HomeMy WebLinkAbout11-02-21 Agend -Northeast Urban Renewal Board Special Meeting (NEURB)A.Call Special meeting to order at 6:30pm
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B.Disclosures
C.Changes to the Agenda
D.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.
E.Action Items
E.1 Northeast Urban Renewal District Tax Increment Financing (TIF) Assistance Program Criteria
for TIF Assistance(Fine)
E.2 Financial Report on the status of the Northeast Urban Renewal District Fund.(Fine)
F.FYI/Discussion
G.Adjournment
THE NORTHEAST URBAN RENEWAL BOARD OF BOZEMAN, MONTANA
NURB SPECIAL MEETING AGENDA
Tuesday, November 2, 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).
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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:November 2, 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 a 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:
NortheastTIFAssistance.pdf
NortheastTIFApplication_Fillable.pdf
Report compiled on: September 10, 2021
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NORTHEAST TAX INCREMENT FINANCING (TIF) ASSISTANCE PROGRAM
INTRODUCTION
The Northeast Urban Renewal Plan (“Plan”), adopted by the Bozeman City Commission on
November 14, 2005, authorized the Northeast Urban Renewal Board (“Board”) to establish
monetary incentives in the Northeast Urban Renewal District (“District”) in support of the Plan’s
goal to promote economic development. The Board established and administers this Tax
Increment Financing (“TIF”) assistance program for the redevelopment and rehabilitation of
properties within the District.
TIF assistance applications are subject to program eligibility criteria and project guidelines listed
below. Applications will be accepted and processed in the order in which they are received and
approved based on the availability of funds for the program.
PURPOSE
The purpose of the TIF assistance program is to encourage desirable development and
redevelopment projects, as well as assist projects that would not otherwise occur “but for” the
assistance provided through tax increment financing. The purpose of this document is to provide
guidelines for the Board to offer monetary incentives for development activities in the District in
the form of TIF assistance funds.
This policy shall be used as a guide in processing and reviewing applications requesting TIF
assistance. The Board shall have the option of amending or waiving sections of this policy when it
determines, in its sole discretion, such an amendment or waiver is necessary or appropriate. In
amending or waiving any sections of this policy, the Board shall document the reason for the
deviation.
The provision of financial assistance is at the sole discretion of the Board. The Board reserves the
right to reject or approve applications on a case-by-case basis, taking into account established
policies, specific project criteria and the demand on District services in relation to the potential
benefits to be received from the proposed project. Meeting policy guidelines or other criteria
does not guarantee the award of TIF assistance. Furthermore, the approval or denial of one
application is not intended to set precedent for approval or denial of another application.
PROGRAM OBJECTIVES
The primary objective of the 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:
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Northeast Urban Renewal District TIF Assistance
• Balance commerce and livability in the District within the mixed-use framework;
• Encourage the health, safety and security of the District;
• Honor the unique character and vitality of the District; and
• Reduce blighting influences in the District
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.
GENERAL POLICIES
1. TIF assistance priority will be given to projects that do not have the financial feasibility to
proceed without the benefit of the assistance.
2. The applicant shall provide market and financial feasibility studies, appraisals or other
information provided to private lenders for the project as well as any other information or
data which the Board, or its financial consultants, may require in order to review the need for
TIF assistance.
3. TIF assistance will not be used for projects that place extraordinary demands on District
infrastructure or services.
4. The applicant must be able to demonstrate, to the Board’s satisfaction, an ability to
construct, operate and maintain the proposed project based upon past experience, general
reputation and credit history.
5. The applicant shall provide sufficient market, financial, environmental and other data relative
to the successful operation of the project.
6. The Applicant must retain ownership of the project long enough to complete it, to stabilize
its occupancy, to establish the project management, and to initiate payment of taxes based
on the increased project value. This application must be signed by both the applicant(s) and
the property owner(s) (if different).
7. Project plans and construction must comply with all applicable code and permit
requirements. Applicant is advised to consult with the City of Bozeman planning and building
departments, licensed architects, engineers, or building contractors before proceeding with
final plans or construction.
8. The Applicant must demonstrate significant leverage of private investment through the use
of public dollars.
ELIGIBLE COSTS
TIF eligible expenses are defined by Montana Code Annotated, 7-15-4288 and further limited by
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Northeast Urban Renewal District TIF Assistance
the Plan. The project seeking TIF assistance must be located within the boundary of the District.
Costs related to the following are eligible for financial assistance:
1. Demolition and removal of structures
2. Construction and improvement of public improvements or infrastructure, including
streets, curbs, gutters, sidewalks, alleys, parking lots and off-street parking facilities,
sewer lines, storm sewers, waterlines, and impact fees
Requests for funding above $50,000 will require the ratification of the Bozeman City
Commission.
DISBURSEMENT OF ASSISTANCE FUNDS
The TIF assistance program is a reimbursement program. No funds will be disbursed until all
completion criteria have been satisfactorily met as determined by the Board in its sole
discretion. At the end of the project, the recipient will submit a Certificate of Completion and
required supporting documentation to the Board including itemized invoices and other
documentation as the Board may reasonably request.
USE OF ASSISTANCE FUNDS
The award of TIF assistance funds is subject to the Applicant entering into a grant agreement
with the District. The grant agreement will include requirements that the grantee comply with (i)
applicable City of Bozeman procurement regulations related to bidding, hiring, and prevailing
wages; (ii) the City’s nondiscrimination policy; and (iii) State of Montana public records laws. The
grant agreement will include such additional terms as the District in its sole discretion
determines are prudent or necessary to fulfill the goals of the TIF assistance program.
TIF assistance funds must be used within two years of the date of the Letter of Award. Any funds
not disbursed to the Applicant within that time will remain in the District fund. The Board, in its
sole discretion, may provide an extension of up to one year to the original two-year timeframe.
Use of TIF assistance funds must be in compliance with the terms of the grant agreement
between the Applicant and the District.
REVOCATION OF AWARD
The grant agreement will include terms providing that an award of TIF assistance may be
revoked by the Board if the Board finds, in its sole discretion, that Applicant has failed to comply
with any of the terms of the assistance program or grant agreement, or has failed to provide
information or provided inaccurate information on the application. Upon such a finding, the
Board will provide Applicant with notice of the default and a 30-day opportunity to cure before
the award is revoked. The grantee will be required to return TIF assistance funds already
disbursed pursuant to the terms of the grant agreement.
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Northeast Urban Renewal District TIF Assistance
DISCLAIMER: Neither the Board nor the City of Bozeman will be responsible for the planning,
design, or construction proposed by any work conducted as part of the TIF assistance program.
No warrantees or guarantees are expressed or implied by the description of, application for,
award of or participation in the TIF assistance program.
APPLICATION PROCESS AND PROCEDURE
Application for TIF assistance shall be made on the forms provided by the Board and submitted
to the Economic Development Department for review and comment. Deadlines for submittals
shall be as published and posted by the Board. Incomplete forms will be returned to the
applicant with an explanation on additional information as may be required.
Prior to submitting the grant application, the Applicant must have obtained and provide to the
Board written comments on the proposed development from the Conceptual Review Application
through the Community Development Department. The Conceptual Review must provide
adequate detail to receive comments from the Engineering Division on required utility
connections and off-site infrastructure.
For projects seeking TIF assistance for demolition or payment of impact fees, the City of
Bozeman Economic Development Department will review the application and provide a
recommendation to the Board and, if applicable, the Bozeman City Commission.
Application for TIF assistance are reviewed and analyzed using the information provided by the
application. Criteria are provided in the application materials and the applicant should provided
detailed documentation to demonstration adherence with the goals of the program. In addition,
an analysis by a third-party economic consultant will be used to evaluate the application for
creation of new taxable value. The analysis will include a return on investment and estimated
payback period for public assistance and proposed metric for the ratio or private investment to
public assistance. An additional assessment will be completed of the development pro forma in
order to assess the reasonableness of the applicant’s incentive request.
If approved by the Board, or City Commission, a “letter of intent” outlining the specific terms and
conditions of the TIF assistance will be provided to the applicant.
SUBMITTAL INFORMATION
There are two parts to the application. All applicants must complete Part 1. Applicants
requesting TIF assistance above $50,000 must complete and include information identified in
Part 2.
Part 1 – All Applications
Part 2 – Applications requesting funding over $50,000
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Northeast 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.
7
Northeast 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
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Northeast 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
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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.
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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. For the purposes
of this criterion, an affordable housing unit is defined as a unit that requires no more
than 33 percent of 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.
/6
Honor the Unique Character and Vitality of the District
6. Character: The physical design, materials, and massing of the project reflects the
community’s values of durability, flexibility, and simplicity, and add vitality to 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 living wage jobs
/4
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Northeast TIF Assistance Application Part 1 Page 6
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 /42
APPROVAL (For Official Use Only)
Approval Status:
Date Approved:
Date Letter of Award Sent:
Date Certificate of Completion:
Date of Payment Request:
Compatible
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Northeast TIF Assistance Part 2 Page 7
PART 2
FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE
Project Financial Information
In order for the City of Bozeman Economic Development staff 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.
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Memorandum
REPORT TO:Northeast Urban Renewal Board
FROM:Robin Sullivan, Recording Secretary
David Fine, Economic Development Program Manager
SUBJECT:Financial Report on the status of the Northeast Urban Renewal District
Fund.
MEETING DATE:November 2, 2021
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Review the report and ask questions.
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:This report provides a summary of expenditures within the current fiscal
year as compared to the City Commission approved Work Plan and Budget
for Fiscal Year 2022.
UNRESOLVED ISSUES:None at this time.
ALTERNATIVES:n/a
FISCAL EFFECTS:The spending report does not have any fiscal effects.
Attachments:
21-22 work plan update 102121.xlsx
Report compiled on: October 14, 2021
14
FY22 Budget Update 10/21/2021
Revenues:
Estimated Beginning Balance $370,000.00 $569,844.00
FY22 Tax Increment $270,000.00 $38,456.00
Delinquent Increment $31,817.00
State Shared/Entitlement
Interest $1,000.00
Total Estimated Revenues $641,000.00 $640,117.00
Expenditures:
Infrastructure
Front Street - Idato East Aspen Engineering $18,000.00
Front Street - Tamarack to Ida Construction $190,000.00
Pedestrian Bridge/East Aspen Street Engineering
Front Street connector trail $15,000.00
Parking Structure $50,000.00
Subtotal - Infrastructure $273,000.00
Maintenance
Trails/Boulevards Maintenance $5,700.00 $120.00
Subtotal - Maintenance $5,700.00 $120.00
Administration
Staff Support $3,000.00 $375.00
Administrative Services $18,000.00 $2,844.00
Professional Services $10,000.00 $660.00
Bond Repayment $93,000.00
Subtotal Administration $124,000.00 $3,879.00
Reserves
Designated Reserve - Bond $120,900.00
Designated Reserve - Projects $117,400.00
Subtotal Reserves $238,300.00 $0.00
Total Expenditures $641,000.00 $3,999.00
Balance $636,118.00
Northeast Urban Renewal District
2021-2022
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