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HomeMy WebLinkAboutNorth Seventh Urban Renewal Board Annual Work Plan and Budget.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Michelle Wolfe, Board Chair Keri Thorpe, Assistant Planner Chris Saunders, Interim Planning Director Chris Kukulski, City Manager SUBJECT: Annual Work Plan and Budget for the North 7th Urban Renewal Board (NSURB) MEETING DATE: July 19, 2010 AGENDA ITEM TYPE: Action Item RECOMMENDATION: Consider a motion to approve the Annual Work Plan and Fiscal Year 2011 Budget for the North 7th Urban Renewal Board. BACKGROUND: The North 7th Urban Renewal Board proposes a Work Plan and Budget on an annual basis. See attached NSURB Budget FY11 and supporting documents for Fiscal Year 2011. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Fiscal effects are described in the proposed budget Attachments: NSURB Annual Budget FY 2011 Ordinance No. 1685- North 7th Ave Urban Renewal District Plan Design and Connectivity Plan for N. 7th Avenue Corridor available at www.bozeman.net Report compiled on: July 14, 2010 142 Page 1 of 4 Tax Increment Financing District Fund Expenditure Plan 2011 for the North Seventh Urban Renewal District In November 2006, the City of Bozeman designated a Tax Increment Redevelopment Area (TIF), under which incremental increases in taxes due to redevelopment are accumulated in a TIF fund. The stated goals and objectives of this Redevelopment Plan were as follows: MISSION VISION This Plan is the city’s response to remedy the conditions of blight found in the August 2005 report through thoughtful redevelopment of the Corridor. The following Corridor Goals are taken from the Design and Connectivity Plan (DCP). An expanded description of the intent of each goal is found in the DCP Chapter 2. Corridor Goals A basic goal is to have an active and exciting corridor that is attractive with a distinct character. A strategy for achieving this goal is to improve the experience for the user by creating safe attractive walkways and streets and by providing buildings and landscaping that are of interest to users and passersby. Several key strategies should be followed: 1. Provide a distinct identity for the corridor 2. Develop the corridor as a focus for commercial and entertainment activities that serve residents and visitors alike 3. Strengthen the corridor as a neighborhood service center 4. Provide mixed use development 5. Clearly define gateways at key locations along the corridor 6. Improve vehicular, bicycle and pedestrian circulation along the corridor 7. Provide pedestrian connections to adjacent neighborhoods 8. Establish a way-finding system 9. Guide new development along the corridor such that it improves the aesthetic experience 10. Coordinate public and private improvements 11. Strengthen connections between complementary uses 12. Provide flexible public space along the corridor GUIDING PRINCIPLES In addition to the specifically stated goals for the District the following Guiding Principles have been adopted to provide a basis for decision making over the life of the District. These principles should be applied to any development program or other activity that will affect the District: 1. Ensure the health safety and security of the District 2. Balance commerce and livability in the District within the mixed use framework 3. Public open space is essential to a healthy and appealing urban environment 143 Page 2 of 4 4. The costs of projects and programs shall be weighed against their benefits to the District 5. Private property shall not be acquired for other private use through the eminent domain process in the implementation of any aspect of this plan 6. The City shall not limit its vision for the District improvements to monies available solely through the TIF funding 7. Projects shall consider impacts on adjacent neighborhoods 8. The city shall consider the impact on the District of all projects undertaken outside of the District LAST YEAR’S PLAN 2010 WORK PLAN AND BUDGET 2010 expenditure plan TIF Other Expenditures Balance 07/01/09 93,316 93,316 Interest 1,000 1,000 TIF allocation on 12/31/09 45,000 45,000 Big Box Funds 232,000 232,000 Community block grant1 16,100 16,100 Total Revenue Available 139,316 248,100 387,416 Engineering plan, professional contract with Allied 50,000 100,000 150,000 Subsidy program2 33,329 33,329 Demolition program3 22,500 22,500 Part time staff and other professional services 10,829 10,829 Public right-of-way improvements4 10,829 10,829 Construction – Lights, Curb and Gutter, Sidewalk, Landscaping and Irrigation 11,829 148,100 159,929 Total Expenditures 139,316 248,100 387,416 Ending Balance 0 0 0 1community block grant – actuality of dollars yet to be determined 2Redevelopment Incentive Program-N7Rehab, awaiting feedback from City Attorney’s office, Resolution required. 3Demolition Program – A component of N7Rehab 4Public right-of-way improvements – Now a component of N7Rehab 144 Page 3 of 4 FY2011 BUDGET PLAN AND REQUEST FOR APPROVAL During the next fiscal year, NSURB plans on continuing all of the programs approved by the City Commission last summer, designating the following enumerated projects for the District’s renewal: 1. $100,000 of TIF monies for N7Rehab (Redevelopment Incentive Program), a grant program to encourage voluntary compliance by property owners with life-safety regulations and assistance with façade and site improvements. This money is a permissible use under state statute 7-15-4233, “to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements”. It complies with the City’s stated redevelopment activities by ensuring the health, safety and security of the District and helping to guide new development. 2. $90,000 of TIF monies for demolition program, a component of N7Rehab grant program. This money is permissible use under state statute 7-15-4288, “Costs that may be paid by tax increment financing (2) demolition and removal of structures;” and 7-15- 4233, “to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements”. It complies with the City’s stated redevelopment activities by ensuring the health, safety and security of the District and helping to guide new development. 3. $75,000 of TIF monies for public right-of way improvements, a component of the N7Rehab grant program. This money is a permissible use under state statute 7-15- 4288, “Costs that may be paid by tax increment financing…(4) the acquisition, construction, and improvements of infrastructure…that includes streets, roads, curbs, gutters and sidewalks…storm sewers…” 4. $ 95,600 of TIF monies for curb, gutter, sidewalk, ADA ramps, landscaping and irrigation (construction and engineering services – Phase II of N. 7th Avenue sidewalk improvements. This money is a permissible use under state statute 7-15-4288, “Costs that may be paid by tax increment financing…(4) the acquisition, construction, and improvements of infrastructure…that includes streets, roads, curbs, gutters and sidewalks…storm sewers…” 5. $126,405 of TIF monies for street and sidewalk lighting. This money is a permissible use under state statute 7-15-4288, “Costs that may be paid by tax increment financing…(4) the acquisition, construction, and improvements of infrastructure…that includes streets, roads, curbs, gutters and sidewalks…storm sewers…”. 6. $15,000 of TIF monies for staff and other professional services. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” 7. $ 5,000 of TIF monies for outreach. This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” 145 Page 4 of 4 2011 North Seventh TIF Proposed Expenditure Plan ACTUAL 2010 Revenues & Expenditures 2011 Expenditure Plan Starting Balance 89,080 Estimated Balance 6/30/10 Revenues Interest 2,655 259,495 2,500 TIF allocation on 01/21/10 Anticipated TIF allocation FY 2011 268,010 268,010 Remaining Big Box Funds 232,000 232,000 HB645 American Recovery & Reinvestment Act1 ECCBG2 110,400 16,100 Total Revenue Available 591,745 888,505 Engineering plan, professional contract with Allied FY2011 Engineering services 100,000 18,000 50,000 N7Rehab -Façade and Site Rehab -Demolition -Public right-of-way improvements 0 100,000 90,000 75,000 0 N. 7th Phase I Sidewalk Improvements3 Phase II Sidewalk Improvements4 Bus Shelter 0 208,000 185,000 16,100 Part time staff and other professional services Outreach 2505 15,000 5,000 Lighting 0 126,405 Total Expenditures 100,250 888,505 Ending Balance 491,495 0 1Grant for Phase I sidewalk improvements 2Energy Conservation Community Block Grant – awarded for bus shelter installation 3$110,400 in HB645 funding, remaining to be paid with Big Box Funds 4To be paid with remaining Big Box Funds and TIF monies 5Public Noticing in Bozeman Daily Chronicle 146 City Clerk P O Box 1230 Bozeman MT 59771 1230 1111111111111111111111111111111111111111111111111111111 g 0 p Shell Vance Gallatin Co MT MISC 22 00 ORDINANCE NO 1685 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA ADOPTING AN URBAN RENEWAL PLAN FOR THE NORTH SEVENTH AVENUE CORRIDOR AND ADJACENT PROPERTIES WHEREAS the Bozeman City Commission did on the 22nd day ofAugust 2005 adopt Resolution 3839 declaring that blighted areas exist within the municipality and that the rehabilitation redevelopment or a combination thereof of such area or areas is necessary and WHEREAS the Bozeman City Commission appointed an Urban Renewal Planning Committee to prepare an urban renewal plan for the area and WHEREAS the Urban Renewal Planning Committee has prepared a proposed Urban Renewal Plan and WHEREAS the Bozeman Planning Board did on November 7 2006 find the proposed Urban Renewal Plan to be in conformity with the Bozeman 2020 Community Plan the adopted comprehensive plan for the Bozeman Planning jurisdiction and WHEREAS the Bozeman City Commission did on the 13th day ofNovember 2006 conduct a public hearing to consider the proposed Urban Renewal Plan BE IT ORDAINED by the CityCommission ofthe City ofBozemsm Mntana Section 1 That the North Seventh Avenue Urban Renewal Plan attached hereto as Exhibit A is hereby adopted Section 2 Repealer All resolutions ordinances and sections ofthe Bozeman Municipal Code and parts thereofin conflict herewith are hereby repealed Section 3 Savine s Provision This ordinance does not affect the rights and duties that matured penalties that were incurred or proceedings that were begun before the effective date of this ordinance Section 4 1147 U Cl NO 0SO It N NQjmN O U E lE 0U S f Gl0 c Gl c Severabilitv If any portion of this ordinance or the application thereofto any person or circumstance is held invalid such invalidity shall not affect other provisions of this ordinance which may be given effect without the invalid provisions or application and to this end the provisions of this ordinance are declared to be severable Section 5 Effective Date This ordinance shall be in full force and effect thirty 30 days after final adoption PROVISIONALL YPASSED by the City Commission ofthe City ofBozeman Montana on the first reading at a regular session thereofheld on the 13th day November 2006 FINALLY PASSED ADOPTED AND APPROVED by the City Commission ofthe City ofBozeman Montana on second reading at a regular session thereof held on the 2ih day ofNovember 2006 ayor 2148 North Seventh Avenue Urban Renewal District Plan October 2006 3149 CITY OF BOZEMAN NORTH SEVENTH AVENUE URBAN RENEWAL PLAN Prepared bv The North Seventh Avenue Urban Renewal Plan Committee Doug Alexander Andrew Cetraro Susan Fraser Mike Gaffke Mike Hope Sherry Reid Carl Solvie Michelle Wolfe Prepared for The Bozeman City Commission Jeff Krauss Mayor Jeff Rupp Steve Kirchhoff Sean Becker Kaaren Jacobson 4150 NORTH SEVENTH AVENUE URBAN RENEWAL PLAN CONTENTS Introduction page 4 District page 4 Context page 6 Description page 6 Existing Conditions page 7 Mission Vision page 7 Corridor Goals page 7 Guiding Principles page 8 Executing the Plan page 9 Finance page 13 5151 NORTH SEVENTH AVENUE URBAN RENEWAL PLAN INTRODUCTION This Urban Renewal Plan was prepared by an eight member committee composed of business owners and business and residential property owners from the area covered by the plan the District and a member from the adjacent residential neighborhood in response to the City Commission s finding ofblight on August 22 2005 Resolution 3839 Attachment A The City Commission supported the blight designation in order to create an Urban Renewal District because it believed this would encourage redevelopment and infill within the city limits and that the Tax Increment Finance TIF District created by the designation would help facilitate such activity DISTRICT The boundary ofthe District is depicted in Figure 1 and is generally described as the commercially zoned property between N 5th Avenue and N 8th Avenue from Main Street north to the city limits vacant R 4 zoned parcels between Tamarack Street and Oak Street from N 5th Avenue to N 3rd Avenue right of way extended and a commercially zoned parcel north ofOak Street between N 3rd Avenue right ofway extended and the N Black Avenue alignment Between W Main Street and West Lamme Street the study area extends east only as far as a point roughly mid block between N 7th Avenue and N 5th Avenue A metes and bounds description is provided in Attachment B Growth Policy Land Use Designations The Bozeman 2020 Community Plan designates the area along the N ih Corridor as Neighborhood Commercial Regional Commercial and Industrial Some ofthe area east ofN 5th Avenue between Tamarack and Oak is designated Residential and the area east along Oak Street contains Regional Commercial and Industrial designations Zoning Classifications The District primarily consists of B 2 Community business District zoned parcels East ofthe corridor two large vacant parcels are zoned R 4 Residential High Density District and M 1 Light Manufacturing zoned parcels are located on the north end ofthe study area Land Area The District encompasses roughly 323 acres or approximately 3 0 ofthe approximately 10763 acres which comprised the total area ofthe city ofBozeman in August 2005 6152 Land Use The District primarily includes areas of commercial residential agricultural industrial and public uses Commercial Activity The District includes one of the city s oldest auto oriented commercial strips Much ofthe area was developed more than fifty years ago and much has been developed or will develop largely due to the influences of transportation features particularly North Seventh Avenue Interstate 90 and Oak Street These transportation corridors shape many of the elements of the District including platting of land and land use access traffic and circulation and development patterns Residential Neighborhoods Well established and well kept residential neighborhoods adjoin North Seventh Avenue commercial development on both the east and west A portion ofthese neighborhoods is included in the District to assure that redevelopment ofthe Corridor includes careful consideration ofthe issues associated with these established residential areas A map of the District is found in Figure I and a metes and bounds description of the area included in the District is contained in Attachment B Planning Process The planning activity for the District was conducted through the preparation ofa Design and Connectivity Plan for the North Seventh Corridor DCP prepared by Winter and Company An Urban Renewal Planning Committee wasappointed by the City Commission and this group worked with staff and Winter and Company to identify a scope for the project A public workshop was held on February 15 2006 and another more focused workshop conducted on May 25 2006 Advertising in the Chronicle notified the public prior to each workshop The Consultant presented the Draft Design and Connectivity Plan on August 1 2006 to the public the DRB and at ajoint meeting of the Zoning Commission Planning Board and City Commission The DCP wasfinally adopted by the City Commission on October 23 2006 The DCP constitutes the vision for redevelopment and rehabilitation ofthe Corridor in this urban renewal plan The DCP was prepared with the acknowledgement that it would serve as the design framework for this urban renewal plan and is hereby adopted by reference as part ofthis plan The DCP is available at the City Clerk s office or on the internet on the planning page at www bozeman net The following sections addressing Context Description and Existing Conditions are taken from the DCP 7153 CONTEXT North 7th Avenue is a vital part ofthe City ofBozeman It serves as a major circulation corridor and is home for a variety ofbusinesses that contribute to the vitality ofthe community However important as the corridor is today its full potential is unrealized and issues remain Some of those issues include its effectiveness in connecting with other parts ofthe city and the types ofuses and degree ofintensity of development that may occur The goal ofthis plan is to develop a framework plan that addresses technical questions about the area while providing a vision for the future A key objective is to establish a distinct identity for the corridor and the subareas within it DESCRIPTION North 7th Avenue is an established entryway corridor that extends from 1 90 south to Main Street This Class II corridor is automobile oriented however it has the potential to become more pedestrian oriented The scale of the street and the character of uses emerging along it are conducive to pedestrian activity at least for the area south ofthe highway This is in part because parcel sizes are comparatively smaller here than on some ofthe newer outlying corridors North 7th Avenue can play the following roles Neighborhood service center Economic generator Gateway Complement to the Fair Grounds Complement to downtown Connector to Montana State University Plan components to be considered in redeveloping North 7th Avenue as aparticular place with an identifiable character Automobile circulation Bicycle circulation Development patterns Landscape opportunities Pedestrian circulation Public transit Way finding 8154 EXISTING CONDITIONS North 7th Avenue is primarily auto oriented at present and is not conducive to pedestrian activity The development patterns that have occurred on the commercial strip have resulted in buildings that are set back from the street with parking in front Many of these conditions are identified on the Design Issues map in the DCP Although there have been efforts to beautify the corridor through streetscape and landscape improvements it still falls short ofbeing a pedestrian or bike friendly environment The following issues were identified in the Design Objectives Plan Update and in the DCP s public outreach efforts Some Specific Issues Difficult pedestrian crossing 1 90 Lack ofbicycle commuter lanes Left turn at Durston virtually impossible Drainage issues at Durston Poor lighting Many curb cuts which disrupt sidewalks and encourage multiple turning movements that inhibit traffic flow Poorly defined walkways along the highway and within properties Incomplete bicycle route Discontinuity in sidewalks Lack of cross property access between Parcels Buildings set back from the street thereby failing to provide interest at the sidewalk Key intersections are poorly defined making for difficult pedestrian crossings School zone crossings are dangerous Public way finding signs are sparse and difficult to read Pedestrian crossings where people feel safe are few Poor maintenance and dusty Lack ofboulevard grass between the sidewalk and street Provide proper lighting stop lights for large truck traffic on inlets and outlets Improper tie ins with Main South 8th and Babcock MISSION VISION This Plan is the city s response to remedy the conditions ofblight found in the August 2005 report through thoughtful redevelopment ofthe Corridor The following Corridor Goals are taken from the DCP An expanded description ofthe intent of each goal is found in the DCP Chapter 2 Corridor Goals A basic goal is to have an active and exciting corridor that is attractive with a distinct character A strategy for achieving this goal is to improve the experience for the user by creating safe attractive walkways and streets and by providing buildings and landscaping that are of interest to users and passersby Several key strategies should be 9155 followed 1 Provide a distinct identity for the corridor 2 Develop the corridor as a focus for commercial and entertainment activities that serve residents and visitors alike 3 Strengthen the corridor as a neighborhood service center 4 Provide mixed use development 5 Clearly define gateways at key locations along the corridor 6 Improve auto bicycle and pedestrian circulation along the corridor 7 Provide pedestrian connections to adjacent neighborhoods 8 Establish a wayfinding system 9 Guide new development along the corridor such that it improves the aesthetic experience 10 Coordinate public and private improvements 11 Strengthen connections between complementary uses 12 Provide flexible public space along the corridor GUIDING PRINCIPLES In addition to the specifically stated goals for the District the following Guiding Principles have been adopted to provide a basis for decision making over the life of the District These principles should be applied to any development program or other activity that will affect the District 1 Ensure the health safety and security of the District 2 Balance commerce and livability in the District within the mixed use framework 3 Public open space is essential to a healthy and appealing urban environment 4 The costs of projects and programs shall be weighed against their benefits to the District 10156 5 Private property shall not be acquired for other private use through the eminent domain process in the implementation of any aspect of this plan 6 The City shall not limit its vision for the District improvements to monies available solely through the TIF funding 7 Projects shall consider impacts on adjacent neighborhoods 8 The city shall consider the impact on the District of all projects undertaken outside of the District EXECUTING THE PLAN INTRODUCTION Once adopted this Plan becomes the official policy guide for public action regarding the North Seventh Avenue Urban Renewal District These policies can only be transformed into action through an effective implementation program The framework for implementation described herein depends on sound processes of administration financing and evaluation As the implementation ofthis Plan proceeds new opportunities will arise and unforeseen problems will emerge The Plan s administration must be sufficiently flexible to respond effectively to changing circumstances without losing sight of long range goals ADMINISTRATION To implement this Plan an Urban Renewal Agency will be created hereafter referred to as the North Seventh Urban Renewal Board NSURB The NSURB is responsible for the implementation ofthis Plan pursuant to MCA S 7 15 4232 Specifically the NSURB will 1 develop plans which implement the vision for the District 2 review on an ongoing basis the operation and processes of all public agencies to assure that such activities are supportive ofthe Plan and 3 advocate and coordinate the complete and full implementation ofthe Plan Individuals appointed to the NSURB shall have a demonstrated interest in the District or adjacent neighborhoods Pursuant to MCA S 7 15 4234 the mayor by and with the advice and consent ofthe City Commission shall appoint the NSURB which shall consist of five voting members The initial voting membership shall consist ofone NSURB member appointed for 1 year one for 2 years one for 3 years and two for 4 years Each appointment thereafter shall be for 4 years 1 Each voting member shall hold office until hisher successor has been appointed and has qualified 2 A voting member shall receive no compensation for hisher service but shall be entitled to authorized necessary expenses including traveling expenses incurred in 11157 the discharge of his her duties 3 Any person may be appointed as voting members if they reside within the municipality The preferred composition of the NSURB would include two residents of the District two business owners in the District and one member at large 4 A voting member may be removed for inefficiency neglect ofduty or misconduct in office 5 The appointment ofvoting members shall be ratified annually by the City Commission A majority ofthe voting members shall not hold any other public office under the municipality other than their membership or office with respect to the NSURB The powers and responsibilities ofthe NSURB shall be exercised by the members thereofaccording to adopted bylaws approved by the City Commission A majority of the members shall constitute a quorum for the purpose ofconducting business and exercising the powers and responsibilities of the NSURB and for all other purposes Action may be taken by the NSURB upon a vote ofa majority ofthe members three unless in any case the bylaws shall require a larger number In addition to the five voting members the NSURB shall be composed ofa non voting membership ofnot more than four individuals The initial membership shall consist of one member appointed for 1 year one for 2 years one for 3 years and one for 4 years Each appointment thereafter shall be for 4 years These individuals must possess demonstrated interest in the district specific expertise or other qualifications necessary to help implement the plan 1 Each non voting member shall hold office until hislher successor has been appointed and has qualified 2 A non voting member shall receive no compensation for hislher services but shall be entitled to authorized necessary expenses including traveling expenses incurred in the discharge ofhislher duties 3 A non voting member may be removed for inefficiency neglect ofduty or misconduct in office 4 The appointment of non voting members shall be ratified annually by the City Commission Initial administrative staff duties for the NSURB will be performed by city staff as available until other funding shall be available from alternate sources and permanent staff hired The NSURB will make every effort to fund its own staff either by contracting for services with existing public agency staff contracting for services with a private firm or hiring a staff The FY08 work program shall specify the staff arrangement The NSURB may exercise any ofthe powers specified in MCA 7 15 4233 However no entrance to any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7 15 4257 shall be made without 12158 the owner s permission ANNUAL WORK PROGRAM BUDGET AUDIT AND EVALUATION The NSURB shall prepare an annual work program AWP and budget that will list the activities and costs ofactivities for the coming fiscal year as well as the method offinancing those activities The NSURB shall provide public notice in the newspaper and by other appropriate means and conduct a public hearing prior to the submittal ofthe annual work program to the City Commission This program and budget may be amended during the course of the city s fiscal year in light of funding and program changes All budgets and revised budgets shall be reviewed and approved by the City Commission The NSURB shall cause to be performed an annual audit conducted in conjunction with the city s audit covering the operations ofthe NSURB in carrying out this Plan The first such audit shall be completed within ninety 90 days of the close of the first fiscal year following the adoption ofthis Plan by the City Commission All such audits shall be maintained as a part ofthe public records ofthe City ofBozeman The NSURB shall also provide to the City Commission and the public an annual program evaluation Such evaluation shall review the North Seventh Avenue Urban Renewal District Plan and the past annual work program and other relevant NSURB activities for the year PLAN AMENDMENT The Plan may be amended by the same means as adopted in accordance with Montana law No ordinance amending the Plan shall be adopted until after a public hearing has been conducted thereon and notice ofsaid hearing has been given in the official newspaper once a week for two consecutive weeks preceding the hearing In addition mailed notice shall be given to all persons owning property at the time and in the manner provided by MCA 97 15 42151 All notices shall provide the information regarding the modification required by MCA 9 7 15 42151 Nothing herein shall limit ofaffect the authority ofthe Commission to undertake and carry out renewal activities on a yearly basis as provided by MCA 9 7 15 4220 13159 PROPERTY ACQUISITION The NSURB will assist and encourage public and private entities to eliminate blight or blighting influences and strengthen the City s economy by developing property in the District Where necessary in the execution ofthis Plan the NSURB is authorized to acquire property in the District in accordance with the appropriate federal state and local laws However the power ofeminent domain shall not be used to acquire private property for private purposes or for parks ACTION BY THE CITY The City shall aid and cooperate with the NSURB in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment ofthe purposes ofthis Plan and to prevent the recurrence or spread in the area ofconditions causing blight To assure the purposes of the Plan are fully considered the City shall obtain and consider the advice ofthe NSURB regarding all development proposals public works projects or other matters occurring within or adjacent to the District or affecting any aspect ofthe Plan Other action by the City may include but not be limited to the following 1 Institution and completion ofproceedings for opening closing vacating widening or changing the grades of streets alleys and other public rights of way and for other necessary modification ofthe streets the street layout and other public rights of way in the District 2 Institution and completion ofthe proceedings necessary for changes and improvements in publicly owned utilities within or affecting the District 3 Revision ofMaster Plan Zoning requirements development standards and regulatory practices if necessary to facilitate the execution or principles policies and implementation actions set forth by this Plan 4 Performance ofthe above and all other functions and services relating to public health safety and physical development normally rendered in accordance with a schedule that will permit the redevelopment ofthe District to be commenced and carried to completion without unnecessary delays 5 Promotion ofthe availability through the City ofprograms and funds to help keep existing and new housing in or near the District affordable and habitable 6 The undertaking and completing ofany other proceedings necessary to carry out the provision ofthis Plan 14160 FINANCE The programs projects and administration of the Plan shall be financed from a variety ofsources both public and private which in part may include Private Grants dues self imposed taxes such as Special Improvement Districts or Business Improvement Districts private investment and donations Private Enterprise Assistance Programs Housing and Urban Development Small Business Administration and Community Reinvestment Act financial assistance Public Tax increment financing revenue bonds City and County general funds public grants utility Districts user fees state backed low interest loans Montana Department of Transportation general obligation bonds tax credits and enterprise funds Tax Increment financing will be implemented in accordance with MCA SS 7 15 4282 4292 and 4301 4324 In the event that property taxes are reduced or replaced with some new form ofrevenue it is the intent ofthe Plan to use all available means to adjust the tax base or allow the capture of that portion ofthe new revenue form necessary to offset the reduced or lost increment The NSURB will annually develop a program and budget to be reviewed and adopted by the City Commission During this procedure specific actions will be proposed in detail for community review This process will allow maximum community input to further the redevelopment interests of the community and to evaluate past actions of the NSURB Tax Increment financing shall be used to further the implementation ofthe goals set forth in this plan 15161 16162 Attachment A COMMISSION RESOLUTION NO 3839 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA DECLARING THAT BLIGHTED AREAS EXIST WITHIN THE MUNICIPALITY AND THE REHABILITATION REDEVELOPMENT OR A COMBINATION THEREOF OF SUCH AREA OR AREAS IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH SAFETY MORALS OR WELFARE OF THE RESIDENTS OF SUCH MUNICIPALITY WHEREAS a blight investigation in a portion ofthe North Seventh Avenue Corridor in Bozeman outlined in Attachment A wascompleted by city staff at the direction ofthe City Commission and WHEREAS the investigation determined that areas ofblight as defined by state statute existed within the study area associated with the following the defective or inadequate street layout identified within the study area instances ofknown deterioration inadequate provisions andor age obsolescence ofthe following public improvements within the study area storm drain streets and sidewalks instances ofage obsolescence of buildings within the study area inappropriate or mixed uses of land or buildings deterioration ofsite and improper subdivision or obsolete platting and WHEREAS 7 15 4210 MCA requires that a municipality adopt aresolution ofnecessity in order to implement an urban renewal program NOW THEREFORE BE IT RESOLVED by the City Commission of the City of Bozeman Montana that areas of blight exist within the study area of North Bozeman outlined in Attachment A and that the rehabilitation redevelopment or a combination 17163 thereofofthe area is necessary in the interest ofthe public health safety morals or welfare of the residents ofBozeman BE IT FURTHER RESOLVED that the City shall not use its powers ofeminent domain to acquire private property for any private use in the implementation of any urban renewal project within this area PASSED AND ADOPTED by the City Commission ofthe City ofBozeman Montana at a regular session thereof held on the 22nd day ofAugust 2005 ANDREW L CETRARO Mayor ATTEST ROBIN L SULLIVAN Clerk of the Commission APPROVED AS TO FORM PAUL J LUWE City Attorney Signed copy available in City Clerk s office 18164 Attachment B Legal Description ofthe North 7th Urban Renewal District Boundary Beginning at the point ofthe southeast comer ofLot 7 Block I ofthe Springbrook Addition thence westerly approximately 270 feet to the southwest comer of Lot 17 Block I of the Springbrook Addition thence westerly approximately 30 feet to the centerline ofNorth 8th Avenue thence northerly approximately 1 292 feet to the centerline ofWest Villard Street thence easterly approximately 30 feet to the southwest comer of Lot 8 ofthe Durston Subdivision thence northerly approximately 665 feet thence westerly approximately 4 feet thence northerly approximately 214 feet to the centerline ofWest Peach Street thence westerly approximately 65 feet to the southwest comer of Lot 18 Block 1 ofDurstons Second Subdivision thence northerly approximately 1980 feet to the southwest comer ofLot 3 Block 2 of the Vista Addition thence easterly approximately 150 feet to the southwest comer ofLot 2 Block 2 Vista Subdivision thence northerly approximately 645 feet to the northwest comer of Lot 14 Block I Vista Addition thence westerly approximately 1246 feet along the southern boundary ofthe Oak Street right of way to the northwest comer ofTract 1 ofC O S 2082 thence northerly approximately 1706 feet down the centerline of North 11 th Avenue to the south boundary ofthe Baxter Lane right of way thence northerly approximately 70 feet across the Baxter Lane right of way thence northerly approximately 170 feet across the MDOT right of way for Interstate 90 to the southwest comer ofLot 2 ofthe Wheat Commercial Subdivision thence northwesterly approximately 1000 feet along the southern boundary ofTract A ofC O S 391A to the westernmost point thence easterly approximately 800 feet to the northwest comer of Lot 1 of the Wheat Commercial Subdivision thence easterly approximately 789 feet to a point approximately 25 feet from the northeast comer of Lot 12 ofthe Wheat Commercial Subdivision thence northerly approximately 965 feet to the northwest comer ofLot 3 ofthe Gordon Mandeville School Section Subdivision thence easterly approximately 440 feet to the west boundary of the North 7th Avenue right of way boundary thence northerly approximately 1760 feet to a point where the west boundary ofthe North ih Avenue right of way intersects the Burlington Northern right of way thence southeasterly approximately 1 408 feet along the Burlington Northern right of way to the southeast comer ofLot 18A ofthe Amended Plat ofthe Gordon Mandeville State School Section Subdivision thence westerly approximately 200 feet to the northeast comerof Lot 17 ofthe Gordon Mandeville School Section Subdivision thence southerly approximately 481 feet to the southwest comer of Lot 20 ofthe Gordon Mandeville School Section Subdivision thence southwesterly approximately 107 feet to the southeast comer of Lot 16 of the Gordon Mandeville School Section Subdivision thence westerly approximately 260 feet to the northeast comer of Lot 15B ofMinor Subdivision 49 thence southerly approximately 686 feet to a point along the north boundary ofLot 20 ofthe Industrial Park Subdivision approximately 20 feet west of the northeast comer of said lot thence westerly approximately 340 feet to the northeast comer ofLot 22 of the Industrial Park Subdivision thence southerly approximately 698 feet to the southwest comer of Lot 14 ofthe Industrial Park 19165 Page 1 of 6 N7Rehab Through N7Rehab, NSURB provides grants to foster voluntary rehabilitation of eligible commercial properties for the elimination of blight in the North 7th Avenue Corridor. Assistance is available for 1) demolition, 2) facade/site improvements (including but not limited to façade enhancements, signage and landscaping) and 3) streetscape enhancements for existing age obsolescent developments in the North 7th Urban Renewal District. North 7th URBAN RENEWAL DISTRICT North 7th Commercial Rehabilitation Incentive Programs (N7Rehab) INTRODUCTION The Bozeman City Commission has authorized the North 7th Urban Renewal Board (NSURB) to implement and administer the N7Rehab in the North 7th Urban Renewal District. Through N7Rehab, the NSURB may award grants for the rehabilitation of commercial properties. These grants are dispersed at the completion of all improvements associated with the project. Applications for N7Rehab grants in the North 7th Urban Renewal District are subject to program eligibility criteria and project guidelines listed below. In addition, project applications will be accepted and processed in the order in which they are received and approved based on the availability of funds for the program. PROGRAM OBJECTIVES The primary objective of the N7Rehab is to provide a program to encourage voluntary repair and rehabilitation of commercial property within the North 7th Urban Renewal District (hereinafter referred to as the “District”) in accordance with the provisions of the Montana Urban Renewal Law (7-15-4209 and 7-15-4288, M.C.A.). Additional objectives are to: • Encourage private investment in commercial property in the District through the use of public incentives; • Expand the property tax base in the District through private investment in income producing properties; • Stimulate economic and business development within the District; and • Retain and expand employment opportunities associated with economic development and increased construction activity. The grants are awarded at the discretion of the NSURB based upon review of the Applicant's compliance with program objectives, eligibility requirements, and eligible construction activities. 166 Page 2 of 6 N7Rehab offers assistance to property owners in the District in the rehabilitation of their property and tenant businesses with a lease period equal to 5 or more years. The program provides grants for costs used for eligible improvements in the District. The following eligibility requirements have been established to accomplish N7Rehab objectives in the repair, maintenance or renovation of the exterior of buildings and deteriorated sites. Application forms are obtained from the Bozeman Department of Planning and Community Development, and must be completed in their entirety before the project will be considered. 1. Maximum grant award is set every fiscal year. For FY2010 the maximum award is $10,000 per grant fund (total of $30,000 per site). All projects must be reviewed by the NSURB, and the award amount is at the discretion of the NSURB. 2. All building and site improvements must be completed within one year of approval. Extensions may be granted by NSURB. 3. The grant award for demolition alone may total up to 50 percent of the eligible costs if preparing the site to sell. Grant awards for all other eligible costs, generally won’t exceed 10% of the total project cost. Exceptions may be considered on a case by case basis. 4. All commercial property within the District is eligible for this program with the exception of publicly owned buildings. For the purposes of this program, residential properties with four or more units will be considered commercial properties. All applications will be reviewed in the order in which they are received by the NSURB. Projects along N. 7th Avenue will be given priority at this time. 5. The Applicant's equity contribution to the project, the total expenditures for eligible improvements and the commitment to undertake improvements or assume other development costs which are ineligible for NSURB assistance will factor into the funding determination made by NSURB. Generally, total project costs must be greater than or equal to $200,000, or $150,000, if a public access easement is granted for sidewalk and streetscape improvements. Smaller projects may be considered if the project eliminates a significant blighting factor from the District. 6. Eligibility is extended to property owners of record or tenants with a lease period equal to 5 or more years. Tenants must submit written approval of the property owner and evidence of their leasehold interest. 7. Special Improvement District and property tax assessments of the property to be rehabilitated must be paid to date. 8. Applicants must submit rehabilitation plans for review to the Bozeman Department of Planning and Community Development. The NSURB staff will review the list of TIF eligible components of the project. Only those components that demonstrate a reduction in a blighting factor listed in the Blight Report adopted by Resolution 3839 may qualify for N7Rehab funds. These factors have been listed as eligible items in this program description. 9. Applicants must fully satisfy any other outstanding requirements related to NSURB funded projects before they are eligible to submit another application. 10. All TIF eligible expenditures must be itemized by materials and labor. Construction estimates must be obtained from a licensed and bonded contractors, independent of the project, and submitted with the application. Receipts or comparable documentation will be required for all work undertaken to allow monitoring of actual costs of eligible project improvements. 11. Building façade improvements must meet the standards described in the Bozeman Design Objectives Plan. Design Review Staff or the Design Review Board will determine the eligibility of costs associated with building design improvements. 12. The property must currently be in commercial use or a legally binding commitment must exist, such as an executed lease agreement, for an enterprise to occupy the structure after rehabilitation is complete. Evidence of these commitments must be submitted with the application. 167 Page 3 of 6 ELIGIBLE CONSTRUCTION ACTIVITIES IMPORTANT: To insure compliance with program objectives and design criteria of the North 7th Urban Renewal Board and the North 7th Design and Connectivity Plan, all construction undertaken pursuant to the N7Rehab must be in accordance with a design that has been reviewed and approved by the City of Bozeman through the Sketch/Site Plan and Certificate of Appropriateness review process as outlined in Chapters 18.30 and 18.34 of the Bozeman Municipal Code (BMC). The Applicant must also obtain all applicable permits and comply with all municipal ordinances and building codes. Demolition Fund Eligible activities under the Demolition Fund include the following: 1. Total demolition and removal of one or all structures on a property, including foundations and other poured concrete associated with the building(s) being removed 2. Demolition of non-conforming signage Ineligible activities: • Partial demolition • Removal and mitigation of contaminated soils • Site grading Facade/Site Improvements Fund N7Rehab is designed to address the need for rehabilitation of commercial property facades and deteriorated buildings and/or non-compliant site elements. All applications must address facade improvements or deteriorated/non-compliant site elements to be eligible for N7Rehab funds. Eligible activities under Facade/Site Improvements Fund include the following: 1. Improvements to deteriorated buildings through the modification of exterior elements, including but not limited to, walls, windows, doors, appurtenances and architectural features, signs, awnings and painting. Façade improvements must conform to the Bozeman Design Objectives Plan. 2. Exterior improvements for disabled citizens including but not limited to ramps, doors, kick plates, automatic door openers, walks, guardrails, non-slip materials and level platforms at doors. 3. Replacement of non-compliant signage with compliant signage 4. Landscaping improvements incorporated into a public space such as a parking lot 5. Parking lot improvements which include improvements to pedestrian connectivity and/or ADA accessibility parking and building access 6. Parking lot surfacing and curbing improvements when included with a reduction in drive accesses and/or a new shared parking arrangement between adjacent businesses 7. Storm water facility improvements 168 Page 4 of 6 8. Architectural and engineering assistance and design fees are eligible but may not exceed 10% percent of the eligible construction costs or $5,000, whichever is less. In addition, permit fees are an eligible cost for the grant award up to 5% percent of the total cost estimate for eligible construction costs or $1,000, whichever is less. All design fees and permit charges must be itemized. The following activities are ineligible for funding through the N7Rehab: • New construction or additions; • Re-roofing, unless to improve a roof covering which is highly visible from the public right-of-way; • Building improvements not visible from a public right-of-way; • Refinancing existing debt; • Interior rehabilitation; • Property acquisition; • Structural elements not related to exterior improvements; • Work initiated prior to necessary program approvals. The N7Rehab is not intended to discourage an applicant from making improvements to the interior of their building, but such improvements are not directly related to blight reduction and so shall not be entitled to TIF funding. Streetscape Enhancement Fund The District Plan calls for improvements to pedestrian connectivity, installation of boulevard landscaping, improved street and pedestrian lighting and correction to non-compliant accesses onto N. 7th Avenue. As such, the NSURB has made funds available to assist property owners with these improvements. If located within the public right-of-way, projects eligible for the Streetscape Enhancement Fund include 1. Curbing associated with reduction in number or width of accesses onto N. 7th Avenue 2. Storm water drainage and treatment improvements in the event the City requires such improvements be made for project approval If located in a public right-of-way or public access easement, eligible Streetscape Enhancements include 1. Purchase and installation of District street and/or pedestrian lighting 2. Landscaping improvements 3. Sidewalk construction and repair 4. Installation of ADA sidewalk ramps 5. Curb construction associated with sidewalk or landscaping improvements 6. Installation of tree grates 169 Page 5 of 6 --------------------------------------------------------------------------------------------------------------------------------------------------- IMPORTANT: The responsibilities outlined below reflect the general process to be followed to insure application approval and compliance with program objectives. Maintaining close coordination between the participants will expedite the review and approval of the application. APPLICANT RESPONSIBILITIES The successful Applicant for NSURB assistance must undertake the following responsibilities pursuant to the N7Rehab Program. 1. Applicant completes N7Rehab and City of Bozeman Site Plan (or Sketch Plan) application materials and complies with all application requirements. This material is provided to the NSURB for review and approval, so nine (9) additional copies of the application materials are required to facilitate the review process. NSURB staff will provide informal assistance to the Applicant in completing the necessary forms and developing a project design that is in compliance with program objectives. Architectural, Landscaping and Engineering (if applicable) drawings must be provided by the applicant. Final Architectural Design Review authority will be Design Review Staff within the Department of Planning and Community Development and/or the Design Review Board (if applicable). 2. Applicant provides cost estimates as required by the N7Rehab application process. 3. Applicant will attend the scheduled NSURB monthly meeting to provide the Board with information on the project. 4. The N7Rehab process does not absolve the applicant of having to apply for deviations and/or variances if required by the established plan review process. 5. Applicant provides copy of signed bid contract and enters into a Participation Agreement with NSURB. 6. Applicant will provide receipts for all work undertaken with N7Rehab funding to allow monitoring of actual costs of N7Rehab eligible improvements. 7. Applicant is responsible to review the rehabilitation work and upon completion will submit an application for Final Occupancy through the Bozeman Building Division. NSURB staff will determine if the rehabilitation work has been completed satisfactorily and recommend or deny approval for Certificate of Completion to the NSURB. Certificates of Completion will not be granted until ALL work funded by the grant is completed. 8. An improvements agreement and financial guarantee may be required to obtain occupancy as directed by the Planning Department. Pending grant awards may not be used as a financial guarantee. 9. The applicant may be required to provide a financial statement to demonstrate sufficient financing for the project has been secured. NSURB RESPONSIBILITIES 1. NSURB staff reviews the application and determines which rehabilitation activities are eligible. The application will also be reviewed against the N7Rehab Project Review Criteria. 2. NSURB staff prepares a report for the Board and distributes the report to Board members 5 days prior to the next regularly scheduled monthly meeting. 3. The Board reviews the application for funding eligibility, reviews the fund request and votes to approve, deny or approve a modified award. 4. NSURB staff prepares the Participation Agreement (to include a list of approved eligible improvements receiving funding) for signing. 5. NSURB staff tracks receipts for completed N7Rehab eligible improvements 6. NSURB staff closes out the application upon satisfactory completion of the project and submits NSURB CERTIFICATION OF COMPLETION to be signed by the NSURB Chair. 7. NSURB staff sends a request to the City Finance Department to release funds to the applicant. 170 Page 6 of 6 DELEGATION OF AUTHORITY The NSURB is, hereby, delegated authority to administer the N7Rehab as set forth in this application packet and Resolution #_____ and enter into agreements with Applicants necessary to accomplish the purposes of the program. If an Applicant's project is deemed ineligible for a grant award by NSURB staff, the Applicant may appeal that decision to the NSURB whose determination with respect to eligibility shall be final. 171