HomeMy WebLinkAboutResolution 4414, adopting the South Bozeman Technology District Comp. Development Plan1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Resolution 4414 adopting the South Bozeman Technology District
Comprehensive Development Plan.
MEETING DATE: November 5, 2012
AGENDA ITEM TYPE: Action Item
RECOMMENDATION: Approve Resolution 4414 adopting the South Bozeman Technology District Comprehensive Development Plan.
SUGGESTED MOTION: I move to approve Resolution 4414 adopting the South Bozeman
Technology District Comprehensive Development Plan.
BACKGROUND:
As part of the process required to create a technology district, defined in MCA 7-15-4295, a technology district must, prior to its creation, have in place a formally adopted comprehensive
development plan that ensures that the district can host a diversified tenant base of multiple
independent tenants. Resolution 4414 (Attachment 1), if approved by the City Commission,
formally adopts the South Bozeman Technology District Comprehensive Development Plan (the
“Plan”) thus fulfilling part of the aforementioned statutory requirement. Additionally, by approving Resolution 4414 and adopting the Plan the Commission finds that the plan ensures
that the district can host a diversified tenant base of multiple independent tenants.
Please note that the Plan is not a regulatory document like a growth policy, but rather is a
comprehensive development plan required by the enabling statute. As such, review of the Plan by the Planning Board is not required, nor does the Plan establish a basis for future land use
regulatory implementation, such as zone map amendments.
South Bozeman Technology District Comprehensive Development Plan
The Plan sets forth the rationale for establishing the South Bozeman Technology District (the
“District”), addressing the importance of economic diversification and job creation and
establishing the commitment to diversity of a tenant base. Additionally, the Plan acknowledges
the relationship between the proposed technology district and the City’s Economic Development
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and Community Plans and sets forth cost estimates for the development of the District. Creation
of the District is part of the City’s larger economic development strategy outlined in the City of
Bozeman’s 2009 Economic Development Plan addressing infrastructure deficiencies to achieve
the goals set forth in both the District Plan and the City’s Economic Development Plan. Since the adoption of the City’s 2009 Economic Development Plan, the City has prioritized
support for the following high growth potential sectors including:
• Photonics;
• Bio-sciences;
• Manufacturing;
• High-tech; and
• the outdoor industry.
Many of the sectors identified above are also supported by the mission and vision of the Montana State University Innovation Campus and are identified in the District Plan.
Technology districts were authorized in the 2005 Montana legislature. The statute, MCA 7-15-
4295, states that the purpose of a technology district is the development of infrastructure to
encourage the location and retention of technology infrastructure development projects in the state, and to address infrastructure deficiencies which are an impediment to development.
Currently, the City of Bozeman supports four TIF districts. Three are urban renewal districts, the
Downtown, Northeast and North 7th districts, and the fourth, Mandeville Farm, is an industrial
district.
Home to more than 100 technology-based firms, Bozeman has become the high-tech center of
Montana; and it is one of the largest technology communities in the northern Rocky Mountains.
Bozeman’s technology sector has grown significantly since the early 1990’s.
Bozeman’s technology sector includes firms engaged in advanced manufacturing (an estimated
26 firms) and laser optics (an estimated 20 firms); information technology—application
development, information technology services, software, internet applications, telecom, etc. (an
estimated 50 firms); biotech or bioscience (an estimated 33 firms); and agricultural,
environmental, or miscellaneous activities (an estimated 14 firms). These firms, for the most part, are selling their goods and services entirely to customers located outside of Montana and
many located outside of the United States. It is estimated that these firms directly employ more
than 3,000 people whose earnings are significantly higher than the county’s annual average
wage.
Additionally, the concentration of research activity at Montana State University has fueled the
development of technology-based companies clustered in Bozeman and it has been a significant
contributor to Bozeman’s vibrant entrepreneurial technology economy. University technology
transfer and commercialization activities have been driving economic development nationwide
since the early 1980’s when changes in federal legislation accelerated the process and increased incentives for collaboration between universities and industry. Montana State University is no
exception. According to the MSU Technology Transfer Office, technology developed at MSU
has resulted in the spin-off of 30 companies and licensing by 37 companies in the Bozeman area
and nearly 300 companies statewide. The university holds 163 licenses for patents for
innovations such as biological, chemical, and engineering processes and compounds, including coatings for the space shuttle and pharmaceutical drugs. Of those 163 licenses, 60% are with
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Montana companies, many located in Bozeman. The Innovation Campus plays a significant role
in the expansion of these high growth potential sectors.
MSU has grown to become a regional leader in research and creative projects with nearly $100 million in research expenditures in Montana each year. MSU was recognized by Carnegie Foundation for the Advancement of Teaching as one of 96 research universities nationally with
“very high research activity.” MSU has strong ties to industry in the Bozeman area, particularly
in the life science, aerospace, and information technology sectors. MSU lists relationships with
over 150 companies which include research support, licensing agreements, and consulting services.
The strength of Bozeman’s technology economy has also translated into private companies
receiving research and development and investment funding. During the 2000-2004 time period,
Montana ranked 10th in the nation in the average annual number of federal Small Business Innovation Research (SBIR) awards made, with nearly half going to Bozeman companies.
Job creation and industry diversification are the cornerstones of the City’s economic
development strategy. The approval and implementation of the Plan and creation and
stewardship of a technology district is consistent with theses priorities. Based on 2008-2009 data, MSU adds 13,511 public and private jobs to the state’s economy. This generates more than $1 billion in personal income from the four campuses and other affiliations, which equates to
$897.7 million in after-tax income and $253 million in state tax revenue.
Additionally, MSU’s research innovation has led to the creation and growth of diverse businesses in Bozeman and throughout the state, providing employment opportunities in industries such as agriculture, energy, construction, healthcare, technology, photonics,
manufacturing and biosciences.
As part of the technology district creation process, City and Innovation Campus staff have engaged City, County and School District7 officials over several months of conversations about the Plan, the District and the corresponding mission and goals of Innovation Campus in
requesting the establishment of the proposed technology district.
If approved, Resolution 4414, adopting the South Bozeman Technology District Comprehensive
Development Plan, shall be in full force upon passage.
UNRESOLVED ISSUES: None identified at this time.
ALTERNATIVES: As recommended by the Commission.
FISCAL EFFECTS: None identified at this time.
Attachments:
1) Resolution 4414 (with Exhibits A through C); a. Exhibit A, South Bozeman Technology District Comprehensive Development
Plan;
b. Exhibit B, legal description of the proposed South Bozeman Technology District;
and
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c. Exhibit C, map of the proposed South Bozeman Technology District.
2) Property Owners List; and
3) Public Notification.
Report compiled on: October 24, 2012
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RESOLUTION NO. 4414
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ADOPTING THE SOUTH BOZEMAN TECHNOLOGY DISTRICT
COMPREHENSIVE DEVELOPMENT PLAN AS REQUIRED BY SECTION 7-15-4295
(2) (e) MONTANA CODE ANNOTATED (MCA).
WHEREAS, job creation and industry diversification are critical to the long-term
economic vitality of Bozeman; and,
WHEREAS, the City wishes to stimulate, encourage and support the attraction, retention
and growth of jobs and industry in a variety of technology sectors; and,
WHEREAS, the number and diversity of jobs created in a variety of technology sectors
have high growth potential and support moderate to high income employment; and,
WHEREAS, the City of Bozeman supports the creation of a Technology District (the
“District”) at the location identified as the South Bozeman Technology District and for the use of
tax increment financing to support the activities of the District; and,
WHEREAS, 7-15-4295 (2) (e), MCA, requires that the District, must, prior to its
creation, have in place a formally adopted comprehensive development plan (CDP) that ensures
the District can host a diversified tenant base of multiple independent tenants; and,
WHEREAS, the District CDP known as the “South Bozeman Technology District
Comprehensive Development Plan” (the “Plan”) ensures the District can host a diversified tenant
base of multiple independent tenants; and,
WHEREAS, the Commission has determined that the area proposed for District has not
been designed to serve the needs of a single district tenant or group of non-independent tenants;
and,
WHEREAS, as part of the certification of the base year, Administrative Rules of
Montana (ARM) 42.19.1405 requires submittal of a copy of the CDP as required by 7-15-4295,
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MCA, the plan adopted by the local government prior to the creation of the District to the
Montana Department of Revenue; and,
WHEREAS, the Plan is in conformance with the Bozeman Community Plan (adopted
June 1, 2009), the adopted growth policy for the Bozeman planning area; and,
WHEREAS, the Plan is in conformance with the intent and purpose of the underlying B-
2 Community Business and B-P Business Park zoning pursuant to the Unified Development
Code, Bozeman Municipal Code Chapter 38; and,
WHEREAS, the Bozeman City Commission did on the 5th day of November 2012
conduct a public hearing to consider the proposed Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that:
Section 1
That the South Bozeman Technology District Comprehensive Development Plan attached
hereto as Exhibit A is hereby adopted.
Section 2
That the Plan encompasses the area(s) described in the legal description shown on
Exhibit B. The physical boundaries included in the CDP are shown on Exhibit C. Both
exhibits are hereby incorporated herein and made a part hereof.
This resolution shall be in full force upon passage and approval.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana at a
regular session thereof on the ___ of ____________________, 2012.
_________________________________
SEAN A. BECKER
Mayor
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ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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South Bozeman Technology District
Property owners in the proposed district:
1) Advanced Technology INC
910 Technology Blvd. Suite A
Bozeman MT, 59718
S14, T02 S, R05 E MINOR SUB 195A NW4 41.97 AC TRACT C-1A
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NOTICE OF PUBLIC HEARINGS ON THE CREATION OF THE SOUTH BOZEMAN
TECHNOLOGY DISTRICT AND USE OF TAX INCREMENT FINANCING
Notice is hereby given that the City Commission for the City of Bozeman, Montana, at its
regular meeting on November 5, 2012, at 6 pm in Bozeman City Hall (121 N. Rouse Ave), will
hold two public hearings on the creation of the South Bozeman Technology District (the
“District”) pursuant to 7-15-4295, MCA. The Commission will first hold a public hearing on Resolution 4414 adopting the Comprehensive Development Plan for the District. The Commission will then hold a public hearing on Ordinance 1844 creating the District and
authorizing the use of tax increment financing for the District pursuant to 7-15-4282, MCA.
Copies of the proposed Resolution 4144, the South Bozeman Technology District Comprehensive Development Plan, and Ordinance 1844, which includes a tax increment financing provision, a map showing the boundaries of the proposed District, a legal description
of the proposed District, and a list of all properties subject to the proposed District, are on file in
the office of the Bozeman City Clerk, 121 N. Rouse Ave., Bozeman, MT.
Questions concerning the Resolution, Ordinance, the creation of the District, or the use of tax increment financing may be directed to Brit Fontenot, Director of Economic Development, City
of Bozeman, 121 N. Rouse Ave. Bozeman, Montana, by email at bfontenot@bozeman.net, or by
telephone to 406-582-2258.
Publish: October 21, 2012 and November 4, 2012
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