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HomeMy WebLinkAbout09-16-21 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=eec7776fd3ac4d165910d44d658a3e89a Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting Via Phone: Call-in toll number (US/Canada): 1-650-479-3208 Access code: 2550 882 3014 B.Disclosures C.Changes to the Agenda D.Approval of Minutes D.1 Minutes from August 19, 2021.(Fine) E.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. F.Action Items F.1 Northeast Urban Renewal District Tax Increment Financing (TIF) Assistance Program Criteria for TIF Assistance(Fine) G.FYI/Discussion H.Adjournment THE NORTHEAST URBAN RENEWAL BOARD OF BOZEMAN, MONTANA NURB AGENDA Thursday, September 16, 2021 For more information please contact David Fine, dfine@bozeman.net This board generally meets the third Thursday of the month from 6:30 PM to 8:30 PM 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). 1 Memorandum REPORT TO:Northeast Urban Renewal Board FROM:David Fine, Economic Development Program Manager SUBJECT:Minutes from August 19, 2021. MEETING DATE:September 16, 2021 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Move to approve minutes from August 19, 2021. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Minutes from August 19, 2021. UNRESOLVED ISSUES:NA ALTERNATIVES:NA FISCAL EFFECTS:NA Attachments: NURB 081921 min.doc Report compiled on: September 10, 2021 2 NURB Meeting – August 19, 2021 1 Northeast Urban Renewal Board (NURB) Regular Meeting Thursday, August 19, 2021 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Thursday, August 19, 2021, via Webex. Present:Absent: Voting Members: Ethan Barlow Corwin Dormire Charlie Kees Natalie Van Dusen (arrived at 6:38 pm) Jeanne Wesley-Wiese Non-Voting Members: EJ Daws Chris Nixon Robert Pavlic Commissioner Liaison: I-Ho Pomeroy Staff: David Fine, Urban Renewal Program Manager Robin Sullivan, Recording Secretary Guests: Call to Order – Vice Chair Ethan Barlow called the meeting to order at 6:35 p.m. Changes to the Agenda. No changes were made to the agenda. Public Comment – No public was in attendance at this meeting. Approval of Minutes – May 20, 2021. It was moved by Jeanne Wesley-Wiese, seconded by Charlie Kees, that the minutes of the regular meeting of May 20, 2021 be approved as submitted. The motion carried on a 3-0 vote. Discussion/Action Items – Aspen Street Pedestrian Bridge next steps. David Fine stated the pedestrian bridge has been on this Board’s work plan for several years. The bridge is about 90 percent engineered and, therefore, is a shovel ready project. The Cottonwood and Ida project has been terminated at this time and, as a result, construction of that section of Front Street between East Tamarack Street and North Ida Avenue is also terminated. The result is to move the Aspen 3 NURB Meeting – August 19, 2021 2 Street pedestrian bridge to this fiscal year. The outstanding issues are the exact location of the bridge and finalizing the engineering. He characterized the bridge as structurally sound and crossing the creek in a straight line; however, he suggested this Board may wish to take additional steps to make it a statement piece and an architectural asset to the community. As a result, he has contacted Rob Pertzborn to identify artistic features that could be added to make the bridge an asset. He acknowledged that this step would increase the cost of the bridge. Jeanne Wesley-Wiese stated she is happy that the pedestrian bridge can be funded this fiscal year; and she supports making it a statement. She noted that this has always been the art side of town and she like having a creative side to the project. Ethan Barlow acknowledged the bridge has had quite a history and has been a possibility for a long time. He finds the practical solution underwhelming and supports a more aesthetic approach. David Fine stated the current engineered design is structurally sound with concrete abutments in the proper orientation to the creek. He noted that a pre-engineered bridge can be purchased and placed on those abutments; and that is the current design. He noted that this type of bridge does not preclude cool architectural elements. Natalie Van Dusen stated a bridge with architectural elements would reflect the character and positive nature of the neighborhood. Charlie Kees noted the bridge has been in the queue for years, and he is in favor of it. He lives on East Aspen Street and finds the bridge would open connectivity to the neighborhood across the creek and could make his son’s travel to Hawthorne School easier. He cares about the uniqueness of the northeast neighborhood and wishes to protect it. He then asked about the timeline for the bridge. David Fine stated he does not believe adding architectural elements will add to the timeline for the project. He indicated the final engineering and design should be completed later this fall, with bidding in the first quarter of 2022 and construction next summer. Responding to additional questions from Charlie Kees, David Fine confirmed the sidewalk alignment was recently staked. He noted the sidewalk is located within the street right-of-way, but there is a lot of stuff in the public right-of-way right now. The staking is so the public understands what might be displaced or need to be moved as a part of the project; and that is what holds the most potential to frustrate people. He plans a softer approach for gaining support for moving encroachments, but acknowledged that some difficult decisions may have to be made. It was moved by Jeanne Wesley-Wiese, seconded by Charlie Kees, that the Aspen Street pedestrian bridge be prioritized as a project in the Fiscal Year 2021-2022 budget and work plan. The motion carried on a 4-0 vote. Update on the financial status of the NURB fund and staff updates on status of projects in the FY2020-2021 Work Plan and Budget.Robin Sullivan briefly highlighted the financial report. She then drew attention to the balance in the fund, which is significantly higher than the projected balance forward in the FY 2021-2022 budget. 4 NURB Meeting – August 19, 2021 3 David Fine stated the parking structure that had been attached to the Cottonwood and Ida project is not necessarily dead since parking is needed in the area. He noted there are no specific plans at this time, but it is an issue that will be explored further. David Fine reported that the principal investor in the Cottonwood and Ida project has pulled the plug on the project. He noted the project was to include dedicated affordable units and a mix of attainable and luxury units. The higher costs of construction resulted in the inability to provide attainable units and was still risky with low margins. The development group is socially conscious about its projects and did not feel it could proceed with the project as it was changing. At this time, they are considering options for the site. David Fine noted that less has been spent on boulevard and open space maintenance than in prior years, mainly because the contractor for the Aspen Street mowing stopped doing so, and he did not know it until he was contacted about the lack of maintenance. Since it is difficult to get a new mowing crew late in the season, he has asked the Parks Department to mow the area until the end of the season. David Fine reported the quiet zone feasibility study has been completed and reveals that all three crossings need to be improved. No funding is available to do the North Rouse Avenue crossing, but some developers could potentially be interested in fronting some of the costs of doing so. The Griffin Drive upgrades are currently underway, and the improvements needed for the quiet zone designation, including a raised median and 10-foot-wide asphalt paths on both side of the roadway with bike/pedestrian gates, are being installed as a part of the project. He noted that this district could fund the improvements for the North Wallace Avenue crossing, but he would prefer to get developers to fund the project if possible. Responding to Ethan Barlow, David Fine stated the preferred quiet zone improvements include raised medians, lights, bells and gates. He stated that gates for bike/pedestrian facilities are required for those facilities that are separated from the street. He noted that the improvements can be installed at any time; however, a quiet zone cannot be established until all of the improvements are done. He cautioned that the Montana Department of Transportation controls the North Rouse Avenue crossing and, as a result, will make the decision on whether quiet zone improvements will be made for that crossing. Responding to Ethan Barlow, David Fine stated the Gallatin Valley Land Trust found they did not need the $15,000 they had requested for the Front Street trail because the bids came in under estimate. Review of the urban renewal plan and state statutes pertaining to urban renewal districts. David Fine noted a couple board members were recently appointed. He drew attention to how the district monies can be expended, noting that list is set forth in Section 7-15- 4288 of the Montana Code Annotated. He stated that public infrastructure is the area where most of the tax increment financing monies have been expended to date. He noted that those expenditures are limited by the urban renewal plan; and the plan needs to be updated if a proposed project is not included in the original plan. David Fine briefly highlighted some of the costs that have been covered by the MidTown Urban Renewal District, including demolition costs and transitional housing costs for those who were displaced by removal of a trailer court. 5 NURB Meeting – August 19, 2021 4 Responding to Natalie Van Dusen, David Fine stated the urban renewal plan for this district was attached to the memo in the packet information. . Fiscal Year 2021-2022 Work Plan and Budget – Recommendations regarding future projects in lieu of Front Street Construction (Tamarack to Ida). David Fine stated the motion in the previous discussion on this issue addresses this agenda item. He noted that the amount budgeted for this project may change because it does not include the architectural elements that have been added. David Fine noted the amount budgeted for this project was $170,000 and the amount budgeted for the Front Street project was $190,000. He has notified the Commission that this change in project priorities could happen, and staff can proceed with the direction that this Board has given them. Set agenda for September 16, 2021 meeting or cancel meeting. David Fine stated he would like to have a meeting next month. He noted the property owners of the Wildlands Project have also purchased the Bronken property. Those owners would like to talk to the Board about their project and possibly make a request related to one of those projects. He also wants to provide an update on Commission action regarding board consolidation. FYI/Discussion.David Fine gave a brief update on board consolidation. He noted the City currently has forty advisory boards, each of which has a Commissioner Liaison and staff support. The City Manager has been looking at ways to consolidate and reduce the number of boards. The first phase of the board consolidations has just occurred, shrinking the number of boards to five; and the urban renewal boards are not a part of that phase. He stated those boards will be included in the second phase; and the City Manager’s current proposal is that the Commission take back the decision making authority for those districts. He noted this change will require public action including revising the plans for both the Midtown and Northeast Urban Renewal Districts and the adoption of an ordinance. Responding to Ethan Barlow, David Fine stated the goal is to have the first phase board consolidations completed in November with the new boards being seated in December. The change in urban renewal boards is anticipated in the first quarter of 2022. Adjournment – 7:27 p.m. There being no further business to come before the Board at this time, Ethan Barlow adjourned the meeting. Ethan Barlow, Vice Chair Northeast Urban Renewal Board City of Bozeman 6 Memorandum REPORT TO:Northeast Urban Renewal Board FROM:David Fine, Economic Development Program Manager SUBJECT:Northeast Urban Renewal District Tax Increment Financing (TIF) Assistance Program Criteria for TIF Assistance MEETING DATE:September 16, 2021 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Make a recommendation to the Bozeman City Commission regarding the criteria that should be used for evaluating projects seeking financial assistance through the Northeast Urban Renewal District. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The Midtown Urban Renewal District (URD) has a program for TIF assistance, authorized by City Commission resolution, that gives the Board and Staff a framework for evaluating how projects meet the goals of the urban renewal plan. This proposal would give the Northeast URD as similar, Commission approved, framework for considering projects seeking assistance with TIF eligible expenditures. Staff is requesting that the Board review and make recommendations regarding the criteria for TIF assistance in this proposed program. UNRESOLVED ISSUES:n/a ALTERNATIVES:n/a FISCAL EFFECTS:This program has no direct fiscal effects. Projects approved under this program will have their own individual fiscal effects. Attachments: NortheastTIFApplication.docx Report compiled on: September 10, 2021 7 Pole Yard TIF Assistance Application Part 1 Page 1 Northeast Urban Renewal District Tax Increment Financing Assistance (TIF) Application PART 1 PROJECT INFORMATION Project Name: Property Address: __ Legal Description: Property Geo-Code: 06- County Tax ID #: Property Status: ☐Vacant Land ☐Building on Leased Land ☐Existing Building APPLICANT INFORMATION 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: Please attach a list of additional owners, business partners, developers and/or investors associated with this project, with the above information provided for each. 8 Pole Yard TIF Assistance Application Part 1 Page 2 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) TIF ASSISTANCE REQUEST DETAIL 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? Explanation for response must be included in the required project narrative. ☐No ☐In a limited fashion ☐Yes, but at a later date ☐Yes, as scheduled ☐Other 9 Pole Yard TIF Assistance Application Part 1 Page 3 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 Pole Yard 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 10 Northeast TIF Assistance Application Part 1 Page 4 REQUIRED INFORMATION 1. Project Narrative Provide a narrative overview of the project including each of the following elements: a. Public Benefits Projects with a high degree of public benefits are typically more likely to receive TIF assistance. The criteria matrix of this application guides the Board and City Commission to understand and evaluate the public benefits for a project. Provide a detailed narrative response to each criterion and include supporting documentation. b. Project Description 1. Describe the status of the property status, including ownership and leases 2. Description of business(es) to benefit from the TIF Assistance 3. Identify all proposed uses: e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc. 4. 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. 5. Value of TIF assistance requested – requests over $50,000 require Part 2 of the application c. Project Timeline 1. Provide anticipated dates for site acquisition, project start, completion, estimated date of occupancy, and 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. 2. Provide detailed explanation on impact on the timeline if TIF assistance is not granted at the requested amount. d. Construction information 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 2. Site Maps and Building Plans The Applicant must submit a completed Conceptual Review Application or Pre-Application and City responses to the Board. The application must include, at minimum: a. Photographs of project site and/or building b. Map showing the location of the site and its immediate surroundings c. Proposed development plans including site plans, floor plans, and building elevations d. Description of parking accommodations for residential units and commercial uses e. Anticipated off-site infrastructure improvements, including anticipated costs, and City comments on those infrastructure improvements f.Copy of Concept Review comments 3. Completed Criteria Matrix (see next page) The applicant must complete the matrix indicating criteria that apply to this project and points requested. Final determination of point and applicable criteria will be made by District Staff and the City of Bozeman. 11 Northeast TIF Assistance Application Part 1 Page 5 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. Northeast District Goals Points Ensure the health, safety, and security of the District 1.Infrastructure Improvement: The project will repair, replace, or improve outdated or insufficient infrastructure /6 2.Multimodal Transportation: The project incorporates infrastructure that facilitates safe, efficient, and convenient access of the district for all modes of transportation /4 3.Public Utilities: The project will incorporate public utilities in a way so that they are not visually or physically obtrusive /2 Balance Commerce and Livability within the Mixed-Use Framework 4.Mix of Uses: The project incorporates mixed use development that promotes livability /4 5.Community Housing: The project includes affordable housing units /8 Honor the Unique Character and Vitality of the District 6.Compatibility: The physical design, materials, and massing of the project reflects the community’s values of durability, flexibility, and simplicity, and preserves historic assets and character of the neighborhood /2 7.Sustainability: The project’s design and construction practices incorporate environmentally sustainable strategies and elements /2 Public Open Space is Essential to a Healthy and Appealing Urban Environment 8.Open Space: The project designates new land for parks and open space /4 9.Landscaping: The project improves landscaping in existing public spaces /2 The Costs of Projects and Programs shall be Weighed Against their Benefits of the District 10.Return on Investment: The investment of public funds in the project results in a leverage ratio of at least 10:1 for residential projects; 8:1 for commercial projects; and/or 5:1 for family wage jobs /4 The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding 11.This project involves and/or will encourage public-private partnerships that will add value to the District and its investments. /4 Projects shall Consider Impacts on Adjacent Neighborhoods The project is complimentary to adjacent neighborhoods, not just Northeast /2 12.Total Points /44 APPROVAL (For Official Use Only) Approval Status: Date Approved: Date Letter of Award Sent: Date Certificate of Completion: Date of Payment Request: 12 Northeast TIF Assistance Part 2 Page 6 PART 2 FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE Project Financial Information In order for the Northeast 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 Northeast 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. 13