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HomeMy WebLinkAbout12-15-09 Downtown Tax Increment Finance Minutes Downtown Tax Increment Finance Board Meeting Minutes 12/15/09 Attending: Bobby Bear, Peter Bertelsen, Vonda Laird, Bob Lashaway, Bill Stoddart Chris Naumann Absent: Thail Davis Public Comments None Disclosures None Minutes ACTION:Bob Lashaway motioned to accept the minutes from October 2009. Peter Bertelsen seconded the motion. All voted in favor. Financial Report Chris outlined recent financial activity for the TIF account. He noted that the budget column now correctly reflects the increment income ($1,060,000) and the COB interlocal share ($33,453). The only expenditures in the past month included some expenses for replacing burned out bulbs of the pedestrian street lamps. Program Director’s Report None Presented Executive Director’s Report Tax Increment Finance District Board Downtown Improvement Plan th On December 14, the Bozeman City Commission unanimously voted to adopt the 2009 Downtown Bozeman Improvement Plan. The Commissioners praised the hard work of the Downtown Partnership, the advisory committee and the downtown boards for developing the plan with considerable public involvement and input. Currently, the TIF has $50,000 allocated in the FY2010 budget for implementation of the Downtown Plan. The Plan stipulates a series of “Next Steps” that represent a work plan of sorts. In early 2010, I will begin strategizing on how and when to initiate each “Next Step”. TIF Interlocal Agreement Update The City of Bozeman, Gallatin County, and Bozeman School District have signed the “Letter of Understanding regarding the Downtown TIF District for FY2010 and FY2011”. The LOU stipulates that the TIF will retain the increment dollars below the $1,060,000 inflation adjusted cap and the dollar above the cap will be distributed back to the City, County and School District on a pro-rata basis according to current year mill levies. The City of Bozeman has pledged their share of the pro-rata excess to the TIF which will be $33,453 for FY2010. Advisory Board Financial Disclosure The City of Bozeman will be requiring the members of certain Citizen Advisory Boards complete financial disclosure statements in an effort to transparently avoid conflicts of interest. The following boards will be required to complete disclosures: Downtown Tax Increment Finance Board, Downtown Business Improvement District Board, Parking Commission, Library Board, Board of Adjustments, and Park and Recreation Board. The City Clerk’s Office will be sending out information packets including the disclosure form shortly after the New Year. DBP Office Sublease Effective December 1, 2009 Prospera Business Network has leased the vacant office from the Downtown Partnership. Prospera and DBP will share the use of the conference room. The monthly rent is $300. This lease will yield $2100 in revenue over the remainder of this fiscal year. The DBP plans to purchase new chairs for the conference room with a small portion of these revenues. School District Presentation A representative from BSD7 will provide the TIF board with a presentation regarding future school district plans at the January TIF Board meeting. Entitled “Opportunities, Planning and Challenges”, the presentation will take approximately 30 minutes. Discussion and Decision Items TIF Interlocal Agreement The following comments were made during Chris’s presentation of the ED report: Bobby informed the group that there was discussion at the TIF interlocal meeting that all parties would consider permitting the TIF to keep all of the increment if it were to be invested in a joint project that would benefit the City, School District and the County. Chris indicated that one hypothetical example would be redeveloping the old Willson School. Bob reminded the board that that particular project would be extremely expensive and perhaps too ambitious for the TIF. Chris mentioned that he and Bobby had briefly discussed offering to help BSD7 with their upcoming Hawthorne School improvement in light of the recent TIF Interlocal Letter of Understanding. Chris offered that next month’s BSD7 presentation to the board might provide insight on just how the TIF could help. Downtown Explosion Recovery Appropriations The City of Bozeman has been awarded two federal appropriations for the recovery and reconstruction related to the March 5, 2009 explosion. The first is a Save America’s Treasures (SAT) grant from the National Park Service for $150,000.00 that can be used to repair and/or preserve any of the historic properties damaged by the explosion and fire. The second is a $974,000.00 appropriation for the reconstruction of buildings at the site of the explosion and fire that will most likely be administered by Housing and Urban Development Department (HUD). Chris said both appropriations are the result of an application submitted by the City of Bozeman th immediately after the March 5 explosion. He will coordinate with the City of Bozeman to establish how these appropriations will be administered and disbursed. Downtown Explosion Site Impact Fees Chris updated the board that the Commission would rather that the NorthWestern Energy $50,000.00 not be accepted by the TIF as it is a financial entity of the City. Bobby reminded the board that the City cannot just waive the fees as they are currently in a lawsuit involving such a situation. Chris told the board that he studied that TIF MCA and consulted with Greg Krueger (Billings TIF Director) to determine that the TIF has the power to pay impact fees in an effort to encourage redevelopment and reduce blight. Bill asked if there was any liability, political or otherwise, to the TIF paying COB fees or taxes. He went on to ask if COB fees could be paid from a COB account like the TIF. Bill continued by asking if there would be any conflict of contributing to a private project. Chris responded that impact fees go to pay for public infrastructure improvements such as streets, water/sewer, etc. TIF funds can be used to pay for the public portions of private projects. Bob added that he thought paying the impact fees associated with the blast were justified for two other reasons: encouraging timely reconstruction and improving the tax base by assisting reconstruction of lost buildings. Vonda voiced her concerns that other property owners would be concerned and/or want the TIF to pay their impact fees. Bobby concluded that the TIF would justify paying these impact fees due to the disastrous explosion that would preclude others from demanding the same. ACTION:Bob Lashaway motioned to instruct Chris to write a letter of intent to the City of Bozeman expressing the TIF Board’s willingness to pay the impact fees of the properties directly impacted by the March 5, 2009 explosion as allowed by state TIF statute. Bobby Bear seconded the motion. Bob, Bobby and Peter voted in favor. Vonda abstained. With no future or old business to discuss, Bobby adjourned the meeting.