HomeMy WebLinkAboutDowntown Tax Increment Finance (TIF) 2011 Annual Report and 2012 Work Plan and Budget.pdf
Downtown Tax Increment Finance (TIF)
2011 Annual Report
and
2012 Work Plan and Budget
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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Downtown Tax Increment Finance-Improvement District Board (TIF)
FY2011 Annual Report (July 1, 2010 to June 30, 2011)
Downtown Parking Garage $ 435,319 invested
The TIF made a payment of $426,188 on the Bridger Park Garage construction bond. The TIF also
pledge its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund.
This year’s contribution was $9,131. 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 BPC.
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 $ 119,914 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 impact fees incurred by the F&H Building construction project which totaled $119,914.
Downtown Parking Study $ 27,490 invested
The TIF partnered with the Bozeman Parking Commission to conduct a comprehensive downtown
parking study. The study was conducted by Western Transportation Institute and was completed in
February 2011. The study tabulated an exact inventory of the various parking spaces including on-
street, off-street, public and private. The study focused on identifying how and when the downtown
parking is used. Usage patterns where established using industry standard metrics: occupancy
rate, dwell time, and turnover rate.
Technical Assistance Grant Program $ 85,500 invested
$ 85,400 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 15 Planning
Grants and 7 Facade Grants to a variety of proposed downtown redevelopment projects.
Streetscape Engineering $ 4,927 invested
The TIF Board initiated Phase 3 of the Downtown Streetscape Plan which will complete the final
sections of the unimproved streetscapes between Mendenhall and Babcock (from north to south)
and Wallace to 3rd (from east to west).
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Streetscape Assistance Program $ 21,711 invested
$ 0.00 encumbered
This TIF program provides 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 helped finance 3 streetscape improvement
projects involving the installation of historic street lamps: Heebs, Tire-Rama, and Gallatin Building.
Streetscape Element Purchases $ 17,497 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 $ 2,561 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.
Downtown Plan Implementation $ 51,000 invested
The TIF made several investments towards accomplishing priority objectives established in the
2009 Downtown Improvement Plan. The TIF invested $25,000 towards the fabrication and
installation of the 3 Downtown Directory Kiosks which are an important component of downtown’s
larger wayfinding project. The TIF invested $25,000 in the Bozeman Creek Park(ing) Project. This
project looks to redesign the public parking lot at the corner of East Babcock and South Rouse.
The TIF also invested $1,000 on behalf of the Downtown Partnership in the Linx Cooperative
Transportation initiative in an effort to become active in regional transportation issues that impact
downtown’s position as a regional hub.
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Downtown Tax Increment Finance-Improvement District Board (TIF)
FY2012 Work Plan (July 1, 2011 to June 30, 2012)
Downtown Parking Garage $ 435,300 budgeted
The TIF will make the annual bond payment and long-term maintenance fund contribution for
Bridger Park, the downtown parking garage.
Downtown Improvement Plan Implementation $ 125,000 budgeted
The TIF board has allocated funds to be invested in high-priority projects identified by the
Downtown Improvement Plan. These funds could be used for further planning or design projects
or for implementation of particular projects. Likely projects this year include the Downtown Urban
Route Transformation Study and the Bozeman Creek Park(ing) Project.
Downtown Explosion Impact Fee Relief $ 100,000 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. There are still two
properties to be reconstructed.
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 Program will
reimburse a portion of housing-related impact fees for qualifying residential projects.
Downtown Hotel Incentive Program $ 100,000 budgeted
The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a
quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that
Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The specifics of this program
are still being determined by the TIF Board and staff. Potentially the program will involve partial
reimbursement of the impact fees associated with the development of a downtown hotel.
Technical Assistance Grant Program $ 125,000 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 $ 95,600 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
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pays for a portion of the operating costs of the downtown office at 222 East Main Street in addition
to the majority 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
designed to stimulate private investment, redevelopment of property and the improvement of public
areas in the downtown urban renewal district.
Streetscape Element Purchases $ 30,000 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.
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.
Streetscape Engineering $ 5,000 budgeted
Phase 3 of the Downtown Streetscape Plan will complete the final sections of the unimproved
streetscapes between Mendenhall and Babcock (from north to south) and Wallace to 3rd (from
east to west).
The FY2012 Downtown Tax Increment Finance District Work Plan and Budget were
unanimously approved by the TIF Board on June 21, 2011.
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