HomeMy WebLinkAboutNorth Seventh Urban Renewal Board Work Plan and Budget for Fiscal Year 2012.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Keri Thorpe, Assistant Planner
Tim McHarg, Planning Director
Anna Rosenberry, Finance Director
SUBJECT: Annual Work Plan and Budget for the North 7th Avenue Urban Renewal
Board (NSURB)
MEETING DATE: August 22, 2011
AGENDA ITEM TYPE: Action Item
RECOMMENDATION: Approve the N. 7th Avenue Urban Renewal Board Annual Work Plan
and Budget for Fiscal Year 2012.
RECOMMENDED MOTION: Based upon the information provided, I move to approve
the N. 7th Avenue Urban Renewal Board Annual Work Plan and Budget for Fiscal Year
2012.
BACKGROUND: On July 7th, 2011, the NSURB unanimously approved the attached FY12
Work Plan and Budget.
The North 7th Urban Renewal Board proposes a Work Plan and Budget and submits a report on
an annual basis as per Section 7-15-4237 of the Montana Code Annotated 2009,
“(1) An agency authorized to transact business and exercise powers under this part and
part 43 shall file with the local governing body, on or before September 30 of each
year, a report of its activities for the preceding fiscal year.
(2) The report shall include a complete financial statement setting forth its assets,
liabilities, income, and operating expenses as of the end of the fiscal year.”
UNRESOLVED ISSUES: None at this time.
ALTERNATIVES: As suggested by the City Commission
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FISCAL EFFECTS: If approved by the City Commission, the NSURB FY12 Work Plan and
Budget Proposal will be adopted as part of the City of Bozeman Annual Work Plan and Budget
on September 12, 2011.
Attachments: 1) NSURB FY12 Work Plan and Budget Proposal, 2) Table 1, and 3) NSURB
July 7, 2011 meeting minutes
Report compiled on: August 9, 2011
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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: The N. 7th Urban Renewal District 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
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 2
NSURB’s 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 summary of FY11 N7Rehab grants is below.
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.
See Table 1 attached for 2011 expenditures.
N7Rehab FY11 GRANTS – 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
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 3
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
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
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 4
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 and related improvements 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
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
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 5
· 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…
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…”
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 6
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
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.
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N. 7th Urban Renewal Board FY12 Annual Work Plan and Budget 7
SUMMARY
See FY12 SUMMARY and Table 1 detailing FY2011 revenues/expenditures and the
proposed FY2012 fund expenditure. 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 the FY12 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.
FY12 SUMMARY
BALANCES FY12 TO BUDGET
TIF Balance 584,749
Big Box Funds 124,774
Total $709,523
Expenditures
PROPOSED FY12
BUDGET
N7Rehab
-Façade and Site Rehab 64,000
-Tech Assistance Grant Program 36,000
-Demolition 90,000
-Public right-of-way improvements 75,000
Bus Shelter 1,000
Part-time staff and other professional services 10,000
Outreach 1,500
Lighting and Gateway 316,173
Oak Street Shared Use Pathway (CTEP match) 15,000
TIF correction 100,850
Total $ 709,523
Report prepared July 28, 2011 by
Keri Thorpe, Assistant Planner
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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
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Page 1 of 4
Unapproved minutes from July 7, 2011 board meeting
held at the Stiff Building, upper conference room
TO DO List: Everyone attend August 4 board meeting
Scott get bus shelter installed
Susan F draft letter to B. Potter concerning UHaul
Keri FY12 work and budget plan descriptions, to
commission for approval
Attendance: Kevin Cook, Taylor Lonsdale, Carl Solvie, Scott Hedglin, Susan Fraser,
Keri Thorpe, Dustin Johnson, Susan Riggs
Call to Order – Carl called to order at 4:37pm.
Public Comment – none.
Meeting Minutes
Kevin motioned to approve the minutes from both May 5 and June 2 meetings. Susan
F seconded the motion. All in favor.
N7Rehab applications and presentations
Brett Potter presented the latest work and conversation about the UHaul site. His
preliminary cost analysis for the work is $74420. The property is no longer thinking of
façade enhancement in this proposal but sticking to front/boulevard, the edge
enhancement being covered by the board and property enhancements paid for by the
company.
As presented the edge work would cost NSURB $50K. The owners would like to do the
actual work this summer. Brett also noted how much help Mike has been with site
visits, etc. As for the suggested participation agreement discussed at May board
meeting, UHaul will not budge on their requirement that the sign be grandfathered
into acceptance.
Keri reported she and Dustin met with legal counsel and such a participation
agreement is not an option with the sign request but could do the project as-is as long
as no building augmentations were included. Legal counsel also questioned how
UHaul will meet variance criteria; Keri noted sketch plan review required for this. She
also noted with the plan of giving up 10’ of parking space then circulation comes into
question. Discussion.
Carl urged Brett to go back to UHaul saying sign not negotiable but board supportive
of improvements to property. Dustin said difficulties are found in all arenas but if they
give easements then the board gets sidewalks needed. More discussion.
Keith Redfern and owner Hilliard Thornton joined about the Aaron’s sites, noting
demolition done and did get a lower price so the N7Rehab grant dollar figure will
actually be $13252. Keith rehashed the garage and house renovations, showing actual
samples of roofing and siding. The application just submitted for façade and
landscaping improvements is up for approval this evening. Keri supports granting
N7Rehab funding of $4334 based on cost estimates received for 706 N 7th façade, roof
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Page 2 of 4
and landscaping improvements, noting shop site should not be included as it will be
new construction and does not qualify for grant monies.
Kevin made the motion to approve as staff suggested $4344 for this application. Carl
seconded the motion. All in favor.
Keith went on to request of the board a 6-month extension for his TAG applications for
Buzz’s Quonset hut property as well as the little house on the east side. Board
approved extension good thru January 2012.
TAG time lime of 6 months
Keri confirmed six month time limit has been added to application for Technical
Assistance Grants.
Bus shelter
Scott reported steel is ready to be installed, spoke to subcontractor today. Should only
be a 2-3 day process.
Back to UHaul discussion
Storm runoff will have to go underground. More discussion. Brett would like a letter to
take to the property owners stating the board’s stance. Susan F will draft and send out
to everyone for approval.
FY12 budget
Keri handed out large format copies (attachment A) of her budget spreadsheet.
Discussion and numbers were added, etc. Priorities previously detailed in September
2009 were rehashed (attachment B). Discussion of gateway included. $709,523 was
organized and Keri will prep descriptions to include for presentation to commission for
approval. Susan F made the motion to approval FY12 budget and work plan as
augmented during meeting. Carl seconded the motion. All in favor.
FYI
None
Adjournment
Carl adjourned the meeting at 6:40pm.
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Page 3 of 4
Attachment A
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Page 4 of 4
Attachment B
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