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HomeMy WebLinkAboutNSURB FY12 Work Plan and Budget Proposal (draft).pdf N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 1 Annual Work Plan and Budget – Fiscal Year 2012 N. 7th Avenue Urban Renewal Board In November 2006, the City of Bozeman designated the N. 7th Ave Tax Increment Finance District (TIFD), under which incremental increases in taxes due to redevelopment are accumulated in a TIFD fund. The stated goals and objectives of the District Plan were as follows: MISSION and VISION This Plan is the city’s response to remedy the conditions of blight found in the August 2005 report through thoughtful redevelopment of the Corridor. The following Corridor Goals are taken from the Design and Connectivity Plan (DCP). An expanded description of the intent of each goal is found in the DCP Chapter 2. Corridor Goals A basic goal is to have an active and exciting corridor that is attractive with a distinct character. A strategy for achieving this goal is to improve the experience for the user by creating safe attractive walkways and streets and by providing buildings and landscaping that are of interest to users and passersby. Several key strategies should be followed: 1. Provide a distinct identity for the corridor 2. Develop the corridor as a focus for commercial and entertainment activities that serve residents and visitors alike 3. Strengthen the corridor as a neighborhood service center 4. Provide mixed use development 5. Clearly define gateways at key locations along the corridor 6. Improve vehicular, bicycle and pedestrian circulation along the corridor 7. Provide pedestrian connections to adjacent neighborhoods 8. Establish a way-finding system 9. Guide new development along the corridor such that it improves the aesthetic experience 10. Coordinate public and private improvements 11. Strengthen connections between complementary uses 12. Provide flexible public space along the corridor GUIDING PRINCIPLES In addition to the specifically stated goals for the District the following Guiding Principles have been adopted to provide a basis for decision making over the life of the District. These principles should be applied to any development program or other activity that will affect the District: 1. Ensure the health safety and security of the District 2. Balance commerce and livability in the District within the mixed use framework 3. Public open space is essential to a healthy and appealing urban environment 4. The costs of projects and programs shall be weighed against their benefits to the District 5. Private property shall not be acquired for other private use through the eminent domain process in the implementation of any aspect of this plan 6. The City shall not limit its vision for the District improvements to monies available solely through the TIF funding 7. Projects shall consider impacts on adjacent neighborhoods 8. The city shall consider the impact on the District of all projects undertaken outside of the District N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 2 FY11 AT-A-GLANCE In August, the landscaping and signage was completed for Phase I sidewalk improvements. In September, the NSURB launched N7Rehab. The Technical Assistance Grant (TAG) Program was added to N7Rehab in November. A total of six Technical Assistance Grants were awarded, and one additional N7Rehab grant was awarded for demolition. A total of $53,500 was awarded to applicants. A report of N7Rehab activities is attached. On September 23rd, the NSURB invited property owners in the District for a ribbon cutting ceremony celebrating the completion of Phase I sidewalk improvements. With assistance from Media Works and staff, the NSURB launched their website May 2nd. Visit www.nsurb.net to review the site. Ingram-Clevenger was hired to complete construction of the bus shelter. Installation is expected in August. Assisted by City staff engineer Dustin Johnson, the NSURB selected Morrison-Maierle to provide engineering services for street light improvements in the District. FY2012 BUDGET PLAN AND REQUEST FOR APPROVAL In 2008, the Board began implementing the North Seventh Urban Renewal District Plan by establishing their top three priorities for the District: improving sidewalks, lighting and landscaping along the N. 7th Avenue corridor. During the next fiscal year, the NSURB proposes continuation of the redevelopment incentive program (N7Rehab) and focusing funds towards the installation of new street lights in a portion of the corridor. The NSURB recommends allocating their available funds as follows: Engineering Services $ 115,862 Engineering services are needed to assist the Board with three of the District goals: Provide a distinct identity for the corridor Clearly define gateways at key locations along the corridor, and Improve vehicular, bicycle and pedestrian circulation along the corridor. Morrison-Maierle, Inc. has been hired to provide Lighting Design and Construction Administration for N. 7th Avenue from Interstate 90 to Tamarack Street. The installation of new light fixtures for the corridor was identified as one of their top three priorities for District Plan Implementation in 2008. The NSURB recognizes that new light fixtures will help establish a distinct identity for the corridor, define key intersections, improve vehicular and pedestrian safety and improve the aesthetic experience of the corridor. It is an allowable expense under Section 7-15-4288, MCA which states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 3 following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure…; and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… These services will be paid for out of the remaining balance of the Big Box Fund allocation to the NSURB. N7Rehab $265,000 - Façade and Site Rehab $64,000 - Technical Assistance $36,000 - Demolition $90,000 - Public Right of Way Improvements $75,000 This funding proposal is for the N7Rehab redevelopment incentive program to encourage developers to build on parcels along the N. 7th Avenue corridor. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was created to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. The program was approved by Resolution 4307 and is administered by the NSURB. N7Rehab meets the mission and goals of the District Plan by guiding new development along the corridor such that it improves the aesthetic experience and by assisting in coordinating public and private improvements These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, which grants the City the power to formulate and coordinate a workable program as specified in Section 7-15-4209, MCA, which 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 re-planning, removing congestion, providing parks, playgrounds, and other public improvements; by encouraging voluntary rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas or portions thereof. Additionally, 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) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… A summary of FY11 N7Rehab grants is attached. N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 4 Bus Shelter $ 1,000 Total funding for this project is $17,100. $16,100 of this expenditure is funded by the Energy Conservation Community Block Grant (ECCBG) and was accounted for in the FY11 budget. The bids came in slightly higher than anticipated so an additional $1,000 is being requested. The shelter is being installed following Phase I Sidewalk Improvements near the intersection of N. 7th Ave. and Tamarack Street. Public transit is a component of re- developing N. 7th Avenue to ensure the health safety and security of the District and balance commerce and livability in the District within the mixed use framework. It is an allowable expense under Section 7-15-4288, MCA which 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) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… Part-time staff and other Professional Services $ 10,000 The Board needs staff to assist with District Plan implementation. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” Outreach $ 1,500 The Board has requested money for public noticing and outreach events in the District. The purpose of these outreach events is to inform property owners and the public of the District Plan and the N7Rehab program. This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” Lighting, Gateway and related Sidewalk Improvements $316,173 The NSURB plans to implement installation of new street lights, gateway improvements and related sidewalk improvements before the end of fiscal year 2012. Cost estimating is being completed as part of Morrison-Maierle’s engineering services. The project scope will likely be determined by late winter or spring of 2012. See “Engineering Services” above for District Plan goals and applicable sections of the MCA. Oak Street Shared Use Path (CTEP Match) $ 15,000 The Oak Street Shared Use Path project was recommended by the Bozeman CTEP committee and is a joint project between the City and County. Completion of the project will fill in missing sections of pedestrian facilities on the south side of Oak Street between N. 7th and N. Rouse Avenues. A 10 foot wide asphalt path is planned. The NSURB has N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 5 pledged this money in partial fulfillment of the CTEP cost share requirement for the City’s portion within the District. TIF Correction $ 100,850 This money is being set aside for potential tax increment paybacks that may be due as a result of pending applications before the County tax appeal board for reductions in valuation of properties. The NSURB recommends this amount based on 20% of two years of tax increment. SUMMARY See Table 1 summarizing actual FY2011 revenues/expenditures and the proposed FY2012 fund expenditure. These are the numbers available at the time of the updated report and include data from the City Controller through June 30, 2011. The North Seventh Urban Renewal District has on-going projects and funding sources allocated in previous fiscal years which have not yet been expended. As such, these funds are included in Table 1 as “rollovers” and deducted from “remaining revenue” for the preparation of this budget. Actual Tax Increment Financing Funding fluctuates with on-going building and re-assessing of property values. The FY2012 anticipated TIF amount may be different than estimated in the attached report. Appeals to property valuations are currently under review may result in a reduction in available funds. The NSURB will update their budget on an as-needed basis and with approval from the City Commission. N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 6 N7Rehab – STATUS REPORT Overall, the NSURB is pleased with the outcome of the Technical Assistance Grant Program. A total of six grants were awarded. 1) Griffin Drive Properties, LLC – 2104 N. 7th, vacant lot on NE corner of Griffin and N. 7th Brett Potter of Focus Architects, provided architectural and site planning assistance for this property owner. The property is currently up for sale and the renderings and site planning created by Focus Architects are being used to market the property. Grant amount: $7,200 2) Stockman Bank of Billings – 302 N. 7th, formerly Frontier Pies, NE corner of Beall and N. 7th Brett Potter of Focus Architects assisted Stockman Bank and a potential purchaser of the property. The owner of Audrey’s Pizza has been evaluating the site. Focus Architects provided a site analysis, improved parking lot configuration, N. 7th frontage improvements including a landscaped boulevard and reduction in a drive access (currently, the parking lot has 3 accesses off of N. 7th Avenue), and architectural renderings compliant with the Bozeman Design Objectives Plan. Grant amount: $7,200 3) Nelson Investments – 411 N. 7th, Quonset hut property Keith Redfern of Concept Seven Design partnered with Madison Engineering to provide building and site analysis to address the following concerns: lack of relationship between building and the street, new building location, pedestrian access, bicycle parking, landscaping deficiencies, storm water control deficiencies and ADA compliance issues. Work is in progress, and a conceptual site plan has been completed. Grant amount: $7,200 4) BCE, LLC – 416 N. 7th, little brown house Keith Redfern of Concept Seven Design partnered with Madison Engineering to provide building and site analysis to address the following concerns: lack of relationship between building and the street, pedestrian access, bicycle parking, landscaping deficiencies, storm water control deficiencies and ADA compliance issues. Work is in progress. Conceptual drawings for a new façade have been completed. Grant amount: $3,600 5) Gallatin Valley Furniture – 923 N. 7th Brett Potter of Focus Architects assisted the property owner with analysis of site drainage issues, non-compliant parking in front yard which requires customers to back onto N. 7th, and a lack of boulevard landscaping. Focus Architects provided a site analysis, proposed a new parallel parking configuration and N. 7th frontage improvements providing boulevard trees integrated with the new parallel parking area and sidewalk. Grant amount: $3,600 6) Amerco Real Estate Co. and Uhaul Real Estate Co. – 815 N. 7th Brett Potter of Focus Architects assisted the property owner with analysis of potential building, signage and parking lot improvements. Solutions to site drainage issues were explored and frontage improvements including boulevard and sidewalk (the site currently lacks sidewalk along N. 7th) were proposed. Preliminary plans have been drawn and the NSURB is considering proposals from Uhaul. Grant amount: $7,200 FY11 TAG TOTAL: $36,000 N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 7 N7Rehab – Grants for Demolition and Construction Eligible Activities 1) 2LT, LLC – 654 N. 7th Avenue NSURB awarded a grant up to $17,500 for the demolition of an existing foundation. The award is contingent upon the completion of building construction and site improvements per Final Site Plan application #Z-10329. The property owner communicated that the demolition costs came in lower than anticipated, so the award amount is estimated at $13,500. It’s payable upon receipt of Certificate of Completion and invoices documenting cost of demolition services. FY11 DEMO TOTAL: $17,500 FY11 N7Rehab TOTAL: $53,500 Report prepared July 28, 2011 by Keri Thorpe, Assistant Planner AT- A - GLANCE BALANCES STARTING1 REVENUE EXPENDITURES ENDING FY11 ROLLOVERS FY11 REMAINING REVENUE FY12 ANTICIPATED TIF FY12 TO BUDGET TIF Balance 257,393 255224 24,530 488,087 158,562 329,525 255,224 584,749 Big Box Funds 232,000 107,226 124,774 124,774 124,774 HB 645 American Recovery & Reinvest Act 110,400 110,400 0 0 Energy Conservation Community Block Grant 16,100 0 16,100 16,100 0 242,156 628,961 454,299 255,224 $709,523 DETAIL North 7th Urban Renewal Board FY2011 Work Plan and Budget ACTUAL 2010 Revenues and Expenditures 2011 Anticipated Revenues 2011 Actual Revenues 2011 Expenditure Plan Fund 2011 Actual Awarded Contracts Starting Balance 92,162 486,311 489,393 Balance 7/1/10 Interest 3,221 2,500 3,099 TIF allocation on 1/21/10 268,010 Anticipated TIF allocation FY 2011 268,010 Actual FY11 TIF allocation as of 6/30/2011 252,125 TIF Balance 363,393 Big Box Funds 232,000 HB 645 American Recovery & Reinvestment Act 110,400 110,400 Energy Conservation Community Block Grant 16,100 16,100 Total Revenue Available 595,393 883,321 871,117 883,321 871,117 Expenditures PROPOSED FY12 BUDGET Engineering, contract with Allied Engineering 105,750 27,250 BBF 26,672 FY 2011 Engineering Services 35,000 BBF 0 N7Rehab -Façade and Site Rehab 64,000 TIF 0 64000 -Tech Assistance Grant Program 36,000 TIF 10,800 25,200 36000 -Demolition 90,000 TIF 0 17,500 90000 -Public right-of-way improvements 75,000 TIF 0 75,000 N. 7th Phase I Sidewalk Improvements 110,400 HB645 110,400 83,300 BBF 80,554 Phase II Sidewalk Improvements 98,550 TIF 0 86,450 BBF 0 Bus Shelter 16,100 ECCBG 0 16,100 1,000 Part-time staff and other professional services 15,000 TIF 10,000 10,000 Outreach2 250 5,000 TIF 3,726 1,500 Lighting and Gateway 140,705 TIF 4 115,862 316,173 Oak Street Shared Use Pathway (CTEP match)15,000 TIF correction 100,850 Total 106,000 242,156 174,662 709,523 Summary of Expenditures TIF 106,000 24,530 158,562 Big Box Funds 107,226 0 HB 645 110,400 0 ECCBG 0 16,100 Total Expenditures 106,000 242,156 174,662 Ending Balance 489393 1 Corrected amount (H.T.E. error of $3,082) 2Includes $2,194 for website development TABLE 1