
• Mobile homes/manufactured homes not attached to real property within the district
and their assessor codes
• Businesses that lease property from tax exempt entities and pay a beneficial use tax
Centrally Assessed
The following centrally assessed property was identified in this area of the City of Bozeman.
There is approximately 1.35 linear miles of Burlington Northern / Montana Rail Link right-of-way
within the Pole Yard Urban Renewal District.
Pole Yard Urban Renewal District Plan – 2020 Page 15
06-0799-06-4-41-37-2000
Montana Rail Link
Mail to Washington Corp
PO Box 16630
Missoula, MT 59808-6630
06-0799-08-2-15-01-0000
Montana Rail Link Inc
PO Box 16390
Missoula, MT 59808-6390
Other addresses:
Montana Rail Link
Mail to Real Estate Dept.
PO BOX 16624
Missoula, MT 59808-6624
Burlington Northern Railroad Co
Property Tax Dept.
PO Box 961089
Fort Worth, TX 76161-0089
There is about 0.9 miles “Hazardous Liquid” pipeline within the Pole Yard Urban Renewal
District.
Yellowstone Pipeline Co
General Delivery
Bozeman, MT 59715
There is a substation in Section 5, T 2 S, R 6 E, described as Taxcode: RGH51909, Northern
Pacific Addition.
06-0799-05-3-01-01-0000
Northwestern Energy
40 E Broadway St
Butte, MT 59701-9350
Mobile Homes Not Attached to Real Property
There were not mobile homes not attached to real property identified within the boundary.
This information is intended to help document notice requirements and assist the Montana
Department of Revenue with recognition. The veracity of this information, obtained from the
Pole Yard Urban Renewal District Plan – 2020 Page 16
Montana Department of Revenue cadastral records, shall not affect, impair or nullify this plan or
the adoption process for this Urban Renewal District.
Taxing Jurisdictions
The City of Bozeman sent letters to the affected taxing jurisdictions noticing them of the
opportunity to meet and consult at the public hearing on the creation of the URD, held on
October 27th, 2020. Letters were sent to the following addresses:
Bozeman Public Schools
Bob Conners, Superintendent
404 West Main Street
Bozeman MT 59715
Bozeman Public Schools
Steve Johnson, Operations
404 West Main Street
Bozeman MT 59715
Bozeman Public Schools
Mike Waterman, Business Services
404 West Main Street
Bozeman MT 59715
Gallatin County
Board of County Commissioners
311 West Main, Room 306
Bozeman, MT 59715
Gallatin County
Jennifer Blossom, Treasurer
311 West Main, Room 103
Bozeman, MT 59715
Gallatin County
Jim Doar, County Administrator
311 West Main, Room 304
Bozeman, MT 59715
Gallatin County
Justine Swanson, Finance Director
311 West Main, Room 304A
Bozeman, MT 59715
Pole Yard Urban Renewal District Plan – 2020 Page 17
Chapter 3. Documenting Conditions that Contribute to 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 encompasses 273.3 acres including rights-of-
way, and parcels are 149.1 acres of the total, 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 URD:
• physical dilapidation, deterioration, age obsolete structures and
improvements
• inappropriate or mixed uses of land or building
• defective or inadequate street layout
Pole Yard Urban Renewal District Plan – 2020 Page 18
• 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
• any combination of the factors
The examination of the 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
✓ 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 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 9,
below.
Pole Yard Urban Renewal District Plan – 2020 Page 19
Figure 9. View of East Juniper Street
(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 City of Bozeman Engineers’ development review memo
indicates that this area has both collector and local streets, and that all of the streets not
constructed to the appropriate street standard per the City of Bozeman Design Standards and
Specifications Policy and Bozeman Transportation Master 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 10)
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
Pole Yard Urban Renewal District Plan – 2020 Page 20
Figure 10. Looking North along Cedar Street
(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 areas such as the one on Gold Avenue shown below in Figure 11, 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 24 and 20 acres found along Cedar Street, 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.
Pole Yard Urban Renewal District Plan – 2020 Page 21
Figure 11. Gold Avenue
(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
✓ 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 recently updated Federal Emergency Management Agency (FEMA) Flood Insurance
Rate Maps (FIRMs) and Flood Insurance Study (FIS) will be officially adopted into local
floodplain regulations (Division 38.600 BMC) within the next 12 months. These maps will
be used for project planning purposes given the likelihood that development will occur
after the new maps are adopted. These updated maps place a portion of the proposed
TEDD area into the floodway and 100-year floodplain. BMC 38.600.240.A.1 prohibits new
construction of any residential, commercial or industrial structure in the floodway.
Compliance options are limited to siting all building improvements outside of the
floodway, or seeking and receiving official FEMA revision of the floodway.
Pole Yard Urban Renewal District Plan – 2020 Page 22
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:
✓ 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 City of Bozeman Wastewater Collection Facilities Plan calls for a 30-inch diameter
sanitary sewer main to be installed from Rouse Avenue at the intersection with Bond
Street, extending down Bond Street and Gold Avenue to L Street and continuing to the
southeast on Bohart Lane
The Idaho Pole property has been designated a Superfund site. (Figure 12).
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).
Figure 12. Idaho Pole Superfund Site
(Environmental Protection Agency Photo)
Pole Yard Urban Renewal District Plan – 2020 Page 23
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
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 24 and 20 acres found along Cedar Street.
(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 as shown below in Figures 13 and 14.
Pole Yard Urban Renewal District Plan – 2020 Page 24
(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 URD 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.
Figures 13 and 14. East Oak Street/East Birch Street Dead End at Railroad Right of Way
Pole Yard Urban Renewal District Plan – 2020 Page 25
Chapter 4. Planning Consistency with the Bozeman Community Plan
This comprehensive development plan must conform to the Bozeman Community Plan per §7-
15-4213, MCA. As stated in §7-15-4213, MCA prior to its approval of an urban renewal project,
the local governing body shall submit the urban renewal project plan to the planning commission
of the municipality for review and recommendations as to its conformity with the growth policy
and the planning commission shall submit its written recommendations to the local governing
body. To comply with state statute, this Pole Yard Urban Renewal District Plan must be reviewed
by the Bozeman City Planning Board and found to be in conformance with the Bozeman
Community Plan.
The efforts of local Planning Boards to prepare land use recommendations for the Bozeman area
began in 1955, when the first municipal Planning Board was formed. In April of 1958, S.R. DeBoer
& Company (planning consultants from Denver, CO) prepared Bozeman’s first Master Plan. It
included studies on transportation, street planning, zoning districts, parks and recreation,
schools, park roads, and sanitation and health.
The Bozeman Community Plan was duly adopted as the current growth policy by the Bozeman
City Commission by City of Bozeman Resolution No. 4163, dated June 1, 2009. The City of
Bozeman is currently in the process of updating and rewriting the growth policy. On August 17,
2020, the City Planning Board forwarded their positive recommendation on the draft growth
policy to the City Commission. As this new version of the growth policy will not be adopted by
the City Commission prior to the end of 2020, the Pole Yard Urban Renewal District Plan has been
reviewed under the 2009 Bozeman Community Plan.
In addition, Bozeman has completed many infrastructure and topic plans that have some
influence on the area included under the Pole Yard Urban Renewal District Plan. An applicable
plan is the 2012 Bozeman Creek Enhancement Plan.
An applicable topic plan is the City’s adopted 2016 Economic Development Strategy, which
affirms the Commission’s economic development priorities by facilitating mid- to high wage job
growth and industry diversification. Community partners work together in support of the
primary tenets of the strategy:
1. Support retention and growth of existing businesses, while welcoming and
encouraging new businesses; and
2. Invest in infrastructure to drive economic development; and
3. Support education and workforce development initiatives to provide
businesses with qualified workers. (City of Bozeman, 2016)
An evaluation of conformance and accordance must consider the Bozeman Community Plan
document as a whole and a combination of all factors including such as relevant goals, objectives,
implementation, and land use designations. Plans are not required to address all the goals and
Pole Yard Urban Renewal District Plan – 2020 Page 26
objectives, but they should not contradict aspects of the Bozeman Community Plan. On October
5th, 2020, the City Planning Board reviewed the Pole Yard Urban Renewal District Plan and found
it to be in conformance with the Bozeman Community Plan per statutory requirements.
Growth Policy Review
The Bozeman Community Plan was reviewed to determine whether the growth policy adequately
supports Pole Yard Urban Renewal District Plan as an urban renewal project (per §7-15-4213,
MCA). The Bozeman Community Plan has been found to include:
• Goals and objectives that support urban renewal, economic development, and
development of infrastructure that encourages urban renewal and economic
development in the community.
• Policies and actions, including tax increment financing, that can be
implemented to achieve the goals and objectives stated in the Bozeman
Community Plan.
• Future land uses, identified through maps and/or described in the text, that
will execute the growth policy.
Goals and Objectives
A review of the overall goals and objectives of the growth policy finds no conflicts with an urban
renewal project/plan in the area. The specific goals and objectives found in the Bozeman
Community Plan, selected from the compilation of general goals and objectives, that further
urban renewal and promote economic development for the elimination of conditions that
contribute to blight, deliver efficient public services, facilitate job growth and economic strength
in Bozeman as described in purpose and intent of the Pole Yard Urban Renewal District Plan are
as follows:
➢ Land Use Objective LU-4.4: Review and revise the City’s regulations to
encourage and support sustainability in new construction and rehabilitation
or redevelopment of existing areas.
➢ Land Use Objective LU-4.8: Promote the efficient use of water, energy, land,
human resources, and natural resources and protect water supply quantity
and quality.
➢ Community Objective C-1.3: Support compatible infill within the existing area
of the City rather than developing land requiring expansion of the City’s area.
➢ Community Objective C-2.1.: Require adequate and efficient circulation in all
subdivisions and site plans and provide connectivity between developments
and major destinations for both the pedestrians and vehicles, including human
powered vehicles.
➢ Community Objective C-6.3: Encourage and support energy conservation and
efficiency in all aspects of development.
Pole Yard Urban Renewal District Plan – 2020 Page 27
➢ Economic Development Objective ED-1.1: Support business creation,
retention, and expansion. Emphasize small businesses, ‘green’ businesses, and
e-businesses.
➢ Economic Development Objective ED-1.2: Coordinate the provision of
infrastructure necessary to support economic development.
➢ Economic Development Objective ED-1.4: Encourage ongoing improvements
in private infrastructure systems, such as telecommunications, and promote
state-of- the-art facilities.
➢ Economic Development Objective ED-1.5: Encourage, through the use of
incentives, the development of business and industry that provides wages that
are proportionate to, or are higher than, the cost of living and provide options
to expand skills and opportunities for Bozeman’s workforce.
➢ Economic Development Objective ED-1.6: Utilize the City’s economic
development and urban renewal plans to stimulate investment and maintain
a health and vibrant economy.
➢ Economic Development Objective ED-1.8: Leverage local, state, and federal
economic development resources to enhance economic growth in Bozeman.
➢ Economic Development Objective ED-2.4: Foster a diverse economy that will
protect the economic climate for existing businesses and maintain
opportunities for business expansion.
➢ Economic Development Objective ED-2.9: Create a more collaborative and
effective working partnership between the business community and the City
of Bozeman and effectively manage the City of Bozeman’s regulatory
environment to accomplish goals without hindering business expansion and
economic growth.
➢ Recreation Goal R-3: Promote business growth and economic development.
➢ Transportation Objective T-1.4: Ensure that adequate interconnections are
made throughout the transportation system to ensure a variety of alternatives
for trip routing and reduce total travel distance.
➢ Transportation Objective T-2.4: Seek and provide adequate funding to
improve and maintain the functionality of all elements of the transportation
system.
➢ Public Services Goal PS-3: Establish regular and sufficient funding sources to
acquire, develop, and maintain public services, and meet the community’s
needs.
➢ Regional Coordination and Cooperation Objective RCC-1.4: Encourage
development within Bozeman so that services can efficiently be provided.
The accordance with the Montana Urban Renewal statute, an urban renewal district plan, such
as the Pole Yard Urban Renewal District Plan, has, as its core mission, to provide long term
economic stability and to use planning and development of public infrastructure as tools for well
managed growth. This mission is in conformance with the goals and objectives of the Bozeman
Community Plan. In keeping with this mission, the goals of the Pole Yard Urban Renewal District
as stated in the Urban Renewal District Plan are:
Pole Yard Urban Renewal District Plan – 2020 Page 28
GOAL 1. Promote Innovative Economic Development
GOAL 2. Enable Enhanced Connectivity and Mobility
GOAL 3. Invest in Efficient Delivery of Public Infrastructure
GOAL 4. Foster Urban Neighborhood Coherency
Implementation Policies and Actions
The Bozeman Community Plan establishes a foundation for programs as well as more detailed
plans, such as urban renewal district plans with tax increment financing programs.
Implementation strategies and tools found in Table 16-1 Implementation Policies and Actions of
the Bozeman Community Plan that are applicable to the Pole Yard Urban Renewal District Plan
and demonstrate conformance of the plan to the growth policy are paraphrased as follows:
3. Research and implement incentives and regulations and publicize existing
incentives, in accordance with the Bozeman Community Plan, that encourage
development within the City of Bozeman.
3b. Provides high quality and cost-effective public services
9. Encourages infill and redevelopment.
11. Continues programs which support adaptive reuse and reinvestment
11c. Continues support of multi-modal and shared transportation facilities
12c. Continues support for multi-modal transportation, land use efficiency, and
other sustainable practices
13. Furthers awareness of the interrelationships of economic, environmental, and
community issues
14. Coordinates adequate infrastructure
16c. Protect safety and avoid blight.
21a. Uses and publicize incentives, such as, but not limited to, public infrastructure
funding support and tax abatement, to encourage commercial and residential
development or redevelopment of identified infill areas, including brownfields
and the Historic Core
33. Establishes public/private partnerships to complete hazard/risk analyses of
historic sites and properties and neighborhoods to determine vulnerability
and recommend and implement appropriate mitigation.
49. Supports the creation and expansion of local businesses.
49e. Maintain and seeks to expand resources available through the City’s revolving
loan fund and urban renewal districts.
49g. Increases awareness of existing economic and other benefits of and further
develop incentives for locating and operating benefits within City limits.
53. Recognizes sustainability as a component of economic development.
Pole Yard Urban Renewal District Plan – 2020 Page 29
The adoption of the Pole Yard Urban Renewal District Plan would enable the City of Bozeman to
implement the strategies and associated tools in the Bozeman Community Plan, as intended by
the Montana Urban Renewal statutes. The Pole Yard Urban Renewal District Plan provides for
the opportunity to use tax increment financing to assist with redevelopment and revitalization
activities and encourage business retention and growth. The Pole Yard Urban Renewal District
Plan supports the investment in infrastructure that encourages urban renewal and economic
development in the neighborhood.
Future Land Use
The Bozeman Community Plan provides a visual policy statement by identifying the future land
use patterns through maps and/or text to help achieve the goals and objectives of the growth
policy. The Bozeman Community Plan designates the majority of the future land use for the area
included in the Pole Yard Urban Renewal District as “Industrial”. The Bozeman Community Plan
designates the single dwelling and accompanying land off of L Street as “Residential”. A small
piece of the “Northside/Village" trail adjacent to the railroad rights-of-way is designated by the
Bozeman Community Plan as “Parks, Open Space and Recreation”. The future land use in the
vicinity of the Pole Yard URD is shown in the map below (Figure 15).
Pole Yard Urban Renewal District Plan – 2020 Page 30
Figure 15. Community Plan Future Land Use
Pole Yard Urban Renewal District Plan – 2020 Page 31
The Bozeman Community Plan’s Table C-16 Zoning Correlation with Land Use Categories indicates
that:
• The “Industrial” land use category can be implemented through one of the five
industrial type zoning districts, including M-1 and M-2.
• The “Residential” land use category can be realized via one of the numerous
residential types zoning districts, including R-S.
• The “Parks, Open Space and Recreation” land use category was created for a
variety of purposes under all zoning districts.
At some point in time, development in the Pole Yard may require an amendment to the current
future land use designations, the Pole Yard Urban Renewal District Plan does not suggest any
revision to the existing future land use designations as found in the Bozeman Community Plan.
The evaluation of the Pole Yard Urban Renewal District Plan with its respect to conformance with
the Bozeman Community Plan’s future land use designation finds that the Pole Yard Urban
Renewal District Plan provides for redevelopment of the existing industrially designated area to
promote economic development, with a focus on value-adding commerce.
Zoning Accordance
Land use within the City of Bozeman is regulated through zoning under the Bozeman Unified
Development Code. The zoning of the area included in the Pole Yard Urban Renewal District
must be reviewed for accordance with the Bozeman Community Plan.
The City adopted its first zoning ordinance in 1941. The current zoning ordinance, the Unified
Development Code of the City of Bozeman, Chapter 38 of the Bozeman Municipal Code was
originally adopted in 2005, with the most recent extensive amendment by Ordinance No. 1769,
effective on December 28, 2009. The zoning of the area included in the Pole Yard Urban Renewal
District must be found to be in accordance with the Bozeman Community Plan. On September
14th, 2020, the City Planning Board reviewed the zoning of the area included in the Pole Yard
Urban Renewal District as follows in this section and found the zoning to be in accordance with
the growth policy.
In summary, a purpose of the Bozeman Unified Development Code is to implement the goals and
objectives of the Bozeman Community Plan; the city’s adopted growth policy. The zoning in the
vicinity of the Pole Yard URD is shown in the map below (Figure 16). The core of the lands within
the Pole Yard Urban Renewal District is zoned “M-2 Manufacturing and Industrial”, and the
majority of the lands adjacent to the core of the Pole Yard Urban Renewal District is zoned “M-1,
Light Manufacturing”.
Pole Yard Urban Renewal District Plan – 2020 Page 32
Figure 16. Zoning
Pole Yard Urban Renewal District Plan – 2020 Page 33
“M-1” and “M-2” zoning allows a variety of industrial uses and related support commerce as
described in the Bozeman Unified Development Code. The intent of the “M-2” manufacturing
and industrial district is to provide for heavy manufacturing and industrial uses, servicing
vocational and employment needs of city residents. The intent of the “M-1” light manufacturing
district is to provide for the community's needs for wholesale trade, storage and warehousing,
trucking and transportation terminals, light manufacturing, and similar activities. The district
should be oriented to major transportation facilities yet arranged to minimize adverse effects on
residential development, therefore, some type of screening may be necessary.
The single dwelling and accompanying land off of L Street is zoned RS, Residential Suburban
District. The intent and purpose of the R-S residential suburban district is to commemorate and
preserve existing RS zoning only.
In evaluating the uses supported by the Pole Yard Urban Renewal District Plan for accordance of
the area’s zoning with the Bozeman Community Plan, it is found that the zoning of the area in the
District supports the purposes of the Bozeman Unified Development Code. The Pole Yard Urban
Renewal District Plan is primarily intended to support commerce, which is industrial in character.
The Pole Yard Urban Renewal District Plan provides a plan for redevelopment of the existing
industrially designated area to eliminate conditions that contribute to blight and attract new
economic development. The Pole Yard Urban Renewal District Plan does not suggest any revision
to the existing zoning classifications.
Conclusions
1. The Pole Yard Urban Renewal District Plan has been evaluated with respect to the relevant
goals and objectives of the Bozeman Community Plan, and the Pole Yard Urban Renewal
District Plan is found to be in conformance with the Bozeman Community Plan.
2. The zoning in the Pole Yard Urban Renewal District has been evaluated with respect to the
Bozeman Community Plan, and the zoning in the Pole Yard Urban Renewal District is found
to be in accordance with the Bozeman Community Plan.
Pole Yard Urban Renewal District Plan – 2020 Page 34
Chapter 5. Goals and Strategies of the Urban Renewal District Plan
Introduction
This chapter presents the goals and strategies for addressing conditions of blight and
infrastructure deficiencies within the Pole Yard Urban Renewal District. These goals and
strategies address the needs identified in the Resolution of Necessity (Res. No. 5145) adopted on
September 15th, 2020 by Bozeman City Commission. They are further supported by the Bozeman
Community Plan and other appropriate planning documents, the urban renewal powers afforded
to local governments in the Montana urban renewal statutes and meetings with the public and
City of Bozeman staff in August and September of 2020. Public comments can be found in
Appendix A. (Meeting on September 9th, 2020)
This URD Plan provides guidance for activities that will be undertaken by a variety of public and
private entities. It suggests a variety of planning and program initiatives and capital projects that
may be undertaken by the City of Bozeman to encourage investment in the district, which will in
turn address conditions that have diminished its development potential over time.
Following are the goals of this Urban Renewal District Plan and associated strategies. These goals
support the overall purpose and intent of the Pole Yard Urban Renewal District as presented in
Chapter 1 and restated below:
The Purpose and Intent of the Pole Yard Urban Renewal District and Plan
The creation of the URD in the Pole Yard enables the City of Bozeman to eliminate conditions
that contribute to blight substantially impairing sound growth of the City through investments in
public infrastructure and efficient delivery of public services.
Goals of the Pole Yard Urban Renewal District Plan
GOAL 1. Promote Innovative Economic Development
Rationale: Commerce strengthens the community, opens
reinvestment opportunities, enables livable wage jobs, and supports
the sound growth of the community, helping to eliminate conditions
that contribute to blight.
GOAL 2. Enable Enhanced Connectivity and Mobility
Rationale: Connecting neighborhoods through investments in multi-
model transportation corridors strengthens the fiber of the
community.
GOAL 3. Invest in Efficient Delivery of Public Infrastructure
Rationale: Infrastructure is the backbone of the community. Private
development typically requires a corresponding public investment in
Pole Yard Urban Renewal District Plan – 2020 Page 35
infrastructure. Capital improvements will help achieve economic
vitality and support the delivery of public services.
GOAL 4. Foster Urban Neighborhood Coherency
Rationale: Higher density achieves greater efficiency in the delivery of
public services. Urban growth, oriented to centers of employment and
activity, can reduce or eliminate commute times, lower transportation
costs and create vitality and a sense of community. Integrated
elements of growth, ensuring a cohesive neighborhood that in turn
contributes to the well-being of the entire community, will reduce
geographic, as well as economic and social isolation.
Strategies
The realization of these goals will depend on a strategic approach that includes planning, program
design and implementation, and capital investment. The listed actions associated with each goal
reflect thoughtful and sustainable economic development and the successful elimination of
conditions that contribute to blight. The strategies described below should not be viewed as
limiting but should be seen as potential actions and thought-provoking opportunities to develop
new ideas to further implementation of this Plan.
GOAL 1. Promote Innovative Economic Development
1.1. Planning, such as
1.1.1. Support area and issue specific planning, such as targeted
marketing
1.1.2. Further public-private partnerships such as among:
1.1.2.1. Landowners, the Montana Department of Environmental
Quality, the U.S. Environmental Protection Agency
1.1.2.2. Landowners, Burlington Northern Santa Fe and Montana
Rail Link
1.1.2.3. Existing and potential businesses
1.1.2.4. Local, regional, state and federal entities
1.1.3. Examine the usefulness of incentive programs such as:
1.1.3.1. Targeted commerce recruitment
1.1.3.2. Work force training
1.2. Implementation, such as
1.2.1. Establish incentive programs determined to further city policies
GOAL 2. Enable Enhanced Connectivity and Mobility
2.1. Planning, such as
2.1.1. Support area and issue specific planning such as:
2.1.1.1. Trails
2.1.1.2. Bikeways
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2.1.1.3. Public transit
2.1.1.4. Connectivity points
2.1.2. Develop public-private partnerships such as among:
2.1.2.1. Landowners, trail groups and biking organizations
2.1.2.2. Local, regional, state and federal entities
2.2. Implementation, such as
2.2.1. Support trail maintenance programs
2.2.2. Support trail enhancement projects, like wellness stations and
interpretive signs
2.2.3. Invest in nonmotorized use associated with new connectivity
points, such as a vehicular railroad overpass with sidewalks and bike
lanes.
2.2.4. Invest in expansion of nonmotorized transportation systems
GOAL 3. Invest in Efficient Delivery of Public Infrastructure
3.1. Planning, such as
3.1.1. Support area and issue specific planning such as:
3.1.1.1. Capital improvements
3.1.1.2. Transportation
3.1.1.3. Transportation connections providing additional access
3.1.1.4. Fee mitigation programs
3.1.2. Develop public-private partnerships such as among:
3.1.2.1. Landowner and the City of Bozeman
3.1.2.2. Local, regional, state and federal entities
3.1.2.3. Public, quasi-public and private infrastructure providers
3.2. Implementation, such as
3.2.1. Invest in public infrastructure projects to eliminate conditions that
contribute to blight
3.2.2. Invest in implementation of municipal capital improvement plans
3.2.3. Leverage public and private funds for public infrastructure
connectivity
3.2.4. Support the accommodation of communication and technological
advances
3.2.5. Promote investment in the interface between commerce and
transportation access such as rail spurs and transloading facilities
3.2.6. Support fee mitigation programs determined to further city policies
GOAL 4. Foster Urban Neighborhood Coherency
4.1. Planning, such as
4.1.1. Support area and issue specific planning
4.1.2. Foster neighborhood and community coherency strategies
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4.1.3. Engage in the on-going evaluation of land use code requirements
to remove obstacles to developing a core neighborhood
4.1.4. Create a neighborhood identity
4.2. Implementation, such as
4.2.1. Support outreach, education and community engagement
4.2.2. Invest in urban design elements
4.2.3. Market neighborhood identity
Pole Yard Urban Renewal District Plan – 2020 Page 38
Chapter 6. Project Evaluation Criteria
In urban renewal areas there are usually multiple projects proposing to take advantage of limited
financial resources. Chapter 7 of this Plan provides a list of potential funding sources, including
Tax Increment Financing (TIF), that can be used in financing urban renewal projects and
programs. However, given the numerous urban renewal activities that could potentially occur
within the Pole Yard Urban Renewal District, it will be necessary to review each proposed project
or program with respect to the following guiding principles as well as identified goals and
strategies found in Chapter 5.
Guiding Principles
This Pole Yard Urban Renewal District Plan reflects sound public policy and thoughtful planning.
To this end the following principles will guide urban renewal projects and programs in the URD.
Readiness – The development of the Pole Yard site will occur as resources become available and
opportunities present themselves. In some cases, public projects will occur in support of private
investment that would otherwise not occur without that corresponding investment in
infrastructure. Developers who have secured public approvals and/or project funding have
demonstrated a level of readiness. Program initiatives or funding opportunities may help bring
urban renewal projects forward.
Leveraging – Projects that make use of a variety of public and private resources including state
and federal grants, loans and specialized tax credits, as well as tax increment funds will be
encouraged to the extent that resources are available and they support the intent and purpose
of this district. These would include improvements to shared rights-of-way and other connecting
infrastructure.
Design – The intent of the Pole Yard URD is to emphasize planning that fosters Bozeman’s desired
urban density and design. The attainment of urban density helps to achieve greater efficiency in
the delivery of public services. Programs will be crafted to eliminate blighted conditions through
the attraction of secondary, value-adding industries and other complimentary development. The
opportunity for the development of work-force housing is also important. Increasingly, people
seek job opportunities that offer housing within walking distance of their places of employment.
In addition, opportunities to create connectivity to other areas of the community, including
pedestrian and other non-motorized access will be important. For example, improvements to
the existing trail system, given the Pole Yard URD’s proximity to amenities such as Story Mill Park.
Partnerships – The successful redevelopment of the Pole Yard URD will depend on partnerships
among public and private entities, including landowners, business owners, the State of Montana
DEQ, EPA, the City of Bozeman and others. Significant private investment will likely require
associated public financing of municipal and quasi-public improvements, such as multi-modal
Pole Yard Urban Renewal District Plan – 2020 Page 39
transportation facilities, sewer and water improvements, utilities and communication (including
broadband) infrastructure.
Criteria Description
Based on these guiding principles, the following criteria will be used in evaluating projects and
programs and in setting priorities, in the context of limited financial resources. These criteria are
listed in no order of importance.
1. Required Criteria
a. Montana Urban Renewal Statute – What specific statute(s) support the
Project? Does it contradict any statute?
b. Bozeman Growth Policy – What strategies, visions, goals and objectives set
forth in the City’s guiding documents does the Project reflect? Does it
contradict any of the applicable policies?
c. Pole Yard Plan – What goals and strategies does the project support? Does it
contradict any goals or strategies?
d. Consistency with other adopted plans. – Does the project reflect the vision,
goals and objectives set forth in other adopted plans? Does it contradict any
applicable policies?
e. City of Bozeman Municipal Codes – Is the Project in compliance with all
applicable Bozeman Municipal Codes?
f. All other applicable codes – Is the Projects in compliance with all applicable
codes and regulations?
2. Suggested Criteria
a. Purpose and intent – Does the project foster commerce/economic
development? Does it address conditions that have contributed to blight?
b. Project design and readiness – Is the project ready to move forward? For
example, are any necessary permits in place? Has due diligence been
completed? Does the project lend itself to phasing or segmentation that
enables portions of the project to stand alone?
c. Leverage ratios of public to private funds invested – Are urban renewal dollars
leveraging private investment? For example, does the installation of public
infrastructure correspond to investment in business? What is the percent of
public dollars invested in the infrastructure as compared to private dollars?
Does the project provide for economies of scale to enhance efficiency?
d. Health and safety concerns – Does the project address a condition of blight
that endangers the “health, safety….and welfare” of the residents? Does it
improve fire and life safety requirements? Does it reduce emergency response
time?
e. Opportunity to take advantage of initiatives and funding sources – Does the
project or program enable the City to take advantage of an initiative or funding
source that can be matched or leveraged by urban renewal dollars and/or
private investment? Does the Project use innovative funding strategies to take
advantage of potential opportunities?
Pole Yard Urban Renewal District Plan – 2020 Page 40
f. Critical infrastructure and/or connectivity needs – Does the project enable
better connectivity within the urban renewal district and/or between the
urban renewal district and the community? For example, projects that
support improved multi-modal transportation or better access to the
community telecommunications network might be given greater priority. Does
the project foster key transportation connections that improve district access?
g. Opportunity to support planned urban density and design – Does the project
or program provide for increased efficiency in delivery of services, increase
live-work opportunities and/or community interaction? Does the project
support mixed use developments, including housing opportunities, to increase
neighborhood vitality?
h. Job creation – Does the program or project create new employment
opportunities and/or opportunities for workforce training? Projects that
create more jobs per public funds invested will be more desirable. There may
also be opportunities to partner with businesses, organizations and
educational entities to provide vocational and professional training.
i. Resulting increase in taxable value – Does the project improve the overall
property tax base within the district, increasing the amount of tax increment
dollars available for urban renewal activities? Over the long term, improving
the tax base can assure continued economic health within the urban renewal
district and the community’s well-being into the future.
j. Resulting increase in tax increment revenue – Will the project increase the
amount of tax increment dollars available for urban renewal activities or is
there an intent to seek a property tax abatement?
k. Ability of project to enhance Pole Yard’s role as a key economic activity
generator – Does the project support, rather than compete with, other
community economic development initiatives? Does the Project ensure
accommodations in infrastructure development to enable response to
changes in technology?
l. Sustainability – one-time infusion of funds versus on-going need for funding –
Will the project require on-going support to be sustainable? Are other, longer-
term funding strategies considered in project planning?
m. Linkages – Does the project link to other sectors such as education, to take
advantage of associated job training programs, research and development,
and technology transfer?
How the Criteria are Used
The extent to which these criteria are applied will depend on the specific project or program
being considered. They are intended to provide a decision-making framework to set priorities.
In most cases, only some of the criteria would apply for a specific project or program. For
instance, some projects might rank higher with respect to job creation, while others may result
in greater private investment. Public investment in infrastructure to improve connectivity may
or may not result in an increase in taxable value. Through the process of preparing annual work
Pole Yard Urban Renewal District Plan – 2020 Page 41
plans, more specificity may be assigned to some or all the criteria, based on changing community
and district priorities.
Given the wide range of potential activities, the criteria will be particularly effective in evaluating
similar project proposals, such as multiple proposals to install public infrastructure, or in
reviewing applications for grants and loans. The criteria can also be used to develop more specific
guidelines for grant and loan programs established under this plan.
The criteria become particularly important as recommendations are made to the City
Commission regarding the funding of projects and programs during the budget approval process.
Demonstrating how each proposed activity meets the criteria will assist the Commission in
evaluating its appropriateness with respect to the goals and strategies of the urban renewal plan
as well as of the community overall.
Pole Yard Urban Renewal District Plan – 2020 Page 42
Chapter 7. Implementation
The Pole Yard Urban Renewal District Plan provides a framework for revitalization activities.
Upon its adoption, this Plan will serve as the official policy guide for public action. However,
these policies can only be transformed to action through an effective implementation program.
Key to implementation will be sound processes of administration, financing and program
evaluation.
Administration
Under §7-15-4231, MCA, the exercise of powers related to urban renewal, a municipality may
itself exercise its urban renewal project powers, or may, “if the local governing body by resolution
determines such action to be in the public interest, elect to have such powers exercised by the
urban renewal agency created under §7-15-4232, MCA, or a department or other officers of the
municipality as they are authorized to exercise under this part and part 43.”
The City of Bozeman may establish an urban renewal agency under this provision to direct the
projects and programs outlined in this Urban Renewal District Plan. As provided in the statute,
the City Commission would appoint five members to the agency’s board, who would be
responsible for developing and implementing programs. Since 2006, the City of Bozeman has
chosen to exercise its urban renewal project powers directly, rather than establish a separate
urban renewal agency.
In the city’s other urban renewal districts, the City Commission has created an urban renewal
board for each district to serve in an advisory capacity to the Commission in planning for,
implementing and administering a program of rehabilitation and revitalization. The board
provides opportunities for stakeholders in the District, including property owners, business
owners, residents and school district representatives to participate in formulating urban renewal
projects and programs. At this point in time and due to the ownership of the Pole Yard, the City
has chosen to utilize staff in an advisory capacity in the planning for, implementing and
administering a program of revitalization for the District.
The annual work program and budget, listing the activities and costs of the activities for the
coming fiscal year, as well as the method of financing those activities is reviewed and approved
by the City Commission. This program and budget can be amended during the fiscal year
considering funding and program opportunities and changes. Urban renewal activities
undertaken must be in accordance with Montana State statute. (The specific provisions of §7-15-
4233, MCA are below in Figure 17.)
Figure 17. 7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1)
In the event the local governing body makes such determination, such body may authorize the urban renewal
agency or department or other officers of the municipality to exercise any of the following urban renewal
project powers:
(a) to formulate and coordinate a workable program as specified in 7-15-4209;
(b) to prepare Urban Renewal Plans;
Pole Yard Urban Renewal District Plan – 2020 Page 43
(c) to prepare recommended modifications to an urban renewal project plan;
(d) to undertake and carry out urban renewal projects as required by the local governing body;
(e) to make and execute contracts as specified in 7-15-4251, 7-15-4254, 7-15-4255, and 7-15-4281, with the
exception of contracts for the purchase or sale of real or personal property;
(f) to disseminate blight clearance and urban renewal information;
(g) to exercise the powers prescribed by 7-15-4255, except the power to agree to conditions for federal
financial assistance and imposed pursuant to federal law relating to salaries and wages shall be reserved to the
local governing body;
(h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in
the manner specified in 7-15-4257;
(i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area;
(j) to insure real or personal property as provided in 7-15-4258;
(k) to effectuate the plans provided for in 7-15-4254;
(l) to prepare plans for the relocation of families displaced from an urban renewal area and to coordinate
public and private agencies in such relocation;
(m) to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of
buildings and improvements;
(n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to
prepare for the undertaking of urban renewal projects;
(o) to negotiate for the acquisition of land;
(p) to study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places
and to make recommendations with respect thereto;
(q) to organize, coordinate, and direct the administration of the provisions of this part and part 43;
(r) to perform such duties as the local governing body may direct so as to make the necessary arrangements
for the exercise of the powers and performance of the duties and responsibilities entrusted to the local
governing body.
(2) Any powers granted in this part or part 43 that are not included in subsection (1) as powers of the urban
renewal agency or a department or other officers of a municipality in lieu thereof may only be exercised by the
local governing body or other officers, boards, and commissions as provided under existing law.
Annual report
The Montana Urban Renewal Law includes requirements for annual reporting for Districts with a
TIF provision in §7-15-4237, MCA as follows:
(1) An agency authorized to transact business and exercise powers under part 43
and this part shall file with the local governing body, on or before September
30 of each year, a report of its activities for the preceding fiscal year. A copy
of the annual report must be made available upon request to the county and
school districts that include municipal territory.
(2) The report must include a complete financial statement setting forth its assets,
liabilities, income, and operating expenses and the amount of the tax
increment as of the end of the fiscal year. The report must describe the
expenditures of tax increment in the preceding fiscal year and how the
expenditures comply with the approved urban renewal plan or comprehensive
development plan for the district.
(3) At the time of filing the report, the agency shall publish in a newspaper of
general circulation in the community a notice to the effect that the report has
been filed with the municipality and that the report is available for inspection
Pole Yard Urban Renewal District Plan – 2020 Page 44
during business hours in the office of the city clerk and in the office of the
agency.
Projects and Programs
The City of Bozeman will implement programs and evaluate projects based on the guiding
principles and goals of this Pole Yard Urban Renewal District Plan. Given that private
development will be necessary to generate tax increment funds, business development must
occur hand in hand with other community based economic development activities. The Pole Yard
Urban Renewal Program will make use of a variety of financing in achieving the goals of this plan,
including:
Public Investments
Urban renewal can assist the local government with meeting the public’s share of the cost of
infrastructure improvements and other renewal activities through methods such as the
following:
• Annual Tax Increment Appropriations – The City of Bozeman may finance
smaller public infrastructure improvements and renewal programs from its
annual tax increment receipts by appropriation. Funds available each year
would be determined by the size of the annual increment and any prior
commitments (such as bond debt service requirements and administrative
costs).
• Tax Increment Bonds – The City of Bozeman will issue tax increment financing
(TIF) revenue bonds if necessary, as revenues allow, to finance major capital
projects. TIF bonds will enable the local government to finance projects up-
front and then retire the debt through annual tax increment receipts.
• Other Debt Financing – The City of Bozeman may borrow funds through local,
state and federal loan programs to finance public improvements. Annual tax
increment revenues may be used to make principal and interest payments
• Local, State and Federal Funding Mechanisms – There are several funding
resources available to communities to undertake planning and capital
improvement projects. These are listed in the funding section below.
Private Sector Development
In addition to public sector investments, urban renewal can assist property and business owners
in specific renewal activities through programs including the following:
• Tax Increment Financing Revolving Loans – §7-15-4292, MCA provides for the
establishment of loan programs, whereby TIF funds may be used to support
public and private urban renewal projects in support of the goals of the Plan
for the Urban Renewal District. As principal and interest payments are made,
the funds may be loaned again, even after the TIF provision terminates. The
Pole Yard Urban Renewal District Plan – 2020 Page 45
management of a revolving loan program may be undertaken directly by the
City, or through a contract with another entity.
• Tax Increment Grants – In some cases grants may be made to private entities
to support projects that are in the community’s best interest and are in
keeping with the purposes of the Montana Urban Renewal Law. An example
might be support for enhanced public features that contribute to a unifying
design theme for the District.
• Other Assistance – The urban renewal program can assist private sector
projects in a variety of ways, by providing technical assistance (such as market
analyses, business recruitment and capital improvements planning) and
helping property owners access federal, state and local resources and
incentives for development.
Financing Resources
Tax Increment Financing
As noted above, the implementation of the Pole Yard Urban Renewal District Plan will include
the use of Tax Increment Financing (TIF). More particularly, costs that may be paid using TIF
dollars are included in §7-15-4288, MCA as follows in Figure 18:
Figure 18. 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by
the municipality to pay the following costs of or incurred in connection with an urban renewal project,
industrial infrastructure development project, technology infrastructure development project, or aerospace
transportation and technology infrastructure development project:
(1) land acquisition;
(2) demolition and removal of structures;
(3) relocation of occupants;
(4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology
infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs,
gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines,
sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines,
electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports for reusable launch vehicles
with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned
buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter
13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection
with improvements for which the foregoing costs may be incurred;
(5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233;
(6) acquisition of infrastructure-deficient areas or portions of areas;
(7) administrative costs associated with the management of the urban renewal area, industrial district,
technology district, or aerospace transportation and technology district;
(8) assemblage of land for development or redevelopment by private enterprise or public agencies, including
sale, initial leasing, or retention by the municipality itself at its fair value;
(9) the compilation and analysis of pertinent information required to adequately determine the needs of an
urban renewal project in an urban renewal area, the infrastructure needs of secondary, value-adding industries
in the industrial district, the needs of a technology infrastructure development project in the technology
district, or the needs of an aerospace transportation and technology infrastructure development project in the
aerospace transportation and technology district;
(10) the connection of the urban renewal area, industrial district, technology district, or aerospace
Pole Yard Urban Renewal District Plan – 2020 Page 46
transportation and technology district to existing infrastructure outside the district;
(11) the provision of direct assistance, through industrial infrastructure development projects, technology
infrastructure development projects, or aerospace transportation and technology infrastructure development
projects, to secondary, value-adding industries to assist in meeting their infrastructure and land needs within
the district; and
(12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing,
abating, or eliminating pollution.
A tax increment program is authorized for 15 years or longer if the tax increment revenue is
pledged to the payment of tax increment bonds. §7-15-4289, MCA provides for the use of tax
increments for bond payments. The tax increment may be pledged to the payment of the
principal of premiums, if any, and interest on bonds, which the municipality may issue to provide
funds to pay such costs.
Per §7-15-4291, MCA, the City of Bozeman may enter into agreements with the other affected
taxing bodies to remit to such taxing bodies any portion of the annual tax increment not currently
required for the payment of the costs listed in §7-15-4288, MCA or pledged to the payment of
the principal of premiums, if any, and interest on bonds.
Other Financing Mechanisms
There are several financial assistance programs that can be used in the development of the Pole
Yard Urban Renewal District in addition to Tax Increment Financing. Financing strategies for
addressing urban renewal needs identified in this Plan will likely include combining various
funding sources. For example, a local special improvement district might be used in combination
with a Montana Board of Investment Intercap loan to match federal or state dollars. The
following is a summary of programs available to fund urban renewal projects:
Transportation Infrastructure
This section describes funds and funding sources that are available to finance urban renewal
transportation related projects. These funding methods, such as local option taxes, improvement
districts and other types of bonds, enable local citizens to participate in funding projects. In
general, however, the ability to use additional property tax levies to fund urban renewal is
governed by Montana Statute under 15-10-402, MCA that limits taxes to 1996 levels.
A. Bridge and Road Mills (Property Taxes)
Montana law provides for cities (§7-14-4101, MCA) to manage transportation infrastructure.
Counties are specifically responsible for all the bridges in a county, including those within cities
and towns, except those managed by the Montana Department of Transportation. Municipalities
may establish a road fund under §7-14-4113, MCA.
B. Transportation Improvement Authority
Established under §7-14-1001, MCA, the purpose of a transportation improvement authority is
to blend the interests of local, state, and federal governments with the interests of the public
and the business community to build, modify, or improve transportation facilities and systems
Pole Yard Urban Renewal District Plan – 2020 Page 47
within its jurisdiction. A county and a municipality within a county may, by joint resolution, create
a transportation improvement authority. The Authority may enter into contracts and accept
local, state, federal and private funds to undertake transportation projects.
C. Transportation Alternatives Program (TA Program), Montana Department of Transportation
The Transportation Alternatives (TA) Program authorized under Section 1122 of the Federal
Highway Administration’s Moving Ahead for Progress program -MAP-21 (23 U.S.C. 213(b),
101(a)(29)), replaces the former Community Transportation Enhancement Program. It provides
approximately $4, Million annually to eligible entities including local governments, for activities
defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities,
infrastructure projects for improving non-driver access to public transportation and enhanced
mobility, community improvement activities, and environmental mitigation; recreational trail
program projects; safe routes to school projects; and projects for the planning, design or
construction of boulevards and other roadways largely in the right-of-way of former Interstate
System routes or other divided highways.
D. State Fuel Tax
Under 15-70-101, MCA, Montana assesses a tax on gasoline and diesel fuel used for
transportation purposes. Each municipality receives a portion of the total tax funds allocated to
cities and Towns based on:
1) The ratio of the population within each municipality to the total population in
all cities and Towns in the State;
2) The ratio of the street mileage within each municipality to the total street
mileage in all incorporated cities and towns in the State. The street mileage is
exclusive of the Interstate, National Highway, and Primary Systems.
All fuel tax funds allocated to local governments must be used for the construction,
reconstruction, maintenance, and repair of rural roads or city streets and alleys. Priorities for the
use of these funds are established by the cities receiving them.
Debt Financing – All Types of Projects
Local governments can make use of various kinds of debt financing to fund urban renewal
projects. In addition to Tax Increment Financing Bonds discussed above, these include revenue
bonds, special improvement district bonds and general obligation bonds. Debt financing enables
local governments to finance major infrastructure projects using future revenue from special
assessments, user fees, and other forms of revenue. Under §7-7-4101, MCA, a local government
has power to incur indebtedness by borrowing money, issuing bonds, issuing notes, entering
leases and lease-purchase agreements, or entering into installment purchase contracts for the
following purposes:
1) acquiring land for and designing and erecting public buildings;
2) acquiring land for and designing and constructing sewers, sewage treatment
and disposal plants, waterworks, reservoirs, reservoir sites, and lighting plants;
Pole Yard Urban Renewal District Plan – 2020 Page 48
3) supplying the municipality with water by contract and the construction or
purchase of canals or ditches and water rights for supplying municipality with
water;
4) designing and constructing bridges, docks, wharves, breakwaters, piers,
jetties, and moles;
5) acquiring, opening, or widening any street and improving the street by
constructing, reconstructing, and repairing pavement, gutters, curbs, and
vehicle parking strips and to pay all or any portion of the cost relating to the
project;
6) purchasing or leasing fire apparatus, street and other equipment, and personal
property, including without limitation, vehicles, telephone systems, and
photocopy and office equipment, including computer hardware and software;
7) building, purchasing, designing, constructing, and maintaining devices
intended to protect the safety of the public from open ditches carrying
irrigation or other water;
8) funding outstanding warrants and maturing bonds; and
9) repaying tax protests lost by the local government or other municipal
corporation.
The local government incurs various administrative costs in conjunction with issuing bonds.
These costs include the retention of legal counsel and financial consultants, the establishment of
reserve funds and the preparation of the prospectus and various required documents. These
bonds provide tax-free interest earnings to purchasers and are therefore subject to detailed
scrutiny under both state and federal law. The citations in the Montana Code are listed below,
for each type of bond described.
A. Special Improvement Districts
Under §7-12-4101, and §7-12-4102, MCA, cities and towns can create special improvement
districts for a number of activities including:
• The acquisition, construction or reconstruction of public streets and roads
• The acquisition, construction or reconstruction of sidewalks, culverts, bridges,
gutters, curbs, steps and parks including the planting of trees
• The construction or reconstruction of sewers, ditches, drains, conduits, and
channels for sanitary or drainage purposes, with outlets, cesspools, manholes,
catch basins, flush tanks, septic tanks, connecting sewers, ditches, drains,
conduits, channels, and other appurtenances
• The construction of sewer and water systems including fire hydrants
• The acquisition and improvement of land to be designated as public park or
open-space land
• The conversion of overhead utilities to underground locations in accordance
with §69-4-311 through §69-4-314, MCA
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• The purchase, installation, maintenance, and management of alternative
energy production facilities
B. Business Improvement District
Business Improvement Districts (BIDs) are authorized under §7-12-1101 et. seq MCA. This
provision of the law allows the local governing body to assess properties, upon the request of
property owners within a district to fund the following activities:
• provide special police, maintenance, or cleaning personnel for the protection
and enjoyment of the general public using the business district
• landscape and beautify public areas and to maintain those areas
• contract with the governing body to maintain, operate, or repair public parking
facilities
• contract with the governing body to maintain streets, alleys, malls, bridges,
ramps, tunnels, landscaping, and other public facilities as mutually agreed
upon
• promote private investment and business expansion in the district
• provide for the management and administration of the affairs of the district
• promote business activity by advertising, decorating, marketing, and
promoting and managing events and other actions designed for the general
promotion of business activities in the district
• perform such other functions as are necessary to carry out the purposes of this
part and to further the objectives of the district.
C. General Obligation Bonds
General obligation bonds are backed by the full faith and credit of the local government and must
be approved by the voters in an election. General obligation bonds are generally payable from
ad valorem taxes (based on the value of property) and expressed in mills. General obligation
bonds are attractive to bond buyers because they have voter approval and are not as vulnerable
to fluctuations in revenue. Municipalities are assigned a bond debt limit based on a percentage
of taxable valuation. General obligation bonds must fall within this limit.
D. Municipal Revenue Bonds
Under §7-7-4401, MCA, a municipality may issue revenue bonds to finance any project or activity
authorized
NOTE: Pursuant to §7-15-4218, MCA, voter approval of the urban renewal plan is required when
general obligation bonds are to be used. If the plan or any subsequent modification thereof
involves financing by the issuance of general obligation bonds of the municipality as authorized
in §7-15-4302(1) or the financing of water or sewer improvements by the issuance of revenue
bonds under the provisions of part 44 of chapter 7 or of part 43 of chapter 13, the question of
approving the plan and issuing such bonds shall be submitted to a vote of the qualified electors
of such municipality, in accordance with the provisions governing municipal general obligation
Pole Yard Urban Renewal District Plan – 2020 Page 50
bonds under chapter 7, part 42, at the same election and shall be approved by a majority of those
qualified electors voting on such question.
Railroad Crossing Related Programs
A. Federal Surface Transportation Program - Rail/Highway Crossing Protective Devices Program
The purpose of the Federal Rail/Highway Crossing – Protective Devices Program is to identify high
hazard rail crossing sites and install new rail crossing signals. MDT's Rail - Highway Safety manager
is responsible for surveying, identifying and prioritizing those railroad crossings that require new
protective devices or upgrading of existing devices. The funds are distributed on a statewide basis
determined by a priority list ranked by a hazard index. The Federal/State ratio is 90% Federal and
10% State.
B. Federal Surface Transportation Program - Rail/Highway Crossing Elimination of Hazard
Program
The purpose of the Federal Rail/Highway Crossing – Elimination of Hazard Program is to identify
high hazard rail crossing sites and construct new rail/highway grade crossings. The program also
uses funds to rehabilitate existing grade separations. Grade separation projects are funded with
90% Federal funds and 10% State funds. Since funding for this program is limited, funds are often
used in combination with other Federal funding sources to fund costly grade separation projects.
Eligible expenditures include the separation or protection at grade crossings, reconstruction of
existing crossings and relocation of highways to eliminate crossings. Projects for this program
are selected by identifying those sites where only a grade separation will eliminate an identified
hazard or where an existing grade separation exists but needs rehabilitation or replacement.
Funding for Public Improvements (Sewer, Water, Roads, Community Facilities, Parks)
A. Treasure State Endowment Program ~ Montana Department of Commerce
The Montana Treasure State Endowment Program (TSEP) is a state-funded program, authorized
under §90-6-701 through 710, MCA, and is administered by the Montana Department of
Commerce (MDOC). It is designed to assist local governments in financing capital improvements
to sewer and water facilities. Funds are derived from the Montana coal severance tax and made
available to local governments as matching grants, loans and grant/loan combinations. TSEP also
provides matching grants of up to $15,000 to local governments for preliminary engineering
study costs.
TSEP funds may not be used for annual operation and maintenance; the purchase of non-
permanent furnishings; or for refinancing existing debt, except when required in conjunction
with the financing of a new TSEP project. Grant requests cannot exceed $500,000 and the local
government must typically provide a dollar for dollar match that can include other grant funds.
Matching funds can be public or private funds provided by a TSEP applicant to directly support
the cost of eligible project activities. There are several ways in which local governments can
provide matching funds for bridge projects. Eligible types of matching funds include:
• local general funds or other cash;
Pole Yard Urban Renewal District Plan – 2020 Page 51
• proceeds from the sale of general obligation, revenue, special assessment or
other bonds;
• entitlement or formula-based federal or state funds such as federal highway
funds or payments in lieu of taxes;
• loan or grant funds from a state or federal program (including TSEP loans);
• funds expended for engineering studies, reports, and plans, or other
reasonable expenses expended for the preparation of the application, directly
related to the project during the period 24, Months prior to the TSEP
application deadline;
• funds expended after the TSEP application deadline, but before being
approved by the Legislature, for project management, final engineering
design, and other reasonable expenses necessary to prepare the project as in
the TSEP application for the construction phase;
• the value of land or materials provided by the applicant, if appraised within a
two-year period preceding the application deadline. The appraisal must be:
• an impartially written statement that adequately describes the land or
materials, and states an opinion of defined value as of a specific date;
• supported by an analysis of relevant market information; and
• prepared by a qualified appraiser independent from the applicant.
• the value of labor performed by the applicant’s employees on the project,
after the TSEP project has been approved for funding and a TSEP contract has
been signed, as long as the employee is paid at his or her standard hourly rate
of pay and the time worked is adequately documented; and
• the value of machinery used in the process of constructing the project that is
owned (or leased) and operated by the applicant. The value of the use of the
machinery will be determined using the Federal Emergency Management
Agency (FEMA) equipment rate schedules.
B. The Montana Intercap Program ~ Montana Board of Investments
The INTERCAP Program is a low cost, variable-rate program that lends money to Montana local
governments, state agencies and the university system for financing or refinancing the
acquisition and installation of equipment or personal and real property and infrastructure
improvements. The Board of Investments issues tax-exempt bonds and loans the proceeds to
eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim
financing.
Funding is always available with no specific cycle. Allocations of $200,000 and under are
considered and approved by the Board of Investments staff. Allocations in excess of $200,000
are considered and approved by the Board. Funds are released on an on-going basis as the project
is completed. The program provides loans at a variable rate plus a one percent loan origination
fee on loans over one year and for a term of 5 or 10 years depending on the borrower's legal
authority. Short-term loans of less than a year are also available. Interest and principal payments
are due bi-annually (February 15 and August 15 of each year). Loans may be pre-paid without
Pole Yard Urban Renewal District Plan – 2020 Page 52
penalty with 30 days’ notice. Types of financing include installment purchase loans, general fund
loans, general obligation bonds, revenue bonds and special improvement district and rural
improvement district bonds. Gas tax revenues may not be used to service debt. Projects that will
use rural improvement district payments to cover the annual debt are limited to a total loan of
$300,000. Intercap funds may be used in association with other grant and loan programs as well
as local sources.
C. Community Development Block Grant (CDBG
The Community Development Block Grant (CDBG) Program is a federally funded grant program
that assists communities with development needs such as housing, public facilities, economic
development and planning grants. All projects must be designed to principally benefit low and
moderate-income families. The program was established by the Federal Housing and Community
Development Act of 1974 (42 USC 5301) and is administered nationally by the U.S. Department
of Housing and Urban Development (HUD). The Legislature authorized the Montana Department
of Commerce (MDOC) to administer the program beginning in 1982. Eligible activities include
planning, public facilities construction, housing and neighborhood renewal and economic
development.
D. Public Works Program ~ Economic Development Administration
The Economic Development Administration (EDA) is an agency within the U.S. Department of
Commerce. The purpose of the Public Works Program is to assist communities with the funding
of public works and development facilities that contribute to the creation or retention of private
sector jobs and to the alleviation of unemployment and underemployment. Such assistance is
designed to help communities achieve lasting improvement by stabilizing and diversifying local
economies and improving local living conditions and the economic environment of the area.
Grants are awarded up to a participation level of 80 percent but the average EDA grant covers
approximately 50 percent of project costs. Acceptable sources of match include cash, local
general obligation or revenue bonds; Community Development Block Grants, TSEP grants and
loans, entitlement funds, Rural Development loans; and other public and private financing,
including donations.
Projects must result in private sector job and business development to be considered for funding.
Eligible applicants under this program include any state, or political subdivision thereof, Indian
tribe (and other U.S. political entities), private or public nonprofit organization or association
representing any redevelopment area if the project is within an EDA-designated redevelopment
area. Redevelopment areas, other than those designated under the Public Works Impact
Program must have a current EDA-approved Overall Economic Development Program (OEDP) in
place.
E. Water, Wastewater and Solid Waste Action Coordinating Team
In 1982, a group of professionals from state, federal, and non-profit organizations that finance,
regulate, or provide technical assistance for community water and wastewater systems, decided
to start meeting in order to coordinate and enhance their efforts. This group calls itself the
Pole Yard Urban Renewal District Plan – 2020 Page 53
"Water, Wastewater and Solid Waste Action Coordinating Team" or W2ASACT for short.
W2ASACT meets several times a year to find ways to improve our state's environmental
infrastructure. All of the programs represented in W2ASACT have different missions and meet
unique needs. However, it has been the common elements shared by the funding programs that
have been the driving force of W2ASACT. These programs provide money (grants or loans), take
applications from communities to fund their projects, and administer those monies once the
project is funded. While W2ASACT cannot change all of the state or federal requirements, it can
identify unnecessary duplication of requirements that make compliance difficult for
communities.
Voluntary Programs
In some cases, homeowner associations, business groups or other property owners may finance
urban renewal projects voluntary basis.
Pole Yard Urban Renewal District Plan – 2020 Page 54
Chapter 8. Urban Renewal Program Evaluation and Plan Amendments
The Pole Yard Urban Renewal District Plan will be evaluated on a yearly basis in conjunction with
the preparation of the annual report. Measures that may be used in evaluating program success
include:
➢ Increases in the property tax base
➢ Creation of jobs within the URD
➢ Elimination of blighted conditions
The Plan provides flexibility to accommodate a variety of approaches. However, changes over
time may necessitate more formal amendments to the Urban Renewal District Plan. The Urban
Renewal District Plan may be modified by ordinance under §7-15-4221 MCA.
Pole Yard Urban Renewal District Plan – 2020 Page 55
References
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
Census, U. (2019, July). Retrieved July 2019, from
https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml
City of Bozeman. (2016, November). Retrieved from City of Bozeman Economic Development
Strategy Update: http://weblink.bozeman.net/WebLink8/0/doc/113116/Electronic.aspx
City of Bozeman. (2018, April 16). Innovative Economy. Retrieved August 2020, from Bozeman
Strategic Plan: https://strategic-plan-bozeman.opendata.arcgis.com/pages/innovative-
economy
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
U.S. Census. (2017). SELECTED ECONOMIC CHARACTERISTICS more information 2013-2017
American Community Survey 5-Year Estimates. Retrieved July 2019, from United States
Census - American Fact Finder:
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF
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).
US Census. (2018). American Community Survey Demographic and Housing Estimates. Retrieved
May 2020, from https://data.census.gov
US Census. (2020, May 19). US Census Bureau News. Retrieved June 2020, from
https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-1
Appendix A. Public Comment
Pole Yard Urban Renewal District – Public Informational Meeting Via Webex
September 9th, 2020
Meeting Summary
Panelists:
Brit Fontenot, Director, Bozeman Economic Development
David Fine, Bozeman Economic Development
Mike Veselik, Bozeman Economic Development
Dani Hess, Bozeman Community Engagement Coordinator
Janet Cornish, CDS of Montana, project consultant
Lanette Windemaker, AICP, project consultant
15 Participants joined the meeting via Webex
The meeting began with a slide show that included information on the Montana Urban Renewal
Law and how it can provide the City with a useful “tool” to address conditions that contribute
to blight within an area in the northeast quadrant of the City of Bozeman (the Pole Yard). The
ability to use Tax Increment Financing (TIF) to help fund urban renewal projects was also
addressed. The slide show presented information contained in the “Statement of Blight”,
which is the basis for the Resolution of Necessity, which will be considered by the Bozeman City
Commission on September 15th, 2020. The Resolution establishes the eligibility of the Pole Yard
for Urban Renewal District (URD) designation. The presentation also demonstrated how the
creation of a URD would be in keeping with existing City plans related to the economy and
public infrastructure. Finally, goals for the urban renewal district were listed.
Following the presentation about the proposed Pole Yard URD, members of the public were
invited to submit questions orally and in writing to the panelists.
Participants asked questions and expressed concern about the following:
• How development can occur in light of the Superfund designation on the Idaho Pole
site/what restrictions would be in place
Answer: The URD has no control over development; development must follow applicable
City, State and/or Federal requirements.
• Whether “de-listing” of the site (reference to the National Priorities List established by
the US Environmental Protection Agency) will create a health and safety issue
Answer: This is a legal question. The URD has no impact on the legal issues having to do
with the Superfund site.
• Why certain sites adjacent to the study area were not included, particularly wetlands
Answer: Urban renewal is an economic development tool to help grow the tax base; parcels
not intended for economic development are generally not included.
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-2
• Why graffiti is considered “blight”, when it can be described as public art
Answer: Graffiti applied without the property owner’s consent can be considered blight.
• Liability issues associated with making the Idaho Pole site part of a URD
Answer: This is a legal question. The URD has no impact on the legal issues having to do
with the Superfund site.
• Whether this is this a new tax or just a redistribution of tax dollars
Answer: Urban renewal does not add any new taxes; TIF affects the way that the
incremental increases in property taxes are distributed once collected.
• Types of projects proposed for the URD
Answer: Priority may be given to public infrastructure that promotes public health and
safety; such as sewer, water and street improvements. The City Commission will
determine what has priority.
• How TIF would affect individual property owners
Answer: Urban renewal does not add any new taxes; however, if an individual property
owners improve their properties, the State of Montana will adjust their property taxes
appropriately.
• Funding trail connections from the wetlands to the depot
Answer: Trail connections, parks and public open space are eligible for funding; however,
all funding is evaluated based on criteria such as - priority, nexus, proportionality and
connectivity.
• The urgent need to understand the consequences of development now, rather than at
the time a specific development is proposed
Answer: The City can only respond to specific requests, not hypothetical development
ideas.
• Understanding why anyone would oppose the creation of a URD
Answer: Opposition comes from a lack of understanding about urban renewal and TIF, the
stigma of a blight designation, and a philosophical disagreement with the “but for” need
for urban renewal, believing that development will occur anyway.
• Regarding who makes the decision on creation of a URD and what projects are funded
Answer: The City Commission is the final authority; it approves the budget and all work
must be done in accordance with the City procurement requirements.
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-3
Pole Yard Urban Renewal District – School District Public Informational Meeting Via Webex
September 14th, 2020
Meeting Summary
Attendees:
Brit Fontenot, Director, Bozeman Economic Development
Mike Veselik, Bozeman Economic Development
Dani Hess, Bozeman Community Engagement Coordinator
Lanette Windemaker, AICP, project consultant
Mike Waterman, Bozeman Public Schools - Business Services
Steve Johnson, Bozeman Public Schools - Operations
Andy Willett, Chair, School Board Trustee
Douglas Fischer, School Board Trustee
The meeting began with a slide show that included information on the Montana Urban Renewal
Law and how it can provide the City with a useful “tool” to address conditions that contribute
to blight within an area in the northeast quadrant of the City of Bozeman (the Pole Yard). The
ability to use Tax Increment Financing (TIF) to help fund urban renewal projects was also
addressed. The slide show presented information contained in the “Statement of Blight”,
which is the basis for the Resolution of Necessity, which will be considered by the Bozeman City
Commission on September 15th, 2020. The Resolution establishes the eligibility of the Pole Yard
for Urban Renewal District (URD) designation. The presentation also demonstrated how the
creation of a URD would be in keeping with existing City plans related to the economy and
public infrastructure. Finally, goals for the urban renewal district were listed.
Following the presentation about the proposed Pole Yard URD, the attendees were invited to
ask questions and comment on the proposal.
• Steve Johnson commented that the school district does have to levy higher taxes
because of URD districts; and objects to the potential 40-year lifespan of URD districts.
• Mike Waterman showed graphs that indicated URDs comprised 4.25 percent of the
elementary school district; and account for $11.59 per $100,000.
• There was discussion about how the area of these districts was selected, and if there
were any more on the horizon.
• Brit Fontenot concurred that there are no other areas under consideration at this time.
• It is unknown at this time if the School Board will have this as an item on a formal
agenda; and/or take a position on the item.
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-4
Pole Yard Urban Renewal District Plan
Meeting with the Gallatin County Commission
September 21, 2020 – 8:30 a.m.
Attendees:
Commissioners Joe Skinner, Scott MacFarlane and Don Seifert
City of Bozeman Representatives Brit Fontenot, Dani Hess and Mike Veselik
Urban Renewal Consultants Janet Cornish, CDS of Montana and Lanette Windemaker, AICP
County Staff
Summary:
Brit presented slides summarizing the purpose of and the process associated with the creation
of an urban renewal district as well as the timeline for the creation of the Pole Yard Urban
Renewal District. Information included a map of the study area examined for conditions that
contribute to blight and an explanation of tax increment financing (TIF), a tool that is authorized
for use in urban renewal districts in state statute.
Following the presentation, there was a discussion of those present and the following questions
were addressed:
Question: Is there any county land within the study area?
Answer: There is a tiny piece within the study area that will be removed. Lands north and east
of the study area are within the county.
Question: Can the county property within the study area be annexed and then included in the
new urban renewal district (URD)?
Answer: There is not enough time to complete an annexation within the time frame for the
creation of this URD.
Question: Why is the City of Bozeman choosing to complete the process of creating a URD with
a TIF provision by the end of 2020?
Answer: The City wants a base year of 2020 and in accordance with the current state statutes.
The 2021 Legislature could make changes to the law and the City prefers to operate under
existing conditions.
Question: Where are we on the life of the Downtown URD (the oldest one in the City of
Bozeman)?
Answer: The district’s life has been extended until 2032 in order to pay debt service on a TIF
bond. The City of Bozeman has a remittance agreement for this district with the County and
the School District.
Question: Does the Commission have any decision-making authority with respect to the
creation of a URD?
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-5
Answer: The Commission can offer input but does not have decision-making authority.
Question: What is the actual life of a URD tax increment provision?
Answer: A district is authorized for 15 years but bonds can be issued for a period not to exceed
25 years. Bonds extending the life of a district cannot be issued after the 15th year.
Question: Has the City given any consideration to adjusting the base value of the district at
some point in the future?
Answer: The Urban Renewal Plan does not specifically mention whether the City has any
interest in adjusting the base; however, state statute does allow for that to occur.
Question: Is any action required of the Commission?
Answer: No, this was just an informational meeting. The Commission will receive a notice of
the public hearing on the ordinance creating the URD and adopting the plan, where there will
be an opportunity to offer input.
Following the discussion, members of the Commission indicated an interest in learning of the
final boundary, once determined.
Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-6
Pole Yard Urban Renewal District
Public Informational Meeting with Gallatin County Board of Health
September 24th, 2020
Summary
Attendees:
Brit Fontenot, Director, Bozeman Economic Development
City staff updated the Board on the City of Bozeman’s consideration of creation of an Urban
Renewal District (URD) on the Idaho Pole site. A URD is a tool available to local governments to
help develop blighted areas and move toward use of Tax Increment Financing (TIF) funds to use
public funds to pay for public infrastructure and incentivize private development. The City of
Bozeman staff described this process and expressed their interest in ongoing dialogue.
The Board was not being asked to make any decisions regarding the Idaho Pole site.
Pole Yard Urban Renewal District Plan – Appendix B – 2020 Page B-1
Appendix B. Property Ownership Data