HomeMy WebLinkAboutOrdinance 91- 1336, Tax increment financing industrial district program
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ORDINANCE NO.
1336
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AN ORDINANCE
OF THE CITY
COMMISSION OF THE CITY
OF
BOZEMAN,
MONTANA, ESTABLISHING
A TAX
INCREMENT
FINANCING
INDUSTRIAL DISTRICT
PROGRAM TO ASSIST IN
FINANCING
NECESSARY INDUSTRIAL INFRAST
RUCTURE
TO
ENCOURAGE
THE ATTRACTION, GROWTH,
AND
RETENTION OF
SECONDARY
VALUE ADDING
INDUSTRIES; PROVIDING FOR
DEFINITION
OF TERMS; AND
ESTABLISHING THE COSTS WHICH
MAY
BE PAID BY TAX
INCREMENT FINANCING
INDUSTRIAL
DISTRICTS.
WHEREAS,
the City of Bozeman,
Montana is defined
as a
municipality for the purpose
of an industrial district created
pursuant to 7-15-4297 through 7-15-4299,
M. C.A.; and
WHEREAS,
the City of Bozeman,
Montana wishes to encourage
the attraction
and retention
of secondary
value-adding
industries; and
WHEREAS,
secondary industries includi
ng warehousing,
distribution and transportation industries and other value-adding
industries require expensive
infrastructure improvements
which
are beyond the
available resources of
the City
of Bozeman,
Montana to provide; and
WHEREAS,
the City of
Bozeman, Montana
is authorized,
pursuant to 7-15-4299, M.
C .A., to create
tax increment financing
industrial districts.
NOW, THEREFORE, BE
IT ORDAINED by
the Bozeman City
commission as follows:
section 1.--Definitions
The following words and phrases used in this Ordinance
shall
be defined as follows:
( a)
"ACTUAL TAXABLE VALUE"
means the taxable
value of
taxable property at any time,
as calculated
from the assessment
role last equalized.
(b)
"BASE TAXABLE VALUE" means the actual taxable value of
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.r all taxable property
within an urban renewal area or industrial
district prior to the effective date of a tax increment
financing
provision.
This value may be adjusted as provided in 7-15-4287
or 7-15-4293 M.C.A..
( c )
"INCREMENTAL TAXABLE VALUE" means the amount,
if any,
by which
the actual taxable value at any time
exceeds the base
taxable value of all property within a tax increment
financing
industrial district.
(d)
"INDUSTRIAL DISTRICT" means a tax increment
financing
industrial district created pursuant to 7-15-4299 M.C.A..
( e )
"INDUSTRIAL INFRASTRUCTURE DEVELOPMENT PROJECT" means a
project undertaken
within or for
an industrial district that
consists of any or all of the activities authorized
by 7-15-4288
M.C.A. .
( f )
"TAX INCREMENT" means the collections
realized from
extending
the tax levies, expressed in
mills, of all
taxing
bodies
in which the industrial district or
a part thereof is
located against the incremental taxable value.
( g)
"TAX INCREMENT PROVISION" means a
provision for the
segregation and application of tax increments as authorized
by 7-
15-4282 through 7-15-4292 M.C.A..
(h)
"TAXES" means all taxes levied by a taxing body against
property on an ad valorem basis.
Section 2.--Creation of Industrial Development Districts
( a)
The City Commission may, from time to
time, create by
ordinance a tax increment financing industrial district
following
a public hearing on the proposed district.
In order for land
to
be included in the proposed district,
it must:
( 1 ) consist of
a continuous area with an accurately
described boundary;
( 2 ) not be contained within the
boundaries of another
industrial
district or an urban renewal district
with a tax increment provision;
( 3 ) be zoned
for light or heavy
industrial use in
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accordance with the Bozeman Area Master Plan;
/ ( 4 )
be determined to
be deficient in infrastructure
improvements
for industrial development.
(b) The
industrial district must have
as its purpose the
development of
infrastructure
to encourage
the growth and
retention of secondary,
value-added industries.
( c ) Notice
of the public hearing
on the creation of a
proposed industrial district shall
be given in accordance with
the provisions of Section 7-15-4215,
M.C.A.
section 3. -- Costs Which May Be Paid
from Tax Increments
The tax increment received
from an industrial district may
be used to pay for the following costs
incurred for an industrial
infrastructure development project
(in that district);
( 1 ) land acquisition;
( 2 ) demolition and removal of structures;
( 3 ) relocation of occupants;
( 4 ) the
acquisition, construction,
and improvement
of
infrastructure or industrial
infrastructure,
which includes
streets, roads,
curbs, gutters,
sidewalks, pedestrian malls,
alleys, parking
lots and
off-street parking facilities,
sewers, sewer
lines, sewage treatment
facilities, storm
sewers, waterlines,
waterways, water
treatment facilities,
natural gas
lines, electrical
lines, telecommunication
lines, rail
lines, rail
spurs, bridges,
publicly owned
buildings, and any public
improvements authorized by 7-12-41
through 7-12-45,
7-13-42,7-13-43, and
7-14-47, M. C.A.,
and
items of
personal property to be
used in connection with
improvements for which the foregoing
costs may be incurred;
( 5 ) costs
incurred in connection with
the redevelopment
activities allowed under 7-15-4233,
M. C.A.;
( 6 )
acquisition of
infrastructure-deficient areas
or
portions thereof;
( 7 ) administrative costs
associated with the management of
the industrial district;
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( 8 ) assem
blage of land for development or redevelopment by
private
enterprises or public
agencies including
sale,
initial leasing,
or retention by the
municipality itself at
its fair value;
( 9 ) the
compilation and analysis of pertinent
information
required to adequately determine the infrastructure
needs of
secondary,
value-adding industries
in the
industrial
districti
(10 ) the
connection of the industrial district to existing
infrastructure outside the industrial districti
and
( 11 )
the provision of direct assistance, through industrial
infrastructure
development projects, to secondary,
value-
adding industries to assist in meeting their
infrastructure
and land needs within the industrial district.
Section 4.--Use of Tax Increments
for Bond payments
The tax increments received
may be pledged for the payment
of the principal of premiums,
if any, and interest on bonds which
the city of Bozeman may issue
for the purpose of providing funds
to pay for costs accrued pursuant to Section 3 of this
Ordinance.
Section 5.--Contents of Ordinance
Each ordinance creating a tax increment financing industrial
district shall:
( a)
designate each tax
increment financing district by
numberi
(b)
set forth a legal description of and map
showing the
boundaries of the industrial district;
( c ) inclu
de a plan'
that describes the
tax increment
industrial
development project and contains provisions for
undertaking and implementing the project;
and
( d)
establish the base
year for the calculation of tax
increment within the industrial district.
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/
section
6.--Term of the
Tax Increment Financing
Industrial
District.
Tax increment Financing Industrial Districts will terminate
upon the later of:
( a) the fifteenth
year following the creation
of the
industrial district; or
(b) the payment
or provision for payment
in full or
discharge of all bonds for which the tax increment has been
pledged and the interest thereon;
After termination of the tax increment financing provision,
all taxes shall
be levied upon the actual taxable value of
the
taxable property
in the industrial district
and shall be paid
into
funds of the
taxing bodies levying
taxes within the
industrial district.
section 7.--Administration
The tax increment financing program created herein shall be
administered by
the Bozeman city
commission. The
Commission
shall be
advised on matters pertaining
to the program by the
Bozeman Tax Increment Financing Industrial District
Board created
pursuant to Ordinance No.
1337.
PROVISIONALLY PASSED AND ADOPTED by the City Commission
of
the city of Bozeman,
Montana, at its meeting held on the 21st day
of october,
1991.
RO
ATTEST:
V~
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ROBIN L.
SULLIVAN
clerk of the Commission
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FINALLY PASSED AND ADOPTED by the
city commission of the
City
of Bozeman, Montana, at its meeting
held on the 4th day
of
November , 1991.
ATTEST:
(2~..L~
Clerk of the Commission
B UCE
E. BECKER
City
Attorney
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