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HomeMy WebLinkAbout05-12 Northeast Urban Renwal Board Budget FY 2013 Proposal NORTHEAST URBAN RENEWAL BOARD r si;;,� tp e? F nxrman • Q Bnx i230 • Bozeman, MT 59771 _ . NORTHEAST URBAN RENEWAL BOARD BUDGET FY 2013 PROPOSAL TO THE BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted ordinance 1655 which formally enacted the Northeast Urban Renewal Plan. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSIONNISION "This Plan is the City's response to remedy the conditions of blight found in the August 2005 [Blight]Report. The Plan also addresses other issues important to the District. The Plan's purpose is to ensure the vitality of the Northeast Urban Renewal District(NURD) the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan envisions a District with diversity of housing businesses and amenities, it intends to maintain the unique ambiance and historic character of the District". Nine principals were developed for the plan for the plan. Each of the principals has one or more goals associated with the plan some of which specifically relate to this work plan others represent general objectives and directives. The Northeast Urban Renewal Board(NURB) goals are as follows: GENERAL GOALS: • Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved. • Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive. • Encourage a land use pattern that facilitates all modes of transportation— vehicular, bicycle,pedestrian, mass transit, and commercial—for safe, efficient and convenient access for residential, commercial, and industrial uses. • Harmonize commercial and industrial development with residential quality of life. • New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership. • Promote sustainable building practices and design within the district • Procure new land for park and open space • Improve landscaping in existing public spaces • Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan. Northeast Urban Renewal Board Annual Work Plan and Budget FY13 • Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan. • Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas. • Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District BACKGROUND In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1)Parks, Trails and Greenspace; 2) Infrastructure and 3)Neighborhood Development Plan. 2012 AT A-GLANCE In FY 2012, the Board continued to work on these priorities by finishing trail projects on N. Church Avenue and E.Aspen Street. Working with MSU Community Development Center students, the Board completed an update to their Neighborhood Development Plan. With the assistance of City staff engineer Dustin Johnson, the Board continued working with local engineering firm Morrison-Maierle to prepare conceptual designs for East Peach Street sidewalk improvements. The Board approved a special design standard for East Peach Street within the District.Adoption of the E. Peach Street design standard is pending City Commission approval. Staff assisted the Board with a Montana Fish,Wildlife and Parks Recreational Trails grant application for the Aspen Street Pedestrian Bridge. The FWP grant was not awarded, and the Board continues to seek funding opportunities for the bridge. The Board continued to demonstrate their commitment to preserving the District's historic character by offering financial assistance to the property owner for the completion of the Historic Brewery development project on N. Wallace Avenue. MOVING FORWARD —FY2013 The Board continues to support opportunities to work with Montana Rail Link and Burlington Northern Santa Fe on preservation projects for the passenger depot.Additional TIF funding has been contributed to the Aspen Street Pedestrian Bridge project. With assistance from City Planning staff, the Board continues to fine-tune their Neighborhood Plan and Redevelopment Incentives. The Board will seek funding opportunities for completion of E. Peach Street improvements and pursue partnerships with developers to complete portions of the project. If adopted by the City Commission, the proposed design for E. Peach Street will provide new sidewalks and boulevards with vegetated storm water detention swales on the north side of E. Peach Street and will designate the right-of-way as a sharrow (shared right-of-way) for bicycles and vehicles. The Board has set aside funding for engineering design services to analyze the potential for similar improvements on E. Tamarack Street, Front Street and N. Ida Avenue. Northeast Urban Renewal Board Annual Work Plan and Budget FY13 PRIORITIES I,II & III—IN DETAIL I. PARKS,TRAILS AND GREENSPACE District Trails and Depot Pocket Park Area Maintenance $ 5,000 The original trail, landscaping and bench installation were completed in 2002. Landscaping maintenance, including mowing and weed spraying, is on-going. Water is provided, as needed, from an adjacent property. The Board proposes continuing the operation of the temporary irrigation system, weed control and general maintenance. Weed control and general maintenance may also be needed in other District trail areas. Aspen Street Pedestrian Bridge $ 30,000 Board members identified the need for a pedestrian bridge at the terminus of E.Aspen Street and the N. Church Avenue trail east of N. Rouse Avenue. E.Aspen Street comes to an end at Bozeman Creek. The use along this section of E.Aspen Street is largely residential with a retail store (butcher shop) at the southeast corner of N. Rouse Avenue and E. Aspen Street. The Board feels the District's pedestrian connectivity could be improved with the construction of a pedestrian bridge to the N. Church Avenue Trail. During FYI 1, the NURB received positive feedback from the Northeast Neighborhood Association (NENA) on the project and Gaston Engineering completed a feasibility study and cost estimates. Construction of the bridge is estimated between$52,470 and $57,715. The budgeted amount is for construction. The budgeted amount does not cover the full cost of the bridge. The NURB continues to seek additional funding resources. Priority I Total $ 35,000 Priority I Rationale: The park, trail and green space improvements meet Guiding Principle 4 and Goals A& B under Principle 4 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, "Public open space is essential to a healthy and appealing urban environment" • Goal A, "Procure new land for parks and public open space" • Goal B, `Improve landscaping in existing public spaces. "- to include enhancing boulevards and public rights-of-way by planting and maintaining trees where appropriate and controlling weeds The spending of TIF funds on park and open space improvements is allowed under 7-15- 4255,Authority to provide or contract for services related to urban renewal, of the Montana Code Annotated. Specifically, item (lb) states that "Every municipality shall have power to install, construct, and reconstruct streets, utilities,parks,playgrounds, and other public improvements" Northeast Urban Renewal Board Annual Work Plan and Budget FY13 II. INFRASTRUCTURE Poor pedestrian connectivity within the District is well documented. Lack of street improvements including missing curb, gutter,pavement and sidewalks creates an unwelcoming and potentially unsafe environment for pedestrians and bicyclists.A lack of storm water drainage facilities leads to the ponding of water in public right-of-ways encouraging pedestrians to walk in the street emphasizing the need for street improvements. The District has a historic mix of light manufacturing and residential uses creating a more urban environment on the streets, especially during business hours. Modest improvements to pedestrian facilities to create safer more welcoming routes for pedestrians will reduce conflict between users. The lack of street delineation/improvements and storm water facilities has caused an unknown number of individuals to use some sections of the District as dumping grounds for unwanted appliances and furniture. Street improvements coupled with improvements to trails and parks and the landscaping of public spaces will improve conditions for pedestrians and bicyclists and reduce, if not eliminate, dumping in the public right-of-way. Making improvements to sidewalks on unimproved streets comes with some difficulty especially if elevation differences are present across the width of the right-of-way and if a need to improve storm water drainage is warranted as well. What seems like a rather simple project turns into a large scale street improvement project. Without additional information, moving forward on these improvements is difficult, so survey and design is the first step. Regarding design, the Board recognizes that creative solutions are needed to enhance the public right-of-way for two very different user types in the District. In support of improvements to these streets, the Board has allocated a portion of the FYI budget to the following deficient street sections in the District: E. Peach Street— Sidewalks, Storm Water control, Landscaping & Sharrow Construction $ 88,912 Survey and designs for E. Peach Street improvements have been completed. The Board approved the designs in November 2011. The Pedestrian and Traffic Safety Board and the Bozeman Area Transportation Coordinating Committee have reviewed the proposed design standard. An ordinance is being prepared by the City Attorney's office for the City Commission's consideration. If approved, this "special" design standard will be adopted for E. Peach Street within the Northeast Urban Renewal District. The total project cost is estimated at$321,000.As funding and/or funding partnerships become available, the Board will implement construction. E. Tamarack St., Front St. and N. Ida Ave survey and design $ 45,000 The Board wants to evaluate E. Tamarack, Front Street and Ida Avenue for"complete street" improvements. N. Ida Avenue may be particularly challenging since the right-of- way is extremely narrow and utilized by trucks coming from adjacent and nearby light manufacturing businesses. Creative solutions are necessary to improve these streets as Northeast Urban Renewal Board Annual Work Plan and Budget FY13 multi-modal connectors to District trails, the Deport Park, and hopefully in the near future, the re-developed NPRR passenger depot. Priority II Total $ 133,912 Priority II Rationale: The infrastructure improvements meet Guiding Principle 1 and Goals A& B under Principle 1 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, "Ensure the health, safety, and security of the District" • Goal A, "Outdated or insufficient infrastructure should be repaired, replaced or otherwise improved. " • Goal B, "Encourage a land use pattern that facilitates all modes of transportation vehicular, bicycle,pedestrian, mass transit, and commercial for safe, efficient and convenient access for residential, commercial, and industrial uses." The spending of TIF funds on infrastructure improvements is allowed 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... III.NEIGHBORHOOD DEVELOPMENT PLANNING Redevelopment Incentives $ 15,000 The NURB has set aside funds to offset the costs of upgrading public infrastructure in conjunction with redevelopment activities which implement the District's guiding principles emphasized in the District's Neighborhood Plan. Preserve America Grant Match $ 15,000 If additional historic preservation grant opportunities arise, the NURB has pledged to provide up to $15,000 in funds towards a grant for renovation opportunities. Matching funds may provide for a professional historical architectural and engineering team to examine the existing conditions, evaluate the architectural integrity of the building, identify potential issues with the site and study the feasibility of re-use opportunities at the site. Funds may also be used to offset the cost of Historic Preservation staff time spent managing the grant. Priority III Total $ 30,000 Northeast Urban Renewal Board Annual Work Plan and Budget FY13 Priority III Rationale: Neighborhood Development Planning meets Guiding Principle 2 and the Goal under Principle 2 of the adopted Northeast Urban Renewal District Plan: • Guiding Principles, "Balance commerce and livability in the District within the mixed-use framework"AND "Honor the unique character and vitality of the District" • Goal, "Harmonize commercial and industrial development with residential quality of life" • Implementation Action, "Where historic structures are affected by public or private development, seek out the advice and assistance of local, state, or federal historic preservation professionals for opportunities to renovate existing historic structures. " This funding proposal is for Neighborhood Plan implementation activities which are meant to encourage developers to build on parcels within the Northeast Urban Renewal District. 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. Board proposes to award grants to reimburse developers for costs allowable under Section 7-15-4288,MCA, but limited to public infrastructure. 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... Northeast Urban Renewal Board Annual Work Plan and Budget FY13 IV ADMINISTRATION Part-time staff and other Admin Services $ 6,800 The Board needs staff to assist with District Plan implementation. $5,000 is transferred to the Department of Planning to offset the cost of staff time used to assist the NURB with District Plan implementation. $1,800 is budgeted to cover administrative services. 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 $ 600 The Board has requested money for public noticing and mailings in the District. The purpose of the noticing and mailings is to inform property owners about and request feedback on NURB implementation and activities. 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;" TIF Correction The amount of increment the District will receive appears to be rather dynamic at this time. Staff discovered FY 11 revenues were inaccurately reported in the FY12 annual report. This resulted in a shortage in the beginning balance for FY12. That correction is highlighted in this report. Previously, $58,189 was reported as the"actual" revenue for FYI 1. New information from the City Finance Department reflects that"actual" revenue for FYI was $93,742.After correcting the starting balance for FY12, staff calculated a remainder of $33,429. It is staff's recommendation that this increment be set aside to offset any potential reductions in future revenue (increment). Staff took a conservative approach in projecting future revenues for the remainder of FY12 and FY13 and left the "anticipated" amount unchanged.Any new information received prior to the June 4th, 2012 City Commission hearing will be forwarded to the Commission, if time allows, or provided at the meeting. SUMMARY. FY 13 PROPOSED BUDGET Priority I $ 35,000 Priority II $ 133,912 Priority III $ 30,000 Staff time $ 5,000 Noticing and Administrative Services $ 2,400 TIF Correction $ 33,429 Overall Budget Total $ 239,741 Northeast Urban Renewal Board Annual Work Plan and Budget FY13 o m °o 00 °v a n 0 1 o n m F 0 0 o N o o o o o o� a o o o o o o o o N a F• o o o o o o co a to C7 N to N ✓" Q w o a Q a `'a U � m w zW N C W � N C7 n z Q z w o a I o o o W r 0 °\ o `o Q w w o o I I o o I o o o x o P m P P o o o I o x N N N 16 N o a w b a W � co T� � z p 0 x o o o IR v o F U o � e � � o a z lu N a 8 w o w u a 5 .: cv co o cv N co o" �w H� a w � O. z � v � u �, � q d ; O G ° o c bU o O �, u ro U W o uo ou Fx q z � � F ¢� dFxacaH wa ca z z ad F F v F x a F w