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01-21-26 - Tax Increment Finance Board - Agendas & Packet Materials
A. 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 TAX INCREMENT FINANCE ADVISORY BOARD OF BOZEMAN, MONTANA BID AGENDA Thursday, January 15, 2026 General information about the Downtown Business Improvement 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 Emily Cope, emily@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 +1 253 205 0468 Access code: 955 3864 1712 This is the time to comment on any non-agenda matter falling within the scope of the Tax Increment Finance 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. FYI/Discussion E.1 Tax Increment Finance Board Onboarding(Newby) E.2 Introduction to Tax Increment Finance and Urban Renewal (Fine) F. Adjournment For more information please contact David Fine, Bozeman Downtown Partnership, dfine@bozeman.net This board generally meets the 3rd Thursday of the month from 12:00 to 1:30 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:Tax Increment Finance Advisory Board FROM:Mike Maas, City Clerk Alex Newby, Deputy City Clerk SUBJECT:Tax Increment Finance Board Onboarding MEETING DATE:January 15, 2026 AGENDA ITEM TYPE:Administration RECOMMENDATION:Conduct onboarding with the new TIF Board. 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:Resolution 5323 of the Bozeman City Commission, establishes standards for all appointed city boards. Section 3 provides expectations, duties and norms of behavior. Part 1 of section 3 states: Board members must participate in an onboarding program established by the City Manager. This onboarding session will provide the necessary onboarding for the new Tax Increment Finance Board. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Attachments: Citizen Advisory Board Onboarding Manual 2021-11-24.pdf Resolution 5323 Establishing Standards for Recruitment and Selection of Board Members, Standards for Communication, Expectations, Duties and Norms for all Appointed City Boards, Commissions, Agencies, and Comm (1).pdf Local Government Board Handbook.pdf Ethics Handbook version 5 May 2025.pdf Report compiled on: January 9, 2026 3 CITIZEN ADVISORY BOARD O N B O A R D I N G M A N U A L 2 0 2 1 4 A BRIEF INTRODCUTION TO CITIZEN ADVISORY BOARDS Congratulations on being appointed to a citizen advisory board for the City of Bozeman! On behalf of the City, we want to thank you for your willingness to participate in local government. This manual is intended to help you understand the scope, responsibilities, and expectations of your service. Citizen Advisory Boards have been used in American municipal government since the 1970s as a way for local governments to engage citizens in political processes that help shape policy. Their primary purpose is to provide advice from a citizen perspective. Ideally they are made up persons with diverse interests and expertise in order to bring together viewpoints that may not otherwise be heard. The City of Bozeman has set out to “broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders by restricting or combining city boards and committees to more effectively advise the City and engage the public” (Strategic Plan Section 1.2 Community Engagement). In order to achieve this goal, the Bozeman City Commission voted to consolidate some citizen advisory boards and put forth a uniform set of norms, expectations, and clearly defined duties (Resolution 5323) for all citizen advisory boards. This manual intends to expand upon Resolution 5323 so all who participate in the advisory board process clearly understand expectations, norms, procedures, and their role in city government. The first section of this manual is a resource for board members. If you, as a board member, have any further questions, please reach out to your Staff Liaison. The second half of this manual is intended for Staff Liaisons. We encourage everyone who is participating in a citizen advisory board to read both sections to get a full picture of the citizen advisory board process. Lastly, this manual is designed to be a living document and may change as necessitated. The most current version of this document will be publicly available in the City’s High Performing Boards folder within the Laserfiche repository. 5 TABLE OF CONTENTS Part 1 Board Members Agendas Meetings Board Member Expectations Advisory Board Work Plans Part 2 Liaisons and Administrative Staff Agendas Meetings Staff Expectations Appendix 1 2 3 5 6 8 8 10 11 13 6 Part One Board Members A further description of the duties of the Presiding Officer (Chair and Vice–Chair) can be found in Appendix A, Section 2 of Resolution 5323. All board members are expected to have reviewed the meeting materials in advance every meeting in order to make an informed responsible decision. Citizen Advisory Board members are appointed by the City Commission, or in some cases, by only the Mayor. This makes all board members public officers. While almost all boards have different requirements for their membership, all boards consist of a Commission Liaison, a Staff Liaison, a Chair and Vice-chair, and voting members. Their general responsibilities are as follows: Commission Liaison: It is the Commission Liaison’s responsibility to serve as the primary contact with the Board to the City Commission, assist with resolving questions regarding the role of the City Commission, Staff, and the Board, and make recommendations to the City Commission regarding the Board’s work plan. Staff Liaison: It is the Staff Liaison’s responsibility to provide logistical support to assist in the running of efficient meetings, provide subject matter expertise, and assist in Board specific training. Chair: It is the Chair’s responsibility to facilitate a productive and fair meeting. Chairs will also help the Staff Liaison in the agenda creation process. Vice-chair: It is the Vice-chair’s responsibility to be familiar with the required protocols in order to run a meeting in the absence of the Chair. We will refer to whomever is running a meeting as the “Presiding Officer”. Voting Members: Voting members need to be familiar with the items on an agenda in order to make informed decisions for our community Page 1 7 Agendas An agenda lays out meeting activities in the order they will be taken up. Meeting agendas are important for a variety of reasons. They ensure meetings are efficient and productive as well as provide notice of the topics to be discussed and actions to be considered to the public so they may participate. Agendas will be published no later than 48 hours preceding the meeting. As put forth in Resolution 5323, all agendas will follow the same general format: Call to Order This will be done by the Presiding Officer. It indicates the official beginning of the meeting. Disclosures Board members will use this time to disclose any conflicts of interest and/or any communications that may bias their ability to make a fair decision. Changes to the Agenda If an item needs to be removed from the agenda, it will be announced at this time. No action can be taken on items that were not publicly noticed so this section will never include items to be added. Public Service Announcements This time can be used to inform the public of relevant upcoming events. Approval of Minutes Minutes from past meetings must be approved by the board. It is best practice to do this at every meeting in order to keep records up to date. Consent Items Consent items are for routine business that requires little to no discussion in an effort to facilitate efficient use of meeting time. Any item may be pulled from the consent agenda for additional discussion at the request of a board member. Public Comments The agenda for a meeting, as defined in 2-3-202, MCA, must include an item allowing public comment on any public matter that is not on the agenda of the meeting and that is within the board’s jurisdiction (Local Government Board Handbook). The board cannot take action on a matter raised in Public Comment that did not appear on the agenda in advance. Page 2 8 Special Presentations This is the place for the delivery of information, does not require Board deliberation, and is not related to a specific action by the board. Action Items This is the place for all items that require a vote by the board. Generally, these items include a presentation, public comment period, discussion, and a vote (See Resolution 5323, Appendix A, Section 6). FYI/Discussion This is the place for general discussions that are not expected to lead to a decision, recommendation, or vote by the board. Primarily this is to follow-up on questions from previous items from the meeting, generally identify items that may be scheduled for future actions, or to seek additional information from staff. Adjournment This will be done by the Presiding Officer. It will indicate the official end of the meeting. Meetings Having a meeting may sound very straightforward, but there is some nuance in what constitutes a meeting. Those nuances lead to a few more questions like: “Can we have a meeting?” “What is a quorum?” & “Are we having a meeting by accident?” According to Montana’s “Open Meetings Law” (2-3-201, MCA), a quorum is legally required to conduct business. A quorum is defined in Resolution 5323 as a majority of all board members. It states “If a quorum is not present, those in attendance shall be named and the board shall adjourn to a later time” (Resolution 5323 Appendix A, Section 7). Because a quorum can be convened by either physical presence or by means of electronic equipment (2-3-202, MCA) board members must be very careful not to violate Montana’s open meetings law by discussing items via email. Meetings consist of the following elements: Roll Call / Call to Order In order to ensure there is a quorum present on the official minutes, the Presiding Officer will do a roll call in the call to order. IF a quorum is not present, then this board may not meet. Page 3 9 Voting Board members will vote on the approval of minutes, the consent agenda and any action items before the board. This requires a member of the board to make the motion and another member of the board to second the motion. Once a motion has been made and seconded, then all board members (including those who made the motioner and seconder) will vote by roll call. Roll Call Voting All votes will be done by roll call. The Presiding Officer, or Staff Liaison, will say the name of each board member present, then await for their response. The staff member who is taking minutes will record the vote for the public record. Generally, the motioner and the seconder are called first in the vote followed by the rest of the board. Voting on a consent agenda As consent items are items are routine business and require little to no discussion, a board can vote on multiple consent items at one time. To vote on multiple items at one time, the motion would read “I move to approve consent items 1-4 as submitted.” If a board member would like to remove a consent item for further discussion, the motion can be adjusted to remove that item (example: I move to approve consent items 1-2 and 4 as submitted.) The removed item will then be voted on separately after discussion. Voting on an action item Action items are voted on after a presentation, questions of presenter, public comment period and discussion. Action Items will have recommended motion language in the agenda, but that language can be adjusted. If a motion for an action item is adjusted, it will be reflected in the minutes. Voting on an amendment Amendments can be made to any motion by any member of the board. If an amendment is made to a motion, and seconded, the amendment will be voted on before the original motion is voted on. Abstaining from a vote If a conflict of interest exists for a board member, they are required to recuse themselves from an item. In the case of a meeting by digital platform, the recused member will leave the platform and await notification from the Presiding Officer or staff. As per Resolution 5323, Appendix A, Section 7(E), a board member has an obligation to vote unless there is a conflict of interest. There is no abstaining from a vote permitted. If you believe you will need to abstain, please contact the City Attorney. Page 4 10 Adjournment The Presiding Officer will officially adjourn the meeting at the conclusion of the board’s business. If there is no quorum present in the roll call, the Presiding Officer will adjourn the meeting after the roll call. Executive Sessions Executive sessions are the only time a meeting of a board or commission may lawfully be conducted privately. It is very rare for an advisory board to use executive sessions. Citizen advisory boards will only hold executive sessions in order to protect an individual’s personal privacy or when discussing litigation strategy. If your board needs to conduct an executive session and there are questions, please contact the City Attorney prior to the meeting Board Member Expectations Be prepared in advance of the meeting, be attentive, and to participate Commit sufficient time to ensure regular and punctual attendance Notify the Staff liaison and Chair as soon as they know they will be unable to attend a meeting Notify the Staff liaison of any changes to their contact information All appointed board members are expected to abide by both the City’s Code of Ethics, the State of Montana’s Code of Ethics, and Resolution 5323. In order to make informed decisions in an efficient manner, the City asks all board members, presenters and staff to: Communicating (See Resolution 5323 Section 2) The members of Citizen Advisory Boards are afforded a unique opportunity to assist in the crafting of policy for the City of Bozeman. As such, Board members shall adhere to the “one body, one voice” principle in communications related to matters under the Board’s purview. In essence, this principle is providing the actions of the board as the official stance on a matter before them. Citizen Advisory Boards are not courts and do not offer dissenting or concurrent opinions. Board member arguments for and against an item are available in the recording and the minutes of a meeting. Training Board members must complete all on-boarding, ethics, and subject matter trainings within six months of appointment. The Staff Liaison will schedule a six month check-in with newly appointed members. As availability allows, the City may provide additional trainings related to effective meetings, board specific subject matters, and diversity, equity, and inclusion. Page 5 11 Media Requests ******************************************************************** Advisory Board Work Plans Must connect to the City Commission strategic priorities. The City Commission will set their priorities and the advisory boards will create their Work Plans to assist in the accomplishment of those items. Must be finite (What is the deliverable? Recommendation on policy or prioritization between policies? Hold a specific event (i.e. clean up day)?) Must be measurable (How is success defined, was a recommendation or priority provided? Did an event happen? Did a specific work product get completed, i.e. Parks and Trails Plan?) Must be implementable (staff time and budget; boards do not allocate or appropriate funds, but may provide input on the budget process/request funding policy development/prioritization) Must be achievable within two years (large-scale, multi-year projects should be broken down into manageable sections) Commission sets two-year priorities in January after election February-March Advisory Boards develop and provide the Work Plan for acceptance by the City Commission. Why? In order to ensure that meetings are productive, stay on task, and provide meaningful advice to the City Commission, each board will design a 2-year work plan. The keys to these work plans will be the Purpose, the Focus Areas, and the Powers/Duties assigned to each board in their enabling resolution. Requirements of a Work Plan Item There are five requirements that must be met in order for an item to be included on the Work Plan. Items that are not on the accepted Work Plan, or later explicitly assigned to the advisory board, are not to be undertaken. The five requirements are: Process The Work Plan creation process will follow the general timeline of: o The Staff Liaison will off a list of suggest work plan items o The first meeting should be to discuss items for inclusion, the second meeting should be to refine the list and identify the Work Plan specifics. Page 6 12 April-May staff prepare the budget requests for City Manager recommendation; Work Plans need to be presented to the City Commission for acceptance prior to the creation of the City Manager recommended budget. June budget adopted July new fiscal year December check-in/report on progress on work plan and provide a report to City Commission. The board will review items on its Work Plan and identify those that are complete (green), in-progress (yellow), or not yet started (red). Purpose - Use board purpose as criteria for evaluation (Does this item agree with the purpose of the board? Resolution Section 2) Focus – categorized/grouped by focus areas (Resolution Section 3) Powers/Duties – does the board have the authority/specific direction (Resolution Section 4.1) Commitment Schedule (when will principle work commence, based on the commitment, what is a reasonable end?) Budget Implications (How will this item/policy/priority impact the City’s budget?) o (Facilitating) In between the two times, staff may have to analyze the requests and provide analysis of the resources available and timeline to see if the item can be crafted to meet the five criteria. o (Submitting) Work plans and reviews will be uploaded to Peak by the Clerks’ Office; liaisons are responsible to get the items to the Clerks’ Office. o Work plan will be provided for acceptance by the City Commission. Product What work plans looks like: o Time for Board (how much board bandwidth will this take?) o Time for Staff (how much staff bandwidth will this take?) Format Page 7 13 Part Two Liaisons and Administrative Staff The City Commission selects its liaisons to the various boards. The City Manager selects the Staff Liaisons, and the Staff Liaisons may designate additional admin staff to assist in the formulation and publication of agendas, production of minutes, and general logistic support for the operation of meetings. The Clerks’ Office will provide logistics training to all designated staff members to ensure continuity and consistency between boards. Agendas Staff Liaison and/or their designee(s) will prepare the agenda with collaboration from the Board Chair. Staff shall prepare an introductory cover page memo as well as all materials relevant to the matter for review by the Board. (See Section 4(A) in Res. 5323) Items for the agenda can be classified in the following categories (See Section 4(B) in Res. 5323): Public Service Announcements This is a delivery of announcements, primarily related to schedules (cancelled meetings, planned special meetings, or special events) Approval of Minutes This is the place to approve previous meeting minutes. Minutes should be approved at the next available meeting. (See Section 11 of Res 5323) Page 8 14 Consent Items This is the place for routine business that requires little to no discussion in an effort to facilitate efficient use of meeting time. Any item may be pulled from the consent agenda for additional discussion at the request of a board member. Special Presentations This is the place for the delivery of information, does not require Board deliberation, and is not related to a specific action by the board. Action Items This is the place for all items that require a vote by the board. No items not under this heading can be voted upon by the board. FYI/Discussion This is the place for general discussions that are not expected to lead to a decision, recommendation, or vote by the board. Primarily this is to follow-up on questions from previous items from the meeting, generally identify items that may be scheduled for future actions, or to seek additional information from staff. (Reminder: not every agenda will need every section. Sections with no items can be deleted from the agenda prior to publishing.) When to submit agendas Agendas are to be completed, the best of the admin staff/Staff Liaison’s ability and submitted to the Clerks’ Office by noon on the Friday prior to the scheduled meeting, in the case of the Community Development Board, or any other Monday meeting, noon on the Thursday prior. In accordance with Resolution 5323 Section 4(A), staff will make the agenda and all supporting information available to public and the board member no later than 48 hours preceding the meeting. Removing Items from an Agenda In accordance with Resolution 5323 Section 4(B) “The Chairperson or a majority of board members may remove an item from the agenda.” The method to do so shall be during the “Changes to the Agenda” section of the agenda either by the announcement of the Chairperson, or by a motion and vote of the board members. Page 9 15 Canceling a meeting If it is known in advance that a quorum will not be reached, announce the meeting cancellation; if at the scheduled meeting time a quorum is not present in accordance with Resolution 5323 Section 7(A), “those in attendance shall be named and the board shall adjourn to a later time.” Meetings All meetings shall be hosted and facilitated within the City Commission room without prior written authorization of the City Manager or their designee (See Resolution 5323, Appendix A, Section 5). Facilitating a Meeting Designated staff will facilitate the meeting through the use of the authorized software, equipment, and facilities. Staff will take attendance, call the roll, and take minutes. Currently, the City utilizes the Granicus platform for govMeetings. Meeting schedules need to be communicated to the Granicus captioning team at least 14 days in advance of the meeting. The City has and will establish its regular meetings as scheduled with the captioning team; any special meetings or cancellations will need to follow this same 14 day requirement. The live meeting operation training has been provided via the LMS and the City Clerks’ Office will provide regular updates/refreshers for new staff, or to assist those that may need a reminder of the procedures. Minutes All boards must have official minutes taken and approved. (See Rules of Procedure, Appendix A to Resolution 5323, Section 11) Staff will take the minutes live in the meeting, whether virtual or in-person, via the Granicus LiveMeeting. 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 prior to submitting minutes to the Clerks’ Office. Upon approval by the Board, staff will submit the completed minutes to the Clerks’ Office within five business days. The completed minutes shall indicate who prepared the minutes, the Board Chair, and the date of approval. Once provided to the Clerks’ Office, the approved minutes will be routed for signatures and presented to the public and the City Commission as a public service announcement on the next available agenda. Page 10 16 Calling a vote At the indication of the Presiding Officer, City staff shall call all votes by roll call, as per Resolution 5323 Appendix A, Rules of Procedure, Section 7. Adjourning Upon the conclusion of business before the Board, without objection of the Board, the Chairperson shall adjourn the meeting. Upon adjournment, City staff will end the live streaming, recording, and any virtual conferencing and return the Commission Room to its default state. Staff Expectations Staff Liaisons or their designee shall record attendance and the minutes of each meeting. Staff Liaisons shall coordinate responses to Board requests/inquiries. Staff Liaisons may prepare memos to the City Commission at the request of the board. Staff Liaisons shall coordinate with the Clerks’ Office to provide Board information publicly in the Laserfiche repository (i.e. approved minutes). Staff shall be mindful of the Norms in accordance with Resolution 5124 when communicating with the Commission Liaison on matters related to their board assignments. One of the key purposes of the consolidation process was to provide a standardized set of expectations across all advisory boards of the City. As such, the requirements of staff may have changed from past iterations of the board structure. Tracking terms The City Clerks’ Office will assist, but the tracking of terms and expirations of the individual board members shall be the responsibility of the Staff Liaison. The Staff Liaison shall notify the City Clerks’ Office immediately of any resignations and provide the written resignation for retention. The Staff Liaison shall notify the City Clerks’ Office 90 days prior to any anticipated term expiration. Communicating (See Resolution 5323 Section 2) Staff Liaisons shall act as the conduit between board members and other City staff. Staff Liaisons shall provide, or direct to be provided, the agenda and packet materials, scheduling items, and responses to inquiries to board members. Board members interaction with staff are detailed in Resolution 5323 Section 3. Staff liaisons will communicate with the Board Chairperson to the schedule of the board and developing the agenda for upcoming meetings. Page 11 17 Keep the meeting on track - while all participants are expected to keep discussions to the matter at hand, staff are uniquely qualified to identify and clarify when a discussion is moving into operational matters and no longer directed to policy advice. The Board’s purpose and focus areas from enabling resolution Any statutory requirements of the board The approved work plan and most recent annual review Specific projects that are currently underway and/or recently completed and illustrative of the Board’s work Be wary of quorums and this may require individual check-ins to avoid a meeting quorum Check-in should include the Commission Liaison and Board Chair All onboarding/training requirements must be fulfilled with this initial six months of appointment Training Staff Liaisons, with the assistance of their designated staff, shall develop informational guides related to the specific subject matters of the boards, including but not limited to: Check-in Staff Liaison’s will take lead role in scheduling the six month check-in for all new members, with City Manager approval. Page 12 18 Resolution 5323 – High Performing Boards Agenda Item – New Template (Example provided with agenda item field as text entered) Minutes – New Template (Example provided of general format based on City Commission) Work Plan & Annual Report – (Here is an old example from Bike Board and MURB; fillable template) Board Resolution - Template Roberts Rules – Cheat sheet, RR Online; additional resources are available from the City Clerk by request MSU Local Government Center’s Introduction to Parliamentary Procedure of Public Officials Online Course (free) MSU Local Government Board Handbook Appendix General Reference Materials Page 13 19 Version April 2020 Resolution 5323 Page 1 of 6 RESOLUTION 5323 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING STANDARDS FOR THE RECRUITMENT AND SELECTION OF BOARD MEMBERS, ESTABLISHING STANDARDS FOR COMMUNICATION, AND ESTABLISHING EXPECTATIONS, DUTIES, AND NORMS OF BEHAVIOR FOR ALL APPOINTED CITY BOARDS, COMMISSIONS, AGENCIES, AND COMMITTEES. WHEREAS, Article IV, Section 4.07 of the Bozeman Charter permits the City Commission to create boards, commissions, or committees as determined necessary; and WHEREAS, on April 16, 2018, the Bozeman City Commission formally adopted the Bozeman Strategic Plan via Resolution 4852; and WHEREAS, the Strategic Plan Section 1.2 Community Engagement encourages the City of Bozeman to “[b]roaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders” by “restructure[ing] or combin[ing] City boards and committees to more effectively advise the City and engage the public”; and WHEREAS, City Staff prepared a Memorandum and Proposed Plan for board restructuring, made the plan available on May 20, 2021 for public review, and provided public notice to inform the public of the opportunity to review and comment on the Proposed Plan; and WHEREAS, the City Commission held public work sessions on February 23, May 25, and June 22, 2021 during which it received and reviewed all public, written and oral testimony on the restructuring of City boards; and WHEREAS, on June 22, 2021, and in consideration of such testimony, the City Commission confirmed direction for City Staff to move forward with restructuring the City’s advisory boards; and DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 20 Version April 2020 Resolution 5323 Page 2 of 6 WHEREAS, Strategic Plan Section 7 High Performance Organization states, “[w]e operate as an ethical high performance organization, anticipating future needs, utilizing best practices, and striving for continuous improvement.” WHEREAS, the Commission intends by this Resolution to establish standards for the recruitment and appointment of board members, establish standards for how board members will communicate with the Commission and individual members of the Commission and City staff (“High Performing Boards”)to increase efficiency and efficacy of advisory board input; and WHEREAS, High Performing Boards aim to formalize and streamline communications between the City Commission, advisory boards, the City Manager, and the public; and WHEREAS, High Performing Boards aim to achieve policy driven decision-making; and WHEREAS, High Performing Boards aim to create consistency, predictability, and stability by clearly defining duties, norms, and expectations; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: SECTION 1: Membership, Recruitment, & Appointment 1) Membership: Membership is established in the resolutions, ordinances, or statutes establishing each Board’s structure, including any mandatory member qualification. Additional membership requirements include: a) Board Members may only serve in one City appointed position at a time; b) The balance of an unexpired term served by an appointee shall be considered a “term” if such unexpired term exceeds 50% of the full term; c) Upon completion of a gap in service equal to a position’s full term, a former member may be eligible for re-appointment; and d) Appointments should be made during a regular meeting in January. 2) Recruitment: Commissioners, Board Members, and the City Manager are encouraged to actively recruit qualified members to apply. During the recruitment process, the City will focus on diversity, equity, and inclusion, and will actively work to achieve membership that reflects, at the least, the demographics of our community – as outlined in, but not limited to the gaps analysis and equity indictors report and available census data – across all board membership. Formal recruitment will occur by three methods: a) Vacancies will be posted in the lobby of City Hall and on the City’s website; DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 21 Version April 2020 Resolution 5323 Page 3 of 6 b) Biannual active solicitation period, as prescribed in Section 4.07 of the City Charter; and c) As necessitated by vacancies. 3) Review: The review of applicants shall occur by a panel consisting of the assigned Commission Liaison, Board Chair, and the City Manager’s assigned staff liaison: a) Interview questions must ensure applicants receive a fair comparison with other candidates and will focus on potential conflicts of interest, compliance with norms of conduct, including but not limited to decorum, communications, and the concept of acting as a body with one voice; and b) Evaluation criteria must consider the City’s goals related to diversity, equity, and inclusion, the duties and purpose of the individual board, and any membership requirements in enabling legislation or law. 4) Appointment: All Board appointments will be made by the City Commission except for appointments authorized by law to be made by the Mayor. Board Officers (Chair & Vice- Chair) shall be appointed by the City Commission SECTION 2: COMMUNICATIONS 1) The Boards shall receive direction from the City Commission via pursuant to the Commission’s bi-annual goal setting, requested assigned work priorities, or other specific direction as the Commission may provide; 2) A board’s annual work plan must align with the Commission’s adopted Strategic Plan 3) The Board should communicate with the Commission only through approved minutes, work plans, progress reports, or formal recommendations/resolutions voted on by the Board; 4) Board chairs shall communicate with the Staff Liaison on matters related to the Board’s operations and the board’s agenda; 5) Board Chairs should direct policy related questions to both the Commission Liaison and Staff Liaison; 6) Board Members shall adhere to the “One Body, One Voice” principle in communications to the City Commission on matters under the Board’s purview, or may become under the purview of the Board. 7) City Staff will develop minutes that the Board will review and approve; minutes shall be provided to the City Commission and made available to the public. SECTION 3: EXPECTATIONS, DUTIES, AND NORMS OF BEHAVIOR Norms for Board Members are modeled upon the City Commission’s Norms Policy as presented in Resolution 5124, and the Rules of Procedure are modeled upon Chapter 2, Article 2, BMC (See Exhibit A), and are incorporated herein. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 22 Version April 2020 Resolution 5323 Page 4 of 6 1) Training of Board Members: Board Members must participate in an onboarding program established by the City Manager. a) The training will include, but is not limited to: i) General onboarding: Boards procedures, open meetings, public records, process, and requirements, and expectations; ii) Purposes and focus areas of the Board to be presented by the Staff Liaison; iii) “Effective Meetings” – a training to assist Board Members in conducting an efficient and effective meeting; iv) Ethics: Initial ethics training upon appointment and annual ethics training as required by the Charter; and v) Diversity, Equity, and Inclusion: Training focusing on various DEI topics including, but not limited to, implicit and unconscious bias, anti-harassment and anti- discrimination; accessibility; and DEI in institutions, workforces, and local government. b) Board Members must complete onboarding and training within six months of the appointment of any member; and c) Board Members must participate in a six-month check-in with the Staff Liaison and Commission Liaison. 2) Duties: a) Commission Liaison has the following duties: i) Lead the interview of applicants; ii) Serve as the primary contact with the Board for the City Commission; iii) Assist with resolving questions regarding the role of the City Commission, City Manager, Staff Liaison, and the Board; iv) Serve as contact rather than an advocate, unless assigned as a voting member; v) Review the Board’s work plan and make recommendations to the City Commission regarding the Board’s work plan; vi) Support efficient Board operations; and vii) Assist training of new board members. b) The Presiding Officer has the following duties: i) Act as meeting facilitator; ii) Maintain a tone of civility during debate; iii) Ensure the public has a meaningful opportunity to participate, and that meetings operate fairly and impartially; and iv) Ensure the Board’s questions and discussion are germane to the issues presented. c) Board Members have the following duties: i) To ensure the Board has a quorum at all meetings, and commit sufficient time to ensure regular and punctual attendance; ii) Be prepared, attentive, and participate; DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 23 Version April 2020 Resolution 5323 Page 5 of 6 iii) Abide by Rules of Procedure, Norms of Behavior, and the City and State Codes of Ethics; iv) Notify the Staff Liaison as soon as they learn they will not be able to attend a meeting and of any changes to contact information. d) Staff Liaison and/or their designee(s) will prepare the agenda with collaboration from the Board Chair. 3) Norms of behavior: a) Board Members are encouraged to share their experience and knowledge with new members; b) Board Members should treat all city employees with respect, and in doing so recognize staff in performing their work strive to always serve the public to the best of their abilities; c) Board Members should be mindful of arguing or debating the merits of staff's professional judgment; rather, should Board Members disagree with staff’s professional judgment, they should direct such disagreement to the Staff Liaison; in the event that the Staff Liaison is subject to the disagreement, Board Members should direct their concerns to the City Manager; d) Board Members must seek to ensure staff recognizes the Board Member's questions are for purposes of inquiry only and should in no way be taken as an order, a request to take action, or a directive; e) Board Members should not use language or communication methods that a reasonable person would find humiliating, intimidating, hostile, or offensive; f) A Board Member may not take any action that could be construed as a directive or order to staff; g) A Board Member must not attempt to pressure or influence discussions, recommendations, workloads, schedules, or department priorities absent the approval of the City Manager and only then upon an action of the majority of the City Commission; h) Board interaction with staff during board meetings: i) Criticism of staff by a Board Member should be made in private to the City Manager. Board Members are encouraged to provide commendation to staff in public; ii) Board Members may not direct or issue orders to staff; iii) Board Members may direct questions regarding the factual basis for an item or a question soliciting staff expertise to the City employee presenting the item; questions other than those directly related to the factual basis of an agenda item should be directed to the Staff Liaison who may request the assistance of other city employees in answering the question. i) Specific provisions for Board Member's attendance at meetings other than board meetings: i) Board Members may not attend staff meetings unless requested by the City Manager; DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 24 Version April 2020 Resolution 5323 Page 6 of 6 ii) Board Members’ conduct at public meetings or other events should be informed by this Resolution and the Code of Ethics. Board Member attendance at public meetings called by staff or City Manager should not occur unless requested by the City Manager. j) All appointed members of City boards or committees should be mindful of the prohibition regarding interference with administration. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 10th day of August, 2021. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 25 Appendix A Rules of Procedure Section 1 Applicability A. These rules shall govern the conduct of all City of Bozeman boards, commissions, agencies, and committees (hereinafter "boards") where a majority of members are appointed by the City Commission and shall supplement other governing rules of the board. B. These rules are supplementary to the provision of Title 7, Chpt. 1, Part 41, MCA, Title 7, Chpt. 5, Parts 41 and 42, MCA, and Title 2, Chpts. 2 and 3, MCA as they relate to procedures for conducting meets and public hearings before City boards. Section 2 Chairperson and Vice Chairperson – Powers and Duties A. The City Commission will appoint the Chairperson and Vice Chairperson for the year within one month of the start of new members’ terms. B. The recording secretary shall be any staff member assigned by the Staff Liaison. C. The Chairperson shall be the Presiding Officer of the board. D. During the absence of the Chairperson, the Vice Chairperson shall discharge the duties and exercise the powers and authority of the chairperson. E. The Presiding Officer shall preserve strict order and decorum at all meetings and confine members in debates to the question under consideration. F. The Presiding Officer may move or second any item of business then before the board. G. The Presiding Officer shall state, or cause to be stated, every motion coming before the board, announce the time for a roll-call vote to be announced by the recording secretary, announce the decision of the board on all subjects, and decide all questions of order, subject, however to an appeal to the board, in which event a majority vote of the board members present shall govern and conclusively determine such question of order. H. The Presiding Officer shall vote on all questions. Section 3 Parliamentary Authority A. Unless otherwise specifically provided herein or by ordinance or statute, all meetings and hearings of the boards shall be conducted in accordance with these rules. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 26 B. In all cases not covered by these rules, the controlling parliamentary authority shall be the latest edition of Robert's Rules of Order, Newly Revised. Section 4 Meeting Agendas A. The Staff Liaison, or their designee, shall arrange a list of matters to be brought before the Board according to the order of business specified herein, and furnish each member and the public through the City's website with a copy of the agenda and all supporting information no later than 48 hours immediately preceding the meeting for which that item has been scheduled. All material to be presented to the board for consideration with an agenda item shall be made available to the public within the above time frame. Copies of the agenda shall be available from the City Clerk and one copy shall be posted at the designated posting board in the City Hall for public viewing and made available on the City's website. Pursuant to Section 7-1-4135, MCA, the City Commission designates as the official posting place for all boards the posting board in the lobby of City Hall located at 121 North Rouse Avenue, Bozeman, Montana. B. The Staff Liaison shall prepare the meeting agenda and may consult with the Commission Liaison or the Board Chairperson in preparing the agenda. The Chairperson or a majority of board members may remove an item from the agenda. The agenda shall be in substantially the following form: a. Call to Order b. Disclosures c. Changes to the Agenda d. Public Service Announcements e. Approval of Minutes f. Consent Items g. Public Comments h. Special Presentations i. Action Items j. FYI/Discussion k. Adjournment Order of the above may be adjusted by the Presiding Officer. Section 5 Meetings All meetings of the Board shall be open to the public unless authorized by law. Prior to closing any meeting of the Board, the Chairperson and Staff Liaison shall consult with the City Attorney. A. Regular Meetings DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 27 a. Boards shall hold a regular meeting once a month or no less than quarterly as directed in their establishing documents. b. Any meeting of the Board may be adjourned to a later date and time, provided that no adjournment shall be for a longer period than until the next regular or specially scheduled meeting. c. The Staff Liaison, Presiding Officer, or majority of the Board may cancel a regular meeting if no business is scheduled for that meeting. B. Public Hearings a. Public Hearings are meetings required of some citizen advisory boards to be held as a public hearing pursuant to law. The provisions of Section 5.A apply to Public Hearings. b. Unless prohibited by law, a public hearing may be rescheduled or adjourned to a specific later date and time. C. Executive Sessions a. Executive Sessions are meetings of the Board with the purpose to discuss litigation strategy, a matter of individual privacy, or other matters wherein a meeting may be closed pursuant to law and will be scheduled as needed. b. Although each Executive Session will commence as an open public meeting, Executive Sessions may be closed to the public pursuant to authority and limitations in Title 2, Chpt. 3, Part 2, MCA. c. An Executive Session may be called at any time during any meeting if authorized by law. D. Special Meetings a. The Staff Liaison, Presiding Officer, or a majority of the board may call Special Meetings of the board, upon at least forty-eight (48) hours’ notice to each member personally served on each member through email or left at the member’s usual place of residence. b. Notice shall also be made to the public by, at a minimum, posting the agenda on the City’s website and posting board at least 48 hours prior. E. Subcommittees a. Subcommittees shall only be formed with the express authorization of the City Commission. b. Subcommittees shall be limited to a period of time not to exceed six (6) months or until the completion of an assigned specified task. Section 6 Order of Presentation/Public Participation A. The order of presentation in which items are presented to the board shall generally be as follows: DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 28 a. The Staff Liaison, or their designee, shall present the agenda item to the Board, if appropriate. b. If applicable, the Staff Liaison may present a background report on the matter for discussion. Upon conclusion of a staff presentation, board members may ask questions of staff for the purposes of understanding and clarification. If the agenda item is a public hearing, the Presiding Officer will open the public hearing prior to staff presentation. c. If applicable, comments from the applicant, or the applicant's agent, shall be heard. The applicant's presentation/testimony is limited, subject to the discretion of the presiding officer, to ten (10) minutes. d. After being recognized by the Presiding Officer, a board member may direct questions to the staff or applicant. e. Members of the audience or their agent may be invited to present testimony or evidence. To be recognized, each person desiring to give testimony or evidence shall step forward and, after being recognized, give their name and place of residence for the record. The Presiding Officer may establish a timeframe for each public comment, typically three (3) minutes per speaker and each speaker will be afforded the same allotment of time. The Presiding Officer may lengthen or shorten the time allotted for public testimony. f. After being recognized by the Presiding Officer, a board member may direct questions to any person so testifying for purposes of clarification, g. Following public comment, the Staff Liaison shall be given the opportunity to comment on any testimony or other evidence. h. Following staff comment and if a public hearing, the applicant will be given the opportunity to rebut or comment on any testimony or other evidence. The applicant's comments and rebuttal is limited, subject to the discretion of the presiding officer, to five (5) minutes. i. If a public hearing, following applicant rebuttal and any further questions, the Presiding Officer will close the hearing and bring the agenda item forward for discussion, motion and vote. j. If a public hearing, after being recognized by the Presiding Officer, a board member may direct questions limited to the rebuttal testimony and evidence. k. The recording secretary shall enter into the record all correspondence that has been received but was not yet provided. l. Unless required to act by a certain date pursuant to law, the Board may continue the discussion to a date certain, close discussion and vote on the matter, or close the discussion and continue the vote to a date certain. B. All testimony and evidence shall be directed to the Presiding Officer. No person, other than a board member and the person recognized as having the floor shall be permitted to DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 29 enter into the discussion. No questions shall be asked of a board member except through the presiding officer. C. The Board may ask the Staff Liaison for their recommendation. D. If a public hearing, in the event the applicant does not appear at the scheduled time and place, unless the applicant has waived his or her appearance in writing, and which waiver has been accepted, or unless the matter is submitted as a consent item, the matter shall be continued to the next available regular meeting, public hearing date, or other date certain. E. For all public hearings involving land use and annexation decisions, the Board will wait a minimum of one week before making a decision whenever requested by a member unless a decision is required due to a statute, ordinance or other law. Agreement with staff’s written findings is an acceptable method of presenting findings. F. Witnesses may be required to testify under oath. G. The Board shall not be bound by the strict Rules of Evidence and may exclude irrelevant, immaterial, incompetent or unduly repetitious testimony or evidence. H. The Presiding Officer shall rule on all questions relating to the admissibility of evidence with advice from the City Attorney, which ruling may be overruled by a majority vote of the Board. I. A public hearing which has been formally closed for all public input may not be reopened and no additional evidence or testimony from the public shall be received or considered except as provided herein. If additional information is required from the public before a decision can be made, the Board upon motion duly made, seconded and passed, may call for an additional public hearing which hearing shall be noticed as required by law, specifying date, time place and subject matter of hearing. This paragraph does not preclude the Board, after the public hearing, from asking questions of staff, receiving additional evidence from staff or, after a hearing held on a preliminary plat, pursuant to Title 76, Chpt. 3, MCA, from consulting the subdivider about conditions or other mitigation required of the subdivider. Upon decision by the Presiding Officer, or upon a duly adopted motion of the board to reopen the public hearing prior to close of the agenda item in which the hearing was held, the requirement to provide public notice does not apply; the public hearing may be reopened and the additional input provided prior to a final decision on the item. Section 7 Quorum and Voting A. Unless otherwise provided by law, a quorum shall consist of a majority of all board members. If a quorum is not present, those in attendance shall be named and the board shall adjourn to a later time. B. The recording secretary shall reduce motions to writing and, upon request, shall read a motion prior to the vote. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 30 C. All votes shall be made by roll-call. D. Upon every vote, the outcome shall be stated and recorded. E. A board member has an obligation to vote unless there is a conflict of interest. F. Email, telephonic, or proxy voting shall be prohibited. Section 8 Rules of Debate/Reconsideration/Conflict of Interest A. Every board member desiring to speak shall address the Presiding Officer and upon recognition by the Presiding Officer, shall confine discussion to the question under debate, avoiding all personalities and indecorous language. B. A board member, once recognized, shall not be interrupted when speaking unless the member is to be called to order, or as herein otherwise provided. If a board member, while speaking is called to order, they shall cease speaking until the question of order be determined, and, if in order shall be permitted to proceed. C. Order of rotation in matters of debate or discussion shall be at the discretion of the Presiding Officer. D. A motion to reconsider any action taken by the Board must be made on the day such action was taken. It must be made either immediately during the same session, or at a recessed and reconvened session thereof. Such motion shall be made by one of the prevailing side, but may be seconded by any member, and may be made at any time and have precedence over all other motions or while a board member has the floor. It shall be debatable — nothing herein shall be construed to prevent any board member from making or remaking the same or any other motion at a subsequent meeting of the board, but the matter must be duly scheduled as- an agenda item. E. Pursuant to the City' s Code of Ethics, a board member may seek the advice of the City Attorney as to whether the member has a conflict of interest pursuant to law. If the board member is advised there is a conflict of interest, the member shall recuse themselves, step away from the meeting table, and refrain from discussion and vote on the matter. F. After a motion, duly made and seconded, by the board, no person shall address the board without first securing the permission of the Presiding Officer. Section 9 Open Meetings and Email A. Except for properly called executive sessions as permitted by state law, all meetings of the board shall be open to the public and media, freely subject to recording by radio, television and photography at any time, provided that such arrangements do not interfere with the orderly conduct of the meetings. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 31 B. A majority of the Board shall not conduct synchronized email discussions involving a matter over which the board has supervision, control, jurisdiction, or advisory power. Synchronized email discussions are email exchanges among a majority of board members within minutes of each other that create the quality of simultaneity similar to instant messaging or chat room discussions. Such discussions are characterized as an active exchange of information rather than the passive receipt of information. An example of synchronized email discussion would be a majority of board members sitting at their computers and instantly exchanging emails concerning board business, whereas a passive receipt of information is where a board member receives an email and responds in the normal course of time similar to responding by letter received in the mail. The Board shall not view emails or other electronic communication mechanisms concerning any matter on the agenda during a board meeting unless the submission is part of a specifically approved and adopted electronic public testimony program. Electronic communication mechanisms include text messaging or any other emerging technology that violates the spirit of open meeting laws. This does not preclude viewing emails or electronic communication mechanisms that were received prior to the board meeting. Emails received by board members concerning an agenda item shall be forwarded to the staff liaison or board secretary and retained in accordance with the City's retention policy. Section 10 Decorum A. While the Board is in a session, board members must preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or interrupt the proceedings or the peace of the Board nor disturb any member while speaking or refuse to obey the orders of the board or its Presiding Officer. B. Any person making personal, impertinent or slanderous remarks or who shall become boisterous while addressing the board may be denied farther audience with the board by the presiding officer, unless permission to continue is granted by a majority vote of the board. C. The Board shall not debate, in a heated or argumentative manner, with a member of the public presenting testimony during a meeting. D. Speakers shall only address the agenda item before the Board. Any person speaking on an agenda item not before the Board may be called out of order. Section 11 Recording of Meetings and Minutes A. The recording secretary shall prepare a summary of all meetings to be known as the “Minutes” and to be approved by the Board. It shall not be necessary to formally read out DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 32 loud the Minutes prior to approval. The Staff Liaison or Board Secretary may revise such Minutes to correct spelling, numbering, and other technical defects. Prior to approval, any board member may request the privilege of amending or correcting the Minutes to accurately reflect the substance of the prior meeting. If objection is made by any board member to such amendment or correction, a majority vote of the board shall be necessary for adoption of the correction or amendment. The approved minutes shall be forwarded to the City Clerk's office for posting within a month of the meeting in which they were approved. B. Executive Session Minutes. Executive Session Minutes shall be taken and prepared by the Board Secretary. The Board shall approve the minutes of an executive session in open meeting; provided, however that any discussion concerning the contents of the minutes, prior to approval, shall be conducted in executive session. The Staff Liaison or Board Secretary will distribute the draft executive session minutes to the members in a manner that ensures and retains confidentiality. The Board shall follow the provision 2. 02. 130, BMC related to dissemination of executive session minutes. C. At the discretion of the Board and City Clerk's office, meetings shall be televised, broadcast, and/or a video or audio recording made. Audio or video recordings shall be made available to the public unless required to be kept confidential by law. Section 12 Attendance at Meetings/Removal by City Commission/Terms A. All board members are expected to contribute the time necessary to fulfill their fiduciary obligations to the Board. All board members are required if they are to be absent from a meeting to contact the Presiding Officer and the Staff Liaison prior to the meeting. If prior contact is made, the absence will be determined excused. If a board member fails to contact the Presiding Officer or Staff Liaison prior to the meeting, the absence will be considered unexcused. The City Commission and City Manager will be notified by the Staff Liaison of any board member with more than one unexcused absence in any calendar year. The Board, via motion and vote, may forward to the City Commission the name of any board member having three or more excused absences, or a combination of excused and unexcused absences. As provided by law, the City Commission may remove a board member for excessive absences. B. A board member’s term may be extended for up to 30 days after term expiration on a case by case basis by the City Clerk’s Office if the board member has reapplied for a subsequent term but the application process has not yet been heard by the City Commission. C. All terms shall expire on December 31 of their given year. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 33 Section 13 Compliance with the City Code of Ethics A. All board members are required to follow State ethics laws regarding appointed officials and the City of Bozeman Code of Ethics. B. New board members will receive the City of Bozeman ethics handbook and must sign a form acknowledging receipt of the handbook and affirm they will uphold the state and city ethics codes. C. Board members are also required to attend City sponsored Ethics Training. Non- compliance with the City Code of Ethics and training requirements may result in removal of a board member. See the City Code of Ethics for more details. Section 14 Compliance with the City Purchasing Policy A. All boards are subject to the City purchasing policy (Administrative Order 2009-06), as revised, unless specified by law. B. City Staff Liaisons shall handle financial transactions unless specific arrangements have been made in writing through the City Controller. C. Boards shall not appropriate money unless specifically authorized by statute. Section 15 Compliance with State Records Retention Policy A. All City boards are subject to the State of Montana records retention policy. B. The City Clerk’s Office will handle retention of all agendas, minutes, and board resolutions once they have been forwarded to the Clerk’s Office. C. E-mails, websites and social networking sites are subject to adopted records retention schedules. For social media and websites, please refer to the current Information Technology Social Media Use Policy for further guidelines. D. Individual members are responsible for preserving communications that are potentially subject to the Right to Know provisions of Montana’s State Constitution (Art. II, Section 9) and may be considered a “public record” pursuant to Title 2, Chpt. 6, Montana Code Annotated. As such, these emails, its senders and receivers, and the contents may be available for public disclosure and will be retained pursuant to the City’s record retention policies. Emails that contain confidential information such as information related to individual privacy may be protected from disclosure under law. DocuSign Envelope ID: EFA8B98A-9F9D-4D9D-8976-89AD726CA766 34 Montana Local Government Board Handbook A Guide to Serving on Boards, Districts, Commissions and Committees Editors: Paul Lachapelle Dan Clark Blake Christensen Contributing Authors: Jennifer Anderson Blake Christensen Dan Clark Tim Fine Paul Lachapelle Nori Pearce Abbie Phillip Betsy Webb Micky Zurcher A PUBLICATION OF THE LOCAL GOVERNMENT CENTER Publication No: 4597 2016 Edition 35 Contact Information Montana State University Extension Local Government Center P.O. Box 172240 Bozeman, MT 59717-2240 Phone: (406) 994-6694 http://msulocalgov.org Order Information Montana State University Extension Distribution Center P.O. Box 172040 Bozeman, MT 59717-2040 Phone: (406) 994-3273 http://store.msuextension.org Special thanks to: Harold Blattie, Ashley Kent, Marija Greenlee, and Cole O’Brien for their assistance in creating this publication. With the purchase of this publication, a one-time only downloadable pdf is available through the MSU Extension store (http://store.msuextension.org). Search for the Montana Local Government Board Handbook-downloadable version, 4597E, and enter the promotional code LGC4597 at checkout. The pdf is provided for the exclusive use of the purchaser of this publication, and may not be redistributed in any way. For checkout and order information, contact orderpubs@montana.edu or (406) 994-3273. Publication Number: 4597 The U.S. Department of Agriculture (USDA), Montana State University and the Montana State University Extension Service prohibit discrimination in all of their programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital and family status. Copyright © 2016 Montana State University Extension Image of Glendive City Hall, Larry D. Moore CC BY-SA 3.0. All other images, iStock 36 3 Table of Contents INTRODUCTION .....................................................................................................................................7 1. OVERVIEW OF BOARDS, DISTRICTS, COMMITTEES, OR COMMISSIONS IN MONTANA .....8 General Board Statutes ...................................................................................................................................10 Oath of Office ................................................................................................................................................11 Resolutions Guiding Boards ...........................................................................................................................11 Special Districts ..............................................................................................................................................12 Creation of Special Districts Administration of Special Districts Alteration of Special Districts Dissolution of Special District 2. LEGAL ISSUES FOR BOARDS ...........................................................................................................14 Right to Know, Right to Participate ...............................................................................................................14 by Paul Lachapelle Open Meetings Law Notice and Opportunity to be Heard Meeting Minutes Privacy Issues Code of Ethics Nepotism Ex Parte Communications Public Records Management Reporting Board and Board Member Liability ................................................................................................................18 by Paul Lachapelle Human Resources Considerations ..................................................................................................................19 by Betsy Webb Discrimination Wrongful Discharge Confidentiality 3. HOW TO MAKE YOUR BOARD MEETINGS MORE EFFECTIVE .................................................21 Preparing for your Meeting ............................................................................................................................21 by Paul Lachapelle Parliamentary Procedure and Robert’s Rules of Order ....................................................................................21 by Dan Clark How to Use Motions Presenting a Motion Procedures for Voting on a Motion Vocabulary used in a Board Meeting Ground Rules .................................................................................................................................................26 by Paul Lachapelle and Dan Clark Principles of Good Governance ......................................................................................................................27 by Paul Lachapelle Facilitator Competencies for the Chairperson or Presiding Officer .................................................................28 by Jennifer Anderson The Facilitator’s Role Principles of Effective Facilitation Stages and Tasks of Facilitation 37 4 Does our Board Need By-Laws? .....................................................................................................................31 by Dan Clark 4. LEADERSHIP AND TEAM-BUILDING SKILLS ...............................................................................32 What is Leadership? .......................................................................................................................................32 by Abbie Phillip Building Leadership Capacity Understanding the Stages of Group Development Recruiting and Mentoring New Members ......................................................................................................34 by Betsy Webb Conflict Management ....................................................................................................................................35 by Betsy Webb Sources of Conflict Conflict Strategies Working with Different Conflict Styles Shifting to a Learning Stance What if the Board gets Stuck? The Importance of Public Trust ......................................................................................................................39 by Blake Christensen Understanding Personality Traits ....................................................................................................................41 by Nori Pearce Generational Issues .........................................................................................................................................42 by Nori Pearce Youth Participation.........................................................................................................................................45 by Micky Zurcher Avoiding Stagnation and Creating New Ideas .................................................................................................46 by Tim Fine and Betsy Webb Creating New Ideas through Brainstorming Strategic Board Planning ................................................................................................................................48 by Paul Lachapelle Letting your Board ‘SOAR’ (Strengths, Opportunities, Aspirations, and Results) Evaluating Progress: Identifying Indicators and Reaching your Goals 5. MONTANA BOARDS, DISTRICTS, COMMISSIONS, AND COMMITTEES .................................50 Airport ...........................................................................................................................................................50 Airport Appeals Board ...............................................................................................................................50 Airport Board ............................................................................................................................................50 Municipal Airport Authority .....................................................................................................................51 Regional Airport Authority........................................................................................................................51 Economic Development / Infrastructure ........................................................................................................52 Business Improvement Districts ................................................................................................................52 Rural Improvement Districts .....................................................................................................................52 Special Improvement Districts ...................................................................................................................53 Television District .....................................................................................................................................54 Local Port Authority ..................................................................................................................................54 Regional Port Authority ............................................................................................................................55 Local Improvement Districts .....................................................................................................................55 Technology Districts..................................................................................................................................55 Industrial Districts ....................................................................................................................................55 Museum and Facilities for the Arts Board ..................................................................................................55 38 5 Elections ........................................................................................................................................................56 Board of County Canvassers ......................................................................................................................56 Fair .................................................................................................................................................................56 Fair Commission .......................................................................................................................................56 Multi-County Fair Districts .......................................................................................................................56 Joint Fair and Civic Center Commission ...................................................................................................56 Fire .................................................................................................................................................................56 Fire Hydrant Maintenance Districts ..........................................................................................................56 Rural Fire Districts ....................................................................................................................................57 Fire Service Area ........................................................................................................................................57 Governance ....................................................................................................................................................58 Community Councils ................................................................................................................................58 County Compensation Board ..................................................................................................................58 Health ............................................................................................................................................................59 Solid Waste Management District .............................................................................................................59 Hospital Districts ......................................................................................................................................59 Health Care Facilities Commission ............................................................................................................59 County Boards of Health ..........................................................................................................................60 City Boards of Health ...............................................................................................................................60 City-County Boards of Health ..................................................................................................................61 District Boards of Health ..........................................................................................................................62 Housing and Building ....................................................................................................................................62 County Building Commission ...................................................................................................................62 County Housing Authority .......................................................................................................................63 Municipal Housing Authority ...................................................................................................................63 Land Use and Planning ..................................................................................................................................64 County Board of Park Commissioners ......................................................................................................64 County Park District .................................................................................................................................64 Municipal Board of Park Commissioners ..................................................................................................64 Cemetery Districts ....................................................................................................................................65 County Tax Appeal Board .........................................................................................................................65 County Planning Boards ...........................................................................................................................66 City Planning Boards ................................................................................................................................66 City-County Planning Boards ...................................................................................................................67 Joint or Consolidated Planning Boards ......................................................................................................68 County Planning and Zoning Commission ...............................................................................................69 County Zoning Commission ....................................................................................................................69 County Zoning Board of Adjustment ........................................................................................................70 Municipal Zoning Commission ................................................................................................................70 Municipal Zoning Board of Adjustment ....................................................................................................70 Open Space Commission ..........................................................................................................................71 Conservation District ................................................................................................................................72 Library ...........................................................................................................................................................73 Library Board ............................................................................................................................................73 Public Library District ...............................................................................................................................73 Livestock and other Animals ..........................................................................................................................74 Rodent Control District ............................................................................................................................74 Mosquito Control Board ...........................................................................................................................74 Grazing District ........................................................................................................................................74 Livestock Protective Committee ................................................................................................................75 39 6 Cattle Protective District ...........................................................................................................................75 Schools ...........................................................................................................................................................76 Elementary School Districts ......................................................................................................................76 High School Districts ................................................................................................................................76 K-12 School Districts ................................................................................................................................77 Taxation .........................................................................................................................................................77 Resort Area District ...................................................................................................................................77 County Land Advisory Board ....................................................................................................................78 Transportation ................................................................................................................................................78 Urban Transportation District ...................................................................................................................78 Transportation Improvement Authority .....................................................................................................79 Railway Authority .....................................................................................................................................79 Parking Commission .................................................................................................................................80 Aerospace Transportation and Technology District ....................................................................................80 County Transportation Committee ...........................................................................................................80 Water .............................................................................................................................................................81 Regional Resource Authority .....................................................................................................................81 Metropolitan Sanitary and/or Storm Sewer Districts .................................................................................82 County Water and/or Sewer Districts ........................................................................................................82 Local Water Quality District .....................................................................................................................83 Regional Water and Wastewater Authorities ..............................................................................................84 Irrigation District ......................................................................................................................................84 Drainage District .......................................................................................................................................85 Conservancy District .................................................................................................................................86 Weeds.............................................................................................................................................................87 Weed District ............................................................................................................................................87 Additional Information ..................................................................................................................................88 Organizations / Associations ......................................................................................................................88 State Agencies ............................................................................................................................................88 APPENDIX 1: NEGOTIATION STYLES ................................................................................................90 APPENDIX 2: SAMPLE BYLAWS ...........................................................................................................92 ABOUT THE AUTHORS .........................................................................................................................95 List of Tables Table 1: Principal Boards, Districts, Committees, or Commissions in Montana ...............................................9 Table 2: Common Motions Used in a Board Meeting ....................................................................................24 Table 3: Principles of Good Governance .........................................................................................................27 Table 4: Generational Timeline with Terms and Corresponding Years. ...........................................................42 Table 5: Personal, Lifestyle, and Workplace Characteristics by Generation .....................................................43 Table 6: The Five Steps of Strategic Visioning .................................................................................................49 40 7 INTRODUCTION This 2016 edition of the Montana Local Government Board Handbook is the result of new faces and energy at the Montana State University (MSU) Local Government Center (LGC). With additional editorial assistance from LGC Director Dan Clark and Associate Director Blake Christensen, this newly-revised and expanded Handbook is the result of nearly 10 years of work teaching across Montana, addressing questions from board members and elected officials, and reviewing and evaluating curricula used in other states. For this new edition, we have again assembled a group of highly-qualified Montana State University Extension educators and other professionals with experience and motivation to write and teach on the subject of local government board governance. This updated Handbook contains five sections. The first section contains a summary of the principal boards in Montana, explanation of general board statutes, use of resolutions guiding boards, and statutes pertaining to special districts. The second section presents information on how to serve on a board including short summaries of pertinent laws in Montana including open meetings, code of ethics, nepotism, discrimination, wrongful discharge, ex parte consultations, and board liability. Section three offers guidelines for conducting board meetings with an emphasis on parliamentary procedure, ground rules, facilitator competencies, and use of by-laws. The fourth section addresses leadership and team building techniques. Last, section five describes each board in terms of creation, purpose, membership, authority, and funding with citations for the appropriate title, chapter and part of the Montana Code Annotated (MCA). Links to web sites are provided throughout the handbook, with excerpts and links directly to the MCA presented by Title-Chapter-Part. For complete detailed information, users should carefully study the MCA or the specific resolution pertaining to the board and always consult with relevant, competent, and appropriate legal counsel. There are many boards, districts, commissions and committees in Montana, each with varying responsibilities and powers.1 Some boards are made up of members appointed by the Governor or local government officials, others are elected by voters, while still others are made up ex officio by local government officials. Some boards can levy mills and issue bonds while others are purely advisory in nature with no decision making authority. Some boards are quasi-judicial and can exercise judgment and discretion by granting, denying or determining legal rights and privileges while others have no ability to adjudicate disputes. Some serve at the state level, some are termed “special districts” and considered distinct government units by the U.S. Census Bureau, while others are termed “subordinate agencies” and not counted as separate government entities even though referred to as “districts.” Some function only in municipalities, others at the county or state level and some are multi-jurisdictional. In short, there is little consistency and often misunderstanding regarding the authority, responsibility and jurisdiction of the myriad boards, districts, commissions and committees in Montana. While it is not possible to avoid all controversy, board members can minimize disagreement and ineffectiveness in procedure, process and outcome through familiarity with the Montana Code Annotated2 and by being knowledgeable of techniques to improve interactions on a board or with the public. Boards, districts, committees, or commissions are a common means of interaction between citizens and elected officials on a host of topics and issues. As a board member, you represent the interests of many citizens who may be affected by your actions or those of your fellow board members. Serving on a board carries responsibility; you need to know how much decision making authority your board has, how to recruit new members, the financial resources of your board, how to most effectively run your board meetings, and how Montana’s statutes such as the code of ethics, discrimination, wrongful discharge and open meetings law apply. 1 All boards, districts, commissions and committees are referred to simply as ‘boards’ throughout this document. A board, district, committee, or commissions can all be interpreted to be an “agency” defined in MCA 2-3-102(1), as “any board, bureau, commission, department, authority, or officer of the state or local government authorized by law to make rules, determine contested cases, or enter into contracts.” A “rule” means “any agency regulation, standard, or statement of general applicability that implements, interprets, or prescribes law or policy or describes the organization, procedures, or practice requirements of any agency” (2-3-102(3)). 2 The entire text of the Montana Code Annotated in a searchable format is available on-line at: http://leg.mt.gov/bills/mca_toc/index.htm. 41 8 The information presented here attempts to describe and clarify many of the complex issues confronting boards in Montana. This document applies to those boards and membership thereof that are: 1. appointed and/or with oversight by local governments and, 2. open to membership to citizens in addition to local government officials and, 3. authorized and described in the Montana Code Annotated (MCA). Serving on or interacting with the myriad boards, districts, commissions and committees in Montana offers some of the best opportunities to practice and nurture the democratic ideals we all hold dear. Understanding how to more effectively serve on a board will allow board members, local government officials and citizens to better interact and cooperate and in so doing, sow the seeds of good governance. March 5, 2016 _______________________________________________________________________________________ 1. OVERVIEW OF BOARDS, DISTRICTS, COMMITTEES, OR COMMISSIONS IN MONTANA In contrast to county or municipal forms of local government (that are multi-purpose governing structures performing a wide range of direct service delivery and regulatory functions), most boards, districts, commissions and committees are single-purpose entities that perform a specific function or provide a particular service. Boards can also consolidate different government responsibilities to increase efficiency. In addition, two or more local governments may provide for joint boards to be established by interlocal agreements. Many boards are mandatory while others are created at the discretion of the governing body. There are 1,265 distinct local governments in Montana as defined by the US Census.3 These entities include county, municipal, school district, and special district governments.4 School districts and certain special districts can function with many of the same powers of local governments. Some districts are special taxing areas and may be governed by an appointed or elected board. 5 However, most boards, districts, committees, or commissions have more limited responsibility or authority and thus are considered subordinate agencies of the state or of local governments. There are 763 special districts in Montana.6 Many special districts are counted as local governments by the U.S. Census Bureau with three attributes: 1. Organized entity (possession of some corporate powers such as the right to sue and be sued), 2. Governmental character (requirements for public reporting or for accessibility of records to public inspection) and, 3. Substantial autonomy (considerable fiscal and administrative independence such as determining taxes to be levied and using debt without review by another local government).7 Some districts have autonomous governing boards, but their funding may depend on approval by the appropriate governing authority. If districts are not governed by an appointed or elected board, the local government officials ex officio administer board duties. Table 1 presents information on the principal boards, districts, commissions and committees in Montana. 3 U.S. Census Bureau. 2012. Census of Governments http://www2.census.gov/govs/cog/2012isd.pdf 4 There are two consolidated city-county government structures that operate as one government; Anaconda-Deer Lodge and Butte-Silver Bow are classified under Montana law both as counties and as municipalities. However, Anaconda Deer Lodge and Butte-Silver Bow are each counted only once for census purposes as municipal governments rather than as county governments. 5 A special district is defined in 2-2-102(9) as a unit of local government, authorized by law to perform a single function or a limited number of functions. The term also includes any district or other entity formed by interlocal agreement. For more detail of special districts, see 7-11-1001. 6 U.S. Census Bureau. 2012. Census of Governments http://www2.census.gov/govs/cog/2012isd.pdf 7 Ibid Paul Lachapelle MSU Extension Community Development Specialist Dan Clark MSU Extension Local Government Center Director Blake Christensen MSU Extension Local Government Center Associate Director 42 9 Table 1: Principal Boards, Districts, Committees, or Commissions in Montana Name Montana Code Annotated (Title-Chapter-Part) Airport Airport Appeals Board 67-7-302 Airport Board 67-10-201 Municipal Airport Authority 67-11-102 Regional Airport Authority 67-11-103 Economic Development / Infrastructure Business Improvement Districts 7-12-1111 Rural Improvement Districts 7-12-2101 Special Improvement Districts 7-12-4101 Television District 7-13-2501 (Repealed) Local Port Authority 7-14-1101 Regional Port Authority 7-14-1102 Local Improvement Districts 7-14-2710 (Repealed, see 7-11- 1001) Technology District 7-15-4295 (Repealed, see 7-15- 4279) Industrial Districts 7-15-4299 (Repealed, see 7-15- 4279 Museum and Facilities for the Arts Board 7-16-2201 (Repealed, see 7-11- 1001) Elections Board of County Canvassers 13-15-401 Fair Fair Commission 7-21-3401 (Repealed, see 7-11- 1001) Multi-County Fair Districts 7-21-3421 (Repealed, see 7-11- 1001) Joint Fair and Civic Center Commission 7-21-3451 (Repealed, see 7-11- 1001) Fire Fire Hydrant Maintenance Districts 7-12-4601 Rural Fire Districts 7-33-2101 Fire Service Area 7-33-2401 Governance Community Councils 7-3-223, 317, 417, and 516 County Compensation Board 7-4-2503 Health Solid Waste Management District 7-13-201 (Repealed, see 7-11- 1001) Hospital Districts 7-34-2101 Health Care Facilities Commission 7-34-2202 County Boards of Health 50-2-104 City Boards of Health 50-2-105 City-County Boards of Health 50-2-106 District Boards Of Health 50-2-107 Housing and Building County Building Commission 7-8-2103 County Housing Authority 7-15-2101 Municipal Housing Authority 7-15-4401 Land Use and Planning County Board of Park Commissioners 7-16-2301 County Park District 7-16-2411 (Repealed, see 7-11- 1001) Municipal Board of Park Commissioners 7-16-4201 Cemetery Districts 7-35-2101 (Repealed, see 7-11- 1001) Name Montana Code Annotated (Title-Chapter-Part) Land Use and Planning (continued) County Tax Appeal Board 15-15-101 County Planning Board 76-1-101 City Planning Board 76-1-101 City-County Planning Board 76-1-101 Joint or Consolidated Planning Boards 76-1-112 County Planning and Zoning Commission 76-2-101 County Zoning Commission 76-2-201 County Zoning Board of Adjustment 76-2-221 Municipal Zoning Commission 76-2-301 Municipal Zoning Board of Adjustment 76-2-321 Open Space Commission 76-6-101 Conservation District 76-15-101 Library Library Board 22-1-308 Public Library District 22-1-701 Livestock and other Animals Rodent Control District 7-22-2210 (Repealed, see 7-11- 1001) Mosquito Control Board 7-22-2411 (Repealed, see 7-11- 1001) Grazing District 76-16-101 Livestock Protective Committee 81-6-101 Cattle Protective District 81-6-201 Schools Elementary School Districts 20-6-201 High School Districts 20-6-301 K-12 School Districts 20-6-701 Taxation Resort Area District 7-6-1532 County Land Advisory Board 7-8-2701 Transportation Urban Transportation District 7-14-201 Transportation Improvement Authority 7-14-1001 Railway Authority 7-14-1601 Parking Commission 7-14-4601 Aerospace Transportation and Technology District 7-15-4296 (Repealed, see 7-15- 4279) County Transportation Committee 20-10-131 Water Regional Resource Authority 7-10-101 Metropolitan Sanitary and/or Storm Sewer District 7-13-101 County Water and/or Sewer District 7-13-2203 Local Water Quality District 7-13-4504 Regional Water and Wastewater Authority 75-6-302 Irrigation District 85-7-101 Drainage District 85-8-101 Conservancy District 85-9-101 Weed Weed District 7-22-2102 43 10 General Board Statutes County boards and certain special districts (7-11-1002, 7-11-1021) are guided by the general board statutes (7-1- 201).8 Municipalities and school boards are not specifically governed by the general board statutes, but instead are guided by specific statutes in the Montana Code Annotated (MCA), or by resolution passed by the authorizing governing body or both. The general board statutes require a resolution be passed with a statement that details the purpose, authority and membership of the boards (7-1-201). The resolution creating the board must grant the board the powers necessary and proper to the establishment, operation, improvement, maintenance, and administration of the board. The powers can be quasi-judicial to exercise judgment and discretion by granting, denying or determining legal rights and privileges. Members can be appointed, elected or, if the minimum number of qualified persons is not available for membership, the county commissioners may, by resolution at a public meeting, serve as board members (7-1- 203). However, county commissioners may not receive additional compensation. Most boards with elections hold them according to Montana’s general election laws (13-1-101). Unless specifically outlined in the statute describing the board, the following rules apply to county boards: terms of all members (except elected members) may not exceed 4 years; a board must consist of a minimum of 3 members and must have an odd number of members, and; a member must be a resident of the county to be eligible for appointment to a board (county commissioners may prescribe by resolution additional qualifications for membership). Members must be appointed by the county commissioners who must post prospective membership vacancies at least 1 month prior to filling the vacancy (7- 1-201(5)). Under the general board statutes, no boards may pledge the credit of the county or impose a tax unless specifically authorized by state law (7-1-201). The MCA does not contain a specific counterpart to the general board statutes that applies to municipal boards. The governance of boards in municipal setting depends on the form of government. In commission-executive form of government, the executive of a municipality shall “enforce laws, ordinances, and resolutions” and “appoint, with the consent of the commission, all members of boards, except the executive may appoint without the consent of the commission temporary advisory committees established by the executive” (7-3-203). In commission-manager form of government with general government powers, “all members of boards, other than temporary advisory committees established by the manager, must be appointed by the commission” (7-3-312 and 7-3-114). The manager shall “enforce laws, ordinances, and direct, supervise, …and administer all departments, agencies, and offices of the local government unit except as otherwise provided by law or ordinance (7-3-304). In commission-manager forms of government with self-government powers, “all members of boards, other than temporary advisory committees established by the manager, must be appointed by the presiding officer with the consent of the commission or …the manager with the consent of the commission” (7-3-312 and 7-3-114).9 For commission-presiding officer form of government, the presiding officer “shall appoint, with the consent of the commission, all members of boards and committees. However, the presiding officer may appoint without the consent of the commission temporary advisory committees” (7-3-503). For town meeting form of government, the town presiding officer is the chief executive officer of the town and shall “appoint, with the consent of the town meeting, members of all boards and appoint and remove all employees of the town” (7-3-606). For commission form or government, as is the case with most counties, “the commission shall appoint the heads of departments and other employees, except for those appointed by other elected officials (7-3-401) and “supervise the official conduct of all county officers and officers of all districts and other subdivisions of the county” (7-4-2110). There may be some ambiguity regarding a general definition of a board member; some may be considered to be a ‘public officer’ (“any elected officer of a local government”) or ‘public employees’ (“a member of a quasi- judicial board or commission or of a board, commission, or committee with rulemaking authority,” 2-2-102) 8 While the text of the general board statutes (7-1-201) suggest that it may be directed generically towards local governments ( i.e. municipalities and counties), the intent likely pertains only to counties. In subsection 17, the statute states, “If a municipality creates a special district in accordance with Title 7, chapter 11, part 10, the governing body of the municipality shall comply with this section if the governing body chooses to have the special district governed by a separate board.” 9 For more information on general versus self-government powers, see Montana Constitution, Art. XI, Sec. 4-6. Governments with self-government powers may choose alternative methods of establishing and governing boards as outlined in their charters. 44 11 serving with an ‘agency’ (“any board, bureau, commission, department, authority, or officer of the state or local government authorized by law to make rules, determine contested cases, or enter into contracts,” 2-3-102). Regardless of whether board members are serving in special districts, or part of a municipal or county board, and regardless of any salary or financial compensation, it is clear that members are subject to Montana’s Right to Know and Right to Participate statutes including the Code of Ethics (2-2-104) and open meetings laws (2-3-101). Oath of Office The issue of Oath of Office is often raised for new board members. The Montana Constitution contains the following provision: “Members of the legislature and all executive, ministerial and judicial officers, shall take and subscribe the following oath or affirmation, before they enter upon the duties of their offices: ‘I do solemnly swear (or affirm) that I will support, protect and defend the constitution of the United States, and the constitution of the state of Montana, and that I will discharge the duties of my office with fidelity (so help me God).’ No other oath, declaration, or test shall be required as a qualification for any office or public trust” (Art III, Sec. 3). There are also references to Oath of Office in the sections of the MCA pertaining to municipalities and counties that reference elected and appointed officials and officers. In 7-1-4137, “Every elected and appointed municipal officer shall take the oath of office prescribed in Article III, section 3, of the Montana constitution. Before the officer performs any official duties, the oath of office, certified by the official before whom the oath was taken, must be filed.” In this context, an “officer” is defined in 7-1-4121 as a “person holding a position with a municipality that is ordinarily filled by election.” In a county context, 7-4-2205 states, “Each person elected to an office …take the oath of office on or before the last business day of December following the officer’s election.” County officers are defined in 7-4-2203. It is important to recognize the distinction between appointed board members and elected board members. Those holding an elected office should take the oath of office by virtue of holding the office. Those appointed to serve on boards, should not. They are not “officers.” As with many other aspects of board governance, it is best to check with legal counsel regarding how to meet this provision. Resolutions Guiding Boards Under the general board statutes (7-1-201), resolutions creating county boards must explicitly define the role and scope of the board and must specify, 1. the number of board members, 2. the terms of the members, 3. whether members are entitled to mileage, per diem, expenses, and salary, and, 4. any special qualifications for membership in addition to those established by law (7-1-201). The general board statutes also specify that a majority of members constitutes a quorum for the purposes of conducting business and exercising powers and responsibilities. Action may be taken by a majority vote of members present and voting, unless the resolution creating the board specifies otherwise. The resolution creating a board may provide for voting or nonvoting ex officio members. The resolution must also contain, if applicable, budgeting and accounting requirements for which the board is accountable. While municipal, school district, and certain special districts are not subject to the general board statutes, the resolution or enabling legislation establishing or requiring the board should be required reading for all new members. The best boards assign a member as a watchdog to make sure these requirements are met. 45 12 Special Districts The creation and governance of certain special districts are now detailed in 7-11-1001. Since 2009, this part of the MCA now provides detailed and uniform information on special districts regarding their creation, administration, alteration, and dissolution. The statutes do contain a savings clause and thus do not affect current special districts, but do contain exceptions, for example, when boundaries are altered, or when the method of assessment is changed. The statute (7-11-1002) does not include the following special districts: business improvement districts cattle protective districts conservancy districts conservation districts water and sewer districts planning and zoning districts drainage districts grazing districts hospital districts irrigation districts library districts The statutes (7-11-1002) do include but are not limited to the following special districts: cemetery districts museum districts park districts fair districts solid waste districts local improvement districts mosquito control districts multijurisdictional districts Creation of Special Districts The authorization to create a special district can be initiated by resolution of governing body or initiated by petition (7-11-1003) which requires 25% of the registered voters or 25% of the owners of real property. The statute specifies the petition contents. Once the creation process is initiated, the processes are the same. The boundaries must be mapped, which requires that a surveyor prepare the legal description of the boundaries (7- 11-1006). The boundaries must as far as practical follow existing boundaries. At least one public hearing must be held prior to passage of a resolution of intent to create the district (7-11- 1007). Notice of the hearing must be published in accordance with 7-1-2121. Notice of the hearing must be mailed to all owners of property subject to potential assessment, fees, or taxation. The contents of the resolution must designate the proposed name of the district, a statement of necessity, a general description and boundary of territory or lands to be included, the general character of the proposed service or improvements, the estimated cost and method of assessment, any requirements specific to the type of district being proposed, (i.e. solid waste), whether the district will be administered by governing body or board, and whether members will be appointed or elected (7-11-1007). An owner of property subject to assessment may protest (7-11-1008). Administration of Special Districts The special district may be administered by the governing body or by an appointed or elected board (7-11-1021). Specific powers delegated and powers withheld must be stated. While the governing body may grant additional powers to the board, the governing body has ultimate authority (7-11-1021(2)c). If the special district will be administered by a board, the board must be established in accordance with the general board statutes (7-1-201). 46 13 The administrative entity of the special district may implement programs, administer budgets, employ personnel, purchase, rent, lease property and equipment, and cooperate with any corporation, association, individual, group, including governmental entities or agencies. In addition, any combination of units of local government may jointly create special districts which must be administered in accordance with an interlocal agreement (7-11-1022). Alteration of Special Districts Special Districts may be altered but not more than once per year (7-11-1023). The alteration cannot affect indebtedness at the time of alteration. The governing body shall assess the percentage of the cost of the program or improvements (7-11-1024). The method of assessment can be by area, equally by lot or parcel, taxable value, lineal front footage, vehicle trips, family residential unit / business units, or any combination of methods. The governing body shall annually estimate cost of program and must allow for protests. When an assessment is considered erroneous, a person may file an appeal to the administrative board of the district prior to the assessment becoming delinquent. If an appeal is filed and the board finds in favor of the taxpayer, the board shall order the assessment removed or refunded. If the board does not find in favor of the taxpayer and if a payment was made under protest or the taxpayer makes a payment under protest before the assessment becomes delinquent, the taxpayer may initiate an action in court. Subsection (2) details the process of initiating an action in court (7-11-1027). Dissolution of Special District A special district may be dissolved upon a finding that its purpose has been fulfilled and that the district is no longer needed (7-11-1029). The dissolution may be initiated by the governing body or administrative board and may be protested. Dissolution does not relieve property owners of assessment and payment sufficient to liquidate all charges existing. 47 14 2. LEGAL ISSUES FOR BOARDS Serving on a board requires competence of both procedure and process in order to meet the letter of the law and instill a sense of trust and credibility. The section below describes several of the more significant aspects of serving on a board including Montana’s open meetings law, code of ethics, nepotism, discrimination, ex parte consultation, and liability. Right to Know, Right to Participate By Paul Lachapelle Montana’s “sunshine laws” are described as among the most stringent in the nation.10 These laws are outlined in Article II Section 8 (Right of participation) and Section 9 (Right to know) of the state’s constitution.11 In Title 2, Chapter 3, Public Participation in Governmental Operations, the Montana Code Annotated (MCA) describes provisions of the required “Notice and Opportunity to be Heard” in Part 1, and “Open Meetings” in Part 2. The open meetings law affords “reasonable opportunity to participate in the operation of governmental agencies prior to the final decision of the agency” (2-3-201). The open meetings laws apply to all advisory boards, commissions, committees, and districts.12 Open Meetings Law The language is clear in the MCA that any legal interpretation of the open meetings laws will be liberal. The language of the code is clear and unambiguous in 2-3-201: “Public boards, commissions, councils, and other public agencies in this state exist to aid in the conduct of the peoples’ business. It is the intent of this part that actions and deliberations of all public agencies shall be conducted openly. The people of the state do not wish to abdicate their sovereignty to the agencies which serve them. Toward these ends, the provisions of the part shall be liberally construed.” There are four essential elements in the open meetings law: 1. If a quorum, defined as the number members legally required to conduct business, is convened by either physical presence or by means of electronic equipment (2-3-202) and, 2. Members will hear, discuss or act upon issues that it has jurisdiction over, (2-3-202), then, 3. The meeting must be open to the public and the press must be permitted to record the meeting (2-3- 211) and, 4. Appropriate minutes of all meetings shall be kept and made available for the public (2-3-212). The issue of whether the right to know and participate provisions apply to organizations such as a local chamber of commerce. The MCA contains language that references “organizations or agencies supported in whole or in part by public funds” (2-3-203). Additionally, the Montana Attorney General determined that, “The meetings of a local chamber of commerce or other organization recognized and acting as a nonprofit convention and visitors bureau which receives and spends bed tax funds must, as they pertain to the receipt and expenditure of bed tax monies, be open to the public in accordance with section 2-3-203, MCA.” (44 A.G. Op. 40 (1992)). Notice and Opportunity to be Heard Each board must develop procedures and adopt rules to facilitate public participation in decisions that are of significant interest to the public (2-3-103). The procedures include a schedule of regular meeting times and agenda prepared and posted sufficiently in advance to provide notice of the topics to be discussed and actions to be considered. The public must also be afforded a reasonable opportunity to offer information and opinions, 10 Weaver, K. L. and P.R. Lachapelle. 2010. Governing Montana at the Grass Roots: Local Government Structure, Process and Politics (3rd ed.). Bozeman, MT: MSU Extension. 333 pages. 11 Article II, Section 8. Right of participation. The public has the right to expect governmental agencies to afford such reasonable opportunity for citizen participation in the operation of the agencies prior to the final decision as may be provided by law. Section 9. Right to know. No person shall be deprived of the right to examine documents or to observe the deliberations of all public bodies or agencies of state government and its subdivisions, except in cases in which the demand of individual privacy clearly exceeds the merits of public disclosure. 12 Opinions of the Attorney General. 2005. Montana Department of Justice, Legal Services Division. 51 Op. Att’y Gen. No. 12. The opinions carry the weight of law, unless they are overturned by a court or the legislature changes the law or laws involved. https://doj.mt.gov/wp-content/uploads/2005/01/51-012.pdf 48 15 either orally or written, before final decisions are made. A matter of significant public interest is defined as one “involving any non-ministerial decision or action…which has meaning to, or affects a portion of the community.” 13 Discrepancies as to whether a meeting is of a significant public interest should always err on the side of transparency and opportunities for public participation. Regarding the amount of time required for noticing a meeting, the Attorney General has opined that, “Forty-eight hours is generally considered sufficient to notify the public of contemplated action. …The amount of notice given should increase with the relative significance of the decision to be made.” 14 It is critical to follow the established procedures and to make the procedures known to the public. There is no violation in the law by giving more notice or opportunity to be heard than is required. The agenda for a meeting, as defined in 2-3-202, must include an item allowing public comment on any public matter that is not on the agenda of the meeting and that is within the board’s jurisdiction. However, the board may not take action on any matter discussed unless specific notice of that matter is included on an agenda and public comment has been allowed on that matter. There are exception to the noticing statutes and include those that involve a decision that must be made to deal with an emergency situation affecting the public health, welfare, or safety or a decision involving no more than a ministerial act (2-3-112). For municipalities, there is additional statutory language that states, “In any meeting required to be open to the public, the governing body, committee, board, authority, or entity shall adopt rules for conducting the meeting, affording citizens a reasonable opportunity to participate prior to the final decision” (7-1-4143). Cities and towns are required by statute to specify by resolution a public location for posting and provide a posting board. When notice is required, the document must be placed on the board and a copy made available at the municipal office (7-1-4135). Board members should note that meetings can be statutorily different than hearings regarding the noticing requirements. See the specific statutes describing your board and the corresponding publication or mail requirements (for example, 7-1-2121 and 7-1-2122 for counties, and 7-1-4127, 7-1-4129 and 7-1-4131 for municipalities). Meeting Minutes The MCA states that appropriate minutes of all meetings shall be kept and be available for inspection by the public (2-3-212). The minutes must include the following: date, time, and place of the meeting; a list of the individual members of the public body, or agency in attendance; the substance of all matters proposed, discussed, or decided; and at the request of any member, a record by individual members of any votes taken. In addition, public comment received at a meeting must be incorporated into the official minutes of the meeting (2-3-103). For municipalities, there is additional statutory language about “copying” that states, “Appropriate minutes shall be kept of all public meetings and shall be made available upon request to the public for inspection and copying” (7-1-4141). The MCA also states that, “any time a presiding officer closes a public meeting pursuant to 2-3-203, the presiding officer shall ensure that minutes taken in compliance with subsection (2) are kept of the closed portion of the meeting. The minutes from the closed portion of the meeting may not be made available for inspection except pursuant to a court order” (2-3-212). The MCA states that if an audio recording of a meeting is made and designated as official, the recording constitutes the official record of the meeting but a written record of the meeting must also be made available for inspection. A log or time stamp for each main agenda item is also required (2-3-212). There is no distinction in the MCA between draft minutes and approved minutes (those accepted by the body). Boards should submit the minutes of its proceedings within 30 days after the minutes have been approved by 13 Opinions of the Attorney General. 1998. Montana Department of Justice, Legal Services Division. 47 Op. Att’y Gen. No. 13 https://doj.mt.gov/wp-content/uploads/1998/01/47-013.pdf. 14 Ibid 49 16 that body for electronic storage and retention in accordance with the provisions of 2-6-12. More information about this provision is in 7-1-204 and 7-11-1030. Below are some guidelines that are not part of the MCA but should be considered by every board: 1. Minutes are the official record of the proceedings of a deliberative assembly, board, or committee; they are also a historical document that will be accessible in perpetuity. 2. The minutes should contain a record of what was done at a meeting, not what was said by the members; however, generally more detail is better than less. 3. There should be a designated individual to take the minutes, be it the secretary or a staff member. Be sure to be familiar with procedures in the case of an absence. 4. There should be a method of approval of the minutes. For example, draft of minutes can be circulated among the members and interested parties for corrections and improvements before the next meeting and then a formal vote can take place at the subsequent meeting. 5. The body of the minutes should contain a separate paragraph for each subject matter. 6. Motions and decisions should be clearly stated (who made the motion, who seconded, and what is the final outcome). 7. Note all actions to be taken and by whom and business left pending. 8. Amendments or corrections should be done in red ink and not rewritten. Electronic minutes can use strikethrough or Track Changes functions. 9. The minute-taker should sit near chair or presiding officer so that they can hear clearly. 10. Note late arrivals and early departures. 11. Obtain copies of reports and include them with the minutes. 12. Ensure that the minutes are impersonal and do not contain comments like “heated,” “lengthy,” “moving.” 13. Write up or transcribe the draft minutes as soon as possible. 14. The secretary or recorder should sign the minutes, particularly when they are approved minutes. Consider adding some of these details to your bylaws or rules of procedure (see section: Does our Board Need By-Laws?). Privacy Issues The Montana Constitution (Art. II, Sec. 10) states, “the right of individual privacy is essential to the well-being of a free society and shall not be infringed without the showing of a compelling state interest.” While the open meetings law clearly provide for the right to know and right to participate, the presiding officer of any meeting may close a meeting during the time the discussion relates to a matter of individual privacy and then if and only if the presiding officer determines that the demands of individual privacy clearly exceed the merits of public disclosure (2-3-203). The right of individual privacy may be waived by the individual about whom the discussion pertains and, in that event, the meeting must be open. The Montana courts employ a balancing test to determine whether individual privacy justifies closure of a meeting. The first part of the test is whether the individual has a subjective expectation of privacy; the second part is whether the expectation is one which society is willing to recognize. The question becomes whether protection of the private interest outweighs the merits of public disclosure. Legal opinion has determined that certain personnel records could be closed, including matters related to family problems, health problems, employee evaluations, military records, IQ test results, prison records, drug and alcohol problems, and information “most individuals would not willingly disclose publicly.”15 Individual privacy does not extend to such issues as salary or compensation paid a public employee, to a decision on the award of a contract, or to any other expenditure of public funds or mistakes made in the course of performing official duties. For municipalities, there is additional statutory language that states, “Personal records, medical records, and other records which relate to matters in which the right to individual privacy exceeds the merits of public disclosure shall not be available to the public unless the person they concern requests they be made public. … 15 Montana Human Rights Division v. City of Billings, 199 Mont. 434, 649 P.2d 1283 (1982), Available at Montana Supreme Court: http://searchcourts.mt.gov/. 50 17 Except as provided by law and as determined by the chief law enforcement administrator, law enforcement records which relate to matters in which the right to individual privacy or law enforcement security exceeds the merits of public disclosure shall not be available to the public (7-1-4144). Certain exceptions are detailed in 2-3-203 and also include whether the discussion relates to litigation when an open meeting would have a detrimental effect on the litigating position (this does not apply regarding litigation between two government agencies or bodies) or any judicial deliberations in an adversarial proceeding. Code of Ethics Montana’s Code of Ethics defines and prohibits conflict between public duty and private interest (2-2-101). In short, the statute establishes that board members cannot benefit personally or financially from their position stating, “The holding of public office or employment is a public trust, created by the confidence that the electorate reposes in the integrity of public officers, legislators, and public employees. A public officer, legislator, or public employee shall carry out the individual’s duties for the benefit of the people of the state” (2-2-103). Specifically, there can be no “business” conflicts, (includes a corporation, partnership, trust, foundation, or any organization, whether or not operated for profit), financial compensation, or “gifts of substantial value,” generally defined as $50 or more or of substantial value or economic benefit that would tend improperly to influence a board member to depart from impartial discharge of duties (2-2-102). The statute does not apply to a gift that is not used and returned within three days, food and beverages consumed while participating in events related to board duties, educational materials related to board duties, or an award publicly presented in recognition of public service. Board members may not disclose or use confidential information obtained through the board that would benefit them personally or financially (2-2-104). Rules of conduct also dictate that a public officer may not use public time, facilities, equipment, supplies, personnel, or funds for private business purposes or, to solicit support for or opposition to any political committee, the nomination or election of any person to public office, or the passage of a ballot issue. Board members may not use public time, facilities, equipment, supplies or funds to determine the impact of passage or failure of a ballot issue on state or local government operations (2-2-121). There is also a disclose clause in the MCA that states, “Public officer or public employee shall, prior to acting in a manner that may impinge on public duty, including the award of a permit, contract, or license, disclose the nature of the private interest that creates the conflict” (2-2-131). Nepotism Nepotism is defined as the bestowal of political patronage by reason of relationship rather than of merit (2-2-301). Board members may appoint to any position of trust or emolument any person related by “consanguinity within the fourth degree or by affinity within the second degree” (2-2-302). Relationship by affinity is defined as “the relation which one spouse has, by virtue of the marriage, to blood relatives of the other. Therefore, a person has the same relation by affinity to a spouse’s blood relatives as a spouse has to them by consanguinity and vice versa. Degrees of relationship by affinity are computed in the same manner as degrees of relationship by consanguinity” (1-1-219). Agreements to appoint relatives to office are unlawful and considered a misdemeanor with fines of $50 to $1,000 and imprisonment up to 6 months (2-2-304). There are exceptions depending on the county population and other specific criteria (2-2-302). Ex Parte Communications Issues associated with ex parte communications are prompting increased discussion and scrutiny in Montana. Ex parte consultations are regarded as a private, one-sided communication between a decision maker and a party or person concerning issues before the decision maker. While ex parte communications are described in the Montana Administrative Procedures Act (MAPA) prohibiting agencies that make quasi-judicial decisions from receiving or engaging in ex parte consultations “except upon notice and opportunity for all parties to participate” (2-4-613), the MAPA does not apply to “units of local government” (2-4-102(2)(b)). More legal clarification pertaining to local governments and boards is likely forthcoming but in the meantime, these types are communications should be of particular concern for those serving in a quasi-judicial capacity. 51 18 For those board members serving in a quasi-judicial capacity, they should be sensitive to the types of private discussions they participate in and in particular, receipt of information or evidence. Legal counsel will advise the best course of action regarding if the information should be disclosed at a public meeting and for public record. Public Records Management The MCA (2-6-1003) guarantees “every person” the right to examine and obtain a copy of any public information of this state. No person may be deprived of the opportunity to examine documents except when “the demand of individual privacy clearly exceeds the merits of public disclosure” (2-3-203). Public record is defined as public information that is “fixed in any medium and is retrievable in usable form for future reference; and designated for retention by the state records committee, judicial branch, legislative branch, or local government records committee” (2-6-1002). The MCA states that “upon receiving a request for public information, a public agency shall respond in a timely manner,” records are available under the act for copying as well as inspection, and that a fee can be charged, again using the reasonable criteria (2-6- 1006, see also 7-4-2631, and 7-4-4502). Reporting While there is no general language requiring filing of reports for boards under county jurisdiction or special districts, there is additional statutory language for municipalities that states, “All departments, boards, and authorities shall file an annual report with the chief executive, who shall compile the reports and present them to the governing body” (7-1-4146). The chief executive may specify the “form, content, and deadline for filing reports” (7-1-4146(2)). Board and Board Member Liability by Paul Lachapelle Board members acting in good faith cannot be held personally liable if they are within the course and scope of their authority, act within the law and within established rules even if the law or rules are later determined to be unlawful (2-9-103). The state and other governmental entities (such as boards) are immune from being sued for exemplary or punitive damages (2-9-105) if they are within the course and scope of their positions. A board is not liable in a State tort action for more than $750,000 a claim per person or $1.5 million for each occurrence. Insurance policies are also not liable beyond this dollar limit unless the policy specifically provides coverage beyond this amount (2-9-108). A board or board member enjoys immunity when carrying out a law, rule or policy created by a legislative body. In addition, the board is not liable for the lack or omission of a law or policy. This immunity does not include any tort committed by the use of a motor vehicle, aircraft, or other means of transportation. This immunity also does not include either personal or property damage caused by contamination to surface or ground water (2-9- 111). Since all county officers and employees must be bonded, board members must have either an individual or blanket bond for the faithful performance of their duties. The bond should be provided by the county (2-9-701, 2-9-703). In municipal settings, individuals who are elected or appointed officials (or volunteers under direct control of the municipality) and are acting on behalf of the municipality, typically maintain liability coverage when serving on committees, boards, commissions or special districts. The MCA also contains specific text regarding the indemnification of “public officers and employees.” Specifically, these individuals cannot be “civilly sued for their actions taken within the course and scope of their employment” since, “in any noncriminal action brought against any employee of a state, county, city, town, or other governmental entity for a negligent act, error, or omission... committed while acting within the course and scope of the employee’s office or employment, the governmental entity employer... shall defend the action on behalf of the employee and indemnify the employee” (2-9-305). 52 19 It is important to note that committee, board, commission or special district members must be acting within the course and scope of their position and must be acting on behalf of the municipality. It is useful to have job descriptions for these positions to assist in identifying and/or clarifying course and scope. Human Resources Considerations by Betsy Webb Board members should also be aware of the various civil rights, discrimination and wrongful discharge laws pertaining to their involvement on the board. These statutes are detailed in the Montana Human Rights Act in MCA Title 49 and more specifically, in the Montana Governmental Code of Fair Practices (49-3-101). Discrimination The Montana Human Rights Act provides guidance regarding discrimination. It is unlawful to discriminate in credit, education, employment, financing, housing, insurance, public accommodations, and state and local governmental services and employment. It is unlawful to discriminate because of age, marital status, national origin, physical or mental disability, race or color, religion or creed, sex (including pregnancy, maternity and sexual harassment), familial status (housing only) and political beliefs or ideas (public employees). The laws also make it unlawful to retaliate against a person for opposing unlawful discriminatory practices or for participating in a human rights proceeding. Generally, complaints must be filed within 180 days of the date of the alleged discrimination under Montana law. More information about Montana’s Discrimination laws is available through the Montana Human Rights Bureau.16 Wrongful Discharge Some boards may have individuals that are considered employees with specific responsibilities. The “supervisor” for a board employee should be detailed in the board resolution. Depending on the language in the statute or resolution for each board, the governing authority for board members will in many cases be the local government within which the board resides or will be outlined in an interlocal agreement between multiple local government bodies. The governing authority is responsible to ensure that board members are properly trained, supervised, evaluated and warned if not performing satisfactorily. In Montana, an employee can be discharged only for good cause after completing the employer’s probationary period. Good cause is defined as reasonable, job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer’s operation, or other legitimate business reason. Board members should also be familiar with Montana’s Wrongful Discharge from Employment Act (39-2-901). Do not rush into the discipline or dismissal of any employee or board member. If a board member is elected, the voting process is used to remove the member from office. If a board member is appointed, the appointing body may remove a board member. However, competent legal counsel should always be consulted prior to taking any action. For termination purposes, management must show that the employee violated a specific policy, rule, performance requirement, or standard of employment and that the employee knew about the policy, rule, performance requirement, or standard of employment. During an employee’s probationary period, employment may be terminated for any reason or no reason (but not for reason contrary to public policy such as discrimination). Employers that have written personnel policies must follow those policies in making a discharge. An employee who wins a wrongful discharge suit may collect lost wages and fringe benefits for a period of up to four years from the date of discharge. Arbitration is encouraged to save the expense of lawsuits, and an employer may benefit if it offers arbitration to a discharged employee. An established grievance process can be an effective tool for minimizing claims of wrongful or constructive discharge/termination against Montana’s local governments. The grievance process should be part of the written Personnel Policy Manual and all employees and supervisors should be instructed in its use upon hire. 16 The Montana Department of Labor and Industry is the state agency which enforces Montana’s discrimination laws. The Human Rights Bureau of the Department receives and investigates complaints of discrimination. For more information, see: http://erd.dli.mt.gov/human-rights. 53 20 Confidentiality Before discussing confidential employee information, or releasing documents of a confidential nature, seek competent legal counsel. In Montana, each employee has a right to privacy of certain records.17 If you are unsure whether a document is confidential or accessible to the public, consult competent legal advice. Sometimes you can provide a citizen with information he or she seeks without allowing him or her to look at confidential portions of records. You can do this by reading the record yourself and giving the person information verbally or by photocopying the record and blocking out confidential portions. Board members may not use knowledge gained through their service to achieve personal gain for themselves or anyone else. Board members cannot disclose or use confidential information concerning their board service to advance personal or private interest. Additional Resources Montana Association of Counties web site addressing personnel matters: http://www.mtcounties.org/ insurance/personnel-services Montana Municipal Interlocal Authority web site addressing personnel matters: http://www.mmia.net/ RiskManagement/tabid/226/Default.aspx Montana State Human Resources Division. http://hr.mt.gov/newresources 17 Montana Human Rights Division v. City of Billings, 199 Mont. 434, 649 P.2d 1283 (1982), Available at Montana Supreme Court: http://searchcourts.mt.gov/. 54 21 3. HOW TO MAKE YOUR BOARD MEETINGS MORE EFFECTIVE Many boards rely on parliamentary procedure and Robert’s Rules of Order to structure meetings and provide uniformity regarding interaction with the public. This section contains information on parliamentary procedure, Roberts Rules of Order, and the use of motions. Preparing for your Meeting By Paul Lachapelle Preparing for your board meeting, and ensuring that board members have all of the necessary materials to be prepared for the meeting is critical. The agenda should be provided well in advance and as required in 2-3-103, must include an item allowing public comment on any public matter that is not on the agenda of the meeting and that is within the jurisdiction of the board. Board member packets can also be prepared and distributed to members prior to the meeting, and can contain the: Agenda Unapproved minutes from previous meeting Notes from members / governing body Committee and other reports Details of proposed actions Any supporting information (correspondence, reports, etc.) Other useful documents The agenda can be structured as follows: 1. Roll Call 2. Approval of Minutes: These are the minutes from the previous meeting. The body should vote to approve without changes or approve with changes. 3. Public Comment: This is the time set aside for the public to comment on any subject over which the board has jurisdiction or regarding a agenda item. The subject does not have to be on the agenda but the council cannot act on anything during public comment. If council action is required the item must be placed on the next meeting agenda. 4. Old Business: a. Officer reports: for example, the treasurer may have a report to provide and explain b. Committee Reports: these can include a report of current activities or special committee reports 5. New Business: a. Approval of consent items if any; these are routine items, voted on in a single motion to approve b. Other scheduled matters 6. Unscheduled matters / Concerns: This is a time when members can bring a concern forward before the body that is not otherwise listed on the agenda. No action can be taken at this time. 7. Adjournment Parliamentary Procedure and Robert’s Rules of Order By Dan Clark Parliamentary procedure is a method used to assist deliberative democratic assemblies in conducting meetings by using explicit rules and relying on transparency and consistency. These rules allow participants in a meeting the chance to be heard while maintaining order. Parliamentary procedure provides an important tool to ensure that decisions are reached in an orderly, equitable and deliberative manner. The general principles of parliamentary procedure are based on the will of the majority, the right of the minority to be heard, protection of the rights of absentees, courtesy and justice for all, and consideration of one subject at a time. Robert’s Rules of Order provide a common language that incorporates these principles to conduct a meeting. 55 22 Robert’s Rules of Order originated from U.S. Army General Henry M. Robert in 1876 to assist deliberative democratic assemblies in conducting meetings. While procedures used by U.S. legislative bodies in this period loosely followed English Parliamentary Law, the various legislative bodies revised and interpreted these procedures inconsistently, often causing confusion. Robert’s interest in creating rules came from frustration while attempting to serve on a church board. He felt he lacked knowledge on proper procedures and found little published information on the subject and subsequently published the Pocket Manual of Rules of Order for Deliberative Assemblies. Robert’s Rules of Order have subsequently been revised and updated.18 The current edition of the series is Robert’s Rules of Order Newly Revised (often referred to using the initials RONR) and supersedes all previous editions to become the parliamentary authority in organizations whose bylaws prescribe “Robert’s Rules of Order,” “Robert’s Rules of Order Revised,” “Robert’s Rules of Order Newly Revised,” or “the current edition of” any of these titles, without specifying a particular edition. Robert’s Rules is the most widely used parliamentary authority in the United States.19 All of the recommended procedures in Robert’s Rules of Order can be modified to fit the specific needs of any organization. How to Use Motions Four basic types of motions (main, privileged, subsidiary, and incidental) are used within a meeting to introduce topics or ask membership to take action on an issue. These types of motions allow participants the opportunity at various occasions during the meeting to make motions, second motions, debate motions and vote on motions. A main motion serves to announce items to be taken under consideration by the meeting attendees. Main motions are secondary to privileged, subsidiary and incidental motions and not allowed if another motion is already being discussed. Subsidiary motions are used to change the method of handling a main motion and must be voted on prior to voting on the main motion. Privileged motions allow subjects that are urgent to be discussed even when they do not relate to the business currently at hand. Incidental motions are used by members who wish to question how another motion is being processed. Incidental motions then take precedent before the original motion can continue. Presenting a Motion When a member would like to present a motion they must first obtain the floor by waiting until the previous speaker has finished and then rising and addressing the chairperson (or president) and saying, “Mr. (or Madam) Chairman,” and then waiting to be recognized. Motions are made in a positive manner and generally begin with, “I move that we…”. After the motion is presented, another member must second the motion for the motion to move forward. The chairperson will then restate the motion and begin by saying, “It has been moved and seconded that we…”; this statement opens up the motion for debate and turns the motion into “assembly property.” If debate is not necessary or allowed on a motion, a vote can then take place. If debate is needed, the individual who made the motion is allowed to speak first. Other members are then given opportunity to present thoughts on the motion. The member who presented the motion cannot speak on the matter again unless directed by the chairperson or until everyone else has had an opportunity. A time limit per speaker is often set up prior to discussion. All discussion is directed towards the chairperson. After debating the motion, the chairperson will ask, “Are you ready to vote on the question?” A vote is then taken if no more discussion is necessary. Procedures for Voting on a Motion The method used to vote depends on the assembly’s needs. More often, a simple voice vote is taken with the chairperson stating, “everyone in favor of the motion say aye, and everyone opposed to the motion say no.” A variation can be used when records need to be kept indicating how everyone votes. For the roll call method, each person’s name is called and a vote is verbally given. The chairperson may also choose to bypass the vote and obtain general consent. The chairperson would say, “If there is no objection…”; anyone can speak up at this point and state they do object followed by a vote. 18 See Robert’s Rules of Order, http://www.robertsrules.com 19 National Association of Parliamentarians is an association of approximately 4,000 members which provides education and accreditation certifications for parliamentarians; http://www. parliamentarians.org/. 56 23 Vocabulary used in a Board Meeting Robert’s Rules of Order and other parliamentary procedures contain specific vocabulary to be used at board meetings. • Point of Privilege: This term refers to the right of the person speaking to have the floor and not be interrupted by others. • Parliamentary Inquiry: Method to raise a point of order or to ask how to proceed when unsure of the proper motion. • Point of Information: This term refers to the method used to ask the speaker a question. • Orders of the Day (Agenda): If the meeting is not following the agenda a member may call orders of the day to remind the assembly to adhere to the agenda. If the members would like to deviate from the agenda, “suspending the rules” is necessary. • Point of Order: Point of order is raised if a rule has been broken or a member is not using the proper meeting protocol to speak. A point of order needs to be raised right after the error occurs. • Divide the Question: This term is used when a motion is split into two or more new separate motions. • Consider by Paragraph: When considering adoption of a document, adoption of the full document can be postponed until each and every paragraph has been debated and if necessary amended. • Withdraw/Modify Motion: After the question is stated; the person who made the motion may accept an amendment to the motion. • Commit /Refer/Recommit to Committee: Sometimes a committee is needed to research a motion. In this case, an already established committee is assigned the question or a new committee is appointed. If a new committee is necessary, the chairperson may indicate how many members are needed and how selection of committee members should occur. • Extend Debate: Calling to extend debate can be used for the question currently under debate and usually has a time limit. • Limit Debate: This term is used to refer to the time limit placed upon debate and when debate should be considered closed. • Postpone: If a motion or agenda item needs to be postponed, it is necessary to determine and state when it will be resumed. • Object to Consideration: Objection must be stated before discussion or another motion is stated. • Lay on the Table: This tool is used after a motion is closed to debate or is pending closure and can temporarily stop further consideration or action on the open motion. • Take from the Table: If a motion has been previously “laid on the table,” it can be opened and considered again by stating the motion to “take from the table.” • Reconsider: If a member on the prevailing side of a debate changes their view, they can state they have reconsidered. • Postpone Indefinitely: Postponing a motion indefinitely stops the motion from proceeding forward just in that particular session, unless a motion to reconsider is made. • Informal Consideration: This term refers to changing the debate to an informal format similar to that of a committee. To move to an informal consideration format a member moves that the assembly go into “Committee of the Whole.” Voting is still done formally and is still valid while the meeting is in an informal mode. • Appeal Decision of the Chair: The membership may appeal a decision made by the chair if the appeal does not relate to the violation of order of business or parliamentary rules. Appeals must also take place prior to other unrelated business. • Suspend the Rules: This allows specific, stated rules with the exception of the assembly’s constitution to be suspended. For some boards, such as those with small memberships (for example, three or five members), you can consider using small group rules or adopting a not-so-strict enforcement of Robert’s Rules of Order. In these cases, unless otherwise specified by the authorizing body or the Montana Code Annotated, the presiding officer of the 57 24 meeting can make motions, second motions and should vote on all matters. Under the relaxed rules of procedure, you can make motions or speak without the necessity of formal recognition, your motions don’t have to be seconded, and you can discuss things without a motion being on the floor.20 Table 2 presents the common motions and corresponding language used in a board meeting. The first thirteen motions are listed by precedence. Table 2: Common Motions Used in a Board Meeting.21 Wording Interrupt another speaker Requires a second Debatable Amendable Vote Required Reconsider Main Motions Main Motion “I move that we…”No Yes Yes Yes Majority Yes Subsidiary Motions Lay on the table “I move to lay the question on the table” or “I move that the motion be laid on the table” No Yes No No Majority (3)* Previous question (to close debate) “I move the previous question” or “I move we vote immediately on the motion” No Yes No No 2/3 of assembly Yes Limit-extend debate (12) “I move the debate be limited to. . .” or “I move that the speaker’s time be extended by. . .” No Yes No Yes 2/3 of assembly Yes Postpone to a definite time (12) “I move that the question be postponed until. . .” No Yes Yes Yes Majority Yes Refer to a committee (12) “I move to refer the matter to the . . . committee” No Yes Yes Yes Majority Yes Amendment to the main motion (12) “I move to amend by adding/striking the words. . .” No Yes (5)Yes Majority Yes Postpone indefinitely (12) “I move that the motion be postponed indefinitely” No Yes Yes (16)No Majority (4) Privileged Motions Fix time for next meeting (12) “I move that we meet next at…”No Yes No Yes Majority Yes Adjourn “I move that we adjourn” No Yes No No Majority No Take a recess (12) “I move that we recess. . .”No Yes No Yes Majority No Raise a question of privilege “I rise to a question of privilege affecting the assembly” Yes No No No (1)No Call for the orders of the day “I call for the orders of the day” Yes No No No (1) (15)*No 20 See: How to Relax Robert’s Rules by C. Alan Jennings, from Robert’s Rules For Dummies 21 Source: Robert, H. 2000. Robert’s Rules of Order (Newly Revised, 10th Edition) New York: Perseus Books Group; Sturgis, A. 2000. The Standard Code of Parliamentary Procedure (4th Edition). New York: McGraw-Hill. 58 25 Wording Interrupt another speaker Requires a second Debatable Amendable Vote Required Reconsider Incidental Motions (11) Suspension of rules “I move to suspend the rules so that. . .”No Yes No No (9)*No Request to withdraw a motion (13) “I move that I be allowed to withdraw the motion”**No No Majority*(3) Objection to the consideration of a question (10) “I object to the consideration of the question” Yes No No No 2/3 of assembly (17)(3) Point of order “I rise to a point of order” or “Point of order!” Yes No No No (1)*No Parliamentary inquiry “I rise to a parliamentary inquiry” or “A parliamentary inquiry, please” Yes No No No (1)No Appeal to the chairperson “I appeal from the decision of the chair”Yes Yes Yes*No (7)Yes Point of information “I rise to a point of information” or “A point of information, please” Yes No No No (1)No Division of assembly “Division!” or “I call for a division”Yes No No No (14)No Division of a question “I move to divide the motion so that the question of purchasing decorations can be considered separately.” No Yes No Yes Majority No Renewal Motions (8) Reconsider* (2) “I move to reconsider the vote on the motion relating to. . .” No*Yes (5) (16)No Majority No Take from table “I move to take from the table the motion relating to. . .” No Yes No No Majority No Rescind “I move to rescind the motion passed at the last meeting relating to. . .” No Yes Yes (16) Yes (6)(3) Discharge a committee “I move that the committee considering . . . be discharged.” No Yes Yes (16)* Yes (6)(3) * Refer to Robert’s Rules of Order Newly Revised (1) The chair decides. Normally no vote is taken. (2) Only made by a member who voted on the prevailing side and is subject to time limits. (3) Only the negative vote may be reconsidered. (4) Only the affirmative vote may be reconsidered. (5) Debatable when applied to a debatable motion. (6) Majority with notice, or 2/3 without notice or majority of entire membership. (7) Majority or tie vote sustains the chair. (8) None of these motions (except Reconsider) are in order when business is pending. (9) Rules of order, 2/3 vote–Standing rules, majority vote. (10) Must be proposed before debate has begun or a subsidiary motion is stated by the chair (applied to original main motions). (11) The Incidental Motions have no precedence (rank). They are in order when the need arises. (12) A Main Motion if made when no business is pending. (13) The maker of a motion may withdraw it without permission of the assembly before the motion is stated by the chair. (14) The chair can complete a Division of the Assembly (standing vote) without permission of the assembly and any member can demand it. (15) Upon a call by a single member, the Orders of the Day must be enforced. (16) Has full debate. May go into the merits of the question which is the subject of the proposed (17) A 2/3 vote in negative needed to prevent consideration of main motion. 59 26 Ground Rules By Paul Lachapelle and Dan Clark Ground rules can be thought of simply as the guidelines a board adopts to ensure the meeting progresses as efficiently and respectfully as possible. Ground rules can be used in addition to using Robert’s Rules of Order, or if Robert’s Rules are not implemented, as the basis for the format and structure of the meeting. Ground rules allow for a ‘level playing field’ whereby all voices can be heard and all participants are given the time and respect they need and deserve. Examples of common ground rules can include the following: If you are making a comment, please stand at the podium, clearly state your name and address for the public record. All comments will be delivered from the podium, not from your seat [unless the commenter needs a reasonable accommodation]. Please direct all comments to the Chair. Engage in active listening. Please use respectful language no swearing no derogatory language no threats no personal attacks no signs no heckling or applause Make your comments concise and solution oriented. Observe the (blank) minute time limit per speaker (use the reasonableness criteria set in Montana code). If questions are asked, they will be responded to at the discretion of the Chair. Everyone agrees not to interrupt the speaking opportunity of others. Cell phones should be turned off or silenced. No single party will be allowed to dominate the meeting. The chair or facilitator reserves the right to keep the meeting on-schedule. Discussion can pertain to any item related to the Board’s business. Ground rules should be discussed and written and posted before the start of the first meeting and then reposted at each subsequent meeting. It should be made explicit that the rules can be amended by majority vote or consensus at any time. The rules should also not be in conflict with the Montana Code or city or county ordinances. Additional Resources Gorski, P.C. A Guide for Setting Ground Rules. Multicultural Supersite, McGraw Hill. Accessed on-line Jan. 28, 2016 at: http://www.edchange.org/multicultural/activities/groundrules.html Maiese, M. 2004. Knowledge Base Essay: Ground Rules. In: Beyond Intractability, Guy Burgess and Heidi Burgess (Eds.) University of Colorado, Boulder: Conflict Research Consortium. Accessed on-line Jan. 14, 2011 at: http://www.beyondintractability.org/essay/ground_rules Scheffert, D., Anderson, M., Anderson, S., Laeger-Hagemeister, M., and Steinberg, R. 1999. Facilitation Resources – Volume 4. University of Minnesota Extension. St. Paul, Minnesota. Accessed on-line January 28, 2016 at: http://www.extension.umn.edu/community/leadership/materials/facilitation/volume-4. html#groundrules Sharp, J.S., M.B. Smith, and D.B. Patton. 2002. Planning and Conducting Effective Public Meetings. Columbus, OH: Ohio State University Extension. 60 27 Principles of Good Governance by Paul Lachapelle The legal foundations of board governance can be understood broadly as a twofold framework: 1) statutory information and requirements and, 2) principles of good governance (i.e., matters of participation, responsiveness, transparency, and equity). In other words, there is the language of the law, and also the spirit of the law. The good governance principles follow and build-on the state statutory provisions and vice versa. While there are varying models of good governance, Table 3 below presents a framework adapted from Graham, Amos, and Plumptre (2003). The five principles presented in the table are in many respects complimentary to the language in applicable sections of the Montana Code Annotated and Constitutional provisions related to board governance. The principles are self-explanatory and applicable in nearly every board decision-making situation. Interpreted broadly, when these principles are well-understood and applied in a board setting, they will serve to promote not only good governance, but also good relations. Table 3: Principles of Good Governance.22 Principles Application and Description 1. Legitimacy and Voice Participation – all men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their intention. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively. Consensus orientation – good governance mediates differing interests to reach a broad consensus on what is in the best interest of the group and, where possible, on policies and procedures. 2. Direction Strategic vision – leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded. 3. Performance Responsiveness – institutions and processes try to serve all stakeholders. Effectiveness and efficiency – processes and institutions produce results that meet needs while making the best use of resources. 4. Accountability Accountability – decision-makers in government, the private sector and civil society organizations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organizations and whether the decision is internal or external. Transparency – transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them. 5. Fairness Equity – all men and women have opportunities to improve or maintain their wellbeing. Rule of Law – legal frameworks should be fair and enforced impartially, particularly the laws on human rights. 22 Adapted from Graham, J., Amos, B., & Plumptre, T. 2003. Principles for good governance in the 21st century, Policy Brief No.15. Ottawa, ON, Canada: Institute on Governance. 61 28 Facilitator Competencies for the Chairperson or Presiding Officer by Jennifer Anderson Working with boards or any loosely affiliated group of individuals requires effective facilitation skills. Good facilitation leads to consensus building which involves actively engaging participants in ‘owning’ issues and thus, the solutions that are needed to create positive action. Likewise, good facilitation skills are critical in conducting and carrying out effective meetings. When done right, facilitation may help an organization realize, value and utilize its internal strengths and abilities, which are needed for sustainable purpose and action. The Facilitator’s Role The role of the facilitator is that of a neutral leader, usually someone from outside the group or organization that has no known vested interest in the organization’s actions and outcomes. The facilitator’s main objective is to guide the group’s process and progress utilizing the principles of effective facilitation. In many instances, the board’s president or presiding officer is by default, the group’s facilitator. This person is responsible not only for leading the meeting by some form of parliamentary procedures, but also for guiding the organizations overall progression of work towards achieving goals. Although this isn’t the optimal role of a facilitator, because it happens frequently, the presiding officer of an organization can benefit from learning, developing and utilizing facilitation skills. Principles of Effective Facilitation Professional facilitation associations and organizations as well as a whole host of private consulting firms all possess over-arching fundamental ideologies of what constitutes quality facilitation. Below is a list of ten topics that are commonly found to be important characteristics of successful facilitation. 1. Believing that groups can make good decisions – having the fundamental understanding that the board itself has the internal ability to make good decisions. In this capacity the facilitator, leading by example, models the conviction that the group has the internal ability to take ownership and solve its own issues, which helps boost the participants self confidence level. 2. Ensure participation – as the neutral leader of the process, it is critical facilitators have the ability to recognize situations where individuals are not actively engaged in the process. Best practices indicate the facilitator addresses participation in the planning phases by understanding the group being served, taking into consideration different learning/thinking styles as well as individual participant diversity. When participation issues arise, it may be the result of underlying issues which were not recognized or addressed in the planning. If these surface during the process and are allowed to continue, they may derail the entire process or lead to an unexpected or negative outcome. 3. Convening people as a neutral guide – neutrality is of the utmost importance as it indicates there are not any “hidden agendas.” It helps build trust in the facilitator and the process, which is especially important in dealing with controversial subjects. Most importantly, neutrality minimizes the facilitator’s influence on group outcomes. 4. Sharing a sense of group goals – creating a collaborative environment in which the facilitator has a shared responsibility of guiding the process and group to achieve the desired goals is important. Identifying and building group goals also helps create a foundation built on commonalities or which bonds the participants together. 5. Using effective processes – the “one shoe fits all” approach will most likely yield little positive results. Good facilitators have a tool box of different participatory processes and resources that can be accessed and utilized depending on the individual situation. Determining which techniques to include comes from using good verbal communication skills, practicing active listening and the demonstrated ability to observe and provide feedback to participants. 6. Utilizing diversity and wisdom – while it is important to build a foundation on commonalities, it is also critical to recognize, welcome and utilize diversity and the wisdom that comes from it. Groups 62 29 benefit by embracing and encouraging diversity. Engaging a diverse audience encourages inclusiveness as well as discussion and a deeper understanding of different perspectives. It also fosters creativity by being open to alternative solutions. 7. Improving continuously – building and maintaining professional knowledge is a must. The facilitator works at increasing skills and the ability to competently and effectively manage both small and large groups. 8. Building Trust – at the foundation of creating change or taking action is trust. It is extremely critical that participants trust each other and likewise, there is trust with the facilitator. For the facilitator, this involves maintaining personal integrity, the ability to be objective, yet caring while also being professional. It is imperative the facilitator mindfully includes trust building attributes in the process. 9. Progressing toward goals – the bottom line is the ability to produce results. At the end of the session, meeting, etc. the facilitator must be able to show tangible results, or at the very least, show progression towards goals. 10. Learning from experiences — in the end, the best method for honing one’s skills as a facilitator is experience. Situations and needs are unique, however, many also have similarities. Involvement and practice will help build the facilitator’s repertoire of skills and tools. Stages and Tasks of Facilitation Successfully mobilizing boards or any group of people from talk to action is no small feat. Not only does it require a level of commitment and responsibility on both entities — the facilitator and the group — it also demands a competent facilitator armed with a whole cadre of skills, tools and resources. In many instances the facilitator is considered the “change agent,” which can be a tough role to take on. The following 5 areas summarize the typical stages of facilitation and tasks of the facilitator (framework developed by the University of Minnesota Extension Service): 1) Pre-work a) Contracting or agreeing to facilitate b) Planning the agenda c) Confirming who is attending d) Arranging the meeting room and supplies 2) Opening the meeting or event a) Making introductions b) Exploring the purpose of the meeting/event c) Helping the group determine the agenda d) Breaking the ice e) Setting ground rules f) Initiating discussion 3) Facilitating the meeting a) Proceeding through the agenda b) Helping the group stay on track c) Ensuring participation d) Building consensus and making decisions e) Managing conflict f) Handling disruptive behaviors g) Fulfilling your role as facilitator ethically 4) Closing the meeting a) Reviewing the agenda b) Identifying the next agenda c) Reviewing decisions/actions d) Answering questions e) Evaluating the meeting 63 30 5) Following up a) Clarifying remaining expectations for facilitator b) Asking for helpful feedback c) Determining action for any unfinished business References and Additional Resources IAF Core Competencies for Certification. (2011) International Association of Facilitators. Accessed On- line June 8, 2011 at: http://www.iaf-world.org/index/Certification/CompetenciesforCertification.aspx Scheffert, D., Anderson, M., Anderson, S., Laeger-Hagemeister, M., and Steinberg, R. 1999. Facilitation Resources – Volume 4. University of Minnesota Extension. St. Paul, Minnesota. Accessed on-line January 28, 2011 at: http://www.extension.umn.edu/community/leadership/materials/facilitation/ 64 31 Does our Board Need By-Laws? by Dan Clark The bylaws or rules of procedure should outline procedural functions and governance policies of a board. Boards should spend time developing bylaws defining and clarifying their purpose, membership, operating procedures, roles and responsibilities. In preparing bylaws, make sure that you refer back to and are consistent with the general provisions laid out in the governing bodies enabling legislation (i.e. resolution). The bylaws of a public board are always subordinate to the local ordinances, resolutions and state statutes; if there is a conflict, seek competent legal counsel. Bylaws need to be specific enough to provide a clear overall structure, but not so specific that the potential changing needs of the board would require frequent bylaw changes. New board member orientation should include a review of the bylaws. At least one annual meeting should include a review of the bylaws to ensure the board maintains consistency in its operation and procedures. While much of this information is likely already provided in the board’s resolution, when developing board bylaws, members should consider the following questions: 1. What is the name of the board? 2. What is the purpose of the board? 3. What is the membership of the board? 4. What is the process of selecting a board chairperson (presiding officer), vice chair and secretary? How long is the term of office? What are their roles and responsibilities? 5. Who presides over the board if the chairperson is absent? 6. Who takes the meetings minutes? Who is responsible for taking minutes when the minute taker is absent? How are the minutes filed and stored? 7. Who decides what items are placed on the agenda? How do board members and/or the public request items be placed on the agenda? 8. When and where are meetings scheduled? What are the board’s expectations for meeting attendance and unexcused absence? What constitutes abandonment of office and how do you communicate it to the governing/appointing body. 9. If a special meeting is necessary, who has the authority to convene a meeting? 10. Do you have specific procedures when meeting in executive session? 11. What constitutes a quorum of members necessary to conduct official business? 12. Does the chairperson have the same voting privileges as other board members? How does the board deal with a tie vote? 13. What are the noticing requirements for board meetings? 14. Who is responsible for posting meeting notices? a. Where will notices be posted? b. When should notices be posted? 15. Can the board create subcommittees? If so, who appoints the subcommittees? Are the subcommittees standing or ad hoc? 16. What are your procedures for public records requests? 17. Do you have or need public participation guidelines (time limits if an audience threshold is reached)? 18. Do you require new member orientation with specific materials provided? With clear by laws, public boards will invest more time and energy deliberating over issues specific to their purpose and less time wrangling over procedures and process. Ultimately, by-laws should make your board more transparent, more accessible, and more efficient. Specific Guidelines are offered in Appendix 2. 65 32 4. LEADERSHIP AND TEAM-BUILDING SKILLS This section covers a wide variety of topics including leadership definitions, building leadership capacity, recruiting and mentoring new members, conflict management, personality traits, generational issues, and suggested methods to avoid Stagnation. While there are many additional topics, these issues are likely the main factors that might influence the leadership capacity of a board, and the effectiveness of board’s processes and outcomes. What is Leadership? by Abbie Phillip Leadership is a fundamental component of a functioning board. Leaders facilitate the work and well-being of a group by contributing vision, resources, skills, and knowledge. There are many definitions and philosophies on leadership. Webster’s New Collegiate Dictionary defines leadership as the office or position of a leader or the quality of a leader, having the capacity to lead. The role of a leader can be described like a coach, an orchestral conductor, or a film director, who must get others to work together as a team (Cronin, 2000). John Quincy Adams, our 6th US President (1825 – 1829) noted, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Leadership development in the 21st Century is commonly centered in groups or organizations, rather than individuals, in order to engage the heart, mind, spirit, and energy of a group. According to Vandenberg and Sandmann (1995), “The driving forces of this philosophy, then, are community, the heart of a group’s leadership; vision, which engages the spirit; learning, which stimulates the mind; and action, which compels energy.” The old model of one leader and many followers in a hierarchy has evolved into a new model that gives equal importance to leadership development and the mission of the group, thereby empowering each member to contribute and collectively work on complex community problems. As Senge (1990) notes, “Implicit in leadership development programs of the past is the idea that leadership rests in individuals, who must be capable of inspiring and influencing others to solve problems and achieve goals, referred to as the “heroic” view of leadership.” Alternately, the modern, “post-heroic” view of leadership is based on “bottom-up,” transformational leadership fueled by shared power and community-building (Huey, 1994). Building Leadership Capacity Leadership is not an ability bestowed upon a limited number of talented people; rather, leadership roles can be fulfilled by anyone with the resolve to lead and commitment to the process of building leadership skills, understanding issues, team building, problem solving, action planning, implementing solutions, and evaluating outcomes. Building the skills needed for leadership will enhance the capacity of any individual to effectively perform the role of a board member or committee chair. Leadership skills and qualities can be learned through observing and mentoring with other leaders, having opportunities to work with groups, and participating in leadership classes. Clearly understanding the roles, qualities, and skills that are needed for effective leadership is the first step to building leadership capacity. Common qualities of outstanding leaders include: visionary, trustworthy, committed, courageous, self-starter, solution-oriented, team builder, caring, considerate, and creative. Other valuable leadership qualities include: knowledgeable, inclusive, accountable, helpful, charismatic, friendly, humorous, flexible, hardworking, and resilient. The American military leader Perry Smith (2002) writes about valuable leadership skills, such as running effective meetings, organizational development, problem solving, and communication. Other leadership skills include cooperation, building key partnerships, conflict management, strategic action planning, decision making, various leadership styles, asset mapping, group facilitation, and board governance. 66 33 Understanding the Stages of Group Development A conceptual model of the stages of group development is a powerful way to understand how people build teams and work together to achieve their goals. Bruce Tuckman (1965) originally developed a four-stage model to describe group development: 1. forming, 2. storming, 3. norming, and 4. performing. In 1997, Tuckman’s original model expanded to include a fifth stage, called adjourning (Tuckman & Jensen, 1977). Over time, this model has been debated and adapted to describe group development as a cyclical process, in which the group undergoes a transformation, returning to early stages like forming, storming, and norming when they accomplish and set new goals (Smith, 2005). The group development model serves as a reflection and evaluation tool that will foster discussion about the team building experience and the progress of a group toward accomplishing their goals. A group will not necessarily progress through the stages in a linear fashion. It is common for leaders to use different skills and leadership styles to help a group overcome barriers and reach their full potential. Forming The first stage of group development is called “forming” or gathering. Group members are getting acquainted, beginning to function as team, understanding their purpose, and setting goals. It brings forth questions, excitement and anxiety from group members. During this stage of team building, the leader needs to be more of a director. Storming The second stage is known as “storming” or griping. Individual members will deal with conflict and frustration that stems from not knowing whether the group can resolve differences of opinion and achieve their goals. New members may decide to drop out of the group. Goals may be broken into smaller, more achievable steps, and the roles of individual members may become more defined. The leader needs to coach and assist the team as they find their direction through consensus. Norming The third stage is known as “norming” or grouping. The team will become more playful, cohesive, and collaborative. Among the membership is a sincere commitment to the group, to share ideas, to value individual input, to resolve conflict, and to achieve their goals. This can be an appropriate time to evaluate the team processes and measure productivity. The leader is actively supporting and mentoring the membership to facilitate greater group performance. Performing The fourth stage is known as “performing” when the team makes significant progress toward their goals. Teamwork and new synergy develop as leadership roles and responsibilities become more fluid. Confidence is high as the group continues to invest in teambuilding, sharpening their skills, and improving their processes for greater achievement. There is a high level of comfort within the group, and members may spend more time socializing. The team leader needs to delegate tasks to promote the shared performance of the team. Transforming or Adjourning A fifth stage of group development is “adjourning or transforming.” A group who has achieved their goals may decide to disband or adjourn. A group who was not successful in achieving their goals may be disappointed and need a change of direction. Sometimes the group re-energizes and decides to take on a new mission and new activities. Under this scenario, the group may cycle through a transforming stage, repeating the forming, storming, and norming stages and emerge into a new performing stage. Leaders will play a variety of roles, such as directing, coaching, supporting, delegating and mentoring depending on the circumstances of the group. 67 34 References and Additional Resources Bennis, W. and B. Nanus. (1997) Leaders: The Strategies for Taking Charge. San Francisco, CA: Harper & Row. Cronin, T. (2000) Government by the People. Upper Saddle River, HJ: Prentice-Hall. Fritz, S., A. Boren, and V. Egger. (2005) Diamonds in the Rough: A Case Study of Team Development Across Disciplines, Distances, and Institutions. The Journal of Extension, 43(5). Huey, J. (1994) The new post-heroic leadership. Fortune, February 21, pp. 42-50. Katzenbach, J. and D. Smith. (1993) The Wisdom of Teams. Harvard, MA: Harvard Business School Press. Katzenbach, J. and D. Smith. (1993) The Discipline of Teams. Harvard, MA: Harvard Business School Press. Kotter, J. P. (1988) The Leadership Factor. New York, NY: Simon and Schuster. Senge, P. M. (1990) The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday/Currency. Smith, P. (2002) Major General, Rules and Tools for Leaders. New York, NY: Perigee. Smith, M. K. (2005) Bruce W. Tuckman – forming, storming, norming and performing in groups. The Encyclopedia of Informal Education: Retrieved: Jan 24, 2016, http://infed.org/mobi/bruce-w-tuckman-forming-storming- norming-and-performing-in-groups/ . Stein, J. (2003) Using the Stages of Team Development, Learning Topics. Massachusetts Institute of Technology. Retrieved: Feb. 9, 2016, http://hrweb.mit.edu/learning-development/learning-topics/teams/articles/stages- development Tuckman, B. (1965) Developmental sequence in small groups. Psychological Bulletin 63 (6): 384–99. Tuckman, B. W. and M.A. Jensen. (1977) Stages of small-group development revisited. Group Org. Studies. 2:419-27. Vandenberg, L., and L. Sandmann. (1995) Community action leadership development: A conceptual framework for Michigan State University Extension (MSU Extension Leadership Series No. 95-01). East Lansing: Michigan State University. Recruiting and Mentoring New Members by Betsy Webb How does your board work to attract, develop, and retain strong leadership to build leadership capacity for the future? There is no definitive answer about how large a board should be. Your board size may be determined by code, ordinance, or resolution. Some boards are larger than they need to be because they try to include members from too many constituencies in order to gain input and buy-in on high stakes issues. An effective board needs to have a diversity of perspectives, knowledge and skills in order to accomplish their work. If the board is too big, decision-making and discussion may be hampered. If the board is too small, the lack of diversity of opinions and experiences on complex issues may limit its ability to make the best decisions. A diversity of knowledge and experience will serve to enhance a board’s ability to address the many issues that may be confronted. Although it is sometimes more difficult to obtain agreement with diverse opinions present, critical issues are tackled early on and the decisions made will likely have included more perspectives, thereby making the process more robust. Composition of the board should be related to the defined needs and purpose that established the board. Board members, elected or appointed, need to be committed to the board purpose, be willing to prepare and research for their leadership roles, and follow through with their commitments. If you are recruiting for new board members, a board committee should look at the qualities and capabilities needed on the board. Make a list of potential stakeholders regarding the board’s purpose, charge board members in identifying suitable candidates for consideration, and advertise your openings to the community at large. 68 35 Once you’ve recruited members, you’ll need to orient and mentor these individuals so that they can be effective and active participants on the board. The term, “mentor,” has its origins in Greek mythology. Mentor was a trusted friend of Ulysses. When Ulysses was preparing to fight in the Trojan War which would require him to be far away for a long period of time, he asked his good friend, Mentor, to look after his son, guide him, and teach him right and wrong. On a typical board, members serve for a period of years and eventually leave the board, replaced by the next set of board members. Over the years, the composition of the board changes, but the organization itself needs to remain stable. Board members can contribute to the health and continued functioning of the board, in spite of member turnover, by grooming and training others to lead through a well-developed mentoring program. In the context of boards and board leadership, mentoring new board members contributes to a healthy, well- functioning board. “Older,” more seasoned board members can be paired with newer board members to help them understand the purpose and function of the board, to orient them to by-laws, and answer questions that the new board member may have about policies, procedures, and the board itself. By appointing a mentor to a new board member, lines of communication are defined and information is shared on a timely basis. New board members know where to go with their questions. The purpose of the mentor is to help the new board member gain the information or assistance they need to come up to speed quickly. Board members also need an effective orientation to enable them to quickly become active participants in the board’s work. They need information about the board’s history, organization, finances, policies, procedures, and the board’s roles, responsibilities and operations. The board should define the new member orientation process in its by-laws. The orientation may be provided by an assigned mentor, or through another board member. References and Additional Resources Brounstein, Marty (2000). Coaching & Mentoring for Dummies. IDG Books World Wide, Foster, CA. Enterprise Foundation (1999). Leadership Skills for Board Members. Columbia, MD. Huff, Andrea (2004). Board Leadership: A Mandate to Develop Future Leaders. Directors Monthly: Washington, DC. www.nacdonline.org Lakey, Berit (2010). Board Fundamentals, Understanding Roles in Nonprofit Governance, Second Edition. Board Source, Washington, DC. Conflict Management by Betsy Webb “Conflict is inevitable, but combat is optional.” —Max Lucado While serving on a board, arriving at good decisions that positively impact the public will involve differing opinions, looking at situations from as many angles as possible, and the tension that accompanies this work. Inevitably, the board will find itself in conflict. Healthy conflict can lead to robust discussions, informed decision making, and a greater buy in from diverse constituents. Successful resolution of conflict can lead to better relationships among board members, increased confidence to tackle hard decisions, and a greater sense of team in accomplishing the work to be done (Ursiny, 2003). Conflict does not need to be feared; instead dealing with the conflict that arises within a board will lead to better decisions. On the other hand, unhealthy conflict can derail the work of the board. When opinions are not stated, conversations go “underground,” emotions are not dealt with, or regular stale-mates are experienced, the work of the board can be undermined and good decision-making can be at risk. This section will discuss sources of conflict, strategies to deal with conflict, a self-assessment to determine your usual conflict style and suggested readings for more information. 69 36 Sources of Conflict Suzanne McCorkle (2010), Professor and Director of the Dispute Resolution Program in Boise, Idaho, presented a workshop on managing conflict and strengthening workplace relationships at Montana State University in 2010. Ms. McCorkle identified the following sources of conflict: 1. Information Conflicts. These conflicts have to do with data, misinformation, not enough information or withholding information. 2. Emotional Conflicts. These conflicts involve feelings, ego, and self-esteem. High emotions interfere with parties being able to reason and listen well. 3. Values Conflicts. Values involve deeply rooted beliefs, and may include religion, politics, and ethics. 4. Process (Relationship) Conflicts. These are conflicts about who has authority, what relationships exist in the conflict (peer or other), how are decisions made. 5. Style Conflicts. Communication styles, group versus individual styles, directive versus collaborative, in person versus electronics, high structure versus fluid. 6. Substance Conflicts. These conflicts center on scarce resources, including financial resources, funding, time, space, and equipment. McCorkle (2010) notes that if you are in a conflict, and the same problems keep arising, you are likely working on the conflict from the wrong source. Identifying one of the 6 conflict sources above can help to design a strategy to address the conflict in a healthy way. Each of the sources requires different approaches for resolution. For further reading, McCorkle and Reese (2010) have written a textbook on the theory and practice of conflict management. Conflict Strategies The Thomas-Kilmann Conflict Mode Instrument (TKI) is a well-used instrument for assessing the ways that people approach conflict (1974). Thomas and Kilmann (1974-2009) developed a tool for assessing conflict styles which include the avoider, the accommodator, the compromiser, the competitor, and the collaborator. Included in the appendix of this handbook is a Negotiation Styles self-assessment. In times of stress or conflict, people generally revert to their preferred style. However, in healthy conflict, a strategy can be chosen from these 5 approaches. Thomas Croghan and Nancy Yeend designed the self-assessment and these descriptions of the conflict strategies from the TKI (Thomas and Kilmann, 1974-2009). The avoider tries to stay out of conflict in the first place. From previous experience the avoider may expect to lose in this conflict situation. They may withdraw physically or psychologically; may be saving for an issue in which can be more productive. • Potential uses: When confronting is unsafe or damaging; when the situation may resolve on its own; when it’s a battle not worth picking; when time is needed to cool down or plan. • Potential limitations: Important issues may never get addressed leaving the conflict unresolved; conflict/ emotions may escalate or resurface/explode later. If people are not actively involved in the resolution, they may not be committed to the solution. The accommodator or friendly helper cares more about the relationship than personal goals. They are nonassertive but cooperative. They want to smooth over difficulties and pacify others. • Potential uses: When the relationship is more important than the current issue; when wanting to demonstrate a willingness to be flexible; when thinking they’ll get their turn later. • Potential limitations: Although they may please others, it may be at the expense of their own needs. This person may feel like a “doormat” after a while if always in this role with the same person; being “nice” won’t necessarily resolve the problem. The compromiser bargains with the other party for a solution. They believe you have to be satisfied with part of the pie. It can be a lose/lose approach with each party losing a little. Compromisers tend to ask for more than they really expect to get. 70 37 • Potential uses: Good for fast decision making on minor issues—or to avoid a win/lose situation; when parties are of equal strength; when competition or collaboration fail. • Potential limitations: Everyone may feel disappointed; quick fix may not address underlying needs; may only deal with surface conflict and leave significant issues unresolved. The competitor tries to employ power and dominance to win at any cost. They believe compromise is a weak mode and generally unacceptable. They place a high value on achieving personal goals and little concern about maintaining a relationship. • Potential uses: When immediate action is needed; when safety is a concern; when issues are too important to compromise or to lose. • Potential limitations: This approach may permanently damage relationships; losers don’t often support the winner; intimidating; doesn’t allow for others to participate in problem solving or to own the solution. The collaborator tends to have both a high concern for the goals of all the parties and high concern for maintaining the relationship between parties. They work at trying to resolve the underlying causes of the conflict. They believe relationships can survive when working through problems. • Potential uses: When there is time to develop mutually satisfying solutions; when parties concerns are too important to compromise; when strong commitment is needed by all parties to the solution. • Potential limitations: All parties must embrace the approach and work in good faith to come up with a solution that will meet the needs of all; requires time, commitment and some skill; it’s voluntary. Working with Different Conflict Styles The Center for Collaborative Solutions (Bozeman, Montana) teaches a 40-hour Basic Mediation Training class. The Center for Collaborative Solutions has been training mediators, employees, business owners, teachers, students and community members since 1997. Using the TKI, the CCS offers the following suggestions for working with people in each of the different conflict styles. Avoiders It is important to engage them Use open-ended questions The environment must feel non-threatening/ safe Try to frame conflict as opportunity Build on early success (tackle easier issues first) Ask, “What will happen if the problem is ignored?” “What is going to happen if you can’t solve this?” And ask yourself, why is this person avoiding? Competitors Try to get competitors to understand the others’ point of view “Tell me how you think Jane sees this…” Have Jane correct the statement, and then restate her view Ask the competitor what he/she thinks he/she would do if they were Jane Frame the problem from a team perspective Get the emotions along with the issues Compromisers They may not be happy with the result, as they are “giving up” something Move from compromising to the best possible solution (not always meet in the middle) What are the other interests in the situation not being identified? What can you do so everyone gains? Ask the compromiser, “Are you totally satisfied?” “Can you be totally satisfied by doing something else?” 71 38 Accommodators Often don’t see them in conflict, because they have already accommodated others so there is no issue. Have accommodators speak first, before others views have been stated. Have them propose the first solutions. Keep the environment safe. Have them write down their solutions – then they can’t back out. “I know everyone in this room has some feeling or opinion on this subject….” Over-collaborators Have to fully discuss and fully process everything. Have collaborators prioritize the most important issues. Give them the time needed to solve the situation. Ask them the relative importance of the issue versus the time it takes to reach agreement on all the issues. Shifting to a Learning Stance In Difficult Conversations (Stone, Patton & Heen, 1999), the authors introduce a conflict resolution approach that invites participants to enter conflicts from a position of learning. They recommend taking the time to explore each other’s stories, trying to see the issue through the other’s lens, and moving away from “certainty” to “curiosity.” Blaming, judging, and focusing on the past does not move groups towards conflict resolution. When arguing is taking place, people lose their ability to listen well. Mark Umbreit (1995) offers the following twelve strategies for managing workplace conflict that are aligned with the learning stance philosophy. He recommends the following: Choose the time and place carefully Change behaviors, not people (the conflict is not about you as a person, but the situation we are in). Agree on something Use “I” statements (“I am angry about this issue because… ,” not, “you made me angry because…”) Figure out where you went wrong Criticize with precision When someone attacks, agree Bow out for a while (take a break from conflict, give yourselves a “time out,” come back with a fresh lens. Have more conflicts (the more time you spend working things out, the better you will become at resolving conflicts). Find the third option Agree on the future (vision) Work it out on paper What if the Board gets Stuck? Fisher & Ury (1981), in their book, Getting to Yes: Negotiating Agreement Without Giving In, define an approach they call BATNA. This stands for Best Alternative to a Negotiated Agreement. When a stalemate exists, the question can be asked, “What happens if we do not resolve this conflict?” The alternative to not finding a solution may impel the group to work harder towards resolution. The reasons that groups in conflict negotiate on solutions is to produce something better than the results obtained without negotiating. What are those results? What is that alternative? Instead of ruling out any solution that does not meet the bottom line, compare proposed solutions with the BATNA to see if some of the interests can be satisfied. Another option is to use the Three-Step Model for Managing Conflict (CRU Institute 2005): I. Define the Problem Ask the other person (group) what the problem is Restate the problem Allow the other person (group) to correct any misinterpretations Say what you think the problem is Establish ground rules 72 39 II. Explore the Problem Ask open-ended questions Use “I” messages Restate what you hear, check assumptions Enforce the ground rules III. Find Solutions and Make Agreements Ask the other person (group) for solutions Give your solutions Brainstorm Pick the best alternative to implement References and Additional Resources Center for Collaborative Solutions (2006). Basic Mediation Training. Bozeman, MT. http://www. centerforcollaborativesolutions.com/index.html CRU Institute (2005). Peer Mediation Training Manual. Bellevue, WA: CRU Institute. http://www.cruinstitute.org/ Fisher, Roger and Ury, William (1981). Getting to Yes: Negotiating Agreement Without Giving In. New York: Penguin Books. McCorkle, Suzanne (2010). Managing Conflict and Strengthening Workplace Relationships. Presentation at Montana State University, November 3, 2010. Professor and Director, Dispute Resolution Program, Boise State University, Boise, ID. http://www.montana.edu/hr/HR%20Management%20Skills%20Series/ McCorkle_ManagingConflict.pdf McCorkle, S and Reese, M (2010). Personal Conflict Management: Theory and Practice. Upper Saddle River, NJ: Allyn & Bacon. Thomas, Kenneth and Kilmann, Ralph (2009). Thomas-Kilmann Conflict Mode Instrument— also known as the TKI. Mountain View, CA: CPP, Inc., http://kilmann.com/conflict.html Stone, Douglas, Patton, Bruce, and Heen, Sheila (1999). Difficult Conversations. How to Discuss What Matters Most. New York: Penguin Books. Umbreit, Mark (1995). Mediating Interpersonal Conflicts: A Pathway to Peace. West Concord, MN: CPI Publishing. Ursiny, Tim (2003). The Coward’s Guide to Conflict. Naperville, IL: Sourcebooks, Inc. The Importance of Public Trust By Blake Christensen As a public board member, you are in a unique position to make decisions for and work to improve the quality of life in your community. By serving on a public board, you take upon yourself the responsibility to represent the community to the best of your ability and act with integrity and diligence in your position. Fulfilling this responsibility builds and maintains trust with the public you serve. Gaining and maintaining trust between your board and your community is crucial to effectively fulfilling the board’s purpose. When the public trusts local government leaders, including public boards, the transaction costs for governing decrease and community leaders have greater freedom to efficiently and effectively accomplish goals. On the other hand, when trust is lacking, the transaction costs for governing as a board increase. In other words, rather than having the freedom to fulfill your role in the way that you see fit, the board will have to answer to much more rigorous oversight from the public. When the public does not trust the work of a board, the public will often ask more questions, request more information, closely supervise decisions, and more rigorously oversee the outcomes of the board’s work. While this additional oversight and involvement from the public is welcome under the Montana Constitution, it can also lead to greater frustration for board members. So how does a board member maintain a high level of trust with the public? First, strive to create a culture of good governance for your board. As described in another chapter of this handbook, utilizing principles of good 73 40 governance can ensure good relations between board members and between the board and the general public. This culture ensures participation, legitimacy, accountability, and transparency. The image you convey to the public—preferably an image of competency and credibility—can go a long way toward building trust. In addition to establishing a culture of good governance, strive to know and follow the MCA sections that foster trust with the public. The Montana Legislature, recognizing the importance of gaining and maintaining public trust, has embodied certain trust-building principles within the Montana Code. These include provisions that encourage greater public participation (2-3-101), openness (2-3-201), record transparency (2-6-1001), and ethical behavior (2-2-101)—all laws that, when properly followed, encourage public trust in the work you do as a board. Lastly, here are some practical tips for fostering trust as a board member: Know and proactively follow the Montana code sections on public participation, open meetings, and ethics. Not only do these laws allow the public to participate in decision-making, they also help your board avoid legal issues. Any non-compliance with the law—real or perceived—can erode public trust. Discuss the principles of good governance with your board and make a plan for implementing them. While many of the principles of good governance may seem intuitive on paper, they are best practiced only when board members take intentional steps to use them. Brainstorm ways to incorporate these principles and hold yourself accountable for creating a positive environment on your board. A culture of good governance, one in which the public witnesses collaboration, participation, consensus-building, and respectful behavior, increases public trust. Foster a spirit of collaboration between the board and the public. When the public is recognized and invited to participate in a spirit of collaboration, participants are much less likely to seek disruptive means of addressing public concerns. Create opportunities for board members to develop relationships with each other. Developing a personal relationship with your fellow board members fosters greater willingness to listen, openness to change, and opportunity to agree. When you show your fellow board members you are open to their ideas and concerns, they will generally be more open to yours. Engage issues through dialogue, rather than confrontation. When a board uses productive dialogue to address issues, instead of debate and argument, it is better able to create shared meaning and mutual learning. Proactive listening and striving to consider alternative viewpoints creates trust and respect, both with your fellow board members and with public observers. Develop cooperative goals. Speaking on the importance of goals in their book The Leadership Challenge, Professors Kouzes and Posner (2012) teach “[t]he most important ingredient in every collective achievement is a common goal. Common purpose binds people into cooperative efforts. . . . If you want individuals or groups to work cooperatively, you have to give them a good reason to do so, and that good reason is generally expressed as a goal that can only be accomplished by working together” (p. 230-231). Serving on a board is a great opportunity to make a difference in your community. That service will be much more effective and efficient if you participate in a manner that builds and maintains a high level of trust, both with fellow board members and with the public. References and Additional Resources Carver, J. 1997. Boards That Make a Difference, second edition. San Francisco, CA: Jossey-Bass. Chrislip, D. 1994. The Collaborative Leadership Fieldbook. San Francisco, CA: Jossey-Bass. Kouzes, J. & B. Posner. 2012. The Leadership Challenge, fifth edition. San Francisco, CA: The Leadership Challenge. Weaver, K. & P. Lachapelle. 2010. Governing Montana at the Grass Roots, third edition. Bozeman, MT: Montana State University Extension. 74 41 Understanding Personality Traits By Nori Pearce Some people walk into a meeting and take charge. Others may sit quietly in a room and not say much during a gathering. Some individuals are very good at organizing activities and events. One reason people react differently within the same situation is because every person tends to have a personality that defines who they are and why they do some of the things they do. Volumes of books have been written about personalities, or the temperaments of people, since the time of the ancient Greeks, to try to help people work together and understand each other. Dr. Kevin Leman, a New York Times bestselling author and renowned psychologist, has completed extensive research on personality types and has identified an interesting way to remember the four most common personality types. By assigning characteristics of dog breeds to each personality he makes it easier to remember: Yorkies, Great Danes, Standard Poodles, and Irish Setters. He does not believe that one particular type is more advantageous than another, though he does believe most individuals are a mixture of types. Following is a brief synopsis of each personality type as identified Leman (2010). “Yorkies” are the life of the party. They do not know a stranger. They will be the first to greet your arrival and they are always ready for the next event. They’re charming. They’re personable. They often get what they want, when they want it. They are the social ones. Their motto is “Let’s do it the fun way!” They can talk about anything at anytime to anyone. They are often loudest person in the group, or the person with the biggest smile. They are bubbly. They have a great sense of humor. They live for approval and acceptance. However, they may seem disorganized and seldom on time. They probably won’t remember your name, they may have a tendency to exaggerate and they may have a difficult time being serious. They may have difficulty with a budget and little attention for detail. “Great Danes” capture people’s attention with their sense of presence and their stature. They like to take charge. They make quick decisions and these decisions are usually the correct ones to make. They have a high sense of self confidence. They are usually daring, adventurous and competitive. They are very persuasive. They tend to be outspoken and strong willed. Great Danes are also independent creatures. As such they may have a need to be in control and expect others to comply with their wants and desires. They like to be appreciated and respected. They can sometimes appear as bossy, domineering and insensitive to other people’s feelings, coming across as unaffectionate and uncaring at times. Many are very dedicated to their careers. “Standard Poodles” as the breed they are identified with, live by high standards and ideals. They are very organized and orderly. They are highly analytical and live to do things the “right way”. They are skilled at setting, and achieving, long term goals. They love deep discussions. They are respectful of others, sensitive and thoughtful. Standard Poodles are faithful. However, Standard Poodles may have the need to have things done correctly as according to them. They need silence and space. They need sensitivity returned as well as giving it. They hate having to lower their standards or being forced to compromise their ideals. They thrive on stability. They can seem insecure, unforgiving and pessimistic. “Irish Setters” are loyal. They tend to have a balanced, pleasing personality. They can solve problems objectively and don’t make impulsive decisions. They are good listeners, content and adaptable. They are patient and obliging. Irish Setters have a calming influence over others. They are peacemakers. And no matter how long it takes, Irish Setters stay with a project until it is completed. However, Irish Setters may seem lethargic and lacking enthusiasm. They want to avoid conflict and may avoid making decisions because they don’t want to offend anyone. They can be indecisive about setting goals. They may have a seemingly sluggish approach to life or be viewed as lazy or aimless. They may lack self motivation. Very few individuals are solely one personality type. Most of us have blends of these types. Or we may be one personality type at work, while being a totally different type when at home with the people we love. Do you see a predominant personality or “dog” style within yourself? Think about the members of your board. Each probably has some identifiable characteristics from the personality traits identified by Leman (2010). Board members should recognize each other’s strengths and encourage the best of each person. Great Danes work 75 42 very well as the chairperson or committee chairs. Standard poodles may thrive when given the responsibility of balancing the budget or keeping minutes. Yorkies make great hosts and hostesses for events and activities, as well as finding ways keeping meetings from becoming stagnant. And Irish Setters will work to make sure everyone has a voice and is a part of the group. No one personality type is better than any other personality type. Each has its strengths. It is the combination of these types and learning to work together with all, which makes for the most successful teams. References Leman, Kevin. 2010. Have a New You by Friday, Revell-Baker Publishing Group. Generational Issues by Nori Pearce For the first time in history, four generations are involved in the work and volunteer forces at the same time. There may be great grandparents working alongside their great-grandchildren. To this workforce, add technological advances, individual personalities, education levels and you have the potential for an enormous generational gap within your organization which can potentially hinder progress your organization wishes to accomplish. By taking the time to learn a little of what motivates each generation involved and then capitalizing on the strengths and capabilities of each, you can make a winning team for your organization. Research indicates that people think and communicate based on the generation they grew up in. Each generation has very distinct behaviors, attitudes, habits, expectations and motivators. Learning to communicate with different generations can help to eliminate major confrontations and many misunderstandings within your organization. There is a lot of discussion and differing views on the starting and ending dates or birth years of each generation, as well as on the exact titles of some of the groupings. The birth years for the generations are subjective. There is no scientific basis to the determination of these years. The variation of years that may occur in generational charts is not significant enough to change the overall generational description. There are still underlying values, as well as personal and lifestyle characteristics that will correspond with each generation. Table 4 below is a generational timeline to identify generational terms and their corresponding dates in years. Table 4: Generational Timeline with Terms and Corresponding Years. Years Generational Terms 1922-1945 Matures, The “Silent” Generation, The Greatest Generation, Traditionalists 1946-1964 Baby Boomers 1965-1980 Generation X, Gen X, Xers 1981-2000 Generation Y, Gen Y, Echo Boomers 2001–current Generation Z, Millenials 76 43 Understanding yourself is the beginning to understanding how individuals within different generations may act and react. To which generation do you belong? Think about world events that shaped your thoughts and feelings. What do you think when someone asks you where and how Kennedy died? Do you first think of an assassination, a plane crash or cancer? How do you react when you need a new cell phone or computer? Are you excited to go shopping on-line or do you cringe and feel intimidated? Table 5 presents some of the characteristics that individuals within each generation share. Table 5: Personal, Lifestyle, and Workplace Characteristics by Generation. 23 PERSONAL AND LIFESTYLE CHARACTERISTICS BY GENERATION Veterans (1928-1948) Baby Boomers (1946-1964) Generation X (1964-1982) Generation Y (1982-2002) Core Values Respect for authority Conformers Discipline Optimism Involvement Skepticism Fun Informality Realism Confidence Extreme fun Social Family Traditional Nuclear Disintegrating Latch-key kids Merged families Education A dream A birthright A way to get there An incredible expense Communication Media Rotary phones One-on-one Write a memo Touch-tone phones Call me anytime Cell phones Call me only at work Internet Picture phones E-mail Dealing with Money Put it away Pay Cash Buy now, pay later Cautious Conservative Save, save, save Earn to spend WORK PLACE CHARACTERISTICS Veterans (1928-1948) Baby Boomers (1946-1964) Generation X (1964-1982) Generation Y (1982-2002) Work Ethic and Values Hard work Respect authority Sacrifice Duty before fun Adhere to rules Workaholics Work efficiently Crusading causes Personal Fulfillment Desire quality Question Authority Eliminate the task Self-reliance Want structure and direction Skeptical What’s next Multitasking Tenacity Entrepreneurial Tolerant Goal oriented Work Is…..An obligation An exciting Adventure A difficult challenge A contract A means to an end Fulfillment Leadership Style Directive Command-and-control Consensual Collegial Everyone is the same Challenge others Ask why To Be Determined Interactive Style Individual Team player Loves to have meetings Entrepreneur Participative Communications Formal Memo In person Direct Immediate E-mail Voice mail Text Feedback and Rewards No news is good news Satisfaction in a job well done Don’t appreciate it Money Title recognition Sorry to interrupt, but how am I doing? Freedom is the best reward Whenever I want it, at the push of a button Meaningful work Messages That Motivate Your experience is respected You are valued You are needed Do it your way Forget the rules You will work with other bright creative people Work and Family Life Ne’Er the twain shall meet No balance Work to live Balance Balance 23 Hammill, G. 2005. FDU Magazine, 12(2), available at: http://www.fdu.edu/newspubs/magazine/05ws/generations.htm 77 44 Following are some of the personal and lifestyle characteristics for each of the generations. • Traditionalists (1922 – 1945): Traditionalists were primarily raised in hardworking agriculturally based families during lean times at the turn of the last century. This generation believes you earn your own way and consider work a privilege. This group is civic minded and loyal to their country and any cause they choose to work with. They were raised in a paternalistic environment and taught to respect authority. In general they are good team players and conform to their work environment. • Baby Boomers (1946 – 1964): Baby Boomers were born following two World Wars. Many grew up in a time of affluence and were the first generation to genuinely expect the world to improve over time while growing up. They were the first generation exposed to large scale product marketing. This group is confident, independent, self reliant, challenges authority systems and the status quo. As a group they are achievement oriented, dedicated, career focused, and define themselves by professional accomplishments. They equate their position in work with their self-worth and are quite competitive in the workplace. They believe in hierarchal structure with ranks within the workplace and may have difficulty with flexible workplace trends. They believe that “face time” is quality time. They are optimistic and involved in activities of their choice. • Generation X (1965 – 1980): Generation X came of age during a time of two-income families, rising divorce rates and a faltering economy. Many women were working during this time, resulting in “latch- key” children, which resulted in individuals who are independent, resourceful and self-sufficient. This group values their freedom and being responsible. Many display a casual disdain for authority and dislike structured work hours. Most prefer a hands-off management philosophy and dislike being micromanaged. They may exhibit skepticism, while at the same time being fun-loving and preferring informality. • Generation Y (1981 – 2000): Generation Y were mostly nurtured and pampered by parents who did not want to make the same mistakes raising their families that they thought the previous generation made. As a result, Generation Y is confident, ambitious, and achievement oriented. They have high expectations, like challenges and are not afraid to question authority. This group desires flexible schedules and a better work and life balance than their parents. They are not interested in the “fast track” and prefer family time over work time. As children, they participated in play groups and team sports. They appreciate the input and affirmation others can give them. They are team oriented, loyal, and commit to activities where they can feel included and involved. They appreciate frequent praise and reassurance, feedback and guidance. This generation is a social group that likes to have fun but is still realistically grounded. They have grown up with technology and utilize it effectively and frequently in their daily lives, preferring to communicate through texting and emailing than face to face or phone contacts. Take some time and think about the team of individuals you are working with currently. Is there a little bickering going on? Are there difficulties between individuals which seems confusing to others? If there is, generational differences may be an issue to consider. Think about the individuals on your team. Does one of them appreciate specific work with guidelines? Does another person seem to be always calling a meeting to discuss business? Does another prefer working individually and with little supervision? Does one prefer working as part of a group and seek frequent feedback on how their work is progressing? Looking at the chart above determine which generation these individuals are a member of. Is what may have been seen as a personal issue actually a generational characteristic? Remember, Veterans love a handwritten note or list. Gen Yers prefer a text. Baby Boomers love meetings. Gen Yers may rather be working at home alone on a project meaningful to them personally. The pervasive belief of the Traditionalist and Baby Boomer generations is that a job is what you are, a calling. These generations have been characterized as living to work and are more likely to use the past as reference points for the present. “I remember when” can be insightful; however, encourage older generations to interpret their story rather than simply telling it. The younger generations may find these stories frustrating. The older generations are more likely to believe that “good things come to those who wait” and that patience contains a wealth of resources. These generations need to be aware that the younger generations may be more impatient and want to see rewards sooner. Members of the Traditionalist and Baby Boomer generations may have a tendency to believe that if someone isn’t physically involved in a job, they can’t actually be working. Physical effort may 78 45 be the most measurable to them. They may need to be educated as to how flex-time, telecommuting and new methods of communicating can be effective means of work within your organization. These two generations like to have a system for everything. Manufacturing was the center of the US economy when they entered the work force. They may be offended when younger generations discount, or even ignore, the procedures that have been in place for years. They also believe that technology will never overcome the value of hard work, and may still be uneasy about the capability and reliability of technology available to them. The younger generations, Gen X and Gen Y, think a job is a contract. They are more likely to focus on the outcome instead of the task. They want to be able to take the project and do it instead of performing the 10 step process that may have been designed for the same project 20 years ago. When it comes to personal time and work, balance is more important than money. These generations work to live. They prefer being given a clear definition of the desired outcome, what resources they have available and a deadline, then being allowed to work on their own to get the job done in the way they see best. To them, training, knowledge and experience equal versatility which ensures job satisfaction and long term security. They are looking for ways to enhance their own resume while working in a challenging and supportive environment. They want management to be a partner with them. They like team-oriented “best practices” work environments. These generations have a general philosophy that “life is too short to pay dues.” Growing up in a technologically advanced world with a sense of “instant gratification,” they believe there is no time to lose. Each generation has shared some of the same experiences, creating their general life philosophies and differences between people of different ages. Become aware of the differences between the generations. Use these differences to the benefit of your organization. These differences can make your organization vital and dynamic. References and Additional Resources Hammill, Greg. 2005 Mixing and Managing Four Generations of Employees, FDU Magazine Online, FDU’s Silberman College of Business. Lancaster, Lynne C., Stillman, David. 2002. When Generations Collide: Who They Are, Why They Clash, How to Solve the Generational Puzzle at Work. HarperCollins Publishers Inc. Kane, Sally. “The Multigenerational Workforce – Managing and Motivating Multiple Generations in the Legal Workplace” About.com Guide Karp, Hank; Fuller, Connie; Sirias, Danilo. 2002. Bridging the Boomer Xer Gap: Creating Authentic Teams for High Performance at Work. Palo Alto, Calif.: Davies-Black Publishing. Youth Participation by Micky Zurcher Consideration of youth on boards is often overlooked. By involving youth in local decision-making, they become assets and resources to a community in addition to fostering civic participation in their lives. The potential for young people to challenge, question and/or reshape local decision making process provides an inclusive committee of board representatives. Recognizing that young people have a civic voice in decision-making allows them to explore and challenge the decisions that are being taken today for the futures that they will inhabit. Enabling youth to reflect critically and carefully upon board decisions will enhance their capabilities and will offer personal and social futures which will help generate critical thinkers. Creating an opportunity for youth on boards provides another level of personal and social connectivity within the communities which they reside. Youth participation with boards provides an opportunity for youth to develop life-long skills. Early participation generates the capacities and structure needed for youth to engage in a meaningful public debate and new democratic structures. Building youth capacity to participate in meaningful processes can help make a difference in their role of working with other generations. 79 46 Youth who contribute have a special kind of vision, the kind that allows them to see beyond-beyond themselves so they can think of others, beyond today so they can consider what happens tomorrow (Lerner, 2007). The willingness of youth to become civically engaged is strongly intertwined by Lerner’s Positive Youth Development perspective, the Five C’s model: Competence, Confidence, Connection, Character, and Caring. Youth who have a role and awareness in society can express the Five C’s and be better prepared for civic engagement. Additional Resources Lerner, R. M. (2004). Liberty: Thriving and civic engagement among American youth. Thousand Oaks, CA: Sage. Lerner, R. M. (2007). The Good Teen. Three Rivers Press: New York. Avoiding Stagnation and Creating New Ideas by Tim Fine and Betsy Webb One of your board members has served for over 20 years. Similar issues arise and they are handled in a consistent manner. The board’s work is completed efficiently and predictably. How do you avoid stagnation and inject creativity into managing the board’s duties and purpose? If the board’s work is being completed with quality and accomplishing its purpose, you may not need to change anything you are doing. However, if the board feels stagnant, new ideas are not being generated, and this has become a problem in accomplishing the required tasks, then some changes may be required. When a board is newly formed it is easy to identify needs and goals to be addressed, ways to address them, and evaluation techniques to determine whether or not they were met with satisfaction. After initial tasks are met with success, however, the next steps the board should take and new goals will need to be identified. It can be beneficial for a board to re-visit the goals and objectives that were initially determined to be the top priorities. It is possible that, as times and situations change, so will topics that were determined to be most- important. There is potential for well-established boards to continue doing the same programming and stick with the same agendas because of historical precedence. While many of the goals and objectives will not change from year to year, the board must be prepared to adapt. Creating New Ideas through Brainstorming Typically, looking for new ideas and new ways to solve problems is considered something a board has to do upon formation. Once these items are accomplished they can be brushed aside. However, boards must remain viable and sustainable. Board members must come up with new ways to evaluate the priorities and the work of the Board. Often, a brainstorming session will help accomplish this task. Brainstorming is simply gathering suggestions, ideas, and information from a group of people regarding ways to accomplish a pre-determined goal or objective or set of goals or objectives. There are several ways that a brainstorming session can be accomplished and while they all have their benefits and drawbacks, they are meant to bring about ideas from a group in order to help the board determine priorities. There is one primary principle that must be adhered to during any brainstorming session. All ideas are good and no ideas should be criticized. It is important to set guidelines prior to the brainstorming session that allows all participants to think and contribute freely. There are several different methods to conduct brainstorming sessions but the most common approach is to use the group brainstorming method, which essentially allows for a diverse group of people to give their input. Group brainstorming allows for members of the group to draw on their personal experiences to accomplish a common task. When conducting a group brainstorming session, there are some steps that should be taken to ensure the session is effective including the following: • Find a comfortable meeting environment, and set it up ready for the session. • Appoint one person to record the ideas that come from the session. These should be noted in a format than everyone can see and refer to. Depending on the approach you want to use, you may want to record ideas on flip charts, whiteboards, or computers with data projectors. 80 47 • If people aren’t already used to working together, consider using an appropriate warm-up exercise or ice breaker. • Define the problem you want solved clearly, and lay out any criteria to be met. Make it clear that the objective of the meeting is to generate as many ideas as possible. • Give people plenty of time on their own at the start of the session to generate as many ideas as possible. • Ask people to give their ideas, making sure that you give everyone a fair opportunity to contribute. • Encourage people to develop other people’s ideas, or to use other ideas to create new ones. • Encourage an enthusiastic, uncritical attitude among members of the group. Try to get everyone to contribute and develop ideas, including the quietest members of the group. • Ensure that no one criticizes or evaluates ideas during the session. Criticism introduces an element of risk for group members when putting forward an idea. This stifles creativity and cripples the free running nature of a good brainstorming session. • Let people have fun brainstorming. Encourage them to come up with as many ideas as possible, from solidly practical ones to wildly impractical ones. Welcome creativity! • Ensure that no train of thought is followed for too long. Make sure that you generate a sufficient number of different ideas, as well as exploring individual ideas in detail. • In a long session, take plenty of breaks so that people can continue to concentrate. There are many strategies for avoiding stagnation mentioned in the book, The Board Members Guide: Making a Difference in Your Board and in Your Community (Adams, 2003). If you feel your board is stagnant, consider these additional steps: • Revisit the board’s purpose and strategic direction. Is your work reflective of the board’s purpose and plan? Do you need to have a discussion about the work of the board? Are there tasks that should be eliminated or added to the board’s work? • Committee work. Break up your board into smaller subcommittees and assign tasks to a smaller work group. Reticent board members may contribute more in a smaller group. Creatively assigning board members to subcommittees may inspire new conversations about the same issues. • Invite outside stakeholders. Invite community members to your meetings to add new perspectives and new ideas related to your purpose. • Invite outside experts. A new look at the same issue by an expert in the field (local or from outside your area) may add new information and solutions that have been implemented in other areas to current issues. • Read/research – go online. Research your subject area from a variety of sources. Find new ways to investigate your issues. Become an expert in the areas that your board addresses. • Attend other boards meetings. Go see how other boards are functioning and how they conduct business. You may learn something from another group that you can incorporate into your board. • Go on a field trip. Depending on your board’s purpose, set up a field trip to learn about the issues that directly affect the decisions you make. Visiting in person may re-energize your board members to their purpose. • Gov 2.0. Investigate Government 2.0, new electronic ways to connect your citizens to your work. Use a blog for community input. Investigate bar codes to share information. Be on the cutting edge of citizen engagement technology! Google Government 2.0 and see what you find. • Encourage new membership. If there hasn’t been any turn-over in board membership, consider leaving the board so new members can join. Board member turn-over can lead to new creative ideas. References and Additional Resources Adams, Richard (2003). The Board Members Guide: Making a Difference in Your Board and in Your Community. Academy for Leadership and Governance. p. 41-42 Brainstorming Techniques. Mind Tools Ltd: http://www.mindtools.com/brainstm.html 81 48 Strategic Board Planning By Paul Lachapelle Ultimately, your board should be committed to not only addressing the current tasks at hand, but also consider planning for the future. Strategic planning is a technique to proactively and constructively consider present trends and future scenarios. By conducting strategic planning, your board will be better prepared to address the many issues, some unanticipated and some conflicting, in the future. There are many tools and techniques to consider when planning; below are some suggested ideas to consider. Letting your Board ‘SOAR’ (Strengths, Opportunities, Aspirations, and Results) The SOAR method, an acronym standing for Strengths, Opportunities, Aspirations, and Results is used as a heuristic to understand the potential for board action related to meeting process and outcome. The method has been applied in many settings and diverse disciplinary areas, from community planning to nursing practice and patient care (Stravos, Cooperrider, & Kelly, 2003; Havens, Wood, & Leeman, 2006). A SOAR analysis is based on a process called Appreciative Inquiry, which provokes reflection and action focused on the positive attributes of a process and outcome, instead of the problems. For example, rather than posing questions such as the following: “What’s wrong with the people on this board?”; “Why isn’t this board doing better?”; and “What’s causing this conflict, and who is responsible?” inquiries are phrased using the following questions, for example: “Think of a time for this board when performance was high—what were you and the others doing?”; “What external factors supported these moments?”; and “How might this board function if we could expand the conditions that led to past successes?” The former set of questions assigns blame and encourages the demonization of government, as well as the disengagement of citizens; the latter set of questions embraces citizen obligation and responsibility to be a part of the process and solution. Ask board members to reflect on the following questions regarding the four categories of SOAR: 1. Strengths: What are our greatest assets? What expertise do we have or have access to? 2. Opportunities: What prospects for success exist? What options are available? 3. Aspirations: What is our preferred future? What specific goals do we have? 4. Results: How do we identify objectives that will lead to our goals? Who will do what, by when? What are the measurable outcomes? The SOAR method allows board members to focus on the positive attributes of the process and outcome, to assess how the board functions as a cohesive team, encourages introspection on effective communication and execution, and ultimately develops leadership skills within the board. Evaluating Progress: Identifying Indicators and Reaching your Goals Often, a board may not know if it is reaching its goals and achieving success. In order to know if you’re getting close to achieving your goals, you have to know what it is you what to achieve, how you will achieve it, and how you will measure or evaluate whether you are making progress. Identifying what it is you are evaluating is critical to understanding if you are being successful in reaching goals. Strategic visioning can be used by your board to identify future goals and work collectively to address board needs. Strategic visioning is a process in which individuals discuss past and present issues, determine positive qualities and assets, identify future goals, design a plan, carry out a series of actions, and evaluate the outcomes. Through a process of collective dialogue and reflection, strategic visioning has the potential to lead to board action by creating a “road map” to the future. There are generally five steps to a visioning process with corresponding actions and tasks (see Table 6). 82 49 Table 6: The Five Steps of Strategic Visioning24 Visioning Step Action Description Step 1: Where are we now?Inventory Find descriptive data; Identify values Step 2: Where are we going?Trends Analysis Gather trend data; Determine possible future scenarios Step 3: Where do we want to be?Vision Statement Identify preferred future Step 4: How do we get there?Action Plan Determine actions that support vision statement Step 5: Are we getting there?Implement and Monitor Implement plan; Monitor indicators In order for strategic visioning to be successful, it requires the process be organized, focused, and well- managed. It also requires the board be actively engaged in the process, eager for dialogue and change, and concerned about its future. Regardless of how a board undertakes strategic visioning, the process will likely lead to enhanced trust, increased skills, knowledge and abilities of board members, improved communication and relationships, and a sense of responsibility and teamwork. In order to evaluate your board’s goals adequately, you must understand the definition of an indicator and the characteristics of a good indicator. An indicator is a specific parameter that can be monitored to determine whether objectives are being met. Based on Phillips (2005), there are eight desirable characteristics of a good indicator: 1. Measurable: Indicators should be quantitative—subject to measurement. Indicators should be able to be counted, meaning you can assign a number to measure change that may result over a given period. 2 Reliable: Indicators should be capable of being measured precisely and accurately. If an indicator is reliable, it should also be repeatable and able to be measured accurately by different people. 3. Cost-Effective: Indicators should be capable of being measured cost-effectively, generally using simple equipment and techniques. A measurement that takes a long time to acquire or is cost-prohibitive is not likely to be analyzed over the long–term. 4. Significant: Indicators must relate to significant conditions or features. A good indicator should be capable of detecting changes and must relate to conditions or features that are important to the board. 5 Relevant: The relevancy of the indicator refers to the types of changes that are to be studied and should be from appropriate and related activities or situations. 6. Sensitive: Indicators should focus on sensitive components (early warning) and allow time for correcting. 7. Efficient: Indicators are most efficient if they represent broader conditions. Efficiency reduces the number of circumstances that must be monitored. 8. Responsive: The indicator you are monitoring should be responsive to change. An indicator is like a yardstick to measure how well the action plan is being carried out and whether the goals are being met. Good features of indicators can make it easier to measure the progress of meeting your board’s goals. When you are considering evaluating the work of a sub-committee or the progress of your strategic planning, consider identifying indicators and the characteristics of a good indicator. References Ames, S. 2006. Community visioning. In Steiner, F. R., & K. Butler, (eds.). Planning and Urban Design Standards. (pp. 39-40). Hoboken, NJ: John Wiley & Sons. Havens, D. S., Wood, S. O., & Leeman, J. 2006. Improving nursing practice and patient care: Building capacity with appreciative inquiry. Journal of Nursing Administration, 36(10), 463-470. Phillips, R. (Ed.). 2005. Community indicators measuring systems. Burlington: Ashgate Publishing Limited. Stravos, J., Cooperrider, D., & Kelly, D.L. 2003. Appreciative intent: Inspiration to SOAR: A new framework for strategic planning. AP Practitioner. Available at http://appreciativeinquiry.case.edu/uploads/Stavros%20 -StrategicInquiryArt.doc 24 Based on Ames (2006). 83 50 5. MONTANA BOARDS, DISTRICTS, COMMISSIONS, AND COMMITTEES Airport Airport Appeals Board The complete municipal airport board statutes are available in Montana Code Annotated 67-7-302. Creation and Purpose The governing body that designated the airport affected area shall act as an airport appeals board or appoint an airport appeals board that functions in the same manner as a board of adjustment provided for in Title 76, chapter 2. Membership If the governing body appoints an airport appeals board, the board must have at least three members (67-7-302). Authority If a governing body has appointed a board of adjustment under the provisions of 76-2-221 through 76-2-228 or 76-2-321 through 76-2-328, the governing body may designate the members of that board as the airport appeals board, in which case the terms of the members for the purposes of this chapter are concurrent with their terms as members of the board of adjustment. Funding If a governing body has appointed a board of adjustment under the provisions of 76-2-221 through 76-2-228 or 76-2-321 through 76-2-328, the governing body may designate the members of that board as the airport appeals board, in which case the terms of the members for the purposes of this chapter are concurrent with their terms as members of the board of adjustment. Airport Board The complete airport board statutes are available in Montana Code Annotated 67-10-202. Creation and Purpose The county, city, or town, acting individually or acting jointly as authorized by 67-10-102, having established an airport and acquired property for that purpose, may construct, improve, equip, maintain, and operate the airport. (67-10-202). The joint board may plan, acquire, establish, develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police any airport or air navigation facility or airport hazard to be jointly acquired, controlled, and operated (67-10-205). It should be noted that for airport statutes, the definition of municipality includes counties; see 67-1-101 for more information. Membership Residents of the city or county serve as board members (67-10-202). Public agencies acting jointly pursuant to 67-10-204 through 67-10-206 shall create a joint board that must consist of members appointed by the governing body of each participating public agency. The number of members to be appointed and their terms must be provided for in the joint agreement (67-10-205). Authority The board may adopt rules and establish fees or charges for the use of the airport upon the approval of the appointing power before they may take effect (67-10-202). A joint board shall organize, select officers for terms to be fixed by the agreement, and from time to time adopt and amend rules for its own procedure (67-10-205). Funding The airport board, upon approval from the governing authorities, may adopt rules and charge fees for the use of the airport. Any construction, improvement, equipment, maintenance, and operation expenses are paid by the governing bodies (67-10-202). Governing authorities may levy a tax upon the taxable property of the county for 84 51 airports and issue bonds upon voter approval (67-10-402). A joint fund shall be created and maintained into which shall be deposited the share of each of the constituent public agencies as provided by the joint agreement. Each of the constituent public agencies shall provide its share of the fund from sources available to each. Any federal, state, or other contributions or loans and the revenues obtained from the joint ownership, control, and operation of any airport or air navigation facility under the jurisdiction of the joint board shall be paid into the joint fund. Disbursements from such fund shall be made by order of the board, subject to the limitations prescribed in 67-10- 205(2)(67-10-206). Municipal Airport Authority The complete municipal airport authority statutes are available in Montana Code Annotated (67-11-102). Creation and Purpose Any municipality may, by resolution of its governing body, create a public body, corporate and politic, to be known as a municipal airport authority (67-11-102). Membership The governing body of the municipality shall, pursuant to the resolution, appoint not less than five persons as commissioners of the authority. The commissioners who are first appointed shall be designated to serve for terms of 1, 2, 3, 4, and 5 years, respectively, but thereafter each commissioner shall be appointed for a term of 5 years, except that vacancies occurring otherwise than by expiration of the term shall be filled for the unexpired term by the governing body (67-11-102). Authority The municipal airport authority shall be authorized to exercise its functions upon the appointment and qualification of the first commissioners thereof; or the governing body may by resolution determine to exercise any or all powers granted to such authorities in this chapter until or unless such powers are or have been conferred upon a municipal or regional airport authority (67-11-102). Funding The airport authority may certify annually to the governing bodies the amount of tax requested to be levied by each municipality participating in the creation of the airport authority, and subject to 15-10-420, the municipality shall levy the amount certified, pursuant to provisions of law authorizing cities and other political subdivisions of this state to levy taxes for airport purposes. The levy may not exceed the maximum levy that may have been established by the municipality or municipalities in the resolution creating the authority (67-11-301). Subject to 15-10-420, in counties supporting airports or airport authorities, a county tax levy as provided for in 67-10-402 may be made for airport authority purposes (67-11-302). Regional Airport Authority The complete regional airport authority statutes are available in Montana Code Annotated (67-11-103). Creation and Purpose Two or more municipalities may by joint resolution create a public body, corporate and politic, to be known as a regional airport authority (67-11-103). Membership The resolution creating a regional airport authority must create a board of not less than five commissioners; the number to be appointed, their term and compensation, if any, must be provided for in the resolution (67-11-103). Authority Each regional airport authority shall organize, select officers for terms to be fixed by agreement, and adopt and amend from time to time rules for its own procedure consistent with 67-11-104 (67-11-103). Funding The airport authority may certify annually to the governing bodies the amount of tax requested to be levied by each municipality participating in the creation of the airport authority, and subject to 15-10-420, the municipality shall levy the amount certified, pursuant to provisions of law authorizing cities and other 85 52 political subdivisions of this state to levy taxes for airport purposes. The levy may not exceed the maximum levy that may have been established by the municipality or municipalities in the resolution creating the authority (67-11-301). Subject to 15-10-420, in counties supporting airports or airport authorities, a county tax levy as provided for in 67-10-402 may be made for airport authority purposes (67-11-302). Economic Development / Infrastructure Business Improvement Districts The complete business improvement district statutes are available in Montana Code Annotated 7-12-1101. Creation and Purpose Business improvement districts are created by the governing authority on petition of 60% of the property owners (within the proposed district area), after the passage of a resolution of intent, public hearing and passage of a resolution of creation (7-12-1111, 1112, 1114, 1115). Business improvement districts promote the health, safety, prosperity, security, and general welfare of the inhabitants of the district. The members (called trustees) also aid in tourism, promotion, and marketing within the district (7-12-1102). Membership A board of trustees, appointed by the governing authority, governs the district. The board must be made of at least five and not more than seven property owners from within the district. Each trustee serves a four-year term (7-12-1121). Authority The resolution of creation details the functions to be carried out by the trustees. Trustees have the authority to promote business activity and private investment and can contract with the governing authority to maintain, operate, and repair parking garages, streets, alleys, malls, bridges, ramps, tunnels, landscaping, and other public facilities. The business improvement district may also beautify public areas and provide police, maintenance, and cleaning personnel for public areas (7-12-1131). Funding Trustees provide the governing authority with an annual operating budget and the amount of tax to be assessed. Any debts incurred by the district may be paid only out of the district funds and consequently county funds may not be used (7-12-1133, 1144). Rural Improvement Districts The complete rural improvement districts statutes are available in Montana Code Annotated 7-12-2101. Creation and Purpose Whenever the public interest or convenience may require, the governing authorities may order and create special improvement districts outside of the limits of incorporated towns and cities for the purpose of building, constructing, or acquiring by purchase one or more of the improvements of the kind described in 7-12-4102, in or for the benefit of the special improvement district (7-12-2102). There are special provisions within rural improvement districts for districts for lighting (7-12-2201) and sanitary and storm sewers (7-12-2301). Membership If a rural improvement district includes areas in more than one county, the board of county commissioners of each county in which any portion of the district is situated shall, upon creation of the district and at a joint session, appoint an initial board of three trustees to administer the affairs of the district. At the end of the term of a trustee, the board of county commissioners of the county represented by the trustee shall appoint a new trustee. In case of a vacancy by death, resignation, removal from the district, or otherwise, a trustee shall be appointed by the board of county commissioners of the county represented by the trustee to fill the vacancy. At least one trustee shall be appointed from each county within the district (7-12-2121) The county surveyor may be the engineer, as defined in 7-12-2101(6), for a rural improvement district (7-12- 2116). It shall be the duty of the county clerk to prepare all necessary schedules and resolutions levying the taxes 86 53 and assessments in such special improvement district (7-12-2118). Authority The board of trustees of a rural improvement district shall have all the powers and duties with respect to such district as the board of county commissioners has with respect to a district including the area of only one county (7-12-2123). Before ordering any of the proposed improvements, the trustees shall pass a resolution creating the special improvement district in accordance with the resolution of intention that is introduced and passed by the board (7-12-2113). Whenever sanitary or storm sewers, lights or light systems, waterworks plants, water systems, sidewalks, or any other special improvements petitioned for or created by the state or federal government have been made, built, constructed, erected, or accomplished as provided in this part, the board of county commissioners under whose jurisdiction the district was created or supervised or directed shall adequately and suitably maintain and preserve the improvements and keep those improvements in proper repair and operation, by contract or otherwise (7-12-2120). Funding All demands for incidental expenses in 7-12-2101(7), except for the administrative fee of the county and interest payable on warrants or bonds of the district, shall be presented to the county clerk by itemized bill, duly verified by oath of the demandant (7-12-2119). The whole cost of maintaining, preserving, and repairing improvements in any improvement district may, in the discretion of the board, be paid by assessing the entire district in the method provided for by 7-12-2108 (7-12-2120). Special Improvement Districts The complete special improvement district statutes are available in Montana Code Annotated 7-12-4101 and 7-12-4201. Subject to the powers granted and the limitations contained in this part, the powers and duties of the municipality and the procedure to be followed are as provided in parts 41 through 44 of chapter 12 for other types of special improvement district. Creation and Purpose Whenever the public interest or convenience requires, the city council may create special improvement districts for acquiring by purchase, building, constructing, or maintaining devices intended to protect the safety of the public from open ditches carrying irrigation or other water; for acquiring by purchase or building and constructing municipal swimming pools and other recreation facilities; and order the whole or a portion, either in length or width, of one or more of the streets, avenues, alleys, or places or public ways of the city (7-12- 4102). There are special provisions within special improvement districts for lighting districts (7-12-4301), street maintenance districts (7-12-4401), and street parking districts (7-12-4501). Membership The governing body serves as the authority over the district. A joint resolution of the city and county must be passed agreeing to the terms of the special improvement district prior to passing the resolution of intention or the resolution creating the special improvement district. A copy of the resolution of intention and the resolution creating the special improvement district must be provided to the county commissioners upon the passage of the respective resolutions. In all those cities where there is no city engineer, the city council is hereby authorized and empowered to appoint a suitable person to discharge the duties laid down as those of the city engineer in this part, and all provisions of this part applicable to the city engineer shall apply to such person so appointed (7-12- 4119). Authority The city or town council may create special improvement districts, designating them by number; extend the time for payment of assessments levied upon the districts for district improvements for a period not exceeding 20 years or, if refunding bonds are issued pursuant to 7-12-4194, for a period not exceeding 30 years; make the assessments payable in installments; and pay all expenses of whatever character incurred in making the improvements with special improvement warrants or bonds (7-12-4102). 87 54 Funding All demands for incidental expenses mentioned in 7-12-4101(7), except the administrative fee of the city and interest payable on warrants or bonds of the district, shall be presented to the city clerk by itemized bill, duly verified by oath of the demandant (7-12-4123). Television District The television district statutes available in Montana Code Annotated 7-13-2501 have been repealed. Local Port Authority The complete port authority statutes are available in Montana Code Annotated 7-14-1101. Creation and Purpose Any county or municipality may, by resolution of its governing body, create a local port authority, authorized to exercise its functions upon the appointment and qualification of the first commissioners (7-14-1101). The purposes of a port authority are to promote, stimulate, develop, and advance the general welfare, commerce, economic development, and prosperity of its jurisdiction and of the state and its citizens; endeavor to increase the volume of commerce within the jurisdiction of the port authority and the state; and cooperate and act in conjunction with other organizations, public or private, in the development of commerce, industry, manufacturing, services, natural resources, agriculture, livestock, recreation, tourism, health care, and other economic activity in the state (7-14-1104). Membership Upon the adoption of a resolution creating a local port authority, the governing body of the county or municipality shall, pursuant to the resolution, appoint or, at the option of the governing body, elect, as provided in 7-14-1106, not less than five persons as commissioners of the authority. The commissioners who are first appointed must be designated to serve for terms of 1, 2, 3, 4, and 5 years, respectively, but thereafter each commissioner must be appointed or elected for a term of 5 years, except that vacancies occurring other than by expiration of a term must be filled for the unexpired term by the governing body. There must be elected a presiding officer and vice presiding officer from among the commissioners. An authority may employ an executive director, secretary, technical experts, and other officers, agents, and employees, permanent and temporary, that it may require and shall determine their qualifications, duties, and compensation. An authority may delegate to one or more of its agents or employees the powers or duties that it considers proper (7-14-1103). Each commissioner shall hold office until a successor has been appointed or elected and has qualified. The certificates of the appointment, reappointment, or election of commissioners must be filed with the authority (7-14-1103). Authority An authority has all the powers necessary or convenient to carry out the purposes of this part, including but not limited to the power to, (subject to 15-10-420,) request annually the amount of tax to be levied by the governing body for port purposes, which request the governing body may in its discretion approve for port purposes (7-14-1111). Funding A commissioner of an authority is entitled to receive expenses, as provided in 2-18-501 through 2-18-503, incurred in the discharge of duties. Any county or municipality for which an authority has been created upon such terms, with or without consideration, as it may determine may lend or donate money to the authority, and may provide that all or a portion of the taxes or funds available or to become available to or required by law to be used by the county or municipality for port purposes be transferred or paid directly to the port authority as such funds become available to the county or municipality (7-14-1105). 88 55 Regional Port Authority The complete regional port authority statutes are available in Montana Code Annotated 7-14-1102. Creation and Purpose Two or more local governments may by joint resolution create a public body, corporate and politic, to be known as a regional port authority. A regional port authority may be increased from time to time to serve one or more additional counties or municipalities if each additional local government, each of the local governments then included in the regional authority, and the commissioners of the regional authority, respectively, adopt a joint resolution consenting to the increase (7-14-1102). The port authority shall promote, stimulate, develop, and advance the general welfare, commerce, economic development, and prosperity of its jurisdiction, endeavor to increase the volume of commerce, support the growth of all kinds of economic activity, and provide maximum opportunities for employment and improvement in the standard of living of its citizens (7-14-1104). Membership The resolution creating a regional port authority must create a board of not less than five commissioners. The number to be appointed, their term, and their compensation, if any, must be provided for in the resolution. Each regional port authority shall organize, select officers for terms to be fixed by agreement, and adopt and amend from time to time rules for its own procedure (7-14-1102). Authority The port authority may sue and be sued, acquire real or personal property, establish comprehensive port zoning regulations, and provide financial and other support to organizations in its jurisdiction whose purpose is to promote, stimulate, develop, and advance the general welfare and economic development of its jurisdiction (7- 14-1101). Funding Local port authority commissioners may submit the amount of tax to be levied by municipalities and counties participating, issue bonds, and charge fees for the use of services (7-14-1111, 1125, 1133). In counties supporting ports of port authorities, a levy authorized in 67-10-402 may be made for such purposes (7-14-1132). Local Improvement Districts The local improvement district statutes in Montana Code Annotated 7-14-2701 have been repealed. See 7-11- 1001 Special Districts — Creation and Governance, for more information. Technology Districts The complete television district statutes available in Montana Code Annotated 7-15-4295 have been repealed. See 7-15-4279 Targeted economic development districts. Industrial Districts The complete industrial district statutes available in Montana Code Annotated 7-15-4299 have been repealed. See 7-15-4279 Targeted economic development districts. Museum and Facilities for the Arts Board The museum and facilities for the arts board statutes in Montana Code Annotated 7-16-2201 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. 89 56 Elections Board of County Canvassers To view the complete statute describing county canvassers, refer to Montana Code Annotated (13-15-401). Creation and Purpose Every county will have a board of county canvassers (13-15-401). County canvassers certify votes cast within the county for federal, state and local elections including president and vice-president of the United States, congressional offices, state and district offices, state legislators, district court judges, and multi-county ballot issues. The certification is given to the state board of canvassers (13-15-501). Membership The governing authority of the county or consolidated local government is ex officio a member of board of county canvassers. If the governing authority cannot attend, the board of county canvassers must choose another county official to fill the vacant authority’s place. Any political subdivisions within the county, which participated in the election, may send their governing authorities to join in canvassing the votes (13-15-401). Authority The county canvassers shall open the returns, audit the tally books or other records of votes cast, determining the vote for each individual and for and against each ballot issue from each precinct, compile totals, and declare or certify the results (13-15-403). Funding No funding source is specifically authorized in the Montana Code Annotated. Fair Fair Commission The county fair commission statutes in Montana Code Annotated 7-21-3401 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Multi-County Fair Districts The county fair commission statutes in Montana Code Annotated 7-21-3401 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Joint Fair and Civic Center Commission The joint fair and civic center commission statutes in Montana Code Annotated 7-21-3401 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Fire Fire Hydrant Maintenance Districts The complete fire hydrant maintenance district statutes are available in Montana Code Annotated 7-12-4601. Creation and Purpose The city or town council shall estimate, as nearly as practicable, the entire cost of installing and maintaining fire hydrants each year and the portion thereof to be assessed against the property within the district. Before the first Monday in October, the council must pass and finally adopt a resolution levying and assessing the property within the district (7-12-4611). Membership Membership is subject to the authorization of the governing body. Authority If the governing authorities determines that the area, frontage, or combination options are inequitable, it 90 57 may assess the cost of fire hydrant installation and maintenance against the entire district, each lot or parcel of land within such district to be assessed for that part of the whole cost that its taxable valuation, including improvements, bears to the taxable valuation of the entire district; or against the entire district, each lot or parcel of land receiving service within the district to be assessed by apportioning the whole cost according to a ratio between the water meter size servicing each lot or parcel and the whole cost (7-12-4611). Funding The governing authorities may assess the costs of fire hydrant maintenance through a resolution of assessment or it may collect the costs by assessing them along with water and sewer fees (7-12-4612). Rural Fire Districts The complete rural fire district statutes are available in Montana Code Annotated (7-33-2101). Creation and Purpose The petition to create a rural fire district must be signed by a majority of tax-paying landowners within the proposed area (the difference between a rural fire district and fire service area is that service areas only require 30 landowners to sign the petition). Governing authorities must hold a public hearing and may then authorize the creation of the district (7-33-2101, 2103). Trustees provide firefighting and emergency response apparatus, equipment, personnel, housing, and facilities for the protection of the district. Trustees also appoint and form fire companies and prepare an annual budget (7-33-2105). Membership Governing authorities can contract with another entity to provide fire protection to the district. Alternately, authorities can appoint five trustees to govern and manage the district (7-33-2104). Authority Trustees have the authority to provide firefighting and emergency response apparatus, equipment, personnel, housing, and facilities for the protection of the district (7-33-2105). Funding Governing authorities may levy a tax upon all property within the district for the purpose of buying or maintaining fire protection facilities or for paying city, town, or private fire services for providing protection to the district (7-33-2109). A rural fire district may also issue bonds to provide funds for the cost of buying or maintaining fire protection facilities (7-33-2109). Fire Service Area The complete fire service area statutes are available in Montana Code Annotated 7-33-2401. Creation and Purpose The creation of a fire service area begins when at least thirty landowners in the proposed area petition the board of county commissioners. Fire Service Areas differ from Fire Districts that require a majority of the landowners in the proposed area to petition the governing authorities. The board of county commissioners must pass a resolution of intent to establish an area and hold a public hearing before passing the resolution creating the fire service area (7-33-2401). The fire service area may provide residents of the area with fire and emergency response equipment, personnel, facilities, and maintenance. The area may also contract for services and submit a fire code and a plan for enforcement to the Montana Department of Justice (7-33-2402). Membership The fire district area may be governed and managed by either the county commissioners, five trustees appointed by the county commissioners, or five elected trustees (7-33-2403). Authority Trustees have the authority to provide adequate and standard firefighting and emergency response apparatus, equipment, personnel, housing, and facilities for the protection of the district. They will appoint and form fire companies. Trustees must prepare an annual operating budget (7-33-2403). 91 58 Funding Fire service areas are financed through rates charged to structure owners in the district who benefit from the fire protection services offered. In the resolution creating the fire service area and by resolution as necessary after creation of the fire service area, the board of county commissioners shall establish a schedule of rates to be charged to owners of structures and owners of undeveloped land that are benefited by the services offered by the fire service area. The income of the fire service area may be used to procure equipment and buildings to house the equipment (7-33-2404). Governance Community Councils The complete statute detailing community councils can be found in Montana Code Annotated 7-3-223, 7-3- 317, 7-3-417, and 7-3-516, depending on the form of local government chosen. Creation and Purpose Community councils are established by local governments and adopted by voters and serve to advise governing authorities. Councils are elected from within the voting district or authorized by ordinance (7-3-516). Membership Community councils must consist of at least three members to advise the governing authority from that district; the term of office of elected officials may not exceed 4 years and shall be established when the form is adopted by the voters (7-3-223, 7-3-317, 7-3-417, and 7-3-516). Authority Community councils serve in an advisory capacity only (7-3-223, 7-3-317, 7-3-417, and 7-3-516). Funding No funds are specifically allocated in statute to this board. County Compensation Board The complete County Compensation Board statutes are available in Montana Code Annotated 7-4-2503. Creation and Purpose The county compensation board shall hold hearings annually for the purpose of reviewing the compensation paid to county officers. The county compensation board may consider the compensation paid to comparable officials in other Montana counties, other states, state government, federal government, and private enterprise (7-4-2503). Membership The county compensation board consists of the county commissioners, three of the county officials described in subsection 1 (county treasurer, county clerk and recorder, clerk of the district court, county assessor, county superintendent of schools, county sheriff, county surveyor in counties where county surveyors receive salaries as provided in 7-4-2812, justice of the peace, county coroner, and county auditor), the county attorney, two to four resident taxpayers appointed initially by the board of county commissioners to staggered terms of 3 years, with the initial appointments of one or two taxpayer members for a 2-year term and one or two taxpayer members for a 3-year term, and one resident taxpayer appointed by each of the three county officials described in subsection 1 (although not mandatory). Authority The county compensation board shall prepare a compensation schedule for the elected county officials, including the county attorney, for the succeeding fiscal year. The schedule must take into consideration county variations, including population, the number of residents living in unincorporated areas, assessed valuation, motor vehicle registrations, building permits, and other factors considered necessary to reflect the variations in the workloads and responsibilities of county officials as well as the tax resources of the county. A recommended compensation 92 59 schedule requires a majority vote of the county compensation board, and at least two county commissioners must be included in the majority. Funding Funding for this board is not mentioned in the statutes. Health Solid Waste Management District The complete solid waste management district statutes available in Montana Code Annotated 7-13-201 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Hospital Districts The complete hospital district statutes are available in Montana Code Annotated 7-34-2101. Creation and Purpose The creation of the hospital district begins when citizens within the proposed district petition the governing authorities. A public hearing is held, followed by a formal election. If a majority of citizens in the district vote in favor of creation, governing authorities are authorized to establish the hospital district (7-34-2101, 2103, 2106, 2109, 2114). Hospital districts are responsible for the acquisition, betterment, operation, maintenance, and administration of hospital facilities (7-34-2122). Membership Three to five trustees, elected by voters, govern and manage the hospital district. The number of trustees is determined in the hospital district bylaws. Trustees serve a three year terms (7-34-2115, 2118). Remaining trustees appoint new trustees to fill vacancies on the board. An appointed trustee will serve out the remaining term before the next trustee election (7-34-2121). Authority The hospital district may acquire property, adopt rules for the administration and operation of hospital facilities, collect charges for all services and facilities provided and made available by it, and may obtain insurance (7-34- 2122). Funding Hospital districts may issue notes and bonds to finance acquisition, furnishing, equipping, improving, extending, and bettering the hospital facilities. Bonds can provide working capital for a new hospital while notes can supply working capital for the district (7-34-2131). Health Care Facilities Commission The complete health care facilities commission statute is available in Montana Code Annotated (7-34-2202). Creation and Purpose Governing authorities may create a health care facilities commission. The health care facilities commission will manage local health care facilities. Other responsibilities will be outlined in the resolution creating the health care facilities commission (7-34-2202). Membership The governing authorities detail membership qualifications in the resolution creating the health care facilities commission (7-1-2). Authority The health care facilities commission will manage local health care facilities. Other responsibilities will be outlined in the resolution creating the health care facilities commission (7-34-2201). Funding The governing authorities detail finance options (subject to the general board statutes (7-1-201)) in the resolution 93 60 creating the health care facilities commission. The commission may, under the limitations and restrictions prescribed by law, lease county buildings, equipment, furniture, and fixtures for health care facility purposes, with full power of lessor except as limited in this section, upon the terms and conditions that the board may decide upon. The rentals received under the lease or leases must be paid into the general fund of the county. Also, money in the county general fund may be transferred to a state agency to be used as matching funds for the receipt of federal money for health care purposes (7-34-2204). County Boards of Health The complete county health board statutes are available in Montana Code Annotated 50-2-104. Creation and Purpose The purpose of the board is to supervise destruction and removal of all sources of disease-causing filth, guard against the introduction of communicable disease, supervise sanitary inspections of public establishments, and control and dispose of sewage that is not otherwise regulated. The board must appoint a local health officer (50- 2-116). Membership Board membership is made up of either the county commissioners and two appointed members or at least five appointed members who serve at the commissioners’ pleasure. Board members serve three year terms (50-2-104). Authority In order to carry out the purposes of the public health system, in collaboration with federal, state, and local partners, each local board of health shall appoint and fix the salary of a local health officer who has the necessary education and credentials (50-2-116). The local health board shall adopt and enforce quarantine to prevent the spread of communicable diseases and furnish treatment for persons who have a communicable disease, abate nuisances affecting public health and safety, reimburse local health officials for necessary expenses, maintain sewage treatment systems, and adopt fees to regulate to control and disposal of sewage from private and public settings (50-2-116). Funding Health boards are financed by an appropriation from the general fund of the county (50-2-109). The department may accept funds for public health from an agency of the federal government or from any other agency or person and allocate funds to local boards (50-2-103). Local boards are financed by general fund appropriations, special levy appropriations, state and federal funds available, and contributions from school boards and other official and nonofficial agencies. There is within the state special revenue fund a local board inspection fund account (50-2-108). City Boards of Health The complete city health board statutes are available in Montana Code Annotated 50-2-105. Creation and Purpose The purpose of the board is to supervise destruction and removal of all sources of disease-causing filth, guard against the introduction of communicable disease, supervise sanitary inspections of public establishments, and control and dispose of sewage that is not otherwise regulated. The board must appoint a local health officer (50- 2-116). Membership There is a city board of health in each first- and second-class city consisting of five persons who are appointed by the governing body of the city and serve at its pleasure. Terms of appointed members shall be staggered and shall be for 3 years each. The governing body of the city shall establish the staggered order of terms and all regulations necessary to establish and maintain the board (50-2-105). Authority In order to carry out the purposes of the public health system, in collaboration with federal, state, and local 94 61 partners, each local board of health shall appoint and fix the salary of a local health officer who has the necessary education and credentials (50-2-116). The local health board shall adopt and enforce quarantine to prevent the spread of communicable diseases and furnish treatment for persons who have a communicable disease, abate nuisances affecting public health and safety, reimburse local health officials for necessary expenses, maintain sewage treatment systems, and adopt fees to regulate to control and disposal of sewage from private and public settings (50-2-116). Funding City boards are financed by an appropriation from the general fund of the city after approval of a budget. The department may accept funds for public health from an agency of the federal government or from any other agency or person and allocate funds to local boards (50-2-103). Local boards are financed by general fund appropriations, special levy appropriations, state and federal funds available, and contributions from school boards and other official and nonofficial agencies. There is within the state special revenue fund a local board inspection fund account (50-2-108). City-County Boards of Health The complete city health board statutes are available in Montana Code Annotated 50-2-106. Creation and Purpose By mutual agreement between the county commissioners and the governing body of the city or cities, the county and a city or cities may form a city-county board of health (50-2-106). The purpose of the board is to supervise destruction and removal of all sources of disease-causing filth, guard against the introduction of communicable disease, supervise sanitary inspections of public establishments, and control and dispose of sewage that is not otherwise regulated. The board must appoint a local health officer (50-2-116). Membership The board must be composed of at least five persons. A city-county board of health consists of one person appointed by the county commissioners who serves at their pleasure; one person appointed by the governing body of each city that participates in the city-county board who serves at the pleasure of the appointing governing body; additional members appointed by the county commissioners and governing body or bodies of the city or cities participating in the city-county board as mutually agreed upon who serve at the pleasure of the appointing commissioners or governing body. Terms of appointed members must be staggered and must be for 3 years each. By mutual agreement between the county commissioners and the governing body of the city or cities, they shall establish the staggered order of terms and all regulations necessary to establish and maintain the board (50-2-106). Authority In order to carry out the purposes of the public health system, in collaboration with federal, state, and local partners, each local board of health shall appoint and fix the salary of a local health officer who has the necessary education and credentials (50-2-116). The local health board shall adopt and enforce quarantine to prevent the spread of communicable diseases and furnish treatment for persons who have a communicable disease, abate nuisances affecting public health and safety, reimburse local health officials for necessary expenses, maintain sewage treatment systems, and adopt fees to regulate to control and disposal of sewage from private and public settings (50-2-116). Funding The county commissioners and governing body of each participating city may mutually agree upon the division of expenses under 7-6-4001 or 15-10-420. 95 62 District Boards of Health The complete health districts statutes are available in Montana Code Annotated 50-2-107. Creation and Purpose By mutual agreement, two or more adjacent counties may unite to create a district board of health. First- and second-class cities located in those counties may elect to be included in the district (50-2-107). The purpose of the board is to supervise destruction and removal of all sources of disease-causing filth, guard against the introduction of communicable disease, supervise sanitary inspections of public establishments, and control and dispose of sewage that is not otherwise regulated. The board must appoint a local health officer (50-2-116). Membership A district board of health consists of one person appointed by the county commissioners of each county in the district who serves at the pleasure of the appointing commissioners; one person appointed by the governing body of each city that elects to be included in the district who serves at the pleasure of the appointing governing body; additional members appointed by the county commissioners of each county that participates in the district board as mutually agreed upon who serve at the pleasure of the appointing commissioners (50-2-107). Authority In order to carry out the purposes of the public health system, in collaboration with federal, state, and local partners, each local board of health shall appoint and fix the salary of a local health officer who has the necessary education and credentials (50-2-116). The local health board shall adopt and enforce quarantine to prevent the spread of communicable diseases and furnish treatment for persons who have a communicable disease, abate nuisances affecting public health and safety, reimburse local health officials for necessary expenses, maintain sewage treatment systems, and adopt fees to regulate to control and disposal of sewage from private and public settings (50-2-116). Funding District boards are financed by appropriations from the general funds of each county in the district in proportion to the population in each county. First- and second-class cities which elect to be included in the district contribute to the county in which they are located in the way provided for city-county boards under (50-2-111). All funds shall be deposited with the county treasurer of one of the counties as agreed upon by the commissioners of the counties in the district. The county treasurer shall disburse the funds as county funds (50-2-112). Housing and Building County Building Commission For the complete description of the county building commission, refer to Montana Code Annotated 7-8-2103. Creation and Purpose Governing authorities may create a building commission to assist the authorities to erect, furnish, equip, expand, improve, and maintain public buildings as may be necessary. In addition, a city and a county may, by contract, construct, purchase, or lease and manage a city-county building to house the offices of city government and county government (7-8-201). Membership Membership is subject to General Board Statutes (7-1-201). Authority The commission has jurisdiction and power to insure the county buildings, and must complete an inventory covering all county tools, machinery, and equipment (7-6-2104 and 7-6-2111). Funding County commissioners, in the county building commission’s resolution of creation, will detail the commission funding. 96 63 County Housing Authority The complete county housing authority statutes are available in Montana Code Annotated 7-15-2102. Creation and Purpose Housing authorities provide decent, safe, sanitary dwelling accommodations to rural residents of low income. Housing authority members manage and operate rural housing projects in an efficient manner at the lowest possible cost (consistent with their charge) and without profit. The housing projects may include purchase, leasing, renting or selling of housing to low income rural residents (7-15-2113, 2121, and 2122). County residents petition the governing authorities for the need of a housing authority. After holding a public hearing, authorities may adopt a resolution finding the existence of unsanitary or unsafe dwelling accommodations (7-15-2102, 2105). Membership The governing body appoints five commissioners to act as a housing authority. The presiding officer is designated by the governing body. Housing authority commissioners serve five year terms and serve until a qualified successor is appointed (7-15-2105, 4431, 4432). Authority Housing authorities created for counties are empowered and authorized to borrow money, accept grants, and exercise other powers to provide low-income housing for rural residents. Authorities may enter into leases or purchase agreements, and rent or sell dwellings (7-15-2121 and 2122). Funding Housing authorities may borrow money and accept grants to provide housing (7-15-2121). Municipal Housing Authority The complete municipal housing authority statutes are available in Montana Code Annotated 7-15-4401 and 7-15-4501. Creation and Purpose Unsanitary or unsafe dwelling accommodations exist in urban areas throughout the state, and such unsafe or unsanitary conditions arise from overcrowding and concentration of population, the obsolete and poor conditions of buildings, improper planning, excessive land coverage, lack of proper light, air, and space, unsanitary design and arrangement, lack of proper sanitary facilities, and the existence of conditions which endanger life or property by fire and other causes (7-15-4401). It is in the public interest that work on such projects be instituted as soon as possible and the necessity for the provisions hereinafter enacted is hereby declared, as a matter of legislative determination, to be in the public interest (7-15-4401). The ordinance authorized by 7-15-4406(2) is not effective until it has been approved by a majority vote of the registered electors within the city limits voting either at a special election held in conjunction with a regular or primary election or at a general election (7-15-4408). Membership An authority consists of seven commissioners appointed by the mayor. The mayor shall designate the first presiding officer. A commissioner may not be a city official. Two of the commissioners must be directly assisted by the housing authority and are known as resident commissioners. The staff of the housing authority may not involve itself in the nomination or appointment of resident commissioners, except that the housing authority shall notify all of the households directly assisted by the housing authority when a resident commissioner position is vacant (7-15-4431). Authority An authority shall exercise public powers and have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this part and part 45, including the following powers in addition to others herein granted. An authority shall have power to sue and be sued; have a seal and alter the same at pleasure; have 97 64 perpetual succession; make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; make and from time to time amend and repeal bylaws and rules, not inconsistent with this part and part 45, to carry into effect the powers and purposes of the authority. In addition to all of the other powers herein conferred upon it, an authority may do all things necessary and convenient to carry out the powers expressly given in this part and part 45 (7-15-4451). Funding The governing authority shall first, make an estimate of the amount of money necessary for the administrative expenses and overhead of the housing authority during the first year following the incorporation of the housing authority; second, shall appropriate such amount to the authority out of any money in the city treasury not appropriated to some other purpose; and third, shall cause the money so appropriated to be paid the authority as a donation (7-15-4417). In addition to the power granted in 7-15-4417, any municipality located in whole or in part within the boundaries of a housing authority may, annually and from time to time, make donations or advances to the authority of such sums as the municipality in its discretion may determine (7-15-4418). Land Use and Planning County Board of Park Commissioners The complete county board of park commissioners statutes are available in Montana Code Annotated 7-16- 2301. Creation and Purpose Governing authorities may, by resolution, create a county board of park commissioners (7-16-2301). The county board of park commissioners govern the use of park land and facilities (7-16-2322). Membership The number of members, terms, and special qualifications of members will be determined by the governing authorities in the resolution creating the county board of park commissioners (7-16-2301). Authority The county board of park commissioners make rules to govern the use of park land and facilities. The board also employs a park superintendent to manage park lands. A county park warden may be employed by the board to enforce the rules (7-16-2322). The park commissioners may lease lands owned by the county (7-16-2323). The board may make all contracts necessary or convenient for carrying out any and all of the powers (7-16-2325). Funding The county board of park commissioners is only authorized to spend money existing in the county park fund. This fund is comprised of revenue from sale of hay, trees, plants, or the leasing of facilities and lands. Park commissioners may accept federal grants and loans (7-16-2328, 2329, 2332). County Park District County Park District statutes in Montana Code Annotated 7-16-2401 through 7-16-2443 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Municipal Board of Park Commissioners The complete municipal board of park commissioners statutes are available in Montana Code Annotated 7-16- 4201. Creation and Purpose There may be created by ordinance in all cities of the first and second class a board of park commissioners, whether the cities are a council form of government or city-manager form (7-16-4201). 98 65 Membership The number of members, terms, and special qualifications of members will be determined by the governing authorities in the resolution creating the municipal park commission and must meet the same requirements as those provided for a county resolution in 7-1-201 (7-16-4201). Authority The city or town council has power to lay out, establish, open, alter, widen, extend, grade, pave, or otherwise improve parks and to vacate the same (7-16-4101). The municipal board of park commissioners has the authority to make all rules necessary or convenient to protect and promote the growth of trees and plants in parks, streets, avenues, alleys, boulevards, and public places under the care and control of the board and for the protection of all birds inhabiting, frequenting, or nesting in the parks, streets, avenues, boulevards, and public places. The board also has the authority to make all rules for the use of parks by the public; and to provide penalties for the violation of the rules (7-16-4222). The board of park commissioners shall have the power and be charged with the duty to lease all lands owned by the city heretofore acquired for parks, whether within or without the city, which, in the judgment of the board, it shall not be advisable to improve as parks, upon such terms and conditions as the board shall deem to be for the best interests of the city (7-16-4223). Funding Subject to 15-10-420 and for the purpose of procuring, equipping, and maintaining public parks, swimming pools, skating rinks, playgrounds, civic centers, youth centers, museums, and combination of purposes and facilities, the council or commission in any city or town may levy, in addition to the levy for general municipal or administrative purposes, a tax on the taxable value of all taxable property in the city or town (7-16-4105). Cemetery Districts Cemetery district statutes in Montana Code Annotated (7-35-2101 through 7-35-2150) have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. County Tax Appeal Board The complete county tax appeal board statutes are available in Montana Code Annotated 15-15-101. Creation and Purpose Governing authorities shall appoint a tax appeal board. The purpose of the board is to hear taxpayers’ appeals from property tax assessments and change any assessment or fix the assessment at some other level (15-15-101). Membership Governing authorities will appoint a three member board. Each member must be a resident of the county and will serve a three year term (15-15-101). At the organizational meeting the members shall choose one member as the presiding officer of the board. In counties that have appointed more than three members to the county tax appeal board, only three members shall hear each appeal. The presiding officer shall select the three members hearing each appeal. Authority The county tax appeal board will hear taxpayers’ appeals from property tax assessments. The board is authorized to change any assessment or fix an assessment at another level in connection with an appeal (15-15-101). Board members may also reduce the valuation of property when the taxpayer (who is applying for the reduction in valuation) has filed the written application for reduction, is in attendance at the county tax appeal board meeting, and has been questioned about the value of their property (15-15-102, 103). Funding No monetary funds are handled by this board. Board members receive compensation of $45 dollars a day and travel expenses only when the board meets to hear taxpayers’ appeals or when they are attending meetings called by the state tax appeal board (15-15-101). 99 66 County Planning Boards The complete planning board statutes are available in Montana Code Annotated 76-1-101. Creation and Purpose The governing body of any county may create a planning board in order to promote the orderly development of its governmental units and its environs (76-1-101). The purpose is to encourage local units of government to improve the present health, safety, convenience, and welfare of their citizens and to plan for the future development of their communities to the end that highway systems be carefully planned; that new community centers grow only with adequate highway, utility, health, educational, and recreational facilities; that the needs of agriculture, industry, and business be recognized in future growth; that residential areas provide healthy surroundings for family life; and that the growth of the community be commensurate with and promotive of the efficient and economical use of public funds (76-1-102). Membership County planning boards must include at least five members appointed by the governing authorities. At least one member of a county planning board existing on or formed after July 1, 1973, must be a member of the governing board of a conservation district as provided for in 76-1-211. If a city or town subsequently becomes represented on the county planning board pursuant to 76-1-111, additional members of the planning board representing the cities or towns must be appointed by the respective city councils (76-1-211). Authority The planning board serves to advise the local governing body. The board may propose policies for: subdivision plats; development of public ways, places, structures, and utilities; issuance of improvement location permits; and laying out public ways and services. Upon request of the public body, the planning board will prepare a growth policy to promote public health, safety, morals, convenience, general welfare, efficiency, and the economy (76-1-106). The governing authorities shall also require the county planning board to recommend boundaries and appropriate regulations for the various zoning districts (76-2-204). Funding After the governing authorities have, by ordinance and resolution, created a planning board, the governing bodies represented upon such board may appropriate funds to carry out duties of the planning board. When a planning board has been created by agreement of more than one governmental unit, the governing bodies of the governmental units which have created the board shall agree upon the proportion of expenditures to be borne by each such unit and may budget and appropriate funds necessary for the respective shares thus agreed upon (76-1-402). City Planning Boards The complete planning board statutes are available in Montana Code Annotated 76-1-101. Creation and Purpose The governing body of any city or town may create a planning board in order to promote the orderly development of its governmental units and its environs (76-1-101). The purpose is to encourage local units of government to improve the present health, safety, convenience, and welfare of their citizens and to plan for the future development of their communities to the end that highway systems be carefully planned; that new community centers grow only with adequate highway, utility, health, educational, and recreational facilities; that the needs of agriculture, industry, and business be recognized in future growth; that residential areas provide healthy surroundings for family life; and that the growth of the community be commensurate with and promotive of the efficient and economical use of public funds (76-1-102). Membership A city planning board shall consist of not less than seven members to be appointed as follows: one member to be appointed by the city council from its membership; one member to be appointed by the city council, who may in the discretion of the city council be an employee or hold public office in the city or county in which the city is located; one member to be appointed by the mayor upon the designation by the county commissioners of the county in which the city is located; four citizen members to be appointed by the mayor, two of whom shall be 100 67 resident freeholders within the urban area, if any, outside of the city limits over which the planning board has jurisdiction under this chapter and two of whom shall be resident freeholders within the city limits (76-1-221). The clerk of the city council shall certify members appointed by its body. The certificates shall be sent to and become a part of the records of the planning board. The mayor shall make similar certification for the appointment of citizen members (76-1-221). Authority The planning board serves to advise the local governing body. The board may propose policies for: subdivision plats; development of public ways, places, structures, and utilities; issuance of improvement location permits; and laying out public ways and services. Upon request of the public body, the planning board will prepare a growth policy to promote public health, safety, morals, convenience, general welfare, efficiency, and the economy (76-1-106). The governing authorities shall also require the county planning board to recommend boundaries and appropriate regulations for the various zoning districts (76-2-204). Funding After the governing authorities have, by ordinance and resolution, created a planning board, the governing bodies represented upon such board may appropriate funds to carry out the duties of the planning board. When a planning board has been created by agreement of more than one governmental unit, the governing bodies of the governmental units which have created the board shall agree upon the proportion of expenditures to be borne by each such unit and may budget and appropriate the funds necessary for the respective shares thus agreed upon (76-1-402). City-County Planning Boards The complete planning board statutes are available in Montana Code Annotated 76-1-101. Creation and Purpose The governing body of any city or town, the governing bodies of more than one city or town, or the governing body of any county or any combination thereof may create a planning board in order to promote the orderly development of its governmental units and its environs (76-1-101). The purpose is to encourage local units of government to improve the present health, safety, convenience, and welfare of their citizens and to plan for the future development of their communities to the end that highway systems be carefully planned; that new community centers grow only with adequate highway, utility, health, educational, and recreational facilities; that the needs of agriculture, industry, and business be recognized in future growth; that residential areas provide healthy surroundings for family life; and that the growth of the community be commensurate with and promotive of the efficient and economical use of public funds (76-1-102). Membership A city-county planning board consists of no fewer than nine members to be appointed as follows: two official members who reside outside the city limits but within the jurisdictional area of the city-county planning board to be appointed by the board of county commissioners, who may in the discretion of the board of county commissioners be employed by or hold public office in the county; two official members who reside within the city limits to be appointed by the city council, who may in the discretion of the city council be employed by or hold public office in the city; two citizen members who reside within the city limits to be appointed by the mayor of the city; two citizen members who reside within the jurisdictional area of the city-county planning board to be appointed by the board of county commissioners (76-1-201). The ninth member is to be appointed by the board of supervisors of a conservation district provided for in 76- 15-311 from the members or associate members of the board of supervisors, subject to approval of the members provided for in subsections (1)(a) through (1)(d) in 76-1-201. However, if there is no member or associate member of the board of supervisors of a conservation district who is able or willing to serve on the city-county planning board, the ninth member of the city-county planning board must be selected by the eight officers and citizen members pursuant to subsections (1)(a) through (1)(d) of 76-1-201, with the consent and approval of the board of county commissioners and the city council (76-1-201). 101 68 Authority The planning board serves to advise the local governing body. The board may propose policies for: subdivision plats; development of public ways, places, structures, and utilities; issuance of improvement location permits; and laying out public ways and services. Upon request of the public body, the planning board will prepare a growth policy to promote public health, safety, morals, convenience, general welfare, efficiency, and the economy (76-1-106). The governing authorities shall also require the county planning board to recommend boundaries and appropriate regulations for the various zoning districts (76-2-204). Funding After the governing authorities have, by ordinance and resolution, created a planning board, the governing bodies represented upon such board may appropriate funds to carry out the duties of the planning board. When a planning board has been created by agreement of more than one governmental unit, the governing bodies of the governmental units which have created the board shall agree upon the proportion of expenditures to be borne by each such unit and may budget and appropriate the funds necessary for the respective shares thus agreed upon (76-1-402). Joint or Consolidated Planning Boards The complete joint or consolidated planning board statutes are available in Montana Code Annotated 76-1-112. Creation and Purpose Any existing city, county, or city-county planning board may form a joint or consolidated planning board with any other existing city, county, or city-county planning board or with any combination of these boards. The manner of combination must be by interlocal agreement of the cities, counties, and towns represented on the existing planning boards pursuant to 7-11-1. The interlocal agreement must state the name of the combined board; specify whether a joint or combined board is formed; specify the representation, means and manner of appointment, membership duties, and manner of sharing costs of the combined board, be on any basis agreeable to the governing bodies of the cities, counties, and towns represented on the existing planning boards (76-1- 112). The purpose is to encourage local units of government to improve the present health, safety, convenience, and welfare of their citizens and to plan for the future development of their communities to the end that highway systems be carefully planned; that new community centers grow only with adequate highway, utility, health, educational, and recreational facilities; that the needs of agriculture, industry, and business be recognized in future growth; that residential areas provide healthy surroundings for family life; and that the growth of the community be commensurate with and promotive of the efficient and economical use of public funds (76-1-102). Membership Membership of any city-county board formed pursuant to this section must have representation consistent with the requirements of 76-1-201 (76-1-112). Authority If a consolidated board is formed, the existing city, county, and city-county planning boards must be dissolved and the consolidated board has the rights, duties, powers, and obligations of the existing planning boards. If a joint board is formed, the existing planning boards may not be dissolved and the joint board has the rights, duties, powers, and obligations that are contained in the interlocal agreement (76-1-112). Funding After the governing authorities have, by ordinance and resolution, created a planning board, the governing bodies represented upon such board may appropriate funds to carry out the duties of the planning board. When a planning board has been created by agreement of more than one governmental unit, the governing bodies of the governmental units which have created the board shall agree upon the proportion of expenditures to be borne by each such unit and may budget and appropriate the funds necessary for the respective shares thus agreed upon (76-1-402). 102 69 County Planning and Zoning Commission The complete planning and zoning commission statutes are available in Montana Code Annotated 76-2- 101. Title 76, Chapter 2 of the Montana Code Annotated addresses Land Resources Planning and Zoning. Within this Chapter is Part 1 describing Planning and Zoning Commissions and Part 2 describing Zoning Commissions. The fundamental difference between the Planning and Zoning Commission and the Zoning Commission involves the membership and methods of creation. For further details, see County Zoning Commission, Municipal Zoning Commission, and the Zoning Boards of Adjustment. Creation and Purpose Upon receiving a petition signed by 60% of “affected freeholders,” county commissioners may create a planning and zoning district and appoint a planning and zoning commission (76-2-101). Members of the commission are charged with furthering the health, safety, and general welfare of the people of the county and may make and adopt a development pattern for the physical and economic development of the planning and zoning district (76-2-104). Membership The governing authorities will appoint the planning and zoning commission. The seven member commission consists of: Three county commissioners; The county surveyor; Two citizen members, each of whom resides in a different planning and zoning district; and a county official appointed by the county commissioners. Citizen members serve two year terms (76-2-101, 102). Authority The planning and zoning commission is an advisory board. The commission develops and adopts a development pattern resolution for the physical and economic development of the planning and zoning district. The development pattern shows the commission’s recommendations for development districts. Among the details are future uses of the land or buildings (including construction and maintenance of certain buildings or industries, and open spaces as well as future building setback lines (76-2-104)). The resolution is then submitted to the county commissioners for approval (76-2-107). The commission may provide building permits and collect fees from the sale of permits. The fees go into the general fund of the county (7-2-108). The resolutions adopted by this commission will not regulate grazing, horticultural, agricultural, or timbered lands (76-2-109). Appeals from this board are taken to the district court (76-2-110). Funding Finances necessary to pay employees and carry out the work of the planning and zoning commission are paid from a levy on taxable property within the district (76-2-102). County Zoning Commission The complete county zoning commission statute is available in Montana Code Annotated 76-2-201. Creation and Purpose The county commissioners may create a zoning commission to provide an additional method of creating or amending zoning regulations or zoning classifications (76-2-220) for the purpose of promoting the public health, safety, morals, and general welfare (76-2-201). Membership The commission must be composed of at least five citizen members appointed at large from the zoning district. The county commissioners may adopt bylaws for the zoning commission pertaining to the qualifications of the members and such other matters as the commissioners consider necessary (76-2-220). Authority The commission is advisory and recommends amendments to zoning regulations and classifications. These recommendations are submitted to county commissioners (76-2-220). Funding The board of commissioners also provide for the issuance of location or conformance permits and may collect a fee for each such permit. The proceeds of such fees shall be deposited in the general fund of the county (76-2-207). 103 70 County Zoning Board of Adjustment The complete county zoning board of adjustment statutes are available in Montana Code Annotated 76-2-221. Creation and Purpose If zoning districts are created, as authorized in Title 76, Chapter 2 of the Montana Code Annotated, the county commissioners will appoint a zoning board of adjustment (76-2-221). The board of adjustment hears and decides appeals related to land resources and use (76-2-223). Membership Five citizens will be appointed by the county commissioners to serve on the board of adjustment. They will serve two-year terms and can be removed for cause by the county commissioners after written charges and a public hearing (76-2-222). Authority The board adjustment has the powers: To hear and decide appeals where an error may have been made by an administrative official’s order, requirement, or determination in the enforcement of county zoning defined in Montana Code Annotated (76-2-201) or zoning resolutions adopted by the county and, to hear, decide, and authorize special exceptions to the terms of a zoning resolution (76-2-223). Funding No costs are assessed against the board, unless the board acted in bad faith, the gross negligence, or with malice (76- 2-228). Municipal Zoning Commission The complete municipal zoning commission statute is available in Montana Code Annotated 76-2-301. Creation and Purpose For the purpose of promoting health, safety, morals, or the general welfare of the community, the city or town council or other legislative body of cities and incorporated towns is hereby empowered to regulate and restrict the height, number of stories, and size of buildings and other structures; the percentage of lot that may be occupied; the size of yards, courts, and other open spaces; the density of population; and the location and use of buildings, structures, and land for trade, industry, residence, or other purpose (76-2-301). Membership In order to avail itself of the powers conferred by this part, except 76-2-306, the city or town council or other legislative body shall appoint a commission, to be known as the zoning commission, to recommend the boundaries of the various original districts and appropriate regulations to be enforced therein (76-2-307). Authority The city or town council or other legislative body may provide by ordinance for the enforcement of this part and of any regulation or ordinance made thereunder. In case any building or structure is erected, constructed, reconstructed, altered, repaired, converted, or maintained or any building, structure, or land is used in violation of this part or of any ordinance or other regulation made under authority conferred hereby, the proper local authorities of the municipality, in addition to other remedies, may institute any appropriate action or proceedings to prevent such unlawful erection, construction, reconstruction, alteration, repair conversion, maintenance, or use; to restrain, correct, or abate such violation; to prevent the occupancy of such building, structure, or land; or to prevent any illegal act, conduct, business, or use in or about such premises (76-2-308). Funding Funding for this commission is not mentioned in the municipal zoning commission statutes (76-2-301). Municipal Zoning Board of Adjustment The complete municipal zoning board of adjustment statutes are available in Montana Code Annotated 76-2- 321. 104 71 Creation and Purpose The board shall adopt rules in accordance with the provisions of any ordinance adopted pursuant to part (76-2- 301), Municipal Zoning. Membership The board of adjustment shall consist of not less than five or more than seven members to be appointed for a term to be specified by the city or town council or other legislative body or, if no term is specified, then for a term of 3 years. A member is removable for cause by the appointing authority upon written charges and after public hearing (76-2-322). Authority The board of adjustment shall have the following powers: to hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement of this part or of any ordinance adopted pursuant thereto; to hear and decide special exceptions to the terms of the ordinance upon which such board is required to pass under such ordinance; to authorize upon appeal in specific cases such variance from the terms of the ordinance as will not be contrary to the public interest, where, owing to special conditions, a literal enforcement of the provisions of the ordinance will result in unnecessary hardship and so that the spirit of the ordinance shall be observed and substantial justice done. In exercising the above-mentioned powers, such board may, in conformity with the provisions of this part, reverse or affirm, wholly or partly, or modify the order, requirement, decision, or determination appealed from and may make such order, requirement, decision, or determination as ought to be made and to that end shall have all the powers of the officer from whom the appeal is taken (76-2-323). Funding A city or town council or other legislative body may provide for the appointment of a board of adjustment and in the regulations and restrictions adopted pursuant to the authority of this part may provide that the board of adjustment may, in appropriate cases and subject to appropriate conditions and safeguards, make special exceptions to the terms of the ordinance in harmony with its general purposes and intent and in accordance with the general or specific rules contained in the ordinance (76-2-321). Open Space Commission The complete open space commission statutes are available in Montana Code Annotated 76-6-101. Creation and Purpose Any governing body may establish by resolution a board or commission to exercise its powers under this chapter (76-6-104, 76-6-109(2)d). The open space commission shall provide adequate remedies for the protection of the environmental life support system from degradation and provide adequate remedies to prevent unreasonable depletion and degradation of natural resources (76-6-102). The open space commission works for the preservation of native plants or animals, biotic communities, or geological or geographical formations of scientific, aesthetic, or educational interest. The commission will also provide for the preservation of open-space land and encourage private participation in such programs (76-6-103). Membership The state, a city, town, or other municipality, or a county may exercise its powers under this chapter through a board or commission or through the office or officers that its governing body by resolution determines (76-6- 109(2)d). Within the resolution creating the board or commission, the governing body will determine the size and membership. Authority The open space commission may acquire or designate any real property, including land and water, that will provide a means for the preservation or provision of significant open-space land or the preservation of native plants or animals, biotic communities, or geological or geographical formations of scientific, aesthetic, or educational interest (76-6-106). 105 72 Funding The open space commission has the power to borrow funds, advance or accept advances of public funds, use grants and other federal assistance to preserve open space concurrent with the purposes of this chapter (76-6-103). Conservation District The complete conservation districts statutes are available in Montana Code Annotated 76-15-101. Creation and Purpose It is hereby declared to be the policy of the legislature to provide for the conservation of soil and soil resources of this state, for the control and prevention of soil erosion, for the prevention of floodwater and sediment damages, and for furthering the conservation, development, utilization, and disposal of water and thereby to preserve natural resources, control floods, prevent impairment of dams and reservoirs, preserve wildlife, protect the tax base, protect public lands, and protect and promote the health, safety, and general welfare of the people of this state (76-15-102). Within 30 days after a petition has been filed with the department of natural resources and conservation (as provided for in 2-15-33) it shall cause due notice to be given of a proposed hearing before the department upon the question of the desirability and necessity in the interest of the public health, safety, and welfare of the creation of the district; upon the question of the appropriate boundaries to be assigned to the district; upon the propriety of the petition and other proceedings taken under this chapter; and upon all questions relevant to those inquiries (76-15-202). Membership The conservation district is authorized to divide the unincorporated area of the district into no more than five supervisor area, which each must be represented by one supervisor. If less than five supervisor areas are established, sufficient supervisors must be elected at large to complete the governing body of the district as provided in 76-15-311(1). In a district containing no incorporated municipalities, the department may reorganize the district into seven supervisor areas (76-15-301). Two supervisors shall be elected at the second general election following the organization or reorganization of the district and shall replace the two supervisors appointed by the department. Thereafter, a district shall alternately elect three and two supervisors at succeeding general elections (76-15-304). Authority A conservation district and the supervisors thereof shall have the power to conduct surveys, investigations, and research relating to the character of soil erosion, floodwater and sediment damages, and water quality as it pertains to saline seep and to the conservation, development, utilization, and disposal of water and the preventive and control measures and works of improvement needed. The district shall also have the power to publish the results of such surveys, investigations, or research and disseminate information concerning such preventive and control measures and works of improvement (76-15-401). Funding A conservation district and the supervisors of the conservation district may borrow money and incur indebtedness and issue bonds or other evidence of indebtedness; refund or retire an indebtedness or lien against the district or property of the district; establish and collect rates, fees, tolls, rents, or other charges for the use of facilities or for services or materials provided. Revenue from these sources may be expended in carrying out the purposes and provisions of this chapter. The district may also, subject to 15-10-420, levy taxes as provided in this part to pay any obligation of the district and to accomplish the purposes of this chapter as provided in this chapter; apply for and receive federal revenue sharing funds in order to carry out the purposes and provisions of this chapter; establish a conservation practice loan program as provided in this part; or apply for, accept, administer, and expend funds, grants, and loans from the state or federal government or any other source (76-15-501). Unless otherwise provided by law, all money which may from time to time be appropriated out of the state treasury to pay the administrative and other expenses of conservation districts shall be allocated by the department among the districts already organized or to be organized during the ensuing biennial fiscal period (76-15-502). 106 73 Library Library Board The complete library board statutes are available in Montana Code Annotated 22-1-308. Creation and Purpose Upon the establishment of a public library under the provisions of this part, the mayor, with the advice and consent of the city council or city commissioners, shall appoint a board of trustees for the city library and the presiding officer of the board of county commissioners, with the advice and consent of the board, shall appoint a board of trustees for the county library (22-1-308). Library trustees have exclusive control of the operation and care of the library, of the spending of public library funds, and of the construction or lease of library buildings. The board is responsible for employing and compensating all library staff. Trustees hire a chief librarian, who serves at the pleasure of the board (22-1-309). Membership Five appointed trustees serve five year terms on the library board. Trustees may only serve two consecutive terms. Only one member of the governing body may be on the board. The presiding officer of the governing authority appoints new trustees to fill vacancies. These appointed trustees serve out the remaining term of the trustee they replaced (22-1-308). Following the appointments, in July of each year, the trustees shall meet and elect a presiding officer and other officers that they consider necessary, for 1-year terms. Vacancies in the board of trustees must be filled for the unexpired term in the same manner as original appointments. Authority Trustees of every public library shall adopt bylaws and rules, establish and locate a central public library, have the power to acquire real and personal property, and to exercise such other powers, not inconsistent with law, necessary for the effective use and management of the library (22-1-309). Funding The governing body that has established the public library may levy a tax to maintain public library services. Tax proceeds will be called the library fund. Under certain circumstances, the governing body may issue bonds (22-1-304). The governing body may also establish a library depreciation reserve fund. The fund replaces and acquires property, capital improvements, and equipment necessary for maintaining library services. Library depreciation reserve funds are moneys allocated to the library and not used by the year’s end (22-1-305, 306). Public Library District The complete public library districts statutes are available in Montana Code Annotated 22-1-701. Creation and Purpose Proceedings for the creation or enlargement of a public library district or the conversion of a public library to a public library district may be initiated by a petition signed by not less than 15% of the qualified electors who reside within the proposed district or the area to be added to an existing district; or a resolution of intent adopted by the county governing body, calling for the creation of a district. When the territory to be included in the proposed public library district lies in more than one county, a petition must be presented to the governing body of each county in which the territory lies (22-1-702). The purpose of this part is to provide a method for: establishing, equipping, administering, and funding public libraries; and contracting for library services from existing public libraries (22-1-701). Membership Within 30 days after the certification of the formation of the public library district, the governing body of each county with territory included in the district shall jointly appoint the initial members of the district’s board of trustees. The members shall serve until their successors are elected and qualified (22-1-704). After appointment of the initial members of the board of trustees, all members must be elected by the electors of the public library district (22-1-706). 107 74 Authority The board has all powers necessary for the betterment, operation, and maintenance of library property within the territory of the public library district, including establishing library locations (22-1-707). Funding Subject to 15-10-420, the county governing body shall, annually at the time of levying county taxes, fix and levy a tax on all taxable property within the public library district sufficient to raise the amount certified by the board of trustees and approved by the electors. The tax levied may not in any year exceed the maximum amount approved by the electorate in 22-1-703 or 22-1-709 (22-1-708). The board may accept donations and devises of money or personal property; establish a library depreciation reserve fund as authorized and described in 22-1- 716 (22-1-707). Members of the board of trustees serve without compensation (22-1-706). Livestock and other Animals Rodent Control District The complete rodent control district statutes available in Montana Code Annotated 7-22-2201 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Mosquito Control Board The mosquito control board statutes in Montana Code Annotated 7-22-2401 have been repealed. See 7-11-1001 Special Districts — Creation and Governance, for more information. Grazing District The complete grazing district statues are available in Montana Code Annotated 76-16-101. Creation and Purpose If three or more persons who own or control commensurate property and are livestock operators within the area proposed to be created into a state district decide to incorporate a state district, they shall submit a statement in writing to the grass conservation commission together with a plat showing the proposed boundaries of the area (76- 16-201). If the creation of the state district appears feasible, beneficial, and desirable to those who own or control more than 50% of the lands to be included in the state district, the commission may issue a certificate of approval (76-16-203). The purpose of the grazing district is to provide for the conservation, protection, restoration, and proper utilization of grass, forage, and range resources of the state of Montana; to permit the setting up of a form of grazing administration which will aid in the unification or control of all grazing lands within the state where the ownership is diverse and the lands intermingled; and to provide for the stabilization of the livestock industry and the protection of dependent commensurate properties (76-16-102). Membership Membership in a state district is limited to persons engaged in the livestock business who own or lease forage- producing lands within or near the state district, except that the agent of a person entitled to membership in the state district may become a member in place of the agent’s principal (76-16-302). Authority A state district may acquire livestock and livestock products, forage producing lands, and facilities for the care of livestock (76-16-305). The district will manage and control the use of its range and agricultural lands acquired under 76-16-305; undertake reseeding and other approved conservation and improvement practices of depleted range areas or abandoned farm lands and enter into cooperative agreements with the federal government or any other person for the reseeding or conservation and improvement practices; and employ and discharge employees, riders, and other persons necessary to properly manage the state district (76-16-306). The district may also regulate stock grazing in accordance with 76-16-308, control trespassing livestock (76-16-311), and distribute grazing preferences (76-16-401). 108 75 Funding The commission may impose fees against the state districts in an amount not in excess of 10 cents per animal unit month of grazing preference to defray expenses incurred by the commission in carrying out its powers and duties under this chapter (76-16-106). A state district may fix and determine the amount of grazing fees to be imposed on members or nonmembers for the purpose of paying leases and operating expenses and fix and determine the amount of assessments to be made on members on a grazing preference basis for the purpose of acquiring lands by purchase or for the purpose of constructing improvements in the state district. The district may also borrow money and if necessary mortgage the physical assets of a state district to provide for operation and development, provided that at least 80% of the permittee members of the state district consent in writing to the borrowing and the borrowing has been approved by the commission (76-16-323). Livestock Protective Committee The complete livestock protective committee statutes are available in Montana Code Annotated (81-6-101). Creation and Purpose A majority of cattle owners petition the governing authority to form a cattle protective committee. Upon receipt of the petition authorities establish the committee (81-6-101). Members serve to advise, assist, and cooperate with other public officials who have duties pertaining to the cattle industry. These duties may include but are not limited to brand inspection, prevention of livestock rustling, enforcement of laws governing movement and sale of livestock, and treatment and prevention of livestock diseases (81-6-103). Membership Governing authorities appoint three members to serve on the committee. Members must be residents of the county engaged in the business of raising cattle. They serve two year terms on the committee (81-6-101). Authority The livestock protective committee serves to advise governing authorities (81-6-101). Committee members may recommend to governing authorities the appointment of a special livestock deputy to assist the Montana Department of Livestock and the sheriff in their livestock-related duties (81-6-105). Funding Committee members may recommend to the governing authorities that a fee be imposed upon all cattle nine months or older in the county. The collected money will be deposited and known as the livestock special deputy fund (81-6-104). Cattle Protective District The complete cattle protective committee statutes are available in Montana Code Annotated 81-6-201. Creation and Purpose A majority of cattle owners within the proposed district area must petition governing authorities for the establishment of a cattle protective district. Upon receipt of the petition, governing authorities may authorize the creation of the district (81-6-206). Members serve to advise, assist and cooperate with other public officials who have duties pertaining to the cattle industry. These duties may include but are not limited to brand inspection, prevention of livestock rustling, enforcement of laws governing movement and sale of livestock, and treatment and prevention of livestock diseases (81-6-103, and 81-6-208). Membership Governing authorities appoint three members to serve on the committee. Members must be residents of the county engaged in the business of raising cattle. They serve two-year terms on the committee (81-6-101, and 81- 6-207). Authority The livestock protective committee serves to advise governing authorities (81-6-103, and 81-6-208). Committee members may recommend to governing authorities the appointment of a special livestock deputy to assist the Montana Department of Livestock and the sheriff in their livestock-related duties (81-6-105). 109 76 Funding Committee members may recommend to the governing authorities that a fee be imposed upon all cattle nine months or older in the county. The collected money will be deposited and known as the livestock special deputy fund (81-6-209). Schools Elementary School Districts The complete elementary school districts statutes are available in Montana Code Annotated 20-6-201. Creation and Purpose An elementary district is a district organized for the purpose of providing public education for all grades up to and including grade 8 and for preschool programs and kindergartens. An elementary district may be inactive if the district attaches to a high school district under the provisions of 20-6-701 to form a K-12 school district (20- 6-101). Membership The board of trustees are elected the first Tuesday after the first Monday in May each year. Whenever the county superintendent changes an elementary district’s classification with the result that a larger number of trustees is required on the elementary board of trustees, the increased number of trustee positions must be filled in the manner provided for in 20-3-302 (20-6-201). The number of trustees on the board depends on the size of the school district. Typically, small school districts have three trustees; large school districts have seven trustees. Each trustee is elected for a three-year term. See 20-3-341 and 20-3-351 for specific information. Authority The trustees of any district other than a high school district operating a county high school shall have the power and the responsibility to hold in trust all real and personal property of the district for the benefit of the schools and children of the district (20-6-602). Funding The trustees make policy, adopt and administer the annual budget, approve expenditures, make required reports to various agencies, establish elections, and enforce the requirements for government of the school district according to state law. A detailed list of these duties is found in 20-3-324. High School Districts The complete high school districts statutes are available in Montana Code Annotated 20-6-301. Creation and Purpose A high school district is a district organized for the purpose of providing those public educational services authorized by this title for all grades beyond grade 8, including postsecondary programs, except those programs administered by community college districts or the Montana university system. A high school district with an attached elementary district may provide the educational services for an elementary district through the procedures established in 20-6-701 through 20-6-703 (20-6-101). Membership Board of trustees are elected the first Tuesday after the first Monday in May each year. Whenever the classification of such elementary district is changed, the classification of a high school district must be changed accordingly and the county superintendent shall adjust the number of additional high school district trustee positions in accordance with the method prescribed in 20-3-354 for the determination of the number of additional trustee positions required for a high school district. The number of trustees on the board depends on the size of the school district. Typically, small school districts have three trustees; large school districts have seven trustees. Each trustee is elected for a three-year term. See 20-3-341 and 20-3-351 for specific information. 110 77 Authority In the name of the county, the trustees of a high school district operating a county high school, as defined by 20- 6-101, shall have the power and the responsibility to hold in trust all real and personal property of the district for the benefit of the schools and children of the district (20-6-602). Funding The trustees make policy, adopt and administer the annual budget, approve expenditures, make required reports to various agencies, establish elections, and enforce the requirements for government of the school district according to state law. A detailed list of these duties is found in 20-3-324. K-12 School Districts The complete K-12 school districts statutes are available in Montana Code Annotated 20-6-701. Creation and Purpose Each elementary district with the same district boundaries as a high school district shall attach to the high school district for the purpose of establishing a K-12 school district. The trustees of each district shall pass a resolution requesting the county superintendent to order an attachment involving their districts (20-6-701). Membership The number of elected trustees of the K-12 school district must be based on the classification of the attached elementary district under the provisions of 20-3-341 and 20-3-351 (20-6-702). The number of trustees on the board depends on the size of the school district. Typically, small school districts have three trustees; large school districts have seven trustees. Each trustee is elected for a three-year term. See 20-3-341 and 20-3-351 for specific information. Authority A high school district with an attached elementary district may provide the educational services for an elementary district through the procedures established in 20-6-701 through 20-6-703 (20-6-101). Funding The trustees make policy, adopt and administer the annual budget, approve expenditures, make required reports to various agencies, establish elections, and enforce the requirements for government of the school district according to state law. A detailed list of these duties is found in 20-3-324. Taxation Resort Area District The complete resort area district statutes are available in Montana Code Annotated 7-6-1501. Creation and Purpose Governing authorities establish resort area districts following the area’s designation as a resort area by the Montana Department of Commerce, a petition from landowners signed by at least 10% of the registered voters within the resort area., a public hearing, and a referendum (7-6-1501, 1504, 1508, 1532, 1533, 1534, 1536, 1539). Membership Five members are elected to the resort area district board of directors by voters within the resort area district. Directors serve four year terms. Remaining directors appoint new members to fill vacant terms (7-6-1543, 1546). Authority The board shall exercise the powers of governing the resort area and carrying out the responsibilities of imposing a resort tax (7-6-1508). The resort district board may sue and be sued, acquire real and personal property, make contracts, and employ labor. The resort district area board of directors can appropriate and expend revenue from the resort tax for any activities, undertakings or administrative needs authorized by the resolution creating the resort area or adopting the resort tax (7-6-1542). 111 78 Funding A resort tax may be imposed with the resort area following a petition from landowners to governing authorities, public hearing, and referendum. A resort tax may be imposed even if the resort area is not a resort area district. If imposed in a resort area, governing authorities allocate the uses of the tax revenue. However, if imposed in a resort area district, the board governing the district allocates the uses of tax revenue (7-6-1504, 1509). The rate of the resort tax must be established by the election petition or resolution provided for in 7-6-1504, but the rate may not exceed 3% (7-6-1503). County Land Advisory Board The complete county land advisory board statutes are available in Montana Code Annotated 7-8-2701. Creation and Purpose Each county must have a county land advisory board (7-8-2703). The board serves to advise, upon request, the boards of county commissioners about the direction, control, care, management, appraisal, lease, sale, exchange, and disposition of land. The board may cooperate with governing authorities in establishing grazing districts. Members advise upon grazing district and agricultural lease fees, terms, and conditions (7-8-2708, 2709). Membership Five members are appointed by the district court judged to serve on the land board. Each member will serve six year terms (7-8-2704, 2705). Authority This board serves to advise, upon request, governing authorities about the direction, control, care, management, appraisal, lease, sale, exchange, and disposition of land (7-8-2708, 2709). Funding The board may act in an advisory capacity in fixing the fees, terms, and conditions of grazing and agricultural leases (7-8-2709). The members shall serve without pay (7-8-2706). Transportation Urban Transportation District The complete urban transportation district statutes are available in Montana Code Annotated 7-14-201. Creation and Purpose The urban transportation district process begins with 20% of electors (living within the proposed district) petitioning governing authorities to create the district. Upon receiving the petition, a public hearing is held; followed by an election. If a majority of the votes cast during the election are in favor of district creation, the authorities shall issue a resolution creating the district (7-14-203, 207, 210, 212). The board shall establish, operate, improve, maintain, and administer the transportation district to supply transportation services and facilities to district residents and other persons (7-14-219). Membership The urban transportation district is governed by a transportation board. The governing authorities and the governing body of the town or city included within the district will determine by resolution whether the board is elected or appointed, the number of board members, the term of office, and the procedure for filling vacancies (7-14-212). Authority The transportation board will have all powers to establish, operate, improve, maintain, and administer the urban transportation district. The board will hire an administrative officer for the district (7-14-219, 220). Funding Annually, the board will submit a budget to governing authorities with the amount of money needed for the year. Governing authorities will levy a tax in mills upon property within the district to fund the district’s operation (7- 14-231, 7-14-232). The board may borrow money by issuing general obligation or revenue bonds (7-14-235). 112 79 Transportation Improvement Authority The complete transportation improvement authority statutes are available in Montana Code Annotated 7-14- 1001. Creation and Purpose A county and a municipality within a county may, by joint resolution, create a transportation improvement authority authorized to exercise its functions upon the appointment and qualification of the first commissioners (7-14-1002). The purpose of a transportation improvement authority is to blend the interests of local, state, and federal governments with the interests of the general public and the business community to build, modify, or improve transportation facilities and systems within its jurisdiction (7-14-1001). Membership The resolution creating the transportation improvement authority must create a board of nine commissioners appointed as follows: two county officials appointed by the county commissioners; two public members appointed by the county commissioners; two municipal officials appointed by the governing body of the municipality; two public members appointed by the governing body of the municipality; and one member appointed by the governor (7-14-1002). Each commissioner shall hold office until a successor is appointed and has qualified. The certificate of the appointment or reappointment of a commissioner must be filed with the authority (7-14-1003). Authority A transportation improvement authority may be increased to serve one or more additional counties or municipalities if each additional county or municipality, each county and municipality included in the authority, and the commissioners of the authority adopt a joint resolution consenting to the increase. The number of additional commissioners to be appointed must be provided for in the joint resolution (7-14-1002). Funding A county and a municipality for which a transportation improvement authority has been created may lend or donate money to the authority and provide that all or a portion of the taxes or funds available or required by law to be used by the county or municipality for transportation purposes be transferred to the authority as the funds become available (7-14-1004). The transportation improvement authority has the power to receive and disburse federal, state, and other public or private funds made available by grant, loan, contribution, or other source to accomplish the purposes of this part. Federal money must be accepted and spent by the authority upon terms and conditions prescribed by the United States and consistent with state law. All state money accepted under this section must be accepted and spent by the authority upon terms and conditions prescribed by the state (7-14-1005) Railway Authority The complete railway authority statutes are available in Montana Code Annotated 7-14-1601. Creation and Purpose A railway authority may be established by the governing authorities following a resolution of intent, a public hearing, and a resolution of creation (7-14-1611, 1612, 1613). Railway authorities preserve and improve abandoned rail service for agriculture, industry, or passenger traffic, or preserve abandon railroad rights-of- way for future transportation uses (7-14-1602). Membership A board of directors governs the railway authority. Five directors are appointed by the governing authorities. Directors serve two year terms and must live within the boundaries of the authority (7-14-1613). Authority Railway authorities may establish, operate, maintain, regulate, and protect railroads and railroad facilities. The authority may provide railroad services or contract for railroad operation, may grant the privilege of supplying goods along the railway and make services available (7-14-1602, 1625, 1635). 113 80 Funding Railway authorities are funded through a mill levy (levied by governing authorities upon voter approval), bonds, fees charged for services provided, and grants (7-14-1632, 1635, 1636). Parking Commission The complete parking commission statutes are available in Montana Code Annotated 7-14-4601. Creation and Purpose It is hereby determined and declared that excessive curb parking of motor vehicles in urban and metropolitan areas and the lack of adequate offstreet parking facilities in some cities is against the public interest; therefore, the purpose of this part is to provide means whereby cities in which additional offstreet parking facilities are considered necessary may obtain and provide same and whereby such cities may regulate onstreet and offstreet parking in a coordinated manner (7-14-4601). The determination as to whether there is need for a commission to function may be made by the legislative body on its own motion or upon the filing of a petition signed by 100 residents of the city asserting that there is need for a commission to function in such city and requesting that the legislative body so declare (7-14-4605). Membership The mayor, with the approval of the legislative body, shall appoint not less than five or more than seven electors of the city as members of the commission (7-14-4609). Three of the members who are first appointed must be designated to serve for terms of 1, 2, and 3 years, respectively, from the date of their appointments, and two must be designated to serve for terms of 4 years from the date of their appointment. For a seven-member commission, there must be two additional appointments of 2 years and 3 years, respectively (7-14-4610). Authority For the purpose of offstreet parking, each parking commission, subject to the limitations imposed by this part, may lay out, open, extend, widen, straighten, establish, or change the grade, in whole or in part, of public parking facilities and public rights-of-way necessary or convenient for offstreet parking; insure or provide for the insurance of any real or personal property or operation of the parking commission against risks or hazards; acquire, construct, rent, lease, maintain, and repair real and personal property used for parking services, either on behalf of the parking commission or as an agent of the city, including the leasing of the operation of the offstreet parking; and regulate onstreet parking when it remains in use, in coordination with offstreet parking, subject to traffic regulations imposed by the state (7-14-4622). Funding When any city or the commission created for it becomes authorized to transact business and exercise the powers of a parking commission, the legislative body of the city, subject to its fiscal law, may, at that time and from time to time thereafter, make an estimate of the amount of money required for administrative purposes of the commission and may appropriate such amounts to the commission as it deems necessary, subject to such conditions as the legislative body may prescribe (7-14-4613). Aerospace Transportation and Technology District The complete aerospace transportation and technology district statutes available in Montana Code Annotated 7-15- 4296 have been repealed. See 7-15-4279 Targeted economic development districts. County Transportation Committee The complete county transportation committee statutes are available in Montana Code Annotated 20-10-101. Creation and Purpose Each county shall establish a county transportation committee (20-10-131). The county transportation committee will establish the transportation service areas within the county for each district that operates a school bus transportation program. The committee will disregard district boundaries when creating the program. The committee will also approve, disapprove, or adjust applications for increased reimbursements for individual 114 81 transportation because of isolated conditions and requests for new or adjusted school bus routes submitted by trustees (20-10-132). Membership The county transportation committee must have at least five members. The membership of the committee consists of: The county superintendent; Presiding officer of the board of county commissioners (or a member designated by the presiding officer); Except in K-12 school districts, one trustee from each high school district in the county (or a district employee designated by the trustees); One representative from each high school district of the county who is a trustee of an elementary district encompassed within the high school district and who has been selected at a meeting of the trustees of the elementary districts; Two representatives of each K-12 school district of the county, each of whom is either a trustee or a district employee designated by the trustees; and a representative of a district of another county when the transportation services of the district are affected by the actions of the county transportation committee, but the representative has a voice only in matters affecting transportation within the district or by the district The county superintendent is the presiding officer (20-10-131). Authority The county transportation committee may conduct hearings to establish facts of transportation controversies, review requests for changes in bus routes, and determine if geographic locations make it impractical for a child to attend school in their county of residence (20-10-132). Funding The trustees of a district furnishing transportation to pupils who are residents of the district shall provide a transportation fund budget that is adequate to finance the district’s transportation contractual obligations and any other transportation expenditures necessary for the conduct of its transportation program (20-10-143). The trustees shall report the transportation fund budget on the regular budget form prescribed by the superintendent of public instruction in accordance with 20-9-103, and the adoption of the transportation fund budget must be completed in accordance with the school budgeting laws. Water Regional Resource Authority The complete regional resource authority statutes are available in Montana Code Annotated 7-10-101. Creation and Purpose A petition requesting the establishment or expansion of a regional resource authority must be signed by at least 10% of the registered electors within the boundaries of the territory proposed to be organized into the authority or expansion and must be presented to the board of governing authorities of the county in which the proposed authority or expansion is located (7-10-102). Electors residing within the boundaries of a proposed regional resource authority may create or expand an authority by proceeding under the provisions of this chapter. Regional resource authorities may be created to provide for collaboration and coordination in the conservation of water resources or in the management of water resources for agricultural and recreational uses (7-10-101). Membership The initial members of the local governing body must be appointed by the county commissioners in the county where the election is administered pursuant to 7-10-104(4), based on the recommendations of the petitioners. The commissioners shall appoint members of the governing body to staggered 2-year and 4-year terms. The appointments under subsection (1) must be made within 30 days after the adoption of the resolution for creation provided for in 7-10-105. Prior to the expiration of the initial appointments, the governing body shall divide itself into districts from which members are elected to succeeding terms (7-10-110). Authority A regional resource authority has power to purchase and hold lands within its limits; make contracts and purchase and hold personal property that may be necessary to the exercise of its powers; make orders for the disposition or use of its property that the interests of its inhabitants require; and acquire by eminent domain, 115 82 as provided in 70-30-101, any interest in property for a public use authorized by law. All other powers and limitations are outlined in 7-10-115. Funding A regional resource authority has the power, subject to 15-10-420, to levy and collect taxes for public or governmental purposes, as described in 7-6-2527, under its exclusive jurisdiction unless prohibited by law and impose fees or assessments for services provided (7-10-115). Metropolitan Sanitary and/or Storm Sewer Districts The complete metropolitan sanitary and/or storm sewer district statutes are available in Montana Code Annotated 7-13-101. Creation and Purpose Whenever the public convenience and necessity may require, in order to construct sanitary and/or storm sewer systems within any county, which sanitary and/or storm sewer systems would serve the inhabitants of any county as well as the inhabitants of any city or town within said county, the board of county commissioners, with the approval of the city or town council, may create metropolitan sanitary and/or storm sewer districts (7-13-101). Membership The board of county commissioners shall be ex officio commissioners of the metropolitan sanitary and/or storm sewer district formed under the provisions of this part and shall have sole and complete jurisdiction over all drainage structures and sewage treating plants which are now or may be hereafter built and situated within said district (7-13-112). Authority Before ordering any of the proposed improvements, the board of county commissioners shall pass a resolution creating the metropolitan sanitary and/or storm sewer district in accordance with the resolution of intention theretofore introduced and passed by the board. The board shall be deemed to have acquired jurisdiction to order improvements immediately upon the occurrence of one of the following: (a) when no protests have been delivered to the county clerk within 30 days after the date of the first publication of the notice of the passing of the resolution of intention; (b) when a protest shall have been found by said board to be insufficient; (c) when a protest shall have been overruled (7-13-111). Funding The governing body may levy a tax against all property within the district. Government-owned land is exempt from such taxes or other assessments and all costs assessed against it will be paid out of the county’s general fund. Governing authorities may also establish rates for services and benefits provided by the district to pay for operation and maintenance fees (the money raised by these rates is called the operating and maintenance fund). Governing authorities may also apply for federal grants and may borrow from the federal government (7-13- 121, 122, 124, 141, 142). Governing authorities may issue metropolitan sanitary and/or sewer district bonds to finance major improvements within the district. To ensure prompt payment of the bonds, a reserve fund is established. Governing authorities may transfer money from the operating and maintenance fund to the reserve fund (7-13-151, 152). County Water and/or Sewer Districts The county water and/or sewer district statutes are available in Montana Code Annotated 7-13-2201 and 7-13- 2301. Creation and Purpose A county water and/or sewer district may be organized and incorporated and managed as herein expressly provided and may exercise the powers herein expressly granted or necessarily implied. The people of any county or counties or portion of a city or a county or city and county or any combination of these political divisions, whether such portion includes unincorporated territory or not, in the state of Montana, may organize a county water and/or 116 83 sewer district under the provisions of this part and part 23 by proceeding as therein provided (7-13-2203). The purpose of the district board is to acquire (construct, purchase, or lease), operate, and maintain water rights, waterworks, sanitary sewerworks, storm sewerworks, canals, conduits, reservoirs, lands, and rights useful or necessary to store, conserve, supply, produce, convey, or drain water or sewage for purposes beneficial to the district. Beneficial purposes include flood prevention and control, irrigation, drainage, municipal, industrial, and domestic water supplies, pollution abatement, recreation and wildlife and livestock water supply (7-13-2218). Membership In all cases where the boundaries of such district include any municipality or municipalities, said board, in addition to said five or three directors to be elected as aforesaid, shall consist of one additional director for each of said municipalities within such district, each such additional director to be appointed by the mayor of the municipality for which said additional director is allowed, and, if there be any unincorporated territory within said district, one additional director to be appointed by the board of county commissioners of each county containing such territory (7-13-2232). If there are no municipalities within the boundaries of said district, the board of directors shall consist of five members or three members if there are 10 or less qualified electors in the district (7-13-2232). Authority The water and sewer district may sue and be sued, adopt a seal, make contracts, employ labor and take by grant, purchase, gift, devise, or lease and to hold, use, enjoy, and to lease or dispose of real and personal property of every kind, within or without the district, necessary to the full exercise of its powers (7-13-2217). These boards may issue bonds to finance indebtedness and levy taxes. Special levy assessments are also authorized for payment of bonds (7- 13-2221). Funding Districts can accept funds and assistance from federal, state, and public or private sources and may issue bonds to finance indebtedness and levy taxes (7-13-2221). Local Water Quality District The complete local water quality district statutes are available in Montana Code Annotated 7-13-4501. Creation and Purpose The creation a local water quality district begins when the governing authorities hold a public meeting concerning the creation of the district. Next, authorities pass a resolution of intention. The resolution is passed to any city or town’s government located within the district, followed by a public hearing. Governing authorities may create the district by resolution if insufficient protest is made or, the board may cause a referendum to be submitted to the voters. If voters approve the referendum, governing authorities may pass a resolution creating a local water quality district (7-13-4504, 4506, 4510, 4512, 4513). The board of directors develop and implement a local water quality program (approved by the county commissioners) to protect, preserve, and improve the quality of surface and ground water within the district. The program is submitted to the board of environmental review. Directors also employ personnel, administer the budget and any ordinances passed by commissioners or cities and towns pertaining surface and ground water, and to and purchase, rent, or lease equipment necessary to implement the program (7-13-4517). Membership The district is governed by a board of directors of at least five members; each serving three year terms. Governing authorities appoint: One member of the governing body of a city-county consolidated government; one member from the governing body of each incorporated city or town that is included in the district; one member of the county or city-county board of health; and one conservation district supervisor. Remaining board members are persons whose residences or businesses are distributed equally throughout the district if a county is the only unit of local government participating in the district (by mutual agreement if more than one unit of local government is located within the district) (7-13-4516). Authority 117 84 The local water quality district may implement a local water quality program, administer the budget of the local water quality district, employ personnel, administer local ordinances that are adopted by the governing bodies, apply for and receive monies from the federal or state government (7-13-4517). Funding Governing authorities will determine fee rates according to a classification system. The classification system is based upon the volume and type of waste produced and the volume of water withdrawn at each fee-assessed unit. Water used for irrigation and livestock use and related discharge cannot be assessed fees (7-13-4523). Regional Water and Wastewater Authorities The complete weed district statutes are available in Montana Code Annotated 75-6-301. Creation and Purpose It is the purpose of this part to permit certain public agencies to make the most efficient use of their powers relating to public water supplies and the transportation and treatment of wastewater by enabling them to cooperate with other public agencies on a basis of mutual advantage and to provide services and facilities to participating public agencies. It is also the purpose of this part to provide for the establishment of a public body, corporate and politic, that is known as a regional water authority or, when appropriate, a regional wastewater authority or regional water and wastewater authority. The function of the regional water authority is to secure a source of water on a scale larger than is feasible for individual public agencies acting alone and to sell the water to public service districts, municipalities, publicly and privately owned water utilities, and others. The function of the regional wastewater authority is to enable public agencies to join together to provide the most economical method of transportation and treatment of wastewater and to provide the transportation and treatment services to public service districts, municipalities, publicly and privately owned wastewater utilities, and others. The function of the regional water and wastewater authority is to enable public agencies to join together to carry out the joint functions of both a regional water authority and a regional wastewater authority (75-6-302). Membership The governing body of the authority shall consist of not less than three persons selected by the participating public agencies. Each participating public agency shall appoint at least one member. Each member’s full term may not be less than 1 year or more than 4 years, and initial terms must be staggered in accordance with procedures set forth in the agreement provided for in 75-6-305 and amendments to the agreement. In the case of an authority that is made up by the agreement of two public agencies, each public agency shall appoint two representatives to the governing body (75-6-311). Authority The governing body has and may exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this section (75-6-313). Specific powers may not be considered as a limitation upon any power necessary or appropriate to carry out the purposes of this part. Funding A public agency entering into an agreement pursuant to this part may appropriate funds and may sell, lease, give, or otherwise supply to the authority personnel or services for the operation of the authority as may be within its legal power to furnish (75-6-306). Irrigation District The complete irrigation district statues are available in Montana Code Annotated 85-7-101. Creation and Purpose Irrigation districts may be formed when it is proposed by 60% of the holders of title or evidence of title to lands sought to be included in an irrigation district. The district shall be formed in compliance with federal reclamation laws, which permit the construction of irrigation works, including drainage works, or for purchase, extension, operation, or maintenance of constructed works (85-7-101). Before the district 118 85 is established, there shall be a written report or opinion from the department of natural resources and conservation on the engineering features involved and the possibilities of water supplies, accompanied by a copy of the decree of the district court showing the adjudicated water rights in said streams from which said waters are to be diverted (85-7-103). Membership Commissioners for the irrigation district must own irrigable land within the division of the district that the individual would represent. They must also be a resident of the county, or an adjoining county, in which some portion of the division of the district that the individual would represent is located (85-7-1501). The commissioners appointed shall hold their respective offices until their respective successors are elected and qualified. Each of the commissioners shall qualify in the same manner as justices of the peace. The bond for a commissioner must be approved by the district court or judge of the district court and filed in the office of the clerk of the court located (85-7-1501). The regular election for commissioners in each district must be held annually in accordance with 13-1-104 and 13-1-305. Commissioners are elected by the electors of the entire district (85-7-1702). Authority The board shall have the power to adopt a corporate seal therefor; make and execute all necessary contracts; and employ and appoint such agents, officers, and employees as may be required and prescribe their duties. It shall be the duty of said board to pass or adopt bylaws and rules for the apportionment and distribution of water to the lands of the district and for the protection and preservation of the works and other property of the district, and the board may therein require the prompt payment of all current and delinquent taxes and assessments and other financial obligations owing the district as a prerequisite to water service (85-7-1902). The board and its agents have the right to enter upon any land to make surveys (85-7-1903); acquire water and water rights (85- 7-1904); construct irrigation works across any stream of water, watercourse, street, avenue, highway, railway, canal, ditch, or flume (85-7-1909); regulate, supervise, apportion, and control the furnishing and delivery of water through the distribution system of the district (85-7-1922); and acquire, construct, maintain, and lease various undertakings as defined in 85-7-1402 (85-7-1411). The irrigation district may not impede navigation of a navigable channel (85-7-1932). Funding The board of commissioners of the district shall provide for the annual levy and collection of a special tax or assessment upon all the lands included in the district, or in a sub-district if the bonds are to be issued on behalf of the sub-district, and subject to taxation and assessment (85-7-2101). All irrigable lands in each irrigation district and all lands in each sub-district of the district must pay at the same rate for all purposes for which the lands are charged, except as otherwise provided by law (85-7-2103). Drainage District The complete drainage district statues are available in Montana Code Annotated 85-8-101. Creation and Purpose Drainage districts shall be petitioned whenever a majority of the owners of lands within any district of land who shall represent one-third in area of the land within said district to be reclaimed or benefited or whenever the owners of more than one-half of the lands within such district desire to construct one or more drains, ditches, levees, waste ditches, or other works across the lands of others or to straighten, widen, deepen, or otherwise alter any natural stream or watercourse not navigable, for the promotion of the public health or welfare and the drainage of the lands and removal of surface waters therefrom; or desire to maintain and keep in repair any such drain, ditch, or levee heretofore constructed under any law of this state (85-8-101). Membership When a district is created the commissioners appointed by the judge or court shall hold office until the first Tuesday in May following their appointment and until their successors are elected (85-8-301). Commissioners must be an actual landowner in the division in which they were elected, and must be a resident of a county 119 86 where a portion of the district lands is situated (85-8-302). The regular election of commissioners must be held annually in accordance with 13-1-104 and 13-1-305. Authority The commissioners shall appoint one or more attorneys to assist in the establishment of the district, advise with its officers, agents, and employees, and prepare reports and other necessary documents. They shall appoint a competent civil and drainage engineer, who may be an individual, a partnership, or a corporation, who may employ assistants and make surveys, and who, with the approval of the court, may employ a consulting engineer or secure expert advice. The expense of the engineer, the engineer’s assistants, and the consulting engineer must be taxed as expenses under the petition (85-8-321). The district may acquire lands, easements, and rights-of-way sites; carry out necessary measures for the prevention of floodwater and sediment damages; enter into agreements with state agencies and political subdivisions of the state; construct, operate, and maintain such works of improvement; and make assessments and issue bonds for carrying out the purposes of the district (85-8-702). The commissioners, their agents, servants, and employees shall have the right to go upon all lands along any drain, ditch, levee, or embankment in their district to inspect, deepen, widen, and repair the same (85-8-363). They have the right to lay-out and construct all necessary drains, ditches, and levees across any railway right-of- way in their district (85-8-366). Funding The commissioners shall certify to the department of revenue a correct list of all the district lands in each county and the owners of the lands, together with a statement of the amount of the total tax or assessment against the lands for district purposes for that year. The county treasurer of each county in which a drainage district is located, in whole or in part, shall collect and receipt for all taxes and assessments levied by the district (85-8- 601). The district may also receive financial assistance from state agencies and political subdivisions of the state, other organizations created under state laws, and the government of the United States and agencies thereof. They may also accept contributions from private landowners for the purposes of the district (85-8-702). Conservancy District The complete water conservancy district statues are available in Montana Code Annotated 85-9-101. Creation and Purpose The water conservancy district will be comprised of an area in one or more counties to prevent and control floods, erosion, sedimentation; provide for regulation of stream flows and lake levels; improve drainage and to reclaim wet or overflowed lands; promote recreation; develop and conserve water resources and related lands, forest, fish, and wildlife resources; further provide for the conservation, development, and utilization of land and water for beneficial uses, including but not limited to domestic water supply, fish, industrial water supply, irrigation, livestock water supply, municipal water supply, recreation, and wildlife (85-9-102). To request a preliminary survey for a proposed conservancy district, the applicants shall present a written petition to the department in accordance with 85-9-201. Membership If a district is organized, the court shall establish by court order the number of persons who shall comprise the directors and appoint persons who are electors within the district to membership on the board of directors and fix their compensation. The number may not be less than 3 or more than 11 persons. In fixing the number and making the appointments, the court shall consider the interests and purposes to be served by the district. Upon a verified petition filed by a majority of the directors and for good cause shown, the court may enlarge or reduce the membership of the directors but not to be less than 3 or more than 11. Approximately one-third of the directors first appointed serve for 1 year, approximately one-third serve 2 years, and the remainder serve 3 years. All succeeding terms must be 3 years. Unless excused for good cause, a director who misses three consecutive regular meetings has vacated the position (85-9-401). Authority 120 87 The directors of a conservancy district may sue and be sued, adopt a seal, provide for reimbursing of their members for actual expenses, merge with other special districts as hereinafter provided, and call upon the county attorney or attorney general for such legal services as the district may require or, in the discretion of the directors, employ private legal counsel (85-9-403). On behalf of a district, the director has certain powers over private properties and those acquired or maintained by the district (85-9-405). They may also adopt rules regarding recreational water use (85-9-404), and have certain powers over finances (85-9-406). Limitations of the conservancy district are detailed in 85-9-104. Funding To the extent that anticipated revenues from rates, fees, and other charges fixed pursuant to 85-9-407 will not be sufficient to meet the district’s anticipated obligations for annual operation, the directors may make an assessment of not more than 2 mills on all taxable real property in the district for the purpose of fully meeting such obligations. In addition, the directors may annually make an assessment of up to 3 mills on the taxable real property in the district to pay interest and principal on bonded indebtedness (85-9-601). Weeds Weed District The complete weed district statutes are available in Montana Code Annotated 7-22-2101. Creation and Purpose Each county will have a weed management district (7-22-2102). The weed district will develop and implement a noxious weed management program in the district (7-22-2109). The city or town council has power to declare and determine what vegetation within the city or town shall be nuisance weeds and provide the manner in which they shall be exterminated (7-22-4101). Membership Each weed district will be governed by a district weed board. The membership of the board will be appointed by governing authorities subject to the general board statutes 7-1-201 through 203 (7-22-2103). Authority Management criteria for noxious weeds within the district will be developed by the board. The board may employ a coordinator and other employees to carry out the program. Chemicals, materials, and/or equipment may be purchased with money from the noxious weed fund (7-22-2109). Funding Governing authorities will create a noxious weed fund. The authorities can appropriate money from any source in an amount of not less than $100,000 or an amount equivalent to 1.6 mills levied upon the taxable value of all property and subject to 15-10-420 and at any time fixed by law for levy and assessment of taxes, levying a tax of not less than 1.6 mills on the taxable value of all taxable property in the county (7-22-2141, 2142). 121 88 Additional Information Organizations / Associations Montana State University Extension P.O. Box 172240 Bozeman, MT 59715-2240 Phone: (406) 994-3620 http://www.msuextension.org Montana Association of Counties 2715 Skyway Drive Helena, MT 59602-1213 Phone: (406) 449-4360 http://www.mtcounties.org Local Government Center P.O. Box 172240 Bozeman, MT 59717-2240 Phone: (406) 994-6694 http://www.msulocalgov.org/ American Institute of Parliamentarians 550M Ritchie Highway #271 Severna Park, MD 21146 Phone: (888) 664-0428 http://www.parliamentaryprocedure.org/ National Association of Counties 440 First Street, N.W. Washington, DC 20001 Phone: (202) 393-6226 http://www.naco.org National Association of Parliamentarians 213 South Main Street Independence, MO 64050-3850 Phone: (816) 833-3892 http://parliamentarians.org/ State Agencies Department of Natural Resources and Conservation 1625 Eleventh Ave. Helena, MT 59620-0701 Phone: (406) 444-2074 http://www.dnrc.mt.gov Department of Commerce 301 S. Park P.O. Box 200501 Helena, MT 59620-0501 Phone: (406) 841-2700 http://commerce.mt.gov/ Department of Revenue 125 N. Roberts, 3rd Floor Helena, Montana 59620 Phone: (406) 444-6900 http://revenue.mt.gov/ Department of Justice P.O. Box 201401 Helena, MT 59620-1401 Phone: (406) 444-2026 http://www.doj.mt.gov/ Human Rights Bureau P.O. Box 1728 Helena, MT 59624-1728 Phone: (406) 444-2884 http://erd.dli.mt.gov/human-rights Department of Livestock PO Box 202001 Helena, MT 59620-2001 Phone: (406) 444-2043 http://liv.mt.gov 122 89 123 90 Appendix 1: NEGOTIATION STYLES (Designed by Terrill L. Croghan and Nancy Yeend from the TKI). Directions: Read each question, and rank the five responses. Begin by placing a 5 next to the response most like you, most of the time and a 1 next to the response that is least like you, most of the time. When you have marked the two extremes, then go back and indicate which responses are 2, 3, and 4. 1. When I encounter someone whose goals are different from mine, I attempt to _____ a. avoid the situation. _____ b. acquiesce to the other. _____ c. find an intermediate solution. _____ d. pursue my goals. _____ e. satisfy both of our goals. 2. When a problem arises between another person and me, I am inclined to _____ a. hope the problem resolves itself. _____ b. let them have their way. _____ c. look for a solution that falls between our two viewpoints. _____ d. persuade them of the merit of my position. _____ e. seek to discover our underlying interests. 3. When I am confronted with a dispute, I try to _____ a. postpone the controversy in hopes that it will go away. _____ b. soothe the other’s feelings to preserve our relationship. _____ c. find a compromise solution. _____ d. look for ways to justify and enhance my position. _____ e. seek the other’s help to find a mutually satisfying solution. 4. When I am in a situation that calls for negotiation, I try to look for ways to _____ a. avoid the face-to-face encounter. _____ b. please the other party. _____ c. find middle ground upon which we can agree. _____ d. get the best for myself _____ e. obtain mutual benefits 124 91 5. When someone asks me to do something that I believe can be done in a different or better way, I usually _____ a. could care less how it is done _____ b. convince myself that doing it their way is best. _____ c. split the difference between their way and mine. _____ d. convince them my way it best. _____ e. seek to find a way to complete the task so that it works for both of us. Getting the Totals To obtain an approximate indication of your dispute management style, enter the number you wrote next to each response. Avd Acc Cop Cpt Col Q.1 a. __ b. __ c. __ d. __ e. __ Q.2 a. __ b. __ c. __ d. __ e. __ Q.3 a. __ b. __ c. __ d. __ e. __ Q.4 a. __ b. __ c. __ d. __ e. __ Q.5 a. __ b. __ c. __ d. __ e. __ Total ____ ____ ____ ____ ____ Analysis of Answers The column that has the largest sum indicates your naturally preferred negotiation style. The column with the smallest total is your least preferred style. What are your negotiation strengths? _______________________________________________ _______________________________________________ _______________________________________________ What are your negotiation weaknesses? _______________________________________________ _______________________________________________ 125 92 Appendix 2: SAMPLE BYLAWS BYLAWS OF _______________________________________ BOARD ARTICLE I–NAME, PURPOSE Section 1: The name of the municipal/county board shall be ___________________________. Section 2: The ______________________________ is organized for the purpose of [insert language used in enabling resolution], more specifically to_____________________________. ARTICLE II–MEMBERSHIP Section 1: Membership shall consist only of the members appointed by the Mayor of _________ City/Town or ___ ____County Commissioners. ARTICLE III–MEETINGS Section 1: Meetings. The [monthly/quarterly/etc.] meetings will be held on the second Tuesday, of the second month of each quarter at the ___________ meeting room starting at 6:00 p.m. Section 2: Special Meetings. Special meetings may be called by the [Chair/Chair and one Board Member/ Executive Committee/??]. Section 3: Notice. Notice of each meeting will follow the city/county noticing policy ARTICLE IV – GOVERNING/ADVISORY BOARD Section 1: Board Role, Size, Compensation. The Board is responsible for (see enabling resolution). The Board shall have up to _________ and not fewer than __________ members. The board receives no compensation other than reasonable expenses. Section 2: Meetings. The [monthly/quarterly/etc.] meetings will be held on _________________ _______________ at the ___________ meeting room starting at 6:00 p.m. Section 3: Terms. All Board members shall serve _____ year terms and no more than ______ consecutive terms. Board members are appointed or reappointment by the Mayor of _________ City/Town or the ___ ____ County Commissioners. Section 4: Quorum. A quorum consists of a majority of appointed board members and no official action can be transacted or motions made or passed without a quorum present. Section 5: Officers and Duties. There shall be _____ officers of the Board consisting of a Chair, Vice Chair and Secretary. Their duties are as follows: 1. The Chair shall convene regularly scheduled Board meetings, shall preside or arrange for other members of the executive committee to preside at each meeting in the following order: Vice-Chair and Secretary. 2. The Vice-Chair will chair committees on special subjects as designated by the board. 3. The Secretary shall be responsible for keeping records of Board actions and/or recommendations, including overseeing the taking of minutes at all board meetings, sending out meeting announcements, and distributing copies of minutes and the agenda to each Board member. Section 6: Vacancies. When a vacancy on the Board exists, the board may compile a list of nominations for the Mayor/County Commissioners to consider Section 7: Resignation, Termination and Absences. Resignation from the Board must be in writing and received by the Secretary. A recommendation for removal from the board will be given to the governing body when a Board member has three unexcused absences from Board meetings in a year. A Board member may be removed for other reasons by a three-fourths vote of the remaining directors. Section 8: Special Meetings. Special meetings of the Board shall be called upon the request of the Chair or one- 126 93 third of the Board. Notices of special meetings shall follow City/County noticing policy. Section 9: Voting. The chairperson shall _______________________________________. In the event of a tie vote, ________________________________________________________. ARTICLE V–COMMITTEES Section 1: The Board may create committees as needed. The Board Chair appoints all committee chairs. ARTICLE VI–AMENDMENTS Section 1: These Bylaws may be amended when necessary by a two-thirds majority of the Board or by resolution passed by the governing authority. Proposed amendments must be submitted to the Secretary to be sent out with regular Board announcements. These Bylaws were approved at a meeting of the ______________ Board of _____________ (City/County) on _______________________, 20XX. 127 94 Montana Boards, Districts, Commissions and Committees (Alphabetical Listing) Aerospace Transportation and Technology District ..80 Airport Appeals Board .............................................50 Airport Board ..........................................................50 Board of County Canvassers ....................................56 Business Improvement Districts ...............................52 Cattle Protective District .........................................75 Cemetery Districts ...................................................65 City Boards of Health ..............................................60 City-County Boards of Health .................................61 City-County Planning Boards .................................67 City Planning Boards ...............................................66 Community Councils ..............................................58 Conservancy District ...............................................86 Conservation District ..............................................72 County Board of Park Commissioners .....................64 County Boards of Health .........................................60 County Building Commission .................................62 County Compensation Board ................................58 County Housing Authority ......................................63 County Land Advisory Board ..................................78 County Park District ...............................................64 County Planning and Zoning Commission .............69 County Planning Boards ..........................................66 County Tax Appeal Board ........................................65 County Transportation Committee ..........................80 County Water and/or Sewer Districts ......................82 County Zoning Board of Adjustment ......................70 County Zoning Commission ...................................69 District Boards of Health .........................................62 Drainage District .....................................................85 Elementary School Districts .....................................76 Fair Commission .....................................................56 Fire Hydrant Maintenance Districts .........................56 Fire Service Area ......................................................57 Grazing District .......................................................74 Health Care Facilities Commission ..........................59 High School Districts ..............................................76 Hospital Districts ....................................................59 Industrial Districts ...................................................55 Irrigation District ....................................................84 Joint Fair and Civic Center Commission .................56 Joint or Consolidated Planning Boards ....................68 K-12 School Districts ..............................................77 Library Board ..........................................................73 Livestock Protective Committee ..............................75 Local Improvement Districts ...................................55 Local Port Authority ................................................54 Local Water Quality District ....................................83 Metropolitan Sanitary and/or Storm Sewer Districts 82 Mosquito Control Board .........................................74 Multi-County Fair Districts .....................................56 Municipal Airport Authority ...................................51 Municipal Board of Park Commissioners .................64 Municipal Housing Authority ..................................63 Municipal Zoning Board of Adjustment ..................70 Municipal Zoning Commission ...............................70 Museum and Facilities for the Arts Board ................55 Open Space Commission .........................................71 Organizations / Associations ....................................88 Parking Commission ...............................................80 Public Library District .............................................73 Railway Authority ....................................................79 Regional Airport Authority ......................................51 Regional Port Authority ...........................................55 Regional Resource Authority ...................................81 Regional Water and Wastewater Authorities .............84 Resort Area District .................................................77 Rodent Control District ..........................................74 Rural Fire Districts ..................................................57 Rural Improvement Districts ...................................52 Solid Waste Management District ............................59 Special Improvement Districts .................................53 State Agencies ..........................................................88 Technology Districts ................................................55 Television District ....................................................54 Transportation Improvement Authority ...................79 Urban Transportation District .................................78 Weed District ..........................................................87 128 95 About the Authors Jennifer Anderson is the Montana State University Extension Agent in Rosebud-Treasure County, Forsyth, Montana. She can be reached at (406) 346-7320, jenanderson@montana.edu. Blake Christensen is Associate Director of the Montana State University Extension Local Government Center. He can be reached at (406) 994-6694, blakechristensen@montana.edu. Dan Clark is the Director of the Montana State University Extension Local Government Center. He can be reached at (406) 994-7756, daniel.clark@montana.edu. Tim Fine is the Montana State University Extension Agent in Richland County, Sidney, Montana. He can be reached at (406) 433-1206, tfine@montana.edu. Paul Lachapelle is an Assistant Professor and the Montana State University Extension Community Development Specialist. He can be reached at (406) 994-3620, paul.lachapelle@montana.edu. Nori Pearce is the Montana State University Extension Agent in Lake County, Ronan, Montana. She can be reached at (406) 676-4271, npearce@montana.edu. Abbie Phillip is the Montana State University Extension Agent in Deer Lodge County, Anaconda, Montana. She can be reached at (406) 563-4035, abbie.phillip@montana.edu. Betsy Webb is the Professional Development & Training Manager and Adjunct Faculty at Montana State University. She can be reached at (406) 994-4275, elizabeth.webb@montana.edu. Micky Zurcher is the Montana State University Extension Agent in Jefferson County, Whitehall, Montana. She can be reached at (406) 287-3282, micky.zurcher@montana.edu. 129 130 Ethics Handbook 5th edition Approved by the Board of Ethics on February 26, 2025 Approved by the City Commission on May 13, 2025 131 Page | 2 By: Bozeman City Commission Bozeman Board of Ethics Bozeman City Attorney’s Office Bozeman City Clerk’s Office Bozeman Human Resources Department City of Bozeman P.O. Box 1230 121 North Rouse Bozeman, MT 59771 www.bozeman.net Copyright © 2025 132 Page | 3 This Ethics Handbook is produced by the Bozeman Board of Ethics to educate citizens and train employees and public officials in ethical best practices and legal requirements. In addition, this Handbook details specific ethical requirements and provides guidance on obtaining information and filing ethics complaints. The City Code of Ethics required by Section 7.01 of the Bozeman Charter and is codified in Chapter 2 Article 3, Division 4 of the Bozeman Municipal Code. City of Bozeman’s Core Values Integrity Be honest, hardworking, reliable, and accountable to the public. Leadership Take initiative, lead by example, and be open to innovative ideas. Service Work unselfishly for our community and its citizens. Teamwork Respect others, welcome citizen involvement, and work together to achieve the best result. Disclaimer: This Handbook is not meant to serve as an authoritative legal guide for municipal and state ethics laws. For specific legal direction regarding the City of Bozeman Code of Ethics and the Montana Code of Ethics, see the full state statutes, the City’s municipal code, and consult with the City Attorney’s Office or the City’s Human Resources Department. 133 Page | 4 Table of Contents 1. What Are Ethics and Why Are They Important for Local Governments? .. 5 2. Why Have an Ethics Handbook? ........................................................ 5 3. Who Is This Handbook Written For? ................................................... 6 4. What is the Board of Ethics and What are its Responsibilities? .............. 6 5. Why are Employees and Officials Required to take an Annual Ethics Training? ............................................................................................. 7 6. What are the Standards of Conduct? ................................................. 8 7. Can Employees or Officials Use City Resources for Personal Gain? ......... 8 8. What if an Employee or Official has a Conflict of Interest? .................... 9 9. Can Employees or Officials Disclose Confidential Information? .............. 9 10. Can Employees or Officials Accept Gifts? ....................................... 10 11. Do Employees or Officials Have to File Financial Disclosure Statements? ...................................................................................... 15 12. What Are the Post-Employment Policies for Employees or Officials? .. 15 13. Are there Restrictions on Ex Parte Communications? ....................... 16 14. What is the City Whistle Blower Policy? ......................................... 17 15. What State Laws Apply to Ethics in Local Government? ................... 18 16. What are the Penalties for Violating the Code of Ethics? .................. 20 17. Are there Additional Resources on Ethics in Local Government? ........ 20 18. What is the Process to Seek Advice About the City Code of Ethics? ... 22 19. How Can an Ethics Complaint be Filed? ......................................... 22 134 Page | 5 1. What Are Ethics and Why Are They Important for Local Governments? Ethics are commonly defined as the rules of conduct that govern how a society differentiates between good and bad, and between right and wrong. In practice, ethics guide individuals in identifying the correct course of action in how decisions are made. For Bozeman, the role of ethics is significant for maintaining public trust and ensuring fairness. A goal of the City’s ethics program is to preserve the public’s confidence that government policies and decisions are made in the proper channels of the government structure and that the public has confidence in the integrity of its city government. (2.03.460, BMC). Many local governments, including the City of Bozeman, have created laws that outline a code of ethics specifying the conduct of all government employees and officials. Additionally, an ethics code, as is the case for Bozeman, is designed to guarantee that procedural requirements are followed so all government actions are not only fair, but also appear fair. 2. Why Have an Ethics Handbook? This Handbook was created as a result of the citizen established Bozeman City Charter (effective Jan. 1, 2008), and through ordinances adopted by the City Commission to establish the Code of Ethics. Section 7.01(a) of the Bozeman Charter states, “the use of public office for private gain is prohibited” and the Charter requires the City to implement an ordinance addressing ethical matters such as conflict of interest, accepting gifts, use of confidential information, and public disclosure. The Charter also requires the City to establish a Board of Ethics. Among the many responsibilities of the Board, it must create an “ethics handbook for the use of all public servants and the public.” (2.03.600.A.13, BMC). Although not part of the Code of Ethics, the Core Values of the City can also be considered supportive of the Charter and the Code of Ethics. The City Commission Resolution establishing the core values states: “Integrity, leadership, service, and teamwork are the core values of our organization and provide a framework for our employees, community volunteers, and citizens,” (Resolution No. 3832). In addition to the City Code of Ethics, Article XIII, Part XII, Section 4 of the Montana Constitution requires the Montana Legislature to adopt a code of 135 Page | 6 ethics prohibiting conduct between public duty and private interest and which applies to local government officials and employees. The Legislature has done so in adopting the Montana Code of Ethics. (2-2-101, et seq., Montana Code Annotated). The Legislature has declared “The holding of public office or employment is a public trust, created by the confidence that the electorate reposes in the integrity of judicial officers, public officers, legislators, and public employees.” (2-2-103(1), MCA). More specific information about the State Code of Ethics is detailed in Section 14 of this Handbook. 3. Who Is This Handbook Written For? This Handbook is written for all persons interested in the operation of Bozeman City government including Bozeman citizens, City employees, and elected and appointed City officials. This Handbook addresses legal requirements and best practices for the ethical conduct of City employees and officials as they undertake their public duties. For specific ethics questions, City employees and officials should contact their immediate supervisor or department director, the Human Resources Department, or the City Attorney. 4. What is the Board of Ethics and What are its Responsibilities? The City Code of Ethics details the responsibilities of a three-member Board of Ethics (“The Board”). The Board is made up of individuals who are residents of Bozeman but not “elected officials of the City, full-time appointed City officials whether exempt or nonexempt, or City employees.” (2.03.580.A, BMC). Board members are appointed by the City Commission to staggered terms and do not receive compensation. Some responsibilities of the Board include but are not limited to: • Evaluate all aspects of the City Code of Ethics to ensure the public and all public servants have a reasonable opportunity and are encouraged to participate in the process; • Develop a plan to educate public servants and the public about their rights, duties, and responsibilities; • Submit an annual report of summary decisions and recommended actions regarding ethical practices or policies; and • Arrange for annual training and education for all board members; and Conduct hearings as needed (2.03.600, BMC). 136 Page | 7 The Board does not have authority to reverse or modify a prior action, or to proscribe a future action of the mayor, city commission, or an officer or employee of the City. (2.03.620, BMC). This includes budgetary, personnel, contractual, administrative, and legislative matters. The Board was created to ensure the public and all public servants have a reasonable opportunity and are encouraged to participate in any process for regularly evaluating the City Code of Ethics. 5. Why are Employees and Officials Required to take an Annual Ethics Training? According to Section 7.01(b) of the City Charter, City officials, board members, and employees must take an annual training on both the state and City ethics codes. To meet this requirement, the Board works with the City’s Ethics Team (a diverse group of City employees) to develop ongoing training and education programs to help employees and officials understand the State and City ethics codes and their ethical responsibilities. The long- term goal of the Board is to continually evolve the ethics training program so participants can expand their understanding year after year. The curriculum for the training varies each year and is generally based in discussion regarding real and fictious scenarios. The annual ethics training is mandatory for all public officials and City employees. If an employee does not comply with the annual ethics training, they may be subject to disciplinary action, up to and including termination. There are also consequences if appointed and elected officials, including board and committee members, fail to attend the required annual ethics training. In September of 2012, with the City Commission’s adoption of Ordinance No. 1833, the Ethics Code was amended to include a statement that the City Clerk must forward to the Commission annually a list of appointed officials who fail to take the required training. (2.03.600.A.12(b), BMC and the Charter). The Commission may remove an appointed official for failing to attend the training. In addition, the City Charter at Section 7.01(b) states, “City officials, board members, and employees shall take an oath to uphold the state and city ethics codes.” A signed statement verifying that the employee or official has received this Handbook and will not knowingly violate the Ethics Code is required for all employees and board members and serves as the required oath. 137 Page | 8 Additional ethics resources in addition to the annual training are available to City employees and officials and can be obtained via the City’s ethics website or by contacting the City Clerk’s office (see Section 19 of this Handbook for details on contacting the Clerk’s office and Section 17 for further resources). 6. What are the Standards of Conduct? Standards of conduct consist of ethics rules that apply to all City employees and officials. These rules are designed to provide specific guidance for City employees and officials as they fulfill their public duties. This section of the City Code of Ethics states, among other rules, that officials and employees must: • Act morally and honestly in discharging their responsibilities; • Discharge their duties impartially and fairly; • Devote necessary time and effort to the successful functioning of their agency; and • Not use their position to secure any financial interest or personal interest, improperly influence any other official or employee in the performance of official duties, or act in a private capacity on matters they are directly responsible for (2.03.490, BMC). Standards of conduct are necessarily broad as they are general principles for behavior. Application of these principles to every day circumstances is the duty of each employee and official. 7. Can Employees or Officials Use City Resources for Personal Gain? City officials and employees are entrusted with public resources such as money, purchasing authority, equipment, and access to confidential information. The temptation to use resources and knowledge for personal gain can be significant, especially when equipment, such as a vehicle, is entrusted to an employee. As the Charter prohibits the use of public office for private gain, the City Code of Ethics clearly states employees and officials are not permitted the use of City-owned vehicles, equipment, material, or the use of other City resources for personal use. In addition, a City employee or official is prohibited from using a City automobile to travel to or from home, except when such use is for the benefit of the City, as in the case of an employee on-call outside of the employee’s working hours. (2.03.500, BMC). The City also has related policies and procedures that are available to 138 Page | 9 all City employees and public officials, including a specific vehicle use policy (see Administrative Order 2007-03), and an IT use policy (see Administrative Order 2020-04). 8. What if an Employee or Official has a Conflict of Interest? The Code of Ethics contains several provisions related to conflicts of interest. (2.03.520, BMC). Many of the ethics rules established in the City Code of Ethics provide general principles required of employees and officials while others provide specific direction. The conflict of interest section provides both specific rules required of an employee or official when confronted with a potential conflict, and general principles which can provide guidance if a situation is not covered by a specific rule. A conflict of interest can be either financial or personal. In general, no City official or employee shall take or influence official action if they have a financial or personal interest in any transaction or matter with the City without full public disclosure (further detailed in Section 11 of this handbook). (2.03.520.C, BMC). A financial interest is defined as any interest (such as ownership, a contractual relationship, or a business relationship), which will result in a monetary or other material benefit that has a value of more than fifteen dollars, other than an employee’s or official’s salary or compensation. (2.03.470.A.6, BMC). A personal interest is any interest that would affect the action of the individual other than a financial interest. (2.03.470.A.10, BMC). Clearly, it is better to avoid conflicts of interest than determine how to manage one after it arises. If a City official or employee has a conflict of interest, the individual should first review the specific language in the Code. If the Code does not provide specific direction, the employee or official should speak with their supervisor, the Human Resources Department, or the City Attorney (see Section 17 of this handbook). 9. Can Employees or Officials Disclose Confidential Information? Article II, Section 10 of the Montana Constitution provides an express right to privacy: “The right of individual privacy is essential to the well-being of a free society and shall not be infringed without the showing of a compelling state interest.” Confidential information held by the City is broader than information private to an individual. 139 Page | 10 Considering this constitutional right, and while balancing open government laws in Montana, the protection of confidential information is a public duty. To fulfill this obligation, City officials or employees are not, without legal authority, permitted to disclose confidential information concerning personnel, property, government, or affairs of the City. (2.03.530.A, BMC). Confidential information is defined as any information which is not available to the general public and which is obtained only by reason of an individual’s position with the City. (2.03.470.A.3, BMC). City officials and employees are also not permitted to use confidential information to advance their own financial or personal interest or the financial or personal interests of another person. (2.03.530.B, BMC). Finally, City employees and officials must use their best judgment to determine if information is confidential. If so, employees and officials are under obligation to protect those confidences. If an employee or official is uncertain whether information is confidential, the employee or official must contact their supervisor, the Human Resources Department, or the City Attorney. 10. Can Employees or Officials Accept Gifts? The purpose of an ethics provision on the acceptance of gifts is to ensure that public office is not used for private gain or to influence or reward a person for taking official action. There are times, however, when the acceptance of gifts, gratuities, or favors are in the public interest, such as when the acceptance of a gift assists in establishing effective relationships between the City and the public, acceptance of awards for public service, and attending public events in an official capacity. To address these concerns, in 2012, the Board of Ethics and City Commission adopted Ordinance 1833, which revised the gift provision in the City Code of Ethics. This was done because, in limited circumstances, there are legitimate governmental interests that allow an employee or official to accept a gift without such acceptance being considered the use of public office for private gain or to influence or reward. (2.03.540, BMC). In addition, in 2021, the City Commission adopted Ordinance 2092 recognizing certain items provided an employee or official because of their position as employees or officials do not constitute gifts. These include benefits provided by the City as an employer, discounts on good or services provided by a labor union or professional organization, and certain educational scholarships. (2.03.540.F.5-8, BMC). 140 Page | 11 Asking the following questions step by step may help you determine whether a gift can be accepted under the City Code of Ethics and if so, whether a public disclosure statement must be filed: 1. Does the gift, gratuity, or favor fall within any of the following categories? (2.03.540(F), BMC). a. Items or services provided to an employee or official in their private capacity and without relationship to their employment or official position; b. A prize received upon a random drawing at an event where the official or employee attends in their capacity as an employee or official, the drawing is open to all attendees, and receipt of the prize does not place the official or employee under obligation; c. An award publicly presented to an employee or official in recognition of public service; d. Compensation for officiating at a ceremony; e. Benefits provided by the City as an employer beyond salary and employment-related benefits, and which are available to all City employees; f. Discounts on goods or services, or other benefits provided by a labor union to its members who are employees of the City if: • The benefits are generally available throughout the state or the country to the same category of union member; and • The benefit is not offered to influence an employee to depart from the faithful and impartial discharge of a person’s public duties or to reward the person for official action taken; 141 Page | 12 g. Discounts on goods or services or other benefits provided by an employee’s professional organization if: • The benefit is generally available throughout the state or the country to the same category of professional organization member; and • The benefit is not offered to influence an employee to depart from the faithful and impartial discharge of a person’s public duties or to reward the person for official action taken; h. Educational scholarships provided by a private entity affiliated with the City or with an employee’s labor union or professional organization, including but not limited to a private corporation, foundation, and non- profit organization, to an employee because of their professional status or category if: • The benefit is not offered to influence an employee to depart from the faithful and impartial discharge of a person’s public duties or to reward the person for official action taken; and • The City does not purchase goods or services from the private entity. YES – The above items are NOT considered gifts. This item is not a gift, gratuity, or favor according to City code. NO – Go on to step 2. 2. Would the gift, gratuity, or favor tend to improperly influence (or appear to others to improperly influence) a reasonable person in the person’s position to depart from the faithful and impartial discharge of the person’s public duties? YES – STOP –It is unlawful to accept the gift regardless of its value. NO – it would not improperly influence or appear to influence. Go on to step 3. 142 Page | 13 3. Do you know or would a reasonable person in that position know the gift, gratuity, or favor is primarily for the purpose of rewarding for official action taken (or appear to others as a reward for official action taken)? YES – STOP – It is unlawful to accept something as a reward for an official action. NO – It is not and would not appear to be a reward for official action taken. Go on to step 4. 4. Does the gift, gratuity or favor have a value of $100 or more? YES – the value is less than $100 and would not tend to influence or reward. Go ahead and accept. NO – the value is more than $100. Go on to step 5. 5. Does the gift, gratuity, or favor have a value greater than $25 but less than $100 for an individual and is it provided incidental to and in conjunction with a public event where the official or employee’s attendance is in fulfillment of their official duties or is an educational or travel related expense incurred while representing the City? 143 Page | 14 YES – the value is greater than $25 but less than $100 and is provided incidental to and in conjunction with a public event in fulfillment of duties or is an educational or travel related expense incurred while representing the City, and would not tend to influence or reward. Go ahead and accept but only after filing a *public disclosure statement with the Board of Ethics that indicates the gift, its estimated value, the person or entity making the gift, the relationship to the employee or official, and the date of the gift. NO – the value is $100 or more. Go on to step 6. 6. Does the gift, gratuity, or favor involve accepting payment or reimbursement from a person or entity for necessary expenses such as travel, lodging, meals, and registration fees incurred while representing the City and does not place or appear to place the official or employee under obligation, clearly serves the public good, and is not lavish or extravagant? YES – it involves expenses incurred while representing the City, does not place me under obligation, serves the public good, is not lavish or extravagant and does not tend to influence or reward. Go ahead and accept but only after filing a *public disclosure statement with the Board of Ethics that indicates the gift, its estimated value, the person or entity making the gift, the relationship to the employee or official, and the date of the gift. NO – STOP – It is unlawful to accept a gift with a value of $100 or more that does not involve necessary expenses incurred while representing the City or that places one under obligation or does not serve the public good or is lavish or extravagant. * The City Clerk has gift disclosure forms available. Please note that Montana State Law (2-2-104, MCA) also has guidelines related to accepting gifts but since the City of Bozeman has narrower criteria, employees and officials must look to the City’s Code of Ethics for guidance. 144 Page | 15 If you are unsure whether you have interpreted the steps correctly or would like to verify whether or not you can lawfully accept a gift, gratuity, or favor, please check with your supervisor, the Human Resources Department, or the City Attorney. The City Attorney routinely advises employees and officials on a case-by-case basis regarding whether acceptance of a gift is lawful (for more information on contacting the City Attorney, see Handbook Section 17). 11. Do Employees or Officials Have to File Financial Disclosure Statements? Section 7.01(a) of the City Charter requires the “reasonable public disclosure of finances by officials with major decision-making authority over monetary expenditures and contractual and regulatory matters…”. The purpose behind the disclosure requirement is to ensure accountability and transparency in the management of public resources. The annual filing of a Financial Disclosure Statement is required for officials and employees who are determined to be “major financial decision makers.” Annually, the City Finance Director creates a list of individuals subject to the disclosure requirements are notified. (2.03.550.A.1, BMC). The City Clerk manages all the submitted disclosures. In addition, the Finance Department creates a list of vendors and service providers for each department who contract for services or materials greater than $2,500 each month or more than $10,000 per year. Each member of a department must disclose if they have an economic relationship with that vendor. (2.03.550.A.4, BMC). The Finance Department maintains this list of vendors. 12. What Are the Post-Employment Policies for Employees or Officials? The public may distrust actions taken by individuals who once worked for or represented the City when the knowledge gained in service to the City directly benefits the former employee or official. To balance these considerations, City employees and officials are subject to specific rules that apply to post-employment activities. As a rule, City employees and officials may not, for 12 months following the date they cease to be a public servant, make any formal or informal appearance before or negotiate with any decision maker regarding a transaction or matter which was under the public servant’s direct 145 Page | 16 responsibility or which the former public servant participated personally and substantially; without filing a public notice. (2.03.560.A.1, BMC). Public noticing requirements can be found in 2.03.570, BMC. In addition, during the first 12 months after separation from the City, no former official or employee may, without filing a proper disclosure, represent, act or appear on behalf of an individual or entity other than the City in connection with any transaction or matter which was under the former public servant’s direct responsibility or which the former public servant participated personally and substantially as a public servant. (2.03.560.A.2, BMC). Public noticing requirements can be found in 2.03.570, BMC. However, there may be times when, after a proper disclosure is made, involvement by the former employee or official would not be prohibited. The disclosure shall be made with the City Clerk and with the City Attorney. (2.03.570, BMC). In some instances, the public may not understand or be privy to these disclosures prior to a lawful action taking place. As a result, employees and officials who leave the City should be mindful of the long- term implications for the public trust when considering engaging in an activity subject to the Code of Ethics. In addition, City employees and officials may not use their former City title following separation from employment with the City unless the former public servant indicates the employment with the City was prior to the current employment. (2.03.560.B, BMC). 13. Are there Restrictions on Ex Parte Communications? Favoritism and bias in decision-making has the potential to negatively impact the public’s trust. When an official engages in discussions with individuals outside of the official public process, the public may view decisions involving those individuals with distrust. Ex parte communications are defined as private, one-sided communication between a decision-maker and a party or person while an issue involving the person is pending before that decision-maker. While the City Code of Ethics does not specifically address ex parte communications for employees and officials, these individuals must comply with established principles regarding 146 Page | 17 such communications, particularly for those individuals acting in a quasi- judicial capacity. The first principle regarding ex parte communication is to avoid it. If, however, an individual feels that they are involved in an ex parte communication that may negatively impact their ability to perform official duties, the individual must disclose the communication on the record, recuse themselves from participating in the discussion and action on the subject, and step away from their official seat on the board or committee. If the communication does not affect an official’s ability to impartially perform their duties, the official must still disclose the existence of the ex parte communication and state on the record that their decision will be based solely on the public record and not on the substance of the ex parte communication. Employees and officials should seek the advice of the City Attorney for general information on ex parte communication and when such communications occur. 14. What is the City Whistle Blower Policy? Transparent and fair practices are at the heart of the public’s trust in Bozeman’s government. When officials and employees violate this trust, the public should have the opportunity to actively report violations. Without such opportunity, the very premise upon which the Charter and City Code of Ethics are built will not be fulfilled. The Code of Ethics refers to “whistle blowing” as the “reporting of improper governmental action.” As such, the City has established Code of Ethics provisions that define and provide a procedure for reporting improper governmental conduct. (2.03.590, BMC). Every official and employee must refrain from improper governmental action. An improper governmental action includes any action taken by an official or employee during the performance of their duties that violates the standards of conduct in the Code of Ethics or Montana state law, or is intended to harass, intimidate, or retaliate against any other employee, official, or any member of the public. This principle is critical: No official or employee shall retaliate against any employee, official, or member of the public regarding an allegation of improper governmental action. (2.03.490.I, BMC). An improper governmental action also includes any action that violates a fiduciary duty to the City or its citizens or creates a danger to the public’s 147 Page | 18 health or safety. (2.03.470.A.8.a, BMC). To ensure the public is afforded the ability to “whistle blow,” the Code of Ethics specifically states that every City employee, official, or member of the public has the right to report in good faith, information concerning improper governmental action. (2.03.590.B, BMC). The City Code of Ethics further states that “each member of the public shall be treated courteously, impartially, and fairly. All employees and officials shall in the exercise of their official duties refrain from taking any action, making of any statement, or authoring any document that is intended to harass, intimidate, or retaliate against any member of the public.” (2.03.510, BMC). It is important to note that “improper governmental action” excludes personnel actions, including but not limited to: employee grievances, complaints, appointments, promotions, transfers, assignments, reassignments, reinstatements, restorations, reemployments, performance evaluations, reductions in pay, dismissals, suspensions, demotions, reprimands, violations of collective bargaining or civil service laws, or alleged violations of agreements with labor organizations under collective bargaining. (2.03.470.A.8.b, BMC). Finally, a properly authorized City program or budgetary expenditure does not become an improper governmental action because a person disagrees with the City’s policy or decision. (2.03.470.A.8.c, BMC). Members of the public who may want to discuss a potential whistle blowing action are encouraged to contact the City Attorney. One last note: reporting of improper governmental conduct does not require the filing of a formal ethics complaint. 15. What State Laws Apply to Ethics in Local Government? Montana ethics laws apply to local government officials and employees. Because of this, employees and officials must understand there are provisions of State law in addition to the City Code of Ethics that apply to employees and officials. For example, both State law and the City Code of Ethics prohibit conflict between public duty and private interest as required by the Constitution of Montana. (2-2-101, MCA). Montana law provides a number of rules of conduct for public officers and employees. (2-2-121, MCA 148 Page | 19 and 2-2-104, MCA). Employees and officials should familiarize themselves with these rules. Another important provision of State law applicable to employees and officials is the requirement that they may not receive a salary from two separate public employment positions that overlap for the hours being compensated. Employees and officials should familiarize themselves with other specific provisions and exceptions of State law that are detailed in the Montana Code Annotated. (2-2-104 (3)(a), MCA). Employees and officials must also disclose in writing the nature of any private interest that creates a conflict to the Commissioner of Political Practices at the address below. (2-2- 131, MCA): Montana Commissioner of Political Practices 1205 8th Ave P.O. Box 202401 Helena, MT 59620-2401 https://politicalpractices.mt.gov/ According to State law, a public employee (as defined by 2-2-102(8), MCA) may not within six months following the termination of employment, contract with or be employed by an employer who contracts with the State or any of its subdivisions involving matters with which the former employee was directly involved during employment. This provision does not absolve an employee from complying with the post-employment activities of the City Code of Ethics (see Section 11 of this Handbook). The prohibition on post- employment activity in the City Code of Ethics lasts for twelve months. Employees and officials are encouraged to familiarize themselves with 2-2- 201, MCA and 2-2-105(3), MCA. City employees and officials are also subject to State law regarding nepotism. Nepotism is defined as the “bestowal of political patronage by reason of relationship rather than of merit.” (2-2-301, MCA). It is unlawful to appoint a person who is related by blood (consanguinity) or marriage (affinity) to any position of “trust or emolument” (meaning any office or employment that results in compensation or privilege) within certain degrees of relationship. While State law related to nepotism applies only to these relationships, the appearance of favoritism with regards to friends or acquaintances of employees or officials can also be a hindrance to the public’s trust in Bozeman’s government. 149 Page | 20 State law also addresses the receipt of gifts. The City’s gift provision in the Code of Ethics is more stringent than State law so employees and officials must consult and comply with the City’s gift provision keeping in mind they are also required to comply with the State’s gift provision. (2-2-104(1)(b), MCA). Employees and officials should consult with the City Attorney for additional information on potential conflicts or exceptions to State requirements. 16. What are the Penalties for Violating the Code of Ethics? The rules of the State and City Codes of Ethics are enforced in a way that ensures public trust in City officials and employees. All employees and officials must understand that a violation of the City or State Code of Ethics may lead to disciplinary action, up to and including termination, removal from office, or even criminal sanctions. While there are provisions in State code for violations of state law, (2-2-144, MCA), a violation of the City Code of Ethics, in addition to termination or removal from office, could be prosecuted for official misconduct under 45-7-401, MCA. 17. Are there Additional Resources on Ethics in Local Government? The following is a partial list of additional resources for information on ethics in local government: City of Bozeman Board of Ethics c/o Office of the City Clerk 121 North Rouse P.O. Box 1230 Bozeman, MT 59771-1230 Tel: (406) 582-2320 agenda@bozeman.net Individual Board members can also be reached via bozeman.net email addresses. For current board member names and email addresses please see: bozeman.net/government/city- commission/ethics 150 Page | 21 Local Government Center Montana State University P.O. Box 172240 Bozeman, MT 59717 Tel: (406) 994-6694 msulocalgov@montana.edu www.msulocalgov.org Ethics Resource Center 2345 Crystal Drive, Suite 201 Arlington, VA 22202 Tel: (703) 647-2185 ethics@ethics.org www.ethics.org City Ethics, Inc. 4417 Beach Blvd., Suite 300 Jacksonville, FL 32207 info@cityethics.org www.cityethics.org Council on Governmental Ethics Laws P.O. Box 81237 Athens, GA 30608 Tel: (706) 548-7758 director@cogel.org www.cogel.org 151 Page | 22 18. What is the Process to Seek Advice About the City Code of Ethics? If a City employee or official has a question about a potential ethics issue, depending on the employee’s or official’s position and the nature of the issue, they should consult with their supervisor, the Human Resources Department, or seek the advice of the City Attorney. Any member of the public may also request a City Attorney opinion with respect to potential conflicts of interest of an employee or official. (2.03.630.A, BMC). Contact information is available below. Bozeman City Attorney’s Office Bozeman City Hall 121 North Rouse Ave. P.O. Box 1230 Bozeman, MT 59771-1230 Tel: (406) 582-2309 City of Bozeman Human Resource Department Bozeman City Hall 121 North Rouse Ave. P.O. Box 1230 Bozeman, MT 59771-1230 Tel: (406) 582-2300 humanresources@bozeman.net The public can also ask questions through the ASK BZN portal on the City’s website. 19. How Can an Ethics Complaint be Filed? Any member of the public may file a complaint with the Board of Ethics. (2.03.640, BMC). Written complaints must be filed with the City Clerk at the address below. City of Bozeman Board of Ethics C/o Office of the City Clerk 121 North Rouse P.O. Box 1230 152 Page | 23 Bozeman, MT 59771-1230 Tel: (406) 582-2320 comments@bozeman.net City of Bozeman - Ethics Individual Board members can also be reached via their bozeman.net email address. 153 Memorandum REPORT TO:Tax Increment Finance Advisory Board FROM:David Fine, Urban Renewal Program Manager SUBJECT:Introduction to Tax Increment Finance and Urban Renewal MEETING DATE:January 15, 2026 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:N/a STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Economic Development staff will provide an overview on the use of tax increment financing and Bozeman's Urban Renewal Districts and Plans. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by the Board. FISCAL EFFECTS:None. Attachments: Midtown Urban Renewal District Plan FINAL.pdf Midtown Action Plan V10 with attachments.pdf Ordinance No. 1655, Adopts Urban Renewal Plan for portions of NE Bozeman.pdf Pole Yard Urban Renewal Plan adopted 11.25.2020.pdf North.Park.Urban.Renewal.District.Plan.10.9.17.pdf South Bozeman Tech Park Comp Dev Plan.pdf Report compiled on: January 8, 2026 154 BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT DECEMBER 2015 155 Table of Contents Chapter 1. Introduction and Overview ........................................................ 1 Chapter 2. Description of the Bozeman Midtown Urban Renewal District 7 Chapter 3. Documentation of Blight .......................................................... 20 Chapter 4. Planning Consistency ............................................................... 26 Chapter 5. Goals and Strategies ................................................................. 32 Chapter 6. Project Evaluation Criteria ..................................................... 39 Chapter 7. Implementation ......................................................................... 42 Appendix A. Public Meeting Summaries ................................................... 53 Appendix B. Planning Consistency Review ............................................... 57 156 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 1 Chapter 1. Introduction and Overview In February 2005, the Bozeman City Commission directed city staff, pursuant to the provisions of the State of Montana Urban Renewal Law, to examine conditions along North 7th Avenue and adjacent lands, in the midtown area of the City of Bozeman and report to the City Commission as to “the need for, desirability of, and feasibility of creating an urban renewal program”. The area examined was largely comprised of automobile oriented, strip commercial development built on and adjacent to North 7th Avenue in the 1960’s and 70’s, in response to transportation-related improvements to Interstate 90 and Oak Street. These improvements have significantly influenced the platting of land and land-use, access, traffic and circulation, and development patterns in the area. In addition to the primary commercial corridor, portions of the residential neighborhoods that adjoin the North 7th Avenue to the east and west were also examined. These areas were included in order to assure that any proposed urban renewal activities in the North 7th Avenue corridor would carefully consider issues associated with these well-established residential areas. More particularly, the area that was studied in 2005 included “the commercially zoned property between North 5th Avenue and North 8th Avenue from Main Street north to the city limits, vacant R-4 zoned parcels between Tamarack Street and Oak Street from North 5th Avenue to North 3rd Avenue right of way extended, and a commercially zoned parcel north of Oak Street between North 3rd Avenue right of way extended, and a commercially zoned parcel north of Oak Street between North 3rd Avenue right of way extended and the North Black Avenue alignment. Between West Main Street and West Lamme Street, the original study area extended east only as far as a point roughly mid-block between North 7th and North 5th Avenues.” The information gathered in the 2005 investigation indicated that the area was eligible for designation as an urban renewal district (URD) under 7-15-4201 et. seq MCA (the Montana Urban Renewal Law), primarily due to: • the defective or inadequate street layout identified within the study area • instances of known deterioration • inadequate provisions and/or age obsolescence of the following public improvements within the study area: storm drain, streets and sidewalks • instances of age obsolescence of buildings within the study area • inappropriate or mixed uses of land or buildings • deterioration of site; and improper subdivision or obsolete platting Based on these findings, the City Commission adopted Resolution 3839, a Resolution of Necessity, in August of 2005 and subsequently approved Ordinance 1685, on November 27, 2006. The ordinance created the North Seventh Avenue Urban Renewal District and adopted the North Seventh Avenue Urban Renewal District Plan with a provision for tax increment financing, to be calculated using a base year of 2006. The Commission established a North Seventh Avenue Urban Renewal Board (NSURB) to serve in an advisory capacity to the 157 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 2 Commission in planning for, implementing and administrating a program of rehabilitation and revitalization for the District. The 2006 Plan notes that the North 7th Avenue is a vital part of the City of Bozeman and is an established entryway corridor that extends from I-90 south to Main Street. In the city's rating system, this is a Class II corridor, which is automobile-oriented; however, it has the potential to become more pedestrian-oriented while serving its arterial function. It serves as a major circulation corridor and is home for a variety of businesses that contribute to the vitality of the community. Historically, it served as the first north-south corridor for automobiles in the City and was the community’s first connection to Interstate 90. Visitors and residents alike recall a lovely tree-lined avenue that served as a gateway to Montana State University. However, important as it is today, North 7th Avenue’s full potential has not been fully realized. While the North Seventh Avenue Urban Renewal program has supported revitalization activities in the district, some issues remain. These include the lack of connection to other parts of the city and the failure to diversify the types of uses and achieve the degree of intensity of development that could occur. A key objective of the Plan was to establish a district identity for the corridor and the subareas within it. This objective has been partially met through the installation of trees, boulevards and other elements in a portion of the corridor in recent years, but the area remains without a unifying identity. In March of 2015, the City Commission provided funding for the NSURB to examine several areas adjacent to the North Seventh Avenue Urban Renewal District, to determine whether the district could be expanded in order to better meet its goals and objectives. The NSURB had become concerned that the failure to address blighted conditions in these areas had stymied rehabilitation and redevelopment within the existing district. In addition, the existing North Seventh Avenue Urban Renewal District was, in some places, only one block from the Downtown Area Urban Renewal District, further exacerbating the lack of connectivity between the two areas. While the area in between was characterized by the same conditions that were present in both districts, it could not take advantage of ongoing urban renewal programs. The NSURB directed that seven areas, adjacent to the existing urban renewal district, be evaluated as to whether it would be appropriate to expand the district to include all or some of these areas. These areas are as follows: 1. Southern Boundary Area, North Side of West Main Street - An area on the east side of the southern boundary of the urban renewal district was reviewed. It is bounded by Lamme Street on the north, West Main Street on the south, North 3rd Avenue on the east and North 6th Avenue on the west. This area is located between two existing urban renewal districts, the North Seventh Avenue and the Downtown Urban Renewal Districts. The 158 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 3 conditions of blight in this area are similar to those found inside each of these districts. 2. Southern Boundary Area, South Side of West Main Street – An area located just south of the southern boundary of the North Seventh Avenue Urban Renewal District was examined. It is bounded on the north by West Main Street, on the south by West Babcock Street, on the west by South 9th Avenue and on the east by South 5th Avenue. This area exhibits conditions of blight similar to the two adjacent urban renewal districts and exclusion has resulted in limited reinvestment. 3. The Whittier School Remainder – While some of the Whittier School property is in the original district, a portion of the property owned by the School District was not included. The area is directly south and southwest of the Whittier School and includes the playground and the school parking lot. 4. East Side Property – This area is located to the east of the existing urban renewal district and is bounded on the north by Tamarack Street, on the south by Peach Street, on the west by North 5th Avenue and on the east by North 3rd Avenue. The area includes an improved BMX Park that has seen significant use and public investment in recent years. However, the overall area of the East Side Property exhibits a number of blighted conditions. 5. West Side Property – This parcel of land is bounded on the north by Oak Street, the south by Durston Road, on the east by what would be 8th Avenue and on the west by the future 11th Avenue, excluding Royal Vista, Royal Vista Addition, Royal Court and the west end of Birch. It directly abuts properties that front on the west side of North 7th Avenue. It is largely vacant and lacks adequate infrastructure and provides no access to areas to the west. In effect, it forms a barrier between the urban renewal district and the neighborhoods to the west. This in turn negatively affects revitalization efforts. 6. Northwest Site – This site is bounded on the south by Patrick Street, on the north by Baxter Lane, on the east by 11th Avenue and on the west by 15th Avenue. It is adjacent to several area hotels, but is largely vacant, and underutilized. 7. Murdoch’s Annexation Property – This site is comprised of 3.889 acres located on the north side of Murdoch’s, and addressed as 2507 and 2511 North 7th Avenue. This area is located between the existing North Seventh Avenue Urban Renewal District and an existing tax increment financing industrial district. Its exclusion has made it ineligible to benefit from various urban renewal and infrastructure programs. The investigation’s findings revealed that these areas exhibited conditions of blight as defined in the Montana Urban Renewal Law and that the improvement of these areas would benefit the 159 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 4 overall North Seventh Avenue Urban Renewal program. On September 14, 2015, the Bozeman City Commission, with support from the NSURB, adopted Resolution 4639, a Resolution of Necessity, finding that “the rehabilitation, redevelopment, or both of an area or areas are necessary in the interest of the public health, safety, morals, or welfare of the residents of the municipality.” (7-15-4210 MCA) This in turn, provided the basis for amending the existing urban renewal plan and district boundary to include any or all of these areas which were identified in the Resolution. Therefore this urban renewal plan amends the existing North Seventh Avenue Urban Renewal District to incorporate these additional areas. The ordinance adopting the amended plan and district boundary will also establish a new name for the District. It will be known as the Bozeman Midtown Urban Renewal District, to more accurately reflect the size and location of the areas included. Statement of Purpose – Bozeman Midtown Urban Renewal District Plan To address blighted conditions in the Midtown area, the City of Bozeman is continuing its program of redevelopment and revitalization within and adjacent to the North 7th Avenue corridor through the expansion of the urban renewal district. The new district boundary and amended plan will be adopted by ordinance, which will provide for a new name for the district – the Bozeman Midtown Urban Renewal District. The Plan includes a provision to use tax increment financing, as funds become available, in addition to other resources in implementing its goals and strategies. The Plan provides a context for activities that will be undertaken by a variety of public and private entities. It recommends a series of programs and projects that may be undertaken by the local government to encourage reinvestment in the district, which will in turn address conditions that have diminished the environmental, economic and cultural well being of the area over time. Although the Montana Urban Renewal Law recognizes that eliminating the conditions that are referred to as urban blight is a matter of general public interest, this Plan has been developed, based on the underlying principle that it is the citizens who work, reside and own property in the area who will be engaged directly in the revitalization effort. Guiding Principles This Urban Renewal Plan is a reflection of sound public policy and thoughtful planning. To this end the following principles, further described in Chapter 6, will guide revitalization and redevelopment efforts in the URD. Readiness Leveraging Design Public-Private Partnerships Tax Increment Financing The City of Bozeman will continue to utilize Tax Increment Financing (TIF) in conjunction with other funding sources to help foster revitalization within the Midtown URD. The base year for 160 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 5 the purposes of measuring any incremental value within the original district boundaries will continue to be 2006, while the base year for the expanded portions of the district will be 2015. Tax Increment Financing is a state authorized, locally driven funding mechanism that allows cities and counties to direct property tax dollars that accrue from new development, within a specifically designated district, to community and economic development activities. In Montana, TIF districts are authorized in parts 7-15-4201 and 4301, et. seq Montana Code Annotated (MCA), the State’s Urban Renewal Law. TIF districts are typically characterized by conditions that are defined as blight and/or infrastructure deficiencies that have limited or prohibited new investment. A base year is established from which "incremental" increases in property values are measured. Virtually all of the resulting new property tax dollars (with the exception of the six mill state-wide university levy) can be directed to redevelopment and economic revitalization activities within the area in which they are generated. Taxpayers located within a TIF district pay the same amount as they would if the property were located outside the district. TIF only affects the way that taxes, once collected, are distributed. Taxes that are derived from base year taxable values continue to be distributed to the various taxing jurisdictions – local and state government entities and school districts. Taxes derived from the incremental increase in taxable value are placed in a special fund for purposes set forth in an Urban Renewal Plan. Tax Increment Financing Districts are authorized for 15 years, but may be extended for up to an additional 25 years if TIF revenue bonds are sold any time during the first 15 years. Funds may be used for a variety of purposes as provided for in 7-15- 4288 MCA and include improvements to vehicular and pedestrian transportation infrastructure, streetscapes, parks and landscaping, water and sewer lines and for connecting to infrastructure outside the district. While funds are typically used for public infrastructure investments, there are instances where local governments have used TIF funds to partner with private property owners to make improvements to historic buildings, to address life-safety issues and to enhance landscaping. The statutes also provide for the establishment of a TIF revolving loan program that can support private investment in the TIF District. Loan funds can continue to “revolve” beyond the life of the District. In order to proceed with the expansion of the district, formerly known as the North Seventh Avenue URD, the City of Bozeman was required to provide documentation that blighted Tax Increment Financing Schematic 161 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 6 conditions exist within the district and pass a Resolution of Necessity to address blighted conditions. The Montana Urban Renewal law states in 7-15-4210 MCA, that a municipality may not exercise any of the powers authorized by part 42 and 43 until after its local governing body has adopted a resolution finding that: (1) one or more blighted areas exist in the municipality as documented by the presence of at least three blighted conditions; and (2) the rehabilitation, redevelopment, or both of an area or areas are necessary in the interest of the public health, safety, morals, or welfare of the residents of the municipality. As noted above, the Resolution of Necessity – City of Bozeman Resolution 4639 was adopted on September 14, 2015. 162 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 7 Chapter 2. Description of the Bozeman Midtown Urban Renewal District The Setting The City of Bozeman is the county seat of Gallatin County located in southwest Montana. The City is named for John M. Bozeman who established the Bozeman Trail and was a key founder of the town in August 1864. The town became incorporated in April 1883 with a city council form of government and later in January 1922 transitioned to a city manager/city commission form of government. Bozeman residents approved a City Charter in the November 2006 general election. Bozeman was elected an All-America City in 2001 by the National Civic League. Bozeman is home to Montana State University and is served by Bozeman Yellowstone International Airport. (Wikipedia) Demographic and Economic Information The City of Bozeman is growing. According to 2014 Census estimates, there are 41,660 people living in the City of Bozeman, significantly higher than the 2010 Census figure of 37,280. The county’s population is projected to experience continued growth through 2060, from 97,197 in 2015 to 145,389 in 2060, an increase of nearly 50% (Montana Economic and Information Center). Census information, recorded over a one hundred year period, beginning in 1910, indicates that the City’s population has grown rapidly since 1950. The following figure presents population data for the City from 1910 to 2010, based on the decennial census. Source: Montana Census and Economic Information Center However, despite rapid growth, the City’s poverty rate at 21.2% is significantly higher than the poverty rates for Gallatin County, Montana and the nation, which are 14.1%, 15.2% and 15.4% respectively. (American Community Survey – ACS, 2009-2013). Median Household Income for residents living in Bozeman is $44,615, lower than the County’s median, which is $52,833 and somewhat lower than the state, at $46,230 and the nation, at $53,046 (ACS, 2009-2013). The following table shows employment in the City of Bozeman by industry. The “Educational services, health care and social assistance” sector employs the most people, followed by “arts, entertainment, and recreation, and accommodation and food services” and “retail trade”. 0 5000 10000 15000 20000 25000 30000 35000 40000 City of Bozeman Population - 1890 to 2010 Population 163 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 8 EMPLOYMENT BY INDUSTRY CITY OF BOZEMAN SOURCE: ACS 2009-2013 ESTIMATE MARGIN OF ERROR PERCENT PERCENT MARGIN OF ERROR Civilian employed population 16 years and over 21,647 +/-580 21,647 (X) Agriculture, forestry, fishing and hunting, and mining 499 +/-138 2.3% +/-0.6 Construction 1,247 +/-244 5.8% +/-1.1 Manufacturing 1,369 +/-298 6.3% +/-1.3 Wholesale trade 484 +/-154 2.2% +/-0.7 Retail trade 2,951 +/-415 13.6% +/-2.0 Transportation and warehousing, and utilities 485 +/-168 2.2% +/-0.8 Information 293 +/-125 1.4% +/-0.6 Finance and insurance, and real estate and rental and leasing 1,132 +/-309 5.2% +/-1.4 Professional, scientific, and management, and administrative and waste management services 2,613 +/-609 12.1% +/-2.7 Educational services, and health care and social assistance 5,544 +/-439 25.6% +/-2.1 Arts, entertainment, and recreation, and accommodation and food services 3,385 +/-472 15.6% +/-2.1 Other services, except public administration 895 +/-210 4.1% +/-1.0 Public administration 750 +/-306 3.5% +/-1.4 Urban Renewal Area Description As noted above, the original North Seventh Avenue Urban Renewal District includes the North 7th Avenue corridor and portions of adjacent neighborhoods to the east and west. The following brief history of the area is taken from a 2013 article in Bozeman Magazine written by Courtney Kramer, entitled Wrapping Signal Boxes In History. “North Seventh Avenue became an entryway to Bozeman during the mid-20th century, when automobile transportation eclipsed streetcars and trains. First as the road to Belgrade, then as a connection to Interstate 90, North Seventh Avenue developed as a car-oriented commercial area. In fact, for a short time in the early 1960s, travelers had to detour from I-90, south on Seventh Avenue, then East on Main and back onto I-90 while the road section between the North Seventh and East Main interchanges was under construction. As a result, motor court hotels (later shortened to “motels”) like the Rainbow Motel, the Royal Seven and the Rambler Motel (now known as the Bozeman Inn) developed to provide lodging facilities for travelers. Across I-90 the Starlight Drive-In provided a venue for movie-viewing from the comfort of the family car.” (bozemanmagazine.com/articles/2013/12/31/22635_wrapping-signal-boxes-in history) As noted above, today the corridor is a key community entryway, connecting Interstate 90 with Bozeman’s core, particularly the downtown and the Montana State University Campus. While North 7th Avenue originally featured street trees along most of the corridor, road reconstruction and the building of off-street parking required the removal of the trees over time. 164 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 9 Land Use in the Urban Renewal Area Generally, the Bozeman Midtown Urban Renewal District is characterized by a mixture of strip commercial (including big box stores, fast food restaurants, and motels), adjacent residential and some light industrial uses. As noted above, the core of the area is largely comprised of automobile oriented, strip commercial development built on and adjacent to North 7th Avenue in the 1960’s and 70’s, in response to transportation-related improvements to Interstate 90 and Oak Street. These improvements have significantly influenced the platting of land and land-use, access, traffic and circulation, and development patterns in the area. Residential properties include a mix of single- and multi-family dwellings. The Whittier School is located in the eastern portion district and serves area neighborhoods. The expansion areas include large vacant parcels, some park / open space lands and properties excluded from other TIF districts. Development of these areas has been limited by the lack of connectivity in the road system as well as other public infrastructure. Map of the North Seventh Avenue Urban Renewal District and Expansion Areas The existing North Seventh Avenue Urban Renewal area is shown in blue on the map below with each expansion area shown in yellow on the same map below. An enlarged map of each expansion areas is found starting on page 13. These maps are intended for visual display purposes and to assist the Montana Department of Revenue with certification. The accuracy of these maps shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. 165 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 10 166 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 11 Legal Description of the Original North Seventh Avenue Urban Renewal District Beginning at the point of the southeast corner of Lot 7 Block 1 of the Springbrook Addition thence westerly approximately 270 feet to the southwest corner of Lot 17 Block 1 of the Springbrook Addition, thence westerly approximately 30 feet to the centerline of North 8th Avenue, thence northerly approximately 1,292 feet to the centerline of West Villard Street thence easterly approximately 30 feet to the southwest corner of Lot 8 of the Durston Subdivision, thence northerly approximately 665 feet, thence westerly approximately 4 feet, thence northerly approximately 214 feet to the centerline of West Peach Street, thence westerly approximately 65 feet to the southwest corner of Lot 18 Block 1 of Durstons Second Subdivision, thence northerly approximately 1980 feet to the southwest corner of Lot 3 Block 2 of the Vista Addition, thence easterly approximately 150 feet to the southwest corner of Lot 2 Block 2 Vista Subdivision, thence northerly approximately 645 feet to the northwest corner of Lot 14 Block 1 Vista Addition, thence westerly approximately 1246 feet along the southern boundary of the Oak Street right-of-way to the northwest corner of Tract 1 of C.O.S. 2082, thence northerly approximately 1706 feet down the centerline of North 11th Avenue to the south boundary of the Baxter Lane right-of-way, thence northerly approximately 70 feet across the Baxter Lane right-of-way, thence northerly approximately 170 feet across the MDOT right-of- way for Interstate 90 to the southwest corner of Lot 2 of the Wheat Commercial Subdivision, thence northwesterly approximately 1000 feet along the southern boundary of Tract A of C.O.S. 391A to the westernmost point, thence easterly approximately 800 feet to the northwest corner of Lot 1 of the Wheat Commercial Subdivision, thence easterly approximately 789 feet to a point approximately 25 feet from the northeast corner of Lot 12 of the Wheat Commercial Subdivision, thence northerly approximately 965 feet to the northwest corner of Lot 3 of the Gordon Mandeville School Section Subdivision, thence easterly approximately 440 feet to the west boundary of the North 7th Avenue right-of-way boundary , thence northerly approximately 1760 feet to a point where the west boundary of the North 7th Avenue right-of-way intersects the Burlington Northern right-of-way, thence southeasterly approximately 1,408 feet along the Burlington Northern right-of-way to the southeast corner of Lot 18A of the Amended Plat of the Gordon Mandeville State School Section Subdivision, thence westerly approximately 200 feet to the northeast corner of Lot 17 of the Gordon Mandeville School Section Subdivision, thence southerly approximately 481 feet to the southwest corner of Lot 20 of the Gordon Mandeville School Section Subdivision, thence southwesterly approximately 107 feet to the southeast corner of Lot 16 of the Gordon Mandeville School Section Subdivision, thence westerly approximately 260 feet to the northeast corner of Lot 15B of Minor Subdivision #49, thence southerly approximately 686 feet to a point along the north boundary of Lot 20 of the Industrial Park Subdivision approximately 20 feet west of the northeast corner of said lot, thence westerly approximately 340 feet to the northeast corner of Lot 22 of the Industrial Park Subdivision, thence southerly approximately 698 feet to the southwest corner of Lot 14 of the Industrial Park Subdivision, thence southeasterly approximately 100 feet to the northwest corner of Lot 3A of the Industrial Park Subdivision, thence southerly approximately 550 feet along the east boundary of Lot 3A of the Industrial Park Subdivision across the MDOT right-of-way of Interstate 90 to a point along the north boundary of Lot 1 of Minor Subdivision #109 approximately 486 feet from the northeast corner of said lot, thence southeasterly approximately 486 feet to the northeast corner of Lot 1 of Minor Subdivision #109, thence southeasterly along the MDOT right-of-way for Interstate 90 S72°17'38"E a distance of 324.41 feet and along a non-tangent curve to the right 167 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 12 having a radial bearing of S17°44'19"W and a radius of 22,795.00 feet a distance of 1096.81 feet to the northwest corner of Tract 2 of Certificate of Survey No. 2128B; thence along the westerly line of said Tract 2 S01°26'44"E a distance of 372.92 feet and S47°04'50"W a distance of 207.62 feet to a point on the north right-of-way line of West Oak Street, thence westerly approximately 1111’ to the centerline of North 3rd Avenue, thence southerly approximately 1523 feet to the centerline of West Tamarack Street, thence westerly approximately 776 feet to a point approximately 30 feet north of the northwest corner of Lot 11 Block 2 of the 7th Addition, thence southerly approximately 1443 feet along the west side of the right-of-way for North 5th Avenue to the southeast corner of Lot 6 Block 1 of the Violett Addition, thence westerly approximately 401 feet to the centerline of the alleyway intersection of West Short Street, thence southerly approximately 522 feet to the centerline of West Villard Street, thence easterly approximately 249 feet to a point approximately 30 feet north of the northwest corner of Lot 6 Block 2 of Border Tract 13, thence southerly approximately 30 feet to the northwest corner of Lot 6 Block 2 of Border Tract 13, thence southerly approximately 556 feet to the southeast corner of Lot 7 Block E Tracy’s 3rd Addition, thence southerly approximately 30 feet to the centerline of West Lamme Street, thence westerly approximately 85 feet to a point approximately 30 feet north of the northeast corner of Lot 33 Block E Tracy’s 2nd Addition, thence southerly approximately 68 feet to the southeast corner of Lot 10 Block E Tracy’s Addition, thence westerly approximately 368 feet to the southeast corner of Lot 7 Block 1 of the Springbrook Addition, the point of beginning. Descriptions and Maps of the Expansion Areas. This information is intended to assist the Montana Department of Revenue with certification. The accuracy of this information shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. 1. Southern Boundary Area, North Side of West Main Street – This area is bounded by Lamme Street on the north, West Main Street on the south, North 3rd Avenue on the east and North 6th Avenue on the west. Description: The Southern Boundary Area, North Side of West Main Street includes: Lots 35-36, Block E, Tracy’s 2nd Addition Lots 1-7, and 10A, Block E, Tracy’s 2nd Addition Lots 1-21, Block D, Tracy’s 2nd Addition Lots 22-33, Block D, W.H. Tracy’s Addition to Bozeman (Tracy’s 1st Addition) Lots 1-9, plus east ½ of Lot 10 and Lots 39-48, and vacated alley adjacent to lots 3-9 and Lots 40-46, Block E,W.H. Tracy’s Addition to Bozeman (Tracy’s 1st Addition) 2. Southern Boundary Area, South Side of West Main Street – This area is bounded on the north by West Main Street, on the south by West Babcock Street, on the west by South 9th Avenue and on the east by South 5th Avenue. Description: The Southern Boundary Area, South Side of West Main Street include all of the parcels bound by West Main Street, 7th Avenue South, West Babcock Street and 9th Avenue South, including a vacated street; and Lots 1–21, Block E, Story Addition. 168 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 13 Map of Expansion Areas 1. and 2. Southern Boundary Area 3. The Whittier School Remainder – While some of the Whittier School property is in the original district, a portion of the property owned by the School District was not included. The area is directly south and southwest of the Whittier School and includes the playground and the school parking lot. Description: Lots 1 and 2, Block 3 of the Violett Addition, and Lots 1 and 18 and the north 26 feet of Lots 2 and17 of the Violett Addition plus the adjacent vacated alley. 4. East Side Property – This area is located to the east of the existing urban renewal district and is bounded on the north by Tamarack Street, on the south by Peach Street, on the west by North 5th Avenue and on the east by North 3rd Avenue. Description: Parcels found in the block, located in the southeast quarter of the southeast quarter of Section 1, Township 2 South, Range 5 East, which is bordered on north by West Tamarack Street, on the south by West Peach Street, on the east by North 3rd Avenue, and on the west by North 5th Avenue. 169 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 14 Map of Expansion Areas 3. The Whittier School Remainder and 4. East Side Property 5. West Side Property – This parcel of land is bounded on the north by Oak Street, the south by Durston Road, on the east by what would be 8th Avenue and on the west by the future 11th Avenue, excluding Royal Vista, Royal Vista Addition, Royal Court and the west end of Birch. It directly abuts properties that front on the west side of North 7th Avenue. Description Parcels located within that portion of the west half of the southeast quarter of Section1, Township 2 South, Range 5 East described as follow: Beginning at the South ¼ corner of Section 1, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana: thence northerly along the midsection line of said Section 1 a distance of 1999. 67 feet to the southwest corner of Tract 1, C.O.S. 2082; thence easterly along the south line of said Tract 1 and the south line of Royal Vista Addition a distance of 940 feet more or less the southwest corner of Lot 3 Block 2 of Royal Vista Addition, thence southerly a distance of 2000 feet more or less to the south section line of Section 1, thence westerly to the point of beginning. 170 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 15 Map of Expansion Area 5. West Side Property 6. Northwest Site – This site is bounded on the south by Patrick Street, on the north by Baxter Lane, on the east by 11th Avenue and on the west by 15th Avenue. Description Parcels described as Lots 1, 2, and 3 of Block 3, Phase 2, and Lot 6(6a), Phase 1 PT Land Subdivision located in Section 1, Township 2 South, Range 5 East. 171 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 16 Map of Expansion Area 6. Northwest Site 7. Murdoch’s Annexation Property – This site is comprised of 3.889 acres located on the north side of Murdoch’s, and addressed as 2507 and 2511 North 7th Avenue. Description: Tracts 5, 6, 9 and 10 of the Gordon Mandeville State School Subdivision, in Section 36, Township 1 South, Range 5 East. 172 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 17 Map of Expansion Area 7. Murdoch’s Annexation Property Legal Description of the Bozeman Midtown Urban Renewal District Beginning at the South ¼ corner of Section 1, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana: thence northerly along the mid section line of said Section 1 a distance of 1999. 67 feet to the southwest corner of Tract 1, C.O.S. 2082; thence easterly along the south line of said Tract 1 and the south line of Royal Vista Addition a distance of 1034.42 feet to the centerline of the alley in Block 2 of Royal Vista Addition; thence northerly along said alley centerline a distance of 646.50 feet to the north line of Royal Vista Addition; thence westerly along said north line of Royal Vista Addition and the north line of Tract 1 of C.O.S. 2082 a distance of 1095.87 feet to the northwest corner of said Tract 1; thence northerly along the centerline of N. 11th Avenue a distance of 858 feet to the intersection of the centerline of N. 11th Avenue and the centerline of Patrick Street; thence westerly along the centerline of Patrick Street to the southwest corner of Lot 6, PT Lands Subdivision Phase 1; thence northerly along the west line of said Lot 6 a distance of 1644.04 feet to the northwest corner of said Lot 6; thence northeasterly across the right-of-way of Baxter Lane and Interstate Highway 90 a distance of 491 feet more or less to the northwest corner of Tract A, C.O.S. 391A; thence easterly along the north line of said Tract A a distance of 905.89 feet to the north ¼ corner of Section 1, Township 2 South, Range 5 East; thence easterly along the north line of said Section 1 a distance of 707.03 feet; thence northerly along the west line of Flora Lane a distance of 1485.41 to a point; thence easterly across Flora Lane and along the north line of Lots 6 and Lot 9 of Gordon 173 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 18 Mandeville State School Section Subdivision a distance of 440.0 feet to the west line of N. 7th Avenue (also known as U.S. Highway 10); thence northerly along said west line of N. 7th Avenue extended to a point on the southerly right-of-way of the Burlington Northern Railroad; thence southeasterly along said railroad right-of-way a distance of 254 feet more or less to the north corner of Tract 19B, Amended Plat E-38-D, Gordon Mandeville State School Section Subdivision; thence southeasterly along said railroad right-of-way a distance of 1119.74 feet to the northeast corner of Lot 20 of Gordon Mandeville State School Section Subdivision; thence westerly along the north line of said Lot 20 a distance of 198.88 feet to the northeast corner of Lot 17 of Gordon Mandeville State School Section Subdivision; thence southerly along the east line of Lots 17 and 16 of Gordon Mandeville State School Section Subdivision a distance of 609.35 feet; thence southwesterly along the east line of said Lot 16 a distance of 82.30 feet; thence southerly along the east line of said Lot 16 a distance of 25.00 feet; thence along the south line of said Lot 16 a distance of 247.35 feet; thence southerly along the west line of Lots 28 and 27 of Gordon Mandeville State School Section Subdivision a distance of 609.35 feet to the southwest corner of said Lot 27; thence southerly across the right-of-way of West Griffin Drive a distance of 85 feet to a point on the south line of West Griffin Drive, said point being 28.14 feet west of the northeast corner of Lot 20, McChesney Industrial Park Subdivision; thence easterly along the north lines of Lots 20, 21A, and 22 of McChesney Industrial Park Subdivision a distance of 328.14 feet to the northeast corner of said Lot 22; thence southerly along the east lines of Lots 22 and 15 of McChesney Industrial Park Subdivision a distance of 707.75 feet to the southeast corner of said Lot15; thence southeasterly across the right-of-way of Nikles Drive a distance of 100 feet more or less to the northwest corner of Lot 3A of McChesney Industrial Park Subdivision; thence easterly along the north line of said Lot 3A a distance of 100 feet to the northeast corner of said Lot 3A; thence southerly along the east line of said Lot 3A a distance of 362.86 feet to the southeast corner of said Lot 3A; thence southerly across the right-of-way of Interstate Highway 90 a distance of 288 feet more or less to the north corner of Lot 1A of Minor Subdivision 109C, said point also being on the south right-of-way of Interstate Highway 90; thence southeasterly along said right-of-way a distance of 1942.55 feet to the northwest corner of Tract 2, C.O.S. 2128B; thence southerly along the west line of Tract 2, C.O.S. 2121B a distance of 372.92 feet; thence southwesterly a distance of 292.6 feet more or less to a point on the east- west mid-section line of Section 6, Township 2 South, Range 6 East, said point being 1117 feet east of the west ¼ corner of said Section 6; thence westerly along said mid-section line 1117 feet to the west ¼ corner of said Section 6; thence southerly a distance of 2663.4 feet to the southwest corner of Section 6, Township 2 South, Range 6 East, said point also being on the centerline of Peach Street; thence westerly along the centerline of Peach Street a distance of 777.35 feet to the west line of N. 5th Avenue; thence southerly along the west line of N. 5th Avenue a distance of 523.6 feet to the northeast corner of Lot 3, Block 4, Violett Addition; thence westerly along the north line of Lots 3 and 16 of Block 4, Violett Addition, a distance of 242.98 feet; thence northwesterly across the right-of-way of N. 6th Avenue a distance of 52 feet more or less to the southeast corner of Lot 2, Block 3, Violett Addition; thence westerly along the south line of said Lot 2 a distance of 117 feet to the centerline of the alley in Block 3, Violett Addition; thence southerly along said alley centerline a distance of 386 feet to the centerline of W. Villard Street; thence easterly along the centerline of W. Villard Street a distance of 253 feet; thence southerly along the extended west line of Block 6, Karps Addition a distance of 388 feet to the south line of W. Beall Street; thence easterly along the south line of W. Beall Street a distance of 27.5 feet to the northwest corner of Lot 29, Block E, Tracys 3rd Addition; thence southerly along the west 174 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 19 lines of Lots 29, 25, and 5 of Block E, Tracys 3rd Addition to the southwest corner of said Lot 5; thence southwesterly across the right-of-way of W. Lamme Street a distance of 66 feet more or less to the northeast corner of Lot 36, Block E, Tracys 2nd Addition; thence southerly along the east line of said Lot 36 to a point on the centerline of the alley in Block E, Tracys 2nd Addition; thence easterly along the centerline of the alley in Block E and Block D of Tracys 2nd Addition to the west line of N. 3rd Avenue; thence southerly along the west line of N. 3rd Avenue to the southeast corner of Lot 1, Block D, Tracys 2nd Addition; thence westerly along the south line of said Block D to the southwest corner of Lot 9 of said Block D; thence southerly across the right- of-way of W. Mendenhall Street a distance of 56 feet more or less to the northeast corner of Lot 33, Block D, Tracys 1st Addition; thence southerly along the east line of said Lot 33 140 feet to the north line of the alley in Block D, Tracys 1st Addition; thence westerly along said north line of the alley 388 feet to the west right-of-way line of N. 5th Avenue; thence southerly along the west right-of-way line of N. 5th Avenue 160 feet to the north line of W. Main Street; thence southwesterly across the right-of-way of W. Main Street a distance of 93 feet more or less to northeast corner of Lot 1, Block E, Storys Addition; thence southerly along the east line of said Lot 1 a distance of 138 feet to a point on the centerline of the alley in Block E, Storys Addition; thence westerly along said alley centerline a distance of 660 feet to the centerline of S. 7th Avenue; thence southerly along the centerline of S. 7th Avenue a distance of 168 feet to the centerline of W. Babcock Street; thence westerly along the centerline of W. Babcock Street a distance of 690 feet to the centerline of S. 9th Avenue; thence northerly along the centerline of S. 9th Avenue a distance of 321 feet to the centerline of W. Main Street; thence easterly along the centerline of W. Main Street a distance of 445 feet to the centerline of N. 8th Avenue; thence northerly along the centerline of N. 8th Avenue a distance of 1373.8 feet to the north line of W. Villard Street; thence easterly 30 feet to the southeast corner of Lot 14C, Kibbey Plaza Subdivision; thence along the following courses along the east line of Kibbey Plaza Subdivision: northerly 665.1 feet, westerly 4.0 feet, and northerly 200.03 feet to the south line of Durston Road; thence westerly along the south line of Durston Road a distance of 1052.91 feet; thence northerly 32 feet to the South ¼ corner, Section 1, Township 2 South, Range 5 East, the point of beginning. Parcels A list of parcels within the district was obtained from the Montana Department of Revenue to meet the requirements for mail notice and certification. The list of parcels included identifying geocodes and the following information. • Property owners’ names, property address and mailing addresses of all properties with geocodes for every property in the district. • All centrally assessed properties and their geocodes within the district. An estimate of the number of miles of railroad tracks. • Personal property within the district and the corresponding assessor codes • Mobile homes/manufactured homes not attached to real property within the district and their assessor codes This information is intended to help document notice requirements and assist the Montana Department of Revenue with certification. The veracity of this information, obtained from the Montana Department of Revenue, shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. 175 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 20 Chapter 3. Documentation of Blight Defining Blight As noted above, according to 7-15-4210 MCA, a municipality may only adopt a Resolution of Necessity to create an urban renewal district, if at least three conditions of blight, as defined in 7-15-4206 MCA, exist in all or part of the area under consideration. Montana law sets forth the specific conditions that constitute blight. In particular, state statute defines a blighted area as one that substantially impairs or arrests the sound development of communities, or constitutes an economic or social liability. Per 7-15-4206(2), MCA, a “blighted area” may be identified as such by reason of: (a) the substantial physical dilapidation; deterioration; defective construction, material, and arrangement; or age obsolescence of buildings or improvements, whether residential or nonresidential; (b) inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as determined by competent appraisers on the basis of an examination of the building standards of the municipality; (c) inappropriate or mixed uses of land or buildings; (d) high density of population and overcrowding; (e) defective or inadequate street layout; (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (g) excessive land coverage; (h) unsanitary or unsafe conditions; (i) deterioration of site; (j) diversity of ownership; (k) tax or special assessment delinquency exceeding the fair value of the land; (l) defective or unusual conditions of title; (m) improper subdivision or obsolete platting; (n) the existence of conditions that endanger life or property by fire or other causes; or (o) any combination of the factors listed in this subsection (2).” (Montana Laws) Blighted Conditions in the Midtown area of Bozeman Areas of blight as defined by 7-15-4206(2), MCA, exist within the Midtown area, which includes the existing North Seventh Avenue Urban Renewal District, associated with some or all of the following: • physical dilapidation, deterioration, age obsolete structures and private improvements – with respect to but not limited to such things as buildings, facades, signage, irrigation, ADA compliance, parking facilities, paving, storm drainage, life safety and landscaping; • physical dilapidation, deterioration, age obsolete quasi-public improvements – such as but not limited to overhead electric lines, gas lines, lack of or limited communication lines and services (broadband, dark fiber, etc.); • physical dilapidation, deterioration, age obsolete public structures and improvements - with respect to but not limited to such things as buildings, life safety, signage, storm drainage, lighting, parks, landscaping, irrigation, playground equipment, fencing, parking facilities, paving, fire hydrants, streets, curbs, gutters, and sidewalks; 176 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 21 • inadequate provision of ventilation, light, proper sanitary facilities, or open spaces based on the building standards of the municipality – with respect to but not limited to such things as adequate landscaped areas, green space, gathering areas, event venues, parks, use of non-permanent sanitary facilities, street lighting, bike paths, and pedestrian trails; • inappropriate or mixed uses of land or building - such as but not limited to low density or vacant lands in the urban core, industrial uses in commercial areas, vehicular focused uses in pedestrian centric areas, lack of connectivity to adjacent residential neighborhoods, and uses which are not in conformance, accordance or compliance with current plans, standards or codes; • inappropriate density of population – such as but not limited to low density or vacant lands in the urban core, and density of land which is not in conformance, accordance or compliance with current plans, standards or codes; • defective or inadequate street layout – including but not limited to dead end streets and sidewalks, incomplete streets, and lack of street lighting, lack of curb, gutter, or sidewalks; • faulty lot layout in relation to size, adequacy, accessibility, or usefulness – including but not limited to large lots which need to be subdivided to be useful, lots that are too small to be useful, poor drainage and lots with excessive or undeveloped accesses not in conformance, accordance or compliance with current plans, standards or codes; • inappropriate land coverage - including but not limited to low density or vacant lands in the urban core, and land coverage not in conformance, accordance or compliance with current plans, standards or codes • unsanitary or unsafe conditions – including but not limited to uncontrolled accesses, deteriorating improvements, barb wire fencing, inadequate storm drainage and broken sidewalks; • deterioration of site – including but not limited to broken or missing curb, gutter, sidewalks, paving, fencing, irrigation, landscaping, and signage not in conformance, accordance or compliance with a current plans, standards or codes; • diversity of ownership – including but not limited to impediments to rehabilitation from multiple owners of a single property, estate ownership, and impediments to parcel consolidation for redevelopment due to ownership; • tax or special assessment delinquency exceeding the fair value of the land • defective or unusual conditions of title – including but not limited to “no build” restrictions on remainder parcels; • improper subdivision or obsolete platting – including but not limited to remainder parcels, small lots, unsubdivided lots, and lots that are not in conformance, accordance or compliance with current plans, standards or codes; • the existence of conditions that endanger life or property by fire or other causes – including but not limited to buildings or properties that may not meet life safety standards such as fire sprinklers, fire hydrants and ADA compliance; and • any combination of the factors described above Blighted Conditions in the Original North Seventh Avenue Urban Renewal District The Statement of Blight prepared as a basis for the creation of the North Seventh Urban Renewal District in 2006 specifically identified the following conditions of blight: 177 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 22 • The defective or inadequate street layout identified within the study area; • Instances of known deterioration; • Three inadequate provisions and/or age obsolescence of the following public improvements within the study area: storm drain, streets and sidewalks; • Instances of age obsolescence of buildings within the study area; • Inappropriate or mixed uses of land or buildings; • Deterioration of site; and • Improper subdivision or obsolete platting. Blighted Conditions in the Expansion Areas The review of the areas identified for inclusion in the existing North Seventh Avenue Urban Renewal District revealed that these areas exhibited conditions of blight as defined in the Montana Urban Renewal Law. Following is a description of some of the blighted conditions that were identified in each of the areas examined. 1. and 2. Southern Boundary Areas – These areas, located between two existing urban renewal districts, the North Seventh Avenue and the Downtown Urban Renewal Districts were examined. The conditions of blight in these two areas are similar to those found inside each of these districts and their exclusion has resulted in diminished investment in parcels along this connecting corridor. More particularly, the areas exhibit a number of blighted conditions including but are not limited to the following: • Age obsolescence of buildings and improvements – Physically, these areas are suffering from deferred maintenance and deterioration of both buildings and empty spaces. Many of the structures in these areas are older and exhibit signs of deterioration. For example, the hotel pictured here was recently closed, is now vacant and building/fire code issues preclude it from re-opening. Alleys are of particular concern, especially in cases where alleys provide primary access to parking facilities. Alleys are unpaved and ungraded. • Inappropriate uses of land – Although adjacent to two key commercial districts, the areas are characterized by lower density development, which results in lower land values and less efficient use of public infrastructure and services. • Unsafe conditions – Parking lots and adjacent alleys, in some cases, have uncontrolled access. The designs of parking lots, alleyways, and driveways create blighted conditions that diminish the value of property in the area and present hazards for pedestrians. The age obsolescence of some structures and aging public infrastructure may also endanger life or property. 3. The Whittier School Remainder – A portion of the property owned by the School District was left out of the original urban renewal district. The area is directly adjacent to the Whittier School and includes the playground and the school parking lot. Conditions of blight in this area include but are not limited to: 178 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 23 • Age obsolescence – The facilities on the site are older and have been identified by the School District as in need of improvements. • Defective or inadequate street layout – The alley adjacent to the school property is unpaved. • Unsafe conditions – Deteriorating sidewalks in this area present hazards to pedestrians 4. East Side Property – This area is located to the east of the existing urban renewal district and is bounded on the north by Tamarack Street, on the south by Peach Street, on the west by 5th Avenue and on the east by 3rd Avenue. The area includes an improved BMX Park that has seen significant use and public investment in recent years. However, the overall area of the East Side Property exhibits a number of blighted conditions including but not limited to the following: • Inappropriate uses of land – The land is largely vacant and underutilized. Its value is diminished by poor access. • Defective or inadequate street layout – The area lacks adequate streets, sidewalks, curbs and gutters. • Faulty lot layout in relation to size, adequacy, accessibility, or usefulness – In addition to poor access, the site has poor drainage. • Deterioration of site/Unsafe conditions – The overall area is not maintained and there are rough areas that present hazardous conditions. 5. West Side Property – This parcel of land is bounded on the north by Oak Street, the south by Durston Road, on the east by what would be 8th Avenue and on the west by 11th Avenue, excluding Royal Vista, Royal Vista Addition, Royal Court and the west end of Birch. It directly abuts properties that front on the west side of North 7th Avenue. It is largely vacant and lacks adequate infrastructure and provides no access to areas to the west. In effect, it forms a barrier between the urban renewal district and the neighborhoods to the west. This in turn negatively affects revitalization efforts. Specific blighted conditions include but are not limited to: • Inappropriate uses of land – Although adjacent to the North 7th Avenue corridor, the area is characterized by lower density development, which results in lower land values and less efficient use of public infrastructure and services. • Defective or inadequate street layout – The area has no transportation infrastructure – North 8th Avenue 179 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 24 ceases to exist here. There are no sidewalks, curbs or gutters. • Faulty lot layout in relation to size, adequacy, accessibility, or usefulness – As noted above, there is no access to the site and the site exhibits drainage problems. • The existence of conditions that endanger life – Much of the property is fenced using barbed wire. There is no safe pedestrian access. 6. Northwest Site – This site is bounded on the south by Patrick Street, on the north by Baxter Lane, on the east by 11th Avenue and on the west by 15th Avenue. It is adjacent to several area hotels, but is largely vacant, and underutilized. Blighted conditions include but are not limited to: • Inappropriate uses of land – the area is characterized by lower density development, which results in lower land values and less efficient use of public infrastructure and services. • Defective or inadequate street layout – The road infrastructure is limited. Existing roads, including the minor arterial North 15th Avenue, “dead end” in several places resulting in poor access to much of the site. • Faulty lot layout in relation to size, adequacy, accessibility, or usefulness – The site is characterized by poor drainage, and no access to adjacent properties. Sidewalks, curbs and gutters are generally missing. • The existence of conditions that endanger – Much of the property is fenced using barbed wire. There is no safe pedestrian access. 7. Murdoch’s Annexation Property – This site is comprised of 3.889 acres located on the north side of Murdoch’s, and addressed as 2507 and 2511 North 7th Avenue. These lots were recently annexed into the City of Bozeman. This area is located between an existing urban renewal district and an existing tax increment financing industrial district. Its exclusion has made it ineligible to benefit from various urban renewal and infrastructure programs. Conditions of blight include but are not limited to: • Age obsolete structures and improvements – Physically, these areas are suffering from deferred maintenance and deterioration of both buildings and empty spaces. Many of the structures in these areas are older and exhibit signs of deterioration. • Inappropriate uses of land – These industrial uses result in lower land values and less efficient use of public infrastructure and services. • Defective or inadequate street layout – Street improvements, including but not limited to paving, curb/gutter and storm drainage facilities for North 7th Avenue, as well as for the adjacent local streets are needed. 180 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 25 Additional Findings In addition to the findings addressed in the Statements of Blight prepared for the original North Seventh Avenue Urban Renewal District and for the North Seventh Avenue Urban Renewal District Expansion Areas, the Bozeman Midtown Urban Renewal District also faces other challenges. While the conditions described below are not specifically listed in the statutory definition of blight, they do “substantially impair or arrest the sound development of communities, (and) constitute an economic or social liability”. (7-15-4206 MCA) Connectivity The lack of critical transportation infrastructure results in poor multi-modal connectivity to area neighborhoods, public facilities and other destinations. Land Use While the 2006 Urban Renewal Plan notes the importance of residential neighborhoods to the health and well-being of the entire District, the current development patterns to not support live-work opportunities. Mixed use development that meets both residential and commercial needs is generally missing within the Midtown area. The Whittier School is within the District but its potential to draw new residential development within existing neighborhoods has not been realized. Pedestrian Infrastructure The lack of pedestrian oriented transportation infrastructure makes it difficult to encourage live- work settings, where employees are unable to walk or ride bicycles to their workplace. The current design of intersections within the district presents obstacles to pedestrians attempting to cross major thoroughfares. Broadband Services Portions of Bozeman and the District lack consistent, reliable area-wide high-speed Internet services. This puts the Midtown area at a disadvantage when trying to retain and recruit businesses that are increasingly relying on electronic communication for themselves and their customers as well as requiring access to “the cloud” for data storage. Streetscape The Bozeman Midtown Urban Renewal District lacks a unifying theme. It’s role as a key entryway into the City has been diminished through the lack of adequate design features including but not limited to landscaping, lighting, and associated pedestrian amenities. 181 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 26 Chapter 4. Planning Consistency Planning Consistency Per Section 7-15-4213, MCA, prior to its approval of an urban renewal project, the local governing body shall submit the urban renewal project plan to the planning commission of the municipality for review and recommendations as to its conformity with the growth policy and the planning commission shall submit its written recommendations to the local governing body. An extensive review is found in Appendix B. The efforts of local Planning Boards to prepare land use recommendations for the Bozeman area began in 1955, when the first municipal Planning Board was formed. In April of 1958, S.R. DeBoer & Company (planning consultants from Denver, CO) prepared Bozeman’s first Master Plan. It included studies on transportation, street planning, zoning districts, parks and recreation, schools, park roads, and sanitation and health. The City made significant progress in comprehensive planning with the October 2001 adoption of the Bozeman 2020 Community Plan (2020 Plan). The 2020 Plan wholly replaced all previous comprehensive plans and complied with the new planning standards. The 2020 Plan recognized the changing nature of the economy and expanding knowledge of community development standards and consequences. The 2020 Plan also put a higher emphasis on coordinated land use and physical infrastructure planning. The Bozeman Community Plan was duly adopted as the current growth policy by the Bozeman City Commission by City of Bozeman Resolution No. 4163, dated June 1, 2009. In addition, Bozeman has completed many infrastructure and topic plans that have some influence on the area included under the Bozeman Midtown Urban Renewal District Plan. Some applicable plans are: • Design and Connectivity Plan for North Seventh Avenue Corridor. • Design Objectives Plan for Entryway Corridors. • Design Guidelines for Historic Preservation and the Neighborhood Conservation Overlay. North Seventh Avenue Urban Renewal District Plan; October, 2006 In August of 2005, the Bozeman City Commission adopted Resolution 3839, a Resolution of Necessity, and subsequently approved Ordinance 1685, on November 27, 2006, which created the North Seventh Avenue Urban Renewal District and adopted the North Seventh Avenue Urban Renewal Plan with a provision for tax increment financing, to be calculated using a base year of 2006. The following excerpts and specific statements were included in the 2006 North Seventh Avenue Urban Renewal Plan demonstrating conformance with the Bozeman 2020 Community Plan and describing the land uses and zoning in the area at that time. “Growth Policy Land Use Designations The Bozeman 2020 Community Plan designates the area along the N 7th Corridor as Neighborhood Commercial, Regional Commercial and Industrial. Some of the area east of N 182 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 27 5th Avenue between Tamarack and Oak is designated Residential and the area east along Oak Street contains Regional Commercial and Industrial designations. Zoning Classifications The District primarily consists of “B-2 Community business District” zoned parcels. East of the corridor, two large vacant parcels are zoned “R-4 Residential High Density District”, and “M-1 Light Manufacturing” zoned parcels are located on the north end of the study area Land Area The District encompasses roughly 323 acres or approximately 30 of the approximately 10,763 acres which comprised the total area of the city of Bozeman in August, 2005. Land Use The District primarily includes areas of commercial, residential, agricultural, industrial, and public uses. Commercial Activity The District includes one of the city’s oldest auto oriented commercial strips. Much of the area was developed more than fifty years ago and much has been developed or will develop largely due to the influences of transportation features, particularly North Seventh Avenue, Interstate 90 and Oak Street. These transportation corridors shape many of the elements of the District including platting of land and land use, access, traffic and circulation, and development patterns Residential Neighborhoods Well established and well kept residential neighborhoods adjoin North Seventh Avenue commercial development on both the east and west. A portion of these neighborhoods is included in the District to assure that redevelopment of the Corridor includes careful consideration of the issues associated with these established residential areas.” Review of the Bozeman Midtown Urban Renewal District Plan’s Consistency with the Bozeman Community Plan To comply with state statute, this Bozeman Midtown Urban Renewal District Plan must be reviewed by the Bozeman City Planning Board and found to be in conformance with the Bozeman Community Plan. On October 20th, 2015 the City Planning Board reviewed the Bozeman Midtown Urban Renewal District Plan as outlined in this chapter and found it to be in conformance with the growth policy as required by 7-15-4213 MCA. Growth Policy Review The Bozeman Community Plan was reviewed in order to determine whether the growth policy adequately supports the urban renewal project (per 7-15-4213 MCA). The Bozeman Community Plan has been found to include: • Goals and Objectives that support the urban renewal, economic development, and development of infrastructure that encourages urban renewal and economic development in the community. • The inclusion of tax increment financing among the strategies to be implemented to achieve the Bozeman Community Plan’s goals and objectives. • The identification of land use through maps and/or text of lands. An overall review of the goals and objectives of the growth policy indicates no conflicts for an urban renewal project with the growth policy. The following selections from the Bozeman 183 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 28 Community Plan demonstrate conformance of the Bozeman Midtown Urban Renewal District Plan to the vision, goals and objectives of the Bozeman Community Plan. Specific Goals and Objectives in the Bozeman Community Plan furthering urban renewal and economic stability for the prevention and the elimination of urban blight. Land Use Objective LU-1.4: Provide for and support infill development and redevelopment which provides additional density of use while respecting the context of the existing development which surrounds it. Respect for context does not automatically prohibit difference in scale or design. Land Use Objective LU-2.3: Encourage redevelopment and intensification, especially with mixed uses, of brownfields and underutilized property within the City consistent with the City’s adopted standards. Using this approach rehabilitate corridor based commercial uses into a pattern more supportive of the principles supported by commercial centers. Land Use Objective LU-4.4: Review and revise the City’s regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. Economic Development Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. Economic Development Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. Economic Development Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. Economic Development Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. Economic Development Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. Economic Development Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. Evaluation of the Bozeman Midtown Urban Renewal District Plan for conformance with Overall Principles and Goals of the Bozeman Community Plan. In conformance with the growth policy, the Bozeman Midtown Urban Renewal District Plan seeks to provide long term economic stability and to use planning and the development of public infrastructure as tools for well managed growth. The goals of the Bozeman Midtown Urban Renewal District as stated in the Urban Renewal District Plan are: Goal #1 Promote Economic Development Goal #2 Improve Multi-Modal Transportation Goal #3 Improve, Maintain and Support Innovation in Infrastructure Goal #4 Promote Unified, Human Scale Urban Design Goal #5 Support Compatible Urban Density Mixed Land Uses 184 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 29 Growth Policy Implementation The following selections from the Bozeman Community Plan demonstrate conformance of the Bozeman Midtown Urban Renewal District Plan to the implementation strategies and tools of the growth policy. Identified implementation tools and strategies, including tax increment financing, which help to achieve the Bozeman Community Plan’s goals and objectives. Provides a foundation for programs as well as more detailed plans, such as urban renewal district plans with tax increment financing programs. Describes the use of alternative funding mechanisms when distinct beneficiary populations or interest groups can be identified and more equitably served (such as tax increment financing). Encourages development within the City of Bozeman. Encourages infill and redevelopment. Continues programs which support adaptive reuse and reinvestment. Encourages commercial and residential development or redevelopment of identified infill areas through the use of and publicizing of incentives, such as, but not limited to, public infrastructure funding support Supports standards for infill development and redevelopment. Supports the creation and expansion of local businesses. Maintains and seeks to expand resources available through urban renewal districts. Increases awareness of existing economic and other benefits of and further develop incentives for locating and operating within City limits. Recognizes sustainability as a component of economic development. Evaluation of the conformance of the Bozeman Midtown Urban Renewal District Plan with the implementation tools and strategies in the Bozeman Community Plan. The Bozeman Midtown Urban Renewal District Plan takes advantage of the urban renewal law offered by the State of Montana Code. The Bozeman Midtown Urban Renewal District Plan provides for the opportunity to use tax increment financing to assist with redevelopment and revitalization activities, and encourage the retention and growth of economic development. The Bozeman Midtown Urban Renewal District Plan supports the development of infrastructure that encourages urban renewal and economic development in the community. Growth Policy Future Land Use The growth policy provides a visual policy statement with the identification of the future land use pattern through maps and/or text of lands to help achieve the goals and objectives of the Bozeman Community Plan. The Bozeman Community Plan designates the core area along the North 7th Avenue Corridor starting from the north end as Industrial, Regional Commercial and Services, and Community Commercial Mixed Use. The majority of the adjacent neighborhoods are designated Residential, with a couple of small areas designated Parks, Open Space and Recreational Lands and Public Institutions. 185 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 30 Future Land Use Designations of the area included in the Bozeman Midtown Urban Renewal District to help achieve the Bozeman Community Plan’s goals and objectives. The Bozeman Community Plan designates the core area along the North 7th Avenue Corridor as Regional Commercial and Services, Community Commercial Mixed Use, and Industrial. The majority of the adjacent neighborhoods have a future land use designation of Residential, with a couple of small areas designated Parks, Open Space and Recreational Lands and Public Institutions. Regional Commercial and Services will be implemented by B-2 or UMU zoning districts. Community Commercial Mixed Use will be implemented by the B-1, B-2 or UMU zoning districts. Industrial land uses can be implemented by any one of the five industrial type zoning districts. Residential will be implemented by multiple zoning districts. Parks, Open Space and Recreational Lands are functions which can occur in any zoning district. Public Institutions can be implemented by the PLI zoning district, but is a function that can occur in any zoning district. Evaluation of the Bozeman Midtown Urban Renewal District Plan for Conformance with the Future Land Use Designations. The Bozeman Midtown Urban Renewal District Plan provides a plan for redevelopment of the existing commercially designated area to retain existing and attract new economic development. The Bozeman Midtown Urban Renewal District Plan does not suggest any revision to the existing future land use designations. Review of the zoning of the area included in the Bozeman Midtown Urban Renewal District for accordance with the Bozeman Unified Development Code The City adopted its first zoning ordinance in 1941. The current zoning ordinance, the Unified Development Code of the City of Bozeman, Chapter 38 of the Bozeman Municipal Code was originally adopted in 2005, with the most recent extensive amendment by Ordinance Number 1769 effective on December 28, 2009. The zoning of the area included in the Bozeman Midtown Urban Renewal District must be found to be in conformance with the Bozeman Community Plan. On October 20th, 2015 the City Planning Board reviewed the zoning of the area included in the Bozeman Midtown Urban Renewal District as follows in this section and found the zoning to be in conformance with the growth policy. An extensive review of the zoning is found in Appendix B. The majority of the land within the area of the Bozeman Midtown Urban Renewal District is zoned “B-2 Community Business District”, with adjacent land north of I-90 zoned “M-1 Light Manufacturing”, and the adjacent land south of I-90 classified for residential uses with districts 186 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 31 including “R-3 Residential Medium Density”, “R-4 Residential High Density”, and “R-O Residential-Office”. In addition to the zoning districts listed above, portions of the Midtown area of Bozeman are also covered by “Bozeman Entryway Corridor Overlay District” and the “Neighborhood Conservation Overlay District”, and a couple of lots at the southeast edge are located within the Cooper Park Historic District. Zoning to help implement the Bozeman Community Plan. • A purpose of the Bozeman Unified Development Code is to implement the goals and objectives of the Bozeman Community Plan; the city’s adopted growth policy. • The majority of the land within the core area of the Bozeman Midtown Urban Renewal District is zoned “B-2 Community Business District” to provide for a broad range of mutually supportive retail and service functions. • The land adjacent to the commercial core and south of I-90 within the area of the Bozeman Midtown Urban Renewal District is zoned for a variety of residential uses and densities, with zoning districts including “R-3 Residential Medium Density”, “R-4 Residential High Density”, and “R-O Residential-Office”. • The land adjacent to the commercial core and north of I-90 is zoned “M-1 Light Manufacturing”. Evaluation of the Bozeman Midtown Urban Renewal District Plan for Accordance of Zoning with Bozeman Community Plan. • The Bozeman Midtown Urban Renewal District Plan supports the purposes of the Bozeman Unified Development Code. • The Bozeman Midtown Urban Renewal District Plan supports “retail and service use” as described by the Bozeman Unified Development Code. • The Bozeman Midtown Urban Renewal District Plan provides a plan for redevelopment of the existing commercially designated area to eliminate blight, and retain existing and attract new economic development. • The Bozeman Midtown Urban Renewal District Plan does not suggest any revision to the existing zoning classifications. Conclusions 1. The Bozeman Midtown Urban Renewal District Plan has been evaluated against the relevant goals and objectives of the Bozeman Community Plan, and the Bozeman Midtown Urban Renewal District Plan is in conformance with the Bozeman Community Plan. 2. The zoning in the area of the Bozeman Midtown Urban Renewal District has been evaluated against the Bozeman Community Plan, and the zoning in the area of the Bozeman Midtown Urban Renewal District is in accordance with the Bozeman Community Plan. 187 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 32 Chapter 5. Goals and Strategies Introduction This chapter presents the goals and strategies for addressing blight within the Bozeman Midtown Urban Renewal District. They are drawn from public input (public meeting summaries are found in Appendix A), the Bozeman 2009 Community Plan and other appropriate planning documents, technical input from the City’s staff, and the Statement of Blight prepared in conjunction with the expansion of the North Seventh Avenue Urban Renewal District. Public discussion addressed economic development, sustainability, mixed use higher density development, live- work opportunities, parking, multi-modal transportation infrastructure, pedestrian safety and access, and urban design. As stated above, this Urban Renewal Plan provides a context for activities that will be undertaken by a variety of public and private entities. It recommends a series of planning and program initiatives and capital projects that may be undertaken by the local government to encourage reinvestment in the district, which will in turn address conditions that have diminished the environmental, economic and cultural well being of the area over time. The following are the Goals of this Urban Renewal Plan and associated strategies. It should be noted that revolving loan programs are included as suggested strategies for achieving several of the goals set forth. The City of Bozeman may choose to create one revolving loan program that would incorporate all or some of these activities. Goal #1 Promote Economic Development Rationale: Economic vitality strengthens the community, provides for physical needs of the citizens, opens reinvestment opportunities, and helps to eliminate the conditions that contribute to blight. Planning Initiatives Engage in area and issue specific planning efforts to further retention and/or increase in the number of jobs and economic activity Prepare marketing plan that includes such things as targeted anchor businesses, marketing strategies, branding and/or wayfinding Conduct a readiness study to examine opportunities and determine challenges associated with targeted anchor business recruitment and retention, including due diligence, infrastructure deficiencies and land and/or space needs Examine the potential for the fostering of activity centers including: o Open Spaces o Event Venues o Conference Facilities o Mixed-Use Developments Examine the usefulness of potential incentives (such as application or regulatory fee mitigation, impact fee reimbursement, etc.) Consider the issuance of tax increment financing bonds, as revenues permit, in support of Program Initiatives and Capital Projects, such as electronic communication infrastructure, public activity centers, etc. 188 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 33 Continue the process of updating Bozeman's Unified Development Code to clearly communicate the community's expectations for development as expressed in the Bozeman Community Plan, and to generate implementation and design provisions for the Midtown URD Plan Program Initiatives Provide incentives for infill, mixed-use development (commercial and residential) and density increases to take advantage of economies of scale in providing services, access and sustainability Work to increase property values by encouraging private investment Develop partnerships among property owners, new/expanding businesses and the local government to increase economic activity Establish a monetary incentive such as a revolving loan program to bring existing businesses into compliance with land use codes, design standards and health and safety regulations Establish a monetary incentive such as a revolving loan program to assist property owners in repairing and replacing deteriorating, or in extending existing public infrastructure. Facilitate land assemblage and property transfer for higher density, targeted anchor businesses and mixed-use development Market to businesses that can take advantage of the link to higher education facilities, including Montana State University and Gallatin College and associated job training programs including continuing education and distance learning Market to businesses that can take advantage of locating near the broadband fiber “backbone” Establish a monetary incentive such as a matching grant program for work force training to help expand and retain businesses, such as a partnership with Bozeman Bear Continue the N7Rehab Construction Grants Program to help property owners improve their facades and sites, eligible activities include: o Demolition o Façade Improvements o ADA Accessibility Improvements o Landscaping incorporated into a public space o Sidewalks o Improvements which reduce drive accesses in width and/or number o Improvements to create shared parking arrangements o Storm water facility improvements o Improvements in the public right-of-way or within a public access easement: sidewalk construction or repair, landscaping, ADA sidewalk ramps, tree grates, installation of District lighting Continue the N7Rehab Technical Assistance Grants Program for property owners to plan updates to their sites, including: o Site Planning and Master Site Planning o Building condition assessment in conjunction with exterior renovation or reuse proposals for existing structures o Engineering and surveying services 189 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 34 o Landscape Design o Preliminary Development Review Capital Projects Ready properties for redevelopment Upgrade and expand electronic communication infrastructure including, but not limited to fiber optics. Install improvements that support marketing, wayfinding and branding, including, but not limited to signage, lighting, street furniture and landscaping Develop public activity centers such as: o Aspen, east of North 7th Avenue, as a festival street o The BMX Park Goal #2 Improve Multi-Modal Transportation Rationale: Increasing travel options supports public health, reduces resource demand, increases efficiency and reduces costs, improving the quality of life and making the community a better place to live and work, helping to eliminate conditions that contribute to blight. Planning Initiatives Assemble and evaluate existing studies of multi-modal transportation needs Engage in a service gap analysis Study means to facilitate transportation mode shift to expand non-motorized and public transit travel Consider the issuance of tax increment financing bonds, as revenues permit, in support of Program Initiatives and Capital Projects. Program Initiatives Establish a monetary incentive such as a revolving loan program to assist property owners in repairing and replacing deteriorating, or in extending existing public infrastructure. Establish a monetary incentive such as a revolving loan program to enable existing businesses to provide Federal ADA access to their establishments. Establish a monetary incentive such as a cost-share program for sidewalk construction, repair and replacement Partner with the school district and other entities to support a “Safe Routes to School” program Develop a program to facilitate transportation mode shift and to expand non-motorized and public transit travel (such as “Park and Ride” programs, ride sharing, bicycle garaging and sharing) 190 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 35 Capital Projects Construct improvements to eliminate service gaps Partner to improve multi-modal transportation infrastructure and connectivity throughout the district (such as roads, curbs, gutters and sidewalks) Construct improvements to facilitate transportation mode shift to expand non-motorized and public transit travel (such as bikeways, trails, parking facilities, high quality bus stops and public transit access) Construct non-vehicular safety improvements such as sidewalks, pedestrian crossings, high intensity activated cross walk signals and traffic calming features Goal #3 Improve, Maintain and Support Innovation in Infrastructure Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Therefore, capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight. Planning Initiatives Assemble and evaluate existing studies of infrastructure needs Engage in a service gap analysis Continue to examine the opportunities to improve communication infrastructure access through upgrades and innovation Examine parking strategies that support higher density, mixed use development Provide for planning and design assistance for improvements to public facilities within the district (such as parks, schools and local government buildings) Consider the issuance of tax increment financing bonds, as revenues permit, in support of Program Initiatives and Capital Projects, such as public parking facilities, communication infrastructure, streetscape elements, and other public infrastructure Study the efficacy of a storm water district including the potential use of community storm water facilities Support implementation of the Bozeman Fiber Master Plan and Feasibility Study, the community effort to address the broadband network, the crucial infrastructure necessary for next generation fiber-optic connectivity Program Initiatives Continue the program to improve broadband infrastructure, and facilitate public-private partnerships in support of improved broadband infrastructure Continue to support open access fiber optic networks to provide affordable broadband for the region's business community, public sector and residents, as described by the Bozeman Fiber Master Plan and Feasibility Study adopted pursuant to Resolution #4576. Develop a program to facilitate transportation mode shift and to expand non-motorized and public transit travel (such as “Park and Ride” programs, ride sharing, bicycle garaging and sharing) Establish a monetary incentive such as a revolving loan program in support of shared parking facilities among several businesses Capital Projects 191 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 36 Construct public parking infrastructure to facilitate transportation mode shift to expand non-motorized and public transit travel Improve overall communication connectivity Improve public lighting Leverage state and federal funds for streetscape improvements that include transportation, safety, landscaping and lighting elements Improve access and egress controls throughout the district Enhance public safety through specific infrastructure improvements such as sanctuary/refuge locations, underpass improvements and high intensity activated cross walk signals Support improvements to public facilities within the district (such as parks, schools and local government buildings, storm water facilities) Support infrastructure improvements to and expansion of the broadband network for next generation fiber-optic connectivity Goal #4 – Promote Unified, Human Scale Urban Design Rationale: Protecting and building upon existing physical assets increases vitality, desirability and leverages economic development, strengthening community values and mutual support helping to eliminate the conditions that contribute to blight. Planning Initiatives Develop a vision that will guide planning and design within the urban renewal district, which supports its role as a key corridor and fosters greater pedestrian orientation Design unifying themes for the urban renewal district that reflect its role as a gateway from I-90, and key corridor and link to downtown Bozeman and Montana State University, while acknowledging neighborhood characteristics Develop planning tools that address urban design elements: imageability, enclosure, human scale, transparency, complexity, coherence, legibility and linkage Evaluate land use code requirements to remove obstacles in order to create a more vibrant, human-scale streetscape and foster economic vitality Continue to develop planning tools that address streetscapes to o “Quiet down” streets through parking, traffic calming approaches, and other elements o Provide for more public landscaping and art along public rights of way o Promote private development that provides for significant landscaping o Incorporate “walkability” in design within the district o Maintain and enhance signage Street Signs Safety Signs Directional and Way-finding Signs 192 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 37 Neighborhood “branding” signs o Incorporate “complete streets” in designing transportation related infrastructure ( bike lanes, boulevards and pedestrian ways, etc.) while maintaining good traffic flow on main thoroughfares o Provide unified or neighborhood specific streetscape design elements including lighting, benches and garbage receptacles, etc. Study street medians to determine their role and design Consider the issuance of tax increment financing bonds, as revenues permit, in support of Program Initiatives and Capital Projects, such as streetscape elements, etc. Program Initiatives Provide choices to property owners for boulevard plantings, including drought tolerant plantings for sustainable water use Establish a monetary incentive such as a revolving loan program to improve “curb appeal” of existing businesses to address design standards (such as facades, landscaping and lighting) Establish a monetary incentive such as a revolving loan program to help transition from a vehicular focus (such as building orientation, parking facility placement and access points) Foster public art projects Establish a monetary incentive such as a matching grant program for the unified or neighborhood specific streetscape design elements Establish / continue a streetlight banner signage program in support of the district and events and activities in the community Work with residents, property owners and businesses to address litter and vandalism Partner with area property owners and businesses to establish a public improvements maintenance program, including, but not limited to the creation of a business or special improvement district (for such things as sidewalk snow removal, landscaping maintenance, litter and garbage removal and streetlight banner installations) Capital Projects Eliminate blighted conditions at the edges and entryways to the urban renewal district and its distinct neighborhoods Improve the North 7th Avenue corridor, both visually and physically Use signage and infrastructure improvements to enable way-finding and to better brand the area Continue the Lighting, Gateway and related Sidewalk Improvements Project - the installation of new architectural street lights, gateway improvements and related sidewalk with boulevard improvements along the corridor to enhance pedestrian safety and to make the neighborhood more pedestrian friendly Continue the Median and Boulevard Landscaping Project Goal #5 Support Compatible Urban Density Mixed Land Uses Rationale: A sense of place is strengthened by a strong core identity. Increasing live-work opportunities and community interaction, ensures that the North 7th Avenue area remains a great 193 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 38 place to live, work, operate a business, and play, and helps to eliminate conditions that contribute to blight. Planning Initiatives Assess the need for a variety of housing types, including, but not limited to co-op, transitional, senior, and special needs Study opportunities for “live-work” and mixed commercial residential development Study strategies to expand affordable housing opportunities for all populations Evaluate land use code requirements (such as building height restrictions, parking requirements and signage restrictions), to remove obstacles in order to increase density, support mixed-use development and foster economic vitality Consider the issuance of tax increment financing bonds, as revenues permit, in support of Program Initiatives and Capital Projects, such as redevelopment projects, affordable housing, etc. Program Initiatives Promote mixed use or activity centers to take advantage of economies of scale in providing services, access and sustainability Promote public-private partnerships to create urban density mixed land use Provide incentives in the land use code requirements to foster residential development in the Whittier School attendance area to take advantage of this neighborhood school Provide incentives in the land use codes requirements to foster upper story residential development Establish a monetary incentive such as a revolving loan program in support of rehabilitation of residential and commercial properties that increases density Establish a monetary incentive such as a revolving loan program that supports the rehabilitation of residential and commercial properties that increases the number of housing units and live-work opportunities Establish a monetary incentive such as a revolving loan program that supports sustainable approaches to such things as water use, energy conservation and storm water mitigation Consider establishing a monetary support program (revolving loan, matching grant, grant) for the development or acquisition of parks or recreational areas to serve the district; and to meet park or open space requirements Capital Projects Support the development or acquisition of parks or recreational areas to serve the district Per 7-15-4233, MCA, as opportunities present themselves, improve, clear, or prepare for redevelopment any real or personal property in the urban renewal area that increases density, increases employment and/or that expands mixed use opportunities 194 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 39 Chapter 6. Project Evaluation Criteria Chapter 7 of this Plan provides a list of potential funding sources, including Tax Increment Financing (TIF), that can be used in funding urban renewal projects and programs. However, given the myriad of urban renewal activities that could potentially occur within the Bozeman Midtown Urban Renewal District, it will be necessary to review each proposed project or program with respect to the Plan’s guiding principles, initially introduced in Chapter 1, as well as identified goals and strategies found in Chapter 5. Guiding Principles This Urban Renewal Plan is a reflection of sound public policy and thoughtful planning. To this end the following principles will guide revitalization and redevelopment efforts in the URD. Readiness – The renewal of the Bozeman Midtown URD will occur in stages, as resources and opportunities become available. In some cases, specific projects will occur in support of private investment that would otherwise not occur without a corresponding investment in public infrastructure. Also, new program initiatives or funding opportunities may present themselves from time to time, which can help bring certain urban renewal projects forward. Leveraging – Projects that make use of a variety of public and private resources including state and federal grants, loans and specialized tax credits, as well as tax increment funds are encouraged. Design – Midtown serves as a significant entryway into the City of Bozeman. North 7th Avenue, which is the primary thoroughfare within the district, connects Interstate 90 with Main Street and Downtown Bozeman, and with Montana State University. While the area is characterized by a mix of commercial uses, it is also serves to welcome visitors and students to the community. Therefore, urban renewal projects should be designed to complement this important role. Thoughtful, well-designed development that enhances the role of Midtown as a key gateway will, in turn, draw additional investment over time. Public-Private Partnerships – The successful redevelopment of the Midtown URD will depend on cooperation between the public and private sectors. As noted above, significant private investment will likely require associated public financing of municipal and quasi-public improvements, such as multi-modal transportation facilities, sewer and water improvements, utilities and communication infrastructure. Funding sources for capital projects will include, but not be limited to Tax Increment Financing (TIF). Specific projects will be undertaken in accordance with the Montana Urban Renewal Law, 7-15-42 and 7-15-43, MCA. In addition, the Montana Urban Renewal Law provides for creation of revolving loan programs, funded by TIF, in support of projects that may involve non-governmental entities, if provided for in the urban renewal plan. (7-15-4292 MCA) The City of Bozeman intends to make use of a revolving loan fund in forging public-private partnerships. 195 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 40 Criteria Description Based on these guiding principles, the following twelve criteria will be used in evaluating projects and programs and in setting priorities, in the context of limited financial resources. These criteria are listed in no particular order or ranking of importance. Criteria. Project design and readiness (phasing potential) – Is the project ready to go forward? For example, are any necessary permits in place? Has due diligence been completed? Does the project lend itself to phasing or segmentation that enables portions of the project to stand alone? Criteria. Leverage ratios of public to private funds invested – Are urban renewal dollars leveraging private investment? For example, does the installation of public infrastructure correspond to growth in business and/or residential development? Or what is the percent of public dollars invested in the infrastructure as compared to private dollars? Criteria. Health and safety concerns – Does the project address a condition of blight that endangers the “health, safety….and welfare” of the residents? Does it improve fire and life safety requirements? Does it reduce emergency response time? Criteria. Opportunity to take advantage of new initiatives and funding sources – Does the project or program enable the City to take advantage of a new initiative or funding source that can be matched or leveraged by urban renewal dollars and/or private investment? Criteria. Critical infrastructure and/or connectivity needs – Does the project enable better connectivity within the urban renewal district and/or between the urban renewal district and the community? For example projects that support improved multi-modal transportation or better access to the community telecommunications network might be given greater priority. Criteria. Opportunity to support mixed-use developments including residential – Does the project or program provide for mixed-uses, and per Goal #5, increase live-work opportunities and community interaction? Criteria. Opportunity to better use land through the development of vacant and/or underutilized space – Does the project make use of vacant land within the district, thereby improving connectivity and increasing density of use? Criteria. Job creation – Does the program or project create new employment opportunities and/or opportunities for workforce training? Projects which create more jobs per public funds invested will be more desirable. There may also be opportunities to partner with businesses, organizations and educational entities to provide vocational and professional training. Criteria. Resulting increase in taxable value – Projects that improve the overall property tax base within the district increase the amount of tax increment dollars available for urban 196 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 41 renewal activities. Over the long term, improving the tax base can assure continued economic health within the urban renewal district and the community well into the future. Criteria. Ability of project to enhance Midtown’s role as a key gateway and link to the Downtown and Montana State University – Does the project support the role of Midtown as an important connection from Interstate 90 to Downtown and to the University? Criteria. Consistency with adopted plans including the Bozeman Midtown Urban Renewal Plan – Does the project reflect the vision, goals and objectives set forth in the Bozeman Community Plan and other adopted plans? Criteria. Sustainability, one-time infusion of funds versus on-going need for funding – Will the project require on-going support to be sustainable? Are other, longer-term funding strategies considered in project planning? How The Criteria are Used The extent to which these criteria are applied will depend on the specific project or program being considered. They are intended to provide a decision making framework to set priorities. In most cases, only some of the criteria would apply for a specific project or program. For instance, some projects might rank higher with respect to job creation, while others may result in greater private investment. Public investment in infrastructure to improve connectivity may or may not result in an increase in taxable value. Through the process of preparing annual work plans, more specificity may be assigned to some or all of the criteria, based on changing community and district priorities. Given the wide range of potential activities, the criteria will be particularly effective in evaluating similar project proposals, such as multiple proposals to install public infrastructure, or in reviewing applications for grants and loans. The criteria can also be used to develop more specific guidelines for grant and loan program established under this plan. The criteria become particularly important as the Urban Renewal Board makes recommendations to the City Commission regarding the funding of projects and programs during the budget approval process. Demonstrating how each proposed activity meets the criteria will assist the Commission in evaluating its appropriateness with respect to the goals and objectives of the urban renewal plan as well as of the community as a whole. 197 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 42 Chapter 7. Implementation The Bozeman Midtown Urban Renewal District Plan provides a framework for the rehabilitation and redevelopment of the Urban Renewal District. Upon its adoption, this Plan will serve as the official policy guide for public action. However, these policies can only be transformed to action through an effective implementation program. Key to implementation will be sound processes of administration, financing and program evaluation. Administration Under 7-15-4231 MCA, the exercise of powers related to urban renewal, a municipality may itself exercise its urban renewal project powers, or may, “if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency created under 7-15-4232 MCA, or a department or other officers of the municipality as they are authorized to exercise under this part and part 43.” The City of Bozeman may establish an urban renewal agency under this provision to direct the projects and programs outlined in the Urban Renewal Plan. As provided in the statute, the City Commission would appoint five members to the agency’s board, who would be responsible for developing and implementing programs. Since 2006, the City of Bozeman has chosen to exercise its urban renewal project powers directly, rather than establish a separate urban renewal agency. The City Commission has created an urban renewal district board to serve in an advisory capacity to the Commission in planning for, implementing and administering a program of rehabilitation and revitalization for the District. The board provides opportunities for stakeholders in the District, including property owners, business owners, residents and school district representatives to participate in formulating urban renewal projects and programs. The annual work program and budget, listing the activities and costs of the activities for the coming fiscal year, as well as the method of financing those activities are prepared by the urban renewal board and reviewed and approved by the City Commission. This program and budget can be amended during the course of the fiscal year in light of funding and program opportunities and changes. Urban renewal activities undertaken must be in accordance with Montana State statute. (The specific provisions of 7-15-4233 MCA are below.) 7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1) In the event the local governing body makes such determination, such body may authorize the urban renewal agency or department or other officers of the municipality to exercise any of the following urban renewal project powers: (a) to formulate and coordinate a workable program as specified in 7-15-4209; (b) to prepare Urban Renewal Plans; (c) to prepare recommended modifications to an urban renewal project plan; (d) to undertake and carry out urban renewal projects as required by the local governing body; (e) to make and execute contracts as specified in 7-15-4251, 7-15-4254, 7-15-4255, and 7-15-4281, with the exception of contracts for the purchase or sale of real or personal property; (f) to disseminate blight clearance and urban renewal information; (g) to exercise the powers prescribed by 7-15-4255, except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages shall be reserved to the local governing body; (h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7-15-4257; (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area; 198 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 43 (j) to insure real or personal property as provided in 7-15-4258; (k) to effectuate the plans provided for in 7-15-4254; (l) to prepare plans for the relocation of families displaced from an urban renewal area and to coordinate public and private agencies in such relocation; (m) to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements; (n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of urban renewal projects; (o) to negotiate for the acquisition of land; (p) to study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto; (q) to organize, coordinate, and direct the administration of the provisions of this part and part 43; (r) to perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and performance of the duties and responsibilities entrusted to the local governing body. (2) Any powers granted in this part or part 43 that are not included in subsection (1) as powers of the urban renewal agency or a department or other officers of a municipality in lieu thereof may only be exercised by the local governing body or other officers, boards, and commissions as provided under existing law. Projects and Programs The City of Bozeman will implement programs and evaluate projects based on the guiding principles and goals of this Urban Renewal Plan. Given that private development will be necessary to generate tax increment funds, business development must occur hand in hand with other community based revitalization activities. The Bozeman Midtown urban renewal program will make use of a variety of financing in achieving the goals of this plan, including: Public Investments • Annual Tax Increment Appropriations – The City of Bozeman may finance smaller public infrastructure improvements and renewal programs from its annual tax increment receipts by appropriation. Funds available each year would be determined by the size of the annual increment and any prior commitments (such as bond debt service requirements and administrative costs). • Tax Increment Bonds – The City of Bozeman will issue tax increment financing (TIF) revenue bonds if necessary, as revenues allow, to finance major capital projects. TIF bonds will enable the local government to finance projects up-front and then retire the debt through annual tax increment receipts. • Other Debt Financing – The City of Bozeman may borrow funds through local, state and federal loan programs in order to finance public improvements. Annual tax increment revenues may be used to make principal and interest payments • Local, State and Federal Funding Mechanisms – There are a number of funding resources available to communities to undertake planning and capital improvement projects. These are listed in the funding section below. Private Sector Development In addition to public sector investments, the urban renewal program can assist property and business owners in specific renewal activities including the following: 199 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 44 • Tax Increment Financing Revolving Loans – In 7-15-4292, MCA, the Montana TIF statute provides for the establishment of loan programs, whereby TIF funds may be used to support public and private urban renewal projects in support of the goals of the Urban Renewal District. As principal and interest payments are made, the funds may be loaned again, even after the TIF District sunsets. The management of a revolving loan program may be undertaken directly by the City, or through a contract with another entity. • Tax Increment Grants – In some cases urban renewal agencies can make grants to private entities to support projects that are in the community’s best interest, and are in keeping with the purposes of the Montana Urban Renewal Law, such as historic preservation, public safety, landscaping and the removal of blight. Examples include: o Restoration of historic building facades o Stabilization of structures that have been neglected or abandoned o Installation of life safety equipment such as sprinkler systems o Installment of landscaping, lighting and other design features that support a unifying theme for the District • Other Assistance – The urban renewal program can assist private sector projects in a variety of ways, by providing technical assistance and helping property owners access federal, state and local resources and incentives for development. Partnership Development The urban renewal program will rely on cooperative efforts among the local government and the urban renewal board, district property owners, and economic development organizations to achieve its goal of fostering revitalization. In many cases, these cooperative partners will work jointly on market analyses, business recruitment and capital improvements planning. Also, as noted above, it will be necessary to work with other local, state and federal entities in providing additional financing and matching funds to undertake projects and programs in the Bozeman Midtown Urban Renewal District. Potential partnerships can be forged using a variety of programs and funding mechanisms. A sampling of these is provided in the following section. Financing Tax Increment Financing As noted above, the implementation of the Bozeman Midtown Urban Renewal Plan will include the use of Tax Increment Financing (TIF). More particularly, costs that may be paid using TIF dollars are included in 7-15-4288, MCA as follows: 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the municipality to pay the following costs of or incurred in connection with an urban renewal project, industrial infrastructure development project, technology infrastructure development project, or aerospace transportation and technology infrastructure development project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, 200 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 45 sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports for reusable launch vehicles with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; (5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233; (6) acquisition of infrastructure-deficient areas or portions of areas; (7) administrative costs associated with the management of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district; (8) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (9) the compilation and analysis of pertinent information required to adequately determine the needs of an urban renewal project in an urban renewal area, the infrastructure needs of secondary, value-adding industries in the industrial district, the needs of a technology infrastructure development project in the technology district, or the needs of an aerospace transportation and technology infrastructure development project in the aerospace transportation and technology district; (10) the connection of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district to existing infrastructure outside the district; (11) the provision of direct assistance, through industrial infrastructure development projects, technology infrastructure development projects, or aerospace transportation and technology infrastructure development projects, to secondary, value-adding industries to assist in meeting their infrastructure and land needs within the district; and (12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. A tax increment program is authorized for 15 years or longer if the tax increment revenue is pledged to the payment of tax increment bonds. 7-15-4289, MCA provides for the use of tax increments for bond payments. The tax increment may be pledged to the payment of the principal of premiums, if any, and interest on bonds, which the municipality may issue for the purpose of providing funds to pay such costs. The City of Bozeman will use Tax Increment Financing in the Bozeman Midtown Urban Renewal District as defined in this Urban Renewal Plan. The base year for the purposes of measuring any incremental value within the original district boundaries will continue to be 2006, while the base year for the expanded portions of the district will be 2015. Per 7-15-4291, MCA, the City of Bozeman may enter into agreements with the other affected taxing bodies to remit to such taxing bodies any portion of the annual tax increment not currently required for the payment of the costs listed in 7-15-4288, MCA or pledged to the payment of the principal of premiums, if any, and interest on bonds. Other Financing Mechanisms There are a number of financial assistance programs that can be used in the revitalization of the Bozeman Midtown Renewal District in addition to Tax Increment Financing. Financing strategies for addressing urban renewal needs identified in this Plan will likely include combining various funding sources. For example, a local special improvement district might be used in combination with a Montana Board of Investment Intercap loan to match federal or state dollars. The following is a summary of programs available to fund urban renewal projects: 201 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 46 Transportation Infrastructure This section describes funds and funding sources that are available to finance urban renewal transportation related projects. These funding methods, such as local option taxes, improvement districts and other types of bonds, enable local citizens to participate in funding projects. In general, however, the ability to use additional property tax levies to fund urban renewal is governed by Montana Statute under 15-10-402 MCA that limits taxes to 1996 levels. A. Bridge and Road Mills (Property Taxes) Montana law provides for cities (7-14-4101, MCA) to manage transportation infrastructure. Counties are specifically responsible for all the bridges in a county, including those within cities and towns, except those managed by the Montana Department of Transportation. Municipalities may establish a road fund under 7-14-4113 MCA. B. Transportation Improvement Authority Established under 7-14-1001, MCA, the purpose of a transportation improvement authority is to blend the interests of local, state, and federal governments with the interests of the general public and the business community to build, modify, or improve transportation facilities and systems within its jurisdiction. A county and a municipality within a county may, by joint resolution, create a transportation improvement authority. The Authority may enter into contracts and accept local, state, federal and private funds to undertake transportation projects. C. Transportation Alternatives Program (TA Program), Montana Department of Transportation The Transportation Alternatives (TA) Program authorized under Section 1122 of the Federal Highway Administration’s Moving Ahead for Progress program -MAP-21 (23 U.S.C. 213(b), 101(a)(29)), replaces the former Community Transportation Enhancement Program. It provides approximately $4 million annually to eligible entities including local governments, for activities defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities, and environmental mitigation; recreational trail program projects; safe routes to school projects; and projects for the planning, design or construction of boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways. D. State Fuel Tax Under 15-70-101, MCA, Montana assesses a tax on gasoline and diesel fuel used for transportation purposes. Each municipality receives a portion of the total tax funds allocated to cities and Towns based on: 1) The ratio of the population within each municipality to the total population in all cities and Towns in the State; 2) The ratio of the street mileage within each municipality to the total street mileage in all incorporated cities and towns in the State. The street mileage is exclusive of the Interstate, National Highway, and Primary Systems. All fuel tax funds allocated to local governments must be used for the construction, reconstruction, maintenance, and repair of rural roads or city streets and alleys. Priorities for the use of these funds are established by the cities receiving them. 202 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 47 Debt Financing – All Types of Projects Local governments can make use of various kinds of debt financing to fund urban renewal projects. In addition to Tax Increment Financing Bonds discussed above, these include revenue bonds, special improvement district bonds and general obligation bonds. Debt financing enables local governments to finance major infrastructure projects using future revenue from special assessments, user fees, and other forms of revenue. Under 7-7-4101, MCA, a local government has power to incur indebtedness by borrowing money, issuing bonds, issuing notes, entering into leases, entering into lease-purchase agreements, or entering into installment purchase contracts for the following purposes: 1) acquiring land for and designing and erecting public buildings; 2) acquiring land for and designing and constructing sewers, sewage treatment and disposal plants, waterworks, reservoirs, reservoir sites, and lighting plants; 3) supplying the municipality with water by contract and the construction or purchase of canals or ditches and water rights for supplying municipality with water; 4) designing and constructing bridges, docks, wharves, breakwaters, piers, jetties, and moles; 5) acquiring, opening, or widening any street and improving the street by constructing, reconstructing, and repairing pavement, gutters, curbs, and vehicle parking strips and to pay all or any portion of the cost relating to the project; 6) purchasing or leasing fire apparatus, street and other equipment, and personal property, including without limitation, vehicles, telephone systems, and photocopy and office equipment, including computer hardware and software; 7) building, purchasing, designing, constructing, and maintaining devices intended to protect the safety of the public from open ditches carrying irrigation or other water; 8) funding outstanding warrants and maturing bonds; and 9) repaying tax protests lost by the local government or other municipal corporation. The local government incurs various administrative costs in conjunction with issuing bonds. These costs include the retention of legal counsel and financial consultants, the establishment of reserve funds and the preparation of the prospectus and various required documents. These bonds provide tax-free interest earnings to purchasers and are therefore subject to detailed scrutiny under both state and federal law. The citations in the Montana Code are listed below, for each type of bond described. A. Special Improvement Districts Under 7-12-4101, and 7-12-4102 MCA, cities and towns can create special improvement districts for a number of activities including: • The acquisition, construction or reconstruction of public streets and roads • The acquisition, construction or reconstruction of sidewalks, culverts, bridges, gutters, curbs, steps and parks including the planting of trees • The construction or reconstruction of sewers, ditches, drains, conduits, and channels for sanitary or drainage purposes, with outlets, cesspools, manholes, catch basins, flush tanks, septic tanks, connecting sewers, ditches, drains, conduits, channels, and other appurtenances • The construction of sewer and water systems including fire hydrants 203 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 48 • The acquisition and improvement of land to be designated as public park or open-space land • The conversion of overhead utilities to underground locations in accordance with 69-4-311 through 69-4-314, MCA • The purchase, installation, maintenance, and management of alternative energy production facilities B. Business Improvement District Business Improvement Districts (BIDs) are authorized under 7-12-1101 et. seq MCA. This provision of the law allows the local governing body to assess properties, upon the request of property owners within a district to fund the following activities: • provide special police, maintenance, or cleaning personnel for the protection and enjoyment of the general public using the business district • landscape and beautify public areas and to maintain those areas • contract with the governing body to maintain, operate, or repair public parking facilities • contract with the governing body to maintain streets, alleys, malls, bridges, ramps, tunnels, landscaping, and other public facilities as mutually agreed upon • promote private investment and business expansion in the district • provide for the management and administration of the affairs of the district • promote business activity by advertising, decorating, marketing, and promoting and managing events and other actions designed for the general promotion of business activities in the district • perform such other functions as are necessary to carry out the purposes of this part and to further the objectives of the district. C. General Obligation Bonds General obligation bonds are backed by the full faith and credit of the local government and must be approved by the voters in an election. General obligation bonds are generally payable from ad valorem taxes (based on the value of property) and expressed in mills. General obligation bonds are attractive to bond buyers because they have voter approval and are not as vulnerable to fluctuations in revenue. Municipalities are assigned a bond debt limit based on a percentage of taxable valuation. General obligation bonds must fall within this limit. D. Municipal Revenue Bonds Under 7-7-4401, MCA, a municipality may issue revenue bonds to finance any project or activity authorized NOTE: Pursuant to 7-15-4218, MCA, voter approval of urban renewal plan required when general obligation bonds to be used. If the plan or any subsequent modification thereof involves financing by the issuance of general obligation bonds of the municipality as authorized in 7-15- 4302(1) or the financing of water or sewer improvements by the issuance of revenue bonds under the provisions of part 44 of chapter 7 or of part 43 of chapter 13, the question of approving the plan and issuing such bonds shall be submitted to a vote of the qualified electors of such municipality, in accordance with the provisions governing municipal general obligation bonds 204 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 49 under chapter 7, part 42, at the same election and shall be approved by a majority of those qualified electors voting on such question. Railroad Crossing Related Programs A. Federal Surface Transportation Program - Rail/Highway Crossing Protective Devices Program The purpose of the Federal Rail/Highway Crossing – Protective Devices Program is to identify high hazard rail crossing sites and install new rail crossing signals. MDT's Rail - Highway Safety manager is responsible for surveying, identifying and prioritizing those railroad crossings that require new protective devices or upgrading of existing devices. The funds are distributed on a statewide basis determined by a priority list ranked by a hazard index. The Federal/State ratio is 90% Federal and 10% State. B. Federal Surface Transportation Program - Rail/Highway Crossing Elimination of Hazard Program The purpose of the Federal Rail/Highway Crossing – Elimination of Hazard Program is to identify high hazard rail crossing sites and construct new rail/highway grade crossings. The program also uses funds to rehabilitate existing grade separations. Grade separation projects are funded with 90% Federal funds and 10% State funds. Since funding for this program is limited, funds are often used in combination with other Federal funding sources to fund costly grade separation projects. Eligible expenditures include the separation or protection at grade crossings, reconstruction of existing crossings and relocation of highways to eliminate crossings. Projects for this program are selected by identifying those sites where only a grade separation will eliminate an identified hazard or where an existing grade separation exists but needs rehabilitation or replacement. Funding for Public Improvements (Sewer, Water, Roads, Community Facilities, Parks) A. Treasure State Endowment Program ~ Montana Department of Commerce The Montana Treasure State Endowment Program (TSEP) is a state-funded program, authorized under 90-6-701 through 710, MCA, and is administered by the Montana Department of Commerce (MDOC). It is designed to assist local governments in financing capital improvements to sewer and water facilities. Funds are derived from the Montana coal severance tax and made available to local governments as matching grants, loans and grant/loan combinations. TSEP also provides matching grants of up to $15,000 to local governments for preliminary engineering study costs. TSEP funds may not be used for annual operation and maintenance; the purchase of non- permanent furnishings; or for refinancing existing debt, except when required in conjunction with the financing of a new TSEP project. Grant requests cannot exceed $500,000 and the local government must typically provide a dollar for dollar match that can include other grant funds. Matching funds can be public or private funds provided by a TSEP applicant to directly support the cost of eligible project activities. There are a number of ways in which local governments can provide matching funds for bridge projects. Eligible types of matching funds include: • local general funds or other cash; • proceeds from the sale of general obligation, revenue, special assessment or other bonds; 205 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 50 • entitlement or formula-based federal or state funds such as federal highway funds or payments in lieu of taxes; • loan or grant funds from a state or federal program (including TSEP loans); • funds expended for engineering studies, reports, and plans, or other reasonable expenses expended for the preparation of the application, directly related to the project during the period 24 months prior to the TSEP application deadline; • funds expended after the TSEP application deadline, but before being approved by the Legislature, for project management, final engineering design, and other reasonable expenses necessary to prepare the project as in the TSEP application for the construction phase; • the value of land or materials provided by the applicant, if appraised within a two-year period preceding the application deadline. The appraisal must be: • an impartially written statement that adequately describes the land or materials, and states an opinion of defined value as of a specific date; • supported by an analysis of relevant market information; and • prepared by a qualified appraiser independent from the applicant. • the value of labor performed by the applicant’s employees on the project, after the TSEP project has been approved for funding and a TSEP contract has been signed, as long as the employee is paid at his or her standard hourly rate of pay and the time worked is adequately documented; and • the value of machinery used in the process of constructing the project that is owned (or leased) and operated by the applicant. The value of the use of the machinery will be determined using the Federal Emergency Management Agency (FEMA) equipment rate schedules. B. The Montana Intercap Program ~ Montana Board of Investments The INTERCAP Program is a low cost, variable-rate program that lends money to Montana local governments, state agencies and the university system for the purpose of financing or refinancing the acquisition and installation of equipment or personal and real property and infrastructure improvements. The Board of Investments issues tax-exempt bonds and loans the proceeds to eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim financing. Funding is always available with no specific cycle. Allocations of $200,000 and under are considered and approved by the Board of Investments staff. Allocations in excess of $200,000 are considered and approved by the Board. Funds are released on an on-going basis as the project is completed. The program provides loans at a variable rate plus a one percent loan origination fee on loans over one year and for a term of 5 or 10 years depending on the borrower's legal authority. Short-term loans of less than a year are also available. Interest and principal payments are due bi-annually (February 15 and August 15 of each year). Loans may be pre-paid without penalty with 30 days notice. Types of financing include installment purchase loans, general fund loans, general obligation bonds, revenue bonds and special improvement district and rural improvement district bonds. Gas tax revenues may not be used to service debt. Projects that will use rural improvement district payments to cover the annual debt are limited to a total loan of $300,000. Intercap funds may be used in association with other grant and loan programs as well as local sources. 206 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 51 C. Community Development Block Grant (CDBG The Community Development Block Grant (CDBG) Program is a federally funded grant program that provides assistance to communities with community development needs such as housing, public facilities, economic development and planning grants. All projects must be designed to principally benefit low and moderate-income families. The program was established by the Federal Housing and Community Development Act of 1974 (42 USC 5301) and is administered nationally by the U.S. Department of Housing and Urban Development (HUD). The Legislature authorized the Montana Department of Commerce (MDOC) to administer the program beginning in 1982. Eligible activities include planning, public facilities construction, housing and neighborhood renewal and economic development. D. Public Works Program ~ Economic Development Administration The Economic Development Administration (EDA) is an agency within the U.S. Department of Commerce. The purpose of the Public Works Program is to assist communities with the funding of public works and development facilities that contribute to the creation or retention of private sector jobs and to the alleviation of unemployment and underemployment. Such assistance is designed to help communities achieve lasting improvement by stabilizing and diversifying local economies, and improving local living conditions and the economic environment of the area. Grants are awarded up to a participation level of 80 percent but the average EDA grant covers approximately 50 percent of project costs. Acceptable sources of match include cash, local general obligation or revenue bonds; Community Development Block Grants, TSEP grants and loans, entitlement funds, Rural Development loans; and other public and private financing, including donations. Projects must result in private sector job and business development in order to be considered for funding. Eligible applicants under this program include any state, or political subdivision thereof, Indian tribe (and other U.S. political entities), private or public nonprofit organization or association representing any redevelopment area if the project is within an EDA-designated redevelopment area. Redevelopment areas, other than those designated under the Public Works Impact Program must have a current EDA-approved Overall Economic Development Program (OEDP) in place. E. Water, Wastewater and Solid Waste Action Coordinating Team In 1982, a group of professionals from state, federal, and non-profit organizations that finance, regulate, or provide technical assistance for community water and wastewater systems, decided to start meeting in order to coordinate and enhance their efforts. This group calls itself the "Water, Wastewater and Solid Waste Action Coordinating Team" or W2ASACT for short. W2ASACT meets several times a year to find ways to improve our state's environmental infrastructure. All of the programs represented in W2ASACT have different missions and meet unique needs. However, it has been the common elements shared by the funding programs that have been the driving force of W2ASACT. These programs provide money (grants or loans), take applications from communities to fund their projects, and administer those monies once the project is funded. While W2ASACT cannot change all of the state or federal requirements, it can identify unnecessary duplication of requirements that make compliance difficult for communities. 207 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 52 Voluntary Programs In some cases, homeowner associations, business groups or other property owners may finance urban renewal projects voluntary basis. Bozeman Midtown Urban Renewal Program Evaluation and Plan Amendments This Urban Renewal Plan will be evaluated on a yearly basis in conjunction with the preparation of the annual report. Measures that may be used in evaluating program success include: Increases in the property tax base Creation of jobs within the Bozeman Midtown Urban Renewal District Elimination of blighted conditions The plan provides flexibility to accommodate a variety of approaches. However, changes over time may necessitate more formal amendments to the Urban Renewal Plan. The Urban Renewal Plan may be modified by ordinance under 7-15-4221 MCA. 208 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 53 Appendix A. Public Meetings Summaries North Seventh Urban Renewal Board Meeting August 6, 2015 Summary Notes on Midtown Expansion Statement of Blight Attendees: Board Members Andrew Cetraro Susan Fraser Tracy Menuez Austin Rector Carl Solvie Carson Taylor Board Members Absent Scott Hedglin Kevin Cook Bill Fogarty Esther Schwier Staff David Fine Allyson Brekke Tom Rogers Brit Fontenot Consultants Lanette Windemaker Public Attendees Steve Johnson, School Superintendent This is the Statement of Blight on the 7 areas that we were directed to review. It will be going to the City Commission on August 24 as an attachment to the Resolution of Necessity. Our review of the areas for possible expansion documents the conditions in these areas, generally finding them to be eligible for inclusion in the District, for reasons which include. • The presence of obsolete buildings and aging public infrastructure • Deteriorating or lack of sidewalks creating unsafe conditions for pedestrians • Dead-end, incomplete or unconnected streets • Vacant, neglected empty spaces within the urban core of Bozeman • Faulty lot layout, characterized by poor drainage and/or excessive or undeveloped access Andrew – we need to be sure that the focus continues to be N7th and existing businesses, and doesn’t shift to the grass (open undeveloped) areas. Carl – we should be able to promote development as well as focus on redevelopment Andrew – Convention center is probably not a focus. Carl – agrees with the N7th focus. Carson – Murdoch’s is an obvious addition because it is on N7th, and 1 and 2 at the south end as well. They allow a continuation of Main Street to N7th. Lanette – there will be in the new plan a chapter that addresses criteria for ranking, and given the original premise for this URD, redevelopment along N7th will probably always ranking higher that new development of the grass areas. Dave – will the school board support the inclusion of the rest of Whittier. Steve Johnson – agrees with the premise on Murdoch’s, but of other areas are going to develop anyway, why not let the school district benefit from the taxes. Would like the URD board to consider supporting enhancement to Whittier. Dave – I see support Whittier as incentivizing residential in the area. Lanette – Based on previous input support for Whittier will be included in the plan. 209 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 54 It was the Unanimous Recommendation of the Board to Support the 7 Areas of Expansion. Summary Notes North Seventh Urban Renewal Board Meeting on North Seventh Avenue (Midtown) Urban Renewal Plan/District Expansion July 14th, 2015 Attendees: Board Members Scott Hedglin, Chair – voting Andrew Cetraro – voting Kevin Cook Carl Solvie – voting Austin Rector Carson Taylor – City Commission Liason Susan Fraser – voting Esther Schwier Absent: Bill Fogerty - voting Staff David Fine Allyson Brekke Tom Rogers Brit Fontenot Consultants Janet Cornish Lanette Windemaker Tony Becken-Gaddo, Dowl – Easement Acquisition on North 7th Public Attendees Gary Lusin, School Board Trustee Rob Watson, School Superintendent Cyndy Andrus, City Commission Eric Garberg, Planning Board Chair Kyle Scarr, TD&H Input on Expansion: Include all areas as previously decided, plus the remainder of the Whittier School property and the area just north of Murdock’s (pending annexation). Input on Urban Renewal Plan: Increase the tools available for urban renewal activities including: • Public-Private Partnerships • Revolving Loan Programs • Fee mitigation • Grants (augment existing grant program) • Relaxation of sign ordinance (perhaps as an incentive tool) • Impact fee reimbursement • Other investment incentives such as writing down the cost of land to facilitate major projects in the district Expand trail system north of I-90 Improve safety for students through the Safe Routes to School Program • Whittier School • Bozeman High School Develop open space and event areas 210 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 55 • Aspen as a “festival street” and public anchor • The BMX area (if included in the District) Improve area infrastructure • Enhance intersections • Connect infrastructure in and out of the district • Improve water, sewer and transportation infrastructure • Reconstruct streets • Create 8th Avenue where it is missing as an important secondary access • Improve broadband services to and within the district Engage in urban renewal activities as provided for in statute; e.g. “to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area” (7-15- 4233 MCA) Promote/Market Midtown • Branding programs including those that tie “Midtown” to MSU • Gateway development • Marketing and outreach plans Promote mixed-uses and higher density development, such as upper story residential development • Stimulate critical residential mass to help support commercial development Coordinate mixed use development with better pedestrian access Develop a variety of housing types in the urban renewal area • Co-op • Transitional • Senior/Special Needs • Income diverse Provide for “live-work” opportunities in the district (targeting millennials as well as other groups who want to live and work in close proximity.) Install way-finding signage • Within the district • On I-90 • Use the “Midtown” brand in the signage (early on to establish the name in association with the district) Address design and zoning issues in the district • Provide choices to property owners for boulevard plantings, including drought tolerant plantings for sustainable water use • Address the medians – Should the medians be removed to make the area more like a CBD or should they be kept and enhanced, perhaps as gateway features? • Raise the building height restrictions to promote more multi-story buildings • Use design elements to link Midtown to Downtown • Install “traffic calming” art work • Develop a specific “vision” of the urban renewal district’s character – more like downtown? o Greater pedestrian orientation o Less of a vehicular pass through • Relax parking requirements 211 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 56 • Relax signage restrictions Undertake Economic Development Planning that considers • A Convention/Conference Center • High-Tech companies (“groupings”) • Facilitation of “big deals”, through land acquisition, consolidation and roadblock reduction Discourage business enterprises that create blighted conditions in the district through: • Zoning • Parking requirements • Design standards Provide an opportunity for a representative of the Bozeman School District to sit on the urban renewal board Stimulate residential development in the Whittier School attendance area to take advantage of this neighborhood school Help make improvements to obsolete facilities at the Whittier School • Planning and design assistance • Capital projects Provide for public parking • Parking structure • Shared parking programs Support multi-modal transportation • Develop bus stops in the district • Improve pedestrian safety at crossings and throughout the district Foster sustainable approaches to: • Water use • Energy use – provide incentives for projects that use alternative energy • Storm water mitigation (preferably not using developable land) Work with Gallatin College to develop partnerships in higher education for • Continuing education • Distance learning Address ongoing maintenance needs including snow removal using various funding mechanisms (TIF, BID) Participate in environmental mitigation/remediation efforts 212 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 57 Appendix B. Planning Consistency Review Planning Consistency Per Section 7-15-4213, MCA, prior to its approval of an urban renewal project, the local governing body shall submit the urban renewal project plan to the planning commission of the municipality for review and recommendations as to its conformity with the growth policy and the planning commission shall submit its written recommendations to the local governing body. The efforts of local Planning Boards to prepare land use recommendations for the Bozeman area began in 1955, when the first municipal Planning Board was formed. In April of 1958, S.R. DeBoer & Company (planning consultants from Denver, CO) prepared Bozeman’s first Master Plan. It included studies on transportation, street planning, zoning districts, parks and recreation, schools, park roads, and sanitation and health. The City made significant progress in comprehensive planning with the October 2001 adoption of the Bozeman 2020 Community Plan (2020 Plan). The 2020 Plan wholly replaced all previous comprehensive plans and complied with the new planning standards. The 2020 Plan recognized the changing nature of the economy and expanding knowledge of community development standards and consequences. The 2020 Plan also put a higher emphasis on coordinated land use and physical infrastructure planning. The Bozeman Community Plan was duly adopted as the current growth policy by the Bozeman City Commission by City of Bozeman Resolution No. 4163, dated June 1, 2009. In addition, Bozeman has completed many infrastructure and topic plans that have some influence on the area included under the Bozeman Midtown Urban Renewal District Plan. Some applicable plans are: • Design and Connectivity Plan for North Seventh Avenue Corridor. • Design Objectives Plan for Entryway Corridors. • Design Guidelines for Historic Preservation and the Neighborhood Conservation Overlay. North Seventh Avenue Urban Renewal District Plan; October, 2006 In August of 2005, the Bozeman City Commission adopted Resolution 3839, a Resolution of Necessity, and subsequently approved Ordinance 1685, on November 27, 2006, which created the North Seventh Avenue Urban Renewal District and adopted the North Seventh Avenue Urban Renewal Plan with a provision for tax increment financing, to be calculated using a base year of 2006. The following excerpts and specific statements were included in the 2006 North Seventh Avenue Urban Renewal Plan demonstrating conformance with the Bozeman 2020 Community Plan and describing the land uses and zoning in the area at that time. “Growth Policy Land Use Designations The Bozeman 2020 Community Plan designates the area along the N 7th Corridor as Neighborhood Commercial, Regional Commercial and Industrial. Some of the area east of N 5th Avenue between Tamarack and Oak is designated Residential and the area east along Oak Street contains Regional Commercial and Industrial designations. 213 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 58 Zoning Classifications The District primarily consists of “B-2 Community business District” zoned parcels. East of the corridor, two large vacant parcels are zoned “R-4 Residential High Density District”, and “M-1 Light Manufacturing” zoned parcels are located on the north end of the study area Land Area The District encompasses roughly 323 acres or approximately 30 of the approximately 10,763 acres which comprised the total area of the city of Bozeman in August, 2005. Land Use The District primarily includes areas of commercial, residential, agricultural, industrial, and public uses. Commercial Activity The District includes one of the city’s oldest auto oriented commercial strips. Much of the area was developed more than fifty years ago and much has been developed or will develop largely due to the influences of transportation features, particularly North Seventh Avenue, Interstate 90 and Oak Street. These transportation corridors shape many of the elements of the District including platting of land and land use, access, traffic and circulation, and development patterns Residential Neighborhoods Well established and well kept residential neighborhoods adjoin North Seventh Avenue commercial development on both the east and west. A portion of these neighborhoods is included in the District to assure that redevelopment of the Corridor includes careful consideration of the issues associated with these established residential areas.” Review of the Bozeman Midtown Urban Renewal District Plan’s Consistency with the Bozeman Community Plan To comply with state statute, this Bozeman Midtown Urban Renewal District Plan must be reviewed by the Bozeman City Planning Board and found to be in conformance with the Bozeman Community Plan. On October 20th, 2015 the City Planning Board reviewed the Bozeman Midtown Urban Renewal District Plan as outlined in this chapter and found it to be in conformance with the growth policy as required by 7-15-4213 MCA. Growth Policy Review The Bozeman Community Plan was reviewed in order to determine whether the growth policy adequately supports the urban renewal project (per 7-15-4213 MCA). The Bozeman Community Plan has been found to include: • Goals and Objectives that support the urban renewal, economic development, and development of infrastructure that encourages urban renewal and economic development in the community. • The inclusion of tax increment financing among the strategies to be implemented to achieve the Bozeman Community Plan’s goals and objectives. • The identification of land use through maps and/or text of lands. 214 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 59 An overall review of the goals and objectives of the growth policy indicates no conflicts for an urban renewal project with the growth policy. The following selections from the Bozeman Community Plan demonstrate conformance of the Bozeman Midtown Urban Renewal District Plan to the vision, goals and objectives of the Bozeman Community Plan. 1-2 Vision Statement (Page 1-2) Bozeman’s unique identity, characterized by its natural surroundings, its historic and cultural resources, and its downtown, which is the heart and center of the community, is preserved and enhanced. Bozeman’s economy is strong, diverse and sustainable. Our natural resources are protected and preserved for future generations. A diversity of recreational facilities, activities, and parks are provided. Public services and infrastructure support our growing population in a cost-effective manner. The community development pattern is sustainable, and preserves our health, safety, and quality of life. The housing stock provides quality, affordability, and choice. Our development pattern encourages and enables the use of diverse modes of transportation. Our quality of life is enhanced by the arts. Our governmental agencies, including the City of Bozeman and Gallatin County, work together in a cooperative and coordinated way for the good of the region. An actively engaged citizenry has a wide array of opportunities to participate in civic life. Our community recognizes that the individual and collective choices we make have consequences. 1.3 Addressing Growth & Change Goals and Objectives Goal G-1: Growth Management - Promote the unique history and character of Bozeman by preserving, protecting, and enhancing the overall quality of life within the planning area. (Page 1-3) Rationale: To ensure that Bozeman remains a great place to live, work, operate a business, and play we need to protect the qualities that make people and companies want to be here in the first place. • Objective G-1.1: Ensure growth is planned and developed in an orderly and publicly open manner that maintains Bozeman as a functional, pleasing, and social community. • Objective G-1.2: Ensure that adequate public facilities, services, and infrastructure are available and/or financially guaranteed in accordance with facility or strategic plans prior to, or concurrent with, development. • Objective G-1.3: Require development to mitigate its impacts on our community as identified and supported by evidence during development review, including economic, health, environmental, and social impacts. • Objective G-1.4: Ensure that Bozeman grows in a sustainable manner with consideration for climate change, health and safety, food production, housing, employment opportunities, natural hazard mitigation, and natural resource conservation. 215 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 60 Goal G-2: Implementation – Ensure that all regulatory and non-regulatory implementation actions undertaken by the City to achieve the goals and objectives of this plan are effective, fair, and are reviewed for consistency with this plan on a regular basis. (Pages 1-3 and 1-4) 3.3 Land Use Goals and Objectives Goal LU-1: Create a sense of place that varies throughout the City, efficiently provides public and private basic services and facilities in close proximity to where people live and work, and minimizes sprawl. (Page 3-6) Rationale: A sense of community is strengthened by distinctive areas which facilitate neighborhood identity. This is strengthened when essential services are available and encourage informal interactions. Full featured neighborhoods allow extensive interaction and build identity with a specific part of the community. A sense of place does not prohibit change or continued evolution of the community. • Objective LU-1.1: The land use map and attendant policies shall be the official guide for the development of the City and shall be implemented through zoning regulations, capital improvements, subdivision regulations, coordination with other governmental entities, and other implementation strategies. • Objective LU-1.2: Review and revise regulatory standards and City policies to ensure that develop advances the vision, goals, and objectives of this plan, and sprawl, as defined in Appendix K (of the Community Plan), is discouraged. • Objective LU-1.3: Encourage positive citizen involvement in their neighborhood and community. • Objective LU-1.4: Provide for and support infill development and redevelopment which provides additional density of use while respecting the context of the existing development which surrounds it. Respect for context does not automatically prohibit difference in scale or design. Goal LU-2: Designate centers for commercial development rather than corridors to encourage cohesive neighborhood development in conjunction with non-motorized transportation options. (Page 3-7) Rationale: Transportation and land use are closely connected. A center based development pattern is more land and resource efficient and supports the goals of community and neighborhood development and sustainability. Future growth will cause additional demand for and use of transportation facilities. A center based development pattern can reduce future demand. • Objective LU-2.1: Locate high density community scale service centers on a one mile radius, and neighborhood service centers on a one-half mile radius, to facilitate the efficient use of transportation and public services in providing employment, residential, and other essential uses. • Objective LU-2.2: Provide for a limited number of carefully sited regional service centers which are appropriately sized and serviced by adequate infrastructure. • Objective LU-2.3: Encourage redevelopment and intensification, especially with mixed uses, of brownfields and underutilized property within the City consistent with the City’s adopted standards. Using this approach rehabilitate corridor based commercial uses into a pattern more supportive of the principles supported by commercial centers. 216 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 61 Goal LU-3: Strengthen the Historic Core of Bozeman to preserve the community character, economic resource, and historical connection represented by this area. (Page 3-7) Goal LU-4: Sustainability, Natural Environment and Aesthetics – Ensure adequate review of individual and cumulative environmental and aesthetic effects of development to preserve the viewsheds, natural functions, and beauty which are a fundamental element of Bozeman’s character. Design and development in a quantifiably sustainable manner are desirable. (Pages 3-8 and 3-9) Rationale: The natural environment is a key aspect of Bozeman’s appeal. Accidental or deliberate injury to the natural environment can be very costly to repair and can have substantial impacts on City functions. Individual actions can cause incremental change which is unacceptable. Human use of resources will cause impacts. Development within the City can provide significant protection for valued natural resources within the larger community of Gallatin County. • Objective LU-4.1: Protect important wildlife habitats, and natural areas which provide for beneficial functions, such as floodplains. • Objective LU-4.2: Protect the viewshed, including ridgelines, surrounding and within Bozeman to preserve the natural character and mountain setting which helps to make Bozeman unique. • Objective LU-4.3: Encourage the creation of well-defined residential neighborhoods. Each neighborhood should have a clear focal point, such as a park, school, other open space or community facility, and shall be designed to promote pedestrian convenience. To this end, the City shall encourage the use of historic Bozeman neighborhoods, including a significantly interconnected street system, as models for the planning and design of new residential neighborhoods. • Objective LU-4.4: Review and revise the City’s regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. • Objective LU-4.5: Generation of renewable energy including solar and wind power as an accessory use is encouraged with proper design and compatibility to adjacent uses. • Objective LU-4.6: All mixed use areas should be developed on a grid of connectivity, including streets, alleys, driveways, and parking areas that contain multimodal facilities and a high level of connectivity to adjacent development. Shared use, underground, or other structured parking is recommended to reduce surface parking area. • Objective LU-4.7: Stormwater systems should be designed using Low Impact Development principles. • Objective LU-4.8: Promote the efficient use of water, energy, land, human resources, and natural resources and protect water supply quantity and quality. • Objective LU-4.9: Recognize the cumulative effects of changes in land use and develop equitable means to evaluate, avoid, and/or respond to negative cumulative impacts. Recognize the value of well designed and implemented urban development in minimizing impacts from existing and future development. • Objective LU-4.10: Encourage development throughout Gallatin County to occur within existing municipalities and support the local ability to address and manage change and growth. 4.3 Community Quality Goals and Objectives 217 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 62 Goal C-1: Human Scale and Compatibility — Create a community composed of neighborhoods designed for the human scale and compatibility in which the streets and buildings are properly sized within their context, services and amenities are convenient, visually pleasing, and properly integrated. (Page 4-3) Rationale: A community’s physical form, rather than its land uses, is its most enduring characteristic. We should design places for people as the primary user. Good design looks good and feels good. The spatial relationships in our environment in large part determine our experience of the place. Scale and context should be the beginning point of any discussion of community quality. • Objective C-1.1: - Expand design review programs citywide to ensure well designed spaces throughout the community. • Objective C-1.2: - Update design objectives to include guidelines for urban spaces and more dense development. • Objective C-1.3: Support compatible infill within the existing area of the City rather than developing land requiring expansion of the City’s area. • Objective C-1.4: Achieve an environment through urban design that maintains and enhances the City’s visual qualities within neighborhood, community and regional commercial areas. Goal C-2: Community Circulation — Create a circulation system both vehicular and pedestrian that is fully connected, integrated, and designed for ease of use. (Page 4-4) Rationale: Street and roadway layouts have an impact on the community far beyond their costs of construction; they create the mental image one is left with after visiting a place. Options for travel by modes other than in an automobile can increase the physical health of the community and fight the current obesity epidemic. Moving about the community through multiple modes of transportation should be safe, pleasant, easy, and available to all. Instead of a project-by-project struggle to accommodate bicycle- and pedestrian-friendly practices, complete streets policies require road construction and improvement projects to begin by evaluating how the right-of-way serves those who use it. • Objective C-2.1.: Require adequate and efficient circulation in all subdivisions and site plans and provide connectivity between developments and major destinations for both the pedestrians and vehicles, including human powered vehicles. • Objective C-2.2: Develop standards for complete streets that will apply to City streets and to private drive aisles. • Objective C-2.3.: Investigate the expansion of shared use pathways within the City. • Objective C-2.3.: Require alleys in all new development both commercial and residential where feasible. • Objective C-2.4: Support Community Transit. Work with the Streamline Transit agency to include transit stops, shelters, seating, lighting or areas improved for future transit stops within development projects where appropriate. • Objective C-2.5: Explore and encourage innovative parking solutions for both residential and commercial projects including parking best practices, expanded parking districts, cash in lieu of parking, and design guidelines for structured parking. 218 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 63 Goal C-3: Neighborhood Design – New neighborhoods shall be pedestrian oriented, contain a variety of housing types and densities, contain parks and other public spaces, have a commercial center and defined boundaries. (Page 4-5) Rationale: Good neighborhoods allow choices in housing, recreation, modes of transportation, options for commerce, work, and entertainment while providing a healthy environment and a sense of place and identity that residents can call home. • Objective C-3.1: Encourage the preservation and continuing operation of existing neighborhood schools. • Objective C-3.2: Provide for neighborhood focal points to encourage local identity within the community and provide a place for social interaction. • Objective C-3.3: Establish minimum residential densities in new and redeveloping residential areas. • Objective C-3.4: Create neighborhood Commercial Centers that will provide uses to meet consumer demands from surrounding Residential Districts for everyday goods and services, and will be a pedestrian oriented place that serves as a focal point for the surrounding neighborhoods. • Objective C-3.5: Integrate a wide variety of open lands, such as parks, trails, squares, greens, playing fields, natural areas, orchards and gardens, greenways, and other outdoor spaces into neighborhoods. • Objective C-3.6 Ensure that health (as defined in Appendix K (of the Community Plan)) issues within the scope of the City of Bozeman’s responsibility are included in the City’s regulations, policies, and practices. Goal C-4: Design Guidelines – Create illustrated design guidelines to give clear direction in design and review of residential and non-residential neighborhoods without unduly constraining architectural style and innovation. (Page 4-6) Rationale: Design Guidelines allow the community an opportunity to communicate with developers and those who wish to build here. The guidelines are a way to convey to the development community who we are and where we as a community would like to go. The guidelines can be read as a list of values. • Objective C-4.1: Continue to develop the design guidelines for site planning and buildings to emphasize creativity, diversity, and individuality. The design guidelines shall be based on the premise that truly creative design is responsive to its context and contributes to a comfortable, interesting community. • Objective C-4.2: All new residential buildings should be designed to emphasize the visually interesting features of the building, as seen from the public street and sidewalk. The visual impact of garage doors, driveways, and other off-street parking will be minimized and mitigated. • Objective C-4.3: Ensure the development of new residential structures that are aesthetically pleasing through urban design. • Objective C-4.4: Provide for the protection of character and the enhancement of services in existing residential neighborhoods. • Objective C-4.5: Investigate expanding form based zoning as a design review strategy for the City. 219 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 64 Goal C-5: Public Landscaping and Architecture— Enhance the urban appearance and environment through the use of architectural excellence, landscaping, trees and open space. (Page 4-7) Rationale: The benefits of a well developed landscape are myriad: beautification of the environment, animal habitat, reduction of the heat island effect, stormwater control, and opportunities for recreation and human interaction. • Objective C-5.1: Provide street trees in all public rights of way to establish a human scale to transportation corridors. • Objective C-5.2: Encourage inclusion of plazas and other urban design features as public areas within developments. • Objective C-5.3: Continue to develop the design guidelines to encourage innovative landscaping including urban hardscapes, public art, plazas, roof gardens, green walls, and other features to emphasize the urban qualities of individual projects. • Objective C-5.4: Continue to develop the design guidelines to provide direction to naturalizing stormwater systems and integrating them into the landscape as an amenity. Goal C-6: Support Sustainability— Provide a framework to integrate the functional systems of a development into the site planning and building architecture. (Page 4-8) Rationale: The support and encouragement of new technologies and techniques to make our developments more sustainable while still maintaining good design and an aesthetically pleasing cityscape is obligatory in the face of today’s global environmental challenges. • Objective C-6.1: Continue to develop the design guidelines to encourage the treatment of stormwater on site with an aesthetic and integrated approach utilizing Low Impact Development principles. Provide incentives for innovation. • Objective C-6.2: Continue to develop the design guidelines to provide direction for the integration of site based power generation (solar, wind, geothermal, etc.) in both commercial and residential projects. • Objective C-6.3: Encourage and support energy conservation and efficiency in all aspects of development. • Objective C-6.4: Continue to develop the design guidelines and ordinances to implement best dark sky lighting practices including utilizing new technologies to reduce impacts to the night sky. 5.3 Historic Preservation Goals and Objectives Goal HP-1: Protect historically and culturally significant resources that contribute to the community’s identity, history, and quality of life. (Page 5-5) Goal HP-2: Promote protection of historically and culturally significant properties through education and outreach in order to increase community awareness and identity. (Page 5-6) 6.3 Housing Goals and Objectives Goal H-1: Promote an adequate supply of safe, quality housing that is diverse in type, density, cost, and location with an emphasis on maintaining neighborhood character and stability. (Page 6-3) 220 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 65 Goal H-2: Promote the creation of housing which advances the seven guiding land use principles of Chapter 3. (Pages 6-3 and 6-4) Goal H-3– Encourage an adequate supply of affordable housing and land for affordable housing. (Page 6-4) 7.3 Arts and Culture Goals and Objectives Goal AC-1: Support public and private arts and cultural opportunities in the Bozeman community for the enjoyment of all persons. (Page 7-3) 8.3 Economic Development Goals and Objectives Goal ED-1: Promote and encourage the continued development of Bozeman as a vital economic center. (Page 8-4) Rationale: Economic vitality supports the social and cultural fabric of the community and provides for physical needs of the citizens. • Objective ED-1.1: Support business creation, retention, and expansion. Emphasize small businesses, ‘green’ businesses, and e-businesses. • Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. • Objective ED-1.3: Foster a positive economic climate through a well managed and aesthetically pleasing built environment, and by maintaining a beautiful and healthy natural environment to promote and attract businesses with a desirable impact on the community. • Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. • Objective ED-1.5: Encourage, through the use of incentives, the development of business and industry that provides wages that are proportionate to, or are higher than, the cost of living and provide options to expand skills and opportunities for Bozeman’s workforce. • Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. • Objective ED-1.7: Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business Network, MSU-Bozeman and others to promote Bozeman. (Source: Bozeman Economic Development Plan) • Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. (Source: Bozeman Economic Development Plan) Implementation Policies: 2-6, 10, 12-14, 16, 24, 25, 26, 47-56, 72, 77, 78, 80, 81, 83, 84, 86-88 Goal ED-2: Support balanced policies and programs to encourage a durable, vigorous, and diverse economy. (Page 8-5) Rationale: A lack of balance in economic policy can lead to loss of community viability by sacrificing high long term value community assets for short term, “quick fix” benefits. It is important to recognize the economic importance of the social, cultural, and natural assets of Bozeman. 221 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 66 • Objective ED-2.1 Support the preservation of agricultural lands and activities and a viable agricultural community, including community supported agriculture, as an important economic sector in the Gallatin Valley. • Objective ED-2.2: Support the preservation of Gallatin County’s historic agricultural character and rural lifestyle. • Objective ED-2.3: Ensure the viability of agricultural land uses by protecting water sources used for irrigation. • Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. • Objective ED-2.5: Participate in the growing regional economy in a manner that minimizes conflict between jurisdictions and that maximizes natural market strengths. • Objective ED-2.6: Maintain a strong financial position for the City of Bozeman. • Objective ED-2.7: Support Montana State University in its educational and research mission, which contributes to the local and state economy. • Objective ED-2.8: Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business. (Source: Bozeman Economic Development Plan) • Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. (Source: Bozeman Economic Development Plan) Goal ED-3: Recognize the importance of quality of life elements in attracting and developing economic activity. (Page 8-6) Rationale: High cultural, educational, and outdoor recreational values are commonly cited reasons for people to visit or live in Bozeman. Protecting and building upon existing strong assets leverages other efforts for economic development. A strong sense of shared community values and mutual support creates a good environment for business and workers to succeed. • Objective ED-3.1: Build upon existing cultural assets such as historic districts, parks, arts festivals, the arts community, and MSU to strengthen the local economy. • Objective ED-3.2: Encourage sustainable development to minimize costs to businesses and customers and protect quality of life. • Objective ED-3.3: Encourage businesses to be good stewards and contributors to the community, including participating in public/private partnerships to meet community needs. 9.3 Environmental Quality and Critical Lands Goals and Objectives Goal E-1: Continue protecting critical lands as valuable resources for the Community. (Page 9-5) Goal E-2: Ensure good environmental quality of water resources, air, and soils within the planning area. (Page 9-5) 222 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 67 Goal E-3: Help address climate change by taking steps towards reducing the City’s greenhouse gas emissions. (Page 9-6) Goal E-4: Promote and support responsible use of our natural resources. (Page 9-7) Goal E-5: Maintain a natural and attractive aesthetic character for the Bozeman Area. (Page 9-7) 10.3 Parks, Recreation, Open Space, and Trails Goals and Objectives Goal R-1: Provide for accessible, desirable, and adequately maintained public parks, open spaces, trail systems, and recreational facilities for residents of the community. (Pages 10-4 and 10-5) Rationale: Quality recreational facilities, such as parks and trails, are an important component of the high quality of life enjoyed by Bozeman residents. Recreational facilities also contribute to the strength of the local economy, encourage healthy lifestyles, and provide venues for arts and cultural events. Finally, the siting of recreational lands, such as parks and open spaces, greatly influences land use patterns, and can be used to protect environmentally sensitive lands. • Objective R-1.1: Make all City recreational facilities and programs accessible to and affordable for all members of the community. • Objective R-1.2: Provide education and information to enhance the utilization and enjoyment of public recreation facilities. • Objective R-1.3: Establish regular and sufficient funding sources to acquire, develop and maintain public parks, trails, and recreational facilities, and to meet the community’s recreational programming needs. • Objective R-1.4: Establish and strengthen partnerships with other recreation providers to meet the community’s recreational needs in a coordinated and cooperative manner. • Objective R-1.5: Connect the community using trails. • Objective R-1.6: Ensure that parkland’s size, location, suitability, and development promote usability. • Objective R-1.7: Ensure equity in the provision of recreation facilities and programs. • Objective R-1.8: Provide clear and concise standards and requirements to ensure predictability for all groups providing, development, and maintaining recreation facilities. • Objective R-1.9: Ensure that the City’s recreational facilities are safe. • Objective R-1.10: Plan for the City’s recreational facilities citywide and at the site level. • Objective R-1.11: Establish and meet high level of service standards in the provision of recreational facilities and services. • Objective R-1.12: Use parks and open space to protect critical and sensitive lands. • Objective R-1.13: Use parks and recreation facilities as community design features such as a neighborhood focal point. • Objective R-1.14: Continue to provide parks, recreation, open space, and trails facilities that meet or exceed national per capita standards. Goal R-2: Provide recreational programming that promotes active, healthy lifestyles. (Page 10-5) 223 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 68 Goal R-3: Promote business growth and economic development. (Page 10-6) Rationale: Excellent recreational facilities attract tourists, residents, and businesses to the community. • Objective R-3.1: Encourage economic vitality in the community by providing excellent recreational facilities. • Objective R-3.2: Provide recreation programs that expand professional competencies, and provide professional and continuing education opportunities to enhance the skills and knowledge of the City’s workforce. Goal R-4: Use recreational lands to promote arts and culture. (Page 10-6) Rationale: Recreational lands such as parks are obvious locations to conduct arts and culture events and activities. • Objective R-4.1: Consider arts and culture uses when siting and planning parks, and incorporate venues and public art as appropriate. 11.3 Transportation Goals and Objectives Goal T-1: Transportation System–Maintain and enhance the functionality of the transportation system. (Pages 11-4 and 11-5) Rationale: Transportation must be reliable to achieve its function. People depend on the transportation system to meet their needs for both vehicular and non-vehicular travel. • Objective T-1.1: The implementation of the transportation facility plan shall conform to the goals and policies of this Plan to ensure that public and private investments in transportation infrastructure support other land use decisions of the community. • Objective T-1.2: Ensure that the development review process shall coordinate development and transportation services so that necessary facilities, such as pedestrian and vehicular travel ways, are provided concurrently with development. • Objective T-1.3: All development activity shall comply with the right-of-way standards, road locations, and other policies set forth in the transportation facility plan to ensure that an orderly, efficient, effective transportation system is continued and to avoid future problems with inadequate transportation services and options. • Objective T-1.4: Ensure that adequate interconnections are made throughout the transportation system to ensure a variety of alternatives for trip routing and reduce total travel distance. Goal T-2: Ensure that a variety of travel options exist which allow safe, logical, and balanced transportation choices. (Pages 11-5 and 11-6) Rationale: Providing for a variety of travel options supports public health, reduces resource demand, and helps the City operate efficiently and cost effectively. Coordinated and cooperative efforts by all transportation system providers minimize the costs while maximizing benefits. • Objective T-2.1: For the purposes of transportation and land use planning and development, non-motorized travel options and networks shall be of equal importance and consideration as motorized travel options. This balance shall ensure that a variety of travel opportunities are available which do not require the use of automobiles for local trips. 224 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 69 • Objective T-2.2: Review and revise parking requirements to ensure provision of parking consistent with other goals of this plan to support commercial and residential activities in the downtown and other areas. • Objective T-2.3: Reduce the negative health and physical impacts of the automobile by coordinating transportation policies to support land use decisions that can decrease the number and length of automobile trips. When considering automobile impacts maintain awareness of all the costs of transportation. • Objective T-2.4: Seek and provide adequate funding to improve and maintain the functionality of all elements of the transportation system. Goal T-3: Encourage transportation options that reduce resource consumption, increase social interaction, support safe neighborhoods, and increase the ability of the existing transportation facilities to accommodate a growing city. (Page 11-6) Rationale: Supporting transit, pedestrian and bicycle travel as an alternative to single occupancy cars can create more capacity for travel at reduced expense. People are more likely to use these modes of travel if they feel safe when they use them. • Objective T-3.1: Promote and support a high-quality public transit system. • Objective T-3.2: Support and encourage Transportation Demand Management to reduce peak travel demands and increase the efficient use of the existing transportation system. Goal T-4: Pathways–Establish and maintain an integrated system of transportation and recreational pathways, including streets, bicycle and pedestrian trails, neighborhood parks, green belts and open space. (Page 11-7) Rationale: The City works with many partners to develop and operate the transportation system in the City. Coordinating among these partners creates a greater value from a complete and functional system rather than disjointed pieces. • Objective T-4.1: Coordinate development of non-motorized transportation systems in conjunction with motor vehicular transportation systems. • Objective T-4.2: Further develop and maintain an interconnected and convenient pedestrian and bicycle network for commuting and recreation as discussed and described in the transportation facility plan and in coordination with the design standards of the transportation facility plan and the Parks, Recreation, Open Space, and Trails Plan. • Objective T-4.3: Review, revise, and update trail/pathway standards to reflect the various types and uses of trails and other non-motorized travel ways. • Objective T-4.4: Continue to improve the existing pedestrian network to increase American’s with Disabilities Act compliance. The long term intent is full accessibility throughout the community transportation system. Give highest priority to those improvements that will provide the greatest access to community centers of activity. 12.3 Public Services & Facilities Goals and Objectives Goal PS-1: Facilities and Services- All public facilities and services provided under the authority of the City of Bozeman shall be provided in a reliable, efficient, cost-effective and environmentally sound manner. (Pages 12-4 and 12-5) Rationale: The City is committed to providing services in a manner which respects the values and priorities of the citizens of the community. 225 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 70 • Objective PS-1.1: All service and facilities provided under the authority of the City of Bozeman shall have facility plans which will evaluate current and future needs and best management practices for providing services. • Objective PS-1.2: Implement all facility plans, including transportation, in compliance with the goals and objectives of the City’s growth policy. • Objective PS-1.3: Strive to coordinate the provision of services with other governmental agencies to prevent overlap, excessive cost, and to provide the highest quality services. • Objective PS-1.4: Balance maintenance of existing facilities with the need to provide new facilities so that existing users do not suffer a reduction in service quality in order to provide services to new development. • Objective PS-1.5: Sewer Facilities - Provide for public central sewer collection and treatment facilities for all existing and future land uses within the planning area. • Objective PS-1.6: Storm Drainage - Provide for storm drain, flood control and treatment facilities to protect existing and future land uses, preserve public safety and protect surface and groundwater quality. • Objective PS-1.7: Solid Waste - Provide for a balanced and integrated solid waste reduction, recycling and disposal system and design to meet the future needs for the planning area in coordination with other members of the solid waste district. • Objective PS-1.8: Domestic Water - Provide for a safe and adequate water supply, distribution, storage and treatment facilities to support water demand projected by planned land uses in the planning area. • Objective PS-1.9: Fire Protection - Protect the community through a comprehensive fire and life safety program for current and future city needs. • Objective PS-1.10: Police Service — Provide protection of community residents from criminal activity, reduce the incidence of crime, and provide other necessary services to meet current and future needs. • Objective PS-1.11: Library Services - Ensure that high quality library services are provided in an efficient, cost-effective manner. • Objective PS-1.12: Cemetery - Ensure that cemetery facilities are adequately provided, developed, and maintained. Goal PS-2: The City shall work with other service and utility providers to ensure the adequate and safe provision of services. (Page 12-5) Rationale: Public and private utilities often are located within the same rights-of-way and easements. Coordination between providers is essential to prevent conflicts, damage, and injury. Services are necessary to support urban development. • Objective PS-2.1: Education - Ensure that the area around educational institutions has adequate residential parking, facilities, bike paths, safe cross walks, and zoning to ensure a high quality of life for school users and city residents. • Objective PS-2.2: Irrigation Water — Provide adequate protection to the canals from development and to ensure future access to canal water for agricultural use. • Objective PS-2.3: Private Utilities — Facilitate the provision of adequate private utility services within the City while respecting the character of Bozeman. Goal PS-3: Establish regular and sufficient funding sources to acquire, develop, and maintain public services, and meet the community’s needs. (Page 12-6) 226 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 71 Rationale: Adequate and reliable funding sources are critical to the provision of quality facilities and services in a quantity sufficient to keep pace with our growing population. Dependable funding which enables correctly timed maintenance of facilities results in the least overall cost of operation. • Objective PS-3.1: Establish regular and sufficient funding sources to acquire, develop, and maintain municipal facilities. • Objective PS-3.2: Continue a blend of enterprise and general fund supported services to most nearly match revenues to sources of demand for service while recognizing the general obligations of good government. • Objective PS-3.3: Encourage the annexation of wholly surrounded parcels, while recognizing the financial impacts on small properties without redevelopment options. 13.3 Disaster and Emergency Prevention and Response Goals and Objectives Goal D-1: Recognize the on-going and pervasive opportunity for hazards to occur and act pro-actively to minimize their effects. (Page 13-2) Goal D-2: Recognize and strive to address both chronic as well as acute hazards and the effect of cumulative actions on increasing or decreasing hazards. (Page 13-3) 14.3 Regional Coordination and Cooperation Goals and Objectives Goal RCC-1: Coordinate policies and actions between public entities to increase effectiveness and efficiency of implementation of the Bozeman Community Plan. (Pages 14-2 and 14-3) Goal RCC-2: Utilize inter-local agreements and similar mechanisms to establish formal coordination mechanisms so intent, scope, and functions are well defined to advance cooperation. (Pages 14-3 and 14-4) Rationale: Elected and appointed officials change membership over time. Having a formal inter-local agreement ensures continuity and consistency of policy over time. Development of agreements facilitates discussion of issues so that pitfalls can be avoided and success is more likely. • Objective RCC-2.1: Document and formalize the practice of the county not approving development within the planning area where the City considers services to be reasonably available. • Objective RCC-2.2: Evaluate means for the City to support the County’s proposed transfer of development credit program. • Objective RCC-2.3: Work with Gallatin County to develop standards to facilitate extension of urban services including street widths, utility easements, and subdivision design. • Objective RCC-2.4: Develop joint programs and practices with local, state, and federal entities to address health, safety, and environmental concerns, as well as other issues as may be identified. • Objective RCC-2.5: Work with School District 7 to coordinate future school locations and development to integrate with the City’s transportation network, location of residences, and location and use of public parks. 227 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 72 • Objective RCC-2.6: Continue coordination with the Montana Department of Transportation so that street construction and maintenance advance the purposes of this plan, support infill and extension of pedestrian and bicycle circulation, and other issues as may be identified. • Objective RCC-2.7: Continue cooperation with Montana State University on transportation, building siting, future land use planning, and other town/gown issues. • Objective RCC-2.8: Recognize the significant influence that state and local agencies, such as the US Forest Service, have on City concerns such as watershed management and recreation. Specific Goals and Objectives in the Bozeman Community Plan furthering urban renewal and economic stability for the prevention and the elimination of urban blight. Land Use Objective LU-1.4: Provide for and support infill development and redevelopment which provides additional density of use while respecting the context of the existing development which surrounds it. Respect for context does not automatically prohibit difference in scale or design. Land Use Objective LU-2.3: Encourage redevelopment and intensification, especially with mixed uses, of brownfields and underutilized property within the City consistent with the City’s adopted standards. Using this approach rehabilitate corridor based commercial uses into a pattern more supportive of the principles supported by commercial centers. Land Use Objective LU-4.4: Review and revise the City’s regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. Economic Development Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. Economic Development Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. Economic Development Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. Economic Development Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. Economic Development Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. Economic Development Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. Evaluation of the Bozeman Midtown Urban Renewal District Plan for conformance with Overall Principles and Goals of the Bozeman Community Plan. In conformance with the growth policy, the Bozeman Midtown Urban Renewal District Plan seeks to provide long term economic stability and to use planning and the development of public infrastructure as tools for well managed growth. 228 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 73 The goals of the Bozeman Midtown Urban Renewal District as stated in the Urban Renewal District Plan are: Goal #1 Promote Economic Development Goal #2 Improve Multi-Modal Transportation Goal #3 Improve, Maintain and Support Innovation in Infrastructure Goal #4 Promote Unified, Human Scale Urban Design Goal #5 Support Compatible Urban Density Mixed Land Uses Growth Policy Implementation The following selections from the Bozeman Community Plan demonstrate conformance of the Bozeman Midtown Urban Renewal District Plan to the implementation strategies and tools of the growth policy. 16: Implementation 16.2 Implementation Action Plan Programs or Detailed Planning Efforts (Page 16-2) - This growth policy establishes a foundation for programs as well as more detailed plans. For example, a neighborhood plan for Downtown and an Economic Development plan now underway were both initiated through the growth policy. Programs have varying levels of priority, depending on the issues involved. Consequently, the City will initiate them at different intervals. Programs often provide the organizational structure to carry out routine City operations such as street maintenance. Detailed planning also includes the preparation of facility plans. The Bozeman Community Plan chronicles several programs and/or detailed plans that apply to the Bozeman Midtown Urban Renewal District some of which are described as follows: 8: Economic Development 8.1 Intent and Background. (Page 8-3) The City has also invested in urban renewal plans for the N. 7th Avenue Corridor, the Downtown area, and the Northeast Neighborhood These detailed plans help spur reinvestment and preservation of economic activity and resources. D.1 Neighborhood Conservation Overlay District (Pages D-1 and D-2) Enhance property values through the stabilization of neighborhoods and areas of the City, increase economic and financial benefits to the City and its inhabitants, and promote tourist trade and interests. D.2 Entryway Corridor Overlay District (Pages D-2 and D-3) It is the intent and purpose of these requirements to ensure the quality of development along these corridors to enhance the impression and enjoyment of the community by guiding development and change that occurs in these areas. These provisions are also intended to improve signage, landscaping, access and other contributing elements of entry corridor appearance and function. Design Objectives Plan for Entryway Corridors. (Page J-10) The entryways into Bozeman play a significant role in shaping attitudes toward our community. Bozeman has adopted special standards which apply to these areas. Updated in 2005, the design guidelines provide illustrated standards which help implement the purposes adopted by ordinance. Design and Connectivity Plan for North Seventh Avenue Corridor (Page J-11) The redevelopment and rehabilitation of the N. 7th Avenue corridor was the purpose of the formation of an urban renewal district. The corridor plan, prepared by Winter and 229 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 74 Company and adopted in 2006, provides guidance on the design character, opportunities, and challenges for redeveloping the corridor. A group of land owners within the district boundaries advises the City Commission and suggests a work plan each year to advance the plan. An emphasis is placed within the plan on improving pedestrian and bicycle circulation as well as character of different sections of the street corridor. 16: Implementation 16.2 Implementation Action Plan Funding Mechanisms (Page 16-3) - Bozeman has a longstanding policy to provide the maximum level of services, to the most citizens, in the most cost effective manner, with due consideration given to all costs – economic, fiscal, environmental, and social. In doing so, the city limits on-going expenditures to a level that can be supported with current revenues, uses one-time dollars to fund capital assets or other non- recurring expenditures, and annually adopts a 5year capital improvements plan for construction and maintenance of large city assets. User fees and charges are used, as opposed to general taxes, when distinct beneficiary populations or interest groups can be identified; they are more equitable, since only those who use the service must pay, thereby eliminating the subsidy provided by nonusers to users, which is inherent in general tax financing. The City also uses public/private partnerships, intergovernmental transfers, and private grants when available. Table 16-1 Implementation Policies and Actions (Pages 16-4 thru 16-18) Chapter 1, 3. Research and implement incentives and regulations and publicize existing incentives, in accordance with the Bozeman Community Plan, that encourage development within the City of Bozeman. 10, 14, 75, 81 Chapter 3, Land Use 9. Encourage infill and redevelopment which is respectful of its context. 4, 7, 21, 28, 61, 62 Chapter 3, Land Use 11. Continue programs which support adaptive reuse, reinvestment, and continued functional and aesthetic viability of the Historic Core. 22 Chapter 5, Historic Preservation 21a. Use and publicize incentives, such as, but not limited to, public infrastructure funding support and tax abatement, to encourage commercial and residential development or redevelopment of identified infill areas, including brownfields and the Historic Core. Chapter 6, Housing 28a. Review and revise as needed standards to infill development, redevelopment, and new development to provide clear guidance and mitigation of objective problems. Chapter 8, Economic Development 49. Support the creation and expansion of local businesses. 3, 77, 80 Chapter 8, Economic Development 49e. Maintain and seek to expand resources available through the City’s revolving loan fund and urban renewal districts. Chapter 8, Economic Development 49g. Increase awareness of existing economic and other benefits of and further develop incentives for locating and operating benefits within City limits. Chapter 8, Economic Development 53. Recognize sustainability as a component of economic development. 12 230 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 75 Identified implementation tools and strategies, including tax increment financing, which help to achieve the Bozeman Community Plan’s goals and objectives. Provides a foundation for programs as well as more detailed plans, such as urban renewal district plans with tax increment financing programs. Describes the use of alternative funding mechanisms when distinct beneficiary populations or interest groups can be identified and more equitably served (such as tax increment financing). Encourages development within the City of Bozeman. Encourages infill and redevelopment. Continues programs which support adaptive reuse and reinvestment. Encourages commercial and residential development or redevelopment of identified infill areas through the use of and publicizing of incentives, such as, but not limited to, public infrastructure funding support Supports standards for infill development and redevelopment. Supports the creation and expansion of local businesses. Maintains and seeks to expand resources available through urban renewal districts. Increases awareness of existing economic and other benefits of and further develop incentives for locating and operating within City limits. Recognizes sustainability as a component of economic development. Evaluation of the conformance of the Bozeman Midtown Urban Renewal District Plan with the implementation tools and strategies in the Bozeman Community Plan. The Bozeman Midtown Urban Renewal District Plan takes advantage of the urban renewal law offered by the State of Montana Code. The Bozeman Midtown Urban Renewal District Plan provides for the opportunity to use tax increment financing to assist with redevelopment and revitalization activities, and encourage the retention and growth of economic development. The Bozeman Midtown Urban Renewal District Plan supports the development of infrastructure that encourages urban renewal and economic development in the community. Growth Policy Future Land Use The growth policy provides a visual policy statement with the identification of the future land use pattern through maps and/or text of lands to help achieve the goals and objectives of the Bozeman Community Plan. The Bozeman Community Plan designates the core area along the North 7th Avenue Corridor starting from the north end as Industrial, Regional Commercial and Services, and Community Commercial Mixed Use. The majority of the adjacent neighborhoods are designated Residential, with a couple of small areas designated Parks, Open Space and Recreational Lands and Public Institutions. The description of the future land uses is as follows. A section of Bozeman Community Plan Future Land Use Map and Legend follows the future land use descriptions. Regional Commercial and Services. Bozeman is a retail, education, health services, public administration, and tourism hub and provides opportunities for these activities for a multi-county 231 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 76 region. Often the scale of these services is larger than would be required for Bozeman alone. Because of the draw from outside Bozeman, it is necessary that these types of facilities be located in proximity to significant transportation routes. Since these are large and prominent facilities within the community and region, it is appropriate that design guidelines be established to ensure compatibility with the remainder of the community. Opportunity for a mix of uses which encourages a robust and broad activity level is to be provided. Residential space should not be a primary use and should only be included as an accessory use above the first floor. Any development within this category should have a well integrated transportation and open space network which encourages pedestrian activity, and provides ready access within and to adjacent development. Community Commercial Mixed Use. Activities within this land use category are the basic employment and services necessary for a vibrant community. Establishments located within these categories draw from the community as a whole for their employee and customer base and are sized accordingly. A broad range of functions including retail, education, professional and personal services, offices, residences, and general service activities typify this designation. In the “center-based” land use pattern, Community Commercial Mixed Use areas are integrated with significant transportation corridors, including transit and non-automotive routes, to facilitate efficient travel opportunities. The density of development is expected to be higher than currently seen in most commercial areas in Bozeman and should include multi-story buildings. A Floor Area Ratio in excess of .5 is desired. It is desirable to allow residences on upper floors, in appropriate circumstances. Urban streetscapes, plazas, outdoor seating, public art, and hardscaped open space and park amenities are anticipated, appropriately designed for an urban character. Placed in proximity to significant streets and intersections, an equal emphasis on vehicle, pedestrian, bicycle, and transit circulation shall be provided. High density residential areas are expected in close proximity. Including residential units on sites within this category, typically on upper floors, will facilitate the provision of services and opportunities to persons without requiring the use of an automobile. The Community Commercial Mixed Use category is distributed at two different scales to serve different purposes. Large Community Commercial Mixed Use areas are significant in size and are activity centers for an area of several square miles surrounding them. These are intended to service the larger community as well as adjacent neighborhoods and are typically distributed on a one mile radius. Smaller Community Commercial areas are usually in the 1015 acre size range and are intended to provide primarily local service to an area of approximately one-half mile radius. These commercial centers support and help give identity to individual neighborhoods by providing a visible and distinctive focal point. They should typically be located on one or two quadrants of intersections of arterials and/or collectors. Although a broad range of uses may be appropriate in both types of locations the size and scale is to be smaller within the local service placements. Mixed use areas should be developed in an integrated, pedestrian friendly manner and should not be overly dominated by any single land use. Higher intensity employment and residential uses are encouraged in the core of the area or adjacent to significant streets and intersections. As 232 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 77 needed, building height transitions should be provided to be compatible with adjacent development. Industrial. This classification provides areas for the uses which support an urban environment such as manufacturing, warehousing, and transportation hubs. Development within these areas is intensive and is connected to significant transportation corridors. In order to protect the economic base and necessary services represented by industrial uses, uses which would be detrimentally impacted by industrial activities are discouraged. Although use in these areas is intensive, these areas are part of the larger community and shall meet basic standards for landscaping and other site design issues and be integrated with the larger community. In some circumstances, uses other than those typically considered industrial have been historically present in areas which were given an industrial designation in this growth policy. Careful consideration must be given to public policies to allow these mixed uses to coexist in harmony. Residential. This category designates places where the primary activity is urban density dwellings. Other uses which complement residences are also acceptable such as parks, low intensity home based occupations, fire stations, churches, and schools. High density residential areas should be established in close proximity to commercial centers to facilitate the provision of services and employment opportunities to persons without requiring the use of an automobile. Implementation of this category by residential zoning should provide for and coordinate intensive residential uses in proximity to commercial centers. The residential designation indicates that it is expected that development will occur within municipal boundaries, which may require annexation prior to development. The dwelling unit density expected within this classification varies between 6 and 32 dwellings per net acre. A higher density may be considered in some locations and circumstances. A variety of housing types can be blended to achieve the desired density. Large areas of single type housing are discouraged. In limited instances the strong presence of constraints and natural features such as floodplains may cause an area to be designated for development at a lower density than normally expected within this category. All residential housing should be arranged with consideration of compatibility with adjacent development, natural constraints such as watercourses or steep slopes, and in a fashion which advances the overall goals of the Bozeman growth policy. The residential designation is intended to provide the primary locations for additional housing within the planning area. Public Institutions. A variety of activities are undertaken in this land use classification. Schools are a dominant use including Montana State University. Other typical uses are libraries, fire stations, and publicly operated utilities. A significant portion of Bozeman’s employment occurs within this category. Parks, Open Space, and Recreational Lands. All publicly owned recreational lands, including parks, are included within this category, as well as certain private lands. These areas are generally open in character and may or may not be developed for active recreational purposes. This category includes conservation easements which may not be open for public use. 233 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 78 Figure 3.1: Future Land Use Map Section 234 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 79 Future Land Use Designations of the area included in the Bozeman Midtown Urban Renewal District to help achieve the Bozeman Community Plan’s goals and objectives. The Bozeman Community Plan designates the core area along the North 7th Avenue Corridor as Regional Commercial and Services, Community Commercial Mixed Use, and Industrial. The majority of the adjacent neighborhoods have a future land use designation of Residential, with a couple of small areas designated Parks, Open Space and Recreational Lands and Public Institutions. Regional Commercial and Services will be implemented by B-2 or UMU zoning districts. Community Commercial Mixed Use will be implemented by the B-1, B-2 or UMU zoning districts. Industrial land uses can be implemented by any one of the five industrial type zoning districts. Residential will be implemented by multiple zoning districts. Parks, Open Space and Recreational Lands are functions which can occur in any zoning district. Public Institutions can be implemented by the PLI zoning district, but is a function that can occur in any zoning district. Evaluation of the Bozeman Midtown Urban Renewal District Plan for Conformance with the Future Land Use Designations. The Bozeman Midtown Urban Renewal District Plan provides a plan for redevelopment of the existing commercially designated area to retain existing and attract new economic development. The Bozeman Midtown Urban Renewal District Plan does not suggest any revision to the existing future land use designations. Review of the zoning of the area included in the Bozeman Midtown Urban Renewal District for accordance with the Bozeman Unified Development Code The City adopted its first zoning ordinance in 1941. The current zoning ordinance, the Unified Development Code of the City of Bozeman, Chapter 38 of the Bozeman Municipal Code was originally adopted in 2005, with the most recent extensive amendment by Ordinance Number 1769 effective on December 28, 2009. The zoning of the area included in the Bozeman Midtown Urban Renewal District must be found to be in conformance with the Bozeman Community Plan. On October 20th, 2015 the City Planning Board reviewed the zoning of the area included in the Bozeman Midtown Urban Renewal District as follows in this section and found the zoning to be in conformance with the growth policy. In order to demonstrate that the area is zoned for uses implementing the growth policy, the following selections from the Bozeman Unified Development Code have been provided to demonstrate accordance of zoning within the area of the Bozeman Midtown Urban Renewal District to the Bozeman Community Plan. 235 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 80 ARTICLE 1. - IN GENERAL Sec. 38.01.040. - Intent and purpose of chapter. A. The intent of this unified development chapter is to protect the public health, safety and general welfare; to recognize and balance the various rights and responsibilities relating to land ownership, use, and development identified in the United States and State of Montana constitutions, and statutory and common law; to implement the city's adopted growth policy; and to meet the requirements of state law. B. It is the purpose of these regulations to promote the public health, safety and general welfare by: preventing the creation of private or public nuisances caused by noncompliance with the standards and procedures of this chapter; regulating the subdivision, development and use of land; preventing the overcrowding of land; lessening congestion in the streets and highways; providing adequate light, air, water supply, sewage disposal, parks and recreation areas, ingress and egress, and other public improvements; requiring development in harmony with the natural environment; promoting preservation of open space; promoting development approaches that minimize costs to local citizens and that promote the effective and efficient provision of public services; protecting the rights of property owners; requiring uniform monumentation of land subdivisions and transferring interests in real property by reference to a plat or certificate of survey (MCA 76-3-102). C. It is further the purpose of these regulations to: be in accord with the growth policy; securing safety from fire, panic, and other dangers; promoting public health, public safety, and the general welfare; facilitating the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements; having given consideration to ensuring the reasonable provision of adequate light and air, motorized and nonmotorized transportation systems, promoting of compatible urban growth, considering the character of the district and its peculiar suitability for particular uses, conserving the value of buildings, and encouraging the most appropriate use of land throughout the jurisdictional area (MCA 76-2-304). D. Further, to support the purposes of MCA 76-2-304 and 76-3-102, these regulations are intended to promote and to provide for the: 1. Orderly development of the city; 2. Coordination of streets within subdivided land with other streets and roads, both existing and planned; 3. Dedication of land for streets and roadways and for public utility easements; 4. Improvement of streets; 5. Adequate open spaces for travel, light, air and recreation; 6. Adequate transportation, water, drainage and sanitary facilities; 7. Minimization of unnecessary congestion; 8. Avoidance of unnecessary environmental degradation; 9. Encouragement of subdivision development in harmony with the natural environment; 10. Avoidance of danger or injury to health, safety or general welfare by reason of natural hazard or the lack of water, sewer, drainage, access, transportation or other public services; 11. Avoidance of excessive expenditure of public funds for the provision of public services; 12. Manner and form of making and filing of plats for subdivided lands; 13. Administration of these regulations, by defining the powers and the duties of approving authorities, including procedures for the review and approval of all subdivision plats; 236 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 81 14. Division of the city into districts with uniformly applicable standards for development within each district; 15. To establish standards for the development and use of land; 16. To establish procedures for the review and approval for the development and use of land; and 17. The establishment of all other requirements necessary to meet the purposes of this chapter. E. Pursuant to MCA 76-2-304, 76-1-605 and 76-1-606, these regulations are also intended to implement the goals and objectives of the city's adopted growth policy. In the case of a difference of meaning or implication between this chapter and the city's adopted growth policy, the growth policy shall control. ARTICLE 7. - ZONING DISTRICTS AND ZONING MAP Sec. 38.07.010. - Use districts designated, zoning map adopted. A. The city is divided into zones, or districts, as shown on the official zoning map which, together with all explanatory matter thereon, is adopted by this reference and declared to be a part of this chapter. B. For the purpose of this chapter, the city is divided and classified into the following use districts: R-S Residential Suburban District R-1 Residential Single-Household Low Density District R-2 Residential Two-Household Medium Density District R-3 Residential Medium Density District R-4 Residential High Density District R-O Residential-Office District RMH Residential Manufactured Home Community District B-1 Neighborhood Business District B-2 Community Business District B-3 Central Business District UMU Urban Mixed-Use District M-1 Light Manufacturing District M-2 Manufacturing and Industrial District B-P Business Park District PLI Public Lands and Institutions District NEHMU Northeast Historic Mixed-Use District NC Neighborhood Conservation Overlay District EO Entryway Corridor Overlay District CO Casino Overlay District REMU Residential Emphasis Mixed-use District 237 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 82 The majority of the land within the area of the Bozeman Midtown Urban Renewal District is zoned “B-2 Community Business District”, with adjacent land north of I-90 zoned “M-1 Light Manufacturing”, and the adjacent land south of I-90 classified for residential uses with districts including “R-3 Residential Medium Density”, “R-4 Residential High Density”, and “R-O Residential-Office”. The intent and purpose of each of these zoning districts is described below. ARTICLE 10. - COMMERCIAL ZONING DISTRICTS Sec. 38.10.010. - Intent and purpose. A. The intent and purposes of the commercial zoning districts are to establish areas within the city that are primarily commercial in character and to set forth certain minimum standards for development within those areas. The purpose in having more than one commercial district is to provide opportunities for a variety of employment and community service opportunities within the community, while providing predictability. There is a rebuttable presumption that the uses set forth for each district will be compatible with each other both within the individual districts and to adjoining zoning districts when the standards of this chapter are met and any applicable conditions of approval have been satisfied. Additional requirements for development apply within overlay districts. 2. The intent of the B-2 community business district is to provide for a broad range of mutually supportive retail and service functions located in clustered areas bordered on one or more sides by limited access arterial streets. ARTICLE 12. - INDUSTRIAL ZONING DISTRICTS Sec. 38.12.010. - Intent and purpose. A. The intent and purpose of the industrial zoning districts is to establish areas within the city that are primarily industrial in character and to set forth certain minimum standards for development within those areas. The purpose in having more than one industrial district is to provide opportunities for a variety of employment and community service functions within the community while providing predictability. There is a rebuttable presumption that the uses set forth for each district will be compatible with each other when the standards of this chapter are met and any applicable conditions of approval have been satisfied. Additional requirements for development apply within overlay districts. 1. The intent of the M-1 light manufacturing district is to provide for the community's needs for wholesale trade, storage and warehousing, trucking and transportation terminals, light manufacturing and similar activities. The district should be oriented to major transportation facilities yet arranged to minimize adverse effects on residential development, therefore, some type of screening may be necessary. ARTICLE 8. - RESIDENTIAL ZONING DISTRICTS Sec. 38.08.010. - Intent and purpose. A. The intent and purpose of the residential zoning districts is to establish areas within the city that are primarily residential in character and to set forth certain minimum standards for development within those areas. The purpose in having more than one residential district is to provide opportunities for a variety of housing types and arrangements within the community while providing a basic level of predictability. There is a rebuttable presumption that the uses set forth for each district will be compatible with each other when the standards of this chapter are met and any applicable conditions of approval have been satisfied. Additional 238 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 83 requirements for development apply within overlay districts. All development is subject to section 38.01.050. Residential density is correlated with many community goals and objectives that are contained in the city's adopted growth policy, as well as many standards and purposes of this chapter. Section 38.08.090 sets standards for minimum densities in residential districts which will advance these goals, objectives, and purposes. 4. The intent of the R-3 residential medium density district is to provide for the development of one- to five-household residential structures near service facilities within the city. It should provide for a variety of housing types to serve the varied needs of households of different size, age and character, while reducing the adverse effect of nonresidential uses. 5. The intent of the R-4 residential high density district is to provide for high-density residential development through a variety of housing types within the city with associated service functions. This will provide for a variety of compatible housing types to serve the varying needs of the community's residents. Although some office use is permitted, it shall remain as a secondary use to residential development. Secondary status shall be as measured by percentage of total building area. 6. The intent of the R-O residential-office district is to provide for and encourage the development of multihousehold and apartment development and compatible professional offices and businesses that would blend well with adjacent land uses. The primary use of a lot, as measured by building area, permitted in the R-O district is determined by the underlying growth policy land use designation. Where the district lies over a residential growth policy designation the primary use shall be non-office uses; where the district lies over a nonresidential designation the primary use shall be office and other nonresidential uses. Primary use shall be measured by percentage of building floor area. In addition to the zoning districts described above, portions of the Midtown area of Bozeman are also covered by “Bozeman Entryway Corridor Overlay District” and the “Neighborhood Conservation Overlay District”, and a couple of lots at the southeast edge are located within the Cooper Park Historic District. ARTICLE 17. - BOZEMAN ENTRYWAY CORRIDOR OVERLAY DISTRICT Sec. 38.17.020. - Intent and purpose. A. There are several arterial corridors entering the city that introduce visitors and residents alike to the city. The visual attributes of these roadways provide a lasting impression of the character of the city. It is the intent and purpose of this article to ensure that the quality of development along these corridors will enhance the impression and enjoyment of the community by guiding development and change, and by stimulating and assisting, in conjunction with other provisions of this chapter, improvements in signage, landscaping, access and other contributing elements of entry corridor appearance and function. B. It is the intent of this article to establish design criteria, standards and review procedures that will allow the city and its advisory boards and agencies to review and direct, in a fair and equitable manner, the development and redevelopment of future and existing properties and facilities within the entry corridors. The recommendations of the design review board or administrative design review staff shall be given careful consideration in the final action of the review authority. Sec. 38.17.030. - Application of entryway corridor provisions. 239 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 84 A. Entryway corridors shall be designated on the city's official zoning map. The provisions of this article shall be applied in addition to any other applicable regulations of this chapter. Specifically, these provisions shall be applied to all developments within such corridors as follows: 1. Class I. All development wholly or partially within 660 feet of the centerline of the following roadways: a. Interstate 90, within or adjacent to the city boundaries, measured from the centerline of the outside lanes of the opposing roadways and from the centerline of the access ramps; b. Interstate 90 frontage roads, within the city boundaries, whether or not they are designated frontage roads; c. U.S. 10, from the Interstate 90/North Seventh Avenue interchange west to the city boundaries; d. U.S. 191, west from Ferguson Road to the city boundaries; e. Nineteenth Avenue, north from Durston Road to the North 19th Avenue/Interstate 90 interchange, exclusive of the east side between Durston Road and the south boundary of Covered Wagon Mobile Home Park; and f. Oak Street, west from North Seventh Avenue to North Nineteenth Avenue. 2. Class II. All development wholly or partially within the lesser of one city block or 330 feet of the centerline of the following roadways, with the exception of residentially zoned lots (no exception for R-O district) that have no frontage upon said roadways: a. Seventh Avenue, south from the Interstate 90 interchange to Main Street; b. Nineteenth Avenue, south from Durston Road to the city boundary, and the east side of Nineteenth Avenue, between the south boundary of Covered Wagon Mobile Home Park and Durston Road; c. Main Street, east from Broadway to Interstate 90; d. Main Street, west from Seventh Avenue to Ferguson Road; e. Rouse Avenue and State Primary 86 (Bridger Canyon Road) from Tamarack north and cast to the city boundary; f. Oak Street, west from Nineteenth Avenue to the east edge of Rose Park; and g. Oak Street, east from Seventh Avenue to Rouse Avenue. ARTICLE 16. - NEIGHBORHOOD CONSERVATION OVERLAY DISTRICT Sec. 38.16.010. - Intent and purpose. A. All new construction, alterations to existing structures, movement of structures into or out of the neighborhood conservation overlay district, hereinafter referred to as the conservation district, or demolition of structures by any means or process will be subject to design review unless specifically exempted. The recommendations of the design review board or administrative design review staff shall be given careful consideration in the final action of the review authority. B. This article defines and sets forth standards which apply to the conservation district. C. The intent and purpose of the conservation district designation is to stimulate the restoration and rehabilitation of structures, and all other elements contributing to the character and fabric of established residential neighborhoods and commercial or industrial areas. New construction will be invited and encouraged provided primary emphasis is given to the preservation of existing buildings and further provided the design of such new space 240 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 85 enhances and contributes to the aesthetic character and function of the property and the surrounding neighborhood or area. Contemporary design will be encouraged, provided it is in keeping with the above-stated criteria, as an acknowledged fact of the continuing developmental pattern of a dynamic, changing community. The neighboring community shall be provided notice and opportunity to comment upon the proposed property improvements in accordance with article 40 of this chapter. In addition, aggrieved persons shall have the right to appeal any design review decision made under the provisions of this article, in accordance with article 35 of this chapter. D. In view of the fact that most of the area included within the boundaries of the conservation district was developed and built out prior to the adoption of zoning and contemporary subdivision regulations, the construction, development pattern and range of uses is highly diverse and may not be in compliance with conventional regulatory requirements. This article recognizes that this diversity is a major contributing element of the historic character of these neighborhoods or areas. The provisions of this article shall be applied in a manner that will encourage the protection and enhancement of the many diverse features for future generations. E. The conservation district boundary is largely coterminous with the area surveyed in the effort that led to the listing of nine historic districts and 40 additional landmark structures in the National Register of Historic Places, and includes the nine designated historic districts and 40 individual landmarks. This article sets forth the means of protecting and enhancing the conservation district. F. It is further the purpose of the conservation district designation to protect and enhance neighborhoods or areas of significant land planning or architectural character, historic landmarks or other built or natural features for the educational, cultural, economic benefit or enjoyment of citizens of the city. It will be the policy and responsibility of the administrative entities of this article to: 1. Protect, preserve, enhance and regulate structures, archaeological or cultural sites, and areas that: a. Are reminders of past eras, events or persons important in local, state or national history; b. Provide significant examples of land planning or architectural styles, or are landmarks in the history of land planning and architecture; c. Are unique or irreplaceable assets to the city and its neighborhoods; d. Provide examples of physical surroundings in which past generations lived; or e. Represent and express the unique characteristics of small agricultural-based, western city developmental patterns; 2. Enhance property values through the stabilization of neighborhoods and areas of the city, increase economic and financial benefits to the city and its inhabitants, and promote tourist trade and interests; 3. Develop and maintain the appropriate environment for buildings, structures, sites and areas, that reflect varied planning and architectural styles and distinguished phases of the city's history and prehistory; 4. Stimulate an enhancement of human life by developing educational and cultural dimensions, which foster the knowledge of the city's heritage, and cultivate civic pride in the accomplishments of the past; 241 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 86 5. Seek to maintain and enhance the many private and public elements that are unique to the fabric, theme and character of each neighborhood and area, including, but not limited to, lighting, pathways, street trees, natural areas and other features that may, from time to time, be identified by the citizens and property owners of neighborhoods, areas and subsections thereof; and 6. Provide the neighboring community with notice and opportunity to comment upon the proposed property improvements in accordance with article 40 of this chapter, with the exception of certain sketch plan applications with potentially little neighborhood impact, and to further provide aggrieved persons with the right to appeal review decisions made under the provisions of this article, in accordance with article 35 of this chapter. Sections of the City of Bozeman Zoning Map which encompasses the area of the Bozeman Midtown Urban Renewal District are shown below. 242 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 87 City of Bozeman Zoning Map Section 243 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 88 Conservation Overlay and Historic Districts Zoning to help implement the Bozeman Community Plan. • A purpose of the Bozeman Unified Development Code is to implement the goals and objectives of the Bozeman Community Plan; the city’s adopted growth policy. • The majority of the land within the core area of the Bozeman Midtown Urban Renewal District is zoned “B-2 Community Business District” to provide for a broad range of mutually supportive retail and service functions. 244 Bozeman Midtown Urban Renewal District Plan - December 2015 Page 89 • The land adjacent to the commercial core and south of I-90 within the area of the Bozeman Midtown Urban Renewal District is zoned for a variety of residential uses and densities, with zoning districts including “R-3 Residential Medium Density”, “R-4 Residential High Density”, and “R-O Residential-Office”. • The land adjacent to the commercial core and north of I-90 is zoned “M-1 Light Manufacturing”. Evaluation of the Bozeman Midtown Urban Renewal District Plan for Accordance of Zoning with Bozeman Community Plan. • The Bozeman Midtown Urban Renewal District Plan supports the purposes of the Bozeman Unified Development Code. • The Bozeman Midtown Urban Renewal District Plan supports “retail and service use” as described by the Bozeman Unified Development Code. • The Bozeman Midtown Urban Renewal District Plan provides a plan for redevelopment of the existing commercially designated area to eliminate blight, and retain existing and attract new economic development. • The Bozeman Midtown Urban Renewal District Plan does not suggest any revision to the existing zoning classifications. Conclusions 1. The Bozeman Midtown Urban Renewal District Plan has been evaluated against the relevant goals and objectives of the Bozeman Community Plan, and the Bozeman Midtown Urban Renewal District Plan is in conformance with the Bozeman Community Plan. 2. The zoning in the area of the Bozeman Midtown Urban Renewal District has been evaluated against the Bozeman Community Plan, and the zoning in the area of the Bozeman Midtown Urban Renewal District is in accordance with the Bozeman Community Plan. 245 ACTION PLAN August 2017 246 Bozeman Urban Renewal Action Plan August 2017 Acknowledgements Bozeman City Commission Mayor Carson Taylor Deputy Mayor Cynthia Andrus Commissioner Chris Mehl Commissioner I-Ho Pomeroy Commissioner Jeff Krauss Midtown Urban Renewal Board Commissioner Jeff Krauss, Commission Liaison Andrew Cetraro Susan Fraser Austin Rector Carl Solvie Bill Fogarty Kevin Cook Scott Hedglin Josh Palmer Nick Rodgers Economic Development Department Brit Fontenot David Fine Prepared By Leland Consulting Group, Inc. 610 SW Alder Street, Suite 1200 Portland, Oregon 97205 www.lelandconsulting.com In partnership with Sanderson Stewart, A&E Architects, Rick Williams Consulting, and DHM Design 247 Bozeman Urban Renewal Action Plan August 2017 Table of Contents Introduction ........................................................................................................................................................ 1 Executive Summary .......................................................................................................................................... 2 Strategic Infrastructure ................................................................................................................................. 2 Incentives ........................................................................................................................................................ 3 Targeted Private Investment ....................................................................................................................... 4 Background ........................................................................................................................................................ 5 Establishment of the Urban Renewal District and Plan ......................................................................... 5 Design and Connectivity Plan for North 7th Avenue Corridor ............................................................. 6 B-2M Zone and New Parking Minimums .................................................................................................... 7 Opportunities and Constraints ........................................................................................................................ 8 Market Trends ................................................................................................................................................. 8 Barriers to Private Development ............................................................................................................... 11 Embrace Infill Development ...................................................................................................................... 12 Midtown District Vision .................................................................................................................................... 14 Why Midtown? ............................................................................................................................................. 15 District Vision ................................................................................................................................................. 15 District Assets................................................................................................................................................. 16 District Opportunities ................................................................................................................................... 17 Future Development ................................................................................................................................... 20 Action Plan Implementation ......................................................................................................................... 26 Strategic Infrastructure ............................................................................................................................... 26 Incentives ...................................................................................................................................................... 27 Targeted Private Investment ..................................................................................................................... 28 Attachment A: Site Concepts ........................................................................................................................ 1 Attachment B: Midtown Project List .............................................................................................................. 2 248 Bozeman Urban Renewal Action Plan August 2017 / 1 Introduction The City of Bozeman is a university town with a vibrant downtown, growing industries, and immediate access to mountain and outdoor activities. It is a magnet for young talent and families, and is therefore projected to continue to grow at an annual rate of 4.2 percent. Understandably the community wants to be thoughtful about this growth in order to manage the cost of living, especially for housing, and retain its small town appeal. At the same time, the City desires more compact form with higher densities to reduce congestion and encourage active transportation uses, which reduce environmental impacts. Focused redevelopment of the Midtown District, with a deliberate emphasis on new, urban density housing construction, is an important strategy to achieve these community goals regarding overall growth. Redevelopment of underutilized areas, such as the Midtown District, is challenging compared to traditional “greenfield” development: new construction on vacant land that typically involves one developer on one large parcel with minimal constraints such as existing buildings or challenging road connections. Due to the difficult nature of infill development, public and private collaboration is critical to achieve results. Ideally, the public partner will identify and alleviate barriers and risk, and the private partner will invest in the area and increase property values and provide desired services. This Action Plan provides guidelines and actions for the City to implement their part of the partnership and garner the desired private infill development within the District. 249 Bozeman Urban Renewal Action Plan August 2017 / 2 Executive Summary The intent of this Plan is to attract targeted private investment by leveraging the market potential of the Midtown District, and removing barriers to development through strategic infrastructure investments and incentives. This is especially important for this District as the city does not own any property and is reliant on cooperation and collaboration with property owners to realize the vision for this area. The following information details the type of infrastructure anticipated and the type of private investment that is desired. Strategic Infrastructure One of the most important roles for the city is to construct strategic infrastructure projects that benefit several property owners and the broader community. This is especially important for infill development where the perceived value of these types of properties is that the infrastructure (sewer, water, roads) are built to current standard as there was once a use on the property. Proactively determining the status of infrastructure quality, if upgrades are required and the cost, is necessary to engage interest in development. A detailed list of identified projects within the Midtown District are provided in Attachment B. The projects are separated into two categories: Regional and Private Development as they each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a direct message to developers regarding the level of investment the city is willing to make in this District. Regional Investments The proposed regional investments are projects within the District that benefit the broader community through the provision of key transportation connections or amenities. These projects meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2) improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects can occur independent of private property owner engagement. While these projects serve the broader community, they also indirectly incentivize private development with the overall improvement of the District. Private Development Investments The proposed private development infrastructure is identified through different zones of private property that will benefit from the necessary infrastructure upgrades. There is no prioritization of the improvements as it is dependent on private party engagement, which can’t be anticipated. However, by determining these projects in advance, staff can clearly communicate to private property owners the type and cost of infrastructure that would be built that serves as direct incentive for them to consider redevelopment of their property. The City should only make the significant infrastructure investments when it is clear that the developer can’t reasonably construct the project without support from the City. This is often referred to as a “but for” argument based on transparent financial information reflecting costs and revenues from the project. At the same time, through this transparent partnership, the City can work with the property owner to obtain right-of-way or rights to construct a public facility that may be necessary to make the desired improvements. In all public-private partnerships this transparent information is necessary to ensure sound community investments. 250 Bozeman Urban Renewal Action Plan August 2017 / 3 In addition, the infrastructure investments should only occur when the private investment is as certain as possible. If the City builds the infrastructure prior to private investment, the infrastructure upgrades are no longer perceived by the private party as an “incentive” but as the basic city services that understandably were presumed to be in place. Investment Timing The urban renewal statutes allow for the bonding of substantial public projects within 14 years of establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission should be cognizant of this timing when evaluating project investments and in communications with private developers. To leverage this financing opportunity, staff should determine projects to consider for bonding by Q1 2019. Incentives Infrastructure Projects Infrastructure projects can often present a significant cost for developers. Infill projects are especially complex as often a small lot will face outsized regional infrastructure costs due to “upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can off-set a significant cost barrier of a regional project that is needed to allow the redevelopment of an individual lot to move forward. See Attachment B for a detailed list of recommended projects and costs based on specific site analysis case studies within Midtown and collaboration with public works. Off-Set Project Costs Targeted incentives can close the financial gap in making a project move forward. As discussed previously, City staff and private developers should work together in a transparent manner to identify that an incentive addresses a clear “but for” need of support to off-set costs to encourage the targeted private investment for this area. Future development providing much needed affordable housing should especially be considered to receive incentives. An allocation of incentives for SDC off-sets and demolition costs have been included with the list of projects in Attachment B. Streamlined Permitting Streamlined permitting is always cited as a top incentive for developers to attract investment. As discussed, infill development consists of risks regarding untested markets and uncertainty regarding infrastructure requirements. Both risks can result in costs not anticipated by a developer when initially pursuing a project. City staff can provide critical support in removing these uncertainties by providing transparent information as early as possible regarding infrastructure needs, as well as unified direction regarding desired building design and density. Creating a “Midtown team” of staff from various departments provides a consistent group of staff that comprehensively understands the infrastructure, transportation and building design issues in the area. Such a team can serve as a powerful resource to proactively achieve the desired development in collaboration with the developer, and sends a clear signal that this District is a priority to the community. 251 Bozeman Urban Renewal Action Plan August 2017 / 4 Targeted Private Investment The overall objective of the Midtown Urban Renewal District is to create a more vibrant place with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals of the most recently adopted Urban Renewal Plan include: • Promote Economic Development • Improve Multimodal Transportation • Improve, Maintain, and Support Innovation in Infrastructure • Promote Unified, Human Scale Urban Design • Support Compatible Urban Density Mixed Land Uses To achieve these goals, targeted future development should include the following elements: • Infill. The intent of urban renewal is to remove blight to improve an area for the entire community benefit. Remodeling of existing structures or infill of underutilized lots is the priority of this Plan. As discussed, infill development is more challenging than vacant greenfield development and warrants focused investment of staff time and resources. • Increased building density. Increased building density increases the number of people in the District, which helps create the desired active pedestrian environment. More density of buildings grouped together in districts is especially desired to encourage pedestrians to explore adjacent buildings. Buildings that are separated by large parking area or vacant lots will impede pedestrian movement. • Encourages multimodal transportation. New projects should provide amenities such as adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the Urban Renewal District should invest in infrastructure projects such as bike lanes and signals or covered bus stops to make alternative transportation options visible, safe, and desirable. • Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented environment the District must consist of uses that are a frequent destination by residents. Retail amenities that are experience based such as restaurants or ice creams shops are desired because they generate activity and are more resilient to emerging ecommerce trends. Such amenities will also attract more housing investment. • Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a specific use that is desired. The Midtown District zoning is intended to accommodate more dense housing projects with potential access to retail amenities nearby. 252 Bozeman Urban Renewal Action Plan August 2017 / 5 Background The Midtown District consists of property along the North 7th Avenue corridor between Main Street at the south end of the District and the railroad tracks to the north. The City has taken deliberate steps to foster the infill and redevelopment of properties along the North 7th Avenue corridor. The current Action Plan builds off this prior work to further focus City efforts to continue to realize investment in the District. Establishment of the Urban Renewal District and Plan In November 2006, City Commission adopted an ordinance to create the North 7th Avenue Urban Renewal District and adopted the North 7th Avenue Urban Renewal District Plan with a provision for tax increment financing, to be calculated using a base year of 2006. In November 2015, the City adopted a revised Urban Renewal Plan including the expanded urban renewal areas and renamed the district to Midtown. The Plan also adopted the following goals that set the foundation for the envisioned development in the District: • Promote Economic Development • Improve Multimodal Transportation • Improve, Maintain, and Support Innovation in Infrastructure • Promote Unified, Human Scale Urban Design • Support Compatible Urban Density Mixed Land Uses 253 Bozeman Urban Renewal Action Plan August 2017 / 6 Design and Connectivity Plan for North 7th Avenue Corridor The Connectivity Plan adopted in 2006 defines specific gateway treatments and streetscape improvements to balance the needs of pedestrians, bicyclists, and automobile users along North 7th Avenue. This work has largely been implemented between Oak and Durston with improved or new sidewalks and distinct streetlights that provide an identifying definition to the District. The remaining section of North 7th Avenue between Durston Road and Main Street will also include enhanced paving and design as shown in the image at right. This streetscape defines the anticipated modern design of the corridor which is distinct from the more historic feel of the downtown district. The low- maintenance hardscape design is appropriate for winter months to accommodate snow removal while keeping the streetscape inviting during the warmer months. Future streetscape improvements south of Durston Road. The modern paving and furniture reflect the mid-century design of the original development along the corridor. Completed streetscape improvements north of Durston Road. The blue streetlights reflect ties to Montana State University. 254 Bozeman Urban Renewal Action Plan August 2017 / 7 B-2M Zone and New Parking Minimums The City created the B-2M zoning designation during the first phase of the update of the Unified Development Code (UDC) in the spring 2016. The previous B-2 zoning did not encourage the redevelopment of the Midtown corridor in the manner envisioned in the area’s adopted neighborhood plan, the Design and Connectivity Plan for the North 7th corridor (2006). This plan specifically called for mixed-use development with “commercial services on the main level fronting the corridor, with residential uses above and behind.” The previous B-2 zoning contained yard and setback provisions that made the development of buildings fronting the street difficult, especially given the shallow lots along the corridor. The new B-2M code allows new buildings to be built near the street, encourages ground floor commercial, and requires that parking occur on the side or the rear of structures. The goal is to enhance the pedestrian experience along the corridor by reducing the amount of parking in front of and around buildings. These changes were consistent with two goals of the 2015 Midtown Urban Renewal Plan included promoting “Human Scale Urban Design” and supporting “Urban Density Mixed Land Uses.” The City Commission will soon consider reduced parking minimums for the B-2M zone that remove a barrier to development and foster the envisioned development form throughout the District. 255 Bozeman Urban Renewal Action Plan August 2017 / 8 Opportunities and Constraints The Midtown District is ripe for redevelopment as identified in the market trends, and is why this Action Plan was created. While the trends bode well for Midtown, there are current barriers that can be addressed to incentivize new private investment. Finally, it should be recognized that infill development is challenging and must be approached differently than traditional greenfield development in order to achieve the goal of redevelopment throughout the District. Market Trends There are several market trends driving infill development across the country. These trends, outlined below, suggest there is a strong opportunity for development within the Midtown District. Walkability Current market trends indicate that people of all ages desire access to an urban lifestyle with housing, restaurants, entertainment and retail within pedestrian proximity of each other. This urban lifestyle does not mean that an entire community must conform to urban densities. What is important is that some element of an urban lifestyle through a healthy Main Street, traditional downtown, or denser town centers in suburbs is provided. This type of urban lifestyle is often measured by developers using a “walk score” that analyzes population density and road metrics such as block length and intersection density, and access to amenities to summarize pedestrian friendliness. As indicated below, the Midtown District is more pedestrian friendly than many parts of Bozeman and can currently cite Walk Scores of 91 at its southern end and 51 at its northern end. Considering the limited amenities, such as restaurants, grocery stores and retail, this relatively strong score is likely based on the existing block configurations adjacent to the North 7th corridor. This suggests that with targeted investment of housing and amenities, the Midtown District is ripe for redevelopment into the type of environment desired by the market. Commute Patterns In addition to this desired urban lifestyle, people are wanting a shorter commute and often choose to live and work in the same area if possible. Emphasizing this trend is the preference of many Millennials to not drive if they don’t have to. As reported in Urban Land Institute (ULI) Emerging Trends 2016, miles traveled by car for those people 34 years old or younger are down 23 percent nationally. Locally, the average miles travelled by any mode – walking, driving, biking, or taking transit – is the lowest for Millennials. Figure 1. Walk Score® Map Source: Walk Score® 256 Bozeman Urban Renewal Action Plan August 2017 / 9 Bozeman commute patterns reflect this market trend. Table 1 shows there is an increase of employment and residents within the city between years 2010 and 2014. What is remarkable is the minimal increase in people commuting into Bozeman for a job and living outside the city. Instead there is an increase in people living and working in Bozeman, as well as the number of people living in Bozeman but working outside the city. What this suggests is that the workforce prefers to live in Bozeman. Therefore, if an employer locates a business within Bozeman they have a competitive advantage in providing a desired location that reduces commute times and congestion and more access to local sector businesses. This is an opportunity for future development within the Midtown District. Table 1. City of Bozeman Commute Patterns 2010 2014 Percentage Change Employment in City 24,384 27,317 11% Employed Individuals Living in City 13,737 18,266 25% Commute into City for Employment and Live Outside 16,370 16,637 2% Live and Work in City 8,014 10,680 25% Live in City but Leave for Employment 5,723 7,585 25% Source: U.S. Census LEHD, Leland Consulting Group. Affordable Lifestyle (Housing and Transportation) Demand for housing at affordable prices will continue to be a significant issue for the City of Bozeman. More housing, with a range of options, must be provided. In addition, the City can provide the crucial infrastructure to foster affordable lifestyle (not just affordable housing) through active transportation investments. With a focused effort to promote infill housing, employment, and retail amenities and services along corridors, individuals are less compelled to own an automobile, which translates into $8,5601 in personal annual savings. The Midtown District has the potential infrastructure network and site locations to accommodate this type of development which would address this significant market demand for affordable housing. 1 American Automobile Association, June 2016. 257 Bozeman Urban Renewal Action Plan August 2017 / 10 Student Housing The National Center for Education Statistics predicts college enrollment in the U.S. will reach 19.8 million students by 2025, an increase of 14 percent from its 2014 enrollment of 17.3 million. Montana State University (MSU) reflects this trend through their historic growth that is projected to continue. Figure 2. Montana State University Student Headcount Source: MSU, Leland Consulting Group. Based on this growth, “it would be pretty hard to overbuild in most markets, there is such strong demand,” says Nat Kunes, vice president of product management at AppFolio Inc., a provider of property management software. “In most markets you could double the amount and not overbuild.”2 What investors find attractive in student housing are the returns relative to conventional apartments because the occupancy rates run higher. 2 National Real Estate Investor, Demand for Student Housing Looks Strong for 2017, November 21, 2016. 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016258 Bozeman Urban Renewal Action Plan August 2017 / 11 The Midtown District is well positioned to meet the demand of this student housing. As indicated in Figure 3, sites within the Midtown District are immediately adjacent to 8th Avenue, which is the main bike corridor to MSU. Furthermore, the sites are not that much further than the location of new student housing to the south of MSU, with the distinct advantage of being much closer to amenities in downtown or the Cannery District. Barriers to Private Development While there have been plans in place and improvements made to encourage development within the area, results have been limited. Areas such as Midtown often do not receive private development interest due to market and physical barriers that must be overcome. Specific barriers pertaining to the Midtown District include: Market barriers: • Unknown public infrastructure requirements and uncertain costs • Current market leases and rents within District are not shown to align with costs for new construction • Minimum parking code requirements that exceed actual demand and need • Absentee or disengaged property owners offer limited sites for redevelopment Physical barriers: • The policies and approach of the Montana Department of Transportation impede the construction of high-quality, human-scale urban design features for the North 7th corridor • Poor multimodal connectivity • Lack of new mixed-use development, especially residential, to generate activity Source: Leland Consulting Group Figure 3. Student Housing Location Opportunity 259 Bozeman Urban Renewal Action Plan August 2017 / 12 • Dangerous pedestrian intersections • No unifying theme as a gateway to city Embrace Infill Development Communities across the country over the past few decades have traditionally grown through “greenfield” development: new construction on vacant land. This type of development typically involves one developer with minimal significant development constraints such as existing buildings, challenging road connections, or potential site contamination. Development of vacant land with minimal encumbrances has allowed for new growth to occur in a relatively straight-forward manner with less risk, and why it has typically been the preferred form of development. This development pattern is changing due to growth trends that are pulling residents and employees back toward urban centers, and communities that desire a more resilient development form that thoughtfully expands utility services. While this repurposing of underutilized land benefits a community with an improved tax base and modern development patterns, it is extremely challenging to actualize due to the nature of infill development in contrast to greenfield development. City staff should embrace the following mindset to foster infill development. Build Partnerships Relationships and trust are the key ingredient to realizing infill development. Fortunately, Bozeman staff embraces this philosophy. Direct outreach (not flyers or emails) with property owners, developers, and architects to foster connections, opportunities, and strategic investments is important. Build Infrastructure In building partnerships, City staff can hone in on key infrastructure improvements that are impeding development. This is especially important for infill development where the perceived value of these types of properties is that the infrastructure (sewer, water, roads) are built to current standard as there was once a use on the property. Proactively determining the status of infrastructure quality, if upgrades are required and the cost, is necessary to engage interest in development. Building this public infrastructure that will benefit the developer as well as surrounding properties is extremely valuable to developers. Make Strategic Investments The City should only make the significant infrastructure investments when it is clear that the developer can’t reasonably construct the project without support from the City. This is often referred to as a “but for” argument based on transparent financial information reflecting costs and revenues from the project. At the same time, through this transparent partnership, the City can work with the property owner to obtain right-of-way or easements that may be necessary to make the desired improvements. In all public-private partnerships this transparent information is necessary to ensure sound community investments. In addition, the infrastructure investments should only occur when the private investment is as certain as possible. If the City builds the infrastructure prior to private investment, the infrastructure upgrades are no longer perceived by the private party as an “incentive” but as the basic city services that understandably were presumed to be in place. 260 Bozeman Urban Renewal Action Plan August 2017 / 13 Have Patience The community needs to understand that development is a risky endeavor. The term “catalyst” development is rarely heard by a developer as an opportunity, but instead as the first project going into an untested market. Developers must make a return on investment (ROI) on a project, otherwise there is no reason to proceed. Redevelopment of existing buildings is always the first form of investment in an area such as Midtown because it has the most minimal risk to generate an ROI. Once these development pioneers begin to create energy and increased awareness of opportunity, additional investment will occur. Due to the improved environment and demand, eventually tenants will be willing to pay the necessary rents for residential and commercial spaces that will produce enough revenue for a developer to build new construction. In addition, the type of construction will vary in cost. Early phases of two to three-story buildings and adaptive reuse is typical for entry market development. Eventually mid-rise projects of five- story with commercial on the ground floor will emerge. Finally, in more urban environments, high- rise construction will be built with proven rents and adequate amenity and transportation infrastructure to off-set the need to provide parking and off-set costs. Figure 4 shows how this development phasing emerged in Portland, Oregon. Figure 4. Phasing of Infill Development: Pearl District, Portland, Oregon Source: Leland Consulting Group 261 Bozeman Urban Renewal Action Plan August 2017 / 14 Midtown District Vision The Midtown District surrounds North 7th Avenue: a post-WWII auto-oriented arterial road under the jurisdiction of Montana DOT. The District is in the northeast portion of the city in between Interstate 90 and Main Street. North 7th Avenue originally served as the northern gateway into the city and is home to some mid-century motels that lined the corridor for tourists. Because of North 7th Avenue’s classification as a highway, it is a wider roadway that is intended to facilitate automobile movement. The intent of the Midtown District vision is to leverage the current design as an asset that will accommodate the scale of higher building densities. In addition, the roadway should remain a more auto- oriented facility with parallel parking that accommodates pedestrian uses with wider sidewalks and key crossings with “bump-outs.” Bike lanes on parallel routes such as 8th and 5th Avenues will be more attractive to the biking community and remove conflicts between auto and bike traffic. Figure 5. Midtown District 262 Bozeman Urban Renewal Action Plan August 2017 / 15 Why Midtown? The southern end of the Midtown District intersects with Main Street, which serves the traditional downtown core of the city. The Main Street area is highly desirable for housing, hotel, and commercial activity and is reaching peak redevelopment capacity. As such, growth opportunities and demand are spreading toward the Midtown District, especially at the southern end of the District. At the same time, the Midtown District is surrounded by an established and historic neighborhood with excellent street connectivity and walk score that ties into North 7th Avenue. Beyond the positive surrounding neighborhoods and commercial area impacts, the Midtown District has a distinct character that should be embraced and attributes that make it a unique place for Bozeman residents. The following local assets should be recognized and incorporated as development occurs to make Midtown a defined area with a cohesive character that builds upon Bozeman genuine brand. Investors are wisely seizing this authentic quality and adapting existing uses into modern amenities that are highly desired and provide significant activity and energy along the corridor. Rainbow Hotel developer Dean Folkvord understands that “one thing happens at a time, and it might take 10 years, but the investment is going to happen on North Seventh”.3 District Vision The Midtown District embraces its past while it hosts new opportunities. It is a hub for entertainment, business, amenities and residents wanting close connections to MSU and downtown. Midtown is an authentic district for active and engaged Bozeman community members. 3 Bozeman Daily Chronicle, Rainbow Motel changes hands, set for revamp, August 2016. Rainbow Hotel currently under renovation and scheduled for completion in Winter 2017. 263 Bozeman Urban Renewal Action Plan August 2017 / 16 District Assets The following assets define the Midtown District and shape the opportunities for future development. Authentic Midtown has a unique mid-century heritage with community icons such as Haufbrau, Rainbow Hotel, and the Lewis and Clark Hotel that give the District distinct character. Iconic Signage Walkable Midtown is surrounded by urban neighborhoods with tree lined streets that invite residents to walk and bike to the District. New sidewalks on North 7th Avenue will encourage activity on the street. West Lamme Street Dynamic Midtown is home to the BMX Park and quick access to Story Mill Trail. Residents within Midtown don’t drive to recreation spots, they bike there. Alter Cycle 264 Bozeman Urban Renewal Action Plan August 2017 / 17 Community Whittier Elementary School is in the heart of Midtown and connects the District to surrounding neighborhoods. Whittier School Classroom Local Gathering Place Aspen Street is an emerging entertainment district that provides an accessible alternative and alleviates peak demand pressure on downtown. Connecting Aspen Street, the BMX Park and the Fairgrounds with targeted improvements creates an entertainment destination for the community. BMX Park District Opportunities Amenities and Sites The Midtown District is poised as a place for families to gather, business to emerge, and young professionals and students to live. As shown in the Opportunities Map there are series of upcoming investments that will enhance connectivity, invite pedestrian activity, and make Midtown the place for locals to gather. The potential development sites identified on the map consist reflect interest property owners willing to explore development opportunities. The phasing is only based on level of interest and is not intended to prescribe how development will occur. See Attachment A for specific site opportunities and preliminary market assessments for private investment. 265 Bozeman Urban Renewal Action Plan August 2017 / 18 Figure 6. Midtown Opportunities Map Source: Leland Consulting Group 266 Bozeman Urban Renewal Action Plan August 2017 / 19 Safe Connections In order to realize the envisioned pedestrian activity between surrounding neighborhood and emerging amenities within the Midtown District, safe pedestrian connections must be built. By investing in new sidewalks to complete connections and improving the safety at key intersections this will be achieved. The Bozeman school district has identified where these improvements need to occur, and are included in the list of projects recommended for funding in the Action Plan. Figure 7.Whittier School Walking Map Source: Alta Planning and Design 267 Bozeman Urban Renewal Action Plan August 2017 / 20 Future Development As investment in the Midtown District occurs, it is anticipated that it will manifest in more modern design as opposed to the more historic nature of the downtown district. Additionally, the wider width of North 7th Avenue will accommodate larger scale buildings and make the pedestrian experience along the corridor more inviting. Images of anticipated building design and form are provided below. Building Design North 7th Avenue is a classic post-WW II corridor designed for the automobile and hosts mid- century architecture and signage reflecting that era. It is anticipated that the Midtown corridor will continue to embrace this history with a more modern design as represented in the following renderings. Rainbow Motel: Remodel, Love Schack Architecture Gallatin Valley Furniture: Remodel, Bechtle Architects 268 Bozeman Urban Renewal Action Plan August 2017 / 21 City Brew: New Construction, A&E Architects SOBO Lofts: New Construction, Intrinsik Architecture Urbaine Home: Adaptive reuse of former auto-body shop 269 Bozeman Urban Renewal Action Plan August 2017 / 22 Building Form For purposes of conveying the potential building from along North 7th Avenue, the following images, prepared by DHM Design, are focused between Durston Road and Main Street where the enhanced streetscape will occur. Proposed developments are located on sites where property owners have conveyed an interest in future development. As described earlier in the Plan, early development will likely consist of renovations or lower density new construction. All proposed development is designed to maximum densities for purposes of understanding the full scale of development that could occur in the District. This maximum build-out is the desired vision to meet housing and transportation goals, as well as creating an active and vibrant District. 270 Bozeman Urban Renewal Action Plan August 2017 / 23 Existing Conditions Maximum Density Build-Out of Corridor 271 Bozeman Urban Renewal Action Plan August 2017 / 24 Maximum Density (four to five story + renovation) with location of perspective for following image North 7th Avenue looking north, Villard Street is in the next intersection 272 Bozeman Urban Renewal Action Plan August 2017 / 25 Intersection of Main Street and North 7th Avenue looking north Bozeman 7th Avenue Development Study 273 Bozeman Urban Renewal Action Plan August 2017 / 26 Action Plan Implementation The intent of this Plan is to attract targeted private investment by leveraging the market potential of the Midtown District, and removing barriers to development through strategic infrastructure investments and incentives. This is especially important for this District as the city does not own any property and is reliant on cooperation and collaboration with property owners to realize the vision for this area. The following information details the type of infrastructure anticipated and the type of private investment that is desired. Strategic Infrastructure One of the most important roles for the city is to construct strategic infrastructure projects that benefit several property owners and the broader community. This is especially important for infill development where the perceived value of these types of properties is that the infrastructure (sewer, water, roads) are built to current standard as there was once a use on the property. Proactively determining the status of infrastructure quality, if upgrades are required and the cost, is necessary to engage interest in development. A detailed list of identified projects within the Midtown District are provided in Attachment B. The projects are separated into two categories: Regional and Private Development as they each serve distinct purposes. These lists serve as both a budgeting tool for staff as well as a direct message to developers regarding the level of investment the city is willing to make in this District. Regional Investments The proposed regional investments are projects within the District that benefit the broader community through the provision of key transportation connections or amenities. These projects meet the intent of the urban renewal goals of 1) improve multimodal transportation, and 2) improve, maintain, and support innovation in Infrastructure. It is anticipated that these projects can occur independent of private property owner engagement. While these projects serve the broader community, they also indirectly incentivize private development with the overall improvement of the District. Private Development Investments The proposed private development infrastructure is identified through different zones of private property that will benefit from the necessary infrastructure upgrades. There is no prioritization of the improvements as it is dependent on private party engagement, which can’t be anticipated. However, by determining these projects in advance, staff can clearly communicate to private property owners the type and cost of infrastructure that would be built that serves as direct incentive for them to consider redevelopment of their property. The City should only make the significant infrastructure investments when it is clear that the developer can’t reasonably construct the project without support from the City. This is often referred to as a “but for” argument based on transparent financial information reflecting costs and revenues from the project. At the same time, through this transparent partnership, the City can work with the property owner to obtain right-of-way or rights to construct a public facility that may be necessary to make the desired improvements. In all public-private partnerships this transparent information is necessary to ensure sound community investments. 274 Bozeman Urban Renewal Action Plan August 2017 / 27 In addition, the infrastructure investments should only occur when the private investment is as certain as possible. If the City builds the infrastructure prior to private investment, the infrastructure upgrades are no longer perceived by the private party as an “incentive” but as the basic city services that understandably were presumed to be in place. Investment Timing The urban renewal statutes allow for the bonding of substantial public projects within 14 years of establishing the district. The Midtown Urban Renewal District was created in 2006 and the 15th year of inception will be 2021. The Midtown District Urban Renewal Board and City Commission should be cognizant of this timing when evaluating project investments and in communications with private developers. In order to leverage this financing opportunity, staff should determine projects to consider for bonding by Q1 2019. Incentives Infrastructure Projects Infrastructure projects can often present a significant cost for developers. Infill projects are especially complex as often a small lot will face outsized regional infrastructure costs due to “upstream” deferred maintenance needs that impact the specific site. Urban renewal funds can off-set a significant cost barrier of a regional project that is needed to allow the redevelopment of an individual lot to move forward. See Attachment B for a detailed list of recommended projects and costs based on specific site analysis case studies within Midtown and collaboration with public works. Off-Set Project Costs Targeted incentives can close the financial gap in making a project move forward. As discussed previously, City staff and private developers should work together in a transparent manner to identify that an incentive addresses a clear “but for” need of support to off-set costs to encourage the targeted private investment for this area. Future development providing much needed affordable housing should especially be considered to receive incentives. An allocation of incentives for SDC off-sets and demolition costs have been included with the list of projects in Attachment B. Streamlined Permitting Streamlined permitting is always cited as a top incentive for developers to attract investment. As discussed, infill development consists of risks regarding untested markets and uncertainty regarding infrastructure requirements. Both risks can result in costs not anticipated by a developer when initially pursuing a project. City staff can provide critical support in removing these uncertainties by providing transparent information as early as possible regarding infrastructure needs, as well as unified direction regarding desired building design and density. Creating a “Midtown team” of staff from various departments provides a consistent group of staff that comprehensively understands the infrastructure, transportation and building design issues in the area. Such a team can serve as a powerful resource to proactively achieve the desired development in collaboration with the developer, and sends a clear signal that this District is a priority to the community. 275 Bozeman Urban Renewal Action Plan August 2017 / 28 Targeted Private Investment The overall objective of the Midtown Urban Renewal District is to create a more vibrant place with pedestrian activity that reduces the dependence on the automobile. Specifically, the goals of the most recent Urban Renewal Plan which include: • Promote Economic Development • Improve Multimodal Transportation • Improve, Maintain, and Support Innovation in Infrastructure • Promote Unified, Human Scale Urban Design • Support Compatible Urban Density Mixed Land Uses To achieve these goals, targeted future development should include the following elements: • Infill. The intent of urban renewal is to remove blight to improve an area for the entire community benefit. Remodeling of existing structures or infill of underutilized lots is the priority of this Plan. As discussed, infill development is more challenging than vacant greenfield development and warrants focused investment of staff time and resources. • Increased building density. Increased building density increases the number of people in the District, which helps create the desired active pedestrian environment. More density of buildings grouped together in districts is especially desired to encourage pedestrians to explore adjacent buildings. Buildings that are separated by large parking area or vacant lots will impede pedestrian movement. • Encourages multimodal transportation. New projects should provide amenities such as adequate bike parking or bus schedule real time monitors in lobbies. At the same time, the Urban Renewal District should invest in infrastructure projects such as bike lanes and signals or covered bus stops to make alternative transportation options visible, safe, and desirable. • Retail that serves surrounding residents. To achieve a more vibrant pedestrian-oriented environment the District must consist of uses that are a frequent destination by residents. Retail amenities that are experience based such as restaurants or ice creams shops are desired because they generate activity and are more resilient to emerging ecommerce trends. Such amenities will also attract more housing investment. • Housing. Bozeman is in significant need of all types of housing, therefore it is called out as a specific use that is desired. The Midtown District zoning is intended to accommodate more dense housing projects with potential access to retail amenities nearby. 276 Bozeman Urban Renewal Action Plan August 2017 Attachment A: Site Concepts 277 Midtown Site Opportunity – “The Wok” Site 1 The Wok” site is in reference to the former Chinese restaurant that was once located here. This site has been identified as opportunity site within Midtown for the following reasons: • recent investment by the Urban Renewal Board; • property owner engagement; and • proximity to the 8th Street bike corridor to MSU We view this site as an opportunity for student housing due to the proximity to MSU via bike as well as the central location to entertainment districts in downtown and on North 7th Street. Furthermore, the profile for a student renter is one that typically prefers alternative transportation modes and desires amenities nearby, thus reduces the need for parking and associated costs with construction. LOCATION Address: 319 N 7th Ave, Bozeman, MT 59715 SITE SIZE Approximately 36,500 square feet (SWC of 7th & West Villard Street) ASSUMPTIONS • Rent: $1.84 per sq. ft. (market) (market) or $1,295 per month for a 700-sq. ft., one-bed apt. • Land cost: $15.00 per sq. ft. • Building Costs: o $150 PSF Apt. o $220 PSF Retail • Parking Provided: 2.5 spaces per 1,000 square feet. PROGRAM OPTIONS DEVELOPMENT RETURN ON INVESTMENT (ROI) The “CAP” rate is the industry standard for ROI. This analysis assumes a 7% rate. Building Program Baseline Concrete Podium Wood Frame Reduce Retail Wood Frame Reduce Retail Rent+10% Wood Frame Reduce Retail Rent+10% Add Apts Wood Frame Reduce Retail Rent+10% Add Apts No Land Cost Three story Wood frame Three story Wood frame Rent+10% Three story Wood frame Rent+10% No Land Cost Gross Building Area (SF) Apartments 9,000 9,000 Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 Apartments 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 1- Retail 9,000 4,500 4,500 4,500 4,500 1- Tuck Under Parking 4,500 4,500 9,000 9,000 Total 36,000 36,000 36,000 49,500 49,500 27,000 27,000 27,000 Total Apartment Area (GBA)27,000 27,000 27,000 36,000 36,000 27,000 27,000 27,000 278 Midtown Site Opportunity – “The Wok” Site 2 EXAMPLES OF POTENTIAL DEVELOPMENT East Beall, Bozeman, MT The Anthony Apts., Eugene, OR SoBo Lofts, Bozeman, MT Stadium View Living Apts., Bozeman, MT FEASIBILITY Under previous parking requirements, the site could support a building with a FAR of about 1:1. With the new parking requirements, the site can now increase the building density and/or building footprint, increasing the feasibility of the development. With minimal required onsite parking, the site also becomes more flexible, with a wider array of available development and site options. BARRIERS The Wok site’s separation from the main development cluster around 7th and Main and 7th and Mendenhall is one of the few potential development barriers, as this new construction activity cannot be leveraged. However, this may be mitigated given the larger lot size and the opportunity to develop a self-sustaining community. 279 Midtown Site Opportunity – “Main Street Properties” Sites 1 The Main Street Properties are adjacent to the vacant City Center Inn property. The current owners have expressed interest in exploring opportunities for redevelopment on their property. This analysis assumes full build out of the properties by utilizing a parking structure that is anticipated on the north side of the site. This analysis consists of office and retail uses to provide an alternative scenario to housing. Furthermore, we see this as a viable location to meet the office demand for downtown serving small creative office and software firms. LOCATION Address: 601-607 W Main St, Bozeman, MT 59715 SITE SIZE Site area approximately 25,480 square feet; building footprint approximately 16,305 (9,175 for landscaping/circulation) ASSUMPTIONS • Rent: $20 to $24 PSF NNN (top of market) • Land cost: $15.00 per sq. ft. • Building Costs: $150 PSF (Commercial/Office) • Construction costs have been rising rapidly, meaning projects that were deemed feasible in 2014 may not be in today’s market. • Parking provided off site, in city lot, reducing construction cost. PROGRAM OPTION • Two separate buildings, each four stories (ground fl. Retail + 3-fls. office) • LCG established a target return on cost of 8.0% based on review of current office cap rates (estimated at 6.5%) and a developer’s risk- adjusted return spread of 1.5%. • Six different rent scenarios were evaluated based on this building area. DEVELOPMENT RETURN ON INVESTMENT (NOI/Total Project Cost) Parking Area (SF) Office 16,305 Office 16,305 Office 16,305 Retail 16,305 GBA 65,220 280 Midtown Site Opportunity – “Main Street Properties” Sites 2 EXAMPLES OF POTENTIAL DEVELOPMENT Snowload Building, Bozeman, MT 5 West Mendenhall, Bozeman, MT Hudson, Vancouver, WA Blackmore Bend, Bozeman, MT FEASIBILITY This desirable location on Main Street serves as an extension of the strong growth in downtown. With the redevelopment of the City Center site, a strong connection to downtown will be made, making this a viable site. The development of the site depends on the City’s construction of the parking structure. The proposed buildings would require approximately 163 parking spaces, which would cost an estimated $4.28 million. The alternative would be to require the developer to build parking on site, which would have a significant negative impact on returns, rendering development infeasible. BARRIERS There are three separate property owners, so consolidation of parcels and agreement on real estate terms will be required. Some additional issues remain with the proposed development. Namely, there is a risk the development could not achieve the top-of-the-market rents and construction cost escalation could add further complications. Additional information about site preparation, on and off-site costs, landscaping and placemaking will help reduce unknowns. 281 Midtown Site Opportunity – “EZ Auto” Site 1 The EZ Auto site is currently a car dealership along N 7th Street. The property owners have expressed interest in redevelopment. This analysis consists of an early phase of market development. Is consists of on- site parking without a parking structure to provide a sense of how the site is impacted without the parking structure. Furthermore, it would be advantageous to include surrounding parcels to maximize the building footprint and shared parking. LOCATION Address: 23 N 7th Ave, Bozeman, MT 59715 SITE SIZE Site area approximately 25,480 square feet; proposed (shown) building footprint approximately 5,500 square feet (19,980 square feet parking area) ASSUMPTIONS • Rent: Estimated $1.85 per sq. ft. (market) or $1,295 per month for a 700- sq. ft., one-bed apt. • Land cost: $15.00 per sq. ft. • Building Costs: o Wood frame apt.: $167 PSF o Ground floor retail, incl. TIs: $216 PSF o Post tension slab (fire & structural separation between retail and housing: $50 PSF • Parking Provided: 0.9 spaces per 1,000 square feet (surface) PROGRAM OPTIONS DEVELOPMENT RETURN ON INVESTMENT (NOI/Total Project Costs) The “CAP” rate is the industry standard for ROI. This analysis assumes a 7% rate. Building Program Baseline Rent+10%No retail No retail, rent+ 10% No retail, three stories Gross Building Area (SF) Apartments 5,961 5,961 5,961 Apartments 5,961 5,961 5,961 5,961 5,961 5,961 Apartments 5,961 5,961 5,961 5,961 5,961 5,961 Apartments 5,961 5,961 5,961 5,961 5,961 5,961 1- Retail 5,961 5,961 5,961 Total 23,844 23,844 23,844 23,844 17,883 Total Apartment Area (GBA)17,883 17,883 23,844 23,844 17,883 282 Midtown Site Opportunity – “EZ Auto” Site 2 EXAMPLES OF POTENTIAL DEVELOPMENT East Beall, Bozeman, MT The Anthony Apts., Eugene, OR SoBo Lofts, Bozeman, MT Stadium View Living Apts., Bozeman, MT FEASIBILITY This site is close to Main Street and downtown development, as well as 8th Street, which serves as the major bike route to Montana State University. We recommend exploring student housing due to this location and willingness of students to embrace bikes over automobiles, which reduces need for parking. BARRIERS The site size presents a barrier for building scale. Otherwise, it is in a desirable location due to proximity to downtown and MSU. 283 Bozeman Urban Renewal Action Plan August 2017 Attachment B: Midtown Project List 284 285 July 2017 Item Improvement Type Issue Location Notes Length Street Cost Per LF Utility Cost Per LF Total Cost Street 8th Avenue new local street section 8th Avenue between Birch and Peach Completes 8th Ave within existing ROW, connected with development of adjacent property 2050 345.00$ 707,250$ Incentives Off-Set SDC Costs 150,000$ Subtotal 857,250$ Zone B - Hemlock Street Water Upgrade water main to 8" Standard Hemlock, Between 5th and 7th Upgrade if demand from redevelopment 575 230.00$ 132,250$ Sewer New 8" Sewer Main Hemlock, alley to 5th Provide service to properties along Hemlock Ave. 5th Avenue sewer would need to be completed for service 230 270.00$ 62,100$ Incentives Off-Set SDC Costs 150,000$ Subtotal 344,350$ Zone C - Aspen Street Street Section Festival Street Aspen Street Concept for pedestrian and street improvements 540 170.00$ 91,800$ Sewer New 8" Sewer Main Tamarack, 3rd to 5th Provide service to properties along Tamarack, with connection to future 5th Ave sewer main 750 270.00$ 202,500$ Water Upgrade water main to 8" Standard Tamarack, Between 5th and 7th Upgrade if demand from redevelopment 580 230.00$ 133,400$ Water Upgrade water main to 8" Standard Aspen, Between 5th and 7th Upgrade if demand from redevelopment 570 230.00$ 131,100$ Incentives Off-Set SDC Costs 450,000$ Subtotal 1,008,800$ Zone D - N. 8th Avenue Street 8th Avenue new local street section 8th Avenue between Villard and Beall Completes 8th Ave within existing ROW, connected with development of adjacent property 370 345.00$ 127,650$ Incentives Off-Set SDC Costs 150,000$ Subtotal 277,650$ Zone E - Lamme Street Water Upgrade water main to 8" Standard 7th Avenue, between Beall and Mendenhall Upgrade if demand from redevelopment 620 230.00$ 142,600$ Water Upgrade water main to 8" Standard Lamme, between 7th Ave and 8th Ave Upgrade if demand from redevelopment 308 230.00$ 70,840$ Incentives Off-Set SDC Costs 150,000$ Subtotal 363,440$ Zone F - Mendenhall Avenue Water Upgrade water main to 8" Standard Mendenhall, between 7th Ave and 8th Ave Upgrade if demand from redevelopment 324 230.00$ 74,520$ Sewer Upgrade sewer main to 8" Standard Upgrade, Mendendall, Grand to 7th Upgrade if demand from redevelopment 1600 270.00$ 432,000$ Parking Structure Assumes $26,000/stall at 400 stalls (similar price to downtown structure) 10,400,000$ Incentives Off-Set SDC Costs 150,000$ Subtotal 11,056,520$ Total Investment 13,908,010$ PRIVATE DEVELOPMENT INFRASTRUCTURE IMPROVEMENTS Zone A - N. 8th Avenue Notes: *local street section: 35' pavement, 6' boulevard and 5' sidewalk 1. Cost estimate does not include impacts due to groundwater or contaminated soil 2. Pricing reflects 2016/2017 typical bids 3. SDC off-set assumes one 26,000 sf residential building 286 287 July 2017 Item Improvement Type Location Issue Notes Length Street Cost Per LF Utility Cost Per LF Total Cost A. North 5th Avenue Corridor Street N. 5th Avenue between Oak and Hemlock Complete street connection for N. 5th Avenue Completes connection of 5th Avenue. Facilitates regional connectivity and removes barrier to redevelopment for parcels north of Durston. 850 345.00$ 293,250$ Street N. 5th Avenue between Hemlock and Tamarack N. 5th Avenue upgrade to local street section (curb, gutter, sidewalk on both sides) Within this block, N. 5th Avenue does not meet City standard street section 720 170.00$ 122,400$ Parking 5th Avenue between Tamarack and south boundary of the Westlake BMX park. N. 5th Avenue Parking and Sidewalk Parking and sidewalk improvements associated with park improvements 665 160.00$ 106,400$ Street 5th Avenue between the 700 Block of N. 5th Ave to Tamarack Upgrade 5th Street section to new west side curb, gutter, sidewalk in conjunction with park improvements 5th does not meet City standard street section and does not have safe sidewalks to Whittier 665 60.00$ 39,900$ Sewer 5th Avenue between Aspen and Oak, 3 sections New 8" sewer main Aspen to Tamarack 720 270.00$ 194,400$ to complete sewer main connection Tamarack to Hemlock 710 270.00$ 191,700$ Hemlock to Oak 970 160.00$ 155,200$ Water 5th Avenue between Tamarack and Aspen 8" Water Main Provides looping in the system for redevelopment of property along Aspen St. or 5th Ave. Efficient to complete in conjunction with 5th Street improvements. 350 290.00$ 101,500$ Street Oak Street and N. 7th Avenue Oak corridor analysis recommends a right turn lane from the westbound Oak Street to northbound N. 7th Ave. This improves traffic movement. Until the intersection is improvement, development of property will be restricted 662,000$ Subtotal Construction Costs 1,866,750$ Contigency (15%)280,013$ A&E Fees (14%)261,345$ Total Costs 2,408,108$ B. West Tamarack Pedestrian Improvements Safe Pedestrian Crossings Tamarack at Grand, 3rd and 5th Avenues Improve pedestrian connections for improved safety. Difficult intersections, defined in Safe Routes to School Plan. 20,000$ Safe Pedestrian Crossings Along Tamarack Difficult intersections have been defined and should be improved for school connections. Improves pedestrian connections to school.20,000$ Sidewalks Beteween Tamarack and Peach Wittier school connection missing Improves pedestrian connections to school.20,000$ Subtotal Construction Costs 60,000$ Contigency (15%)9,000$ A&E Fees (14%)8,400$ Total Costs 77,400$ Internal Multi-Use Trails C.Trail Oak Street, between 5th Ave and 7th Ave Mullti-use trail connection Continues multi-use path along the south side of Oak Street and facilitates regional bike and ped connectivity. 673 66.00$ 44,418$ D.Trail 5th Avenue, between Tamarack and Oak Street Mullti-use trail connection Provide off-street trail connection to Oak Street trail network and facilitates regional bike and ped connectivity. 1692 66.00$ 111,672$ E.Trail N. 8th Avenue, between Durston and Oak Street Mullti-use trail connection Provide off-street trail connection to Oak Street trail network and facilitates regional bike and ped connectivity. 1968 66.00$ 129,888$ Subtotal Construction Costs 285,978$ Contigency (15%)42,897$ A&E Fees (14%)40,037$ Total Costs 368,912$ NEW INFRASTRUCTURE REGIONAL CONNECTIONS 288 Item Improvement Type Location Issue Notes Length Street Cost Per LF Utility Cost Per LF Total Cost F. North 7th Ave. Streetscape 7th Avenue, Durston to Main and Tamarack to Aspen 7th Avenue Streetscape Continuation of streetscape plan 970 3,000,000$ Pedestrian Crossings N. 7th Avenue, at Lamme, Beall and Villard Difficult intersections, defined in Safe Routes to School Plan Build bulb-outs and crosswalks for safe access to school. Pedestrian hybrid beacon with bulb out recommended for Lamme intersection in the Transportation Master Plan 125,000$ Subtotal Construction Costs 3,125,000$ Contigency (15%)468,750$ A&E Fees (14%)437,500$ Total Costs 4,031,250$ G. PARK District Amenity BMX Park Master Plan Implementation Need desirable community space Park Cash-in-lieu fees for new residential development in the area. 400,000$ 400,000$ STUDIES Bike Lanes Entire district No north/south connections throughout Midtown Define a safe connection between MSU and throughout district. Determine how to connect district to story mill and map brewing areas that have no bike connections. 40,000$ Traffic Signal Properties north of I-90 N. 7th Avenue and Griffin Drive Modify intersection to add additional turning lanes and revise traffic signal. Current intersection conditions constrains redevelop in this area. 2,350,000$ Subtotal 2,390,000$ Subtotal all projects 8,127,728$ Contingency (15%)800,659$ A&E Fees (14%)747,282$ Total 9,675,669$ Notes: *local street section: 35' pavement, 6' boulevard and 5' sidewalk 1. Cost estimate does not include impacts due to groundwater or contaminated soil 2. Pricing reflects 2016/2017 typical bids 289 ORDINANCE NO 1655 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA ADOPTING AN URBAN RENEWAL PLAN FOR PORTIONS OF THE NORTHEAST BOZEMAN INCLUDING THE HISTORIC MIXED USE DISTRICT WHEREAS the Bozeman City Commission did on the 15th day of August 2005 adopt Commission Resolution No 3835 declaring that blighted areas exist within the municipality and that the rehabilitation redevelopment or a combination thereof of such area or areas is necessary and WHEREAS the Bozeman City Commission appointed a Northeast Urban Renewal Study Committee to prepare an urban renewal plan and WHEREAS the Northeast Urban Renewal Study Committee has prepared a proposed Northeast Urban Renewal District Plan and WHEREAS the City Planning Board has found the proposed Northeast Urban Renewal District Plan to be in conformance with the Bozeman 2020 Community Plan the adopted growth policy for the Bozeman planning jurisdiction and WHEREAS the Bozeman City Commission did on the 14th day of November 2005 conduct a public hearing to consider the proposed Northeast Urban Renewal District Plan NOW THEREFORE BE IT ORDAINED by the City Commission of the City of Bozeman Montana Section 1 That the Northeast Urban Renewal District Plan attached hereto as Exhibit A is hereby adopted Section 2 Repealer All resolutions ordinances and sections of the Bozeman Municipal Code and parts thereof in conflict herewith are hereby repealed Section 3 Severability If any provisions of this ordinance or the application thereof to any person or circumstances is held invalid such invalidity shall not affect the other provisions ofthis ordinance which may be given effect 290 without the invalid provision or application and to this end the provisions of this ordinance are declared to be severable Section 4 Effective Date This ordinance shall be in full force and effect thirty 30 days after passage on second reading PASSED AND ADOPTED by the City Commission ofthe City of Bozeman Montana at a regular session thereof held on the 14th day of November 20 ETRARO Mayor ATTEST R L SULLIVAN City Clerk PASSED ADOPTED AND FINALLY APPROVED by the City Commission of the City of Bozeman Montana at a regular session thereof hel of NOV 2005 AN CETRARO Mayor ATTEST R IN L SULLIVAN City Clerk 2 291 OHilN SOZJJ IvJUuCld lJJ1SOICMlUlHucqJillSClqlJON 292 CITY OF BOZEMAN NORTHEAST BOZEMAN URBAN RENEWAL PLAN Prepared by The Northeast Bozeman Urban Renewal Study Committee Michael Barrett Ron Brey City of Bozeman Staff Peter Bronken Jim Browning Brian Caldwell Bobbi Clem Jack Davis J on Gerster Terry Giovanini Todd Roitsma Marcia Kaveney Erik Nelson Tracy Oulman City of Bozeman Staff Robert Pavlic Jeanne Wesley Wiese Steve Kirchhoff and Marcia Youngman City Commission Liaisons Prepared for The Bozeman City Commission Andrew Cetraro Mayor Lee Hietala Steve Kirchhoff Jeff Krauss Marcia Youngman 2 293 NORTH EAST URBAN RENEWAL DISTRICT PLAN CONTENTS HISTORICAL CONTEXT PO 4 INTRODUCTION PG 4 MISSION VISION STATEMENT PG 5 GUIDING PRINCIPLES GOALS AND IMPLEMENTATION ACTIONS PG 5 EXECUTING THE PLAN PG 10 FINANCE PG 14 DISTRICT MAP FIG 1 RESOLUTION 3835 APPENDIX 1 GENERAL DESCRIPTION APPENDIX 2 3 294 NORTH EAST URBAN RENEWAL DISTRICT PLAN HISTORICAL CONTEXT In the I880s Bozeman s economic fortunes blossomed with the anival of the Northern Pacific Railway which established a depot at the northeast end ofthe young city and connected it with distant markets The town s early entrepreneurs established flour mills residences freight storage and a brewery on new streets named for trees mostly the fruit bearing variety but Montana species as well Perhaps these names came in deference to the timber products and fruit that passed through but much ofthis freight and food processing activity has receded into history In the 120 years since this place bTew into a rail centered enterprise zone Bozeman s economic center of gravity moved elsewhere leaving the neighborhood short on paved streets sidewalks street lighting parks and sound infrastructure with scattered evidence ofhygone industrial activity remaining rail track and ties cable spools grain storage bins and upright fuel tanks INTRODUCTION This Urban Renewal Plan was prepared by a 13 member committee composed of a range ofbusinesses and residents from the District and the adjacent Northeast Neighborhood in response to the City Commission s finding ofhlight on August 15 2005 Resolution 3835 Appendix 1 The City Commission supported the blight designation unanimously in order to create an Urban Renewal District because it believed this would encourage infill within the city limits and that the Tax Increment Finance TIF District created by the designation would help fInance such infill While acknowledging that change development is inevitable in the District and that the creation ofan Urban Renewal District and its associated Tax Increment Financing would encourage economic vitality in the District it should be noted that some Northeast Neighborhood citizens and several committee members perceived few of the problems cited in the blight report Thus considerable efforts in the development ofthis plan were made to consider the many different and sometimes conflicting interests of the committee members The hope is that the end product the Northeast Urban Renewal Plan adequately balances the needs to remedy blight and encourage economic vitality and livability while also ensuring that future development preserves and enhances the eclectic character of the District to the fullest extent possible A map of the District is found in Figure 1 and a general description of the area included in the District is contained in Appendix 2 4 295 MISSION VISION This Plan is the city s response to remedy the conditions ofblight found in the August 2005 report The Plan also addresses other issues important to the District The plan s purpose is to ensure the vitality ofthe Northeast Urban Renewal District NURD the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride The Plan envisions a mixed use neighborhood that is user friendly safe secure and healthy While this plan envisions a District with diversity ofhousing businesses and amenities it intends to maintain the unique ambiance and historic character of the District GUIDING PRINCIPLES GOALS IMPLEMENTATION ACTIONS The principles and implementation actions which follow provide direction for using the Plan All nine Principles are vital to achieving the vision for the District The Implementation Actions are not exclusive lists Neither the Principles nor the Implementation Actions are arranged in order of importance 1 Ensure the health safety and security of the District Unsurfaced streets inadequate storm water drainage outdated water and sewer utilities and inadequate street lighting negatively impact the health safety and security of the District Improving the infrastructure ofthe area will also prepare the Districtfor thefilture GOAL A Outdated or insufficient infrastructure should be repaired replaced or otherwise improved IMPLEMENTATION ACTIONS Improve streets and alleys Improve fire prevention Repair or replace defective sections of water and sewer mains Improve the appearance and adequacy of dark sky lighting Provide for prompt snow removal Improve sidewalks and trail network Increase police patrols Improve storm water systems and develop storm water management techniques to protect Bozeman Creek 5 296 GOAL B Encourage a land use pattern that facilitates all modes of transportation vehicular bicycle pedestrian mass transit and commercial for safe efficient and convenient access for residential commercial and industrial uses IMPLEMENTATION ACTIONS Incorporate sidewalks crosswalks bike lanes and trails in the design for construction or reconstruction of streets and roadways Obtain property or easements for the continuation ofthe existing trail system Encourage bicycle use by incorporating bicycle amenities in the design of streets bridges and trails Design sidewalks walkways trails and streets for handicapped accessibility wherever possible Provide traffic calming measures Designate truck route GOAL C Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive IMPLEMENT ATJON ACTION Encourage the conversion of communications networks and other utilities to underground or wireless facilities 2 Balance commerce and livability in the District within the mixed use framework The clear intent ofthis District is to support a mix and variety o nonresidenlial and residential uses Nothing in this Plan shall be interpreted to be discouraging or prejudicial to any allowable uses GOAL Harmonize commercial and industrial development with residential quality of life IMPLEMENTATION ACTIONS Assure compatibility of land uses through appropriate urban design techniques Consider alternative materials for streets and sidewalks Promote environmental cleanup ofbrown field or hazardous substances by the responsible parties Encourage commercial development that provides basic needs to the District Encourage affordable housing 6 297 3 Honor the unique character and vitality of the District The unique character of this neighborhood is built on its history proximity to the railroad mixed rural and urban development mixed residential and commercial uses and its proximity to downtown These qualities should be supported GOAL A New structures should be designed and built keeping in mind public values of durability flexibility and simplicity Thoughtful consideration of design materials and massing in the construction of new private buildings will add strenblh and character to the built environment To the degree that the private sector can be influenced by a public partner in development the community ought to strongly encourage excellence in urban design as a basis ofpartnership IMPLEMENTATION ACTIONS Where historic buildings and places exist compatibility of design elements should also enter into the planning ofnew construction Where historic structures are affected by public or private development seek out the advice and assistance of local state or federal historic preservation professionals for opportunities to renovate existing historic structures Respect the property rights ofproperty owners Encourage the growth of cultural activities GOAL B Promote sustainable building practice and design within the District IMPLEMENTATION ACTIONS Support projects and designs that promote Dark Skies Promote the use of indigenous plants and materials for landscaping and design Encourage the use oflocally produced renewable products Promote environmentally sound development and construction practices Promote energy and resource efficient systems within the District 4 Public open space is essential to a healthy and appealing urban environment Developing and procuring parks and public open space as well as improving and making accessible the existing trails such as The Depot Park Trail and Bozeman Creek Trail will enhance and improve the District Goal A Procure new land for parks and public open space IMPLEMENTATION ACTIONS Secure public open space s in Iocation s that will optimize use and accessibility 7 298 Ensure that all park planning provides for a broad range ofboth residential and commercial needs Provide a park plan that includes a children s playground and connectivity to adjacent wetlands and open space Eminent Domain shall not be used to procure new land for parks Goal B Improve landscaping in existing public spaces IMPLEMENTATION ACTIONS Enhance boulevards and public right of way by planting and maintaining trees where appropriate Weed control Encourage property owners to maintain their property 5 The costs of projects and programs shall be weighed against their benefits to the District This principle is se fexplanatory as long as Benefit is understood to mean the promotion of the Principles and that Benefits may not befinancial in nature 6 Private property shall not be acquired for other private use through the eminent domain process in the implementation of any aspect of this plan GOAL Neither the City of Bozeman nor any ofits subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan IMPLEMENTATION ACTIONS Include a specific prohibition ofthis practice in the implementation section ofthe Plan Require that any amendment ofthe Plan occur under the same procedures as the Plan was adopted including the individual notice requirements for properties within the District Help assure the City ordinance prohibiting the practice remains in place by placing the NURB on record as endorsing the prohibition 7 The City shall not limit its vision for the District improvements to monies available solely through the TIF funding GOAL Encourage the City to help ensure the success of the N E Urban Renewal Plan by giving a high priority to the NE District in its capital improvements plan 8 299 IMPLEMENTATION ACTIONS Work with the City County and State to secure funds from all available sources Promote communication so that it is understood that the District will require assistance beyond the tax increment finance funding 8 Projects shall consider impacts on adjacent neighborhoods OOAL Work with neighborhoods and businesses to ensure actions taken in the District are compatible with adjacent developed areas IMPLEMENTATION ACTIONS Keep communication open and seek public input from adjacent neighborhoods Evaluate projects on their community wide benefits and impacts Create a process for the development and prioritization of neighborhood projects 9 The city shall consider the impact on the District of all projects undertaken outside of the District GOAL Work with the City to ensure actions taken outside ofthe District are compatible with projects inside of the District IMPLEMENTATION ACTIONS Evaluate and mitigate adverse impacts on the District occurring from projects outside ofthe District Ensure that a proportionate share ofinfrastructure costs resulting from projects inside of the District is shared by the projects outside ofthe Districts that utilize the infrastructure 9 300 EXECUTING THE PLAN INTRODUCTION Once adopted this Plan becomes the official policy guide for public action regarding the Northeast Urban Renewal District These policies can only be transformed into action through an effective implementation probTam Thc framework for implementation described herein depends on sound processes of administration financing and evaluation As the implementation ofthis Plan proceeds new opportunities will arise and unforeseen problems will emerge The Plan s administration must be sufficiently flexible to respond cffectively to changing circumstances without losing sight oflong range goals ADMINISTRATION To implement this Plan an Urban Renewal Agency will be created hereafter referred to as the Northeast Urban Renewal Board NURB The NURB is responsible for the implementation ofthis Plan pursuant to MCA S 7 15 4232 Specifically the NURB will 1 develop plans which implement the vision tor the District 2 rcview on an ongoing basis the opcration and processes of all public agencies to assure that such activities are supportive ofthe Plan and 3 advocate and coordinate the complete and full implementation of the Plan Individuals appointed to the NURB shall have a demonstrated interest in Northeast Bozeman Pursuant to MeA S 7 15 4234 the mayor by and with the advice of consent ofthe City Commission shall appoint the NURB which shall consist of five voting members The initial voting membership shall consist of one NURB member appointed for 1 year one for 2 years one for 3 years and two tor 4 years Each appointment thereafter shall be tor 4 years 1 Each voting member shall hold office until hisher successor has been appointed and has qualified 2 A voting member shall receive no compensation for his her service but shall be entitled to authorized necessary expenses including traveling expenses incurred in the discharge ofhis her duties 3 Any person may be appointed as voting members if they reside within the municipality or own property within the District The preferred composition ofthe NURB would include two residents ofthe District two business owners in the District and one member at large 4 A voting member may be removed for inefficiency neglect of duty or misconduct in offIce 5 The appointment ofvoting members shall be ratified annually by the City Commission A majority ofthe voting members shall not hold any other public oHice under the municipality other than their membership or office with respect to the NURB 10 301 The powers and responsibilities ofthe NURB shall be exercised by the members thereof according to adopted bylaws approved by the City Commission A majority of the members shall constitute a quorum for the purpose of conducting business and exercising the powers and responsibilities ofthe NURB and for all other purposes Action may be taken by the NURB upon a vote of a majority of the members three unless in any case the bylaws shall require a larger number In addition to the five voting members the NURB shall be composed of a non voting membership ofnot more than four individuals The initial membership shall consist of one member appointed for 1 year one f r 2 years one for 3 years and one for 4 years Each appointment thereafter shall be for 4 years These individuals must possess expertise or other qualifications necessary to help implement the plan 1 Each non voting member shall hold office until hisher successor has been appointed and has qualified 2 A non voting member shall receive no compensation f r hisher services but shall be entitlcd to authorized necessary expenses including traveling expenses incurred in the discharge of his her duties 3 A non voting member may be removed for inefficiency neglect ofduty or misconduct in office 4 The appointment of non voting members shall be ratified annually by the City Commission Initial administrative staff duties for the NURB will be performed by city staff as available until other funding shall be available from alternate sources and permanent staff hired The NURB will make every effort to fund its own staff either by contracting for services with existing public agency staff contracting for services with a private firm or hiring a staff The FY07 work program shall specify the staff arrangement The NURB may exercise any ofthe powers specified in MCA 7 15 4233 However no entrance to any building or property in any urban rcnewal area in order to make surveys and appraisals in the manner specified in 7 15 4257 shall be made without the owner s permission ANNUAL WORK PROGRAM BUDGET AUDIT AND EV ALUATION The NURB shall prepare an annual work program A WP and budget that will list the activities and costs of activities for the coming fiscal year as well as the method of financing those activities The NURB shall provide public notice in the newspaper and by other appropriate means and conduct a public hcaring prior to the submittal ofthe annual work program to the City Commission This program and budget may be amended during the course ofthe city s fiscal year in light of funding and program changes All budgets and revised budgets shall be reviewed and approved by the City Commission 11 302 The NURB shall cause to be perf rmed an annual audit conducted in conjunction with the city s audit covering the operations of the NURB in carrying out this Plan The first such audit shall be completed within ninety 90 days ofthe close of the first fiscal year following the adoption ofthis Plan by the City Commission All such audits shall be maintained as a part of the public records of the City of Bozeman The NURB shall also provide to the City Commission and the public an annual program evaluation Such evaluation shall review the Northeast Bozeman Improvement District Plan and the past annual work program and other relevant NURB activities for the year PLAN AMENDMENT The Plan may be amended by the same means as adopted in accordance with Montana law No ordinance amending the Plan shall be adopted until after a public hearing has been conducted thereon and notice of said hearing has been given in the official newspaper once a week for two consecutive weeks preceding the hearing In addition mailed notice shall be given to all persons owning property at the time and in the manner provided by MCA 7 I5 42I5 1 All notices shall provide the information regarding the modification required by MCA S 7 15 4215 1 Nothing herein shall limit of affect the authority ofthe Commission to undertake and carry out renewal activities on a yearly basis as provided by MCA 7 15 4220 PROPERTY ACQUISITION The NURB will assist and encourage public and private entities to eliminate blight or blighting influences and strengthen the City s economy by developing property in the District Where necessary in the execution of this Plan the NURB is authorized to acquire property in the District in accordance with the appropriate federal state and local laws However the power ofeminent domain shall not be used to acquire private property for private purposes or for parks ACTION BY THE CITY The City shall aid and cooperate with the NURB in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the area ofconditions causing blight To assure the purposes ofthe Plan are fully considered the City shall obtain and consider the advice of the NURB regarding all development proposals public works projects or other matters occurring within or adjacent to the Northeast Bozeman Improvement District area or affecting any aspect ofthe Plan 12 303 Other action by the City may include but not be limited to the following 1 Institution and completion ofproceedings for opening closing vacating widening or changing the grades of streets alleys and other public rights of way and for other necessary modification of the streets the street layout and other public rights of way in the Northeast Bozeman Improvement District areas 2 Institution and completion ofthe proceedings necessary for changes and improvements in publicly owned utilities within or affecting the Northeast Bozeman Improvement District areas 3 Revision ofMaster Plan Zoning requirements development standards and regulatory practices if necessary to facilitate the execution or principles policies and implementation actions set forth by this Plan 4 Pedormance ofthe above and all other functions and services relating to public health safety and physical development normally rendered in accordance with a schedule that will pennit the redevelopment ofthe Northeast Bozeman Improvement District area to be commenced and carried to completion without unnecessary delays 5 Promotion ofthe availability through the City ofprograms and funds to helpkeepexistingandnewhousinginornearthedistrictaffordableandhabitable 6 The undertaking and completing of any other proceedings necessary to carry out the provision of this Plan 13 304 FINANCE The programs projects and administration ofthe Plan shall be financed from a variety of sources both public and private which in part may include Private Grants dues self imposed taxes such as Special Improvement Districts or Business Improvement Districts private investment and donations Private Enterprise Assistance Programs Housing and Urban Development Small Business Administration and Community Reinvestment Act financial assistance Public Tax increment financing revenue bonds City and County general funds public grants utility Districts user fees state backed low interest loans Montana Department ofTransportation general obligation bonds tax credits and enterprise funds Tax Increment Financing will be implemented in accordance with MCA SS 7 15 4282 4292 and 43014324 In the event that property taxes arc reduced or replaced with some new form of revenue it is the intent ofthe Plan to use all available means to adjust the tax base or allow the capture ofthat portion ofthe new revenue form necessary to offset the reduced or lost increment The NURB will annually develop a program and budget to be reviewed and adopted by the City Commission During this procedure specific actions will be proposed in detail for community review This process will allow maximum community input to further the redevelopment interests of the community and to evaluate past actions ofthe NURB Tax Increment Financing shall be used to further the implementation of the goals set forth in this plan 14 305 JJSlaIBM9U91ueqJnnH3N SOOZpasodOJd I 9JnB1OOlrD l IamtI 306 Appendix 1 COMMISSION RESOLUTION NO 3835 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA DECLARING THAT BLIGHTED AREAS EXIST WITHIN THE MUNICIPALITY AND THE REHABILITATION REDEVELOPMENT OR A COMBINATION THEREOF OF SUCH AREA OR AREAS IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH SAFETY MORALS OR WELFARE OF THE RESIDENTS OF SUCH MUNICIPALITY WHEREAS a blight investigation in a portion of Northeast Bozeman outlined in Attachment A was completed by ThinkTank Design Group Inc on June 6 2005 and WHEREAS the investigation determined that areas of blight as defined by state statute existed within the study area associated with the following the defective or inadequate street layout identified within the study area instances of known deterioration inadequate provisions and or age obsolescence of the following public improvements within the study area water sewer storm drainage streets sidewalks and parks instances of age obsolescence of buildings within the study area instances of unsanitary or unsafe condition instances producing inadequate provision for ventilation light proper sanitary facilities or open spaces as determined by competent appraisers on the basis of an examination of the building standards of the municipality and WHEREAS Section 7 15 4212 MeA provides that any person public or private may submit an urban renewal plan to the municipality and WHEREAS a request was received from ThinkTank Design Group Inc to create an Urban Renewal District for the study area in Northeast Bozeman outlined in Attachment A and 16 307 WHEREAS Section 7 15 4210 MCA requires that a municipality adopt a resolution of necessity in order to implement an urban renewal program NOW THEREFORE BE IT RESOLVED by the City Commission of the City of Bozeman Montana that areas of blight exist within the study area of Northeast Bozeman outlined in Attachment A attached hereto and by this reference made a part hereof and that the rehabilitation redevelopment or a combination thereof of the area is necessary in the interest of the public health safety morals or welfare of the residents of Bozeman BE IT FURTHER RESOLVED that the City shall not use its powers of eminent domain to acquire private property for any private use in the implementation of any urban renewal project within this area PASSED AND ADOPTED by the City Commission of the City of Bozeman Montana at a regular session thereof held on the 15th day of August 2005 ANDREW L CETRARO Mayor ATTEST ROBIN L SULLIVAN City Clerk APPROVED AS TO FORM PAUL J LUWE City Attorney 17 308 Appendix 2 Description of the Proposed NE Urban Renewal District Beginning at the point of the southeast corner of Lot 12 Block 15 of the Imes Addition thence southerly along the west right of way line of North Rouse Avenue approximately 1 530 feet to the northeast corner of the north 81 feet of Tract 1 Block 9 of Beall s First Addition thence easterly approximately 60 feet to the western property line of Tract 2 Block 1 of Perkins and Stone Addition thence northerly along the east right of way line of North Rouse Avenue approximately 32 feet to the northwest corner of Tract 2 Block 1 of Perkins and Stone Addition thence easterly along the south right of way line of East Peach Street approximately 397 feet to the northwest corner of Tract 2 Block 6 of the Babcock and Davis Addition thence southerly along the east right of way line of North Church Avenue approximately 117 feet to the southwest corner of Tract 2 Block 6 of the Babcock and Davis Addition thence easterly approximately 194 feet to the southeast corner of Tract 2 Block 6 of the Babcock and Davis Addition thence southerly approximately 55 feet to the southeast corner of Tract 3 Block 6 of the Babcock and Davis Addition thence westerly approximately 10 feet to the northeast corner of Tract 4 Block 6 of the Babcock and Davis Addition thence southerly approximately 111 feet to the southeast corner of Tract 7 Block 6 of the Babcock and Davis Addition thence easterly approximately 264 feet to the western property line of the West of Lot 3 Block 7 Tract 2 of the Babcock and Davis Addition thence northerly along the eastern right of way line of North Wallace Avenue approximately 284 feet to the northwest corner of the west end of Tract 2 Lot 6 and the north 5 feet of Lot 5 Block 7 of the Babcock and Davis Addition thence easterly along the southern right of way line approximately 817 feet to the western property line of Lot 33 Block 53 of the Northern Pacific Addition thence northeasterly along the eastern right of way line of Plum Avenue approximately 555 feet to the centerline of the current main railroad track thence northwesterly along the centerline of the current main railroad track approximately 1 280 feet thence westerly approximately 177 feet to the northeast corner of Lot 1 of the Amended Plat C 23 W of the Northern Pacific Addition thence southerly along the west right of way line of North Wallace Avenue approximately 393 feet to the southeast corner of Lot 17 Block 110 of the Northern Pacific Addition thence westerly along the north right of way line of East Tamarack Street approximately 400 feet to the southwest corner of Lot 1 of the Amended Plat C 23 W of the Northern Pacific Addition thence northerly along the east right of way line of North Church Avenue approximately 360 feet to the property line of Lot 1 of the Amended Plat C 23 W of the Northern Pacific Addition thence westerly approximately 430 feet along the north right of way line of East Juniper Street to the southeast corner of Lot 12 Block 15 of the Imes Addition the point of beginning 18 309 Pole Yard Urban Renewal District Plan – 2020 Figure 1. Structure on Cedar Street 310 Acknowledgements Bozeman City Commission Bozeman City Planning Board Bozeman GIS Department Bozeman Economic Development Bozeman Community Engagement Consultants: Janet Cornish, CDS of Montana Lanette Windemaker, AICP 311 Table of Contents Chapter 1. Introduction and Overview ................................................................ 1 Chapter 2. Description of the Pole Yard Urban Renewal District ........................ 11 Chapter 3. Documenting Blight .......................................................................... 18 Chapter 4. Planning Consistency ........................................................................ 27 Chapter 5. Goals and Strategies of the Urban Renewal District Plan ................. 36 Chapter 6. Project Evaluation Criteria ................................................................ 41 Chapter 7. Implementation ............................................................................... 45 Chapter 8. Urban Renewal Program Evaluation and Plan Amendments ............ 57 References ......................................................................................................... 58 Appendix A. Community Engagement ............................................................. A-1 Appendix B. Property Ownership ..................................................................... B-1 312 Pole Yard Urban Renewal District Plan – 2020 Page 1 Chapter 1. Introduction and Overview Introduction The City of Bozeman is embarking on a program to improve the overall economic health of the community through the revitalization of an area in the northeast quadrant of Bozeman. Renewal efforts will rely on both public and private participation, thoughtful planning, and the efficient use of resources. Establishing the Pole Yard URD will enable the City of Bozeman to generate an urban neighborhood with thriving commerce through: • investment in public infrastructure, • retention and recruitment of commerce, and • leveraging limited resources. The State of Montana, in its urban renewal statutes, provides the statutory authority to create local programs to address conditions that may contribute to blight, which adversely affect economic health within municipalities. The City of Bozeman is creating this URD in accordance with §7-15-4201 et seq. of the Montana Code Annotated (MCA). The plan for this district includes a Tax Increment Financing (TIF) provision to help fund renewal efforts. The base year for the purposes of calculating each year’s increment will be January 1st, 2020. This Plan will guide revitalization activities in addressing critical issues. As stated in §7-15-4209, MCA, a local government “may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program”. In addition, according to §7-15-4210 MCA, in order to utilize the provisions of the Montana urban renewal statutes, the governing body must first adopt a resolution of necessity. The resolution must find at least three conditions that contribute to blight exist in the “area or a part of the area.” On September 15th, 2020, the Bozeman City Commission passed Resolution No. 5145, which adopted findings regarding the existence of conditions that contribute to blight within the Pole Yard in Bozeman’s northeast quadrant. In doing so, the Commission declared “that blighted areas exist within the municipality in and near the Pole Yard and that the rehabilitation, redevelopment, or a combination thereof of such areas is necessary in the interest of the public health, safety, morals or welfare of the residents of such municipality.” The Resolution noted eight conditions that contribute to blight as defined in the Montana Urban Renewal Law, §7-15-4206 MCA in the Pole Yard URD, which include the following, described in more detail in Chapter 3: 313 Pole Yard Urban Renewal District Plan – 2020 Page 2 1. physical dilapidation, deterioration, age obsolete structures and improvements; 2. inappropriate or mixed uses of land or building; 3. defective or inadequate street layout; 4. faulty lot layout in relation to size, adequacy, accessibility; 5. unsanitary or unsafe conditions; 6. improper subdivision or obsolete platting; 7. the existence of conditions that endanger life or property by fire or other; and 8. any combination of the factors listed. The Purpose and Intent of the Pole Yard Urban Renewal District and Plan The creation of the Pole Yard URD enables the City of Bozeman to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. This is in keeping with the Bozeman Strategic Plan, adopted by the Bozeman City Commission on April 16th, 2018. Vision Statement #2 of the Strategic Plan is for – “An Innovative Economy. We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities.” The Strategic Plan identifies the following: 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. (City of Bozeman, 2018) In addition, the Vision Statement #4 of the Strategic Plan state – “A Well-Planned City. We consistently improve our community's quality of life as it grows and changes, honoring our sense of place and the "Bozeman feel" as we plan for a livable, affordable, more connected city.” The Strategic Plan identifies the following: 4.3 Strategic Infrastructure Choices - Prioritize long-term investment and maintenance for existing and new infrastructure. Secondly, in 2016, the City of Bozeman adopted an update to its Economic Development Strategy. The creation of an urban renewal plan is in keeping with the overall intent of the Strategy. In particular, the intent of the Pole Yard Renewal District Plan is to enable the City of Bozeman to 314 Pole Yard Urban Renewal District Plan – 2020 Page 3 address blighted conditions, in order to facilitate mid- and high wage job growth and improve overall economic strength and diversification. The Plan will enable community stakeholders to work together in support of the primary tenets of the City’s economic development strategy, which include: 1. Retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Investment in infrastructure to drive economic development; and 3. Education and workforce development initiatives to provide businesses with qualified workers. Finally, this effort also reflects the goals presented in the Bozeman Community Plan 2020, adopted on November 17, 2020 in accordance with §76-1-601 MCA, the state’s Growth Policy statute. The Bozeman Community Plan 2020 sets forth a series of goals, grouped by theme. Of particular note to this examination are the following themes and associated goals: Theme 2. “A City of Unique Neighborhoods” ✓ Support well-planned, walkable neighborhoods. ✓ Pursue simultaneous emergence of commercial nodes and residential development through diverse mechanisms in appropriate locations. Theme 3. “A City Bolstered by Downtown and Complementary Districts” ✓ Support urban development within the City. ✓ Encourage growth throughout the City, while increasing a pattern of community development oriented on centers of employment and activity. Support a gradual increase in intensity within developed areas. Theme 6. “A city powered by its creative, innovative and entrepreneurial economy” ✓ Promote the continued development of Bozeman as an innovative and thriving economic center. ✓ Survey and revise land use planning and regulations to promote and support economic diversification efforts. (City of Bozeman, 2020) The intent of this Pole Yard URD Plan (Plan) is to present a series of goals and strategies that will assist the City Commission in focusing its limited resources efficiently. The Plan is intended to support community stakeholders as they work together to address blighted conditions through a series of urban renewal programs and projects to: • renew economic vitality and foster a cohesive neighborhood through improved connectivity and the strategic investment in public infrastructure within the Pole Yard URD; and • enhance opportunities for private investment to generate jobs and new taxable value. 315 Pole Yard Urban Renewal District Plan – 2020 Page 4 This Plan provides a context for activities that will be undertaken by a variety of public and private entities. It recommends a series of programs and types of projects that may be undertaken by the City of Bozeman to encourage investment in the district, which will in turn address conditions that have diminished economic potential. The revitalization challenges will be significant, in light of global shifts in economic development patterns. This Plan is adopted by ordinance, which will create the Pole Yard URD. This Plan includes a provision to use TIF, as funds become available, in addition to other resources in implementing its goals and strategies. Tax Increment Financing As stated above, the City of Bozeman will utilize Tax Increment Financing (TIF) in conjunction with other funding sources to help support urban renewal activities within the Pole Yard URD. The base year for the purposes of measuring any incremental increases in the taxable value of property within the district boundaries will be 2020. TIF is a state authorized, locally driven funding mechanism that allows cities and counties to direct property tax dollars that accrue from new development, in a specifically designated urban renewal or targeted economic development district, to community and economic development activities within that district. In Montana, TIF is authorized in Parts §7-15-4201 and 4301, et seq. MCA, the State’s Urban Renewal Law. TIF is used in districts that are characterized by conditions that contribute to blight (URDs) or that have infrastructure deficiencies (targeted economic development districts or TEDDs), that result in limiting or prohibiting new investment. A base year is established from which "incremental" increases in property taxable values are measured. Virtually all the resulting new property tax dollars (except for the six-mill state-wide university levy and certain voted levies) can be directed to support redevelopment and economic revitalization activities within the district in which they are generated. Taxpayers located within a district where TIF is in effect pay the same amount as they would if the property were located outside the district. TIF only affects the way that taxes, once collected, are distributed. Taxes that are derived from base year taxable values continue to be distributed to the various taxing jurisdictions, including local and state government entities and school districts. Taxes derived from the incremental increase in taxable value are placed in a special fund for purposes set forth in an urban renewal plan. (See Figure 2. TIF Schematic below.) A TIF provision is authorized for 15 years but may be extended for up to an additional 25 years if TIF bonds are sold any time during the first 15 years. Funds may be used for a variety of purposes as provided for in §7-15-4288, MCA and include improvements to vehicular and pedestrian transportation infrastructure, streetscapes, parks and landscaping, water and sewer lines and for connecting to infrastructure outside the district. While funds are typically used for public infrastructure investments, there are instances where local governments have used TIF funds to 316 Pole Yard Urban Renewal District Plan – 2020 Page 5 partner with private property owners to make improvements to historic buildings, to address life- safety issues and to enhance landscaping. The statutes also provide for the establishment of a TIF revolving loan program that can support private investment in the district. Loan funds can continue to “revolve” in perpetuity; however, eligible projects must be undertaken in accordance with and in the area encompassed by an urban renewal (URD) plan for the district. Figure 2. Tax Increment Financing Schematic Consultation with Affected Local Taxing Jurisdictions The 2017, Montana Legislature amended the state’s urban renewal law to specifically require a local governing body that intends to create a URD with a TIF provision or modify a URD to include a TIF provision, or to issue TIF bonds, to confer with the affected school taxing jurisdictions that levy mills within the jurisdiction that includes the district. The requirement, which is included in §7-15-4221 and 4282, MCA, calls for the governing body that is establishing the district to provide these jurisdictions with the opportunity to meet and consult at a publicly noticed meeting. The City of Bozeman has worked closely with the Bozeman School District and the Gallatin County Commission regarding the creation of the Pole Yard URD and will continue to do so. The City of Bozeman met with the County Commission on September 21st, 2020 and with the School District on September 14th, 2020 and mailed both a letter noticing the opportunity to meet and consult at the public hearing on the creation of the URD, held on October 27th, 2020. Due to a noticing error, the public hearing set for October 27th, 2020 was postponed until November 10, 2020. 317 Pole Yard Urban Renewal District Plan – 2020 Page 6 Community Engagement The Community Engagement Plan for this district highlights the need to inform the public about the process of creating an Urban Renewal District and consult the public on whether a URD should be a tool used to address the barriers to redevelopment of the Pole Yard area. In addition to the actions described in the previous section to inform and meet with affected taxing jurisdictions, City staff, as well as the consultant had numerous discussions with property owners and potential developers in the area. Furthermore, the City of Bozeman sent letters to the property owners within the area informing them of the review for conditions that contribute to blight and the potential of inclusion in an urban renewal district. The City of Bozeman held a community engagement Webex meeting on September 9th, 2020, at 6 pm. In addition, City staff met with the Gallatin Local Water Quality Board on September 3rd, and the Board of Health on September 24th. Numerous questions and comments were received. Summaries are provided in Appendix A. Notice has been published for all public meetings/hearings before the Bozeman City Commission and the Bozeman City Planning Board. A letter noticing the public hearing before the Bozeman City Commission on the ordinance to adopt the Pole Yard Urban Renewal District and Plan was sent to all property owners in the district pursuant to §7-15-4215, MCA. The Setting The City of Bozeman is the county seat of Gallatin County in southwest Montana. The City is named for John M. Bozeman who established the Bozeman Trail and was a key founder of the town in August of 1864. The town became incorporated in April 1883 with a city council form of government and later in January 1922 transitioned to a city manager/city commission form of government. In 2006, the voters of Bozeman adopted a Charter form of government granting the City self-government powers. Bozeman was elected an All-America City in 2001 by the National Civic League. Bozeman is home to Montana State University and is served by Bozeman Yellowstone International Airport. The Idaho Pole Company (IPC) Superfund site was designated in 1986 by the United States Environmental Protection Agency and placed on the National Priorities List. The site is located near the northern limits of Bozeman, Montana in Gallatin County. The site includes about 75 acres, of which approximately 65 acres are owned by Idaho Pole Co. A small section of Interstate 90 (I-90) transects the property. The following information is taken from the Environmental Protection Agency Website: “The IPC wood treating facility began operation in 1945 using creosote to preserve wood. In 1952 the company switched to pentachlorophenol in carrier oil (similar to fuel oil such as diesel) for the wood treating solution. Site processes included pole treatment in butt vats with the later addition of pressurized heated retort 318 Pole Yard Urban Renewal District Plan – 2020 Page 7 equipment in the area south of Cedar Street. Treated poles were stacked for drying and shipment in the area. Burlington Northern Railway Company operated a railroad roundhouse where wood treating chemicals and timber were shipped in and treated poles were shipped out of the site. Pole treatment processes included pole peeling with a bark-fill area for wood waste north of Cedar Street. In 1975 a pressurized heated retort was added for treating full-length poles. The pole-length vats were removed in the early 1980s. There was also a drying area where treated poles were stored prior to shipment. IPC continued wood treating with a pressurized heated retort and butt-dipping vat until September 1997, when the company ceased wood-treating operations. At this site, activity and use limitations that EPA calls institutional controls are in place. Institutional controls play an important role in site remedies because they reduce exposure to contamination by limiting land or resource use. They also guide human behavior. For instance, zoning restrictions prevent land uses – such as residential uses – that are not consistent with the level of cleanup.” (United States Environmental Protection Agency, n.d.)1 On February 3rd, 2020, The EPA announced the deletion of 82 acres of the Idaho Pole Company Superfund site from the National Priorities List (NPL) of the nation’s most contaminated sites. EPA and the Montana Department of Environmental Quality (MDEQ) have determined that all required cleanup activities are complete in the deleted area. (United States Environmental Protection Agency, 2020) Current Demographic and Economic Information The City of Bozeman is growing. According to 2019 Census estimates, there are 45,121 people living in the City of Bozeman, significantly higher than the 2010 Census figure of 37,280. The county’s population is projected to experience continued growth into the future, from 120,342 in 2020 to 182,379 in 2060, an increase of 51%. (ARCGIS.Com, 2019) Figure 3 presents population data for the City from 1910 to 2019, based on the decennial census. (United States Census, 2019) 1 See References section for complete citations. 319 Pole Yard Urban Renewal District Plan – 2020 Page 8 Census information, recorded over a period of 130 years beginning in 1890 and presented in Figure 4, indicates that the City’s population has grown rapidly since 1950. (United States Census, 2019) However, despite rapid growth, the City’s poverty rate at 18.6% is significantly higher than the poverty rates for Gallatin County, Montana and the nation, which are 11.8%, 13% and 9.0% respectively. (United States Census, 2019) Median Household Income for residents living in Bozeman is $51,896, lower than the County’s, median, which is $61,499, slightly lower than the state, at $52,559 and lower than the nation, at $60,293. (United States Census, 2019) 0 10,000 20,000 30,000 40,000 50,000 60,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Figure 3. City of Bozeman Population 2010-2019 (estimates) 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2019 Figure 4. City of Bozeman Population 1890-2019 320 Pole Yard Urban Renewal District Plan – 2020 Page 9 The following table (Figure 5) shows employment in the City of Bozeman by industry. The “Educational services, health care and social assistance” sector employs the most people, followed by “arts, entertainment, and recreation, and accommodation and food services” and “retail trade”. FIGURE 5. INDUSTRY BY OCCUPATION FOR THE CIVILIAN EMPLOYED POPULATION 16 YEARS AND OVER Estimate Percentage Margin of Error Civilian employed population 16 years and over 27,526 100% +/-745 Agriculture, forestry, fishing and hunting, and mining 474 2% +/-167 Construction 2,603 9% +/-489 Manufacturing 1,699 6% +/-347 Wholesale trade 351 1% +/-132 Retail trade 3,588 13% +/-485 Transportation and warehousing, and utilities 704 3% +/-211 Information 268 1% +/-109 Finance and insurance, and real estate and rental and leasing 1,316 5% +/-257 Professional, scientific, and management, and administrative and waste management services 3,056 11% +/-392 Educational services, and health care and social assistance 7,274 26% +/-615 Arts, entertainment, and recreation, and accommodation and food services 4,192 15% +/-495 Other services, except public administration 1,264 5% +/-295 Public administration 737 3% +/-186 (United States Census, 2018) However, this data does not reflect more recent economic conditions in Montana, which have been severely affected by the Coronavirus pandemic. According to a May 2020 report prepared by the Bureau of Economic Research at the University of Montana: 321 Pole Yard Urban Renewal District Plan – 2020 Page 10 “Using the [US Bureau of Economic Analysis] definition of employment (which includes payroll employment, self-employed, proprietors and non-employee contractors and consultants), the Montana economy is now projected to experience a shortfall of more than 75,000 jobs in 2020 over the entire year, compared to the pre-Covid-19 projection made in December. This is a loss of 25,000 jobs more than was projected last month. The worsening of the employment forecast reflects a reduced projection for health care and transportation employment, and a slower recovery at the end of this year… Specifically we now estimate: a loss of 75,000 jobs, on average, over the year 2020 for the Montana economy, reflecting worsening prospects for health care, transportation and agriculture industries. Jobs include payroll jobs as well as self- employed, business proprietors and non-employee contractor jobs…” (Bureau of Business and Economic Research University of Montana, 2020) 322 Pole Yard Urban Renewal District Plan – 2020 Page 11 Chapter 2. Description of the Pole Yard Urban Renewal District Area Description The Pole Yard Urban Renewal District (URD) Plan applies to an area of 273.3 acres including rights- of-way, and parcels are 149.1 acres of that total, located within the northeast quadrant of the City of Bozeman in portions of Sections 5, 6, 7, and 8, Township 2 South, Range 6 East, PMM, City of Bozeman, Gallatin County, Montana. The core area is located between the Interstate 90 and railroad rights-of-way on both sides of L Street. Beyond the core, the western extent of the URD is North Rouse Avenue, the eastern extent ends before Big Gulch Drive, the northern extent is Bond Street, and the southern extent is south of the intersection of East Peach/Avocado Street on the east and North Broadway Avenue. Note: The acreage total in the “Review and Findings of Conditions that Contribute to Blight” and in Resolution No. 5145, was based on a rough estimate of parcel acreages. For the Pole Yard URD Plan, the acreage has been corrected through the use of GIS technology. In addition to the Idaho Pole Superfund site, land uses in the area include a crane and heavy equipment business, building materials storage yards (Figure 6), Montana Rail Link property, a Northwestern Energy substation, a dwelling, office buildings, a manufacturing plant, the Gallatin Valley Food Bank, outside storage areas, numerous other businesses, floodplains, wetlands and agricultural properties. Figure 6. A Storage Yard on Pear Street General Description The Pole Yard Urban Renewal District (URD) Plan applies to an area encompassing 273.3 acres including rights-of-way, and parcels are 149.1 acres of that total, located within the northeast quadrant of the City of Bozeman in portions of portions of the West ½ of the Southwest ¼ of 323 Pole Yard Urban Renewal District Plan – 2020 Page 12 Section 5, the East ½ of Section 6, the East ½ of the Northeast ¼ of Section 7, and the Northwest ¼ of Section 8, Township 2 South, Range 6 East, PMM, City of Bozeman, Gallatin County, Montana. Boundary Description of the Pole Yard Urban Renewal District Beginning at the intersection of North Rouse Avenue and Bond Street; thence southerly along North Rouse Avenue to the intersection with East Juniper Street; thence easterly along East Juniper Street to the intersection with North Church Avenue; thence southerly along North Church Avenue to the intersection with East Tamarack Street; thence easterly along East Tamarack Street to the intersection with North Wallace Avenue; thence northerly along North Wallace Avenue to the intersection with Front Street; thence easterly to the railroad right-of-way; thence southeasterly along the railroad right-of-way approximately 1,323 feet; thence southwesterly to the intersection of Front Street and Plum Avenue; thence southwesterly along Plum Avenue to the intersection with East Peach/Avocado Street(s); thence southeasterly along East Avocado Street to the intersection with North Broadway Avenue; thence southwesterly along North Broadway Avenue to the southeast corner of Lot 15, Block 45, Northern Pacific Addition; thence southeasterly approximately 60 feet to the southwest corner of Lot 16, Block 46, Northern Pacific Addition; thence southeasterly along the southern boundary of Lot 16, Block 46, Northern Pacific Addition to the boundary of Geocode: 06-0799-07-1-40-93-0000 (described as Lot 17 Remainder, Block: 46, Northern Pacific Addition (also described by Montana Cadastral as Northern Pacific Add, S07, T02 S, R06 E, Lot 13 - 15, Plat C-23 & Abandoned C M St P & P Rr Northern Pacific Add Plus Pt Vac Meadow Ave)); thence counterclockwise around the perimeter of Geocode: 06-0799-07-1-40-93- 0000 (described above) to Montana Rail Link right-of-way, Geocode: 06- 0799-07-1-22-01-2000; thence northeasterly along the railroad right-of-way to the Front Street right-of- way; thence northeasterly across the Front Street right-of-way to the railroad right-of- way; thence southeasterly along the railroad right-of-way to the Interstate 90 right-of- way; thence northwesterly along the Interstate 90 right-of-way approximately 4,552 feet; 324 Pole Yard Urban Renewal District Plan – 2020 Page 13 thence northeasterly across the Bohart Lane right-of-way to the southern corner of the property owned by Northwestern Energy, Geocode: 06-0799-05-3- 01-01-0000 (described as Taxcode: RGH51909, Northern Pacific Addition); thence counterclockwise around the perimeter of Geocode: 06-0799-05-3-01-01- 0000 to the property line of Lot 9, Block 90, Northern Pacific Addition; thence northeasterly along the property line of Lot 9, Block 90, Northern Pacific Addition to the east-west half-section line of Section 5, T2S, R6E; thence westerly along the east-west half-section line of Section 5, T2S, R6E; thence continuing westerly along the east-west half-section line of Section 6, T2S, R6E crossing the L Street right-of-way, following East Oak Street to the Montana Rail Link railroad right-of-way bike path being a portion of the Story Mill Spur; thence northeasterly along the railroad right-of-way approximately 1,171 feet to northern property line of Geocode:06-0799- 06-1-01-60-0000 (a tract described as Northeast Annex, S06, T2S, R6E, acres 10.232, TR in S2NE4 COS 893); thence westerly along the northern property line of Geocode:06-0799-06-1-01- 60-0000 to the northeastern corner of Lot 4, Bomont Center Subdivision; thence continuing westerly along the northern property line of Lot 4, Bomont Center Subdivision to Gold Avenue; thence southerly along Gold Avenue to the intersection with Bond Street; thence westerly along Bond Street to the point of beginning at North Rouse Avenue. Less any portion of Geocode: 06-0799-08-2-59-01-0000 lying southwest of the Interstate 90 right-of-way. Including all adjacent rights-of-ways. Along with and subject to all easements of record or apparent on the ground. Containing approximately +/- 273.3 acres. End of boundary description. Map of the Pole Yard Urban Renewal District Figure 7, below, is a map of the boundary of the Pole Yard URD. Note: The District map area is smaller than the review area map in the “Review and Findings of Conditions that Contribute to Blight” and Resolution No. 5145 as portions of the review area were found to not comply with statutory requirements. For the Pole Yard URD Plan, the map has been updated through the use of GIS technology. 325 Pole Yard Urban Renewal District Plan – 2020 Page 14 Figure 7. Pole Yard Urban Renewal District 326 Pole Yard Urban Renewal District Plan – 2020 Page 15 The Pole Yard URD is located within Gallatin County Census Tract 6, shown in the map below (Figure 8). According to the 2018 American Community Survey, the population within Census Tract 8 is 2,558 (+/- 221) and there are 1,401 housing units (+/- 76). (United States Census, 2018) It is important to note that Census Tract 6 has been determined to be eligible for the deployment of both Federal Low-Income Housing and New Market Tax Credits, both of which provide significant incentives for reinvestment. Figure 8. Gallatin County Census Tract 6 (US Census, 2011) Property Ownership Addresses and Data Montana Department of Revenue Assessment Codes: A list of parcels and properties within the district was obtained from the Montana Department of Revenue (DOR) cadastral records to help meet the requirements for mail notice and DOR recognition of the district. The compilation of parcels and properties is found in Appendix B and includes identifying geocodes and the following information as appropriate. • Owners’ names and mailing addresses of all properties with geocodes in the district. • Condominiums and identifying information including geocodes and master geocodes. • Personal property within the district and the corresponding assessor codes. • Mobile homes/manufactured homes not attached to real property within the district and their assessor codes. • Businesses that lease property from tax exempt entities and pay a beneficial use tax. Centrally Assessed Properties The following centrally assessed property was identified within Pole Yard URD: 327 Pole Yard Urban Renewal District Plan – 2020 Page 16 Approximately 1.35 linear miles of Burlington Northern / Montana Rail Link right-of-way. 06-0799-06-4-41-37-2000 Montana Rail Link Mail to Washington Corp PO Box 16630 Missoula, MT 59808-6630 06-0799-08-2-15-01-0000 Montana Rail Link Inc PO Box 16390 Missoula, MT 59808-6390 Other addresses: Montana Rail Link Mail to Real Estate Dept. PO BOX 16624 Missoula, MT 59808-6624 Burlington Northern Railroad Co Property Tax Dept. PO Box 961089 Fort Worth, TX 76161-0089 Approximately 0.9 miles of “Hazardous Liquid” pipeline. Yellowstone Pipeline Co 318 W Griffin Dr Bozeman, MT 59715 Yellowstone Pipeline Co PO BOX 5600 Bartlesville, OK 74005-5600 A NorthWestern substation in Section 5, T 2 S, R 6 E, described as Taxcode: RGH51909, Northern Pacific Addition. 06-0799-05-3-01-01-0000 NorthWestern Energy 40 E Broadway St Butte, MT 59701-9350 This information is intended to help document notice requirements and assist the Montana Department of Revenue with recognition of the District. The veracity of this information, obtained from the Montana Department of Revenue cadastral records, shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. Taxing Jurisdictions The City of Bozeman sent letters to the affected taxing jurisdictions noticing them of the opportunity to meet and consult prior to and at the public hearing on the creation of the URD, held on October 27th, 2020. Due to a noticing error, the public hearing set for October 27th, 2020 was postponed until November 10, 2020. Letters were sent to the following addresses: Bozeman Public Schools Bob Conners, Superintendent 404 West Main Street 328 Pole Yard Urban Renewal District Plan – 2020 Page 17 Bozeman MT 59715 Bozeman Public Schools Steve Johnson, Operations 404 West Main Street Bozeman MT 59715 Bozeman Public Schools Mike Waterman, Business Services 404 West Main Street Bozeman MT 59715 Gallatin County Board of County Commissioners 311 West Main, Room 306 Bozeman, MT 59715 Gallatin County Jennifer Blossom, Treasurer 311 West Main, Room 103 Bozeman, MT 59715 Gallatin County Jim Doar, County Administrator 311 West Main, Room 304 Bozeman, MT 59715 Gallatin County Justine Swanson, Finance Director 311 West Main, Room 304A Bozeman, MT 59715 329 Pole Yard Urban Renewal District Plan – 2020 Page 18 Chapter 3. Documenting Conditions that Contribute to Blight Montana law sets forth the specific factors that characterize blight. In particular, state statute defines a blighted area as one that substantially impairs or arrests the sound development of communities or constitutes an economic or social liability. Per §7-15-4206, MCA a blighted area means “an area that is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime, that substantially impairs or arrests the sound growth of the city or its environs, that retards the provision of housing accommodations, or that constitutes an economic or social liability or is detrimental or constitutes a menace to the public health, safety, welfare, and morals in its present condition and use, by reason of: (a) the substantial physical dilapidation; deterioration; defective construction, material, and arrangement; or age obsolescence of buildings or improvements, whether residential or nonresidential; (b) inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as determined by competent appraisers on the basis of an examination of the building standards of the municipality; (c) inappropriate or mixed uses of land or buildings; (d) high density of population and overcrowding; (e) defective or inadequate street layout; (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (g) excessive land coverage; (h) unsanitary or unsafe conditions; (i) deterioration of site; (j) diversity of ownership; (k) tax or special assessment delinquency exceeding the fair value of the land; (l) defective or unusual conditions of title; (m) improper subdivision or obsolete platting; (n) the existence of conditions that endanger life or property by fire or other causes; or (o) any combination of the factors listed in this subsection (2).” (Montana Laws) As discussed below, the area of this review, which encompasses 273.3 acres including rights-of- way, and parcels are 149.1 acres of the total, exhibits several conditions that contribute to blight. This review identified that the following eight conditions that contribute to blight, as set forth in §7-15-4206 MCA, are present within the Pole Yard URD: 1. (a) physical dilapidation, deterioration, age obsolete structures and improvements; 2. (c) inappropriate or mixed uses of land or building; 3. (e) defective or inadequate street layout; 330 Pole Yard Urban Renewal District Plan – 2020 Page 19 4. (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; 5. (h) unsanitary or unsafe conditions; 6. (m) improper subdivision or obsolete platting; 7. (n) the existence of conditions that endanger life or property by fire or other causes; or 8. (o) any combination of the factors. The examination of the area revealed the following examples of conditions that contribute to blight: 1. (a) the substantial physical dilapidation; deterioration; defective construction, material, and arrangement; or age obsolescence of buildings or improvements, whether residential or nonresidential Conditions relating to this factor are evident in three categories - public structures and improvements, quasi-public improvements and private structures and improvements. Physical deterioration of private structures and improvements is evident in the lack of maintenance of building facades, business signage, landscaping and irrigation, ADA compliance, parking facilities and paving, storm drainage, and life safety. Defective arrangement of quasi-public improvements can be seen in overhead electric lines, lack of natural gas lines, lack of or limited communication lines and services (broadband, dark fiber, etc.). Obsolescence of public structures and improvements is evident in such things as the use of on-site wells, septic tanks and rural storm drainage, the scarcity of municipal signage, street lighting and fire hydrants, and street pavement deterioration due to lack of storm drainage, curbs, gutters, and sidewalks. Examples of this can be seen in but not limited to: ✓ The lack of public and quasi-public improvements in the roads and services available to the undeveloped/agricultural land along Cedar Street and Bohart Lane as well as the material storage yards on Pear Street. ✓ The deterioration of private structures and improvements such as vandalism (unauthorized graffiti and other defacement of property). 2. (c) inappropriate or mixed uses of land or buildings Throughout this area are uses which do not conform with current plans, standards or codes. Other conditions relating to this factor include low density or vacant lands in the urban core, encroachment into the public rights-of-way and lack of connectivity. For example, the Pole Yard is largely vacant and underutilized. Vacant land in the urban core results in lower land values and less efficient use of public infrastructure and services. Its value is further diminished by lack of or poor access. In addition, much of the area is characterized by land uses that encroach into the public rights-of- way as shown in Figure 9, below. 331 Pole Yard Urban Renewal District Plan – 2020 Page 20 Figure 9. View of East Juniper Street 3. (e) defective or inadequate street layout The area has limited transportation infrastructure. The area is characterized by dead-end streets and sidewalks, and unpaved or incomplete streets. It lacks street lighting, sidewalks, curb/gutters and storm drainage facilities. The City of Bozeman Engineers’ development review memo indicates that this area has both collector and local streets, and that all of the streets not constructed to the appropriate street standard per the City of Bozeman Design Standards and Specifications Policy and Bozeman Transportation Master Plan. The future arrangement, type, extent, width, grade and location of all streets shall be considered in relation to existing and planned streets topographical conditions, public convenience and safety, and the planned uses to be served by such streets. This defective and inadequate street layout in this area shows a lack of connectivity of vehicular, pedestrian and other modes of transportation. (Figure 10) Examples of these inadequacies are: ✓ Streets without paving, curbs, gutters, sidewalks or storm drains including Cedar Street and Bohart Lane. ✓ Streets without curbs, gutters and sidewalks including L Street and North Broadway Avenue. ✓ Streets without sidewalks including Bond Street and Gold Avenue. ✓ Inadequate street layout with limited connectivity due to dead end streets including East Oak/Birch Street, Cedar Street, and Bohart Lane. ✓ Lack of continuity in the Story Mill Spur, Oak and North Side/Village Trails. 332 Pole Yard Urban Renewal District Plan – 2020 Page 21 Figure 10. Looking North along Cedar Street 4. (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness Lots in the area are not generally in conformance, accordance or compliance with current plans, standards or codes. Examples of this can be seen in: ✓ Parking areas such as the one on Gold Avenue shown below in Figure 11, have no controlled access or egress. As this picture indicates, cars must back out of a lot into the public right of way. These poorly designed lots are difficult to maneuver and create hazards for pedestrians and other vehicles. ✓ Large lots, such as those parcels of 24 and 20 acres found along Cedar Street, which have been created for other purposes are too big to be useful for development to urban standards and need to be subdivided. Other lots are too small to be useful and may need to be aggregated. ✓ Poor access and geographic isolation – the location of more than 90 acres between Interstate 90 and the railroad right-of-way substantially impairs or arrests the sound growth of the area. The limitation created by the single access from L Street is further impaired by the at-grade railroad crossing. The lack of connectivity and guaranteed emergency access needs to be addressed, potentially by an East Oak/Birch Street extension railroad overpass. 333 Pole Yard Urban Renewal District Plan – 2020 Page 22 Figure 11. Gold Avenue 5. (h) unsanitary or unsafe conditions Conditions relating to this factor are evident in three categories including dangerous and attractive nuisances, lack of municipal infrastructure and conditions related to Superfund designation. Dangerous and attractive nuisances can include but are not limited to uncontrolled accesses, deteriorating improvements, barb wire fencing, inadequate storm drainage and broken sidewalks. The existence of outdated and rural-type services, as well as discarded materials or other attractive nuisances can result in conditions that endanger safety. In addition, there are natural hazards, such as floodplains and wetlands that must be mitigated. Examples of these include: ✓ Barbed wire fencing adjacent to Cedar Street. ✓ the unprotected attractive nuisance of Bozeman Creek or the East Gallatin River adjacent to Bohart Lane. (See picture on title page of this report.) ✓ The recently updated Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRMs) and Flood Insurance Study (FIS) will be officially adopted into local floodplain regulations (Division 38.600 BMC) within the next 12 months. These maps will be used for project planning purposes given the likelihood that development will occur after the new maps are adopted. These updated maps place a portion of the proposed URD area into the floodway and 100-year floodplain. BMC 38.600.240.A.1 prohibits new construction of any residential, commercial or industrial structure in the floodway. Compliance options are limited to siting all building improvements outside of the floodway or seeking and receiving official FEMA revision of the floodway. 334 Pole Yard Urban Renewal District Plan – 2020 Page 23 The area has limited municipal infrastructure. Future development will require the installation of complete municipal water and sanitary sewer system facilities to serve any planned development. Municipal storm sewer system facilities may also be required by the city. Examples of municipal infrastructure improvements needed include: ✓ The Lyman Tank and Transmission Main Construction, Pear St. Booster Station Upgrade, the Front Street Interceptor, and Extension 30 Inch - Little Bridger Creek and Southern Gallatin River Basin - Frontage Rd Connect to Bohart Ln to Bond St. (City of Bozeman Geographic Information System, n.d.) ✓ A grade separated railroad crossing that facilitates guaranteed access to the area for fire, police, and other first responders. ✓ The City of Bozeman Wastewater Collection Facilities Plan calls for a 30-inch diameter sanitary sewer main to be installed from Rouse Avenue at the intersection with Bond Street, extending down Bond Street and Gold Avenue to L Street and continuing to the southeast on Bohart Lane. The Idaho Pole property has been designated a Superfund site, with a portion, subject to institutional controls, delisted by the Environmental Protection Agency. (Figure 12). For example, according to the Environmental Protection Agency’s web site, in order to protect human health, response actions have been designed to prevent human exposure to contaminated soils and groundwater through treatment, engineering controls (such as capping) and institutional controls to prevent contact. To protect the environment, sources of contamination have been removed and contaminated groundwater has been treated and cleaned up through an enhanced in-situ biodegradation process. A Controlled Groundwater Use Area (CGA) was issued by the Montana Division of Natural Resources in 2001. This CGA restricts use of groundwater beneath the site for any purpose, Figure 12. Idaho Pole Superfund Site (Environmental Protection Agency Photo) 335 Pole Yard Urban Renewal District Plan – 2020 Page 24 except as provided in the remedial action or as otherwise authorized by EPA and Montana Department of Environmental Quality (MDEQ). Areas where the treated soil was placed are restricted use areas and a survey has been completed to identify these areas. The IPC filed a Notice of Institutional Control (deed restriction) with the Gallatin County Clerk and Recorder. (United States Environmental Protection Agency, n.d.) 6. (m) improper subdivision or obsolete platting The area was platted in 1883 as part of the Northern Pacific Addition to Bozeman. However, the lot pattern established in 1883 is not optimized for current urban development. It consists of large parcels intermixed with odd sized and shaped lots, many leftover remainders from the highway and railroad rights-of-way. These lots are obsolete due to lack of conformance, accordance or compliance with current plans, standards or codes. Examples include parcels of 24 and 20 acres found along Cedar Street. 7. (n) the existence of conditions that endanger life or property by fire or other causes In addition to the lack of guaranteed emergency access, a connected transportation network and complete municipal services, other conditions that endanger life or property include the at-grade railroad crossing and use of barbed wire to fence portions of the property. Other conditions may include but are not limited to buildings or properties that may not meet life safety standards such as fire sprinklers, fire hydrants and ADA compliance. Examples include: ✓ The at-grade railroad crossing lacks safety feature such as wooden barriers with flashing lights, technology to vehicle GPS, sensors to notify train. ✓ The lack of connectivity of an above or below grade railroad crossing such as the East Oak/Birch Street extension railroad overpass as shown below in Figures 13 and 14. 336 Pole Yard Urban Renewal District Plan – 2020 Page 25 8. (o) any combination of the factors listed in this subsection (2) of §7-15-4206 MCA. Any combination of factors identified can be interpreted as conditions that substantially impair or arrest the sound development of communities or constitutes an economic or social liability that contribute to blight. Other conditions contributing to blight will be identified and addressed over time. Examples of a combination of factors can be associated with such things as but not limited to noise and light pollution, vandalism (unauthorized graffiti and other defacement of property) and homeless camps. Conclusion In §7-15-4210 MCA, a municipality must find that at least three factors contributing to blight be identified in order to establish an urban renewal district. Based on the information presented in the Review and Findings of Conditions that Contribute to Blight, the City Commission on September 15, 2020 adopted Resolution No. 5145 finding that the Pole Yard URD exhibits eight conditions contributing to blight as defined by §7-15-4206(2) MCA, conditions that substantially impair or arrest the sound development of communities or constitute an economic or social liability, and are associated with one or more of the following: 1. (a) physical dilapidation, deterioration, age obsolete structures and improvements; 2. (c) inappropriate or mixed uses of land or building; Figures 13 and 14. East Oak Street/East Birch Street Dead End at Railroad Right of Way 337 Pole Yard Urban Renewal District Plan – 2020 Page 26 3. (e) defective or inadequate street layout; 4. (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; 5. (h) unsanitary or unsafe conditions; 6. (m) improper subdivision or obsolete platting; 7. (n) the existence of conditions that endanger life or property by fire or other causes; or 8. (o) any combination of the factors. The City adopted the findings regarding the existence of conditions contributing to blight within the Pole Yard area of Bozeman, and thereby declared such areas of blight exist and that the rehabilitation, redevelopment, or a combination thereof of the area is necessary in the interest of the public health, safety, or welfare of the residents of Bozeman. 338 Pole Yard Urban Renewal District Plan – 2020 Page 27 Chapter 4. Planning Consistency with the Bozeman Community Plan This comprehensive development plan must conform to the Bozeman Community Plan per §7- 15-4213, MCA. As stated in §7-15-4213, MCA prior to its approval of an urban renewal project, the local governing body shall submit the urban renewal project plan to the planning commission of the municipality for review and recommendations as to its conformity with the growth policy and the planning commission shall submit its written recommendations to the local governing body. To comply with state statute, this Pole Yard Urban Renewal District Plan must be reviewed by the Bozeman City Planning Board and found to be in conformance with the Bozeman Community Plan. The efforts of local Planning Boards to prepare land use recommendations for the Bozeman area began in 1955, when the first municipal Planning Board was formed. In April of 1958, S.R. DeBoer & Company (planning consultants from Denver, CO) prepared Bozeman’s first Master Plan. It included studies on transportation, street planning, zoning districts, parks and recreation, schools, park roads, and sanitation and health. The Bozeman Community Plan was duly adopted as the growth policy by the Bozeman City Commission by City of Bozeman Resolution No. 4163, dated June 1, 2009. On August 17, 2020, the City Planning Board forwarded their positive recommendation on an update to the growth policy to the City Commission. The Planning Board reviewed the Pole Yard Urban Renewal District Plan on October 5, 2020 and recommended favorably, finding the Plan to be in compliance with the 2009 growth policy. The Pole Yard Urban Renewal District Plan was scheduled for final adoption on November 10, 2020 but due to a noticing error, final action was delayed until November 24, 2020. The City Commission adopted a new growth policy, the Bozeman Community Plan 2020, on November 17, 2020 with an effective date of November 19, 2020. The two community plans share similar priorities and goals and there are no conflicts between the documents applicable to the Pole Yard Urban Renewal District Plan. In addition, Bozeman has completed many infrastructure and topic plans that have some influence on the area included under the Pole Yard Urban Renewal District Plan. An applicable plan is the 2012 Bozeman Creek Enhancement Plan. An applicable topic plan is the City’s adopted 2016 Economic Development Strategy, which affirms the Commission’s economic development priorities by facilitating mid- to high wage job growth and industry diversification. Community partners work together in support of the primary tenets of the strategy: 1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses; and 2. Invest in infrastructure to drive economic development; and 3. Support education and workforce development initiatives to provide businesses with qualified workers. (City of Bozeman, 2016) 339 Pole Yard Urban Renewal District Plan – 2020 Page 28 An evaluation of conformance and accordance must consider the Bozeman Community Plan document as a whole and a combination of all factors including such as relevant goals, objectives, implementation, and land use designations. Plans are not required to address all the goals and objectives, but they should not contradict aspects of the Bozeman Community Plan. On October 5th, 2020, the City Planning Board reviewed the Pole Yard Urban Renewal District Plan and found it to be in conformance with the Bozeman Community Plan per statutory requirements. Growth Policy Review The Bozeman Community Plan was reviewed to determine whether the growth policy adequately supports Pole Yard Urban Renewal District Plan as an urban renewal project (per §7-15-4213, MCA). The Bozeman Community Plan has been found to include: • Goals and objectives that support urban renewal, economic development, and development of infrastructure that encourages urban renewal and economic development in the community. • Policies and actions, including tax increment financing, that can be implemented to achieve the goals and objectives stated in the Bozeman Community Plan. • Future land uses, identified through maps and/or described in the text, that will execute the growth policy. Goals and Objectives A review of the overall goals and objectives of the growth policy finds no conflicts with an urban renewal project/plan in the area. The specific goals and objectives found in the Bozeman Community Plan, selected from the compilation of general goals and objectives, that further urban renewal and promote economic development for the elimination of conditions that contribute to blight, deliver efficient public services, facilitate job growth and economic strength in Bozeman as described in purpose and intent of the Pole Yard Urban Renewal District Plan are as follows: ➢ Land Use Objective LU-4.4: Review and revise the City’s regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. ➢ Land Use Objective LU-4.8: Promote the efficient use of water, energy, land, human resources, and natural resources and protect water supply quantity and quality. ➢ Community Objective C-1.3: Support compatible infill within the existing area of the City rather than developing land requiring expansion of the City’s area. ➢ Community Objective C-2.1.: Require adequate and efficient circulation in all subdivisions and site plans and provide connectivity between developments and major destinations for both the pedestrians and vehicles, including human powered vehicles. 340 Pole Yard Urban Renewal District Plan – 2020 Page 29 ➢ Community Objective C-6.3: Encourage and support energy conservation and efficiency in all aspects of development. ➢ Economic Development Objective ED-1.1: Support business creation, retention, and expansion. Emphasize small businesses, ‘green’ businesses, and e-businesses. ➢ Economic Development Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. ➢ Economic Development Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. ➢ Economic Development Objective ED-1.5: Encourage, through the use of incentives, the development of business and industry that provides wages that are proportionate to, or are higher than, the cost of living and provide options to expand skills and opportunities for Bozeman’s workforce. ➢ Economic Development Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. ➢ Economic Development Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. ➢ Economic Development Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. ➢ Economic Development Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. ➢ Recreation Goal R-3: Promote business growth and economic development. ➢ Transportation Objective T-1.4: Ensure that adequate interconnections are made throughout the transportation system to ensure a variety of alternatives for trip routing and reduce total travel distance. ➢ Transportation Objective T-2.4: Seek and provide adequate funding to improve and maintain the functionality of all elements of the transportation system. ➢ Public Services Goal PS-3: Establish regular and sufficient funding sources to acquire, develop, and maintain public services, and meet the community’s needs. ➢ Regional Coordination and Cooperation Objective RCC-1.4: Encourage development within Bozeman so that services can efficiently be provided. The accordance with the Montana Urban Renewal statute, an urban renewal district plan, such as the Pole Yard Urban Renewal District Plan, has, as its core mission, to provide long term economic stability and to use planning and development of public infrastructure as tools for well managed growth. This mission is in conformance with the goals and objectives of the Bozeman 341 Pole Yard Urban Renewal District Plan – 2020 Page 30 Community Plan. In keeping with this mission, the goals of the Pole Yard Urban Renewal District as stated in the Urban Renewal District Plan are: GOAL 1. Promote Innovative Economic Development GOAL 2. Enable Enhanced Connectivity and Mobility GOAL 3. Invest in Efficient Delivery of Public Infrastructure GOAL 4. Foster Urban Neighborhood Coherency GOAL 5. Protect Public Health GOAL 6. Encourage the Retention of Existing Businesses GOAL 7. Respect Critical Environments Implementation Policies and Actions The Bozeman Community Plan establishes a foundation for programs as well as more detailed plans, such as urban renewal district plans with tax increment financing programs. Implementation strategies and tools found in Table 16-1 Implementation Policies and Actions of the Bozeman Community Plan that are applicable to the Pole Yard Urban Renewal District Plan and demonstrate conformance of the plan to the growth policy are paraphrased as follows: 3. Research and implement incentives and regulations and publicize existing incentives, in accordance with the Bozeman Community Plan, that encourage development within the City of Bozeman. 3b. Provides high quality and cost-effective public services 9. Encourages infill and redevelopment. 11. Continues programs which support adaptive reuse and reinvestment 11c. Continues support of multi-modal and shared transportation facilities 12c. Continues support for multi-modal transportation, land use efficiency, and other sustainable practices 13. Furthers awareness of the interrelationships of economic, environmental, and community issues 14. Coordinates adequate infrastructure 16c. Protect safety and avoid blight. 21a. Uses and publicizes incentives, such as, but not limited to, public infrastructure funding support and tax abatement, to encourage commercial and residential development or redevelopment of identified infill areas, including brownfields and the Historic Core 33. Establishes public/private partnerships to complete hazard/risk analyses of historic sites and properties and neighborhoods to determine vulnerability and recommend and implement appropriate mitigation. 342 Pole Yard Urban Renewal District Plan – 2020 Page 31 49. Supports the creation and expansion of local businesses. 49e. Maintain and seeks to expand resources available through the City’s revolving loan fund and urban renewal districts. 49g. Increases awareness of existing economic and other benefits of and further develop incentives for locating and operating benefits within City limits. 53. Recognizes sustainability as a component of economic development. The adoption of the Pole Yard Urban Renewal District Plan would enable the City of Bozeman to implement the strategies and associated tools in the Bozeman Community Plan, as intended by the Montana Urban Renewal statutes. This Plan provides for the opportunity to use tax increment financing to assist with redevelopment and revitalization activities and encourage business retention and growth. The Plan also supports the investment in infrastructure that encourages urban renewal and economic development in the neighborhood. Future Land Use The Bozeman Community Plan provides a visual policy statement by identifying the future land use patterns through maps and/or text to help achieve the goals and objectives of the growth policy. The Bozeman Community Plan designates the majority of the future land use for the area included in the Pole Yard Urban Renewal District as “Industrial”. The Bozeman Community Plan designates the single dwelling and accompanying land off of L Street as “Residential”. A small piece of the “Northside/Village" trail adjacent to the railroad rights-of-way is designated by the Bozeman Community Plan as “Parks, Open Space and Recreation”. The future land use in the vicinity of the Pole Yard URD is shown in the map below (Figure 15). 343 Pole Yard Urban Renewal District Plan – 2020 Page 32 Figure 15. Community Plan Future Land Use 344 Pole Yard Urban Renewal District Plan – 2020 Page 33 The Bozeman Community Plan’s Table C-16 Zoning Correlation with Land Use Categories indicates that: • The “Industrial” land use category can be implemented through one of the five industrial type zoning districts, including M-1 and M-2. • The “Residential” land use category can be realized via one of the numerous residential types zoning districts, including R-S. • The “Parks, Open Space and Recreation” land use category was created for a variety of purposes under all zoning districts. At some point in time, development in the Pole Yard may require an amendment to the current future land use designations, this Plan does not suggest any revision to the existing future land use designations as found in the Bozeman Community Plan. The evaluation of the Plan with its respect to conformance with the Bozeman Community Plan’s future land use designation finds that the Plan provides for redevelopment of the existing industrially designated area to promote economic development, with a focus on commerce. Zoning Accordance Land use within the City of Bozeman is regulated through zoning under the Bozeman Unified Development Code. The zoning of the area included in the Pole Yard URD must be reviewed for accordance with the Bozeman Community Plan. The City adopted its first zoning ordinance in 1941. The current zoning ordinance, the Unified Development Code of the City of Bozeman, Chapter 38 of the Bozeman Municipal Code was originally adopted in 2005, with the most recent extensive amendment by Ordinance No. 1769, effective on December 28, 2009. The zoning of the area included in the Pole Yard Urban Renewal District must be found to be in accordance with the Bozeman Community Plan. On October 5, 2020, the City Planning Board reviewed the zoning of the area included in the Pole Yard Urban Renewal District as follows in this section and found the zoning to be in accordance with the growth policy. In summary, a purpose of the Bozeman Unified Development Code is to implement the goals and objectives of the Bozeman Community Plan; the city’s adopted growth policy. The zoning in the vicinity of the Pole Yard URD is shown in the map below (Figure 16). The core of the lands within the Pole Yard Urban Renewal District is zoned “M-2 Manufacturing and Industrial”, and the majority of the lands adjacent to the core of the Pole Yard Urban Renewal District is zoned “M-1, Light Manufacturing”. 345 Pole Yard Urban Renewal District Plan – 2020 Page 34 Figure 16. Zoning 346 Pole Yard Urban Renewal District Plan – 2020 Page 35 “M-1” and “M-2” zoning allows a variety of industrial uses and related support commerce as described in the Bozeman Unified Development Code. The intent of the “M-2” manufacturing and industrial district is to provide for heavy manufacturing and industrial uses, servicing vocational and employment needs of city residents. The intent of the “M-1” light manufacturing district is to provide for the community's needs for wholesale trade, storage and warehousing, trucking and transportation terminals, light manufacturing, and similar activities. The district should be oriented to major transportation facilities yet arranged to minimize adverse effects on residential development, therefore, some type of screening may be necessary. The single dwelling and accompanying land off of L Street is zoned RS, Residential Suburban District. The intent and purpose of the R-S residential suburban district is to commemorate and preserve existing RS zoning only. In evaluating the uses supported by the Pole Yard Urban Renewal District Plan for accordance of the area’s zoning with the Bozeman Community Plan, it is found that the zoning of the area in the District supports the purposes of the Bozeman Unified Development Code. The Pole Yard Urban Renewal District Plan is primarily intended to support commerce, which is industrial in character. The Pole Yard Urban Renewal District Plan provides a plan for redevelopment of the existing industrially designated area to eliminate conditions that contribute to blight and attract new economic development. The Pole Yard Urban Renewal District Plan does not suggest any revision to the existing zoning classifications of the Bozeman Unified Development Code. Conclusions 1. The Pole Yard Urban Renewal District Plan has been evaluated with respect to the relevant goals and objectives of the Bozeman Community Plan, and the Pole Yard Urban Renewal District Plan is found to be in conformance with the Bozeman Community Plan. 2. The zoning in the Pole Yard Urban Renewal District has been evaluated with respect to the Bozeman Community Plan, and the zoning in the Pole Yard Urban Renewal District is found to be in accordance with the Bozeman Community Plan. 347 Pole Yard Urban Renewal District Plan – 2020 Page 36 Chapter 5. Goals and Strategies of the Urban Renewal District Plan Introduction This chapter presents the goals and strategies for addressing conditions of blight and infrastructure deficiencies within the Pole Yard Urban Renewal District. These goals and strategies address the needs identified in the Resolution of Necessity (Res. No. 5145) adopted on September 15th, 2020 by Bozeman City Commission. They support the goals in the Bozeman Community Plan and other appropriate planning documents, the urban renewal powers afforded to local governments in the Montana urban renewal statutes and meetings with the public and City of Bozeman staff in August and September of 2020. Public comments can be found in Appendix A. (Meeting on September 9th, 2020) This URD Plan provides guidance for activities that will be undertaken by a variety of public and private entities. It suggests a variety of planning and program initiatives and capital projects that may be undertaken by the City of Bozeman to encourage investment in the district, which will in turn address conditions that have diminished its development potential over time. Following are the goals of this Urban Renewal District Plan and associated strategies. These goals support the overall purpose and intent of the Pole Yard Urban Renewal District as presented in Chapter 1 and restated below: The Purpose and Intent of the Pole Yard Urban Renewal District and Plan The creation of the URD in the Pole Yard enables the City of Bozeman to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. Goals of the Pole Yard Urban Renewal District Plan GOAL 1. Promote Innovative Economic Development Rationale: Commerce strengthens the community, opens reinvestment opportunities, enables livable wage jobs, and supports the sound growth of the community, helping to eliminate conditions that contribute to blight. GOAL 2. Enable Enhanced Connectivity and Mobility Rationale: Connecting neighborhoods through investments in multi- model transportation corridors strengthens the fiber of the community. GOAL 3. Invest in Efficient Delivery of Public Infrastructure Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in 348 Pole Yard Urban Renewal District Plan – 2020 Page 37 infrastructure. Capital improvements will help achieve economic vitality and support the delivery of public services. GOAL 4. Foster Urban Neighborhood Coherency Rationale: Higher concentration of development achieves greater efficiency in the delivery of public services. Urban growth, oriented to centers of employment and activity, can reduce or eliminate commute times, lower transportation costs and create vitality and a sense of community. Integrated elements of growth, ensuring a cohesive neighborhood that in turn contributes to the well-being of the entire community, will reduce geographic, as well as economic and social isolation. GOAL 5. Protect Public Health Rationale: An area that includes a superfund site presents the need for increased diligence to comply with the obligation to not exacerbate the human health contact risk or environmental contamination. GOAL 6. Encourage the Retention of Existing Businesses Rationale: Urban infill development can affect the community through such things as additional traffic and noise, particularly when the existing public systems do not meet current standards. GOAL 7. Respect Critical Environments Rationale: Riparian and wetland areas provide benefits to the community through such things as filtering urban runoff, providing habitat for wildlife and flood protection. Strategies The realization of these goals will depend on a strategic approach that includes planning, program design and implementation, and capital investment. The listed actions associated with each goal support thoughtful and sustainable economic development and the successful elimination of conditions that contribute to blight. The strategies described below should not be viewed as limiting but should be seen as potential actions and thought-provoking opportunities to develop new ideas to further implementation of this Plan. GOAL 1. Promote Innovative Economic Development 1.1. Planning, such as 1.1.1. Support area and issue specific planning, such as targeted marketing 1.1.2. Further public-private partnerships such as among: 349 Pole Yard Urban Renewal District Plan – 2020 Page 38 1.1.2.1. Landowners, the Montana Department of Environmental Quality, the U.S. Environmental Protection Agency 1.1.2.2. Landowners, Burlington Northern Santa Fe and Montana Rail Link 1.1.2.3. Existing and potential businesses 1.1.2.4. Local, regional, state and federal entities 1.1.3. Examine the usefulness of incentive programs such as: 1.1.3.1. Targeted commerce recruitment 1.1.3.2. Work force training 1.2. Implementation, such as 1.2.1. Establish incentive programs determined to further city policies GOAL 2. Enable Enhanced Connectivity and Mobility 2.1. Planning, such as 2.1.1. Support area and issue specific planning such as: 2.1.1.1. Trails 2.1.1.2. Bikeways 2.1.1.3. Public transit 2.1.1.4. Connectivity points 2.1.2. Develop public-private partnerships such as among: 2.1.2.1. Landowners, trail groups and biking organizations 2.1.2.2. Local, regional, state and federal entities 2.2. Implementation, such as 2.2.1. Support trail maintenance programs 2.2.2. Support trail enhancement projects, like wellness stations and interpretive signs 2.2.3. Invest in nonmotorized use associated with new connectivity points, such as a vehicular railroad overpass with sidewalks and bike lanes. 2.2.4. Invest in expansion of nonmotorized transportation systems GOAL 3. Invest in Efficient Delivery of Public Infrastructure 3.1. Planning, such as 3.1.1. Support area and issue specific planning such as: 3.1.1.1. Capital improvements 3.1.1.2. Transportation 3.1.1.3. Transportation connections providing additional access 3.1.1.4. Fee mitigation programs 3.1.2. Develop public-private partnerships such as among: 3.1.2.1. Landowner and the City of Bozeman 3.1.2.2. Local, regional, state and federal entities 3.1.2.3. Public, quasi-public and private infrastructure providers 350 Pole Yard Urban Renewal District Plan – 2020 Page 39 3.2. Implementation, such as 3.2.1. Invest in public infrastructure projects to eliminate conditions that contribute to blight 3.2.2. Invest in implementation of municipal capital improvement plans 3.2.3. Leverage public and private funds for public infrastructure connectivity 3.2.4. Support the accommodation of communication and technological advances 3.2.5. Promote investment in the interface between commerce and transportation access such as rail spurs and transloading facilities 3.2.6. Support fee mitigation programs determined to further city policies GOAL 4. Foster Urban Neighborhood Coherency 4.1. Planning, such as 4.1.1. Support area and issue specific planning 4.1.2. Foster neighborhood and community coherency strategies 4.1.3. Engage in the on-going evaluation of land use code requirements to remove obstacles to developing a core neighborhood 4.1.4. Create a neighborhood identity 4.2. Implementation, such as 4.2.1. Support outreach, education and community engagement 4.2.2. Invest in urban design elements 4.2.3. Market neighborhood identity GOAL 5. Protect Public Health 5.1. Planning, such as 5.1.1. Support area and issue specific planning 5.1.2. Further public-private partnerships such as among: 5.1.2.1. Landowners, the Gallatin Local Water Quality District, the Gallatin City-County Board of Health, the Montana Department of Environmental Quality and the U.S. Environmental Protection Agency 5.1.2.2. Local, regional, state and federal entities 5.2. Implementation, such as 5.2.1. Establish incentive programs determined to further city policies 5.2.2. Support compliance with environmental mitigation requirements 5.2.3. Support compliance with institutional controls 351 Pole Yard Urban Renewal District Plan – 2020 Page 40 GOAL 6. Encourage the Retention of Existing Businesses 6.1. Planning, such as 6.1.1. Support area and issue specific planning, such as: 6.1.1.1. Targeted marketing 6.1.1.2. Capital Improvements 6.1.1.3. Transportation 6.1.1.4. Neighborhood land use 6.1.2. Further public-private partnerships such as among: 6.1.2.1. Landowner and the City of Bozeman 6.1.2.2. Landowners, Burlington Northern Santa Fe and Montana Rail Link 6.1.2.3. Existing and potential businesses 6.1.2.4. Local, regional, state and federal entities 6.1.2.5. Public, quasi-public and private infrastructure providers 6.1.3. Examine the usefulness of incentive programs such as workforce training 6.2. Implementation, such as 6.2.1. Invest in public infrastructure projects to eliminate conditions that contribute to blight 6.2.2. Invest in implementation of municipal capital improvement plans 6.2.3. Leverage public and private funds for public infrastructure connectivity 6.2.4. Support the accommodation of communication and technological advances 6.2.5. Promote investment in the interface between commerce and transportation access such as rail spurs and transloading facilities 6.2.6. Support fee mitigation programs determined to further city policies GOAL 7. Respect Critical Environments 7.1. Planning, such as 7.1.1. Support area and issue specific planning for critical environments 7.1.2. Develop public-private partnerships such as among: 7.1.2.1. Landowners, conservation groups and public access organizations 7.1.2.2. Local, regional, state and federal entities 7.2. Implementation, such as 7.2.1. Support public access and interpretation programs 7.2.2. Support compliance with environmental mitigation requirements 7.2.3. Support compliance with institutional controls 7.2.4. Invest in expansion of public access systems 352 Pole Yard Urban Renewal District Plan – 2020 Page 41 Chapter 6. Project Evaluation Criteria In urban renewal areas there are usually multiple projects proposing to take advantage of limited financial resources. Chapter 7 of this Plan provides a list of potential funding sources, including Tax Increment Financing (TIF), that can be used in financing urban renewal projects and programs. However, given the numerous urban renewal activities that could potentially occur within the Pole Yard Urban Renewal District, it will be necessary to review each proposed project or program with respect to the following guiding principles as well as identified goals and strategies found in Chapter 5. Guiding Principles This Pole Yard Urban Renewal District Plan reflects sound public policy and thoughtful planning. To this end the following principles will guide urban renewal projects and programs in the URD. Readiness – The development of the Pole Yard site will occur as resources become available and opportunities present themselves. In some cases, public projects will occur in support of private investment that would otherwise not occur without that corresponding investment in infrastructure. Developers who have secured public approvals and/or project funding have demonstrated a level of readiness. Program initiatives or funding opportunities may help bring urban renewal projects forward. Leveraging – Projects that make use of a variety of public and private resources including state and federal grants, loans and specialized tax credits, as well as tax increment funds will be encouraged to the extent that resources are available and they support the intent and purpose of this district. These would include improvements to shared rights-of-way and other connecting infrastructure. Design – The intent of the Pole Yard URD is to emphasize planning that fosters Bozeman’s desired urban density and design. The attainment of urban density helps to achieve greater efficiency in the delivery of public services. Programs will be crafted to eliminate blighted conditions through the attraction of commerce, industries and other complimentary development. The opportunity for the development of work-force housing is also important. Increasingly, people seek job opportunities that offer housing within walking distance of their places of employment. In addition, opportunities to create connectivity to other areas of the community, including pedestrian and other non-motorized access will be important. For example, improvements to the existing trail system, given the Pole Yard URD’s proximity to amenities such as Story Mill Park. Partnerships – The successful redevelopment of the Pole Yard URD will depend on partnerships among public and private entities, including landowners, business owners, the State of Montana DEQ, EPA, the City of Bozeman and others. Significant private investment will likely require associated public financing of municipal and quasi-public improvements, such as multi-modal 353 Pole Yard Urban Renewal District Plan – 2020 Page 42 transportation facilities, sewer and water improvements, utilities and communication (including broadband) infrastructure. Criteria Description Based on these guiding principles, the following criteria will be used in evaluating projects and programs and in setting priorities, in the context of limited financial resources. These criteria are listed in no order of importance. 1. Required Criteria a. Montana Urban Renewal Statute – What specific statute(s) support the Project? Does it contradict any statute? b. Bozeman Growth Policy – What strategies, visions, goals and objectives set forth in the City’s guiding documents does the Project reflect? Does it contradict any of the applicable policies? c. Pole Yard Urban Renewal District Plan – What goals and strategies does the project support? Does it contradict any goals or strategies? d. Consistency with other adopted plans. – Does the project reflect the vision, goals and objectives set forth in other adopted plans? Does it contradict any applicable policies? e. City of Bozeman Municipal Codes – Is the Project in compliance with all applicable Bozeman Municipal Codes? f. All other applicable codes – Is the Project in compliance with all applicable codes and regulations? 2. Suggested Criteria a. Purpose and intent – Does the project foster commerce/economic development? Does it address conditions that have contributed to blight? b. Project design and readiness – Is the project ready to move forward? For example, are any necessary permits in place? Has due diligence been completed? Does the project lend itself to phasing or segmentation that enables portions of the project to stand alone? c. Leverage ratios of public to private funds invested – Are urban renewal dollars leveraging private investment? For example, does the installation of public infrastructure correspond to investment in business? What is the percent of public dollars invested in the infrastructure as compared to private dollars? Does the project provide for economies of scale to enhance efficiency? d. Health and safety concerns – Does the project address a condition of blight that endangers the “health, safety….and welfare” of the residents? Does it improve fire and life safety requirements? Does it reduce emergency response time? e. Opportunity to take advantage of initiatives and funding sources – Does the project or program enable the City to take advantage of an initiative or funding source that can be matched or leveraged by urban renewal dollars and/or private investment? Does the Project use innovative funding strategies to take advantage of potential opportunities? 354 Pole Yard Urban Renewal District Plan – 2020 Page 43 f. Critical infrastructure and/or connectivity needs – Does the project enable better connectivity within the urban renewal district and/or between the urban renewal district and the community? For example, projects that support improved multi-modal transportation or better access to the community telecommunications network might be given greater priority. Does the project foster key transportation connections that improve district access? g. Opportunity to support planned urban density and design – Does the project or program provide for increased efficiency in delivery of services, increase live-work opportunities and/or community interaction? Does the project support mixed use developments, including housing opportunities, to increase neighborhood vitality? h. Job creation – Does the program or project create new employment opportunities and/or opportunities for workforce training? Projects that create more jobs per public funds invested will be more desirable. There may also be opportunities to partner with businesses, organizations and educational entities to provide vocational and professional training. i. Resulting increase in taxable value – Does the project improve the overall property tax base within the district, increasing the amount of tax increment dollars available for urban renewal activities? Over the long term, improving the tax base can assure continued economic health within the urban renewal district and the community’s well-being into the future. j. Resulting increase in tax increment revenue – Will the project increase the amount of tax increment dollars available for urban renewal activities or is there an intent to seek a property tax abatement? k. Ability of project to enhance Pole Yard’s role as a key economic activity generator – Does the project support, rather than compete with, other community economic development initiatives? Does the Project ensure accommodations in infrastructure development to enable response to changes in technology? l. Sustainability – one-time infusion of funds versus on-going need for funding – Will the project require on-going support to be sustainable? Are other, longer- term funding strategies considered in project planning? m. Linkages – Does the project link to other sectors such as education, to take advantage of associated job training programs, research and development, and technology transfer? How the Criteria are Used The extent to which these criteria are applied will depend on the specific project or program being considered. They are intended to provide a decision-making framework to set priorities. In most cases, only some of the criteria would apply for a specific project or program. For instance, some projects might rank higher with respect to job creation, while others may result in greater private investment. Public investment in infrastructure to improve connectivity may or may not result in an increase in taxable value. Through the process of preparing annual work 355 Pole Yard Urban Renewal District Plan – 2020 Page 44 plans, more specificity may be assigned to some or all the criteria, based on changing community and district priorities. Given the wide range of potential activities, the criteria will be particularly effective in evaluating similar project proposals, such as multiple proposals to install public infrastructure, or in reviewing applications for grants and loans. The criteria can also be used to develop more specific guidelines for grant and loan programs established under this plan. The criteria become particularly important as recommendations are made to the City Commission regarding the funding of projects and programs during the budget approval process. Demonstrating how each proposed activity meets the criteria will assist the Commission in evaluating its appropriateness with respect to the goals and strategies of the urban renewal plan as well as of the community overall. 356 Pole Yard Urban Renewal District Plan – 2020 Page 45 Chapter 7. Implementation The Pole Yard Urban Renewal District Plan provides a framework for revitalization activities. Upon its adoption, this Plan will serve as the official policy guide for public action. However, these policies can only be transformed to action through an effective implementation program. Key to implementation will be sound processes of administration, financing and program evaluation. Administration Under §7-15-4231, MCA, the exercise of powers related to urban renewal, a municipality may itself exercise its urban renewal project powers, or may, “if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency created under §7-15-4232, MCA, or a department or other officers of the municipality as they are authorized to exercise under this part and part 43.” The City of Bozeman may establish an urban renewal agency under this provision to direct the projects and programs outlined in this Urban Renewal District Plan. As provided in the statute, the City Commission would appoint five members to the agency’s board, who would be responsible for developing and implementing programs. Since 2006, the City of Bozeman has chosen to exercise its urban renewal project powers directly, rather than establish a separate urban renewal agency. The City Commission has created an urban renewal board for three of the five other urban renewal districts to serve in an advisory capacity to the Commission in planning for, implementing and administering a program of rehabilitation and revitalization. In the other two urban renewal districts, the City, in conjunction with the property owners, has determined that there are not enough property owners to warrant a formal advisory board. The board provides opportunities for stakeholders in the District, including property owners, business owners, residents and school district representatives to participate in formulating urban renewal projects and programs. At this point in time and due to the ownership of the Pole Yard, the City has chosen to utilize staff in an advisory capacity in the planning for, implementing and administering a program of revitalization for the District. Like other Districts, the Pole Yard URD will prepare annual work programs and budgets, listing the activities and costs of the activities for the coming fiscal year, as well as the method of financing those activities is reviewed and approved by the City Commission. This program and budget can be amended during the fiscal year considering funding and program opportunities and changes. Urban renewal activities undertaken must be in accordance with Montana State statute. (The specific provisions of §7-15-4233, MCA are below in Figure 17.) Figure 17. 7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1) In the event the local governing body makes such determination, such body may authorize the urban renewal agency or department or other officers of the municipality to exercise any of the following urban renewal project powers: 357 Pole Yard Urban Renewal District Plan – 2020 Page 46 (a) to formulate and coordinate a workable program as specified in 7-15-4209; (b) to prepare Urban Renewal Plans; (c) to prepare recommended modifications to an urban renewal project plan; (d) to undertake and carry out urban renewal projects as required by the local governing body; (e) to make and execute contracts as specified in 7-15-4251, 7-15-4254, 7-15-4255, and 7-15-4281, with the exception of contracts for the purchase or sale of real or personal property; (f) to disseminate blight clearance and urban renewal information; (g) to exercise the powers prescribed by 7-15-4255, except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages shall be reserved to the local governing body; (h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7-15-4257; (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area; (j) to insure real or personal property as provided in 7-15-4258; (k) to effectuate the plans provided for in 7-15-4254; (l) to prepare plans for the relocation of families displaced from an urban renewal area and to coordinate public and private agencies in such relocation; (m) to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements; (n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of urban renewal projects; (o) to negotiate for the acquisition of land; (p) to study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto; (q) to organize, coordinate, and direct the administration of the provisions of this part and part 43; (r) to perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and performance of the duties and responsibilities entrusted to the local governing body. (2) Any powers granted in this part or part 43 that are not included in subsection (1) as powers of the urban renewal agency or a department or other officers of a municipality in lieu thereof may only be exercised by the local governing body or other officers, boards, and commissions as provided under existing law. Annual report The Montana Urban Renewal Law includes requirements for annual reporting for Districts with a TIF provision in §7-15-4237, MCA as follows: (1) An agency authorized to transact business and exercise powers under Part 43 and this part shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. A copy of the annual report must be made available upon request to the county and school districts that include municipal territory. (2) The report must include a complete financial statement setting forth its assets, liabilities, income, and operating expenses and the amount of the tax increment as of the end of the fiscal year. The report must describe the expenditures of tax increment in the preceding fiscal year and how the expenditures comply with the approved urban renewal plan or comprehensive development plan for the district. 358 Pole Yard Urban Renewal District Plan – 2020 Page 47 (3) At the time of filing the report, the agency shall publish in a newspaper of general circulation in the community a notice to the effect that the report has been filed with the municipality and that the report is available for inspection during business hours in the office of the city clerk and in the office of the agency. Projects and Programs The City of Bozeman will implement programs and evaluate projects based on the guiding principles and goals of this Pole Yard Urban Renewal District Plan. Given that private development will be necessary to generate tax increment funds, business development must occur hand in hand with other community based economic development activities. The Pole Yard Urban Renewal Program will make use of a variety of financing in achieving the goals of this plan, including: Public Investments Urban renewal can assist the local government with meeting the public’s share of the cost of infrastructure improvements and other renewal activities through methods such as the following: • Annual Tax Increment Appropriations – The City of Bozeman may finance smaller public infrastructure improvements and renewal programs from its annual tax increment receipts by appropriation. Funds available each year would be determined by the size of the annual increment and any prior commitments (such as bond debt service requirements and administrative costs). • Tax Increment Bonds – The City of Bozeman will issue tax increment financing (TIF) revenue bonds if necessary, as revenues allow, to finance major capital projects. TIF bonds will enable the local government to finance projects up- front and then retire the debt through annual tax increment receipts. • Other Debt Financing – The City of Bozeman may borrow funds through local, state and federal loan programs to finance public improvements. Annual tax increment revenues may be used to make principal and interest payments • Local, State and Federal Funding Mechanisms – There are several funding resources available to communities to undertake planning and capital improvement projects. These are listed in the funding section below. Private Sector Development In addition to public sector investments, urban renewal can assist property and business owners in specific renewal activities through programs including the following: • Tax Increment Financing Revolving Loans – §7-15-4292, MCA provides for the establishment of loan programs, whereby TIF funds may be used to support public and private urban renewal projects in support of the goals of the Plan 359 Pole Yard Urban Renewal District Plan – 2020 Page 48 for the Urban Renewal District. As principal and interest payments are made, the funds may be loaned again, even after the TIF provision terminates. The management of a revolving loan program may be undertaken directly by the City, or through a contract with another entity. • Tax Increment Grants – In some cases grants may be made to private entities to support projects that are in the community’s best interest and are in keeping with the purposes of the Montana Urban Renewal Law. An example might be support for enhanced public features that contribute to a unifying design theme for the District. • Other Assistance – The urban renewal program can assist private sector projects in a variety of ways, by providing technical assistance (such as market analyses, business recruitment and capital improvements planning) and helping property owners access federal, state and local resources and incentives for development. Financing Resources Tax Increment Financing As noted above, the implementation of the Pole Yard Urban Renewal District Plan will include the use of Tax Increment Financing (TIF). More particularly, costs that may be paid using TIF dollars are included in §7-15-4288, MCA as follows in Figure 18: Figure 18. 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the municipality to pay the following costs of or incurred in connection with an urban renewal project, industrial infrastructure development project, technology infrastructure development project, or aerospace transportation and technology infrastructure development project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports for reusable launch vehicles with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; (5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233; (6) acquisition of infrastructure-deficient areas or portions of areas; (7) administrative costs associated with the management of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district; (8) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (9) the compilation and analysis of pertinent information required to adequately determine the needs of an urban renewal project in an urban renewal area, the infrastructure needs of secondary, value-adding industries in the industrial district, the needs of a technology infrastructure development project in the technology 360 Pole Yard Urban Renewal District Plan – 2020 Page 49 district, or the needs of an aerospace transportation and technology infrastructure development project in the aerospace transportation and technology district; (10) the connection of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district to existing infrastructure outside the district; (11) the provision of direct assistance, through industrial infrastructure development projects, technology infrastructure development projects, or aerospace transportation and technology infrastructure development projects, to secondary, value-adding industries to assist in meeting their infrastructure and land needs within the district; and (12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. A tax increment program is authorized for 15 years or longer if the tax increment revenue is pledged to the payment of tax increment bonds. §7-15-4289, MCA provides for the use of tax increments for bond payments. The tax increment may be pledged to the payment of the principal of premiums, if any, and interest on bonds, which the municipality may issue to provide funds to pay such costs. Per §7-15-4291, MCA, the City of Bozeman may enter into agreements with the other affected taxing bodies to remit to such taxing bodies any portion of the annual tax increment not currently required for the payment of the costs listed in §7-15-4288, MCA or pledged to the payment of the principal of premiums, if any, and interest on bonds. Other Financing Mechanisms There are several financial assistance programs that can be used in the development of the Pole Yard Urban Renewal District in addition to Tax Increment Financing. Financing strategies for addressing urban renewal needs identified in this Plan will likely include combining various funding sources. For example, a local special improvement district might be used in combination with a Montana Board of Investment Intercap loan to match federal or state dollars. The following is a summary of programs available to fund urban renewal projects: Transportation Infrastructure This section describes funds and funding sources that are available to finance urban renewal transportation related projects. These funding methods, such as local option taxes, improvement districts and other types of bonds, enable local citizens to participate in funding projects. In general, however, the ability to use additional property tax levies to fund urban renewal is governed by Montana Statute under 15-10-402, MCA that limits taxes to 1996 levels. A. Bridge and Road Mills (Property Taxes) Montana law provides for cities (§7-14-4101, MCA) to manage transportation infrastructure. Counties are specifically responsible for all the bridges in a county, including those within cities and towns, except those managed by the Montana Department of Transportation. Municipalities may establish a road fund under §7-14-4113, MCA. 361 Pole Yard Urban Renewal District Plan – 2020 Page 50 B. Transportation Improvement Authority Established under §7-14-1001, MCA, the purpose of a transportation improvement authority is to blend the interests of local, state, and federal governments with the interests of the public and the business community to build, modify, or improve transportation facilities and systems within its jurisdiction. A county and a municipality within a county may, by joint resolution, create a transportation improvement authority. The Authority may enter into contracts and accept local, state, federal and private funds to undertake transportation projects. C. Transportation Alternatives Program (TA Program), Montana Department of Transportation The Transportation Alternatives (TA) Program authorized under Section 1122 of the Federal Highway Administration’s Moving Ahead for Progress program -MAP-21 (23 U.S.C. 213(b), 101(a)(29)), replaces the former Community Transportation Enhancement Program. It provides approximately $4, Million annually to eligible entities including local governments, for activities defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities, and environmental mitigation; recreational trail program projects; safe routes to school projects; and projects for the planning, design or construction of boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways. D. State Fuel Tax Under 15-70-101, MCA, Montana assesses a tax on gasoline and diesel fuel used for transportation purposes. Each municipality receives a portion of the total tax funds allocated to cities and Towns based on: 1) The ratio of the population within each municipality to the total population in all cities and Towns in the State; and 2) The ratio of the street mileage within each municipality to the total street mileage in all incorporated cities and towns in the State. The street mileage is exclusive of the Interstate, National Highway, and Primary Systems. All fuel tax funds allocated to local governments must be used for the construction, reconstruction, maintenance, and repair of rural roads or city streets and alleys. Priorities for the use of these funds are established by the cities receiving them. Debt Financing – All Types of Projects Local governments can make use of various kinds of debt financing to fund urban renewal projects. In addition to Tax Increment Financing Bonds discussed above, these include revenue bonds, special improvement district bonds and general obligation bonds. Debt financing enables local governments to finance major infrastructure projects using future revenue from special assessments, user fees, and other forms of revenue. Under §7-7-4101, MCA, a local government has power to incur indebtedness by borrowing money, issuing bonds, issuing notes, entering leases and lease-purchase agreements, or entering into installment purchase contracts for the following purposes: 362 Pole Yard Urban Renewal District Plan – 2020 Page 51 1) acquiring land for and designing and erecting public buildings; 2) acquiring land for and designing and constructing sewers, sewage treatment and disposal plants, waterworks, reservoirs, reservoir sites, and lighting plants; 3) supplying the municipality with water by contract and the construction or purchase of canals or ditches and water rights for supplying municipality with water; 4) designing and constructing bridges, docks, wharves, breakwaters, piers, jetties, and moles; 5) acquiring, opening, or widening any street and improving the street by constructing, reconstructing, and repairing pavement, gutters, curbs, and vehicle parking strips and to pay all or any portion of the cost relating to the project; 6) purchasing or leasing fire apparatus, street and other equipment, and personal property, including without limitation, vehicles, telephone systems, and photocopy and office equipment, including computer hardware and software; 7) building, purchasing, designing, constructing, and maintaining devices intended to protect the safety of the public from open ditches carrying irrigation or other water; 8) funding outstanding warrants and maturing bonds; and 9) repaying tax protests lost by the local government or other municipal corporation. The local government incurs various administrative costs in conjunction with issuing bonds. These costs include the retention of legal counsel and financial consultants, the establishment of reserve funds and the preparation of the prospectus and various required documents. These bonds provide tax-free interest earnings to purchasers and are therefore subject to detailed scrutiny under both state and federal law. The citations in the Montana Code are listed below, for each type of bond described. A. Special Improvement Districts Under §7-12-4101, and §7-12-4102, MCA, cities and towns can create special improvement districts for a number of activities including: • The acquisition, construction or reconstruction of public streets and roads. • The acquisition, construction or reconstruction of sidewalks, culverts, bridges, gutters, curbs, steps and parks including the planting of trees. • The construction or reconstruction of sewers, ditches, drains, conduits, and channels for sanitary or drainage purposes, with outlets, cesspools, manholes, catch basins, flush tanks, septic tanks, connecting sewers, ditches, drains, conduits, channels, and other appurtenances. • The construction of sewer and water systems including fire hydrants. 363 Pole Yard Urban Renewal District Plan – 2020 Page 52 • The acquisition and improvement of land to be designated as public park or open-space land. • The conversion of overhead utilities to underground locations in accordance with §69-4-311 through §69-4-314, MCA. • The purchase, installation, maintenance, and management of alternative energy production facilities. B. Business Improvement District Business Improvement Districts (BIDs) are authorized under §7-12-1101 et. seq MCA. This provision of the law allows the local governing body to assess properties, upon the request of property owners within a district to fund the following activities: • provide special police, maintenance, or cleaning personnel for the protection and enjoyment of the general public using the business district; • landscape and beautify public areas and to maintain those areas; • contract with the governing body to maintain, operate, or repair public parking facilities; • contract with the governing body to maintain streets, alleys, malls, bridges, ramps, tunnels, landscaping, and other public facilities as mutually agreed upon; • promote private investment and business expansion in the district; • provide for the management and administration of the affairs of the district; • promote business activity by advertising, decorating, marketing, and promoting and managing events and other actions designed for the general promotion of business activities in the district; and • perform such other functions as are necessary to carry out the purposes of this part and to further the objectives of the district. C. General Obligation Bonds General obligation bonds are backed by the full faith and credit of the local government and must be approved by the voters in an election. General obligation bonds are generally payable from ad valorem taxes (based on the value of property) and expressed in mills. General obligation bonds are attractive to bond buyers because they have voter approval and are not as vulnerable to fluctuations in revenue. Municipalities are assigned a bond debt limit based on a percentage of taxable valuation. General obligation bonds must fall within this limit. D. Municipal Revenue Bonds Under §7-7-4401, MCA, a municipality may issue revenue bonds to finance any project or activity authorized. NOTE: Pursuant to §7-15-4218, MCA, voter approval of the urban renewal plan is required when general obligation bonds are to be used. If the plan or any subsequent modification thereof involves financing by the issuance of general obligation bonds of the municipality as authorized 364 Pole Yard Urban Renewal District Plan – 2020 Page 53 in §7-15-4302(1) or the financing of water or sewer improvements by the issuance of revenue bonds under the provisions of part 44 of chapter 7 or of part 43 of chapter 13, the question of approving the plan and issuing such bonds shall be submitted to a vote of the qualified electors of such municipality, in accordance with the provisions governing municipal general obligation bonds under chapter 7, part 42, at the same election and shall be approved by a majority of those qualified electors voting on such question. Railroad Crossing Related Programs A. Federal Surface Transportation Program - Rail/Highway Crossing Protective Devices Program The purpose of the Federal Rail/Highway Crossing – Protective Devices Program is to identify high hazard rail crossing sites and install new rail crossing signals. MDT's Rail - Highway Safety manager is responsible for surveying, identifying and prioritizing those railroad crossings that require new protective devices or upgrading of existing devices. The funds are distributed on a statewide basis determined by a priority list ranked by a hazard index. The Federal/State ratio is 90% Federal and 10% State. B. Federal Surface Transportation Program - Rail/Highway Crossing Elimination of Hazard Program The purpose of the Federal Rail/Highway Crossing – Elimination of Hazard Program is to identify high hazard rail crossing sites and construct new rail/highway grade crossings. The program also uses funds to rehabilitate existing grade separations. Grade separation projects are funded with 90% Federal funds and 10% State funds. Since funding for this program is limited, funds are often used in combination with other Federal funding sources to fund costly grade separation projects. Eligible expenditures include the separation or protection at grade crossings, reconstruction of existing crossings and relocation of highways to eliminate crossings. Projects for this program are selected by identifying those sites where only a grade separation will eliminate an identified hazard or where an existing grade separation exists but needs rehabilitation or replacement. Funding for Public Improvements (Sewer, Water, Roads, Community Facilities, Parks) A. Treasure State Endowment Program ~ Montana Department of Commerce The Montana Treasure State Endowment Program (TSEP) is a state-funded program, authorized under §90-6-701 through 710, MCA, and is administered by the Montana Department of Commerce (MDOC). It is designed to assist local governments in financing capital improvements to sewer and water facilities. Funds are derived from the Montana coal severance tax and made available to local governments as matching grants, loans and grant/loan combinations. TSEP also provides matching grants of up to $15,000 to local governments for preliminary engineering study costs. TSEP funds may not be used for annual operation and maintenance; the purchase of non- permanent furnishings; or for refinancing existing debt, except when required in conjunction with the financing of a new TSEP project. Grant requests cannot exceed $500,000 and the local government must typically provide a dollar for dollar match that can include other grant funds. Matching funds can be public or private funds provided by a TSEP applicant to directly support 365 Pole Yard Urban Renewal District Plan – 2020 Page 54 the cost of eligible project activities. There are several ways in which local governments can provide matching funds for bridge projects. Eligible types of matching funds include: • local general funds or other cash; • proceeds from the sale of general obligation, revenue, special assessment or other bonds; • entitlement or formula-based federal or state funds such as federal highway funds or payments in lieu of taxes; • loan or grant funds from a state or federal program (including TSEP loans); • funds expended for engineering studies, reports, and plans, or other reasonable expenses expended for the preparation of the application, directly related to the project during the period 24, Months prior to the TSEP application deadline; • funds expended after the TSEP application deadline, but before being approved by the Legislature, for project management, final engineering design, and other reasonable expenses necessary to prepare the project as in the TSEP application for the construction phase; • the value of land or materials provided by the applicant, if appraised within a two-year period preceding the application deadline. The appraisal must be: • an impartially written statement that adequately describes the land or materials, and states an opinion of defined value as of a specific date; • supported by an analysis of relevant market information; and • prepared by a qualified appraiser independent from the applicant. • the value of labor performed by the applicant’s employees on the project, after the TSEP project has been approved for funding and a TSEP contract has been signed, as long as the employee is paid at his or her standard hourly rate of pay and the time worked is adequately documented; and • the value of machinery used in the process of constructing the project that is owned (or leased) and operated by the applicant. The value of the use of the machinery will be determined using the Federal Emergency Management Agency (FEMA) equipment rate schedules. B. The Montana Intercap Program ~ Montana Board of Investments The INTERCAP Program is a low cost, variable-rate program that lends money to Montana local governments, state agencies and the university system for financing or refinancing the acquisition and installation of equipment or personal and real property and infrastructure improvements. The Board of Investments issues tax-exempt bonds and loans the proceeds to eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim financing. Funding is always available with no specific cycle. Allocations of $200,000 and under are considered and approved by the Board of Investments staff. Allocations in excess of $200,000 are considered and approved by the Board. Funds are released on an on-going basis as the project 366 Pole Yard Urban Renewal District Plan – 2020 Page 55 is completed. The program provides loans at a variable rate plus a one percent loan origination fee on loans over one year and for a term of 5 or 10 years depending on the borrower's legal authority. Short-term loans of less than a year are also available. Interest and principal payments are due bi-annually (February 15 and August 15 of each year). Loans may be pre-paid without penalty with 30 days’ notice. Types of financing include installment purchase loans, general fund loans, general obligation bonds, revenue bonds and special improvement district and rural improvement district bonds. Gas tax revenues may not be used to service debt. Projects that will use rural improvement district payments to cover the annual debt are limited to a total loan of $300,000. Intercap funds may be used in association with other grant and loan programs as well as local sources. C. Community Development Block Grant (CDBG) The Community Development Block Grant (CDBG) Program is a federally funded grant program that assists communities with development needs such as housing, public facilities, economic development and planning grants. All projects must be designed to principally benefit low and moderate-income families. The program was established by the Federal Housing and Community Development Act of 1974 (42 USC 5301) and is administered nationally by the U.S. Department of Housing and Urban Development (HUD). The Legislature authorized the Montana Department of Commerce (MDOC) to administer the program beginning in 1982. Eligible activities include planning, public facilities construction, housing and neighborhood renewal and economic development. D. Public Works Program ~ Economic Development Administration The Economic Development Administration (EDA) is an agency within the U.S. Department of Commerce. The purpose of the Public Works Program is to assist communities with the funding of public works and development facilities that contribute to the creation or retention of private sector jobs and to the alleviation of unemployment and underemployment. Such assistance is designed to help communities achieve lasting improvement by stabilizing and diversifying local economies and improving local living conditions and the economic environment of the area. Grants are awarded up to a participation level of 80 percent but the average EDA grant covers approximately 50 percent of project costs. Acceptable sources of match include cash, local general obligation or revenue bonds; Community Development Block Grants, TSEP grants and loans, entitlement funds, Rural Development loans; and other public and private financing, including donations. Projects must result in private sector job and business development to be considered for funding. Eligible applicants under this program include any state, or political subdivision thereof, Indian tribe (and other U.S. political entities), private or public nonprofit organization or association representing any redevelopment area if the project is within an EDA-designated redevelopment area. Redevelopment areas, other than those designated under the Public Works Impact Program must have a current EDA-approved Overall Economic Development Program (OEDP) in place. 367 Pole Yard Urban Renewal District Plan – 2020 Page 56 E. Water, Wastewater and Solid Waste Action Coordinating Team In 1982, a group of professionals from state, federal, and non-profit organizations that finance, regulate, or provide technical assistance for community water and wastewater systems, decided to start meeting in order to coordinate and enhance their efforts. This group calls itself the "Water, Wastewater and Solid Waste Action Coordinating Team" or W2ASACT for short. W2ASACT meets several times a year to find ways to improve our state's environmental infrastructure. All of the programs represented in W2ASACT have different missions and meet unique needs. However, it has been the common elements shared by the funding programs that have been the driving force of W2ASACT. These programs provide money (grants or loans), take applications from communities to fund their projects, and administer those monies once the project is funded. While W2ASACT cannot change all of the state or federal requirements, it can identify unnecessary duplication of requirements that make compliance difficult for communities. Voluntary Programs In some cases, homeowner associations, business groups or other property owners may finance urban renewal projects voluntary basis. 368 Pole Yard Urban Renewal District Plan – 2020 Page 57 Chapter 8. Urban Renewal Program Evaluation and Plan Amendments The Pole Yard Urban Renewal District Plan will be evaluated on a yearly basis in conjunction with the preparation of the annual report. Measures that may be used in evaluating program success include: ➢ Increases in the property tax base; ➢ Value of private investment; ➢ Creation of jobs within the URD; and ➢ Elimination of blighted conditions. The Plan provides flexibility to accommodate a variety of approaches that are reflected in annual work plans and budgets. The Plan is in accordance with §7-15-4217 as adopted by Ordinance No. 2055 in that it: 1. conforms to and will implement the goals and objectives of the Bozeman Community; 2. is more than large enough to afford maximum opportunity, consistent with the sound needs of the City as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; 3. does not displace any persons from adequate housing; however, if necessary, in the future, a workable and feasible plan for the relocation of families displaced from the District and to coordinate public and private agencies in such relocation will be prepared; and 4. includes a sound and adequate financial program to use the tax increment financing provision as a tool to foster rehabilitation and redevelopment; allows for, as revenues permit, the issuance of tax increment financed bonds; and promotes the use of tax increment financing to leverage private and public funding sources. However, changes over time may necessitate more formal amendments to the Urban Renewal District Plan. The Urban Renewal District Plan may be modified by ordinance under §7-15-4221 MCA. 369 Pole Yard Urban Renewal District Plan – 2020 Page 58 References Bureau of Business and Economic Research University of Montana. (2020, May). The Economic Impacts of Covid-19 in Montana Revised Analysis. Retrieved July 2020, from Bureau of Business and Economic Resarch: http://www.bber.umt.edu/pubs/econ/CovidStudy.pdf Census, U. (2019, July). Retrieved July 2019, from https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml City of Bozeman. (2016, November). Retrieved from City of Bozeman Economic Development Strategy Update: http://weblink.bozeman.net/WebLink8/0/doc/113116/Electronic.aspx City of Bozeman. (2018, April 16). Innovative Economy. Retrieved August 2020, from Bozeman Strategic Plan: https://strategic-plan-bozeman.opendata.arcgis.com/pages/innovative- economy City of Bozeman. (2020, March 17). Bozeman Montana 2019 Community Plan. Retrieved from City of Bozeman: https://www.bozeman.net/city-projects/bozeman-community-plan- update U.S. Census. (2017). SELECTED ECONOMIC CHARACTERISTICS more information 2013-2017 American Community Survey 5-Year Estimates. Retrieved July 2019, from United States Census - American Fact Finder: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF United States Census. (2019, July 1). Census QuickFacts. Retrieved June 2020, from https://www.census.gov/quickfacts/fact/table/US/PST045219 United States Environmental Protection Agency. (2020, February 3). EPA deletes portion of Idaho Pole Company site in Gallatin County, Montana from Superfund list. Retrieved June 2020, from United States Environmental Protection Agency: https://www.epa.gov/newsreleases/epa-deletes-portion-idaho-pole-company-site- gallatin-county-montana-superfund-list United States Environmental Protection Agency. (n.d.). IDAHO POLE CO. BOZEMAN, MT Cleanup Activities. Retrieved June 2020, from Cleanup Activities: https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup &id=0800379#bkground US Census. (2011, May 4). US Census. (2018). American Community Survey Demographic and Housing Estimates. Retrieved May 2020, from https://data.census.gov US Census. (2020, May 19). US Census Bureau News. Retrieved June 2020, from https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf 370 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-1 Appendix A. Community Engagement Pole Yard Urban Renewal District – Public Informational Meeting Via Webex September 9th, 2020 Meeting Summary Panelists: Brit Fontenot, Director, Bozeman Economic Development David Fine, Bozeman Economic Development Mike Veselik, Bozeman Economic Development Dani Hess, Bozeman Community Engagement Coordinator Janet Cornish, CDS of Montana, project consultant Lanette Windemaker, AICP, project consultant 15 Participants joined the meeting via Webex The meeting began with a slide show that included information on the Montana Urban Renewal Law and how it can provide the City with a useful “tool” to address conditions that contribute to blight within an area in the northeast quadrant of the City of Bozeman (the Pole Yard). The ability to use Tax Increment Financing (TIF) to help fund urban renewal projects was also addressed. The slide show presented information contained in the “Statement of Blight”, which is the basis for the Resolution of Necessity, which will be considered by the Bozeman City Commission on September 15th, 2020. The Resolution establishes the eligibility of the Pole Yard for Urban Renewal District (URD) designation. The presentation also demonstrated how the creation of a URD would be in keeping with existing City plans related to the economy and public infrastructure. Finally, goals for the urban renewal district were listed. Following the presentation about the proposed Pole Yard URD, members of the public were invited to submit questions orally and in writing to the panelists. Participants asked questions and expressed concern about the following: • How development can occur in light of the Superfund designation on the Idaho Pole site/what restrictions would be in place. Answer: The URD has no control over development; development must follow applicable City, State and/or Federal requirements. • Whether “de-listing” of the site (reference to the National Priorities List established by the US Environmental Protection Agency) will create a health and safety issue. Answer: This is a legal question. The URD has no impact on the legal issues having to do with the Superfund site. • Why certain sites adjacent to the study area were not included, particularly wetlands. Answer: Urban renewal is an economic development tool to help grow the tax base; parcels not intended for economic development are generally not included. 371 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-2 • Why graffiti is considered “blight”, when it can be described as public art. Answer: Graffiti applied without the property owner’s consent can be considered blight. • Liability issues associated with making the Idaho Pole site part of a URD. Answer: This is a legal question. The URD has no impact on the legal issues having to do with the Superfund site. • Whether this is this a new tax or just a redistribution of tax dollars. Answer: Urban renewal does not add any new taxes; TIF affects the way that the incremental increases in property taxes are distributed once collected. • Types of projects proposed for the URD. Answer: Priority may be given to public infrastructure that promotes public health and safety; such as sewer, water and street improvements. The City Commission will determine what has priority. • How TIF would affect individual property owners. Answer: Urban renewal does not add any new taxes; however, if an individual property owners improve their properties, the State of Montana will adjust their property taxes appropriately. • Funding trail connections from the wetlands to the depot. Answer: Trail connections, parks and public open space are eligible for funding; however, all funding is evaluated based on criteria such as - priority, nexus, proportionality and connectivity. • The urgent need to understand the consequences of development now, rather than at the time a specific development is proposed. Answer: The City can only respond to specific requests, not hypothetical development ideas. • Understanding why anyone would oppose the creation of a URD. Answer: Opposition comes from a lack of understanding about urban renewal and TIF, the stigma of a blight designation, and a philosophical disagreement with the “but for” need for urban renewal, believing that development will occur anyway. • Who makes the decision on creation of a URD and what projects are funded? Answer: The City Commission is the final authority; it approves the budget and all work must be done in accordance with the City procurement requirements. 372 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-3 Pole Yard Urban Renewal District – School District Public Informational Meeting Via Webex September 14th, 2020 Meeting Summary Attendees: Brit Fontenot, Director, Bozeman Economic Development Mike Veselik, Bozeman Economic Development Dani Hess, Bozeman Community Engagement Coordinator Lanette Windemaker, AICP, project consultant Mike Waterman, Bozeman Public Schools - Business Services Steve Johnson, Bozeman Public Schools - Operations Andy Willett, Chair, School Board Trustee Douglas Fischer, School Board Trustee The meeting began with a slide show that included information on the Montana Urban Renewal Law and how it can provide the City with a useful “tool” to address conditions that contribute to blight within an area in the northeast quadrant of the City of Bozeman (the Pole Yard). The ability to use Tax Increment Financing (TIF) to help fund urban renewal projects was also addressed. The slide show presented information contained in the “Statement of Blight”, which is the basis for the Resolution of Necessity, which will be considered by the Bozeman City Commission on September 15th, 2020. The Resolution establishes the eligibility of the Pole Yard for Urban Renewal District (URD) designation. The presentation also demonstrated how the creation of a URD would be in keeping with existing City plans related to the economy and public infrastructure. Finally, goals for the urban renewal district were listed. Following the presentation about the proposed Pole Yard URD, the attendees were invited to ask questions and comment on the proposal. • Steve Johnson commented that the school district does have to levy higher taxes because of URD districts; and objects to the potential 40-year lifespan of URD districts. • Mike Waterman showed graphs that indicated URDs comprised 4.25 percent of the elementary school district; and account for $11.59 per $100,000. • There was discussion about how the area of these districts was selected, and if there were any more on the horizon. • Brit Fontenot concurred that there are no other areas under consideration at this time. • It is unknown at this time if the School Board will have this as an item on a formal agenda; and/or take a position on the item. 373 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-4 Pole Yard Urban Renewal District Plan Meeting with the Gallatin County Commission September 21, 2020 – 8:30 a.m. Attendees: Commissioners Joe Skinner, Scott MacFarlane and Don Seifert City of Bozeman Representatives Brit Fontenot, Dani Hess and Mike Veselik Urban Renewal Consultants Janet Cornish, CDS of Montana and Lanette Windemaker, AICP County Staff Summary: Brit presented slides summarizing the purpose of and the process associated with the creation of an urban renewal district as well as the timeline for the creation of the Pole Yard Urban Renewal District. Information included a map of the study area examined for conditions that contribute to blight and an explanation of tax increment financing (TIF), a tool that is authorized for use in urban renewal districts in state statute. Following the presentation, there was a discussion of those present and the following questions were addressed: Question: Is there any county land within the study area? Answer: There is a tiny piece within the study area that will be removed. Lands north and east of the study area are within the county. Question: Can the county property within the study area be annexed and then included in the new urban renewal district (URD)? Answer: There is not enough time to complete an annexation within the time frame for the creation of this URD. Question: Why is the City of Bozeman choosing to complete the process of creating a URD with a TIF provision by the end of 2020? Answer: The City wants a base year of 2020 and in accordance with the current state statutes. The 2021 Legislature could make changes to the law and the City prefers to operate under existing conditions. Question: Where are we on the life of the Downtown URD (the oldest one in the City of Bozeman)? Answer: The district’s life has been extended until 2032 in order to pay debt service on a TIF bond. The City of Bozeman has a remittance agreement for this district with the County and the School District. Question: Does the Commission have any decision-making authority with respect to the creation of a URD? 374 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-5 Answer: The Commission can offer input but does not have decision-making authority. Question: What is the actual life of a URD tax increment provision? Answer: A district is authorized for 15 years but bonds can be issued for a period not to exceed 25 years. Bonds extending the life of a district cannot be issued after the 15th year. Question: Has the City given any consideration to adjusting the base value of the district at some point in the future? Answer: The Urban Renewal Plan does not specifically mention whether the City has any interest in adjusting the base; however, state statute does allow for that to occur. Question: Is any action required of the Commission? Answer: No, this was just an informational meeting. The Commission will receive a notice of the public hearing on the ordinance creating the URD and adopting the plan, where there will be an opportunity to offer input. Following the discussion, members of the Commission indicated an interest in learning of the final boundary, once determined. 375 Pole Yard Urban Renewal District Plan – Appendix A – 2020 Page A-6 Pole Yard Urban Renewal District Public Informational Meeting with Gallatin Local Water Quality Board September 3rd, 2020 Summary Attendees: Brit Fontenot, Director, Bozeman Economic Development City staff updated the Board on the City of Bozeman’s consideration of creation of an Urban Renewal District (URD) on the Idaho Pole site. A URD is a tool available to local governments to help develop blighted areas and move toward use of Tax Increment Financing (TIF) funds to use public funds to pay for public infrastructure and incentivize private development. The City of Bozeman staff described this process and expressed their interest in ongoing dialogue. The Board was not being asked to make any decisions regarding the Idaho Pole site. Pole Yard Urban Renewal District Public Informational Meeting with Gallatin County Board of Health September 24th, 2020 Summary Attendees: Brit Fontenot, Director, Bozeman Economic Development City staff updated the Board on the City of Bozeman’s consideration of creation of an Urban Renewal District (URD) on the Idaho Pole site. A URD is a tool available to local governments to help develop blighted areas and move toward use of Tax Increment Financing (TIF) funds to use public funds to pay for public infrastructure and incentivize private development. The City of Bozeman staff described this process and expressed their interest in ongoing dialogue. The Board was not being asked to make any decisions regarding the Idaho Pole site. 376 Pole Yard Urban Renewal District Plan – Appendix B – 2020 Page B-1 Appendix B. Property Ownership Missing address: 06079906437260000 (0350-T1, Downtown TIFD) KENYON NOBLE LUMBER CO PO BOX 1109 BOZEMAN, MT 59771-1109 377 Pole Yard Urban Renewal District Plan – Appendix B – 2020 Page B-2 None of the following were identified withing the district boundaries: • Condominiums and identifying information including geocodes and master geocodes. • Personal property within the district and the corresponding assessor codes. • Mobile homes/manufactured homes not attached to real property within the district and their assessor codes. • Businesses that lease property from tax exempt entities and pay a beneficial use tax. This information is intended to help document notice requirements and assist the Montana Department of Revenue with recognition of the District. The veracity of this information, obtained from the Montana Department of Revenue cadastral records, shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. 378 NORTH PARK URBAN RENEWAL DISTRICT PLAN OCTOBER 2017 379 Table of Contents Chapter 1. Introduction and Overview ......................................................... 1 Chapter 2. Description of the North Park Urban Renewal District .......... 6 Chapter 3. Documentation of Blight ........................................................... 14 Chapter 4. Planning Consistency ................................................................ 17 Chapter 5. Goals and Strategies .................................................................. 22 Chapter 6. Project Evaluation Criteria ...................................................... 25 Chapter 7. Implementation .......................................................................... 28 Appendix A. Planning Consistency Review ................................................ 39 Appendix B. Consultation with Affected Taxing Jurisdictions ................ 44 Appendix C. Development Review Engineer Memo ................................. 48 380 North Park Urban Renewal District Plan – 2017 Page 1 Chapter 1. Introduction and Overview In November of 2006, the Bozeman City Commission adopted Ordinance No. 1684, establishing the Mandeville Farm Tax Increment Financing Industrial District (TIFID), to “encourage the attraction and retention of value-adding industries.” The TIFID is in an area generally referred to as the Mandeville Farm site, now known as the North Park area. It was the intent of the Bozeman City Commission, per Ordinance No. 1684, to use tax increment revenues in combination with other sources to finance the development of the necessary public infrastructure to encourage corresponding investments by the private sector in value-adding businesses, which were defined by the 2008 Administrated Rules of the State of Montana as those industries that: “use mechanical or chemical processes to transform materials or substances into new products in the manner defined as manufacturing in the North American Industry Classification System Manual. "Value-added" is more specifically defined as an increase in the worth of the raw or semi-finished product that results from a mechanical or chemical transformation and may not be attributable to a mere increase in existing production.” In 2011, the Montana Legislature expanded the definition of value-adding industries to include those businesses, “that, through the employment of knowledge or labor, add value to a product, process, or export service resulting in the creation of new wealth.” While it remains the intent of the City of Bozeman to focus on value-adding economic development in the area and contribute to the implementation of Bozeman’s economic development strategy, little private investment has occurred in the 10 years following the TIFID’s creation. North Park is within Bozeman’s urban core; however, the Interstate 90 corridor and the Montana Rail Link line, which border the property, serve as physical barriers to the desired development and planned uses. Acknowledging that economic development is a long-term proposition, the City wishes to maintain the opportunity to use tax increment financing to attract and retain value-adding commerce, which includes traded / basic sector businesses. Going forward, therefore, economic success in the area will rely on the ability to implement innovative approaches to value-adding economic development that incorporate efficient transportation systems, urban densities and live-work opportunities. These approaches are better served through the creation of an urban renewal district (URD) in the North Park area. However, under §7-15-4210, MCA, a municipality may not exercise any of the powers authorized under Montana’s Urban Renewal Law until its local governing body has adopted a Resolution of Necessity finding that: (1) one or more blighted areas exist in the municipality by finding that at least three of the factors listed in §7-15-4206(2), MCA apply to the area or a part of the area; and 381 North Park Urban Renewal District Plan – 2017 Page 2 (2) the rehabilitation, redevelopment, or both of an area or areas are necessary in the interest of the public health, safety, morals, or welfare of the residents of the municipality. In December of 2016, the City of Bozeman initiated a review of factors contributing to blight in the North Park area, as a first step in establishing a URD. The documentation of such conditions, within a municipality, in accordance with state law, provides the necessary foundation upon which a local government may establish a URD to engage in urban renewal activities. The review found that conditions in the North Park area can be described as blighted under the Montana Urban Renewal Law, because its geographic isolation “substantially impairs or arrests the sound growth” of the municipality per §7-15-4201, MCA. A Statement of Blight was prepared noting that the following six specific conditions of blight, as set forth in §7-15-4206(2), MCA, are present within the North Park area: ✓ inappropriate or mixed uses of land or building ✓ defective or inadequate street layout ✓ faulty lot layout in relation to size, adequacy, accessibility, or usefulness ✓ unsanitary or unsafe conditions ✓ improper subdivision or obsolete platting ✓ the existence of conditions that endanger life or property by fire or other causes On April 10th, 2017, the Bozeman City Commission adopted Resolution No. 4792, a Resolution of Necessity, finding that conditions of blight exist within the municipality in and near the North Park area and that the rehabilitation, redevelopment, or a combination thereof of such areas is necessary in the interest of the public health safety, or welfare of the residents of the City of Bozeman. This in turn, provided the basis for preparing this urban renewal plan and new URD boundary. The TIFID is set to expire in 2021; instead, the City of Bozeman will “sunset” (terminate) the Mandeville Farm TIFID prior to its expiration date. Simultaneously it will create the North Park Urban Renewal District (URD) in approximately the Mandeville Farm TIFID footprint to prevent and eliminate blighted areas per §7-15-4202, MCA, reduce poverty in the City of Bozeman, and deliver efficient public services. Statement of Purpose and Intent – North Park Urban Renewal District and Plan The purpose for creation of the North Park Urban Renewal District (URD) is to eliminate blighted conditions, reduce poverty, and deliver efficient public services through the following: • The investment in public infrastructure in support of economic development, with a focus on value-adding commerce • The attainment of urban density to achieve greater efficiency in the delivery of public services • The facilitation of live-work opportunities for workforce housing in proximity to places of employment in value-adding commerce • The creation of opportunities for livable wage jobs in value-adding commerce 382 North Park Urban Renewal District Plan – 2017 Page 3 The intent of the North Park Urban Renewal District Plan is to address blighted conditions to facilitate mid- and high wage job growth and economic strength and diversification in Bozeman. The Plan will enable community stakeholders to work together in support of the primary tenets of the City’s economic development strategy: 1. Retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Investment in infrastructure to drive economic development; and 3. Education and workforce development initiatives to provide businesses with qualified workers. (Bozeman Economic Development Strategy Update, 2016) This Plan will be adopted by ordinance, which will create the North Park Urban Renewal District and, as stated above simultaneously terminate or “sunset” the existing Mandeville Farm TIFID. This Plan includes a provision to use tax increment financing, as funds become available, in addition to other resources in implementing its goals and strategies. The Plan provides a context for activities that will be undertaken by a variety of public and private entities. It recommends a series of programs and projects that may be undertaken by the local government to encourage reinvestment in the district, which will in turn address conditions that have diminished the area’s ability to realize its economic potential over time. General Guiding Principles of the Urban Renewal Plan The North Park Urban Renewal District Plan reflects sound public policy and thoughtful planning. To this end the following general principles will guide revitalization and redevelopment efforts in the URD. These guiding principles will be more thoroughly described in Chapter 6. Readiness – The development of the North Park area will occur as resources become available and opportunities present themselves. Leveraging – Projects that make use of a variety of public and private resources including state and federal grants, loans and specialized tax credits, as well as tax increment funds will be encouraged to the extent that resources are available and they support the intent and purpose of this district. Design – The intent of the North Park URD is to emphasize planning that fosters Bozeman’s desired urban density and design. Partnerships – The successful redevelopment of the North Park URD will depend on partnerships among public and private entities, including land owners, business owners, State of Montana, City of Bozeman, Bozeman Midtown Urban Renewal District, and others. 383 North Park Urban Renewal District Plan – 2017 Page 4 Tax Increment Financing The City of Bozeman will utilize Tax Increment Financing (TIF) in conjunction with other funding sources to help foster urban renewal activities within the North Park URD. The base year for the purposes of measuring any incremental value within the district boundaries will be 2017. Tax Increment Financing is a state authorized, locally driven funding mechanism that allows cities and counties to direct property tax dollars that accrue from new development, in a specifically designated urban renewal or targeted economic development district, to community and economic development activities within that district. In Montana, TIF is authorized in parts §7-15-4201 and 4301, et. seq MCA, the State’s Urban Renewal Law. TIF is used in districts that are characterized by conditions defined as blighted (urban renewal districts or URDs) or are infrastructure deficient (targeted economic development districts or TEDDs), limiting or prohibiting new investment. A base year is established from which "incremental" increases in property values are measured. Virtually all the resulting new property tax dollars (except for the six-mill state-wide university levy) can be directed to redevelopment and economic revitalization activities within the area in which they are generated. Taxpayers located within a district where TIF is in effect pay the same amount as they would if the property were located outside the district. TIF only affects the way that taxes, once collected, are distributed. Taxes that are derived from base year taxable values continue to be distributed to the various taxing jurisdictions – local and state government entities and school districts. Taxes derived from the incremental increase in taxable value are placed in a special fund for purposes set forth in an urban renewal plan. (See Figure 1.) A TIF provision is authorized for 15 years, but may be extended for up to an additional 25 years if TIF bonds are sold any time during the first 15 years. Funds may be used for a variety of purposes as provided for in §7-15-4288, MCA and include improvements to vehicular and pedestrian transportation infrastructure, streetscapes, parks and landscaping, water and sewer lines and for connecting to infrastructure outside the district. While funds are typically used for public infrastructure investments, there are instances where local governments have used TIF funds to partner with private property owners to make improvements to historic buildings, to address life- safety issues and to enhance landscaping. The statutes also provide for the establishment of a TIF revolving loan program that can support private investment in the District. Loan funds can continue to “revolve” in perpetuity; however, eligible projects must be undertaken in accordance with and in the area encompassed by an urban renewal or comprehensive development plan for the district. 384 North Park Urban Renewal District Plan – 2017 Page 5 Figure 1. Tax Increment Financing Schematic Consultation with Affected Local Taxing Jurisdictions The 2017, Montana Legislature amended the state’s urban renewal law to specifically require a local governing body that intends to create or amend a URD or a TEDD, which has a TIF provision, or to issue TIF bonds, to consult with the affected taxing jurisdictions. Typically, these include school districts, cities, counties and other entities that levy mills within the jurisdiction that includes the district. The new requirement, which is included in §7-15-4221 and 4282, MCA, calls for the governing body that is establishing the district to consult with these jurisdictions at a publicly noticed meeting. The City of Bozeman informed the Gallatin County Commission of its intent to sunset the current TIFID and created the North Park URD on March 27, 2017. The City of Bozeman informed the Bozeman School District of its intent to create the North Park Urban Renewal District and terminate the existing TIFID at a School Board meeting of May 8, 2017. On September 22, 2017, a notice of the public hearing before the City Commission was sent to the Bozeman School District and Gallatin County. The City of Bozeman provided the Bozeman School District and Gallatin County with the opportunity to consult at the publicly noticed hearing held on October 9, 2017. A copy of the notice is provided in Appendix B. BASE Declining or Stagnating Property Values TIF Start Date Increment for Development TIF End Date Tax Value for Distribution Tax Value for DistributionTaxable ValueTime How a Tax Increment Finance Provision (TIF) Works Base + Increment 385 North Park Urban Renewal District Plan – 2017 Page 6 Chapter 2. Description of the North Park Urban Renewal District The Greater Community The City of Bozeman is the county seat of Gallatin County in southwest Montana. The City is named for John M. Bozeman who established the Bozeman Trail and was a key founder of the town in August 1864. The town became incorporated in April 1883 with a city council form of government and later in January 1922 transitioned to a city manager/city commission form of government. Bozeman was designated an All-America City in 2001 by the National Civic League. Bozeman is home to Montana State University and is served by Bozeman Yellowstone International Airport. (Wikipedia) The North Park area was in agricultural use for most of the 20th Century. The Mandeville family operated a dairy farm on the site, leasing a portion of the area from the State of Montana. The family also raised wheat, oats, barley, hay, corn and grass. The City of Bozeman purchased 85 acres on the north side of the site from the Mandeville family in 2003. The City had intended to use the land for a solid waste transfer station. However, that plan never came to fruition. The City sold the land to a private developer in 2016. Demographic and Economic Information The City of Bozeman is growing. According to 2016 Census estimates, there are 45,250 people living in the City of Bozeman, significantly higher than the 2010 Census figure of 37,280. The county’s population is projected to experience continued growth through 2060, from 97,197 in 2015 to 145,389 in 2060, an increase of nearly 50% (Montana Economic and Information Center). Census information, recorded over a one-hundred-year period, beginning in 1910, indicates that the City’s population has grown rapidly since 1950. Figure 2 presents population data for the City from 1910 to 2010, based on the decennial census. Source: Montana Census and Economic Information Center 0 5000 10000 15000 20000 25000 30000 35000 40000 Figure 2. City of Bozeman Population 1890 to 2010 Population 386 North Park Urban Renewal District Plan – 2017 Page 7 However, despite rapid growth, the City’s poverty rate at 20.1% is significantly higher than the poverty rates for Gallatin County, Montana and the nation, which are 13.2%, 15.2% and 15.5% respectively. (American Community Survey – ACS, 2011-2015). Median Household Income for residents living in Bozeman is $45,729, lower than the County’s, median, which is $55,553, the state’s, at $47,169 and the nation’s, at $53,889 (ACS, 2011-2015). The following table (Figure 3) shows employment in the City of Bozeman by industry. The “Educational services, health care and social assistance” sector employs the most people, followed by “retail trade” and “arts, entertainment, and recreation, and accommodation and food services.” Figure 3. Employment by Industry – City of Bozeman Source: ACS 2011-2015 ESTIMATE MARGIN OF ERROR PERCENT PERCENT MARGIN OF ERROR Civilian employed population 16 years and over 23,659 +/-759 23,659 (X) Agriculture, forestry, fishing and hunting, and mining 573 +/-161 2.4% +/-0.7 Construction 1,635 +/-381 6.9% +/-1.6 Manufacturing 1,490 +/-278 6.3% +/-1.2 Wholesale trade 331 +/-122 1.4% +/-0.5 Retail trade 3,322 +/-415 14.0% +/-1.7 Transportation and warehousing, and utilities 452 +/-160 1.9% +/-0.7 Information 311 +/-98 1.3% +/-0.4 Finance and insurance, and real estate and rental and leasing 1,087 +/-275 4.6% +/-1.2 Professional, scientific, and management, and administrative and waste management services 2,578 +/-557 10.9% +/-2.2 Educational services, and health care and social assistance 6,912 +/-529 29.2% +/-2.2 Arts, entertainment, and recreation, and accommodation and food services 3,225 +/-396 13.6% +/-1.5 Other services, except public administration 729 +/-170 3.1% +/-0.7 Public administration 1,014 +/-273 4.3% +/-1.2 387 North Park Urban Renewal District Plan – 2017 Page 8 North Park Urban Renewal Area Description The North Park urban renewal area is located to the north and west of the Interstate 90 – North 7th Interchange and is generally bound by Interstate 90 to the west, Red Wing Drive to the north and east, Flora Lane and North 7th Avenue to the east, and Mandeville Lane to the south. Much of the property is held by the State of Montana as Trust land. Trust Lands are managed by the Trust Land Management Division (TMLD) of the Montana Department of Natural Resources and Conservation (DNRC). The mission of the TMLD is to manage the State of Montana’s Trust Land resources to produce revenues in support of the Trust beneficiaries, which include public schools and various other state institutions. The remainder of the land is owned privately. Boundary and Legal Description of the North Park Urban Renewal District The boundary and legal description of the North Park URD are as follows: Boundary: Beginning on the southern boundary of Section 36, T1S, R5E, PMM, City of Bozeman, Gallatin County, thence due west to the center of the I-90 right-of-way (halfway between the east bound lane and the west bound lane), thence northwesterly between the east bound lane and the west bound lane to the western boundary of the North 19th Avenue right-of-way, thence northerly to the northern boundary of the I-90 Frontage Road / North 7th Avenue right-of-way, thence east- southeasterly to the southern edge of the unnamed public right-of-way at the intersection of Red Wing Drive and North 7th Avenue, thence westerly to the eastern edge of the Flora Lane right-of-way, thence southerly to the southern edge of the Mandeville Lane right-of-way, thence westerly to the western edge of the Mandeville Lane right-of-way, thence northerly to the southern boundary of Section 36, T1S, R5E, PMM and the point of beginning, less Minor Subdivision 320, Lot 1. Legal Description: A tract of land being the SW 1/4 of Section 36, less the Lewis & Clark Commercial Subdivision, Plat J- 376, less Minor subdivision 320, Lot 1 and including Tract 2, COS 1723 and the W1/ 2, SE 1/4 of Section 36, less the Gordon Mandeville State School Section Subdivision, TIS, R5E, PMM, Gallatin County along with adjacent public rights-of-way and approximately 1.1 linear miles of Burlington Northern / Montana Rail Link right-of-way. And COS 2153. Along with and subject to all easements of record or apparent on the ground. Montana Department of Revenue Assessment Codes: A list of parcels and properties within the district was obtained from the Montana Department of Revenue (DOR) cadastral records to help meet the requirements for certified mail notice and DOR recognition of the district. The compilation of the list of parcels and properties below included identifying geocodes and the following information. 388 North Park Urban Renewal District Plan – 2017 Page 9 • Owners’ names and mailing addresses of all properties with geocodes in the district. • All centrally assessed properties and identifying information within the district including an estimate of the number of miles of railroad tracks. • Personal property within the district and the corresponding assessor codes • Mobile homes/manufactured homes not attached to real property within the district and their assessor codes • Businesses that lease property from tax exempt entities and pay a beneficial use tax Properties 06-0904-36-2-01-10-0000 RFG44603 North Park Development Partners LLC 2131 Industrial Dr. Bozeman, MT 59715-2243 Legal Description: S36, T01 S, R05 E, C.O.S. 2153, PARCEL TRACT 1-A, ACRES 22.223 06-0904-36-2-01-20-0000 RFG21678 PropertyAddress:1225 Red Wing Rd North Park Development Partners LLC 2131 Industrial Dr. Bozeman, MT 59715-2243 Legal Description: S36, T01 S, R05 E, C.O.S. 2153, PARCEL TRACT 2-A, ACRES 10.002 06-0904-36-2-01-40-0000 RFG44604 North Park Development Partners LLC 2131 Industrial Dr. Bozeman, MT 59715-2243 Legal Description: S36, T01 S, R05 E, C.O.S. 2153, PARCEL TRACT 3-A, ACRES 24.761 06-0904-36-2-01-70-0000 RFG44605 North Park Development Partners LLC 2131 Industrial Dr. Bozeman, MT 59715-2243 Legal Description: S36, T01 S, R05 E, C.O.S. 2153, PARCEL TRACT 4-A, ACRES 28.36 389 North Park Urban Renewal District Plan – 2017 Page 10 06-0904-36-2-01-55-0000 RFG44606 State of Montana Po Box 201601 Helena, MT 59620-1601 Legal Description: S36, T01 S, R05 E, C.O.S. 1723, PARCEL 2, ACRES 21.492 06-0904-36-3-02-01-0000 RFG48200 State of Montana Po Box 201601 Helena, MT 59620-1601 Legal Description: S36, T01 S, R05 E, ACRES 167.26, SW4 N OF I-90 LESS TRACTS 06-0904-36-3-02-01-4001 RFG65192 Spacebank LTD 811 Mandeville LN Bozeman, MT 59715-2535 Legal Description: Located on state land: 06-0904-36-3-02-01-0000 / RFG48200 Type:RE - mini warehouses 06-0904-36-3-02-01-4000 RFG57054 Insite Towers LLC c/o Ryan LLC PTS PO Box 460389 Houston, TX 77056 Legal Description: Located on state land: 06-0904-36-3-02-01-0000 Improvements only Cell Tower Centrally Assessed 1.1 linear miles of Burlington Northern / Montana Rail Link right-of-way running through S36, T01 S, R05 E Montana Rail Link Mail to Real Estate Dept. PO BOX 16624 Missoula, MT 59808-6624 390 North Park Urban Renewal District Plan – 2017 Page 11 Montana Rail Link Inc PO Box 16390 Missoula, MT 59808-6390 Burlington Northern Railroad Co Property Tax Dept. PO Box 961089 Fort Worth, TX 76161-0089 1.1 linear miles of Northwestern Energy Transmission Pipeline with regulator/value station and appurtenances Northwestern Energy 40 E Broadway St Butte, MT 59701-9350 1.1 linear miles of Yellowstone Pipeline Yellowstone Pipeline Co General Delivery Bozeman, MT 59715 RSB62242 –Cell Tower (located on Geocode:06-0904-36-2-01-70-0000) Verizon Wireless c/o Christopher Zorzi Gold Creek Cellular of Montana PO Box 635 Basking Ridge, NJ 07920-0635 This information is intended to help document notice requirements and assist the Montana Department of Revenue with recognition. The veracity of this information, obtained from the Montana Department of Revenue cadastral records, shall not affect, impair or nullify this plan or the adoption process for this Urban Renewal District. Approximate Boundary Map of Area North Park is generally located to the north and west of the Interstate 90 – North 7th Interchange and is bound by Interstate 90 to the west, Red Wing Drive to the north and east, Flora Lane and N 7th Avenue to the east, and Mandeville Lane to the south. The North Park URD is adjacent to Bozeman’s Midtown URD, but does not include any properties that are already in the Midtown URD. In order to facilitate the leveraging of public investment the districts overlap on street rights- of-way. Furthermore, there are two properties, neither of which are within the Bozeman municipal limits wholly surrounded by these districts. The North Park area is shown below in Figures 4 and 5. Figure 4 depicts the area of the TIFID, and demonstrates the expansion of the North Park urban renewal area to include adjacent rights- of-way. The final boundary of the North Park URD is shown in Figure 5. 391 North Park Urban Renewal District Plan – 2017 Page 12 Figure 4. Approximate Boundary of the North Park Urban Renewal Area 392 North Park Urban Renewal District Plan – 2017 Page 13 Figure 5. Boundary of the North Park Urban Renewal District Land Use in the Urban Renewal Area The North Park area, which includes more than 275 acres, is mostly in agricultural use, but does include mini-warehouses, two communication towers and a portion of the railroad line. Mandeville Creek bisects the property from south to north and has associated floodplain and wetlands. It is directly to the north and west of the Midtown Urban Renewal District area, which is characterized by a mixture of strip commercial (including big box stores, fast food restaurants, and motels), adjacent residential and some light industrial uses. 393 North Park Urban Renewal District Plan – 2017 Page 14 Chapter 3. Documentation of Blight Montana law sets forth the specific factors that characterize blight. State statute defines a blighted area as one that substantially impairs or arrests the sound development of communities, or constitutes an economic or social liability. Per §7-15-4206, MCA, a “blighted area” may be identified as such due to: (a) the substantial physical dilapidation; deterioration; defective construction, material, and arrangement; or age obsolescence of buildings or improvements, whether residential or nonresidential; (b) inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as determined by competent appraisers based on an examination of the building standards of the municipality; (c) inappropriate or mixed uses of land or buildings; (d) high density of population and overcrowding; (e) defective or inadequate street layout; (f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (g) excessive land coverage; (h) unsanitary or unsafe conditions; (i) deterioration of site; (j) diversity of ownership; (k) tax or special assessment delinquency exceeding the fair value of the land; (l) defective or unusual conditions of title; (m) improper subdivision or obsolete platting; (n) the existence of conditions that endanger life or property by fire or other causes; or (o) any combination of the factors listed in this subsection (2).” (Montana Laws) This review identified that the following factors that contribute to blight, as set forth in §7-15- 4206, MCA, are present within the North Park area: ✓ inappropriate or mixed uses of land or building ✓ defective or inadequate street layout ✓ faulty lot layout in relation to size, adequacy, accessibility, or usefulness ✓ unsanitary or unsafe conditions ✓ improper subdivision or obsolete platting ✓ the existence of conditions that endanger life or property by fire or other causes Inappropriate Uses of Land While the North Park area is a keystone of land surrounded by numerous urban commercial districts (North 7th Avenue/Midtown area, I-90 interchanges at N. 7th and N. 19th, and Baxter Lane/North 19th), the area is largely vacant and underutilized. Vacant land in the urban core results in lower land values and less efficient use of public infrastructure and services. Its value is further diminished by lack of or poor access. 394 North Park Urban Renewal District Plan – 2017 Page 15 Defective or Inadequate Street Layout The North Park area has no transportation infrastructure. It lacks paved streets, sidewalks, curb/gutters and storm drainage facilities. The Bozeman Municipal Code requires that streets shall be provided in accordance with the adopted growth policy and/or transportation plan. The future arrangement, type, extent, width, grade and location of all streets shall be considered in relation to existing and planned streets topographical conditions, public convenience and safety, and the planned uses to be served by such streets. A memo from the city’s Development Review Engineer addressing infrastructure deficiencies is found in Appendix C. Faulty Lot Layout in Relation to Size, Adequacy, Or Usefulness The land in the North Park area includes the remainder of an aliquot part of greater than 167 acres, and large lots of 10 to 30 acres in size that are too big to be useful for development at urban core standards. The existing lot layout was incompletely created by remainder and partially designed for a specific purpose which did not come to fruition. When these issues and the lack of adequate access are combined, the lot layout can be described as faulty. Faulty Lot Layout in Relation to Accessibility The North Park area is characterized by poor access. The only developed access point is located at the intersection of Mandeville Lane/West Griffin Drive and North 7th Avenue. Interstate-90 borders the west side, the Burlington Northern / Montana Rail Link right-of-way runs along the northern perimeter and the highway overpass is located to the northeast. As a result, there is no access along more than fifty percent of the perimeter of the North Park area. This geographic isolation substantially impairs or arrests the sound growth of the area. The intersection of Mandeville Lane/West Griffin Drive and N. 7th Avenue is within one half- mile of the North Park area and has been identified as operating at a level-of-service (LOS) less than “C” by Montana Department of Transportation (MDT). The intersection must be upgraded to meet the minimum LOS requirements prior to development within the URD boundary. Following are potential future access points to the North Park area. • A redesign of the I-90 / North 19th Avenue off-ramp and interchange. • An I-90 Overpass from Mandeville Lane to Baxter Lane at the southwest corner of the North Park area. • An I-90 Overpass from Catron Lane / Deadman’s Gulch Court to the Red Wing Drive / Flora Lane intersection at North 7th Avenue. • A signalized intersection at the North 7th Avenue intersection with Red Wing Drive / Flora Lane. Might include widening of the overpass and traffic controls. • A signalized railroad crossing at the northwest corner of the North Park area. The existing crossing is an agricultural-use type, which is unimproved, uncontrolled and at-grade. The 2012 estimate for a Railroad Crossing Signal was $100,000. However, any improvements to the railroad crossing would probably have to include improvements to the intersection on the Frontage Road such as a traffic signal, medians, and lanes for stacking and/or turning. 395 North Park Urban Renewal District Plan – 2017 Page 16 Unsanitary or Unsafe Conditions Due to Lack of Municipal Infrastructure The North Park area has no municipal infrastructure. Future development will require the installation of complete municipal water and sanitary sewer system facilities to serve the planned development. Municipal storm sewer system facilities may also be required by the city. In addition, there are other municipal infrastructure improvements required to eliminate unsanitary or unsafe conditions, including: the offsite upgrade of the downstream sanitary sewer interceptor known as the North Frontage Road Interceptor and the completion of two on-site water mains. A memo from the city’s Development Review Engineer addressing infrastructure deficiencies is found in Appendix C. Unsanitary or Unsafe Conditions Due to the Presence of the Bozeman Solvent Site State Superfund Facility The Bozeman Solvent Site (BSS) has been designated as a Controlled Groundwater Area (CGWA) due to presence of dissolved perchloroethylene (PCE) in the groundwater at concentrations greater than Montana groundwater standards. The BSS is also a State Superfund site, under the Comprehensive Environmental Cleanup and Responsibility Act (CECRA). Due to the extent of the BSS, the North Park Area has groundwater and land use restrictions. In addition to the groundwater and land use restrictions, the North Park area is within the boundaries of the Solvent Site Water Main Payback District. That payback district was created when the existing 12-inch water main was constructed through the site. The water main was constructed to eliminate use of groundwater under the site that has been contaminated with PCE. The cost of construction of the existing 12-inch water main must be reimbursed by developers at the following rate: $0.082/square foot + Consumer Price Index Adjustment (CPIA). Improper Subdivision or Obsolete Platting The land in the North Park area includes the remainder of aliquot parts left over from the construction of I-90, and large lots of 10 to 30 acres in size that are not in conformance, accordance or compliance with current plans, standards or codes. The Existence of Conditions that Endanger Life or Property by Fire or Other Causes In addition to the lack of access, a transportation network and municipal services, other conditions that endanger life or property include the uncontrolled railroad crossing and use of barbed wire to fence portions of the property. Conclusion In §7-15-4210, MCA, a municipality must find that at least three factors contributing to blight be identified to establish an urban renewal district. Based on the information presented in this Statement of Blight, a finding can be made that the North Park area exhibits at least three attributes, which can be described as blighted per Montana Statute, and therefore the area is eligible for inclusion in an urban renewal district. 396 North Park Urban Renewal District Plan – 2017 Page 17 Chapter 4. Planning Consistency Per Section §7-15-4213, MCA, prior to its approval of an urban renewal project, the local governing body shall submit the urban renewal project plan to the planning commission of the municipality for review and recommendations as to its conformity with the growth policy and the planning commission shall submit its written recommendations to the local governing body. To comply with state statute, this North Park Urban Renewal District Plan must be reviewed by the Bozeman City Planning Board and found to be in conformance with the Bozeman Community Plan. The staff review presented to Planning Board is found in Appendix A. The efforts of local Planning Boards to prepare land use recommendations for the Bozeman area began in 1955, when the first municipal Planning Board was formed. In April of 1958, S.R. DeBoer & Company (planning consultants from Denver, CO) prepared Bozeman’s first Master Plan. It included studies on transportation, street planning, zoning districts, parks and recreation, schools, park roads, and sanitation and health. The City made noteworthy progress in comprehensive planning with the October 2001 adoption of the Bozeman 2020 Community Plan (2020 Plan). The 2020 Plan wholly replaced all previous comprehensive plans and complied with new state planning statutes. The 2020 Plan recognized the changing nature of the economy and expanding knowledge of community development standards and consequences of land use decisions. The 2020 Plan also placed a higher emphasis on coordinated land use and physical infrastructure planning. The Bozeman Community Plan was duly adopted as the current growth policy by the Bozeman City Commission by City of Bozeman Resolution No. 4163, dated June 1, 2009. In addition, Bozeman has completed many infrastructure and topic plans that have some influence on the area included under the North Park Urban Renewal District Plan. An applicable plan is the Design Objectives Plan for Entryway Corridors. On July 18th, 2017, the City Planning Board reviewed the North Park Urban Renewal District Plan as outlined in this chapter and found it to be in conformance with the growth policy as required by §7-15-4213, MCA. Growth Policy Review The Bozeman Community Plan was reviewed to determine whether the growth policy adequately supports North Park as an urban renewal project (per §7-15-4213, MCA). The Bozeman Community Plan has been found to include: • Goals and objectives that support urban renewal, economic development, and development of infrastructure that encourages urban renewal and economic development in the community. • Strategies, including tax increment financing, that can be implemented to achieve the goals and objectives stated in the Bozeman Community Plan. • Future land uses, identified through maps and/or described in the text, that will execute the growth policy. 397 North Park Urban Renewal District Plan – 2017 Page 18 Goals and Objectives A review of the overall goals and objectives of the growth policy (as compiled in Appendix A.) finds no conflicts with an urban renewal project in the North Park area. The specific goals and objectives found in the Bozeman Community Plan, selected from the compilation of general goals and objectives, that further urban renewal and promote economic development for the elimination of conditions that contribute to blight, reduce poverty in the City of Bozeman, and deliver efficient public services and facilitate mid- and high wage job growth and economic strength and diversification in Bozeman as described in purpose and intent of the North Park Urban Renewal District Plan are as follows: ➢ Land Use Objective LU-4.4: Review and revise the City’s regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. ➢ Land Use Objective LU-4.8: Promote the efficient use of water, energy, land, human resources, and natural resources and protect water supply quantity and quality. ➢ Community Objective C-1.3: Support compatible infill within the existing area of the City rather than developing land requiring expansion of the City’s area. ➢ Community Objective C-2.1.: Require adequate and efficient circulation in all subdivisions and site plans and provide connectivity between developments and major destinations for both the pedestrians and vehicles, including human powered vehicles. ➢ Community Objective C-6.3: Encourage and support energy conservation and efficiency in all aspects of development. ➢ Economic Development Objective ED-1.1: Support business creation, retention, and expansion. Emphasize small businesses, ‘green’ businesses, and e- businesses. ➢ Economic Development Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. ➢ Economic Development Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. ➢ Economic Development Objective ED-1.5: Encourage, through the use of incentives, the development of business and industry that provides wages that are proportionate to, or are higher than, the cost of living and provide options to expand skills and opportunities for Bozeman’s workforce. ➢ Economic Development Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. ➢ Economic Development Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. ➢ Economic Development Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. ➢ Economic Development Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of 398 North Park Urban Renewal District Plan – 2017 Page 19 Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. ➢ Recreation Goal R-3: Promote business growth and economic development. ➢ Transportation Objective T-1.4: Ensure that adequate interconnections are made throughout the transportation system to ensure a variety of alternatives for trip routing and reduce total travel distance. ➢ Transportation Objective T-2.4: Seek and provide adequate funding to improve and maintain the functionality of all elements of the transportation system. ➢ Public Services Goal PS-3: Establish regular and sufficient funding sources to acquire, develop, and maintain public services, and meet the community’s needs. ➢ Regional Coordination and Cooperation Objective RCC-1.4: Encourage development within Bozeman so that services can efficiently be provided. The North Park Urban Renewal District Plan, has, as its mission, to provide long term economic stability and to use planning and development of public infrastructure as tools for well managed growth. This mission is in conformance with the goals and objectives of the Bozeman Community Plan. In keeping with this mission, the goals of the North Park Urban Renewal District as stated in the Urban Renewal District Plan are: GOAL #1 Promote Economic Development, with a Focus on Value-Adding Commerce Rationale: Value-adding commerce strengthens the community, opens reinvestment opportunities, supports livable wage jobs, and provides for economic needs of the citizens, helping to eliminate conditions that contribute to blight. GOAL #2 Invest in Efficient Delivery of Public Infrastructure Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight. GOAL #3 Support Planned Urban Density and Design Rationale: Higher density achieves greater efficiency in the delivery of public services. Live-work opportunities can reduce or eliminate commute times, lower transportation costs and create vitality and a sense of community. Design elements such as open space and pedestrian facilities promote recruitment of value-adding businesses interested in quality of life for their employees. Implementation Strategies and Tools Implementation strategies and tools found in the Bozeman Community Plan that are applicable to the North Park Urban Renewal District Plan and demonstrate conformance of the plan to the growth policy are as follows: 399 North Park Urban Renewal District Plan – 2017 Page 20 ➢ Provides a foundation for programs as well as more detailed plans, such as urban renewal district plans with tax increment financing programs. ➢ Describes the use of alternative funding mechanisms when distinct beneficiary populations or interest groups can be identified and more equitably served (such as tax increment financing). ➢ Encourages development within the City of Bozeman. ➢ Encourages infill and redevelopment. ➢ Continues programs which support adaptive reuse and reinvestment. ➢ Encourages commercial and residential development or redevelopment of identified infill areas through the use of and publicizing of incentives, such as, but not limited to, public infrastructure funding support ➢ Supports standards for infill development and redevelopment. ➢ Supports the creation and expansion of local businesses. ➢ Maintains and seeks to expand resources available through urban renewal districts. ➢ Increases awareness of existing economic and other benefits of and further develop incentives for locating and operating within City limits. ➢ Recognizes sustainability as a component of economic development. The adoption of the North Park Urban Renewal District Plan would enable the City of Bozeman to implement the strategies and associated tools in the Bozeman Community Plan, as intended by the Montana Urban Renewal statutes. The North Park Urban Renewal District Plan provides for the opportunity to use tax increment financing to assist with redevelopment and revitalization activities, and encourage business retention and growth. The North Park Urban Renewal District Plan supports the development of infrastructure that encourages urban renewal and economic development in the community. Future Land Use The Bozeman Community Plan provides a visual policy statement by identifying the future land use patterns through maps and/or text to help achieve the goals and objectives of the growth policy. The Bozeman Community Plan designates the future land use for the area included in the North Park Urban Renewal District as “Industrial”. The Bozeman Community Plan’s Table C-16 Zoning Correlation with Land Use Categories indicates that “Industrial” land uses can be implemented through one of the five industrial type zoning districts, including M-1 and M-2. The evaluation of the North Park Urban Renewal District Plan with its respect to conformance with the future land use designation finds that the North Park Urban Renewal District Plan provides for redevelopment of the existing industrially designated area to promote economic development, with a focus on value-adding commerce. Furthermore, the North Park Urban Renewal District Plan does not suggest any revision to the existing future land use designations. Zoning Review Land use within the City of Bozeman is regulated through zoning under the Bozeman Unified Development Code. The zoning of the area included in the North Park Urban Renewal District must be reviewed for accordance with the Bozeman Community Plan. 400 North Park Urban Renewal District Plan – 2017 Page 21 The City adopted its first zoning ordinance in 1941. The current zoning ordinance, the Unified Development Code of the City of Bozeman, Chapter 38 of the Bozeman Municipal Code was originally adopted in 2005, with the most recent extensive amendment by Ordinance No. 1769, effective on December 28, 2009. The zoning of the area included in the North Park Urban Renewal District must be found to be in accordance with the Bozeman Community Plan. On July 18th, 2017, the City Planning Board reviewed the zoning of the area included in the North Park Urban Renewal District as follows in this section and found the zoning to be in accordance with the growth policy. In summary, a purpose of the Bozeman Unified Development Code is to implement the goals and objectives of the Bozeman Community Plan; the city’s adopted growth policy. Much of the land within the North Park Urban Renewal District is zoned “M-1 Light Manufacturing, and the northerly portion of the land within the North Park Urban Renewal District is zoned “M-2, Manufacturing and Industrial”. “M-1” and “M-2” zoning allows a variety of industrial uses and related support commerce as described in the Bozeman Unified Development Code. In evaluating the uses supported by the North Park Urban Renewal District Plan for accordance of the area’s zoning with the Bozeman Community Plan, it is found that the zoning of the area in the District supports the purposes of the Bozeman Unified Development Code. The North Park Urban Renewal District Plan is primarily intended to support commerce, which is industrial in character. The North Park Urban Renewal District Plan provides a plan for redevelopment of the existing industrially designated area to eliminate conditions that contribute to blight, and attract new economic development. The North Park Urban Renewal District Plan does not suggest any revision to the existing zoning classifications. Conclusions 1. The North Park Urban Renewal District Plan has been evaluated with respect to the relevant goals and objectives of the Bozeman Community Plan, and the North Park Urban Renewal District Plan is found to be in conformance with the Bozeman Community Plan. 2. The zoning in the North Park Urban Renewal District has been evaluated with respect to the Bozeman Community Plan, and the zoning in the North Park Urban Renewal District is found to be in accordance with the Bozeman Community Plan. 401 North Park Urban Renewal District Plan – 2017 Page 22 Chapter 5. Goals and Strategies Introduction This chapter presents the goals and strategies for addressing conditions of blight and infrastructure deficiencies within the North Park Urban Renewal District. They are drawn from the Bozeman Community Plan and other appropriate planning documents, technical input from the City’s staff, and the Statement of Blight prepared and adopted by the Resolution of Necessity (Resolution No. 4792, April 10th, 2017). As stated above, this Urban Renewal District Plan provides a context for activities that will be undertaken by a variety of public and private entities. It suggests a variety of planning and program initiatives and capital projects that may be undertaken by the local government to encourage investment in the district, which will in turn address conditions that have diminished its development potential over time. Following are the goals of this Urban Renewal District Plan and associated strategies. These goals support the overall purpose and intent of the North Park Urban Renewal District as presented in Chapter 1 and restated below: Statement of Purpose and Intent – North Park Urban Renewal District and Plan The purpose for creation of the North Park Urban Renewal District (URD) is to eliminate conditions that contribute to blight, reduce poverty in the City of Bozeman, and deliver efficient public services through the following: • The investment in public infrastructure in support of economic development, with a focus on value-adding commerce • The attainment of urban density to achieve greater efficiency in the delivery of public services • The facilitation of live-work opportunities for workforce housing in proximity to places of employment in value-adding commerce • The creation of opportunities for livable wage jobs in value-adding commerce The intent of the North Park Urban Renewal District Plan is to address conditions that contribute to blight and facilitate mid- and high wage job growth and economic strength and diversification in Bozeman. The Plan will enable community stakeholders to work together in support of the primary tenets of the City’s economic development strategy: 1. Retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Investment in infrastructure to drive economic development; and 3. Education and workforce development initiatives to provide businesses with qualified workers. (Bozeman Economic Development Strategy Update, 2016) 402 North Park Urban Renewal District Plan – 2017 Page 23 Goals of the North Park Urban Renewal District Plan GOAL #1 Promote Economic Development, with a Focus on Value-Adding Commerce Rationale: Value-adding commerce strengthens the community, opens reinvestment opportunities, supports livable wage jobs, and provides for economic needs of the citizens, helping to eliminate conditions that contribute to blight. GOAL #2 Invest in Efficient Delivery of Public Infrastructure Rationale: Infrastructure is the backbone of the community. Private development typically requires a corresponding public investment in infrastructure. Capital improvements in the district will help achieve economic vitality and address conditions that contribute to blight. GOAL #3 Support Planned Urban Density and Design Rationale: Higher density achieves greater efficiency in the delivery of public services. Live-work opportunities can reduce or eliminate commute times, lower transportation costs and create vitality and a sense of community. Design elements such as open space and pedestrian facilities promote recruitment of value-adding businesses interested in quality of life for their employees. Strategies The realization of these goals will depend on a strategic approach that includes planning, program design and implementation, and capital investment. The specific actions outlined below reflect a set of basic tenets, which are key to thoughtful and sustainable economic development and the successful elimination of conditions that contribute to blight. ✓ Investments in public infrastructure in support of value-adding economic development ✓ Key transportation connections that improve district access ✓ Economies of scale and sustainability to enhance efficiency ✓ Accommodations in infrastructure development to enable response to changes in technology ✓ Innovative funding strategies to take advantage of potential opportunities ✓ Mixed use developments, including housing opportunities, to increase vitality ✓ Linkages to other sectors including education, to take advantage of associated job training programs, research and development, and technology transfer Planning Initiatives ✓ Support area and issue specific planning efforts that address such as: o Capital improvements o Key transportation connections o Targeted marketing o Sustainable approaches or technology advances o Complimentary and interdependent activities and commerce ✓ Consider the issuance of tax increment financing bonds, as revenues permit 403 North Park Urban Renewal District Plan – 2017 Page 24 ✓ Engage in the on-going evaluation of land use code requirements to remove obstacles such as: o Building height restrictions o Density constraints o Mixed-use development constraints o Parking requirements o Use or location of technology advances ✓ Encourage public-private partnerships such as: o Land owners and the trust land management division (TMLD) of the Montana Department of Natural Resources and Conservation o Participants in potentially symbiotic commerce and/or activities Program Initiatives ✓ Examine the usefulness of monetary stimulus programs such as: o Revolving loans that reduce the cost of debt service, in order to assist developers in extending public infrastructure o Employing economies of scale to reduce individual costs of installing and extending public infrastructure o Developer financing of public infrastructure in support of value-adding projects ✓ Examine the usefulness of incentive programs such as: o Fast-track development review o Targeted marketing o Work force training o Impact fee mitigation ✓ Establish monetary stimulus program(s) determined to be useful ✓ Establish incentive program(s) determined to be useful Capital Projects ✓ Encourage the preparation of properties for redevelopment through investment in public infrastructure ✓ Leverage public and private funds for public infrastructure o Infrastructure connectivity o Cost sharing with other public projects ✓ Leverage state and federal funds for public infrastructure ✓ Encourage the accommodation of technological advances o Support implementation of the Bozeman Fiber Master Plan and Feasibility Study, the community effort to address the broadband network, the crucial infrastructure necessary for next generation fiber-optic connectivity. 404 North Park Urban Renewal District Plan – 2017 Page 25 Chapter 6. Project Evaluation Criteria Chapter 7 of this Plan provides a list of potential funding sources, including Tax Increment Financing (TIF), that can be used in financing urban renewal projects and programs. However, given the numerous urban renewal activities that could potentially occur within the North Park Renewal District, it will be necessary to review each proposed project or program with respect to the Plan’s guiding principles, initially introduced in Chapter 1, as well as identified goals and strategies found in Chapter 5. Guiding Principles This North Park Urban Renewal District Plan reflects sound public policy and thoughtful planning. To this end the following principles will guide urban renewal projects and programs in the URD, taken from the general principles found in Chapter 1 of this Plan. Readiness – The development of the North Park site will occur as resources become available and opportunities present themselves. In some cases, public projects will occur in support of private investment that would otherwise not occur without that corresponding investment in infrastructure. Developers who have secured public approvals and/or project funding have demonstrated a level of readiness. Program initiatives or funding opportunities may help bring urban renewal projects forward. Leveraging – Projects that make use of a variety of public and private resources including state and federal grants, loans and specialized tax credits, as well as tax increment funds will be encouraged to the extent that resources are available and they support the intent and purpose of this district. Certain public projects will be able to leverage funds from both the North Park and the Bozeman Midtown urban renewal districts. These would include improvements to shared rights-of-way and other connecting infrastructure. Design – The intent of the North Park URD is to emphasize planning that fosters Bozeman’s desired urban density and design. The attainment of urban density helps to achieve greater efficiency in the delivery of public services. Programs will be crafted to eliminate blighted conditions through the attraction of secondary, value-adding industries and other complimentary development. The opportunity for the development of work-force housing is also important. Increasingly, people seek job opportunities that offer housing within walking distance of their places of employment. The North Park URD is located near both the I-90 – North 7th Avenue Interchange and the I-90 – North 19th Avenue Interchange, two of the three interchange entryways into the City of Bozeman. North 7th Avenue, which is the primary thoroughfare adjacent to the district, connects Interstate 90 with Main Street and Downtown Bozeman, and with Montana State University. Therefore, urban renewal projects should be designed to complement this important role. Partnerships – The successful redevelopment of the North Park URD will depend on partnerships among public and private entities, including land owners, business owners, the State of Montana, City of Bozeman, Bozeman Midtown Urban Renewal District, and others. Significant private investment will likely require associated public financing of municipal and quasi-public 405 North Park Urban Renewal District Plan – 2017 Page 26 improvements, such as multi-modal transportation facilities, sewer and water improvements, utilities and communication (including broadband) infrastructure. The partnership between the North Park and the Bozeman Midtown urban renewal districts with allow for the use of funds from both districts in support of shared and connecting infrastructure. In collaboration with TLMD, the North Park URD will help elevate development of the state property to its highest and best use through the fostering of second, value-adding industry. Criteria Description Based on these guiding principles, the following criteria will be used in evaluating projects and programs and in setting priorities, in the context of limited financial resources. These criteria are listed in no order of importance. 1. Purpose and intent – Does the project foster secondary, value-adding development? 2. Project design and readiness – Is the project ready to move forward? For example, are any necessary permits in place? Has due diligence been completed? Does the project lend itself to phasing or segmentation that enables portions of the project to stand alone? 3. Leverage ratios of public to private funds invested – Are urban renewal dollars leveraging private investment? For example, does the installation of public infrastructure correspond to investment in business? What is the percent of public dollars invested in the infrastructure as compared to private dollars? 4. Health and safety concerns – Does the project address a condition of blight that endangers the “health, safety….and welfare” of the residents? Does it improve fire and life safety requirements? Does it reduce emergency response time? 5. Opportunity to take advantage of initiatives and funding sources – Does the project or program enable the City to take advantage of an initiative or funding source that can be matched or leveraged by urban renewal dollars and/or private investment? 6. Critical infrastructure and/or connectivity needs – Does the project enable better connectivity within the urban renewal district and/or between the urban renewal district and the community? For example, projects that support improved multi- modal transportation or better access to the community telecommunications network might be given greater priority. 7. Opportunity to support planned urban density and design – Does the project or program provide for increased efficiency in delivery of services, increase live- work opportunities and/or community interaction? 8. Job creation – Does the program or project create new employment opportunities and/or opportunities for workforce training? Projects that create more jobs per public funds invested will be more desirable. There may also be opportunities to partner with businesses, organizations and educational entities to provide vocational and professional training. 9. Resulting increase in taxable value – Does the project improve the overall property tax base within the district, increasing the amount of tax increment dollars available for urban renewal activities? Over the long term, improving 406 North Park Urban Renewal District Plan – 2017 Page 27 the tax base can assure continued economic health within the urban renewal district and the community’s well-being into the future. 10. Resulting increase in tax increment revenue – Will the project increase the amount of tax increment dollars available for urban renewal activities or is there an intent to seek a property tax abatement? 11. Ability of project to enhance North Park’s role as a key economic activity generator – Does the project support, rather than compete with, other community and Montana State University economic development initiatives? Does the project foster secondary, value-adding industries or does it compete with the intent and purpose of the other urban renewal districts in the city of Bozeman? 12. Consistency with adopted plans including the North Park Urban Renewal District Plan – Does the project reflect the vision, goals and objectives set forth in the Bozeman Community Plan and other adopted plans? 13. Sustainability, one-time infusion of funds versus on-going need for funding – Will the project require on-going support to be sustainable? Are other, longer- term funding strategies considered in project planning? How the Criteria are Used The extent to which these criteria are applied will depend on the specific project or program being considered. They are intended to provide a decision-making framework to set priorities. In most cases, only some of the criteria would apply for a specific project or program. For instance, some projects might rank higher with respect to job creation, while others may result in greater private investment. Public investment in infrastructure to improve connectivity may or may not result in an increase in taxable value. Through the process of preparing annual work plans, more specificity may be assigned to some or all the criteria, based on changing community and district priorities. Given the wide range of potential activities, the criteria will be particularly effective in evaluating similar project proposals, such as multiple proposals to install public infrastructure, or in reviewing applications for grants and loans. The criteria can also be used to develop more specific guidelines for grant and loan programs established under this plan. The criteria become particularly important as recommendations are made to the City Commission regarding the funding of projects and programs during the budget approval process. Demonstrating how each proposed activity meets the criteria will assist the Commission in evaluating its appropriateness with respect to the goals and objectives of the urban renewal plan as well as of the community overall. 407 North Park Urban Renewal District Plan – 2017 Page 28 Chapter 7. Implementation The North Park Urban Renewal District Plan provides a framework for revitalization activities. Upon its adoption, this Plan will serve as the official policy guide for public action. However, these policies can only be transformed to action through an effective implementation program. Key to implementation will be sound processes of administration, financing and program evaluation. Administration Under §7-15-4231, MCA, the exercise of powers related to urban renewal, a municipality may itself exercise its urban renewal project powers, or may, “if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency created under §7-15-4232, MCA, or a department or other officers of the municipality as they are authorized to exercise under this part and part 43.” The City of Bozeman may establish an urban renewal agency under this provision to direct the projects and programs outlined in the Urban Renewal Plan. As provided in the statute, the City Commission would appoint five members to the agency’s board, who would be responsible for developing and implementing programs. Since 2006, the City of Bozeman has chosen to exercise its urban renewal project powers directly, rather than establish a separate urban renewal agency. In the city’s other urban renewal districts, the City Commission has created an urban renewal board for each district to serve in an advisory capacity to the Commission in planning for, implementing and administering a program of rehabilitation and revitalization. The board provides opportunities for stakeholders in the District, including property owners, business owners, residents and school district representatives to participate in formulating urban renewal projects and programs. At this point in time and due to the ownership of the North Park area, the City has chosen to utilize staff in an advisory capacity in the planning for, implementing and administering a program of revitalization for the District. The annual work program and budget, listing the activities and costs of the activities for the coming fiscal year, as well as the method of financing those activities is reviewed and approved by the City Commission. This program and budget can be amended during the fiscal year considering funding and program opportunities and changes. Urban renewal activities undertaken must be in accordance with Montana State statute. (The specific provisions of §7-15-4233, MCA are below.) 7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1) In the event the local governing body makes such determination, such body may authorize the urban renewal agency or department or other officers of the municipality to exercise any of the following urban renewal project powers: (a) to formulate and coordinate a workable program as specified in 7-15-4209; (b) to prepare Urban Renewal Plans; (c) to prepare recommended modifications to an urban renewal project plan; (d) to undertake and carry out urban renewal projects as required by the local governing body; (e) to make and execute contracts as specified in 7-15-4251, 7-15-4254, 7-15-4255, and 7-15-4281, with the exception of contracts for the purchase or sale of real or personal property; (f) to disseminate blight clearance and urban renewal information; (g) to exercise the powers prescribed by 7-15-4255, except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages shall be reserved to the 408 North Park Urban Renewal District Plan – 2017 Page 29 local governing body; (h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7-15-4257; (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area; (j) to insure real or personal property as provided in 7-15-4258; (k) to effectuate the plans provided for in 7-15-4254; (l) to prepare plans for the relocation of families displaced from an urban renewal area and to coordinate public and private agencies in such relocation; (m) to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements; (n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of urban renewal projects; (o) to negotiate for the acquisition of land; (p) to study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto; (q) to organize, coordinate, and direct the administration of the provisions of this part and part 43; (r) to perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and performance of the duties and responsibilities entrusted to the local governing body. (2) Any powers granted in this part or part 43 that are not included in subsection (1) as powers of the urban renewal agency or a department or other officers of a municipality in lieu thereof may only be exercised by the local governing body or other officers, boards, and commissions as provided under existing law. Annual report The Montana Urban Renewal Law includes requirements for annual reporting for Districts with a TIF provision in §7-15-4237, MCA as follows: (1) An agency authorized to transact business and exercise powers under part 43 and this part shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. A copy of the annual report must be made available upon request to the county and school districts that include municipal territory. (2) The report must include a complete financial statement setting forth its assets, liabilities, income, and operating expenses and the amount of the tax increment as of the end of the fiscal year. The report must describe the expenditures of tax increment in the preceding fiscal year and how the expenditures comply with the approved urban renewal plan or comprehensive development plan for the district. (3) At the time of filing the report, the agency shall publish in a newspaper of general circulation in the community a notice to the effect that the report has been filed with the municipality and that the report is available for inspection during business hours in the office of the city clerk and in the office of the agency. Projects and Programs The City of Bozeman will implement programs and evaluate projects based on the guiding principles and goals of this North Park Urban Renewal District Plan. Given that private development will be necessary to generate tax increment funds, business development must occur hand in hand with other community based economic development activities. The North Park Urban Renewal Program will make use of a variety of financing in achieving the goals of this plan, including: 409 North Park Urban Renewal District Plan – 2017 Page 30 Public Investments Urban renewal can assist the local government with meeting the public’s share of the cost of infrastructure improvements and other renewal activities through methods such as the following: • Annual Tax Increment Appropriations – The City of Bozeman may finance smaller public infrastructure improvements and renewal programs from its annual tax increment receipts by appropriation. Funds available each year would be determined by the size of the annual increment and any prior commitments (such as bond debt service requirements and administrative costs). • Tax Increment Bonds – The City of Bozeman will issue tax increment financing (TIF) revenue bonds if necessary, as revenues allow, to finance major capital projects. TIF bonds will enable the local government to finance projects up- front and then retire the debt through annual tax increment receipts. • Other Debt Financing – The City of Bozeman may borrow funds through local, state and federal loan programs to finance public improvements. Annual tax increment revenues may be used to make principal and interest payments • Local, State and Federal Funding Mechanisms – There are several funding resources available to communities to undertake planning and capital improvement projects. These are listed in the funding section below. Private Sector Development In addition to public sector investments, urban renewal can assist property and business owners in specific renewal activities through programs including the following: • Tax Increment Financing Revolving Loans – §7-15-4292, MCA provides for the establishment of loan programs, whereby TIF funds may be used to support public and private urban renewal projects in support of the goals of the Urban Renewal Plan for the District. As principal and interest payments are made, the funds may be loaned again, even after the TIF provision terminates. The management of a revolving loan program may be undertaken directly by the City, or through a contract with another entity. • Tax Increment Grants – In some cases grants may be made to private entities to support projects that are in the community’s best interest, and are in keeping with the purposes of the Montana Urban Renewal Law. An example might be support for enhanced public features that contribute to a unifying design theme for the District. • Other Assistance – The urban renewal program can assist private sector projects in a variety of ways, by providing technical assistance (such as market analyses, business recruitment and capital improvements planning) and helping property owners access federal, state and local resources and incentives for development. Financing Resources Tax Increment Financing 410 North Park Urban Renewal District Plan – 2017 Page 31 As noted above, the implementation of the North Park Urban Renewal District Plan will include the use of Tax Increment Financing (TIF). More particularly, costs that may be paid using TIF dollars are included in §7-15-4288, MCA as follows: 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the municipality to pay the following costs of or incurred in connection with an urban renewal project, industrial infrastructure development project, technology infrastructure development project, or aerospace transportation and technology infrastructure development project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports for reusable launch vehicles with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; (5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233; (6) acquisition of infrastructure-deficient areas or portions of areas; (7) administrative costs associated with the management of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district; (8) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (9) the compilation and analysis of pertinent information required to adequately determine the needs of an urban renewal project in an urban renewal area, the infrastructure needs of secondary, value-adding industries in the industrial district, the needs of a technology infrastructure development project in the technology district, or the needs of an aerospace transportation and technology infrastructure development project in the aerospace transportation and technology district; (10) the connection of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district to existing infrastructure outside the district; (11) the provision of direct assistance, through industrial infrastructure development projects, technology infrastructure development projects, or aerospace transportation and technology infrastructure development projects, to secondary, value-adding industries to assist in meeting their infrastructure and land needs within the district; and (12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. A tax increment program is authorized for 15 years or longer if the tax increment revenue is pledged to the payment of tax increment bonds. §7-15-4289, MCA provides for the use of tax increments for bond payments. The tax increment may be pledged to the payment of the principal of premiums, if any, and interest on bonds, which the municipality may issue to provide funds to pay such costs. Per §7-15-4291, MCA, the City of Bozeman may enter into agreements with the other affected taxing bodies to remit to such taxing bodies any portion of the annual tax increment not currently required for the payment of the costs listed in §7-15-4288, MCA or pledged to the payment of the principal of premiums, if any, and interest on bonds. Other Financing Mechanisms 411 North Park Urban Renewal District Plan – 2017 Page 32 There are several financial assistance programs that can be used in the development of the North Park Renewal District in addition to Tax Increment Financing. Financing strategies for addressing urban renewal needs identified in this Plan will likely include combining various funding sources. For example, a local special improvement district might be used in combination with a Montana Board of Investment Intercap loan to match federal or state dollars. The following is a summary of programs available to fund urban renewal projects: Transportation Infrastructure This section describes funds and funding sources that are available to finance urban renewal transportation related projects. These funding methods, such as local option taxes, improvement districts and other types of bonds, enable local citizens to participate in funding projects. In general, however, the ability to use additional property tax levies to fund urban renewal is governed by Montana Statute under 15-10-402, MCA that limits taxes to 1996 levels. A. Bridge and Road Mills (Property Taxes) Montana law provides for cities (§7-14-4101, MCA) to manage transportation infrastructure. Counties are specifically responsible for all the bridges in a county, including those within cities and towns, except those managed by the Montana Department of Transportation. Municipalities may establish a road fund under §7-14-4113, MCA. B. Transportation Improvement Authority Established under §7-14-1001, MCA, the purpose of a transportation improvement authority is to blend the interests of local, state, and federal governments with the interests of the public and the business community to build, modify, or improve transportation facilities and systems within its jurisdiction. A county and a municipality within a county may, by joint resolution, create a transportation improvement authority. The Authority may enter into contracts and accept local, state, federal and private funds to undertake transportation projects. C. Transportation Alternatives Program (TA Program), Montana Department of Transportation The Transportation Alternatives (TA) Program authorized under Section 1122 of the Federal Highway Administration’s Moving Ahead for Progress program -MAP-21 (23 U.S.C. 213(b), 101(a)(29)), replaces the former Community Transportation Enhancement Program. It provides approximately $4, Million annually to eligible entities including local governments, for activities defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities, and environmental mitigation; recreational trail program projects; safe routes to school projects; and projects for the planning, design or construction of boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways. D. State Fuel Tax Under 15-70-101, MCA, Montana assesses a tax on gasoline and diesel fuel used for transportation purposes. Each municipality receives a portion of the total tax funds allocated to cities and Towns based on: 412 North Park Urban Renewal District Plan – 2017 Page 33 1) The ratio of the population within each municipality to the total population in all cities and Towns in the State; 2) The ratio of the street mileage within each municipality to the total street mileage in all incorporated cities and towns in the State. The street mileage is exclusive of the Interstate, National Highway, and Primary Systems. All fuel tax funds allocated to local governments must be used for the construction, reconstruction, maintenance, and repair of rural roads or city streets and alleys. Priorities for the use of these funds are established by the cities receiving them. Debt Financing – All Types of Projects Local governments can make use of various kinds of debt financing to fund urban renewal projects. In addition to Tax Increment Financing Bonds discussed above, these include revenue bonds, special improvement district bonds and general obligation bonds. Debt financing enables local governments to finance major infrastructure projects using future revenue from special assessments, user fees, and other forms of revenue. Under §7-7-4101, MCA, a local government has power to incur indebtedness by borrowing money, issuing bonds, issuing notes, entering leases and lease-purchase agreements, or entering into installment purchase contracts for the following purposes: 1) acquiring land for and designing and erecting public buildings; 2) acquiring land for and designing and constructing sewers, sewage treatment and disposal plants, waterworks, reservoirs, reservoir sites, and lighting plants; 3) supplying the municipality with water by contract and the construction or purchase of canals or ditches and water rights for supplying municipality with water; 4) designing and constructing bridges, docks, wharves, breakwaters, piers, jetties, and moles; 5) acquiring, opening, or widening any street and improving the street by constructing, reconstructing, and repairing pavement, gutters, curbs, and vehicle parking strips and to pay all or any portion of the cost relating to the project; 6) purchasing or leasing fire apparatus, street and other equipment, and personal property, including without limitation, vehicles, telephone systems, and photocopy and office equipment, including computer hardware and software; 7) building, purchasing, designing, constructing, and maintaining devices intended to protect the safety of the public from open ditches carrying irrigation or other water; 8) funding outstanding warrants and maturing bonds; and 9) repaying tax protests lost by the local government or other municipal corporation. The local government incurs various administrative costs in conjunction with issuing bonds. These costs include the retention of legal counsel and financial consultants, the establishment of reserve funds and the preparation of the prospectus and various required documents. These bonds provide tax-free interest earnings to purchasers and are therefore subject to detailed scrutiny under both 413 North Park Urban Renewal District Plan – 2017 Page 34 state and federal law. The citations in the Montana Code are listed below, for each type of bond described. A. Special Improvement Districts Under §7-12-4101, and §7-12-4102, MCA, cities and towns can create special improvement districts for a number of activities including: • The acquisition, construction or reconstruction of public streets and roads • The acquisition, construction or reconstruction of sidewalks, culverts, bridges, gutters, curbs, steps and parks including the planting of trees • The construction or reconstruction of sewers, ditches, drains, conduits, and channels for sanitary or drainage purposes, with outlets, cesspools, manholes, catch basins, flush tanks, septic tanks, connecting sewers, ditches, drains, conduits, channels, and other appurtenances • The construction of sewer and water systems including fire hydrants • The acquisition and improvement of land to be designated as public park or open-space land • The conversion of overhead utilities to underground locations in accordance with §69-4-311 through §69-4-314, MCA • The purchase, installation, maintenance, and management of alternative energy production facilities B. Business Improvement District Business Improvement Districts (BIDs) are authorized under §7-12-1101 et. seq MCA. This provision of the law allows the local governing body to assess properties, upon the request of property owners within a district to fund the following activities: • provide special police, maintenance, or cleaning personnel for the protection and enjoyment of the general public using the business district • landscape and beautify public areas and to maintain those areas • contract with the governing body to maintain, operate, or repair public parking facilities • contract with the governing body to maintain streets, alleys, malls, bridges, ramps, tunnels, landscaping, and other public facilities as mutually agreed upon • promote private investment and business expansion in the district • provide for the management and administration of the affairs of the district • promote business activity by advertising, decorating, marketing, and promoting and managing events and other actions designed for the general promotion of business activities in the district • perform such other functions as are necessary to carry out the purposes of this part and to further the objectives of the district. 414 North Park Urban Renewal District Plan – 2017 Page 35 C. General Obligation Bonds General obligation bonds are backed by the full faith and credit of the local government and must be approved by the voters in an election. General obligation bonds are generally payable from ad valorem taxes (based on the value of property) and expressed in mills. General obligation bonds are attractive to bond buyers because they have voter approval and are not as vulnerable to fluctuations in revenue. Municipalities are assigned a bond debt limit based on a percentage of taxable valuation. General obligation bonds must fall within this limit. D. Municipal Revenue Bonds Under §7-7-4401, MCA, a municipality may issue revenue bonds to finance any project or activity authorized NOTE: Pursuant to §7-15-4218, MCA, voter approval of the urban renewal plan is required when general obligation bonds are to be used. If the plan or any subsequent modification thereof involves financing by the issuance of general obligation bonds of the municipality as authorized in §7-15- 4302(1) or the financing of water or sewer improvements by the issuance of revenue bonds under the provisions of part 44 of chapter 7 or of part 43 of chapter 13, the question of approving the plan and issuing such bonds shall be submitted to a vote of the qualified electors of such municipality, in accordance with the provisions governing municipal general obligation bonds under chapter 7, part 42, at the same election and shall be approved by a majority of those qualified electors voting on such question. Railroad Crossing Related Programs A. Federal Surface Transportation Program - Rail/Highway Crossing Protective Devices Program The purpose of the Federal Rail/Highway Crossing – Protective Devices Program is to identify high hazard rail crossing sites and install new rail crossing signals. MDT's Rail - Highway Safety manager is responsible for surveying, identifying and prioritizing those railroad crossings that require new protective devices or upgrading of existing devices. The funds are distributed on a statewide basis determined by a priority list ranked by a hazard index. The Federal/State ratio is 90% Federal and 10% State. B. Federal Surface Transportation Program - Rail/Highway Crossing Elimination of Hazard Program The purpose of the Federal Rail/Highway Crossing – Elimination of Hazard Program is to identify high hazard rail crossing sites and construct new rail/highway grade crossings. The program also uses funds to rehabilitate existing grade separations. Grade separation projects are funded with 90% Federal funds and 10% State funds. Since funding for this program is limited, funds are often used in combination with other Federal funding sources to fund costly grade separation projects. Eligible expenditures include the separation or protection at grade crossings, reconstruction of existing crossings and relocation of highways to eliminate crossings. Projects for this program are selected by identifying those sites where only a grade separation will eliminate an identified hazard or where an existing grade separation exists but needs rehabilitation or replacement. 415 North Park Urban Renewal District Plan – 2017 Page 36 Funding for Public Improvements (Sewer, Water, Roads, Community Facilities, Parks) A. Treasure State Endowment Program ~ Montana Department of Commerce The Montana Treasure State Endowment Program (TSEP) is a state-funded program, authorized under §90-6-701 through 710, MCA, and is administered by the Montana Department of Commerce (MDOC). It is designed to assist local governments in financing capital improvements to sewer and water facilities. Funds are derived from the Montana coal severance tax and made available to local governments as matching grants, loans and grant/loan combinations. TSEP also provides matching grants of up to $15,000 to local governments for preliminary engineering study costs. TSEP funds may not be used for annual operation and maintenance; the purchase of non- permanent furnishings; or for refinancing existing debt, except when required in conjunction with the financing of a new TSEP project. Grant requests cannot exceed $500,000 and the local government must typically provide a dollar for dollar match that can include other grant funds. Matching funds can be public or private funds provided by a TSEP applicant to directly support the cost of eligible project activities. There are several ways in which local governments can provide matching funds for bridge projects. Eligible types of matching funds include: • local general funds or other cash; • proceeds from the sale of general obligation, revenue, special assessment or other bonds; • entitlement or formula-based federal or state funds such as federal highway funds or payments in lieu of taxes; • loan or grant funds from a state or federal program (including TSEP loans); • funds expended for engineering studies, reports, and plans, or other reasonable expenses expended for the preparation of the application, directly related to the project during the period 24, Months prior to the TSEP application deadline; • funds expended after the TSEP application deadline, but before being approved by the Legislature, for project management, final engineering design, and other reasonable expenses necessary to prepare the project as in the TSEP application for the construction phase; • the value of land or materials provided by the applicant, if appraised within a two-year period preceding the application deadline. The appraisal must be: • an impartially written statement that adequately describes the land or materials, and states an opinion of defined value as of a specific date; • supported by an analysis of relevant market information; and • prepared by a qualified appraiser independent from the applicant. • the value of labor performed by the applicant’s employees on the project, after the TSEP project has been approved for funding and a TSEP contract has been signed, as long as the employee is paid at his or her standard hourly rate of pay and the time worked is adequately documented; and • the value of machinery used in the process of constructing the project that is owned (or leased) and operated by the applicant. The value of the use of the machinery will be determined using the Federal Emergency Management Agency (FEMA) equipment rate schedules. 416 North Park Urban Renewal District Plan – 2017 Page 37 B. The Montana Intercap Program ~ Montana Board of Investments The INTERCAP Program is a low cost, variable-rate program that lends money to Montana local governments, state agencies and the university system for financing or refinancing the acquisition and installation of equipment or personal and real property and infrastructure improvements. The Board of Investments issues tax-exempt bonds and loans the proceeds to eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim financing. Funding is always available with no specific cycle. Allocations of $200,000 and under are considered and approved by the Board of Investments staff. Allocations in excess of $200,000 are considered and approved by the Board. Funds are released on an on-going basis as the project is completed. The program provides loans at a variable rate plus a one percent loan origination fee on loans over one year and for a term of 5 or 10 years depending on the borrower's legal authority. Short-term loans of less than a year are also available. Interest and principal payments are due bi- annually (February 15 and August 15 of each year). Loans may be pre-paid without penalty with 30 days’ notice. Types of financing include installment purchase loans, general fund loans, general obligation bonds, revenue bonds and special improvement district and rural improvement district bonds. Gas tax revenues may not be used to service debt. Projects that will use rural improvement district payments to cover the annual debt are limited to a total loan of $300,000. Intercap funds may be used in association with other grant and loan programs as well as local sources. C. Community Development Block Grant (CDBG The Community Development Block Grant (CDBG) Program is a federally funded grant program that assists communities with development needs such as housing, public facilities, economic development and planning grants. All projects must be designed to principally benefit low and moderate-income families. The program was established by the Federal Housing and Community Development Act of 1974 (42 USC 5301) and is administered nationally by the U.S. Department of Housing and Urban Development (HUD). The Legislature authorized the Montana Department of Commerce (MDOC) to administer the program beginning in 1982. Eligible activities include planning, public facilities construction, housing and neighborhood renewal and economic development. D. Public Works Program ~ Economic Development Administration The Economic Development Administration (EDA) is an agency within the U.S. Department of Commerce. The purpose of the Public Works Program is to assist communities with the funding of public works and development facilities that contribute to the creation or retention of private sector jobs and to the alleviation of unemployment and underemployment. Such assistance is designed to help communities achieve lasting improvement by stabilizing and diversifying local economies, and improving local living conditions and the economic environment of the area. Grants are awarded up to a participation level of 80 percent but the average EDA grant covers approximately 50 percent of project costs. Acceptable sources of match include cash, local general obligation or revenue bonds; Community Development Block Grants, TSEP grants and loans, entitlement funds, Rural Development loans; and other public and private financing, including donations. 417 North Park Urban Renewal District Plan – 2017 Page 38 Projects must result in private sector job and business development to be considered for funding. Eligible applicants under this program include any state, or political subdivision thereof, Indian tribe (and other U.S. political entities), private or public nonprofit organization or association representing any redevelopment area if the project is within an EDA-designated redevelopment area. Redevelopment areas, other than those designated under the Public Works Impact Program must have a current EDA-approved Overall Economic Development Program (OEDP) in place. E. Water, Wastewater and Solid Waste Action Coordinating Team In 1982, a group of professionals from state, federal, and non-profit organizations that finance, regulate, or provide technical assistance for community water and wastewater systems, decided to start meeting in order to coordinate and enhance their efforts. This group calls itself the "Water, Wastewater and Solid Waste Action Coordinating Team" or W2ASACT for short. W2ASACT meets several times a year to find ways to improve our state's environmental infrastructure. All of the programs represented in W2ASACT have different missions and meet unique needs. However, it has been the common elements shared by the funding programs that have been the driving force of W2ASACT. These programs provide money (grants or loans), take applications from communities to fund their projects, and administer those monies once the project is funded. While W2ASACT cannot change all of the state or federal requirements, it can identify unnecessary duplication of requirements that make compliance difficult for communities. Voluntary Programs In some cases, homeowner associations, business groups or other property owners may finance urban renewal projects voluntary basis. North Park Urban Renewal Program Evaluation and Plan Amendments This Urban Renewal Plan will be evaluated on a yearly basis in conjunction with the preparation of the annual report. Measures that may be used in evaluating program success include: ➢ Increases in the property tax base ➢ Creation of jobs within the North Park Urban Renewal District ➢ Elimination of blighted conditions The plan provides flexibility to accommodate a variety of approaches. However, changes over time may necessitate more formal amendments to the Plan. The North Park Urban Renewal District Plan may be modified by ordinance under §7-15-4221, MCA. 418 North Park Urban Renewal District Plan – 2017 Page 39 Appendix A. Planning Consistency Review Resolution of Recommendation on the North Park Urban Renewal District Plan Page 1 of 5 Staff Report for Resolution of Recommendation on the North Park Urban Renewal District Plan Application Public Meeting Date: Planning Board meeting is July 18, 2017. Public Hearing Date: City Commission hearing August 28, 2017. Project Description: The urban renewal plan for the North Park Urban Renewal District. Project Location: The North Park urban renewal area is located to the north and west of the Interstate 90 – North 7th Interchange and is generally bound by Interstate 90 to the west, Red Wing Drive to the north and east, Flora Lane and North 7th Avenue to the east, and Mandeville Lane to the south. The area includes approximately 250 acres. The property is legally described as a tract of land comprised of the SW 1/4 of Section 36, less the Lewis & Clark Commercial Subdivision, Plat J- 376, less Minor subdivision 320, Lot 1 and including Tract 2, COS 1723 and the W1/ 2, SE 1/4 of Section 36, less the Gordon Mandeville State School Section Subdivision, TIS, R5E, PMM, Gallatin County along with adjacent public rights-of-way and approximately 1.1 linear miles of Burlington Northern / Montana Rail Link right-of-way and COS 2153, along with and subject to all easements of record or apparent on the ground. Recommendation: Approval of the Resolution of Recommendations Recommended Motion: Having reviewed and considered staff and consultant materials, public comment and all the information presented, I move to approve the Resolution of Recommendations, as the Planning Board’s written recommendation to the Bozeman City Commission, adopting the findings of the North Park Urban Renewal District Plan’s conformance with the Bozeman Community Plan and that the area of the North Park Urban Renewal District is zoned for uses in accordance with the Bozeman Community Plan. Report Date: Friday, July 12, 2017 Staff Contacts: Chris Saunders, Policy and Planning Manager Shawn Koltz, Development Review Engineer Brit Fontenot, Director of Economic Development Agenda Item Type: Action (Legislative) 419 North Park Urban Renewal District Plan – 2017 Page 40 Summary The North Park Urban Renewal Plan aligns with the City’s economic development priorities to facilitate mid- and high wage job growth and industry diversification. Community partners work together in support of the primary tenets of the City’s recently adopted 2016 Economic Development Strategy: 1. Retention and growth of existing businesses, while welcoming and encouraging new businesses; 2. Investment in infrastructure to drive economic development; and 3. Education and workforce development initiatives to provide businesses with qualified workers. (Bozeman Economic Development Strategy Update, 2016) Background Established in 2006, the Mandeville Farm Tax Increment Financing Industrial District (TIFID), also known as the North Park Industrial district was established to enable the use of incremental increases in property tax revenues to encourage the attraction and retention of value-adding industries. The district, however, failed to attract private investment, or contribute to the implementation of Bozeman’s economic development strategy. On June 13, 2016, as part of the annual budget approval process, the City Commission reviewed the district’s work plan and budget for FY 17. At that time, the City staff voiced its concerns and options for the area going forward. Since June, staff and the property owners, North Park Development Partners and the State of Montana through the Department of Natural Resources and Conservation, have discussed the viability of the existing industrial district. Part of that conversation included a discussion of the value of sunsetting the existing industrial TIF and establishing a new district in keeping with the types of development envisioned on the property. The participants in these discussions agreed that the establishment of an urban renewal district with a TIF provision, emphasizing value-adding industries, is more appropriate for the proposed development than the existing industrial district. This approach acknowledges that economic development is a long-term proposition and maintains the opportunity to use tax increments to attract and retain value-adding commerce. Therefore, the City of Bozeman is proposing to sunset the existing industrial district and replace it with an urban renewal district. The Mandeville Farm TIFID is set to expire in 2021. The City of Bozeman plans to “sunset” (terminate) the Mandeville Farm TIFID, and instead create the North Park Urban Renewal District (URD) to prevent and eliminate blighted areas per §7-15-4202 MCA, reduce poverty in the City of Bozeman, and deliver efficient public services through the following: The investment in public infrastructure in support of economic development, with a focus on value-adding commerce The attainment of urban density to achieve greater efficiency in the delivery of public services The facilitation of live-work opportunities for workforce housing in proximity to places of employment in value-adding commerce The creation of opportunities for livable wage jobs in value-adding commerce 420 North Park Urban Renewal District Plan – 2017 Page 41 While a URD offers greater opportunity for innovation than a TIFID, a determination of blight must be made prior to establishing a district. The North Park area is within the urban core, but the Interstate 90 corridor and the Montana Rail Link line, which border the property, serve as physical barriers to the desired development and uses. The North Park area can be described as blighted under the Montana Urban Renewal Law, because its geographic isolation “substantially impairs or arrests the sound growth” of the municipality per §7-15-4201 MCA, making it eligible for designation as a URD. Lack of appropriate infrastructure, including water, sewer, stormwater, transportation and communication networks, under-developed ingress and egress, inappropriate uses of land or building, and faulty lot layout in relation to size, adequacy, accessibility, or usefulness, can be remedied by investment in infrastructure using tax increment financing in a URD. City Commission action to “sunset” (terminate) the Mandeville Farm TIFID, and create the North Park Urban Renewal District (URD) would occur in subsequent steps in the process when the City Commission adopts the urban renewal plan by ordinance. On April 10, 2017, with the adoption of Resolution 4792, the findings of blight and establishing the necessity of rehabilitation and redevelopment of the North Park area, the Commission took the first step in the process of creating a URD and expanding the existing boundaries of the North Park TIFID per 7- 15-4210 MCA. Following this decision, the City has developed the Bozeman North Park Urban Renewal District (URD) plan, and has consulted with the affected taxing jurisdictions of Gallatin County and Bozeman School District #7. After the Planning Board review and recommendation as to the conformance of the URD plan and accordance of the zoning within the area of the URD with the Bozeman Community Plan, notice of the public hearing before the City Commission with be given. This notice will include a certified notice to all property owners, and a formal notice to meet and consult to the affected taxing jurisdictions. The City Commission action to “sunset” (terminate) the Mandeville Farm TIFID, and create the North Park Urban Renewal District (URD) would occur with the City Commission’s final adoption of the ordinance. Analysis and Findings Analysis and resulting recommendations are based on the entirety of the application materials, municipal codes, standards, and plans, public comment, and all other materials available during the review period. Collectively this information is the record of the review. The analysis is a summary of the completed review. The purposes of this Planning Board review of the North Park Urban Renewal District Plan are: to consider all relevant materials to determine whether the plan is in conformance with the Bozeman Community Plan; and the zoning of the area of the North Park Urban Renewal District to determine if 421 North Park Urban Renewal District Plan – 2017 Page 42 the land is zoned for uses in accordance with the Bozeman Community Plan; and to make a written recommendation on such to the City Commission. Chapter 5 of the North Park Urban Renewal District Plan describes the purpose and intent of the Plan to be implemented through the goals and associated strategies of the Plan. The stated goals are: Goal #1 Promote Economic Development, with a Focus on Value-Adding Commerce Goal #2 Invest in Efficient Delivery of Public Infrastructure Goal #3 Support Planned Urban Density and Design Chapter 4 includes a synopsis of the review of the conformance of the North Park Urban Renewal District Plan to the Bozeman Community Plan, and in Appendix A is found the more extensive review of that conformance. The North Park Urban Renewal District Plan has been found to be in conformance with the Bozeman Community Plan; and the of the North Park Urban Renewal District has been determine to be zoned for uses in accordance with the Bozeman Community Plan. Zoning and Growth Policy Zoning Designation and Land Uses: The project site is designated as “M-1 Light Manufacturing” “M-2 Manufacturing and Industrial” zones. The intent of each of these zones is established in Chapter 38, Unified Development Code, BMC and is excerpted below. From Section 38.12.010, BMC A. The intent and purpose of the industrial zoning districts is to establish areas within the city that are primarily industrial in character and to set forth certain minimum standards for development within those areas. The purpose in having more than one industrial district is to provide opportunities for a variety of employment and community service functions within the community while providing predictability. There is a rebuttable presumption that the uses set forth for each district will be compatible with each other when the standards of this chapter are met and any applicable conditions of approval have been satisfied. Additional requirements for development apply within overlay districts. 1. The intent of the M-1 light manufacturing district is to provide for the community's needs for wholesale trade, storage and warehousing, trucking and transportation terminals, light manufacturing and similar activities. The district should be oriented to major transportation facilities yet arranged to minimize adverse effects on residential development, therefore, some type of screening may be necessary. 2. The intent of the M-2 manufacturing and industrial district is to provide for heavy manufacturing and industrial uses, servicing vocational and employment needs of city residents. Adopted Growth Policy Designation: The property is designated as “Industrial” in the Bozeman Community Plan. The Plan indicates that this classification provides areas for the uses which support an urban environment such as manufacturing, warehousing, and transportation hubs. Development within these areas is intensive and is connected to significant transportation corridors. In order to protect the economic base and necessary services 422 North Park Urban Renewal District Plan – 2017 Page 43 represented by industrial uses, uses which would be detrimentally impacted by industrial activities are discouraged. Although use in these areas is intensive, these areas are part of the larger community and shall meet basic standards for landscaping and other site design issues and be integrated with the larger community. In some circumstances, uses other than those typically considered industrial have been historically present in areas which were given an industrial designation in this growth policy. Careful consideration must be given to public policies to allow these mixed uses to coexist in harmony. Noticing and Public Comment Notice was published in the Bozeman Daily Chronicle on July 2, 2017. Notice has been provided at least 15 and not more than 45 days prior to the Planning Board public meeting. The City Commission public hearing is scheduled on August 28, 2017. Certified notice to all property owners, and a formal notice to meet and consult to the affected taxing jurisdictions shall be provided at least 15 and not more than 45 days prior to the City Commission public hearing Owner Information and Reviewing Staff Owners: North Park Development Partners; and State of Montana Trust Land managed by the Trust Land Management Division (TMLD) of the Montana Department of Natural Resources and Conservation (DNRC) Applicant: Brit Fontenot, Director of Economic Development Consultants: Lanette Windemaker, AICP; and Janet Cornish, Community Development Services of Montana Report By: Chris Saunders, Policy and Planning Manager Fiscal Effects The North Park TIFID currently has a deficit of $20,539 and an anticipated FY 16/17 increment of $7,900 expected in May 2017. This increment will be applied to the existing debt leaving an estimated deficit balance of $12,639 for FY 17/18. If nothing occurs in the existing District for two fiscal years, it is likely that the District will have cleared the debts associated with the original master planning of the site. If the North Park TIFID is sunsetted as proposed, a plan will be established to repay the last of the TIFID debt and establish the URD with a base year of 2017. It is nearly impossible to assess the future increase in taxable value that may or may not occur in the urban renewal district. Attachments: 1. DRC Engineering Memo; 2. Resolution of Recommendation; and 3. North Park Urban Renewal District Plan 423 North Park Urban Renewal District Plan – 2017 Page 44 Appendix B – Consultation with the Bozeman School District #7 and Gallatin County 424 North Park Urban Renewal District Plan – 2017 Page 45 425 North Park Urban Renewal District Plan – 2017 Page 46 426 North Park Urban Renewal District Plan – 2017 Page 47 427 North Park Urban Renewal District Plan – 2017 Page 48 Appendix C. Development Review Engineer Memo 428 North Park Urban Renewal District Plan – 2017 Page 49 429 North Park Urban Renewal District Plan – 2017 Page 50 430 North Park Urban Renewal District Plan – 2017 Page 51 431 South Bozeman Technology District Comprehensive Development Plan 432 Table of Contents Introduction ....................................................................................................Page 4 Location………………………………………………………………………….Page 5 History..................................................................................................................Page 5 What is a Technology Park?.......................................................................................... Page 6 Montana State University........................................................................... Page 8 Why a Technology Park Was Constructed At The Current Site................... Page 9 Global Competitiveness.............................................................................. Page 10 The MSU Innovation Campus Property (Current Site)............................ Page 11 Development Economics........................................................................... Page 11 Market Opportunity and Proximity Advantage....................................... Page 12 Montana State University Innovation Campus - 1986 to Current Day. Page 13 Task Force and On-Site Visit of AURP Professionals................................ Page 14 Objectives For Expanding the MSU Innovation Campus Site.................. Page 14 Planning For the Future and Enhancing Economic Benefits................... Page 14 New Mission and Vision for the Montana State University Innovation Campus................................................................................... Page 15 Core Values................................................................................................. Page 16 Goal ...... .., .. , ..................... ......... . ...................... ......................... ...................... Page 16 MSU Innovation Campus Expansion Plans.............................................. Page 17 Implementation Strategies........................................................................ Page 22 MSU Innovation Campus Target Markets................................................. Page 22 Positioning the MSU Innovation Campus................................................. Page 23 Guiding Principles for Expansion of the MSU Innovation Campus........ Page 23 433 Factors Critical to Success of the Montana State University Innovation Campus..................................................................................................... .......Page 26 Additional Critical Points........................................................................... Page 28 In Addition, Several Observations............................................................ Page 29 Sustainability............................................................................................... Page 29 Conclusion................................................................................................... Page 30 Documents also Included in Plan: Covenants, Conditions & Restrictions (Exhibit A)................................... Page 31 Architectural Guidelines (Exhibit B) ......................................................... Page 49 Site & Landscape Guidelines (Exhibit C) ................................................... Page 56 City of Bozeman Plan Unified Development Code, And Economic Development Plan (Exhibit D).................................................................... Page 64 2010 MSU Economic Impact Report (Exhibit E) ....................................... Page 75 TIF Map (Exhibit F) ..................................................................................... Page111 Legal Description (Exhibit G) ............................................................. Page112-113 Proposed TIF City Map (Exhibit H) .......................................................... Page 114 434 Introduction South Bozeman Technology District Comprehensive Development Plan As the leading research and technology park in Montana, the Montana State University Innovation Campus provides a place where people and ideas come together in an environment that assists and supports start-up companies and new ideas; provides state- of-the-art facilities for small, medium, large, and well-established companies to locate and prosper; a place where Montana State University faculty, researchers, and scientists work with private and government researchers and scientists to push forward cutting-edge science and advance technologies; a place where students gain hands-on real-world learning experiences that result in employment opportunities upon graduation; a high-tech research park where companies are our business, and our partners, and collaboration with Montana State University is a daily occurrence. Located on approximately 25 developed acres adjacent to Montana State University, the Innovation Campus provides services, facilities, programs and expertise to stimulate and support the growth of research and technology-based enterprises. Plans have begun to triple the size of the current 25 acres and expand the Inn ovation Campus to over 75 acres. To ensure efficiency in the use of land within the District, and the capacity of public infrastructure, the MSU Innovation Campus will seek to provide for an appropriate mix of R&D activities, commercial, and light-manufacturing development to guide such development to appropriate areas of the land identified for expansion. The Innovation Campus provides walkways, jogging, and biking trails. As the Innovation Campus develops, expansion will include open green spaces, water features, as well as a partnership to support further development of retail contiguous to the west side of the innovation Campus, known as the "Mitchell Development Gateway Project". Innovation Campus companies and their employees will enjoy many services and benefits as our Business Partner. These will include, just to name a few: • Class A office and Jab facilities • Executive Conference rooms, 'Think Tanks', and high-tech Conference facilities • Discount programs and services • State of-the-art high-speed data and telephone services • Special discount programs for office furniture, supplies, lab furnishings and chemicals • Incubation space, to include support services and counseling • Access to services at the campus library http:/www.lib.montana.edu • Student assistantships and internship programs 435 • Seminars by Montana State University and visiting scientists and scholars • Technology Transfer assistance with intellectual property and patent issues, licensing} and coordination of resources with the private sector • Use of Montana State University facilities and specialized equipment The Innovation Campus provides 'the place' for the creative and daring to push the entrepreneurial spirit to new heights; to take new ideas from concept to reality; and for pioneering researchers and scientists to expand research opportunities and create cutting- edge technologies that will change the world. Location The Innovation Campus is located in Bozeman, Montana, a place well known for its beautiful landscape, pristine surroundings, and outstanding quality of life. Bozeman has a comfortable climate, four magnificent seasons, recreational and entertainment opportunities, with fantastic dining and culture experiences. Simply put, Bozeman is an outdoor enthusiast's playground of year-round activities, cuisine, music, and art festivals. In addition, Bozeman offers a highly educated population of 40,000 residents with more than 49% of the community holding undergraduate and higher degrees. History In 1986, Montana State University, under the leadership of President Bill Tietz, requested Montana State University Foundation develop and manage the first and only university- related research park in Bozeman, Montana, known as the Advanced Technology Park (ATP). Montana State University Foundation obtained property upon which the Advanced Technology Park was developed. In that same year, engineering services and installation of infrastructure was completed. In 1988, the first building known as the Napper Building was completed. Over the subsequent 10 years, 12 additional buildings were constructed. As of January 1, 2012, there are more than 35 businesses and research groups housed in the Advanced Technology Park employing more than 200 people. Approximately 46% of those employed are Montana State University graduates. In addition, more than a dozen start-up companies originated in the Advanced Technology Park between 1988 and 2008. In November of 2011, the Advanced Technology Inc. (ATI) Board received approval from the Foundation Board of Governors to hire the first Executive Director to oversee full operation of ATI, the for-profit corporation responsible for the oversight of the Advanced Technology Park. Teresa McKnight, a 20+ year veteran of university-related research parks, consultant, and member of the Association of University Research Parks Board of Directors was hired to fill this position. McKnight was hired to push forward the redevelopment and expansion of the Advanced Technology Park, now referred to as the Montana State University Innovation Campus. In July of 2012, the MSU Innovation Campus received 501(c)(3) non-profit exemption status. 436 What is a Technology Park? A Technology Park (also referred to as a Science or Research Park) is a physical place that contains contiguous acreage managed by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based research institutions. Technology Parks stimulate and manage the flow of knowledge and technology amongst universities, R&D institutions, companies and markets. It facilitates the creation and growth of innovation-based companies through incubation and spin-off processes: and provides other value-added services together with high quality space and facilities. Technology Parks create an environment that fosters collaboration and innovation and promotes development, transfer and commercialization of technology by providing a location in which researchers and companies operate in close proximity. Technology Parks have emerged as strong sources of entrepreneurship, talent, and economic competitiveness for regions, states, and nations. They have become a key element in the infrastructure supporting the growth of today's knowledge economy. Research Park Concept (information provided by Association of University Research Parks (AURP)): • Research Partners • Flow of Talent • Exchange of Ideas • Ac:cess to Labs and Specialized Equipment Growth of Existing Companies Creation of New Companies Commercialization of Intellectual Property Generation of Jobs and Income 437 Typical Tech (Science and Research) Park Size • 114 acres • 6 buildings • 314,400 sq. ft. of space, 95% occupied • Only 30% of total estimated sq. ft. at build-out currently developed • 30,000 sq. ft. of incubator space Location • Suburban community • Less than 500,000 population Governance • Operated by the university or university-affiliated nonprofit Tenants • 72% are for-profit companies • 14% are university facilities • 5% are governmental agencies Employment • Typical park employs 750 • Major industry sectors: IT, drugs and pharmaceuticals, and scientific and engineering service providers Finances • Less than $1million per year operating budget • Revenues primarily from park operations but funds also come from universities and state, local, and federal government • Limited or no profitability; 75% of the parks have no retained earnings or retained earnings of less than 10% Services • Provide a range of business and commercialization assistance services, including: - Help in accessing state and other public programs - Linking to or providing sources of capital - Business planning - Marketing and sales strategy advice -Technology and market assessment Tech Parks Are Succeeding in Incubating and Growing Companies • Nearly 800 firms graduated from park incubators in the past 5 years • About one-quarter of these graduates remain in the park • Only 13 percent failed • Less than 10 percent left the region Note: Information provided by AURP. 438 -8 Montana State University Montana State University has grown into a comprehensive university with 1,014 full-time faculty, 14,153 students and over $110 million in externally sponsored research conducted annually. With its roots in the land-grant tradition of research in the agricultural and engineering sciences. Its research strengths include: • Agricultural biotechnology; • Laser/optical engineering; • Infectious diseases; • Life in extreme environments; • Engineering and applied science, including environmental engineering; • Molecular and cellular biology; and • Math and physical sciences, including surface science, advanced materials and lasers/optical materials. Facilities and Equipment Montana State University has extensive facilities and equipment available on a contractual basis to MSU Innovation Campus tenants. Facilities and equipment include: • Animal Resources Center http:jjwww.montana.edu/wwwarc/ • CBE Microscopy Facility http i 1/cores.montana.edujindex.php?pa e;::microscQgy • Department of Chemistry & Biochemistry Facilities/Instrumentation btt:p://www.chemjstry.montana.edu/fa,ciljtjes/ • Imaging and Chemical Analysis Laboratory (ICAL) http://www.pbysjcs.montana.edu licaljhome lin x.asp • Magnetic Resonance Laboratory http://www.coe.montana.edtt/mrm/ • Plant Growth Center btt,p:j/ai.rnontana,edu/plantgrowth/ • Spatial Sciences Center http: /fssc.montana.edu I • Subzero Science and Engineering Research Facility http:/ /www.coe.montana.edu /ce/subzerQ/ • Transportation and ITS Laboratory http://www.coe.montana.edu /cejresearcb labs.html • Research Core Facilities http://cores.montana.edu • Departmental/Center-based Research Resources http://cores.montana.edufindex.php?page=departroental-center-b sed Business Assistance Montana State University has several other assets important to small businesses such as: 439 -9 • The Montana Manufacturing Extension Center (MMEC) for manufacturing assistance and prototype development (companies must meet eligibility requirements to receive assistance; • A Tech Link Center to find NASA and Department of Defense (DoD) technologies that private companies can commercialize; and • Small Business Institute for student assistance to small businesses. • Additional assistance is provided on a case by case basis through the MSU Innovation Campus in partnership with Montana State University. Why a Technology Park Was Constructed at the Current Site Since its founding, Bozeman has been an entrepreneurial city led by visionaries. Based on a recent report published by the Kauffman Foundation, the report highlights the rate of entrepreneurial activity in Montana reaching its highest level in at least 15 years in 2010, and Montana ranks as the nation's second most entrepreneurial state. The Kauffman Foundation calculated Montana's entrepreneurship index at .47 percent, which means that Montana has 470 entrepreneurs per 100,000 in population. That compares to a national rate of .34 percent. A technology park- or in this case the MSU Innovation Campus- provides ''the place" for university, local, regional in-state and out-of-state entrepreneurs to further and enhance their ideas, research and technology. Bozeman is a "hot spot' for entrepreneurs, and with the growth of Bozeman's innovative businesses in industries such as software development and support, photonics, lasers, photovoltaics, pharmaceutical, and bio-tech, as well as MSU's increase in research, the MSU Innovation Campus is well-suited for entrepreneurs and the transfer of technology to merge together in one physical location. Executed correctly, technology parks provide high-impact economic effects on communities, regions, and states in which they are developed. Several factors were weighed in developing the MSU Innovation Campus: 1) Public/Private partnerships between business, industry, government and MSU 2) Internships, assistantships, part-time and full-time opportunities for MSU students 3) High-tech/high-paying jobs 4) Global competitiveness for Bozeman, Gallatin County, and the State of Montana 5) Economic benefits for the community The MSU Innovation Campus offers high-tech employment opportunities and provides a convergence for economic activity giving hope for an increased standard of living in Bozeman and the Gallatin County. The MSU Innovation Campus provides the physical location, buildings, services and amenities for people who build, operate, study, research, develop, produce, and enhance new discoveries. The MSU Innovation Campus not only provides the place for highly skilled, high- paying jobs, but the Innovation Campus also creates high skilled, high-paying jobs 440 -10 that spur employment even beyond the research park itself. According to a study by Battelle, a nonprofit technology development and laboratory management company, under the auspices of the Association of the University Research Parks (AURP), each tech park creates direct jobs across select industries and geographies, which in turn creates 1.5 additional ("indirect") jobs in the surrounding economy. What's more, while many of the direct employment opportunities at a tech park would likely be knowledge-based, high skilled jobs, many others would likely require basic skills. As well, many quality jobs would likely be created outside the park to support both tenant companies and their employees. The additional impact is dramatic. Global Competitiveness Recognizing that a capacity to innovate and commercialize new high-technology products is increasingly a part of the international competition for economic leadership. Governments around the world are taking active steps to strengthen their national innovation systems. These steps underscore the belief that the rising costs and risks associated with new potentially high-pay-off technologies, and the growing global distribution of technical expertise, require national R&D programs to support new and existing high-technology firms within their borders. They also reflect the belief that shared facilities, coupled with geographical proximity next to a research university, can facilitate the transition of ideas from universities and laboratories to private markets. Expansion of the MSU Innovation Campus would enhance Bozeman's position in a global economy where cities increasingly compete for emerging tech businesses and associated talent National governments have identified technology parks as one way to compete for companies and jobs, and consequently are investing heavily in tech parks- big and small. With a leading academic research institution located in Bozeman, established and growing tech clusters in software development and support, photonics, lasers, photovoltaics, pharmaceuticals, and bio-tech, as well as growing a diversified economic base, Bozeman is already in this race. Expanding a best-in-class R&D campus- the MSU Innovation Campus will provide a new focus for the collaboration and network economics that make for success in this environment. 441 The MSU Innovation Campus Property (Current Site) The existing site of the MSU Innovation Campus is Located on approximately 25 acres in close proximity to Montana State University. It is bordered by 19th Street to the east, College Street to the north, Garfield Street to the south, and 26th Street to the west. Currently, there are 15 buildings containing more than 200,000 square feet of office, dry and wet lab space (current 25-acre site highlighted in blue below). To the west of the current site lies approximately 45 acres of land (areas highlighted in yellow above) owned by Advanced Technology Inc. to support the expansion of the MSU Innovation Campus. The current site provides infrastructure including roadways (Technology Boulevard and Research Drive), curb, gutter, sidewalks, walking and biking trails, electricity, natural gas, sewer and water, telephone, copper and fiber to the existing 25 developed acres. Additional infrastructure will be installed to expand the MSU Innovation Campus to the west on approximately 45 acres of land. Development Economics Rents, royalties, taxes and appreciation in land value are commonly used to recapture initial site acquisition and development costs. With development costs for the MSU -11 442 Innovation Campus, careful consideration has been given to the uses and users that will be attracted, and the resources and infrastructure that justify at and above market rents. Technology companies are often such tenants. They benefit from the collaborative opportunities provided by a concentration and clustering of similar businesses. These companies also generally require specialized facilities such as reinforced floors and high ceilings, specialized electrical supply, and elaborate ventilation and cooling systems. Such facilities, though expensive to create, are able to command premium rents. Market Opportunity and Proximity Advantage Like most other successful tech park locations, the site of the MSU Innovation Campus benefits from its proximity to a renowned research university- Montana State University- and easy access to other institutions such as Gallatin College, University of Montana, and Montana Tech. Furthermore, Bozeman is experiencing growth in technology start-ups such as LigoCyte, Right Now Technologies (recently acquired by Oracle), Bacterin, Bridger Photonics, and many others. The city is already home to high-tech concentrations in industries such as bio-tech, pharmaceutical, photonics, photovoltaics, life sciences and information technologies. In addition, the region's leadership in science and research has been helpful in attracting a diverse base of corporate R&D labs to the Bozeman area. Proximity to other tech companies and other labs offers potential opportunities for collaboration, commercialization, spin-offs and growth of new and existing technologies. Another important distinction of the MSU Innovation Campus site is its proximity to high- bandwidth fiber lines intersecting 3 major providers in the area (Sprint, Century Link (formerly known as Qwest) and Montana Opticom. Even at the speed of light, distance matters. As with the internet, cloud computing and data-intensive applications have become even more central to the daily lives of companies and individuals. The central location of the MSU Innovation Campus provides an important advantage and connectivity to a major IT gateway, as well as a newly constructed data center located at Four Corners (5 miles from the Innovation Campus). New companies creating information technology products and services, and seeking to be close to large-scale server and bandwidth infrastructure, will find the MSU Innovation Campus site has the ability to give them the edge they need to succeed in the global economy. 443 Montana State University Innovation Campus - 1986 to Current Day * In 19861 Montana State University requests Montana State University Foundation develop and manage the Advanced Technology Park (ATP). * In 1987, Construction begins on first building- the Napper Technology Building. * Between the period of 1992 and 2003 (11-years) - 12 additional buildings were constructed on the Advanced Technology Park. * In 2006, 50 businesses were located in the Advanced Technology Park employing more than 400 people, of which approximately 42% were MSU graduates. Today, there are more than 35 businesses located in the Advanced Technology Park employing over 250 employees with 45% being MSU graduates. * More than two dozen start-up companies were established in the Advanced Technology Park. * Currently, there are 68 MSU undergraduate and graduate students employed at the Advanced Technology Park. * In addition, we have companies collaborating together within the research park, as well as collaborating with MSU Faculty, Researchers and Students. -13- 444 Task Force and Onsite Visit of AURP Professionals In 2010, the Advanced Technology Inc. Board of Directors formed a Task Force to assess the operations of the Advanced Technology Park and determine the future needs of the Advanced Technology Park on the current 25-acre site. In addition, the Advanced Technology Inc. Board of Directors held an on-site forum in December of 2010, which several AURP Professionals provided presentations in order for the Board of Directors, local business leaders, city, county and state leadership to better understand the necessary steps and strategic planning required to expand the MSU Innovation Campus at the current site. The conclusion derived by the Task Force, AURP Professionals, University officials, as well as local and state leadership, was the MSU Innovation Campus is well positioned to expand the tech park in its current location with a new vision of creating a '21st Century Research Park'. All parties understand the decision to push expansion efforts forward would surely be challenging, requiring sound planning, visionary champions, skilled leadership and most importantly, collaboration between the public (City, County, and State), Montana State University Foundation, Montana State University, corporations, civic and business leaders. In addition, all parties understood one important factor would be patience. Leadership concluded expansion of the tech park at this site has a potential to transform not just the city, but also the county, entire region, and State of Montana. Objectives for Expanding the MSU Innovation Campus Site Building on Bozeman's reputation as a high-tech community, a hotbed for entrepreneurs and an emerging technology hub, expansion of the MSU Innovation Campus is to achieve several goals for Bozeman, Gallatin County, the region, and the State of Montana: 1. Create more high-tech jobs that require a wide range of research and technical skills, as well as education levels. 2. Attract more established companies, and foster creation of new companies in emerging business sectors, as well as retain and build on existing sectors. 3. Attract more individual and institutional investors to support these companies. 4. Foster more economic development opportunities. 5. Generate a positive impact (direct and indirect) on the University, City, County, Region and State. Planning For the Future and Enhancing Economic Benefits Business and industry make a positive contribution to the fiscal health of a community both by creating jobs for the residents and by contributing local tax revenues that exceed the cost of providing public services to such development. 445 -15 In order to avoid excessive reliance on a single sector of the economy, a focus on attracting high-tech R&D activities will increase well-paying job opportunities for the City and Gallatin County's highly qualified labor force and MSU graduates. Creating high-tech jobs will make it easier for people to both live and work in the City and Gallatin County. In this regard, the mixed-use development concept with office, lab, and light manufacturing is an important tool that has great potential in Bozeman. The physical and functional integration of a single compact, comprehensively planned development creates opportunities for people to live, work, and expand opportunities that are close to their neighborhoods with minimal travel by car, bus, or bicycle. Clearly, the competition for high -wage businesses in Montana will be keen. Moreover, in today's global marketplace, Bozeman must realize that competition for economic development is not just local or even statewide: rather, it is national and worldwide. New Mission and Vision for the Montana State University Innovation Campus The Mission of the Montana State University Innovation Campus is: • To promote economic development and support partnerships between regional, national, and international high tech-based businesses and the research community of Montana State, the region, and the State of Montana. • To create a world-class research park to promote academic and industry collaboration to advance research and scientific discoveries with Montana State University Faculty and Students that will maximize the academic talent and regional resources of Montana State University, the region, and the State of Montana. • To promote learning and collaboration in support of scientific research, new discoveries, and inventions to further the commercialization of Montana State University’s intellectual assets and technology transfer. • To provide state-of-the-art facilities, programs, services, and amenities to support the growth and success of technology-based businesses. • To provide ‘the place'' to link academic, private, and governmental researchers and scientists to advance new discoveries in support of the Citizens within the State of Montana, the nation, and the world. The Vision of the Montana State University Innovation Campus is: To be recognized as the 'the place' that provides a unique community to connect people and support public private partnerships to stimulate new ideas, push forward the advancement of research and science, and produce new discoveries and technologies that will transform the world. 446 -16 Core Values The Montana State University Innovation Campus will pursue its vision within an environment that fosters teamwork, innovation, an entrepreneurial spirit, and the understanding that knowledge generates economic growth and enhances the quality of life. The MSU Innovation Campus is committed to: People Human talent is the primary resource and fundamental contribution to society. The Montana State University Innovation Campus is committed to providing facilities, resources, programs, support, and services to create opportunities for individuals to realize their full potential to push forward new discoveries and technologies in advancing research and science. Synergy Partnerships and collaboration is the powerhouse for research to move forward and push science to new heights. The Montana State University Innovation Campus is the epicenter to bring academic, private, and governmental researchers and scientists together in one physical location to promote academic and industry collaboration and further the commercialization of Montana State University's intellectual assets and technology transfer. Advancement The highest levels of performance are measured against regional, national and global standards and understanding knowledge generates economic growth and new discoveries enhance the quality of life and transform the world. The Innovation Campus will continue to provide state-of the-facilities and provide the maximum level of services, amenities, and support in order for knowledge and science to advance and collaboration efforts to succeed. Build a healthy and diverse high-tech economic base that provides high-paying jobs and generates revenue to pay for service needs without degrading the natural resources or the overall quality of life. 447 ·- e t'CS (,.) 0= 4-1 -= 448 Montana State University Innovation Campus Infrastructure Cost Estimate 42-Acre Expansion Access Boulevard description A 720-foot long street to be located in an 80-foot right-of-way (minimum width), which would have two one-way, north-south streets separated by a 16-foot wide landscaped median. Each segment would h ave a 6-foot wide sidewalk on the outside, a 5-foot wide grassed boulevard with street trees, 5-foot wide bike lane, 11-·wide driving land and curb and gutter each side. Total road width is 16-feet paved \vidth and 20-feet back of curb to back of curb *curbs are 2-feet \'l'ide). On-street parking is not proposed. Pedestria n crossing and bulbs are anticipated at intersections and at two mid-block locations. Total length is estimated to be 720-feet (times two streets) with a paved tickness of 4-inches. Access Boulevard Cost Estimate: Paving (4): 0.4·0 tonsjft x 720' X 2 X $60/ton 34,600 Curbs (4)i $12/linear footx 720' x 4 34600 Sidewalks (2}: $3.60/sfx 6' x 720' x 2 31,100 Subgrade ex.i 2' x 22' x 720'/27 x 2 x $3.75/cy 8,800 Geotech fabrici 22' x 720' x 2/9 x $1.50/sy 5,300 Pit run gravel (18"):1.5' x 22' x 720' x 2/27 x $15/cy 26,400 Crushed gravel base (6''):0.5' x 22' x 720' x 2/27 x $20/cy 11,700 Left turn lanes, 2 at 10' x 70' x $3.75/s.f. 5,000 Bozeman standard street lights, 4 at $4,800 ea. 19,200 Turf landscaping: (5' + 16' + 5') x 720' x 0.30/sf 5,600 Irrigation wells, 2 at $5,000 each 10,000 Boulevard trees (deciduous, 50-feet apart) 720 x 4/50 x $180 ea. 10,100 Total cost -18- $202,400 449 Technology Bo ulevard description: To be located in a 60-foot-right-of-way, two 12-wide travel lanes, 5-foot bike lanes on each side, no on-street parking. curb and gutter each side with 6-foot wide sidewalks and grassed boulevards each side. Total paved width is 34-feetand totaJ street\vidth is 38-feet back of curb to back of curb. Total street length estimated to 1,750-feet •vith the same paving and base section as above. Technology Boulevard Cost Estimate: Paving (4"): 0.85 tons/ftx 1,750' x $60/t:on 89,300 Curbs (2):$12/linear foot x 1,750 x 2 42,000 Sidewalks (2):$3,60/sfx 6'x 1,750 x 2 75,600 Subgrade ex.: 2' x 40' x 1,750'/27 x $3.75/cy 19,500 Geotech fabric: 40' x 1,750'/9 x $1.50/sy 11,700 Pit run gravel (18''):1.5' x 40' x 1,750'/27 x $15/cy 58,400 Crushed gravel base (6''):0.5' x 40' x 1,750'/27 x $20/cy 25,900 3' x 5' RCP Culverts (2) 80 lf. x 2 x $140/l.f. 22,400 Bozeman standard street lights, 8 at $4,800 ea. 38,400 Irrigation wells, 2 at $5,000 each 10,000 Tu rf la ndsca ping: (6' + 6') x 1,750' x $0.30/sf 6,300 Boulevard trees [deciduous, 50-feet a part) 1,750 x 2/50 x $180 ea. 12,600 Total Street Costs: $ 412,100 450 Sewer. Water Line . Trail and Storm Drain Costs: 720 l.f. sewer along access road at $50/U. 36,000 1,750 IJ. sewer along Techno logy Blvd. at $50/l.f. 87,500 Sewer tie to College Street, 620' x $50/l.f. 31,000 720 l.f. water along access road at $50/l.f 36,000 1,750 l.f. water along Technology Blvd. at $50/l.f. 87,500 Water tie to College Street,. 620' x. $50/Lf. 31,000 Trail along wetland corridor, 1,400 l.f. at $6/l.f. 8,400 Storm drain inlets and detention piping: 6 x 50 l.f.ea. X $60/H. 18,000 Service lin es a nd oth.er system appur tenances, 15% of line total 50,300 Total Cost: Dry Utilitv Costs. Backbone along Street Corrido rs: (Note: Dry utility costs are difficult to pin down withou t more specific development plans. Three phase power and large natural gas lines can add up,Nards of$30/ l.f., fo r each utility,. if required) Single phase electr.ical and natural gas, 2,470 Lf. at $30/l.f. Telephone and Cable TV, traditionaJ se rvice levels, 2,470 l.f. at$15/lf. Fiber Optic and Enhanced Communication, 2,470 lJ. at $60/l.f. Total Cost: Total Cost for All Listed Categories (noted above): Access Boulevard Technology Boulevard Sewer, Water, Storm, Trail Dry Utilities Estimated Grand Total 74,100 37,100 148,200 202,400 412,100 385,700 259_400 $385,700.0 $ 259,400 $1,259,600 -20- 451 Engi neer j ng Costs for Design and Con stru rnon Su nervision· 15% to the public infrastructure cost (not pti vate, dry utilities) Contingency Fee (10%) Costs for Subdivision, Zoning and Other Entitlement Fees City of Bozeman Development Impact Fees Demolition of Old Farm Buildings 19 7,580 109,560 50,000 150,000 150,000 Estimated Total (Grand TotaJ +Engineering Costs, Etc.) -21- Estimated Cost: 657,140 $ 1,974,340 452 22 Implementation Strategies 1. Develop the MSU Innovation Campus with primary emphasis on improving vehicular access innovative building design both interior and exterior use of land, conservative sewer, water, and storm water management, as well as a redundant fiber backbone and state-of-the-art telecommunication facilities. 2. Assist start-up and existing businesses with retention and/or expansion. 3. Continue to require innovative landscape design and to the extent practical, the preservation of existing trees and vegetation. 4. Provide opportunities for the mixing and integration of different types of uses -Both business and light manufacturing under a well-designed master plan. 5. Amend the Zoning Ordinance for high-tech and mixed-use development that allows the integration of different types of activities with businesses within a pedestrian- oriented development under a coherent overall master plan 6. Promote use and development of blighted properties in highly visible locations by working with land owners purchasing properties, demolishing existing structures, and improving the sites. 7. Actively work with regional entities Montana State University and Gallatin College to develop and promote regional strategies and plans that will benefit the economic well- being of Montana State University, City of Bozeman and Gallatin County. 8. Foster mutual communication and cooperation with City and County government, university, business, surrounding communities, and the State of Montana. 9. Public improvements for the good of the community. 10. Transform and expand the site into a world-class technology park to elevate the MSU Innovation Campus into a globally competitive high-tech community while at the same time contributing to the growth and economic prosperity of Montana State University, the city of Bozeman, County of Gallatin, and State of Montana. MSU Innovation Campus Target Markets Technology Companies • Information Technology, Data Centers, other Software, Hardware, and Data Intense Businesses • Life Sciences and Health Care • Pharmaceutical • Bio-fuels and Alternative Energy • Bio-films • Nanotechnology • Photonics, Lasers, Optical and Photovoltaics • Agricultural biotechnology; 453 23 • Infectious diseases; • Ecosystems, Surface Science and Extreme Environments • Engineering, Applied Science and Environmental Engineering; • Molecular and Cellular Biology • Service- Web design, Graphic design, Internet, Legal, Accounting and Human Resources Positioning the MSU Innovation Camp • Recognized as the "Hot-Spot" and best location for companies to locate and the most efficient and effective place to innovate • Recognized as the "Hub" for talented people, cutting edge companies, and R&D Community bustling with new innovation • Recognized for its '1cutting-edge" infrastructure • Recognized as a "vibrant'' place to attract a dynamic 24/7 population looking to work1 live, learn and play • A "Hot" location for all generations of people to live, to work, and to innovate Guiding Principles for Expansion of the MSU Innovation Campus 1. Expansion of the MSU Innovation Campus will strive to: a. Strengthen Bozeman's position as a premier, globally competitive, high-tech place b. Create a world-class showcase for business and entrepreneurship c. Provide job opportunities for neighborhood residents as well as the region as a whole d. Foster continued economic development in the city, the county, the region, and the State 2. Expansion of the MSU Innovation Campus will support public/private partnership that provides a net return to all investors and stakeholders; a. Government (City of Bozeman, County of Gallatin, and State of Montana) b. Montana State University and Gallatin College c. Business (developers and corporate tenants) d. Civic (private foundations, community leaders) 3. Expansion of the MSU Innovation Campus will benefit the welfare of all: a. Investors & Stakeholders i. Montana State University ii. Gallatin College iii. Private Entities 454 24 iv. Government v. The Bozeman and Gallatin Community b. Tenants will be a diversified tenant base of multiple independent tenants: i. R&D Companies (i.e. small, medium, large, and well-established high-tech companies and ancillary businesses to support them) ii. Non-profit research centers iii. Centers of Excellence iv. Light-Manufacturing v. Start-up Companies vi. Service Providers (web-design, graphics, HR, Accounting, Legat etc.) c. Public/Private and Governmental Partnerships 4. Expansion of the MSU Innovation Campus will support community: a. Embrace the rich cultural history of the community b. A multi-use development, including office, laboratories, data center(s), light- manufacturing facilities, and potential retail, hotel, conference center, and restaurants c. Open space provided for both MSU Innovation Campus companies and surrounding neighbors d. Streets within the tech park should connect with surrounding city streets e. Be the "high-tech" landmark in the City along with retail, etc. f. Residential development must include affordable housing in the mix 5. Expansion of the MSU Innovation Campus will be developed as a city of innovation and leadership a. Daring in its aspirations b. Confident in its design c. Vibrant and compelling as a place to work, live, learn and play d. Provide synergy among its companies and the surrounding community e. Showcase cutting-edge green tech ("sustainability to design'') as a statement of possibility, as well as demonstrate economic viability 6. Expansion of the MSU Innovation Campus wiJI be a long-term initiative (15+ years) a. It will likely take at least a decade or two to fully develop the property b. The economics will be both challenging and fruitful, due to the cost of necessary infrastructure and investment made to construct state-of-the-art facilities c. The competition among cities and nations for companies and new technologies will continue to be fierce d. Though the vision will evolve over time, the past and current vision will sustain the development 455 25 7. Expansion of the MSU Innovation Campus will be deliberative, open and transparent a. The ultimate development will be led by the MSU Innovation Campus and the MSU Alumni Foundation as determined best to achieve the desired outcome and leadership role throughout its development Benefits - Direct and Indirect: 1. Benefits to Montana State University: o Increase in research grants and sponsored research opportunities o Opportunities to work with private sector to solve "Real World'' problems o Collaborate with industry experts o State-of-the-art facilities- unique architecture both interior and exterior o Opportunities for faculty consulting, recruiting and retention o Internship and career opportunities for students 2. Benefits to Bozeman, Gallatin County; Region and State of Montana: a. Direct Benefits o Provide a mix of quality jobs (functions and skills) • Working in the park (permanent jobs, with opportunity for growth and career development) o Provide new amenities and infrastructure (amenities improved street grid, utili ties, etc.) • Transportation • Linkage to Loop central business district • Linkage to Montana State University and Gallatin College • Linkage to restaurants and retail • Linkage to surrounding neighborhoods and housing • Attract commercial development • Retail • Dining • Entertainment • Hotel/Conference Center • Parking • Attract new residents to the area b. Indirect benefits o There will be a "ripple effect" on the community from the development of the MSU Innovation Campus- development will enhance the caliber, size and reach of those ripples o Area jobs servicing employees and companies located on the MSU Innovation Campus 456 26 o "Critical Mass" and cluster of high-tech R&D companies, services and amenities in and around the MSU Innovation Campus a Support for schools through collaboration with MSU Innovation Campus companies- increasing entrepreneurial K-12 activities and STEM-focused (science, technology, engi neering and math) schools that could provide alternative educational options 3. Benefits to the City, County and State: a. Solidify Bozeman as a global technology city b. Develop a world-class 21st Century Research Park c. Attract tech companies, established and start-up, to the region, thereby creating jobs throughout the area d. Create an option for high-growth tech companies to remain, expand and prosper in the city e. Attract additional risk capital (investment and investors) to the region f. Help retain top rated science, technology, and research talent in the region g. Provide a living laboratory for cutting-edge sustainability development h. Create an environment for technology companies to seed, take root and make a hom e in Bozeman, the region, and the state 1. Tap into the commercial paten tial of private and federal dollars invested in research Factors Critical To Success of the Montana State University Innovation Campus The first factor necessary for the successful development of the MSU Innovation Campus is capital. On the other hand, capital is necessary, but not sufficient for success. Of equal importance is a long-term perspective and ample patience. Tech parks take years to progress from concept to critical mass. Some of the most notable parks took a decade, if not decades, to emerge to success. Often, tech parks that identify and secure one or more anchor tenants can reduce the time to as few as 10 years. In March 2008, the National Research Council convened a conference on best practices among science and technology parks around the world. The symposium identified six best practices: • One or more committed champions. 457 27 o That is, an individual or individuals who possess both the dedication, energy, and to a significant extent, the power and influence to get a project off the ground and see it through to completion. • Effective leadership with the capabilities and resources to create and nurture networking and collaboration among the residents of the park is critical. o Furthermore, a dynamic, capable leader can attract entrepreneurs, capital investors and other necessary people to the broader network structure of the park. • Funding, both public and private, to support development of the tech park as well as provide risk capital for innovation and commercialization of ideas. o The most successful tech parks generally operate in a rich environment of stable access to venture capital for new companies, as well as private eq uity and debt financing vehicles for more established firms. • Bridging Institutions or other long-term governance mechanism to maintain and continuously develop the tech park's vision. • Soft Infrastructure, which includes the human factors that create and maintain the talent pool necessary to fuel innovation and help companies to grow. o Soft infrastructure includes housing options, educational systems, and lifestyle amenities among others. • Metrics or measures to allow for proper evaluation of the performance and contribution of th e tech park in light of the commitments of investors, governments and the community. Another study prepared by Battelle in 2007 identified several important features and trends in the development of current tech parks. The study notes that research/tech parks have evolved from the early 1960's stand-alone model to a form that is today much more integrated into their communities. These parks tend to be master planned developments with a mix of academic, industrial, commercial and residential structures. Because people work, live and play in these integrated communities, on-site amenities must be provided commensurate with the demands of the park tenants and residents. The Battelle study notes several challenges that must also be addressed, including facilitating relationships - cultural and commercial- between business and universities. As well, it is necessary to address the challenges of commercialization inherent in bringing any new product idea to market. 458 28 Additional Critical Points: • University affiliations. o While virtually every tech park is linked to at least one university, having the collaboration of several institutions significantly increases the likelihood of viability. • Anchor tenants help create the critical mass, and cash flow, necessary to carry a park from concept to reality (and serve as a powerful magnet for start-ups and talent). • Industry clusters attract tenants; and new companies spin off from existing firms. o Clusters become virtuous circles, the more pronounced they become the strong they attract other like businesses. o Early incentives to attract anchor tenants can build important momentum in establishing clusters. • Hard infrastructure o Data bandwidth o Electrical capacity and redundancy o Lab space o Office space o Light-manufacturing space o Transportation access (including bus, car and bicycle) o Security o Dining (convenience and better quality establishments) o Hotel/Conference facilities • Price competitiveness o Taxes/Incentives o Rents o Labor o Indirect costs • Flexibility o Building uses o Floor plans o Lease options o Flex construction 459 29 • Proximity to o Affordable and attractive housing o Transportation options o Restaurants. Night life, Culture o Quality-of-life activities • Round the clock life style opportunities o 24/7 accessibility o Security In addition. Several Observations • It is important to note that virtually every Tech Park successful or not, has received significant investment of public funds. • It will be difficult to achieve qualitative success and probably more difficult to achieve quantitative success (i.e., return on financial investment). In fact, "making the numbers work" may require support from civic-minded philanthropies/philanthropists. • While it is most likely that data intensive companies will be attracted to the technology park because of the proximity to the fiber lines, it will be important to also target more people-intensive industries and business to create adequate demand to sustain the ancillary amenities that bring a tech park to life. • While it is not clear which came first - park or culture- most thriving tech parks are located in communities that celebrate entrepreneurship and risk taking. • The most famously successful parks achieved their success over a long period of time. Consequently, it is worth again emphasizing the importance of governance structures bridging institutions, and perhaps, most important. patience. Sustainability Certain types of building are disproportionate users of resources for example data centers, clean rooms and laboratories. ln other words, the types of buildings that you would expect to find in a technology park. According to Laboratories for the 21st Century (Lab21®). a laboratory can demand 3- 8 times the energy of a traditional office building. A laboratory hood requires as much energy as three homes. Design matters. As energy consumption and pollution become increasingly important in evaluating new development designed-in sustainability factors will play a role in project selection. It is reasonable to believe that the "sustainability quotient" of a facility can become a competitive advantage. Designed-in sustainability can increase value of a building, decrease its operating costs, and increase tenant appeal. 460 Practices and design that will lead to higher building values for buildings designed to achieve efficiencies. All achieved with little added construction cost (1% for "silver" LEED certification, 2-3% more for gold" or "platinum"). The MSU Innovation Campus site offers ideal characteristics to create the single best example of sustainable planning design and building in the world. The City of Bozeman is positioned to respond to and lead (sustainable design) trends and, in so doing, become a capital of Green Innovation. Green building and practical Green economic development. Bozeman can become to sustainability what Silicon Valley is to Information Technology. Conclusion MSU Innovation Campus' size and location factor into producing a world-class tech park that will create many jobs and enhance Bozeman's global competitiveness as a high- technology center and "Hot-Spot11 for entrepreneurs to locate and/or expand. The MSU Innovation Campus will attract high-growth high-tech value companies, capable of substantial investment in facilities and people. The MSU Innovation Campus site benefits from close proximity to Montana State University and Gallatin Collage, and many of the region's major research and high-tech companies; it is also adjacent, and connected to, high-bandwidth fiber lines, a critical asset to companies that place a premium on data speed. In support of creating a Technology district, companies will be highly engaged in technology based operations within Montana through the employment of knowledge or labor add value to a product, process, or export service that will create new wealth and sales for which at least 50% of the sales of the business and collaboration efforts will occur outside of Montana, thus supporting the mission for partnerships and economic growth on national and global levels. Supporting the idea of expanding and developing a world-class technology park- the MSU Innovation Campus- is worthy of serious consideration. Such an endeavor will be complex, requiring sound planning, visionary champions, skilled leadership, and most importantly, collaboration between the public (City, County and State) and the private (universities, corporations, civic and neighborhood leaders) sectors. We believe the MSU Innovation Campus not only has the potential to transform the city, but also the entire region, and the State of Montana. 30 461