HomeMy WebLinkAboutProvisional adopt Ordinance 1862, ability to create Urban Renewal, Tax Increment and other Districts1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Economic Development Director
SUBJECT: Provisional Adoption of Ordinance 1862 Amending Chapter 2, Article 6, Division 7 of the Bozeman Municipal Code to Provide for the Creation of Urban Renewal, Tax Increment Financing, and other Districts as
Authorized by Title 7, Chapter 15, Parts 42 and 43, MCA.
MEETING DATE: May 20, 2013 AGENDA ITEM TYPE: Action
RECOMMENDATION: Provisionally adopt Ordinance 1862 and direct staff to return on
June 3, 2013 for the second reading of Ordinance 1862 on the June 3rd Consent agenda. If approved on second reading, Ordinance 1862 will be effective on July 3, 2013.
MOTION AND VOTE: I move to provisionally adopt Ordinance 1862 and direct staff to
return on June 3, 2013 for the second reading of Ordinance 1862 on the June 3rd Consent agenda.
BACKGROUND: For a detailed history of the creation of the South Bozeman
Technology District, please see the staff memo and attachments dated November 19, 2012.
(ATTACHMENT 1). On November 19, 2012 the City Commission adopted Ordinance 1844 which became
effective on December 19, 2012. (ATTACHMENT 2) Ordinance 1844 established the South
Bozeman Technology District with a base year of 2012. (ATTACHMENT 3)
Ordinance 1862 represents the next step in the creation of the South Bozeman Technology District. (ATTACHMENT 4) Overtime, the City Commission has created by ordinance several
urban renewal and tax increment financing districts throughout the City. The intent of this
Ordinance is to provide for the authority of the city commission to create urban renewal, tax
increment financing, and other districts pursuant to Title 7, Chapter 15, Parts 42 and 43, MCA and to provide general rules applicable to newly created districts. This Ordinance is not intended to supersede or repeal any ordinances or resolutions regarding existing urban renewal or tax
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increment financing districts. The City Commission recognizes the Montana Legislature adopted
Senate Bill 239, effective July 1, 2013, which consolidated several types of districts authorized
to use tax increment financing including technology and industrial districts into what will be
called “targeted economic development district[s].” Section 25 of Senate Bill 239 provides that existing technology and industrial districts, such as those created within the City of Bozeman, may continue to operate and issue bonds under the laws governing the districts and financial
operations of those districts as those laws read on December 31, 2012.
UNRESOLVED ISSUES: None identified at this time. ALTERNATIVES: As determined by the Commission.
FISCAL EFFECTS: None identified at this time.
Attachments: 1. November 19, 2012 Staff memo and attachments;
2. Ordinance 1844 (signed);
3. December 20, 2012 letter from the Montana Department of Revenue certifying the South Bozeman Technology District with a base year of 2012; and 4. Ordinance 1862.
Report prepared on May 9, 2013
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Final Adoption of Ordinance 1844 Creating the South Bozeman
Technology District and authorizing the Use of Tax Increment Financing
MEETING DATE: November 19, 2012
AGENDA ITEM TYPE: Consent Item
RECOMMENDATION: By motion and vote, approve the second reading of Ordinance 1844 on the Commission’s Consent agenda, finally adopting Ordinance 1844 as presented by
staff on November 5, 2012. Ordinance 1844 will be effective thirty days after approval on the
second reading of the ordinance, December 19, 2012.
BACKGROUND:
On November 5, 2012, by a vote of 4 – 0, the Bozeman City Commission provisionally adopted Ordinance 1844 as presented, and directed staff to return to the Commission for the second
reading of Ordinance of 1844 on the November 19, 2012 Consent agenda.
Why a technology district?
The desire to create the South Bozeman Technology District (the “District”) is an effort at addressing existing infrastructure deficiencies on property adjacent to Montana State University
(“MSU”) and the Innovation Campus to achieve the goals set out in the City of Bozeman’s 2009
Economic Development Plan (“EDP”) and the South Bozeman Technology District
Comprehensive Development Plan (“CDP”). Goals of the EDP are synchronized with those of
the District’s CDP and the Innovation Campus in the context of the establishment of a technology district to enhance the local and regional economies through job creation and
industry diversification. Creation and stewardship of a technology district is consistent with these
priorities.
Technology districts were authorized in the 2005 Montana legislature. Section 7-15-4295, MCA, states that the purpose of a technology district is the development of infrastructure to
encourage the location and retention of technology infrastructure development projects in
the state, and to address infrastructure deficiencies which are an impediment to
development (emphasis added).
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Currently, the area of the proposed technology district lacks the infrastructure necessary to
facilitate the development identified in the CDP; see p17 – 21. Ordinance 1844 includes a
finding to this effect; see Section 1, 9 of Ordinance 1844.
Since the adoption of the EDP in 2009, the City has prioritized support for the following high
growth potential sectors including:
• Photonics;
• Bio-sciences;
• Manufacturing;
• High-tech; and
• the outdoor industry.
Most of the sectors identified above are also supported by the mission and vision of the District’s
CDP and the Innovation Campus. MSU plays a significant role in the growth and development of Bozeman’s technology industry, and is the reason the Bozeman area is considered the technology
center of the state.
Additionally, MSU’s research innovation has led to the creation and growth of businesses in
Bozeman and throughout the state, providing employment opportunities in industries such as agriculture, energy, construction, healthcare, technology, photonics, manufacturing and
biosciences.
Home to more than 100 technology-based firms, Bozeman has become the high-tech center of
Montana; and it is one of the largest technology communities in the northern Rocky Mountains. Bozeman’s technology sector has grown significantly since the early 1990s.
Bozeman’s technology sector includes firms engaged in advanced manufacturing and laser
optics; information technology—application development, information technology services,
software, internet applications, telecom, etc.; biotech or bioscience; and agricultural, environmental, or miscellaneous activities. These firms are, for the most part, selling their goods
and services entirely to customers located outside of Montana and many located outside of the
United States. It is estimated that these firms directly employ more than 3,000 people whose
earnings are significantly higher than the county’s annual average wage.
MSU has grown to become a regional leader in research and creative projects with nearly $100
million in research expenditures in Montana each year. MSU was recognized by Carnegie
Foundation for the Advancement of Teaching as one of 96 research universities nationally with
“very high research activity.” MSU has strong ties to industry in the Bozeman area, particularly
in the life science, aerospace, and information technology sectors. MSU lists relationships with over 150 companies which include research support, licensing agreements, and consulting
services.
Additionally, the concentration of research activity at MSU has fueled the development of
technology-based companies clustered in and around Bozeman and is a significant contributor to Bozeman’s vibrant entrepreneurial technology economy. University technology transfer and
commercialization activities have been driving economic development nationwide since the early
1980’s when changes in federal legislation accelerated the process and increased incentives for
collaboration between universities and industry. MSU is no exception. According to the MSU
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Technology Transfer Office, technology developed at MSU has resulted in the spin-off of 30
companies and licensing by 37 companies in the Bozeman area and nearly 300 companies
statewide. The university holds 163 licenses for patents for innovations such as biological,
chemical, and engineering processes and compounds, including coatings for the space shuttle and pharmaceutical drugs. Of those 163 licenses, 60% are with Montana companies, many located in Bozeman. Further development of the Innovation Campus will enhance these results.
The strength of Bozeman’s technology economy has also translated into private companies
receiving research and development and investment funding. During the 2000-2004 time period, Montana ranked 10th in the nation in the average annual number of federal Small Business Innovation Research (SBIR) awards made, with nearly half going to Bozeman companies.
Ordinance 1844.
On November 5, 2012, Ordinance 1844 was provisionally adopted by the City Commission by a
vote of 4 – 0. Ordinance 1844 was provisionally adopted as presented.
To create a technology district and authorize the use of tax increment financing, the Commission
must conduct a public hearing and adopt an ordinance, Sect. 7-15-4295, MCA. Ordinance 1844
address the following: legislative findings (Section 1); creation (Section 2); requirements for
tenants of the District (Section 3); annual report (Section 4); boundaries of the district (Section
5); authorizing the use of TIF (Section 6): term of the district (Section 7); costs which may be paid from the district with TIF funds (Section 8); and filing of the ordinance with the Montana
Department of Revenue (Section 9). The City Attorney has reviewed the ordinance and finds it
complies with the legal requirements for creation of a technology district and the use of TIF
funds.
What is a Tax Increment Financing District or TIF?
Tax increment financing (“TIF”) is a state authorized, locally driven funding mechanism that
allows cities and counties to direct property tax dollars that accrue from new development,
within a specifically designated district, to community and economic development activities. In
Montana, TIF districts are authorized in Montana Code Annotated (MCA) parts 7‐15‐4201 and
4301, et. Seq. Proposed TIF districts are typically characterized by blight and/or infrastructure deficiencies
that have limited or prohibited new investment. A base year is established from which
"incremental" increases in property values are measured. Virtually all of the resulting new
property tax dollars (with the exception of the six mill state‐wide university levy) can be directed
to redevelopment and economic revitalization activities within the area in which they are
generated.
Property owners located within a TIF district pay the same amount of property tax as they would
if the property were located outside the district. Thus, TIF only affects the way that taxes, once
collected, are distributed. Taxes that are derived from the base year’s taxable values continue to
be distributed to the various taxing jurisdictions – local and state government entities and school districts. Taxes derived from the incremental increase in taxable value, however, are placed in a
special fund for purposes set forth in establishing the TIF program.
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(For a more detailed explanation of TIFs in Montana see Tax Increment Financing in Montana:
A Manual for Local Governments and Economic and Community Development Agencies, 2011,
The Governor’s Office of Economic Development.) Currently, the City of Bozeman supports four TIF districts. Three are urban renewal districts (Downtown, Northeast and North 7th), and the fourth, Mandeville Farm, is an industrial TIF
district.
What can TIF Dollars Fund?
Section 7-15-4288, MCA, identifies the costs that may be paid by tax increment financing:
The tax increments may be used by the municipality to pay the following costs of or
incurred in connection with an urban renewal project, industrial infrastructure
development project, technology infrastructure development project, or aerospace transportation and technology infrastructure development project:
(1) land acquisition;
(2) demolition and removal of structures; (3) relocation of occupants;
(4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian malls,
alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports
for reusable launch vehicles with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13,
parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred;
(5) costs incurred in connection with the redevelopment activities allowed under 7-
15-4233; (6) acquisition of infrastructure-deficient areas or portions of areas;
(7) administrative costs associated with the management of the urban renewal area,
industrial district, technology district, or aerospace transportation and technology district; (8) assemblage of land for development or redevelopment by private enterprise or
public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (9) the compilation and analysis of pertinent information required to adequately
determine the needs of an urban renewal project in an urban renewal area, the
infrastructure needs of secondary, value-adding industries in the industrial district, the needs of a technology infrastructure development project in the technology district, or the
needs of an aerospace transportation and technology infrastructure development project in the aerospace transportation and technology district; (10) the connection of the urban renewal area, industrial district, technology district,
or aerospace transportation and technology district to existing infrastructure outside the district;
(11) the provision of direct assistance, through industrial infrastructure development
projects, technology infrastructure development projects, or aerospace transportation and technology infrastructure development projects, to secondary, value-adding industries to
assist in meeting their infrastructure and land needs within the district; and
(12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution.
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Ordinance 1844 references this statute for the range of uses for which the TIF money can be
spent.
Community Engagement.
As part of the technology district creation process, the City and the Innovation Campus staff
consulted with Gallatin County and School District7 about the mission, vision, rationale and plan
for the creation of a technology district. Meeting dates include:
Gallatin County Administration
• May 3, 2012
Gallatin County Commission
• August 6, 2012
Bozeman School District 7 Administration
• May 25, 2012
• July 30, 2012
Bozeman School District 7 Trustees
• August 24, 2012
• October 8, 2012
• October 15, 2012
• October 22, 2012
Scheduled Public Hearings
• November 5, 2012
• November 19, 2012
UNRESOLVED ISSUES: Once created, the City Commission has the authority to act on behalf of the District. The Commission may appoint an advisory board to make recommendations to the City on the expenditure of tax increment dollars. The implementation of
the CDP will be a partnership between the City of Bozeman and the Innovation Campus. In the
future, staff will bring the issue of District administration and management back to the
Commission for consideration. At that time, the Commission may consider the size and make-up of an advisory board and the possibility of including School District 7 officials, or other stakeholders, in some capacity.
ALTERNATIVES: As recommended by the Commission.
FISCAL EFFECTS: If Ordinance 1844 is approved, the District’s base year is created in 2012
and property taxes distributed to the City, County, and State from the defined area will be frozen at the 2012 taxable value levels for the life of the district. In future years, beginning with tax year 2013, any taxable value increases from new development or property appreciation will be
taxed at the same level as other City property, with the tax revenue going to the District. If there
is no increase in taxable value, the District will receive no funds.
With the creation of the District, the City will establish a new special revenue fund for the purpose of segregating the revenues derived from the technology district.
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Funds received by the District from the increment are intended for infrastructure improvements
shown on in the estimates on pages 17 – 21 of the CDP.
Attachments:
1) Ordinance 1844 creating the South Bozeman Technology District
a. Exhibit A, legal description of the proposed South Bozeman Technology District;
and
b. Exhibit B, map of the proposed South Bozeman Technology District. 2) Property owners list; and 3) Public notification.
Report compiled on: November 7, 2012
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ORDINANCE NO. 1844
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA ESTABLISHING AND CREATING THE SOUTH BOZEMAN TECHNOLOGY DISTRICT; AUTHORIZING THE USE OF TAX
INCREMENT FINANCING; DETERMINING THE COSTS
TO BE PAID BY TAX INCREMENT FINANCING; ESTABLISHING A BASE TAXABLE YEAR AND AN EFFECTIVE DATE
NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Bozeman, Montana:
Section 1
Findings. 1. The Commission (the “Commission”) of the City of Bozeman, Montana (the “City”) is
authorized to create a technology district pursuant to §7-15-4295, MCA and use tax
increment financing in furtherance of the purposes of the District pursuant to §§7-15-
4282 – 4294, MCA for the purpose of developing infrastructure to encourage the location and retention of technology infrastructure development projects in the City.
2. Job creation and industry diversification are critical to the long-term economic vitality of
Bozeman.
3. Consistent with the goals of the City of Bozeman’s Economic Development Plan, the
City wishes to stimulate, encourage and support the attraction, retention and growth of
jobs and industry in a variety of technology sectors.
4. The number and diversity of jobs created in a variety of technology sectors have high growth potential and support moderate to high income employment.
5. The area proposed for the South Bozeman Technology District (the “District”) consists of
a continuous area with an accurately described boundary that is large enough to host a
diversified tenant base of multiple independent tenants.
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6. With the adoption of Resolution 4414 on November 5, 2012, the Commission adopted a
comprehensive development plan for the District known as the “South Bozeman
Technology District Comprehensive Development Plan” (the “Plan”) that ensures that the
District can host a diversified tenant base of multiple independent tenants.
7. The area proposed for the District is currently zoned a combination of Business Park (BP)
and Community Commercial Mixed Use ( B-2), which authorize uses compatible with
the Plan and are in accordance with the Bozeman Community Plan and consistent with
the goals of the City of Bozeman’s Economic Development Plan.
8. The area proposed for the District does not comprise any property included within an
existing urban renewal area, industrial district, or aerospace transportation and
technology district created pursuant to §7-15-4295, MCA.
9. The area proposed for the District is deficient in infrastructure improvements necessary
for technology development.
10. The Commission has determined that the area proposed for District has not been designed
to serve the needs of a single district tenant or group of non-independent tenants.
11. The City has discussed the creation of the District and the use of tax increment financing
with the Gallatin County Commission and the Trustees of Bozeman School District No. 7
and in adopting this Ordinance has taken into account the effect on Gallatin County and
School District No. 7.
12. The City Commission reviewed and considered the relevant criteria established by §7-15-
4295, MCA and §§7-15-4282 – 4294, MCA, and found the proposed technology district
and the costs for which tax increment financing may be used to be in compliance with
these criteria; and,
13. After proper notice, the Commission held a public hearing on November 5, 2012, to
receive and review all written and oral testimony on the proposal to create the District
and use tax increment financing has determined the creation of the District is in the
public interest.
Section 2
Creation of the South Bozeman Technology Tax Increment Financing District.
The Commission, after having conducted a public hearing duly called and noticed in accordance
with the provisions of §7-15-4295, MCA, does hereby create the South Bozeman Technology
Tax Increment Financing District (the “District”) for the purpose of stimulating, encouraging and
supporting the attraction, retention and growth of jobs and industry in a variety of technology
sectors.
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Section 3
Requirements of Tenants of the District.
The tenants of the District must be businesses or organizations engaged in technology based
operations within Montana that through the employment of knowledge or labor add value to a
product, process, or export service that results in the creation of new wealth and for which at
least 50% of the sales of the business or organization occur outside of Montana or the business or
organization is a manufacturing company with at least 50 % of its sales to other Montana companies that have 50% of their sales occurring outside of Montana.
Section 4
Annual Report. At a date determined by the Director of Administrative Services, the District shall present the
Commission and file with the City Clerk a report describing: (1) the activities of the District for
the previous year; (2) the activities and the proposed costs to be paid by tax increment financing
in the upcoming year; and (3) whether the tenants of the District comply with Sections 1.5 and 3 of this Ordinance.
Section 5
Legal Description/Boundaries.
The legal description of the District is as shown on EXHIBIT A. The physical boundaries of the
District are as shown on EXHIBIT B (both exhibits are hereby incorporated herein and made a
part hereof).
Section 6 Authorization for Use of Tax Increment Financing/Base Year.
In accordance with §7-15-4282, the Commission hereby authorizes the segregation and application of tax increments as provided by §§7-15-4282 – 4294, MCA. For the purpose of
calculating the incremental taxable value each year for the life of the District, the base taxable
value shall be calculated as the taxable value of all property within the District as of January 1,
2012.
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Section 7
Term of Tax Increment Financing Technology District.
The tax increment financing technology district will terminate in accordance with §7-15-4292,
MCA.
Section 8
Costs Which May be Paid From Tax Increment.
The tax increment received by the District may be used to pay any costs incurred for an
infrastructure development project (in the District), pursuant to the provisions of §7-15-4282
through §7-15-4294, MCA.
Section 9
Filing with the Montana Department of Revenue.
The City Clerk shall file a copy of the Plan and this Ordinance with the Montana Department of
Revenue.
Section 10
Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances
of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect.
Section 11
Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 12
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
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the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 13 Codification.
This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in
a category entitled “Tax Increment Financing Districts.”
Section 14
Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption.
***** End of Ordinance except for signature page and exhibits *****
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PROVISIONALLY PASSED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the _____ day of ________________, 2012.
____________________________________ Mayor
ATTEST:
____________________________________
STACY ULMEN, CMC
City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2012. The effective date of this ordinance is __________, __, 2012.
_________________________________
SEAN A. BECKER
Mayor ATTEST:
_______________________________
STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
_________________________________ GREG SULLIVAN City Attorney
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366 34385
South Bozeman Technology District
Property owners in the proposed district:
1) Advanced Technology INC
910 Technology Blvd. Suite A
Bozeman MT, 59718
S14, T02 S, R05 E MINOR SUB 195A NW4 41.97 AC TRACT C-1A
36735386
NOTICE OF PUBLIC HEARINGS ON THE CREATION OF THE SOUTH BOZEMAN
TECHNOLOGY DISTRICT AND USE OF TAX INCREMENT FINANCING
Notice is hereby given that the City Commission for the City of Bozeman, Montana, at its
regular meeting on November 5, 2012, at 6 pm in Bozeman City Hall (121 N. Rouse Ave), will
hold two public hearings on the creation of the South Bozeman Technology District (the
“District”) pursuant to 7-15-4295, MCA. The Commission will first hold a public hearing on Resolution 4414 adopting the Comprehensive Development Plan for the District. The Commission will then hold a public hearing on Ordinance 1844 creating the District and
authorizing the use of tax increment financing for the District pursuant to 7-15-4282, MCA.
Copies of the proposed Resolution 4144, the South Bozeman Technology District Comprehensive Development Plan, and Ordinance 1844, which includes a tax increment financing provision, a map showing the boundaries of the proposed District, a legal description
of the proposed District, and a list of all properties subject to the proposed District, are on file in
the office of the Bozeman City Clerk, 121 N. Rouse Ave., Bozeman, MT.
Questions concerning the Resolution, Ordinance, the creation of the District, or the use of tax increment financing may be directed to Brit Fontenot, Director of Economic Development, City
of Bozeman, 121 N. Rouse Ave. Bozeman, Montana, by email at bfontenot@bozeman.net, or by
telephone to 406-582-2258.
Publish: October 21, 2012 and November 4, 2012
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Ordinance 1862
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ORDINANCE NO. 1862
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA AMENDING CHAPTER 2, ARTICLE 6, DIVISION 7 OF THE
BOZEMAN MUNICIPAL CODE TO PROVIDE FOR THE CREATION OF
URBAN RENEWAL, TAX INCREMENT FINANCING, AND OTHER
DISTRICTS AS AUTHORIZED BY TITLE 7, CHAPTER 15, PARTS 42 AND 43,
MCA.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF BOZEMAN, MONTANA:
Section 1
Legislative Intent.
Overtime, the City Commission has created by ordinance several urban renewal and tax
increment financing districts throughout the City. The intent of this Ordinance is to provide for the
authority of the city commission to create urban renewal, tax increment financing, and other districts
pursuant to Title 7, Chpt. 15, Parts 42 and 43, MCA and to provide general rules applicable to newly
created districts. This Ordinance is not intended to supersede or repeal any ordinances or resolutions
regarding existing urban renewal or tax increment financing districts. The City Commission recognizes
the Montana Legislature adopted Senate Bill 239, effective July 1, 2013, which consolidated several types
of districts authorized to use tax increment financing including technology and industrial districts into
what will be called “targeted economic development district[s].” Section 25 of Senate Bill 239 provides
that existing technology and industrial districts, such as those created within the City of Bozeman, may
continue to operate and issue bonds under the laws governing the districts and financial operations of
those districts as those laws read on December 31, 2012.
Section 2
That the table of contents to Chapter 2, Article 6, Division 7 shall be amended to read as follows:
DIVISION 7. – URBAN RENEWAL, TAX INCREMENT FINANCING, AND ECONOMIC
DEVELOPMENT INDUSTRIAL DISTRICTS PROGRAM
Sec. 2.06.1250. - Definitions.
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Ordinance 1862
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Sec. 2.06.12560. – Urban renewal, tax increment, and economic development Industrial
development districts; creation.
Sec. 2.06.1267 0. - Costs which may be paid from tax increments.
Sec. 2.06.1278 0. - Use of tax increments for bond payments.
Sec. 2.06.1289 0. - Contents of ordinance.
Sec. 2.06.12901300. - Districts; tTermination of tax increment financing provisions .
Sec. 2.06.1301 0. - Administration.
Sec. 2.06.1310. – North Park Industrial District.
Sec. 2.06.1320. – Downtown Area Urban Renewal District.
Sec. 2.06.1330. – North Seventh Avenue Urban Renewal District.
Sec. 2.06.1340. – Northeast Urban Renewal District.
Sec. 2.06.1350. – South Bozeman Economic Development District.
Secs. 2.06.1352 0—2.06.1440. - Reserved.
Section 3
That Chapter 2, Article 6, Division 7 shall be amended to read as follows:
Sec. 2.06.1250. - Definitions.
A. The following words, terms and phrases, when used in this division, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different
meaning:
1. "Actual taxable value" means the taxable value of taxable property at any time, as
calculated from the assessment role last equalized.
2. "Base taxable value" means the actual taxable value of all taxable property within an
urban renewal area or industrial district prior to the effective date of a tax increment
financing provision. This value may be adjusted as provided in MCA 7-15-4287 or 7-
15-4293.
3. "Incremental taxable value" means the amount, if any, by which the actual taxable value
at any time exceeds the base taxable value of all property within a tax increment
financing industrial district.
4. "Industrial district" means a tax increment financing industrial district created pursuant
to MCA 7-15-4299.
5. "Industrial infrastructure development project" means a project undertaken within or for
an industrial district that consists of any or all of the activities authorized by MCA 7-15-
4288.
6. "Tax increment" means the collections realized from extending the tax levies, expressed
in mills, of all taxing bodies in which the industrial district or a part thereof is located
against the incremental taxable value.
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7. "Tax increment provision" means a provision for the segregation and application of tax
increments as authorized by MCA 7-15-4282 through 7-15-4292.
8. "Taxes" means all taxes levied by a taxing body against property on an ad valorem
basis.
Sec. 2.06.12560. – Urban renewal, tax increment, and economic development Industrial
development
A. The city commission may, from time to time, create by ordinance an
districts; creation.
urban renewal, tax
increment financing, or economic development industrial district pursuant to title 7, chapter
15, parts 42 and 43, MCA, following a public hearing on the proposed district. In order for
land to be included in the proposed district, in addition to the requirements of Montana law,
1. Consist of an
it must:
continuous
2. Not be contained within the boundaries of another
area with an accurately described boundary;
industrial tax increment financing,
district or an urban renewal, or other economic development
3. Be zoned
district with a tax
increment provision;
in accordance for the purposes for which the district will be created and be in
compliance with the Bozeman Community Plan for light or heavy industrial use in
accordance with the Bozeman area master plan
4. Be determined to be
; and
in compliance with all other legal requirements.
B. The
deficient in
infrastructure improvements for industrial development.
industrial district must have as its purpose only those authorized by law. the
development of infrastructure to encourage the growth and retention of secondary, value-
added industries
C. Notice of the public hearing on the creation of a proposed
.
industrial
district shall be given in
accordance with the provisions of MCA 7-15-4215.
Sec. 2.06.1267
A. The
0. - Costs which may be paid from tax increments.
district’s tax increment received from an industrial district may be used to pay for the
following costs incurred by for an authorized urban renewal, tax increment, economic
development or authorized industrial infrastructure development project (in that district) as
provided by Title 7, Chpt. 15, Parts 42 and 43, MCA and as authorized by ordinance of the
city commission.
1. Land acquisition;
2. Demolition and removal of structures;
3. Relocation of occupants;
4. The acquisition, construction and improvement of infrastructure or industrial
infrastructure, which includes streets, roads, curbs, gutters, sidewalks, pedestrian malls,
alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage
treatment facilities, storm sewers, waterlines, waterways, water treatment facilities,
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natural gas lines, electrical lines, telecommunication lines, rail lines, rail spurs, bridges,
publicly owned buildings, and any public improvements authorized by MCA 7-12-41
through 7-12-45, 7-13-42, 7-13-43, and 7-14-47, and items of personal property to be
used in connection with improvements for which the foregoing costs may be incurred;
5. Costs incurred in connection with the redevelopment activities allowed under MCA 7-
15-4233;
6. Acquisition of infrastructure-deficient areas or portions thereof;
7. Administrative costs associated with the management of the industrial district;
8. Assemblage of land for development or redevelopment by private enterprises or public
agencies including sale, initial leasing, or retention by the municipality itself at its fair
value;
9. The compilation and analysis of pertinent information required to adequately determine
the infrastructure needs of secondary, value-adding industries in the industrial district;
10. The connection of the industrial district to existing infrastructure outside the industrial
district; and
11. The provision of direct assistance, through industrial infrastructure development
projects, to secondary, value-adding industries to assist in meeting their infrastructure
and land needs within the industrial district.
Sec. 2.06.1278
The tax increments received may be pledged for the payment of the principal of premiums,
if any, and interest on bonds which the city may issue for the purpose of providing funds to pay
for costs accrued pursuant to section 2.06.126
0. - Use of tax increments for bond payments.
7
0.
Sec. 2.06.1289
A. Each ordinance creating a
0. - Contents of ordinance.
n urban renewal, tax increment financing, or economic
development industrial
1. Designate each
district shall:
tax increment financing
2. Set forth a legal description of and map showing the boundaries of the
district by number;
industrial
3. Include a plan that describes the
district;
district or tax increment industrial development project
and contains provisions for undertaking and implementing the district or
4. Establish the base year for the calculation of tax increment within the
project; and
industrial
district.
Sec. 2.06.12901300. - Districts; tTermination of tax increment financing provisions.
A. An urban renewal or economic development district’s Ttax increment financing provisions
industrial districts will shall terminate pursuant to title 7, chapter 15, parts 42 and 43, MCA.
upon the later of:
1. The 15th year following the creation of the industrial district; or
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2. The payment or provision for payment in full or discharge of all bonds for which the a
tax increment has been pledged and the interest thereon.
B. After termination of the tax increment financing provision, all taxes shall be levied upon the
actual taxable value of the taxable property in the industrial district and shall be paid into
funds of the taxing bodies levying taxes within the industrial district.
Sec. 2.06.1301
The
0. - Administration.
urban renewal, tax increment financing, or economic development district programs
created pursuant to in this division shall be administered by the city commission. The
commission shall be advised on matters pertaining to the program by a the tax increment
financial industrial district board created pursuant to article 5, division 10 of this chapter and
may delegate specific authority to such board pursuant to ordinance or resolution
.
Sec. 2.06.1310. – North Park Economic Development District.
There hereby exists a Mandeville Farm Tax Increment Financing Industrial District
created pursuant to Ordinance 1684, hereafter to be known as the North Park Economic
Development District.
Sec. 2.06.1320. – Downtown Area Urban Renewal District.
There hereby exists a Downtown Area Urban Renewal District created pursuant to
Ordinance 1409.
Sec. 2.06.1330. – North Seventh Avenue Urban Renewal District.
There hereby exists a North Seventh Avenue Urban Renewal District created pursuant to
Ordinance 1685.
Sec. 2.06.1340. – Northeast Urban Renewal District.
There hereby exists a Northeast Urban Renewal District created pursuant to Ordinance
1655.
Sec. 2.06.1350.- South Bozeman Technology District.
There hereby exists a South Bozeman Technology District created pursuant to Ordinance
1844.
Secs. 2.06.1350 – 1440. – Reserved.
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Section 4
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this
ordinance are hereby repealed and all other provisions of the ordinances of the City of Bozeman not in
conflict with the provisions of this ordinance shall remain in full force and effect. Specifically, nothing
herein shall be construed to repeal: Ordinance 1336 creating a Tax Increment Financing Industrial District
Program; Ordinance 1685 creating the North Seventh Avenue Urban Renewal District, its urban renewal
plan, and its advisory board; Ordinance 1655 creating the Northeast Urban Renewal District, its urban
renewal plan, and its advisory board; Ordinance 1409 creating the Downtown Area Urban Renewal
District, it urban renewal plan, and its downtown Bozeman Improvement District Board; Ordinance 1684
creating the Mandeville Farm Tax Increment Financing Industrial District; or Ordinance 1844 creating the
South Bozeman Technology District. The provisions of the above ordinances pertaining to the powers,
duties, and composition of such board shall remain in effect until specifically repealed.
Section 5
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were incurred or
proceedings that were begun before the effective date of this ordinance. All other provisions of the
Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect.
Section 6
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be
adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this
ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal
or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole.
Section 7
Codification.
This Ordinance shall be codified as indicated in Section 2 - 3.
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Section 8
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
#### END OF ORDINANCE EXCEPT FOR SIGNATURE PAGE ####
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PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on
first reading at a regular session held on the _____ day of ________________, 2013.
____________________________________
SEAN A. BECKER
Mayor
ATTEST:
____________________________________
STACY ULMEN, CMC
City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of
Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2013. The effective date of this ordinance is __________, __, 2013.
_________________________________
SEAN A. BECKER
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
399