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HomeMy WebLinkAboutDowntown Tax Increment Finance District Report and 2013 Work Plan and Budget May 24, 2012 TO: Chris Kukulski Anna Rosenberry Bozeman City Commission FR: Chris Naumann Executive Director RE: Tax Increment Finance District FY 2013 Budget and Work Plan Commission Meeting: June 4, 2012 Attached are the Downtown Tax Increment Finance District (TIF) FY2012 Annual Report, FY2013 Work Plan and FY2013 Budget. The FY2013 Budget was unanimously approved by the TIF Board on May 15, 2012. I will be presenting these documents at the City Commission meeting on Monday, June 4, 2012. If you have any questions regarding the annual report, work plan or budgets, please feel free to contact me at any time. Respectfully Submitted, Chris Naumann 72 Downtown Tax Increment Finance (TIF) FY2012 Annual Report and FY2013 Work Plan and Budget On November 6, 1995, the City Commission passed Ordinance No 1409 adopting the Urban Renewal Plan for downtown Bozeman. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained. 2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan. 4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles, but are only listed once below). 1. Strengthen downtown’s economic vitality  Provide more, better managed parking; retain public offices and anchor businesses; facilitate commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly 2. Improve the safety, security and health of the district  Improve traffic flow emphasizing downtown as a destination; improve public works; improve night-time lighting; improve sidewalks; increase police presence; improve alley and parking lot appearance and safety 3. The image of downtown shall be continuously improved  Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to Bozeman Creek; improve trash removal 4. Downtown’s accessibility shall be improved  Provide effective public transportation; better accommodate bicycles; reduce reliance on private automobiles 5. “Community Partnership” is fundamental to downtown’s success  Encourage growth of cultural activities; preserve historic character 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly 9. Cultural activities shall be nurtured and expanded downtown TIF-IDB Mission Statement The Downtown Bozeman Tax Increment Finance board (TIF) will foster an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) s upports the vitality and diversity of the Gallatin Valley as its social and cultural center. 73 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2012 Annual Report (July 1, 2011 to June 30, 2012) Downtown Parking Garage $ 435,300 invested The TIF made a payment of $425,300 on the Bridger Park Garage construction bond. The TIF also pledge its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund. This year’s contribution will be $10,000. Chris Naumann, TIF Director, has continued to play an active role in the operation and maintenance of the parking garage as a member of the BPC. Downtown Partnership Management Fee $ 95,600 invested The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the Downtown Partnership office in addition to a portion of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF. Technical Assistance Grant Program $ 70,000 invested $ 76,000 encumbered This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. This year the TIF awarded 14 Planning Grants and 4 Facade Grants to a variety of proposed downtown redevelopment projects. Streetscape Element Purchases $ 18,900 invested The TIF purchased additional streetscape elements to augment those already located in the downtown district. This year’s purchases included: pedestrian benches, trash receptacles, and cigarette disposal fixtures. Streetscape Engineering $ 17,000 invested The TIF Board finalized Phase 3 of the Downtown Streetscape Plan which will complete the final sections of the unimproved streetscapes between Mendenhall and Babcock (from north to south) and Wallace to 3rd (from east to west). Streetscape and Park Maintenance $ 10,262 invested The TIF pays for the replacement of dozens of the street lamp light bulbs annually. For several years the TIF has taken responsibility for the seasonal maintenance of the landscaping, amenities, and irrigation system at Soroptomist Park. The TIF also made a $5000 investment to replace all of the over-street cables that suspend the Christmas Spider decorations. Downtown Plan Implementation $ 6,625 invested The TIF made one investment towards accomplishing priority objectives established in the 2009 Downtown Improvement Plan. The TIF contracted Alta Planning to do a graphic rendering project for the Downtown Urban Route Transformation (DURT) Project. The renderings include 3 -D images of Mendenhall Street with the following configurations: current cond itions; existing one-way street with new streetscapes; and one-way street with a single bike lane and new streetscapes. The rendering package also includes a “fly-through” video showing these improvements. 74 Streetscape Assistance Program $ 0 invested The TIF did not receive any assistance applications this year. This TIF program provides property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Downtown Explosion Impact Fee Relief $ 0 invested On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. Neither of the two remaining vacant parcels were rebuilt this fiscal year so in turn no funds were expended. Downtown Housing Incentive Program $ 0 invested The TIF did not receive any housing incentive applications this year. The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing- related impact fees for qualifying residential projects. Downtown Hotel Incentive Program $ 0 invested The TIF did not receive any hotel incentive applications this year. The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The specifics of this program are still being determined by the TIF Board and staff. Potentially the program will involve partial reimbursement of the impact fees associated with the development of a downtown hotel. 75 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2013 Work Plan (July 1, 2012 to June 30, 2013) Downtown Parking Garage $ 438,000 budgeted The TIF will make the annual bond payment and long-term maintenance fund contribution for Bridger Park, the downtown parking garage. Downtown Hotel Incentive Program $ 200,000 budgeted The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program offers to reimburse 50% of the impact fees associated with the development of a hotel not to exceed $100,000. The TIF Board reserves the option to incentivize two qualifying hotels. Downtown Improvement Plan Implementation $ 125,000 budgeted The TIF board has allocated funds to be invested in high-priority projects identified by the Downtown Improvement Plan. These funds could be used for further planning or design projects or for implementation of particular projects. This year’s projects will include preliminary engineering for the Downtown Urban Route Transformation (DURT) Project. Technical Assistance Grant Program $ 125,000 budgeted This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. The following services are eligible for Technical Assistance funds: Development feasibility study, Preliminary development review, Building condition assessme nt, Renovation or reuse studies, Historical inventory and research, Parking requirement assessment, Preliminary cost estimates, UDO and building code analysis, Scenario planning and phasing. Downtown Explosion Impact Fee Relief $ 100,000 budgeted On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. There are still two properties to be reconstructed. Downtown Housing Incentive Program $ 100,000 budgeted The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. Downtown Partnership Management Fee $ 95,600 budgeted The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the downtown office at 22 2 East Main Street in addition to the majority of the payroll costs of Chris Naumann, who serves as the Director of the TIF. 76 Code Compliance Program $ 75,000 budgeted This new TIF program will provide property owners with partial reimbursement for life -safety code compliance upgrades. The inaugural program will be specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program will have a one-to-one match required of the property owner and a per-project dollar cap. The specifics of the program will be finalized by the TIF Board and director in July of 2012. Streetscape Element Purchases $ 40,000 budgeted The TIF will continue to supplement the existing streetscape inventory by purchasing additional historic street lamps, trash receptacles, pedestrian benches, tree guards and bike racks. This year the TIF will make a considerable investment in eight multiple bin recycling receptacles to be placed along Main Street. Streetscape Assistance Program $ 35,000 budgeted This TIF program will provide property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape and Park Maintenance $ 12,000 budgeted The TIF will continue to maintain the large number of streetscape elements in the downtown district, all of which were originally purchased with TIF funds, including: historic street lamps, pedestrian benches, trash receptacles, tree guards, and bicycle racks. The TIF will continue to fund the landscaping maintenance for Soroptomist this fiscal year. The FY2013 Downtown Tax Increment Finance District Work Plan and Budget were unanimously approved by the TIF Board on May 15, 2012. 77 Downtown Tax Increment Finance District FY2013 Budget Category FY2013 BUDGET Income Starting Cash Balance 1,274,000$ Income from TIF (estimated)428,400$ COB Interlocal Share 375,000$ Entitlement Share State of Montana 31,358$ Interest Income (estimated)11,000$ Total Income 2,119,758$ Expense Operations Management Fee and Admin.95,600$ Total Operations 95,600$ Street Improvement Street Furniture and Park Maintenance 12,000$ Streetscape--new purchases 40,000$ Streetscape Assistance Program 35,000$ Total Street Improvements 87,000$ Planning Downtown Parking Study -$ Technical Assistance Grants 125,000$ FY11 Encumbered Funds 21,000$ FY12 Encumbered Funds 55,000$ Housing Incentive Program 100,000$ Hotel Incentive Program 200,000$ DBIP Implementation Funds 125,000$ Total Planning 626,000$ Parking Structure Garage Bond Payment 428,400$ Garage Long-term Maintenance Fund 10,000$ Total Parking Garage Payments 438,400$ Explosion Impact Fee Expenses Explosion Impact Fees 100,000$ Total Impact Fee Expenses 100,000$ Code Compliance Program Code Compliance Program 75,000$ Code Compliance Program 75,000$ Total Expenses 1,422,000$ Year End Balance 697,758$ 78