HomeMy WebLinkAboutResolution No. 4298, adding a technical assistance grant to N7Rehab
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Keri Thorpe, Assistant Planner
Tim McHarg, Planning Director
Chris Kukulski, City Manager
SUBJECT: Amendment to Resolution 4289 to add Technical Assistance Grant to
N7Rehab – A Redevelopment Incentive Grant Program for the North 7th
Avenue Urban Renewal District
MEETING DATE: November 1, 2010
AGENDA ITEM TYPE: Consent Item
RECOMMENDATION: Consider a motion to approve Resolution 4298 to add Technical
Assistance Grants to the Redevelopment Incentive Program (“N7Rehab”) for the North 7th
Avenue Urban Renewal District
BACKGROUND: On September 20, 2010, the City Commission approved Resolution 4289
creating N7Rehab, a redevelopment incentive program for the N. 7th Avenue Urban Renewal
District. The program was created to reduce blighting influences and to offset the costs of
redeveloping a property within the District in order to encourage private investment and
stimulate economic and business development. Eligible costs paid by the grant funds are those
that implement the District Plan and/or eliminate blight.
At the Board’s regular meeting held on October 7, 2010, the NSURB voted in favor of making a
portion of the N7Rehab FY11 funding available for Technical Assistance. The TIF Board will
hold $36,000 in reserve from the N7Rehab Façade/Site Redevelopment Fund, which will fund
approximately 400 professional hours using a value of $90.00 per hour. Individual grant award
amounts will provide a maximum of $7,200.00 (based on 80 hours at a rate of up to $90/hour)
for professional architectural, design, or engineering assistance for preliminary site planning and
design assistance. A summary of the professional service provider’s accreditations and/or years
of building design experience or site development is required with the application. Applicants
will complete an Informal Review with the Development Review Committee, and Design
Review Board if applicable, in partial fulfillment of the grant criteria. See page 6 of Attachment
A (Amended) for additional information.
Assistant City Attorney Tim Cooper was consulted during the drafting of program documents.
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UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: On August 2nd, 2010 the City Commission approved the North 7th Avenue
Urban Renewal Board Annual Work plan and Budget for FY2011. This budget allocated
$265,000 of the District’s tax increment financing for N7Rehab. Within N7Rehab, $100,000 is
allocated for grants for Site and Façade Rehabilitation. The $36,000 to fund technical assistance
grants will come from Site and Façade Rehabilitation fund leaving $64,000 for eligible
construction activities. As grant recipient projects are successfully completed, these funds will be
expended.
Attachments: Resolution number 4289
Resolution number 4298
Attachment A Amended October 20, 2010
NSURB October 7, 2010 Draft Meeting Minutes
N7Rehab Application Form
Report compiled on: October 21, 2010
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COMMISSION RESOLUTION NO. 4298
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE ADDITION OF TECHNICAL ASSISTANCE
TO THE NORTH SEVENTH AVENUE URBAN RENEWAL DISTRICT
N7REHAB REDEVELOPMENT AND REHABILITATION INCENTIVE
PROGRAM (“N7REHAB”).
WHEREAS, the Bozeman City Commission did, pursuant to law, on the 22nd day of
August 2005, adopt Resolution Number 3839, declaring that blighted areas exist in the portion of
the North Seventh Avenue Corridor and that rehabilitation, redevelopment, or a combination
thereof of the area is necessary and in the interest of the public health, safety, morals, or welfare
of the residents of Bozeman; and
WHEREAS, The Bozeman City Commission did, pursuant to law, on the 27th day of
November 2006, adopt Ordinance Number 1685 defining the North Seventh Urban Renewal
District (the “District”) boundary, creating a North Seventh Urban Renewal Board (the “Board”)
and authorizing the Board to act as the “agency” to exercise urban renewal powers; and
WHEREAS, the Board was appointed and developed a work plan and budget for
FY2011 and presented that plan to the Bozeman City Commission who did, on the 2nd day of
August, 2010, approve the FY2011 Annual Work Plan and Budget for the North Seventh Urban
Renewal Board; and
WHEREAS, the FY2011 Annual Work Plan did include funding for “N7Rehab”, a
“Façade and Site Rehab”, “Demolition” and a “Public Right-of-way Improvements” program;
and
WHEREAS, 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; and
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WHEREAS, as part of the FY 2011 Work Plan, and to fulfill the above statutory
requirements, the NSURB developed a program for the granting of monies authorized by the
City Commission to redevelop and rehabilitate the District the name of which program is the
North Seventh Avenue Redevelopment and Rehabilitation Incentive Program (to be known as
“N7Rehab); and
WHEREAS, the purpose of N7Rehab is to provide a program to encourage voluntary
repair and rehabilitation of commercial property within the District in accordance with the
provisions of the Montana Urban Renewal Law; and
WHEREAS, the City Commission, on September 20, 2010 did adopt Resolution 4289
creating “N7Rehab;” and
WHEREAS, the NSURB wishes to add Technical Assistance as a component of
N7Rehab grant program.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
The NSURB is hereby delegated authority to administer the N7Rehab as set forth in
Attachment “A,” amended to include a Technical Assistance Program to offset the cost of the
professional services needed to investigate property redevelopment, and may enter into
agreements with Applicants necessary to accomplish the purposes of the program;
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 1ST day of November, 2010.
_____________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_____________________________________
GREG SULLIVAN
City Attorney
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Page 1 of 8
ATTACHMENT A (Amended October 20, 2010)
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
construction activities such as 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. Technical Assistance funding is also
available for professional services such as site planning, engineering and surveying.
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
• Reduce blighting influences in the District
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.
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.
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ELIGIBILITY REQUIREMENTS FOR CONSTRUCTION ACTIVITIES
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. See page six for information on Technical Assistance Grants.
1. The project property must be located within the North 7th Avenue Tax Increment Finance (TIF)
District. A detailed map of the district can be found at www.bozeman.net
2. Maximum grant award is set every fiscal year. For FY2011 the maximum award is $50,000 or 15%
of the total project cost, whichever is less. If seeking a grant solely for demolition, the grant award
may total up to 50 percent of the eligible demolition costs or $25,000, whichever is less.
3. All projects must be reviewed by the NSURB, and the award amount is at the discretion of the
NSURB.
4. This is a reimbursement program for ELIGIBLE CONSTRUCTION ACTIVITIES (See Eligible
Construction activities and Applicant and NSURB Responsibilities below).
5. All building and site improvements must be completed within one year of approval. Extensions may
be granted by NSURB. Funds will not be disbursed until a Certificate of Completion is issued by
NSURB staff AND Certificate of Occupancy is issued by the Building Division.
6. 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 buildings with five 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.
7. 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.
8. 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.
9. Special Improvement District and property tax assessments of the property to be rehabilitated must
be paid to date.
10. 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.
11. Applicants must fully satisfy any other outstanding requirements related to NSURB funded projects
before they are eligible to submit another application.
12. 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.
13. Building façade improvements must meet the standards described in the Bozeman Design Objectives
Plan. Design Review Staff or the Design Review Board may assist in determining the eligibility of
costs associated with building design improvements.
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Page 3 of 8
14. The property must currently be in commercial use or a legally binding commitment must exist, such
as an executed lease agreement, before the grant may be awarded. Evidence of these commitments
must be submitted.
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
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
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 and awnings. 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
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Page 4 of 8
7. Storm water facility improvements
8. Architectural and engineering assistance and design review fees are eligible but may not exceed 10%
percent of the eligible construction costs or $5,000, whichever is less.
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;
• 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
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 Streetscape Enhancement Funding 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
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.
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Page 5 of 8
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 as established by the Department of Planning and
Community Development (DPCD. These materials are provided to the NSURB for review and
approval, so ten (10) additional copies of the application are required to facilitate the review process.
NSURB staff and/or Planning 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/invoices 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 eligibility. 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 working
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/invoices for completed N7Rehab eligible improvements
6. NSURB staff closes out the application upon satisfactory completion of the project and submits
NSURB CERTIFICATE 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 property
owner/lease holder.
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TECHNICAL ASSISTANCE GRANTS
To encourage property owners, tenants and site developers to redevelop commercial properties within the N. 7th
Ave Urban Renewal District, the NSURB has set aside funds so that interested parties may apply for funds to
offset the cost of the professional services needed to investigate property redevelopment. Funding for the
following services may be available for vacant or deteriorated properties along the N. 7th Avenue Corridor.
Funding:
The TIF Board will hold $36,000.00 in reserve that will fund approximately 400 professional hours using a
value of up to $90.00 per hour. Individual grant award amounts are discussed below.
Technical Assistance Grant Criteria:
The Technical Assistance grant will provide a maximum of $7,200.00 per property (or properties in contiguous
use) for professional architectural, design, or engineering assistance for preliminary design assistance. Grants
for technical assistance may be awarded to complete the following:
a. Site Planning and Master Site Planning
b. Building condition assessment in conjunction with exterior renovation or reuse proposals for
existing structures
c. Engineering and surveying services
d. Landscape Design
e. Preliminary Development Review
The services provided will result in project proposals that are consistent with the following documents:
· Design and Connectivity Plan for the North Seventh Avenue Corridor
· Bozeman Design Objectives Plan
· Title 18 of the Bozeman Municipal Code
· Bozeman Community Plan
These documents are available at www.bozeman.net
No applicant for a technical assistance grant may be directly involved in providing the services secured by the
grant. “Directly involved” means the person or entity is responsible or shares responsibility for conducting the
service or evaluating plans or has a tangible or intangible personal or financial interest in the service transaction.
Review Process:
Grant Applications will be reviewed by NSURB staff under the supervision of the NSURB. Staff will review
applications on a first come, first served basis for the duration of funding availability. The service provider
must demonstrate that they are qualified to perform the work. Accreditations and/or experience in providing
such services will be considered. Projects that are recommended for approval will be submitted to the Board for
final approval. The decisions made by the NSURB are final.
An application for an Informal Review shall be submitted to the DPCD as a requirement of the grant award. At
a minimum, the Development Review Committee shall review the application. In some cases, the Design
Review Board may be consulted. The application fees will be paid out of the awarded grant amount.
The receipt and completion of a Technical Assistance grant does not obligate the applicant to continue with the
project.
APPLICANT RESPONSIBILITIES
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The successful Applicant for NSURB assistance must undertake the following responsibilities pursuant to the
N7Rehab Technical Assistance Program.
1. Application and supporting documentation is submitted to the DPCD.
2. Applicant signs Letter of Acknowledgement stating that the professional services provided with
result in proposals consistent with the grant criteria.
3. An application for Informal Review with the Development Review Committee (and Design Review
Board, if applicable) is submitted to the DPCD.
4. Once the Informal Review is complete, and the review criteria have been satisfactorily met, the
applicant will provide receipts/invoices verifying the cost of the professional services provided.
NSURB RESPONSIBILITIES
1. NSURB staff reviews the application and determines eligibility.
2. NSURB staff prepares a report for the Board and distributes the report to Board members 5 working
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 a Letter of Award
5. NSURB staff attends meetings for Informal Review
6. Upon completion of grant requirements, staff sends a request to the City Finance Department to
release funds to the property owner/lease holder.
Technical Library:
Upon completion, the Informal Review application will remain on file in the DPCD as a reference for those
seeking information on redevelopment of site.
Release of funds:
As with other N7Rehab Programs, the Technical Assistance component is a reimbursement program. No funds
will be disbursed until all the grant criteria have been satisfactorily met. In addition to completing the Informal
Review with the Development Review Committee, the applicant will submit an invoice for the hours worked at
the rate stipulated by the award agreement. Payment will be made to the property owner or lease holder for the
hours worked on the project. Payment will not exceed the maximum award amount. Neither the City nor the
NSURB shall incur any obligation for professional services secured by property owner in furtherance of the
application.
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Disclaimer:
Neither the NSURB nor the City of Bozeman shall be responsible for the planning, design, or construction
proposed by any work conducted as part of N7Rehab. No warranties or guarantees are expressed or implied by
the description of, application for, award of or participation in N7Rehab.
Time Frame:
Grants will be available through June 30, 2011 or until funding is depleted. The Program will be re-evaluated
annually and considered for funding.
Applying:
Applicants are advised to submit a complete application and all supporting materials per the instructions in this
packet and per the Department of Planning and Community Development’s application requirements for plan
review. Incomplete applications will not be reviewed.
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DELEGATION OF AUTHORITY
The NSURB is, hereby, delegated authority to administer the N7Rehab as set forth in this application packet
and Resolutions 4289 and 4298 and may enter into agreements with Applicants necessary to accomplish the
purposes of the program.
N7Rehab Project Review Criteria
Project Name: ______________________________________________________________________
Does the project address conditions of blight?
1. Does it lack or have inadequate or age obsolescent public improvements? How does the project
address…
a. Lack of or poor storm water facilities?
b. Missing or poor sidewalk condition?
c. Landscaping in public right-of-way that’s missing or in poor condition?
d. Lack of coordinated parking lot approaches?
e. Parking lot access issues (excessive in number and/or width)?
f. Encroachments into the public right-of-way?
g. Curb and gutter in poor condition?
2. Is it an age obsolescent building/site? How does the project address…
a. non-compliant signage?
b. lack of paving or poor condition of paving in the parking area?
c. ADA compliance issues?
d. landscaping, missing or out of compliance?
e. Parking circulation issues, such as backing into the public right-of-way?
f. The lack of storm water control?
3. Is the building/site currently vacant?
4. Is it converting a building/site from a non-conforming B-2 District Use to a conforming use?
Does it meet the guidelines of the District Plan?
1. Does it meet the site and building level objectives (p.2) of the Design and Connectivity Plan for the
North 7th Avenue Corridor (DCP) by
a. Encouraging the rehabilitation and redevelopment of parcels that are underutilized or do not
meet current standards;
b. Establishing a stronger relationship between buildings and the street by providing pedestrian
connections and orienting buildings to the street;
c. Incorporating pedestrian amenities and landscaping in existing developments as well as in new
ones; and/or
d. Incorporating public art in small pocket parks and plazas?
2. Does it meet the site and building related corridor goals (p.5) of the DCP?
a. Strengthen the corridor as a neighborhood service center by providing
i. Double fronting building
ii. Pedestrian connection to public right-of-way and on-site bicycle facilities
iii. Landscape buffers when adjacent to residential neighborhood
b. Does the proposal improve the aesthetic experience by strengthening the appearance, character
and feel of the building through the application of guidelines from the Bozeman Design
Objectives Plan?
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COMMISSION RESOLUTION NO 4289
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN
MONTANA AUTHORIZING THE NORTH SEVENTH AVENUE URBAN
RENEWAL DISTRICT N7REHAB REDEVELOPMENT AND
REHABILITATION INCENTIVE PROGRAM N7REHAB AND
AUTHORIZING THE NORTH SEVENTH URBAN RENEWAL BOARD AND
NSURB STAFF NSURB TO PROVIDE FOR THE ADMINISTRATION OF
N7REHAB
WHEREAS the Bozeman City Commission did pursuant to law on the 2211d day of
August 2005 adopt Resolution Number 3839 declaring that blighted areas exist in the portion of
the North Seventh Avenue Corridor and that rehabilitation redevelopment or a combination
thereof of the area is necessary and in the interest of the public health safety morals or welfare
of the residents of Bozeman and
WHEREAS The Bozeman City Commission did pursuant to law on the 27 day of
November 2006 adopt Ordinance Number 1685 defining the North Seventh Urban Renewal
District the District boundary creating a North Seventh Urban Renewal Board the Board
and authorizing the Board to act as the agency to exercise urban renewal powers and
WHEREAS the Board was appointed and developed a work plan and budget for
FY2011 and presented that plan to the Bozeman City Commission who did on the 2 d day of
August 2010 approve the FY2011 Annual Work Plan and Budget for the North Seventh Urban
Renewal Board and
WHEREAS the FY2011 Annual Work Plan did include funding for N7Rehab a
Fagade and Site Rehab Demolition and a Public Rightofway Improvements program
and
WHEREAS the intent of these funds is to offset the cost of redevelopment of
substandard or blighted properties along N 7 Avenue and
Page 1 of 4
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WHEREAS by Ordinance No 1685 the North Seventh Urban Renewal Board was
granted the powers under Section 7154233 MCA except for subsection h entry into any
building or property will only be gained with owners permission and
WHEREAS Section 7154233 subsection 1a MCA grants the City the power to
formulate and coordinate a workable program as specified in 7154209 MCA and
WHEREAS Section 7154209 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
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 replanning 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
WHEREAS Section 7154288 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 7154233 and
WHEREAS as part ofthe FY 2011 Work Plan and to fulfill the above statutory
requirements the NSURB developed a program for the granting of monies authorized by the
City Commission to redevelop and rehabilitate the District the name of which program is the
North Seventh Avenue Redevelopment and Rehabilitation Incentive Program to be known as
N7Rehab and
WHEREAS the purpose ofN7Rehab is to provide a program to encourage voluntary
repair and rehabilitation of commercial property within the District in accordance with the
provisions of the Montana Urban Renewal Law and
WHEREAS the NSURB seeks the confirmation of the City Commission for the
N7Rehab and its administrative processes
Page 2 of 4
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NOW THEREFORE BE IT RESOLVED by the City Commission of the City of
Bozeman Montana the City as follows
Section I
That 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 in
accordance with the provisions of the Montana Urban Renewal Law Additional objectives of the
Program 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
Reduce blighting influences in the District
Section 2
The grants are to be awarded at the discretion of the NSURB based upon review of the
Applicants compliance with program objectives eligibility requirements and eligible
construction activities as provided in the N7Rehab Program Description and N7Rehab Review
Criteria as set forth in Attachment A
Section 3
The NSURB provides a Work Plan and Budget to the City Commission on an annual basis at
which time the NSURB requests a portion ofthe Districts tax increment be allocated for
N7Rehab and therefore eligible projects granted awards by the NSURB
Section 4
The NSURB is hereby delegated authority to administer the N7Rehab as set forth in
Attachment A and may enter into agreements with Applicants necessary to accomplish the
purposes of the program
Page 3 of 4
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PASSED AND APPROVED by the City Commission of the City of Bozeman Montana
at a regular session thereof held on the 20 day of September 20
F YJEFAusXar
City
U AWN 4
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Page 4 of 4
ATTEST
B 0
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Page 1 of 3
Unapproved minutes from October 7, 2010 board meeting
held at the Stiff Building, upper conference room
TO DO List: Everyone attend November 4 board meeting
Carl get easement back to Van’s for corrections
Dustin draft RFP to bring to November meeting
Keri start looking at SILD.
get TAG option to Tim Cooper for approval and
work with Media Works to get website up and going
Attendance: Keri Thorpe, Dustin Johnson, Susan Fraser, Andrew Cetraro, Carl Solvie,
Scott Hedglin
Call to Order – Andrew called to order at 4:38pm
Public Comment – Lee Hazelbaker with Streamline in the audience but with no
particular comment to make.
Meeting Minutes – Keri had made a few edits to September 8 notes. Susan made the
motion to accept the minutes of July 1, August 5, September 2 and September 8 2010,
with Keri’s corrections to the Sept 8, as presented. Carl seconded the motion. All in
favor.
Outreach event followup
Everyone chatted about the conversations they had with attendees. Discussion
brought out that it was a good gathering.
Sidewalk project status report
Final walk-thru will be done next week, Dustin said, and grass will be sprayed in the
Spring. Keri and Dustin are still awaiting product from Allied – lighting study,
character development, etc – as they would like to have a compilation of the design
work they have done. Carl asked how much Allied had been paid. Dustin rehashed the
three phases that have been done with a total bill close to $100K. Discussion.
Dustin went on to report that one easement was kicked back – the original for Van’s.
He handed Carl the original copy and Carl will take it to the property owners for the
corrections to the two notarial blocks.
Phase II improvements
Dustin rehashed the board’s desire for this phase to be lighting from I-90 to
Tamarack, both sides, with sidewalks where missing. Discussion. Dustin went on to
say he hopes to be able to use the lighting study done by Allied/CTA in order to make
this project easier.
As for the RFP, Dustin suggested going with the top 2 firms from the 2009 RFQ list =
Morrison-Maierle and CDM. He said he would prefer to go with Morrison-Maierle.
Andrews said he was good with Morrison-Maierle. Dustin went on to say the RFP is
turned in by the company and then negotiations begin on pricing, etc.
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Page 2 of 3
This is truly a small project, Dustin said. Carl stated he would like to have two bids,
and Dustin replied that state code says we can’t ask for two bids, continuing with an
explanation of basic costs are pre-established, etc.
Discussion. Dustin will put together the RFP and bring to the next board meeting for
approval. Carl, Susan and Andrew agreed they are comfortable with staff making this
selection.
Andrew asked when work could begin on the lighting. Dustin said the optimistic
installation date would be Summer 2011. He is hoping for an April/May bid for
construction. Keri said it would be easier to start the SILD with some engineering
documents inhand. She will create the lighting district(s) to fit, adjusting as necessary
based on what RFP and bids determine possible with available monies. North of Oak
Street will be a new lighting district but all the rest are existing SILDs that might have
to be split. Keri went on to say staff will have to figure out the existing maintenance
contract with NorthWestern Energy and what will actually happen with this new
lighting. Andrew said it would be a priority to get word out to property owners about
the lighting.
Carl asked if any easements would be necessary. Staff responded there is the potential
for easement needs if lights need to be placed in unworkable spot. Carl and Andrew
said shouldn’t be hard to sell idea as free stuff will be installed.
Carl also asked if owners will have to sign off on the SILD or will the city mandate the
district? Keri said commissioners must take a vote. Discussion.
Bus shelter update
Scott said Lee (in the audience) had approved the design. He went on to say will be
ready to go to bid in two weeks. Scott asked Dustin for front-end specifications; Dustin
will ask Justin to get them to Scott.
Website status, board oversight
Keri reported meeting with Media Works last week. She did want to ask the board if
OK to use as the webpage header the invitation artwork she’d done for the outreach
event as the Media Works folks wanted to use it. Keri went on to rehash all the items
the board had wanted, and will be added, on the website.
Keri said the professional agreement was signed for $2200.
Susan made the motion to direct staff to provide oversight of website. Carl seconded.
All in favor.
Technical Assistance Grant option as addition to N7Rehab program
Susan rehashed her memory of the September 2 discussion. Andrew agreed with those
that said overview shouldn’t be a requirement of the TAG as the plans will be seen by
city staff in the next steps of implementation. Keri said redevelopment will be dealing
with existing structures so good to have city staff look at plans early on to save
problems later. Staff had discussed and agreed informal review a good requirement.
Keri likes informal review because discussion happens, i.e. signage that is in question,
etc.
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Page 3 of 3
Keri continued with the Downtown example, noting the questionable part being the
plans are kept confidential for 180 days - legal counsel has issues with this disclosure
element as are using public money so plans should be public at all times. She went on
to say the new director, Tim McHarg, had told her after the September 2 NSURB
meeting to speak with Tim Cooper. Tim was worried that nothing will be done with
work paid for with TAG although work is supposed to be kept in planning office for
anyone to use in future. Tim was also worried about skirting state procurement rules.
Keri had also chatted with other urban planners and she thinks there is a way to do
the TAG. A reimbursement option could work – the owner hires own consultant and
can present at informal review, followed by a reimbursement to the owner.
Andrew noted his issues: people will reissue their proposals; with legal you will get
different answers. Carl noted he liked the informal review with staff requirement as we
can’t waste money on unusable plans. Discussion continued. Andrew said it was
confusing – the board can use discretion in awarding the grants. He doesn’t want to
confuse the property owners.
More discussion. Keri said can do as she’s written or board can put out RFQ and get
qualified consultants that property owners can pick from. Carl likes the grant and
thinks informal review and RFQ are good options. Scott agreed with Carl, saying when
applications come through we can see if valid or not. Andrew likes reimbursement
option.
Discussion. Keri said monies for engineering plans already part of the N7rehab
program. Andrew noted he would like to start the TAG program with one year to try as
downtown is now doing, noting the most we’d lose would be $36K. He went on to say
the board could reevaluate in one year and then set budget at $0 from there on out if
doesn’t work out well. Scott and Carl said do not want to do RFQ. Scott went on to say
limit the TAG to $5k to keep under purchasing limits, but Keri noted $2500 is the
limit in this situation.
Keri asked what the board wants to be involved with in the grant process. Scott and
Andrew said they do not wish to sit around the table but they do want the grantees to
produce deliverables to the board. Discussion included sticking with the proposed
$7200 grant limit, $90/hour for professional work. Keri noted these choices do
simplify as doing the RFQ would require a lot. Keri will meet with Tim Cooper and get
approval to add the TAG to the N7Rehab program.
Andrew made the motion to direct staff to work with the assistant city attorney to
create the Technical Assistance Grant option for the N7Rehab program with the
understanding that the board can set funding to $0 if doesn’t pan out as a good option
over the course of the first year. Carl seconded. All in favor.
FYI
none
Adjournment
Andrew adjourned the meeting at 6:05pm.
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North 7th Urban Renewal District
Redevelopment Incentive Program
Application for N7Rehab Funding
Property Information
Property Address: _______________________________________________________________________
Property Owner: ________________________________________________________________________
Legal Description: _______________________________________________________________________
Property Geo-Code: ____________________________________________________________________
County Tax ID #: _______________________________________________________________________
Log on to http://webapps.gallatin.mt.gov/mappers/ to obtain Geo-codes and Tax ID#s
Applicants Legal Name and Contact Information
Name: _______________________________________________________________________________
Company or LLC entity: __________________________________________________________________
Address: ______________________________________________________________________________
City/State/zip: __________________________________________________________________________
Phone: ________________________________________________________________________________
Email: _________________________________________________________________________________
Additional Information
1. Project Description
· Tell us about the type and scale of the development. Tell us why you want to redevelop a property along N. 7th Avenue
and how your project reduces the blighted condition of the property (not to exceed 1 typed page).
2. Technical Assistance
· If applying for a Technical Assistance Grant, please provide the accreditations and building design/site development
experience of the professional assisting the property owner.
3. Site Plan & Renderings and Elevations · These should be the same plans submitted for Site/Sketch Plan review to the Planning Department. Please provide
enough copies for each Board Member (11x17 versions are acceptable)
4. Total Project Cost Estimates
· Please include the total project cost estimate, with supporting independent bid documents. Two cost estimates are
required for all eligible activities for which the applicant seeks funding. Use N7Rehab Cost Estimate work sheet(s).
Estimates may be provided in your application, but bid contracts are required prior to finalizing the development
agreement.
5. IMPORTANT · Applications must be received at least 15 days prior to the next NSURB board meeting and in conjunction with an
Application to the City Planning Department. This is to allow adequate time to place the item on the NSURB meeting
agenda and for a thorough staff review of the application for presentation to the North 7th Urban Renewal Board. Approval
for N7Rehab funding does not guarantee approval from other City Departments. Failure to receive approvals from
applicable City Departments before beginning construction will result in the revocation of project funding award under this
program.
Submit 10 copies of application and attachments to: North Seventh Urban Renewal Board
20 E. Olive St., PO Box 1230, Bozeman, MT 59771
For what type of project(s) are you requesting N7Rehab grant funding:
U Technical Assistance U Façade/Site Improvements
U Demolition U Streetscape Enhance
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