HomeMy WebLinkAboutNortheast Urban Renewal Board (NSURB) 2014 Work Plan and Budget_17
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 Northeast Urban Renewal
Board (NURB)
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 Northeast Urban Renewal Board Work Plan and
Budget.
BACKGROUND: On April 2, 2013, the NURB unanimously approved the attached FY14
Work Plan and Budget Proposal. The total amount of budgeted money for FY14 is $92,400,
with a running accumulated budget total for future projects at $271,312 (including carry over
from previous years and not including the undesignated reserve). 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 NURB FY14 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman Annual Budget.
Attachments: NURB FY13 Annual Report and FY14 Work Plan and Budget Proposal
Report compiled on: May 20, 2013
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59771
NORTHEAST URBAN RENEWAL BOARD FY 2013 ANNUAL REPORT AND
FY 2014 WORK PLAN AND BUDGET PROPOSAL June 3, 2013 - BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted ordinance 1655 which formally enacted the Northeast
Urban Renewal Plan. The stated mission of the plan and general goals are as follows:
DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight]
Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the Northeast Urban Renewal District (NURD) the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan
envisions a District with diversity of housing businesses and amenities, it intends to maintain the
unique ambiance and historic character of the District”.
Nine principles were developed for the plan for the plan. Each of the principles has one or more goals associated with the plan some of which specifically relate to this work plan others represent general
objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows:
GENERAL GOALS:
Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.
Provide public utilities to the area efficiently in ways that are not visually or physically
obtrusive.
Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.
Harmonize commercial and industrial development with residential quality of life.
New structures should be designed and built keeping in mind the public values of
durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a
public partner in development, the community ought to strongly encourage excellence
in urban design as a basis of partnership.
Promote sustainable building practices and design within the district
Procure new land for park and open space
Improve landscaping in existing public spaces
Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to
take private property for private use in the implementation of an urban renewal project
or similar redevelopment plan.
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Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by
giving a high priority to the Northeast District in its capital improvements plan.
Work with neighborhoods and businesses to ensure actions taken in the district are
compatible with adjacent developed areas.
Work with the City to ensure actions taken outside of the District are compatible with
projects inside of the District
BACKGROUND In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their
three funding priorities: 1) Parks, Trails and Green Space; 2) Infrastructure and 3) Neighborhood
Development Plan.
2013 AT-A-GLANCE In FY 2013, the Board continued to work on the priorities outlined above. While the special design
standard for East Peach Street within the District was finalized and approved in FY12, this Board
awaits adoption of the ordinance which enacts that design standard. Once the street design has been
adopted by ordinance, this Board will be able to proceed with improvements as opportunities arise. Staff assisted the Board with updating of a Montana Fish, Wildlife and Parks Recreational Trails
grant application for the Aspen Street Pedestrian Bridge. The FWP grant was not awarded, and the
Board continues to seek funding opportunities for the bridge. The Board continued to demonstrate
their commitment to preserving the District’s historic character by offering financial assistance to
the property owner for the completion of the Historic Brewery development project on North Wallace Avenue. The Board also considered whether to recommend a zone code amendment that
would limit commercial or industrial uses within the district during evening hours.
The National Trust for Preservation grant for analysis of the Northern Pacific Passenger Depot
building on Front Street was approved and the City entered into a contract with CTA Architects and Engineers. It is anticipated that the work will be completed this fiscal year. The results of that
analysis will be available to the City and to any potential applicant who may wish to propose reuse
of the facility.
MOVING FORWARD – FY2014 The Board continues to support opportunities to work with Montana Rail Link and Burlington
Northern Santa Fe on preservation projects for the Northern Pacific Passenger Depot. Additional
TIF funding has been contributed to the pedestrian bridge project. With assistance from City
Planning staff, the Board continues to fine-tune their neighborhood plan and redevelopment
incentives. The Board will seek funding opportunities for completion of E. Peach Street “complete street” improvements and pursue partnerships with developers to complete portions of the project.
Adoption of an ordinance by the City Commission will allow for implementation of the proposed
design for E. Peach Street, which will provide new sidewalks and boulevards with vegetated storm
water detention swales on the north side of E. Peach Street and will designate the right-of-way as a
sharrow (shared right-of-way) for bicycles and vehicles. The Board has set aside additional funding for engineering design services to analyze the potential for similar improvements on E. Tamarack
Street, Front Street and N. Ida Avenue and made engineering services for those streets one of its top
priorities for the year.
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In light of a presentation by a representative from the Bozeman Creek Enhancement Committee, the
Board set aside monies to use as a match for those property owners wishing to enhance the
streambank adjacent to their properties.
The Board also budgeted monies for further stabilization of the Northern Pacific Passenger Depot on Front Street. If the Board is able to obtain approval from the appropriate railroad company, the
Board would aim to complete a rehabilitation project that will further stabilize the depot building.
PRIORITIES I, II & III– IN DETAIL
I. PARKS, TRAILS AND GREENSPACE
District Trails and Depot Pocket Park Area Maintenance $ 5,000
The original trail, landscaping and bench installation were completed in 2012. Landscaping
maintenance, including mowing and weed spraying, is on-going. Water is provided, as needed, from an adjacent property. The Board proposes continuing the operation of the temporary irrigation system, weed control and general maintenance. Weed control and general maintenance
may also be needed in other District trail areas. The Board is also considering additional
irrigation improvements to enhance maintenance possibilities as well as an aggressive program to
eliminate knapweed in the East Aspen Street right-of-way. Pedestrian Bridge $ 40,000
Board members previously identified the need for a pedestrian bridge at the terminus of E. Aspen
Street and the N. Church Avenue trail east of N. Rouse Avenue. E. Aspen Street comes to an end
at Bozeman Creek. The use along this section of E. Aspen Street is largely residential with a retail store (butcher shop) at the southeast corner of N. Rouse Avenue and E. Aspen Street. During
FY11, the NURB received positive feedback from the Northeast Neighborhood Association
(NENA) on the project and Gaston Engineering completed a feasibility study and cost estimates.
Construction of the bridge is estimated between $52,470 and $57,715. The budgeted amount is
for construction. The budgeted amount does not cover the full cost of the bridge. The NURB continues to seek additional funding resources. Also, in light of the presentation from the
Bozeman Creek Enhancement Committee, the Board has determined it wishes to leave its options
for location of the pedestrian bridge open, thus ensuring the best pedestrian crossing can be
provided.
Streambank Restoration $ 10,000
The Board recognizes the importance of enhancing the natural amenities within the district,
including the Bozeman Creek corridor. The Bozeman Creek Enhancement Committee has
studied the entire length of the creek as it runs through the city, and has assigned a category to
each segment of the creek based on its current state and the level of desired improvements. The Board has set aside monies to use as a match for those property owners wishing to enhance the
streambank adjacent to their properties.
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Priority I Total $ 55,000
Priority I Rationale: The park, trail and greenspace improvements meet Guiding Principle 4 and Goals A & B under Principle 4 of the adopted Northeast Urban Renewal District Plan:
• Guiding Principle, “Public open space is essential to a healthy and appealing urban environment”
• Goal A, “Procure new land for parks and public open space”
• Goal B, “Improve landscaping in existing public spaces.”- to include enhancing
boulevards and public rights-of-way by planting and maintaining trees where appropriate and controlling weeds
The spending of TIF funds on park and open space improvements is allowed under 7-15-4255,
Authority to provide or contract for services related to urban renewal, of the Montana Code
Annotated. Specifically, item (1b) states that “Every municipality shall have power to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements”
II. INFRASTRUCTURE
Poor pedestrian connectivity within the District is well documented. Lack of street improvements
including missing curb, gutter, pavement and sidewalks creates an unwelcoming and potentially unsafe environment for pedestrians and bicyclists. A lack of storm water drainage facilities leads
to the pooling of water in public rights-of-way, encouraging pedestrians to walk in the street and
emphasizing the need for street improvements. The District has a historic mix of light
manufacturing and residential uses creating a more urban environment on the streets, especially
during business hours. Modest improvements to pedestrian facilities to create safer more welcoming routes for pedestrians will reduce conflict between users. The lack of street
delineation/improvements and storm water facilities has caused an unknown number of
individuals to use some sections of the District as dumping grounds for unwanted appliances and
furniture. Street improvements coupled with improvements to trails and parks and the
landscaping of public spaces will improve conditions for pedestrians and bicyclists and reduce, if not eliminate, dumping in the public right-of-way.
Making improvements to sidewalks on unimproved streets comes with some difficulty especially
if elevation differences are present across the width of the right-of-way and if a need to improve
storm water drainage is warranted as well. What seems like a rather simple project turns into a large scale street improvement project. Without additional information, moving forward on these
improvements is difficult, so survey and design is the first step. Regarding design, the Board
recognizes that creative solutions are needed to enhance the public right-of-way for two very
different user types in the District. In support of improvements to these streets, the Board has
allocated a portion of the FY14 budget to the following deficient street sections in the District:
E. Peach Street – Sidewalks, Storm Water control, Landscaping
& Sharrow Construction $ 88,912
Survey and designs for E. Peach Street improvements have been completed. The Board approved
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the designs in November 2011. The Pedestrian and Traffic Safety Board and the Bozeman Area
Transportation Coordinating Committee have reviewed the proposed design standard. An
ordinance is being prepared by the City Attorney’s office for the City Commission’s consideration. If approved, this “special” design standard will be adopted for E. Peach Street
within the Northeast Urban Renewal District. The total project cost is estimated at $321,000. As
funding and/or funding partnerships become available, the Board will implement construction.
E. Tamarack St., Front St. and N. Ida Ave survey and design $ 90,000 The Board wants to evaluate E. Tamarack, Front Street and Ida Avenue for “complete street”
improvements. N. Ida Avenue may be particularly challenging since the right-of-way is extremely
narrow and utilized by trucks coming from adjacent and nearby light manufacturing businesses.
Creative solutions are necessary to improve these streets as multi-modal connectors to District trails, the Deport Park, and hopefully in the future, the re-developed Northern Pacific Passenger Depot building.
Priority II Total $ 178,912
Priority II Rationale: The infrastructure improvements meet Guiding Principle 1 and Goals A & B under Principle 1 of the adopted Northeast Urban Renewal District Plan:
• Guiding Principle, “Ensure the health, safety, and security of the District”
• Goal A, “Outdated or insufficient infrastructure should be repaired, replaced or otherwise improved.”
• Goal B, “Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.”
The spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288,
MCA which states, “Costs that may be paid by tax increment financing” allows the municipality
to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of
occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs
incurred in connection with the redevelopment activities allowed under 7-15-4233…
III. NEIGHBORHOOD DEVELOPMENT PLANNING
Redevelopment Incentives $ 15,000
The NURB has set aside funds to offset the costs of upgrading public infrastructure in
conjunction with redevelopment activities which implement the District’s guiding principles
emphasized in the District’s Neighborhood Plan. No one has applied for use of these funds, so the Board has asked staff to identify a way to more aggressively advertise the availability of these
monies.
Northern Pacific Passenger Depot Stabilization Project $ 15,000
The Northeast Urban Renewal Board recognizes the importance of the depot building within the
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district. Stabilization of the depot to protect the integrity of the structure has been identified as a
top priority, since it is a major contributing factor to the historic nature of the district. If
permission can be obtained from the railroad, the Board has expressed its strong interest in taking any necessary steps to preserve the structure.
Priority III Total $ 30,000
Priority III Rationale: Neighborhood Development Planning meets Guiding Principle 2 and the Goal under Principle 2 of the adopted Northeast Urban Renewal District Plan:
• Guiding Principles, “Balance commerce and livability in the District within the mixed-use framework” AND “Honor the unique character and vitality of the District”
• Goal, “Harmonize commercial and industrial development with residential quality of
life”
• Implementation Action, “Where historic structures are affected by public or private development, seek out the advice and assistance of local, state, or federal historic
preservation professionals for opportunities to renovate existing historic structures.”
This funding proposal is for Neighborhood Plan implementation activities which are meant to encourage developers to build on parcels within the Northeast Urban Renewal District. It
recognizes the complexities of redeveloping parcels which have existing substandard buildings
and infrastructure and was created to offset the costs of those complexities with grants for those
proposing work which eliminates blight and advances the implementation of the District Plan.
Board proposes to award grants to reimburse developers for costs allowable under Section 7-15-4288, MCA, but limited to public infrastructure.
These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA,
which grants the City the power to formulate and coordinate a workable program as specified in
Section 7-15-4209, MCA, which states : (1) A municipality may formulate a workable program for utilizing appropriate private and public resources:
(a) to eliminate and prevent the development or spread of blighted areas;
(b) to encourage needed urban rehabilitation;
(c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be
suitably employed to achieve the objectives of such workable program.
(2) Such workable program may include, without limitation, provision for:
(b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion,
providing parks, playgrounds, and other public improvements; by encouraging voluntary rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating
structures; and
(c) the clearance and redevelopment of blighted areas or portions thereof.
Additionally, Section 7-15-4288, MCA states, “Costs that may be paid by tax increment
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Northeast Urban Renewal Board FY14 Annual Work Plan and Budget 7
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…
IV. ADMINISTRATION
Part-time staff and other Admin Services $ 7,400
The Board needs staff to assist with District Plan implementation. $5,000 is transferred to the
Department of Planning to offset the cost of staff time used to assist the NURB with District Plan
implementation. $2,400 is budgeted to cover administrative services. This money is a permissible
use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the
managements of the urban renewal area…”
The Board has requested money for public noticing and mailings in the District. The purpose of
the noticing and mailings is to inform property owners about and request feedback on NURB implementation and activities.
This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised
by urban renewal agency or authorized department…(f) to disseminate blight clearance and
urban renewal information;”
Undesignated Reserve $ 68,948
In the past, the amount of increment the District received was rather dynamic. As a result, not all
of the monies received to date have been budgeted, and the Board has not earmarked all of the
monies received to date plus the anticipated FY14 revenues. As a result, the balance is being placed in an Undesignated Reserve, with those monies to be used to cover any shortages in
funding for items listed above. Based on tax increment revenues projected by the Montana
Department of Revenue, staff has included the same amount of revenues as projected for FY13.
Any new information received prior to the City Commission hearing will be forwarded to the
Commission, if time allows, or provided at the meeting.
SUMMARY: FY 14 PROPOSED BUDGET Priority I $ 55,000
Priority II $ 178,912
Priority III $ 30,000 Staff time $ 5,000 Noticing and Administrative Services $ 2,400 Undesignated Reserve $ 68,948
Overall Budget Total $ 340,260
Enclosed: FY13 Budget Summary and FY 14 Budget Proposal
Report prepared by: Robin Sullivan, NSURB Administrative Assistant
(Final Revisions on May 20, 2013 by Allyson Brekke, Neighborhood Planner
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NORTHEAST URBAN RENEWAL BOARDFY13 Budget Summary and FY14 Budget ProposalTotal FY08-12REVENUES: To date Anticipated Total Projected TotalTax Increment $259,449.00 $53,685.00 $25,315.00 $79,000.00 $79,000.00Interest $6,366.00 $823.00 $823.00 $1,646.00 $1,600.00Park Improvement Grant - Depot Park $20,000.00HB645 - Depot Park $2,130.00Donation - Depot Park $2,000.00National Trust Grant $5,000.00 $5,000.00Total Revenues $289,945.00EXPENDITURES:General - Admin $27,005.00 $2,798.00Depot Park $28,687.00E Peach Street $36,941.00N Church/E Aspen Trails $15,500.00Total Expenditures $108,133.00Balance $181,812.00 $233,522.00$31,138.00 $85,646.00$80,600.00 $340,260.00BUDGETED - FY2013: Amount Spent Projected Exp Balance Amount Budgeted - FY14 Total BudgetedPriority I Trails/Park Maintenance $5,000.00 $482.00 $220.00 $4,298.00 $5,000.00 $5,000.00 Pedestrian Bridge $30,000.00 $30,000.00 $10,000.00 $40,000.00 Streambank Restoration$10,000.00 $10,000.00Priority II E Peach Street $88,912.00 $88,912.00 $88,912.00 E Tamarack/Front/N Ida $45,000.00 $45,000.00 $45,000.00 $90,000.00Priority III Redevelopment Incentives $15,000.00 $15,000.00 $15,000.00 Depot Structural Analysis $20,000.00 $20,000.00 $0.00 $0.00 Depot Stabilization$15,000.00 $15,000.00Administrative Staff Time $5,000.00 $1,641.00 $3,359.00 $0.00 $5,000.00 $5,000.00 Noticing/Admin Services $2,400.00 $675.00 $700.00 $1,025.00 $2,400.00 $2,400.00 Undesignated Reserve$68,948.00 $68,948.00Total Budgeted $211,312.00 $2,798.00 $24,279.00 $184,235.00 $161,348.00 $340,260.00FY2013 FY2014144