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Revised Chapter 8, Economic Development, Bozeman Community Plan
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Saunders Andrew Epple Chris Kukulski SUBJECT: Revisions to Chapter 8, Economic Development, Bozeman Community Plan, P- 07006a MEETING DATE: Monday, July 20, 2009 AGENDA ITEM TYPE: Action RECOMMENDATION: Consider the draft revisions to Chapter 8 and if the Economic Development Plan is adopted, then approve the draft revisions to Chapter 8 with amendments as directed by the Commission and direct the preparation of an adopting resolution. BACKGROUND: The City’s growth policy, the Bozeman Community Plan (BCP), has a chapter on economic development. In 2008, the City of Bozeman entered into a contract with Prospera Business Network to prepare a free standing Economic Development plan for the City. The plan has been prepared and is now in the public review process. The City Commission set a date of July 20th for a public hearing on the document. The Economic Development plan provides additional information and detail on its subject, similar to the other facility or special topic plans prepared by the City. These special topic plans then act as supplements and supporting information to the growth policy. A copy of the draft Economic Development plan and the draft revisions to Chapter 8, BCP was previously provided to the Commission through the June 22nd packet materials. The Planning Board considered the draft revisions to Chapter 8 at their hearing on June 2nd. The minutes of that meeting are attached. No changes to the draft were recommended at that time. No public comment was received at the meeting which was applicable to the draft revisions. Should the Commission elect to adopt the draft revisions to Chapter 8, BCP as presented a formal resolution of adoption will be placed on the Commission consent agenda for the following meeting. FISCAL EFFECTS: None anticipated ALTERNATIVES: As suggested by the City Commission. Attachments: Revised Chapter 8, Bozeman Community Plan Planning Board Minutes and resolution Staff report Report compiled on: July 15, 2009 STAFF REPORT BOZEMAN COMMUNITY PLAN GROWTH POLICY ADOPTION NO. #P-07006a #P-07006 BOZEMAN COMMUNITY PLAN Staff Report 1 Item: Application #P-07006a, to adopt an Economic Development plan and corresponding revisions to Chapter 8, Economic Development in the Bozeman Community Plan. Applicant: City of Bozeman PO Box 1230 Bozeman MT 59715 Representative: Department of Planning and Community Development City of Bozeman PO Box 1230 Bozeman MT 59715 Date/Time: Before the Bozeman City Commission on Monday, July 20, 2009 at 6:00 p.m. in the City Commission room, City Hall, 121 N. Rouse Avenue, Bozeman, Montana. Report By: Chris Saunders, Assistant Director Recommendation: Approval __________________________________________________________________________________ PLAN LOCATION AND MAP The documents under consideration are matters of general policy and are not specific to individual properties. The two items under consideration give information and guidance related to economic development. The planning area of the City of Bozeman is shown on Figure 3-1 of the adopted growth policy. The planning area on the map shows the City limits as of the date of adoption and a surrounding area which influences Bozeman. Any regulatory outcome through subsequent implementation of these documents will only apply within the City’s municipal area as the City does not regulate beyond its boundaries. The City has an area of economic influence much larger than its physical jurisdiction. Decisions about economic development will influence many people outside of Bozeman. PROPOSAL AND BACKGROUND INFORMATION The City conducts long range planning to: 1. Protect the public health and safety and advance the well being of the community at large, while respecting and protecting the interests of individuals within the community. 2. Provide a supportive framework for private action which balances the rights and responsibilities of many persons. 3. Facilitate the democratic development of the public policies and regulations that guide the community. 294 #P-07006a BOZEMAN COMMUNITY PLAN Staff Report 2 4. Improve the physical environment of the community as a setting for human activities, more functional, beautiful, healthful, and efficient. 5. Coordinate technical knowledge, political will, and long-range thinking in community development in both short and long term decisions. 6. Identifies the citizen's goals and priorities for their community and how they wish to carry out those ideals. 7. Encourage efficiency and effectiveness by government through coordinated policies and programs. 8. Serves as a reference bench mark for community priorities, physical attributes such as size, and social and economic information such as housing and jobs. A growth policy is an abstract of a community. 9. Support economic development by providing basic information about the community to prospective citizens and employers. A well done, and implemented, plan shows that a community is actively trying to improve their area. The formal term for a community’s comprehensive plan is ‘growth policy’. The development of a growth policy is guided by Sections 76-1-601 through 76-1-606, MCA. Bozeman has had a formal comprehensive plan since 1958. Careful planning by individuals and small groups prior to that time created the historic areas of the community. Since 1958, Bozeman has had six comprehensive plans. Most recently, the City adopted the Bozeman Community Plan (BCP) on June 1, 2009. The growth policy sets broad policy standards and coordinates between many municipal functions. Certain subjects are required to be addressed in a growth policy. One of the required elements is economic conditions. The degree to which each item is addressed is left to the discretion of the local governing body. The City contracted with Prospera Business Network to prepare a free standing economic development plan. This plan is similar in nature to the facility plans for city services such as fire protection or provision of water. The development of this plan was an action item from the Bozeman 2020 Community Plan adopted in 2001. The Bozeman Community Plan focuses on seven broad themes. These are: Neighborhoods, Sense of Place, Natural Amenities, Centers, Integration of Action, Urban Density, and Sustainability. These themes are described in Chapter 3 of the Bozeman Community Plan. A draft of the Economic Development plan document was made available for public review in May 2009. Notice of its availability was provided by email, posting on the City website and Prospera website, press release, and publication in the Bozeman Daily Chronicle. After proper public notice a public hearing was held by the Planning Board on June 2, 2009. No public comment was received related to the plan at the hearing. After consideration of the document the Planning Board recommended approval of the draft to the City Commission on June 2, 2009. A separate public hearing was held the same evening to consider possible revisions to Chapter 8, Economic Development, of the Bozeman Community Plan to incorporate recommendations and information from the free standing Economic Development Plan as a growth policy amendment. The Planning Board recommended specific changes to Chapter 8 to the City Commission. Please see the attached minutes, resolution, and draft documents. 295 #P-07006a BOZEMAN COMMUNITY PLAN Staff Report 3 REVIEW CRITERIA Section 76-1-601 MCA specifies the required contents of a growth policy. The same section also allows for a number of voluntary items. The section specifically states that the degree to which any required element of a growth policy is addressed is at the discretion of the governing body. There are some required steps for the process to adopt or revise a growth policy. For this application, the Planning Board has conducted the required public hearing after proper notice, has forwarded a recommendation of adoption by resolution, the City Commission has adopted a resolution of intent to adopt the Economic Development Plan and amend Chapter 8 of the Bozeman Community Plan, and the City Commission’s hearing for July 20th has been given proper notice. There are no specific statutorily required review criteria for a growth policy. The present growth policy, the Bozeman Community Plan, contains locally developed criteria for amending the plan. These criteria are from Chapter 17 of the Bozeman Community Plan. The description below is a summary. The complete intent and compliance with criteria may be obtained by reviewing the full document. In the following summary, item 1 is the response as it relates to the Economic Development Plan and item 2 is the responses as it relates to amending Chapter 8, BCP. A. The proposed amendment must cure a deficiency in the growth policy, or improve the growth policy, to better respond to the needs of the general community. 1. The new economic development plan provides updated information regarding economic conditions which was not available at the time the growth policy as a whole was prepared. The health of the overall economy affects land use patterns, community quality of life, and other items of concern to the general community. The provision of this information improves the growth policy. 2. The revisions to Chapter 8, BCP incorporate issues and concerns which were not included in the original adoption of the growth policy. This makes the chapter more accurate and descriptive of present community conditions. Additional policy direction is also provided so that efforts towards economic development are better focused and more effective. This improves the growth policy. B. The proposed amendment does not create inconsistencies within the growth policy, either between the goals and the maps or between different goals and objectives. 1. The adoption of the Economic Development Plan does not appear to conflict with other adopted policy documents of the City. 2. No inconsistencies have been created within the BCP by the edits to Chapter 8. C. The proposed amendment must be consistent with the overall intent of the growth policy. 1. The Economic Development Plan provides background information on the employment and commerce of the community. The policies and suggested implementation are contained in Section 7 of the document. A review of these items shows them to be consistent with the intent of the growth policy as established in the vision statement and goals of the various chapters of the growth policy. The economic health of the community is a matter of general interest and is encouraged in the growth policy. 2. The revisions to Chapter 8, BCP are comparatively minor. They are to provide updated cross references to planning work being prepared or completed. Also added are items identified in the 296 #P-07006a BOZEMAN COMMUNITY PLAN Staff Report 4 Economic Development Plan which had not been already included in the chapter. As the Economic Development Plan is consistent with the overall intent of the growth policy the inclusion of elements of it in Chapter 8, BCP must also be consistent. D. The proposed amendment will not adversely affect the community as a whole or significant portion by: 1. Significantly altering land use patterns and principles in a manner contrary to those established by this plan. 1. The adoption of the Economic Development Plan does not alter figure 3-1 or the land use principles of Chapter 3. The City has the authority to consider changes to both future land use and zoning on a property. These are City programs and remain in City control. 2. The adoption of revised Chapter 8, BCP does not alter either figure 3-1 or the land use principles of Chapter 3. The City has the authority to consider changes to both future land use and zoning on a property. These are City programs and remain in City control. 2. Requiring unmitigated larger or more expensive improvements to streets, water, sewer or other public facilities or services thereby impacting development of other lands. 1 & 2. The growth policy coordinates between the various facility plans for maintenance and expansion of the City’s services. The land use pattern and facility coordination provides for cost containment in providing services. Some additional facilities will be required to give service to an expanded population and commercial operations. The related expenses should be mitigated by the City’s policies both existing and proposed. Some of the new facilities are required by external mandates from regulatory agencies and would be necessary regardless of growth. The two documents considered under this application will not require services contrary to that shown in the facility plans. 3. Adversely impacting existing uses because of unmitigated greater than anticipated impacts on facilities and services. 1 & 2. The growth policy requires evaluation of development impacts and provision of mitigation to off-set those impacts. The two documents considered under this application will not require services contrary to that shown in the facility plans. The City’s active facility planning and development review program should avoid this problem by providing a means for mitigation of unexpected demands. 4. Negatively affect the livability of the area or the health and safety of the residents. The new growth policy puts primary emphasis on an expansive approach to public health and safety. The first priority is problem avoidance then followed by mitigation of impacts. This is consistent with commonly accepted planning practice for emergency and other services. Provision of adequate water for fire suppression, safe travel because of adequate street requirements, and emergency services coordination with other jurisdictions are examples of ways the growth policy encourages the protection of public health and safety. 297 #P-07006a BOZEMAN COMMUNITY PLAN Staff Report 5 1. A healthy economy is supportive of health and safety by providing resources for emergency services. People with good employment can provide for medical care, cultural event participation, and other quality of life activities which improve livability of the area and general well being. The growth policy encourages provision of elements of community design and development which support livability such as parks and open spaces, a viable and vigorous economy, preservation of the historic built environment, access to education and the arts, and encouragement for a socially active community. The Economic Development Plan does not detract from these items. 2. The revisions to Chapter 8, BCP incorporate additional areas of emphasis relating to economic development. The chapter remains a balanced approach recognizing the need to protect environmental health and quality of life in the pursuit of economic health. This balances the issues which will affect the livability of the area and will therefore protect the health and safety of the residents. STAFF FINDINGS/CONCLUSION Planning staff has reviewed this application for a growth policy amendment against the criteria set forth in Chapter 17 (Review and Amendment) of the Bozeman Community Plan. Staff found that this proposal satisfies all of the required review criteria. The Bozeman Planning Board has also reviewed the plan and has recommended approval of the Economic Development Plan and the revisions to Chapter 8, BCP to the City Commission. Based on the evaluation of said criteria and findings by the Planning staff and Planning Board APPROVAL of the growth policy is recommended. PUBLIC COMMENT No public comment has been received on either item as of this writing. ATTACHMENTS Planning Board resolution P-07006a Planning Board minutes of public hearing and recommendation on June 2, 2009 The draft document was provided to the Commission and public several weeks ago and is not an attachment to this report cc: file 298 Bozeman Economic Development Plan #P-07006.2 1 RESOLUTION #P-07006.a RESOLUTION OF THE CITY OF BOZEMAN PLANNING BOARD RECOMMENDING ADOPTION OF THE BOZEMAN ECONOMIC DEVELOPMENT PLAN WHEREAS, the City of Bozeman Planning Board has been created by Resolution of the Bozeman City Commission as provided for in Title 76-1-101, M.C.A.; and WHEREAS, Section 76-1-106(1), M.C.A. states that the Planning Board is responsible for preparing growth policies, if requested by the governing body; and WHEREAS, The Bozeman 2020 Community Plan originally adopted on October 22, 2001 by Resolution 3486 contained an implementation policy to develop an Economic Development Plan; and WHEREAS, the City of Bozeman entered into a contract with Prospera Business Network to prepare an Economic Development Plan; and WHEREAS, Prospera Business Network conducted the work to prepare the plan; and WHEREAS, the City of Bozeman Planning Board had earlier been directed to prepare an update to the City’s growth policy; and WHEREAS, the Planning Board undertook a variety of public outreach events and practices to gather information, including that related to economic development during drafting of the update; and WHEREAS, the City of Bozeman Planning Board initiated the preparation of an update to the adopted growth policy and all related documents and materials were properly submitted and reviewed, and all public hearings and public meetings were advertised in accordance with the procedures set forth in Section 76-1-602, M.C.A and those materials included Chapter 8, Economic Development.; and WHEREAS, the City of Bozeman City Commission held public hearings and otherwise took all necessary steps prior to passing Resolution 4163 on June 1, 2009 which adopted the Bozeman Community Plan, a growth policy for the City of Bozeman; and WHEREAS, a public hearing was advertised and held on June 2, 2009 before the City of Bozeman Planning Board to consider the draft Economic Development Plan and consider its integration into the City’s growth policy; and WHEREAS, the City of Bozeman Planning Board opened the public hearing, received a presentation of the Economic Development Plan from Prospera Business Network, and after calling for public comment received none in either oral or written form during the public comment period at their public hearings on Tuesday, June 2, 2009; and WHEREAS, the Planning Board closed the public hearing; and 299 Bozeman Economic Development Plan #P-07006.2 2 WHEREAS, the Planning Board discussed the draft document and its relative merits and content; and WHEREAS, a motion was made to recommend approval of the Economic Development Plan as presented; and WHEREAS, a revised draft of Chapter 8 of the Bozeman Community Plan was discussed as a means of incorporating the Economic Development Plan into the growth policy; NOW, THEREFORE, BE IT RESOLVED, that the City of Bozeman Planning Board, on a vote of 6 to 1, recommends adoption by the Bozeman City Commission of the Economic Development Plan as prepared by Prospera Business Network; and BE IT FURTHER RESOLVED, that the City of Bozeman Planning Board on a vote of 6 to 1, recommends adoption by the Bozeman City Commission of the revised Chapter 8, Economic Development to further integrate the Economic Development Plan in the City’s growth policy. DATED THIS 2nd DAY OF JUNE 2009, Resolution #P-07006.2 _____________________________ ____________________________ Chris Saunders, Assistant Director Brian Caldwell, President Dept. of Planning & Community Development City of Bozeman Planning Board 300 1 City of Bozeman Planning Board Minutes of June 2, 2009. MINUTES TUESDAY, JUNE 2, 2009 ITEM 1. CALL TO ORDER AND ATTENDANCE President Caldwell called the regular meeting of the Planning Board to order at 7:02 p.m. in the Community Meeting Room, City Hall, 121 North Rouse Avenue, Bozeman, Montana and directed the secretary to take attendance. Members Present: Staff Present: Sean Becker Chris Saunders, Assistant Director of Planning Cathy Costakis David Skelton, Senior Planner Dawn Smith Tara Hastie, Recording Secretary Erik Henyon, Vice President Ed Sypinski Brian Caldwell, President Chris Mehl Members Absent: Guests Present: Donna Swarthout Bob Hietala Bill Quinn Dennis Foreman Sally Hickey ITEM 2. PUBLIC COMMENT (0-15 MINUTES) {Limited to any public matter within the jurisdiction of the Planning Board and not scheduled on this agenda. Three-minute time limit per speaker.} Seeing no public comment forthcoming, President Caldwell closed the public comment portion of the meeting. ITEM 3. MINUTES OF APRIL 21, 2009 MOTION: Mr. Mehl moved, Mr. Sypinski seconded, to approve the minutes of February 18, 2009 with corrections. The motion carried 7-0. Those voting aye being President Caldwell, Vice President Henyon, Ms. Smith, Mr. Becker, Ms. Costakis, Mr. Mehl, and Mr. Sypinski. Those voting nay being none. ITEM 4. PROJECT REIVEW 1. Subdivision Preliminary Plat Application #P-09001 (Cardinal MiSub) - A Minor Subdivision Preliminary Plat Application for a Second or Subsequent Minor Subdivision from a Tract of Record on behalf of the owner, CHB Properties, LLC, and the representative, Gaston Engineering, to allow the subdivision of 3.157 acres into two lots for M-2 (Manufacturing and Industrial District) development. The property is located at 1750 Evergreen Drive and is legally described as Tract B-1- A of Certificate of Survey No. 156D, City of Bozeman, Gallatin County, Montana. (Skelton) 301 2 City of Bozeman Planning Board Minutes of June 2, 2009. Assistant Director Chris Saunders presented the Staff Report on behalf of Senior Planner David Skelton noting the location of the project and a description of what was being requested with the application. Dennis Foreman stated the application was a second or subsequent minor subdivision and explained the proposed layout of the subdivision. Vice President Henyon asked how the building had been permitted straddling the lot line. Assistant Director Saunders responded the structure had been built when Building Permit requirements allowed a lease agreement to be in place to allow the building to straddle the lot line. Mr. Mehl asked the depth of the water table in that location and if any public comment had been received regarding the proposal. Assistant Director Saunders deferred the depth of the water table question to Mr. Foreman and responded that no public comment had been received for the proposal. Mr. Foreman responded the depth of the water table was about 20 feet, several pits dug on site show no ground water in them. Vice President Henyon asked where access would be located. Assistant Director Saunders responded the access would be off of Evergreen Drive. Mr. Sypinski asked if Certificate of Appropriateness review would be included in the Site Plan review for the proposal. Assistant Director Saunders responded that Certificate of Appropriateness would be required. President Caldwell noted that water/sewer could be financially guaranteed until Final Plat approval and asked why the lift station had been included for financial guarantee. Mr. Foreman responded the lift station had been required to be completed prior to Final Occupancy for an existing building on the site. President Caldwell opened the public comment portion of the meeting. Seeing no public comment forthcoming, President Caldwell closed public comment. MOTION: Mr. Mehl moved, Mr. Sypinksi seconded to forward a recommendation of approval to the City Commission with Staff conditions and the amendment suggested by Ms. Costakis if she desired. Ms. Costakis declined to include her amendment. The motion carried 7-0. Those voting aye being President Caldwell, Vice President Henyon, Ms. Smith, Mr. Becker, Ms. Costakis, Mr. Mehl, and Mr. Sypinski. Those voting nay being none. ITEM 5. ECONOMIC DEVELOPMENT PLAN 1. A public hearing to present the draft Economic Development Plan prepared by Prospera Business Partnership and City of Bozeman. Discussion on integration of the Plan into the Growth Policy. (Saunders) Assistant Director Chris Saunders noted that the meeting was a public hearing for the proposed 302 3 City of Bozeman Planning Board Minutes of June 2, 2009. document. Bob Hietala, Prospera Business Network, introduced Peter Bertleson and Cherlyn Wilcox. He stated he would give a quick overview of the Plan and mention some of the integration techniques planned for the document to be included in the Growth Policy. He noted the three outcomes of the Economic Development Plan and stated the collaboration of public and private partnerships would be mentioned throughout the document. He stated the Economic Development Advisory Committee had met once or twice a month and they had been a diverse group which had recognized the diversity in the community; he noted the research process utilized had been to analyze comparable cities, had gathered local economic information, and had conducted a survey to gauge Bozeman’s economic needs as well as conducted 34 in-person interviews. He stated the introduction to the Plan included the impetus to create the Plan and discussed the economic backdrop. He noted the past growth of Bozeman and recent economic downturn and that had both been included in the document. Mr. Hietala stated the second section contained the economic vision and values and the language had been taken from the Growth Policy. He stated strengthening and diversifying the local economy had been included as well as the creation of higher paying jobs. He stated the profile was a snapshot of the local economy and contained demographics including; population, employment and workforce trends, land use, etc. He stated the level of entrepreneurship in the community had also been addressed. He stated industry sectors had been specific to Bozeman and included technology, retail, tourism, hospitality, etc. He stated Gallatin Field had emerged as an economic partner for the business community and had been recognized as an excellent level of air service for the community. He stated construction was the third largest employer for the City and had been hit hard by the recent down turn in the community. He stated MSU was the economic anchor for the community with government being the largest employment sector. He stated there were a surprising number of non-profit organizations providing employment within the City. He stated an economic development analysis had been done as different factors identified different impacts from businesses. He noted the economic development survey results had been included in the document to provide service and amenity ratings. He stated a large venue for statewide conferences was identified as a need for the community. Mr. Hietala noted rankings from other questions from the survey and those ratings. He reiterated the ratings for the final fifteen questions and added that the downtown business area had been one of the top eight priorities for the community. He stated improvements to infrastructure, technology transfer, and expanded vocational and certification job training had been among the top eight priorities as well. Mr. Hietala stated the next section of the Plan contained the SWOT analysis of the strengths, weaknesses, opportunities, and threats in the community. He stated the development of the goals and strategies had taken quite some time and noted what each goal was while noting that each goal contained six to eight specific strategies. He stated there was a strong recognition that there was a young population with a highly educated workforce. He stated the fourth goal was included in most every Economic Development Plan and recommended looking at local, state, and federal economic resources. He stated the fifth goal suggested collaboration between the business 303 4 City of Bozeman Planning Board Minutes of June 2, 2009. community and the City and to see if there was a way to make the regulatory environment more efficient. He stated the last goal was to maintain the high quality of life as it was an asset to the business community. Mr. Hietala noted the last section, section 8, contained the priorities and responsibilities for the City. President Caldwell opened the item for public comment. Seeing no public comment forthcoming, President Caldwell closed public comment. Ms. Smith asked for more information regarding the on-line survey; where it was located, who responded to it, etc. Mr. Hietala responded notice had been placed in the Chronicle and the Chamber of Commerce, MSU, and other groups had distributed the survey with no specific group targeted so no specific demographic identified. Mr. Mehl added he had sent the survey to the Planning Board as well as other groups. Ms. Smith suggested she would like to be certain that people in other areas of the work force had been encouraged to participate and not just business owners. Assistant Director Saunders responded a public service announcement had been sent out and a link had been included on the City website. Mr. Hietala added that the TV had also done an interview and there were slight differences in responses from different sources, but they were generally pretty close. Mr. Sypinski asked Mr. Hietala to expand more on the suggestion of a liaison from the City for economic responsibilities and community development. He suggested his experience had been that the City Manager or another member of City Staff had not historically been included. Mr. Hietala responded he was not sure if the model had occurred in Montana but thought someone should be the main contact for the City and sit on the Economic Board. Ms. Costakis stated the document had included that one of the more positive things was the quality of life with the parks and recreation being one of the more positive things as well. She suggested there was some language missing as quality of life had not been specifically identified. She suggested differentiating the aspects of quality of life by including the necessity of planning to maintain the quality of life. Mr. Hietala stated the Planning & Development process was seen as needing addressed, but the Plan did not detail how those items would need to be addressed as it should be dealt with in a separate process. Ms. Costakis suggested seeing what Planning was seen to be inhibiting would have been helpful. Mr. Sypinski stated there was a lot of discussion regarding tax increment finance districts in place already in the City and asked if the current processes had been found successful. Mr. Hietala responded that those specific incentives had not been discussed and had been left general. Vice President Henyon stated he found the report very informative with a lot of good detail that he enjoyed reading. He noted the document seemed to need to go one level deeper to answer the “how” goals would be accomplished. He noted on page 2-1 the vision was discussed and then the values; he asked how higher paying jobs would be created for example. He stated on page 3-30 he thought there should be another bullet point at the bottom to include the language “green job training” such as solar or wind technology. He stated on page 3-36 the workers compensation 304 5 City of Bozeman Planning Board Minutes of June 2, 2009. rates were of great concern, but no method on how to accomplish those goals had been included. Mr. Hietala responded workman’s compensation was a great example of framing the issue without specifically citing the issue as the City’s responsibility. Vice President Henyon stated the TIF districts should be better utilized but no guidance had been included. Mr. Hietala responded that a fair amount of time, resources, and development would have to go into that level of specificity for those types of projects; he noted the Committee had concurred that those items would need addressed and had identified that there should be a Board or Committee in place to deal with each individual issue. Vice President Henyon stated health care had been mentioned and had included expansion of the emergency room, raising the trauma level, etc. which would take money; he noted all of the ideas would go back to the Planning process but should include ways to facilitate those changes. Mr. Hietala responded that on the job certification and training side there would be opportunities, but that was as far as the discussion had gone. Vice President Henyon stated one weakness in the survey results was that the Planning process had ranked as one of the lowest priorities and suggested there should be a clear and predictable planning process evident in the Plan. He asked how the micromanagement at the Commission level could be halted to provide for a predictable way for businesses to come to the City. Mr. Hietala referred Vice President Henyon to page 7-5, goal 5, which was the Committee’s language that had been included as the method of intent to address possible micromanagement issues. Mr. Mehl added that proper planning would enhance long term value, but a process would need to be clear, consistent, and concise so a blend would need to be accomplished. Vice President Henyon stated that Legends @ Bridger Creek had been approved by Staff and the Planning Board while the City Commission had ultimately modified the design of the infrastructure at the cost of the applicant. Mr. Mehl responded that particular issue had been addressed in the document. Vice President Henyon asked if there was any way to measure the implementation of the document and suggested the use of timelines and benchmarks throughout the document. Mr. Hietala responded timelines had been included in implementation, but there was no real way to make specific recommendations on general goals. Vice President Henyon asked if there had been any ordinances that had stood out that should be modified to encourage businesses to come to Bozeman. Mr. Hietala responded that level of detail had not been included but some ordinances had been identified. Vice President Henyon suggested making North 7th Avenue an impact fee free zone or giving leases to businesses on Mandeville lane to relocate businesses and encourage development. He stated the Chamber of Commerce had developed an Economic Development Committee and had proposed to bring together the business neighborhood that should be recognized by the Commission, provided a Commission liaison, and would provide recommendations to the City. He stated the implementation matrix included the City Manager’s Office and should instead reflect that the City be the supporting partner and the primary partner be the community members. Mr. Hietala responded the Economic Development Council language included in the Plan was the intent of the recommendation. Mr. Becker stated that a lot of what had been addressed by the Planning Board had been addressed during the process of compiling the Economic Development Plan and a lot of the 305 6 City of Bozeman Planning Board Minutes of June 2, 2009. implementation would depend on the economic advisory body. He stated things change and there was a dynamic economy so the Plan would need to provide the ability for the City to decide how to implement those goals. He stated social capital, with the role of volunteerism, seemed to be missing from the Plan and there were a significant number of community members involved in non-profit organizations. He stated he was not sure the City should be the lead on economic issues, but if they didn’t, then who would. He stated the adoption and motion tonight would reflect the Board’s concerns. Ms. Smith asked where the service industry would fit in to the Plan; she noted she meant low level daily services such as lawn care, beauty salons, etc. Mr. Hietala responded that under employment and workforce those services were included and the industry sectors focused more on retail, healthcare, technology, etc. Ms. Smith stated that left her wondering where the entry level workforce was in the Plan and stated that element of the workforce was missing. Mr. Hietala responded the economic profile and unemployment information addressed that element of the workforce and noted the labor statistics had changed dramatically. He noted entry level workers seemed to be something that was being taken care of in Bozeman. Ms. Smith stated she thought it was unfair to put so much of the responsibility on the City of Bozeman; she noted the City and County were not part of their hurdles when she and her husband had purchased their business and the most difficult thing for them had been financing. Mr. Mehl thanked Prospera for presenting the Plan. He stated a variety of groups had been contacted and had not decided to participate. He stated the Economic Development Plan’s concern was for the whole of Bozeman and individual task forces would be more specific as to methods and implementation strategies. He noted the balance between the City and the community would be hard to achieve and the Plan was to encourage the City to promote the Plan as a whole. President Caldwell thanked everyone for their time in review and thanked Prospera for their diligent work and time on the taskforce. He noted it was incumbent on the Board for them to track the Community Plan and the implementation strategies with outreach to the public and private sectors to provide methods by which the goals could be implemented. He stated that without a clear indication that the City was ready to promote economic development, it would be difficult to encourage people to participate. MOTION: Mr. Mehl moved, Mr. Sypinski seconded, to forward a recommendation of approval to the City Commission for the Economic Development Plan with detailed Planning Board minutes. Mr. Sypinksi suggested implementing the Economic Plan as an appendix to the Growth Policy, but as that was not possible he suggested references to the Plan be included throughout the document. He suggested discussing the implementation of the Plan into the Growth Policy. President Caldwell asked if the edits as part of the three bullet points in the Staff Memo had been approved by the Commission. Assistant Director Saunders responded he would explain which 306 7 City of Bozeman Planning Board Minutes of June 2, 2009. edits would need to be discussed after the motion had been formalized. Ms. Costakis asked how the objectives in chapter 8 of the Community Plan and the Economic Development Plan would relate. Assistant Director Saunders responded the goals and objectives in the Economic Plan were specific to that Plan and the Growth Policy goals and objectives would meld the two together, though there would be some differences; he added that some crossover language had been proposed. Mr. Becker suggested the resolution of adoption include language for the immediate organization of an advisory board for the Economic Development Plan. Vice President Henyon asked if the Commission would be amenable to the existing Chamber of Commerce committee being that advisory board. Mr. Mehl stated he was in favor of forming the advisory board, the City should form it, and he thought it would be a mistake to highlight that advisory board specifically as the Plan should stand as a whole. The Board concurred that none of the advisory bodies should be specifically required to immediately organize. The motion carried 6-1. Those voting aye being President Caldwell, Ms. Smith, Mr. Becker, Ms. Costakis, Mr. Mehl, and Mr. Sypinski. Those voting nay being Vice President Henyon. Mr. Sypinski suggested the Economic Development Plan should be included as an appendix to the Growth Policy. Assistant Director Saunders responded the Commission had voted on some of the language to be included in Chapter 8 of the Growth Policy and listed those items. He stated that the missing pieces in the Growth Policy to further integrate the Economic Development Plan would be included as a formal amendment to the Growth Policy to include those items and it would have to go through the Commission review process as some of the items had not been included in their previous action. Mr. Mehl asked for clarification of why all of the changes had not been presented to the Commission. Assistant Director Saunders responded the modifications the Commission had approved were amendments that the Commission themselves had requested and listed those amendments; he added that the Planning Board had not reviewed all of the proposed edits in the Economic Development Plan and Staff was allowing time for those to be reviewed as well. The City Commission had not yet received the Economic Development Plan. MOTION: Mr. Mehl moved, Vice President Henyon seconded, to forward a recommendation of approval to the City Commission for the proposed edits to Chapter 8, including clearly identifying the Economic Development Plan, the Downtown Plan, the North 7th Avenue Plan, and the inclusion of TIF’s map and any other extraneous changes staff deems necessary. The motion carried 6-1. Those voting aye being President Caldwell, Vice President Henyon, Mr. Becker, Ms. Costakis, Mr. Mehl, and Mr. Sypinski. Those voting nay being Ms. Smith. President Caldwell stated he had a problem with specific references to the Economic Development Plan sections and chapters throughout the document. Mr. Sypinski suggested referencing the document as a whole instead of sections and chapters. Mr. Mehl suggested a link could be provided to the document for reference instead of distinct chapters and sections. 307 8 City of Bozeman Planning Board Minutes of June 2, 2009. Mr. Sypinski stated the Downtown Neighborhood Plan had not been included in either the Growth Policy or the Economic Development Plan. Vice President Henyon responded references to the Downtown Plan had been included as well as other renewal districts and the North 7th Plan. President Cladwell suggested clearly referencing all the Plans in the front of the Growth Policy. Vice President Henyon stated he was supportive of the proposed amendments. ITEM 6. NEW BUSINESS President Caldwell reminded the Board that Thursday, June 18, 2009 there would be a presentation of the Downtown Plan and suggested members attend. He stated he thought it would be a great opportunity to understand how to help downtown businesses. He noted there would be other presentations and he would forward times and locations to the Board. He reminded the Board of the roundtable discussion with the Commission on Thursday, June 4, 2009. Mr. Mehl asked President Caldwell to poll the members on what they would like to discuss. Vice President Henyon stated he would like feedback on what the future mayor’s agenda would be and suggested it was a matter of predictability. President Caldwell suggested the Board focus their time with the Commission regarding implementation policies of the Growth Policy related to UDO edits. Ms. Costakis asked who had called the meeting. President Caldwell responded he had requested the meeting some time ago. Assistant Director Saunders responded there would be two items on the agenda and he was not sure which item would be first. President Caldwell suggested communication between the City Commission and the Planning Board should be the main topic. Ms. Costakis suggested the meeting should have been discussed quite a while ago if the Planing Board had instigated the meeting; she suggested she would like to discuss in-fill development and the importance of design to make sure the development would fit in and be well done. She added in-fill done right could be a positive; otherwise backlash from the community would be inevitable. President Caldwell concurred that those dialogs would be good for discussion; he noted there would be an opportunity to see how other changes to the code could promote and encourage the Growth Policy. Ms. Smith concurred that the UDO should more strongly support the Growth Policy and should be discussed with the Commission. Ms. Costakis suggested parking be discussed. Assistant Director Saunders responded Staff had already been looking into parking. Mr. Mehl asked for clarification on how the Growth Policy had been adopted; he suggested it seemed that 99% of the document had been approved. Assistant Director Saunders responded Mr. Mehl was close with the 99% adoption and stated there had been a few changes to the map on the east and west ends of Main Street. He noted there had also been a change to rename future urban to present rural. He stated the definition of suburban residential had been changed to include subdivision outside of the City “80% or more built-out”. He stated the Commission had 308 9 City of Bozeman Planning Board Minutes of June 2, 2009. decided that the supermajority vote was too small for a proposed amendment. Mr. Mehl added Mr. Rupp and Mayor Jacobsen had added language. Assistant Director Saunders noted that none of the goals or objectives from the Planning Board had been modified. Mr. Mehl asked Mr. Saunders to explain the contrary votes. Assistant Director Saunders responded the change to residential from future urban near Story Mill Road had prompted two Commissioners to vote in opposition. ITEM 7. ADJOURNMENT Seeing there was no further business before the Board, President Caldwell adjourned the meeting at 9:28 p.m. __________________________________ __________________________________ Brian Caldwell, President Chris Saunders, Assistant Director Planning Board Planning & Community Development City of Bozeman City of Bozeman 309 Chapter 8: Economic Development Intent and Background Bozeman Community Plan Page 8-1 New mixed-use infill building located at 8th Avenue and Main Street Well done signs can be a benefit to both their sponsoring business and the community Downtown is a significant economic asset for Bozeman Post ED plan potential rev. draft CHAPTER 8 Economic Development Economic opportunity is part of the American dream. Bozeman possesses a rich natural heritage, educational opportunities, and an entrepreneurial spirit. As a community, Bozeman endeavors to provide a solid framework within which hard work and personal accountability is rewarded, a high quality community is maintained, and a sustainable economy can thrive. Bozeman’s Economic Values: • Strengthen and further diversify the local economy • Increase economic activity • Create higher paying jobs • Create high quality employment in Bozeman to match the high quality of life • Support our homegrown business community (Source: Bozeman Economic Development Plan) 8.1 Intent 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 an important role in maintaining the quality of life within a city. A strong economy provides economic opportunities to all citizens. It does so through the creation of jobs and business opportunities, funding for schools, police, fire protection, parks and other community facilities, services and amenities. Successful models blend public and private efforts. Bozeman was originally founded as an agricultural community to supply Virginia City and other mining communities. Bozeman has expanded to provide a wide range of economic opportunities and services to a multi-county area. 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 310 Chapter 8: Economic Development Intent and Background within the region, Bozeman has a long benefitted from tourism and services. Like many western communities, Bozeman is undergoing a transition. Agriculture and other extractive industries now employ a smaller percentage of workers than ever before. At the same time, specialty and value-added processors in the area are experiencing significant growth. Bozeman has a varied economic base that has aided in smoothing some of the cyclical boom and bust periods that have affected Montana. Montana State University has been an economic anchor for Bozeman for many years. The role of research as a revenue source is increasing and emphasizes the economic development function of state universities as well as their educational mission. Trade and other economic activities benefit from proximity to other businesses. It is expected that a center-based land use pattern will be supportive to economic development and business activities. The concentration of businesses 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; enable shared parking arrangements; and provide community focal points. This is expected to encourage economic activity by restraining development and transaction costs. The existing Downtown area illustrates these concepts. The original commercial heart of Bozeman, Dowtown remains a significant economic engine in the community. Businesses serve both local needs and visitors in an architecturally rich and historic setting. Significant building additions and redevelopment in the past decade has continued to strengthen the Downtown. An updated plan for the Downtown area is being prepared to continue and further strengthen its vigor and competitiveness. An economy is most beneficial when it benefits the greatest number. Issues such as housing, workforce training, and opportunity for business creation dynamically interact in strengthening economic opportunities. The 2009 Economic Development Plan now being prepared by the Prospera Business Network, has data describing the current economic conditions. Recent changes in economic classification make comparison to historical data difficult. . The Economic Development Plan provides an economic profile of Bozeman and an analysis of major industry sectors. The plan also provides a SWOT analysis of the Bozeman economy and identifies specific goals and strategies for economic development. MSU is a critical component of the Bozeman economy. It provides a substantial economic base through both education and research. 311 Chapter 8: Economic Development Intent and Background Bozeman Community Plan Page 8-3 Employment Sectors, Gallatin County, 2007 · Total Government 7,179 · Retail Trade 7,098 · Construction 6,168 · Accommodation and Food 5,433 · Health Care and Social Assistance 3,355 · Professional and Technical Services 3,288 · Manufacturing 2,635 · Other Services 1,460 · Wholesale Trade 1,364 · Finance and Insurance 1,270 · Recreation, Arts & Entertainment: 1,228 · Information: 632 · Education: 491 · Agriculture, Forestry, Fishing & Hunting: 409 312 Intent and Background Chapter 8: Economic Development Page 8-4 Bozeman Community Plan Bozeman has many recently constructed buildings such as the new retail complex (top), infill auto service, new office and professional services buildings, adaptive reuse of an industrial building (bottom). These have allowed the regional services to strengthen and diversify. The City has also invested in urban renewal plans for the N. 7th Avenue Corridor, the Downtown area, and the Northeast Neighborhood These detailed plans help spur reinvestment and preservation of economic activity and resources. The summer and fall of 2008 saw substantial disruption and change in the US economy. Significant problems originating in residential mortgage lending began a substantial slow down resulting in a recession. Impacts have been seen in many industries. Employment has been significantly impacted. Although Bozeman has not seen the same extremes as some other communities the local community has been affected. 8.2 Major Themes and Related Chapters The following matrix lists the major planning concepts that this chapter addresses and directs readers to other sections of the plan where similar planning concepts are discussed. Chapter Title Planning Concept Diverse Economy Historic Preservation Agriculture Land Uses Sustainability Arts and Culture Public Services Growth & Change X Character & Design X X X X X Historic Preservation X X X X Arts & Culture X X X Housing X X X X Land Use X X X X X X Economic Development X X X X X X X Environmental Quality X X X X Transportation X X X X Services & Facilities X X X Disaster and Emergency X X Bozeman Revolving Loan Fund Since 1987: 24 loans made $4,028,000 loaned As of May 15, 2009: 10 loans in current portfolio $1,347,174 outstanding More than 200 jobs created/retained 313 Chapter 8: Economic Development Major Themes and Related Chapters Bozeman Community Plan Page 8-5 Regional Coordination X X X X 314 Goals and Objectives Chapter 8: Economic Development Page 8-6 Bozeman Community Plan 8.3 Economic Development Goals and Objectives Goal ED-1: Promote and encourage the continued development of Bozeman as a vital economic center. Rationale: Economic vitality supports the social and cultural fabric of the community and provides for physical needs of the citizens. Objective ED-1.1: Support business creation, retention, and expansion. Emphasize small businesses, ‘green’ businesses, and e-businesses. Objective ED-1.2: Coordinate the provision of infrastructure necessary to support economic development. Objective ED-1.3: Foster a positive economic climate through a well managed and aesthetically pleasing built environment, and by maintaining a beautiful and healthy natural environment to promote and attract businesses with a desirable impact on the community. Objective ED-1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state-of- the-art facilities. Objective ED-1.5: Encourage, through the use of incentives, the development of business and industry that provides wages that are proportionate to, or are higher than, the cost of living and provide options to expand skills and opportunities for Bozeman’s workforce. Objective ED-1.6: Utilize the City’s economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. Objective ED-1.7: Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business Network, MSU-Bozeman and others to promote Bozeman. (Source: Bozeman Economic Development Plan) Objective ED-1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. (Source: Bozeman Economic Development Plan) Implementation Policies: 2-6, 10, 12-14, 16, 24, 25, 26, 47-56, 72, 77, 78, 80, 81, 83, 84, 86-88 Bozeman supports economic development through: • A balanced and fiscally sound short and long term City budget and financing approach • Careful planning for future capital needs to avoid crisis situations or moratoria • Supporting historic preservation and adaptive reuse of existing buildings, thereby recognizing the substantial economic asset and investment in them • Providing revolving loans and other financial support for business • Supporting public and private efficiency in its development regulations • Supporting reinvestment in existing areas through urban renewal and tax increment financing options • Minimizing tax burdens by operating many city services on a ‘user- pay’s utility basis so costs are fairly allocated 315 Goals and Objectives Chapter 8: Economic Development Page 8-7 Bozeman Community Plan The Gallatin Farmers Market at the Fairgrounds hosts 200 vendors and 3-6 thousand people on single Saturday. Photo © Career Transitions Bozeman Deaconess Hospital and related medical services are a regional draw. ILX Lightwave and West Paw Design are examples of local manufacturers which serve a national clientele. Goal ED-2: Support balanced policies and programs to encourage a durable, vigorous, and diverse economy. Rationale: A lack of balance in economic policy can lead to loss of community viability by sacrificing high long term value community assets for short term, “quick fix” benefits. It is important to recognize the economic importance of the social, cultural, and natural assets of Bozeman. Objective ED-2.1 Support the preservation of agricultural lands and activities and a viable agricultural community, including community supported agriculture, as an important economic sector in the Gallatin Valley. Objective ED-2.2: Support the preservation of Gallatin County’s historic agricultural character and rural lifestyle. Objective ED-2.3: Ensure the viability of agricultural land uses by protecting water sources used for irrigation. Objective ED-2.4: Foster a diverse economy that will protect the economic climate for existing businesses and maintain opportunities for business expansion. Objective ED-2.5: Participate in the growing regional economy in a manner that minimizes conflict between jurisdictions and that maximizes natural market strengths. Objective ED-2.6: Maintain a strong financial position for the City of Bozeman. Objective ED-2.7: Support Montana State University in its educational and research mission, which contributes to the local and state economy. Objective ED-2.8: Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business. (Source: Bozeman Economic Development Plan) Objective ED-2.9: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth. (Source: Bozeman Economic Development Plan) (Implementation Policies: 9, 13, 30, 47-53, 56, 61, 62, 64, 75-77, 89-91 316 Goals and Objectives Chapter 8: Economic Development Page 8-8 Bozeman Community Plan Goal ED-3: Recognize the importance of quality of life elements in attracting and developing economic activity. Rationale: High cultural, educational, and outdoor recreational values are commonly cited reasons for people to visit or live in Bozeman. Protecting and building upon existing strong assets leverages other efforts for economic development. A strong sense of shared community values and mutual support creates a good environment for business and workers to succeed. Objective ED-3.1: Build upon existing cultural assets such as historic districts, parks, arts festivals, the arts community, and MSU to strengthen the local economy. Objective ED-3.2: Encourage sustainable development to minimize costs to businesses and customers and protect quality of life. Objective ED-3.3: Encourage businesses to be good stewards and contributors to the community, including participating in public/private partnerships to meet community needs. Implementation Policies: 9, 12, 13, 24, 47, 53, 54-56 8.4 Economic Development Future Activities The Bozeman Economic Development Plan provides strong direction for economic development. This plan should be utilized to implement policies and practices that support Bozeman’s economic growth. The plan should be revisited and amended regularly in the future. The City’s economic development activities will incorporate the additional information and recommendations from the comprehensive plan. The Downtown Improvement Plan and N. 7th Corridor plans will give additional guidance to reinvestment and redevelopment in those areas The continued growth and development of Bozeman will rely on many factors. Cooperation and coordination between public and private entities and many individuals will be needed. Economic development is to benefit the citizens of the community and needs to be in harmony with values. Bozeman is well positioned for continued economic development due to: • Educated and well trained work force • Quality primary and secondary education in the community Cultural events and activities enrich our economy. Photos © Sweetpea Festival of the Arts 317 Chapter 8: Economic Development Goals and Objectives Bozeman Community Plan Page 8-9 318 Economic Development Future Activities Chapter 8 Page 8-10 Bozeman Community Plan • Effective transportation connections to the national economy • Entrepreneurial support through local government and non- profits • Diverse economic sectors • Research and technology transfer from Montana State University • Excellent air service at Gallatin Field • Beautiful natural setting and close proximity to world class recreation Gallatin Field gives Bozeman good access to national and international economic activity and supports a healthy local economy. After (2008- top) and before (2000 - bottom) panorama of E. Main Street infill and redevelopment Bozeman Business Licenses, 2007 • 2,725 Renewed • 565 New Approved 319