HomeMy WebLinkAbout09-2-2008_North Seventh Urban Renewal District Fund ExpendituresCommission Memorandum
REPORT TO: Honorable Mayor & City Commission
FROM: North Seventh Urban Renewal Board (NSURB)
Michelle Wolfe, Chair
SUBJECT: North Seventh Urban Renewal District Fund Expenditure Plan
MEETING DATE: Tuesday, September 2nd, 2008
BACKGROUND: See attached Fund Expenditure Plan from the NSURB
RECOMMENDATION: Conduct public hearing on the NSURB Fund Expenditure Plan. If plan is acceptable, consider a motion approving the plan.
FISCAL EFFECTS: Adoption of the expenditure plan will allocate tax increment and Big Box funds
for implementing Phase I the Design and Connectivity Plan for North 7th Avenue Corridor
ALTERNATIVES: As suggested by the City Commission.
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Tax Increment Financing District
Fund Expenditure Plan
For the
North Seventh Urban Renewal District
In November 2006, the City of Bozeman designated a Tax Increment Redevelopment
Area (TIF), underwhich incremental increases in taxes due to redevelopment are
accumulated in a TIF fund. The stated goals and objectives of this Redevelopment Plan
were as follows:
MISSION VISION
This Plan is the city’s response to remedy the conditions of blight found in the August
2005 report through thoughtful redevelopment of the Corridor. The following Corridor
Goals are taken from the Design and Connectivity Plan (DCP). An expanded
description of the intent of each goal is found in the DCP Chapter 2.
Corridor Goals
A basic goal is to have an active and exciting corridor that is attractive with a distinct
character. A strategy for achieving this goal is to improve the experience for the user
by creating safe attractive walkways and streets and by providing buildings and
landscaping that are of interest to users and passersby. Several key strategies should
be followed:
1. Provide a distinct identity for the corridor
2. Develop the corridor as a focus for commercial and entertainment
activities that serve residents and visitors alike
3. Strengthen the corridor as a neighborhood service center
4. Provide mixed use development
5. Clearly define gateways at key locations along the corridor
6. Improve auto, bicycle and pedestrian circulation along the
corridor
7. Provide pedestrian connections to adjacent neighborhoods
8. Establish a wayfinding system
9. Guide new development along the corridor such that it improves the aesthetic
experience
10. Coordinate public and private improvements
11. Strengthen connections between complementary uses
12. Provide flexible public space along the corridor
GUIDING PRINCIPLES
In addition to the specifically stated goals for the District the following Guiding
Principles have been adopted to provide a basis for decision making over the life of the
District. These principles should be applied to any development program or other
activity that will affect the District:
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1. Ensure the health safety and security of the District
2. Balance commerce and livability in the District within the mixed use
framework
3. Public open space is essential to a healthy and appealing urban environment
4. The costs of projects and programs shall be weighed against their benefits to
the District
5. Private property shall not be acquired for other private use through the eminent
domain process in the implementation of any aspect of this plan
6. The City shall not limit its vision for the District improvements to monies
available solely through the TIF funding
7. Projects shall consider impacts on adjacent neighborhoods
8. The city shall consider the impact on the District of all projects undertaken
outside of the District
Currently there is $93,316 in the TIF District special allocation fund. These monies,
along with the $232,000 from the Big Box Funds approved by the City Commission on
August 11, 2008, are hereby designated by the North Seventh Urban Renewal Board
for the following enumerated projects considered Phase I of the renewal:
1. $150,000 for Construction Costs, including the engineering plan fees for
Phase I (est. 10% of project costs).
This money is permissible use under state statute 7-15-4233 as “replanning of
streets, roads, sidewalks, ways”, and “conduct appraisals, title searches,
surveys, studies and other preliminary plans and work necessary to prepare for
the undertaking of urban renewal projects”, “to study the closing, vacating,
planning, or replanning of streets, roads, sidewalks, ways, or other places and
to make recommendations with respect thereto”. State Statute 7-15-4288 also
applies: “costs incurred in connection with the redevelopment activities allowed
under 7-15-4233”. It complies with the City’s stated redevelopment objectives
as it would encourage redevelopment and infill within the city limits and that
the Tax Increment Finance TIF District created by the designation would help
facilitate such activity. Specifically, it helps to improve auto, bicycle and
pedestrian circulation along the corridor.
2. $142,829 for actual work required to complete sidewalk, lighting and
landscaping project @ $200/linear foot for Phase I. State statute 7-15-4288
as “the acquisition, construction, and improvement of infrastructure”. It
complies with the City’s stated redevelopment activities by helping to improve
auto, bicycle and pedestrian circulation along the corridor.
3. $10,829 to hire part-time staff to administer engineering RFP and right-of-
way land acquisitions. This money is permissible use under state statute 7-
15-4288 for “administrative costs associated with the management of the urban
renewal area”. It complies with the City’s stated redevelopment activities by
helping to improve auto, bicycle and pedestrian circulation along the corridor.
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4. $10,829 for Right-of-way land acquisition, if required; amend S.I.L.D. This
money is permissible use under state statute 7-15-4233, “to negotiate for the
acquisition of land”. It complies with the City’s stated redevelopment activities
by helping to improve auto, bicycle and pedestrian circulation along the
corridor.
5. $10,829 for Subsidy program to encourage voluntary compliance by
property owners with life-safety regulations and assistance with façade
and site improvements. This money is permissible use under state statute 7-
15-4233, “to prepare plans for carrying out a program of voluntary or
compulsory repair and rehabilitation of buildings and improvements”. It
complies with the City’s stated redevelopment activities by ensuring the health,
safety and security of the District and helping to guild new development.
2009 North Seventh TIF
Proposed Expenditure Plan
Operating
Budget Other Expenditure
Plan
Balance 08/20/08 93,316 93,316
Interest 1,000 1,000
Big Box Funds 232,0001 232,000
Total Revenue Available 94,316 232,000 326,316
Engineering plan, requires RFP 50,000 100,000 150,000
Subsidy program2 10,829 10,829
Part time staff and other professional
services 10,829 10,829
Right-of-way land acquisitions 10,829 10,829
Construction – Lights, Curb and Gutter,
Sidewalk, Landscaping and Irrigation 11,829 132,000 143,829
Total Expenditures 94,316 232,000 326,316
Ending Balance 0 0 0
1one-time amount that won’t be available for operations in future years; $100,000 Big Box Funds from
Lowe’s, estimated to be delivered January 31, 2009
2Commercial Rehabilitation Loan Program, copied from Missoula Renewal Agency
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