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Home My WebLink About09-11-25 - Downtown Business Improvement District - Agendas & Packet MaterialsA. Call meeting to order - 12:00 p.m. B. Disclosures C. Changes to the Agenda D. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board THE DOWNTOWN AREA URBAN RENEWAL DISTRICT BOARD OF BOZEMAN, MONTANA DURD AGENDA Tuesday, September 16, 2025 General information about the Downtown Area Urban Renewal District 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 comments@bozeman.net or visit the Public Comment Page prior to 12:00pm on the day of the meeting. At the direction of the City Commission, anonymous public comments are not distributed to the Board or staff. 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 Ellie Staley, ellie@downtownbozeman.org This meeting will be held both in-person and also using an online video conferencing system. You can join this meeting: Via Video Conference: Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting. Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in- person United States Toll +1 346 248 7799 Access code: 956 1935 4304 This is the time to comment on any non-agenda matter falling within the scope of the Downtown Urban Renewal District Board. There will also be time in conjunction with each agenda item for public comment relating to that 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 state whether you are a resident of the city or a property owner within the city in an audible tone of voice for the record and limit your comments to three minutes. 1 E. Special Presentation E.1 Water Adequacy for Residential Development (WARD) Ballot Education Presentation (Kohtz, Fine) F. FYI/Discussion F.1 Executive Director's September 2025 Report (Staley) F.2 Monthly Finance Report (Staley) 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 1:30pm City Board meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232. 2 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Takami Clark, Communications & Engagement Manager SUBJECT:Water Adequacy for Residential Development (WARD) Ballot Education Presentation MEETING DATE:September 16, 2025 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Listen to presentation, ask questions STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:The City of Bozeman is educating the public on a November 2025 ballot issue called the Water Adequacy for Residential Development (WARD) initiative. This initiative was created by a special-interest group and is not a policy of the City of Bozeman. It could have a significant effect on the City’s ability to provide water for future residents and businesses and may lead to a lower overall production of all types of housing. The City's effort to educate voters on this initiative is not intended to advocate for or against the initiative; rather, the educational effort is to bring to light how the initiative will affect city operations, including how the City works to accommodate the development of new housing in our community and the City’s effort to provide our community with the water it relies on. UNRESOLVED ISSUES:None ALTERNATIVES:N/A FISCAL EFFECTS:N/A Attachments: LivableBozeman Updated.pdf Report compiled on: September 4, 2025 3 4 The WARD Initiative A citizen special interest group initiative that received enough signatures to appear on the 2025 November ballot. It seeks to change the city code to require developers who seek to use cash-in-lieu of water rights for development to provide affordable housing. 5 Today, in Bozeman 6 ●As of 2024, we have 1241 affordable units built, under construction or in the pipeline ●$22.84M has been spent in subsidies on those projects ●Vacancy rates have been quoted at 12%; rent increases have slowed Growth has slowed to 1.4% after an average of 3.7% from 2013-2023 7 Building on existing programs rooted in local engagement, sustainable planning, and housing data/analysis. Our goal is to ensure that our solutions balance affordabilitywith sustainable growth tactics that support the integrity of our existing neighborhoods. A livable Bozeman for all. Developing flexible, place-based policies that make the most of available tools. 8 Background: Current Water Adequacy Policy ●Current Policy went into effect in 1984 ●Requires that projected water demand of new development be offset by one or more of these options: ○Reduce demand with water conservation systems and techniques ○Pay cash-in-lieu of water rights and City acquires the water rights ○Bring useable water rights to the City ●99% of development utilizes cash-in-lieu and is highly efficient due to being able to connect to existing city infrastructure 9 What WARD Means for Future Housing Development Allows developers to pay cash-in-lieu of water rights to the city only if the development provides 33% or more affordable housing units. If the development does not include 33% affordable units, the developer is responsible for securing water rights. 10 Alternatives if proposed ballot initiative is approved by voters 1.Access to cash-in-lieu of water rights tool becomes restricted requiring 33% of housing product be provided as affordable housing 2.Developers work to secure their own water rights,which can take anywhere from 5 to 8 years. 3.Developers can implement only on-site water efficiency or conservation measures to limit impact, with the remaining water demand coming from #1 or 2.Off-site water conservation measures option would be removed under WARD. 11 Water Facts 12 Current Water Supply Snapshot Hyalite Creek Watershed 40%Bozeman CreekWatershed 40% Lyman Spring 20% 13 Facts about Water Adequacy in Bozeman, Montana ●Bozeman is not at risk of running out of water.When a developer proposes new housing,the city must ensure there is adequate water. ●In a normal water year, Bozeman only uses 43% of its current water supply, in a significant drought year, it increases to 60%. ●Bozeman proactively manages water usage through our conservation program. ●Bozeman continues to develop and implement new water conservation measures and water supplies according to our long-term water supply plan (Integrated Water Resources Plan) 14 Development within Bozeman is Most Water Sustainable Gallons per Capita Day Water Use Bozeman = 114 GPCD Others in Montana = 163 GPCD (average) Comparable Cities = Boulder, CO: 133 GPCD Denver, CO: 140 GPCD Bend, OR: 157 GPCD Gallons per Household Day Water Use Bozeman: 188 GPHD National average: 254 GPHD Arid Western states: 314 GPHD City has the experts to efficiently develop water supply, water rights, and conservation to stay in front of development demands 15 Housing Facts 16 Facts About Affordable Housing in Bozeman ●Area Median Income (AMI) Definitions ●Past afforable housing projects required subsidies. The lower the AMI thresholds, the more subsidies are necessary ●Affordable housing is expensive to build due to rising costs of land, labor, materials, and lending ●A study we have done through the Affordable Housing Ordinance showed that developers could only designate 5% of their units as affordable –anything beyond that does not pencil out. ●The city is working with public, private, and nonprofit partners to make affordable housing a reality ●Policies are based on local data and community input, with the goal of balancing affordability, smart growth, and neighborhood character 17 WARD Impact on Housing The Initiative's requirement that 33% of housing units in new developments must be affordable housing to have access to the city’s cash-in-lieu of water rights could limit housing supply because: ○Housing developers rely on a mix of market-rate units and affordable housing units to cover the cost of building. Requiring a high number of affordable housing units will make it difficult for projects to secure financing or cover construction costs. ○If developers are not coming to Bozeman to build additional housing, the demand for housing will increase, causing prices to increase. ○Developers may look to other areas to build instead, such as the County, which may increase commuting and negatively impact the environment 18 What We Can Do Together 19 All Hands A collective solution to a sustainable future. A true partnership to address the various pressure points of housing in the city means bringing everyone to the table. Join us as we work on the Community Housing Action Plan and Integrated Water Resources Plan to plan for our future water supply and affordable housing. 20 The November 4 election Considerations 21 Remember to Vote by November 4 ●Ballots will be mailed by Oct. 17 ●Ballots should be returned by mail or dropped off at an official drop- off location ●Residents can check their registration status by visiting voterportal.mt.gov 22 Remember to Get the Facts on the WARD Initiative ●It is unlikely that this initiative will result in more affordable housing due to the high costs and 33% requirement. ●At this time, Bozeman is not at risk for running out of water, we proactively plan our water supply and emphasize water conservation to ensure current and future resident have access to water. ●There is no “silver bullet”to make housing more affordable.Another regulatory barrier creates barriers to comprehensive solutions. 23 Questions? For more information, go to engage.bozeman.net/ward 24 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:Executive Director's September 2025 Report MEETING DATE:September 16, 2025 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 topics relating to downtown. Board will discuss relevant matters. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None. Attachments: Downtown Tracking Sheet-Bus. Q3_2025.pdf Downtown Tracking Sheet-Dev. Q3_2025.pdf DBP Monthly ED Report 9-25-DURD.pdf Report compiled on: September 10, 2025 25 DOWNTOWN BUSINESS TRACKING Q3 2025 JULY-SEPT NEW DBA MEMBERS BUSINESS ADDRESS DATE OF MEMBERSHIP Wandering Buffalo Hotel and Lodge 1200 E Main - Outside Core 5-Aug Frugal Burger 113 E Main 1-Jul O'Donnell Educational Solutions 309 S 7th Ave - Outside Core 7-Aug Southwest Montana SHRM Outside Core 19-Aug NEW BUSINESSES BUSINESS ADDRESS DATE OF OPENING Frugal Burger 113 E Main Open! July 17th märketplās 33 W Main September Wandering Buffalo Hotel and Lodge 1200 E Main - Outside Core 5-Aug Meili Vodka Between Bangtail & Studio Noble (upstairs)TBA Umvelt (formerly known as Melt House)33 S Grand TBA Tutti Bene 224 E Main St 2-Sep The Stockman (bar next to Schnee's)35 E Main St TBA Café Aurore (French Bakery)105 W Main (inside of Baxter lobby)Mid-September 2025 CLOSED BUSINESS BUSINESS ADDRESS DATE OF CLOSURE Vino per Tutti 315 E Main 8/1/2025 VACANT LOCATIONS BUSINESS ADDRESS DATE OF CLOSURE Vino per Tutti 315 E Main 8/1/2025 Indira Spa & Wellness 520 E Babcock May Berkshire Hathaway HomeServices Montana Properties (side office)37 S Willson April Shredmonk 121 W Main 2023 Cooper Black (frmly DTN Antiques)122 E Main 2023 Teton Gravity Research 9 E Main April lululemon 23 E Main Sep-25 26 DOWNTOWN DEVELOPMENT TRACKING Q3 2025 July - Sept. CURRENT PROJECTS ADDRESS STATUS PROPERTY TYPE UNIT TYPE(S) NOTES (design professional, stories, etc) GRANT REIMBURSE MENTS DURD Funding $ The Baltimore/The Range 222 E Main St NOW Open!Mixed GL Restaurant-Tutti Bene Construction Walkway, GL Italian Restaurant, additional details TBA N/A Schnee (left side of business)35 E Main Nearly Complete Restaurant/ Bar Western Bar Cooper Black (Dtn Antiques)122 E Main St Nearly Complete Mixed 2 commercial, 3 residential Walkway recently removed N/A Freestone on Main 421 W Main Nearly Complete Residential 120, added Midtown and Downtown URD collab lghting project TBD Residential Incentive, Sewer Imp. Argreement, Streetscape $436,000 reimbursement funds confirmed Abby Hetherington Interiors 33 S Tracy In Progress Retail/ Commercial 1 GL, 1 UG Langlas & Graphic Haus, 2 stories Streetscape, Façade, Utility, Fire- Safety grant approved and work completed $33,000 funds confirmed for fire-line safety work completed by CKMay East Main Trading Co.702 East Main In Progress office space 1-2 individual offices spaces The Scully-Old US Bank Location 112 E Main St In Progress Mixed 7-9, 4 stories Currently running utlities, walkway to be erectd soon. Residential, streetscape 108 W Babcock 108 W Babcock Plans submitted/stre etscape deviation requested Mixed Pearson Design Group, 4 stories, proposed office/residential Mendenhall Flats 240 E Mendenhall Plans submitted Mixed Commercial, Office, 15 two and three bedroom condos Intrinsik, break ground in 2025 FUTURE PROJECTS ADDRESS STATUS PROPERTY TYPE UNIT TYPE(S) NOTES (design professional, GRANT REIMBURSE MENTS DURD Funding $ Fire Station One 30 N Rouse N/A Mixed 50 units at 120% AMI 1.6M Workforce Housing Agreement - expires Oct-2027 Block B (Salvation Army)32 S Rouse 2025/26 Hotel/Hilton Co. 191 keys, 6 stories, 137 UG parking spaces Block A 503-519 E Babcock 2025/26 Mixed 44 units, 7 stories 75 parking spaces, high-end Empire Site 606 E Main N/A Hotel Hotel Project 302 E Mendenhall 2027 Hotel Ag Depot 620-714 E Mendenhall Mixed Downtowner Building S Willson to W Main N/A Mixed Roof, brick and suppression restoration, applied for MHPG 2/29 BG Mill 714 E Mendenhall 18 condos, 5 stories NOT IN DURD Hampton Inn 507 W Main In Progress Hotel + retail 113 rooms, 3 retail, 4 stories *not in URD Sanderson Stewart Hotel Bozeman and Residences 1 W Lamme St In Progress Hotel/ Marriott 120 guest rooms, 29- two-bedroom, 5-3- bedroom, 71 keys 6 stories, Autograph Collection. *not in URD SMA Architecture 27 Downtown Bozeman Partnership – ED Report September 2025 Downtown Updates: • A HUGE shout out to our BID maintenance team for all their hard work so far this summer! It has been a BUSY summer in Downtown Bozeman! • Emily will be on maternity leave by the end of September and planning to return to work after the holiday season. • Randy Scully and Ileana Indreland were appointed for another term to serve on the BID board, term ending June 30, 2027. DURD Project Updates: • A Resolution to amend the member and composition of the Downtown URD to be in Accordance with Montana SB3 was approved by City Commission on September 9 . The DURD will now need to appoint a county and school representative and amend bylaws to be in accordance with this resolution. More to come… • The Downtown Design & Streetscape Standard has been finalized and able to view on our website under “Downtown Plans”. https://s3.us-west-2.amazonaws.com/dba-2021/COB-Downtown-Standards-A- FINAL.pdf • Downtown Trees – Twelve new trees were planted or replaced this summer between the DBP and City Forestry. Great effort on all ends to keep up with maintenance on the grates, guards and limb obstructions. Thanks to city forestry for continuously working with us on this ongoing issue. • I-Ho Peace Park – Public Bid is closed and bids have been received and opened. Working group to move forward with contractor selection and contractual steps in coming weeks. Construction to start late fall or early spring. • Downtown URD Grant Revision is underway. Full document to be presented to all downtown board members, stakeholders etc. coming soon. • Downtown Parking Update: o A Parking Vision document with focus on short- and long-term solutions is currently moving forward with Winter 2025/26 release to boards and commission. A contract to work on the core elements of this plan with a reputable marketing firm is slated to begin in the coming weeks. o An RFP for a PPP for Downtown Parking Infrastructure is in progress utilizing the Five million in DURD funding for parking infrastructure has been approved for FY26. A local legal team with civic has compiled a preliminary draft that has been shared with Amy and John for review before bringing back to the DURD board for final review and approval before public announcement though the city RFP process. City of Bozeman Updates • City Commission Meeting- Tuesday, September 16 at 6pm in City Hall, calendar link HERE. • Downtown URD – Tuesday, September 16 at 12pm at City Hall • Downtown BID – Wednesday, September 17 at 12pm at City Hall • Engage Bozeman: UDC Updates. Important dates below, calendar not final until agenda is published. o City Commission Meeting- September 23, UDC Draft Release 28 o City Commission Meeting- November 18, UDC Draft Presentation o City Commission Meeting- December 16, Final Adoption of UDC Upcoming Events: See FULL Calendar of Event HERE • September 26: MSU Homecoming Pep Rally, 6-7pm • October: PNKBZN • October 31: Downtown Trick-or-Treating, 4-6pm • November 20: Ladies’ Night, 5-8pm • November 29: Small Business Saturday • December 6: 45th Annual Christmas Stroll, 4:30-7:30pm • December 12: Winter Art Walk, 6-8pm 29 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Downtown Bozeman Partnership SUBJECT:Monthly Finance Report MEETING DATE:September 16, 2025 AGENDA ITEM TYPE:Finance RECOMMENDATION:Discuss. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers â€“ including higher densities and intensification of use in these key areas. BACKGROUND:Ellie will present the monthly finance report. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None. Attachments: URD Finance Report 9-25.pdf Report compiled on: September 10, 2025 30 DURD - September 2025 Finance Report Category FY26 Budget FY26 YTD Recent ActivityIncomeStarting Cash Balance $7,255,328 $7,255,328 ** not finalized Income from TIF COB Interlocal Share $2,598,800 Entitlement Share State of Montana $57,100 Interest Income $2,100 Other Income Total Income $9,913,328 $7,255,328 Expenses OperationsDBP Management Fee $251,000 $125,250 bi-annual remittanceCity Administrative Costs/Support $64,300Total Operations $315,300 $125,250 Infrastructure Improvements Park Improvements (Soroptimist/NBPP)$250,000 $405 $63 alpine, $279 greenspace Utility Infrastructure Improvements $1,000,000 $323,101 $323,101 5th & Main Sewer reim.Wayfinding & Parking Signage $20,000Bozeman Creek Improvements $50,000 $9,998 Alternative Transportation Projects $10,000 Tree Replacement Project (Streetscape Imp. in FY24)$10,000 Street Furniture/Streetscape Improvements & Furniture $100,000 Intersection Cable Anchor Repairs $10,000 Parklet Infrastructure $10,000 $6,048 $1497 pedlet permit fees, $4551 Langlas Streetscape Assistance Grant Program $100,000Life-Safety Grant Program $60,000Fiber-Broadband Infrastructure Grants $10,000 Art Enhancement/CPTED Grant Program $40,000Total Infrastructure $1,670,000 Housing AssistanceResidential Incentive Grant Program $400,000Workforce Housing Project - Fire Station One $1,600,000Total Housing $2,000,000 $339,552 PlanningPark Improvement Planning (Soroptimist/NBPP)$10,000 $7,270 $3942 I-Ho Park, final I-ho park expensesUtility Infrastructure Improvement Planning $50,000 Wayfinding Plan Development $10,000 Bozeman Creek Planning $50,000 $9,000 Alternative Transportation Planning $25,000 Side-Streetscape Preliminary Engineering $50,000 Parklet Planning/Program $20,000DBIP General Implementation $50,000 $4,465 $4200 morrison maierle, $120 groundprintProfessional Services Term Contract $75,000 $1,615 $1312 grant revisions Technical Assistance Grant Program $70,000 Parking - Designated FundsParking Supply, Management Planning, and Data Collection $5,000,000 Total Planning/Parking $5,410,000 $22,350 Parking Structure Garage Bond Payment $335,000Total Parking Garage Payments $335,000 $0 Total Expenses $9,730,300 $487,152 Balance $183,028 $6,768,176 31