HomeMy WebLinkAboutDowntown Bozeman Improvement District Tax Increment Finance (IDB-TIF) Work Plan and Budget.pdf
August 4, 2010
TO: Chris Kukulski
Anna Rosenberry
Bozeman City Commission
FR: Chris Naumann
Executive Director
Re: Tax Increment Finance District FY 2011 Budget and Work Plan
Commission Meeting: August 16, 2010
Attached are the Downtown Tax Increment Finance District (TIF) Budget and Work Plan for FY
2010 that was unanimously approved by the TIF Board on July 20, 2010. Also included is the
TIF FY2010 Annual Report review last year’s activities.
I will be presenting these documents at the City Commission meeting on Monday, August 16,
2010.
If you have any questions regarding either of the budgets or work plans, please feel free to
contact me at any time.
Chris Naumann
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Downtown Tax Increment Finance (TIF)
2010 Annual Report
&
2011 Work Plan
On November 6, 1995, the City Commission passed Ordinance No 1409 adopting the Urban Renewal Plan
for downtown Bozeman. The intent and purpose of the Urban Renewal Plan emphasizes:
1. Bozeman’s historical character as a “working” downtown shall be maintained.
2. Traffic movement and access shall be designed with the emphasis on the downtown as a
designation rather than improving the flow of through traffic.
3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan.
4. Objectives shall be accomplished by incentives whenever possible.
5. Private property rights will be respected.
6. Administrative practices shall be conducted in a constructive manner which fosters cooperation.
The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s
historic downtown. The Urban Renewal Study Committee considered the first three principles more
important than the next three with the last three the least important. However, the Committee deemed all
nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified
for each principle (may apply to multiple principles, but are only listed once below).
1. Strengthen downtown’s economic vitality
· Provide more, better managed parking; retain public offices and anchor businesses; facilitate
commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high
density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly
2. Improve the safety, security and health of the district
· Improve traffic flow emphasizing downtown as a destination; improve public works; improve
night-time lighting; improve sidewalks; increase police presence; improve alley and parking lot
appearance and safety
3. The image of downtown shall be continuously improved
· Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to
Bozeman Creek; improve trash removal
4. Downtown’s accessibility shall be improved
· Provide effective public transportation; better accommodate bicycles; reduce reliance on private
automobiles
5. “Community Partnership” is fundamental to downtown’s success
· Encourage growth of cultural activities; preserve historic character
6. Downtown’s diversity shall be facilitated
7. The cost of projects and programs shall be weighed against their benefits
8. Downtown shall become more user friendly
9. Cultural activities shall be nurtured and expanded downtown
TIF-IDB Mission Statement
The Downtown Bozeman Tax Increment Finance board (TIF) will foster an economically thriving
district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the
vitality and diversity of the Gallatin Valley as its social and cultural center.
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Tax Increment Finance-Improvement District Board (TIF)
FY2010 Annual Report
Downtown Parking Garage $ 425,287 invested
The TIF made a payment of $425,287 on the Bridger Park Garage construction bond.
Chris Naumann, TIF Director, has continued to play an active role in the operation and
maintenance of the parking garage as a member of the Bozeman Parking Commission.
Downtown Partnership Management Fee $ 74,000 invested
The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the
incorporated management agency for all of the downtown organizations. This management fee
pays for a portion of the operating costs of the Downtown Partnership office in addition to a portion
of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF.
Downtown Explosion Impact Fee Relief $ 10,181 invested
On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of
Understanding that the TIF would pay the any impact fees associated with construction projects
resulting from the destruction of the March 5, 2009 explosion and fire. The TIF subsequently paid
the assessment fee incurred by the American Legion reconstruction project.
Redevelopment Technical Assistance Grant Program $ 45,900 encumbered
This program supports current or potential developers, owners, and tenants with technical
assistance during the preliminary phases of possible redevelopment projects in the downtown tax
increment district. This program facilitates navigating code requirements, preparing for the planning
application and approval process, and evaluating historic preservation considerations.
The following services are eligible for Technical Assistance funds: Development feasibility study,
Preliminary development review, Building condition assessment, Renovation or reuse studies,
Historical inventory and research, Parking requirement assessment, Preliminary cost estimates,
UDO and building code analysis, Scenario planning and phasing. The TIF awarded 7 grants to a
variety of proposed redevelopment projects throughout the district.
Streetscape Assistance Program $ 19,325 encumbered
This TIF program will provide property owners with partial reimbursement for the installation of
historic street lamps in accordance with the Downtown Streetscape Plan. The program is
designed to stimulate private investment, redevelopment of property and the improvement of public
areas in the downtown urban renewal district. The TIF approved 3 streetscape improvement
projects involving the installation of historic street lamps.
Streetscape Element Purchases $ 26,820 invested
The TIF purchased additional streetscape elements to augment those already located in the
downtown district. This year’s purchases included: pedestrian benches, trash receptacles, and
bicycle racks.
Streetscape and Park Maintenance $ 9,250 invested
The TIF pays for the replacement of dozens of the street lamp light bulbs annually. For several
years the TIF has taken responsibility for the seasonal maintenance of the landscaping, amenities,
and irrigation system at Soroptomist Park. To date this work has been coordinated with
Greenspace Landscaping. The TIF installed 3 concrete bases for the installation of public art
sculptures in coordination with the Gallatin Art Crossing.
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Tax Increment Finance-Improvement District Board (TIF)
FY2011 Work Plan
Downtown Parking Garage $ 426,188 budgeted
The TIF will make the annual bond payment for the construction of Bridger Park, the downtown
parking garage.
Downtown Improvement Plan Implementation $ 125,000 budgeted
The TIF board has allocated funds to be invested in a high-priority project identified by the
Downtown Improvement Plan. These funds could be used for further planning or design projects
or for implementation of a particular project. Likely projects this year include the Downtown Urban
Route Transformation (One-ways) Study and the Bozeman Creek Enhancement Plan.
Downtown Explosion Impact Fee Relief $ 120,000 budgeted
On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of
Understanding that the TIF would pay the any impact fees associated with construction projects
resulting from the destruction of the March 5, 2009 explosion and fire. The TIF anticipates paying
the impact fees associated with the F&H Building and perhaps one other re-construction process
this year.
Downtown Housing Incentive Program $ 100,000 budgeted
The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of
new housing units within downtown TIF District. The intent of the program is to increase the
residency rate and subsequently the tax base of the TIF District. The 2009 Downtown
Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core
in order to support downtown as a vibrant and sustainable commercial center. The specifics of this
program are still being drafted. No implementation date has been established.
Redevelopment Technical Assistance Grant Program $ 75,000 budgeted
This program supports current or potential developers, owners, and tenants with technical
assistance during the preliminary phases of possible redevelopment projects in the downtown tax
increment district. This program facilitates navigating code requirements, preparing for the planning
application and approval process, and evaluating historic preservation considerations.
The following services are eligible for Technical Assistance funds: Development feasibility study,
Preliminary development review, Building condition assessment, Renovation or reuse studies,
Historical inventory and research, Parking requirement assessment, Preliminary cost estimates,
UDO and building code analysis, Scenario planning and phasing.
Downtown Partnership Management Fee $ 74,000 budgeted
The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the
incorporated management agency for all of the downtown organizations. This management fee
pays for a portion of the operating costs of the downtown office at 224 East Main Street in addition
to a portion of the payroll costs of Chris Naumann, who serves as the Director of the TIF.
Streetscape Assistance Program $ 35,000 budgeted
This TIF program will provide property owners with partial reimbursement for the installation of
historic street lamps in accordance with the Downtown Streetscape Plan. The program is
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designed to stimulate private investment, redevelopment of property and the improvement of public
areas in the downtown urban renewal district.
Streetscape Element Purchases $ 35,000 budgeted
The TIF will continue to supplement the existing streetscape inventory by purchasing additional
historic street lamps, trash receptacles, pedestrian benches, tree guards and bike racks.
Downtown Parking Study $ 30,000 budgeted
Continuing its commitment to the importance of parking in the downtown district, the TIF has
agreed to fund the 2010 Downtown Parking Study as requested by the Bozeman Parking
Commission. Western Transportation Institute was selected by the BPC to conduct a
comprehensive inventory and usage study of public and private parking assets downtown.
Streetscape and Park Maintenance $ 10,000 budgeted
The TIF will continue to maintain the large number of streetscape elements in the downtown
district, all of which were originally purchased with TIF funds, including: historic street lamps,
pedestrian benches, trash receptacles, tree guards, and bicycle racks. Depending on the recent
adoption of Soroptomist Park as an official City of Bozeman park, the TIF will consider park
maintenance expenditure this fiscal year.
The FY2011 Downtown Tax Increment Finance District Work Plan and Budget were
unanimously approved by the TIF Board on July 20, 2010.
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Downtown TIF FY2011 Budget
Approved 1 Revised 2
Category FY2011 Budget FY2011 Budget
Income
Starting Cash Balance 952,057$ 952,057$
Income from TIF (estimated)1,060,000$ 1,060,000$
COB Interlocal Share 38,546$ 38,546$
Entitlement Share State of Montana 34,620$ 34,620$
Interest Income (estimated)10,000$ 10,000$
Other Income (sold Library benches)-$ -$
Total Income 2,095,222$ 2,095,222$
Expense
Operations
Management Fee and Admin.74,000$ 74,000$
Total Operations 74,000$ 74,000$
Street Improvement
Street Furniture and Park Maintenance 10,000$ 10,000$
Streetscape--new purchases 35,000$ 35,000$
Streetscape Assistance Program 35,000$ 35,000$
FY10 Encumbered Funds 19,325$
Total Street Improvements 80,000$ 99,325$
Planning
Downtown Parking Study 30,000$ 30,000$
Development Assistance Grants 75,000$ 75,000$
FY10 Encumbered Funds 45,900$
Housing Incentive Program 100,000$
DBIP Implementation Funds 125,000$ 125,000$
Total Planning 230,000$ 375,900$
Parking Structure
Garage Bond Payment 426,188$ 426,188$
Total Parking Garage Payments 426,188$ 426,188$
Explosion Impact Fee Expenses
Explosion Impact Fees 60,000$ 120,000$
Total Impact Fee Expenses 60,000$ 120,000$
Total Expenses 870,188$ 1,095,413$
Year End Balance 1,225,034$ 999,809$
1Budget originally approved on June 15, 2010 by a unanimous vote of the TIF Board
2REVISED budget was approved on July 20, 2010 by a unanimous vote of the TIF Board
8/6/2010 TIF Budget 2011 Revised-APPROVED.xls
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