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HomeMy WebLinkAboutJ1 Big Box Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Development Impacts Fund (Big Box Fund) Report MEETING DATE: December 4, 2006 BACKGROUND: The Commission recently requested a report on the history and balances remaining in the Development Impacts Fund (Big Box Fund). The requested report is attached. As a condition of project approval, three large-scale retailers have agreed to contribute to this fund: Wal-Mart, Home Depot, and Lowes. v Issue: Allocation of Dollars between Affordable Housing and Economic Development. There was no formal condition language stipulating how the Wal-Mart dollars were to be allocated (between affordable housing and economic development projects.) The Home Depot condition was written to provide roughly 20% of the funds for Affordable Housing and 80% of the funds for Economic Development projects. Subsequently, on August 25, 2003, the Commission voted to approve a 50/50 split of the Home Depot and Wal-Mart monies. In September 2003, Commission Resolution No. 3630—Affordable Housing Strategies, stated “the City will dedicate at least 50% of economic development impact fees collected from Big Box stores to the Community Affordable Housing Fund.” However, adopted on August 15, 2005, the condition for Lowes allocates 20% to Affordable Housing and 80% to Economic Development projects. As a result of these actions, the attached report has been written to reflect a 50/50 allocation between affordable housing and economic development projects for Home Depot and Wal-Mart monies, and divides the Lowes money according to the approved condition language of 20/80. RECOMMENDATION: None at this time. FISCAL EFFECTS: See attached report. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager Report compiled on November 28, 2006 Attachments: Development Impacts Fund Report The Development Impacts (Big Box) Fund accounts for the dollars the City receives to mitigate impacts related to large-scale retail developments. In 2002 Home Depot paid $500,000 for impacts related to their project. $100,000 was submitted directly to Farmhouse Partners for affordable housing. $400,000 was deposited with the City. The fund has also received $450,000 from Wal-Mart, and is expect- ing to receive approx $500,000 from Lowes, over 2 years. Once the Lowes’ payments are received, Development Impact dollars will total $1,450,000 (with $100,000 going directly to Farm- house Partners). $46,000 has been earned in interest since 2002. To date, $693,000 has been commit- ted to various projects, leaving an un- committed balance of $803,000 once all payments are received. Affordable Housing & Economic De- velopment: There was no specific con- dition language for distribution of the Wal-Mart dollars. Home Depot’s con- dition allocated 20% for affordable housing and 80% for economic devel- opment. In August 2003, the Commis- sion voted to divide the Wal-Mart and Home Depot money 50/50 between affordable housing & economic devel- opment projects. In August 2005, the condition approved for Lowes allo- cated 20% for affordable housing and 80% for economic development. As a result, the report below shows Home Depot and Wal-Mart dollars at 50/50, and the Lowes dollars 20/80. Affordable Housing Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Interest Earnings to date $ 23,000 Lowes *expected 2/2007 FY07 $100,000 Total Revenues: $598,000 Affordable Housing Commitments: Farmhouse Partners - submitted directly: FY03 $100,000 The Road Home Project: FY04 $100,000 The Road Home Project: FY05 $100,000 Total Commitments: $300,000 Uncommitted Dollars: $298,000 Development Impacts Fund (Big Box Fund) ISSUED: NOVEMBER 28, 2006 CITY FINANCE DEPARTMENT, ANNA ROSENBERRY, DIRECTOR Revenue & Commitments Narrative of the Big Box Fund Economic Development Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Interest Earnings to date $ 23,000 Lowes *expected 2/2007 FY07 $200,000 Lowes *expected 2/2008 FY08 $200,000 Total Revenues: $898,000 Economic Development Commitments: GVIBA FY03 $ 25,000 N 7th Design & Connectivity Plan: FY05 $ 68,000 Gallatin Ice Foundation Arena: FY07 $300,000 Total Commitments: $393,000 Uncommitted Dollars: $505,000 Dollars Available FY07 $305,000 Additional Dollars Available FY08 $200,000 Affordable Housing Economic Development PAGE 2 DEVELOPMENT IMPACTS FUND Affordable Housing—Projects Farmhouse Partners: In 2001, Home Depot contributed $100,000 directly to an exist- ing Farmhouse Partner’s Affordable Housing project. The money allowed Farmhouse to re- pay an outstanding $50,000 loan from the Community Affordable House Advisory Board, saving the project interest costs. The other $50,000 was used to subsidize the rents for four to eight units, allowing them to be rented to tenants earning as-low-as 40% of Area Median In- come, a market that the program was normally unable to reach without assistance. The Road Home: In November 2003, the City gave $100,000 to affordable housing down- payment assistance via HRDC’s “The Road Home” program. The City dollars were part of a local match for a $500,000 CDBG grant that provided services to persons/families earning 60%-80% of Area Median Income. In January 2005, HRDC was granted an additional $100,000, noting that the previous award had been entirely spent. “The Road Home” pro- vides education, counseling and assistance with loan packages, as well as down-payment assis- tance dollars. Economic Development—Projects GVIBA: In FY2003, the City awarded $25,000 of Economic Development dollars to the Gallatin Valley Independent Business Alliance (GVIBA). Its mission is “to promote locally owned independent businesses in order to preserve the Gallatin Valley’s unique character.” GVIBA is know for its “Buy Local, You Bet” campaign. City dollars were allocated to their website www.gviba.org, brochures, a membership directory, and print, television & radio ads. N 7th Design & Connectivity Plan: In June 2005, the Commission funded the Design and Connectivity Plan for North Seventh Avenue. The total approved cost of the plan was $68,000. At the time the Plan was funded, it was intended that the document provide the de- sign framework for further improvements to the area in conjunction with an anticipated TIF district for N. 7th Avenue and for the development of CTEP projects along the corridor. The plan was completed in 2006 and has been incorporated into the new North 7th TIF district. Gallatin Ice Foundation Arena: In October 2006, the Commission approved the Foundation’s request for a total of $300,000: $125,000 to improve the existing Haynes Ice Pa- vilion located at the Fairgrounds, and $175,000 for the future construction of an additional Ice Arena adjacent to Haynes. The money will be disbursed once it is matched dollar-for- dollar by local pledges raised by the Foundation. The project anticipates to provide increased commercial opportunities city-wide, and be a magnet for increased development and invest- ment in the general vicinity of the Fairgrounds. City of Bozeman 20 E. Olive ▪ P.O. Box 1230 Bozeman, Montana 59771-1230 Neighborhoods Program Phone: (406) 582-2258 ▪ Fax (406) 582-2263 ▪ EMAIL toulman@bozeman.net To: Honorable Mayor and City Commission From: Tracy Oulman, Neighborhood Coordinator December 6, 2006 RE: Story Mill Center Mayor & City Commission: The developers of the Story Mill Center (SMC) have requested the City Commission be provided a general list of correspondences, meetings and activities which have occurred in coordination with the city’s Neighborhoods Program in anticipation of a formal application. The following chronological list is provided to meet the SMC request. Bold denotes activities involving the Neighborhood Coordinator. January, 2006 Neighborhoods Program was contacted by representatives of the SMC. February 6, 2006 Letter from Neighborhoods Program sent to all properties within the SMC postal route announcing an informational meeting regarding the project. February 23, 2006 Neighborhood Meeting was attended by approximately 40 citizens. Chris Saunders, Assistant Planning Director, provided an overview of the city processes anticipated for the project including opportunities for public participation. A representative from SMC presented background on the Story Mill and asked for input for attendees. July 10, 2006 Letter from the Neighborhoods Program sent to all properties within the SMC postal route announcing bbq’s and informational meetings to be held by SMC about their project. The purpose of the letter was to encourage all interested parties to become informed and involved early. July 18, 2006 SMC held an informational meeting. City staff received advanced notification of these meetings, but were not involved in the content or presentation of the meeting. July, 2006 Neighborhoods Program became aware of SMC’s intent to purchase the Bridger View Trailer Court (BVTC). August 1, 2006 SMC held an informational meeting. City staff received advanced notification of these meetings, but were not involved in the content or presentation of the meeting.