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HomeMy WebLinkAbout30,878 from the Development Impacts (Big Box) Funds.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Jeff Krauss, Mayor SUBJECT: Approve $30,878 from the Development Impacts (Big Box) Fund for the Reconstruction of the American Legion, Gallatin Post 14. MEETING DATE: April 26, 2010 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve $30,878 from the Development Impacts (Big Box) Fund for the Reconstruction of the American Legion, Gallatin Post 14. BACKGROUND: Members of the American Legion, Gallatin Post 14 participated in our meetings for the Housing & Urban Development, Economic Development Initiative (HUD-EDI) grant assistance for reconstruction of explosion-damaged properties. They made formal application to receive HUD-EDI funding. Unfortunately, due to HUD timing requirements and the fact that the Legion would need to stop construction for in indeterminate amount of time, we did not include their request in the City’s HUD grant. The Legion building reconstruction is an important first step in repairing the catastrophic damage on Main Street. It was the first of the damaged sites to submit a redevelopment application, the first to be approved, and the first to begin construction. They continue to express the need for financial assistance for their project. For that reason, it is recommended that they be considered to receive the remaining Big Box funds that are dedicated to economic development. UNRESOLVED ISSUES: None. ALTERNATIVES: Could deny this request; look to find other funding sources or none at all. FISCAL EFFECTS: The final amount of unallocated Development Impacts dollars related to economic development, $30,878, would be disbursed to the American Legion, Gallatin Post 14. The FY10 budget includes the authority to spend these dollars, so a budget amendment would not be necessary. Attachments: Development Impacts Fund Report Report compiled on: April 19, 2010 327 The Development Impacts (Big Box) Fund accounts for the dollars the City receives to mitigate impacts related to large-scale retail developments. In 2002 Home Depot paid $500,000 for impacts related to their project. $100,000 was submitted directly to Farmhouse Partners for affordable housing. $400,000 was deposited with the City. The fund has also received $450,000 from Wal-Mart and $500,000 from Lowes. We don’t anticipate re- ceiving dollars from other develop- ments in the near future. Development Impact dollars will total $1,450,000 (with $100,000 going directly to Farm- house Partners). $132,000 has been earned in interest since 2002. See below for the program commit- ments made, to date. After these com- mitments, there remains a total of ap- proximately $176,000 uncommitted. In August 2007, the Commission es- tablished specific grant criteria for Af- fordable Housing requests. Farmhouse Partners, the Road Home Project and Habitat for Humanity have received funding. The uncommitted balance for affordable housing projects is $145,481. In August 2008, the Commission took action to commit most of the Eco- nomic Development dollars to specific projects. A number of projects were funded. The balance of Big Box money that remains uncommitted for Economic Development is $30.878. See reverse for project descriptions. Affordable Housing Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Lowes FY07-FY09 $250,000 Interest Earnings to date $ 65,878 Total Revenues: $790,878 Affordable Housing Commitments: Farmhouse Partners - submitted directly: FY03 $100,000 The Road Home Project: FY04 $100,000 The Road Home Project: FY05 $100,000 The Road Home Project FY08 $200,000 The Road Home Project FY10 $100,000 Habitat for Humanity FY10 $ 45,397 Total Commitments: $645,397 Uncommitted Dollars: $ 145,481 Development Impacts Fund (Big Box Fund) ISSUED: MARCH 31, 2010 CITY FINANCE DEPARTMENT, ANNA ROSENBERRY, DIRECTOR Revenue & Commitments Narrative of the Big Box Fund Economic Development Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Lowes FY07-FY09 $250,000 Interest Earnings to date $ 65,878 Total Revenues: $790,878 Economic Development Commitments: GVIBA FY03 $ 25,000 N 7th Design Plan: FY05-FY08 $ 68,000 Gallatin Ice Foundation Arena: FY07 $300,000 Economic Development Plan FY09 $ 25,000 Rocky Mtn. RC&D Loan Fund FY09 $ 60,000 Downtown Neighborhood Plan FY09 $ 50,000 North 7th TIF Improvements FY09 $232,000 Total Commitments: $760,000 Uncommitted Dollars: $ 30,878 Affordable Housing Economic Development 328 PAGE 2 DEVELOPMENT IMPACTS FUND Affordable Housing—Projects Farmhouse Partners: In 2001, Home Depot contributed $100,000 directly to an existing Farmhouse Part- ner’s Affordable Housing project. The money allowed Farmhouse to re-pay an outstanding $50,000 loan from the Community Affordable House Advisory Board, saving the project interest costs. The other $50,000 was used to subsi- dize the rents for four to eight units, allowing them to be rented to tenants earning as-low-as 40% of Area Median In- come, a market that the program was normally unable to reach without assistance. The Road Home: In November 2003, the City gave $100,000 to affordable housing down-payment assistance via HRDC’s “The Road Home” program. The City dollars were part of a local match for a $500,000 CDBG grant that provided services to persons/families earning 60%-80% of Area Median Income. In January 2005, HRDC was granted an additional $100,000, and in September 2007 - $200,000, and in October 2009 - $100,000. “The Road Home” pro- vides education, counseling and assistance with loan packages, as well as down-payment assistance dollars. Economic Development—Projects GVIBA: In FY2003, the City awarded $25,000 of Economic Development dollars to the Gallatin Valley Independent Business Alliance (GVIBA). Its mission is “to promote locally owned independent businesses in order to preserve the Gallatin Valley’s unique character.” GVIBA is know for its “Buy Local, You Bet” campaign. City dollars were allocated to their website www.gviba.org, brochures, a membership directory, and print, television & radio ads. N 7th Design & Connectivity Plan: In June 2005, the Commission funded the Design and Connectivity Plan for North Seventh Avenue. The actual cost of the plan was $68,000. At the time the Plan was funded, it was intended that the docu- ment provide the design framework for further improvements to the area in conjunction with an anticipated TIF district for N. 7th Avenue and for the development of CTEP projects along the corridor. Gallatin Ice Foundation Arena: In October 2006, the Commission approved the Foundation’s request for $300,000: $125,000 to improve the existing Haynes Ice Pavilion at the Fairgrounds, and $175,000 for the future construction of an additional Ice Arena adjacent to Haynes. The money is disbursed once it is matched dollar-for-dollar by local pledges raised by the Foundation, with the $125,000 for the existing pavilion paid in 2007. The project anticipates providing increased commercial op- portunities city-wide, and be a magnet for increased development and investment in the general vicinity of the Fairgrounds. Economic Development Plan: In August 2008, the Commission approved Prospera Business Network’s request to fund a comprehensive Economic Development Plan for inclusion in the City’s growth policy. An award of $25,000 was made, funding a 50% of the project costs. Prospera Business Network matched the city’s share. Downtown Neighborhood Plan: In August 2008, the Commission approved the Dowtown Business Partner- ship’s request to fund the creation of a neighborhood plan for the Downtown area (now called the Downtown Bozeman Improve- ment Plan). An award of $50,000 was made, with the Partnership contributing matching dollars. Rocky Mountain RC&D Loan Fund: In August 2008, the Commission approved the Rocky Mountain RC&D’s request to fund the creation of the Big Sky Energy Revolving Loan Fund. The purpose of the fund is to provide a flexible financing tool for investment in energy projects. Funds target projects that result in significant energy efficiency, conservation and green en- ergy development. The City contributed $60,000 for creation of the fund. N 7th TIF Infrastructure: In August 2008, the Commission approved the Tax Increment Financing Dis- trict’s (TIF) request for dollars to dedicate to infrastructure improvements in the N 7th area, as described in the N 7th Design & Connectivity Plan that was previously funded. An award of $232,000 was made to the TIF district, to be combined with other TIF dollars for infrastructure improvements. Habitat for Humanity: In March 2010, the City awarded Habitat for Humanity $45,397 to assist in the con- struction of four affordable townhomes at 2721 and 2731 Hedgerow Court. 329