HomeMy WebLinkAbout21- Grant Agreement - Midtown TIF Assistance Program - PDI Investments MIDTOWN TIF ASSISTANCE PROGRAM
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into this 7 day of ,i ,2021 by
and between the City of Bozeman,Montana,a self-governing municipal corporation located at
121 N.Rouse Ave.,Bozeman MT 59771 ("City")as"Grantor"and PDI Investments,LLC,a
limited liability corporation located at 2777 N.7"Ave.,Bozeman,MT 59718 as"Grantee."
WHEREAS,on December 16,2015,the Bozeman City Commission adopted Ordinance 1925,
the Bozeman Midtown Urban Renewal District Plan("Plan"),defining the boundaries of the
Bozeman Midtown Urban Renewal District("District")and delineating goals and strategies for
eliminating blight,and authorizing the Bozeman Midtown Urban Renewal Board("Board")to
act as the agency to exercise urban renewal powers;and
WHEREAS,the Plan encourages commercial and residential development or redevelopment
through the use of incentives,such as,but not limited to,public infrastructure support;and
WHEREAS,the Board developed the Midtown Urban Renewal district Tax Increment Financing
Assistance Program("Midtown TIF Assistance Program")to grant monies appropriated by the
City Commission for grant assistance in the Board's Annual Work Plan and Budget;and
WHEREAS,on December 16,2019,the Bozeman City Commission adopted Resolution No.
5087 establishing policies for the granting of funds by the Board to a requesting entity through
the Midtown TIF Assistance Program;and
WHEREAS,the intent of these funds is to offset the cost of redevelopment of substandard or
"blighted"properties within the District;and
WHEREAS,Grantee is the owner of the former Nu2u building,which is being remodeled and
fitted with a new facade(the"Project")to be located at 431 N 7"Avenue,Bozeman,MT 59715
and which will primarily function as an Access Fitness;and
WHEREAS,Grantee presented a request to the Board for a grant of up to$50,000 to be used as
reimbursement toward the actual cost of water and fire service lines to the property;and
WHEREAS,on September 3,2020 the Bozeman Midtown Urban Renewal Board approved the
grant request in the amount of$50,000("grant award")documented in the minutes of the
September 3,2020 meeting;and
THE PARTIES AGREE:
L The Grant. The City,through the Board,will grant and release to Grantee a sum of up
to fifty thousand dollars($50,000)(the"Grant")pursuant to the payment terms in Section
3.
2. Use of Grant Funds/Reimbursement.
a. Grant funds will be used by Grantee for the purposes as identified in the Grantee's
grant application,which is incorporated by reference herein,and only for the
purposes of reimbursing the grantee for the costs of designing,engineering,and
constructing new fire and water service lines.
b. To be eligible for reimbursement,the Grantee must also complete the
modifications to the site as approved on November 5,2020 in the Pawn Shop
Beautification,Modification Application 20313 filed with the City of Bozeman
Department of Community Development.
C. Grant funds must be used prior to May 30,2022.Any funds not disbursed to the
Grantee within that time will remain in the District fund.
d. Use of TIF assistance funds must be in compliance with the terms of this Grant
Agreement,
3. Payment of Grant Funds
The Grant payment will be applied toward reimbursing impact fees,demolition of
existing building,and improving utility lines following the issuance of the
certificate of occupancy for the Project,or July 16,2021,whichever comes later,
unless the Board reasonably determines,in its sole discretion,Grantee has failed
to meet its obligations pursuant to sections 2,4,5,9,or 10 of this Agreement.
i
4. Grantee Representations. Grantee represents and warrants to City:
a. Grantee has familiarized itself with the nature and extent of this Grant Agreement,
the contents of Resolution 5087 attached hereto as Exhibit A)and with all local
conditions and federal,state and local laws,ordinances,rules,and regulations that
in any manner may affect Grantee's obligations under this Grant Agreement.
b. Grantee has familiarized itself with applicable City of Bozeman procurement
regulations related to bidding,hiring,and prevailing wages and agrees to comply
with such regulations if applicable.
C. Grantee has the power to enter into and perform this Grant Agreement.
d. The Grant funds are necessary to accomplish the financing requirements of the
Project.
5. Reports/Accountability/Public Information.Grantee agrees to develop and/or provide
such documentation as requested by the Board demonstrating Grantee's compliance with
the requirements of this Grant Agreement. Grantee shall allow the Board or the City,its
auditors,and other persons authorized by the Board to inspect and copy its books and
records for the purpose of verifying that monies provided to Grantee pursuant to this
Grant Agreement were used in compliance with this Grant Agreement and all applicable
provisions of federal,state,and local law. Grantee will retain such records for fifteen
years after receipt of final payment under this Agreement unless permission to destroy
them is granted by the Board.
6. Default and Termination. If Grantee fails to comply with any condition of this Grant
Agreement at the time or in the manner provided for,the City may terminate this
Agreement if the default is not cured within thirty(30)days after written notice is
provided to Grantee. The notice will set forth the items to be cured. If this Grant.
Agreement is terminated pursuant to this Section,Grantee will repay to the City any
Grant funds already disbursed to Grantee or applied toward impact fees or cash-in-lieu
.owed by Grantee for the Project.
7. Limitation on Grantee's Damages; Time for Asserting Claim
a. In the event of a claim for damages by Grantee under this Grant Agreement,
Grantee hereby expressly waives any right to claim or recover consequential,
special,punitive,lost business opportunity,lost productivity,field office
overhead,general conditions costs,or lost profits damages of any nature or kind.
b. In the event Grantee wants to assert a claim for damages of any kind or nature,
Grantee shall provide City with written notice of its claim,the facts and
circumstances surrounding and giving rise to the claim,and the total amount of
damages sought by the claim,within ninety(90)days of the facts and
circumstances giving rise to the claim. In the event Grantee fails to provide such
notice,Grantee shall waive all rights to assert such claim.
8. Representatives
a. City's Representative. The City's Representative for the purpose of this
Agreement shall be David Fine,Urban Renewal Program Manager,or such other
individual as City shall designate in writing. Whenever approval or authorization
from or communication or submission to City is required by this Agreement,such
communication or submission shall be directed to the City's Representative and
approvals or authorizations shall be issued only by such Representative;provided,
however,that in exigent circumstances when City's Representative is not
available,Grantee may direct its communication or submission to other
designated City personnel or agents and may receive approvals or authorization
from such persons.
b. Grantee's Representative. Grantee's Representative for the purpose of this
Grant Agreement shall be Rhonda Reed,President,or such other individual as
Grantee shall designate in writing. Whenever direction to or communication with
Grantee is required by this Agreement,such direction or communication shall be
directed to Grantee's Representative;provided,however,that in exigent
circumstances when Grantee's Representative is not available,City may direct its
direction or communication to other designated Grantee personnel or agents.
9. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law,
Grantee agrees to defend,indemnify and hold the City and its agents,representatives,
employees,and officers(collectively referred to for purposes of this Section as the City)
harmless against all third party claims,demands,suits,damages,losses,and expenses,
including reasonable defense attorney fees,which arise out of,relate to or result from
Grantee's(i)negligence or(ii)willful or reckless misconduct.
Such obligations shall not be construed to negate,abridge,or reduce other rights or
obligations of indemnity that would otherwise exist.The indemnification obligations of
this Section must not be construed to negate,abridge,or reduce any common-law or
statutory rights of the indemnitee(s)which would otherwise exist as to such
indemnitee(s). Grantee's indemnification obligations under this Section shall be without
regard to and without any right to contribution from any insurance maintained by City.
Should any indemnitee described herein be required to bring an action against Grantee to
assert its right to defense or indemnification under this Grant Agreement or under
Grantee's applicable insurance policies required below the indemnitee shall be entitled to
recover reasonable costs and attorney fees incurred in asserting its right to
indemnification or defense but only if a court of competent jurisdiction determines
Grantee was obligated to defend the claim(s)or was obligated to indemnify the
indemnitee for a claim(s)or any portion(s)thereof.
In the event of an action filed against City resulting from the City's performance under
this Grant Agreement,the City may elect to represent itself and incur all costs and
expenses of suit.
Grantee also waives any and all claims and recourse against the City or its officers,
agents or employees,including the right of contribution for loss or damage to person or
property arising from,growing out of,or in any way connected with or incident to the
performance of this Grant Agreement except"responsibility for his own fraud,for willful
injury to the person or property of another,or for violation of law,whether willful or
negligent"as per 28-2-702,MCA.
These obligations shall survive termination of this Grant Agreement.
In addition to and independent from the above,Grantee shall at Grantee's expense secure
insurance coverage through an insurance company or companies duly licensed and
authorized to conduct insurance business in Montana which insures the liabilities and
obligations specifically assumed by Grantee in this Section.The insurance coverage shall
not contain any exclusion for liabilities specifically assumed by Grantee in this Section.
The insurance shall cover and apply to all claims,demands,suits,damages,losses,and
expenses that may be asserted or claimed against,recovered from,or suffered by the City
without limit and without regard to the cause therefore in amounts not less than as
follows:
• Workers'Compensation—statutory;
• Employers'Liability-$1,000,000 per occurrence;$2,000,000 annual aggregate;
• Commercial General Liability-$1,000,000 per occurrence;$2,000,000 annual
aggregate
The City of Bozeman,its officers,agents,and employees,shall be endorsed as an
additional or named insured on a primary non-contributory basis on the Commercial
General policy. The insurance and required endorsements must be in a form suitable to
City and shall include no less than a thirty(30)day notice of cancellation or non-renewal.
The City must approve all insurance coverage and endorsements prior to disbursement of
Grant funds.Grantee shall notify City within two(2)business days of Grantee's receipt
of notice that any required insurance coverage will be terminated or Grantee's decision to
terminate any required insurance coverage for any reason.
10. Nondiscrimination. Nondiscrimination and Equal Pay. Grantee agrees that all hiring
by Grantee of persons performing this Grant Agreement shall be on the basis of merit and
qualifications. Grantee will have a policy to provide equal employment opportunity in
accordance with all applicable state and federal anti-discrimination laws,regulations,and
contracts. Grantee will not refuse employment to a person,bar a person from
employment,or discriminate against a person in compensation or in a term,condition,or
privilege of employment because of race,color,religion,creed,political ideas,sex,age,
marital status,national origin,actual or perceived sexual orientation,gender identity,
physical or mental disability,except when the reasonable demands of the position require
an age,physical or mental disability,marital status or sex distinction.
Grantee represents it is,and for the term of this Agreement will be,in compliance with
the requirements of the Equal Pay Act of 1963 and Section 39-3-104,MCA(the Montana
Equal Pay Act). Grantee must report to the City any violations of the Montana Equal Pay
Act that Contractor has been found guilty of within 60 days of such finding for violations
occurring during the term of this Agreement.
Grantee shall require these nondiscrimination terms of its subcontractors providing
services under this Grant Agreement.
1 1. Attorney's Fees and Costs. In the event it becomes necessary for a party to this
Agreement to retain an attorney to enforce any of the terms or conditions of this
Agreement or to give any notice required herein,then the prevailing party shall be
entitled to reasonable attorney's fees and costs,including fees,salary,and costs of in-
house counsel to include City Attorney.
12. Integration and Modification. This document contains the entire agreement between
the parties and no statements,promises or inducements made by either party or agents of
either party not contained in this written Agreement may be considered valid or binding.
This Agreement may not be modified except by written agreement signed by both parties.
13. Dispute Resolution
a, Any claim,controversy,or dispute between the parties,their agents,employees,or
representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements.
Upon mutual agreement of the parties,the parties may invite an independent,
disinterested mediator to assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty(30)days from the
date the dispute was first raised,then such dispute may only be resolved in a court
of competent jurisdiction in compliance with the Applicable Law provisions of
this Agreement.
14. No Assignment. Grantee may not subcontract or assign Grantee's rights,including the
right to Grant payments,or any other rights or duties arising hereunder,without the prior
written consent of City.
15. No Third Party Beneficiary. The terms and provisions of this Agreement are intended
solely for the benefit of each party and their respective successors and assigns. It is not
the parties'intent to confer third party beneficiary rights upon any other person or entity.
16. Choice of Law. This Agreement shall be governed and construed in accordance with
the laws of the State of Montana without regard to conflict of law provisions. The Parties
agree to submit to the personal and exclusive jurisdiction of the courts located within
Gallatin County,Montana.
17. Non-Waiver. A waiver by either party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party's right to enforce
such term or conditions or to pursue any available legal or equitable rights in the event of
any subsequent default or breach.
18. Severability. If any portion of this Agreement is held to be void or unenforceable,the
balance of the Agreement shall continue in effect.
19. Counterparts. This Agreement may be executed in counterparts,which together
constitute one instrument,
20. Consent to Electronic Signatures. The Parties have consented to execute this
instrument electronically in conformance with the Montana Uniform Electronic
Transactions Act,Title 30,Chapter 18,Part 1,MCA.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF,the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN,MONTANA PDI INVESTMENTS,LLC
By'. � �` By �
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Jeff Mikelich,City Manager J_
Print Name:
Print Title:
APPRZn,
By:
GCity Attorney
EXHIBIT A
CITY OF BOZEMAN RESOLUTION 5087
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RESOLUTION NO. 5087
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA AUTHORIZING THE MIDTOWN URBAN RENEWAL DISTRICT TAX
INCREMENT FINANCING ASSISTANCE PROGRAM AND AUTHORIZING THE
BOZEMAN MIDTOWN URBAN RENEWAL BOARD TO PROVIDE FOR THE
ADMINISTRATION OF THE PROGRAM.
WHEREAS, the Bozeman City Commission did,pursuant to law, on the 22nd day of
August 2005, adopt Resolution Number 3839, declaring that blighted areas exist in the portion of
the North Seventh Avenue Corridor and that rehabilitation,redevelopment, or a combination
thereof of the area is necessary and in the interest of the public health, safety, morals, or welfare
of the residents of Bozeman; and
WHEREAS, the Bozeman City Commission did,pursuant to law, on the 27th day of
November 2006, adopt Ordinance Number 1685 defining the North Seventh Urban Renewal
District boundary, creating a North Seventh Urban Renewal Board and authorizing the Board to
act as the"agency"to exercise urban renewal powers; and
WHEREAS,the Bozeman City Commission did,pursuant to law, on the 161h day of
December,2015, adopt Ordinance Number 1925, the Bozeman Midtown Urban Renewal District
Plan(the"Plan"), defining an expanded District boundary,renaming the District the Bozeman
Midtown Urban Renewal District(the "District"), delineating new goals and strategies for
eliminating blight, and authorizing the Bozeman Midtown Urban Renewal Board("Board")to
act as the"agency"to exercise urban renewal powers; and
WHEREAS,the Plan, "Encourages commercial and residential development or
Page 1 of 5
Resohition 5087,Authorizing the Alidtolwn Urban Renewal District Tax Increment Finance Assistance Program
redevelopment of identified infll areas through the use of and publicizing of incentives, such as,
but not limited to,public infiastructure support"; and
WHEREAS,the Board develops an Annual Work Plan and Budget to implement the
Plan that is presented to the Bozeman City Commission for approval following a public hearing,
which may include the appropriation of funds for an incentive program as authorized by the
Plan; and
WHEREAS,the intent of these funds is to offset the cost of redevelopment of
substandard or"blighted"properties within the District; and
WHEREAS,by Ordinance Number 1925 the Board was granted the powers under
Section 7-15-4233; and
WHEREAS, Section 7-15-4233(1)(a),MCA, grants the City the power to formulate and
coordinate a workable program as specified in 7-15-4209, 15-MCA; and
WHEREAS, Section 7-15-4209, MCA, states: (1) a municipality 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.
(2) Such workable program may include,without limitation,provision for:
(b)the rehabilitation of blighted areas or portions thereof by re-planning,removing
congestion,providing parks,playgrounds, and other public improvements,by encouraging
voluntary rehabilitation, and by compelling the repair and rehabilitation of deteriorated or
deteriorating structures; and
(c)the clearance and redevelopment of blighted areas of portions thereof.
Page 2 of 5
Resolution 5087,Authorizing the Midtown Urban Reneuval District Tax Increment Finance Assistance Program
WHEREAS, Section 7-15-4288, MCA, "Costs that may be paid by tax increment
financing" allows the municipality to use tax increments to pay the following costs of or incurred
in connection with an urban renewal project. 1) demolition and removal of structures,2)
improvement of infrastructure, 3)public improvements and 4) costs incurred in connection with
the redevelopment activities allowed under 7-15-4233; and
WHEREAS, to fulfill the above statutory requirements, the Board developed a program
for granting monies appropriated by the City Commission to redevelop and rehabilitate the
District the name of which program is the Midtown Urban Renewal District Tax Increment
Financing Assistance Program ("Midtown TIF Assistance Program"); and
WHEREAS,the purpose of the Midtown TIF Assistance Program is to encourage
investment in development and redevelopment of commercial and mixed use property within the
District; and
WHEREAS, the Bozeman City Commission authorized the original Midtown TIF
Assistance Program on January 23, 2017 pursuant to Resolution 4770; and
WHEREAS,the on September 5, 2019,the Board developed and recommended changes
to the Midtown TIF Assistance Program to the Bozeman City Commission to improve the
administration of the program and enhance the specificity of the Program's objectives;
NOW, THEREFORE,BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana(the "City"), as follows"
Section 1
The primary objective of the Midtown TIF Assistance Program is to encourage investment in
development and redevelopment of commercial and mixed use property within the District in
accordance with the provisions of the Montana Urban Renewal Law(7-15-4209, 7-15-4233, and
7-15-4288, M.C.A.). Additional District objectives are to:
Page 3 of 5
Resohltion 5087,Authorizing tlae Midtown Urban Renewal District Tax increment Finance Assistance Program
• Encourage private investment in conunercial property in the District through the use of
public incentives;
• Expand the property tax base in the District through private investment in income
producing properties;
• Stimulate economic and business development within the District; and
• Reduce blighting influences in the District
Section 2
The grants are awarded at the discretion of the Board as authorized by the Bozeman City
Commission, based upon review of the Applicant's compliance with program objectives,
eligibility requirements, and eligible construction activities, as provided in the Midtown TIF
Assistance Program as set forth in Attachment"A".
Section 3
The Board provides a Work Plan and Budget to the City Commission on an annual basis at
which time the Board requests a portion of the District's tax increment be allocated for the
Midtown TIF Assistance Program and therefore eligible projects granted awards by the Board.
Section 4
The Board is,hereby, delegated authority to administer the Midtown TIF Assistance Program as
set forth in Attachment"A" and may enter into agreements with Applicants necessary to
accomplish the purposes of the program.
Section 5
For purposes of administering the Midtown TIF Assistance Program,Resolution 5087
supersedes and replaces Resolution 4770.
Page 4 of 5
Resohition 5087,Authorizing the Midtown Urban Renewal District Tax b7crement Finance Assistance Program
PASSED,ADOPTED,AND APPROVED by the City Con n fission of the City of
Bozeman, Montana, at a regular session thereof held on the 16th day of December 2019.
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ATTEST:'° •
ROB CROUGH ✓[3 • �'
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City Clerk `�
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APPROVED AS TO FORM:
J
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City Attorney
Page 5 of 5
Midtown Urban Renewal District
TAX INCREMENT FINANCING ASSISTANCE(TIF)APPLICATION
PART 1
Property Information
Property Address:
Property Owner:
Legal Description:
Property Geo-Code:
County Tax ID#:
Applicant Information
❑ Property Owner
❑ Tenant
❑ Developer
❑ Other
Applicant's primary contact:
Name:
Business Name:
Business Phone: Cell Phone:
Email:
Project Representative (if not applicant):
Name:
Business Name:
Business Phone: Cell Phone:
Email:
Property Owner(if not applicant):
Name:
Business Name:
Business Phone: Cell Phone:
Email:
Midtown TIF Assistance Application Part 1 Page 1
Company Profile
Business Location
❑ New business establishing itself in Bozeman
❑ Existing business
❑ Expanding/remodeling at same location
❑ Expanding to an additional location
❑ Existing business relocating from (identify location):
Street Address:
City: State: Zip:
❑ Other:
Year Business Established:
Type of Business (Describe):
Has a business plan been developed in relation to the proposed project?
❑ No (Development of a business plan may be required as part of the application process)
❑ Yes (Include a copy with the application)
Project Detail
Property Status:
❑ Vacant land
❑ Building on leased land—Describe:
❑ Land and building(s)—Describe:
Type of TIF Assistance Sought:
❑ Requesting assistance for public infrastructure costs
❑ Building demolition
Value of TIF Assistance Sought:
Will this project proceed if TIF assistance is not granted?
❑ No
❑ In a limited fashion (explain):
❑ Yes, but at a later date (explain):
❑ Yes, as scheduled
❑ Other:
Midtown TIF Assistance Application Part 1 Page 2
Please attach a list of all other property owners, business partners, developers and/or investors
associated with this project, with the above information provided for each.
This application must be signed by both the applicant(s) and the property owner(s) (if different).
I (we), by signature below, certify that the information supplied in this application is,to the best of my
(our) knowledge,true, accurate, and complete, and is provided for the purpose of obtaining approval to
participate in the Midtown Urban Renewal District TIF assistance program. I (we) understand that
failure to comply with the terms of the TIF assistance program may result in revocation of an award.
I (we) understand the work to be undertaken must be in accordance with all applicable requirements of
the Bozeman Municipal Code and any special conditions established by the approval authority and must
receive all required approvals prior to commencing the work. I (we) understand if approved for TIF
assistance,the work to be performed must also be in accordance with TIF assistance program
procedures and the general design guidelines for the District, as well as the specific plans approved for
the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be
assessed for my project. Further, I (we) agree to grant City personnel and other review agency
representative's access to the subject site during the course of the review process (Section 38.34.050,
BMC).
Applicant (s) (Print Name)
Signature of Applicant Date
Property Owner(s) (Print Name)
Signature of Property Owner Date
Midtown TIF Assistance Application Part 1 Page 3
Additional Information
1. Project Narrative
Provide an overview of the project in narrative format.The narrative must include a description of
the following aspects of the project:
■ Proposed use(s) of project
o e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc.
o Total number and individual square footage of residential units;type of residential units
(e.g. for-sale, rental, condominium,single-family, etc.); number and type of parking
spaces provided; and construction phasing.
■ Project Timeline
o Include anticipated dates for site acquisition, project start and completion, as well as
other project milestones. Multi-phase projects must include details for each phase.The
timeline should also identify any critical or time-sensitive dates as well as any time
constraints facing the applicant.
■ Construction information
o size of any existing structure to be demolished or rehabbed;size of any new
construction;types of construction materials (structural and finish); delineation of
square foot allocation by use
■ Public Benefits
o Projects with a high degree of public benefits are typically more likely to receive TIF
assistance.The criteria on pages 4-6 of this application are intended to help the Board
understand and evaluate the public benefits for a project. Provide a detailed narrative
response to each criterion and include supporting documentation.
2. Site Maps and Building Plans
The Applicant must submit a completed Conceptual Review Application and City responses to the
Board.The Conceptual Review application must include, at minimum:
❑ Photographs of project site and/or building
❑ Map showing the location of the site and its immediate surroundings
❑ Proposed development plans including site plans,floor plans indicating square footage and
layout, building elevations
❑ Description of parking accommodations for residential units and commercial uses
❑ Estimated date of occupancy
❑ Anticipated off-site infrastructure improvements, including anticipated costs
❑ Copy of Concept Review comments
Midtown TIF Assistance Application Part 1 Page 4
CRITERIA FOR TIF ASSISTANCE
The Board will review each TIF assistance application the Board using the following criteria and point
system. Points can range from 0 to the maximum shown below in each category.The following criteria
will be used to rate your project.To receive points for any given item, provide a detailed narrative
response to each criterion and include documentation demonstrating adherence to the criteria must be
submitted with the application.The Board will use this information to evaluate the project.
Midtown District Goals Points
Promote Economic Development
1. Tax Generation:The project will increase the taxable value within the District.The /4
increase in taxable value due to new construction & rehabilitation is estimated by
the County Assessor's office or State Department of Revenue to determine tax
increment generation. Submit documentation of estimated tax projections to
receive points for this criterion.
2. Elimination of Blight—The project's direct and indirect impact on the physical and /4
fiscal deterioration within the Tax Increment Financing District and the community.
Projects that redevelop underutilized properties will be given priority.The
characteristics of an underutilized site includes land on which development occupies
only a small amount, and/or land or buildings that are or have been vacant for some
time.Submit information showing current conditions of property.
3. Employment Generation--Total employment generated by the project assessed in /3
terms of new permanent and part-time jobs, and construction jobs.Submit
documentation of estimated new jobs to receive points for this criterion.
Improve Multi-Modal Transportation
4. Facilitates Public Health and Mobility: Project will construct or improve ADA access /1
to and within existing structures. Provide detailed information demonstrating that
the current condition inhibits public health and mobility and the proposed
improvements benefit accessibility.
5. Reduces Resource Demand: Project promotes the use of transit, ride sharing, or car /1
sharing. Provide plans, agreements or other methods to demonstrate reduction of
resource demand.
6. Promotes Active Transportation: Project promotes bicycling as an active /2
transportation option by constructing or improving bike lanes, providing covered
bike parking, and/or participating in a bike share program. Provide plans,
agreements or other methods that demonstrates the project goes beyond the
minimum Bozeman UDC requirements for site development.
Improve, Maintain and Support Innovation in Infrastructure
7. Infrastructure Improvements: Project promotes innovation in infrastructure and/or /2
reduces long term costs of maintenance. Examples include low impact development
for stormwater, incorporation of green roof design into building architecture,or car
charging stations. Low impact development(LID) incorporates designs such as
bioretention facilities, rain gardens and permeable pavers. Does the project enable
better connectivity or provide critical infrastructure for the community? Provide
plans and descriptions of innovations proposed.
Promote Unified Human Scale Urban Design
8. The project reduces the number of vehicular access points to the property and /2
improves the pedestrian experience. Provide plans, agreements or other methods to
Midtown TIF Assistance Application Part 1 Page 5
demonstrate reduction.
9. The project enhances the North 711 Ave. entryway corridor by having buildings /2
oriented toward the street and designed to provide interest and activity.
The project enhances the pedestrian experience by using a storefront block frontage /2
10. (BMC 38.510) as a component of the project. Key elements of the frontage would
include fagade transparency, building articulation, street furniture and/or
landscaping. Submit plans and details that address this criterion.
11. The quality of development and overall aesthetics(architectural,site design, /1
landscaping, etc.) are beyond that which is minimally required by the UDC. Provide a
narrative and submit documentation to demonstrate compliance with this criterion.
Support Compatible Urban Density Mixed Land Uses
12. The project increases housing units within the District.Submit plans demonstrating /6
an increase in the number of housing units.
13. The project is a mix of residential and commercial. Commercial uses include retail, /6
restaurant, office and services. Hotels would not be supported unless included with
a project that included residential development. Submit plans detailing the proposed
mix of uses within the project.
14. The project shares parking among compatible uses. Provide details demonstrating /2
compliance with the UDC and as well as total number of parking spaces reduced
because of a shared arrangement.
15. The project provides affordable dwelling units. For the purposes of this criterion, an /3
affordable dwelling unit is defined as a unit that requires no more than 33 percent of or 6
a household's income for housing payments based on a designated percentage of
area median income (AMI). Eligible rental units shall be affordable at 70%AMI and
eligible for sale units shall be affordable at 90%AMI.Condominium units are eligible
as for sale units.Additional points may be awarded for projects that provide on-site
housing for the proposed workforce.
Eligible rental dwellings to be constructed in the proposed residential development
shall be provided by long-term contractual obligation to an affordable housing
agency,for a period of not less than 20 years,with a written plan assuring ongoing
affordability pricing and eligibility monitoring, and annual re-certification.The city's
affordability guidelines and subsequent revisions establish affordability and
eligibility.To receive 3 points under this criterion, 10%of all units must meet the
affordability criteria.To receive 6 points under this criterion, 20%of all units must
meet the affordability criteria.
Overall District Relevance
16. Relevance to the Midtown Urban Renewal Plan—Documentation of the project's /5
impact in relation to the goals and objectives of the Midtown Urban Renewal Plan,
particularly mixed-use development. Urban design elements will also be considered,
including pedestrian emphasis and quality of design.
17. The investment of public funds in the project results in a leverage ratio of at least /4
10:1 for multifamily, 8:1 for commercial, or 5:1 for family wage jobs.
Total Points /52
Midtown TIF Assistance Application Part 1 Page 6
APPROVAL(For Official Use Only)
Approval Status:
Date Approved:
Date Letter of Award Sent:
Date Certificate of Completion:
Date of Payment Request:
Midtown TIF Assistance Application Part 1 Page 7
PART 2
FOR PROJECTS REQUESTING OVER$50,000 IN ASSISTANCE
Project Financial Information
In order for the Midtown Urban Renewal District Board to adequately review applications seeking TIF
assistance,the following information must be submitted with the application.This information will be
used to perform a third-party financial analysis to determine the project's anticipated return on
investment(ROI) and reasonableness of developer profit.The goal of the Midtown TIF Assistance
program is to make projects financially feasible. Therefore, projects that demonstrate financial need for
public funding will be given priority.
1. Sources& Uses of Funds
a. Identify the sources of funds used to finance the project.Typical sources include equity, lender
financing, mezzanine financing, other anticipated types of public assistance, and any other types
or methods of financing. Describe the sources of equity and include a term sheet for lender
financing, if available.
b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project
budget must identify the up-front sources intended to finance the development costs of the
project. If determined, specify the specific line items of the project budget that each source will
finance.
c. Summarize the uses of funds. General categories to be identified include acquisition and related
site costs, hard construction costs, and a breakdown of soft costs.
2. Development Budget
Provide an accurate and detailed development budget for the project that includes a detailed
breakdown of significant line item costs consistent with the sample included in the application packet.
The budget should be arranged to identify acquisition and site related costs,hard costs,and soft costs.
Also, identify all line items that are performed by the developer, owner, or related entities.
3. Budget of TIF Eligible Expenses
Identify which of the development budget costs are eligible for reimbursement as allowed by 7-15-
4288, MCA.
4. Financial Commitments
Submit commitment letters and/or term sheets from all lenders for proposed debt(such as
construction, mezzanine, permanent, and government financing) and all other financial sources of
the project(such as grants, and tax credits). Commitment letters must clearly specify the nature and
terms of the obligations.
Midtown TIF Assistance Part 2 Page 8