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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Ron Brey, Assistant City Manager
Chris Kukulski, City Manager
SUBJECT: Gallatin Ice Foundation Request for Economic Development Funds for
Fairgrounds Ice Arena
MEETING DATE: October 9, 2006
BACKGROUND: In August, this group came before the Commission seeking $300,000 in
big box economic development funds for the above referenced facility. Details of the proposal
are contained in the attached plan and letter from members of the Gallatin Ice Foundation.
The City has received $950,000 in economic impact mitigation payments from Walmart and
Home Depot. Another $500,000 is anticipated on the opening of Lowe’s for a total $1,450,000.
By past discussion of the Commission, the funds have been earmarked as going half to
affordable housing and half to economic development directed at existing commercial areas.
There is, therefore, $725,000 directed to economic development. To date, the Commission has
authorized the expenditure of $68,000 for the North 7th Design and Connectivity Plan, and
$25,000 to go to the Gallatin Valley Independent Business Association (GVIBA). The
Commission also indicated a willingness to commit $250,000 to initial projects in the N. 7th
Corridor, recognizing that it will take some time for tax increment funding to be available. In
sum, there will be $725,000 earmarked for economic development activity collected after
Lowe’s payment; there has been $93,000 spent to date; another $250,000 has been earmarked for
N. 7th projects, leaving a balance of $382,000. Granting this request for $300,000 will leave a
balance of $82,000. The staff has not been contacted by representatives of any other areas
seeking to use these funds.
RECOMMENDATION: The proposal is intended to create additional skating opportunities in
the heart of Bozeman – a need that has been expressed again and again. The Fairgrounds has
been identified in the N. 7th Design and Connectivity Plan discussion as a cultural activity center
in the heart of town that has great value to the community and that provides a significant
connection between several different parts of town. The work the Fairgrounds is doing to re-
orient its activities responds positively to concerns expressed by adjacent neighborhoods.
When the Commission originally heard this request, it sought to have the funds used to leverage
additional financial support. The proposal addresses this request of the Commission on a one-to-
one matching basis.
Given the positive community wide benefits of this proposal, the responsiveness to the
Commission’s leveraging request, and the lack of competing proposals from other parts of the
community, the staff recommends a favorable response to the request.
FISCAL EFFECTS: The big box economic development fund will have a remaining
uncommitted balance of $82,000 after the Lowe’s funds are received.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Ron Brey, Assistant City Manager Chris A. Kukulski, City Manager
Attachments: Plan and letter from
Gallatin Ice Foundation
Report compiled on: 10/4/06