HomeMy WebLinkAbout02-15-11 Downtown Tax Increment Finance District (TIF) Minutes Downtown Tax Increment Finance
Board Meeting Minutes
February 15, 2011
Attending: Bobby Bear, Paul Burns, Bob Hietala, Vonda Laird, Bob Lashaway, Bill Stoddart,
Cyndy Andrus, Chris Naumann
Absent:
Public Comments
None
Disclosures
None
Minutes
ACTION: Bill Stoddart motioned to accept the minutes from January
Vonda Laird seconded the motion.
All voted in favor.
Financial Report
Chris presented the financial report. He noted that the Department of Revenue has begun to
pay out tax increment as the taxes are collected rather that paying the total as a single lump
sum at the first of the year. Therefore, the TIF has received $649,870 to date. behind in
processing the final increment income figures. Chris noted that half of the state entitlement,
$17,310, has been received and the TIF has earned $4,781 in interest year-to-date.
This month's expenses included: a small street furniture maintenance payment and another
parking study payment.
Program Director's Report
None provided
Executive Director's Report
Downtown Parking Study Update
The Downtown Parking Study is in the final stages of revisions and edits. Paul Burns (City of
Bozeman Parking Manager), Chris Saunders (City of Bozeman Assistant Planning Director),
and I have been working with WTI to make a series of revisions to strengthen and clarify the
contents and conclusions of the study.
WTI will be giving an overview presentation of the study and its findings the morning of
Thursday March 3rd, as part of the Bozeman Parking Commission meeting. Several advisory
groups will be invited to attend such as the Planning Board, Zoning Board, City Commission,
Planning staff, and TIF Board.
One issue to clarify is how the report should refer to the TIF versus the DBP.
Downtown Improvement Plan Report
The Downtown Improvement Plan was adopted by the City Commission one year ago today. I
have compiled a report detailing the progress that has been made in the first year under the
Plan. I anticipate this will be an important annual exercise to track our accomplishments and
refocus my attention to what is next.
I will be "releasing" the report at today's City of Bozeman weekly press conference. I have
printed copies available; otherwise the report will be available to the public as a PDF on the
DBP and COB websites.
Technical Assistance Program Update
As you can see from the chart below, I have awarded 10 Planning Grants and 4 Facade Grant
totaling $82,800 of the $125,000 budget.
Downtown Technical Assistance Program
Project Name Project Address Applicant Professional Grant Type
Gallatin Building 44 East Main Street Community Food Co-op Intrinsik Technical
Downtowner Building 31-37 South Willson Downtowner Group LLC Focus Technical
Odd Fellows Building 221-223 East Main City Center Commerce ThinkTank Technical
The Willson Hotel Armory E. Mendenhall The Catellus Group LLC Slade Beal Technical
Cateye Cafe Building 23 North Tracy Ave Christine & Kevin Huyser Intrinsik Technical
Old City Hall Fagade 411 East Main Steve Kleimer CTA Facade
Osborn Block 229-233 East Main Chris Pope Intrinsik Technical
Bon Ton Building 42 West Main Mike Basile Focus Technical
St Paul Rail Building 608 East Main Empire Building Materials ThinkTank Technical
South Wallace Site 218 South Wallace Shannon Roberts Intrinsik Technical
Bzn Cr Family Health 316 East Babcock Sarah Bronsky ThinkTank Technical
Bon Ton Fagade 42 West Main Mike Basile Focus Facade
Downtowner Facade 31-37 South Willson Mike Grant Focus Facade
Klare Building Fagade 234 East Babcock Morris Klare ThinkTank Facade
TIF District Taxable Values
Taxable Value Growth of Downtown Tax Increment Finance District
Taxable Value
year value growth total growth
1995 $ 173287695 base value
2007 $ 277897521 110% 110%
2010 $ 372727673 17% 146%
Taxable Market Value
year value growth total growth
2003 $ 7079927797 1 st yr data
2007 $ 9479967536 34% 34%
2010 $ 12171937883 28% 71%
Housing Incentive Program
Chris Saunders is currently reviewing the Downtown Housing Incentive Program. After a brief
verbal overview, he indicated that the program seemed sound. I anticipate releasing the
program to the development community in March.
Hotel Incentive Ideas
I have given more thought to how best to incentivize a sizeable downtown hotel. One idea that
would parallel the Housing Incentive Program would be to offer a financial reimbursement
towards the hotel development's impact fees. This could be a simple as offering a first-come-
first-serve "cash" offer of$25,000 to $50,000 impact fee offset. The "award" would be payable
as a reimbursement upon completion of the project. We would establish parameters such as a
minimum number of rooms and perhaps a certain amount of conference space.
Discussion and Decision Items
Downtown Parking Study Update
Chris asked the board to clarify how they would like to see the TIF referenced in the study. He
said how it currently is presented references the TIF specific to funding the research and
references the Partnership otherwise. The Board agreed that general references should be
made of the Partnership and the TIF should only be named when discussing the funding.
Technical Assistance Grants
Chris informed the Board that the Old City Hall grant will be the first Technical Assistance Grant
project that will be completed. He said that the interior renovations are well under way and the
facade modifications will begin shortly. He also mentioned that CTA will be moving their offices
from North 19th to Rouse and Main.
Chris asked the Board to advise him regarding a grant application from one of the Armory
owners. Tom Nygard applied for a technical assistance grant to analyze the Armory for adaptive
reuse. The Board asked if the property was in foreclosure proceedings or still completely owned
by Nygard. Chris indicated that he was of the impression that Nygard was still the owner. Bobby
said she as in favor of awarding the grant. Bob Hietala noted that we should make every effort
to facilitate any constructive redevelopment or reuse of the Armory considering how long it has
been vacant. Bob Lashaway noted that this will be the second grant awarded to the property
although two different applicants. He suggested that Chris add a provision to the FY2012
program that no more than two grants will be awarded to a single property per year. The Board
agreed on all accounts.
Chris mentioned the idea of awarding the Downtown Partnership a TIF Technical Assistance
Grant to perform redevelopment analysis for the Bozeman TV and Appliance Building and the
Brothel. He said the idea would be to demonstrate the redevelopment potential of those
properties and how they might creatively interact with the soon to be enhanced alley. The only
issue would be getting the approval of the property owner. The Board liked the idea contingent
on property owner approval.
COB Street Closure Policy
Cyndy asked the Board for input regarding the City Commission's continuing discussion on
revisions to the street closure policies. On the issue of the City's costs incurred versus permit
revenues, Bobby pointed out that the Downtown provided a considerable amount of cleaning
and maintenance services that ultimately offset the costs to the City for DBA events. Bob Hietala
suggested that the City should focus on approving community events and discourage or prevent
"single issue" events. The Board agreed that the number of closures needs to be limited.
Hotel Incentive Ideas
The Board supported the initial ideas Chris presented in his ED Report. Bob Hietala asked how
we would manage competition if more than one hotel developer proposed building the kind of
hotel we are seeking. Chris mentioned that the incentive would be paid as a reimbursement
upon completion of the project and the issuance of the COB Occupancy Permit. If more than
one hotel was being built, the first one done would receive the incentive.
Vonda asked if Chris would research similar incentives offered by other downtowns and/or TIF
districts.
Chris said he would continue to vet the concept and bring before the Board at a future meeting.
Streetscape Improvement Plan
Chris presented the TD&H proposal to perform the preliminary design engineering for the
sections of sidewalk missing from the Downtown Streetscape Improvement Plan. Chris pointed
out that the proposal includes 6 block faces that would be designed for a total of$20,100. Chris
suggested that the east side of North Wallace between Main and Mendenhall had little potential
to be improved due to the type of use at the Ag Depot and therefore should not be included in
the scope of work. Bobby said she feels that we should fill in the gaps as having the engineering
available as well as the streetlamp incentive program has incentivized property owners to make
the desired improvements.
ACTION: Bob Lashaway motioned to proceed with the work proposed by TD&H with
the exception of the east side of North Wallace between Main and
Mendenhall for a total of$16,900.
Bob Hietala seconded the motion.
All voted in favor.
Two agenda items--Linx Transportation Cooperative and Downtown Urban Route
Transformation Study--were tabled to be discussed at a future meeting.
With no further new or old business to discuss, Bobby adjourned the meeting.