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HomeMy WebLinkAboutFY27 - Urban Renewal Action Plan - Northeast Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 1 NORTHEAST URBAN RENEWAL FY2026 ANNUAL REPORT FY2027 WORK PLAN AND BUDGET FY2028 WORK PLAN AND BUDGET On November 28, 2005, the Bozeman City Commission finally adopted Ordinance No. 1655 which formally enacted the Northeast Urban Renewal Plan and became effective December 28, 2005. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight] Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the 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 of housing, businesses and amenities, it intends to maintain the unique ambiance and historic character of the District”. Nine principles were developed for the plan. Each of the principles has one or more goals associated with the plan, some of which specifically relate to this work plan while others represent general objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows: GENERAL GOALS:  Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.  Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive.  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.  Harmonize commercial and industrial development with residential quality of life.  New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength 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 of partnership.  Promote sustainable building practices and design within the district.  Procure new land for park and open space.  Improve landscaping in existing public spaces.  Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan.  Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan.  Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas.  Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District. In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1) Parks, Trails and Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 2 Northeast Urban Renewal District (NURB) FY2026 Annual Report (July 1, 2025 to June 30, 2026) Personnel Costs $29,100 Includes salaries and benefits Quiet Zone Engineering $39,300 Additional engineering costs related to final markup, right-of-way acquisition and public bidding. Public Bidding $700 Includes public noticing for future development, public bidding, and neighborhood engagement. Bond Costs $ 213,000 Costs covered under this item include bond repayment ($92,100) and the designated bond reserve ($120,900) for the Series 2017 Northeast Urban Renewal Revenue Bonds. Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 3 Northeast Urban Renewal District (NURB) FY2027 Work Plan (July 1, 2026 to June 30, 2027) Personnel Costs $40,100 Includes salaries and benefits Public Bidding & Insurance $1,300 Includes public noticing for future developments, public bidding, and neighborhood engagement. Bond Costs $213,000 Costs covered under this item include bond repayment ($92,100) and the designated bond reserve ($120,900) for the Series 2017 Northeast Urban Renewal Revenue Bonds. Church St ROW Improvements to Improve Creek Access $80,000 The City has right-of-way on Church Avenue north of Cottonwood Street Currently, the Church Street right-of-way is an unpaved trail. North of the Aspen Street Pedestrian Bridge, an unpaved trail continues to Tamarack Street and beyond until it his Kenyon Noble property. Staff proposes making improvements in the right-of-way to improve pedestrian and creek access and the overall street right-of way. Removing Traffic Calming Device on Wallace $0 (Internal) At a recent meeting of the Northeast Neighborhood Association, NENA members requested removing the traffic calming device on Wallace Avenue between Tamarack Street and Aspen Street as it makes parking difficult in the District. The City Engineering Department has agreed to assist with the removal of the traffic calming device and any signage necessary to improve the street parking. Purchase of Wallace Avenue Easement $30,000 The quiet zone study has identified the improvements required for quiet railroad crossings. It is anticipated that the improvements for the North Wallace Avenue/L Street crossing will include an arm for the pedestrian crossing as well as raised medians on both sides of the railroad tracks to preclude vehicles from driving around down arms. In order to construct the improvements in FY28, the City must purchase an easement on Wallace Avenue from BNSF. Tree Program Design & Implementation $20,000 At a recent meeting of the Northeast Neighborhood Association, NENA members identified a tree program as a neighborhood priority in regard to tax increment funds. The City Forestry Division recommends fully planting any boulevards with “missing” trees. Additionally, funds could be used to enhance the existing boulevard trees with better site conditions to help the existing trees thrive. This would include replacing wood chip mulch for better growing conditions, using permeable pavers to encourage pedestrian traffic away from sensitive trees, and adding smaller pollinator plants in the District. Other Contracted Services $50,500 The district requests a budget for contracted services to be responsive to opportunities related to the design or evaluation of public infrastructure projects and development agreements. Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 4 Northeast Urban Renewal District (NURB) FY2028 Work Plan (July 1, 2027 to June 30, 2028) Personnel Costs $42,900 Includes salaries and benefits Public Bidding & Insurance $1,300 Includes public noticing for future developments, public bidding, and neighborhood engagement. Bond Costs $213,000 Costs covered under this item include bond repayment ($92,100) and the designated bond reserve ($120,900) for the Series 2017 Northeast Urban Renewal Revenue Bonds. Quiet Zone Construction $770,000 The quiet zone study has identified the improvements required for quiet railroad crossings. It is anticipated that the improvements for the North Wallace Avenue/L Street crossing will include an arm for the pedestrian crossing as well as raised medians on both sides of the railroad tracks to preclude vehicles from driving around down arms. Improvements to Griffin Drive, including upgrades at the railroad crossing, were completed in Fiscal Year 2022. Since improvements will be required for all three crossings before a quiet zone can be implemented, it is important to undertake crossing improvements as monies are available. ROW Improvements on Church between Cottonwood & Aspen Construction $500,000 The City has right-of-way on Church Avenue north of Cottonwood Street and south the Aspen Street Bridge. Currently, the Church Street right-of-way is an unpaved trail. North of the Aspen Street Pedestrian Bridge, an unpaved trail continues to Tamarack Street. Staff propose making improvements in the right-of-way to create a natural parklet near Bozeman Creek. Tree Program Implementation $100,000 At a recent meeting of the Northeast Neighborhood Association, NENA members identified a tree program as a neighborhood priority in regard to tax increment funds. The City Forestry Division recommends fully planting any boulevards with “missing” trees. Additionally, funds could be used to enhance the existing boulevard trees with better site conditions to help the existing trees thrive. This would include replacing wood chip mulch for better growing conditions, using permeable pavers to encourage pedestrian traffic away from sensitive trees, and adding smaller pollinator plants in the District. Bozeman Yards Development Bonding Costs $100,000 The Bozeman Yards project involves replacing a 9,000 square foot warehouse with a 100,000 square foot mixed-use building with 39 condos, commercial space, and an underground parking garage. The City Commission approved a development agreement in November of 2024 to reimburse a portion of the significant infrastructure costs adjacent to the site required for redevelopment. The public infrastructure improvements for Bozeman Yards include completing sections of Aspen Street and Front Street, including stormwater, sidewalks, water, sewer, and Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 5 landscaping as well as an expansion of the Northern Pacific Park. The applicant will be reimbursed for costs outlined in the development agreement through bonds issued after certificate of occupancy for the project from revenues generated by the project. Construction began in 2025. Tax revenue generation is expected to begin in FY28. Outside bond counsel and a municipal bond advisor will need to be hired to complete the bond issuance. Wallace Works Reimbursement $390,900 Wallace Works is a mixed-use development on the southwest corner of Wallace Avenue and Tamarack Street. The project includes 42 market rate rental units, 7 affordable at 80% AMI rental units, 16 for-sale units, and 2,488 square feet of ground floor commercial. In order to complete the project, the developer is responsible for upgrading the surrounding infrastructure including the construction of a new sewer line in Aspen Street as well as all perimeter site improvements in the R.O.W. to include landscaping, sidewalk, curb, gutter, and stormwater. The City Commission approved the development agreement in October of 2024. The applicant will be reimbursed for costs outlined in the development agreement when the project begins to pay property taxes. Annual project generated tax increment was estimated at $390,897 in the approved development agreement. The applicant will not be reimbursed any amount over the actual project generated tax increment. Other Contracted Services $533,200 The district requests a budget for contracted services to be responsive to opportunities related to the design or evaluation of public infrastructure projects and development agreements. Northeast Tax Increment Finance Assistance Programs Approved Development Agreements Wildlands Development Agreement (Anticipated expense in FY29 $580,000) The Wildlands project includes expansion of an existing building at the northeast corner of the intersection of East Peach Street and North Wallace Avenue and demolition of improvements on the adjacent lot to provide adequate space for the expansion and relocation of the parking lot. The applicant has requested reimbursement for the public infrastructure improvements required in conjunction with the project. The City Commission concurred in the Board’s recommendation to approve that request once the applicant has completed the projects and paid at least two years of property taxes that equal the amount of the reimbursement. Wallace Works Development Agreement ($2,055,563) This reflects the total anticipated expense. The FY27 and FY28 appropriations represent the first and second annual payments of 100% of the project-generated tax increment. Payments will continue until the full $2,055,563 is repaid to the developer. Wallace Works is a mixed-use development on the southwest corner of Wallace Avenue and Tamarack Street. The project includes 42 market rate rental units, 7 affordable at 80% AMI rental units, 16 for-sale units, and 2,488 square feet of ground floor commercial. In order to complete the project, the developer is responsible for upgrading the surrounding infrastructure including the construction of a new sewer line in Aspen Street as well as all perimeter site improvements in the R.O.W. to include landscaping, sidewalk, curb, gutter, and stormwater. The Northeast Urban Renewal District FY26 Annual Report and Budget FY27-28 6 City Commission approved the development agreement in October of 2024. The applicant will be reimbursed for costs outlined in the development agreement when the project begins to pay property taxes. Reimbursement will continue until the applicant is made whole, roughly 7 years. Construction began in 2025. It is anticipated the project will create increment for the pay-go agreement beginning in FY28. Bozeman Yards Development Agreement (Anticipated expense in FY29 $580,000) The Bozeman Yards project involves replacing a 9,000 square foot warehouse with a 100,000 square foot mixed-use building with 39 condos, commercial space, and an underground parking garage. The City Commission approved a development agreement in November of 2024 to reimburse a portion of the significant infrastructure costs adjacent to the site required for redevelopment. The public infrastructure improvements for Bozeman Yards include completing sections of Aspen Street and Front Street, including stormwater, sidewalks, water, sewer, and landscaping as well as an expansion of the Northern Pacific Park. The applicant will be reimbursed for costs outlined in the development agreement through bonds issued after certificate of occupancy for the project from revenues generated by the project. Construction began in 2025. Tax revenue generation is expected to begin in FY28. Light Conversion USA Development Agreement $450,000 (pending approval) Recognized in FY28’s appropriations, an application for public improvements related to the building of an office and potential coffee shop has been received by the Economic Development Department. The request includes reimbursement for demolition, sidewalk, curb, gutter, alley, CILWR, and water and sewer services. Staff are currently reviewing the application for the Tax Increment Finance Board and City Commission consideration. If an agreement is approved, it will likely be a pay-go agreement in which the project will use project-generated taxes to pay back the total amount. Staff is anticipating roughly $450,000 in requested tax increment finance reimbursement. Northeast Urban Renewal District (NURB) Unscheduled Projects Explore Acquisition & Enhancement of Additional Parkland Economic Development Staff reached out to the Northeast Neighborhood for input on future projects within the District. Several projects were voted on by the neighborhood association at their Fall 2025 meeting. There was a preference for enhanced green space, parks, trees, and highlighting natural amenities within the District. Looking forward, Economic Development staff will continue to seek out projects that explore the acquisition and enhancement of parkland within the District.