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HomeMy WebLinkAbout08-18-26 - Downtown Urban Renewal District Board - Agendas & Packet MaterialsA. Call meeting to order - 12:00 p.m. B. Disclosures C. Changes to the Agenda D. Approval of Minutes D.1 Approve May DURD Meeting Minutes (Staley) E. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board THE DOWNTOWN AREA URBAN RENEWAL DISTRICT BOARD OF BOZEMAN, MONTANA DURD AGENDA Tuesday, August 18, 2026 General information about the Downtown Area Urban Renewal District Board is available in our Laserfiche repository. If you are interested in commenting in writing on items on the agenda please send an email to comments@bozeman.net or visit the Public Comment Page prior to 12:00pm on the day of the meeting. At the direction of the City Commission, anonymous public comments are not distributed to the Board or staff. Public comments will also be accepted in-person and through Video Conference during the appropriate agenda items. As always, the meeting will be streamed through the Commission's video page and available in the City on cable channel 190. For more information please contact Ellie Staley, ellie@downtownbozeman.org This meeting will be held both in-person and also using an online video conferencing system. You can join this meeting: Via Video Conference: Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting. Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in- person United States Toll +1 346 248 7799 Access code: 956 1935 4304 This is the time to comment on any non-agenda matter falling within the scope of the Downtown Urban Renewal District Board. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once per topic. Please note, the Board cannot take action on any item which does not appear on the agenda. All persons addressing the Board shall speak in a civil and courteous manner and members of the 1 F. Action Items F.1 Work Session Regarding Possible Recommendations Related to Maximum Building Height in the B-3 Zoning District and Zone Edge Transitions(Saunders) G. FYI/Discussion G.1 Executive Director's August 2026 Report (Staley) G.2 Monthly Finance Report (Staley) H. Adjournment 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. For more information please contact Ellie Staley, Downtown Bozeman Partnership, ellie@downtownbozeman.org This board generally meets the 3rd Tuesday of the month from 12:00 to 1:30pm City Board meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232. 2 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Downtown Bozeman Partnership SUBJECT:Approve May DURD Meeting Minutes MEETING DATE:August 18, 2026 AGENDA ITEM TYPE:Minutes RECOMMENDATION:I move to approve the meeting minutes from the following board meetings from May 2026. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:Approval of Monthly Minutes UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by board. FISCAL EFFECTS:None. Attachments: Downtown URD July 2026 Board Meeting Minutes.docx Report compiled on: July 15, 2026 3 Downtown URD Meeting Minutes, July 2026 Page 1 of 3 THE DOWNTOWN URBAN RENEWAL DISTRICT MEETING OF BOZEMAN, MONTANA MINUTES July 14, 2026 General information about the Downtown Area Urban Renewal District Board is available in our Laserfiche repository. A) 00:11:58 Call meeting to order - 12:00 p.m. Present: Amy Horton, Marley McKenna, Sky Cook, Nicholas Wickes, John How, Ellie Staley, Douglas Fischer Absent: Tony Renslow, Jake Van Dusen Excused: None B) 00:12:14 Disclosures C) 00:12:20 Changes to the Agenda D) 00:12:26 Approval of Minutes D.1 00:12:28 Approve May DURD Meeting Minutes Downtown URD May 2026 Board Meeting Minutes.docx 00:12:38 Motion to approve I move to approve the meeting minutes from the following board meetings from May 2026. John How: Motion Sky Cook: 2nd -00:00:01 Vote on the Motion to approve I move to approve the meeting minutes from the following board meetings from May 2026. The Motion carried 5 - 0. Approve: Amy Horton Marley McKenna 4 Downtown URD Meeting Minutes, July 2026 Page 2 of 3 Sky Cook Nicholas Wickes John How Disapprove: None E) 00:12:56 Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board F) 00:13:12 Special Presentation F.1 00:13:15 Downtown Bozeman Parking - Data, Audience Insights & Opportunities Downtown Bozeman Parking - Updated July 2026.pdf G) 01:04:17 Action Items G.1 01:04:21 Vote to recommend to amend the Downtown Urban Renewal District Bylaws to the City Commission. 260424 DURD Bylaws.FINAL.docx Appx. A Resolution 5323.pdf 01:05:54 Motion to approve I move to approve to amend the Downtown URD bylaws. Amy Horton: Motion Marley McKenna: 2nd 01:05:57 Vote on the Motion to approve I move to approve to amend the Downtown URD bylaws. The Motion carried 4 - 0. Approve: Amy Horton Marley McKenna Sky Cook Nicholas Wickes Disapprove: None H) 01:07:59 FYI/Discussion H.1 01:08:11 Executive Director's July 2026 Report DBP Monthly ED Report 7-26 - DURD.pdf Downtown Tracking Sheet-Dev. Q3_2026.pdf Downtown Tracking Sheet-Bus. Q3_2026.pdf I) 01:26:52 Adjournment 5 Downtown URD Meeting Minutes, July 2026 Page 3 of 3 For more information please contact Ellie Staley, Downtown Bozeman Partnership, ellie@downtownbozeman.orgThis board generally meets the 3rd Tuesday of the month from 12:00 to 1:30pm 6 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Community Development Director SUBJECT:Work Session Regarding Possible Recommendations Related to Maximum Building Height in the B-3 Zoning District and Zone Edge Transitions MEETING DATE:August 18, 2026 AGENDA ITEM TYPE:Community Development - Legislative RECOMMENDATION:Make recommendation to City Commission in response to identified questions. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:The City's Unified Development Code establishes maximum height standards in zoning districts and has adopted many standards to address public concerns on the mass and scale of new buildings. One of those, zone edge transitions, requires buildings to be designed with certain features if located at the boundary between some zoning districts. The City Commission will hold a work session to discuss these issues on Aug 25, 2026, and welcomes thoughts and recommendations on these issues in support of that discussion. The standards were recently adopted during the 2025 Unified Development Code update. Maximum building height for B-3 is set in Section 38.220.050 and the rule of interpretation for height is in Section 38.260.100. The rule of interpretation describes how heights are measures, allowed encroachments above maximum height, and other details. Zone edge transitions are described and applied per Section 38.260.070. The UDC text [external PDF] is available online. A staff memo, maps, and other information are attached to this agenda item. Public comments related to this item are available in Laserfiche [external link]. Staff will summarize the content in the memo and present additional materials. UNRESOLVED ISSUES:None. 7 ALTERNATIVES:Determine recommendation, if any, to make to the City Commission as selected by the Board. FISCAL EFFECTS:This item does not expend funds. Attachments: Memo re B-3 Height and Transitions Downtown Boards 8-18- 2026.pdf BZN Taller Building Heights - 6.9.2026e.pdf Updated Tall Buildings Map 2026 11x17.pdf Building Height Discussion Map.pdf ZoneEdgeTransitionMap.pdf Commercial Zoning Districts Map.pdf Report compiled on: August 4, 2026 8 Unified Development Code (UDC) Discussion on Building Height in B-3 Zoning District and Zone Edge Transitions Report To: Downtown Urban Renewal Board and Business Improvement District Board From: Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Community Development Director Meeting Date: August 18 and 19, 2026 Memo Organization: • Questions for Consideration • General Background Information o Immediate History o State Law and Local Plans o General Regulation Information • Current Code o Building Heights o Wall Plate o Articulation o Zone Edge Transitions and Step Backs o Street Trees Questions for Consideration The following questions will be discussed by the City Commission on August 25, 2026. The Commission requests input on these questions. 1) Retain the 90 feet building height authorized in the B-3 zoning district? 2) Direct review of a potential amendment in height with no other changes? 3) Establish additional minimum standard applicable for buildings over XX feet and retain the 90 feet maximum building height? 9 Page 2 of 15 4) Direct a review of a potential amendment to how zone edge transitions function? General Background Immediate History The City Commission has requested a work session regarding the maximum building height in the B-3 zoning district (38.220.050.B.1) and Zone Edge Transitions (38.260.070). Transitions and a seven story building height in the B-3 zoning district were included in the August 2023 public review draft of the Unified Development Code. The height and transition standards now in place came from revisions to earlier standards and were adopted in December 2025 and are available through the City’s website [external PDF]. During the formation of the current standards, the City engaged with advisory boards and the public through variety of outreach opportunities. The City Commission held a work session on regulatory tools to control mass and scale of buildings. This work session was held on June 24, 2025. The video recording [external link] and packet materials [external PDF] are available through the City’s website. The work session begins at 1:05:45 in the recording and on page 45 in the Commission packet. As part of the work session the Commission directed a change in height measurement from stories to feet with the translation of seven stories to 90 feet as an outcome in B-3. During the public engagement process for the UDC update prior to the June 2025 work session several questions in surveys and comments in other engagement opportunities addressed mass and scale of buildings and how best to manage mass and scale. That information was made available to the Community Development Board, City Commission, and public prior to the work session. Provisional adoption of the updated Unified Development Code occurred on December 2, 2025; and final adoption occurred on December 16, 2025. The recording of the December 2nd meeting is available online [external link] and discussion begins at 4:15:15 in the recording and concludes at 9:41:20. The recording of the December 16th meeting is available online [external link] and discussion begins at minute 55:50 in the recording and concludes at 3:03:30. The Commission discussed and modified the maximum height in the B-3 district in both meetings and finalized the code with a 90 foot maximum height. No new buildings have been constructed following the revised 2025 development code that includes the substantially increased zone edge transition section. All the recently constructed buildings are reviewed and approved under the previous development code. Community Development Board The Community Development Board, at their meeting on August 3, 2026 discussed this material. The recording [external link] of the meeting is available with the following occurring through the discussion: • Staff presentation – 6:30 10 Page 3 of 15 • Board questions – 35:45 • Public comment – 55:15 • Board discussion – 1:03:25 • Board recommendation – 1:42:30 o 1) Height – I move that we recommend to City Commission in the matter of B-3 building heights to retain the 90 feet height maximum in the B-3 zoning district but also consider adding additional required stepbacks and/or setbacks that limit the perceived mass and scale for buildings in the B-3 zone for buildings above a defined height. Passed 6-0. o 2) Transitions – Recommended to include in transitions (38.260.070) the opportunity for a subject lot to build up to the limits allowed in the abutting lot(s) before any transition requirement applies. No motion but all agreed. Overall Context The desire to control the built environment (mass, scale, height) is not new. The early purposes of zoning in the United States included control of bulk in places like New York and Chicago. The purpose has evolved with time. As has the justification for adopting zoning regulations. The first use of basic zoning was to address very real social, environmental, and health issues. Jacob Riis, How the Other Half Lives” [External Link], written in 1890, provides a stark and vivid portrayal of how communities have evolved, how the built environment needs to respond to changing conditions, and how the built environment affects people. As building codes and other regulations have changed to address some issues the need for zoning to also address those issues has changed. State Law and Local Plans The state first passed authorization for municipal zoning in 1929 and amendments occurred over time. Evolution of the law continued with the passage in 2023 of the Montana Land Use Planning Act (MLUPA). MLUPA gives authority to the City to plan for and regulate land use and development. The City must conform to MLUPA. MLUPA primarily addresses procedures and leaves some latitude to local decision makers in many areas to address non-procedural matters. Some very detailed requirements for development standards are included in MLUPA including minimum heights in some types of zoning districts, such as those covering the downtown area. MLUPA itself is guided by the MT Constitution including Article 2 Section 3 that both identifies property rights and responsibilities that go with it. Zoning is a tool to help balance rights that may be in competition and to identify responsibilities and how to meet them. Section 3. Inalienable rights. All persons are born free and have certain inalienable rights. They include the right to a clean and healthful environment and the rights of pursuing life's basic necessities, enjoying and defending their lives and liberties, acquiring, possessing and 11 Page 4 of 15 protecting property, and seeking their safety, health and happiness in all lawful ways. In enjoying these rights, all persons recognize corresponding responsibilities. MLUPA requires that regulations governing land use be in accordance with the adopted land use plan. The City updated its land use plan in October 2025 and carried forward the goals and objectives initially adopted in 2020 after a 2.5-year public drafting and review process. The adoption of the BCP2025 also carried forward the adopted Downtown Bozeman Improvement Plan, [external link] (DBIP) initially adopted in May 2019. The DBIP further develops guiding principles related to the continuing development and evolution of the Downtown area, largely defined by the B-3 zoning district boundary at the time of adoption. The DBIP itself was an update to the Downtown Improvement Plan adopted in 2009 which encouraged further development in the B-3 area surrounding Main Street. Additional housing as well as commercial activities are encouraged. One of the DBIP key ideas was that Downtown needed to expand north and south of Main Street, see More than Main Street beginning on page 52. In the portion of the DBIP titled The Heart of a Thriving City, starting on page 32, there is discussion about growth trends and mixes and how Downtown may differ from other areas of the community. Overall, the DBIP recommends that Downtown expand urban density uses north and south of Main Street into other areas zoned B-3 to facilitate additional employment and housing opportunities. At the same time, the DBIP also identifies a desire to address the existing historic districts both along Main Street and near to the Downtown. To help address both opportunities for development and existing areas the DBIP recommended resolution of several inconsistencies between the land use plan, zoning, and existing development types. These are discussed under the section titled Welcoming to Everyone beginning on page 102 and were largely resolved with revisions to the future land use map in 2020 and the UDC zoning map update completed in 2025. The Welcoming to Everyone section also recommends an increase in authorized building height to enable seven story buildings. It further discusses the idea of height transitions to be responsive to context. The City Commission adopted formal standards for building height transitions in 2018 and revised them in 2025. See below for further discussion. Appendix B of the DBIP makes several suggestions for possible revisions to regulations relating to building height and transitions to implement the DBIP. These were evaluated as part of the UDC update completed in 2025 and several were included in whole or with revisions beginning with the initial public review draft in August 2023. Balancing the desire for incremental development and redevelopment with meeting the needs for housing for existing and relocating individuals, providing for employment, and enabling services to meet needs, while at the same time addressing various civil rights is complex. The Bozeman Community Plan 2025 (BCP2025) [External link] includes seven themes. Maximizing each outcome 12 Page 5 of 15 tends to create tension between competing outcomes as maximizing one may be detrimental to another. • A resilient city • A city of unique neighborhoods • A city bolstered by downtown and complementary districts • A city influenced by our natural environment, parks, and open lands • A city that prioritizes accessibility and mobility choices • A city powered by its creative, innovative, and entrepreneurial economy • A city engaged in regional coordination The BCP2025 addresses the fundamental tensions of growth. How do we maintain existing developed areas and accommodate those who wish to join the community or address changing needs. Chapter One addresses “To Grow or Not to Grow” and “Does the City Have to Grow.” Local land development and use standards must conform to the purposes and limits of zoning and established in law, whether by the legislature or the courts. The UDC is the primary implementation tool of the adopted land use plan. With each revision of the long-range planning documents, the city made edits to zoning to realize the community’s desires and conform with legal requirements. Since 2003, state law has required regulations to be in accordance with the adopted land use plan. The current UDC text and map reflect this requirement. General Regulation Information Anticipating the update to the development regulations after adoption of the land use plan in 2020, the city performed a code assessment to identify possible changes that could improve the Unified Development Code (UDC), zoning map, and development review processes to both maintain needed standards and outcomes, and remove regulatory barriers to the creation of affordable housing [Unified Development Code Affordable Housing Assessment]. Changes to form and intensity standards are discussed beginning on page 23. The recent UDC update implemented many recommendations from the report. There is a wide range of resources describing concepts to control the built environment. Individual controls all have pros and cons depending on the context being employed and what the community hopes to achieve by a particular set of regulations. Some terms are explicitly defined in the UDC. The meaning of specific terms is also influenced by State and Federal definitions. A variety of tools are available to influence the size and proportions of a structure and its relationship to adjacent properties. Most zoning codes employ more than one tool, and the interactions must be considered collectively to work. Functional tools are influenced by the context of the community in setting specific standards. What works in one community may not achieve 13 Page 6 of 15 another’s desired outcome. These zoning standards impact land use efficiency, housing stock, and costs. The following tools to influence building mass and scale are included as part of the UDC and may have also been adopted by prior versions of the code: • Lot Setbacks: Required distances between a building and property lines, roads, or other structures. • Lot Area: The minimum amount of land required within the boundaries of a lot. This tool is much more limited in application under the new code. • Lot Coverage: The percentage of the surface of a lot that can be covered by buildings, ensuring open space for landscaping, recreation, or other non-building uses. • Height: Maximum building height. Bozeman measures height in feet from grade. • Wall plate: A limitation on maximum height from ground to where a roof line or step back needs to begin to limit overall visual mass of a building. • Horizontal Massing (Width): A limitation on the maximum building width in relation to the street. • Building size: A limitation on the maximum building total floor area. • Park dedication and on-site open area: A minimum amount of area which must be set aside from development or developed to provide recreational functions for residents. • On-site commercial and residential open space requirements. Provides amenity space for residents and “third spaces” for human interaction and creates additional transition areas. • Elevation Design Requirements: Ratios, formulas, or specific measurements on the street- facing front elevation of a home based on certain conditions, such as a garage. • Step backs and planes: Required changes to the façade of a building to move back from the placement at ground level. • Screening requirements for utility to serve basic needs of power, garbage, delivery service areas, etc. • Transitions: Standards for building design to reduce the maximum wall height of taller allowed building heights in one district to an adjacent district. • Building Frontage: How buildings relate to streets and public spaces. Bozeman’s development code uses these tools in residential, commercial, and industrial zones. For the current form and intensity standards (setbacks, height, lot area, etc.) in the updated UDC [external link] see Article 2 and the individual descriptions of each zoning district and Division 38.520. 14 Page 7 of 15 No single standard adequately addresses all the concerns of the community or the characteristics of construction relating to bulk and scale of buildings. The following graphic helps illustrate the way these concepts interact. Each identified subject (illustrated by a colored circle) allows for a range of actions or sets a standard. A project must meet each of the regulations. Only where a proposed project can meet all the standards can it be approved (illustrated by the orange shape). Each standard helps constrain the potential for excess in other standards. When considering how these standards work together it is important to remember and consider the range of uses that will be subject to the standard. If only homes are considered then a different outcome may be acceptable than when the schools, churches, daycares, offices, retail, and other activities also allowed in a zoning district are part of the consideration. The same tools are used in non-residential and mixed-use zoning districts although the numeric standard may vary by district. Each regulatory tool has nuances, and many have some flexibility in their application. If there is a code reference listed such as shown in the standards of the B-3C district in 38.220.060.B.1 and shown further below, it means there is additional detail at the referenced section. To understand the standard, you should read the additional details as well as the initial standard description. Those details often include a reference to “relief” which is the defined flexibility in application of the standard. Zoning is not retroactive. Buildings cannot be required to be modified to meet new requirements. Existing or approved structures may continue as is until redevelopment is proposed or be constructed according to approved plans. 15 Page 8 of 15 Current Code The 2025 UDC update created a new B-3C zoning district to distinguish the historic area along Main Street with a well-established pattern of lower commercial buildings with a few taller structures from other areas of the Downtown that may be suitable for new construction of more intensive structures. The B-3C zoning district has three specific standards for buildings that distinguish it from B-3: 1) a shorter maximum building height of 60 feet – the lowest allowed by state law, 2) a wall plate standard that requires a break in the height of the façade at 45 feet, and 3) a step back for the façade at or above the 4th story. See 38.260.060.B for the standards and the following image for location of the B-3C zoning district. A revised zoning map was adopted in conjunction with the new development code. Several of the changes adopted were a direct result of state mandates to harmonize the zoning with the land use plan. Several others removed mid-block zoning boundaries. Regulating the built environment is a finer grained tool than adjusting the base zoning. Consideration of whether the zoning map needs to be further examined to determine if the appropriate zoning is applied to a given area and is in accordance with the future land use map may be merited. The map also should reflect policy statements in the land use plan. A visual analysis suggests many of the perceived issues with mass and scale are a result of existing structures in or near the city center in zones that allow and encourage larger buildings. 16 Page 9 of 15 Building Height The maximum vertical extent of a building. Buildings vary by size, purpose, and site conditions. It is difficult to identify a “correct” number that applies in all circumstances. For example, the Marriot Residence Inn at 815 E main is a single structure but on a very sloped site. The vertical extent at corners of the building are very different along Main St than along Village Downtown Blvd. Height is also influenced by function. Theatres need scenery lofts, industrial sites may require tall storage silos, and many buildings have elevator head spaces that project above the rest of the roof. While exceptions can be created for specific functions, most zoning ordinances establish some type of maximum size limit in a district. The PLI district is a local zoning district that does not have a maximum height limit. Maximum allowed height varies by district in the current UDC. Specified height number is often subject to a variety of allowed encroachments and exceptions or other modifiers. The authorized height in the B-3 district has changed over time. When zoning was initially adopted in 1935, the Main Business District (designated with MB), the equivalent of the B-3 district today, had no specified limit on height. See the following excerpt from the 1941 zoning map, letters are residential zoning districts. A is the most restricted and D the most permissive residential districts. 1941 Zoning Map excerpt 17 Page 10 of 15 The B-3 district name was applied in 1973 to a larger area than the initial Main Business district as shown on the following excerpt from the zoning map. 1973 Zoning Map excerpt It was not until 1991 that a numerical height limit of 55 feet was uniformly applied to the B-3 district. Various exceptions were also authorized to height limits generally; and also applied in the B-3 district. In 2002, the City kept the 55 feet limit for the area along Main Street that would become B-3C, but raised the allowed height in the rest of the B-3 district to 70 feet. The update to the B-3 district approved in 2025 raised the maximum building height in the B-3 district to 90 feet which is enough to enable a seven story building. This was consistent with the recommendation from the DBIP as discussed above. How height is measured and what exceptions to height standards are available is established in 38.260.100.A. Whether or not a building is perceived as “too tall” depends on more than just a single measurement. The City has also adopted other standards to help address the interaction between adjacent developments. Some photos of existing structures and heights of taller buildings in the community are attached to assist in visualizing what the various heights mentioned above exist in the community. A map of taller buildings in the Downtown area is also attached; as is a map showing locations of constructed buildings over the past 10 years or so that have generated public comments on height. Please note the location of most of those buildings are in the B-3 and B-2M districts and often on the edge of the district. 18 Page 11 of 15 In 2015, after an open public review and participation process, the City Commission amended the Design Guidelines to include Chapter 4B to distinguish between the applicable standards for the area within the Main Street historic district and other portions of the B-3 zone. The revised language was adopted by Resolution 4598 [external link]. Chapter 4B was later amended by Resolution 4623 and readopted by Ordinance 1981 in 2017. The revised language supported development of larger and taller buildings but did not change the maximum height allowed in the B- 3 district. Elements of the revised guidelines have become part of the UDC standards. The placement of low-density zoning adjacent to the city core may contribute to property owners feeling overwhelmed by development nearby. Rather than imposing development restrictions on property within the city center, an alternative is to evaluate areas adjacent to the Downtown for appropriate zoning to create an intensity transition from the B-3 to lower intensity districts further from the city core. Should RA be directly adjacent to B-3 or is the B-2M or RC zone more consistent with the Community Plan? Wall Plate Wall plate is a new standard to address massing, especially in less intensively developed areas. Wall plate limits the maximum height of an exterior wall to prevent uninterrupted facades. A wall plate standard is shorter than the maximum building height allowed in a district. Definitions and rules of interpretation help explain terms used in the document. Wall plate is described in Sec. 38.260.100.B. The combination of wall plate to constrain uninterrupted building wall size and a maximum building height provide flexibility for the designer and predictability for adjacent owners and residents. Wall plate is a response to public concern on scale of development, especially in existing lower intensity areas experiencing redevelopment. Wall plate heights establish when a step back, see discussion below, or other change in building design must occur to lessen visual and physical mass of the building. More intensive zoning districts may not have a wall plate limitation to allow them to have the taller buildings that are intended in those districts. B-3 does not have a specified wall plate limit, but the B-3C district does. The City Commission considered the potential requirement for a generally applicable wall plate standard for B-3 during the June 24, 2025 code update work session on mass and scale but decided not to establish one. 19 Page 12 of 15 Figure 38.260.100-3 illustrating measurement for wall plates. Example of the B-3C – 38.220.060.B.1, excerpt of dimensional standards relating to massing below. Articulation The UDC also includes required standards for both vertical and horizontal articulation for both residential and non-residential buildings that are subject to site plan reviews. See Section 38.520.040, Building Massing and Articulation. It is expected that any new building constructed in the B-3 zoning district would be subject to site plan review. Smaller buildings like single dwelling or four-dwelling buildings are not subject to the same standard. This standard was updated in 2025 and now requires a greater number of articulation features to be used, increases the degree of 20 Page 13 of 15 variation in wall or roof needed to meet an articulation standard, and increases the locations on a building where articulation is required. There are some differences between residential and mixed- use/non-residential building requirements. This standard does not directly limit the height of a building; however, by dividing the massing into smaller visual modules it reduces the perceived scale of a building. The Neighborhood Conservation Overlay District (NCOD) design guidelines apply for sites located within the NCOD. The Chapter 4B guidelines are specifically focused on the area included in the B-3 zoning district. An update to the design guidelines has been paused but are expected to start again this winter. Zone Edge Transitions and Step Backs Zone edge transitions apply throughout the entire city when the defined condition of two dissimilar zoning districts being adjacent exists (38.260.070). A zone edge transition is a tool to adjust the abruptness of difference in building size at the edge of a zoning district. Step-backs refer to step-like changes in the profile of a building where there is functional building area for several stories and then the step inwards reduces the width or depth of the building from that point onwards. See the image below. The flat areas created by the step-backs are often used as outdoor terraces in both residential and commercial buildings. With step-backs, structures are allowed to rise straight-up a certain height beyond which they are subject to recede from the initial façade that follow a prescribed method to establish the step back. Extent of step backs in height and depth may vary by district. Although the names are similar, a setback is different than a step-back. A setback establishes a distance, usually from a property line, and no part of the building is allowed to be placed within a setback. Bozeman previously used an inclined plane, of 45°, to establish the boundary of required step backs as a zone edge transition method. This resulted in some structures with a sequence of small step backs utilized as outdoor patios for the adjacent residential uses. Some public comments have stated that this placement may lessen privacy or increase possible noise from activities in the open spaces. Other methods measure from a different set of beginning points, but in all cases the building must remain within the prescribed limits. In the current code, step backs are only applied at zone edge transitions and in conjunction with wall plate heights in the B-3C district. There are very few examples of constructed buildings implementing this standard at this time. Section 38.260.070, Transitions, describes the circumstances when a step back is required. These occur at the edges of zoning districts and primarily where residential and non-residential districts adjoin. A map of these locations is included with the packet. Types 1a and 1b transitions include a step back requirement, see image below for an example. The vertical height at which a building is subject to the step back is determined by the maximum height of the adjacent district. For example, the height at which a step-back must begin for projects adjacent to an RA district would be lower 21 Page 14 of 15 than if adjacent to the RB district. The type of applicable zone edge transition is determined by the zoning of the lot subject to the requirement and the zoning on the abutting lot as set out in Table 38.260.070-1. Transitions are required where the degree of difference between districts is greatest. There are four transition types to address different circumstances. Not all zoning boundaries require a transition. In addition to the step back, transitions in some locations are required to provide a greater distance for the entire building (setback). For example, a lot in the B-3 district which is abutting a lot zoned as RA or RB must add 3 feet to the width of the minimum setback shown as the “X” in the image below. A transition standard is not a substitute for placement of a zoning district in a proper place. The Commission directed and approved numerous modifications to the zoning map with the 2025 update to remove locations where zoning district boundaries occurred within the same block. This reduces potential conflicts by physically separating dissimilar districts. Excerpt from 38.260.070 Transitions are a special case for mass and scale controls as they apply at district edges rather than uniformly throughout a district. The best method for transitions is to place zoning districts at streets, watercourses, or similar physical separations. The width of a standard local street right of way (60 feet see below) is six times the minimum setback of the Type 1a no-alley setback (10 feet see above). Elements located within the right-of-way are shown below. The placement of zoning 22 Page 15 of 15 district boundaries on streets inherently provides spacing between dissimilar districts. However, such placement isn’t always feasible. Transitions lessen potential impacts in those circumstances. Both the prior zoning regulations and the current regulations include as part of the standard that a street (typical local right of way width of 60 feet) is by itself a transition by providing a large physical separation. An alley is not of sufficient width to be a transition. Paragraph 38.260.070A.3.f addresses this question of right of way width. Should a street be less than 60 feet wide, the transition standard would apply to a proposed building as if the street were not present. If the street is less than 60 feet wide, nothing in the language prevents a landowner from providing additional right of way, either by subdivision exemption or by provision of a street and utility easement, to widen the right of way. Whether the right of way is created by plat or easement, so long as it is 60 feet or greater in width the transition requirement has been met by physical separation from adjacent uses across the street. A transition standard places all the burden of lessening perceived conflict on only one property to the full benefit of the abutting property. It is therefore important to use care in establishing the degree of restriction with a transition. Street Trees The municipal code, in both Chapter 16 and Chapter 38, requires planting of trees within the boulevard strip (see right of way cross section above) with development. The City maintains planted trees in the right of way. Proposed tree plantings are reviewed during the site plan review process by the City Forester. Removals of trees require review and approval by the City Forester and compensation to the City for the loss of the asset. Although not a part of the building, street trees provide a visual barrier, a variation in height, and change of materials when viewing a building. The average height of a mature street tree in Bozeman is 60 feet tall. Trees therefore function as an additional element of transition between properties whether they occur at a zone edge or within a zoning district. Staff will present further visuals and information at the meeting to assist in the understanding of regulating mass and scale tools as they relate to these issues and the questions identified at the beginning of the document. 23 *All Measurements Accuracy: +/- 2' 110' Agriculture Depot Armory Baxter Radio Tower Courthouse Evergreen Tree Holy Rosary Church Story Mill The National The Bozeman South Hedges Leon Johnson Roskie 92' 101' 67' 118' 105' 79' 74' 126' 102' 90' 105' 65' 65' 54' 112' 120' 118' 105' Note: Reference measurement data collected via Google LIDAR and/or with a clinometer. Target Accuracy: +/- 2' 24 25 18,0560.6 Miles This product is for informational purposes and may not have been prepared for, or be suitable for legal, engineering, or surveying purposes. Users of this information should review or consult the primary data and information sources to ascertain the usability of the information. Feet 2,1030 Legend 1,051 Location 2,103 07/20/2026 Created By: Created For: Date: Zoning (eff. 1 Feb 2026) RD (R-5) Residential High RC (R-4)Residential Medium RB (R-3) Residential Medium-Low RA (R-S, R-1, R-2) Residential Low PLI Public Lands and Institutions B-1 Local Service Mixed Use B-2 Community Business B-2M Community Mixed Use B-3 Downtown Mixed Use B-3C Downtown Mixed Use Core BP Business Park REMU Residential Emphasis Mixed Use M-1 Light Manufacturing M-2 Manufacturing and Industrial R-MH Residential Manufactured Home NEHMU Northeast Historic Mixed-Use PDZ Planned Development Zone City Limits World Imagery Low Resolution 15m Imagery High Resolution 60cm Imagery High Resolution 30cm Imagery Citations 4.8m Resolution Metadata 26 27 28 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership SUBJECT:Executive Director's August 2026 Report MEETING DATE:August 18, 2026 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Discuss STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. BACKGROUND:Ellie will present the monthly report of general program updates and updates to topics relating to downtown. Board will discuss relevant matters. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None. Attachments: DBP Monthly ED Report 8-26 - DBP.pdf Downtown Tracking Sheet-Dev. Q3_2026.pdf Downtown Tracking Sheet-Bus. Q3_2026.pdf Report compiled on: August 12, 2026 29 Downtown Bozeman Partnership ED Report, August 2026 Downtown Updates: • Our DBP Operations Manager Position is NOW OPEN! Click HERE for job description and how to apply! • The BID Weekend Maintenance position is also OPEN! Click HERE for job description and how to apply! • Construction season continues downtown, including ADA curb ramps and curb extensions for pedestrian safety along Babcock Street and pedestrian lighting and sidewalk improvements along main street from 3rd to 5th. Follow the City Street’s Report Page for the latest closures, access changes and construction updates. City/County Updates: • The Federal Building has officially been placed on the federal disposal list, and the City of Bozeman has formally announced its interest in acquiring the property with the potential for a long-term public parking site in the back. Read the city’s announcement HERE. Upcoming Public Meetings • City Commission Meeting- Tuesday, August 28 at 6pm in City Hall. Agenda link HERE. o BID Board Member appointments: Eric Bowman and Ileana Indreland as Vice Chair and Erik Nelson as Chair. o DURD Board Member appointments: Ryan Finn-Gallatin County Commissioner, Amy Horton, John How and Sky Cook. • Downtown URD Board Meeting- August 18 at 12pm in City Hall. o Chris Saunders with the City Community Development Department will lead discussions regarding B3 building height requirements • Downtown BID Board Meeting- August 19 at 12pm in City Hall. o Chris Saunders with the City Community Development Department will lead discussions regarding B3 building height requirements • City Commission Meeting- August 25th at 6pm in City Hall: Height in B3 and Zone Edge Transition o View all City Commission and COB board meeting times here: https://www.bozeman.net/departments/city-commission/advisory-boards/calendar o View recorded meeting videos here: Meeting Videos | City Of Bozeman. DBP/DURD Project Updates: • An RFP has been issued for professional design services for a new inclusive, ADA-accessible playground at Willson School, in partnership with BSD7. Proposals were due August 14 and reviewed by myself and BSD7 by August 20 for spring 2027 construction. • The 5th and Main Lighting Project, that began in 2025 has continued down Main Street from I-Ho’s to Wells Fargo. Sidewalk repair and tree maintenance have been completed, and the pedestrian 30 lights and traffic signal work will continue into the fall in coordination with the same work getting done on the adjacent hotel site, which is in the Midtown URD. • Work related to a potential Downtown URD Expansion is continuing as needed in support of the Federal Building opportunity. A preliminary draft of the Conditions Contributing to Blight report is under review and will eventually be presented to the City Commission for consideration through a resolution. Following that action, the process of updating the Downtown Urban Renewal Plan will begin in accordance with the conditions established by the resolution. • Work continues to reestablish the Special Improvement Lighting District (SILD) for downtown pedestrian lighting. Surveying, utility coordination and preparation for the public-noticing process remain underway. • Downtown Parking Vision Plan: Presentations have now been completed with the Downtown URD Board, BID Board, and Transportation Board and the DBA Board. All boards’ feedback will help inform the final Vision Plan before it is presented to the City Commission for informal support later this fall. DBA Events/Updates: • Walk the Block Mondays: Every Monday at 1:00 p.m., meeting at the Baxter • Cuisin’ on Main Car Show: Sunday, August 16 9am to 2pm • MSU Community Cat Walk: Friday, August 21 at 11am • Downtown/MSU Homecoming Pep Rally: Friday, September 25 at 6pm • Full Online Event Calendar HERE. 31 DOWNTOWN DEVELOPMENT TRACKING Q3 2026 July - Sept. CURRENT PROJECTS ADDRESS STATUS PROPERTY TYPE UNIT TYPE(S) NOTES (design professional, stories, etc) GRANT REIMBURSE MENTS DURD Funding $ Abby Hetherington Interiors 33 S Tracy In Progress Retail/ Commercial 1 GL, 1 UG Langlas & Graphic Haus, 2 stories Streetscape, Façade, Utility, Fire- Safety grant approved and work completed $33,000 funds confirmed for fire-line safety work completed by CKMay East Main Trading Co.702 East Main Nearly Completoffice space 1-2 individual offices spaces 112 E Main - Old US Bank Location 112 E Main St In Progress, February 2027 tentative completion Mixed 7-9, 4 stories Walkway now erected Residential, streetscape 108 W Babcock 108 W Babcock Plans submitted/stre etscape deviation requested Mixed Pearson Design Group, 4 stories, proposed office/residential Hotel Project 302 E Mendenhall 2026/2027 Hotel Current grant for Sewer Lines under review Mendenhall Flats 240 E Mendenhall Plans submitted Mixed Commercial, Office, 15 two and three bedroom condos Intrinsik, break ground in 2025 The Baxter 105 W Main Fall 2027 completion Hotel/Restau rant 32 rooms, fitness/wellness center Intrinsik, Envi, Langlas Block B (Salvation Army)32 S Rouse 2026/27 Hotel/Hilton Co. 191 keys, 6 stories, 137 UG parking spaces Currently installing underground utility services along site Klare Building 234 E Babcock In progress Commercial New façade, mostly exterior work FUTURE PROJECTS ADDRESS STATUS PROPERTY TYPE UNIT TYPE(S) NOTES (design professional, GRANT REIMBURSE MENTS DURD Funding $ Fire Station One 30 N Rouse N/A Mixed 50 units at 120% AMI 1.6M Workforce Housing Agreement - expires Oct-2027 Block A 503-519 E Babcock Delayed Mixed 44 units, 7 stories 75 parking spaces, high-end Empire Site 606 E Main N/A Hotel Ag Depot 620-714 E Mendenhall N/A Mixed Downtowner Building S Willson to W Main N/A Mixed Roof, brick and suppression BG Mill 714 E Mendenhall N/A 18 condos, 5 stories NOT IN DURD Hampton Inn 507 W Main In Progress Hotel + retail 113 rooms, 3 retail, 4 stories *not in DURD Sanderson Stewart Hotel Bozeman and Residences 1 W Lamme St In Progress Hotel/ Marriott 120 guest rooms, 29- two-bedroom, 5-3- bedroom, 71 keys 6 stories, Autograph Collection. *not in DURD SMA Architecture Depot on Church 112 S Church In planning office, retail, 12 residential 6 stories 32 DOWNTOWN BUSINESS TRACKING Q3 2026 JULY-SEPT NEW DBA MEMBERS BUSINESS ADDRESS DATE OF MEMBERSHIP Bozeman Factotum Outside Downtown 28-Jul Gallatin Community Gun Club Outside Downtown 30-Jul Pest Pros of Montana Outside Downtown 3-Aug Hampton Inn & Suites by Hilton Downtown Bozeman 507 W Main 10-Aug Styled by Cat D Outside Downtown 10-Aug NEW BUSINESSES BUSINESS ADDRESS DATE OF OPENING Saffron 312 E Main 3-Jul Old Main Gallery (relocated)16 S Tracy July Studio Noble (expansion)129 E Main July Hokey Pokey Ice Cream Airstream at Lark 5-Aug Schaefer Outfitter 35 E Main August 29th Buen Provecho (formerly Tarantino's)321 E Main STE 1F TBA Crazy Mountain Outdoor Company (formerly US Bank)Sully Building TBA 1+ Years Meson Frailes (formerly Open Range)241 E Main TBA CLOSED BUSINESS BUSINESS ADDRESS DATE OF CLOSURE Allegra 39 S Tracy 1-Jan Blush 23 S Tracy Ave #2 1-Jan Nova Café 312 E Main 17-Feb Open Range 241 E Main Spring 2026 Nissa by Food for Thought - at Umvelt 22 S Grand 30-Jun THRIVE Coworking Outside Core - 1716 W Babcock 1-Jul Pita Pit 246 E Main Jul-26 VACANT LOCATIONS BUSINESS ADDRESS DATE OF CLOSURE Teton Gravity Research 9 E Main 2025 Blush 23 S Tracy Ave #2 2025 Pita Pit 246 E Main Jul-26 33 Memorandum REPORT TO:Downtown Area Urban Renewal District Board FROM:Ellie Staley, Downtown Bozeman Partnership SUBJECT:Monthly Finance Report MEETING DATE:August 18, 2026 AGENDA ITEM TYPE:Finance RECOMMENDATION:Discuss. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:Ellie will present the monthly finance report . UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the Board. FISCAL EFFECTS:As presented. Attachments: URD Finance Report 8-26.pdf Report compiled on: August 12, 2026 34 DURD - August 2026 Finance Report Category FY27 BUDGET FY27 YTD EXPENSES Income Starting Cash Balance $11,843,652 $11,843,652 Income from TIFCOB Interlocal Share $2,699,900 Entitlement Share State of Montana $72,400 Interest Income $166,200 Other Income Total Income $14,782,152 $11,843,652 ExpensesOperations DBP Management Fee $270,600 $135,300City Administrative Costs/Support $71,000Total Operations $341,600 $135,300 Infrastructure Improvements Park Improvements $50,000 $3,735Infrastructure/Utility Grants $1,500,000 Wayfinding & Parking Signage $10,000Bozeman Creek Improvements $10,000Alternative Transportation Projects $50,000 Street Furniture/Streetscape Improvements $50,000 $35,605 Intersection Cable Anchor Repairs $10,000Streetlamp Power Reconfiguration Project (SILD)$50,000 $1,739 Art Enhancement/CPTED Grant Program $40,000 Housing Assistance Residential Incentive Grant Program $100,000 Workforce Housing Project - Fire Station One (ENC)$1,600,000 Total Improvements $3,470,000 $41,079 Planning Park Improvement Planning (Soroptimist/NBPP)$50,000 Utility Infrastructure Improvement Planning $50,000 Wayfinding Plan Development $20,000DBIP General Implementation Planning $200,000 Professional Services Term Contract $50,000Downtown Infrastructure & Public Realm Plan $100,000 Technical Assistance Grant Program $75,000 Parking - Designated Funds Parking Supply, Management Planning & Data Collection $5,000,000 $7,400 Total Planning/Parking $5,545,000 $7,400 Parking Structure Garage Bond Payment $335,000 Total Parking Garage Payments $335,000 $0 Total Expenses $9,691,600 $183,779 Balance $5,090,552 $11,659,873 35