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HomeMy WebLinkAbout11-15-22 - Downtown Urban Renewal District Board - Agenda & Packet MaterialsA.Call meeting to order Please click the link below to join the webinar: https://us02web.zoom.us/j/85732559501 Or One tap mobile : US: +17193594580,,85732559501# or +12532158782,,85732559501# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 719 359 4580 or +1 253 215 8782 or +1 346 248 7799 or +1 669 444 9171 or +1 669 900 6833 or +1 929 205 6099 or +1 301 715 8592 or +1 309 205 3325 or +1 312 626 6799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 931 3860 or +1 689 278 1000 Webinar ID: 857 3255 9501 International numbers available: https://us02web.zoom.us/u/kcuLS2g6Aq B.Disclosures C.Changes to the Agenda D.Approval of Minutes D.1 Approve October 2022 Minutes(Staley) E.Public Comment Please state your name and place of residence in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. F.FYI/Discussion F.1 November 2022 Finance Report(Staley) THE DOWNTOWN AREA URBAN RENEWAL DISTRICT BOARD OF BOZEMAN, MONTANA DURD AGENDA Tuesday, November 15, 2022 1 F.2 Executive Director's November 2022 Report (Staley) F.3 Downtown Paid Parking and Parking Management Work Session(Veselik) G.Adjournment For more information please contact Ellie Staley, Downtown Bozeman Partnership, ellie@downtownbozeman.org This board generally meets the 3rd Tuesday of the month from 12:00 to 1:00pm Citizen Advisory Board 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 406-582-3232 (TDD 406-582- 2301). In order for this Board to receive all relevant public comment in time for this meeting, please submit via the Commission Comment Page or by emailing agenda@bozeman.net no later than 12:00 PM on the day of the meeting. Public comment may be made in person at the meeting as well. 2 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:Approve October 2022 Minutes MEETING DATE:November 15, 2022 AGENDA ITEM TYPE:Minutes RECOMMENDATION:Approve STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:Minutes from the October 2022 Board meeting UNRESOLVED ISSUES:None ALTERNATIVES:None. FISCAL EFFECTS:None. Attachments: URD Minutes 10-22.pdf Report compiled on: November 9, 2022 3 Downtown Urban Renewal District Board Meeting Minutes October 18, 2022 Attending: Bobby Bear, Cory Lawrence, Tony Renslow, Angie Rutherford, Nicholas Wickes, Nick Zelver, Ellie Staley, Emily Cope Absent: Marley McKenna, Jen Madgic Minutes ACTION: Tony Renslow moved to approve the minutes from the September URD board meeting. Nicholas Wickes seconded the motion. All voted in favor. Discussion Items Paid Parking Update/Discussion and Designation of Board Member for Task Force Ellie provided an overview of the postponement of work sessions #2 on paid parking. Commissioner Cunningham presented the Commissioners and City Manager with the included document just prior to last Tuesday’s Commission meeting. During the “changes to the agenda” the Commissioners agreed to postpone Paid Parking Work Session #2, with the intention of bringing Commissioner Cunningham’s memo to the Downtown Bozeman Partnership to discuss next steps. After meeting with city staff, it was determined that the DBP would take the lead on assembling a task force, working with a facilitator and bringing a report back to the Commission with Commissioner Cunningham's memo providing guidance for the report. It has been agreed upon by the Partnership Advisory Committee, that this is an opportunity to get the thoughts and ideas about Paid Parking together from our downtown group in a collaborative way for the commission to make their decision. Upon review of the memo, the PMC requested the city the following. The timelines, task force members and details of the process are still being confirmed. 1. 90-120 days timeline to rerun to commission for next working session with this report compiled. 2. 1 rep each from BID, URD, DBA boards, 1 DBP staff, 1-2 city staff, 7-9 at large business owners - DURD to determine task force member during board meeting. 3. Work with facilitator and city staff to confirm task force members, establish rules for involvement 4. Work with a facilitator who has civic/community and parking knowledge. Ellie shared the proposal from the facilitator that outlines three dates for four-hour sessions on each day. The board discussed potential task force members for DBP staff to contact to see their availability. The board discussed concern for business and property owner’s availability with short notice and the time commitment of the three four-hour meetings and time to speak to constituents and review materials. The board stated they will contact the city commission to ask again for an extended timeline for the parking work sessions. ACTION: Bobby Bear moved to appoint Cory Lawrence to the Downtown Parking Task Force. 4 Nick Zelver seconded the motion. All voted in favor. Discuss and Recommend Board Member Appointments Ellie provided an overview that the Downtown URD board appointments are on the November 1st City Commission Meeting, including the three appointments to the expiring terms and Chair/Vice-Chair appointments. Ellie Staley shared that Cory Lawrence has expressed interest in the Chair position. At the current moment there was no interest from a current voting member in the Vice-Chair position. Nicholas Wickes has expressed interest in the Vice-Chair position, but he is currently in a non-voting position and would need to be moved into a voting position. Marley McKenna had a conversation with Ellie previously that she would be interested in moving to a non-voting position. Ellie reviewed that the URD board is indeed an advisory board to the city, but the Professional Services Agreement between the Downtown Bozeman Partnership and the City of Bozeman has language referring to ‘DBP Staff’ overseeing the URD and BID that leads to technical questions of how the downtown boards are run differently from the rest of the COB advisory boards. Nicholas Wickes said he would be interested into moving into a voting and Vice-Chair position if two things are clarified including the URD board sets their own agenda and the concern that the board, based on current work plan and priorities, may not directly align with the City Commission’s priorities. Ellie asked if Nicholas Wickes was comfortable reaching out to Greg Sullivan to have a conversation to get answers to these questions, Nicholas said yes if Ellie were able to make an introduction. ACTION: Tony Renslow moved to recommend Nicholas Wickes becomes a voting board member and vice-chair, Cory Lawrence becomes chair, Marley McKenna moves into a non-voting position; contingent upon Nicholas Wickes receiving additional advice that the URD agenda is set by the Downtown URD Chair and Vice-Chair and the URD Board is a quasi-independent board that has independent decision- making abilities. Bobby Bear seconded the motion. All voted in favor. Meeting was adjourned at 1:30 pm 5 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:November 2022 Finance Report MEETING DATE:November 15, 2022 AGENDA ITEM TYPE:Finance RECOMMENDATION:Discuss STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:Ellie will present the November 2022 Finance Report UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None. Attachments: URD Finance Report 1-22.pdf Report compiled on: November 9, 2022 6 Downtown URD January 2022 Finance Report Downtown Urban Renewal District Finance Report Category Approved FY2022 Budget FY2022 YTD recent activity Income Starting Cash Balance 3,295,598$ 3,295,598$ ** Final FY21 numbers to be received by COB finance Income from TIF 335,000$ COB Interlocal Share 1,456,000$ Entitlement Share State of Montana 57,050$ Interest Income 20,000$ Other Income Total Income 5,163,648$ 3,295,598$ Expenses OperationsDBP Management Fee 190,000$ 142,500$ $47,800 DBP Total Operations 190,000$ 142,500$ Infrastructure Improvements Street Furniture and Park Maintenance 25,000$ 33,536$ $29,862 soroptomist Streetscape--new purchases 30,000$ 290$ $822.50 Sunshine Lighting North Rouse Streetscape Project FY Encumbered- Streetlamps (26 qty)85,000$ 78,767$ Phase 1 Construction: Conduit 17,000$ 11,077$ Phase 2 Construction: Lamps 80,000$ 128,344$ North Willson Streetscape Project 75,000$ Streetscape Assistance Grant Program 50,000$ Streetlamp Power Reconfiguration Project Alley Improvements 50,000$ FY20 Encumbered 19,000$ DBIP: Bozeman Creek Improvements 50,000$ DBIP: Wayfinding & Parking Signage 15,000$ Life-Safety Grant Program 50,000$ Fiber Infrastructure 100,000$ Fiber-Broadband Infrastructure--Grants 10,000$ 3,200$ Intersection Cable Anchor Repairs 30,000$ 3,613$ DBA Event Stage 50,000$ Parklet 50,000$ Alternative Transportation Projects 75,000$ Total Improvements 861,000$ 258,827$ Planning City Economic Development Specialist 33,000$ Technical Assistance Grants 50,000$ FY20 & FY21 Encumbered Funds 45,000$ Residential Incentive Program 200,000$ DBIP: Transportation Planning 25,000$ FY21 Encumbered- Part Two--Data, Analysis, Cost Est 91,000$ DBIP: Alley Planning 45,000$ 853$ DBIP: Bozeman Creek Planning 30,000$ DBIP: Soroptomist Park Planning 50,000$ DBIP: Code Amendments 20,000$ 1,648$ DBIP: Design Guidelines 85,000$ DBIP: Downtown Infrastructure & Public Realm Plan 100,000$ DBIP: General Implementation 100,000$ 5,250$ DBIP: Employee Paid Parking Permit System 20,000$ DBIP: Wayfinding Plan & Parking Signage 10,000$ Utility and Infrastructure Improvement 250,000$ Structured Parking Feasibility Analysis 35,000$ 6,788$ 1911.60 SS Structured Parking Informal, Site Plan, Bids 750,000$ Professional Services Term Contract 75,000$ Streetscape Preliminary Engineering 50,000$ Total Planning 2,064,000$ 14,538$ Parking Structure Garage Bond Payment 335,000$ Total Parking Garage Payments 335,000$ -$ Total Expenses 3,450,000$ 415,865$ Balance 1,713,648$ 2,879,733$ URD Finance Report 1-22 7 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Executives Director Downtown Bozeman Partnership SUBJECT:Executive Director's November 2022 Report MEETING DATE:November 15, 2022 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Discuss STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:Ellie will present the monthly report of general program updates and updates to topic relating to downtown. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None. Attachments: DBP Monthly ED Report 11-22.pdf Report compiled on: November 9, 2022 8 Downtown Bozeman Partnership – ED Report November 2022 General Downtown Updates: • DBP Office: We have hired a NEW Operations Manager, Brynn Gestson. She started on October 28 and is getting settled in her role very quickly. • Downtown Maintenance: WE ARE STILL HIRING for a Winter Maintenance employee! Please get the word out! CLICK HERE for the job posting. Any recruitment ideas? Please share. • UTD Update: The HRDC is working to establish an Urban Transportation District. I am on the steering committee and have agreed to be a spokesperson for this effort. It’s a complicated mission to get this established but it is the best option for a successful community transit system moving forward. See more details HERE and, please stay updated on this important issue for our community! • Applications are open for the two vacant BID board seats. More information and the board application can be found here. If you have any questions or are interested in learning more about serving on the BID board, please reach out to emily@downtownbozeman.org. For more info CLICK HERE. Downtown Project Updates: • Paid Parking Task Force Update: DBP staff has been given a revised timeline to provide a report to Paid Parking Work Session #2 scheduled for January 10. The report will be due to the City Commission for review by Jan. 6. The tentative dates for the three 4-hour work sessions are Dec. 6, 7 and 13. Ellie is in the process of confirming attendees, dates times and details. Mark, facilitator is ready when we are. Ellie is hoping for continued commitment form Cory as the URD board representative and if there are other URD board members interested, please email. • Transportation Plan Update: We have an approved task order to move forward with the phase two of the downtown transportation plan with a focus on pedestrian safety and traffic calming on Babcock and Mendenhall. See TO details HERE. We have recently met with Sanderson Stewart and received the initial report with traffic and pedestrian counts and reviewed next steps. The full report is scheduled for completion winter 2022. • North Black Pocket Park: Plans to finish the muddy area to the north of the project site is moving forward. See concept designs HERE. Greenspace has been hired and has poured the cement pads and project borders. Work will continue through the next several weeks while pavers arrive and the weather (hopefully) settles. Work to be completed by early 2023. • Alley Project: A full survey of the designated alley has been conducted and a topo map of the area has been provided to our team for work to begin on the design package and site plan. The PSA with Design 5 was on the Sept. 27 Commission agenda for consent. We met two weeks ago and there is much excitement around this project. All design work is scheduled to be completed through fall/winter 2022/23 with construction work through spring 2023. • Bozeman Creek: A Bozeman Creek art project, planned out of the work sessions with our partners at Mountain Time Arts in 2020, is now being completed. Installation scheduled for spring 2023. See Amended PSA HERE. The group has recently gathered to talk about next steps. A V.2 Bozeman Creek Analysis Plan was discussed with the idea of vetting solutions and viable next steps. • DURD Grant Audit: This project has been consistently pushed back but we are seeing a decline in the need for several of our existing grant programs. We hope to begin this audit in mid-December and hope to work with several BID and URD board members and property owners to get a better idea of how best 9 to utilize these funds that directly support private investment and infrastructure projects as add to our existing tax base. City of Bozeman/Community Updates: • City Commission Meeting – next meeting Tuesday, Nov. 15 at 6pm, 6-month calendar: Calendar | City Of Bozeman • Unified Development Code Edit (fall 2022): The City of Bozeman will be performing a Unified Development Code Overall Update over the next year. See details HERE. 2022 Fall Event Updates: more information at www.downtownbozeman.org • Ladies’ Night: November 17 from 5-10pm • Small Business Saturday: November 26, shopsmall.com • Christmas Stroll: Saturday, Dec. 3 from 4:30-7:30pm • Winter Art Walk: Dec. 7 from 6-8pm Building Projects: • JW Heist has been announced at the name for the new steakhouse located next door to Plonk, same owners. Opening very soon… • Old Cactus records, redevelopment project underway, Bind Interiors slated to lease space when complete. • US Bank Building (104 East Main)—Development project underway, to be restored to original façade. A vinyl wrap on the construction walkway has been installed to highlight the project and show photos of the building’s history. • Village Downtown 92 condos are under construction on the other lot to the South of the existing Lofts building. • East End Flats (240 East Mendenhall) 6-story mixed use project. Development review completed and final site plan approved. • North Central (20 North Tracy)—Mountain View & Medical Arts buildings, phased master site plan development proposing a total of 9 new mixed-use buildings, associated parking, open space and infrastructure. Construction underway. 10 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Mike Veselik, City of Bozeman Parking Manager SUBJECT:Downtown Paid Parking and Parking Management Work Session MEETING DATE:November 15, 2022 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:None. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:Mike Veselik, City of Bozeman Parking Manager, will provide a presentation on parking supply and demand management and the proposed solutions. This presentation will provide the DURD Board with the background needed to participate in the Paid Parking work sessions, resulting in a report that will be presented to the City Commission at their next Paid Parking Work Session. One member of the DURD Board will be designated to participate in these work sessions and remaining board members will continue to provide guidance to Partnership staff and downtown stakeholders on this issue. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None. Attachments: Downtown URD Board Parking Supply and Demand Work Session 2--111522.pdf Report compiled on: November 10, 2022 11 Page 1 of 11 MEMORANDUM REPORT TO: Bozeman Downtown Urban Renewal District Board FROM: Mike Veselik, Economic Development Program Manager RE: Parking Supply and Demand Management Work Session MEETING DATE: November 15, 2022 AGENDA ITEM: Work Session RECOMMENDATION: Discuss the future of parking supply and demand management in the downtown core, specifically concerning on-street paid parking and the construction of a second parking structure. BACKGROUND: On February 1, 2022, Staff presented a proposal to the City Commission relating to the management of parking in Downtown Bozeman. The proposal was a recommendation to pursue a policy of active curb management through paid parking. Staff recommended a seasonal paid parking model. The seasonal model created an on-street paid parking system from May 1-Spetember 30th of each year. The seasonal model rates are $1.75 per hour for on-street parking and $1.00 per hour in the garage. Staff recommended the seasonal model because it assessed charges on the system when demand was at its peak. The main factor driving the summer peak in parking demand is Montana’s robust tourism economy. The model also took into consideration the supply side of the parking equation. Using a seasonal, cost plus model, staff and our consultants concluded the City will raise enough revenue to contribute the remaining $9 million of a $16 million 400 space parking garage. Further, the City has options to finance additional supply including, but not limited to, an expansion of the Bridger Garage or a third parking garage with surplus on-street paid parking revenue. Well managed, on-street paid parking in downtown Bozeman provides staff, the Transportation Advisory Board, and the City Commission with a proven tool to manage a scare resource—parking supply in downtown. Pricing the on-street parking system is basic economics. We have an unbalanced supply and demand equation at the moment. As any business owner or economist would acknowledge, when a good or service is scarce, it is appropriate to raise the price on said good to lower demand. Putting a price on parking creates an incentive to turnover the most 12 Page 2 of 11 valuable spaces for the primary use of customers and visitors and encourages employees and other long-term visitors to park in structures or surface lots, or take an alternative mode of transportation to access downtown while generating the revenue to cover debt service payments to construct new supply. CITY COMMISSION ACTION: After a healthy debate and public comment, the City Commission directed the City Manager to complete a few tasks and conduct some research before the Commission would make a decision on whether or not to pursue on-street, paid parking. Those tasks include: 1. Identify the revenue potential of a year round model 2. Secure Site Control for a Second Garage 3. Establish Parking Benefit Zones 4. Research grants to fund future supply 5. Additional Engagement with the Downtown Community on Paid Parking 6. Research an Employee Parking Program 7. Research Downtown-Midtown-Cannery Circulator—cost and operations Year-round parking revenue: Under the cost plus model, the parking system is projected to generate $2.47 million in revenue, minus an estimated $571,000 for operating costs every year. The City will have $1.9 million to spend on debt service for additional parking supply, bike and pedestrian infrastructure improvements, employee parking programs, and any other policy initiative with a rational nexus to parking. Staff is also exploring a year-round and a seasonal option for on-street paid parking which would retain the two hours free in the garage. Site Control for a Second Garage: After much discussion, the City Manager reached an agreement in principle with the Gallatin County Commission to utilize the existing parking lot behind the Gallatin County Courthouse as a site for a second downtown parking structure. On September 20, 2022, the City Commission approved a Memorandum of Understanding (MOU) regarding the use of the parking lot as a site for a second parking garage owned and operated by the City. In exchange for the land, the City would reserve up to 75 parking spaces for Gallatin County’s use. Additionally, the City would provide free parking validation codes for citizens conducting business at the Gallatin County Courthouse. Parking Benefit Zones: At the previous work session, Deputy Mayor Cunningham raised concerns about the “balloon” nature of a parking system. If City put new parking regulations on the downtown core, then individuals could end up parking in the neighborhoods around the core. Thus, the Commission tasked staff with 13 Page 3 of 11 deciding when and how to activate the Parking Benefit Zone program established by the City Commission via Ordinance 2033 in 2020. In order to establish the program parameters, staff brought Resolution 2022-03 to the Transportation Advisory Board. The Resolution established a standard procedure for the creation of a Parking Benefit Zone surrounding the downtown core and created additional methods for residents to request the zone be activated. Staff is prepared to initiate a Parking Benefit Zone should the data show a need for additional parking regulations in these adjacent neighborhoods. Residents, via a petition, or the Commission may also request that the City Manager create a Parking Benefit Zone. Special Improvement Districts, Grants or Other Funding Mechanisms: Several business owners and other members of the community have suggested staff pursue a Special Improvement District (SID) for the construction of a second downtown parking structure. Staff is not recommending an SID for several reasons. An SID is a one-time, one-project funding source. Further, it does not provide a revenue stream to support operations and maintenance of a garage. Without a revenue source, future generations will have to bear the burden of supporting an unfunded garage when maintenance becomes necessary. As a result of its singular focus as a funding source for a specific project, SIDs are not able to deliver additional public benefits such as reducing single-occupancy vehicle trips and new revenue from tourists and visitors for multi-modal projects provided by on-street paid parking. Similarly, grants are also a one-time funding source for a structure. Second, an SID is a new tax on downtown businesses that raises taxes on businesses and property owners that already pay a higher tax rate than other properties due to their high land value. Rent is a major cost driver for the small businesses that make downtown vibrant. The cost of a new tax, like an SID, would likely be passed along to tenants and increase costs, regardless of customer volume. This could lead to businesses only further increasing costs on consumers. Staff is not recommending imposing a new tax on businesses in the downtown core, since we believe it would be more detrimental to businesses than paid on-street parking. An SID is a tax businesses pay regardless of how their customers reach downtown, or whether those customers are able to find free or cheaper parking off-street. An SID causes businesses to pay for off-street parking, even if their customers do not use that parking; it asks businesses to subsidize and encourage driving, instead of asking drivers to pay the actual cost of driving. With paid on street parking, customers have 14 Page 4 of 11 the option to choose between price, availability, and convenience in where they park, or choose alternative transportation. Third, there is a lack of consensus among the downtown community. In our community engagement sessions in the March and April 2022, participants were split on whether or not to pursue a SID for the downtown community. An SID amounts to a new tax on businesses to be paid every year for about 20 years. Under State Law, City Staff must develop a complex formula taking into account zoning requirements, distance from a parking garage, the size of the parcel assessed, the amount of parking on each parcel, and land value to determine how much each individual property owner would pay. This leads to an archaic, set in stone formula determining whether or not we could build a new parking structure. Whereas, under an on-street paid parking system, higher demand—indicating the need for a additional supply—will generate the revenue required for a new parking structure. On-street paid parking in the downtown core provides staff, the Transportation Advisory Board, and the City Commission with a tool to efficiently fund and manage our parking supply and system without placing a new tax on businesses and properties, an SID does not. On-street paid parking provides the City an avenue to encourage other forms of transportation than single-occupancy vehicle trips, an SID does not. On-street paid parking provides revenue to fund infrastructure supporting alternative modes of transportation, an SID does not. On-street paid parking revenue can subsidize transportation programs for employees working downtown, an SID does not. Finally, the creation of an SID could unnecessarily delay the construction of a new downtown parking structure adding uncertainty and costs. If pursued, staff will determine the boundaries of any new district and create an assessment formula on the downtown business owners while complying with all required public noticing and protest periods. Delays in securing financing for the garage will delay construction. Given the current pace of inflation, rising construction costs, and labor scarcity, delays could yield significant cost increases. Delays in construction also diminish the bonding capacity of the Downtown Urban Renewal District.1 Reduced bonding capacity for the Urban Renewal District only increases the current funding gap for the construction of a second downtown parking. 1 Currently, the Downtown Urban Renewal Plan prohibits the District from issuing new bonds against the remaining Tax Increment. In order to issue new bonds, the City Commission would need to amend via ordinance the Urban Renewal Plan to eliminate this provision. Additionally, the current bond holder would have to agree to the issuance of new debt and remove a no new bonds provision. 15 Page 5 of 11 Whereas, staff has received positive and encouraging feedback from more than one financial institution of the ability to sell revenue bonds in a creative fashion based solely on the on-street paid parking revenue pro forma and the current projections of the Downtown Urban Renewal District’s tax increment financing. This will allow construction of a new downtown parking structure to begin sooner than initially expected. If given the green light by the City Commission, staff remains confident a garage could open by the end of 2025 as promised during the February work session. The other financing option discussed repeatedly during the February Work Session was securing grants from the state or federal governments. Staff met with our grant consultants and staff from our United States Senate offices to determine if any grants are applicable and available. Neither the consultants nor Senate staff could identify a grant program which is typically used to fund parking structures. In fact, many grant programs are moving away from funding parking infrastructure. Rather, more grants appear available for programs to incentivize alternative modes of transportation. The Bridger Park Garage was funded in part through a $4 million grant from the Federal Transit Administration secured through an earmark Senator Max Baucus placed in the American Recovery and Reinvestment Act. The United States Congress has resumed a program for congressionally directed spending, commonly known as earmarks. No member of the Montana Congressional delegation has chosen to submit funding requests under the newly established earmark program. Montana was one of only three states to not receive any funding under this program. Downtown Engagement: In the winter 2021, staff engaged with downtown business owners, employees, and residents regarding parking issues in the downtown core. A key conclusion from the engagement was that staff should pursue policies based on data and keep the community informed of key decisions. For this reason, staff brought a recommendation of downtown, on-street paid parking to efficiently manage increasing demand and create new supply to the City Commission based on occupancy data collected in August 2021. During the February 2022 Work Session, the Commission requested an additional round of public engagement with the downtown community. Staff hosted five additional engagement sessions—two virtual and three in-person. More than 70 individuals representing various segments of the downtown community including residents, employees, and property and business owners participated. Full summaries of the engagement sessions can be found on our Engage BZN webpage. 16 Page 6 of 11 The sessions consisted of a 20-25 minute presentation substantially similar to the one shared with the City Commission on February 1, 2022. Participants asked clarifying questions regarding facts in the presentation. Then, facilitators from the City led the group through a conversation on the following three questions: 1. What benefits and unintended consequences do you see in creating an on- street paid parking environment in downtown Bozeman? 2. What are suggestions for steps to address those unintended consequences? 3. What is the most important issue to address with an employee permit program? (i.e. cost? availability?) Participant opinions ranged from staunchly opposed to the idea to enthusiastic supporters of on-street paid parking. Staff was very pleased with the mix of participants including business owners, residents, employees, university students, and transportation and parking professionals. The discussions led to staff placing a task order on the April 5, 2022 City Commission consent agenda to have the parking consultants research other employee permit parking programs across the country. The summary was shared with all participants in the community engagement and we received no substantive feedback on the summary. Employee Parking: The City Commission raised concerns during the February 2022 Work Session about how an on-street paid parking environment may impact employees, especially those in the service industry. Additionally, across all five community engagement session, participants consistently raised concerns about how on-street paid parking will impact downtown employees. In light of feedback from the community engagement sessions, staff directed the city’s parking consultant to further research employee parking options. They conducted a survey with more than 600 responses and constructed 15 options for an employee parking program. At the end of July 2022, the City held two focus groups with about 20 participants to identify which options generated the most interest from downtown property owners, business owners, and employees. Participants had a difficult time settling on the best policies without certainty about the future of on-street paid parking in downtown Bozeman. Thus, staff decided to pause discussions on employee parking until the Commission determines whether or not to pursue on-street paid parking in downtown Bozeman. A key reason for the pause is uncertainty around the Commission using on-street paid parking revenues to subsidize parking and other transportation modalities for downtown employees. 17 Page 7 of 11 A summary of the focus groups and proposed ideas and survey results are available on Engage BZN. Downtown-Midtown-Cannery Circulator: A popular idea for expansion of transit to serve Downtown is to create a circulator called the Downtown-Midtown-Cannery circulator. The Commission directed the City Manager to have staff research the costs of the circulator and how long it would take to create a circulator program. Streamline staff informed City staff that a circulator route would cost $368,000- $400,000 annually and that routes have already been created for a circulator. For context, the estimate of a bond payment for a parking structure is $642,536 with parking in a better location with no increasing costs of operated a new transit line. Additionally, without paid on-street parking revenue, there is no revenue for the City to fund a circulator. If pursued in earnest, the City will need to enter into a final agreement with the Gallatin County for using part of the Gallatin County Fairgrounds for additional parking. Any agreement would likely involve significant capital investment for the parking lot to support the anticipated increase in use. STAFF RECOMMENDATION: Since the February 2022 work session, staff has undertaken a great amount of effort to consider and discuss the effects on-street paid parking as a curb management tool will have on downtown business owners, downtown employees, visitors to downtown, and residents in the neighborhoods surrounding downtown. Staff remains in conversation with representatives of the neighborhood associations and members of the downtown community on these issues. For several reasons, staff remains steadfast in the conclusion that on-street paid parking is necessary for effective management of downtown parking and remains aligned with broad strategic goals of the Commission. First, in December 2020, the City Commission voted 5-0 (recorded comments and vote on page 11) to approve the City’s Climate Plan. Climate Plan Goal 4.J.7 clearly states, “An abundance of free parking encourages and enables the decision to drive versus walking, biking, carpooling, or using transit.” Not accurately pricing parking undermines all the other efforts the City is taking to reduce greenhouse gas emissions and leave a livable planet for future residents of the City of Bozeman. Second, we have researched extensively what effects paid parking has had on the business health of downtowns. The Victoria Transportation and Parking Institute states the following about the economic impacts of paid parking on businesses and commercial districts: 18 Page 8 of 11 Businesses, particularly retailers, often object to parking pricing out of fear that it will discourage customers. However, experience indicates that customers will pay for parking in areas with attractive businesses and pedestrian environments (Kolozsvari and Shoup 2003). Many of the most successful commercial districts have priced parking, and many commercial centers with abundant unpriced parking are economically unsuccessful. Figure 3 illustrates a positive relationship between parking prices and regional economic productivity. This does not mean that increasing parking prices will always increase economic productivity; they both tend to increase with more compact, urban development. However, efficient parking management, including pricing, help create commercial environments that maximize economic productivity: affordable, compact, multi-modal commercial centers. Critics often claim that parking pricing spoils local economic activity by discouraging customers, but it actually provides both economic benefits and costs. It increases turnover which makes finding a parking space easier, reduces the number of parking spaces required at a location which provides financial savings, and can reduce traffic problems such as congestion. By insuring that a parking space is always available, which facilitates freight deliveries, business trips and errands. The additional revenues can finance improvements such as new street furniture, more cleaning and security, and marketing, or reduced taxes and rents. Negative impacts (reduced customers) are generally local, involving shifts in the location of business activity within a region, but do not reduce total regional economic activity. 19 Page 9 of 11 The introduction of priced parking to a commercial area often appears harmful because negative impacts (loss of existing customers) tend to be concentrated and visible, while economic benefits (new customers attracted by more convenient parking, additional future development, or tax reductions) tend to be dispersed and long-term. A shop owner is more likely to hear older customers say, “I’ll quit visiting your store to avoid parking fees” than to hear new customers say, “I’ll start visiting your store because a parking space is easier to find.”2 Additionally, a case study of Old Pasadena, California’s implementation of on-street paid parking shows how paid parking in Old Pasadena, California contributed to significant reinvestment in downtown Old Pasadena. Further, sales tax revenue increased significantly in Old Pasadena after the implementation of paid parking in 1993 in comparison to Plaza Pasadena, a shopping mall with free parking. In fact, in 2001, the Plaza Pasadena mall was demolished to make way for a development similar to Old Pasadena. Further, staff conducted a relatively exhaustive search of communities that have implemented paid parking, but then decided to remove it. The only example staff found in the last 15-20 years where on-street paid parking was reversed and meters removed is in San Pedro in 2009 in the midst of the Great Recession. However, more meters were installed in other parts of San Pedro. In some places, like Santa Fe, New Mexico, the installation of meters that accept debit and credit cards caused revenue to go up and citations issued to go down. Thus, customers and employees had greater certainty and were not guessing whether or not enforcement would cite them for a fine. The final benefit of on-street paid parking for curb management is that the strategy provides staff with an additional tool to manage the demand side of the supply/demand equation. Time and again, cities have used pricing in their downtown on-street paid parking systems to encourage people to choose other modes of transportation. When walking or biking is free, but parking has a monetary value, neighbors and residents may opt to walk or bike, thus reducing single occupancy vehicle trips—the number one contributor to greenhouse gas emissions. Less vehicle trips downtown equals less need for parking in the downtown core which will allow for a more efficient development pattern on our most valuable real estate in the City. A more efficient 2 https://www.vtpi.org/parkpricing.pdf 20 Page 10 of 11 development pattern could lead to more walkable neighborhoods and more regular public transit, thus even further reducing the single-occupancy vehicle travel. A reduction in single-occupancy vehicle travels leads to reduced greenhouse gas emissions which can helps slow the worst impacts of climate change. Actively managing parking is a truly virtuous cycle which will allow the Citizen Advisory Boards, City Commission, and staff to achieve the goals established in plans such as the City of Bozeman Strategic Plan (Goal 2.2, Page 3; Goal 4.2 Approach C, page 6; Goal 7.5, page 11) Community Plan (Goal DCD-3.6, page 34), Downtown Bozeman Improvement Plan (Goal 3, pages 44-51) Downtown Strategic Parking Management Plan (Strategy 20, page 32; Strategy 21, page 34; Strategy 24, Page 41), and the Climate Plan (Focus Area 4, Action 4.J.7). AN ALTERNATIVE SOLUTION: Up to this point, staff has recommended following the Cost Recovery Plus model for Downtown Bozeman. The Cost Recovery Plus Model is $1.75/hour for on-street parking and $1.00/hour for all surface lots and garages. Staff recommended a seasonal approach during the City Commission meeting in February. At that time, Commissioners expressed an interest in an annual model which is included above. Based on our community engagement efforts and conversations with the Downtown Bozeman Partnership, staff is proposing a third option as well. Staff also recommends the City Commission consider providing two or four hours of free parking the Bridger Park Garage and in any second parking structure. Our parking consultant modified the model to include these free hours. Below is a table showing revenue generated with two or four free hours on a seasonal or annual basis. 21 Page 11 of 11 As one can clearly see, two or four free hours in the garage still generates sufficient revenue to cover the operations of an on-street paid parking environment in downtown Bozeman. Further, the free time in the garage will achieve the goal of directing locals and employees to park in the garage. Thus, spaces are freed up on Main Street and other streets for those less familiar with downtown Bozeman. Staff supports this recommendation as a way to continue to attract locals to downtown to eat, shop, work, and play. TRANSPORTATION ADVISORY BOARD RECOMMENDATION: After receiving the same materials City Commission is receiving, hearing a substantially similar presentation, and receiving public comment from six members of the public, the Transportation Advisory Board unanimously recommended the City Commission direct staff to adopt paid parking as a supply and demand management strategy. CONCLUSION: Bozeman is a unique community with a thriving downtown supported by tourists and locals alike. Staff’s proposal for a seasonal on-street paid parking model allows revenue capture from tourists and those who choose to access downtown when demand is highest and parking supply is scarcest. Staff, the Transportation Advisory Board, and the City Commission can use on-street paid parking revenue to create more infrastructure and services that benefit community members. The only limit on said infrastructure and services is the creativity of staff, the Transportation Advisory Board, and the City Commission. Lots of issues facing the downtown meet the rational nexus standard with parking required to receive surplus revenue—employee parking, additional parking supply, sidewalk and street light improvements, bicycle infrastructure, electric vehicle charging. Therefore, there are opportunities to use the newly captured revenue from individuals choosing to pay for parking. On-street paid parking is a key policy evolution for Bozeman to continue to transition from a large town to a small city. While it is impossible to predict every outcome of this change, staff is confident that the benefits of a more sustainable community, more active transportation management practices, and additional revenue generate by the systems users will better support downtown employees and improve the city’s transportation infrastructure without increasing the tax burden on the downtown business community. 22