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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 2015 Work Plan and Budget for the North 7th Urban Renewal
Board (NSURB)
MEETING DATE: June 2, 2014
AGENDA ITEM TYPE: Special Presentation
RECOMMENDATION: Review attached materials, listen to Board presentation, ask questions
and provide direction on proposed FY 2015 North 7th Urban Renewal Board Work Plan and
Budget.
BACKGROUND: On April 3, 2014, the NSURB unanimously approved the attached FY15
Work Plan and Budget Proposal. The total amount of budgeted money for FY15 is $1,048,500.
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 FY15 Work Plan and
Budget Proposal will be adopted as part of the City of Bozeman Annual Budget.
Attachments: NSURB FY14 Annual Report and FY15 Work Plan and Budget Proposal
FY14 Budget Summary and FY15 Budget Proposal
Report compiled on: May 26, 2014
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 1
North 7th Avenue Urban Renewal Board
FY 2014 Annual Report and
FY 2015 Annual Work Plan and Budget Proposal
City Commission Meeting -June 2, 2014
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
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 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 2014 – ANNUAL REPORT
LIGHTING, GATEWAY AND SIDEWALK IMPROVEMENTS – STATUS
REPORT
Engineering Services for Phase 1 Lighting Design and Construction Administration Morrison-Maierle, Inc. will be paid a total of $24,721 for engineering services associated
with Phase 1 of the N. 7th Lighting project.
FY14 ENGINEERING SERVICES TOTAL: $24,721
NSURB’s FY14 AT-A-GLANCE
The NSURB completed 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. Engineering services began investigative work for Phases 2a and 2b of the
lighting project, identifying areas along the remaining corridor where easements will be
necessary.
Clarion Associations completed work on a N. 7th Avenue specific code analysis. The code analysis was used for the sign zoning code amendment proposed by the Board to the City
Commission.
One technical assistance N. 7th grant was awarded, in the amount of $7,200. See Table 1 further below on page 4 for FY2014 balance, revenue and expenditure
summary.
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 3
Construction Services for Phase 1 of Lighting Installation
Yellowstone Electric will be paid a total of $160,541 for the construction services associated with Phase 1 of the N. 7th Lighting project.
FY14 CONSTRUCTION SERVICES TOTAL: $160,541
Northwestern Electric Change Fees Miscellaneous charges to Northwestern Electric occurred while electricity was assigned
to the new lights.
FY14 NORTHWESTERN FEE TOTAL: $4,801
FY14N. 7TH LIGHTING PROJECT TOTAL: $190,063
N. 7th CODE ANALYSIS – STATUS REPORT
During FY2014, the NSURB paid $6,694 to Clarion Associates for their work on the N. 7th Avenue Specific Zoning Code project. Some of Clarion’s recommendations were included in the sign zoning code text amendment proposed to the City Commission.
FY14 N. 7TH CODE SERVICES TOTAL: $6,694
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: $7,200 FY14TAG TOTAL: $7,200
FY14 N 7TH REHAB TOTAL: $7,200
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 4
FY14 BUDGET
BALANCES FY13
TIF Balance (beginning cash balance) 981,677
Big Box Funds - BBF (beginning cash balance) 58,998
Total $1,040,675
REVENUES
Tax Interest Revenue (anticipated) 7,500
Tax Allocation Revenue (anticipated) 645,000
Total $652,500
EXPENDITURES
Lighting Phase 1 Engineering Services (TIF) 24,721
Lighting Phase 1 Construction Services (TIF) 160,541
Lighting Phase 1 Northwestern Change Fees (TIF) 4,801
Part-time staff from Community Development (TIF) 11,000
N 7th Rehab/Tech Assistance Grants (TIF) 7,200
N 7th Zoning Code Project - Clarion Consulting
(TIF) 6,694
Webside Domain Name Renewal (TIF) 77
N 7th Lighting Ceremony Consultant Meeting
(TIF) 75
Total $215,109
Remaining TIF Balance: $1,419,068
Remaining BBF Balance: $58,998
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 5
FY2015 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:
Lighting Project Engineering Services (phases 2a & 2b) - including Construction Administration and Easement Acquisition $ 210,000 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 Phase 2 of the N. 7th lighting project. FY2015 goal is to obtain all
necessary easements so construction may begin.
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… Lighting Project Construction Services $543,000
Construction services are needed to install the lights and any necessary sidewalk
connections. 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
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 6
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…
Corridor Gateway Project $77,000
The Board expressed an interest to design and install a corridor gateway marker per the guidance of the DCP. Professional design and construction costs are budgeted here. 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 $125,000
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
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 7
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 $36,000
The Board needs City staff assistance with District Plan implementation. The Board will
contribute half of the designated Planner’s salary so the staff person is able to help with the lighting project construction administration, consultant contracts, grant administration and board outreach efforts.
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 & Mailing $5,000
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.
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.
TIF District Consultant – Explore district expansion $2,500 The Board is interested in exploring the possibility of expanding the TIF district to include
land where a community convention center may be located.
Broadband Master Plan Contribution $10,000
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 8
The Board is interested in supporting the community broadband initiative as they believe it
would help with the district’s development. SUMMARY
See Table 2 below for the FY15 SUMMARY detailing the proposed expenditures.
FY15 BUDGET
BALANCES FY14
Beginning FY15 TIF Balance: $1,419,068
Beginning FY15 BBF Balance: $58,998
Total $1,478,066
REVENUES
Anticipated Interest 7,500
Anticipated Tax Allocation 645,000
Total: $652,500
EXPENDITURES
Lighting Project Phase 2a Engineering Services (TIF) 65,000
Lighting Project Phase 2b Engineering Services (TIF) 70,000
Lighting Project Light Installatiion -22 @$16,500/light (TIF) 363,000
Lighting Project Sidewalk Construction -4,500 ft @ $40/LF (TIF) 180,000
Lighting Project Construction Adminstration 55,000
Lighting Project Easment Acquisition 20,000
N. 7th Rehab/Tech Assistance Grants (TIF) 125,000
Corridor Gateway Project Professional Design (TIF) 12,000
Corridor Gateway Project Construction (TIF) 65,000
Part-time staff from Community Development (TIF) 36,000
Outreach (TIF) 2,500
Mailing/Advertising (TIF) 2,500
I-90 Bridge Enhancement (TIF) 25,000
Oak Street Shared Use Pathway - CTEP match (TIF) 15,000
TIFF District Expansion Consultant (TIF) 2,500
Contribution to City Broadband Master Plan (TIF) 10,000
Total: $1,048,500
Remaining TIF Available: $1,023,068
Remaining BBF Available: $58,998
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N. 7th Urban Renewal Board FY14 Annual Report and FY15 Budget Proposal - June 2, 2014 9
Actual Tax Increment Financing Funding fluctuates with on-going building and re-assessing of property values. The FY2015 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.
Report prepared May 26, 2014 by
Allyson Brekke, Neighborhood Planner
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North 7th Urban Renewal Board
FY14 Budget Summary and FY15 Budget Proposal
FY14 BUDGET FY15 BUDGET
BALANCES FY13 BALANCES FY14
TIF Balance (beginning cash balance)981,677 Beginning FY15 TIF Balance:$1,419,068
Big Box Funds - BBF (beginning cash balance)58,998 Beginning FY15 BBF Balance: $58,998
Total $1,040,675 Total $1,478,066
REVENUES REVENUES
Tax Interest Revenue (anticipated)7,500 Anticipated Interest 7,500
Tax Allocation Revenue (anticipated)645,000 Anticipated Tax Allocation 645,000
Total $652,500 Total:$652,500
EXPENDITURES EXPENDITURES
Lighting Phase 1 Engineering Services (TIF)24,721 Lighting Project Phase 2a Engineering Services (TIF)65,000
Lighting Phase 1 Construction Services (TIF)160,541 Lighting Project Phase 2b Engineering Services (TIF)70,000
Lighting Phase 1 Northwestern Change Fees (TIF)4,801 Lighting Project Light Installatiion -22 @$16,500/light (TIF)363,000
Part-time staff from Community Development (TIF)11,000 Lighting Project Sidewalk Construction -4,500 ft @ $40/LF (TIF 180,000
N 7th Rehab/Tech Assistance Grants (TIF)7,200 Lighting Project Construction Adminstration 55,000
N 7th Zoning Code Project - Clarion Consulting (TIF 6,694 Lighting Project Easment Acquisition 20,000
Webside Domain Name Renewal (TIF)77 N. 7th Rehab/Tech Assistance Grants (TIF)125,000
N 7th Lighting Ceremony Consultant Meeting (TIF)75 Corridor Gateway Project Professional Design (TIF)12,000
Corridor Gateway Project Construction (TIF)65,000
Part-time staff from Community Development (TIF)36,000
Outreach (TIF)2,500
Mailing/Advertising (TIF)2,500
I-90 Bridge Enhancement (TIF)25,000
Oak Street Shared Use Pathway - CTEP match (TIF)15,000
TIFF District Expansion Consultant (TIF)2,500
Contribution to City Broadband Master Plan (TIF)10,000
Total $215,109 Total:$1,048,500
Remaining TIF Balance:$1,419,068 Remaining TIF Available:$1,023,068
Remaining BBF Balance: $58,998 Remaining BBF Available:$58,998
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