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HomeMy WebLinkAbout01-20-09 TIF Minutes Downtown Tax Increment Finance District Board Meeting Minutes 1/20/2009 Attending: Bobby Bear, Peter Bertelsen, Vonda Laird, Bob Lashaway, Chris Naumann Absent: Thail Davis, Ellie Staley Guest: Bill Stoddard Minutes Action: Peter motioned to accept the minutes from November 18, 2009 and December 16, 2009. Bob Lashaway seconded the motion. No discussion. All vote in favor Public Comments None Financial Report rd Chris reported that the TIF had paid the 3 quarter management fee to the Downtown Partnership. Other expenses included: maintenance and repairs to downtown street lamps; and payment of the Landscape Bench order plus the Victor Stanley trash receptacle order (both of which have been received). Executive Director’s Report Tax Increment Finance Board th January 20 2009 Parking Garage Considerable progress is being made at the garage site. Martel is completing the retail shell in the next few weeks with the installation of the final brick work and last windows. Upon completion, tenant improvements can begin taking place at the owner’s discretion. Work on the stair towers is continuing with the installation of the exterior windows and the two elevators. The parking control equipment will be installed by the manufacturer the nd week of February 2. The prominent crack on the main deck is still an issue of concern. The new City Building Inspector and the structural engineer are discussing the options for repairing the crack. Downtown Improvement Plan The Downtown Improvement Plan Advisory Committee selected the team of consultants led by LMN Architects of Seattle, Washington. The LMN team includes the following members: Mark Hinshaw and Walt Neihoff, LMN Architects, Seattle WA Specializing in architecture, urban design and master planning David Leland, Leland Consulting, Portland OR Specializing in economic and market analysis plus implementation feasibility Randy Hafer, High Plains Architecture, Billings MT Specializing in historic architecture and adaptive reuse David Crawford, Thomas, Dean and Hoskins Engineering, Bozeman MT Specializing in traffic and streetscape engineering The planning process will include background research, analysis of existing conditions, public input and stakeholder interviews, presentation of a draft plan, further public input, and formulation of a final plan. The LMN team will begin working on the project in February. We anticipate having a final plan for review and adoption no later than July 1, 2009. Sublease and Office Improvement Update The improvements to the sublease office space were completed last week. The completion was delayed as a piece of tempered glass had to be ordered. th On Monday, January 19, I sent an “advertisement” that we have the space available for lease to the downtown e-mail list serve (over 300 recipients). If I do not receive any inquiries, I will place a classified ad in the Bozeman Daily Chronicle the first week in February. Street Hardware The trash receptacles that the Board agreed to purchase for the parking garage are scheduled to ship this week. Archweld completed the fabrication and powder-coating of 13 new bike racks. The Board had previously approved the money to strip the paint and powder coat 13 existing bike racks. Upon closer inspection of the existing bike racks, I concluded that all of them are beginning to weathersubstantially and need to be powder coated. Therefore, Archweld removed 13 weathered racks and replaced them with the 13 new racks. Once the 13 old ones are powder coated, Archweld will repeat the process until all of the racks are properly powder coated and therefore protected. Business Seminar Series The Downtown Bozeman Partnership and MSU Extended University Leadership Program will present a business leadership seminar series: January 20, 27, and February 3. The three seminars will focus on productivity, customer service and business improvement. The seminar series will be facilitated by Paul Bentley, Program Director and Instructor for the Leadership Program at MSU’s Extended University. He has 18 years of leadership experience in private industry, government, and non-profit. Montana Downtown Conference The Downtown Partnership will be hosting the Montana Downtown Conference May 7 and 8, 2009. The annual conference is a gathering of downtown organizations from around the region to discuss current issues, learn from one another and network. Billings hosted the 2008 event and Missoula will be the host in 2010. Discussion and Decision Items Financial Future of the TIF As background to this discussion, Chris presented the board with a history of the taxable value of the TIF District from 1996 to 2008. Chris reminded the board of the language in City Ordinance No. 1628 that places restrictions upon the Tax Increment funding: Tax increment payments made to the Tax Increment District after the 15th year of payments or after the annual tax increment reaches an inflation adjusted $750,000 whichever occurs first shall be returned to the taxing bodies as such payments would normally accrue to those bodies with the exception that those payments which are pledged to the payment of principal and interest of any outstanding tax increment bonds. The board had previously discussed the potential of the TIF to reinvest millions of dollars into the Urban Renewal District if the TIF was only regulated by the applicable state statutes. Repealing the restrictive language in Ordinance No. 1628 would require an agreement between the City, School District and County to do so. Chris Kukulski and Anna Rosenberry met with Kirk Miller and Steve Johnson to discuss this situation. Miller and Johnson expressed no interest in lifting the City restrictions on the TIF because the need that supplemental funding to perform a variety of maintenance projects at Hawthorne and Willson schools. Chris explained to the board that the School District mils amount to half of the increment amount. Thus as Ordinance no. 1628 stipulates, once the payment of the bond principal and interest, the TIF would be required to return approximately half of the remain increment revenue to the School District. Chris reminded the board that these restrictions would take affect in November of 2010. To put this into perspective, Chris indicated that at an annual 5% increase in taxable values within the TIF district, the School District would receive payment of $1.8 million between 2010 and 2020. Assuming that the City (they agree) and the County (they have no idea) agree to let the TIF keep their respective increment mils and considering an annual 5% increase in taxable values, refunding the School District mils will result in a reduction in available TIF funds from $2.8 million to $900,000 between 2010 and 2020; and a reduction in available funds from $14 million to $5 million over the remaining life of the TIF (2009-2032). Bob Lashaway mentioned that he thought if the School District received these payments from the TIF, thus increasing their revenues, then they may be required to offset that increase by an equal reduction in School District levies. Bobby Bear suggested that Chris arrange to meet directly with Miller and Johnson. Chris agreed and asked that one or two board members also attend that meeting. Chris said he would contact them in mid-February once they have completed their funding lobby efforts with the legislature (first week in February). Bobby adjourned the meeting.