HomeMy WebLinkAbout04-05-23 EVB Agenda & Packet MaterialsA.Call to Order - 6:00 PM
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B.Disclosures
C.Changes to the Agenda
D.Public Service Announcements
E.Approval of Minutes
E.1 Approval of March 1, 2023 Economic Vitality Board Meeting Minutes (DiTommaso)
F.Consent Items
G.Public Comments
This is the time to comment on any matter falling within the scope of the Economic Vitality Board.
There will also be time in conjunction with each agenda item for public comment relating to that
THE ECONOMIC VITALITY BOARD OF BOZEMAN, MONTANA
EVB AGENDA
Wednesday, April 5, 2023
General information about the Economic Vitality Board is available in our Laserfiche repository.
If you are interested in commenting in writing on items on the agenda please send an email to
agenda@bozeman.net or by visiting the Public Comment Page prior to 12:00pm on the day of the
meeting.
Public comments will also be accepted in-person and through Video Conference during the appropriate
agenda items.
As always, the meeting will be streamed through the Commission's video page and available in the
City on cable channel 190.
For more information please contact Brit Fontenot, bfontenot@bozeman.net
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item but you may only speak once per topic. Please note, the Board cannot take action on any
item which does not appear on the agenda. All persons addressing the Board shall speak in a civil
and courteous manner and members of the audience shall be respectful of others. Please state
your name and place of residence in an audible tone of voice for the record and limit your
comments to three minutes.
General public comments to the Board can be found in their Laserfiche repository folder.
H.Special Presentations
I.Action Items
J.FYI/Discussion
J.1 Belonging in Bozeman - Equity & Inclusion Plan Update (Hess)
J.2 Community Housing Impact Fund Discussion(Fine)
J.3 2023 Legislative Update(DiTommaso)
J.4 Update on the Economic Vitality Strategy
K.Adjournment
This board generally meets the first Wednesday of the month from 6:00 pm to 8:00 pm.
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).
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Memorandum
REPORT TO:Economic Vitality Board
FROM:Jesse DiTommaso, Economic Development Specialist
Brit Fontenot, Economic Development Director
SUBJECT:Approval of March 1, 2023 Economic Vitality Board Meeting Minutes
MEETING DATE:April 5, 2023
AGENDA ITEM TYPE:Minutes
RECOMMENDATION:Approve the March 1, 2023 Economic Vitality Board Meeting Minutes.
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:In accordance with Commission Resolution 5323 and the City of Bozeman's
Citizen Advisory Board Manual, all boards must have minutes taken and
approved. Prepared minutes will be provided for approval by the board at
the next regularly scheduled meeting. Staff will make any corrections
identified to the minutes before submitting to the City Clerk's Office.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As recommended by the board.
FISCAL EFFECTS:None.
Attachments:
030123 DRAFT EV Board Meeting Minutes.pdf
Report compiled on: March 29, 2023
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Bozeman Economic Vitality Board Meeting Minutes, March 1, 2023
Page 1 of 2
THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA
MINUTES
March 1, 2023
A) 00:04:53 Call to Order - 6:00 PM
B) 00:05:36 Disclosures
• There were no disclosures.
C) 00:05:41 Changes to the Agenda
• There were no changes to the agenda.
D) 00:05:49 Approval of Minutes
D.1 Approval of February 1, 2023 Economic Vitality Board Meeting Minutes
2123 EVB Minutes.docx
00:05:58 Motion to approve D) Approval of Minutes
John Carey: Motion
Danielle Rogers: 2nd
00:06:04 Vote on the Motion to approve D) Approval of Minutes The Motion carried 4 - 0.
Approve:
Sara Savage
Danielle Rogers
John Carey
Katharine Osterloth
Disapprove:
None
E) 00:06:30 Public Comments
• There were no public comments.
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Bozeman Economic Vitality Board Meeting Minutes, March 1, 2023
Page 2 of 2
F) 00:07:15 FYI/Discussion
F.1 00:07:19 Belonging in Bozeman Equity & Inclusion Plan Update
BZN_Community Engagement Plan.pdf
Community Liaison Position Description final.pdf
00:07:42 Community Engagement Coordinator Dani Hess provided the presentation on Belonging
in Bozeman.
00:29:48 Questions of Staff
The board requested monthly updates and two work sessions during the plan development.
01:11:14 Discussion about board members and the next board meeting and updates on projects
previously seen.
G) 01:27:00 Adjournment
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Memorandum
REPORT TO:Economic Vitality Board
FROM:Dani Hess, Community Engagement Coordinator
SUBJECT:Belonging in Bozeman - Equity & Inclusion Plan Update
MEETING DATE:April 5, 2023
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:None
STRATEGIC PLAN:3.3 Friendly Community: Ensure Bozeman continues to welcome diversity
through policies and public awareness.
BACKGROUND:This is a monthly update for the development of the city's Equity & Inclusion
Plan. The Belonging in Bozeman Equity & Inclusion Plan follows through on
the commitment made in both Resolution 5384 establishing the City as a
City for CEDAW, as well as the Inclusive City Report to develop a community
wide action plan.
The Equity & Inclusion Plan is guided by existing data from the Equity
Indicators Project, ongoing data collection efforts set forth in the CEDAW
resolution, and will recommend polices, practices, and programs to address
disparities found in the data. The purpose of the plan is to ensure that every
resident, visitor, and City of Bozeman employee feels welcomed, valued, and
can thrive no matter their race, identity, or life circumstance.
Highlights from the work that has occurred since the last EV Board update in
March 2023 include the project Kick-off Event on March 7th, the first
Steering Committee meeting on March 22nd, preparing to onboard three
Community Liaisons, and undertaking the first steps to draft sections of the
plan including a historical narrative and vision statements.
This week also marks one year since the City's adoption of Resolution 5384
designating Bozeman as a City for the Convention for the Elimination of
Discrimination Against Women (CEDAW). Progress on the four commitments
made in Resolution 5384 are included in this report:
1. Ongoing data collection and intersectional analysis, when possible,
of disparities across race, ethnicity, gender identity, sexual
orientation, ability, age and socioeconomic circumstances – including
in CEDAW priority areas of community safety, health and well-being,
and economic security
Staff have revisited existing data sharing agreements based on
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the Equity Indicators project to continue to compile and collect
best available data disaggregated where possible;
Staff are participating in a process with the Migrant Community
Coordination group and data experts at local firm SciGaia, to
improve data collection and sharing on the growth and
contributions of the Spanish-speaking community in Gallatin
County;
Staff are building the hub that will provide a public platform to
share, report, and provide access to the data behind the Equity
Indicators.
2. The Economic Vitality Board as the oversight body to ensure that
appropriate and timely actions are taken
Staff will provide monthly updates throughout the development
of the Equity & Inclusion Plan to the Economic Vitality Board;
Staff will conduct two work sessions with the Economic Vitality
Board throughout the development of the Equity & Inclusion
Plan to receive input from the board before they make their
recommendation to City Commission for final plan adoption in
Fall 2023.
3. The development and implementation of a 3-5 year Equity &
Inclusion Action Plan based on data to improve practices, programs,
and policies to close gaps and address disparities
Over the past year, staff have largely been focused on this item
and have worked to:
Establish the internal Belonging in Bozeman core team to
guide this effort internally;
Procure the necessary capacity, professional services and
experience provided by the Morten Group, LLC.;
Develop and strengthen relationships with community
partners to form a Steering Committee composed of 20+
representatives to guide the effort externally;
Establish three new part-time, short-term staff positions
called Community Liaisons to engage underrepresented
communities in the development of the plan;
Create a Community Engagement Plan to guide the
process of bringing in lived experiences, local expertise,
and community voice into the development of the plan;
Begun implementation of the Community Engagement
Plan and hosted the Equity & Inclusion Project Launch
Event with nearly 100 community members and
organizational partners on March 7th;
Convened the first monthly Steering Committee meeting
on March 22nd;
Begun the process to develop the first section of the plan
- a narrative of the history of the greater Bozeman area
through the lens of marginalized communities.
4. An annual report on the progress of the Equity and Inclusion Action
Plan with specific mention of activities and accomplishments related
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to CEDAW.
Tonight's presentation provides the first report out on progress
related to CEDAW priorities and the development of the Equity
& Inclusion Plan.
The Economic Vitality Board will continue to receive monthly updates on the
development of the plan. The draft plan is anticipated to come before
Economic Vitality Board for a work session on July 5th and September 6th.
The Economic Vitality Board will the make a recommendation for approval
to the City Commission.
A project page on Engage Bozeman can be found at
engage.bozeman.net/belonging
UNRESOLVED ISSUES:None
ALTERNATIVES:None
FISCAL EFFECTS:This project is funded in the City Manager's budget for FY 23.
Report compiled on: March 22, 2023
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Memorandum
REPORT TO:Economic Vitality Board
FROM:Renata Munfrada, Community Housing Program Coordinator
David Fine, Economic Development Program Manager
Brit Fontenot, Economic Development Department Director
SUBJECT:Community Housing Impact Fund Discussion
MEETING DATE:April 5, 2023
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Community Housing Impact Fund Discussion
STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a
wide variety of actions, the development of sustainable and lasting housing
options for underserved individuals and families and improve mobility
options that accommodate all travel modes.
BACKGROUND:In a collaborative effort, three organizations – First Security Bank,
NeighborWorks Montana, and HRDC – are proposing a Community Housing
Impact Fund with the purpose of providing philanthropic support and low-
interest financing to encourage preservation and development of housing
solutions in Gallatin County. Working in partnership with local lenders,
philanthropy, employers, and investors, the goal is to build a fund that
assists development while providing stable, long-term investment
opportunity.
The purpose of the Gallatin County Community Housing Impact Fund is to
provide stable returns for long-term investments to fund housing solutions.
The fund will offer low-interest financing to encourage for-profit and
nonprofit developers, investors, and local governments to partner with
community housing providers to preserve and expand housing solutions
throughout Gallatin County.
The initial fund targets will be to support projects serving renters with
incomes of up to $70,000 per household and create homeownership
opportunities for households with incomes up to $150,000 per household.
At least 60% of the fund dollars and projects funded will serve households
making less than 80% of the Area Median Income (AMI) and the highest
income levels served will be 150% of AMI.
The fund is anticipated to create and preserve 850 units of housing. Fund
dollars are expected to be leveraged 8:1 attracting $80,000,000 in dollars
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from other sources.
The one-year goal of the Community Housing Impact Fund is to raise
$10,000,000. First Security Bank has already contributed $1,000,000 to the
fund, with the intent to commit and additional $1,000,000 once the first
$10,000,000 has been raised. By partnering with NeighborWorks Montana, a
statewide Community Development Financial Institution (CDFI) banks are
able to secure Community Reinvestment Act (CRA) credits. For social impact
investors, the opportunity to invest in an underserved market with stable
returns and low volatility. For employers, the fund is an opportunity to
participate in a sustainable, collaborative effort to address housing needs.
The $10 million fund will be broken into two parts – a $7 million loan pool
and a $3 million grant and deferred loan pool.
NeighborWorks Montana will be responsible for all fund management and
administration. This includes loan product development, policies and
procedures, marketing, receipt of applications, underwriting, originating, and
servicing. NWMT is a statewide CDFI whose mission is to strengthen
communities by providing education and financing that gives every
Montanan the opportunity to live in a home where they can thrive.
NWMT will charge origination of 1.00% of total loan amount for all loan
types. In addition, NWMT will manage the fund for a 1.50% net rate of
return. NWMT may request changes for fees and rates through approval of
the fund advisory board.
The $10 million fund will be broken into two parts – a $7 million loan pool
and a $3 million grant and deferred loan pool. The $7 million loan pool will
be used to provide long-term, low-cost loans to households earning
between $40,000 and $70,000.
The types of projects that can benefit from low-cost and flexible financing
are things like layering dollars into developments that are utilizing other
source like LIHTC but have a financing gap, supporting preservation of
properties that are coming to the end of their period of affordability, many
of which need rehabilitation and updating, or supporting purchase of
manufactured home communities by resident cooperatives.
If the fund were to provide an average of about $10k-$15k per unit, this $7
million fund could preserve or cerate 700 homes in Bozeman and Gallatin
County. The $3 million grant and deferred loan pool will target households
earning between $70,000 and $100,000 and support roughly 30 units of
housing.
The creation of the Community Housing Impact Fund is a tangible step to
support the work being done in our community by both for-profit and
nonprofit developers, supporting partners, local governments, and other
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stakeholders.
The Impact Fund will provide vital funding for the creation and preservation
of affordable housing in throughout the region. The best return on our
investment for creating real, long-term affordable housing is to eliminate
barriers to the construction of LIHTC and other income-restricted housing
units. These units feature long-term affordability for lower income
households. Households with lower incomes are not served by the current
housing market. Without harnessing federal subsidies and closing any
remaining financial gap, it is unlikely that any new units serving this
demographic will or can be constructed.
UNRESOLVED ISSUES:None
ALTERNATIVES:As recommended by the Economic Vitality Board
FISCAL EFFECTS:The City of Bozeman is proposing a $900,000 philanthropic contribution from
the Community Housing Program FY23 budget into the Community Housing
Impact Fund administered by NeighborWorks Montana.
Attachments:
Community Housing Impact Fund 04.05.23.pdf
Report compiled on: March 27, 2023
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Memorandum
REPORT TO: Economic Vitality Board
FROM: Renata Munfrada, Community Housing Program Coordinator
David Fine, Development and Housing Program Manager
Brit Fontenot, Economic Development Department Director
SUBJECT: Community Housing Impact Fund
MEETING DATE: April 5, 2023
AGENDA ITEM TYPE: Policy Discussion
RECOMMENDATION: No Vote Required
STRATEGIC PLAN: 4.5 Housing and Transportation Choices – Vigorously encourage, through a wide
variety of actions, the development of sustainable and lasting housing options
for underserved individuals and families and improve mobility options that
accommodate all travel modes.
Community Housing Needs
Affordability is always tied to income. The gap between income and housing costs is simply too wide.
Unaffordability doesn’t only hurt those who rent, it creates a drag on businesses trying to maintain a
robust workforce. Importantly, the sectors of the workforce most affected are often those providing the
services and skills that help to create and maintain a good quality of life for all of us.
Housing prices (rentals and purchase) have increased at a much higher rate than wages. Between 2015
and 2020, home sales prices have risen 9.5% per year. Rental prices have grown by 5.2% per year.
Meanwhile, wages have only increased by 4.1% per year. An individual would need to earn $90,000 per
year, or $43 per hour, in order to afford a market-rate rental unit (2,500/month).
The situation is much more difficult for those households hoping to purchase a home and really put down
roots in the community. Households would need an income of approximately $183,000 in order to
purchase the median single-family home.
Our needs are clear and increasing. It’s also important to note that the State has no designated affordable
housing funding outside of what is received from Federal pass through funds, which are restricted in their
uses and nowhere near enough to even meet the needs they are restricted to. Communities are on their
own to develop and implement solutions to meet the needs of our critical workforce.
In a collaborative effort, three organizations – First Security Bank, NeighborWorks Montana, and HRDC –
are proposing a Community Housing Impact Fund with the purpose of providing philanthropic support
and low-interest financing to encourage preservation and development of housing solutions in Gallatin
County. Working in partnership with local lenders, philanthropy, employers, and investors, the goal is to
build a fund that assists development while providing stable, long-term investment opportunity.
12
Community Housing Impact Fund
The one-year goal of the Community Housing Impact Fund is to raise $10,000,000. First Security Bank has
already contributed $1,000,000 to the fund, with the intent to commit and additional $1,000,000 once
the first $10,000,000 has been raised. By partnering with NeighborWorks Montana, a statewide
Community Development Financial Institution (CDFI) banks are able to secure Community Reinvestment
Act (CRA) credits. For social impact investors, the opportunity to invest in an underserved market with
stable returns and low volatility. For employers, the fund is an opportunity to participate in a sustainable,
collaborative effort to address housing needs.
The $10 million fund will be broken into two parts – a $7 million loan pool and a $3 million grant and
deferred loan pool.
Role of Philanthropy
While important to benefit the whole community, investors will not have the ability to generate returns.
For those activities, philanthropy will play a role. This fund envision philanthropy working in two roles,
first to leverage funds available from local, state, and federal sources to address housing needs for those
on the lowest end of the housing continuum, generally earning less than $40,000 annually, but up to
$60,000 for larger households.
The second role for the granting fund is to help households earning between $70,000 and $100,000 with
assistance in purchasing homes, either through Down Payment Assistance (DPA) or Community Land
Trusts (CLT). These purchases can be leveraged with Federal funds to create lasting affordability for
owners. For example, supporting the gaps in homeownership through approaches like CLTs, or supporting
the important services that are needed not only to house people, but to help them maintain stable
housing or successful homeownership.
Collaboration is central to maximizing impact. Partnerships across sectors allow philanthropy,
government, and private industry to leverage each other’s strengths in order to exercise influence, build
deeper capacity, and increase resources for implementing solutions.
Purpose of the Fund
The purpose of the Gallatin County Community Housing Impact Fund is to provide stable returns for long-
term investments to fund housing solutions. The fund will offer low-interest financing to encourage for-
profit and nonprofit developers, investors, and local governments to partner with community housing
providers to preserve and expand housing solutions throughout Gallatin County.
Fund Targets
The initial fund targets will be to support projects serving renters with incomes of up to $70,000 per
household and create homeownership opportunities for households with incomes up to $150,000 per
household. At least 60% of the fund dollars and projects funded will serve households making less than
80% of the Area Median Income (AMI) and the highest income levels served will be 150% of AMI.
Anticipated Impact
The fund is anticipated to create and preserve 850 units of housing. Fund dollars are expected to be
leveraged 8:1 attracting $80,000,000 in dollars from other sources.
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Fund Advisory Board
Funds will be invested in NeighborWorks Montana (NWMT) who will administer the fund under the
guidance of a local fund advisory board. The advisory board will be comprised of loan pool investors. Each
investor with $250,000 or more invested in the fund will hold a seat on the board. The board will meet bi-
annually to review development and impacts. Our stakeholders may be invited to attend meetings for
education and discussion.
Role of Advisory Board
High level fund parameters and targets have been set up front to meet community needs. The advisory
board will have the ability to adjust maximum loan dollars per project and per unit and will oversee and
approve any changes to NWMT’s fund management performance and returns. The advisory board will not
define specific products or more detailed underwriting standards.
Advisory board members may also be called to provide local market perspective for NWMT underwriting
and provide suggestions for market needs that could be addressed using available Impact Fund dollars.
NeighborWorks Montana Fund Management
NeighborWorks Montana will be responsible for all fund management and administration. This includes
loan product development, policies and procedures, marketing, receipt of applications, underwriting,
originating, and servicing. NWMT is a statewide CDFI whose mission is to strengthen communities by
providing education and financing that gives every Montanan the opportunity to live in a home where
they can thrive.
NWMT will charge origination of 1.00% of total loan amount for all loan types. In addition, NWMT will
manage the fund for a 1.50% net rate of return. NWMT may request changes for fees and rates through
approval of the fund advisory board.
Fund Investment Opportunity
The Community Housing Impact Fund requires a combination of investments and donations and is seeking
interested investors and donors to participate in this fund. Impact investments will be pledged up front
and drawn over a two-year period. Philanthropic gifts will be pledged up front and may be gifted over a
two-year period.
Funding Source Dollar Amount
Impact Investment $8,000,000
NWMT Investment $1,000,000
Grants & Donations $1,000,000
Total Impact Fund $10,000,000
The minimum impact investment amount is $100,000. The term on these investments is 10 to 15 years
with an interest rate of 2.00%. Investors who do not require a return on this investment are encouraged
to invest at 0.00%. With lower returns to investors the fund can charge lower rates to borrowers, support
the preservation and creation of more units, and create deeper affordability impacts. In addition,
investors are encouraged to also be donors. It is the combination of investment and philanthropic giving
that will best meet community and project needs.
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Impact Fund Structure
The $10 million fund will be broken into two parts – a $7 million loan pool and a $3 million grant and
deferred loan pool. The $7 million loan pool will be used to provide long-term, low-cost loans to
households earning between $40,000 and $70,000.
The types of projects that can benefit from low-cost and flexible financing are things like layering dollars
into developments that are utilizing other source like LIHTC but have a financing gap, supporting
preservation of properties that are coming to the end of their period of affordability, many of which need
rehabilitation and updating, or supporting purchase of manufactured home communities by resident
cooperatives.
If the fund were to provide an average of about $10k-$15k per unit, this $7 million fund could preserve or
cerate 700 homes in Bozeman and Gallatin County. The $3 million grant and deferred loan pool will target
households earning between $70,000 and $100,000 and support roughly 30 units of housing.
The creation of the Community Housing Impact Fund is a tangible step to support the work being done in
our community by both for-profit and nonprofit developers, supporting partners, local governments, and
other stakeholders.
Community Housing Impact Fund - $7 Million Loan Pool
15
Community Housing Fund - $3 Million Grant & Deferred Loan Pool
Lumberyard Affordable Low Income Housing Tax Credit (LIHTC) Project
The Lumberyard is a planned ground-up development located at the northwest corner of North 11th
Avenue and Patrick Street. The project site, situated in the Midtown Urban Renewal District, is currently
a vacant parcel of land. The project will deliver a mix of uses at completion, including conventional
multifamily housing and Low Income Housing Tax Credit (LIHTC) housing.
The project proposes 303 conventional apartment units and 90 LIHTC housing units for a total of 393 new
housing units. The development will include a mix of studio, one-bedroom, two-bedroom, and three-
bedroom floor plans.
The LIHTC units will be income restricted, for a period of at least 30 years, for households earning at or
below 60% of AMI. The developer needs to utilize the Deep Incentives provided in the new Affordable
Housing Ordinance (AHO), and Low Income Housing Tax Credits, in addition to $8.5 million in Tax
Increment Financing (TIF) assistance in order to create adequate infrastructure for the development.
In spite of the generous incentives provided by each of these programs, the developer still has a roughly
$2.5 million construction financing gap. Clearly, it is extremely difficult to make affordable housing
development pencil for developers. The Community Housing Impact Fund will be critical to making
housing development just like the Lumberyard project a reality.
The Community Housing Program and Economic Development Department of the City of Bozeman are
proposing a $900,000 philanthropic contribution to the Impact Fund in order to support the creation and
16
preservation of housing in our community. Our grant dollars will be used specifically to provide gap
financing for the Lumberyard project. Without this injection of funding, the project would not be feasible,
and the community would effectively lose 393 new units of housing.
Conclusion
The Impact Fund will provide vital funding for the creation and preservation of affordable housing in
throughout the region. The best return on our investment for creating real, long-term affordable housing
is to eliminate barriers to the construction of LIHTC and other income-restricted housing units. These units
feature long-term affordability for lower income households. Households with lower incomes are not
served by the current housing market. Without harnessing federal subsidies and closing any remaining
financial gap, it is unlikely that any new units serving this demographic will or can be constructed.
The Community Housing Program’s goal is to add another LIHTC project every year. We are poised to
deliver on that goal. The City’s $900,000 contribution to the Community Housing Impact Fund would
harness at least 2 private dollars for every one public dollar. That loan fund would use public and private
dollars to plug a $2.5-3 million financing gap that currently makes the Lumberyard project infeasible.
This is important – because of the structure of LIHTC deals, loans, not grants, are the best way to fill
feasibility gaps for projects. The City’s contribution would create a lending tool and an approach to making
LIHTC projects that could directly benefit from the City’s Community Housing fund and create hundreds
of truly affordable units in a single project, rather than attempting to convert one unit at a time. Only
three short months after adopting the new AHO, City already has several projects, and will have more in
the future, that would benefit from a sustained continuation of this successful approach.
17
Memorandum
REPORT TO:Economic Vitality Board
FROM:Jesse DiTommaso, Economic Development Specialist
Brit Fontenot, Economic Development Director
SUBJECT:2023 Legislative Update
MEETING DATE:April 5, 2023
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Listen / Ask Questions
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:Update on the 68th Annual Montana Legislative Session.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None.
FISCAL EFFECTS:None.
Attachments:
City of Bozeman Legislativ.pdf
Report compiled on: March 31, 2023
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19
LETTER FROM CITY COMMISSION ............3
BOZEMAN 'S TOP PRIORITIES....................4
PRIORITIES TO SUPPORT, DEFEND &
WATCH..........................................................9
UNIQUE ISSUES AFFECTING THE CITY...15
PARTNER AGE NDAS...................................18
CONTACT INFORMATION..........................19
table of contents
20
from the bozeman
city commission
City of Bozeman Residents, Montana State Representatives, Senators, and Governor
Gianforte,
We, the City Commission of the City of Bozeman, adopted the following legislative
agenda which we plan to pursue during the 68th session of the Montana
Legislature. As the local elected representatives of 54,000 Bozeman residents, we
provide a unique perspective on how the City interacts with the State and how to
improve the policies impacting the lives of our residents.
Many of the priorities on our list apply to small and large cities and towns across our
State. We are all experiencing challenges with limited sources of revenue to serve
our community, a lack of housing, the need to create a sustainable future, and a
desire to control our own affairs. We will stand arm-in-arm with our fellow
Commissioners and Council Members wherever they are from—the Hi-line, the other
side of the continental or partisan divide, or in one of our many wonderful valleys
across the State—to advance these priorities and oppose ideas that will harm our
vibrant cities and towns.
Over the last several decades, we have experienced unprecedented growth. The
growth has created many new opportunities. Opportunities for Montanans to come
back home to pursue jobs, raise a family, and enjoy our wonderful way of life.
Opportunities for residents from all over the globe to discover our clear, cold
streams, stunning vistas from our mountaintops, and food and drink from Montana
fields and ranges. Opportunities to build a future that benefits all Montanans.
With those opportunities, we have experienced some negative impacts as well. We
cannot solve these problems on our own. Our agenda reflects how we, as a City,
would like to work with the State to improve the lives of Bozeman residents and
Montanans all over the state. We look forward to working closely with members of
Montana’s citizen legislature to advance meaningful change for years to come.
Sincerely,
Mayor Cyndy Andrus
Deputy Mayor Terry Cunningham
Commissioner Christopher Coburn
Commissioner Jennifer Madgic
Commissioner I-Ho Pomeroy
LEGISLATIVE POLICY 2023 3
21
Bozeman's top priorities
Workforce Housing
Clean Energy
Make Cents for
Montana
Local Control
LEGISLATIVE POLICY 2023 4
22
Workforce housing
Whether we call it affordable, attainable, or workforce housing, it remains
clear, Montana and Bozeman need more housing. If people do not have a
safe, affordable place to live, then they do not have a place in the Last Best
Place.
There are no easy answers for how to solve the problem. We agree with the
need to right -size regulation for the growing 21st century communities in the
state. However, we cannot stop there. Labor, Land, and Lumber are the three
“L’s” driving our affordability crisis in the State. To assist with the cost of
housing, the City needs resources and more tools to reduce the cost of
construction, to speed up the development review process, and to track the
long -term agreements that accompany many workforce housing products.
The Commission will support staff
partnering with organizations Sample Legislation:
ranging from the Montana League of
Cities and Towns to the Montana
Chamber of Commerce to the Property Tax Circuit Breaker
Revolving Loan Fund for Workforce Housing
Expansion of Low Income Housing Tax
Credits
Montana Housing Council to
Southwest Montana Building
Industry Association. Constructing
more a ffordable housing will require
creativity from all Montanans.
LEGISLATIVE POLICY 2023 5
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clean energy
In December 2020, the City Commission adopted a bold plan establishing
long -term climate goals for the City of Bozeman. The goals will create a more
resilient economy, protect Montana’s natural resources, and support the
technologies to make us more energy independent.
Montana has taken strides to increase clean energy production in the state. A
notable advance was the creation of the Commercial Property Assessed Clean
Energy (C -PACE) program. The City of Bozeman supports further expansion of
the program to include residential properties.
We will look to partner with other cities interested in supporting clean
energy initiatives, the Montana Environmental Information Center, innovative
green energy and technology companies to grow their companies, and cities
across the state to support just transition initiatives to allow Colstrip workers
a fair opportunity for future jobs.
LEGISLATIVE POLICY 2023 6
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Make cents for Montana
Blame Yellowstone . Blame A River Runs Through It . Blame Lonesome Dove .
Blame the Lewis and Clark Expedition. No matter whom or what we blame, it
is clear that the Last Best Place has been discovered. New residents continue
to move in. In fact, from July 2020 to July 2021, Montana welcomed more than
19,000 new residents. In 2021, the Bozeman International Airport had 1.94
million passengers come through the airport.
The City Commission strongly supports asking those tourists to pay for the
services they consume. Tourists benefit from the same city services as our
residents —safe neighborhoods, clean drinking water, and a well -planned
community. However, the burden of paying for those services falls solely on
residents through property taxes.
The City of Bozeman supports allowing jurisdictions of all sizes to propose a
ballot measure asking voters to approve a sales tax targeting goods and
services commonly consumed by tourists such as outdoor guiding services,
alcohol consumption, hotel stays, and restaurant meals. Any new tax should
be used to reduce the property tax burden on residents and make
investments in the future of the city such as infrastructure improvements
and workforce housing.
Bozeman will partner with other large cities, counties, and anyone interested
in reducing the property tax burden on senior citizens, young families, and
first -time home buyers.
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Local Control
The Bozeman City Commission believes the government closest to the people
is the government which governs best. We are elected to govern the
community where we live. Our constituents are our neighbors, friends, and
family members. Commissioners have a unique interest in ensuring the City
of Bozeman continues to thrive long after our terms end and we leave our
fancy titles behind to reclaim the most important title in American life —
citizen.
Last session, the Legislature added six new policies to the list of powers
denied to local governments with self -governing powers. Further, the
legislature took aim at the ability for cities to govern themselves —as their
citizens have empowered them to do so —through several other pieces of
legislation.
We b elieve issues best decided at the local level such as land use concerns
should remain the jurisdiction of local governments. The needs of
communities like Bozeman are distinct from those in Missoula, Chester,
Billings, Lewistown, or Glasgow. Each city and town ought to be empowered
to make decisions in the context of their local community. We stand united
with our partners in cities and towns across the State to oppose erosion of
local control.
The City of Bozeman will support legislation requiring a two -thirds majority
to add additional provisions to the powers denied to local government.
LEGISLATIVE POLICY 2023 8
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bozeman priorities: Support
The following priorities are issues which the City of Bozeman will actively
support. Support includes, but is not limited to, drafting legislation,
organizing coalitions, testifying, releasing editorials or others statements to
the media, and collaborating with partners to ensure the priorities become
policy.
Administrative Final Plat
Allow for city staff to administratively
review and approve final plats rather
than requiring the City Commission to
do so. Requiring final plats to receive
City Commission approval delays
projects adding costs and frustration to
developers. The City will support
legislation to allow staff to
administratively approve final plats.
Partners: Southwest Montana Building
Industry Association
Acceptance of Easements
Easements to the City are required to go
to the City Commission on the consent
agenda. If final plats are allowed to be
administratively reviewed, then the City
Manager ought to be allowed to
administratively accept easements. The
City of Bozeman will support legislation
to allow the City Manager to accept
easements administratively to shorten
the development process.
Partners: So uthwest Montana Building
Industry Association, Montana
Association of Planners
Allowable Units by Right
Bozeman currently allows multiple units
on a lot a s long as the lot meets our
development standards. The City of
Bozeman would support allowing up to
five dwelling units on a lot by right
throughout the state. Six or more
dwellings would be subject to an
administrative review established by
each local government.
Partners: Montana League of Cities and
Towns Land Use Planning Group
Surtax on Vacant Properties
As Montana becomes an attractive
vacation location, we are noticing an
uptick in the number of properties that
remain vacant for much of the year.
Properties that remain vacant for much
of the year l ead to an inefficient use of
our public i nfrastructure and reduce
neighborhood vibrancy. Further, it only
exacerbates our workforce housing
crunch. The City of Bozeman would
support legislation to assess an
additional tax on underutilized
residential properties. The funds
generated from the tax would support
workforce housing.
Partners: Montana Housing Coalition
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bozeman priorities: support
Municipal Control of Signaling Systems
In Bozeman, several key travel routes are
on Montana De partment of
Transportation maintained roads. The City
would support legislation to allow for
municipal control of signaling systems on
MDT maintained highways in City Limits.
Partners: M ontana Infrastructure
Coalition
Statewide Model Covenants
To facilitate the development of new
housing supply, the City of Bozeman
supports the creation of model covenant
language statewide which would allow
HOAs to adopt the language quickly.
Any model covenant language should
include provisions to repeal portions of
the covenants that are in conflict with
state or city policy.
Partners: Montana Association of
Planners, Montana League of Cities and
Towns
Zombie Covenants
Restrictive covenants regarding future
land use are often placed on land when
a development is first created. The City
of Bozeman will draft legislation to
sunset restrictive covenants not aligned
with City or State public policy unless
the covenants receive an affirmative
vote of the majority of owners party to
the covenant.
Partners: Montana League of Cities and
Towns
Affordable, Quality Childcare
When it is cheaper to send your college -
aged child t o Montana State University
for a year than it is to place your child in
quality daycare, something is not right.
The City of Bozeman will support
legislation to improve access to quality
childcare for all Montanans.
Partner: Childcare Connections
Growth Policy Statute Revisions
Streamline the development application
process if the project does not require
changes to the zoning in the adopted
growth plan. The City of Bozeman
supports changing state law to allow an
adopted growth plan to govern land use
decisions in the City.
Partners: Montana Association of
Planners, Montana REALTORS, Montana
League of Cities and Towns
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bozeman priorities: support
Planning and Zoning Board Consolidation
In 2021, the City of Bozeman
consolidated boards throughout the
City. The Planning and Zoning Board
functions are both under the jurisdiction
of the Community Development Board,
but must follow some arcane processes
to indicate the different functions. The
City of Bozeman will support legislation
to allow cities to formally combine
Planning and Zoning Board functions
across the state to shorten the
development review process.
Partners: So uthwest Montana Building
Industry Association
Cash-in-Lieu of Parkland Increase
The land cost in Bozeman has risen
rapidly over the last several years. To
reflect this change, the City of Bozeman
will support efforts to increase the value
of land in t he cash -in -lieu of parkland
calculation to reflect this increasing cost
of land.
Partners: Parks Directors of the Big Seven
State Aid to Libraries
In many states, municipal libraries
receive a subsidy of $2 to $3 per capita
to support programs. In Montana,
libraries only receive $0.40 per capita.
The City of Bozeman supports increasing
state aid to libraries to $0.50 per capita.
Partners: Montana Library Association
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Big Sky Trust Fund
The Big Sky Trust Fund is a key source of
economic development dollars to
support job creation in our state
especially jobs in the manufacturing
sector. The City of Bozeman will support
the Big Sky Trust Fund including efforts
to expand the trust fund to support
STEM jobs.
Partners: Montana Economic Developers
Association
Film Tax Credit
Montana is home to a burgeoning film
industry. Under the current system, large
productions such as Yellowstone use up
most the film tax credit. The City of
Bozeman would support an expansion of
the film tax credit to allow smaller, local
production companies to benefit from
the credit.
Partners: Montana Film Office
Public Safety
Given recent tragedies in Bozeman, the
City Commission will support legislation
to reverse the ban on red -light cameras
to allow for municipal control of
signalization and speed limits of all
streets in the city, and to allow the City
Commission to determine all fines for
moving violations in city limits.
Partners: Montana League of Cities and
Towns, Safer Bozeman
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bozeman priorities: support
Gallatin College Funding
For the last ten years, Gallatin College
has supported job growth in our
community through the creation of
academic programs with real world
applicability. The College has outgrown
their current facilities and has begun to
rent space from private businesses
throughout Gallatin Valley to support
their rising enrollment and new
programs. The City of Bozeman will
support requests by Gallatin College for
funding to construct a new facility.
Partners: Gallatin College, Southwest
Montana Manufacturing Partnership
High-Speed Broadband Expansion
Twenty -first century jobs require twenty -
first century i nfrastructure. The City of
Bozeman will support programs to
expand access to high -speed fiber optic
broadband connections throughout the
State.
Partners: Montana Economic Developers
Association
Regional Fire Authority
Residents outside City limits are
often served by a volunteer fire
station. Often, when a fire call is
received, the City of Bozeman fire
department is the first on the scene
because of mutual aid agreements.
The City of Bozeman will support
legislation to create regional fire
authorities to pool resources and
provide a higher level of service
throughout our region.
Partners: Montana League of Fire
Chiefs
Municipal Court Security
The City of Bozeman will support
legislation to allow cities to have
non -sworn special services officers
provide security in municipal court
rooms rather than sworn law
enforcement officers.
Partners: Montana Chiefs of Police
Angel Investing
Many start -up companies rely on
investments from venture capital firms
and others to launch their once -in -a-
generation idea. The City of Bozeman
will support policies that attract new
capital from angel investors to the
state to support these once -in -a -
generation ideas.
Partners: Th e Governor ’s Office
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City of Bozeman priorities: Defend
The following policy areas have come under attack in the past at the
legislature. City of Bozeman staff and our lobbyists will work to defeat any
legislation that diminishes our ability to achieve the long -term goals for the
City of Bozeman.
Inclusive City Values Municipal Fire Code
Last session, the State Legislature
passed several pieces of legislation
hostile to the LGBTQ+ community,
women ’s reproductive health, and City -
led DEI initiatives. The City of Bozeman
will strongly oppose any legislation that
seeks to curtail to rights of our fellow
Montanans enshrined in Article II
Section IV of the State Constitution and
diminish our ability to be a welcoming
City to all.
The City of Bozeman will defend the
ability for cities to make municipal rules
related to our fire code. This policy will
also fall under our top priority of
defending local control.
Partners: Montana League of Cities and
Towns
Public Defender Funding
In past Legislative sessions, the State has
attempted to reduce the funding
provided to cities to support public
defender offices. The City will oppose
any attempt to reduce the state ’s share
of funding public defenders —a
constitutional right established in
Gideon v. Wainwright.
Partners: Montana League of Cities and
Towns
Partners: Montana Human Rights
Network, Montana Racial Equity Project
Tax Increment Financing
For several sessions, the Legislature has
taken aim at Tax Increment Financing
(TIF) statutes. Legislators have
attempted to reduce the increment
available for projects and to limit the
ability to create new districts. TIF is one
of the only economic development tools
available to cities and counties to
encourage redevelopment in blighted
areas. The City of Bozeman will strongly
oppose any legislation that would
reduce the City ’s ability to leverage TIF
dollars.
P artners: Mo ntana League of Cities and
Towns, Montana Association of Counties
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City of Bozeman priorities: watch
The following list includes priorities that the City of Bozeman will monitor
at the 68th Legislative Session. At this time, we do not anticipate the State
Legislature will take action on these topics. However, we are prepared to
act in the best interest of the City on these topics.
Bills Related to Water Rights, Quality, and
Management
Proposed C hange to the Montana Flood Plain
Management Act
Reduction i n Municipal Authority over Building Codes
Allowing L ibrary Board to determine Materials
Purchased for a Library
Sunsets f or Special Districts to fund City services
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unique issues affecting the city
tobacco and marijuana use for firefighters
Legislation passed in 2019 prohibited firefighters from using tobacco. With
marijuana legalization, state statute is unclear whether the ban also applies
to marijuana use. The City of Bozeman will support legislation that clarifies
this issue.
Partners: Montana League of Fire Chiefs
paid sick leave for city employees
State statute prohibits public employees from taking any sick leave during
their first ninety days of employment. Given the recent COVID -19 pandemic
and our labor shortage, the City supports greater flexibility to allow
employees to use sick leave as accrued from day one of employment.
Partners: Public Employee Unions, Montana League of Cities and Towns
Remove Newspaper Noticing Requirements
Shrinking newspaper subscriptions and the variety of other outlets in
which to provide the public with proper noticing calls for greater
flexibility for cities and towns to provide the required public notice. In the
past, noticing issues between the City and the paper have delayed
hearings and other actions by the City even when residents were given
appropriate notice by other means. The City of Bozeman will support
adding additional options beyond newspapers for cities to satisfy the
public noticing requirements to comply with Article II, Sections VIII and IX
of the Montana State Constitution.
Partners: M ontana League of Cities and Towns, Montana Association of
City Clerks
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unique issues affecting the city
Remote Participation in City Processes
During the COVID -19 pandemic, remote participation in public meetings and
processes such as bid openings became commonplace. The City of Bozeman
will support legislation to clarify what processes can be conducted remotely
and have remote participants.
Partners: Montana Municipal Clerks, Treasurers, and Financial Officers
Association
Special Election Date Change
Last session, a bill to revise the dates for special elections to be on the same
day as general election day (HB 319) passed the House 89 -11 on third reading.
The legislation died in the Senate. The City would like to revive this bill as it
is both a significant cost savings in election administration and makes it
easier for citizens to participate in their government through elections.
Partners: Montana Municipal Clerks, Treasurers, and Finance Officers
Association
Intimidation of Public Servants
The current political climate has increased threats to public employees
across the state. The City of Bozeman strongly supports expanding the legal
definition of intimidation to include stalking a public servant,
communicating a threat to a public servant, or publishing the public servant
or their f amily’s personal information.
Partners: Montana Association of Chiefs of Police
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unique issues affecting the city
Authorization for the Destruction of Records
City clerks must submit a records destruction request to the Montana
Historical Society and Secretary of State’s Office. Once approved, the local
elected body must further authorize the records destruction. In order to
streamline the process and remove unnecessary and costly steps, the City of
Bozeman supports eliminating the need for local elected officials to approve
a records destruction request.
Partners: M ontana Municipal Clerks, Treasurers, and Finance Officers
Association
Digital Notarization
The Secretary of State’s office allows for private notaries to notarize
documents digitally. The City of Bozeman supports streamlining the rules to
allow for an expansion of digital document notarization to the public sector
especially when one considers the high volume of documents required to be
notarized by local governments.
Partners: M ontana Municipal Clerks, Treasurers, and Financial Officers
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PARTNER AGENDAS
The City of Bozeman acknowledges major policy
change often requires involvement from partners
and organizations with varying perspectives.
Often, city staff were involved in crafting the
legislative agendas for some of the following
organizations. Further, partner organizations
bring different sets of skills, expertise, and
perspectives to problems affecting our state. The
City of Bozeman has chosen to endorse the
legislative agendas of the following
organizations.
The Montana League of Cities and Towns
The M ontana Association of Counties
The M ontana Association of Planners
The M ontana Economic Developers Association
The M ontana Housing Coalition
The M ontana Infrastructure Coalition
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36
legislative core team
THE PEOPLE TO KNOW
Mayor Cyndy Andrus
candrus@bozeman.net
Deputy Mayor Terry Cunningham
tcunningham@bozeman.net
Commissioner Christopher Coburn
ccoburn@bozeman.net
Commissioner Jennifer Madgic
jmadgic@bozeman.net
Commissioner I-Ho Pomeroy
ipomeroy@bozeman.net
Jeff Mihelich, City Manager
406-582-2306, jmihelich@bozeman.net
Chuck Winn, Assistant City Manager
406-582-2327, cwinn@bozeman.net
Greg Sullivan, City Attorney
406-582-2309, gsullivan@bozeman.net
Brit Fontenot, Economic Development Director
406-582-2258, bfontenot@bozeman.net
Takami Clark, Communications & Engagement Manager
406-582-2322, tclark@bozeman.net
Anna Saverud, Assistant City Attorney
406-582-2309, asaverud@bozeman.net
Mike Veselik, Economic Development Manager
406-582-2919, mveselik@bozeman.net
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BOZEMAN MT
38
Memorandum
REPORT TO:Economic Vitality Board
SUBJECT:Update on the Economic Vitality Strategy
MEETING DATE:April 5, 2023
AGENDA ITEM TYPE:Policy Discussion
RECOMMENDATION:Listen / Discuss
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