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HomeMy WebLinkAbout07-16-26 - Tax Increment Finance Board - Agendas & Packet MaterialsA. Call meeting to order - 12:00 p.m. B. Disclosures C. Changes to the Agenda D. Public Service Announcements E. Approval of Minutes E.1 Approve the April 16, 2026 and May 21, 2026 Tax Increment Finance Board Meeting Minutes(DiTommaso) F. Consent G. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board THE TAX INCREMENT FINANCE ADVISORY BOARD OF BOZEMAN, MONTANA TIF AGENDA Thursday, July 16, 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 David Fine, David.Fine@bozemanmt.gov 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: 978 1280 2476 1 H. Special Presentation I. Action Items J. FYI/Discussion J.1 Updates on Midtown Urban Renewal District Construction Projects (DiTommaso) J.2 Northeast Urban Renewal District Tax Increment Finance District (TIF) Assistance Program Application Update(Fine) K. Adjournment L. This board generally meets the 3rd Thursday of the month from 12:00 to 1:30 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. 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:Jesse DiTommaso, Economic Development Specialist David Fine, Urban Renewal Manager SUBJECT:Approve the April 16, 2026 and May 21, 2026 Tax Increment Finance Board Meeting Minutes MEETING DATE:July 16, 2026 AGENDA ITEM TYPE:Minutes RECOMMENDATION:Approve the April 16, 2026 May 21, 2026 Tax Increment Finance Board Meeting Minutes. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:In accordance with Commission Resolution 5323 and the City of Bozeman's Citizen Advisory Board Manual, all boards must have minutes taken and approved. 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 before submitting to the City Clerk's Office. Please note the video of each meeting are considered the official meeting minutes. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Board. FISCAL EFFECTS:None. Attachments: 061826 TIF Board Minutes.pdf Report compiled on: June 13, 2025 3 Bozeman Tax Increment Finance Board Meeting Minutes, June 18, 2026 Page 1 of 3 THE TAX INCREMENT FINANCE BOARD MEETING OF BOZEMAN, MONTANA MINUTES June 18, 2026 General information about the Tax Increment Finance Board is available in our Laserfiche repository. Present: Marty Matsen, Susan Fraser, Nolan Campbell, Julien Morice Absent: Natalie Van Dusen, Mike Waterman, Zach Brown A) 00:01:43 Call meeting to order - 12:00 p.m. C) 00:02:30 Changes to the Agenda • There no changes to the agenda. D) 00:02:41 Approval of Minutes D.1 00:02:47 Approve the April 16, 2026 and May 21, 2026 Tax Increment Finance Board Meeting Minutes 041626 TIF Board Minutes.pdf 052126 TIF Board Minutes.pdf 00:03:24 Motion to approve Approve the April 16, 2026 May 21, 2026 Tax Increment Finance Board Meeting Minutes. Nolan Campbell: Motion Julien Morice: 2nd 00:03:36 Vote on the Motion to approve Approve the April 16, 2026 May 21, 2026 Tax Increment Finance Board Meeting Minutes. The Motion carried 4 - 0. Approve: Susan L Fraser Julien Morice Nolan Campbell Marty Matsen 4 Bozeman Tax Increment Finance Board Meeting Minutes, June 18, 2026 Page 2 of 3 Disapprove: None E) 00:03:45 Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board • There were no public comments. F) 00:04:06 FYI/Discussion F.1 00:04:27 Work Session: Pole Yard Tax Increment Financing Assistance Program Application PoleYardTIFAssistance v2.pdf PoleYardTIFApplication v2.pdf Pole Yard Urban Renewal Plan adopted 11.25.2020.pdf 00:04:32 Urban Renewal Manager David Fine presented the first draft of the Pole Yard Urban Renewal District Tax Increment Finance Application. 00:33:20 Public Comment 00:33:24 Amy Hoitsma commented on the program description and criteria. 00:40:22 Board discussion and questions. F.2 00:46:50 Midtown Urban Renewal District Strategic Land Acquisition Loan Pilot Program. Midtown TIF Pilot Program 20260615 TIF Board clean.pdf Urban Renewal Manager provided a presentation the draft Midtown TIF Pilot Program. 00:50:25 Questions of staff & discussion 01:00:37 Public Comment 01:00:45 Nathan Stein commented in support of the pilot program. 01:04:38 Emily Talago commented questions around additional details of the pilot. 01:07:55 FYI - David Fine noted the Opportunity Zone 2.0 Application Process. G) 01:09:44 Adjournment H) This board generally meets the 3rd Thursday of the month from 12:00 to 1:30 5 Bozeman Tax Increment Finance Board Meeting Minutes, June 18, 2026 Page 3 of 3 6 Memorandum REPORT TO:Tax Increment Finance Advisory Board FROM:Jesse DiTommaso, Economic Development Coordinator David Fine, Economic Development Manager SUBJECT:Updates on Midtown Urban Renewal District Construction Projects MEETING DATE:July 16, 2026 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Discussion STRATEGIC PLAN: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. BACKGROUND:Economic Development staff will provide updates on current construction projects in the Midtown Urban Renewal District. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by the Board. FISCAL EFFECTS:This update does not have direct fiscal effects. Report compiled on: July 10, 2026 7 Memorandum REPORT TO:Tax Increment Finance Advisory Board FROM:David Fine, Economic Development Manager SUBJECT:Northeast Urban Renewal District Tax Increment Finance District (TIF) Assistance Program Application Update MEETING DATE:July 16, 2026 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Discussion item STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The Northeast Urban Renewal District (NEURD) Tax Increment Finance (TIF) Assistance Program was approved by the NEURD Advisory Board in 2022. Since then the City Commission has updated its affordable housing ordinance on twice and there have been sizable changes to the area median income. Staff encourages a comprehensive discussion of the program, but believes that at minimum, the Board should consider updating the housing affordability criteria to align better with City Commission policy direction. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by the Board. FISCAL EFFECTS:A change in TIF assistance policy does not have direct fiscal effects, but use of the program by future applicants will have fiscal effects. Attachments: NortheastTIFAssistance v2.docx NortheastTIFApplication v2.docx Report compiled on: July 10, 2026 8 NORTHEAST TAX INCREMENT FINANCING (TIF) ASSISTANCE PROGRAM INTRODUCTION The Northeast Urban Renewal Plan (“Plan”), adopted by the Bozeman City Commission on November 14, 2005, authorized the Northeast Urban Renewal Board (“Board”) to establish monetary incentives in the Northeast Urban Renewal District (“District”) in support of the Plan’s goal to promote economic development. The Board established this Tax Increment Financing (“TIF”) assistance program for the redevelopment and rehabilitation of properties within the District. A consolidation of all of the City of Bozeman’s Urban Renewal Boards occurred on July 18, 2023 via Ordinance 2144. Following the adoption of Ordinance 2144, the City of Bozeman’s Economic Development Department administers the TIF assistance program. TIF assistance applications are subject to program eligibility criteria and project guidelines listed below. Applications will be accepted and processed in the order in which they are received and approved based on the availability of funds for the program. PURPOSE The purpose of the TIF assistance program is to encourage desirable development and redevelopment projects, as well as assist projects that would not otherwise occur “but for” the assistance provided through tax increment financing. The purpose of this document is to provide guidelines for Economic Development Department Staff to offer monetary incentives for development activities in the District in the form of TIF assistance funds. This policy shall be used as a guide in processing and reviewing applications requesting TIF assistance. The Economic Development Director shall have the option of amending or waiving sections of this policy when they determine, in their sole discretion, such an amendment or waiver is necessary or appropriate. In amending or waiving any sections of this policy, the Director shall document the reason for the deviation. The provision of financial assistance is at the sole discretion of the City of Bozeman. The City reserves the right to reject or approve applications on a case-by-case basis, taking into account established policies, specific project criteria and the demand on District services in relation to the potential benefits to be received from the proposed project. Meeting policy guidelines or other criteria does not guarantee the award of TIF assistance. Furthermore, the approval or denial of one application is not intended to set precedent for approval or denial of another application. PROGRAM OBJECTIVES The primary objective of the TIF assistance program is to encourage investment in development and redevelopment of commercial and mixed-use property within the District in accordance with the provisions of the Montana Urban Renewal Law (7-15-4209, 7-15-4233, and 7-15-4288, 9 Page 2 of 5 Northeast Urban Renewal District TIF Assistance Program M.C.A.). Additional District objectives are to: • Balance commerce and livability in the District within the mixed-use framework; • Encourage the health, safety and security of the District; • Honor the unique character and vitality of the District; and • Reduce blighting influences in the District The grants are awarded at the discretion of the Economic Development Department as authorized by the Bozeman City Commission, based upon review of the Applicant's compliance with program objectives, eligibility requirements, and eligible construction activities. GENERAL POLICIES 1. TIF assistance priority will be given to projects that do not have the financial feasibility to proceed without the benefit of the assistance. 2. The applicant shall provide market and financial feasibility studies, appraisals or other information provided to private lenders for the project as well as any other information or data which the City, or its financial consultants, may require in order to review the need for TIF assistance. 3. TIF assistance will not be used for projects that place extraordinary demands on District infrastructure or services. 4. The applicant must be able to demonstrate, to the City’s satisfaction, an ability to construct, operate and maintain the proposed project based upon past experience, general reputation and credit history. 5. The applicant shall provide sufficient market, financial, environmental and other data relative to the successful operation of the project. 6. The Applicant must retain ownership of the project long enough to complete it, to stabilize its occupancy, to establish the project management, and to initiate payment of taxes based on the increased project value. This application must be signed by both the applicant(s) and the property owner(s) (if different). 7. Project plans and construction must comply with all applicable code and permit requirements. Applicant is advised to consult with the City of Bozeman planning and building departments, licensed architects, engineers, or building contractors before proceeding with final plans or construction. 8. The Applicant must demonstrate significant leverage of private investment through the use of public dollars. 10 Page 3 of 5 Northeast Urban Renewal District TIF Assistance Program ELIGIBLE COSTS TIF eligible expenses are defined by Montana Code Annotated, 7-15-4288 and further limited by the Plan. The project seeking TIF assistance must be located within the boundary of the District. Costs related to the following are eligible for financial assistance: 1. Demolition and removal of structures 2. Construction and improvement of public improvements or infrastructure, including streets, curbs, gutters, sidewalks, alleys, parking lots and off-street parking facilities, sewer lines, storm sewers, waterlines, and impact fees Requests for funding above $50,000 will require the ratification of the Bozeman City Commission. DISBURSEMENT OF ASSISTANCE FUNDS The TIF assistance program is a reimbursement program. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the Director of the Economic Development Department in their sole discretion. At the end of the project, the recipient will submit a Certificate of Completion and required supporting documentation to the Economic Development Department including itemized invoices and other documentation as the City may reasonably request. USE OF ASSISTANCE FUNDS The award of TIF assistance funds is subject to the Applicant entering into a grant agreement with the District. The grant agreement will include requirements that the grantee comply with (i) applicable City of Bozeman procurement regulations related to bidding, hiring, and prevailing wages; (ii) the City’s nondiscrimination policy; and (iii) State of Montana public records laws. The grant agreement will include such additional terms as the City in its sole discretion determines are prudent or necessary to fulfill the goals of the TIF assistance program. TIF assistance funds must be used within two years of the date of the Letter of Award. Any funds not disbursed to the Applicant within that time will remain in the District fund. The Economic Development Director, in their sole discretion, may provide an extension of up to one year to the original two-year timeframe. Use of TIF assistance funds must be in compliance with the terms of the grant agreement between the Applicant and the City. REVOCATION OF AWARD The grant agreement will include terms providing that an award of TIF assistance may be revoked by the Economic Development Department if the Department finds, in its sole 11 Page 4 of 5 Northeast Urban Renewal District TIF Assistance Program discretion, that Applicant has failed to comply with any of the terms of the assistance program or grant agreement, or has failed to provide information or provided inaccurate information on the application. Upon such a finding, the Economic Development Department will provide Applicant with notice of the default and a 30-day opportunity to cure before the award is revoked. The grantee will be required to return TIF assistance funds already disbursed pursuant to the terms of the grant agreement. DISCLAIMER: The City of Bozeman will not be responsible for the planning, design, or construction proposed by any work conducted as part of the TIF assistance program. No warrantees or guarantees are expressed or implied by the description of, application for, award of or participation in the TIF assistance program. APPLICATION PROCESS AND PROCEDURE Application for TIF assistance shall be made on the forms provided by the Economic Development and submitted to the Economic Development Department for review and comment. Incomplete forms will be returned to the applicant with an explanation on additional information as may be required. Prior to submitting the grant application, the Applicant must have obtained and provided to the Economic Development Department written comments on the proposed development from the Conceptual Review Application through the Community Development Department. The Conceptual Review must provide adequate detail to receive comments from the Engineering Division on required utility connections and off-site infrastructure. For projects seeking TIF assistance for demolition or payment of impact fees, the City of Bozeman Economic Development Department will review the application and provide a recommendation, if applicable, to the Bozeman City Commission. Application for TIF assistance are reviewed and analyzed using the information provided by the application. Criteria are provided in the application materials and the applicant should provided detailed documentation to demonstration adherence with the goals of the program. In addition, an analysis by a third-party economic consultant will be used to evaluate the application for creation of new taxable value. The analysis will include a return on investment and estimated payback period for public assistance and proposed metric for the ratio or private investment to public assistance. An additional assessment will be completed of the development pro forma in order to assess the reasonableness of the applicant’s incentive request. If approved by the Economic Development Department, or City Commission, a “letter of intent” outlining the specific terms and conditions of the TIF assistance will be provided to the applicant. 12 Page 5 of 5 Northeast Urban Renewal District TIF Assistance Program SUBMITTAL INFORMATION There are two parts to the application. All applicants must complete Part 1. Applicants requesting TIF assistance above $50,000 must complete and include information identified in Part 2.  Part 1 – All Applications  Part 2 – Applications requesting funding over $50,000 13 Northeast TIF Assistance Application Part 1 Page 1 Northeast Urban Renewal District Tax Increment Financing Assistance (TIF) Application PART 1 PROJECT INFORMATION Project Name: Property Address: __ Legal Description: Property Geo-Code: 06- County Tax ID #: Property Status: ☐Vacant Land ☐ Building on Leased Land ☐Existing Building APPLICANT INFORMATION Applicant’s primary contact: Name: Business Name: Business Phone: _______________________________Cell Phone: Email: Project Representative (if not applicant): Name: Business Name: Business Phone: _______________________________Cell Phone: Email: Property Owner (if not applicant): Name: Business Name: Business Phone: _______________________________Cell Phone: Email: Please attach a list of additional owners, business partners, developers and/or investors associated with this project, with the above information provided for each. 14 Northeast TIF Assistance Application Part 1 Page 2 COMPANY PROFILE Business Location ☐New business establishing itself in Bozeman ☐Existing business ☐Expanding/remodeling at same location ☐Expanding to an additional location ☐Existing business relocating from (identify location): Street Address: City: State: Zip: ☐Other: Year Business Established: Type of Business (Describe): Has a business plan been developed in relation to the proposed project? ☐No (Development of a business plan may be required as part of the application process) ☐Yes (Include a copy with the application) TIF ASSISTANCE REQUEST DETAIL Type of TIF Assistance Sought: ☐Requesting assistance for public infrastructure costs ☐Building demolition Value of TIF Assistance Sought: $ Will this project proceed if TIF assistance is not granted? Explanation for response must be included in the required project narrative. ☐ No ☐ In a limited fashion ☐ Yes, but at a later date ☐ Yes, as scheduled ☐ Other 15 Northeast TIF Assistance Application Part 1 Page 3 This application must be signed by both the applicant(s) and the property owner(s) (if different). I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to participate in the Northeast Urban Renewal District TIF assistance program. I (we) understand that failure to comply with the terms of the TIF assistance program may result in revocation of an award. I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority and must receive all required approvals prior to commencing the work. I (we) understand if approved for TIF assistance, the work to be performed must also be in accordance with TIF assistance program procedures and the general design guidelines for the District, as well as the specific plans approved for the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be assessed for my project. Further, I (we) agree to grant City personnel and other review agency representative’s access to the subject site during the course of the review process as required per the Bozeman Municipal Code. Applicant (s) (Print Name) Signature of Applicant Date Property Owner(s) (Print Name) Signature of Property Owner Date 16 Northeast TIF Assistance Application Part 1 Page 4 REQUIRED INFORMATION 1. Project Narrative Provide a narrative overview of the project including each of the following elements: a. Public Benefits Projects with a high degree of public benefits are typically more likely to receive TIF assistance. The criteria matrix of this application guides the Economic Development Department and City Commission to understand and evaluate the public benefits for a project. Provide a detailed narrative response to each criterion and include supporting documentation. b. Project Description 1. Describe the status of the property, including ownership and leases 2. Description of business(es) to benefit from the TIF Assistance 3. Identify all proposed uses: e.g. industrial, commercial, retail, office, mixed use, residential for sale or for rental, etc. 4. Total number and individual square footage of residential units; type of residential units (e.g. for-sale, rental, condominium, single-family, etc.); number and type of parking spaces provided; and construction phasing. 5. Value of TIF assistance requested – requests over $50,000 require Part 2 of the application c. Project Timeline 1. Provide anticipated dates for site acquisition, project start, completion, estimated date of occupancy, and other project milestones. Multi-phase projects must include details for each phase. The timeline should also identify any critical or time-sensitive dates as well as any time constraints facing the applicant. 2. Provide detailed explanation on impact on the timeline if TIF assistance is not granted at the requested amount. d. Construction information Size of any existing structure to be demolished or rehabbed; size of any new construction; types of construction materials (structural and finish); delineation of square foot allocation by use 2. Site Maps and Building Plans The Applicant must submit a completed Conceptual Review Application or Pre-Application. The application must include, at minimum: a. Photographs of project site and/or building b. Map showing the location of the site and its immediate surroundings c. Proposed development plans including site plans, floor plans, and building elevations d. Description of parking accommodations for residential units and commercial uses e. Anticipated off-site infrastructure improvements, including anticipated costs, and City comments on those infrastructure improvements f. Copy of Concept Review comments 3. Completed Criteria Matrix (see next page) The applicant must complete the matrix indicating criteria that apply to this project and points requested. Final determination of point and applicable criteria will be made by the City of Bozeman. 17 Northeast TIF Assistance Application Part 1 Page 5 CRITERIA FOR TIF ASSISTANCE The City of Bozeman’s Economic Development Department will review each TIF assistance application using the following criteria and point system. Points can range from 0 to the maximum shown below in each category. The following criteria will be used to rate your project. To receive points for any given item, provide a detailed narrative response to each criterion and include documentation demonstrating adherence to the criteria must be submitted with the application. The Economic Development Staff will use this information to evaluate the project. Northeast District Goals Points Ensure the health, safety, and security of the District 1. Infrastructure Improvement: The project will repair, replace, or improve outdated or insufficient infrastructure /6 2. Multimodal Transportation: The project incorporates infrastructure that facilitates safe, efficient, and convenient access of the district for all modes of transportation /4 3. Public Utilities: The project will incorporate public utilities in a way so that they are not visually or physically obtrusive /2 Balance Commerce and Livability within the Mixed-Use Framework 4. Mix of Uses: The project incorporates mixed use development that promotes livability /4 5. Community Housing: The project includes affordable housing units. For the purposes of this criterion, an affordable housing unit is defined as a unit that requires no more than 33 percent of a household’s income for housing payments based on a designated percentage of area median income (AMI). Eligible rental units shall be affordable at 80% AMI and eligible for sale units shall be affordable at 90% AMI. Condominium units are eligible as for sale units. Additional points may be awarded for projects that provide on-site housing for the proposed workforce. Eligible rental dwellings to be constructed in the proposed residential development shall be provided by long-term contractual obligation to an affordable housing agency, for a period of not less than 20 years, with a written plan assuring ongoing affordability pricing and eligibility monitoring, and annual re-certification. The City's affordability guidelines and subsequent revisions establish affordability and eligibility. To receive 3 points under this criterion, 10% of all units must meet the affordability criteria. To receive 6 points under this criterion, 20% of all units must meet the affordability criteria. /6 Honor the Unique Character and Vitality of the District 6. Character: The physical design, materials, and massing of the project reflects the community’s values of durability, flexibility, and simplicity, and add vitality to the neighborhood /2 7. Sustainability: The project’s design and construction practices incorporate environmentally sustainable strategies and elements /2 Public Open Space is Essential to a Healthy and Appealing Urban Environment 8. Open Space: The project designates new land for parks and open space /4 9. Landscaping: The project improves landscaping in existing public spaces /2 The Costs of Projects and Programs shall be Weighed Against their Benefits of the District 10. Return on Investment: The investment of public funds in the project results in a leverage ratio of at least 10:1 for residential projects; 8:1 for commercial projects; /4 18 Northeast TIF Assistance Application Part 1 Page 6 and/or 5:1 for living wage jobs The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding 11. This project involves and/or will encourage public-private partnerships that will add value to the District and its investments. /4 Projects shall Consider Impacts on Adjacent Neighborhoods 12. The project is complimentary to adjacent neighborhoods, not just Northeast /2 Total Points /42 APPROVAL (For Official Use Only) Approval Status: Date Approved: Date Letter of Award Sent: Date Certificate of Completion: Date of Payment Request: Compatible 19 Northeast TIF Assistance Part 2 Page 7 PART 2 FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE Project Financial Information In order for the City of Bozeman Economic Development Staff to adequately review applications seeking TIF assistance, the following information must be submitted with the application. This information will be used to perform a third-party financial analysis to determine the project’s anticipated return on investment (ROI) and reasonableness of developer profit. The goal of the Northeast TIF Assistance program is to make projects financially feasible. Therefore, projects that demonstrate financial need for public funding will be given priority. Economic Development Department Staff may create an information request to the applicant that will include the following information: 1. Sources & Uses of Funds a. Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, other anticipated types of public assistance, and any other types or methods of financing. Describe the sources of equity and include a term sheet for lender financing, if available. b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project budget must identify the up-front sources intended to finance the development costs of the project. If determined, specify the specific line items of the project budget that each source will finance. c. Summarize the uses of funds. General categories to be identified include acquisition and related site costs, hard construction costs, and a breakdown of soft costs. 2. Development Budget Provide an accurate and detailed development budget for the project that includes a detailed breakdown of significant line item costs consistent with the sample included in the application packet. The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs. Also, identify all line items that are performed by the developer, owner, or related entities. 3. Budget of TIF Eligible Expenses Identify which of the development budget costs are eligible for reimbursement as allowed by 7-15- 4288, MCA. 4. Financial Commitments Submit commitment letters and/or term sheets from all lenders for proposed debt (such as construction, mezzanine, permanent, and government financing) and all other financial sources of the project (such as grants, and tax credits). Commitment letters must clearly specify the nature and terms of the obligations. 20