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HomeMy WebLinkAboutCity URD Budgets FY27-28City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Urban Renewal District Work Plans and Budgets City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Tax Increment Financing •What TIF is: •A tool to fund public infrastructure that encourages new private investment. •Incremental tax revenue above a set base. •A tool for eliminating statutory conditions of blight (infrastructure deficiency). •Where are TIF Districts created? •In areas where property values are stagnating or declining and where statutory conditions of blight are present. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Tax Increment Financing City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 What TIF is Not •A new or additional tax •Tax expenditures unauthorized by local elected officials •A handout for developers or corporate welfare •A threat to school funding. •A tool that lasts forever. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Who Decides What with TIF •State Authorized – laws governing TIF are found in Montana’s Urban Renewal Law, 7-15-4201 et. Seq. MCA •Locally Driven – district boundaries, goals, projects and annual work plans and budgets are reviewed by the TIF Advisory Board and decided by the City Commission. How Tax Increment Funds canbe Spent Land Acquisition Acquisition, construction, and improvement of public improvements or infrastructure, publicly owned buildings, and any public improvement Authorized by Title 7, chapter 12, parts 41-45; Title 7, chapter 13 parts 42 and 43; and Title 7, chapter 14, part 47 Demolition Administrative Costs Costs incurred in connection with the redevelopment activities allowed under 7-15-4233; Needs Analysis Workforce Housing City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 2012 South Bozeman Technology District Plan 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. – Montana State University Innovation Campus, South Bozeman Technology District Plan, 2012 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 SBTD Projects and Appropriations Highlighted Projects FY 27 FY 28 Big Sky ICINF, LLC Development Agreement Reimbursement (Bond Issuance in Q2 2026)$3,599,200 Contracted Services $82,000 $10,000 Debt Service $276,900 Total Budget Request FY 27 FY 28 $3,681,200 $286,900 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board •The TIF Board moved to “recommend that the City Commission approve the Pole Yard Urban Renewal FY 2027 Work Plan and Budget and FY 2028 Work Plan and Budget as submitted.” The motion carried 6-0. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 SBTD Suggested Main Motion I move to approve the Fiscal Year 2027 Work Plan and Budget and Fiscal Year 2028 Work Plan and Budget for the South Bozeman Technology District as submitted. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 2017 North Park Urban Renewal Plan 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. – North Park Urban Renewal Plan, 2017 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 North Park Projects and Appropriations Highlighted Projects FY 27 FY 28 Public Infrastructure and Development Agreements $150,000 $150,000 Total Budget Request FY 27 FY 28 $150,000 $150,000 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board •The TIF Board voted to “recommend that the City Commission approve the North Park Urban Renewal FY 2027 Work Plan and Budget, FY 2028 Work Plan and Budget as submitted. This recommendation acknowledges that when the board recommends budgeting for development agreements already approved by the City Commission, approval of an appropriation reflects a need to pay existing obligations, not necessarily approval or disapproval of the projects themselves by this board.” The motion carried 6-0. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 NP URD Suggested Main Motion I move to approve the Fiscal Year 2027 Work Plan and Budget and Fiscal Year 2028 Work Plan and Budget for the North Park Urban Renewal District as submitted. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 SBTD Projects and Appropriations Suggested subordinate motion: “I move to substitute the table in staff presentation for the one in packet for the South Bozeman Technology District Work Plan and Budget to properly reflect the cost of bonding in Fiscal Year 2027.” City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 2017 Pole Yard Urban Renewal 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. – Pole Yard Urban Renewal Plan, 2017 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Pole Yard Projects and Appropriations Highlighted Projects FY 27 FY 28 Contracted and Professional Services $150,000 $150,000 Quiet Zone Improvements; Other/General $2,650,200 $572,900 Total Budget Request FY 27 FY 28 $2,835,000 $759,600 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board •The TIF Board voted to “recommend that the City Commission approve the Pole Yard Urban Renewal FY 2027 Work Plan and Budget and FY 2028 Work Plan and Budget as submitted. This recommendation acknowledges that when the board recommends budgeting for development agreements already approved by the City Commission, approval of an appropriation reflects a need to pay existing obligations, not necessarily approval or disapproval of the projects themselves by this board.” The motion carried 6-0. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Pole Yard URD Suggested Main Motion I move to “approve the Fiscal Year 2027 Work Plan and Budget and Fiscal Year 2028 Work Plan and Budget for the Pole Yard Urban Renewal District as submitted.” City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 2005 Northeast Urban Renewal Plan The Plan envisions a mixed-use neighborhood that is user-friendly, safe, secure, and healthy. While this plan envisions a District with diversity of housing, businesses, and amenities, it intends to maintain the unique ambiance and historic character of the District. – Northeast Urban Renewal Plan, 2005 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Northeast Projects and Appropriations Projects FY 27 FY 28 Bond Repayment Costs $213,000 $213,000 Quiet Zone Construction $770,000 Wallace Ave Easement $30,000 Tree Program $20,000 $100,000 Church Street ROW Improvements $80,000 $500,000 Bozeman Yards Bonding Costs $100,000 Wallace Works Reimbursement $390,900 Other Contracted Services $50,500 Total Budget Request FY 27 FY 28 $314,000 $2,530,400 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board •The TIF Board voted to expand the scope of the improvement projects in the Church St. right-of-way to address neighborhood needs. The motion carried 6-0. •The TIF Board recommended that the City Commission approve the FY 2027 Work Plan and Budget and FY 2028 Work Plan and Budget as submitted. This recommendation acknowledges that when the board recommends budgeting for development agreements already approved by the City Commission, approval of an appropriation reflects a need to pay existing obligations, not necessarily approval or disapproval of the projects themselves by this board. The motion carried 6-0. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 NE URD Suggested Main Motion I move to approve the Fiscal Year 2027 Work Plan and Budget and Fiscal Year 2028 Work Plan and Budget for the Northeast Urban Renewal District as submitted. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 2017 Midtown Action Plan 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. Midtown Action Plan, 2017 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Midtown Projects and Appropriations Highlighted Projects FY 27 FY 28 Series 2020 Bond Repayment $409,600 $411,200 Whittier Parking Lot Construction $200,000 - 5th Ave. Pedestrian Scale Lighting $250,900 Aspen Street Intersection Construction $200,000 Parking Garage Design and Due Diligence $889,000 N. 5th Ave Improvements $40,000 $160,000 5th and Main Intersection Improvements $55,000 Mendenhall Sewer 5th to 7th $100,000 $672,000 5th and Mendenhall Lighting Agreement $375,000 Midtown Aspen Development Agreement $3,024,100 Other Programs and Projects $2,500,000 $1,373,800 Total Budget Request FY 27 FY 28 $8,380,200 $2,961,600 City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board •The TIF Board voted (6-0) to “recommend that the City Commission approve the Midtown Urban Renewal District FY 2027 Work Plan and Budget and FY 2028 Work Plan and Budget, as submitted. This recommendation acknowledges that when the board recommends budgeting for development agreements already approved by the City Commission, approval of an appropriation reflects a need to pay existing obligations, not necessarily approval or disapproval of the projects themselves by this board”. The motion carried 6-0. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 TIF Advisory Board Amendment •The TIF Board moved to amend the proposed work plan and budget to create a $2,500,000 Housing Acquisition Loan Fund in Fiscal Year 2027 by eliminating $1,889,800 proposed for “Other” under District Operations (p.7) and reducing funding for Parking Garage Design and Due Diligence by $610,200 in FY 2027. •Motion modified and passed (6-0): “amend proposed workplan and budget to increase "other" in the 2027 workplan by reducing the parking garage design and due diligence and adding it to “other.” •TIF Board packet for “Other”: We propose allocating the entirety of the expected increment to be responsive to opportunities. It is likely that we will either support developer or city led Infrastructure projects and development agreements. These funds could also be devoted to the design or construction of public infrastructure that serves the District. •Commission packet language: •Provide low-cost direct loans to housing builders to acquire land for affordable housing. Other projects as suggested by the TIF Advisory Board or City Commission. •Suggested hybrid language: •The entirety of the expected increment is allocated to be responsive to opportunities, including support for city led infrastructure projects, neighborhood planning, and development agreements. As a first priority, the Commission asks staff to return with a pilot project to provide short-term, low-cost direct loans to non-profit housing builders to acquire land for affordable housing. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Midtown URD Suggested Main Motion I move to approve the Fiscal Year 2027 Work Plan and Budget and Fiscal Year 2028 Work Plan and Budget for the Midtown Urban Renewal District as submitted. City of Bozeman Fiscal Year 2027-2028 Biennial Budget | May 12, 2026 Suggested Amendment I move to recommend that the Midtown Work Plan and Budget for Fiscal Year 2027 be modified to include the clearer hybrid language suggested by staff.