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HomeMy WebLinkAboutNorth Seventh Urban Renewal Board (NSURB) 2014 Work Plan and Budget_16 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Allyson Brekke, Neighborhood Planner Wendy Thomas, Community Development Director Anna Rosenberry, Finance Director SUBJECT: FY 2014 Work Plan and Budget for the North 7th Urban Renewal Board (NSURB) MEETING DATE: June 3, 2013 AGENDA ITEM TYPE: Special Presentation RECOMMENDATION: Review attached materials, listen to Board presentation, ask questions and provide direction on proposed FY 2014 North 7th Urban Renewal Board Work Plan and Budget. BACKGROUND: On May 2, 2013, the NSURB unanimously approved the attached FY14 Work Plan and Budget Proposal. The total amount of budgeted money for FY14 is $279,500. The NURB proposes a Work Plan and Budget and submits a report on an annual basis as per Section 7-15-4237 of the Montana Code Annotated 2009: “(1) An agency authorized to transact business and exercise powers under this part and part 43 shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. (2) The report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of the fiscal year.” UNRESOLVED ISSUES: None at this time. ALTERNATIVES: As suggested by the City Commission FISCAL EFFECTS: If approved by the City Commission, the NSURB FY14 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman Annual Budget. Attachments: NSURB FY13 Annual Report and FY14 Work Plan and Budget Proposal Report compiled on: May 20, 2013 125 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 1 North 7th Avenue Urban Renewal Board FY 2013 Annual Report and FY 2014 Annual Work Plan and Budget Proposal City Commission Meeting -June 3, 2013 In November 2006, the City of Bozeman designated the N. 7th Ave Tax Increment Finance District (TIFD), under which incremental increases in taxes due to redevelopment are accumulated in a TIFD fund. The stated goals and objectives of the District Plan were as follows: MISSION and VISION: The N. 7th Urban Renewal District Plan is the City’s response to remedy the conditions of blight found in the August 2005 report through thoughtful redevelopment of the Corridor. The following Corridor Goals are taken from the Design and Connectivity Plan (DCP). An expanded description of the intent of each goal is found in the DCP Chapter 2. Corridor Goals A basic goal is to have an active and exciting corridor that is attractive with a distinct character. A strategy for achieving this goal is to improve the experience for the user by creating safe attractive walkways and streets and by providing buildings and landscaping that are of interest to users and passersby. Several key strategies should be followed: 1. Provide a distinct identity for the corridor 2. Develop the corridor as a focus for commercial and entertainment activities that serve residents and visitors alike 3. Strengthen the corridor as a neighborhood service center 4. Provide mixed use development 5. Clearly define gateways at key locations along the corridor 6. Improve vehicular, bicycle and pedestrian circulation along the corridor 7. Provide pedestrian connections to adjacent neighborhoods 8. Establish a way-finding system 9. Guide new development along the corridor such that it improves the aesthetic experience 10. Coordinate public and private improvements 11. Strengthen connections between complementary uses 12. Provide flexible public space along the corridor GUIDING PRINCIPLES In addition to the specifically stated goals for the District the following Guiding Principles have been adopted to provide a basis for decision making over the life of the District. These principles should be applied to any development program or other activity that will affect the District: 1. Ensure the health safety and security of the District 2. Balance commerce and livability in the District within the mixed use framework 3. Public open space is essential to a healthy and appealing urban environment 4. The costs of projects and programs shall be weighed against their benefits to the District 5. Private property shall not be acquired for other private use through the eminent domain process in the implementation of any aspect of this plan 6. The City shall not limit its vision for the District improvements to monies available solely through the TIF funding 126 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 2 7. Projects shall consider impacts on adjacent neighborhoods 8. The city shall consider the impact on the District of all projects undertaken outside of the District FISCAL YEAR 2013 – ANNUAL REPORT LIGHTING, GATEWAY AND SIDEWALK IMPROVEMENTS – STATUS REPORT Engineering Services for Phase 1 Lighting Design and Construction Administration During FY2013, Morrison-Maierle, Inc. will be paid a total of $140,862 for engineering services associated with Phase 1 of the N. 7th Lighting project. FY13 ENGINEERING SERVICES TOTAL: $140,862 NSURB’s FY13 AT-A-GLANCE The NSURB moved forward with the Phase 1 of Lighting Design and Construction Administration and Lighting Installation for N. 7th Avenue between Interstate 90 to Tamarack Street. The installation of new light fixtures for the corridor was identified as one of their top three priorities for District Plan Implementation in 2008. The NSURB recognizes that new light fixtures will help establish a distinct identity for the corridor, define key intersections, improve vehicular and pedestrian safety and improve the aesthetic experience of the corridor. With the installation of the lights, there are some Northwestern Service line application fees being triggered. The total cost of these fees is unknown at this time but are estimated at 25,000 in Table 1 further below. NSURB also moved forward on the N. 7th Avenue specific code analysis to identify areas of the current City zoning code and regulatory documents that might be negatively affecting the ability of property/business owners to redevelop along the corridor. The code analysis will be completed by Clarion Associates mid June 2013. The final draft of a code amendment that Clarion produces is expected be presented to the City Commission for consideration of adoption in FY2014. NSURB will be considering two or more N.7th Rehab and Technical Assistance grant applications at their June 6, 2013 meeting. No grants have been awarded for the remaining year. Because of the date of the Board’s consideration of the grants, the awarded grant money is an estimate in Table 1 further below. See Table 1 further below for FY2013 balance, revenue and expenditure summary. 127 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 3 Construction Services for Phase 1 of Lighting Installation Yellowstone Electric will be paid a total of $574,485 for the construction services associated with Phase 1 of the N. 7th Lighting project. FY13 CONSTRUCTION SERVICES TOTAL: $574,485 Light Pole Purchase for N. 7th Bridge Light poles were purchased for the new fixtures on the N.7th interstate bridge being constructed. Montana Department of Transportation was reimbursed an amount of $63,510 for the pole cost. FY13 LIGHT POLE PURCHASE TOTAL: $63,510 Northwestern Energy Application Fees (Estimate) Application fees and service line fees required to establish power to the light poles. Northwestern will be paid a total of $25,000. FY13 NEW APPLCATION/SERVICE FEE TOTAL: $25,000 FY13 N. 7TH LIGHTING PROJECT TOTAL: $803,857 N. 7th Bus Shelter (in front of Van’s IGA) A small amount of money beyond the grant received for work remained to be paid for the N. 7th bus shelter in front of Van’s IGA. FY 13 BUS SHELTER TOTAL: $500 N. 7th CODE ANALYSIS – STATUS REPORT During FY2013, the NSURB will pay $20,000 to Clarion Associates for their work on the N. 7th Avenue Specific Zoning Code project. The code is expected to be presented to the City Commission for consideration of adoption in FY2014. FY13 N. 7TH CODE SERVICES TOTAL: $20,000 N. 7th REHAB GRANTS – STATUS REPORT N 7TH Rehab – Technical Assistance Grants (TAG) 1) Billis Fine Art Studio and Gallary – 602 W. Hemlock Street Grant amount: $7,500 (requested – not yet approved) FY13 TAG TOTAL: $7,200 N 7TH Rehab – Grants for Demolition and/or Façade/Site Improvement and/or Public Right-of-Way Improvements Construction Activities 1) Cellular Plus - 606 N. 7th Avenue Grant amount: $20,000 (estimated – application not received at time of report) 128 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 4 FY13 DEMO AND FAÇADE/SITE TOTAL: $20,000 FY13 N 7TH REHAB TOTAL: $27,200 (estimated – might not be awarded until FY14) FY13 SUMMARY – Table 1 BALANCES FY13 TIF Balance (beginning cash balance) 860,141 Big Box Funds - BBF (beginning cash balance) 58,998 Total $919,139 REVENUES Tax Interest Revenue (anticipated) 5,000 Tax Allocation Revenue (anticipated) 500,000 Legislature Reimbursement (actual - FY13 only) 9,534 Total $514,534 EXPENDITURES Lighting Project Phase 1 (TIF) 803,857 N 7th Zoning Code Analysis (TIF) 20,000 N 7th Rehab Grants (TIF) 27,200 N 7th Bus Shelter (TIF) 500 Newspaper Advertising/Mailings (TIF) 311 Total $851,868 Beginning FY14 TIF Balance: $522,807 Beginning FY14 BBF Balance: $58,998 129 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 5 FY2014 BUDGET PLAN AND REQUEST FOR APPROVAL In 2008, the Board began implementing the North Seventh Urban Renewal District Plan by establishing their top three priorities for the District: improving sidewalks, lighting and landscaping along the N. 7th Avenue corridor. During the next fiscal year, the NSURB proposes continuation of the redevelopment incentive program (N7Rehab) and focusing funds towards the installation of new street lights and related improvements in a portion of the corridor. The NSURB recommends allocating their available funds as follows: Engineering Services $ 100,000 Engineering services are needed to assist the Board with three of the District goals: • Provide a distinct identity for the corridor • Clearly define gateways at key locations along the corridor, and • Improve vehicular, bicycle and pedestrian circulation along the corridor. Engineering services will be hired to provide Lighting Design and Construction Administration for N. 7th Avenue between Juniper Street and Peach/Villard Streets. A part of the engineering analysis will be to identify areas along this section of N. 7th corridor that are requiring easements and other potential right-of-way improvements that effect the implementation of lighting construction. The goal would be to get to 100% design of phase 2 of lighting installation so that construction can immediately occur in FY15. The installation of new light fixtures for the corridor was identified as one of their top three priorities for District Plan Implementation in 2008. The NSURB recognizes that new light fixtures will help establish a distinct identity for the corridor, define key intersections, improve vehicular and pedestrian safety and improve the aesthetic experience of the corridor. It is an allowable expense under Section 7-15-4288, MCA which states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure…; and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… Grants $100,000 Façade and Site Rehab $25,000 Technical Assistance $25,000 Demolition $25,000 Public Right of Way Improvements $25,0001 1 The Board will have the flexibility of changing the budgeted amounts for each grant category throughout the fiscal year. 130 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 6 This funding proposal is for the N7Rehab redevelopment incentive program to encourage developers to build on parcels along the N. 7th Avenue corridor. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was created to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. The program was approved by Resolution 4307 and is administered by the NSURB. N7Rehab meets the mission and goals of the District Plan by • guiding new development along the corridor such that it improves the aesthetic experience and by assisting in; and • coordinating public and private improvements. These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, which grants the City the power to formulate and coordinate a workable program as specified in Section 7-15-4209, MCA, which states : (1) A municipality may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. (2) Such workable program may include, without limitation, provision for: (b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements; by encouraging voluntary rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas or portions thereof. Additionally, Section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… Part-time staff and other Professional Services $11,000 The Board needs City staff assistance with District Plan implementation. A small increase is planned due to the change from a Planner I to Planner II City staff member. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” Outreach $3,500 The Board has requested money for public noticing and outreach events in the District. The purpose of these outreach events is to inform property owners and the public of the District Plan and the N7Rehab program. 131 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 7 This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” Interstate 90 Bridge Enhancement $25,000 The NSURB plans to work with the Montana Department of Transportation to improve the visual aesthetics of the I-90 bridge. A number of opportunities have been discussed including installing landscaping enhancements and/or stonework on the end caps of the bridge to extend and define the District’s character. The NSURB has also discussed installing a custom made metal sign on the bridge face, visible to I-90 motorists. See “Engineering Services” above for District Plan goals and applicable sections of the MCA. Oak Street Shared Use Path (CTEP Match) $15,000 The Oak Street Shared Use Path project was recommended by the Bozeman CTEP committee and is a joint project between the City and County. Completion of the project will fill in missing sections of pedestrian facilities on the south side of Oak Street between N. 7th and N. Rouse Avenues. A 10 foot wide asphalt path is planned. The NSURB has pledged this money in partial fulfillment of the CTEP cost share requirement for the City’s portion within the District. Planning/Attorney Consultant – N. 7th Specific Zone Code/Overlay Adoption $25,000 The proposed code changes by Clarion will need to be adopted through an official amendment process. Depending on the City Commission’s priorities, City Staff may or may not be available to implement the code amendment process. This would then create a need for an outside planning/attorney consultant to perform the amendment process. District Maintenance $30,000 The NSURB is allowed to use the remaining Big Box Funds district maintenance items, primarily including landscape maintenance. The Board has a goal to purchase trees for installation in the medians along N. 7th where vegetation has existed in the past or currently. This type of work follows the guidelines District Plan’s Design Objectives. The Design Objectives for the corridor with include • landscape medians to soften the hardscape • promote the installation of street trees • provide signage that indicates areas of interest such as the University, the Museum of the Rockies and Downtown 132 N. 7th Urban Renewal Board Annual Report and FY2014 Budget Proposal June 3, 2013 8 SUMMARY See FY14 SUMMARY below and Table 2 detailing the proposed FY2014 fund expenditure. Actual Tax Increment Financing Funding fluctuates with on-going building and re-assessing of property values. The FY2014 anticipated TIF amount may be different than estimated in the attached report. Appeals to property valuations are currently under review may result in a reduction in available funds. The NSURB will update their budget on an as-needed basis and with approval from the City Commission. FY14 SUMMARY – Table 2 BALANCES FY14 TIF Balance: 522,807 Big Box Funds: 58,998 Total: $581,505 PROPOSED FY14 BUDGET Anticipated Revenues Anticipated Interest 5,000 Anticipated Tax Allocation 500,000 Total: $505,000 Budgeted Expenditures Lighting Phase 2 Engineering Services (TIF) 100,000 N. 7th Grants (TIF) 100,000 Part-time staff and other professional services (TIF) 11,000 Outreach (TIF) 3,500 I-90 Bridge Enhancement (TIF) 25,000 Oak Street Shared Use Pathway - CTEP match (TIF) 15,000 Planning/Attorney Consultant N. 7th Code Adoption (TIF) 25,000 District Maintenance (BBF) 30,000 Total: $309,500 Remaining TIF Available: $748,307 Remaining BBF Available: $28,998 Report prepared May 20, 2013 by Allyson Brekke, Neighborhood Planner 133 North 7th Urban Renewal Board FY13 Budget Summary and FY14 Budget ProposalFY13 BUDGET FY14 BUDGETBALANCESFY13BALANCESFY14TIF Balance (beginning cash balance) 860,141 Beginning FY14 TIF Balance: $522,807Big Box Funds - BBF (beginning cash balance) 58,998 Beginning FY14 BBF Balance: $58,998Total$919,139Total$581,805REVENUES REVENUESTax Interest Revenue (anticipated) 5,000 Anticipated Interest 5,000Tax Allocation Revenue (anticipated) 500,000 Anticipated Tax Allocation 500,000Legislature Reimbursement (actual - FY13 only) 9,534Total $514,534 Total: $505,000EXPENDITURES EXPENDITURESLighting Project Phase 1 (TIF) 803,857 Lighting Phase 2 Engineering Services (TIF) 100,000N 7th Zoning Code Analysis (TIF)20,000N. 7th Grants (TIF)100,000N 7th Rehab Grants (TIF)27,200 Part-time staff and other professional services (TIF) 11,000N 7th Bus Shelter (TIF)500 Outreach (TIF) 3,500Newspaper Advertising/Mailings (TIF) 311 I-90 Bridge Enhancement (TIF) 25,000Oak Street Shared Use Pathway - CTEP match (TIF) 15,000Planning/Attorney Consultant N. 7th Code Adoption (TIF)25,000District Maintenance (BBF) 30,000Total $851,868 Total: $309,500Remaining TIF Balance:$522,807Remaining TIF Available:$748,307Remaining BBF Balance: $58,998Remaining BBF Available:$28,998134