HomeMy WebLinkAboutResolution 4307 amending N7Rehab incentive programCOMMISSION RESOLUTION NO. 4307
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE AMENDMENT OF THE TECHNICAL
ASSISTANCE COMPONENT 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 22" 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"
or "NSURB") 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 FY201 I Annual Work Plan and Budget for the North Seventh Urban
Renewal Board; and
WHEREAS, as part of the FY 2011 Work Plan, 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 "N7Rchab); and
WHEREAS, the City Commission, on September 20, 2010 did adopt Resolution 4289
creating "N7Rehab;" and
WHEREAS, the City Commission, on November 1, 20 did adopt Resolution 4298
adding Technical Assistance as a component of N7Rehab grant program; and
WHEREAS, the NSURB desires to amend the informal review process for Technical
Assistance Grants;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana (the "City"), as follows:
Section I
The N7Rehab, administered by the North Seventh Urban Renewal Board, is hereby
amended by modifying the definition of informal review, by deleting the Development Review
Committee requirement within the Technical Assistance Grant, and defining informal review as
review by planning office staff, as set forth in Attachment "A."
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 3` day o J anuary, 201
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�JJ W S S
FK. A U
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, ; SULLIVAN
Attorney
ATTACI IMENTA (Amended December 22, 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
fagade 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 7' Commercial Rehabilitation Incentive Programs (N7Rehab)
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 7"' 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, KC.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.
Attachment A - Resolution No. 4307
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 7"' 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 fagade 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.
Attachment A - Resolution No. 4307
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 1. 8.34 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. Fagade
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
Attachment A - Resolution No. 4307
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 ineligibl 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 N7Rchab 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. 7"' 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. 7"' 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
I . 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.
Attachment A - Resolution No. 4307 4
APPLICANT RESPONSIBILITIES
The successful Applicant for NSURB assistance must undertake the following responsibilities pursuant to the
N7Rehab Program.
I . 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.
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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.
Attachment A - Resolution No. 4307
TECHNICAL ASSISTANCE GRANTS
To encourage property owners, tenants and site developers to redevelop commercial properties within the N. 7"'
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. 7"' 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 cif `the Bozeman. Municipal Code
Bozeman Community Plan
These documents are available at w\vw.bozenian.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 Development Review shall be submitted to the DPCD as a requirement of the grant award.
Application fees and procedures for formal Development Review applications, as set by the City Commission,
shall apply and may be paid out of the grant award if requested in the grant application and awarded by the
NSURB. At a minimum, an application for Infon Review shall be submitted to the DPCD for NSURB
Planning staff to review. There are no application fees for the Informal Reviews conducted for N7Rehab
Technical Assistance Grant recipients.
The receipt and completion of a Technical Assistance grant does not obligate the applicant to continue with the
project.
Attachment A - Resolution No. 4307
APPLICANT RESPONSIBILITIES
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 will
result in proposals consistent with the grant criteria.
3. If the applicant is not seeking Technical Assistance for preparation of a formal Preliminary
Development Review application, an application for Informal Review must be submitted to the
Department of Planning and Community Development demonstrating that the professional services
were completed as awarded by the grant. Drawings shall be to scale.
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 Planning staff reviews the Informal Application materials and consults with other City
Departments (Engineering, Fire, Building, etc.) as needed and reports their findings to the applicant
and NSURB.
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
Development Review (Formal or Informal), 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.
Attachment A - Resolution No. 4307 7
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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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.
AttachmentA - Resolution No. 4307 8
N7rchab 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 7' 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; andlor
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
Attachment A - Resolution No. 4307