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Home My WebLink AboutResolutions 5505 - Resolution Title Unknown DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB of BO2�, RESOLUTION NO. 5505 RESOLUTION APPROVING THE LUMBERYARD PROJECT IN THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana(the "City"), as follows: Section 1 Recitals. 1.01. Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended(the "Act"), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1685 adopted by the Commission on November 27, 2006, as amended by Ordinance No. 1925, adopted by the Commission on December 16, 2015 (collectively, the "Ordinance"), the City has created the Bozeman Midtown Urban Renewal District(the "District") as an urban renewal district and has approved the Bozeman Midtown Urban Renewal Plan(the "Plan") as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District. DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB Resolution 5505,Approving a Project in the Midtown URD Known as the Lumberyard Project 1.03. Virga Venture I LLC (the "Developer") owns certain property in the District, which has or is expected to go through a common boundary relocation, pursuant to which the land will be comprised of one lot on what is referred to as the "West Block" and two lots on what is referred to as the "East Block." The Developer proposes to undertake a two-phase residential project on the East Block, the first phase of which is expected to consist of the design, engineering and construction of 21 studio apartments, 54 one-bedroom apartments, 78 two- bedroom apartments, 18 three-bedroom apartments, and related improvements, and the second phase of which is expected to consist of the design, engineering and construction of 14 studio apartments, 36 one-bedroom apartments, 52 two-bedroom apartments, 12 three-bedroom apartments, and related improvements (collectively, the "Project"). The Developer expects to sell the West Block to a third party that will develop an affordable housing project on the West Block, expected to consist of not less than 90 units of housing, each affordable at 60% of area median income, and the public improvements and infrastructure to be constructed in connection with the Project will support the development of the affordable housing project. The Developer has requested that the City use tax increment revenues of the District to reimburse the Developer with respect to certain eligible costs of the Project, including public improvements including street, curb, gutter and sidewalk improvements, and public and utility infrastructure, as well as impact fees, cash in lieu of water rights and fees and charges related to installing fiber optic cable (the "Eligible Costs"). 1.04. On August 15, 2023, a duly noticed public hearing was held on the question of approving the Project as an urban renewal project under the Act and the Plan and the use of tax increment revenues to reimburse the Developer for Eligible Costs and all persons appearing were given an opportunity to speak at the public hearing. Section 2 Approval of the Project as an Urban Renewal Project. 2 DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB Resolution 5505,Approving a Project in the Midtown URD Known as the Lumberyard Project The Commission hereby approves the Project as an urban renewal project under the Act and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Project as follows: a. no persons will be displaced from their housing by the Project; b. the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; C. the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. taking into account the use of tax increment revenues to reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4 Development Agreement; Use of Tax Increment. 4.01. Staff of the City's Economic Development Department and the Developer have negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The Development Agreement is hereby approved in substantially the form attached. The City Manager, or in the event of his absence or disability, his designee, is hereby authorized and directed to finalize, approve, execute and deliver to the Developer the Development Agreement, 3 DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB Resolution 5505,Approving a Project in the Midtown URD Known as the Lumberyard Project substantially in the form attached as Exhibit A, with such changes as such officer shall deem necessary or appropriate. The execution and delivery by an appropriate officer of the City of the Development Agreement shall be conclusive as to the approval of such officer of the terms of the Development Agreement. 4.02. The Commission hereby approves the use of tax increment revenues to reimburse the Developer for Eligible Costs of the Project, subject to the terms and conditions of the Development Agreement. 4 DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB Resolution 5505,Approving a Project in the Midtown URD Known as the Lumberyard Project PASSED, ADOPTED,AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 15th day of August, 2023. DocuSigned by: 4Ttff,K'XNDRUS Mayor ATTEST: DocuSigned by: , 2. DocuSigned by: MI City Clerk APPROVED AS TO FORM: DocuSigned by: �t�,tv�aun, GREG SULLIVAN City Attorney 5 DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the "City"), hereby certify that the attached resolution is a true copy of Resolution No. 5505 entitled: "RESOLUTION APPROVING A PROJECT IN THE MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT" (the"Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on August 15, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that,upon vote being taken on the Resolution at said meeting,the following Commission members voted in favor thereof: Andrus,Cunningham, Madgic,Coburn ; voted against the same: abstained from voting thereon: or were absent: Pomeroy WITNESS my hand and seal officially this 15th day of August, 2023. (SEA DocuSigned by: T4HCF ooaus�goeabr: ,T��p ` Y ? Y9'YA'l 8- ee iR` City Clerk DocuSign Envelope ID: EB7B2327-4732-44CF-9D26-852FCC9FE4EB Resolution 5505,Approving a Project in the Midtown URD Known as the Lumberyard Project EXHIBIT A [Form of Development Agreement] A-1