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HomeMy WebLinkAboutCommission Resolution No. 4196, Adoption of amended Chapter 8 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, August 3, 2009 AGENDA ITEM TYPE: Action RECOMMENDATION: If the Economic Development Plan is adopted by Commission Resolution 4195, then approve the draft revisions to Chapter 8 through Commission Resolution 4196. 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 considered at public hearing on the document. The Planning Board recommended some amendments to Chapter 8 to help ensure compatibility between the growth policy and economic development plan. 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. The Commission directed preparation of an adopting resolution for the changes to Chapter 8. The resolution and final draft are attached to this memo. FISCAL EFFECTS: None anticipated ALTERNATIVES: As suggested by the City Commission. Attachments: Revised Chapter 8, Bozeman Community Plan Commission Resolution 4196 Report compiled on: July 29, 2009 301 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 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 within the region, Bozeman has a long benefitted from tourism and services. 302 Intent and Background Chapter 8: Economic Development Page 8-2 Bozeman Community Plan 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 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. 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: 409 303 Chapter 8: Economic Development Major Themes and Related Chapters Bozeman Community Plan Page 8-3 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 Regional Coordination X X 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 304 Goals and Objectives Chapter 8: Economic Development Page 8-4 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 305 Chapter 8: Economic Development Goals and Objectives Bozeman Community Plan Page 8-5 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, 89-91 306 Economic Development Future Activities Chapter 8: Economic Development Page 8-6 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 307 Chapter 8: Economic Development Economic Development Future Activities Bozeman Community Plan Page 8-7 • 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 308 1 COMMISSION RESOLUTION NO. 4196 A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN ADOPTING A REVISED CHAPTER 8, ECONOMIC DEVELOPMENT IN THE BOZEMAN COMMUNITY PLAN, A GROWTH POLICY, AS ALLOWED BY TITLE 76, CHAPTER 1, PART 6, MONTANA CODE ANNOTATED (M.C.A.) 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 City Commission adopted the Bozeman Community Plan on June 1, 2009 by Resolution 4163; and WHEREAS, the City of Bozeman retained Prospera Business Network to prepare an Economic Development plan for the City; and WHEREAS, Prospera Business Network prepared the plan for the City which was made available for public review and public notice was provided to inform the public of the opportunity to review and comment on the draft; and WHEREAS, the City of Bozeman Planning Board held a public hearing on Tuesday, June 2, 2009, to receive and review all written and oral testimony on the economic development plan and how it would integrate with the growth policy; and 2 WHEREAS, Staff and Prospera Business Network presented the Economic Development Plan and associated revisions to Chapter 8, Economic Development, Bozeman Community Plan, and answered questions for the Planning Board after which the public was invited to give testimony; and WHEREAS, no public comments were provided orally or in writing; and WHEREAS, the City of Bozeman Planning Board having provided a publicly noticed opportunity for comment and receiving none, the Planning Board closed the public hearing; and WHEREAS, the Planning Board discussed the Economic Development Plan and how it could be integrated into the growth policy; and WHEREAS, the Planning Board found the suggested revisions to Chapter 8, Economic Development consistent with the locally adopted criteria for amending the growth policy and consistent with the other elements of the growth policy; and WHEREAS, a motion was made to recommend approval of the growth policy with changes as directed by the Planning Board; and WHEREAS, City of Bozeman Planning Board on a vote of 6 to 1, recommended adoption by the Bozeman City Commission of the revisions to Chapter 8, BCP; and WHEREAS, The City Commission adopted Resolution 4174 stating their intent to consider an amendment to the growth policy and setting a public hearing for July 20, 2009; and WHEREAS, as required by statute, a public hearing was advertised to be held on July 20, 2009, before the City Commission to consider the Planning Board recommendation and accept public testimony regarding the updated growth policy; and 3 WHEREAS, the advertised public hearing was held on July 20, 2009 before the City Commission to consider the Planning Board recommendation and accept public testimony regarding the updated growth policy; and WHEREAS, the City Commission being fully informed and having considered all relevant matter and review criteria. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that: Section 1 That pursuant to Title 76, Chapter 1, Part 6, MCA and Chapter 17 of the Bozeman Community Plan it adopts the revised Chapter 8, Economic Development, of the Bozeman Community Plan and that the document shall be as follows: See Exhibit A. Section 2 Severability. If any provision of this growth policy or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect the other provisions of this growth policy which may be given effect without the invalid provision or application and, to this end, the provisions of this growth policy are declared to be severable. Section 3 Effective Date. This revised growth policy shall be in full force and effect upon passage. 4 DATED this 3rd day of August, 2009. KAAREN JACOBSON Mayor ATTEST: ____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN Bozeman City Attorney