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HomeMy WebLinkAboutRevised North Seventh Urban Renewal Board Annual Work Plan and Budget.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Keri Thorpe, Assistant Planner Chris Saunders, Interim Planning Director Chris Kukulski, City Manager SUBJECT: Revised Annual Work Plan and Budget for the North 7th Urban Renewal Board (NSURB) MEETING DATE: August 2, 2010 AGENDA ITEM TYPE: Consent Item RECOMMENDATION: Consider a motion to finally approve the Revised FY2011 Annual Work Plan and Budget for the North 7th Urban Renewal Board. BACKGROUND: On July 19, 2010, on behalf of the North 7th Urban Renewal Board, staff presented the proposed NSURB Work Plan and Budget for FY2011. The Commission provisionally approved it requesting a revised version of the document be prepared by staff. The revised report provides updated FY2010 expenditure information and revisions to proposed FY2011 expenditures resulting from an amended contract amount with Allied Engineering and a Change Order for Phase I Sidewalk Improvements. Please see the attached revised FY2011 NSURB Work Plan and Budget with supporting spreadsheet. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Fiscal effects are described in the revised proposed budget. Attachments: NSURB FY2011 Work Plan and Budget revised 07.22.10 N7TIF2011(spreadsheet) Report compiled on: July 22, 2010 41 Page 1 of 6 Tax Increment Financing District Fund Expenditure Plan 2011 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 and 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 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 42 Page 2 of 6 FY2011 BUDGET PLAN AND REQUEST FOR APPROVAL In 2008, the Board began implementing the North Seventh Urban Renewal District Plan by establishing their top three priorities for the District: improving sidewalks, lighting and landscaping along the N. 7th Avenue corridor. To that end, they hired Allied Engineering, Inc. and partners to assist with project identification, corridor character development, landscaping and a lighting study. 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 renewal of the District: Engineering Services $ 62,250 Engineering services are needed to assist the Board with three of the District goals: Provide a distinct identity for the corridor Clearly define gateways at key locations along the corridor, and Improve vehicular, bicycle and pedestrian circulation along the corridor. The spending of District funds on infrastructure improvements is allowed under 7-15-4288, “Costs that may be paid by tax increment financing, of the Montana Code Annotated”, specifically, item (4) states that the following may be paid by tax increment financing, “the acquisition, construction, and improvement of infrastructure…that 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”… N7Rehab $265,000 - Façade and Site Rehab $100,000 - Demolition $90,000 - Public Right of Way Improvements $75,000 This funding proposal is for the N7Rehab incentive program to encourage developers to build on parcels along the N. 7th Avenue corridor. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and proposes to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. This proposal meets the mission and goals of the District Plan by guiding new development along the corridor such that it improves the aesthetic experience and by assisting in coordinating public and private improvements These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, grants the City the power to formulate and coordinate a workable program as specified in 7-15-4209, MCA; and Section 7-15-4209, MCA, states : (1) A municipality may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; 43 Page 3 of 6 (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. (2) Such workable program may include, without limitation, provision for: (b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements; by encouraging voluntary rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas or portions thereof. Section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: 1) demolition and removal of structures, 2) improvement of infrastructure, 3) public improvements and 4) costs incurred in connection with the redevelopment activities allowed under 7-15-4233 Phase I Sidewalk Improvements $193,700 Phase I includes sidewalk improvements approved for HB 645 Funding to include the construction of sidewalk in missing sections at the northwest corner of N. 7th Avenue and Oak Street and between W. Hemlock Street and Peach Street on the east side of N. 7th Avenue. The costs beyond HB 645 funding will be paid with Big Box Funds. See “Engineering Services” above for District Plan goals and applicable sections of the MCA. Phase II Sidewalk Improvements $185,000 The actual scope of the project and the location within the District is yet to be determined. See “Engineering Services” above for District Plan goals and applicable sections of the MCA. Bus Shelter $ 16,100 This project is being funded by an Energy Conservation Community Block Grant (ECCBG). It’s being completed in conjunction with the Phase I Sidewalk Improvements. Public transit is a component of re-developing N. 7th Avenue to ensure the health safety and security of the District and balance commerce and livability in the District within the mixed use framework. It is an allowable expense under section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: 1) demolition and removal of structures, 2) improvement of infrastructure, 3) public improvements and 4) costs incurred in connection with the redevelopment activities allowed under 7-15-4233. 44 Page 4 of 6 Part-time staff and other Professional Services $ 15,000 The Board needs staff to assist with District Plan implementation. 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…” Outreach $ 5,000 The Board has requested money for public noticing, web site development and for the planning, advertising and holding of outreach events in the District. The purpose of these outreach events is to inform property owners and the public of the District Plan and the N7Rehab program. 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;” Lighting $140,705 The initial lighting study is complete and fixtures have been selected. The installation of lighting during the next fiscal year is unlikely given the complexity of installing underground wiring and removing and replacing old fixtures. As recommended by our engineering consultants, sidewalk improvements should be completed to the greatest extent possible prior to installing new light fixtures. Funds may be used for additional lighting studies, engineering services, consultation or as a cost share with other funds in future years. See “Engineering Services” above for District Plan goals and applicable sections of the MCA. 45 Page 5 of 6 SUMMARY Expenditures FY2010 FY2011 Fund Totals Engineering, contract with Allied Engineering 105,750 27,250 BBF FY 2011 Engineering Services 35,000 BBF 62,250 N7Rehab -Façade and Site Rehab 100,000 TIF -Demolition 90,000 TIF -Public right-of-way improvements 75,000 TIF 265,000 N. 7th Phase I Sidewalk Improvements 110,400 HB645 83,300 BBF 193,700 Phase II Sidewalk Improvements 98,550 TIF 86,450 BBF 185,000 Bus Shelter 16,100 ECCBG 16,100 Part-time staff and other professional services 15,000 TIF 15,000 Outreach 250 5,000 TIF 5,000 Lighting 140,705 TIF 140,705 Total 106,000 882,755 See the attached report summarizing actual FY2010 revenues/expenditures and the proposed FY2011 fund expenditure. These are the numbers available at the time of the updated report and include data from the City Controller through June 30, 2010. The North Seventh Urban Renewal District has on-going projects and funding sources allocated in previous fiscal years which have not yet been expended. Actual Tax Increment Financing Funding fluctuates with on-going building and re-assessing of property values. The FY2011 anticipated TIF amount may be different than estimated in the attached report. The original version was prepared using expenditure information available through June 1, 2010. Staff underestimated the engineering expenses for June in the first budget report, so the revised version now includes NSURB engineering expenses through June 30th. On July 1st, the Board approved an amendment to the contract with Allied Engineering, Inc. to provide staking and construction oversight services for the Phase I sidewalk 46 Page 6 of 6 improvements. That decision resulted in the need to revise the budget line item, “Engineering, Contract with Allied Engineering” and thus reduced the planned expenditures for “FY 2011 Engineering Services”. Report revised on July 22, 2010 Keri Thorpe, Assistant Planner 47 North 7th Urban Renewal Board FY2011 Work Plan and Budget ACTUAL 2010 Revenues and Expenditures 2011 Anticipated Revenues 2011 Expenditure Plan Project Totals Starting Balance 89,080 Balance 7/1/10 Interest 2,655 2,500 TIF allocation on 1/21/10 268,010 Anticipated TIF allocation FY 2011 268,010 Remaining Big Box Funds 232,000 HB 645 American Recovery & Reinvestment Act 110,400 Energy Conservation Community Block Grant 16,100 Total Revenue Available 591,745 397,010 882,755 Expenditures Engineering, contract with Allied Engineering 105,750 27,250 BBF FY 2011 Engineering Services 35,000 BBF 62,250 N7Rehab -Façade and Site Rehab 100,000 TIF -Demolition 90,000 TIF -Public right-of-way improvements 75,000 TIF 265,000 N. 7th Phase I Sidewalk Improvements 110,400 HB645 83,300 BBF 193,700 Phase II Sidewalk Improvements 98,550 TIF 86,450 BBF 185,000 Bus Shelter 16,100 ECCBG 16,100 Part-time staff and other professional services 15,000 TIF 15,000 Outreach 250 5,000 TIF 5,000 Lighting 140,705 TIF 140,705 Total 106,000 882,755 Summary of Expenditures TIF 106,000 524,255 Big Box Funds 232,000 HB 645 110,400 ECCBG 16,100 Total Expenditures 106,000 882,755 Ending Balance 485745 0 48