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HomeMy WebLinkAboutProspera Business Network Proposal Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andy Epple, director of Planning and Community Development Chris Kukulski, City Manager SUBJECT: Prospera Business Network Proposal to Prepare a Bozeman Area Economic Development Plan, including a request for $35,000 of Big Box Economic Impact Funds to Complete the Plan MEETING DATE: July 14, 2008 RECOMMENDATION: Approval BACKGROUND: One of the adopted Goals of the Bozeman 2020 Community Plan is to “Promote and encourage the continued development of Bozeman as a vital economic center.” Implementation Policy No. 109 of the Plan directs the City to: “Adopt and incorporate by reference into the 2020 Plan a Bozeman Economic and Business Development Master Plan.” (Chapter 7 of 2020 Plan is attached for your review – see especially Section 7.6 ECONOMIC DEVELOPMENT GOALS, OBJECTIVES, AND POLICIES.) The Prospera Business Network proposal before you tonight would help the community achieve its economic development goals by accomplishing this specific Implementation Policy. Production of an Economic Development Plan for the City of Bozeman is somewhat overdue. It has been a priority goal for the City Commission for many years. For a variety of reasons, it has not yet been accomplished. With changing economic conditions in our area, now would be an especially appropriate time for a comprehensive Economic Development Plan to be developed. There is currently $274,887 in the Big Box Economic Impact fund account. Another $100,000 will be deposited in January 2009, bring the uncommitted balance to $374,887. The fund was established to “mitigate impacts related to large scale developments.” The Prospera proposal to prepare a City of Bozeman Economic Development Plan, per policy direction established in the adopted 2020 Community Plan, would seem to serve that intended purpose, by identifying ways to actively encourage, create, and facilitate the creation of new businesses within the Bozeman Area, recruit businesses to relocate to the City, and retain and support the expansion of existing businesses. Development of the Plan would include establishment of an Advisory Committee “made up of business leaders, City Commissioners, city planning staff and leaders of economic development organizations.” The City Commission would need to hold hearings on and adopt the Plan prior to its being included by reference as part of the 2020 Community Plan Update. FISCAL EFFECTS: Approval of this request would deplete the Big Box fund account by $35,000, leaving a fund balance of $339,887. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, __________________________________ ___________________________________ Andrew Epple, Director of Planning Chris Kukulski, City Manager Attachments: Prospera Business Network Proposal Chapter 7, Bozeman 2020 Community Plan A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 0 OF 4 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN JULY 14, 2008 SUBMITTED BY: BOB HIETALA CHIEF EXECUTIVE OFFICER PROSPERA BUSINESS NETWORK 222 EAST MAIN STREET, SUITE 102 BOZEMAN, MONTANA 59715 406.587.3113 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 1 OF 4 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN Project Background This project is proposed as part of the City of Bozeman’s planning process for updating the Bozeman 2020 Community Plan. Over the past few months, Prospera staff and the City of Bozeman Planning Department’s leadership have held a number of discussions regarding the need for the creation of a comprehensive, stand-alone Economic Development Plan for the City of Bozeman. The recent analysis of the 2020 Plan conducted by Clarion Associates recommended that the chapter on economic development be expanded to provide more detailed policy guidance. The recommendation went on to add that a separate, more comprehensive economic development plan was indicated in 2001 and is warranted today. The recent softening of the national economy and the potential for a local economic slowdown makes this an opportune time for the City of Bozeman to adopt a comprehensive Economic Development Plan. Project Description Prospera proposes to contract with the City of Bozeman to lead the development of the City of Bozeman’s Economic Development Plan. This would include conducting the economic data collection, facilitating the public, expert and business leader input processes, working with the City Planning Department staff on coordination and integration with other sections of the 2020 Plan and working with the City Commission on the finalization and adoption of the plan. Project Deliverables At the conclusion of the process, Prospera will provide the City with two documents: a comprehensive Economic Development Plan for the City of Bozeman and a corresponding Economic Development Chapter for the updated Bozeman 2020 Community Plan. Prospera’s Qualifications for the Project Prospera Business Network (formerly known as the Gallatin Development Corporation) has an extensive history of conducting economic research, developing economic plans and implementing economic development initiatives in Bozeman over the past 21 years. Some of the organization’s recent research projects and publications include manufacturing company surveys, technology company surveys, quarterly cost of living reports, business relocation resource guides and an annual comprehensive economic profile of the area. The organization has facilitated or participated in the creation of economic development plans in the area for the past 21 years. This proposed project is consistent with Prospera’s economic development mission and goal: to support the continued economic expansion of our area and the overall growth and diversification of the economy. A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 2 OF 4 The organization has a strong relationship with the City of Bozeman in what can be described as a public-private partnership on economic development initiatives. Since its inception, GDC/Prospera has worked closely with the City on a variety of economic development projects, including business relocations. Prospera administers for the City a $200,000 job training grant to an aerospace company and also administers the City of Bozeman’s $1.6 million CDBG Revolving Loan Fund. In addition, Prospera has strong relationships with Bozeman’s business community, as evidenced by the 160 business members that provide financial support and the extensive professional development programs offered. The organization has numerous partners who support our economic development efforts, and with whom we regularly collaborate on programs and initiatives, including: the Bozeman Area Chamber of Commerce, Tech Ranch, the Downtown Bozeman Partnership, Montana State University (including MSU Tech Transfer & MSU Career Services), Montana Manufacturing and Extension Center (MMEC), TechLink, Bozeman Job Service, the Northern Rocky Mountain Resource Conservation and Development Area (RC&D), the Montana Department of Commerce and the U.S. Small Business Administration (SBA) Montana District Office. Project Timeframe The project will commence upon approval of this proposal by the City Commission and the execution of a contract or purchase of services agreement as necessary. The project is expected to take six months to complete. Given a project start date by July 1, 2008, Prospera would complete the project by December 31, 2008. Project Methodology The development of the economic development plan will be an inclusive process that will provide for broad-based community input into the City’s goals and strategies for supporting and creating economic growth and diversity. Our Proposed Process in the Development of the Plan: 1. Establish Advisory Committee for the Project Prospera will create an advisory committee for the project. This group would meet throughout the course of the project and provide input into the process. The advisory committee would be made up of business leaders, City Commissioners, city planning staff and leaders of economic development organizations. 2. Data Collection for the Economic Development Plan Prospera will utilize a combination of techniques to collect input for the economic development plan. These techniques will include a combination of focus group panels and one-on-one interviews with private citizens, business and community leaders, economic development experts, city planning staff, elected officials and other key stakeholders. An electronic and printed survey will be utilized to solicit broad-based input concerning economic development needs and priorities. Prospera A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 3 OF 4 will research and review economic data to provide an in-depth look at the Bozeman economy. Prospera has access to an economic impact calculator tool that will be used to quantify potential economic impacts. Economic planning documents from other comparable cities will also be evaluated. 3. First Draft of Economic Development Plan Based on the information collected, Prospera will develop a first draft of the comprehensive City of Bozeman Economic Development Plan and submit it to the Planning Department for review and comment. 4. First Draft of Economic Development Plan Reviewed by City Planning Department 5. Economic Development Plan Revised Based on City Planning Department’s Input and Recommendations 6. Economic Development Plan Reviewed by City Commission 7. Economic Development Plan Revised Based on City Commission’s Input and Recommendations 8. Economic Development Chapter for Bozeman 2020 Community Plan (to be integrated with other chapters in the 2020 Plan) Written 9. Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted to City Planning Department for Review and Comment 10. Economic Development Plan and the Economic Development Chapter of the 2020 Plan Revised Based on City Planning Department’s Input and Recommendations 11. Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted to City Commission for Review and Comment 12. Economic Development Plan and the Economic Development Chapter of the 2020 Plan Finalized Based on City Commission’s Input and Recommendations 13. Finalized Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted for Adoption by City Commission A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 4 OF 4 Issues which would likely be addressed in the Economic Development Plan The Economic Development Plan will be shaped by the data collected and the input received throughout the process. It is important to involve the many key stakeholders in the process to help create a broad-based consensus on the direction of the City’s economic development activities. The operating premise in the project is that there is a commitment to developing and maintaining a strong, diverse and sustainable economy in Bozeman. This economy will create high paying jobs for the citizens of Bozeman. Some topics that the plan could address include: 1. A Description or Profile of the City’s Economy 2. Coordination of Public-Private Economic Development Efforts 3. Infrastructure Support for Economic Development 4. Land Use Related to Economic Development 5. Downtown’s Importance to Bozeman’s Economic Vitality 6. Focus on Sectors: Technology, Manufacturing, Healthcare, Services, Retail, etc. 7. Economic Incentives and Direct Business Support 8. Business Expansion and Retention 9. Environmental Considerations 10. Workforce Development 11. Development of an Industrial Park 12. Integration of Economic Development policies with other policies in the 2020 Plan Proposed Project Funding The estimated cost for the entire project is $52,500. The City of Bozeman’s contribution would be $35,000 which could be provided through economic development revenues from the Development Impacts (Big Box) Fund. Prospera would match the City’s contribution to the total project cost at 50%, providing $17,500 through Prospera funding and in-kind expenses. Bozeman 2020 Community Plan Economic Development Page 7-1 CHAPTER 7 Economic Development 7.0 INTRODUCTION AND BACKGROUND Economic Development is the process of creating wealth by mobilizing human, physical, natural and capital resources to produce marketable goods and services. A healthy economy plays a key role in maintaining the quality of life within a city. A strong economy provides economic opportunities to all citizens through the creation of jobs and business opportunities, creating a tax base that provides schools, police, fire protection, parks and other community facilities, services and amenities. Successful models blend public and private efforts. A city can foster economic development through actions that include activities primarily directed towards economic development and those undertaken for other reasons that also produce economic benefits. Examples of ac- tivities primarily directed toward economic devel- opment include allocating land for manufacturing and commercial uses, connecting water and sewer systems to business sites, providing tax credits and incentives, and completing advance planning to accommodate growth. To achieve these ends, it is critical that the City of Bozeman continue to support and participate in partnerships to promote economic development. Economic development strategies need to be interactive with public and private sector executives at the state and local lev- els. Since its founding, Bozeman has provided services to the surrounding area. Initially Bozeman was an agricultural supplier to Virginia City and other mining communities. Later, as the county seat and the site of Montana State University, Bozeman became a services and retail hub. This pattern has continued with Bozeman now providing services to a multi-county area. Bozeman is strategically located to provide services to a large geographic region. Bozeman is 82 miles from Butte, 100 miles from Helena, and 140 miles from Billings. It is also the closest city of significant size to Yellowstone National Park and the Bridger Bowl and Big Sky ski areas. Because of its location within the region, Bozeman has a long association with, and benefit from tourism and services. Origi- nally founded as an agricultural community, Bozeman has expanded to provide a wide range of economic opportunities. Like many western communities, Bozeman is undergoing a transition. Agriculture now employs a smaller percentage of workers than ever before. At the same time, specialty and value-added processors in the area, such as Wheat Montana, are experiencing significant growth. Persistent low commodity prices and an aging farm population increase the difficulties in continuing farm operations. Land throughout the Downtown Bozeman Economic Development Bozeman 2020 Community Plan Page 7-2 Gallatin Valley and surrounding areas is being taken out of agricultural production and is being subdi- vided for recreational, residential and industrial uses. This not only reduces the amount of agricultural products being produced but also reduces demand for supporting employment such as mechanics, eleva- tor operators, and veterinarians. As agricultural lands are interspersed with new non-farm residences, additional conflicts are created between long-standing agricultural practices and equipment and persons newly relocated and perhaps unfamiliar with rural life. Montana State University has been an economic anchor for Bozeman for many years. MSU is also experiencing a changing environment as demographic changes bring an older population. The average student in 2000 is now 22.3 years old, several years older than in 1970. Total student enrollment has expanded but instructional hours are remaining stable, indicating that students take longer to complete course work and graduate. The role of research as a revenue source is increasing and emphasizing the economic development function of state universities. 7.1 CURRENT EMPLOYMENT Recent changes in the national economy are also being seen in Bozeman. There has been significant national growth in the “Internet economy,” which offers significant opportunity for Bozeman. As a result of the newness of this development, it is uncertain as to the long-term effects that may occur. Bozeman’s location astride large telecommunication lines and the presence of MSU coupled with a high quality of life give promise to the possibility of attracting and developing providers of digitally based products and services. Tourism in Bozeman, unlike many communities, is a year-round activity. The presence of world-re- nowned fishing, hunting, skiing, and other outdoor activities, as well as Yellowstone National Park, support a continuous variety of spring, summer, autumn, and winter activities. Community activi- ties such as the Sweet Pea festival, urban attrac- tions such as the Museum of the Rockies, and the historic and lively downtown provide social and cul- tural attractions which complement the natural beauty surrounding Bozeman According to the Bozeman Area Chamber of Commerce, an estimated 1 million to 1.5 million visitors come through Bozeman annually. The Chamber estimates that tourism creates a direct economic impact on Bozeman of $80 million, which is then multiplied several times as dollars from outside the community are turned over by residents up to seven times. Airlines serving Gallatin Field estimate that 70 percent of the arriving passengers are leisure travelers. Tourism also supports other economic activities by providing an unusually large demand at Gallatin Field. Bozeman’s air connection to the nation is significantly en- hanced, as discussed in Chapter 10, Transportation, by visitors who travel by air. Bozeman has a varied economic base that has aided in smoothing some of the cyclical boom and bust periods that have affected Montana. Bozeman also has an economy that is in transition. Founded as an agricultural community, Bozeman now derives the majority of its employment from services including Sweet Pea Festival parade in Downtown Bozeman Bozeman 2020 Community Plan Economic Development Page 7-3 health care, education, and entertainment and retail trade. One of the basic information sources for employment data is the Economic Census conducted by the United States Census Bureau in years ending in two and seven. For many years the economic activities of the nation were classified by the Standard Industrial Classifi- cation (SIC) system that grouped similar business activities into categories, such as wholesale trade. In the 1997 Economic Census a modified system was used for the first time, the NAICS. Unfortunately, the Census bureau has not created indexes that allow the direct comparison of the 1997 Economic Census and previous efforts at the city level. Table 7-1: Historic Employment by Standard Industrial Classification Sector Source: 1998 Third Quarter Employment Covered by Unemployment Insurance Report, Montana Department of Labor 1990, 1980, and 1970 U.S. Census, Census Bureau.1 Total City Employment.2 Percent of Total City Employment.3 Agriculture, Forestry, and Fishing.4 Transportation, Communication, and Utilities. 5 Finance, Insurance, and Real Estate. 1998 Montana Department of Labor 1990 Census 1980 Census 1970 Census Sector T.E.1 % T.E.2 T. E.1 % T.E.2 T.E.1 % T.E.2 T.E.1 % T.E.2 Agriculture3 83 0.4%248 2.2%315 3.4%200 2.9% Mining 65 0.3%27 0.2%30 0.3%0 0.0% Construction 1,238 5.7%517 4.6%480 5.1%314 4.5% Manufacturing 1,385 6.4%743 6.5%189 2.0%263 3.8% T.C.U.4 695 3.2%500 4.4%377 4.0%264 3.8% Wholesale Trade 1,176 5.4%337 3.0%213 2.3%170 2.4% Retail Trade 6,010 27.6%2,772 24.4%2,066 22.0%1,267 18.1% F.I.R.E.5 800 3.7%504 4.4%557 5.9%348 5.0% Services 9,189 42.2%5,140 45.3%4,465 47.5%4,159 59.5% Public Administration 1,145 5.3%469 4.1%399 4.2%368 5.3% Economic Development Bozeman 2020 Community Plan Page 7-4 In order to look at historical employment trends, data was selected from the decennial census and data collected by the Montana Department of Labor that is still organized by the SIC system. This section should be revisited in some detail when the City-level results of the 2000 census and the 2002 Economic Census become available and more direct comparisons become possible with the 1997 Economic Cen- sus. Tables 7-1 and 7-2 show the breakdown of employment in Bozeman by class. Table 7-2: Employment Detail for Retail Trade, Services, and Public Administration Third Quarter of 1998 Source: 1998 Third Quarter Third Quarter Employment Covered by Unemployment Insurance Report, Montana Department of Labor. 7.2 FUTURE EMPLYMENT Household size in Bozeman has been declining, as has the national average household size. The change in the expected household size directly affects the expected ratio of jobs to population. It is expected that as the household size continues to decrease, the expected growth in employment will increase faster than the expected growth in population. Table 7-3 shows expected future employment within the City of Bozeman. The figures shown in the table illustrate the continuation of some trends and the effects of economic changes. A report prepared in 2000 by the Sonoran Institute from county-level data from the Census Bureau and other sources indicates that 40% of the countywide income of Gallatin County is not related to wages, but instead comes from rents, the stock market, retirement income, and other similar sources. This is a trend that has been detected in other western counties that are close to other major recreational areas and are amenity- rich. The change in income sources reflects in a shift of dominant employment sectors, with services playing a larger role than they would in a community without a large quantity of non-labor income. Sector Total Employment Percent of Total Employment Retail Trade 6,010 27.6% Eating and Drinking Establishments 2,146 9.9% Services - Education, Personal, Health, Professional (total employment)9,189 42.4% Lodging Services 669 3.1% Education 3,995 18.3% Health 1,407 6.5% Public Administration (total employment)1,145 5.3% Local (Gallatin County and City of Bozeman 586 2.7% State 222 1.0% Federal 324 1.5% Total City Employment 21,786 Bozeman 2020 Community Plan Economic Development Page 7-5 Graph 7-1: Eight Largest Employers in the City of Bozeman Based on Number of Employees Source: Phone survey of personnel offices. Table 7-3: Future Employment by Standard Industrial Classification Sector Source: Background Data, Greater Bozeman Area Transportation Plan 2001 Update. 1 Agriculture, Forestry, and Fishery. 2 Transportation, Communications, and Utilities. 3 Finance Insurance and Real Estate. 2,400 703 600 382 274 250 230 228 0 500 1,000 1,500 2,000 2,500 3,000 Montana State University Bozeman Deaconess Hospital Bozeman School District #7 Gallatin County City of Bozeman Wal-Mart ILX Lightwave VLC EmployersNumber of Employees Sector Total 1998 Employment Percent of Total Employment 2020 Total Employment (expected) Percent of Total Employment Agriculture1 83 0.4%163 0.5% Mining 65 0.3%33 0.1% Construction 1,238 5.7%3,128 8.8% Manufacturing 1,385 6.4%2,618 7.3% T.C.U.2 695 3.2%1,116 3.1% Wholesale Trade 1,176 5.4%1,730 4.8% Retail Trade 6,010 27.6%9,472 26.5% F.I.R.E.3 800 3.7%1,117 3.1% Services 9,189 42.2%13,717 38.4% Public Administration 1,145 5.3%2,626 7.4% Totals 21,786 100%35,721 100% Economic Development Bozeman 2020 Community Plan Page 7-6 Table 7-4: City Employment as a Portion of Total County Employment by Sector Source: 1998 Third Quarter Employment Covered by Unemployment Insurance Report, Montana Department of Labor. 1990 and 1980 U.S. Census, Census Bureau.. 1 Agriculture, Forestry, and Fishery. 2 Transportation, Communications, and Utilities. 3 Finance, Insurance, and Real Estate. Table 7-4 illustrates the place of Bozeman within the Gallatin County employment pattern. A trend is noticeable where employment within Bozeman represents a smaller proportion of the entire county economic base. This represents the growth of Big Sky and West Yellowstone as independent communities over the past 28 years, the expansion of Four Corners, Belgrade, and other existing areas of the county. This trend may or may not continue as the employment base reflects changes in the national economy. Technologically-oriented businesses such as software firms are more able to provide their services remotely than are retail businesses such as restaurants. Depending on the future employment mix, the proportion of business locating within Bozeman may vary. The data for 1998 also was from those businesses, which are covered by unemployment insurance. This excludes sole proprietorships. Bozeman has a large number of small businesses. This trend is likely to continue and be increased with persons residing in Bozeman and telecommuting to employment located in other areas. This trend also has land use implications since these individuals are more likely to work and home and will not, therefore, create a demand for office spaces. The City can support this type of entrepreneurship by relaxing its home occupation provisions in the zoning ordinance and supporting live/work opportunities. Bozeman has benefited over the past century from a diverse employment base. A broad economic base helps to smooth economic cycles and provide for a more dynamic and stable community. Bozeman’s largest employment sector, services, is diversified with Montana State University and medical and pro- fessional services. Tourism brings funds from outside the community and supports a wide variety of local businesses from hotels to fishing guides to local artists. Agricultural activities in Gallatin County provide basic employment that in turn supports other businesses. 1998 Department of Labor 1990 Census 1980 Census Sector City County City Percentage City County City Percentage City County City Percentage Agriculture1 248 1,685 14.72%315 1,613 19.53%200 1,175 17.02% Mining 27 123 21.95%30 95 31.58%0 6 0.00% Construction 517 1,463 35.34%480 1,321 36.34%314 696 45.11% Manufacturing 743 1,993 37.28%189 1,389 13.61%263 777 33.85% T.C.U.2 500 1,433 34.89%377 938 40.19%264 642 41.12% Wholesale Trade 337 904 37.28%213 625 34.08%170 320 53.13% Retail Trade 2,772 5,616 49.36%2,066 3,866 53.44%1,267 2,231 56.79% F.I.R.E.3 504 1,080 46.67%557 1,021 54.55%348 419 83.05% Services 5,140 9,925 51.79%4,465 7,448 59.95%4,159 5,276 78.83% Public Administration 469 931 50.38%399 816 48.90%368 857 42.94% Total 11,353 25,153 45.14%9,391 19,132 49.09%6,985 12,129 57.59% Bozeman 2020 Community Plan Economic Development Page 7-7 As Bozeman becomes more connected to national trends, decisions such as Federal Reserve changes in the interest rates have a larger impact on the community. In order to maintain a healthy economic climate Bozeman should identify what opportunities and advantages it has for supporting and expanding existing businesses as well as recruiting new employers. With the development of the Internet and similar techno- logical innovations, Bozeman is able to offer a high amenity life style to employers whose economic activities are not tied to geographic locations, such as software development. However, if Bozeman intends to rely upon a high quality of life to develop economically, then the preservation of that quality of life is also an economic development strategy. It is important to equitably support existing develop- ment and businesses to prevent flight from the developed community and the loss of economic value to the larger community. Businesses, whether new or existing, rely upon government services to support them in their economic activities. Police protection, properly functional transportation networks, and other government activi- ties influence the desirability of development within a community. In order for the City of Bozeman to provide the necessary services, it is important that the City maintain a good financial status and exercise good financial management, including the careful integration of its actions to prevent conflicting actions. 7.3 LAND USE ACTIVITIES Economic development relies upon a variety of resources. Like other urban activities, the presence of available land, good transportation access, and water and sewer services influences the location where businesses are constructed or other economic activities occur. As discussed in Chapter 6, Land Use, Bozeman has two existing land use patterns. A movement to reemphasize the center-based pattern will also affect economic activities. It is expected that a center-based land use pattern will be supportive to economic development and business activities. The concentration of busi- nesses within close proximity will enable mutual reinforcement such as offices and restaurants, and reduce infrastructure costs by providing a more compact pattern which results in shorter service extensions. It will also support pedestrian, bicycle, and transit use, which can result in less parking area needed with corresponding cost savings; en- able shared parking arrangements; and provide community focal points. The amount of land expected to be required for future economic activities and future land use patterns are discussed in Chapter 6, Land Use. As Chapter 6 indicates, there is an adequate supply of most types of land given appropriate plan- ning and zoning designations within the existing city limits available for development. Bozeman’s development has been strongly influenced by the presence of Montana State University. MSU has been a stabilizing influence on the local economy, and the many students comprise a significant portion of Bozeman’s population. Bozeman has supported the development of the university through the provision of urban services, providing housing opportunities for staff and students, and coordinated capital facility planning. MSU has the potential to provide future local employment opportunities as a result of the broad range of research conducted on campus. Several local businesses either interact with New retail store in Bozeman Economic Development Bozeman 2020 Community Plan Page 7-8 ongoing research or resulted from the transfer to the private market of knowledge developed at MSU. The City and MSU should work to strengthen and continue their existing mutually beneficial relation- ship. 7.4 MONTANA STATE UNIVERSITY Bozeman’s development has been strongly influenced by the presence of Montana State University. Montana State University is a land grant institution with 12,000 students and colleges of agriculture, arts and architecture, business, education, health and human development, engineering, graduate studies, letters and science, and nursing. Currently, MSU is working to expand the land grant mission to serve high-technology businesses in addition to the traditional agriculture clientele. Bozeman has supported the development of the university through the provision of urban services, providing housing opportunities for staff and students, and coordinated capital facility planning. In exchange, MSU has been a stabilizing influence on the local economy and the many students comprise a significant portion of Bozeman’s population. Many graduates will remain in the Bozeman community after graduation and work in professions such as education, health care, business, and engineering. In addition to developing a qualified workforce, MSU contributes to the local economy by providing jobs, increasing visitors to the area, and developing research opportunities. MSU’s research benefits the Bozeman economy in several ways. Many of the 80 plus high-technology companies in the Gallatin Valley utilize MSU and its resources in their businesses. Such in- teractions include facilities and equip- ment use, student intern programs, fac- ulty consulting, and collaborative re- search. Additionally, MSU has licensed 40 university technologies, 26 of which are with Montana companies. MSU also seeks to serve local companies through service efforts. The Montana Manufac- turing Extension Center has provided manufacturing expertise and assistance to companies such as WestPaw Design, Mystery Ranch, and Big Sky Carvers. TechLink, located in the Advance Technology Park, helps local companies to access, develop, and commercialize technology in partnership with federal research labs. The new business incubator, TechRanch, nurtures start-up com- panies by providing them with valuable resources, such as equipment, expertise, and resources for ven- ture capital. MSU also works to enable Montana small businesses to be more successful in federal grant programs such as SBIR and STTR. Two examples of businesses that work with and derive benefit from MSU are Scientific Materials and LigoCyte, both Bozeman technology-based companies. Scientific Materials, a laser materials company, has collaborated on research projects with MSU for several years, employed MSU graduates, and licensed technology from MSU. LigoCyte Pharmaceuticals has licensed 5 technologies from MSU, utilizes MSU The Brick Breeden Fieldhouse at MSU is used for many community events Bozeman 2020 Community Plan Economic Development Page 7-9 biotechnology interns, works collaboratively on numerous projects with MSU, and resides in the University’s Advanced Technology Park. Of the $60 million in extramural research dollars brought into Montana by MSU, $40 million provides salaries in the local economy. MSU provides input directly into the economy, as well as working hard to enable existing and future small companies to achieve success in the area. Montana State University has been a partner in the Bozeman Community since 1893. The City of Bozeman and MSU should continue to work together into the future, and continued their existing mutu- ally beneficial relationship. 7.5 BOZEMAN’S SUPPORT FOR ECONOMIC DEVELOPMENT The City of Bozeman undertakes a variety of activities which supports and encourages the maintenance, expansion, and creation of employment. As a municipality, the City has jurisdiction over various urban services, land use and development, and a variety of economic development tools within its boundaries. The City has historically utilized these tools to encourage and support businesses that advance commu- nity aspirations. Examples of City support for economic development include: ·Maintaining a balanced and fiscally responsible City budget ·Initiating a Capital Improvements Program to facilitate cooperation between agencies and pri- vate parties for the provision of water, sewer, and streets ·Ensuring a high quality of urban services, such as police protection and water treatment ·Supporting the renovation and reuse of the existing building stock to prevent blight and urban decay, with its accompanying loss of value and tax revenue ·Utilizing tax abatement, Community Development Block Grants, and other financial instruments to support businesses providing job growth or other identified community benefits ·Supporting the Gallatin Development Corporation ·Supporting Montana State University ·Actively pursuing infrastructure maintenance and development funds to reduce costs to system users ·Facilitating private initiative through the use of tax increment financing and business improve- ment districts 7.6 ECONOMIC DEVELOPMENT GOALS, OBJECTIVES, AND POLICIES 7.6.1 Promote and encourage the continued development of Bozeman as a vital economic center. Objective 1. Support business creation, retention and expansion. Implementation Policies: 2, 3, 18, 28, 29, 35, 52, 55, 59, 61, 62, 107, 108, 109 2)The Bozeman 2020 Community Plan shall guide all capital facilities planning and con- struction, which shall further the community vision described in the Bozeman 2020 Commu- nity Plan. Economic Development Bozeman 2020 Community Plan Page 7-10 3)Review, and revise as necessary, all municipal ordinances to comply with and advance the goals, objectives, and community vision of the Bozeman 2020 Community Plan, with zoning and subdivision amendments to be completed within one year of plan adoption. 18)Review and evaluate development procedures and requirements and make changes, as needed, to improve predictability, clarity, timeliness, effectiveness, and simplicity, while en- suring adequate review of community and environmental impacts. 28)Use and publicize incentives, such as, but not limited to, public infrastructure funding support and tax breaks, to encourage commercial and residential development or redevelop- ment of identified infill areas, including brownfields and the Historic Core. 29)Use the GIS based land use inventory to identify infill opportunities and share this infor- mation with developers. 35)Actively provide community outreach to educate the public and collect input about City programs, services, and policies, including the Bozeman 2020 Community Plan and its imple- mentation tools. 52)In cooperation with other public and private entities, design a long-range plan to promote cultural tourism. 55)Prepare and implement a neighborhood plan for Downtown to evaluate issues such as parking, traffic circulation, economic development, the economic impacts commercial devel- opment located outside the commercial core has on Downtown, building rehabilitation, ex- pansion of the Downtown business district, increasing building height limits, rehabilitation of Bozeman Creek, and so forth. 59)Ensure an adequate land base dedicated to the commercial functions of neighborhood commercial centers so that businesses reinforce each other, provide a wide range of services, and are easily accessible to neighborhood residents and workers. 61)Maintain and enhance as needed relationships with the Gallatin Development Corpora- tion, Chamber of Commerce, and other groups to promote Bozeman as a good place to live and work and attract businesses that advance the goals and objectives of the Bozeman 2020 Community Plan. 62)Hire a community grants coordinator to secure grants to help support economic develop- ment, infrastructure installation and maintenance, parks, historic preservation, affordable housing, community beautification, and so forth. 107) Use and publicize incentives, such as, but not limited to, public infrastructure funding and tax breaks, to encourage the creation of primary jobs and workforce training. 108) Provide public infrastructure for a partnership with Montana State University that incubates business–building on the success of the Montana Manufacturing Extension Cen- ter, TechRanch, and TechLink–transferring technologies developed at MSU to the private sector and creating high paying jobs. 109) Adopt and incorporate by reference into the 2020 Plan a Bozeman Economic and Business Development Master Plan with the goals of (1) Actively encouraging, promoting and facilitating the creation of new businesses within the Bozeman Area, recruiting nonresi- dent businesses to relocate to the City, and retaining and supporting the expansion of existing businesses; (2) actively encouraging, promoting, and facilitating a strong, mutually beneficial working relationship between the City of Bozeman and Montana State University, with an Bozeman 2020 Community Plan Economic Development Page 7-11 emphasis on capturing a larger share of the benefits of university research through local economic development; and (3) promoting and maintaining a positive business climate within the City. (4) Involving participants in this process who should include but not be limited to the Public Sector (City of Bozeman, Gallatin County, Bozeman Public Schools, Montana State University, and the State of Montana) and Private Sector (Gallatin Development Cor- poration, Bozeman Area Chamber of Commerce, Southwest Montana Building Industry As- sociation, and Downtown Bozeman Business Improvement District). Objective 2. Coordinate the provision of infrastructure necessary to support economic develop- ment. Implementation Policies: 2, 23, 28, 62 2)The Bozeman 2020 Community Plan shall guide all capital facilities planning and con- struction, which shall further the community vision described in the Bozeman 2020 Commu- nity Plan. 23)Continue to update and follow facility plans to ensure that orderly development can be supported by infrastructure facilities. 28)Use and publicize incentives, such as, but not limited to, public infrastructure funding support and tax breaks, to encourage commercial and residential development or redevelop- ment of identified infill areas, including brownfields and the Historic Core. 62)Hire a community grants coordinator to secure grants to help support economic develop- ment, infrastructure installation and maintenance, parks, historic preservation, affordable housing, community beautification, and so forth. Objective 3. Foster a positive economic climate through a well managed and aesthetically pleas- ing built environment and by maintaining a beautiful and healthy natural environment to pro- mote and attract businesses with a desirable impact on the community. Implementation Policies: 25, 30, 36, 37, 39, 44, 48, 49, 50, 51, 61 25)Update the design criteria of the Entryway Corridor Overlay plan to ensure adequate and appropriate review standards that are consistent with the Bozeman 2020 Community Plan. 30)Identify and map important viewsheds and ridgelines, and actively work to protect and enhance them. 36)Prepare illustrated urban design guidelines to ensure functional, human scale, and attrac- tive development. 37)Continue and improve implementation of the existing successful Neighborhood Conser- vation Overlay and Historic Preservation Program. 39)Develop and implement reliable and adequate funding mechanisms for the acquisition, development, and maintenance of urban parks, recreation trails, and public open spaces, including, but not limited to, a park maintenance district, general funds, and parkland dedica- tions. 44)Prepare and implement a comprehensive urban forest master plan addressing planting, maintenance, and replacement needs. Economic Development Bozeman 2020 Community Plan Page 7-12 48)Sustain the Bozeman Arts Commission and support the Commission’s preparation and implementation of a Bozeman Arts and Culture plan. The plan shall address funding, facili- ties, access, event scheduling, arts education and outreach, and expanding arts opportunities. 49)Promote Downtown as the cultural center of Bozeman through support of art in public places, including visual, literary, and performing arts on both public and private property. 50)Incorporate public art in public projects including buildings, parks, recreational facilities, and public service facilities and encourage private development to include art in their projects. 51)Support and facilitate community arts and cultural events such as the Sweet Pea Festival, Christmas Stroll, Lunch on the Lawn, Gallatin County Fair, and the Winter Fair. 61)Maintain and enhance as needed relationships with the Gallatin Development Corpora- tion, Chamber of Commerce, and other groups to promote Bozeman as a good place to live and work and attract businesses that advance the goals and objectives of the Bozeman 2020 Community Plan. Objective 4. Encourage ongoing improvements in private infrastructure systems, such as tele- communications, and promote state-of- the-art facilities. Implementation Policies: 3, 8, 18 3)Review, and revise as necessary, all municipal ordinances to comply with and advance the goals, objectives, and community vision of the Bozeman 2020 Community Plan, with zoning and subdivision amendments to be completed within one year of plan adoption. 8)Establish strong working relationships between City officials and staff and representa- tives of other governmental or non-governmental service providers through regularly sched- uled meetings or other means. 18)Review and evaluate development procedures and requirements and make changes, as needed, to improve predictability, clarity, timeliness, effectiveness, and simplicity, while en- suring adequate review of community and environmental impacts. Objective 5. Encourage, through the use of incentives, the development of business and indus- try that provides wages that are proportionate to, or are higher than, the cost of living. Implementation Policies: 1, 18, 23, 35, 59, 61, 108 1)The Bozeman 2020 Community Plan is the guiding policy and decision-making tool for decisions made by elected, appointed, and administrative officials. 18)Review and evaluate development procedures and requirements and make changes, as needed, to improve predictability, clarity, timeliness, effectiveness, and simplicity, while en- suring adequate review of community and environmental impacts. 23)Continue to update and follow facility plans to ensure that orderly development can be supported by infrastructure facilities. 35)Actively provide community outreach to educate the public and collect input about City programs, services, and policies, including the Bozeman 2020 Community Plan and its imple- mentation tools. 59)Ensure an adequate land base dedicated to the commercial functions of neighborhood commercial centers so that businesses reinforce each other, provide a wide range of services, and are easily accessible to neighborhood residents and workers. Bozeman 2020 Community Plan Economic Development Page 7-13 61)Maintain and enhance as needed relationships with the Gallatin Development Corpora- tion, Chamber of Commerce, and other groups to promote Bozeman as a good place to live and work and attract businesses that advance the goals and objectives of the Bozeman 2020 Community Plan. 7.6.2 Support balanced policies and programs to encourage a vigorous and diverse economy. Objective 1. Support the preservation of agricultural lands and activities and a viable agricul- tural community as an important economic sector in the Gallatin Valley. Implementation Policies: 9, 10, 11, 12, 13, 16, 63, 64, 65 9)Continue to support and participate in existing cooperative intergovernmental groups such as the Transportation Coordinating Committee, Gallatin City-County Board of Health, and the Gallatin Valley Roundtable. 10)Establish interlocal agreements to address areas of common concerns and issues. 11)Provide assistance to other communities by sharing materials, knowledge, and training opportunities with elected officials and community volunteers. 12)Establish a regional planning coordinating committee based on the model of the Trans- portation Coordinating Committee to address planning issues with regional impacts. 13)Continue cooperation and coordination with the Gallatin County Planning Board to sup- port policies and programs that encourage development within municipalities and establish clearly defined urban growth areas. 16)Research incentives and regulations and publicize existing incentives, in accordance with the Bozeman 2020 Community Plan, that encourage development within the City of Bozeman. 63)Support those segments of Bozeman’s economy related to agriculture by encouraging the development of local value-added processes. 64)Support the creation and continuation of local markets such as the Farmer’s Market for local products. 65)Support the production of specialty and organic crops in close proximity to urban areas by allowing small-scale agriculture as a home-based business, expanding the Farmer’s Mar- ket, and so forth. Objective 2. Support the preservation of Gallatin County’s historic agricultural character and rural lifestyle. Implementation Policies: 11, 12, 13, 16 11)Provide assistance to other communities by sharing materials, knowledge, and training opportunities with elected officials and community volunteers. 12)Establish a regional planning coordinating committee based on the model of the Trans- portation Coordinating Committee to address planning issues with regional impacts. 13)Continue cooperation and coordination with the Gallatin County Planning Board to sup- port policies and programs that encourage development within municipalities and establish clearly defined urban growth areas. Economic Development Bozeman 2020 Community Plan Page 7-14 16)Research incentives and regulations and publicize existing incentives, in accordance with the Bozeman 2020 Community Plan, that encourage development within the City of Bozeman. Objective 3. Ensure the viability of agricultural land uses by protecting water sources used for irrigation. Implementation Policies: 3, 19 3)Review, and revise as necessary, all municipal ordinances to comply with and advance the goals, objectives, and community vision of the Bozeman 2020 Community Plan, with zoning and subdivision amendments to be completed within one year of plan adoption. 19)The annexation policy of the City shall if necessary be revised to seek to regularize City boundaries, eliminate existing gaps in the City’s jurisdiction, annex all areas adjacent to the City which are developed at a density greater than one dwelling unit per acre, and address other issues as identified in the Bozeman 2020 Community Plan. Objective 4. Foster a diverse economy that will protect the economic climate for existing busi- nesses and maintain opportunities for business expansion. Implementation Policies: 2, 3, 18, 28, 29, 35, 52, 55, 59, 61, 62, 107, 108, 109 2)The Bozeman 2020 Community Plan shall guide all capital facilities planning and con- struction, which shall further the community vision described in the Bozeman 2020 Commu- nity Plan. 3)Review, and revise as necessary, all municipal ordinances to comply with and advance the goals, objectives, and community vision of the Bozeman 2020 Community Plan, with zoning and subdivision amendments to be completed within one year of plan adoption. 18)Review and evaluate development procedures and requirements and make changes, as needed, to improve predictability, clarity, timeliness, effectiveness, and simplicity, while en- suring adequate review of community and environmental impacts. 28)Use and publicize incentives, such as, but not limited to, public infrastructure funding support and tax breaks, to encourage commercial and residential development or redevelop- ment of identified infill areas, including brownfields and the Historic Core. 29)Use the GIS based land use inventory to identify infill opportunities and share this infor- mation with developers. 35)Actively provide community outreach to educate the public and collect input about City programs, services, and policies, including the Bozeman 2020 Community Plan and its imple- mentation tools. 52)In cooperation with other public and private entities, design a long-range plan to promote cultural tourism. 55)Prepare and implement a neighborhood plan for Downtown to evaluate issues such as parking, traffic circulation, economic development, the economic impacts commercial devel- opment located outside the commercial core has on Downtown, building rehabilitation, ex- pansion of the Downtown business district, increasing building height limits, rehabilitation of Bozeman Creek, and so forth. Bozeman 2020 Community Plan Economic Development Page 7-15 59)Ensure an adequate land base dedicated to the commercial functions of neighborhood commercial centers so that businesses reinforce each other, provide a wide range of services, and are easily accessible to neighborhood residents and workers. 61)Maintain and enhance as needed relationships with the Gallatin Development Corpora- tion, Chamber of Commerce, and other groups to promote Bozeman as a good place to live and work and attract businesses that advance the goals and objectives of the Bozeman 2020 Community Plan. 62)Hire a community grants coordinator to secure grants to help support economic develop- ment, infrastructure installation and maintenance, parks, historic preservation, affordable housing, community beautification, and so forth. Objective 5. Participate in the growing regional economy in a manner that minimizes conflict between jurisdictions and that maximizes natural market strengths. Implementation Policies: 5, 12, 13, 16, 23 5)Ensure that municipal ordinances provide for adequate mitigation of identified develop- ment impacts. 12)Establish a regional planning coordinating committee based on the model of the Trans- portation Coordinating Committee to address planning issues with regional impacts. 13)Continue cooperation and coordination with the Gallatin County Planning Board to sup- port policies and programs that encourage development within municipalities and establish clearly defined urban growth areas. 16)Research incentives and regulations and publicize existing incentives, in accordance with the Bozeman 2020 Community Plan, that encourage development within the City of Bozeman. 23)Continue to update and follow facility plans to ensure that orderly development can be supported by infrastructure facilities. Objective 6. Maintain a strong financial position for the City of Bozeman. Implementation Policies: 28, 38, 39, 62, 66, 67 28)Use and publicize incentives, such as, but not limited to, public infrastructure funding support and tax breaks, to encourage commercial and residential development or redevelop- ment of identified infill areas, including brownfields and the Historic Core. 38)Provide for pedestrian and bicycle networks to connect employment centers; public spaces and services, such as parks, schools, libraries; and other destinations. 39)Develop and implement reliable and adequate funding mechanisms for the acquisition, development, and maintenance of urban parks, recreation trails, and public open spaces, including but not limited to, a park maintenance district, general funds, and parkland dedica- tions. 62)Hire a community grants coordinator to secure grants to help support economic develop- ment, infrastructure installation and maintenance, parks, historic preservation, affordable housing, community beautification, and so forth. 66)The City shall balance the needs of existing and future development so that the cost of public facilities and services is assigned on a fair, proportionate, and equitable basis to the user that requires them. Economic Development Bozeman 2020 Community Plan Page 7-16 67)As provided for in state law, seek to establish joint funding mechanisms so that non-City residents participate in the construction and support of City services and facilities that they use. Objective 7. Support Montana State University in its educational and research mission, which contributes to the local and state economy. Implementation Policies: 8, 9, 11, 22, 47, 68, 108 8)Establish strong working relationships between City officials and staff and representa- tives of other governmental or non-governmental service providers through regularly sched- uled meetings or other means. 9)Continue to support and participate in existing cooperative intergovernmental groups such as the Transportation Coordinating Committee, Gallatin City-County Board of Health, and the Gallatin Valley Roundtable. 11)Provide assistance to other communities by sharing materials, knowledge, and training opportunities with elected officials and community volunteers. 22)If the annual growth rate of the City either increases or decreases by 50% or more in a single year; or, if the City increases in population or area by more that 15% during the period between otherwise scheduled reviews; or, if the inventory of land uses within the City shows one land use exceeding the national averages for cities of comparable size by more than 30%; then, the Planning Board shall initiate a review of the growth policy to ensure that the goals, objectives and text of the plan adequately reflect that status and needs of the community. Should the review indicate the need for changes to the plan to respond to altered circum- stances the changes shall be initiated promptly. 47)Ensure the zoning ordinance provides for both minimum and maximum residential densi- ties. 68)Advance Montana State University’s education and research missions and further the goals and objectives of the Bozeman 2020 Community Plan through internship opportunities with the City and contracts for services such as the Community Design Center.