The URL can be used to link to this page

Home My WebLink AboutF3 MF TIFID Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski; City Manager SUBJECT: Ordinance 1684 Creating the Mandeville Farm Tax Increment Financing Industrial District (TIFID) MEETING DATE: November 13, 2006 BACKGROUND: Cities in the State of Montana can create Tax Increment Financing Industrial Districts (TIFIDs) to encourage the attraction and retention of value-adding industries that transform raw resources into processed substances from which industrial or consumer products may be manufactured. On October 30, 2006 the Commission passed, Resolution 3973 - Intent to Create the Mandeville Farm Tax Increment Financing Industrial District. And, on November 6, 2006 the Commission passed, Resolution 3975 - Declaring Mandeville Farm Blighted. Now that our desired Mandeville Farm Tax Increment Financing Industrial District has been noticed and declared to be blight, the commission can have a public hearing. Following this public hearing and approval of the creation of the Mandeville Farm Tax Increment Financing Industrial District, the commission can pass Ordinance 1684 ” Creating the Mandeville Farm Tax Increment Financing Industrial District (TIFID)” RECOMMENDATION: Take public comment and vote to approve creation of the Mandeville Farm Tax Increment Financing Industrial, and if approved, vote to provisionally adopt Ordinance 1684 on the first reading. FISCAL EFFECTS: Making Bozeman more desirable to industrial expansion creating new jobs and in the future more tax revenue. ALTERNATIVES: As directed by the Commission. Respectfully submitted, Chris Kukulski ORDINANCE NO. 1684 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA RELATING TO THE MANDEVILLE FARM TAX INCREMENT FINANCING INDUSTRIAL DISTRICT; ESTABLISHING AND CREATING THE DISTRICT; DETERMINING TAX INCREMENT COSTS TO BE PAID FROM THE DISTRICT; AND ESTABLISHING A BASE TAXABLE YEAR WHEREAS, the Commission (the “Commission”) of the City of Bozeman, Montana (the “City”) is authorized to create tax increment financing industrial districts pursuant to Section 7, Chapter 15, Part 42, M.C.A. (the “Act”); WHEREAS, the City wishes to encourage the attraction and retention of value-adding industries; and WHEREAS, value-adding industries are those industries that transform raw resources into processed substances from which industrial or consumer products may be manufactured; and WHEREAS, the Commission has determined that the area proposed for the tax increment financing industrial district consists of a continuous area with an accurately described boundary, is not contained within an existing urban renewal area district, is zoned for heavy industrial use in accordance with Title 18, Unified Development Ordinance, Bozeman Municipal Code and is determined to be deficient in infrastructure improvements for industrial development; and WHEREAS, the Commission has determined after a public hearing and public input that there is a need to create a tax increment financing industrial district. NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Bozeman, Montana: Section 1. Creation of the Mandeville Farm Tax Increment Financing Industrial District. The Commission, in accordance with public law on the creation of tax increment financing industrial districts, and after having conducted a public hearing duly called and noticed in accordance with the provisions of Section 7-15-4215, M.C.A., does hereby create the “Mandeville Farm Tax Increment Financing Industrial District” (the “District”) in the City of Bozeman, Montana. The purpose of creating the District is to stimulate industrial growth and encourage the growth and retention of value-adding industries. Section 2. Boundaries. The boundaries of the District shall be defined as property having the following legal description. A tract of land being the SW ¼ of Section 36, less the Lewis & Clark Commercial Subdivision, Plat J-376, less Minor subdivision 320, Lot 1 and including Tract 2, COS 1723 and the W1/2, SE1/4 of Section 36, less the Gordon Mandeville State School Section Subdivision, T1S, R5E, PMM, Gallatin County along with adjacent public streets. And COS 2153. Along with and subject to all easements of record or apparent on the ground The boundaries are shown on a map attached hereto as Exhibit A (which is hereby incorporated herein and made a part hereof). Section 3. Base Year. For the purpose of calculating the incremental taxable value each year for the life of the District, the base taxable value shall be calculated as the taxable value of all property within the District as of January 1, 2007. Section 4. Term of Tax Increment Financing Industrial District. The tax increment financing industrial district will terminate upon the later of: (a) the fifteenth year following the creation of the industrial district; or (b) the payment or provision for payment in full or discharge of all bonds for which the tax increment has been pledged and the interest thereon. Any amounts remaining in the special fund or any reserve fund after termination of the tax increment provision must be distributed among the various taxing bodies in proportion to their property tax revenue from the district. After termination of the tax increment financing provision, all taxes must be levied upon the actual taxable value of the taxable property in the industrial district and must be paid into the funds of the respective taxing bodies. Section 5. Costs Which May be Paid From Tax Increment. The tax increment received from an industrial district may be used to pay any costs incurred for an industrial infrastructure development project (in the District), including the following: (a) land acquisition; (b) demolition and removal of structures; (c) relocation of occupants; (d) acquisition, construction and improvement of infrastructure; (e) costs incurred in connection with redevelopment activities; (f) acquisition of infrastructure-deficient areas or portions of areas; (g) administrative costs associated with the management of the industrial district; (h) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (i) compilation and analysis or pertinent information required to adequately determine the infrastructure needs of secondary, value-adding industries in the industrial district; (j) connection of the industrial district to existing infrastructure outside the industrial district; (k) provision of direct assistance, through industrial infrastructure development projects, to secondary, value-adding industries to assist in meeting their infrastructure and land needs within the industrial district; and 2 (l) acquisition, construction or improvement of facilities or equipment for reducing, preventing, abating or eliminating pollution. Section 6. Conflict with Other Ordinances or Resolutions. All parts of ordinances and resolutions in conflict herewith are hereby repealed. Section 7. Effective Date. The effective date is thirty days after final adoption of this ordinance on second reading. PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on the first reading at a regular session thereof held on the 13th day November, 2006. FINALLY PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, on second reading at a regular session thereof held on the 27th day of November, 2006. _______________________ JEFF KRAUSS Mayor ATTEST: ______________________ BRIT FONTENOT City Clerk APPROVED AS TO FORM: ______________________ PAUL J. LUWE City Attorney 3 CERTIFICATE AS TO ORDINANCE AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached ordinance is a true copy of Ordinance No. 1684, entitled: “AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA RELATING TO THE MANDEVILLE FARM TAX INCREMENT FINANCING INDUSTRIAL DISTRICT; ESTABLISHING AND CREATING THE DISTRICT; DETERMINING TAX INCREMENT COSTS TO BE PAID FROM THE DISTRICT; AND ESTABLISHING A BASE TAXABLE YEAR” (the “Ordinance”). The Ordinance is on file in the original records of the City in my legal custody; that the Ordinance was duly adopted on first reading by the City Commission of the City at a meeting on November 13th , 2006, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Ordinance has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Ordinance at said meeting, the following Commissioners voted in favor thereof: _____; voted against the same: ____; abstained from voting thereon: ____; or were absent: ____. WITNESS my hand officially this 14th day of November, 2006. ___________________________________ Brit Fontenot City Clerk I further certify that the Ordinance was duly adopted on second reading by the by the City Commission of the City at a meeting on November 27th , 2006, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Ordinance has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Ordinance at said meeting, the following Commissioners voted in favor thereof: _____; voted against the same: ____; abstained from voting thereon: ____; or were absent: ____. WITNESS my hand officially this 28th day of November, 2006. ___________________________________ Brit Fontenot City Clerk 4