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HomeMy WebLinkAboutTax Increment Finance District FY2015 Budget and Work Plan_20 May 22, 2014 TO: Chris Kukulski Anna Rosenberry Bozeman City Commission FR: Chris Naumann Executive Director RE: Tax Increment Finance District FY 2015 Budget and Work Plan Commission Meeting: June 2, 2014 Attached are the Downtown Tax Increment Finance District (TIF) FY2014 Annual Report, FY2015 Work Plan and FY2015 Budget. The FY2015 Budget was unanimously approved by the TIF Board on May 20, 2014. I will be presenting these documents at the City Commission meeting on Monday, June 2, 2014. If you have any questions regarding the annual report, work plan or budgets, please feel free to contact me at any time. Respectfully Submitted, Chris Naumann 232 Downtown Tax Increment Finance (TIF) FY2014 Annual Report and FY2015 Work Plan and Budget On November 6, 1995, the City Commission passed Ordinance No 1409 adopting the Urban Renewal Plan for downtown Bozeman. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained. 2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan. 4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles, but are only listed once below). 1. Strengthen downtown’s economic vitality  Provide more, better managed parking; retain public offices and anchor businesses; facilitate commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly 2. Improve the safety, security and health of the district  Improve traffic flow emphasizing downtown as a destination; improve public works; improve night- time lighting; improve sidewalks; increase police presence; improve alley and parking lot appearance and safety 3. The image of downtown shall be continuously improved  Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to Bozeman Creek; improve trash removal 4. Downtown’s accessibility shall be improved  Provide effective public transportation; better accommodate bicycles; reduce reliance on private automobiles 5. “Community Partnership” is fundamental to downtown’s success  Encourage growth of cultural activities; preserve historic character 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly 9. Cultural activities shall be nurtured and expanded downtown TIF-IDB Mission Statement The Downtown Bozeman Tax Increment Finance board (TIF) will foster an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center. 233 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2014 Annual Report (July 1, 2013 to June 30, 2014) Downtown Parking Garage $ 432,500 invested The TIF made a payment of $423,500 on the Bridger Park Garage construction bond. The TIF also pledge its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund. This year’s contribution will be $9,000. Chris Naumann, TIF Director, has continued to play an active role in the operation and maintenance of the parking garage as a member of the BPC. Downtown Hotel Incentive Program $ 200,000 encumbered The TIF received hotel incentive applications this year and awarded up to $100,000 each to the Etha and Element hotel projects. The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program provides reimbursement of the impact fees associated with the development of a downtown hotel upon issuance of the City occupancy permit. Downtown Partnership Management Fee $ 98,500 invested The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the Downtown Partnership office in addition to a portion of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF. Technical Assistance Grant Program $ 41,250 invested $ 36,000 encumbered This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. This year the TIF awarded 7 Planning Grants and 4 Facade Grants to a variety of proposed downtown redevelopment projects. Downtown Plan Implementation $ 30,070 invested The TIF made several small investments towards accomplishing priority objectives established in the 2009 Downtown Improvement Plan. The TIF contributed $10,000 to the City of Bozeman Community Broadband Master Plan project. The TIF also contributed $15,000 to the Community Development Department’s Downtown Historic Inventory Update project. The TIF invested $5,000 in the first phase of a 3D architectural modeling project that will coordinate with the City GIS system. Streetscape Element Purchases $ 23,140 invested The TIF purchased additional streetscape elements to augment those already located in the downtown district. This year’s purchases included: pedestrian benches, trash receptacles, single- stream recycling receptacles and streetlamps. Code Compliance Program $ 10,000 invested $ 10,000 encumbered The TIF received two applications for the Code Compliance Program and awarded grants to both. The program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s 234 sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $10,000. Streetscape Assistance Program $ 7,000 invested The TIF utilized these funds in conjunction with private funding to provide the match for a Save America’s Treasures grant. This grant project is restoring the last 3 original Caird streetlamps that once refurbished will be installed adjacent to the Baxter Hotel along North Willson Avenue. This TIF program provides property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape and Park Maintenance $ 6,365 invested The TIF pays for the replacement of dozens of the street lamp light bulbs annually. For almost a decade the TIF has taken responsibility for the seasonal maintenance of the landscaping, amenities, and irrigation system at Soroptomist Park which this included major repairs to the park’s water fountain. Downtown Explosion Impact Fee Relief $ 0 invested On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. Neither of the two remaining vacant parcels was rebuilt this fiscal year so in turn no funds were expended. Downtown Housing Incentive Program $ 0 invested The TIF did not receive any housing incentive applications this year. The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. 235 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2015 Work Plan (July 1, 2014 to June 30, 2015) Downtown Parking Garage $ 437,000 budgeted The TIF will make the annual bond payment and long-term maintenance fund contribution for Bridger Park, the downtown parking garage. Downtown Improvement Plan Implementation $ 430,000 budgeted The TIF board has allocated funds to be invested in high-priority projects identified by the Downtown Improvement Plan. These funds could be used for further planning or design projects or for implementation of particular projects specifically designated as follows: Downtown B3 ZMA Growth Policy Project $ 10,000 WTI Downtown Truck Route Study $ 20,000 DURT Phase 1 Streetlamp Funds $ 50,000 DURT Phase 1 Preliminary Engineering $120,000 DURT Phase 1 Final Engineering $200,000 Downtown Public Parking Lot Improvements $ 250,000 budgeted The TIF is committed to partnering with the Bozeman Parking Commission and the Parking Enterprise Fund to make strategic functional and aesthetic improvements to the City-owned parking lots downtown. Improvements will include stormwater compliance, internal lighting, landscaping, and reconfigured vehicle circulation. Downtown Hotel Incentive Program $ 100,000 budgeted The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program offers to reimburse up to $100,000 of the impact fees associated with the development of a hotel. The TIF Board awarded two incentives in FY2014 and reserves the option to incentivize a third hotel. Downtown Housing Incentive Program $ 150,000 budgeted The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. Downtown Broadband Planning and Infrastructure $100,000 budgeted The TIF has committed funding to engage in additional planning stemming from the future Bozeman Broadband Master Plan. Some of this funding could be used to begin implementing the public portion of a fiber optic broadband network downtown. Downtown Explosion Impact Fee Relief $ 100,000 budgeted On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. There are still two properties to be reconstructed. 236 Downtown Partnership Management Fee $100,000 budgeted The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the downtown office at 222 East Main Street in addition to the majority of the payroll costs of Chris Naumann, who serves as the Director of the TIF. Technical Assistance Grant Program $ 75,000 budgeted This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. Alley Improvement Incentive Program $ 50,000 budgeted The TIF will offer a new program to assist property owners in the implementation of the ideas presented in the Downtown Alley Sketchbook. This document provides numerous examples of how to improve the alley corridors with lighting, landscaping, and hardscaping. The incentive program will focus on assisting with the installation of pedestrian-scale lighting in the alleys. Code Compliance Program $ 50,000 budgeted This TIF program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $10,000. Streetscape Element Purchases $ 30,000 budgeted The TIF will continue to supplement the existing streetscape inventory by purchasing additional historic street lamps, trash receptacles, pedestrian benches, tree guards and bike racks. Streetscape Assistance Program $ 20,000 budgeted This TIF program will provide property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape and Park Maintenance $ 10,000 budgeted The TIF will continue to maintain the large number of streetscape elements in the downtown district, all of which were originally purchased with TIF funds, including: historic street lamps, pedestrian benches, trash receptacles, tree guards, and bicycle racks. The TIF will continue to fund the landscaping maintenance for Soroptomist this fiscal year. The FY2015 Downtown Tax Increment Finance District Work Plan and Budget were unanimously approved by the TIF Board on May 20, 2014. 237 Downtown Tax Increment Finance District FY2015 Budget APPROVED Category FY2015 Budget Income Starting Cash Balance 1,687,986$ Income from TIF (estimated)427,000$ COB Interlocal Share 414,750$ Entitlement Share State of Montana 31,358$ Interest Income (estimated)11,000$ Total Income 2,572,094$ Expense Operations Management Fee and Admin.100,000$ Total Operations 100,000$ Infrastructure Improvements Street Furniture and Park Maintenance 10,000$ Streetscape--new purchases 30,000$ Streetscape Assistance Program 20,000$ Wayfinding Signage--fab & install 10,000$ Alley Improvement Incentive Program 50,000$ Public Parking Lot Improvements 250,000$ Fiber-Broadband Infrastructure 100,000$ Total Improvements 470,000$ Planning Technical Assistance Grants 75,000$ FY12 Encumbered Funds -$ FY13 Encumbered Funds -$ FY14 Encumbered Funds 36,000$ Residential Incentive Program 150,000$ Hotel Incentive Program 100,000$ FY14 Encumbered Funds 200,000$ DBIP Implementation Funds Miscellaneous 20,000$ Encumbered FY14 WTI Truck Route Study 20,000$ B3 3D Modeling Project 5,000$ B3 Historic Inventory Update B3 ZMA Project 10,000$ City Wayfinding--Downtown Planning 5,000$ DURT Phase 1 Prelim Engineering 120,000$ DURT Phase 1 Final Engieering 200,000$ DURT Phase 1 Lighting Contribution 50,000$ Total Planning 991,000$ Parking Structure Garage Bond Payment 427,000$ Garage Long-term Maintenance Fund 10,000$ Total Parking Garage Payments 437,000$ Explosion Impact Fee Expenses Explosion Impact Fees 100,000$ Total Impact Fee Expenses 100,000$ Code Compliance Program Code Compliance Program 50,000$ Encumbered for Olive & Wallace 10,000$ Code Compliance Program 60,000$ Total Expenses 2,158,000$ Year End Balance 414,094$ FY2015 Downtown TIF Budget was approved by the Downtown TIF Board on May 20, 2014238