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HomeMy WebLinkAboutBetter City Proposal for Bozeman, MT1 City of Bozeman Professional Services in Support of Economic Development, Tax Increment Finance Projects, & Development Planning Proposal by 1100 Country Hills Dr. Suite 100 Ogden, UT 84403 2 Executive Summary April 5, 2021 Dear Selection Committee, It is a privilege to provide this response to the City of Bozeman’s Request for Proposal and Qualifications for Professional Services in support of Economic Development, Tax Increment Finance Projects, and Development Planning. Better City has extensive experience in creating strategic plans for communities throughout the country that leverage each community’s unique assets and strengths. In addition to creating analytically robust plans using industry-leading data analysis tools, we provide services such as economic development capacity enhancement, project-specific assistance, Tax Increment Finance consulting, and project finance structuring services. Our experience in project delivery and implementation provides us with the skillset required to provide each service outlined in Bozeman’s project RFP/Q Scope of Services. There are good reasons that Bozeman has been one of the country’s fastest-growing cities. It has amazing outdoor amenities, fantastic, highly-educated people and has retained the outdoorsy/folkish authenticity that makes Bozeman - Bozeman. The explosive growth, influx of new (often wealthy) residents and booming tourism have led to some structural imbalances, however, and wages have not kept pace with the cost of living. In our experience, communities that take a holistic approach to economic resilience and development by focusing on creating places where people want to live, work, and play are those that are successful in creating quality of life for residents and becoming a community of choice for employers. The City’s Economic Development Strategic Plan recognizes that the population growth compels the City to “consider strategic infrastructure investments that can foster efficient development patterns that will support this growth”. Coordinating and directing strategic growth key to creating a future for Bozeman that benefits all of its resident and stakeholders. Better City has helped communities throughout the Intermountain West – including a current engagement with the City of Helena to restructure their RDAs and create a TIF strategy. We understand that creating effective plans requires understanding both the hard data as well as the underlying cultural and social currents that drive community perceptions and goals. We are pioneering industry-leading data analytic tools including our proprietary Better City Scorecard that provides comparative analysis. We also put tremendous focus on community engagement and interviews to ensure that recommendations intersect with the community’s goals and objectives. It would be a tremendous privilege to serve the City of Bozeman in providing the services in the RFP/Q. We would be grateful for the opportunity to meet with the Selection Committee to discuss our capabilities. Best regards, Jason Godfrey Chief Executive Officer 801-332-9006 | jason@bettercity.us | 1100 Country Hills Drive, STE 100; Ogden UT 84403 3 Contents Executive Summary ................................................................................................................... 2 Firm/Team Profile ...................................................................................................................... 4 Project Approach for Economic Development Strategy & Implementation .............................. 4 Project Approach for Economic Development & Real Estate Financial Analysis ..................... 4 Project Approach for Public-Private Partnerships .................................................................... 5 Project Approach for Building & Development Conceptualization ........................................... 5 Qualifications of the Firm for Scope of Services ......................................................................... 5 Team Resumes ...................................................................................................................... 6 Eric Gibson .......................................................................................................................... 6 Jason Godfrey ..................................................................................................................... 7 Ryan Englund ...................................................................................................................... 7 Trina Rivera ......................................................................................................................... 8 Related Experience with Projects Similar to the Scope of Services ............................................ 9 Clearfield, Utah – Economic Development Strategy & Implementation ................................... 9 Green River, Utah – Economic Development Strategy & Implementation ............................... 9 Woods Cross, Utah – Economic Development & Real Estate Financial Analysis ...................10 Town of Meeker, Colorado – Economic Development & Real Estate Financial Analysis ........10 Silver City, New Mexico – Public-Private Partnerships ...........................................................10 Brigham City, Utah – Public-Private Partnerships ..................................................................11 East Liverpool, Ohio – Building & Development Conceptualization ........................................12 Helena, Montana – Building & Development Conceptualization .............................................13 Recent and Current Work for the City of Bozeman ....................................................................13 References ...............................................................................................................................13 Price Proposal...........................................................................................................................14 Appendix I – Better City Data Visualizations .............................................................................15 Population Visualizations ....................................................................................................15 Age and Sex Visualizations ................................................................................................16 Industry Visualizations ........................................................................................................17 Appendix II – See Source Additional Visualizations ..................................................................18 Affirmation of Nondiscrimination ................................................................................................22 4 Firm/Team Profile Better City has extensive experience helping communities throughout the intermountain west create strategic directions and implement the strategy. Better City comprises a team of professionals with a wide breadth of experience, including data analyses, real estate development, small business / entrepreneurship, the public sector, management consulting, small business consulting, and senior management in Fortune 500 companies. The Better City team uses this real-world experience to assist communities with economic development strategic planning, retail leakage analysis and marketing strategies, master planning, feasibility studies, project implementation and local capacity development. Project Approach for Economic Development Strategy & Implementation Better City is focused on making tangible differences in the communities it serves and has experience creating economic plans which empower communities to reach their vision and goals. Keys to Better City’s approach for strategy development and implementation include: Engaged Partnership We are highly collaborative and focus on gathering input from many sources and crafting recommendations based on the community’s capabilities and priorities. Understanding how Bozeman’s citizens, business leaders, community leaders, elected officials, and education leaders view the area’s assets, potential, vision and challenges is essential to forging goals and initiatives that are relevant to the community and have its support. Involving many stakeholders and citizens is critical both to develop a thorough understanding of local priorities and to create momentum and galvanize support for projects. Pragmatic Problem Solving We conduct every analysis within the context of achieving the community’s goals. The process begins by understanding the desired outcomes, then working backwards to identify how these outcomes can be achieved. Better City is uniquely qualified to develop solutions because of our collective extensive experience in executing projects and generating result in the public, private and consulting worlds. This pragmatic experience ensures that our recommendations are actionable, relevant and achievable. Relevant Recommendations We provide recommendations to address any deficiencies or challenges that may hamper economic progress in the City. A Stewardship Matrix outlines what needs to be done, who out of the local/regional stakeholders is positioned to complete this task, and when is a reasonable timeframe in which to implement the recommendations. This Stewardship Matrix is a key tool to prevent the recommendations from being put on a shelf by driving implementation and follow through. Project Approach for Economic Development & Real Estate Financial Analysis We know that a data-driven community is more competitive in a global marketplace for workers, industries, and ideas, and that having data readily available will be critical for increasing stakeholder engagement and making progress on strategic projects. As part of our engagement, 5 we would assess the real estate commercial and residential markets. We would analyze the market trends and anticipated challenges and opportunities for development. Additionally, Better City can provide an Economic Development Dashboard that has economic, demographic, environmental, and social information and can include information on industry clusters, workforce readiness and education, income and employment data, and housing affordability and turnover, to name a few. The visualizations could be hosted on the City’s website and can match style and formatting so as to be consistent with the site’s theme. Additionally, staff members can generate and send customized reports to prospective businesses. The tool is customizable so that some visualizations are public and viewable on the site while others are restricted to specific users and licenses. Example visuals are provided in Appendix I. Optional: See Source, a Better City sister company, can be added on as a subcontractor for the dashboard. See Source uses a variety of data sources including public and proprietary data sets (including cellphone GIS and credit card spending data) to provide insights into tourism visitation, retail leakage, point of interest cross pollination and consumer spending. Example visualizations are provided in Appendix II. Project Approach for Public-Private Partnerships We have assisted communities with a variety of Public-Private Partnership structured projects, and we would identify opportunities for these project types within the community and assist in moving the project forward. We would meet with project champions and identify with them what their role will be in moving related projects forward, and then we would coordinate with stakeholders to determine project roles. A detailed plan is essential for the success of Public-Private Partnership projects, and our team has provided guidance on a wide variety of project types. Additionally, we have experience creating detailed project financial pro formas. We have extensive experience with RDAs and strategical utilization of Tax Increment Financing (TIF) to catalyze important community projects. Project Approach for Building & Development Conceptualization Bozeman has a unique and historically authentic character. One key to preserving Bozeman’s sense of place is creating and enforcing design standards that maintain and enhance it’s rugged, gritty, mountain-man, resilient ambiance. Better City has a strategic partnership with Burditt Land|Place – an award-winning urban planning and design firm that specializes in creating functional yet aspirational designs that are economically feasible but also create a unique ambiance. Better City and Burditt would work collaboratively to assist with Bozeman’s mixed-use districts and in creating visioning plans for the community. Qualifications of the Firm for Scope of Services Eric Gibson will be the Project Lead and will be the primary interface between Better City and Bozeman. Eric will conduct analyses and develop data-based strategies, and conduct implementation. Eric will lead a qualified and experienced project team that will include Jason Godfrey, Ryan Englund, and Trina Rivera. The team’s resumes are included below. Jason and Ryan will conduct stakeholder interviews to determine what projects would have community support and assist with strategic planning, project structuring, and developing robust financial pro 6 formas and cash flow statements. Trina will create straightforward strategic plans, stewardship matrix, and marketing materials. Our organization chart here shows that, in addition to reports from Eric, you can anticipate interacting with any members of our team, and we coordinate within our team to maximize effectiveness and ensure quality results—with each person contributing to the project however best suites the project needs. We anticipate that the project will utilize the time allotted to the Team as Mr. Gibson 65 percent, Mr. Godfrey 15 percent, Mr. Englund 5 percent, and Ms. Rivera 15 percent. See the Price Proposal section for set hour amount examples. Team Resumes Eric Gibson Director, Strategic Analysis Mr. Gibson has extensive project leading projects. His engagements have led to more than $1 Million in grant funds awarded to municipal clients and small businesses. Mr. Gibson has deep experience with creating strategic plans, conduction feasibility studies, and working with local stakeholders and leaders to align resources, increase local capacity, and implement catalytic projects. Selected Work Experience Economic Development Planning / Implementation • Raton, NM — EDSP & Implementation • Syracuse, UT — EDSP • Clearfield, UT — Mixed-use redevelopment • Humboldt County, NV — EDSP & Implementation Economic Development Capacity Enhancement • Wells, NV — Various projects • Superior, CO — Various projects • Silver City, NM — Various projects • Herriman, UT — Balanced Economy Study • Wells, NV — Wood Hills Trails Feasibility Study • Wood Cross, UT — TOD feasibility • Green River, UT — Value-Added Food Feasibility • Wells, NV — Hydroponics Feasibility Study Bozeman Jason Ryan Trina Eric Specialties • Professional and Technical Writing • Data analysis and forecasting • Market analysis and feasibility studies • Project Implementation • Capacity Enhancement Education / Credentials • BS, International Business Economics, Weber State University • BA, English, Weber State University • UT Licensed Real Estate Agent 7 Jason Godfrey Chief Executive Officer Mr. Godfrey has worked in both the public and private sectors doing real estate development, public administration, operations management, and management consulting. He has worked with communities throughout the country – helping them identify and leverage their native strategic advantages to catalyze growth and prosperity. Mr. Godfrey worked previously as a General Manager for Republic Services, Associate Director of Public Works for Salt Lake County and CEO of RioStones and Petra Stones. Selected Work Experience Economic Development Planning / Implementation • Anthony, KS – EDSP • Buena Vista, CO – EDSP • Moffat County, CO – EDSP • Leadville, CO – EDSP Implementation Plans / Projects • Leadville, CO – Guided the City through the process of forming an RDA. • Wells, NV – Created Affordable Housing Plan Ryan Englund President Mr. Englund has spent the past 30 years working as a corporate executive and a consultant in many countries including the United States, Canada, Brazil, England, Germany, Denmark, U.A.E, Qatar, Trinidad-Tobago, Venezuela, and Sudan. He has led workshops in Kuwait, Nigeria, Saudi Arabia, South Africa, Sudan, and Turkey. Past clients include Hershey’s, Payless Shoe Source, Firestone, Sears, Proctor and Gamble, among many others. Mr. Englund has unparalleled experience in turning around organizations and driving improved performance. He specializes in mapping organizational complexities and charting paths to maximal performance. Mr. Englund was an associate at consulting firm Bain and served as a Vice President in two consumer goods companies. Specialties • Developing customized, relevant, actionable strategic plans for smaller communities. • Fostering community collaboration and building local capacity. • Complex financing structures involving tax increment financing, grants, and public- private partnerships. Education / Credentials • BA, Economics, Weber State University • MBA, Rice University 8 Selected Work Experience • Increased profits by $150M for an industrial manufacturer by introducing new products, entering new markets and increasing customer service. • Doubled ROA at a consumer products firm by expanding retail sites and sales. • Added $60M in profits by increasing sales and improving production processes at a consumer goods manufacturer. • Cut annual expenses by $90 million while improving service levels for a distribution company. Trina Rivera Director, Business Operations Ms. Rivera conducts research and outreach to further Better City’s strategic projects. She received her Master of Public Administration from Brigham Young University. Selected Work Experience Economic Development Planning • Mills, WY – EDSP • Helena, MT – Downtown Visioning Plan • Green River, UT — Implementation Plan Update • Raton, NM — EDSP Economic Development Capacity Enhancement • East Liverpool, OH – Conducted housing analysis, recruitment, & created grant applications. • Superior, CO — Developed recruitment brochure, business webpage, COVID-19 resource programs, & conducted recruitment & retention. • Green River, UT — Wrote plan update, business resource guidebook, RFP for feasibility study, & conducted outreach for recruitment & retention. • Clearfield, UT — Created guide for Urban Renewal District establishment, & conducted recruitment. • Meeker, CO — Conducted recruitment. • Silver City, NM — Created remote work opportunities guide. Specialties • Best practices consulting • Entrepreneurship and helping businesses succeed • Retail and commercial development Education / Credentials • BS, Accounting, Brigham Young University • MBA, Harvard Graduate School of Business Administration Specialties • Professional & Technical Writing • Conducting Research & Outreach • Creating Programs & Resource Guides Education / Credentials • MPA, Brigham Young University • BA, English & Liberal Arts, Southern Virginia University • UT Licensed Real Estate Agent 9 Related Experience with Projects Similar to the Scope of Services Clearfield, Utah – Economic Development Strategy & Implementation Clearfield City recently adopted a small area plan which calls for redeveloping a 25- acre area as a mixed- use, walkable project to be deemed the “new downtown” of Clearfield. The site currently consists of a large mobile home park and a 1970s-era shopping center with a 3-acre pond behind it. Clearfield hired Better City to conduct a feasibility study to determine what level of redevelopment is feasible in the near term and to make recommendations for use mix, phasing, and public incentives. After thorough analysis of the area and market conditions and trends, Better City recommended the site be redeveloped to include a public plaza adjacent to the pond, entertainment uses, townhomes, apartments, ground level retail, and a hotel. Better City was subsequently hired by the City to assist with implementation and was successful in recruiting and attracting a master developer, The Lotus Companies, to enter into a Development Agreement and Memorandum of Understanding (MOU) with the City. Acquisitions and site planning are currently underway for Phase 1 as of Summer 2020. Green River, Utah – Economic Development Strategy & Implementation The small community of Green River, Utah has faced several boom-and-bust cycles stretching back nearly 100 years across multiple industries including uranium mining, agriculture, and a military missile base. The current population of the city is less than 30 percent of its peak and the City has a significant challenge of dealing with neglected properties that have resulted from the economic decline. Better City set out with the underlying goal of being able to identify realistic milestones and areas of focus that the City could focus on now, vs waiting for another economic boom. The City’s leadership enthusiastically supported and adopted the plan and has retained Better City to assist with implementation. Current projects include downtown redevelopment, industry expansion efforts, and community development initiatives. 10 Woods Cross, Utah – Economic Development & Real Estate Financial Analysis Better City was selected as a sub-contractor for a Transit Oriented Development analysis sponsored by the Wasatch Front Regional Council and the City of Woods Cross. The project lead, Crandall Arambula based out of Portland Oregon, tasked Better City with analyzing current market conditions and determining the market demand for potential uses at Woods Cross Station. Better City conducted a comprehensive market analysis and generated recommendations for the use-mix of residential, commercial, and light-industrial space to be included within the site concept plan. The project was successfully completed in the summer of 2019 and resulted in a concept and recommendation plan being presented to residents, stakeholders, and the City Council of Woods Cross. The plan is being used as a roadmap to help inform future decisions. Town of Meeker, Colorado – Economic Development & Real Estate Financial Analysis Better City was tasked with analyzing the housing market for the Town of Meeker, and identifying the best approach to feasibly develop new housing within the Town. Based on the findings of the market analysis, Better City developed a project concept and approached local potential partners to secure private- sector interest. Due to the depth of analysis, and creative problem solving utilized in the project concept, several local partners became interested in the project and expressed a willingness to partner with the Town to bring new housing to the community. A local landowner and a local contactor are currently in discussions with a local bank and the Town’s leadership to implement the project. Construction for the project is anticipated to begin in the fall/winter of 2019/2020. Silver City, New Mexico – Public-Private Partnerships The Town of Silver City had collaborated with other local municipalities, the school district, and a number of non-profits to periodically secure grants and conduct economic development studies. Funding for implementation was not identified and many of the strategies and initiatives were left to the stakeholders to fund and execute. The Town and other stakeholders desired assistance in creating a sustainable program for economic development. 11 Prior efforts were leveraged to identify key areas of focus and align human capital to form project task forces, which consisted of project champions and advocates that could move projects forward in implementation. Recommendations to stakeholders included establishing an conomic development organization (EDO) focused on workforce development and funded through private and public members. This new entity would be lead by an Executive Director and be responsible for executing strategic initiatives including implementing the Workforce Development Strategic Plan (created by Better City) and overseeing and coordinating the project task forces. In addition, Better City developed relationships with various stakeholders and coordinated stewardship roles including the local University, School District, and Main Street in areas such as entrepreneurship, workforce development, and downtown revitalization. Better City was able to secure a grant through the Economic Development Administration to fund the new EDO, which is now established as a Public Private Partnership and has begun its search for an Executive Director. Brigham City, Utah – Public-Private Partnerships In 2012, Better City was engaged by Brigham City, Utah to complete a cluster analysis and job creation strategy to address significant job losses in the region. The scope of work included economic assessment, market analysis, public input, benchmarking and monitoring, and final recommendations. After a thorough analysis of local economic data and interviews with key stakeholders Better City identified growth opportunities in several existing and emerging clusters. Development was needed to remove impediments to growth. New hospitality and industrial products needed to be brought to market to foster job creation. To support these recommendations and drive to implementation, Better City conducted a feasibility analysis including the development of project pro formas, capital stacks, and public private partnership structures. These feasibility analyses were then market tested by taking them out to the development community and soliciting their participation in the proposed projects. 12 Better City secured a signed development agreement from a prominent hospitality developer for a flagship hotel in the downtown area and has more recently secured an industrial developer for a 700-acre phased industrial park development. The hotel is now open and performing beyond expectations. The industrial park is in pre-development and Better City is negotiating deal points and funding sources with the landowner, City, and development team to bring this project to fruition. Already, two site selectors that represent large employers have expressed interest in this industrial site. East Liverpool, Ohio – Building & Development Conceptualization Better City was engaged by East Liverpool, Ohio to facilitate economic development and revitalization in the City’s distressed downtown core. After conducting comprehensive stakeholder interviews, a three-pronged strategy focused on community development, workforce development, and economic development was created by Better City that identified market opportunities in the broader region. Implementation commenced immediately due to the severe economic distress of the community and urgent need to capitalize on the broader regional opportunities of workforce training and housing. Better City curated a for-profit vocational school to rehabilitate and preserve two vacant buildings totaling 35,000 square feet in the historic downtown. Mr. Hughes orchestrated the $6.8 million transaction by securing a pre-development grant, Community Development Block Grants from the State, City, and County as well as State and Federal Historic Tax Credits, State and Federal New Markets Tax Credits, tax increment financing, commercial debt, and tax credit investors. Better City also recruited a multi-family housing developer for a 45-unit $9.2 million workforce housing development. These two projects, totaling $16.0 million, will provide community development by eliminating blight, workforce development by providing training programs and housing for the local and regional workforce, and economic development by creating jobs and increasing the local tax base. 13 Helena, Montana – Building & Development Conceptualization The City of Helena had conducted a Downtown Neighborhood Plan and identified the Cruse Avenue corridor as an underutilized area of its historic downtown. The City hired Better City, in partnership with a local architect, to assess the market, redevelopment opportunities, and potential for activation. In addition, the City hired Better City to perform a blight analysis of the area including and around a demolished regional indoor mall, Capital Hill Mall, and to create an urban renewal plan. The Project Team interviewed over 30 stakeholders and identified several alternatives that would reposition Cruse Avenue as an active transportation corridor and provide for appropriate street massing with residential uses. This approach was identified as being synergistic and supportive of the historic downtown core. The Project Team presented these alternatives in virtual charettes to gather community feedback and input and then provided the City with final recommendations. As a result of the analysis performed by Better City, the area including and around the former regional indoor mall was identified as blighted. This now allows the City the option to establish an urban renewal area and use tax increment for public infrastructure and façade improvements. Recent and Current Work for the City of Bozeman Better City has not had the privilege of working with Bozeman hitherto. References We invite you to contact our references for the projects above. (Give them our regards!) Sharon Haugen Director, Helena Community Development 406-447-8445 shaugen@helenamt.gov Lisa Cook Town Manager, Town of Meeker 970-878-4962 lisa@town.meeker.co.us Priscilla Lucero SWNM Council of Governments 575-388-1509 priscillalucero@gilanet.com Travis Bacon Mayor, City of Green River 435-564-3448 tbacon@greenriverutah.com 14 Price Proposal The billing rates for Better City Team members are as follows: • CEO & President $150/hour • Directors $100/hour • Burditt Land|Place $150/hour If the ratio of Team contributions is at the ratios identified in the Qualifications of the Firm section (Eric Gibson 65%, Jason Godfrey 15%, Ryan Englund 5% and Trina Rivera 15%) then the expected blended hourly rate would be $110.00. As alternative, we would be amenable to establishing a set monthly fee based on the anticipated range of hours dedicated to Bozeman each month. This would provide the City with the opportunity to take advantage of bulk pricing and having a more predictable monthly expense. For example, if it was anticipated that the engagement would require between 15 and 20 hours per week, the set monthly fee would be $7200. The table of fees and hour ranges follows: Expected Hours per Week Flat Monthly Fee 5 to 10 Hours $3500 10 to 15 Hours $4800 15 to 20 Hours $7200 25 to 30 Hours $12,000 30 to 35 Hours $14,400 As work demands and project requirements shifted, we would adjust the monthly fee – as often as required. 15 Appendix I – Better City Data Visualizations The visualizations provided here can be customized based on GSI’s requirements. New data and sources (such as a project pipeline, KPIs for key industries, and real estate, can be provided to Better City and developed in partnership to ensure that the tools and reports best meet GSI’s needs. Population Visualizations 16 Age and Sex Visualizations 17 Industry Visualizations 18 Appendix II – See Source Additional Visualizations 19 20 21 Attachment A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. In addition, ____________________________________(name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. ______________________________________ Name and title of person authorized to sign on behalf of submitter Better City, LLC Better City, LLC Jason Godfrey, CEO