HomeMy WebLinkAboutEconomic Development Incentives Policy Discussion1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Economic Development Council (EDC)
Brit Fontenot, Director of Economic Development
SUBJECT: Economic Development Incentives: A Policy Discussion
MEETING DATE: April 15, 2013
AGENDA ITEM TYPE: Policy Meeting
RECOMMENDATION: Consider the material and discussion on economic development
incentives and provide policy guidance to the EDC and staff regarding an incentive program, or programs, for the City of Bozeman.
BACKGROUND:
I. Incentives
Generally, incentives are used to encourage certain types of behavior. In the context of
economic development, a wide variety of incentives are used to encourage a multitude of economic and/or investment behavior. With a wide degree of variability, incentives can range from hundreds, to tens of millions of dollars and may be funded from the federal, state or local
level. If successful, a community may incent the creation or relocation of mid- to high wage jobs
in identified sectors for a defined period of time, typically a commitment lasts from between 5 to
10 years but terms may vary.
The following examples of development incentives are commonly used by many cities throughout the United States. Incentives currently in use in Bozeman are italicized:
A. Industrial revenue bonds are loans issued for the purchasing of capital, supplies, and
construction costs or equipment;
B. Tax increment financing includes improvements in public infrastructure or private development are financed based on the expected future revenue that will be generated by the increased property value of the improved area;
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C. Industrial enterprise direct/subsidized loans where state and local governments can
provide direct and subsidized loans to private businesses based on the promise that a
quota of jobs will be produced;
D. Site advantage are when governments may provide potential businesses with free land, buildings, exemptions from local and state regulations, and other customized services for agree to develop a specific area;
E. Tax incentives include government provided reduction in tax liability for a defined
period without expectation of repayment. The lost revenue will theoretically be made up by the generation of new jobs in the area in addition to the additional revenue the company will pay once the abatement period is over. Examples include property tax abatement, corporate income tax credit, and sale tax exemptions;
F. Public utility rate breaks (water, electricity etc.) are when utility rates are subsidized by
the city for companies which launch construction projects within designated zones;
G. City projects/Infrastructure improvements include blighted areas are targeted for investment and improvement by state and local government to improve functions of the area and quality of life factors; and
H. Development fee mitigation includes allocating funds to offset development fees for
businesses meeting identified thresholds including number jobs created, wages paid as a
percent of the average wage, and commitment to remain in business in the jurisdiction for a specified period of time.
As the literature shows, there is no consensus on whether incentives are an appropriate or
adequate economic development tool for job creation and industry diversification. They work
for some communities but not others. Why? The distinctive nature of each community requires
that incentive programs be created by balancing the unique qualities inherent in each community against broad and long-term community goals and priorities. Some communities operate
economic development incentive programs which are seldom, if ever, utilized. In those
instances, the concept is that having incentives at all keeps businesses interested in the
community, whether they are actually used or not.
Other communities depend on incentives to further their community goals of strengthening their local economy; a dependence which includes recognition that tax dollars used
to incentivize agreed upon types of development produces a positive return on the investment
and is in the public interest. There are additional examples of incenting the relocation of large
employers who were ultimately unable to meet their obligations to the community, leaving the
local taxpayers with higher taxes and no new jobs or economic diversity to show for the investment. One size does not fit all.
II. City of Bozeman’s Incentives
The City of Bozeman currently manages many incentives, although we seldom think
about them as such. Existing incentives include:
A. Economic Development Fund Big Box Fund; B. City of Bozeman’s Revolving Loan Fund (managed by Prospera);
C. Big Sky Energy Revolving Loan Fund (managed by the Rocky Mountain RC & D);
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D. City/County Tax Abatement Program (for new and expanding businesses);
E. City Tax Abatement Program for Historic Preservation;
F. Transportation Impact Fee Deferral Program (as of April 1, 2013);
G. Impact Fee Credit Transfer Program; H. Impact Fee Program (capacity expanding infrastructure); I. Downtown Bozeman Partnership;
1. Business Improvement District;
2. Downtown Urban Renewal District (see J (1) (a) below); and
3. Downtown Graffiti Removal Program. J. Tax Increment Finance Districts; 1. Urban Renewal Districts.
a. Downtown Urban Renewal District;
b.North 7th Urban Renewal District; and
c. Northeast Urban Renewal District. 2. Industrial Districts. a. Mandeville Farm Industrial District.
3. Technology Districts.
a. South Bozeman Technology District.
K. City Graffiti Removal Program. Additionally, the City has discussed the creation of a Foreign Trade Zone at the North Park
property.
III. Policy Discussion
The issue of economic development incentives was raised during the impact fee program discussion over the winter of 2012-2013. At that time, the Commission directed staff to return
with transportation impact fee mitigation and deferral programs in addition to a discussion on
economic development incentives coordinated with FY 14 budget discussions. The Economic
Development Impact Fee Mitigation (EDIFM) and deferral programs were discussed on January
28, 2013. (ATTACHMENTS 1 & 2) The impact fee deferral program was reviewed and approved by the Commission April 1, 2013 and is now operational.
At its March 7, 2013 meeting, the EDC created a subcommittee to investigate economic
development incentives. Led by Erik Garberg, the subcommittee, consisting of Mr. Garberg,
Tracy Menuez and Teresa McKnight, assisted by City staff, researched the issue of economic
development incentives in various communities around the United States. Community incentive snapshots are provided as ATTACHMENTS 3, 4, 5 and 6. Additionally, the Government Finance Officers Association (the “GFOA”) published a “Best Practice” guide entitled
Developing an Economic Development Incentive Policy (2008) that sets forth a basic structure
for creating municipal incentive programs. (ATTACHMENT 7)
Subsequently, at its April 4, 2013 meeting, the EDC discussed the concepts and material provided herein and returns to the Commission to engage in a policy discussion on the issue and
to request Commission guidance on whether to pursue the creation of an economic development
incentive program for Commission consideration at a future date and, if so, to consider the scope
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of additional incentives, budget implications and potential funding sources. Currently there is
$50,000 proposed in the FY 14 budget to fund an incentive program, among other proposed
increases in economic development programs and activities. (ATTACHMENT 8)
Options for funding an economic development incentive program by the City are limited. A few options include:
A. Allocate general fund money through the regular yearly budget process,
increasing mills to support economic development activities (with or without a
sunset provision)1
B. Commission support for a ballot initiative to raise revenue to fund economic development activities;
;
C. Leverage general fund money to match private funding for the purpose of funding
economic development activities; and/or
D. Current tax increment finance districts (TIFs) could be requested to approve a
certain percentage of annual budgets to support economic development activities.
Any one, or combination of potential funding sources listed above could include funding
for an incentive program. Additionally, the Commission could consider a cap on the total
amount of incentive dollars allocated on an annual basis and a sunset provision in the event
incentives are not meeting identified goals within designated time frames.
IV. Incentives and the 2009 Economic Development Plan
The concept of economic development incentives is tied directly to the adopted 2009
Economic Development Plan (the “EDP”). The EDP encourages leveraging local resources to
enhance economic growth. Number four of the six EDP Goals and Strategies states:
4. Leverage local, state, and federal economic development resources to enhance
economic growth in Bozeman.
a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal
and economic redevelopment opportunities where appropriate.
b. Support the continued growth and success of the Bozeman Revolving Loan Fund (RLF) and the establishment of new revolving loan funds to provide additional financing
options for Bozeman businesses.
c. Utilize incentives or inducements, such as property tax abatement or development
fee abatement, to encourage business investment and development in desired areas.
d. Encourage commercial real estate developers to apply for New Market Tax Credits on
projects that meet the established criteria.
1 The FY 13 value of one mill is $83,226. Currently the City levies 166.75 mills, 29.87 mills below the statutory
limit of 196.62 mills.
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e. Utilize the Big Sky Economic Development Trust Fund (job training grants, planning
grants, matching funds) and Workforce Training Grants from the Montana Department of
Commerce to support business expansion and relocation as well as current economic
development planning projects. f. Seek new Community Development Block Grant (CDBG) funds to implement projects
and programs.
g. Utilize Brownfield funding to facilitate redevelopment in appropriate sites where funding is available.
h. Identify and support redevelopment opportunities and adaptive reuse of large
commercial centers.
The above adopted economic development goal is consistent with the creation of an economic development incentive program to encourage the growth and addition of mid- to high
wage jobs. For the complete set of EDP Goals and Strategies, see ATTACHMENT 9.
Additionally, in its’ recently adopted 2013 – 2014 priorities, the Commission identified the
expansion of both mid- to high-wage jobs and economic growth and diversity as their top priority. (ATTACHMENT 10)
V. Additional Considerations
As discussed above, incentive programs should be tailored to the unique conditions and
goals of the community, insuring, as much as possible, a return on the investment. Based on Commission priorities, the highest return manifests itself in additional mid- to high wage job
creation and economic diversity. Given the limited resources available for funding economic
development programs and activities in the City of Bozeman, the EDC discussed the following
incentive considerations:
A. Set aside a portion of any allocated funding to create an on-going incentive fund. If funded annually and compounded, in several years the incentive program can provide
larger and more complex financial incentives as warranted;
B. Allocate the balance of the fund to complement existing services and successful programs
in areas that have already identified need, i.e. Downtown Technical Assistance Grant
Program (ATTACHMENT 11), North 7th Rehab Grant Program (ATTACHMENT 12) and the Bozeman BEAR (Business Expansion and Retention) program
(ATTACHMENT 13). Leverage funds that are already available with additional
incentive resources. By complementing existing programs, the City can reduce the
overall costs of creating and managing a new incentive program;
C. Based on identified community needs, i.e. workforce training, marketing and promotion and additional start-up costs, and create an additional technical assistance program (or
programs) where smaller amounts of incentive dollars can make a larger impact on local
small businesses and entrepreneurs;
D. Adhere to the principles of economic gardening, the grow your own approach to
economic development;
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E. Maintain flexibility;
F. Measure and evaluate outcomes; and
G. Reassess yearly.
The goal is to maximize the value of the incentive dollar where it can go the farthest and have the most direct and meaningful impact.
VI. Economic Development Priorities
Finally, as the Commission discusses the issue of incentives and balances additional
economic development funding priorities identified in the FY 14 budget proposal with that of
other competing priorities, consider where incentives rank on the economic development priority list:
A. FTE (Economic Development Specialist);
B. Gallatin College;
C. Sector Development, i.e. photonics and outdoor;
D. Economic Development Incentives; and E. Additional North Park resources.
Each of the items listed above have the opportunity, on its own, to increase the impact of
the City’s economic development program. However, funding for all recommended increases in
programming and activities may not be practical. The Commission is urged to consider which
areas of funding have the opportunity for the most direct positive impacts to the local economy and on local businesses and the highest potential return on the investment of the City’s limited
economic development resources.
VII. Education and Information
Education is a critical component of the success of any program, new or existing.
Regardless of whether additional incentive measures are authorized, the Commission should consider supporting increased resources for educating the public, staff and service providers
about City incentive programs. On occasion, staff is invited to discuss and explain the various
programs to private businesses and non-profit economic development service providers who
regularly interact with the development community. Outreach and education is an ongoing
challenge that could be refocused into an important opportunity.
UNRESOLVED ISSUES:
1. Provide guidance to the EDC and staff on the issue of economic development incentives;
2. If the Commission is inclined to support the creation of a formal incentive program,
define it and identify a potential funding source or sources to support expanding
economic development incentives; and/or 3. Other issues or considerations identified by the Commission.
ALTERNATIVES: As directed by the Commission.
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FISCAL EFFECTS: The fiscal effects of an increase in funding to support an incentive
program on the City’s budget are undetermined at this time. Should the Commission allocate
financial resources to an incentive program, or other economic development activities, funding
these activities will likely have effects on local taxes.
Report compiled on: April 7, 2013
Attachments:
1. January 28, 2013 Commission Memo and attachments, RE: A Discussion of an Economic
Development Impact Fee Mitigation (EDIFM) program as an incentive for targeted
business and industry sectors in consideration of Ordinance 1853; 2. April 1, 2013 Commission Memo and attachments, RE: Commission Resolution 4433 implementing the impact fee payment deferral provisions of Ordinance 1853 as directed
by the City Commission;
3. City of Missoula, Montana, economic development incentives and programs;
4. City of Ashville, North Carolina, economic development incentives and programs; 5. Greater Fargo and Moorehead North Dakota, economic development incentives and programs;
6. Cities of Madison, Wisconsin, Arlington, Texas and Bend, Oregon, economic
development incentives and programs;
7. GFOA best practices guide, Developing an Economic Development Incentive Policy (2008); 8. FY 14 economic development budget proposal;
9. City of Bozeman’s adopted 2009 economic development goals and strategies;
10. Bozeman City Commission’s adopted 2013 – 2014 priorities;
11. Downtown Technical Assistance Grant program; 12. North 7th Rehab Grant program; and
13. The Bozeman BEAR program.
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: A discussion of an Economic Development Impact Fee Mitigation
(EDIFM) program as an incentive for targeted business and industry
sectors in consideration of Ordinance 1853.
MEETING DATE: January 28, 2013
AGENDA ITEM TYPE: Action
RECOMMENDATION: Consider the discussion below in the context of adopting Ordinance
1853 and based on the discussion, provide direction to staff regarding the creation and funding of
an EDIFM program.
BACKGROUND:
At the public meeting held on December 10, 2012, the Commission directed staff to
return with, among other information, a discussion of targeted support for impact fee mitigation.
The following material is part of the larger Commission discussion on the implementation of the
impact fee program.
Economic Development and Impact Fees
Ideally, in its consideration of the implementation of the transportation impact fee
program, the Commission would discuss the synchronization of the impact fee program
implementation with the Commission’s established economic development goals, priorities and
policy initiatives.
This memo discusses an economic development incentive program commonly referred to
as an Economic Development Impact Fee Mitigation, or EDIFM, program. In the economic
development strategies of many states and local governments, a mitigation program is usually
one of a broad portfolio of economic development incentives. That is to say, if incentives are a
functional part of an organization’s economic development “strategy”, the organization should
not depend on an EDIFM program alone.
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A well integrated policy and regulatory environment is advantageous for both the public
and private entities. The effect of the new impact fee methodology on the implementation of the
City’s Economic Development Plan should be considered in the overall impact fee
implementation discussion. It should be noted that incentivizing targeted industry growth for
economic development may take several forms, funded from a variety of sources. The broader
discussion is beyond the scope of this memo which is focused on targeted incentives for
economic development through the City’s impact fee program. One type of incentive is the
establishment of an economic development impact fee mitigation program (EDIFM) described
below.
Economic Development Impact Fee Mitigation Program Authority
Currently there is enabling language in the Bozeman Municipal Code (the “BMC”) which
allows the mitigation of some or all of development impact fees for the promotion of economic
development. The Commission’s decision to mitigate some or all development impact fees must
be made “pursuant to goals and objectives previously adopted by the city commission to promote
economic development.”
Bozeman Municipal Code Sec. 2.06.1700. - Miscellaneous provisions.
H. In order to promote affordable workforce housing of the city, the city commission may
waive impact fees for workforce housing lots approved by the city commission pursuant
to Chapter 10, Article 8, by paying some or all of the impact fee from other funds of the
city that are not restricted to other uses. In order to promote the economic
development of the city and the provision of affordable housing in the city, the city
commission may agree to pay some or all of the development impact fees imposed on
a proposed development by this division from other funds of the city that are not
restricted to other uses. Any such decision to pay development impact fees on behalf
of an applicant shall be at the discretion of the city commission and shall be made
pursuant to goals and objectives previously adopted by the city commission to
promote economic development and/or affordable housing.
Economic Development Impact Fee Mitigation Program Rationale
The concept underlying the mitigation of a portion or all of an assessed transportation
impact fee lies in the desire by a local government to incent or support economic development by
reducing the cost of development to certain industries. Generally, certain types of business or
industry, identified as being high-skilled or having high growth potential, pays higher than the
average in wages and benefits. These jobs add significant value to a community by providing
expanded numbers of well compensated employees in a variety of mid to higher paying jobs and,
in turn, those employees re-invest into the community by purchasing homes, goods and services.
This result is a higher level of economic activity and, for local government, an expanded tax
base.
The Goals and Strategies of the City’s adopted 2009 Economic Development Plan (the
“EDP”) identify several rationales for adoption of a mitigation program. (Attachment 1) First,
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the EDP identifies several broad potential high growth business “clusters” as catalysts for
medium to high paying job creation and overall expanded economic diversification.
Additionally, EDP goals “encourage the participation of the business community in the
development of city-wide programs related to transportation, growth management, development
impact fees, environmental protection, and other related issues.”
The City’s Economic Development Council (the “EDC”) is a volunteer advisory body
consisting of public and private sector appointees. In the course of its work, the EDC discussed
the impact fee issue on several occasions, much of it information and education. In November,
2012 the EDC supported forwarding the following discussion points for Commission
consideration during the impact fee discussion:
1. Identify specific sectors, job creating and industry diversifying sectors, with high
growth potential, for deferral of commercial impact fees, or a percentage thereof,
until the application for Certificate of Occupancy;
2. Increase education and information; and
3. Compare the City’s development fee schedule against the development fee schedules
of other communities on a yearly basis.
As evidenced by the example of public participation and input described above, the
Commission continues to meet goals set forth in the EDP. These three discussion points are
addressed elsewhere in narrative and in the previous memorandum1. Additional goals, as they
relate to targeted mitigation of impact fees, are highlighted below:
1. Support the expansion and retention of existing businesses and economic
clusters that will continue to strengthen and diversify the economy and create
higher paying jobs in Bozeman.
a. Pursue, support, and provide assistance for business start-up, expansion,
and business recruitment efforts that strengthen the following economic
clusters:
• Arts & Culture (artisans, fine arts, cultural heritage, entertainment)
• Construction and Development (architecture, construction, engineering)
• Green (clean and renewable energy, water conservation, waste reduction
technologies, outdoor/recreational activities)
• Healthcare and Medical
1 A discussion of a targeted sector impact fee deferral program is contained in the previous memo dated January 28,
2012, titled Ordinance 1853 amending Chapter 2, Article 6, Division 9, Impact Fees to establish definitions, address
possible deferral of payments, modify timing of documentation updates, and other revisions for clarity; and possible
direction on related implementing resolutions.
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• Knowledge Based Enterprises (research and development, think tanks,
financial services, consulting, public policy, education)
• Manufacturing (machinery, printing, wood product, textile,
food/beverage, computer/electronic)
• Media (film, publishing, journalism, Internet)
• Technology (biotech/bioscience, information technology, laser/optics)
b. Support and promote entrepreneurial efforts linked to emerging markets, high
technology, and research and development.
c. Support the Business Expansion and Retention (BEAR) program that is facilitated
by the Bozeman Area Chamber of Commerce and Bozeman Job Service.
d. Leverage MSU-Bozeman research, faculty, and students to expand upon current
opportunities and identify additional opportunities for the long term economic
diversity and vitality of Bozeman.
e. Encourage the participation of the business community in the development of
city-wide programs related to transportation, growth management, development
impact fees, environmental protection, and other related issues.
f. Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman
Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera
Business Network, MSU-Bozeman, and others to promote Bozeman.
Additionally, the EDP encourages leveraging local resources to enhance economic
growth:
4. Leverage local, state, and federal economic development resources to enhance
economic growth in Bozeman.
a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal
and economic redevelopment opportunities where appropriate.
b. Support the continued growth and success of the Bozeman Revolving Loan Fund
(RLF) and the establishment of new revolving loan funds to provide additional financing
options for Bozeman businesses.
c. Utilize incentives or inducements, such as property tax abatement or development
fee abatement, to encourage business investment and development in desired areas.
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d. Encourage commercial real estate developers to apply for New Market Tax Credits on
projects that meet the established criteria.
e. Utilize the Big Sky Economic Development Trust Fund (job training grants, planning
grants, matching funds) and Workforce Training Grants from the Montana Department of
Commerce to support business expansion and relocation as well as current economic
development planning projects.
f. Seek new Community Development Block Grant (CDBG) funds to implement projects
and programs.
g. Utilize Brownfield funding to facilitate redevelopment in appropriate sites where
funding is available.
h. Identify and support redevelopment opportunities and adaptive reuse of large
commercial centers.
The above adopted economic development goals are consistent with the creation of an
economic development incentive program to encourage the growth and addition of mid- to high
wage jobs.
Sample Economic Development Impact Fee Mitigation Ordinance and Programs
While impact fee mitigation programs exist throughout the nation, we examined two
local governments in Florida with active EDIFM programs2.
Since 2011 the City of Lakeland, Florida (2010 pop. est. 97,422) has operated an EDIFM
program to “encourage quality job growth in targeted high value added businesses”.
(Attachment 2) You can find more incentive and program information at Lakeland’s Economic
Development Council website.
Their material states:
In Lakeland there are three ways to take advantage of the [impact fee] mitigation:
1. High Wage Job Creation (build to suit projects adding high wage jobs paying
115% of the average annual wage);
2. Industrial Job Creation (build to suit projects adding more than 100 new jobs); or
3. Inventory Development (creating an available industrial building inventory for
prospective companies).
2 Examples of other communities who use EDIFM programs are; a) City of Edgewater, Florida, b) City of
Fremont, California, c) City of Arlington, Texas, and d) City of Tucson, Arizona.
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Two businesses have taken advantage of the program since its inception. One has since
failed, the second brought 400 jobs to the community and, according to Lakeland officials, the
auto parts distribution operation remains stable.
Martin County Florida (2008 pop. est. 138,660) has operated an EDIFM program since
2008. (Attachment 3) Established by ordinance, the program intends to “to encourage
economic opportunities and permanent business expansion.” (Attachment 4) You can find
more incentive and program information at Martin County’s economic development website.
The Martin County incentive criteria are:
1. Create a minimum number of jobs (10) within a “Qualified Target Industry Business”
(Attachment 5);
2. Pay between 115% and 200% of average private sector wage or, commit to between
$10m to over $20m total capital investment; and
3. Commit to remain in the County at least until such time as obligations of the
Economic Development Fund, related to the business, are replenished.
According to the administrating authority, despite several promising starts and genuine
interest by expanding or relocating business interests, the program has yet to be used. They cited
various reasons for the inactivity. In Florida, the stagnant economy played a role in limiting all
types of new or expanding development. Extended payback periods for the amount of upfront
cost savings was not cost effective for most of the projects. There was difficulty financially
securing projects especially through gaining favorable positioning over the primary lender on
property liens, and in Martin County land costs are generally lower but infrastructure costs are
generally higher, than adjacent incorporated municipalities. Finally, the size and scope of the
incentive criteria may be out of balance with current economic realities.
In addressing some of the program stagnation identified by Martin County, it is important
to note that Bozeman is experiencing increased commercial and residential development activity,
a sign that economic conditions are improving. A Bozeman EDIFM program could address and
minimize the payback periods thus providing a more cost effective alternative to the Florida
model. Financial security for an EDIFM eligible development project may take many forms, one
of which may be a property lien. If a property lien is identified as a possible form of financial
security for an EDIFM eligible development project, more research would be necessary to
determine if that form if security is legal in Montana and how the local lending community will
react to the suggestion that the City take the first position over primary lenders on property liens.
If an EDIFM program is established in Bozeman, the land to infrastructure values would likely
be the reverse of Martin County, where the cost of land may be more expensive but there is more
infrastructure in place and thus may reduce the overall infrastructure cost in relation to those in
the county. Lastly, in terms of program size and scope, County officials indicate the incentive
criteria thresholds could be scaled according to the size, conditions and desire of the community.
Each local government experienced varying degrees of success with their EDIFM
program. Despite the varying success rates, they agree that a funded EDIFM program is an
important addition to their overall economic development incentive portfolio. It is important to
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note that providing opportunities, even if criteria are selective, to reduce cost, delivers a strong
“business friendly” message locally, statewide and across the county.
Concerning the consistency of the incentive criteria, applying the metric of “jobs
created”, as shown in the two examples of incentive criteria above, is consistent with the State of
Montana’s economic development manufacturing package incentive criteria. (Attachment 6)
While the State’s economic development funding and financing programs are very different from
an EDIFM program, the number of jobs created by targeted development, in this instance a
manufacturing development project, job creation consistently remains an important, if not the
most important, criteria along with the specific sectors targeted. The incentive criteria is also
consistent with the over arching economic development goal for the City of Bozeman which is to
facilitate job creation and economic diversification.
Economic Development Impact Fee Mitigation Program Funding
Montana law requires the mitigated amount of the impact fee be supplemented from an
authorized revenue source. See 2.06.1700.H, BMC (requiring that mitigation payments come
“from other funds of the city that are not restricted to other uses”). Other States, including
Florida, have similar legal requirements. According to the City Attorney, these requirements are
based in the concept of proportionality and fairness. In Florida, the funds required to make up for
the mitigated amounts are derived from a variety of local sources and in the instance of the local
governments whose EDIFM programs we examine here, from both public and private sources
dedicated solely to funding economic development activities. In the case of the EDIFM
programs examined above, program funding comes from a variety of sources including state,
local and private funds.
Options for funding an EDIFM program in Bozeman are limited. A few options include:
1. Allocate general fund money through the regular yearly budget process,
increasing mills to support economic development activities (with or without a
sunset provision)3;
2. Commission support for a ballot initiative to raise revenue to fund economic
development activities;
3. Leverage general fund money to match private funding for the purpose of funding
economic development activities; and/or
4. Current tax increment finance districts (TIFs) could be requested to approve a
certain percentage of annual budgets to support economic development activities.
Any one, or combination of potential funding sources listed above could include funding
for an EDIFM program. Additionally, the Commission could consider a cap on the total amount
of cost mitigated by an EDIFM program on an annual basis.
In 1986, the Bozeman City Commission unanimously supported a Resolution of Intent to
levy one mill for “economic development purposes”. (Attachment 7) The issue was placed on
3 The FY 13 value of one mill is $83,226. Currently the City levies 166.75 mills, 29.87 mills below the statutory
limit of 196.62 mills.
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the ballot in November, 1986 and was defeated by a vote of 3402 For and 3686 Against. What is
notable is the sunset provision in the resolution and ballot language, “for each of the next five
years.” If it is determined that supporting an increase of one or more mills for economic
development is appropriate, a similar sunset provision could be considered for any proposed mill
levy increase. Additionally, for efficacy purposes, it would be important to track the
effectiveness of any new economic development program, including an EDIFM program, or
activity to justify continued funding.
Another discussion question arises: Which industry sectors should an EDIFM program
target? Unlike Florida, the State of Montana does not have the statutory equivalent of the
Qualified Target Industry Business (QTIB) defining targeted sectors. The EDP and the City’s
EDC have broadly identified the high growth sectors of manufacturing and fabrication, bio-
science and bio-technology, high-technology, photonics/optics and the outdoor industry as
desired industries. If an EDIFM program is created, these sector descriptions should be refined
and adopted by Commission in ordinance or resolution form having the effect of further
legitimizing and solidifying targeted sectors. Once codified, the City’s QTIB could form the
basis of other economic development incentive programs in addition to an EDIFM program.
Education and Information
Education is a critical component of the success of any program. There are many
common misconceptions about the purpose and intent of impact fees and how the City’s current
program operates. Regardless of whether deferral or mitigation programs are authorized, the
Commission should consider supporting increasing resources for educating the public and staff
about the City’s impact fee program. Both private sector businesses and local economic
development service providers also hold misconceptions about the City’s impact fee program.
On occasion, City staff is invited to discuss and explain the impact fee program to private
businesses and non-profit economic development service providers who regularly interact with
the development community.
Additionally, the EDC, in its December 10, 2012 memo to the City Commission,
presented discussion points on the impact fee issue. In addition to suggesting targeting specific
sectors for an impact fee deferral program and conducting a yearly comparison of the City’s
impact fee schedule with those of other communities, the EDC suggested the Commission
discuss increasing the level of education and information about the City’s impact fee program to
both the public and staff.
UNRESOLVED ISSUES: Provide direction to City staff to:
1. Create an appropriately scaled EDIFM program;
2. Refine and adopt, by resolution or ordinance, the targeted sector criteria;
3. Identify a funding source or sources to support economic development activities,
including an EDIFM program; and/or
4. Other issues identified by the Commission.
ALTERNATIVES: As directed by the Commission.
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9
FISCAL EFFECTS: The fiscal effects on the City are undetermined at this time. Should the
Commission allocate tax revenue to an EDIFM program, or other economic development
activities, funding these activities will have effects on local taxes.
Report compiled on: January 16, 2013
Attachments:
1. Adopted 2009 Economic Development Plan Goals and Strategies;
2. Economic Development Impact Fee Mitigation Program, City of Lakeland, Florida;
3. Economic Development Transportation Impact Fee Mitigation Program, Martin County,
Florida;
4. Martin County, Florida Ordinance 804, Economic Development Transportation Impact
Fee Mitigation Program establishment ordinance;
5. State of Florida’s “Qualified Target Industry Business” or QTIB criteria;
6. State of Montana’s manufacturing funding and financing program information; and
7. City of Bozeman, Resolution 2621 (1986).
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-1
VII. BOZEMAN ECONOMIC DEVELOPMENT GOALS AND STRATEGIES
The following list of economic development priorities – identified as goals and strategies – are a
culmination of the research and development of the City of Bozeman Economic Development Plan. It is
recognized that the City of Bozeman will lead the implementation of some of these goals and
strategies, and with others, the City will assume a supporting role, while private entities lead the
implementation. An Implementation Matrix, which identifies specific strategies for the City of
Bozeman to initiate and lead with a corresponding timeline, is included in the next section (Section
VIII). The goals and strategies are all important and there is no priority ranking attached to the order
of presentation.
These goals and the more specific strategies provide a framework in which the City, the business
community, and key stakeholder groups can plan, prioritize, and implement economic development
activities for the benefit of all citizens of Bozeman. Not all of these proposed strategies will have the
same impact, but through a focused and collaborative effort, Bozeman will be better positioned to
be more competitive.
The specific recommendations and priorities of the City of Bozeman Economic Development Plan fall
under the following 6 general economic development goals:
1. Support the expansion and retention of existing businesses and economic clusters that will
continue to strengthen and diversify 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. Create a more collaborative and effective working partnership between the business
community and the City of Bozeman and effectively manage the City of Bozeman’s
regulatory environment to accomplish goals without hindering business expansion and
economic growth.
6. Maintain the high quality of life that is considered an important asset to the business
community.
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-2
1) Support the expansion and retention of existing businesses and economic clusters that
will continue to strengthen and diversify the economy and create higher paying jobs in
Bozeman.
a. Pursue, support, and provide assistance for business start-up, expansion, and business
recruitment efforts that strengthen the following economic clusters:
• Arts & Culture (artisans, fine arts, cultural heritage, entertainment)
• Construction and Development (architecture, construction, engineering)
• Green (clean and renewable energy, water conservation, waste reduction technologies,
outdoor/recreational activities)
• Healthcare and Medical
• Knowledge Based Enterprises (research and development, think tanks, financial services,
consulting, public policy, education)
• Manufacturing (machinery, printing, wood product, textile, food/beverage,
computer/electronic)
• Media (film, publishing, journalism, Internet)
• Technology (biotech/bioscience, information technology, laser/optics)
b. Support and promote entrepreneurial efforts linked to emerging markets, high
technology, and research and development.
c. Support the Business Expansion and Retention (BEAR) program that is facilitated by
the Bozeman Area Chamber of Commerce and Bozeman Job Service.
d. Leverage MSU-Bozeman research, faculty, and students to expand upon current
opportunities and identify additional opportunities for the long term economic diversity
and vitality of Bozeman.
e. Encourage the participation of the business community in the development of city-wide
programs related to transportation, growth management, development impact fees,
environmental protection, and other related issues.
f. Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area
Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business
Network, MSU-Bozeman, and others to promote Bozeman.
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-3
2) Maintain and upgrade infrastructure to support the current and future needs of business.
a. Maintain infrastructure (city service or private service) at safe and efficient levels to
satisfy the current and future needs for economic expansion. The condition of streets
and sidewalks, water and sewer, gas and electric distribution, communications, and solid
waste disposal all affect how efficiently businesses conduct their operations. It also
contributes to business retention and recruitment efforts.
b. Support and encourage the efforts to develop larger convention or conference center
facilities to attract larger statewide or regional meeting and convention business to
Bozeman.
c. Support or lead efforts to develop an industrial park to meet the needs of existing and
future manufacturing or industrial businesses.
d. Support the efforts of the Gallatin Airport Authority and others to maintain and expand
air service at Gallatin Field Airport in recognition of the importance of Gallatin Field
Airport to Bozeman’s economy.
e. Support the further development of technology park areas to meet the needs of existing
and future technology based companies.
3) Support education and workforce development initiatives to provide Bozeman with the
qualified workers to meet the needs of business.
a. Support the efforts of the Montana University System to expand 2-year degree and job
training and certification programs in Bozeman.
b. Support the enrollment growth of MSU-Bozeman through the statewide legislative level
and at the local level. All avenues should be explored that promote MSU and Bozeman
in a cooperative manner.
c. Support the creation of market-rate and affordable rental and owner-occupied housing
that meets the needs of the local workforce.
d. Encourage MSU College of Technology in Bozeman, Bozeman Job Service and the
Bozeman School District to develop and maintain continuing education and certification
programs for high-demand jobs.
e. Support a periodic comprehensive survey among local employers and target sectors to
identify their labor needs and minimum skill requirements. Utilize findings of the survey
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-4
to coordinate with MSU, MSU College of Technology, Bozeman School District, and
others to refine existing and develop new programs directed at addressing the identified
skill needs.
f. Work with existing or new businesses to access Montana Department of Commerce
Workforce Training Grants to support employee training costs.
g. Continue to support the Bozeman Area Chamber of Commerce’s Leadership Bozeman
Program to identify, train, and motivate prospective and current business and
community leaders.
h. Support the “Come Home Montana” promotion (and consider developing a “Come
Home Bozeman” promotion) to Montana alumni residing out of state, highlighting local
employers and career opportunities, local quality of life, and other factors that may lead
to a decision to return to Bozeman.
4) Leverage local, state, and federal economic development resources to enhance economic
growth in Bozeman.
a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal
and economic redevelopment opportunities where appropriate.
b. Support the continued growth and success of the Bozeman Revolving Loan Fund (RLF)
and the establishment of new revolving loan funds to provide additional financing
options for Bozeman businesses.
c. Utilize incentives or inducements, such as property tax abatement or development fee
abatement, to encourage business investment and development in desired areas.
d. Encourage commercial real estate developers to apply for New Market Tax Credits on
projects that meet the established criteria.
e. Utilize the Big Sky Economic Development Trust Fund (job training grants, planning
grants, matching funds) and Workforce Training Grants from the Montana Department
of Commerce to support business expansion and relocation as well as current economic
development planning projects.
f. Seek new Community Development Block Grant (CDBG) funds to implement projects
and programs.
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-5
g. Utilize Brownfield funding to facilitate redevelopment in appropriate sites where funding
is available.
h. Identify and support redevelopment opportunities and adaptive reuse of large
commercial centers.
5) Create a more collaborative and effective working partnership between the business
community and the City of Bozeman and effectively manage the City of Bozeman’s
regulatory environment to accomplish goals without hindering business expansion and
economic growth.
a. Establish an advisory committee to perform a time-limited review of the City of
Bozeman’s development process. The committee would be charged with evaluating
development issues and making recommendations for policy or procedure changes to
the City Commission. The committee would be made up of business leaders, city
planning staff, developers, planning board members, and others. The following 4
strategies would best be evaluated and implemented by this development process review
committee:
(1) Review the processes for permitting, licensing, and other regulatory requirements to
improve the climate for doing business in Bozeman.
(2) Provide an efficient and well-defined land development process with development
regulations being as flexible as possible and efficiently administered.
(3) Support continuing technological advances in systems and equipment to make the
development permitting process more efficient. Integrate technology into business
processes to increase operational efficiencies, improve service delivery and control
costs.
(4) Empower the Planning Department staff and the City Commission to build more
efficiency in the decision making process.
b. Designate a qualified city employee with economic development responsibilities and a
role as the community business advocate.
c. Establish an Economic Development Council to advise the City Commission on
economic development issues and to review the implementation of specific economic
development initiatives. This council should be made up of business leaders, city staff,
economic development leaders, and others.
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-6
d. Engage in an active program for the City Commission and City staff to visit Bozeman
businesses on a routine basis, with the intent of improving the relationship between the
City and the business community, and to proactively identify issues and work to resolve
them collaboratively. Coordinate with the Bozeman Area Chamber of Commerce,
Prospera Business Network, and others to facilitate this program.
e. Ensure working economic development relationships with Gallatin County and other
jurisdictions within the region to better coordinate economic development activities.
f. Coordinate with the Bozeman Area Chamber of Commerce, Prospera Business
Network, the Northern Rocky Mountain Resource and Conservation District and
Economic Development District (RC&D-EDD), the Downtown Bozeman Partnership,
the Montana Department of Commerce, and others to monitor local, regional and
national economic trends and market Bozeman as a desirable place to do business.
g. Support efforts of the Montana Manufacturing Extension Center (MMEC), TechRanch,
the Small Business Development Center (SBDC), and other organizations to encourage
and foster entrepreneurship and small business development in Bozeman.
6) Maintain the high quality of life that is considered an important asset to the business
community.
a. Recognize and support the idea that Bozeman’s “quality of place” is a significant asset
for the business community.
b. Support the continued economic vitality of the downtown Bozeman business district,
which is broadly recognized as one of Bozeman’s strongest assets. Continue to support
and promote downtown Bozeman as the economic and cultural center of the region, and
encourage development and re-development through the use of incentives for future
investment and development. [Refer to the 2009 Downtown Improvement Plan for
additional information.]
c. Support the economic vitality of Bozeman’s entryway corridors to reinforce Bozeman as
a regional shopping destination.
d. Require a cost benefit analysis or economic impact analysis for all projects receiving
financial assistance from the City (including incentives) to measure the return on
investment.
e. Promote an energy efficient and sustainable community through the City’s policies and
practices. [Refer to Bozeman Community Plan for additional information]
190145
The Economic Development Impact Fee Mitigation (EDIFM) is a reduction of impact fees to encourage quality
job growth in targeted high value added businesses. The EDIFM was designed to encourage Build to Suit and
Speculative Building Development.
There are three ways to take advantage of the mitigation: 1.) High Wage Job Creation – build to suit projects
adding high wage jobs paying 115% of the average annual wage or 2.) Industrial Job Creation – build to suit
projects adding more than 100 new jobs or 3.) Inventory Development – creating an available industrial
building inventory for prospective companies.
HIGH WAGE JOB CREATION
Pre-approved applicants who build a new facility and create high wage jobs in the City of Lakeland will receive a
50 to 90% reduction/waiver of non utility impact fees. For businesses creating 10-50 jobs, paying 115% of the
average annual wage, a 50% impact fee mitigation may be received. Businesses creating 51- 100 jobs, paying
115% of the average annual wage, a 70% impact fee mitigation may be received. Businesses creating 101+ jobs,
paying 115% of the average annual wage, a 90% or full mitigation of impact fees may be received.
Number of Jobs Created Average Wage Total Mitigation Amount
10 - 50 115% 50%
51 - 100 115% 70%
101 + 115% 90%
50% of the approved mitigation amount will be deducted from the impact fees due at the time the building
permit is issued. The remaining 50% of the approved mitigation amount will be refunded once the total number
of jobs committed for the project, have been added. It is up to the recipient of the mitigation award to provide
proof to the City of Lakeland, that the jobs have been created to receive the remainder of the mitigation.
Eligibility:
In order to participate, the company must apply to the Community Development Department of the City of
Lakeland with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application before making a decision to locate or expand and demonstrate that the impact
fee reduction/waiver will make a difference in the company’s decision to locate or expand. Once the
building permit has been issued, the company is no longer eligible.
• Create at least 10 net, new full time jobs.
• Pay an average annual wage that is at least 115% of Polk County’s average annual wage. (Average
annual wage includes overtime and bonus, but not benefits). 115% of the average annual wage is
$40,259 or $19.36 per hour. The average wage changes annually, January 1st.
• The Qualified Target Business/approved business or the owner of real property, but both can not apply
for the impact fee mitigation.
191146
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
INDUSTRIAL JOB CREATION:
Pre-approved applicants who build a new facility and create high volume industrial jobs in the City of Lakeland
will receive a 50 to 90% reduction/waiver of non utility impact fees. For businesses creating 100-199 jobs a 50%
impact fee mitigation may be received. Businesses creating 200-299 jobs, a 70% impact fee mitigation may be
received. Businesses creating 300+ jobs a 90% or full mitigation of impact fees may be received.
Number of Jobs Created Total Mitigation Amount
100 - 199 50%
200 - 299 70%
300 + 90%
50% of the approved mitigation amount will be deducted from the impact fees due at the time the building
permit is issued. The remaining 50% of the approved mitigation amount will be refunded once the total number
of jobs committed for the project, have been added. It is up to the recipient of the mitigation award to provide
proof to the City of Lakeland, that the jobs have been created to receive the remainder of the mitigation.
Eligibility:
In order to participate, the company must apply to the Community Development Department of the City of
Lakeland with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application before making a decision to locate or expand and demonstrate that the impact
fee reduction/waiver will make a difference in the company’s decision to locate or expand. Once the
building permit has been issued, the company is no longer eligible.
• Business must be a Qualified Target Industry
• Create at least 100 net, new full time jobs.
• The Qualified Target Business/approved business or the owner of real property, but both can not apply
for the impact fee mitigation.
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
192147
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
INVENTORY DEVELOPMENT
Preapproved applicants who build new building inventory, wholesale/warehouse and/or
manufacturing/industrial, space that is 70,000 square feet or greater are eligible for a 50% reduction of non
utility impact fees when the building permit is pulled.
New Building Inventory Space Total Mitigation Amount
70,000 square feet and greater 50%
The 50% mitigation amount will be deducted from the impact fees due at the time the building permit is issued.
Eligibility:
• In order to participate, the company must apply to the Community Development of the City of Lakeland
with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application prior to applying for a building permit. Once the building permit has been
issued, the company is no longer eligible.
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
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ECONOMIC DEVELOPMENT IMPACT FEE MITIGATION
PROGRAM INSTRUCTIONS
The Impact Fee Mitigation Program was established by County Ordinance 804. The Ordinance
created a new Section 71.45 that allows impact fee mitigation for businesses meeting the
requirements of the program, as defined in Section 71.45 and detailed below. This program is
intended to encourage economic opportunities and permanent business expansion. It is not an
entitlement program. The program is established in order to provide the Board of County
Commissioners the opportunity, in its sole discretion, to grant impact fee mitigation to Qualified
Target Industry Businesses. Applicants must apply for the Program prior to the issuance of the
Building Permit for the subject property or project. An agreement for the impact fee mitigation
must be approved by the County Commission prior to the granting of the impact fee relief. The
Instructions lay out the requirements of the Program and the application for qualified businesses
to seek the mitigation.
Definitions
"Qualified Target Industry Business" or “QTIB” shall mean a new or expanding business in the
County that meets the requirements of Section 288.106, Florida Statutes, or its statutory
successor in function, as a Qualified Target Industry Business or as identified by EFI, OTTED,
and/or the BDBMC.
"Applicant" shall include any person, company, or research institute that qualifies as a Qualified
Target Industry Business and which is seeking to expand in or locate to Martin County.
“Property Owner” shall mean any person or entity owning the land upon which the Qualified
Target Industry Business will be expanding on or locating to.
Minimum Criteria.
To be eligible for an Economic Development Impact Fee Mitigation, an Applicant must meet the
following minimum criteria in accordance with Section 71.45.D.1, listed below
Qualify as a Qualified Target Industry Business and create a minimum of ten (10) new jobs with an
average private sector wage (excluding benefits) of at least 115% of the average private sector
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wage, as identified annually by Enterprise Florida, Inc., for either Martin County or the
Metropolitan Statistical Area which includes Martin County and provide a benefit package that
includes health insurance and commit to remain in the County at least until such time as obligations
of the Economic Development Fund, related to the business, are replenished in accordance with
subsection 71.45.L.; or must meet the following minimum criteria in accordance with Section
71.45.D.2, listed below:
Qualify as a Qualified Target Industry Business and create a minimum of ten (10)
new jobs with an average private sector wage (excluding benefits) of 100% of the
average private sector wage, as identified annually by Enterprise Florida, Inc., for
either Martin County or the Metropolitan Statistical Area which includes Martin
County and make a taxable capital investment in the County of $10 million or
greater in construction, renovations, equipment purchases, or other major capital
investment items and commit to remain in the County at least until such time as
obligations of the Economic Development Fund, related to the business, are
replenished in accordance with subsection 71.45.L.; and
Enter into an agreement with the County and the Property Owner (if the Applicant
business is not the Property Owner) wherein the Applicant agrees to locate or
expand its business operations within Martin County and will remain in the County at
least until such time as obligations of the Economic Development Fund, related to the
business, are replenished in accordance with subsection 71.45.L. The Agreement will
also require the Applicant to provide the County with the Applicant's Florida
Department of Revenue Quarterly Report (UCT-6) form or successor document, and
all other documentation to demonstrate that the job creation and salary level
commitments were achieved. Provisions for penalties, repayment or suspension of
payments for non-performance related to this program shall be clearly established
in the agreement.
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Economic Development Impact Fee Mitigation Amounts
If the Applicant meets the requirements provided above for mitigation, the Applicant shall be
eligible for the following:
If the Applicant qualifies, it shall be eligible to receive an Economic Development Impact Fee
Mitigation in the following amounts; provided, however, that the Board may proportionally
increase these mitigation amounts in the event the Applicant exceeds these requirements:
Number of Jobs Created % of Average Private Sector Wage Mitigation Amount
Minimum of 10 115% plus benefits $3,500 per job created
Minimum of 10 150% plus benefits $5,000 per job created
Minimum of 10 200% plus benefits $7 500 per job created
If the Applicant qualifies under subsection 71.45.D.2. above, it shall be eligible to receive an
Economic Development Impact Fee Mitigation in the following amounts; provided, however that
the Board may proportionally increase these mitigation amounts in the event the Applicant
exceeds these requirements:
Number of Jobs Created Total Capital Investment Mitigation Amount
Minimum of 10 $10,000,000 to $14,999,999.99 40% of total County
Impact Fees
Minimum of 10 $15,000,000 to $19,999,999.99 50% of total County Impact
Fees
Minimum of 10 $20,000,000 or more 60% of total County Impact
Fees
Restriction to One Criteria Category
Each Applicant shall only be eligible for mitigation under either subsection 71.45.D.1. or
subsection 71.45.D.2., but not both.
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Payment Limits.
In no case shall mitigation benefits exceed the amount of the actual impact fees due to the
County as a result of expansion or location of the QTIB project as specified in the application.
County Administrator and Board of County Commissioners Review
If the County Administrator finds that the Applicant meets the requirements provided herein for
mitigation, the County Administrator shall agenda an Impact Fee Mitigation Agreement before
the Board of County Commissioners which shall contain the Martin County Impact Fee Mitigation
Application for Qualified Target Industries and any other documents as requested by the County
Administrator. Because this Program is not an entitlement program, the Board may accept or
reject the request for mitigation without cause.
Deferment of Impact Fee Payment.
In addition, the Board of County Commissioners may defer payment by the Economic
Development Fund of impact fees mitigated by the Impact Fee Mitigation Program for a period
not to exceed ten (10) years.
Application
Any Applicant seeking an Economic Development Impact Fee Mitigation shall file an
application for mitigation with the County Administrator prior to the issuance of the Building
Permit for the subject property or project. Any request for Economic Development Impact Fee
Mitigation must be submitted to the County by the Applicant prior to the Applicant deciding whether
or not they will expand or locate in Martin County.
Certification of the Business Development Board
The Business Development Board must verify that the application qualifies as a Targeted Industry. The
application contains a form for this purpose.
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Martin County Board of County Commissioners
Qualified Target Industry Incentive Application:
IMPACT FEE MITIGATION PROGRAM
___________________________________________
(Name of Business or Project Codename)
Must be a business unit or reporting unit of a business unit that is registered with or will be registered with the State of Florida
for unemployment compensation purposes.
a) Name of Business (or Project Codename)* ___________________________________________
b) Type of Business Corresponding to the most recently adopted State of Florida Qualified Target
Industry List: ______________________________________________________
c) Contact Person: ________________________________________________________
Phone number/e-mail: ___________________________________________________
d) Business FEIN: ________________________
2. Project information
a) Is the project (please circle): Expansion Relocation/location
b) Is the project (please circle): New Construction Change of Use
c) Location of Property: ___________________________________________________________
_____________________________________________________________________________
d) Name and Address of Property owner Name, if different than Business Owner: _____________
_____________________________________________________________________________
e) What is the anticipated size of new construction: ________________ sq. ft.
f) Date by which all construction is anticipated to be completed: _______________________
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g) What is the anticipated value of improvements to be made on-site: $_________________
h) What is the anticipated capital investment in equipment for the site $_________________
3. Project employment:
a) Total number of net new jobs created by the project at the business unit that is
to be located or expanded in Martin County*: __________________________________
b) Date by which new jobs will be created: ______________________________________
c) For purposes of certification, agreement, and claim review, indicate the wage and
corresponding threshold (percentage) to which you commit:
1. $ _______________ 100% of the _______(year) average private sector wage in Martin County*
2. $ _______________ 115% of the _______(year) average private sector wage in Martin County
3. $ _______________ 150% of the _______(year) average private sector wage in Martin County
4. $ _______________ 200% of the _______(year) average private sector wage in Martin County
*Jobs at or below 115 of the average private sector wage in Martin County are only eligible under the
Capital investment strategy of the Economic Development Impact Fee Mitigation program.
_________________________________________________ _______________________
Signature of individual completing this portion Date
_____________________________________
Please print or type name of individual completing this portion
_________________________________________________ _______________________
Signature of Authorized Officer Date
_________________________________________________
Please print or type name of Authorized Officer
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Required Attachments
Legal Description of property
Overview of the project including description of anticipated construction and the jobs to be
created in Martin County
Attach proof that the identified construction or property modification will be for a Qualified Target
Industry Business and/or will directly benefit a Qualified Target Industry Business
A notarized affidavit and all necessary supporting evidence affirming that the requirements of
subsection 71.45.D.1. or subsection 71.45.D.2., General Ordinances, Martin County Code will be
met within one (1) year of the date the Certificate of Occupancy is issued which term may be
extended by the Martin County Administrator upon good cause shown.
Authorization to Act on Behalf of the Applicant.
Authorization to Act on Behalf of Property Owner
200155
Martin County Board of County Commissioners
Qualified Target Industry Incentive Application
Business Development Board of Martin County
Verification of Program Qualification For:
______________________________
(Name of Business or Project Codename)
VERIFICATION CHECKLIST:
______ Name of Business or Project Codename
______ Business Address
______ Business FEIN
______ Business Type Corresponds with __________________ as included on the State of (industry type)
Florida Qualified Target Industry List in effect as of ________________. (Date)
______ Authorized Officer’s signature and name.
______ Contact/Representative has appropriate authority from applicant business
______ Address of new location or site at which expansion will take place
______ Owner of Property
______ Business Owner has appropriate authority from property owner
______ Business Owner has verified number of jobs to be created in Martin County
______ Business Owner has verified average salary level for jobs created
______ Average Salary Level exceeds 115% of average private sector wages for Martin County.
_________________________________________________
Print Name of Authorized Officer
_________________________________________________ _______________________
Signature of Authorized Officer Date
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210165
Businesses able to locate in other states and serving multi-state and/or international markets are targeted. Call Centers and Shared Service
Centers may qualify for incentives if certain economic criteria are met. Retail activities, utilities, mining and other extraction or processing
businesses, and activities regulated by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation are
statutorily excluded from consideration. All projects are evaluated on an individual basis and therefore operating in a target industry does not
automatically indicate eligibility.
For additional information about Florida’s business advantages,
please visit Enterprise Florida’s website at www.eflorida.com
or call 407.956.5600.Rev. 2/11
HOMELAND SECURITY / DEFENSE
AVIATION:
Aircraft and Aircraft
Parts Manufacturing
Maintenance Repair
and Overhaul of
Aircrafts
Navigation
Instrument Manufacturing
Flight Simulator
Training
AEROSPACE:
Space Vehicles and
Guided Missile Manufacturing
Satellite
Communications
Space Technologies
Launch Operations
AVIATION / AEROSPACE
Modeling, Simulation
and Training
Optics and Photonics
Digital Media
Software
Electronics
Telecommunications
INFOTECH
Biotechnology
Pharmaceuticals
MEDICAL DEVICES:
Laboratory and
Surgical Instruments
Diagnostic Testing
LIFE SCIENCES
EQUIPMENT:
Optical Instruments
Navigation Aids
Ammunition
Electronics
TRANSPORTATION:
Military Vehicles
Shipbuilding and
Repair
TECHNOLOGY:
Computer Systems
Design
Simulation and
Training
Biomass &
Biofuels Processing
Energy Equipment
Manufacturing
Energy Storage
Technologies
Photovoltaic
Environmental
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218173
RESOLUTION NO 2621
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOZEMAN MONTANA INDICATING THE CITY S
INTENT TO LEVY ONE MILL FOR ECONOMIC DEVELOPMENT
PURPOSES FOR EACH OF THE NEXT FIVE YEARS UPON
APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS
OF THE MUNICIPALITY AT THE NEXT GENERAL ELECTION
WHEREAS on July 28 1986 the Gallatin Development
Corporation requested that a proposal for a one mill levy
for each of the next five years to be used for economic
development purposes be placed on the ballot for the
November 1986 election and
WHEREAS Section 90 5 112 M C A authorizes a
governing body to levy a tax of one mill for economic
development for a period not to exceed five years upon an
affirmative vote of a majority of the qualified electors
and
WHEREAS funds derived from this levy may be used for
purchasing land for industrial parks constructing buildings
to house manufacturing and processing operations conducting
preliminary feasibility studies promoting economic
development opportunities in a particular area and other
activities generally associated with economic development
and
WHEREAS funds may not be used to directly assist an
industry s operations by loan or grant or to pay the salary
or salary supplements of government employees and
WHEREAS the governing body of the City may use the
funds derived from this levy to contract with local
development companies and other associations or
organizations capable of implementing the economic function
NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOZEMAN MONTANA
Section 1
That the one mill levy as stated herein shall be placed
before the qualified electors of the City of Bozeman at the
general election to be held on Tuesday November 4 1986
219174
I
and the wording of the proposal shall be substantially as
follows
FOR Authorizing the City of Bozeman to make a
levy of one 1 mill per year for each of
the next five 5 fiscal years for the
purpose of raising money to fund local
economic development activities
AGAINST Authorizing the City of Bozeman to make a
levy of one 1 mill per year for each of
the next five 5 fiscal years for the
purpose of raising money to fund local
economic development activities
Section 2
That any revenue derived from the special one mill levy
election as provided herein will be used for the purposes
authorized by the state law
PASSED AND ADOPTED by the City Commission of the City
of Bozeman Montana at a regular session held thereof on
the 11th day of August 1986
tA Jj yr YLvLZ
May r
ATTEST
Jt J 7j
I itiJ c6 iLit yC1
Clerk of the City Commission
2
220175
1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Saunders
Steve Worthington
SUBJECT: Commission Resolution 4433 implementing the impact fee payment
deferral provisions of Ordinance 1853 as directed by the City Commission.
MEETING DATE: April 1, 2013.
AGENDA ITEM TYPE: Action.
RECOMMENDATION: Adopt Resolution 4433 with specific options for edits as selected by
the City Commission.
SUGGESTED MOTION: Having received and considered the draft resolution and having
heard and considered public comment I move to approve resolution 4433 {note any specific
additions or deletions to the draft text as needed}.
BACKGROUND: The Bozeman Municipal Code contains Chapter 2, Article 6, Division 9, Impact Fees which is the local enabling legislation for the City’s impact fee program. This
division of the Municipal Code sets the general parameters for the impact fee program.
Implementation of the program is then executed by adopted Commission resolutions, an
administrative procedures manual, general practices and standards of the City, and daily
administrative actions by the staff. From time to time, changes to the code are identified which are expected to make it more functional and effective. Most recently this occurred with
Ordinance 1853 which took effect on March 30, 2013. Among other changes made, Ordinance
1853 authorized and set general parameters for the opportunity to defer payment of impact fees.
One of the required parameters was to have an implementing resolution to establish the details
and procedures of the deferral program. The Commission gave direction to staff to prepare a deferral program only for the transportation impact fees. Resolution 4433 is proposed in response
to this direction.
Resolution 4433 addresses the following:
A) Defining which fee is eligible, i.e. transportation.
B) Sets criteria for excluding certain higher hazard for non-payment projects from program participation.
C) A description and generalized timeline for participation.
120176
2
D) Requires an agreement and creation of a lien against the property as a required term of
participation in the deferral program. This is a mechanism to ensure eventual payment.
E) Sets terms of the payment including penalties for failure to pay when due.
F) Sets a fee for participation and to assign costs for recording of documents.
G) States whether interest will be required on the deferred funds or not. Staff suggests the third option as presented in the resolution where interest is only charged in a condition of
default on the deferral agreement.
H) Describes a variety of administrative provisions to implement the program.
Commission action is only required on the text of Resolution 4433. The other attached documents are for reference only.
UNRESOLVED ISSUES: The primary focus of the consideration of Resolution 4433 is to
implement the transportation impact fee deferral option. Unresolved issues are:
1) Under item 3 of Section 1 – shall these five items be criteria by which a project is barred
from participating in the impact fee deferral program.
2) Under item 9 of Section 1 – should there be a fixed additional cost if payment is not made in a timely way.
3) Under item 10 of Section 1 – is the application fee amount appropriate and shall the
applicant pay for required recording fees.
4) Under item 11 of Section 1 – Payment of interest. Collecting interest reduces the effect of the deferred payment on the city but adds additional complexity to the administration of the program for collection and obtains modest financial return. Payment of interest could
be addressed in one of three ways as described in the resolution. The Commission will
need to select the preferred option and delete the other two in the motion to adopt.
ALTERNATIVES: 1) Decide not to adopt Resolution 4433; 2) Delay adoption to a future time; or
3) Adopt Resolution 4433 with changes and selected elements as directed by the City
Commission.
FISCAL EFFECTS: The fiscal effects of this resolution are difficult to quantify with certainty. Assuming a smooth process it is estimated that there will be a commitment of an additional 1.5-2
hours of staff time to process a deferral from initial request to completion compared to a project
which did not seek a deferral. An offsetting fee has been included with the draft resolution. The
City will not obtain the interest typically earned on the funds for the period of the deferral but this amount will vary by project and cannot be quantified at this time.
Attachments: Resolution 4433 Sample agreement Sample forms
121177
Resolution 4433 Page 1 of 6
COMMISSION RESOLUTION NO. 4433
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, IMPLEMENTING PORTIONS OF ORDINANCE 1853 BY ALLOWING FOR DEFERRAL OF PAYMENT OF TRANSPORTATION IMPACT FEES UNDER DEFINED CONDITIONS AND TERMS
WHEREAS, On February 25, 2013 the Bozeman City Commission adopted Ordinance
1853 amending Chapter 2, Article 6, Division 9 BMC to allow for a deferral of payments of fees;
and
WHEREAS, Ordinance 1853 established certain requirements including a required
resolution, data to be provided and procedures in order for any deferral of payments of fees to be
implemented; and
WHEREAS, the City Commission directed that an implementing resolution be
prepared to allow the deferral of transportation impact fees.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the following impact fee deferral program is hereby adopted:
CITY OF BOZEMAN IMPACT FEE DEFERRAL PROGRAM
1. INTRODUCTION
Impact fees are typically paid at the time a building permit or connection to water and sewer systems permit is issued. The development impact fee deferral program instead allows for impact
fees to be paid after issuance of a building permit but prior to the time a certificate of occupancy
is issued for projects which require such a certificate.
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Resolution 4433 Page 2 of 6
2.
The transportation impact fees are the only fees that can be deferred until a Final Certificate of
Occupancy is issued by the City of Bozeman.
DEVELOPMENT IMPACT FEES
3.
New Residential and Non-Residential Constructions projects may be eligible to participate in the deferral program. Under this program, all deferred fees are due prior to the issuance of a
Certificate of Occupancy. Only properties located within the City of Bozeman are eligible for
this program. Obligor means the person or entity responsible for the payment of impact fees. A
deferral will not be allowed when the Obligor has had any of the following as they are considered to be at a higher risk of non-payment of the deferred fees:
WHICH PROJECTS QUALIFY FOR DEFERRAL
1. The Obligor has had a foreclosure on any properties in the past four years.
2. The Obligor has had any bankruptcy filing in the past four years.
3. The Obligor has outstanding and unsatisfied Civil Judgment(s).
4. The Obligor has unpaid taxes and fees or other unpaid amounts due to the City of Bozeman for the project which is the subject of the deferral request; or other properties within
the City of Bozeman.
5. If no Certificate of Occupancy is required for the project.
No deferral may be granted until all required zoning or subdivision review steps have been
completed. No deferral may be granted until any required documents have been completed and if necessary recorded with the Gallatin County Clerk and recorder and evidence of recording
provided to the City.
4.
Process
FEE DEFERRAL PROCESS
Anticipated Time Frame
Application for deferral submitted to the Community Development
Department in conjunction with the initial Building Permit application
Application is reviewed by staff. The department will notify the applicant of approval or denial. 5-10 working days
Agreement and Notice of intent to lien is prepared by the City (please contact staff at least 5-7 working days prior to the anticipated date that the building permit will be issued for the project)
5-7 working days
Applicant signs Agreement and records the Agreement at the Gallatin County Clerk and Recorder and provides evidence of the recording at least two
working days before issuance of the building permit.
2-3 working days
Building Permit issued, less deferred fees
Project is built/completed varies
Applicant notifies Building Division of request for final inspection and
Certificate of Occupancy ((please contact Community Development staff at
10 working
days
124179
Resolution 4433 Page 3 of 6
least 10 working days prior to anticipated date that the Certificate of
Occupancy is desired)
Payment of deferred fees – Prior to issuance of Certificate of Occupancy and
preparation of Release (please contact Community Development staff 2-3 working days prior to anticipated date that the Certificate of Occupancy will be issued for the project)
2-3 working
days
Any agreement to defer fees shall be between the City and the record owner of the property and shall run with the land.
5.
The fee amount approved for a fee deferral is based on the actual fees which are determined as
part of the Building Permit review process as described in Chapter 2, Article 6, Division 9, BMC.
DEVELOPMENT FEE CALCULATION
6. AFFECTED PROPERTY
The affected property shall be clearly described by either a metes and bounds description or by
reference to a recorded certificate of survey or plat. The affected property consisting of one or
more parcels for which development impact fees have been deferred and which collectively is encumbered by the outstanding fee balance shall be subject to the Notice of Intent to Lien until all deferred fees are paid to the City.
7. LIEN CREATED
The property owner shall execute an Agreement and Notice of Intent to Lien. In the event of
default the City shall execute a lien against the property. Said lien is intended to guarantee the payment in full, plus accrued interest, processing fees, and the cost of collection, if applicable, of the deferred development impact fees.
8. PAYMENT DEMAND
The property owner shall agree to provide payment of the deferred development impact fees
prior to issuance of a certificate of occupancy, whether temporary or permanent; and prior to any physical occupancy of the building. The property owner further agrees that failure to provide such payment within said time frame shall constitute a material breach of this resolution.
9. TERM OF PAYMENT
The outstanding fee balance indicated on any recorded Agreement and Notice of Intent to Lien
shall be payable to the City prior to the issuance of a certificate of occupancy. Should the deferred fees not be paid when they become due and payable or should the property owner be in breach or any provisions of this agreement: (a) all remaining and unpaid impact fees shall be
accelerated and become immediately due and payable; and (b) an additional One Thousand and
no/100 Dollars ($1,000.00) shall be added to the unpaid balance to cover the initial
administrative costs incurred in processing the fee deferral application; and (c) any additional costs required to collect unpaid deferred fees.
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Resolution 4433 Page 4 of 6
10. FEES
The applicant shall pay an initial application fee of $50 dollars at the time the request for deferral
of impact fees is submitted to the City. The applicant is responsible for payment of all fees
associated with recording documents with the Gallatin County Clerk and Recorder.
11. INTEREST
Interest on the deferred impact fees shall accrue from the date the building is occupied until the
deferred fees and all accrued interest is paid. The rate of interest agreed to between the parties
hereto shall not be less than the amount of the annual interest the City earns on its investment of
pooled funds. The parties agree that the rate of interest applicable to this Agreement shall be simple interest at the rate of _____% per annum.
OR
No interest is charged on the deferred fee amount.
OR
Interest shall be charged at the rate of the annual interest the City earns on its investment of pooled funds for any deferred fees not paid when due and payable in accordance with the
deferral Agreement. Interest will be retroactive to the beginning of the date of payment deferral.
12. SUBORDINATION
The lien created hereunder shall not be subordinated.
13. RELEASE OF LIEN
Upon full payment of all deferred impact fees and associated costs to the City and complete
satisfaction of all terms and conditions by the property owner of an Agreement prepared to
execute this Resolution, the City shall promptly release the lien created hereunder by executing a
lien release clearly releasing the City’s interests in the property.
14. COLLECTION
The City may pursue collection through all available legal and administrative means including,
but shall not be limited to, judicial or non-judicial foreclosure of the recorded lien against the
Affected Property and/or civil judgment against the property owner for breach of this Agreement
and/or security provided hereunder. As part of the obligation secured hereby and in addition to
the amount of the deferred fees stated above, there shall be included cost and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the City in successfully
enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
15. ASSIGNMENT
This interests in the deferral shall not be assigned or otherwise transferred to a person or entity
not a party to the deferral without the express prior written consent of the City. Any person or entity seeking assignment or transfer of the deferral shall meet all the terms and conditions under
this Resolution of the City Commission adopting standards for the fee deferrals. Assignment
shall not be effective until proposed assignee/transferee executes an assignment and assumption
agreement, in a form acceptable to the City Attorney, assuming all duties and obligations of the
property owner under this resolution. Any assignment or transfer not in strict compliance with this provision shall: (a) be null and void; (b) constitute a material breach of this resolution; and
126181
Resolution 4433 Page 5 of 6
(c) cause all impact fees deferred under this Agreement to become due and immediately payable
at the time of the attempted assignment or transfer.
16. INTREGRATION
An agreement created under the terms of this resolution constitutes the complete, entire, exclusive, and final agreement and understanding between the parties as to the subject matter herein, superseding all negotiations, prior discussions, and preliminary agreements or
contemporaneous understandings, written or oral.
17. MODIFICATIONAND AMENDMENT
Any Notice or Release shall not be amended, modified, or otherwise changed unless in writing and signed.
18. SUCCESSORS AND ASSIGNS
This resolution and any action taken pursuant to it shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns.
19. AUTHORITY TO EXECUTE
A property owner or other person making application or signing a form prepare pursuant to this
resolution warrants and represents that they have the authority to execute an Agreement on
behalf of their entity and have the authority to bind their party to the performance of its
obligations hereunder. False representation shall constitute perjury or false swearing.
20. APPEALS
Appeals of actions taken under this Resolution shall follow the procedures of Section
2.06.1700.I, BMC.
21. ADMINISTRATION
This program shall be administered by the Community Development Department who shall be
aided by other City departments as may be necessary.
SEVERABILITY
Section 2
If any portion of this Resolution is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Resolution shall remain in full force and
effect and shall in no way be affected, impaired, or invalidated.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the _____ day of ________, 2013.
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Resolution 4433 Page 6 of 6
___________________________________
SEAN A BECKER
Mayor
ATTEST:
________________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
128183
Return to:
Community Development Department
20 E. Olive Street Bozeman MT 59715
AGREEMENT FOR THE PAYMENT OF DEFERRED IMPACT FEES AND NOTICE OF INTENT TO LIEN
THIS AGREEMENT is made and entered into this _______ day of ____________,
20__, by and between ____________________________________________________
hereinafter called the “Developer,” and the City of Bozeman, a Municipal Corporation of the
State of Montana, hereinafter called the “City.”
WHEREAS, it is the intent and purpose of the Developer to meet the requirement of
Commission Resolution #4433 to allow the issuance of building permit __________________
prior to payment of transportation impact fees required by 2.06.1640 BMC on property located at
____________________________________________________________ and legally described
as____________________________________________________________, City of Bozeman,
Gallatin County, Montana.
WHEREAS, it is the intent of the Developer to defer payment of transportation impact
fees until occupancy for the construction authorized under building permit ______________; and
WHEREAS, it is the intent and purpose of both the Developer and the City to hereby
enter into an Agreement which will guarantee the full and satisfactory completion of the required
payment; and it is the intent of this Agreement, and of the parties hereto, to satisfy the
requirements of the municipal code and Commission Resolution #4433.
NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein, it is hereby agreed as follows:
1. Property Description
This Agreement pertains to and includes those properties which are designated and
identified as ________________ and legally described as ___________________________, City
129184
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 2
of Bozeman, Gallatin County, Montana.
2. Payment of Deferred Impact Fees
This Agreement specifically includes the payment of transportation impact fees calculated for
building permit _______, in the amount of $numeric_____________, (written____________).
Developer acknowledges that the above impact fee must be paid before the Certificate of
Occupancy may be issued. Developer agrees to pay the above stated fee in accordance with this
agreement and Commission Resolution #XXXX before the structure identified in the building
permit referenced above is occupied.
3. Guarantee, Time for Completion of Agreement
No occupancy of the structure, either temporary or permanent prior to payment of the deferred
transportation impact fee and completion of this agreement. This agreement constitutes a Notice
of Intent to Lien against the property in the event that the deferred impact fees are not paid.
Should the fees not be paid the City may without further action lien against the property in the
full amount of the deferred fees as stated above and for costs required for collection of the
deferred fee.
4. Inspection
Representatives of the City shall have the right to enter upon the property at any reasonable time
in order to inspect it and to determine if the Developer is in compliance with this Agreement, and
the Developer shall permit the City and its representatives to enter upon and inspect the property
at any reasonable time.
5. Default
Time is of the essence for this Agreement. If the Developer shall default in or fail to fully
perform any of its obligations in conformance with the time schedule under this Agreement, and
such default or failure shall continue for a period of thirty (30) days after written notice
specifying the default is deposited in the United States mail addressed to the developer at
______________________________________________________________________________
or such other address as the Developer shall provide to the City from time to time, without being
completely remedied, satisfied, and discharged, the City may elect to enforce any of the
130185
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 3
following specified remedies:
A) The City may, at its option, lien against the property.
B) The City may enforce any other remedy provided by law.
6. Indemnification
The Developer hereby expressly agrees to indemnify and hold the City harmless for and against
all claims, costs and liability of every kind and nature, for injury or damage received or sustained
by any person or entity in connection with, or on account of the performance of work at the
development site and elsewhere pursuant to this Agreement. The Developer further agrees to aid
and defend the City in the event that it is named as a defendant in an action concerning the
performance of work pursuant to this Agreement except where such suit is brought by the
Developer. The Developer is not an agent or employee of the City.
7. Governing Law and Venue
This Agreement shall be construed under and governed by the laws of the State of Montana. In
the event of litigation concerning this Agreement, venue is in the Eighteenth Judicial District
Court, Gallatin County, State of Montana.
8. Changes in Fee During Deferral Period
The fees due at conclusion of the deferral period shall not change from the amount determined.
In the event the amount of fees either decreases or increase no change in the amount of fees due
will be made unless the project constructs less demand generating improvements than originally
depicted on the building permit for the work.
9. Attorney’s Fees
In the event it becomes necessary for either party to this Agreement to retain an attorney to
enforce any of the terms or conditions of this Agreement, then the prevailing party shall be
entitled to reasonable attorney’s fees and costs, to include the salary and costs of in-house
counsel including City Attorney.
10. Modifications or Alterations
No modifications or amendment of this Agreement shall be valid, unless agreed to in writing by
the parties hereto.
131186
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 4
11. Invalid Provision
The invalidity or unenforceability of any provision of this Agreement shall not affect the other
provisions hereof, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted.
12. No Assignment
It is expressly agreed that the Developer shall not assign this Agreement in whole, or in part,
without prior written consent of the City.
13. Successors
Except as provided in paragraph 10, this Agreement shall be binding upon, enure to the benefit
of, and be enforceable by the parties hereto and their respective heirs, successors and assigns.
132187
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 5
CORPORATION
________________________
On behalf of MT Stewards, LLC
STATE OF MONTANA )
)ss.
County of Gallatin )
On this ________ day of ____________________, 2013, before me, the undersigned, a Notary
Public for the State of , personally appeared ,
known to me to be the of _____________________ the
corporation that executed the within instrument, and acknowledged to me that he executed the
same for and on behalf of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
(SEAL) ___________________________________
Notary Public for the State of Montana
Residing at Bozeman My Commission Expires _______________
133188
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien
Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 6
THE CITY OF BOZEMAN
_______________________________
Steve Worthington Community Development Director. STATE OF MONTANA )
)ss.
County of GALLATIN )
On this day of , 2013, before me, a Notary Public for the
State of Montana, personally appeared Steve Worthington, known to me to be the person
described in and who executed the foregoing instrument as Community Development Director of the City of Bozeman, whose name is subscribed to the within instrument and acknowledged to
me that she executed the same for and on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written. ________________________________________
________________________________________
(SEAL) Notary Public for the State of Montana
Residing at _______________________________
My Commission Expires:____________________ (Use four digits for expiration year)
134189
DRAFT
Community Development Department
20 E Olive Street • PO Box 1230
Bozeman, MT 59771-1230
Phone: (406) 582-2260 • Fax: (406) 582-2263
City of Bozeman Impact Fee
Deferral Program Forms
135190
Page 1
Name of Applicant:______________________________________________________________
Property Owner Name: __________________________________________________________
Property Owner Address: _________________________________________________________
Phone Number:_________________________________________________________________
Project Name:__________________________________________________________________
Property Address: ______________________________________________________________
The undersigned property owner seeks a fee deferral for the above referenced project and proposes to enter into an Impact Fee Deferral Agreement to be recorded against the affected
property as an:
Initial
Agreement and Notice of Intent to Lien
The Applicant acknowledges the following: (please review and initial)
Initial
The property owner has reviewed the fee deferral provisions for the City of Bozeman
and understands the deferral times periods, those fees which are due and payable at the
time the building permit is issued and those fees which may be deferred and costs which may be incurred by deferring fees.
Initial The property owner has not had a foreclosure on any properties in the past four years.
Initial The property owner has not had any bankruptcy filing in the past four years.
Initial The property owner has no outstanding and unsatisfied Civil Judgment.
Community Development Department
20 E Olive Street • PO Box 1230
Bozeman, MT 59771-1230
Phone: (406) 582-2260 • Fax: (406) 582-2263
APPLICATION FOR DEFERRAL OF DEVELOPMENT IMPACT FEES
136191
Page 2
Initial
No taxes or other governmental fees due on this property or other properties owned by the same property owner are late or unpaid.
Initial All zoning or subdivision review steps for this site have been completed.
I declare under the penalty of perjury under the laws of the State of Montana that the foregoing is
true and correct.
Dated:___________________ _______________________________
Property Owner’s Signature
_______________________________ Print Name
_______________________________
Title
_______________________________ Company
137192
Page 1
Name of Applicant: ____________________________________Phone No._________________
Property Owner: ______________________________________Phone No._________________
Project Name: __________________________________________________________________
Address: ______________________________________________________________________
Upon review and consideration of the Application for Deferral of Development Impact Fees, the following transportation impact fees are eligible for deferral under the City of Bozeman
Development Impact Fee program.
Deferred Transportation Impact Fees $_______________________
Deferred impact fees are subject to the provision of the City of Bozeman Development Impact
Fee Deferral Program terms and conditions. The Fee Deferral Agreement shall be executed by
the Applicant.
Date: ___________________ ______________________________________
Name
______________________________________
Title
City of Bozeman
Department of Planning and Community Development
20 E Olive Street • PO Box 1230
Bozeman, MT 59771-1230
Phone: (406) 582-2260 • Fax: (406) 582-2263
ADMINISTRATIVE APPROVAL FOR DEFERRAL OF
DEVELOPMENT IMPACT FEES
138193
Page 1
Name of Applicant: ______________________________________Phone No._______________
Property Owner: ________________________________________Phone No._______________
Project Name: __________________________________________________________________
Address: ______________________________________________________________________
Building Permit Number: _________________________________________________________
Upon review and consideration of the Application for Deferral of Development Impact Fees, it is
determined that the Application should be denied and it is hereby denied due to the Applicant not meeting the following Eligibility Criteria established pursuant to the City of Galt Fee Deferral
Agreement:
□ The property owner has had one or more of its properties foreclosed within the past four
years.
□ The property owner has filed for bankruptcy protection within the past four years.
□ The property owner has an outstanding Civil Judgment. [HOW DO WE VERIFY]
□ Taxes or fees are unpaid for this property or other properties owned by the same owner
WITHIN GALLATIN COUNTY.
□ Other: __________________________________________________________________
□ Other: __________________________________________________________________
Dated: ___________________ ___________________________________
Name
Community Development Department
20 E Olive Street • PO Box 1230
Bozeman, MT 59771-1230 Phone: (406) 582-2260 • Fax: (406) 582-2263
ADMINISTRATIVE DENIAL
FOR DEFERRAL OF DEVELOPMENT IMPACT FEES
139194
Page 2
___________________________________
Title
City of Bozeman
140195
Page 1
WHEN RECORDED MAIL TO:
City of Bozeman
Community Development Department PO Box 1230
Bozeman, MT 59771
(Space above for Recorder’s Use)
RELEASE OF NOTICE OF AGREEMENT AND INTENT TO LIEN UPON REAL
PROPERTY
WHEREAS, on __________________, _______ an Agreement and Notice of Intent to Lien
to Secure Payment of Deferred Development Impact Fees was recorded as Document No.
_______________, with the Gallatin County Clerk and Recorder; and,
WHEREAS, Grantor has satisfied the conditions for the release of lien encumbering certain
parcels under said Agreement.
NOW THEREFORE, the Grantee hereby releases all of its right, title, and interest to the lien
in the real property described as: __________________________________________________.
DATED this day of ____________________, 20____.
THE CITY OF BOZEMAN
Name ____________________________________
Title
141196
Page 2
STATE OF MONTANA )
:ss
County of Gallatin )
On this ______ day of ______________, 20____, before me, a Notary Public for the State of Montana, personally appeared _______________, known to me to be the person described in and
who executed the foregoing instrument as __________________________________________
of the City of Bozeman, whose name is subscribed to the within instrument and acknowledged to
me that he executed the same for and on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the day and year
first written above.
(Signature above)
(Seal) (Printed Name above)
Notary Public for State of Montana
Residing at:
Commission Expires: (Use 4 digits for expiration year)
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I.FY 14 Proposed Budget for Economic
Development Operations; and
II.FY 14 Proposed Budget for Expansion
of Economic Development
Resources, Programs and Activities
Economic Development
FY 2014 Proposed Budget
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Economic Development
FY 14 Proposed Budget for Economic
Development Operations
FY 12 Operational
Budget
$48,135 Operations
$125,600 (approximate
value of one and one half
mills) – Gallatin College
FY 13 Proposed
Operational Budget
$61,000 Operations
($12,865 increase from
FY 12)
$125,600 – Gallatin
College (will the
Commission approve
additional funding in
FY14? Where will it
come from? GF or
Millage Increase?)
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In FY13 we….
Continued implementation of the adopted ED plan;
Conducted some community outreach;
Hosted an ED Summit;
Assisted with implementation of “business friendly processes”;
Completed the North Park concept land use plan;
Supported cluster development;
Created the South Bozeman Technology District;
Facilitated the development of a downtown hotel;
Assisted with the restructuring of the Community Development Dept.;
Raised the issue of impact fees and economic development;
Explored an EDIFM Program;
Lead the EDT; and
Served as EDC liaison.
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In FY 14 we want to …..
Expand and increase ED outreach, activities and programs;
Continue to improve town/gown relationships, especially with the business college;
Assist with hiring a Community Development Director and implement the structural changes proposed for the
CD Dept;
Actively participate in the BEAR program;
Expand and improve outreach to local, state and national business communities;
Attend and collaborate with local businesses on industry specific trade shows and events to promote Bozeman as a
place to do business, i.e. OIA Show;
Take advantage of professional development opportunities;
Participate in local industry conferences, i.e. Optec;
Assume responsibility of proactively managing at least two of the City’s TIF districts (Industrial and Technology);
Explore creation of a development authority/entity;
Facilitate development at the MSU Innovation Campus;
Facilitate development at the North Park;
Facilitate development of a downtown hotel;
Foreign Trade Zone;
North Park TIF;
Improve broadband connectivity (broadband steering committee);
Improve and expand cluster development, especially optics and the outdoor industry;
Hire an ED specialist to assist with implementation the ED plan;
Work more deliberately with the EDC; and
Explore the implementation of an ED incentive program.
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FY 13 Costs - Where did the $48,135
go?
BUDGETED AND SPENT
$17,200 North Park Concept Land Use Plan and components (EA Ph 1,
Signage, Economic Impact Analysis, LMI Report, etc);
$1, 000 on Montana Site Selector fees and promotional materials and
GBRN promotional materials;
$1,000 on office furniture;
$700 on iPad and accessories; and
$500 on travel/training and misc. operational expenses.
BUDGETED AND UNSPENT
$15,000 identified for intern, outreach and events;
$8,200 travel and training; and
$4,500 contracted services.
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Economic Development
FY 14 Proposed Budget for Economic
Development Operations
Increases in the 2014 Economic Development operating budget are due
to a stated desire by the City Commission to increase resources,
activities and programs.
A $12, 865 increase in the FY 14 operational budget accounts for
improving and expanding ongoing projects, i.e. Montana Site Selector,
Gallatin Business Resource Network, as well as increased presence at
industry specific trade shows, i.e. OIA and OpticsWest, increased
participation in local industry shows and conferences, and increased
education and outreach and hosting and/or sponsoring more ED events.
Additionally, the proposed increases include general resources and
professional training and development for staff working in the area of
Economic Development.
These proposed increases assume a new FTE to administer and expand
existing projects and programs and take advantage of increased training
opportunities.
234
Economic Development
FY 14 Proposed Budget for Expansion
of Economic Development Resources,
Programs and Activities
The proposed expansion of the 2014 Economic Development resources, activities and
programs are is in response to a stated desire by the City Commission to increase overall
economic development activities at the City of Bozeman. Any expansion or increase in
activities is predicated on approval for adding an FTE to the ED Department.
There are five areas of proposed expansion:
Additional FTE, i.e., an Economic Development Specialist with a pay rate of
approximately $50,000. At this pay scale benefits are approximately $17,569.20 for a
total cost of approximately $67,569.20;
An additional $15,000 to expand cluster development activities (esp. in
photonics/optics and the outdoor industry but also includes bioscience, manufacturing,
high-tech and healthcare;
An additional $60,000 to continue the North Park project;
An additional $50,000 to create an ED incentive program, i.e. economic development
impact fee mitigation program (EDIFM); and
FY 14 Funding for Gallatin College at $125,600 (?).
The costs for the proposed expansions, not including operational costs, totals $318,169.20.
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Economic Development
FY 14 Proposed Budget for Expansion
of Economic Development Resources,
Programs and Activities
Proposed FY14 Budget
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage rate?):
Cluster Development $15,000
North Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Gallatin College (?) $125,600
Total FY14 Budget Request $379,169.20*
FY 14 Budget less the GF request for operations $318,169.20
*4 Mills = $344,904 or $14.84 per property owner/yr
236
Economic Development
FY 14 Proposed Budget for Expansion
of Economic Development Resources,
Programs and Activities
Proposed FY14 Budget w/o funding for Gallatin
College
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage rate?):
Cluster Development $15,000
North Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Total FY14 Budget Request $253,569.20
FY 14 Budget less the GF request for operations $192,569.20*
2 Mills = $172, 452 or $7.42 per property owner/yr
3 Mills = $258,678 or $11.13 per property owner/yr
237
FY 14 Economic Development Budget
Proposed Funding Sources
•Continue to fund ongoing ED operations in the proposed amount of
$61,000 from the General Fund;
AND
•Increase the number of Mills currently levied by 1, 2, 3 or 4 additional
mills for economic development, from 166.75 mills to 170.75 mills,
the value of 4 mills is $332,904. With an increase of 4 mills for
economic development, the City would be 25.87 mills below the
statutory limit of 196.62 mills.
•The value of one mill is $86,226;
•In 2012, City residents living in the median residential home
paid approximately $3.71 for each mill levied. The same home
would expect the following yearly increase if additional revenue
was raised through mills to fund economic development:
•4 Mills = $344,904 or $14.84 per property owner/yr
•3 Mills = $258,678 or $11.13 per property owner/yr
•2 Mills = $172, 452 or $7.42 per property owner/yr
•1 Mill = $ 86,226 or $3.71 per property owner/yr
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City Commission’s Economic
Development Objectives
Facilitate job creation and
encourage economic diversity;
AND
Strive to position Bozeman as the
“Most business friendly community
in the state of Montana”.
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Economic development goals from the
2009 Economic Development Plan
Support the expansion and retention of existing businesses and economic
clusters that will continue to strengthen and diversify the economy and create
higher paying jobs in Bozeman;
Maintain and upgrade infrastructure to support current and future needs of
business;
Support education and workforce development initiatives to provide Bozeman
with the qualified workers to meet the needs of business;
Leverage local, state and federal economic development resources to enhance
economic growth in Bozeman;
Create a more collaborative and effective working partnership between the
business community and the City of Bozeman and effectively manage the City
of Bozeman’s regulatory environment to accomplish goals without hindering
business expansion and economic growth; and
Maintain the high quality of life that is considered an important asset to the
business community.
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Economic Development Council’s
Priorities and Recommendations
Ongoing financial commitment to Economic Development;
Commitment to a business-friendly process with a focus on
retention and expansion of existing local businesses;
Stabilize existing local incubators and create a full service
business incubator program to achieve a healthy business
ecosystem;
Core Services and Infrastructure;
Identification and Establishment of Business Incentives; and
Workforce Development.
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Why should we continue to invest in
economic development in the City of
Bozeman?
in·vest - /inˈvest/ To devote one's time, effort, energy and/or money to a
particular undertaking while creating expectations of worthwhile
results.
Local economic development activities build, and rebuild, strong community relationships and create
trusting, long-term community partnerships;
Economic development is intrinsic to long term sustainable development;
A strong economy benefits the entire community;
By investing public dollars in economic development, we invest in the future of our community. We must
develop and share a long term vision, commitment and promise in building a prosperous and diverse local
and regional economy;
Local economic development strategies, while no panacea, are a valid complement to traditional top-down
[Federal] strategies in order to deliver sustainable development and in many cases may deliver greater
economic efficiency by mobilizing local and regional resources that otherwise may have remained
untapped;
Local economic development offers a benefit that is quite valuable to local residents: more and better job
opportunities in their home community;
The cost and quality of life for every household is directly dependent on local economic conditions;
Business investment has many locational alternatives: We must play to our local strengths and leverage
partnerships;
Business activity creates the revenues to fund local services; and
Economic development is everyone's business. 242
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What is most important, right now? 2013 – 2014 Priorities
1. Diversify the local economy and support the creation and expansion of mid to high paying
jobs. (Fontenot/Kukulski) (ED-01)
2. Implement the 2012 parks & trails bond to expand the capacity of our parks, trails and open
spaces. (Overton/Rosenberry/Sullivan) (PR-02) (Mayor: 1)
3. Implement reform of the community development system with an enhanced focus on customer
service. (Worthington/Woolard) (CM-01)
4. Enhance Downtown Development Opportunities
Collaborate with the Downtown Partnership, Montana Department of Transportation and
Transportation Coordinating Committee to improve transportation downtown.
Facilitate development of a downtown hotel as identified in the downtown development plan.
5. Complete the Integrated Water Resource Plan and develop solutions to achieve long term
water sustainability (Woolard/Sullivan) (PW-01)
6. Implement financial plans and asset management systems to properly maintain and replace
the city’s infrastructure and facilities (Rosenberry/Woolard) (PW-02)
7. Complete design of the police station & municipal court and educate the public on the
necessity for, and passage of, a bond measure (Winn/Price) (PD-01)
8. Assist Gallatin College and secure regional funding. (City Commission)
9. Continue implementation of the Climate Action Plans (City Commission/Winn) (CM-04)
10. Determine the future of Bogert Pool and next steps for aquatics & Recreation
(Overton/Kukulski) (PR-01)
11. Consider a Demolition by Neglect ordinance
12. Develop a permanent plan for the Story Mansion
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Downtown Bozeman Partnership
DOWNTOWN TAX INCREMENT FINANCE DISTRICT 222 East Main Street #302—Bozeman MT 59715—p 406-586-4008—www.downtownbozeman.org
Downtown
Technical Assistance
Program
Information & Grant Application
Fiscal Year 2012 v2.0
(July 1, 2011 through June 30, 2012)
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Downtown Technical Assistance Program Application
Page 1
Purpose:
To support current or potential developers, property owners, and tenants with technical
assistance during the preliminary phases of possible redevelopment projects in the Tax
Increment Finance (TIF) District of downtown Bozeman. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations.
Grant monies are available to developers, owners and tenants to further stimulate
investment in downtown Bozeman, while encouraging a higher level of quality and
design in the downtown environment. Technical Assistance Program projects must support the goals and objectives of the 2009 Downtown Improvement Plan, a comprehensive, community-oriented guide for the development of downtown Bozeman.
Copies of the Downtown Improvement Plan are available from the Downtown Bozeman
Partnership.
Applicants are reminded that grant awards made by the Downtown Bozeman Tax Increment Finance (TIF) Board are discretionary in nature and should not be considered
an entitlement by the applicant. All grant criteria are guidelines for awards and
successful applicants may receive any amount up to the maximum award. Should an
application meet all grant criteria, a grant may or may not be awarded at the TIF Board’s
discretion due to funding limitations, competing applications, and/or competing priorities of the TIF Board.
Authority:
The 1995 Downtown Urban Renewal Plan establishes that urban renewal objectives
and continued commercial development “shall be accomplished by incentives whenever
possible”.
Montana Code Annotated authorizes the Downtown TIF to fund such grants:
7-15-4209 Development of workable urban renewal program (1) A municipality, for the purposes of this part and part 43, 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;
(2) Such workable program may include, without limitation, provision for: (b) the rehabilitation of blighted areas or portions thereof by replanning, 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;
(c) the clearance and redevelopment of blighted areas or portions thereof.
7-15-4233 Urban Renewal Project Powers (m) to prepare plans for carrying out a program of voluntary or compulsory repair and
rehabilitation of buildings and improvements; and
(n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans
and work necessary for the undertaking of urban renewal projects.”
7-15-4288. Costs that may be paid by tax increment financing.
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Downtown Technical Assistance Program Application
Page 2
The tax increments may be used by the municipality to pay the following costs of or incurred in connection with an urban renewal project
(5) costs incurred in connection with the redevelopment activities allowed in 7-15-4233
Disclaimer:
Neither the Downtown Bozeman Partnership, nor the Downtown TIF Board, nor its
affiliates shall be responsible for the planning, design, or construction proposed by any
work conducted as part of the Downtown Technical Assistance Program. No warranties or guarantees are expressed or implied by the description of, application for, award of or
participation in the Downtown Technical Assistance Program. The applicant is advised
to consult with the City of Bozeman, licensed architects, engineers, or building
contractors before proceeding with final plans or construction. Time Frame:
Grants will be available through June 30, 2012 or until funding is depleted. The
Program will be re-evaluated annually and considered for future funding.
Applying: Applicants are advised to submit a complete application and all supporting materials per the instructions in this packet. Incomplete applications will not be reviewed.
Funding:
The TIF Board will hold $125,000.00 in reserve to fund this program. Individual grant award amounts are discussed below.
Project Eligibility:
In order to be considered for a grant awards, proposed projects must meet the following
criteria: 1. The project property must be located with in the downtown Bozeman Tax Increment Finance (TIF) District. A detailed map of the district can be found at
http://www.bozeman.net/Smarty/files/ec/ec3ba299-bb54-4bff-b298-0ac76c51dff8.pdf
2. The project must be consistent with the following City of Bozeman planning
documents:
2009 Downtown Improvement Plan
http://www.downtownbozeman.org/downtown-improvement-plan.html
Bozeman Community Plan
http://www.bozeman.net/Departments-%281%29/Planning/Plans-and-Planning.aspx
Downtown Design Guidelines and Standards
http://www.bozeman.net/Smarty/files/6d/6d64b4df-428c-4cf4-abe2-4abf112a3736.pdf
3. The Applicant must be the owner of the project property. If not, the Applicant
must complete the program’s Letter of Acknowledgement thus providing the
approval of the property owner to proceed. 4. All work shall be preliminary in scope. Construction work is not eligible for
Technical Assistance funds.
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Downtown Technical Assistance Program Application
Page 3
Please note that changes to the FY2012 program are indicated in blue font below.
There are two grant programs currently available for technical assistance.
1. Façade Assistance Projects: Façade Assistance Grants may be applied, but not limited to, the following
services:
Façade improvement planning
Preliminary cost estimates
UDO and building code analysis
Historical inventory and research
Landscape or hardscape design
Greenspace, courtyard, plaza design
The Façade Assistance grant will provide partial financial reimbursement for
professional architectural, design, or engineering assistance.
The Façade Assistance grant will fund up to 50% of the total professional service
costs of the awarded project not to exceed a grant total of $3000. Please notice
this is a new requirement of the program.
2. Planning Assistance Projects:
Planning Assistance Grants may be applied, but not limited to, the following
services:
Development feasibility study
Preliminary development review
Building condition assessment
Renovation or reuse studies
Historical inventory and research
Parking requirement assessment
Preliminary cost estimates
UDO and building code analysis
Scenario planning and phasing
The Planning Assistance grant will provide partial financial reimbursement for
professional architectural, design, or engineering assistance for feasibility studies and/or preliminary design assistance. The Planning Assistance grant will fund up to 50% of the total professional
service costs of the awarded project not to exceed a grant total of $7500. Please
notice this is a new requirement of the program.
The final grant amount will be calculated upon completion of the project and with the submittal of the financial documentation as required by the Certificate of Completion.
Each project or property is limited to receiving a maximum of two awards in a given
fiscal year. Please notice this is a new requirement of the program.
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Downtown Technical Assistance Program Application
Page 4
Review Process:
Application forms are available by request from the Downtown Bozeman Partnership. Applications will be reviewed by Downtown Bozeman Partnership staff under the supervision of the TIF Board. The Partnership will review applications on a first come,
first served basis for the duration of funding availability. Projects that are recommended
for approval will be submitted to the TIF Board for final approval. The decisions made
by the Partnership staff and TIF Board are final. Award recipients will receive a Letter of Award confirming the grant award and any
conditions deemed necessary by the Partnership for receipt of the award.
The receipt and completion of a Technical Assistance grant does not obligate the
applicant to continue with the project.
Technical Library:
Upon completion, printed and digital copies of all research, studies, and findings will be
provided to the Downtown Partnership to be included in the Technical Assistance
Library. The specifics of this requirement are outlined in the Certificate of Completion. The materials in the Technical Assistance Library will be available to the public upon
request. Pending projects will remain confidential until the applicant submits plans to
the City of Bozeman Planning Department or 180 days, which ever occurs first.
If the applicant of an assistance grant sells the property, then the technical assistance
library materials become public upon the transfer of ownership. Please notice this is a new requirement of the program.
Release of Funds:
The Downtown Technical Assistance Program is reimbursement program. No funds will
be disbursed until all the completion criteria have been satisfactorily met. At the end of the project, the recipient will submit a Certificate of Completion and
required supporting documentation to the Downtown Partnership office which must
include an itemized invoice for the hours worked by the professional firm(s). Payment
will be made directly to the recipient for the allowable match amount. Payment will not
exceed the maximum award amount.
Submit Application Materials to:
Chris Naumann Downtown Bozeman Partnership
222 East Main Street #302
Bozeman MT 59715
Phone: 406-586-4008 E-mail: chris@downtownbozeman.org
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Downtown Technical Assistance Program Application
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DOWNTOWN TECHNICAL ASSISTANCE APPLICATION
Application Date
Name of applicant
Applicant Company
Mailing address
City, State, Zip
Phone
Email
Name of Professional
Professional Company
Mailing address
City, State, Zip
Phone
Email
Project Building Name
Physical Address:
Current Tenants:
Does the applicant own the project property? Yes No
If “No”, is the project property currently for sale? Yes No
NOTE: If applicant does not own the project property, then a Letter of Project
Acknowledgement must be completed by the applicant and current property owner.
Type of project (please check one):
Façade Assistance
Planning Assistance
Provide the following information on an additional sheet(s):
1 Describe the proposed project. What type(s) of development and/or physical
improvements are being considered for the project property?
2 What type of Technical Assistance are you seeking? Please explain what type(s) of analysis will be conducted with the Technical Assistance funding.
3 Identify how your project supports the Downtown Improvement Plan.
4 Provide a timeline indicating estimated dates for beginning technical evaluation; completing technical evaluation; beginning the development project; and
completing the development project.
5 Estimate of the anticipated total professional services costs in order for the
matching grant amount to be estimated. *** CONTINUED ON NEXT PAGE ***
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Downtown Technical Assistance Program Application
Page 6
Signatures
Applicant Signature Professional Signature
Print Applicant’s Name Print Professional’s Name
For Office Use Only
Date Application Received:
Date Award Approved:
Date Grant Project Completed:
Date Professional Firm Paid:
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