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HomeMy WebLinkAboutAnnual Work Plan and Budget Amendment for the North Seventh Urb Commission Memorandum REPORT TO :Honorable Mayor and City Commission FROM: Keri Thorpe, Assistant Planner Tim McHarg, Planning Director Anna Rosenberry, Finance Director th SUBJECT :Annual Work Plan and BudgetAmendmentfor the North 7Avenue Urban Renewal Board (NSURB) MEETING DATE :September 26, 2011 AGENDA ITEM TYPE: ActionItem RECOMMENDATION :Approvethe NSURBAnnual Work Plan and BudgetAmendment for Fiscal Year 2012. RECOMMENDED MOTION: Based upon the information provided,I move to approve th the N. 7Avenue Urban Renewal Board’s Amendment to theirAnnual Work Plan and Budget for Fiscal Year 2012 asrecommended by Staff. BACKGROUND :On September 13, 2011, theNSURB unanimously approved the attached amendment to their FY12 Work Plan and Budget. The NSURB proposes a grant up to $50,000 to reimburse Amerco Real Estate Company(Uhaul)for frontage improvementswhich include a landscaped boulevard and sidewalk. TheNSURBproposes a Work Plan and Budget and submits a report on an annual basis as per Section7-15-4237 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 asof the end of the fiscal year.” th Per Ordinance 1685 which adopted the N. 7Avenue Urban Renewal District Plan, “The NSURB shall prepare an annual work program and budget that willlist the activities and costs ofactivities for the coming fiscal year as well as the methodof  financing those activities.The NSURB shall provide public notice in the newspaper and by other appropriate means and conduct apublic hearing prior to the submittal of the annual work program to the City Commission.This program and budget may be amended during the course of the city s fiscal year in light of funding and program changes.All budgets and revised budgets shall be reviewed and approved by the City Commission.” UNRESOLVED ISSUES :Staff has expressed concerns about whether or not the NSURB must follow the Cityof BozemanPurchasing Policywith regard to the proposed grant to Amerco Real Estate (Uhaul)in their amended budgetor whether NSURB has authority to move forward as proposed by the powersgranted under Ordinance 1685. ALTERNATIVES :As suggested by the City Commission FISCAL EFFECTS: If approved by theCity Commission,the NSURB FY2012 Work Plan and Budget Proposalwill be incorporated into the City of Bozeman FY2012 Annual Work Plan and Budget. Attachments: 1) NSURB FY2012 Work Plan and Budget Amendment, 2) Table 1 (amended), 3) Uhaul Frontage Improvements Plan and 4) NSURB September 13, 2011 meeting minutes Report compiled on:September 15, 2011  Annual Work Plan and BudgetAMENDMENT Fiscal Year 2012 N. 7th Avenue Urban Renewal Board SUMMARY The N. 7th Urban Renewal Board proposes to amend their FY2012Budget and Work Plan as follows: Move $50K from N7Rehab ($16K from Façade/Site Improvements, $16K from Demolition and $18K from Right of Way improvements) to provide a grant of up to $50K for sidewalk and boulevard landscaping improvements at 815 N. 7th Avenue (Uhaul property). BACKGROUND th The property owner of 815 N. 7Avenue (Amerco Real Estate/Uhaul Real Estate Company) received a Technical Assistant Grant (TAG) on May 16, 2011 after selectingBrett Potter of Focus Architects to assist them withanalysis of potential building, signage and parking lot improvements. Solutions to site drainage issues were explored and frontage improvements including front yard landscaping, boulevard and sidewalkwere proposed. The site currently th lacks sidewalk and landscaping along N. 7Avenue. Mr. Potter submitted plans in completion of the TAG process and NSURB staff (Johnson and Thorpe) provided informal review comments. Uhaul’s proposal implements the District Plan by providing landscaping and a sidewalk thus improving both pedestrian connectivityand the aesthetics ofthe District. Specifically, the proposal meets the following corridor goals: 1.Improve vehicular, bicycle and pedestrian circulation along the corridor 2.Guide new development along the corridor such that it improves the aesthetic experience 3.Coordinate public and private improvements The Board needs to amend their FY2012 Budget and Work Plan because the project being proposed does not fit within the established N7Rehab guidelines. The current N7Rehab guidelines state that the maximum award is $50,000 or 15% of the total project cost, whichever is less. For this project the NSURB’s contribution is 65% of the total project cost. The Board is recommending the grant award asa reimbursement for improvements made in the public right of wayand public access easement. The improvements implement the District Plan and remedya significantly blighted condition within the District. Preliminary plans have been drawnand are provided with this amendment. Focus Architects continues to represent Uhaul during the implementation of their plans and is currently preparing easement documents, requesting cost estimatesandpreparinga formal Sketch Plan review application incorporating NSURB staff comments. Uhaul hopes to begin work October15, 2011. th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 1  STAFF RECOMMENDATION Approve the NSURB amendment to their FY2012 Work Plan and Budget with the understanding that Uhaul will enter into an agreement with the NSURB and City stipulating thatthe improvements must be completed to the City’s satisfaction as approved following a formal Sketch Plan Review of the project and that theCity’s standard contract language be added to the agreement with Uhaul to meet the City requirements for insurance,non-discrimination and indemnity for work performed in the public right of way. AMENDED FY2012BUDGET 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 th landscaping along the N. 7Avenue 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 lightsand related improvementsin a portion of the corridor.On September 13, 2011, the NSURB convened a special meeting to consider a proposal to amend their current FY2012 budget to provide funding for the Uhaul frontage improvements.The NSURB recommends amendingtheir 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 th Administration for N. 7Avenue 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 whichstates, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 2  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 ofthe Big Box Fund allocation to the NSURB. N7Rehab $215,000 - Façade and Site Rehab $48,000 - Technical Assistance$36,000 - Demolition$74,000 - Public Right of Way Improvements$57,000 This funding proposal isfor the N7Rehabredevelopment incentive program to encourage th developers to build on parcels along the N. 7Avenue corridor. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was createdto 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. N7Rehabmeets the mission and goals of the District Plan by guidingnew development along the corridor such that it improves the aesthetic experienceand by assisting in coordinatingpublic 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 theaforesaid 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, MCAstates, “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… Uhaul Landscaping and Sidewalk Improvements Grant$50,000 th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 3  This grantaddresses two of the NSURB’s top three priorities and sets the stage for the installation of new street lights along this portion of the corridor. The grant will funda project which coordinates public and private improvements to providea sidewalk and landscaped boulevardwhere currently there is none. This grant eliminates blight and advances the implementation of the District Plan. Ordinance 1685 states, “The NSURB may exercise any ofthe powers specified in MCA 7-15-4233.However,no entrance to any building or property in any urban renewal area in order tomake surveys and appraisals in the manner specified in 7-15-4257shall be made withoutthe owner’s permission.” Within MCA 7-15-4233, NSURB is granted the authority under MCA 7-15-4255which states the authority is toprovide or contract for services related to urban renewal. (1) Every municipality shall have power to: (a) provide or arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, or roads in connection with an urban renewal project; (b) install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements. (2) Every municipality shall have power to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards in the undertaking or carrying out of an urban renewal project and to include in any contract let in connection with such a project provisions to fulfill such of said conditions as it may deem reasonable and appropriate. Section 7-15-4288, MCAstates, “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… As part of the grant award the NSURB will enter into an agreement with the property owner to execute the project with the understanding that expenditures for the public improvements are reimbursable up to $50,000 upon acceptance of the completed improvements. Bus Shelter$1,000 Total funding for thisproject 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.Thebids came in slightly higher than anticipated so an additional $1,000 is being requested.The shelter isbeing installed followingPhase I Sidewalk Improvementsnear the th intersection of N. 7Ave. and Tamarack Street. Public transit is a component of re- th developing N. 7Avenueto ensure the health safety and security of the Districtand balance commerce and livability in the District within the mixed use framework. th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 4  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 paythe 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 andoutreach eventsin the District. The purpose of these outreach events isto inform property owners and the publicof 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 projectwas recommended by the Bozeman CTEP committeeand 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 th N. 7and 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 paybacksthat may be dueas a result of pending applications beforethe County tax appeal board for reductions in valuation of properties. The NSURB recommends this amount based on 20% of two years of tax increment. th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 5  SUMMARY Seethe Summary below andTable 1 (amended) detailing FY2011 revenues/expenditures and the proposedamendment to theFY2012 budget. 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 FY2012budget. 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 BALANCESFY12 TO BUDGET TIF Balance584,749 Big Box Funds124,774 $709,523 PROPOSED FY12 PROPOSED FY12 ExpendituresBUDGETBUDGET N7Rehab -Façade and Site Rehab6400048,000 -Tech Assistance Grant Program3600036000 -Demolition9000074000 -Public right-of-way improvements75,00057,000 Bus Shelter1,0001,000 Uhaul landscaping & Sidewalk Improvements Grant50,000 Part-time staff and other professional services10,00010,000 2 Outreach1,5001,500 Lighting and Gateway316,173316,173 Oak Street Shared Use Pathway (CTEP match)15,00015,000 TIF correction100,850100,850 $ $ Total709,523 709,523 Attachments: Table 1, Uhaul Frontage Improvements Plan Report prepared September 15, 2011 by Keri Thorpe, Assistant Planner th N. 7 Urban Renewal Board FY2012 Annual Work Plan and Budget AMENDMENT 7             Unapproved minutes from September 13, 2011 special board meeting KHOGDWWKH6WLII%XLOGLQJXSSHUFRQIHUHQFHURRP TO DO List: Everyone attend September 26 commission meeting & attend October 6 board meeting Michelle chat with Jeff Krauss Keri follow UHaul sketch plan review Attendance: Andrew Cetraro, Mike Hope, Carl Solvie, Michelle Wolfe, Susan Fraser, Brett Potter, Scott Hedglin, Keri Thorpe Call to Order Michelle called to order at 7:00am. Public Comment none. UHaul participation agreement Keri reported she met with legal and financial yesterday, noting the participation agreement gets messy because not pure N7Rehab program. She had a new idea Brett applying for N7Rehab grant for just their proposed portion of the work. Board could approve up to 15% for that work then city staff could get bid out for N7 portion of the proposed project. She went on to say it must be a public bid process because using city monies. With this approach it is something the board has already done. Brett handed out document (attachment A). He has already contacted Knife River, Sime and Cashmans about project and has already signed contractor agreements C&H finishing work this week. Mike suggested taking the city out of the project, similar to downtown with the explosion site. Michelle asked Brett in reference to his handout where does this work get us? Brett replied that property owner and himself will attend October 6 board meeting with firm costs list for agreement finalization with the plan of starting actual work on October 15. He said the sketch plan review will be to the city next week. Discussion. Michelle noted this project epitomizes NSURBs goals. Keri advised the board it would be a violation of purchasing policies to go forward as currently planned, i.e. no public bid process. Brett said he has told the owners the actual work with be concurrent with the formal agreement processing. Mike noted the commission can overrule. FY12 budget amendment for UHaul project Budget adjustment is on the September 26 commission consent agenda, reported Keri. Could include Bretts visuals. Mike suggested a $50K line item in the budget chatting with Jeff on how to take to the city. Keri suggested taking monies from the façade improvement, demolition and right of way balances - $16K from both façade and demolition and $18K from right of way. Susan F made the motion directing staff to forward an FY12 budget amendment to the City Commission as suggested. Andrew seconded the motion. All in favor. WĂŐĞϭŽĨϯ     FYI At October 6 board meeting Carl wants to discuss insurance for board in cases of lawsuit. Adjournment Michelle adjourned the meeting at 7:48am. WĂŐĞϮŽĨϯ     Attachment A WĂŐĞϯŽĨϯ