HomeMy WebLinkAbout11- Montana Community Development Block Grant Economic Development Program 2011 Planning Grant Application 2011 PLANNING GRANT APPLICATION FORM
MONTANA COMMUNITY DEVELOPMENT BLOCK GRANT
ECONOMIC DEVELOPMENT PROGRAM
MONTANA DEPARTMENT OF COMMERCE
The Applicant hereby certifies that:
ACCEPTANCE OF CDBG-ED PROGRAM REQUIREMENTS
It will comply with all applicable parts of Title I of the Federal Housing and Community
Development Act of 1974, as amended, which have not been cited herein as well as
with other applicable federal laws and regulations.
It will comply with all requirements established by the Montana Department of
Commerce and applicable State laws, regulations, and administrative procedures.
It accepts the terms, conditions, selection criteria, and procedures established by the
Montana Community Development Block Grant - Economic Development (CDBG-ED)
Program and expressly waives any statutory or common law right it may have to
challenge the legitimacy and propriety of these terms, conditions, criteria, and
procedures in the event that it is not selected for an award of CDBG-ED funds.
APPLICANT - CERTIFICATION
To the best of my knowledge and belief, the information provided in this
application and in the attached documents is true and correct.
Name Chris Kukulski
(Typed Name)
Title City Administrator
(Chief Elected Official)
Signature
Date a
Name of Local Government Submitting this Application City of Bozeman
Phone Number (406) 582-2321
Mailing Address of Local Government
PO Box 1230
Bozeman, MT 59771
Senate District Number 33
House District Number 64
9 April 2011
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Federal Tax ID #for Local Government 81-6001238
DUNS #of Local Government 083705293
Local Government CCR/CAGE Code 3QWR0
Name of Assisted Business (if applicable)
Address of Assisted Business
DUNS #of Assisted Business
Authorization of Release of Information
The Applicant (Local Government)which has ultimate responsibility for
submission of this application designates the following party as the authorized
contact for additional information and/or documentation regarding this
application for CDBG-ED planning grant funding:
Name Brit Fontenot
Title Director of Economic Development
Mailing Address PO Box 1230
Bozeman, MT 59771
Email Address bfontenot@bozeman.net
Phone Number (406) 582-2258
Fax Number (406) 582-2339
Exhibit I (Budget Form):
Amount of CDBG-ED Funds Requested $ 25,000
Fill out exhibit and submit with application
Exhibit II (Implementation Schedule):
Fill out exhibit and submit with application
Each CDBG-ED Planning Grant applicant is required to submit a detailed
description of the proposed project, and detailed response to each of the rive
criteria. Applicants must attach pertinent supporting documentation, as
applicable.
10 April 2011
d. Explain the status of matching funds and dates when funding will be available for
the proposed project.
Given the high demand for planning grant assistance and the limited available fundin
it is important that each applicant request only the difference between the total cost of a
ro'ect and the amount of funds that the applicant can reasonably rovide. Unless an
applicant is determined to be eligible for a waiver of the match requirement, each
applicant is expected to contribute a reasonable share of project costs and to request
the least amount of CDBG-ED funds necessary to complete the planning project.
Discussion should provide complete information documenting the existence of financial
need for the CDBG-ED planning grant funds. Documentation can be provided
according to individual community circumstances, but should include specific
information such as an overall description of the local government's revenues and
budget and specific details describing why the local government(and non-profit agency,
organization, or assisted business, if applicable) lacks the financial resources to
undertake the planning activities itself, without CDBG-ED assistance. Providing
general statements indicating that a community simply does not have sufficient
revenues is not an adequate explanation for the need for CDBG-ED assistance. In
addition, the MDOC will also evaluate the proposed budget and budget narrative to
determine if the proposed costs for the planning project are adequately explained and
justified, and are reasonable and appropriate.
Criterion 4. BENEFIT TO LOW AND MODERA7E-INCOME PERSONS
a. Provide discussion on the degree to which the planning activity has the potential to
benefit low and moderate-income (LMI) persons in the long term, such as, the
creation of jobs for LMI persons. For additional information regarding LMI benefit,
see the CDBG booklet called Documenting Benefit to Lowy and Moderate Income
Persons.
Criterion 5. FIRST 1TIGtIIIE RECIPIENT
The MDOC will give priority to those local governments or unincorporated communities
that have submitted a complete application, proposed a viable project, and have never
applied for and/or received CDBG-ED funding in the past.
C. APPLICATIOhl CHECKLIST lease review and check for a corm lete
a2plfcatio,n):
1. Is the application submitted by a local government?
X Yes No
(For a description of eligible applicants, see these guidelines A.1.)
2. Is the proposed planning activity an eligible activity as described under these
guidelines?
X Yes No
12 April 2011
(For a description of eligible activities, see these guidelines A.3.)
3. Is the application submitted on behalf of a non-profit entity, inter-governmental
organization, or unincorporated area?
Yes X No
4. Is there a letter from the local government stating sponsorship and support for
the proposal included in the application?
X Yes No
5. Are there letters of commitment for project funding to be provided by the local
government, non-profit, or other inter-governmental organization included in the
application?
X Yes No
6. If other funds are not proposed to meet the matching funds requirement, has
local government provided a formal request for a waiver of the match
requirement in the application?
Yes No
7. Is there a detailed description of the activity proposed for the application?
X Yes No
8. Is there detailed narrative that responds to each of the five criteria as defined in
these guidelines?
X Yes No
9. Is the project budget form (Exhibit 1)filled out with narrative explaining each line
item?
X Yes No
10. Is the implementation schedule (Exhibit 11)filled out and modified to fit the
project?
X Yes No
11. Is there documentation showing local support, public outreach, or other pertinent
information to support what is stated in the application?
X Yes No
13 April 2011
EXHIBIT t
CDBG-E® PLANNING GRANT
PROJECT BUDGET
Budget for C®BG-ED Planning Grants Date:
SOURCE: SOURCE- SOURCE: TOTAL
CDBG-ED Match
(Identify) City DNRC
Professional Services $25, 000 $12, 500 $12, 500 $50, 000
Other 0 0 0 0
TOTAL PLANNING $ 2S, 000 $ 12, 500 $ 12, 500 $ 50, 000
PROJECT
Note: The budget must be accompanied by a narrative that describes the CDBG-E®
funds requested and local matching funds to be supplled by the applicant of local, state,
federal, or private funds involved. The budget justlficaflon must thoroughly explain the
rational or basis for all proposed budget costs, by line item.
14 April 2011
EXHIBIT II
CDBG-ED PLANNING GRANT
SAMPLE PROJECT IMPLEMENTATION SCHEDULE
TASK MONTH, YEAR
PROJECT START UP
Preparation of MDOC Contract January, 2012
PROCUREMENT OF
PROFESSIONAL ASSISTANCE
Submit Request for Proposals (RFP)to March, 2012
MDOC for approval, if required 2
Publish RFP April, 2012
Select professional June, 2012
Execute agreement with professional June, 2012
PROJECT IMPLEMENTATION
Prepare draft plan/report July, 2 012
Submit interim drawdown of funds September, 2012
Public review and comment October, 2012
Finalize plan/report November, 2012
PROJECT CLOSEOUT
December, 2012
Submit final deliverable
Submit final drawdown December, 2012
Including professional engineers,architects„and community development consultants,etc.
2 Architectural and engineering services must be procured in compliance with Section 18-8-201,MCA.
15 April 2011
City of Bozeman CDBG ED Planning Grant Proposal:September 30, 2011
/A. Description of Proposed Planning Project:
City of Bozeman—Department of Natural Resources and Conservation
[Introduction:
Mandeville Farm is an 85.35-acre tract zoned for industrial development by the City of
Bozeman. This parcel is adjacent to and north of Interstate 90 and is contiguous with
the `Mandeville Property' an even larger tract of school trust lands owned by the State of
Montana. The Mandeville Property contains 190 acres of developable land and is
managed by the Department of Natural Resources and Conservation. In addition to
accessing 1-90 at the 7t' Avenue and 19t' Avenue interchanges, both parcels have
access to east/west rail service (Burlington Northern) and are located within minutes of
Gallatin f=ield Airport (the State's busiest airport in terms of passenger departures and
arrivals and will soon include a customs agent). The need to coordinate land use
planning for these parcels is undisputed; however, the highest and best use of either
parcel may be significantly enhanced by combining the two parcels within a
comprehensive planning and development strategy. Intuitively, this approach provides
the highest return on investment for both the State of Montana and the City of
Bozeman.
Product/Conciusion:
At the end of the land use planning and development process performed by the
consultant as mentioned below, the end product will be the framework for a formal
agreement between the City and State for the joint development of these parcels.
Purpose:
The purpose of this project is to ensure the State of Montana meets its constitutional
responsibility of securing full market value for trust land beneficiary for the use of the
state-owned tract; while strengthening and diversifying the economic base of the local
economy through commercial development of the Mandeville Properties. In conjunction
with the formal agreement between the City and State, the land use plan will enable
both jurisdictions to proceed with the development of these parcels in a manner that
maximizes the economic benefits to both the City and State.
Approach:
A. Upon notice of funding award, authorized representatives from the City and
DNRC will develop a Request for Proposals for a qualified consultant to complete
the following tasks:
a. Consultant services shall be procured through a free and open
competition in full compliance with City and State procurement policies.
Page 1 1
City of Bozeman CDBG ED Planning Grant Proposal:September 30, 2011
b. Assigned tasks will include:
L Identify any and all legal or administrative barriers to developing
and implementing a joint land use and development plan and
provide options for mitigating these barriers.
1. Determine potential for an expedited permit process specific
to the project area by the City.
2. Identify any potential conflicts between the City and DNRC
due to differences in 'land title,' encumbrances, etc. that may
be exacerbated or diminished through joint planning and
development; and provide strategies for mitigating these
conflicts.
H. Using existing documentation and previously completed studies,
conduct preliminary environmental assessment identifying barriers
to development, especially to the extent these barriers are
exacerbated or diminished through joint land use planning and
development.
iii. Coordinate with local, regional and state economic development
entities (Prospers, TechRanch, MMEC, Port of Montana, etc.) to
identify economic development strategies for the parcels with the
highest potential for success (e.g., cluster development, establish
Foreign Trade Zone).
iv. Coordinate with local, regional and state human and community
service providers (e.g., HRDC, Bozeman Job Service, Montana
State University, Gallatin College) to determine best approaches for
enhancing the economic duality of life for area residents, especially
low and moderate income families (e.g., determine potential for
affordable housing development within the project area, job skills
training).
v. identify existing commercial and industrial enterprises with the
potential for benefiting from the development of the project area
and coordinate with the private sector for determining infrastructure
requirements and development priorities.
c. Conduct cost/benefit analyses for interesting approaches identified during
the completion of Tasks b i-v.
d. Consultant's final report and recommendations will be reviewed by the
City and DNRC in consultation with MDOC.
e. Based on the review (Item A.c), a draft agreement will be developed and
submitted to DNRC and the City for consideration and modification.
Page 2
City of Bozeman CDBG ED Planning Grant Proposal: September 30,2011
B. By the end of the 10th month of this project, the City and DNRC will enter into a
formal agreement, substantially based on the results of the consultant study
described above, for the development of the contiguous parcels.
C. By the end of the 12th month of this project, and consistent with federal and State
funding cycles, the City will develop and submit requests for funding for the
implementation of planning and development tasks stipulated in the Agreement
(Item B) consistent with mutually agreed upon priorities (also described in the
Agreement).
fB. Criteria and Considerations.
Criterion 1. Relaftnshlp to Community Planning.
Currently, the City of Bozeman is not served by nor located within the boundaries of a
Certified Regional Development Corporation (CRDC). The City of Bozeman's most
recent Economic Development Plan was adopted in 2009. This plan was developed by
Prospera Business Network. The methodology included interviews with a broad
spectrum of business and community leaders and a community survey. Planning was
guided by an advisory committee.
In addition, the City has a Planning Board comprised of community members and all
meetings are open to the public. The most recent Community Development Plan was
also adopted in 2009. The City of Bozeman is fully committed to transparency and
public participation at all levels of local government, especially planning.
As described above, economic development goals are determined by the community
and all planning efforts actively engage the entire community. The 2009 City of
Bozeman Economic Development Plan lists the following goals;
1. Support the expansion and retention of existing businesses and economic
clusters that will continue to strengthen and diversity the economy and create
higher paying jobs in Bozeman.
2. Maintain and upgrade infrastructure to support current and future needs of
business.
3. Support education and workforce development initiatives to provide Bozeman
with the qualified workers to meet the needs of business.
4. Leverage local, state and federal economic development resources to enhance
economic growth in Bozeman.
5. Creative a more collaborative and effective working partnership between the
business community and the City of Bozeman...
6. Maintain the high quality of life that is considered an important asset to the
business community.
Page 13
City of Bozeman CDBG ED Planning Grant Proposal:September 30, 2011
The 2009 Community Development Plan has two goals with multiple objectives. These
goals are:
a. Growth Management: Promote the unique history and character of Bozeman by
preserving, protecting, and enhancing the overall quality of life within the
planning area.
b. Implementation: Ensure that all regulatory and non-regulatory implementation
actions undertaken by the City to achieve the goals and objectives of this plan
are effective, fair, and are reviewed for consistency with this plan on a regular
basis.
The City's planning efforts for Mandeville Farm are fully consistent with the goals listed
above. Since the City acquired the property in 2003, determining and developing the
highest and best use of the parcel remains among the City's highest priorities. In 2006,
the City designated Mandeville Farm a Tax Increment Financing Industrial District and
completed a planning study. The recent Great Recession placed many of these plans
on the backburner as the City grappled with the need to provide basic services and
retain existing businesses with substantially reduced revenues.
As a result of discussions with the Department of Natural Resources regarding joint
planning and development of the State-owned and City-owned contiguous parcels, this
effort is rejuvenated and the City looks forward not only to the completion of the
planning phase, but implementation of development.
Criterion 2. Need for Planning Activity:
Joint planning and development of contiguous parcels totaling 275 acres in size
between the City and DNRC is a new and exciting opportunity for both the State and the
City. The two entities have established an agreement in principle to proceed with the
project and have determined to share the cost as well as the benefits of this initiative. In
recognition of the uniqueness of this opportunity, application for an Economic
Development Planning Grant under the Community Development Block Grant Program
through the Montana Department of Commerce was determined the best approach for
acquiring the resources and support necessary to complete project planning. This
shared burden/shared benefit model will be sustained throughout project development
and will substantially enhance the total benefit to all citizens of Montana.
The potential number of jobs created through build-out of this parcel is difficult to
estimate. Depending on the development model jointly adopted by the City and DNRC,
potential job creation will be measured in the hundreds if not the thousands;. and almost
all of these jobs will be permanent, family-wage jobs. Significantly, this project is ideal
for stimulating a resurgence of the construction industry throughout southwestern
Montana.
Page 14
City of Bozeman CDBG ED Planning Grant Proposal: September 30, 2011
Criterion 3. Community Efforts and Financial Need:
The City of Bozeman has a stellar track record of committing local resources to
addressing community development. The City actively supports the Prospera Business
Network and TechRanch (non-profit entities providing job incubator and related
services), Gallatin College (which will provide enhanced workforce training), and
numerous business associations.
Local resources are currently stretched to the breaking point and additional financial
support is needed to move the Mandeville Farm project forward, especially considering
the unanticipated opportunity of working with DNRC. This opportunity not only expands
the economic potential of this project, it will also facilitate acceleration of the
development phase. Combining City and State resources and focusing them on a
common goal will leverage private investment capital and encourage entrepreneurs to
look favorably on locating new business to the site.
During the completion of the study proposed in this request, the City will begin preparing
`next step' proposals to other entities such as the Economic Development
Administration, Big Sky Economic Development Trust Fund, USDA and similar
resources. The City's commitment of resources to this project ($12,500 in matching
funds) is derived from the City's General Fund. Eventually, the Mandeville Farm TIIFD
will be able to fund planning and development projects specific to the project site but, for
now, every taxpayer in Bozeman is being asked to support:this project. Similar, broad-
based funding is anticipated through the DNRC share of the matching requirements. In
other words, this is a project paid for by Montana citizens for the benefit of Montanans.
The total project cost of$50,000 ($25-K from MDOC and $25-K in matching funds) is
reasonable to achieve the goals described above. In the event proposed costs in
response to the request for proposals exceed the project budget, tasks will be `value
engineered' in order to achieve the primary goal of providing an outline for the joint
development of the City and State parcels. This `outline' will be the basis of a formal
agreement for the development of the property.
Matching funds will be provided by the City and DNRC upon receipt of notification of
funding award by MDOC. Each entity will commit $12,500. Recently, the City was
forced to increase sewer and water rates due to projected budget shortfalls, and also
reduced the number of FTE's on city payroll. These are extremely difficult choices for
any City government and the City's commitment of $12,500 to this project demonstrates
the importance of this initiative to the long-term economic health of the community.
Criterion 4. Benefit to low and Moderate-Income Persons
Page 15
n
City of Bozeman CDBG ED Planning Grant Proposal:September 30, 2011
The consultant's scope of work includes determination of the efficacy of designating a
portion of the project site for affordable housing. This determination will be based on
need and the results of a costlbenefit analysis. Considering the high rate of population
growth within the City and throughout Gallatin County, need may be justified. In the
event a housing component is included in the proposed project, low and moderate-
income families will benefit directly from this project.
Regardless of the outcome of the housing analysis, many of the jobs created by this
project will benefit low and moderate-income individuals. Depending on sources of
funding, the City will work with DNRC and other state agencies to encourage
employment of low/mod-income people and other underserved populations.
Criterion 5. First Time Recipient.
Yes.
Exhibit 1
City of Bozeman CDBG-ED Planning Grant Proposal
Project Budget: August 29, 2011
Source: CDBG- Source: City of Source: DNRC Total
ED Bozeman
Professional $25,000 $12,500 $12,500 $50,000
Services
Other 0 0 0 0
Total Planning $25,000 $12,500 $12,500 $50,000
Project
Budget Justification:
DNRC and the City of Bozeman will obligate matching funds ($12,500 each for a total of
$25,000) upon receiving notice of funding award. The total project cost of$50,000 is
reasonable and necessary to achieve the project's goal and objectives. No indirect or
administrative costs are charged to this project. Project administration and other indirect
costs will be met by the City of Bozeman. Substantial time on task contributions by City
and DNRC staff will also be provided at no cost to the funding agency.
The 'professional services' rate of$80/hour is based on recent contracts between the
City and professional services providers (excluding A&E providers). This rate reflects a
'team' of professional and para-professional service providers (principal investigator to
administrative support). Estimated hours (625) are based on project completion within
Page 16
City of Bozeman CDBG ED Planning Grant Proposal:September 30, 2011 .�
6-10 months using a 2-3 staff working 25% to 50% of their total time on tasks specific to
this project.
As soon as notice of funding is received, City and DNRC staff'will meet to develop a
comprehensive scope of work and request for proposals consistent with the needs of
the project and expectations of the City and State. Some tasks listed below may be
revised and additional tasks added as a result. Consultant services will be procured
through a fair and open process fully consistent with City and State procurement
policies.
Estimated time on task is:
• Identify legal-and administrative barriers: 80 hours
• Environmental review/mitigation: 100 hours
• Economic development coordination: 100 hours
• Community service/resources coordination: 100 hours
• Determine infrastructure requirements: 120 hours
• Cost/benefit analyses with recommendations: 125 hours
• Total time on task (@ $80/hr): 625 hours
Total project cost: $80/hr X 625 hours: $50,000
(hourly rate and time on task includes all ancillary costs such as travel, reproduction,
communications, etc. incurred by consultant(s))
Page 17
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