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HomeMy WebLinkAboutNURB FY2015 Work Plan and Budget 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 Northeast Urban Renewal Board (NURB) 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 Northeast Urban Renewal Board Work Plan and Budget. BACKGROUND: On April 1, 2014, the NURB unanimously approved the attached FY15 Work Plan and Budget Proposal. The total amount of budgeted money for FY15 is $321,312, (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 FY15 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman Annual Budget. Attachments: NURB FY15 Work Plan and Budget Proposal NURB FY15 Budget Final Report compiled on: May 26, 2014 250 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 1 59771 NORTHEAST URBAN RENEWAL BOARD BUDGET FY 2015 PROPOSAL TO THE BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted Ordinance No. 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. 251 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 2  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 Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. 2014 AT-A-GLANCE In FY 2014, the Board continued to work on these priorities. 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. Although the street design has not been adopted by ordinance, sharrows (shared right-of-way) for bicycles and vehicles have been painted on the roadway. In FY14, the Board embarked on special design standards for East Tamarack Street/Front Street/North Ida Avenue within the district with the assistance of Morrison- Maierle. As this process was undertaken, the Board concurred with staff’s recommendation that once these special design standards have received Commission approval, then all of the special design standards forwarded to the Commission in a single ordinance. Once the street design has been adopted by ordinance, this Board will be able to proceed with improvements as opportunities arise. The Board continued to demonstrate its commitment to preserving the District’s historic character by monitoring any proposals that might impact historic properties. It was particularly interested in the Brewery Wall on North Wallace Avenue because of the negative impacts that its demolition would have on the Brewery Historic District. The Board also continues to monitor any potential for preservation and possible re-use of the Depot. Structural analysis of the Depot has been completed and the results made available to the City. MOVING FORWARD – FY2015 The Board continues to support opportunities to work with Montana Rail Link and Burlington Northern Santa Fe on preservation projects for the passenger depot. Additional TIF funding has been contributed to the Pedestrian Bridge project. The Board will seek funding opportunities for completion of street improvements and pursue partnerships with developers to complete portions of the projects that have been engineered. It also set aside monies for potential pedestrian improvements on the East Peach Street and East Tamarack Street bridges in a manner that demarcates the entrance ways to this district. In light of the possibility of constructing a pedestrian bridge and the importance of improving the condition of the general infrastructure within the District, the Board has determined it would be good to identify the right-of-way for East Aspen Street between North Rouse Avenue and Bozeman Creek. In light of a presentation by a representative from the Bozeman Creek Enhancement Committee, in FY14, the Board set aside monies to use as a match for those property owners wishing to enhance the streambank adjacent to their properties and has chosen to continue that funding in the budget. 252 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 3 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 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 East Aspen Street and the North Church Avenue trail east of North Rouse Avenue. East Aspen Street comes to an end at Bozeman Creek. The use along this section of East Aspen Street is largely residential with a retail store (butcher shop) at the southeast corner of North Rouse Avenue and East 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. While the budgeted amount is for construction, the Board has determine it might be appropriate to use a small portion of the monies to host a design competition for the bridge. The NURB continues to seek additional funding resources since it recognizes the amount budgeted will not cover the actual costs of construction. 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. 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” 253 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 4 • 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 ponding 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: East Peach Street – Sidewalks, Storm Water control, Landscaping Construction $ 88,912 Survey and designs for East Peach Street improvements have been completed. The Board approved 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 will be prepared by the City Attorney’s office for the City Commission’s consideration. If approved, this “special” design standard will be adopted for this street as well as other streets within the Northeast Urban Renewal District. As funding and/or funding partnerships become available, the Board will implement construction. 254 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 5 East Tamarack Street, Front Street and North Ida Ave survey and design $ 90,000 Morrison-Maierle was selected to complete the survey and design for these special street standards. Their preliminary work is completed and it is anticipated the final design will be submitted to the Commission early in FY15. The monies remaining in this line item after the design has been completed and adopted will be used for street improvements as opportunities allow. Entranceway Enhancements $ 20,000 For years, the Board has felt enhancing the rights-of-way that enter the District, providing visual or aesthetic enhancement, is important. During presentation of the East Tamarack Street special design standards, the potential for implementing some pedestrian enhancements on the bridge was identified, particularly in light of the additional right-of-way width at the bridge. The Board recognizes that, in addition to the East Tamarack Street bridge, the East Peach Street bridge would lend itself to similar enhancements. The Board stresses, however, that these are only two of several entrances to the District and that all points of entry should be considered. East Aspen Street right-of-way survey between North Rouse Avenue and Bozeman Creek $ 10,000 The Board realizes that the right-of-way for East Aspen Street needs to be identified in light of the potential for future infrastructure improvements. Since this is an older part of town, original corner pins are typically not easily found. A survey will identify the edges of the street right-of-way and make future street improvements easier to design as well as allow property owners to know exactly where their property lines are located. This survey may also help with the future improvements to North Rouse Avenue. Street lighting study $ 10,000 The existing street lights within the district are outdated and do not meet the dark skies standards set forth under the guiding principles, goals and implementation actions. The first step in addressing this issue is to review the lighting inventory and map showing ownership of those lights, followed by taking steps to assume City ownership of the lights if they are not owned by the City. After that, a consultant is to be retained to complete a comprehensive street lighting study within the district. Priority II Total $ 218,912 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.” 255 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 6 • 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 $ 25,000 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. To date, no one has applied for use of these funds, so the Board is trying to find ways to encourage use of the program. Depot Stabilization Project $ 15,000 The Northeast Urban Renewal Board recognizes the importance of the depot within the 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 $ 40,000 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 256 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 7 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 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 Community Development 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. 257 Northeast Urban Renewal Board Annual Work Plan and Budget FY15 8 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 $ 99,548 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 FY15 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 FY14. 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 $ 218,912 Priority III $ 40,000 Staff time $ 5,000 Noticing and Administrative Services $ 2,400 Undesignated Reserve $ 99,548 Overall Budget Total $ 420,860 258 Revenues: Estimated Beginning Balance $340,260.00 FY2015 Tax Increment $79,000.00 Interest $1,600.00 Total Estimated Revenues $420,860.00 Expenditures Budgeted: Trails Maintenance $5,000.00 Pedestrian Bridge $40,000.00 Streambank Restoration $10,000.00 East Peach Street $88,912.00 East Tamarack/Front/North Ida $90,000.00 Entranceway Enhancements $20,000.00 East Aspen Street ROW survey $10,000.00 Street lighting study $10,000.00 Redevelopment Incentives $25,000.00 Depot Stabilization Project $15,000.00 Planning Staff support $5,000.00 Administrative Services $2,400.00 Undesignated Reserve $99,548.00 Total Expenditures $420,860.00 Northeast Urban Renewal District FY2014-15 Budget 259