HomeMy WebLinkAbout08-20-07_Resolution No_ 4057, Policy for Granting Developme_18
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4057 – Policy for granting Development Impacts (Big
Box) Fund money for Affordable Housing Projects.
MEETING DATE: August 20, 2007
BACKGROUND: Attached is a report on the history and balances remaining in the
Development Impacts Fund (Big Box Fund). The report divides all dollars 50/50 between
Affordable Housing and Economic Development projects.
The Commission has sought to establish criteria for award of the Affordable Housing dollars
remaining in the fund. The attached resolution establishes specific criteria regarding affordable
housing projects and gives a stated preference to funding projects that:
1. Provide first-time home ownership, and
2. Recover dollars through loans, as opposed to one-time grants.
These criteria would supersede the City’s general policy for granting funds (Resolution No.
3866.)
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RECOMMENDATION: Adopt Resolution No. 4057, with any changes made by the
Commission.
FISCAL EFFECTS: No direct fiscal effects. This resolution provides criteria for future
award of City dollars.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager
Report compiled on August 14, 2007
Attachments: Development Impacts Fund Report
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COMMISSION RESOLUTION NO. 4057
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING A POLICY FOR GRANTING OF AFFORDABLE
HOUSING DOLLARS FROM THE CITY’S DEVELOPMENT IMPACTS (BIG
BOX) FUND.
WHEREAS, the City has dollars in its Development Impacts (Big Box) fund that have been
designated for affordable housing projects in the City; and
WHEREAS, the City’s Big Box Task Force recommendation #6 directed Big Box dollars
toward programs and projects that assist with first-time home ownership; and
WHEREAS, the City Commission has determined it necessary to establish criteria upon
which to review a request and base a decision to award dollars;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana:
Section 1
All requests for City Development Impacts (Big Box) dollars must be submitted in writing to the
Clerk of the City Commission. All requests must include:
1. Full Project Description, including the scope of work and identification of who will be
performing the work.
2. Project Budget, including all sources of funding.
3. Project Timeline.
4. Narrative responses to each rating factor, listed below.
Section 2
All requests will be evaluated and decided based up on the following rating factors:
1. Use of Funds:
a. Does the request fund first-time home ownership? Preference will be given
to requests that fund first-time home ownership.
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b. Is the request for a grant or a loan? If the request is for a loan, how will the
applicant ensure recapture of the funds? Preference will be given to
requests that will recover funds through loans rather than one-time grants.
2. Leveraging of Funds and Match Provided: Requests must document sources of
matching funds for the proposed projects. Sources of matching funds may include
private donations, federal/state government funds, grants and loans. When
possible, provide letters documenting matching sources that have already been
secured. If a match has not been secured, provide documentation regarding
expected receipt of matching funds, including grant application
deadlines/procedures, etc.
3. Demonstration of Need for Project: Explain how the proposed project meets a
public need and corresponds with City Commission and public priorities. Cite any
statistics that reinforce the need for the project.
4. Progress Measurement and Reporting: All projects are required to provide a
formal report at the end of the project or program year. Requests must include a
statement of how the applicant will measure progress and success on the project,
and how the applicant will keep the City informed of their progress.
5. Past Performance of the Applicant: Requests will be analyzed based on the past
performance of the applicant. Does the applicant have experience with the project
and/or similar projects? What is the experience of the key staff that will be directing
the project? How has the applicant performed with City funds in the past, if
applicable? If the applicant has not received City funds in the past, what funding
sources has the applicant utilized and how was their performance rated? Applicants
must include a list of funding sources they have utilized in the past 2 years, and
contact information for each sources. Sources may be contacted by the City for
verification.
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6. Benefit to Low and Moderate Income Persons: Requests that benefit low and
moderate income persons will be given preference. Who will principally benefit from
the proposed project and what are their income levels?
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 20th day of August 2007.
_____________________________________
JEFFERY K. KRAUSS, Mayor
ATTEST:
_____________________________________
Cynthia Delaney
Deputy City Clerk
APPROVED AS TO FORM:
___________________________________
PAUL J. LUWE
City Attorney
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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 $500,000 from Lowes,
over 2 1/2 years. Once the Lowes’
payments are received, Development
Impact dollars will total $1,450,000
(with $100,000 going directly to Farm-
house Partners). $63,340 has been
earned in interest since 2002.
To date, $691,000 has been commit-
ted to various projects, leaving an un-
committed balance of $822,340 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.
After discussion by the Commission, it
was determined that the original intent
was to divide the Lowes dollars 50/50.
Affordable Housing Revenues:
Home Depot FY03 $250,000
Wal-Mart FY04 $225,000
Lowes FY07 $ 50,000
Interest Earnings to date $ 31,670
Lowes FY08 & FY09 $200,000
Total Revenues: $756,670
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: $456,670
Dollars not Available until FY09 $100,000
Development Impacts Fund
(Big Box Fund)
ISSUED: AUGUST 15, 2007 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
Lowes FY07 $ 50,000
Interest Earnings to date $ 31,670
Lowes FY08 & FY09 $200,000
Total Revenues: $756,670
Economic Development Commitments:
GVIBA FY03 $ 25,000
N 7th Design & Connectivity Plan: FY05 $ 66,000
Gallatin Ice Foundation Arena: FY07 $300,000
Total Commitments: $391,000
Uncommitted Dollars: $365,670
Dollars not Available until FY09 $100,000
Affordable Housing Economic Development
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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 actual cost of the plan was $66,000.
At the time the Plan was funded, it was intended that the document provide the design frame-
work 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.
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