HomeMy WebLinkAbout10- Downtown Bozeman Tax Increment Financing District Administing Impact Fees DO tOWN
B 0 Z E M A N
MEMORANDUM OF UNDERSTANDING
Between the Downtown Bozeman Tax Increment Financing District
and the City of Bozeman for the Administration of Payments of Impact Fees for Properties
Affected by the March 5, 2009 Explosion
This Memorandum of Understanding is entered into this T day of
2010, between the City of Bozeman, Montana, (the "City with principle offices bcated at
121 North Rouse Ave, Bozeman, MT, 59715, and the Downtown Tax Increment Financing
District (the "District with its principle offices located at 224 East Main St., Bozeman, MT
59715.
The City and the District hereby agree on the following findings:
WHEREAS, the March 5, 2009 natural gas explosion and subsequent fire in
downtown Bozeman destroyed buildings located on six properties in the 200 block of Main
Street, resulting in significant adverse economic impact to the heart of historic downtown
Bozeman; and
WHEREAS, the Board of Directors for the District determines it is in the best interest
of the District and the City to assist in the mitigation of impact fees for those affected by the
explosion as those properties are redeveloped; and
WHEREAS, the District and its Board are directed by 7 -15 -4209, MCA, to "utilize
appropriate private and public resources to encourage needed urban rehabilitation and to
provide for the redevelopment of such areas; and
WHEREAS, 7 -15- 4288(4), MCA, authorizes that tax increment funds may be used
to pay costs of or incurred in connection with an urban renewal project for construction and
improvement of infrastructure.
NOW THEREFORE, based on the above findings, the City and District mutually agree as
follows:
1. The District shall use tax increment financing money to make payments to the City to
mitigate financial impacts associated with redeveloping properties destroyed in the
March 5, 2009 explosion. Oversight of the mitigation payments shall be by the
District's board of directors.
MEMORANDUM OF UNDERSTANDING
Between the Downtown Bozeman Tax Increment Finance District and the City of Bozeman for the Creation of and Administration of the "200
Block Downtown Impact Fee Mitigation Fund"
Page I of 2
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2. The City of Bozeman Planning Director, upon receipt of a request from an owner of
one of the six properties designated herein for assistance with the payment of
impacts fees, shall calculate the amount of impact fees owed by the property owner
and forward the request to the City of Bozeman Finance Director who shall
administer the mitigation payments for impact fees on behalf of the District.
3. The City of Bozeman Finance Director shall make payments out of the District's
account until the amount available is exhausted or all properties have paid impact
fees for a redevelopment project, whichever is sooner, and shall report all payments
made to the executive director of the District. Payments shall be made on a first
come first served basis. If funds are not available when a request for mitigation is
made, the parties understand mitigation of the amount of impact fees owed may not
be possible.
4. The money available for impact fee mitigation is comprised of any funds the District
or the City may place into the District's account as authorized by law.
5. The six properties eligible for these payments are enumerated 2, 3, 4, 5, 6 and 7 on
the attached map, which is included in this Memorandum, and the corresponding
street addresses are as follows:
Map ID Address Previous Business
#2 209, 211 East Main Street (Pickle Barrel, Rockin' R Bar)
#3 215 East Main Street (Boodles)
#4 219 East Main Street (Montana Trails Gallery)
#5 221, 223 East Main Street (Lilly Lu, Toltsted Architects)
#6 225 East Main Street (American Legion)
#7 229, 231, 233 East Main Street (Starky's Deli, 2 floor apartments, RM Toy Co.)
6. The District and the City agree the terms of this Memorandum will remain in effect
until January 1, 2013 unless modified, terminated, or extended by the parties in
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Chris Naumann Date
Executive Director
Downtown Tax Increment Finance District
C�� X t- [9 10
Chris Kukulski Date
City Manager
City of Bozeman
MEMORANDUM OF UNDERSTANDING
Between the Downtown Bozeman Tax Increment Finance District and the City of Bozeman for the Creation of and Administration of the "200
Block Downtown Impact Fee Mitigation Fund"
Page 2 of 2
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