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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 Midtown Urban Renewal Board FY23 Work Plan Discussion (David Fine, Economic
Development Manager, Community Housing & Urban Development)
F.FYI/Discussion
G.Adjournment
THE MIDTOWN URBAN RENEWAL BOARD OF BOZEMAN, MONTANA
MURB AGENDA
Thursday, April 7, 2022
For more information please contact David Fine dfine@bozeman.net
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:Midtown Urban Renewal Board
FROM:David Fine, Economic Development Manager, Community Housing & Urban
Development
SUBJECT:Midtown Urban Renewal Board FY23 Work Plan Discussion
MEETING DATE:April 7, 2022
AGENDA ITEM TYPE:Policy Discussion
RECOMMENDATION:Review the attached materials, ask questions, discuss, and provide direction
on future projects that will comprise the FY23 Midtown Urban Renewal
District Work Plan and Budget.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:The Midtown District consists of property along the North 7th Avenue
corridor between Main Street at the south end of the District and the
railroad tracks to the north. The City has taken deliberate steps to foster the
infill and redevelopment of properties along the North 7th Avenue corridor.
In 2006, the City Commission adopted an ordinance to create the North 7th
Avenue Urban Renewal District and adopted the North 7th Avenue Urban
Renewal Plan with a provision for tax increment financing, to be calculated
using a base year of 2006. In 2015, the City adopted a revised Plan including
the expanded urban renewal areas and renamed the district to Midtown.
The Plan also adopted the following goals that set the foundation for the
envisioned development in the District: promote economic development;
improve, maintain, and support innovation in infrastructure; promote
unified human scale urban design; support compatible urban density mixed
land uses.
Redevelopment of underutilized areas, such as the Midtown District, is
challenging compared to traditional "greenfield" development: new
construction on vacant land that typically involves one developer on one
large parcel with minimal constraints such as existing buildings or
challenging road connections. Due to the difficult nature of infill
development, public and private collaboration is critical to achieve results.
Ideally, the public partner will invest in the area and increase property
values and provide desired services. The Midtown Urban Renewal District
Action Plan provides guidelines and actions for the City to implement their
part of the partnership and garner the desired private infill development
within the District.
2
The intent of the Plan is to attract targeted private investment by leveraging
the market potential of the Midtown District, and removing barriers to
development through strategic infrastructure investments and incentives.
This is especially important for the District as the city does not own any
property and is reliant on cooperation and collaboration with property
owners to realize the vision for this area.
One of the most important roles for the city is to construct strategic
infrastructure projects that benefit several property owners and the broader
community. This is especially important for infill development where the
perceived value of these types of properties is that the infrastructure (sewer,
water, roads) are built to current standard as there was once a use on the
property. Proactively determining the status of infrastructure quality, if
upgrades are required and the cost, is necessary to engage interest in
development.
This goal is in accordance with the 2018 Bozeman Strategic Plan 2.2
Infrastructure Investments - Strategically invest in infrastructure as a
mechanism to encourage economic development. 2.2 a) Identify
Commercial/Industrial Infrastructure Needs. Identify sites for new or
redevelopment in areas that lack adequate infrastructure and develop new
financing strategies to fund these investment.
In alignment with City planning documents, such as the Midtown Action Plan
(attached) and Bozeman Strategic Plan, future projects recommend by the
Midtown Urban Renewal Board will inform and ultimately be incorporated
into the FY23 Midtown Work Plan & Budget. Please see the attached FY22
Midtown Work Plan & Budget and FY21 Annual Report for reference.
UNRESOLVED ISSUES:Discussion of the proposed plan and determination of what
recommendation to make.
ALTERNATIVES:The Board may suggest additional items but must identify time expectations
and funding required for recommendation to the City Commission.
FISCAL EFFECTS:None at this time.
Attachments:
MURB Memo 3.3.22.pdf
2017 Midtown URD Action Plan.pdf
Report compiled on: February 28, 2022
3
Memorandum
REPORT TO:Midtown Urban Renewal Board
FROM:David Fine, Economic Development Manager, Community Housing & Urban
Development
SUBJECT:Midtown Urban Renewal Board FY23 Work Plan Discussion
MEETING DATE:March 3, 2022
AGENDA ITEM TYPE:Policy Discussion
RECOMMENDATION:Review the attached materials, ask questions, discuss, and provide direction
on future projects that will comprise the FY23 Midtown Urban Renewal
District Work Plan and Budget.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:The Midtown District consists of property along the North 7th Avenue
corridor between Main Street at the south end of the District and the
railroad tracks to the north. The City has taken deliberate steps to foster the
infill and redevelopment of properties along the North 7th Avenue corridor.
In 2006, the City Commission adopted an ordinance to create the North 7th
Avenue Urban Renewal District and adopted the North 7th Avenue Urban
Renewal Plan with a provision for tax increment financing, to be calculated
using a base year of 2006. In 2015, the City adopted a revised Plan including
the expanded urban renewal areas and renamed the district to Midtown.
The Plan also adopted the following goals that set the foundation for the
envisioned development in the District: promote economic development;
improve, maintain, and support innovation in infrastructure; promote
unified human scale urban design; support compatible urban density mixed
land uses.
Redevelopment of underutilized areas, such as the Midtown District, is
challenging compared to traditional "greenfield" development: new
construction on vacant land that typically involves one developer on one
large parcel with minimal constraints such as existing buildings or
challenging road connections. Due to the difficult nature of infill
development, public and private collaboration is critical to achieve results.
Ideally, the public partner will invest in the area and increase property
values and provide desired services. The Midtown Urban Renewal District
Action Plan provides guidelines and actions for the City to implement their
part of the partnership and garner the desired private infill development
within the District.
1
4
The intent of the Plan is to attract targeted private investment by leveraging
the market potential of the Midtown District, and removing barriers to
development through strategic infrastructure investments and incentives.
This is especially important for the District as the city does not own any
property and is reliant on cooperation and collaboration with property
owners to realize the vision for this area.
One of the most important roles for the city is to construct strategic
infrastructure projects that benefit several property owners and the broader
community. This is especially important for infill development where the
perceived value of these types of properties is that the infrastructure (sewer,
water, roads) are built to current standard as there was once a use on the
property. Proactively determining the status of infrastructure quality, if
upgrades are required and the cost, is necessary to engage interest in
development.
This goal is in accordance with the 2018 Bozeman Strategic Plan 2.2
Infrastructure Investments - Strategically invest in infrastructure as a
mechanism to encourage economic development. 2.2 a) Identify
Commercial/Industrial Infrastructure Needs. Identify sites for new or
redevelopment in areas that lack adequate infrastructure and develop new
financing strategies to fund these investment.
In alignment with City planning documents, such as the Midtown Action Plan
(attached) and Bozeman Strategic Plan, future projects recommend by the
Midtown Urban Renewal Board will inform and ultimately be incorporated
into the FY23 Midtown Work Plan & Budget. Please see the attached FY22
Midtown Work Plan & Budget and FY21 Annual Report for reference.
UNRESOLVED ISSUES:Discussion of the proposed plan and determination of what
recommendation to make.
ALTERNATIVES:The Board may suggest additional items but must identify time expectations
and funding required for recommendation to the City Commission.
FISCAL EFFECTS:None at this time.
Report compiled on: February 28, 2022
2
5
ACTION
PLAN
August 2017
6
Bozeman Urban Renewal Action Plan August 2017
Acknowledgements
Bozeman City Commission
Mayor Carson Taylor
Deputy Mayor Cynthia Andrus
Commissioner Chris Mehl
Commissioner I-Ho Pomeroy
Commissioner Jeff Krauss
Midtown Urban Renewal Board
Commissioner Jeff Krauss, Commission Liaison
Andrew Cetraro
Susan Fraser
Austin Rector
Carl Solvie
Bill Fogarty
Kevin Cook
Scott Hedglin
Josh Palmer
Nick Rodgers
Economic Development Department
Brit Fontenot
David Fine
Prepared By
Leland Consulting Group, Inc.
610 SW Alder Street, Suite 1200
Portland, Oregon 97205
www.lelandconsulting.com
In partnership with Sanderson Stewart, A&E Architects, Rick Williams Consulting, and DHM Design
7
Bozeman Urban Renewal Action Plan August 2017
Table of Contents
Introduction ........................................................................................................................................................ 1
Executive Summary .......................................................................................................................................... 2
Strategic Infrastructure ................................................................................................................................. 2
Incentives ........................................................................................................................................................ 3
Targeted Private Investment ....................................................................................................................... 4
Background ........................................................................................................................................................ 5
Establishment of the Urban Renewal District and Plan ......................................................................... 5
Design and Connectivity Plan for North 7th Avenue Corridor ............................................................. 6
B-2M Zone and New Parking Minimums .................................................................................................... 7
Opportunities and Constraints ........................................................................................................................ 8
Market Trends ................................................................................................................................................. 8
Barriers to Private Development ............................................................................................................... 11
Embrace Infill Development ...................................................................................................................... 12
Midtown District Vision .................................................................................................................................... 14
Why Midtown? ............................................................................................................................................. 15
District Vision ................................................................................................................................................. 15
District Assets................................................................................................................................................. 16
District Opportunities ................................................................................................................................... 17
Future Development ................................................................................................................................... 20
Action Plan Implementation ......................................................................................................................... 26
Strategic Infrastructure ............................................................................................................................... 26
Incentives ...................................................................................................................................................... 27
Targeted Private Investment ..................................................................................................................... 28
Attachment A: Site Concepts ........................................................................................................................ 1
Attachment B: Midtown Project List .............................................................................................................. 2
8
Bozeman Urban Renewal Action Plan August 2017 / 1
Introduction
The City of Bozeman is a university town with a vibrant downtown,
growing industries, and immediate access to mountain and outdoor
activities. It is a magnet for young talent and families, and is
therefore projected to continue to grow at an annual rate of 4.2
percent. Understandably the community wants to be thoughtful
about this growth in order to manage the cost of living, especially for
housing, and retain its small town appeal. At the same time, the City
desires more compact form with higher densities to reduce
congestion and encourage active transportation uses, which reduce
environmental impacts. Focused redevelopment of the Midtown
District, with a deliberate emphasis on new, urban density housing
construction, is an important strategy to achieve these community
goals regarding overall growth.
Redevelopment of underutilized areas, such as the Midtown District,
is challenging compared to traditional “greenfield” development:
new construction on vacant land that typically involves one
developer on one large parcel with minimal constraints such as
existing buildings or challenging road connections. Due to the
difficult nature of infill development, public and private collaboration
is critical to achieve results. Ideally, the public partner will identify
and alleviate barriers and risk, and the private partner will invest in
the area and increase property values and provide desired services.
This Action Plan provides guidelines and actions for the City to
implement their part of the partnership and garner the desired
private infill development within the District.
9
Bozeman Urban Renewal Action Plan August 2017 / 2
Executive Summary
The intent of this Plan is to attract targeted private investment by leveraging the market potential
of the Midtown District, and removing barriers to development through strategic infrastructure
investments and incentives. This is especially important for this District as the city does not own
any property and is reliant on cooperation and collaboration with property owners to realize the
vision for this area. The following information details the type of infrastructure anticipated and
the type of private investment that is desired.
Strategic Infrastructure
One of the most important roles for the city is to construct strategic infrastructure projects that
benefit several property owners and the broader community. This is especially important for infill
development where the perceived value of these types of properties is that the infrastructure
(sewer, water, roads) are built to current standard as there was once a use on the property.
Proactively determining the status of infrastructure quality, if upgrades are required and the cost,
is necessary to engage interest in development.
A detailed list of identified projects within the Midtown District are provided in Attachment B.
The projects are separated into two categories: Regional and Private Development as they
each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a
direct message to developers regarding the level of investment the city is willing to make in this
District.
Regional Investments
The proposed regional investments are projects within the District that benefit the broader
community through the provision of key transportation connections or amenities. These projects
meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2)
improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects
can occur independent of private property owner engagement. While these projects serve the
broader community, they also indirectly incentivize private development with the overall
improvement of the District.
Private Development Investments
The proposed private development infrastructure is identified through different zones of private
property that will benefit from the necessary infrastructure upgrades. There is no prioritization of
the improvements as it is dependent on private party engagement, which can’t be anticipated.
However, by determining these projects in advance, staff can clearly communicate to private
property owners the type and cost of infrastructure that would be built that serves as direct
incentive for them to consider redevelopment of their property.
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or rights to construct a public facility
that may be necessary to make the desired improvements. In all public-private partnerships this
transparent information is necessary to ensure sound community investments.
10
Bozeman Urban Renewal Action Plan August 2017 / 3
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
Investment Timing
The urban renewal statutes allow for the bonding of substantial public projects within 14 years of
establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th
year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission
should be cognizant of this timing when evaluating project investments and in communications
with private developers. To leverage this financing opportunity, staff should determine projects
to consider for bonding by Q1 2019.
Incentives
Infrastructure Projects
Infrastructure projects can often present a significant cost for developers. Infill projects are
especially complex as often a small lot will face outsized regional infrastructure costs due to
“upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can
off-set a significant cost barrier of a regional project that is needed to allow the redevelopment
of an individual lot to move forward. See Attachment B for a detailed list of recommended
projects and costs based on specific site analysis case studies within Midtown and collaboration
with public works.
Off-Set Project Costs
Targeted incentives can close the financial gap in making a project move forward. As discussed
previously, City staff and private developers should work together in a transparent manner to
identify that an incentive addresses a clear “but for” need of support to off-set costs to
encourage the targeted private investment for this area. Future development providing much
needed affordable housing should especially be considered to receive incentives. An allocation
of incentives for SDC off-sets and demolition costs have been included with the list of projects in
Attachment B.
Streamlined Permitting
Streamlined permitting is always cited as a top incentive for developers to attract investment. As
discussed, infill development consists of risks regarding untested markets and uncertainty
regarding infrastructure requirements. Both risks can result in costs not anticipated by a
developer when initially pursuing a project. City staff can provide critical support in removing
these uncertainties by providing transparent information as early as possible regarding
infrastructure needs, as well as unified direction regarding desired building design and density.
Creating a “Midtown team” of staff from various departments provides a consistent group of
staff that comprehensively understands the infrastructure, transportation and building design
issues in the area. Such a team can serve as a powerful resource to proactively achieve the
desired development in collaboration with the developer, and sends a clear signal that this
District is a priority to the community.
11
Bozeman Urban Renewal Action Plan August 2017 / 4
Targeted Private Investment
The overall objective of the Midtown Urban Renewal District is to create a more vibrant place
with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals
of the most recently adopted Urban Renewal Plan include:
• Promote Economic Development
• Improve Multimodal Transportation
• Improve, Maintain, and Support Innovation in Infrastructure
• Promote Unified, Human Scale Urban Design
• Support Compatible Urban Density Mixed Land Uses
To achieve these goals, targeted future development should include the following elements:
• Infill. The intent of urban renewal is to remove blight to improve an area for the entire
community benefit. Remodeling of existing structures or infill of underutilized lots is the priority
of this Plan. As discussed, infill development is more challenging than vacant greenfield
development and warrants focused investment of staff time and resources.
• Increased building density. Increased building density increases the number of people in the
District, which helps create the desired active pedestrian environment. More density of
buildings grouped together in districts is especially desired to encourage pedestrians to
explore adjacent buildings. Buildings that are separated by large parking area or vacant lots
will impede pedestrian movement.
• Encourages multimodal transportation. New projects should provide amenities such as
adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the
Urban Renewal District should invest in infrastructure projects such as bike lanes and signals
or covered bus stops to make alternative transportation options visible, safe, and desirable.
• Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented
environment the District must consist of uses that are a frequent destination by residents.
Retail amenities that are experience based such as restaurants or ice creams shops are
desired because they generate activity and are more resilient to emerging ecommerce
trends. Such amenities will also attract more housing investment.
• Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a
specific use that is desired. The Midtown District zoning is intended to accommodate more
dense housing projects with potential access to retail amenities nearby.
12
Bozeman Urban Renewal Action Plan August 2017 / 5
Background
The Midtown District consists of property along the North 7th Avenue corridor between Main
Street at the south end of the District and the railroad tracks to the north. The City has taken
deliberate steps to foster the infill and redevelopment of properties along the North 7th Avenue
corridor. The current Action Plan builds off this prior work to further focus City efforts to continue
to realize investment in the District.
Establishment
of the Urban
Renewal District
and Plan
In November 2006, City
Commission adopted an
ordinance to create the North
7th Avenue Urban Renewal
District and adopted the North
7th Avenue Urban Renewal
District Plan with a provision for
tax increment financing, to be
calculated using a base year
of 2006. In November 2015,
the City adopted a revised
Urban Renewal Plan including
the expanded urban renewal
areas and renamed the
district to Midtown. The Plan
also adopted the following
goals that set the foundation
for the envisioned
development in the District:
• Promote Economic
Development
• Improve Multimodal
Transportation
• Improve, Maintain,
and Support
Innovation in
Infrastructure
• Promote Unified,
Human Scale Urban
Design
• Support Compatible
Urban Density Mixed
Land Uses
13
Bozeman Urban Renewal Action Plan August 2017 / 6
Design and Connectivity Plan for North 7th Avenue Corridor
The Connectivity Plan
adopted in 2006
defines specific
gateway treatments
and streetscape
improvements to
balance the needs of
pedestrians, bicyclists,
and automobile users
along North 7th
Avenue. This work has
largely been
implemented
between Oak and
Durston with improved
or new sidewalks and
distinct streetlights that
provide an identifying
definition to the
District.
The remaining section
of North 7th Avenue
between Durston Road
and Main Street will also
include enhanced
paving and design as
shown in the image at
right. This streetscape
defines the anticipated
modern design of the
corridor which is distinct
from the more historic
feel of the downtown
district. The low-
maintenance
hardscape design is
appropriate for winter
months to
accommodate snow
removal while keeping
the streetscape inviting
during the warmer
months.
Future streetscape improvements south of Durston Road. The modern paving
and furniture reflect the mid-century design of the original development along
the corridor.
Completed streetscape improvements north of Durston Road. The blue
streetlights reflect ties to Montana State University.
14
Bozeman Urban Renewal Action Plan August 2017 / 7
B-2M Zone and New Parking Minimums
The City created the B-2M zoning designation during the first phase of the update of the Unified
Development Code (UDC) in the spring 2016. The previous B-2 zoning did not encourage the
redevelopment of the Midtown corridor in the manner envisioned in the area’s adopted
neighborhood plan, the Design and Connectivity Plan for the North 7th corridor (2006). This plan
specifically called for mixed-use development with “commercial services on the main level
fronting the corridor, with residential uses above and behind.” The previous B-2 zoning contained
yard and setback provisions that made the development of buildings fronting the street difficult,
especially given the shallow lots along the corridor.
The new B-2M code allows new buildings to be built near the street, encourages ground floor
commercial, and requires that parking occur on the side or the rear of structures. The goal is to
enhance the pedestrian experience along the corridor by reducing the amount of parking in
front of and around buildings. These changes were consistent with two goals of the 2015
Midtown Urban Renewal Plan included promoting “Human Scale Urban Design” and supporting
“Urban Density Mixed Land Uses.”
The City Commission will soon consider reduced parking minimums for the B-2M zone that
remove a barrier to development and foster the envisioned development form throughout the
District.
15
Bozeman Urban Renewal Action Plan August 2017 / 8
Opportunities and Constraints
The Midtown District is ripe for redevelopment as identified in the market trends, and is why this
Action Plan was created. While the trends bode well for Midtown, there are current barriers that
can be addressed to incentivize new private investment. Finally, it should be recognized that infill
development is challenging and must be approached differently than traditional greenfield
development in order to achieve the goal of redevelopment throughout the District.
Market Trends
There are several market trends driving infill development across the country. These trends,
outlined below, suggest there is a strong opportunity for development within the Midtown
District.
Walkability
Current market trends indicate that people of
all ages desire access to an urban lifestyle
with housing, restaurants, entertainment and
retail within pedestrian proximity of each other.
This urban lifestyle does not mean that an entire
community must conform to urban densities.
What is important is that some element of an
urban lifestyle through a healthy Main Street,
traditional downtown, or denser town centers in
suburbs is provided.
This type of urban lifestyle is often measured by
developers using a “walk score” that analyzes
population density and road metrics such as
block length and intersection density, and
access to amenities to summarize pedestrian
friendliness. As indicated below, the Midtown
District is more pedestrian friendly than many
parts of Bozeman and can currently cite Walk
Scores of 91 at its southern end and 51 at its
northern end. Considering the limited amenities, such as restaurants, grocery stores and retail,
this relatively strong score is likely based on the existing block configurations adjacent to the
North 7th corridor. This suggests that with targeted investment of housing and amenities, the
Midtown District is ripe for redevelopment into the type of environment desired by the market.
Commute Patterns
In addition to this desired urban lifestyle, people are wanting a shorter commute and often
choose to live and work in the same area if possible. Emphasizing this trend is the preference of
many Millennials to not drive if they don’t have to. As reported in Urban Land Institute (ULI)
Emerging Trends 2016, miles traveled by car for those people 34 years old or younger are down
23 percent nationally. Locally, the average miles travelled by any mode – walking, driving,
biking, or taking transit – is the lowest for Millennials.
Figure 1. Walk Score® Map
Source: Walk Score®
16
Bozeman Urban Renewal Action Plan August 2017 / 9
Bozeman commute patterns reflect this market trend. Table 1 shows there is an increase of
employment and residents within the city between years 2010 and 2014. What is remarkable is
the minimal increase in people commuting into Bozeman for a job and living outside the city.
Instead there is an increase in people living and working in Bozeman, as well as the number of
people living in Bozeman but working outside the city. What this suggests is that the workforce
prefers to live in Bozeman. Therefore, if an employer locates a business within Bozeman they
have a competitive advantage in providing a desired location that reduces commute times
and congestion and more access to local sector businesses. This is an opportunity for future
development within the Midtown District.
Table 1. City of Bozeman Commute Patterns
2010 2014 Percentage
Change
Employment in City 24,384 27,317 11%
Employed Individuals Living in City 13,737 18,266 25%
Commute into City for Employment and Live Outside 16,370 16,637 2%
Live and Work in City 8,014 10,680 25%
Live in City but Leave for Employment 5,723 7,585 25%
Source: U.S. Census LEHD, Leland Consulting Group.
Affordable Lifestyle (Housing and Transportation)
Demand for housing at affordable prices will continue to be a significant issue for the City of
Bozeman. More housing, with a range of options, must be provided. In addition, the City can
provide the crucial infrastructure to foster affordable lifestyle (not just affordable housing)
through active transportation investments. With a focused effort to promote infill housing,
employment, and retail amenities and services along corridors, individuals are less compelled to
own an automobile, which translates into $8,5601 in personal annual savings. The Midtown District
has the potential infrastructure network and site locations to accommodate this type of
development which would address this significant market demand for affordable housing.
1 American Automobile Association, June 2016.
17
Bozeman Urban Renewal Action Plan August 2017 / 10
Student Housing
The National Center for Education Statistics predicts college enrollment in the U.S. will reach 19.8
million students by 2025, an increase of 14 percent from its 2014 enrollment of 17.3 million.
Montana State University (MSU) reflects this trend through their historic growth that is projected to
continue.
Figure 2. Montana State University Student Headcount
Source: MSU, Leland Consulting Group.
Based on this growth, “it would be pretty hard to overbuild in most markets, there is such strong
demand,” says Nat Kunes, vice president of product management at AppFolio Inc., a provider
of property management software. “In most markets you could double the amount and not
overbuild.”2 What investors find attractive in student housing are the returns relative to
conventional apartments because the occupancy rates run higher.
2 National Real Estate Investor, Demand for Student Housing Looks Strong for 2017, November 21, 2016.
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201618
Bozeman Urban Renewal Action Plan August 2017 / 11
The Midtown District is well positioned to meet the demand of this student housing. As indicated
in Figure 3, sites within the Midtown District are immediately adjacent to 8th Avenue, which is the
main bike corridor to
MSU. Furthermore, the
sites are not that much
further than the location
of new student housing
to the south of MSU,
with the distinct
advantage of being
much closer to
amenities in downtown
or the Cannery District.
Barriers to
Private
Development
While there have been
plans in place and
improvements made to
encourage
development within the
area, results have been
limited. Areas such as
Midtown often do not
receive private
development interest
due to market and
physical barriers that
must be overcome.
Specific barriers
pertaining to the
Midtown District include:
Market barriers:
• Unknown public infrastructure requirements and uncertain costs
• Current market leases and rents within District are not shown to align with costs for new
construction
• Minimum parking code requirements that exceed actual demand and need
• Absentee or disengaged property owners offer limited sites for redevelopment
Physical barriers:
• The policies and approach of the Montana Department of Transportation impede the
construction of high-quality, human-scale urban design features for the North 7th corridor
• Poor multimodal connectivity
• Lack of new mixed-use development, especially residential, to generate activity
Source: Leland Consulting Group
Figure 3. Student Housing Location Opportunity
19
Bozeman Urban Renewal Action Plan August 2017 / 12
• Dangerous pedestrian intersections
• No unifying theme as a gateway to city
Embrace Infill Development
Communities across the country over the past few decades have traditionally grown through
“greenfield” development: new construction on vacant land. This type of development typically
involves one developer with minimal significant development constraints such as existing
buildings, challenging road connections, or potential site contamination. Development of
vacant land with minimal encumbrances has allowed for new growth to occur in a relatively
straight-forward manner with less risk, and why it has typically been the preferred form of
development.
This development pattern is changing due to growth trends that are pulling residents and
employees back toward urban centers, and communities that desire a more resilient
development form that thoughtfully expands utility services. While this repurposing of
underutilized land benefits a community with an improved tax base and modern development
patterns, it is extremely challenging to actualize due to the nature of infill development in
contrast to greenfield development. City staff should embrace the following mindset to foster
infill development.
Build Partnerships
Relationships and trust are the key ingredient to realizing infill development. Fortunately,
Bozeman staff embraces this philosophy. Direct outreach (not flyers or emails) with property
owners, developers, and architects to foster connections, opportunities, and strategic
investments is important.
Build Infrastructure
In building partnerships, City staff can hone in on key infrastructure improvements that are
impeding development. This is especially important for infill development where the perceived
value of these types of properties is that the infrastructure (sewer, water, roads) are built to
current standard as there was once a use on the property. Proactively determining the status of
infrastructure quality, if upgrades are required and the cost, is necessary to engage interest in
development. Building this public infrastructure that will benefit the developer as well as
surrounding properties is extremely valuable to developers.
Make Strategic Investments
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or easements that may be necessary to
make the desired improvements. In all public-private partnerships this transparent information is
necessary to ensure sound community investments.
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
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Bozeman Urban Renewal Action Plan August 2017 / 13
Have Patience
The community needs to understand that development is a risky endeavor. The term “catalyst”
development is rarely heard by a developer as an opportunity, but instead as the first project
going into an untested market. Developers must make a return on investment (ROI) on a project,
otherwise there is no reason to proceed.
Redevelopment of existing buildings is always the first form of investment in an area such as
Midtown because it has the most minimal risk to generate an ROI. Once these development
pioneers begin to create energy and increased awareness of opportunity, additional investment
will occur. Due to the improved environment and demand, eventually tenants will be willing to
pay the necessary rents for residential and commercial spaces that will produce enough
revenue for a developer to build new construction.
In addition, the type of construction will vary in cost. Early phases of two to three-story buildings
and adaptive reuse is typical for entry market development. Eventually mid-rise projects of five-
story with commercial on the ground floor will emerge. Finally, in more urban environments, high-
rise construction will be built with proven rents and adequate amenity and transportation
infrastructure to off-set the need to provide parking and off-set costs. Figure 4 shows how this
development phasing emerged in Portland, Oregon.
Figure 4. Phasing of Infill Development: Pearl District, Portland, Oregon
Source: Leland Consulting Group
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Bozeman Urban Renewal Action Plan August 2017 / 14
Midtown District Vision
The Midtown District surrounds North 7th Avenue: a post-WWII auto-oriented arterial road under
the jurisdiction of Montana DOT. The District is in the northeast portion of the city in between
Interstate 90 and Main
Street. North 7th Avenue
originally served as the
northern gateway into the
city and is home to some
mid-century motels that
lined the corridor for tourists.
Because of North 7th
Avenue’s classification as a
highway, it is a wider
roadway that is intended to
facilitate automobile
movement. The intent of
the Midtown District vision is
to leverage the current
design as an asset that will
accommodate the scale of
higher building densities. In
addition, the roadway
should remain a more auto-
oriented facility with
parallel parking that
accommodates pedestrian
uses with wider sidewalks
and key crossings with
“bump-outs.” Bike lanes on
parallel routes such as 8th
and 5th Avenues will be
more attractive to the
biking community and
remove conflicts between
auto and bike traffic.
Figure 5. Midtown District
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Bozeman Urban Renewal Action Plan August 2017 / 15
Why Midtown?
The southern end of the Midtown District intersects with Main Street, which serves the traditional
downtown core of the city. The Main Street area is highly desirable for housing, hotel, and
commercial activity and is reaching peak redevelopment capacity. As such, growth
opportunities and demand are spreading toward the Midtown District, especially at the southern
end of the District. At the same time, the Midtown District is surrounded by an established and
historic neighborhood with excellent street connectivity and walk score that ties into North 7th
Avenue.
Beyond the positive surrounding
neighborhoods and commercial
area impacts, the Midtown District
has a distinct character that should
be embraced and attributes that
make it a unique place for Bozeman
residents. The following local assets
should be recognized and
incorporated as development
occurs to make Midtown a defined
area with a cohesive character that
builds upon Bozeman genuine
brand.
Investors are wisely seizing this
authentic quality and adapting
existing uses into modern amenities
that are highly desired and provide
significant activity and energy along
the corridor. Rainbow Hotel
developer Dean Folkvord
understands that “one thing
happens at a time, and it might take
10 years, but the investment is going
to happen on North Seventh”.3
District Vision
The Midtown District embraces its
past while it hosts new opportunities.
It is a hub for entertainment, business,
amenities and residents wanting close connections to MSU and downtown. Midtown is an
authentic district for active and engaged Bozeman community members.
3 Bozeman Daily Chronicle, Rainbow Motel changes hands, set for revamp, August 2016.
Rainbow Hotel currently under renovation and scheduled
for completion in Winter 2017.
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Bozeman Urban Renewal Action Plan August 2017 / 16
District Assets
The following assets define the Midtown District and shape the opportunities for future
development.
Authentic
Midtown has a unique mid-century
heritage with community icons such as
Haufbrau, Rainbow Hotel, and the Lewis
and Clark Hotel that give the District
distinct character.
Iconic Signage
Walkable
Midtown is surrounded by urban
neighborhoods with tree lined streets that
invite residents to walk and bike to the
District. New sidewalks on North 7th Avenue
will encourage activity on the street.
West Lamme Street
Dynamic
Midtown is home to the BMX Park and
quick access to Story Mill Trail. Residents
within Midtown don’t drive to recreation
spots, they bike there.
Alter Cycle
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Bozeman Urban Renewal Action Plan August 2017 / 17
Community
Whittier Elementary School is in the heart of
Midtown and connects the District to
surrounding neighborhoods.
Whittier School Classroom
Local Gathering Place
Aspen Street is an emerging entertainment
district that provides an accessible
alternative and alleviates peak demand
pressure on downtown. Connecting Aspen
Street, the BMX Park and the Fairgrounds
with targeted improvements creates an
entertainment destination for the
community.
BMX Park
District Opportunities
Amenities and Sites
The Midtown District is poised as a place for families to gather, business to emerge, and young
professionals and students to live. As shown in the Opportunities Map there are series of
upcoming investments that will enhance connectivity, invite pedestrian activity, and make
Midtown the place for locals to gather. The potential development sites identified on the map
consist reflect interest property owners willing to explore development opportunities. The phasing
is only based on level of interest and is not intended to prescribe how development will occur.
See Attachment A for specific site opportunities and preliminary market assessments for private
investment.
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Bozeman Urban Renewal Action Plan August 2017 / 18
Figure 6. Midtown Opportunities Map
Source: Leland Consulting Group
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Bozeman Urban Renewal Action Plan August 2017 / 19
Safe Connections
In order to realize the envisioned pedestrian activity between surrounding neighborhood and
emerging amenities within the Midtown District, safe pedestrian connections must be built. By
investing in new sidewalks to complete connections and improving the safety at key
intersections this will be achieved. The Bozeman school district has identified where these
improvements need to occur, and are included in the list of projects recommended for funding
in the Action Plan.
Figure 7.Whittier School Walking Map
Source: Alta Planning and Design
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Bozeman Urban Renewal Action Plan August 2017 / 20
Future Development
As investment in the Midtown District occurs, it is anticipated that it will manifest in more modern
design as opposed to the more historic nature of the downtown district. Additionally, the wider
width of North 7th Avenue will accommodate larger scale buildings and make the pedestrian
experience along the corridor more inviting. Images of anticipated building design and form are
provided below.
Building Design
North 7th Avenue is a classic post-WW II corridor designed for the automobile and hosts mid-
century architecture and signage reflecting that era. It is anticipated that the Midtown corridor
will continue to embrace this history with a more modern design as represented in the following
renderings.
Rainbow Motel: Remodel, Love Schack Architecture
Gallatin Valley Furniture: Remodel, Bechtle Architects
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Bozeman Urban Renewal Action Plan August 2017 / 21
City Brew: New Construction, A&E Architects
SOBO Lofts: New Construction, Intrinsik Architecture
Urbaine Home: Adaptive reuse
of former auto-body shop
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Bozeman Urban Renewal Action Plan August 2017 / 22
Building Form
For purposes of conveying the potential building from along North 7th Avenue, the following
images, prepared by DHM Design, are focused between Durston Road and Main Street where
the enhanced streetscape will occur. Proposed developments are located on sites where
property owners have conveyed an interest in future development. As described earlier in the
Plan, early development will likely consist of renovations or lower density new construction. All
proposed development is designed to maximum densities for purposes of understanding the full
scale of development that could occur in the District. This maximum build-out is the desired
vision to meet housing and transportation goals, as well as creating an active and vibrant
District.
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Bozeman Urban Renewal Action Plan August 2017 / 23
Existing Conditions
Maximum Density Build-Out of Corridor
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Bozeman Urban Renewal Action Plan August 2017 / 24
Maximum Density (four to five story + renovation) with location of perspective for following image
North 7th Avenue looking north, Villard Street is in the next intersection
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Bozeman Urban Renewal Action Plan August 2017 / 25
Intersection of Main Street and North 7th Avenue looking north
Bozeman 7th Avenue Development Study
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Bozeman Urban Renewal Action Plan August 2017 / 26
Action Plan Implementation
The intent of this Plan is to attract targeted private investment by leveraging the market potential
of the Midtown District, and removing barriers to development through strategic infrastructure
investments and incentives. This is especially important for this District as the city does not own
any property and is reliant on cooperation and collaboration with property owners to realize the
vision for this area. The following information details the type of infrastructure anticipated and
the type of private investment that is desired.
Strategic Infrastructure
One of the most important roles for the city is to construct strategic infrastructure projects that
benefit several property owners and the broader community. This is especially important for infill
development where the perceived value of these types of properties is that the infrastructure
(sewer, water, roads) are built to current standard as there was once a use on the property.
Proactively determining the status of infrastructure quality, if upgrades are required and the cost,
is necessary to engage interest in development.
A detailed list of identified projects within the Midtown District are provided in Attachment B.
The projects are separated into two categories: Regional and Private Development as they
each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a
direct message to developers regarding the level of investment the city is willing to make in this
District.
Regional Investments
The proposed regional investments are projects within the District that benefit the broader
community through the provision of key transportation connections or amenities. These projects
meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2)
improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects
can occur independent of private property owner engagement. While these projects serve the
broader community, they also indirectly incentivize private development with the overall
improvement of the District.
Private Development Investments
The proposed private development infrastructure is identified through different zones of private
property that will benefit from the necessary infrastructure upgrades. There is no prioritization of
the improvements as it is dependent on private party engagement, which can’t be anticipated.
However, by determining these projects in advance, staff can clearly communicate to private
property owners the type and cost of infrastructure that would be built that serves as direct
incentive for them to consider redevelopment of their property.
The City should only make the significant infrastructure investments when it is clear that the
developer can’t reasonably construct the project without support from the City. This is often
referred to as a “but for” argument based on transparent financial information reflecting costs
and revenues from the project. At the same time, through this transparent partnership, the City
can work with the property owner to obtain right-of-way or rights to construct a public facility
that may be necessary to make the desired improvements. In all public-private partnerships this
transparent information is necessary to ensure sound community investments.
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Bozeman Urban Renewal Action Plan August 2017 / 27
In addition, the infrastructure investments should only occur when the private investment is as
certain as possible. If the City builds the infrastructure prior to private investment, the
infrastructure upgrades are no longer perceived by the private party as an “incentive” but as
the basic city services that understandably were presumed to be in place.
Investment Timing
The urban renewal statutes allow for the bonding of substantial public projects within 14 years of
establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th
year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission
should be cognizant of this timing when evaluating project investments and in communications
with private developers. In order to leverage this financing opportunity, staff should determine
projects to consider for bonding by Q1 2019.
Incentives
Infrastructure Projects
Infrastructure projects can often present a significant cost for developers. Infill projects are
especially complex as often a small lot will face outsized regional infrastructure costs due to
“upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can
off-set a significant cost barrier of a regional project that is needed to allow the redevelopment
of an individual lot to move forward. See Attachment B for a detailed list of recommended
projects and costs based on specific site analysis case studies within Midtown and collaboration
with public works.
Off-Set Project Costs
Targeted incentives can close the financial gap in making a project move forward. As discussed
previously, City staff and private developers should work together in a transparent manner to
identify that an incentive addresses a clear “but for” need of support to off-set costs to
encourage the targeted private investment for this area. Future development providing much
needed affordable housing should especially be considered to receive incentives. An allocation
of incentives for SDC off-sets and demolition costs have been included with the list of projects in
Attachment B.
Streamlined Permitting
Streamlined permitting is always cited as a top incentive for developers to attract investment. As
discussed, infill development consists of risks regarding untested markets and uncertainty
regarding infrastructure requirements. Both risks can result in costs not anticipated by a
developer when initially pursuing a project. City staff can provide critical support in removing
these uncertainties by providing transparent information as early as possible regarding
infrastructure needs, as well as unified direction regarding desired building design and density.
Creating a “Midtown team” of staff from various departments provides a consistent group of
staff that comprehensively understands the infrastructure, transportation and building design
issues in the area. Such a team can serve as a powerful resource to proactively achieve the
desired development in collaboration with the developer, and sends a clear signal that this
District is a priority to the community.
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Bozeman Urban Renewal Action Plan August 2017 / 28
Targeted Private Investment
The overall objective of the Midtown Urban Renewal District is to create a more vibrant place
with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals
of the most recent Urban Renewal Plan which include:
• Promote Economic Development
• Improve Multimodal Transportation
• Improve, Maintain, and Support Innovation in Infrastructure
• Promote Unified, Human Scale Urban Design
• Support Compatible Urban Density Mixed Land Uses
To achieve these goals, targeted future development should include the following elements:
• Infill. The intent of urban renewal is to remove blight to improve an area for the entire
community benefit. Remodeling of existing structures or infill of underutilized lots is the priority
of this Plan. As discussed, infill development is more challenging than vacant greenfield
development and warrants focused investment of staff time and resources.
• Increased building density. Increased building density increases the number of people in the
District, which helps create the desired active pedestrian environment. More density of
buildings grouped together in districts is especially desired to encourage pedestrians to
explore adjacent buildings. Buildings that are separated by large parking area or vacant lots
will impede pedestrian movement.
• Encourages multimodal transportation. New projects should provide amenities such as
adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the
Urban Renewal District should invest in infrastructure projects such as bike lanes and signals
or covered bus stops to make alternative transportation options visible, safe, and desirable.
• Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented
environment the District must consist of uses that are a frequent destination by residents.
Retail amenities that are experience based such as restaurants or ice creams shops are
desired because they generate activity and are more resilient to emerging ecommerce
trends. Such amenities will also attract more housing investment.
• Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a
specific use that is desired. The Midtown District zoning is intended to accommodate more
dense housing projects with potential access to retail amenities nearby.
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Bozeman Urban Renewal Action Plan August 2017
Attachment A: Site Concepts
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Bozeman Urban Renewal Action Plan August 2017
Attachment B: Midtown Project List
38