Loading...
HomeMy WebLinkAbout03-11-21 Agenda - Northeast Urban Renewal Board (NURB)A. Call meeting to order at 6:30pm Via WebEx https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php? MTID=e48040771b93a4c3b253aa10e423096e7 Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting Via Phone: This is for listening only • Call-in toll number (US/Canada): 1-650-479-3208 • Access code: 182 588 2450 B. Disclosures C. Changes to the Agenda D. Public Service Announcements E. Approval of Minutes E.1 Approve Minutes from June 16, 2020. (Fine) E.2 Approve minutes for January 7, 2021 (Fine) E.3 Approve minutes from Thursday, March 4, 2021. (Fine) F. Consent G. Public Comment Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. H. Special Presentation I. Action Items I.1 Financial Status of the NURB Fund(Sullivan) THE NORTHEAST URBAN RENEWAL BOARD OF BOZEMAN, MONTANA NURB AGENDA Thursday, March 11, 2021 Bozeman Northeast Urban Renewal Board Meeting Agenda, March 11, 2021 1 I.2 Resolution 2021-01 - A Resolution of the City of Bozeman Northeast Urban Renewal Board Recommending the Bozeman City Commission Approve an Urban Renewal Project to Purchase Structured Public Parking at the Former Lehrkind Brewery Site to be Developed as Part of the Cottonwood and Ida/ The Brewery Mixed-Use Project Located Within the Northeast Urban Renewal District and Finance All or a Portion of the Cost of Such Project by the Issuance of Tax Increment Urban Renewal Revenue Bonds.(Fine) I.3 Looking Forward/ Set Agenda for April 1, 2021 (Fine) J. FYI/Discussion K. Adjournment For more information please contact David Fine: dfine@bozeman.net This board generally meets the first Thursday of the month from 6:30 p.m. to 8:30 p.m. Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301). Bozeman Northeast Urban Renewal Board Meeting Agenda, March 11, 2021 2 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Approve Minutes from June 16, 2020. MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Approve minutes. STRATEGIC PLAN: 1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND: Approve Minutes from June 16, 2020. UNRESOLVED ISSUES: n/a ALTERNATIVES: n/a FISCAL EFFECTS: n/a Attachments: NURB 061620 min..doc Report compiled on: January 4, 2021 3 NURB Meeting – June 16, 2020 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, June 16, 2020 The Northeast Urban Renewal Board met in regular meeting at 5:00 p.m. on Tuesday, June 16, 2020, via Webex. Present: Absent: Voting Members: Bobbi Clem Corwin Dormire Dan Doehring John Usher Jeanne Wesley-Wiese Non-Voting Members: Ethan Barlow Nolan Campbell Robert Pavlic Commissioner Liaison: I-Ho Pomeroy Staff: David Fine, Urban Renewal Program Manager Mike Veselik, Economic Development Specialist Robin Sullivan, Recording Secretary Guests: Brit Fontenot, Economic Development Director Call to Order – Chair Bobbi Clem called the meeting to order at 5:08 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – NOTE: Mike Veselik read a statement prepared by the City Attorney to ensure that this Webex meeting meets all of the legal requirements for an open meeting. He repeated the required statement throughout the meeting as needed. No comment was received under this agenda item. Minutes – March 3, 2020. It was moved by Jeanne Wesley-Wiese, seconded by Daniel Doehring, that the minutes of the regular meeting of March 3, 2020 be approved as submitted. The motion carried on a 4-0 vote. 4 NURB Meeting – June 16, 2020 2 Discussion/Action Items – Update on financial status of NURB fund. Robin Sullivan noted that a copy of the FY2020 revenues and expenditures to date was e-mailed to the Board prior to this meeting. She briefly highlighted the report, noting that she anticipates additional expenses will be submitted prior to June 30. Also, the second half property tax revenues have not yet been distributed among the various City funds, so she anticipates the ending balance for the year will be close to the balance on this report. Discussion on budget and work plan for Fiscal Year 2020-2021. A copy of the work plan and budget was included in the information submitted to the board members via e-mail. David Fine characterized the document as staff’s best effort to develop a work plan and budget that meets the priorities of the Board within the financial opportunities currently available. He noted that some of the projects are driven by the Cottonwood & Ida project, particularly the small pieces of street improvements that will be left over after the required off-site improvements are completed. This includes the small portion of Front Street between the terminus of the East Tamarack Street improvements and North Ida Avenue. He proposed that the engineering of that small street section be completed this year and that, if possible, it be included with the bid for the other streets to hopefully capture the savings of doing the work in a larger project. He acknowledged that monies for the construction will probably not be available this fiscal year but would be next fiscal year. David Fine noted that a block of North Ida Avenue will also not be improved with the Cottonwood & Ida project; however, he proposed that both the engineering and construction of that project be delayed because there have been no proposals for redevelopment of the parcels along that block. It will be an expensive project since the underground utilities need to be replaced, and service lines will need to be installed in conjunction with any redevelopment. David Fine stated that staff is also proposing engineering work be done for the pedestrian bridge, with construction being considered next fiscal year. The projected cost of the project is based on the estimated costs for crossing Bozeman Creek for the Front Street trail. The bids for that project are to be opened yet this year, so the actual costs can be more accurately identified for this bridge. He then highlighted the other infrastructure projects included in the proposed budget, including $15,000 for the Front Street connector trail, as requested by GVLT and the Parks Department a few months ago, and $11,500 for the quiet zone study. He reported that the study is under contract and is progressing; and an equal amount has been committed by the Tin Works, the Cannery District and potentially the Idaho Pole site developers. The $50,000 budgeted for the quiet zone construction is simply a placeholder until the study identifies the improvements needed for a quiet zone designation. Also, the monies included for the connector trail to the Audobon site is simply a placeholder for that potential project. He cautioned that, under the State Statutes for tax increment financing districts, it does not appear monies can be legally expended outside the district for this trail connection. David Fine turned his attention to the trails and boulevards maintenance line item. He noted that boulevard trees are currently being planted along East Tamarack Street where possible, using the City’s tree share program for purchase and planting of the trees. He had hoped to plant eighteen boulevard trees along the street frontage; however, the location of many utilities in the boulevard has resulted in planting only seven trees. The trees are being planted this summer, and the maintenance line item for next year includes a contract for water bags to 5 NURB Meeting – June 16, 2020 3 ensure the trees become established before they are turned over to nature. He indicated that the contract is for a two-year period, so the monies will need to be budgeted next year as well. David Fine concluded by briefly highlighting the administrative support, staffing, professional services and bond repayments costs in the proposed budget. He noted the last line is a designated reserve for future projects since there are not sufficient monies to cover the costs of any single project this fiscal year. Bobbi Clem thanked staff for drafting the proposed budget, stating she feels it is well thought out. Jeanne Wesley-Wiese voiced concern about the increased costs for the pedestrian bridge, with the construction estimate now at $170,000. She noted that the Board has already paid a significant amount for engineering on the bridge. She then questioned the tree planting along East Tamarack Street, since she doesn’t recall any prior discussion on the issue. David Fine responded that KLJ did not scope the planting of boulevard trees in the East Tamarack Street improvements, so the trees that were removed for the project were not replaced. In light of that oversight, he and Mike Veselik have worked with the City Forestry Department and its cost share program to get those trees planted in the most cost effective manner possible. Jeanne Wesley-Wiese noted that when the Board originally began discussing future projects to be funded, the projects included some type of identification as the entrances to the district along East Peach Street and East Tamarack Street. She finds the bridge installation by the Montana Department of Transportation on East Peach Street very minimalist and suggested that some type of aesthetic improvement be considered. John Usher stated the new bridge on East Tamarack Street has three horizontal pieces of metal attached to the edge of the bridge. David Fine suggested that the consulting engineers spend some time with the Board to discuss the aesthetics side of bridge projects. Jeanne Wesley-Wiese expressed an interest in seeing the actual bid for the new pedestrian bridge for the Front Street connector trail. She then voiced her hope that some of the engineering work previously done for the pedestrian bridge project can be used. John Usher stated he is interested in seeing how much the floodplain extension has impacted the estimated costs of the pedestrian bridge. David Fine cautioned that construction costs are going up double digits every year; and it is often hard to get good projects done because of both public and private demands for services from those contractors. Responding to Bobbi Clem, David Fine stated this is the only meeting for Board to consider and act on its budget given the state of the world. As a result, he asked that the Board consider the work plan and budget as submitted and entertain any suggestions for revisions to the document. He then cautioned it will difficult for him to get actual budget numbers for the suggested aesthetic improvements to the two street bridges. 6 NURB Meeting – June 16, 2020 4 Responding to Bobbi Clem, David Fine indicated that the engineering work he has reviewed for the pedestrian bridge has been preliminary rather than substantial work. Jeanne Wesley-Wiese voiced her concern that monies spent on engineering have been wasted because when engineers are changed, the initial engineering work is not used. Brit Fontenot indicated he will review the engineering work done by the prior engineering firms for the pedestrian bridge to see if any of that work can be used to reduce costs. David Fine stressed the importance of doing the engineering work for a project just prior to doing the construction because engineering can go stale, floodplains change, and state and federal regulations change. Bobbi Clem noted that ThinkTank is now designing a parking garage instead of surface parking on the Brewery site for the Cottonwood & Ida project. She stated there is some discussion about a portion of the parking being public parking and asked if some monies should be budgeted to address that portion of the project. David Fine identified the importance of doing due diligence when considering a public/private partnership; and he feels it would be appropriate to budget monies to cover those costs. He indicated that the due diligence could include a consulting engineer or a parking consultant. A development agreement could also be needed, which would involve an attorney. He proposed that the Board consider taking $25,000 from the reserve for projects and creating a new line item in the work plan and budget for this item. Jeanne Wesley-Wiese stated she feels it is a good idea; however, she questioned whether monies are available for this purpose. She then voiced her frustration that the first project on the Board’s initial list has been pushed aside for monies to be spent on other projects, and the costs of constructing the bridge have continued to escalate. Responding to those concerns, Brit Fontenot noted the strategy in this budget is to make the district ready for projects and noted it is important to stay flexible and make decisions as opportunities arise. Responding to questions from John Usher, David Fine stated the budget provides spending authority, which is different from the actual expenditure of monies. John Usher stated he anticipates the parking garage will happen, and he feels it would be good for this Board to be involved; however, he is also sensitive to Jeanne Wesley-Wiese’s concerns. Dan Doehring stated this portion of the district is busy and is only going to get busier. He agrees with the idea of more parking and feels the Board should at least look into it, since it is important to make more parking available for residents. John Usher noted the initial proposal was for underground parking on the Cottonwood & Ida site but, because of constraints, the developer has chosen to purchase the Brewery site and meet the parking demands on that site. 7 NURB Meeting – June 16, 2020 5 David Fine briefly reviewed the history of the Cottonwood & Ida project, noting that a Planned Unit Development for that project exists; and it includes designated off-site parking for the commercial portion on the Brewery lot. That parking was to be surface parking under a 25-year agreement. The developer has since revised the plans for the Cottonwood & Ida project to include fewer residential units and to include development of the Brewery site. Under the new plan, parking is to be provided in a parking structure hidden behind a wrap of residential units, with a portion of the parking spaces to be made available to the public. He stated the underground parking on the Cottonwood & Ida site will not be done because of the high groundwater on that site. Bobbi Clem suggested that monies be added to the budget for the parking structure and that ThinkTank be asked to provide an update to the Board. Mike Veselik reminded the Board that the budget provides spending authority and, if this project does not get off the ground, the monies will not be expended and will return to the reserve. It was moved by Bobbi Clem, seconded by Daniel Doehring, that the Board move $25,000 from the reserve for projects to a new line item to fund consultant services for the parking structure proposed for the Brewery site. The motion carried on a 4-0 vote. It was moved by Bobbi Clem, seconded by Jeanne Wesley-Wiese, that $700 be moved from the reserve for projects to the Trails/Boulevards Maintenance line item to cover the costs of planting trees in the East Tamarack Street boulevard. The motion carried on a 4-0 vote. It was moved by Bobbi Clem, seconded by Daniel Doehring, that the work plan and budget for Fiscal Year 2020-2021 be adopted as modified. The motion carried on a 4-0 vote. Set new day of week for Board meetings. David Fine reported that the City Commission has moved its meetings to Tuesday evenings; and the City Manager has asked staff and those boards meeting on Tuesday evenings to find another night for their meetings. He proposed that the Board consider moving its meetings to 6:30 p.m. on Thursday evenings. Following a brief discussion, it was moved by John Usher, seconded by Jeanne Wesley-Wiese, that the Board set its meetings for the first Thursday of every month at 6:30 p.m. The motion carried on a 4-0 vote. Staff updates on items of interest to the Board. David Fine introduced Mike Veselik to the Board. Mike Veselik stated he has been working for nearly two months. He grew up in Chicago and, prior to moving to Bozeman, spent eight years in Washington, DC, both on and off Capitol Hill. He noted that his wife is from Bozeman and wanted to move back home. David Fine briefly addressed the tree planting issue along East Tamarack Street, noting that utility conflicts made it extremely difficult to find places to plant boulevard trees. He stated that staff did their due diligence in working on this issue, to ensure properties along the roadway were treated equally. 8 NURB Meeting – June 16, 2020 6 Mike Veselik stated no trees are being proposed along the Brewery site at this time because of the impending development, including landscaping of the site. David Fine stated he will provide updates to the Board once he has information from ThinkTank about the Cottonwood & Ida project as well as development of the Brewery site. David Fine noted there are now two people in the Economic Development Department that will be working with the urban renewal districts, with Mike Veselik doing the day-to-day work on projects. He indicated that he will be out of the office for a period of time in September and October. Discussion - Looking forward. There was no discussion under this agenda item. Set agenda for July 2, 2020 meeting or cancel meeting. The Board determined that the July 2 meeting should be cancelled, particularly since it is only three weeks away. The members also expressed an interest in holding an in-person meeting rather than a Webex meeting if at all possible. Bobbi Clem suggested that an August 6 meeting be considered. Mike Veselik reported the City Manager has encouraged staff to not hold Webex meetings for advisory boards unless absolutely necessary. As a result, he suggested that the Board consider holding its next meeting after in-person meetings are allowed. FYI/Discussion. Bobbi Clem announced that another art project will be held at the Tin Works building. She noted that some art has already been set up in front of the warehouse and encouraged board members to view the artwork. Jeanne Wesley-Wiese noted the sculptures and mural on the building facing East Cottonwood Street has been done by an artist from Romania. She stated it reflects what the district and the people are going through. Adjournment – 6:57 p.m. There being no further business to come before the Board at this time, Chair Clem adjourned the meeting. Bobbi Clem, Chair Northeast Urban Renewal Board City of Bozeman 9 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Approve minutes for January 7, 2021 MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Approve minutes for January 7, 2021 STRATEGIC PLAN: 1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND: n/a UNRESOLVED ISSUES: n/a ALTERNATIVES: n/a FISCAL EFFECTS: n/a Attachments: NURB 010721 min.doc Report compiled on: January 28, 2021 10 NURB Meeting –January 7, 2021 1 Northeast Urban Renewal Board (NURB) Regular Meeting Thursday, January 7, 2021 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Thursday, January 7, 2021, via WebEx. Present: Absent: Voting Members: Bobbi Clem Corwin Dormire Dan Doehring Jeanne Wesley-Wiese Non-Voting Members: Ethan Barlow (arrived at 6:58 pm) Robert Pavlic Commissioner Liaison: I-Ho Pomeroy Staff: David Fine, Urban Renewal Program Manager Mike Veselik, Economic Development Specialist Robin Sullivan, Recording Secretary Guests: Erik Nelson, ThinkTank Design Group Karen Filipovich, 426 North Grand Avenue Call to Order – Chair Bobbi Clem called the meeting to order at 6:38 p.m. Due to the lack of a quorum, Bobbi Clem announced that the board members present will listen to the presentation from ThinkTank Design Group but all other agenda items will move to the next meeting. Announcements. David Fine acknowledged that the Board is currently short on members, but there is a logjam in the City Clerk’s office that has kept appointments off the Commission’s agenda. Daniel Doehring announced that, due to recently selling his home on North Church Avenue and moving outside city limits, he will need to resign after this meeting. Special Presentation – Update on the Tinworks Project (Cottonwood and Ida) and the former Brewery Site (Tamarack and Wallace) – Erik Nelson, ThinkTank Design Group. Erik Nelson indicated that he is willing to make a presentation at this time but wishes to also make a presentation to the entire Board at next month’s meeting. 11 NURB Meeting –January 7, 2021 2 Erik Nelson identified the changes that have occurred since the Board saw the plans for the Cottonwood and Ida project a couple years ago. He noted the project has now been renamed the Tinworks Project, and it is largely the same as it was before; however, the Brewery site is now a part of the project since it will provide parking for the project. He reminded the Board that the project includes 50 rental units, and 15 to 20 percent of those will be affordable units. He briefly highlighted the styles of residential units, which include row houses along North Ida Avenue that will look like little townhouses, and 1 and 2 bedroom units for sale that look like flats. In addition, there will be commercial uses along East Aspen Street and a larger commercial building with rental space along East Cottonwood Street. A large plaza open to the public will also be provided on the site. A new building will be located on that portion of the site currently housing the Tinworks building. Erik Nelson reminded the Board that the original plan included parking under the entire site. Because of the costs of that underground parking, the area was reduced to half of the site; but that proved to be still too costly. As a result, parking for the project was relocated to the Brewery site and was originally planned as surface parking. Erik Nelson stated that construction on the Tinworks Project is expected to begin in June. The project includes about 73 residential units and 30,000 square feet of commercial space. From a taxing authority perspective, he estimated that the $45 million project will generate about $450,000 annually in taxes for the district. Erik Nelson turned attention to the Brewery project. He noted that, upon review of the original design, it was determined that the parking lot would cover about two-thirds of the site; and that is a poor use of this space within the district and is not respectful of the Brewery site. Subsequently, the plans have evolved to include a parking structure with 207 parking spaces flanked by residential units in the 100 to 120 percent of AMI range, which is the missing middle in the current Bozeman market, and some commercial spaces. The residential development will include row houses, lofts above the commercial space and some flats. Erik Nelson reminded the Board that the original development agreement for the Tinworks Project included the underground parking spaces. With the reduction in those spaces, parking was removed from the development agreement, leaving the infrastructure improvements, including off-site roads, water and sewer, and dark sky compliant lighting, subject to pay back through an estimated $2.2 million bond issue. With the changes to the plans and expansion of the project, it is now estimated the total project will cost $65 million, generating a projected $650,000 in tax increment annually. The development team views the parking structure as a piece of the transportation infrastructure in the district and is requesting that it be included in the development agreement. Erik Nelson stated that Phase 1 of the Brewery site development is the parking structure, and it is to be constructed simultaneously with the Tinworks Project. He asked that the board members provide feedback on this proposal and that they be prepared to ask additional questions at next month’s meeting. Bobbi Clem stated she feels the northeast area is where growth needs to happen, and the parking structure will be helpful in that development, particularly on those small lots where development is currently very restricted due to parking requirements. She voiced support for the mixture of buildings, the varying architecture and access to the site from East Tamarack Street. She feels this is a good use of the site and will benefit the neighborhood. 12 NURB Meeting –January 7, 2021 3 Erik Nelson observed that a public parking garage functions much differently than private parking. He stated 170 parking spaces are required for the proposed development, leaving just over 30 parking spaces available for public use. He noted that, with turnover in parking throughout the day, the capacity of the parking structure is expanded. He views this parking structure as an asset, addressing the parking challenges in this immediate area. He also noted that providing access from East Tamarack Avenue will take pressure off North Wallace Avenue and other streets in the area. Dan Doehring stated he finds this plan really busy, but a good plan for the site. He voiced support for the access off East Tamarack Street, noting that North Wallace Avenue is a narrow street. He then noted that, with the North Rouse Avenue reconstruction now done, he expects traffic patterns will change as people use that street more. Erik Nelson stated that, with reconstruction of East Tamarack Street and East Peach Street, he feels traffic will naturally flow to those streets. He acknowledged the reality of truck traffic in the district, but recognized the evolution that has occurred. He noted that Molerway Freight Line no longer operates in the district, and the school buses have moved from the existing Karst Stage site to the School District’s bus barn on the west end of town. He expects the district to continue evolving with infill development, and stressed the importance of that development being done in a thoughtful way that maintains the “coolness of the district.” He then noted that streets, water and sewer have always been viewed as infrastructure, but parking is also an important piece of infrastructure. Responding to questions from Ethan Barlow, Erik Nelson stated that he has seen two strategies for constructing a parking garage that could later be transformed to a different use. One option is to construct the garage with dedicated ramps and flattened decks and the other is to design the structure to be taken down. Constructing a parking garage that minimizes the footprint does not create a structure that can adapted to another use. He then stated it makes more sense for the City to own this type of asset than a private individual, particularly when a portion of the spaces are available to the public. He noted that other options were also considered, such as two stories of commercial and residential with a parking garage above. He also has considered exterior treatments that could minimize the visual impacts of the parking garage. Responding to questions from Bobbi Clem, Erik Nelson stated there are no specific plans for bike facilities in the parking structure at this time, but will be included as building plans become more finalized. He is also looking at the possibility of chargers for electric cars and electric bikes but has made no firm decisions at this time. He noted it will cost approximately $200,000 to put a solar array on the south face of the parking structure. He concluded by asking who would pay for the electricity used in a publicly available outlet. Bobbi Clem stated all of their buildings are on wind power and cost about $33 a month. She encouraged Erik Nelson to make sustainable power a part of the strategy for this development. Responding to Ethan Barlow, Erik Nelson stated the Tinworks Project will take twenty-four months to complete. Phase 1 of the Brewery site, which is the parking structure, will take eighteen months and will begin six months after the Tinworks Project starts. Phase 2 of the Brewery site will be constructed shortly thereafter. Responding to David Fine, Erik Nelson stated snow can be removed from the upper deck of the parking structure by opening a panel so a dump truck can be backed up to the building via a 13 NURB Meeting –January 7, 2021 4 modified curb cut on North Wallace Avenue and the snow shoved off the deck and into the truck. Erik Nelson stated the new building will be set back from the sidewalk; and bricks from the site will be utilized to create a pedestal seating area between the sidewalk and the building. He had hoped the archway from the Brewery building could be utilized in its original location; however, it did not line up with the new building. He noted that the Tinworks Project will result in losing the existing Tinworks building, which has recently housed art events. He is interested in keeping those events alive, so this site could include a possible artist residency program. Also, the plans provide a space that is 20 feet tall for the first 15 feet of the building with a plaza out front; and that space could potentially be used to continue the art events as they currently exist. Responding to Ethan Barlow, Erik Nelson stated the housing on the Brewery site is designed for the “missing middle” bracket. He noted that the design of that housing does not currently meet City standards so, while the design may change, the intent won’t. Responding to Bobbi Clem, Erik Nelson stated he is contemplating board form concrete for the row houses, similar to an old automotive shop in Wilsall. He acknowledged that one cannot re- create history, but he feels that using rougher materials will result in a project that honors the site and blends with the existing district. Erik Nelson stated the agreement with the Board is for reimbursement of off-site improvements and is in the projected amount of $2.1 million. With the addition of the Brewery site, he projects the annual increment will be about $650,000, and the bond could be increased to closer to $8 million. If the bond repayment cost $350,000 annually, that would leave $300,000 for other projects. He concluded by stating that the lots involved in this development total a little over three acres; and he feels a certain responsibility to help those who are constricted by small lots. David Fine noted one person from the public is in attendance; Karen Filipovich stated she is attending simply to learn more about the project. Erik Nelson stated he has made two presentations to the NorthEast Neighborhood Association and is scheduled to make another one next week. He then noted this Board’s input is extremely important and noted he will try to incorporate it whenever possible. Ethan Barlow asked several questions about the design of the project; Erik Nelson responded that some tweaks need to be made to these concept plans to meet City requirements, including the height of the gable walls for the residential units. Further responding to Ethan Barlow, Erik Nelson stated he is seriously considering the use of wood in this project. David Fine stated this request will go to the Commission in the next couple months. If additional members are not appointed to this Board prior this project going to the Commission, it may go without a Board recommendation. David Fine thanked Dan Doehring for his time on the board and voiced his appreciation for the way he has provided input over the years. 14 NURB Meeting –January 7, 2021 5 Action Items – Set agenda for February 4, 2021 meeting or cancel meeting. In addition to the standard agenda items, the following items were moved from this meeting to the February 4 meeting; Approval of Minutes – June 16, 2020; Update on financial status of NURB fund; Staff update on the status of budgeted items; Election of Chair and Vice Chair for 2021 and Discussion – looking forward. FYI/Discussion. There was no discussion under this agenda item. Adjournment – 7:45 p.m. There being no further business to come before the Board at this time, Chair Clem adjourned the meeting. Bobbi Clem, Chair Northeast Urban Renewal Board City of Bozeman 15 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Approve minutes from Thursday, March 4, 2021. MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Approve minutes from Thursday, March 4, 2021. STRATEGIC PLAN: 1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND: Approve minutes from Thursday, March 4, 2021. UNRESOLVED ISSUES: n/a ALTERNATIVES: n/a FISCAL EFFECTS: n/a Attachments: NURB 030421 min.doc Report compiled on: March 8, 2021 16 NURB Meeting –March 4 2021 1 Northeast Urban Renewal Board (NURB) Regular Meeting Thursday, March 4, 2021 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Thursday, March 4, 2021, via Webex. Present: Absent: Voting Members: Bobbi Clem Ethan Barlow Natalie Van Dusen Corwin Dormire Jeanne Wesley-Wiese Non-Voting Members: EJ Daws Robert Pavlic Chris Nixon Commissioner Liaison: I-Ho Pomeroy Staff: David Fine, Urban Renewal Program Manager Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary Guests: Erik Nelson, ThinkTank Call to Order – Chair Bobbi Clem called the meeting to order at 6:37 p.m., noting a quorum is not present. Since this is the first meeting for several board members, she asked everyone to introduce themselves. Bobbi Clem stated she has been on the Board almost five years; however, she will soon be leaving Bozeman and this Board as she is moving to Seattle. EJ Daws stated he is a fourth generation Bozemanite and has connections to this district because his grandparents had the Kessler Dairy, the first production dairy in the city. In fact, the Kessler Dairy was in the northeast neighborhood in the 1950s and 1960s. He works for Outlaw Partners, which is based in Big Sky but plans to soon open an office in this neighborhood. Natalie Van Dusen, owner of Treeline Coffee Roasters, stated she has lived in Bozeman for the past ten years. 17 NURB Meeting –March 4 2021 2 Chris Nixon stated he has been one of the owners of the Lehrkind Mansion for nearly 25 years. He reported that the property is on the market and, while he would like to stay in Bozeman, there is really nothing available to buy. He is still heavily involved in the wetlands project on the east side of Bozeman and wishes to remain here, at least on a part-time basis. Erik Nelson stated he is excited to meet the new board members. He suggested that, since no quorum is present, he talk to Natalie Van Dusen and EJ Daws individually to familiarize them with the Tinworks Project so they are prepared to consider it at the next Board meeting. Responding to Bobbi Clem, Erik Nelson stated they plan to start vertical construction in August; and the off-site improvements for the Tinworks Project are scheduled to begin toward the end of May. He noted that Board action on the proposed resolution for the parking structure could occur at next month's meeting without negatively impacting the timeline, or he suggested the possibility of a special meeting later this month. David Fine noted that Chris Nixon has a conflict with the first Thursday night of the month; and he has found that having two urban renewal board meetings on the same night has negatively impacted his workload. As a result, he suggested this Board may wish to move its regular meeting night to either the second or third Thursday of the month. David Fine proposed that the Board consider a special meeting next Thursday night, March 11, at 6:30 p.m., noting that the meeting requires a 48 hour public notice. The board members present voiced agreement for that proposal; and Erik Nelson indicated he will make a presentation at that time. He then asked that board members talk to him prior to that meeting if they have questions or need additional information about the project. David Fine asked that board members review the packet material and forward any questions to staff prior to the meeting. He acknowledged that this project has a lot of moving parts, but the basic policy question is "does the Board endorse the idea of public parking as part of The Brewery project"? He reminded the Board that it had previous been supportive of the underground parking on the Cottonwood and Ida project site; however, that parking option proved to be much too expensive. He noted that once the Board has answered the question of whether public parking would be appropriate as a part of this project, staff will work out the details and ensure that the project works financially. Responding to Bobbi Clem, David Fine stated the Board will also need to work on its work plan and budget for Fiscal Year 2021-2022. He noted that the documents in the packet have been prepared by staff as a starting point for Board discussion and action. Adjournment – 7:02 p.m. Since there was no quorum to conduct business at this time, Chair Clem adjourned the meeting. Bobbi Clem, Chair Northeast Urban Renewal Board City of Bozeman 18 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Financial Status of the NURB Fund MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Discuss the Financial Status of the NURB Fund. STRATEGIC PLAN: 4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND: Staff traditionally provides an update on the financial status of the NURB fund at each meeting of the Northeast Urban Renewal Board UNRESOLVED ISSUES: n/a ALTERNATIVES: n/a FISCAL EFFECTS: n/a Attachments: 20-21 work plan update 030421.xlsx Report compiled on: January 4, 2021 19 FY21 Budget Update 03/04/2020 Revenues: Estimated Beginning Balance $270,000.00 $314,812.00 FY21 Tax Increment $210,000.00 $94,542.00 Delinquent Increment $3,043.00 State Shared/Entitlement Interest $1,000.00 $481.00 Total Estimated Revenues $481,000.00 $412,878.00 Expenditures: Infrastructure Front Street - Tamarack to Ida Engineering $30,000.00 Pedestrian Bridge/East Aspen Street Engineering $30,000.00 Front Street connector trail $15,000.00 Quiet Zone Feasibility Study $11,500.00 $11,400.00 Parking Structure $25,000.00 Subtotal - Infrastructure $111,500.00 $11,400.00 Maintenance Trails/Boulevards Maintenance $5,700.00 $884.00 Subtotal - Maintenance $5,700.00 $884.00 Administration Staff Support $3,000.00 $850.00 Administrative Services $10,100.00 $5,228.00 Professional Services $10,000.00 Bond Repayment $93,000.00 $46,000.00 Subtotal Administration $116,100.00 $52,078.00 Reserves Designated Reserve - Bond $120,900.00 Designated Reserve - Projects $126,800.00 Subtotal Reserves $247,700.00 $0.00 Total Expenditures $481,000.00 $64,362.00 Balance $348,516.00 Northeast Urban Renewal District 2020-2021 20 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Resolution 2021-01 - A Resolution of the City of Bozeman Northeast Urban Renewal Board Recommending the Bozeman City Commission Approve an Urban Renewal Project to Purchase Structured Public Parking at the Former Lehrkind Brewery Site to be Developed as Part of the Cottonwood and Ida/ The Brewery Mixed-Use Project Located Within the Northeast Urban Renewal District and Finance All or a Portion of the Cost of Such Project by the Issuance of Tax Increment Urban Renewal Revenue Bonds. MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Adopt Resolution 2021-01 STRATEGIC PLAN: 2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND: The Northeast Urban Renewal Board (NURB) previously entered into a memorandum of understanding with the development group behind the Cottonwood and Ida Project (aka "Tinworks") to purchase underground public parking that would be constructed as part of the project and purchased by the City with urban renewal funds upon completion of the project. While the purchase of public parking was not ultimately included in the development agreement with Cottonwood and Ida, the Board has already indicated that procuring public parking for the benefit of the District is a board interest. The Cottonwood and Ida development group has procured the former brewery site with the intent of building a housing, commercial space and a parking structure, with the intent of selling structured parking spaces to the City. While the location of these spaces has changed, the ultimate goal of creating public parking in the NURD, previously endorsed by the Board, remains. The City Commission approved a development agreement with Bangtail Partners, LLC (“Bangtail”) for the Cottonwood and Ida mixed-use project in 2019, following a positive recommendation by the Northeast Urban Renewal Board. The project, as revised, will include 73 units of housing including 20 for-sale townhomes and condos and 53 for-rent apartments with 20% of the apartments offered at rates affordable for households making 70% AMI with the remainder of the units accessible to households making 100% AMI. The 21 project includes 25,120 SF of office space, 7,200 SF of commercial space, a public plaza and significant street and streetscape improvements, including the addition of a parking area for the “Boulder Park”. The project includes 62 spaces of on-site, underground parking for the residential units with off-site parking provided for the commercial development at the former brewery site at the corner of Tamarack and Wallace. “The Brewery” project at Tamarack and Wallace represents a complimentary development to Cottonwood and Ida project. Phase 1 of the project with include 14 two bedroom units of housing and a second phase including 28 two bedroom units. The project adds 8,000 SF of commercial space. The project also includes 167 parking spaces. Under the proposed plan, Bangtail would construct the parking garage and sell at least 124 spaces to the City for public use. Bangtail would retain the remaining spaces for their exclusive use. The City would purchase the public spaces with tax increment funds generated by Cottonwood and Ida and The Brewery Project and make them available by permit to the public. The project would plan to purchase a number of permits from the City for their use. Resolution 2021-01 provides the Board’s recommendation to the Bozeman City Commission to purchase a significant amount of structured public parking as part of The Brewery project. The Application includes an analysis of how the Project conforms to the guiding principles of the Northeast Urban Renewal Plan. The Resolution makes some of these findings on behalf of the Board and recommends that staff work on due diligence associated with the project with the intent of finalizing a development agreement to purchase public parking that would be constructed as part of the project. While the location of these spaces has changed, the ultimate goal of creating public parking in the NURD, previously endorsed by the Board, remains. With adoption of this Resolution, the Board would be confirming its interest in creating public parking for the District and recommending to the City Commission that the parking be constructed as part of this urban renewal project. UNRESOLVED ISSUES: Resolution 2021-01 is a resolution of recommendation and does not bind the City of Bozeman to the project. The Resolution shows that the Board recommends the purchase of public parking for the benefit of the District from The Brewery project. With the Board’s affirmative recommendation, Staff will commence the significant due diligence necessary for this project. This due diligence includes working with the Montana Department of Revenue and financial advisors to ensure the generation of new tax revenue necessary to complete the project, developing an operating pro forma for the garage to ensure that the City receives an asset that can cover its 22 operation and maintenance through permit fees, as well as working with the development team to make sure the proposed garage and can operate in a manner that serves the public well. If these areas of due diligence show positive results, Staff will work with the Bangtail to bring a development agreement to the City Commission for its consideration. Adoption of this Resolution would complete the Board’s work as an advisory board related to this project. ALTERNATIVES: As suggested by the Board. FISCAL EFFECTS: While adoption of this Resolution has no fiscal effects, future actions related to this project are likely to have significant fiscal effects. Attachments: NURB Resolution 2021-01 Brewery Garage.docx COTTONWOOD AND IDA TIF REQUEST DRAFT 2-19-2021.pdf Report compiled on: March 1, 2021 23 Northeast Urban Renewal District Board Resolution 2021-01 1 RESOLUTION OF THE CITY OF BOZEMAN NORTHEAST URBAN RENEWAL DISTRICT BOARD RECOMMENDING THE BOZEMAN CITY COMMISSION APPROVE AN URBAN RENEWAL PROJECT TO PURCHASE STRUCTURED PUBLIC PARKING AT THE FORMER LEHRKIND BREWERY SITE TO BE DEVELOPER AS PART OF THE COTTONWOOD AND IDA/ BREWERY MIXED-USE PROJECT LOCATED WITHIN THE NORTHEAST URBAN RENEWAL DISTRICT AND FINANCE ALL OR A PORTION OF THE COSTS OF SUCH PROJECTS BY THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL REVENUE BONDS WHEREAS, the Northeast Urban Renewal District Plan was duly adopted by the Bozeman City Commission by City of Bozeman Ordinance No. 1655, dated November 28, 2005 (the “Plan”); and WHEREAS, the City of Bozeman Northeast Urban Renewal District Board (the “Board”) has been duly established by the Bozeman City Commission as provided for in the Northeast Urban Renewal District Plan; and WHEREAS, the Blight Study for the Northeast Urban Renewal District complete June 6, 2005, identified defective, inadequate and deficient public infrastructure and transportation facilities; and WHEREAS, through Commission Resolution No. 3835, the Bozeman City Commission declared that blight within the Northeast Urban Renewal area associated with the defective or inadequate street layout; and inadequate provisions and/ or age obsolescence public improvements: water, sewer, storm drainage, streets, sidewalks and parks; and that rehabilitation and redevelopment is necessary in the interest of the public; and WHEREAS, the Plan has the mission, vision and goals to remedy conditions associated with blight, to improve infrastructure, revitalize the neighborhood, and utilize Tax Increment Financing (TIF) in conjunction with other funding sources to improve the economic vitality within the district; and WHEREAS, Bangtail Partners, LLC, a Montana limited liability company (the “Developer”) desires to undertake the development and cause the construction on the Cottonwood and Ida Project and The Brewery Project, mixed-use developments, consisting of buildings to be used for residential and commercial purposes and related improvements and amenities, including structured public parking as public infrastructure (the “Proposed Project”); and WHEREAS, The Developer intends to request that the City consider issuing tax increment revenue bonds secured by the tax increment of the District (the “Bonds”) and use the proceeds thereof to purchase from the Developer a significant amount of structured public parking to be included in the Proposed Project; and 24 Northeast Urban Renewal District Board Resolution 2021-01 2 WHEREAS, the Board has determined that public parking is necessary infrastructure for the redevelopment of the District; and WHEREAS, the Proposed Project is contemplated by and falls within the scope of the Plan, and in particular those provisions regarding projects which, “Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient, and convenient access for residential, commercial, and industrial uses”; and under the Plan those undertakings are eligible for tax increment financing; and WHEREAS, the spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288, MCA; and WHEREAS, the Board desires that the Bozeman City Commission authorize the issuance of tax increment urban renewal revenue bond(s) to finance all or a portion of the costs of the Proposed Project, including and especially, the structured public parking, and intends to utilize tax increment to make payments on the bonds; and WHEREAS, the use of tax increment financing revenues to make bond payments has been shown to be a sound and adequate approach for urban renewal infrastructure development projects; and WHEREAS, at their regular meeting on Thursday, March 4, 2021, the City of Bozeman Northeast Urban Renewal District Board voted to recommend that the City Commission designate The Brewery Project and associated public parking as an Urban Renewal Project. WHEREAS, the Board passed a motion directing staff in consultation with bond counsel to move this resolution as edited and supporting documentation forward, recommending that the Bozeman City Commission approve this Urban Renewal Project, the costs of which are eligible and appropriate to be financed with tax increment urban renewal revenue bonds to which tax increment is pledged to make payments on the bonds; and WHEREAS, the City of Bozeman Northeast Urban Renewal District Board moved to recommend adopting this Resolution on the Proposed Project and finds: 1. Infrastructure improvements meet Guiding Principle 1 and Goals B of the Northeast Urban Renewal District Plan:  Principle 1. Ensure the health, safety, and security of the District, o Goal B: Encourage a land use pattern that facilitates all modes of transportation - vehicular, bicycle, pedestrian, mass transit, and commercial - for safe, efficient and convenient access for residential, commercial, and industrial uses; and 2. The Project is an infrastructure project in conformance with Goal B of Principle 1, and other Principles and Goals of the Northeast Urban Renewal District Plan. 25 Northeast Urban Renewal District Board Resolution 2021-01 3 3. The Cottonwood and Ida Project meets the Guiding Principle 2 of the Northeast Bozeman Urban Renewal District Plan:  Principle 2: Balance commerce and livability in the District within the mixed- use framework o Implementation Actions:  Assure compatibility of land uses through appropriate urban design techniques.  Encourage affordable housing.  Encourage commercial development that provides basic needs to the District. NOW, THEREFORE, BE IT RESOLVED that the City of Bozeman Northeast Urban Renewal Board authorizes Economic Development Staff to negotiate a Development Agreement with the Developer and make reports and recommendations to the City Commission regarding the Development Agreement, public parking, and other appropriate incentives; BE IT FURTHER RESOLVED that the City of Bozeman Northeast Urban Renewal District Board, having heard and considered all input, adopted the findings presented herein and recommends that the Bozeman City Commission undertake appropriate proceedings to: 1. Approve the Proposed Project and associated public parking, as an Urban Renewal Project. 2. Authorize the issuance of tax increment urban renewal revenue bond(s) to finance eligible costs or a portion of the costs of the Project; 3. Pledge future annual tax increment to tax increment urban renewal revenue bonds as authorized by the Bozeman City Commission. DATED THIS __ DAY OF March, 2021 . _____________________________ Bobbi Clem, Chair Northeast Urban Renewal District Board 26 COTTONWOOD + IDA BREWERY SITE A VIBRANT, DIVERSE, ATTAINABLE COMMUNITY IN THE CORE OF THE NORTHEASTERN NEIGHBORHOOD PROPOSAL FOR URBAN RENEWAL FUNDS - BOZEMAN, MT DESIGN TEAM THINKTANK DESIGN GROUP, INC. RICHARD FERNAU, FAIA OWNER BANGTAIL PARTNERS, LLC PO BOX 2652, DEPT 35 MENLO PARK, CA 94026 APPROVED MOU REVISED PROPOSAL NENA PRESENTATION NEURB PRESENTATION 1 NEURB PRESENTATION 2 NEURB PRESENTATION 3 - XXXX - XXXX - XXXX - XXXX - XXXX - MARCH 2021 27 Cottonwood and Ida Narrative Cottonwood and Ida is meant to be part of the neighborhood rather than a project unto itself. The project proposes a broad range of housing types that include 20 (+/-) single family townhouse flats, 50 (+/-) apartment options including 1 bedrooms, studios, and efficiency units. The units will include a mix of both affordable (15% of the apartments) and attainable units. As an example, the rent differential between an attainable 1 bedroom and a 60% AMI affordable is nearly $400 per month. The project includes a healthy mix of commercial options that include spaces for office, small neighborhood retail and artist / makers spaces. The project also places special emphasis on public plaza spaces and provides a community centered pavilion for future markets, CSA drop-offs, private events, and public meetings. Summary of Cottonwood and Ida: • Residential - 73 units - 87,730 SF o 20 For-Sale Townhomes & Condominiums - 46,180 SF o 53 For-Rent Apartments - 39,550 SF o 20% of the apartments will be offered at affordable rates (70% Area Median Income) o 80% at “attainable” rates (100% AMI) • Office Space - 25,120 SF o Creative Spaces for Artists o Premium Office Space in a Walkable / Bikeable Community o Artisan Manufacturing Spaces, Creator Studios, and Makers Spaces • Commercial Space - 7,200 SF • Parking - 27,000 SF o 100% On-site, Below Grade Parking o 62 Spaces • Public Plaza and Landscaped Areas - 20,000 SF o Available to the public for interaction and enjoyment • Significant street and streetscape improvements, including the addition of a parking area for the “Boulder Park”. • Massing and scale for the buildings have been thoughtfully considered to minimize building height and maximize the perimeter of the site. Special consideration was given to adjacent properties for massing and scale. The maximum height for the project is 48’ 28 Cottonwood and Ida Narrative Cottonwood and Ida is meant to be part of the neighborhood rather than a project unto itself. The project proposes a broad range of housing types that include 20 (+/-) single family townhouse flats, 50 (+/-) apartment options including 1 bedrooms, studios, and efficiency units. The units will include a mix of both affordable (15% of the apartments) and attainable units. As an example, the rent differential between an attainable 1 bedroom and a 60% AMI affordable is nearly $400 per month. The project includes a healthy mix of commercial options that include spaces for office, small neighborhood retail and artist / makers spaces. The project also places special emphasis on public plaza spaces and provides a community centered pavilion for future markets, CSA drop-offs, private events, and public meetings. Summary of Cottonwood and Ida: • Residential - 73 units - 87,730 SF o 20 For-Sale Townhomes & Condominiums - 46,180 SF o 53 For-Rent Apartments - 39,550 SF o 20% of the apartments will be offered at affordable rates (70% Area Median Income) o 80% at “attainable” rates (100% AMI) • Office Space - 25,120 SF o Creative Spaces for Artists o Premium Office Space in a Walkable / Bikeable Community o Artisan Manufacturing Spaces, Creator Studios, and Makers Spaces • Commercial Space - 7,200 SF • Parking - 27,000 SF o 100% On-site, Below Grade Parking o 62 Spaces • Public Plaza and Landscaped Areas - 20,000 SF o Available to the public for interaction and enjoyment • Significant street and streetscape improvements, including the addition of a parking area for the “Boulder Park”. • Massing and scale for the buildings have been thoughtfully considered to minimize building height and maximize the perimeter of the site. Special consideration was given to adjacent properties for massing and scale. The maximum height for the project is 48’ 29 The Brewery Narrative The Brewery is named after the original Lehrkind’s Brewery that was located on the site and will provide housing, commercial spaces, and much needed parking to the neighborhood. The project is proposed in two phases. Phase I of the Brewery will create 167 parking spaces, 12 residential units, and 2,700 square feet of commercial space. Phase II of The Brewery will create 28 additional residential units and 5,040 square feet of additional commercial space. Summary of The Brewery: • Residential - 49,200 SF o 14 units (2 bedroom) in Phase I - 10,500 SF o 28 units (2 bedroom) in Phase II - 30,960 SF • Commercial - 8,000 SF o 8,000 SF in Phase I • Public and Residential Parking – 58,000 SF o 160 spaces in Phase I • Pedestrian circulation facilities will be improved along both Tamarack and Wallace providing small “vest pocket” plazas. • Massing and scale for the buildings have been thoughtfully considered to minimize building height and maximize the perimeter of the site. Special consideration was given to residential adjacencies with both massing and use. 30 Outline of the Proposed Development Agreement The project seeks to establish a development agreement with the City to facilitate the improvement to public infrastructure and creation of public parking. The improvements include: • Completion of Aspen Street while preserving the trail access to the climbing boulder, • Full construction of Ida Street to provide parking along the west side, • Completion of Cottonwood Street to match the South Side with angled parking, • Improvements to underground utilities including new water lines under Aspen and Ida Streets, • Pedestrian facilities: walking paths, sidewalks and bike lanes, • Parking in the Brewery Garage that will add additional, much needed capacity to the neighborhood and reduce on-street parking: o 160 total public parking spaces 31 Alignment of goals with NEURD Plan The Northeast Urban Renewal District Mission and Vision: “The Plan envisions a mixed-use neighborhood that is user-friendly, safe, secure and healthy. While the plan envisions a District with diversity of housing, businesses, and amenities, it intends to maintain the unique ambiance and historic character of the District.” NEURD Plan pg. 5 We used this mission statement along with feedback from the RUDAT to develop our plans. We are seeking to create a neighborhood that is user-friendly offering plaza spaces and good connectivity to the surrounding neighborhood. We are providing a healthy mix of housing, businesses and amenities that respond to the unique ambiance of the district through massing and scale and configuration of buildings. The NEURD plan outlines nine principals along with goals and implementation policies that it seeks to achieve through the creation of our project it addresses many of these principals, goals, and implementation policies aligned in the plan. In fact, our project directly addresses 7 of these Principals. Specifically, Principal 1 is to ensure health safety and security of the district by updating outdated or insufficient infrastructure. We intend to make improvements to the surrounding street network and utilities in collaboration with the District. This project also furthers the goal of a land use pattern that facilitates all modes of transportation. We have included substantial underground parking to provide the needed parking while shielding the presence of “parking lots” from the neighborhood view shed. We have provided plazas and greenways to facilitate public pedestrian uses on the site and intend to create specific bike garage facilities to accommodate bike parking, storage, and maintenance areas. Principal 2 speaks to the desire to balance commerce and livability in the district within the mixed-use framework. Our project provides this balance and compatibility through the very best practices of urban design. We achieve this by providing good connections to public spaces for all that improve quality of life for the residents and business owners alike. Principal 3 is to “honor the unique character and vitality of the district”. We have taken great effort to include opportunities within this project for affordable and attainable housing, unique artist spaces and commercial uses that best fit the emerging character of the district. Additionally, our thoughtful consideration of mass and scale, attention to public values, and sustainable building practices will both honor the vitality and show a path forward that the district can truly be proud of. Principal 4 addresses the need for public open space that contribute to the health and appeal of the urban environment. This project creates over 25,000 SF of multiple public open spaces and provides improvements to adjacent greenways. Principal 5 establishes the framework to evaluate the cost of projects and programs weighted against their benefits to the district. This project provides the much-needed benefit of affordable housing and unique artists spaces in a progressive urban design the will enhance and preserve the unique character of the district. The project will also substantially increase the available increment in the district which can be used to achieve additional goals outlined in the plan. The amount of increment beyond what is needed to support the improvements for the project will be in excess of the amount of increment of the 32 entire district to date. We have estimated this at $100,000 annually, after debt service, that can be used on other projects within the district. This principal exemplifies our project insofar that it will promote the principals and goals of the district and contribute significantly to the underlying value of the district. Principal 6 states that private shall not be acquired for private use through the eminent domain process. Our project does not use any eminent domain in the redevelopment. We do offer our own private land to the general public in the form of public plazas. Principal 8 states that projects shall consider impacts on adjacent neighborhoods. Our project has thoughtfully addressed the surrounding neighborhood by incorporating smaller scale housing next to smaller scale adjacent homes and placed more commercially oriented uses next to existing commercial uses. Essential goals of the 2006 NEURD Plan achieved: ✓ “Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved” (Principal 1, pg. 5 NEURD Plan) ✓ “Assure compatibility of land use through appropriate urban design techniques” (Principal 2, pg. 6 NEURD Plan) ✓ “Promote sustainable building practice and design within the District” (Principal 3, pg. 7 NEURD Plan) ✓ “Encourage affordable housing” (Principal 2, pg. 6 NEURD Plan) ✓ “Secure public open spaces in locations that will optimize accessibility” (Principal 4, pg.7 NEURD Plan) ✓ “New structures should be designed keeping in mind public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in construction of new private buildings will add strength and character to the built environment. To the degree that private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership.” (Principal 3, pg.7 NEURD Plan) ✓ “Harmonize commercial and industrial development with residential quality of life” (Principal 2, pg. 6 NEURD Plan) 33 Alignment of goals from the Vision NE (RUDAT follow-up committee) Many of the District goals drafted in 2005 are aligned with the recent RUDAT effort and the subsequent Vision NE Draft Goals and Principals. • Values the neighborhoods unique vibrancy, diversity, artistry, history, commercial / industrial interface, walk- and bike – ability, and special Bridger Mountain views • Understand that growth and change in our neighborhood is inevitable; and • Embraces the notation that change can be positive, that it can enhance the neighborhoods unique character and vitality and increase opportunities for affordable housing, connectively and civic participation. The goals of the Cottonwood and Ida and Brewery projects very much align with these as we endeavor to create affordable housing opportunities and embrace the artistry, history of the district while making opportunities for civic participation on site. The Vision NE further seeks to ✓ Enhance neighborhood character We are looking to enhance the character through unique buildings and public spaces and provide commercial opportunities for artists to continue to contribute to the fabric of place ✓ Create new pocket parks, urban rooms and public gathering spaces We have incorporated several public plaza spaces and pocket parks within the site to support public gathering and invite the neighborhood to be part of the location as we ask to be part of the neighborhood ✓ Provide safe transportation through residential neighborhoods The projects provide full pedestrian circulation through the sites connecting to the existing sidewalk and trail network. Transportation patterns have been considered to keep the majority of traffic on existing major roadways ✓ Support artists and artisans and providing opportunities for public art From the beginning our intent is to support and provide opportunity for the burgeoning artist community to flourish by adding additional artist spaces, as well as affordable places for artists to live and incorporate within the public spaces art. ✓ Expand the trail network and connectivity to the downtown Bozeman, the North 7th corridor, and Story Mill Community Park The projects creates a through pathway and can become a hub of connection to the various sub districts. ✓ Consider the area’s agricultural and light industrial historical legacy; and The character of the buildings will incorporate attributes that pay homage to the legacy of the various historical uses. ✓ Provide affordable housing options Lastly – we are providing both affordable housing and attainable housing through a mix of unit types to support the unique character of the neighborhood. 34 GOALS – MATRIX OF ALIGNMENT PRINCIPALS, GOALS, IMPLEMENTATION POLICIES AND OBJECTIVES NEURD PLAN 2005 RUDAT VISION NE GOALS 2017 COTTONWOOD AND IDA MIXED USE PROJECT METHODS AND MEANS HONOR / ENHANCE UNIQUE CHARACTER OF DISTRICT ✓ ✓ ✓ Through massing scale, and placement of buildings on the site. Additionally, program elements such as artists, makers etc. PROMOTE ENVIRONMENTALLY SOUND BUILDING AND PLANNING TECHNIQUES ✓ ✓ The project meets LEED ND standards and incorporates several sustainable design techniques PROVIDE SAFE, HEALTHY PUBLIC TRANSPORTATION FACILITES AND INFRASTRUCTURE ✓ ✓ ✓ Through the creation of additional public infrastructure and pedestrian plazas and walks SUPPORT ARTISTS AND PROVIDE OPPORTUNITY FOR PUBLIC ART ✓ ✓ Providing opportunities for artist residences and studio spaces and will incorporate public art in the plaza spaces RECOGNIZE IMPORTANCE OF Exhibit A EXHIBIT A COTTONWOOD AND IDA & BREWERY MIXED USE PROJECT 2/15/2021 PROPOSED IMPROVEMENTS RELATED TO TIF PROJECTS ESTIMATED COSTS OFF-SITE INFRASTRUCTURE $ 1,800,958 PARKING GARAGE $ 5,875,338 IMPACT FEES $ 522,120 TOTAL ESTIMATED TIF FUNDED PROJECTS $ 8,198,416 PROJECT DETAILS OFF-SITE INFRASTRUCTURE $ 1,800,958 Cottonwood $ 419,109 Ida $ 147,166 Aspen $ 454,577 Tammarack $ 390,524 Wallace $ 389,582 BREWERY GARAGE $ 5,875,338 Garage Site $ 1,080,000 Garage Soft Costs $ 532,224 Garage Hard Costs $ 3,991,680 Contingency $ 271,434 IMPACT FEES $ 522,120 Transportation/ Residential $ 3,053 $ 283,894 Transportation / Commercial $ 4,535 $ 136,501 Water / Residential $ 559 $ 60,962 Water / Commercial $ 3,556 $ 12,497 Fire / Residential $ 186 $ 17,265 Fire / Commercial $ 365 $ 11,001 per unit residential / per 1,000 SF commercial 36 Exhibit B EXHIBIT B COTTONWOOD AND IDA & BREWERY MIXED-USE PROJECTS 2/15/2021 PROJECT ESTIMATES FOR TAX GENERATION AND BONDING ABILITY Cottonwood & Ida Project Cost $ 45,689,230 Brewery Project Cost $ 15,327,626 Total Project Costs $ 61,016,856 Projected Tax Rate 1.20% Projected Tax Revenue $ 732,202 Debt Coverage Limit 1.2 Available for Bond Service $ 732,202 Projected Bond Rate 3.25% Bond Term (Years) 20 Proposed Bond Value $ 8,198,416 Bond Service (Annually) $ 563,878 ESTIMATED CASH AVAILABLE FOR FUTURE NEURB PROJECTS (Annual) $ 168,324 37 Memorandum REPORT TO: Northeast Urban Renewal Board SUBJECT: Looking Forward/ Set Agenda for April 1, 2021 MEETING DATE: March 11, 2021 AGENDA ITEM TYPE: Citizen Advisory Board/Commission RECOMMENDATION: Discuss future items of new business for April 1, 2021 and beyond. STRATEGIC PLAN: 2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND: Discuss future items of new business for April 1 and beyond. UNRESOLVED ISSUES: n/a ALTERNATIVES: n/a FISCAL EFFECTS: n/a Report compiled on: January 4, 2021 38 BRIDGER VIEW SHED AND NEIGHBORHOOD IMPACTS ✓ ✓ ✓ By breaking up the buildings into several smaller buildings rather than one large one to maintain view angles through the site. PROMOTE SECURE PUBLIC OPENSPACES, POCKET PARKS, URBAN ROOMS AND PUBLIC GATHERING SPACES ✓ ✓ ✓ The project has over 20,000 SF of public plaza spaces and nearly a 1/4 - mile of pedestrian walks will be improved PROMOTE AND PROVIDE AFFORDABLE HOUSING OPTIONS ✓ ✓ ✓ The project provides 20% of the units at affordable rates and the balance of units are intended to be attainable at 100% AMI 35