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HomeMy WebLinkAbout03-19-09 TIF Minutes Downtown Tax Increment Finance District Board Meeting Minutes 3/19/2009 Attending: Bobby Bear, Peter Bertelsen, Thail Davis, Vonda Laird, Bob Lashaway, Chris Naumann Absent: Ellie Staley Guest: Bill Stoddard Minutes Chris asked that the board postpone reviewing January and February’s minutes until April’s board meeting. The board agreed. Public Comments None Financial Report Chris presented a variation of the typical financial report. He prepared the financial analysis presented just days after the March 5, 2009 explosion in order to see what TIF resources existed. The analysis detailed the year-to-date totals and anticipated remaining expenses for the fiscal year. The final set of figures projected the year-end totals for each budget line. The end result was his calculation of $264,245.00 of available funding. Chris communicated that his interest was to know this figure in the case of any investments the TIF might consider in light of the recent downtown disaster. Executive Director’s Report Tax Increment Finance Board The Executive Director did not submit a report for the month of March. Discussion and Decision Items BSD7 Meeting Update Chris updated the board about the meeting with Steve Johnson of the Bozeman School District that was held on March 4. Also taking part in the meeting was Vonda Laird, Bob Lashaway, and Bobby Bear. The discussion centered on how the TIF is going to redistribute the uncommitted increment per City of Bozeman Ord. 1628. Steve said that the School District is entitled to the School District mils plus the majority if not all of the State mils since they all were intended for education purposes. The group did discuss the option of phasing in the transfer of the State mils over a multi-year period. Since the City of Bozeman has indicated that they would be willing to allow the TIF to retain their mils, it was suggested that the City draft the inter-local agreement stipulating how the uncommitted increment would be redistributed. Chris said he would initiate the drafting process with the City. Disaster Impact on TIF Chris briefly discussed the impact of the March 5, 2009 explosion and fire to the TIF District in terms of real property value and decreased taxable value of the District. He said that he had received preliminary estimates from Anna Rosenberry (COB Financial Officer) that reflect a loss of $55,000 to the increment and a $33,433 loss in working capital. HB653 TIF Disaster Provision Chris informed the board that he and Anna Rosenberry had drafted proposed legislation that would stipulate the base value of a TIF District be adjusted for property value losses resulting from a disaster. Chris provided that such a provision is common in many state’s TIF statutes were disasters cause significant property damage (coastal areas subject to hurricanes and California in consideration of frequent earthquakes). He also mentioned that a similar provisions has been proposed in Montana a number of years ago. Chris said that Bozeman House Representative JP Pomnichowski has sponsored the amendment and he would be traveling to Helena in the coming days to testify in support of its adoption. The board agreed that this is a crucial piece of legislation considering that if the current taxable value of the district declines sharply without an adjustment to the base, the resulting impact on the increment could compromise the TIF’s ability to make its annual bond payment on the parking garage. HB645 Disaster Clean-up Appropriations Letter Chris presented the board with a letter on behalf of the TIF requesting that funding be allocated as part of HB645 to be administered by the TIF towards the clean-up of the explosion damage. Specifically the proposal requested $400,000 to be allocated to the TIF which would in turn: 1. ensure that the reclamation work be performed in a timely and appropriate manner. 2. keep accurate record and subsequent documentation of exactly what work is performed and how funds are spent. 3. promise to return any unused funds to the State of Montana upon completion of the project. 4. seek to recover any spent funds in the case that any party is found liable for the damage. The board discussed that they in principal they agreed that the TIF could administer any State funds on behalf of the property owners. They also agreed that assuming the responsibility of seeking financial reimbursement from any future liable party was an unacceptable role of the TIF. The board questioned if the TIF Board would have any legal standing to pursue a reimbursement of funds from any future liable party. Action: Bob Lashaway motioned to approve the signature of the TIF Board Chair to the letter requesting disaster clean-up funding from HB645 under the condition that the language obligating the TIF to seek reimbursement of funds from any future liable party be removed. Peter Bertelsen seconded the motion. No discussion. All voted in favor. Federal Disaster Assistance Letter of Support Chris next presented a letter to Montana’s federal representatives expressing the TIF Board’s support of the City of Bozeman’s request for federal disaster assistance. The Board agreed to the letter except the reference to property owners being under insured. They discussed and concluded that the property owner’s insurance coverage was immaterial to downtown’s need for federal disaster assistance. The Board also requested that Chris add language describing the damage caused by the blast and fire as blight thus deserving of action by the TIF as downtown’s urban renewal authority. Action: Bob Lashaway motioned to approve the signature of the TIF Board Chair to the letter supporting the City of Bozeman’s request for federal financial disaster assistance with the revisions outlined. Thail Davis seconded the motion. No discussion. All voted in favor. Inter-local TIF Agreement Chris suggested that the TIF revisit the specific provision of the proposed inter-local agreement about the redistribution of the uncommitted increment per COB Ord. 1628. The Board suggested that rather than meet with Steve Johnson again, Chris and Anna should draft the inter-local agreement proposing a 5 year phasing of the State mils in light of the March 5 downtown disaster. Chris acknowledged that he would pursue that course of action. Bobby adjourned the meeting.