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HomeMy WebLinkAbout04-16-13 Downtown Tax Increment Finance District (TIF) Minutes / Downtown Tax Increment Finance Board Meeting Minutes April 16, 2013 Attending: Bobby Bear, Bob Hietala, Vonda Laird, Bob Lashaway, Scott Lee, Bill Stoddart, Chris Naumann, Carson Taylor Absent: Shannon Haish Public Comments None Disclosures Minutes ACTION: Bob Lashaway moved to approve the March minutes as presented. Bill Stoddart seconded the motion. All voted in favor. Financial Report Chris presented the financial report indicating that there was very little activity since last month. The only four expenses were $23,937 for 4th quarter management fee; $856.00 for purchase of streetlamp parts; $1,025.00 for technical grant; and $60.00 for annual Linx transportation co-op dues. Chris pointed out the difference between the Management Fee budget and actual paid—a $150 difference—and said he would discuss the discrepancy with Susan. There was no further discussion regarding finances. Executive Director’s Report Technical Assistance Program Update—no new grants As you can see from the chart below, 9 grants have been awarded so far this year. The total committed funds for these projects total $58,500 of the $125,000 budget. Keep in mind that the committed grant amounts are only tentative since the actual reimbursement amount will be determined as a one to one match upon completion of the grant work. As a reminder, the Planning grants have a $7500 cap and the Façade grants are capped at $3000. **Grants listed in bold have been completed as the applicant has submitted all materials and been reimbursed (4 of 9 projects)** 2013 Downtown Technical Assistance Program        Project Name Project Address Applicant Professional Grant Type  SWN Creekside 317 East Mendenhall Susan Neubauer Weirich & Greenspace Facade  R ialto-SRO Live 12 West Main Stephen Michael CTA Planning  303 East Main 303 East Main Helori Graff Van Bryan Planning  303 East Main 303 East Main Helori Graff Van Bryan Facade   Lindley Park Hotel 712 East Main Anthony Renslow Works Partnership (OR) Planning  SWN Creekside 317 East Mendenhall Susan Neubauer Hyalite Engineers Planning  Block G--North 25 East Lamme Block M, LLC Intrinsik Planning  Block G--South 25 East Mendenhall Block M, LLC Intrinsik Planning  Bozeman Spirits 121 West Main Jim Harris Locati Planning   TIF Legislation Updates As of our March meeting, HB443 had been tabled by the House Taxation Committee on Monday, March 20th. Yet on March 25th it was “taken from table” in committee. Three days later it passed 2nd reading but failed on 3rd reading only two days later having been reconsidered for 3rd reading it passed the House. The Senate Taxation Committee held a hearing on the bill and tabled it on April 12th. I requested an update from Mike Phillips—a committee member—but I have yet to hear back from him. Previous notes: House Bill 443 would seriously restrict the power of TIF districts to fund major infrastructure projects. The bill would essentially negate the ability to issue bonds against TIF district revenues by mandating that any bond debt service must be retired within 15 years of district formation. I submitted comments to the House Taxation Committee expressing my opposition to HB443. The committee heard the bill on Monday February 18th. Downtown Construction Updates Northwestern Energy closed North Willson between Main and Mendenhall to upgrade the gas main running through the adjacent alley. The work will take approximately 2 or 3 weeks to complete. I facilitated a meeting between Northwestern and the Etha/Armory Hotel team to discuss any potential to improve or expand the gas service at the Armory site. We also discussed the need to elevate the existing power lines and transformers to accommodate the height of the proposed hotel. Previous notes: The Mendenhall Underground Utility project will start during the second half of May 2013 and will last 90 days or less. The project will extend from Broadway to 7th Avenues and involve the installation of new water and sewer lines. Only two or three blocks will be under construction at any given time. The contract stipulates that Mendenhall must be open to through traffic during all downtown events during the period of construction. Recycling Receptacles and Service Last year we discussed purchasing 6 to 8 additional recycling receptacles to be placed along Main Street. The City Solid Waste Department had agreed to provide two collection points downtown for the BID Maintenance staff to transfer the pre-sorted recyclables. I have postponed purchasing the receptacles due to consideration by the City to convert municipal recycling to a “single-source” system which would eliminate the need to buy three-bin receptacles. The three-bin units are obviously much larger and therefore much more expensive than a single-unit we would need to accommodate a single-source system. The City should announce whether or not they are going to convert to a single-source system by the end of the month. Downtown Parking Updates Parking Fact of the Month: Run to the Pub netted the third highest daily revenue in the history of the garage. The last week the cracks in the first floor were repaired and new yellow paint was applied to the stalls, arrow markings and curb highlights. / Discussion and Decision Items COB Downtown Planning Initiatives Chris reviewed to four B3/Downtown District issues that were discussed at last month’s meeting. 3D Modeling Project This would provide computer generated three dimensional massing model of the downtown district. This tool would be used to consider new developments. The project would be done in conjunction with the MSU Community Design Center. The CDC charges $5000.00 for a semester of work. Examples: DURT Project and Etha Hotel Discussion: Chris informed the board that this would be a FY2014 project and he placed a specific line item to fund this project in the FY14 budget. B3 Zone Map Amendment The Bozeman Community Plan prescribes several boundary modifications to the downtown B3 zoning district. These by and large involve converting small portions of the surrounding Rx and B2 zone to the B3 designation. Doing so will better suit those properties for redevelopment. This could be completed for approximately $2000-$3000. Example: Harringtons/Seed Company ZMA Discussion: Chris suggested that after finalizing the exact properties to be considered for rezoning that he would reach out to those owners to discuss. The board recommended that Chris request written bids from qualified planning firms. The following firms were named: Intrinsik, ThinkTank, CTA, Morrison-Maierle, Sanderson-Stewart. B3 Code Amendments There are a variety of code amendments that need to be made in the B3/Downtown district. These include but are not limited to: revising the definitions of allowable housing types; adding an allowance for business signage in alleys; adding a provision to allow businesses to have primary entrances off an alley. Costs, if any, have yet to be determined. Discussion: Chris reminded the board that this would take time to develop during FY2014. Historic Inventory Update The historic inventory for the B3 district is from the 1980s. With such an antiquated inventory, property owners are required to provide an update for any structures they are looking to redevelop—adding another layer of bureaucracy and permitting to each and every project. Initial cost estimates have not been completed though each residential property would cost $150 and each commercial building would cost $300. The COB has some funds reserved for this project and would be looking for matching funds. Example: Block M Project Discussion: Courtney Kramer, COB Historic Preservation Planner, presented a proposal to fund updating the historic inventory for at least 100 strategic downtown properties. To: Chris Naumann, Downtown Bozeman Partnership From: Courtney Kramer, Historic Preservation Officer/ Planner I Date: April 10, 2013 RE: Joint project to update Historic Property Record Forms in the B-3 zoning district Outdated data set is a hurdle for development: The Downtown Plan, created in 2009, outlines the potential for new commercial and dense residential development in the B-3 zoning designation, which stretches 2-3 blocks south of Main Street and 3-4 blocks north of Main Street. This zoning area includes portions of Bozeman’s historic core which were initially developed as low-density residential and other less-intensive uses. This area is also within Bozeman’s Neighborhood Conservation Overlay District (NCOD), which places a primary emphasis on the preservation of historic structures. The two goals are not mutually exclusive, but the lack of sufficient, credible information about the historic structures in the B-3 area sometimes puts the Downtown Plan and the NCOD at odds. The City of Bozeman’s Community Development Department relies on the 1984 Montana Historical and Architectural Inventory forms to identify historically significant and non-significant properties within the NCOD. The “Inventory” served as the starting point for creation of the Main Street Historic District, on the National Register of Historic Places, as well as Bozeman’s other eight historic districts. Within the B-3 zoning designation, this 30 year old data set evaluates roughly 600 properties. The outdated Inventories identify the historic status of each property, determining properties to be either “contributing,” “non-contributing,” “intrusive,” or “neutral” to a potential historic district. The information on the Inventories determines the City’s development review process. As the City lacks sufficient current records to quickly inform property owners and potential redevelopers of a property’s historic status, potential investments in downtown must first update the Inventory for their property. This slows down planning for redevelopment and reduces the level of predictability in the outcome of the City review process. In short, the lack of current information about historic structures in the B-3 area is a hurdle for new development of Bozeman’s historic core. Downtown Partnership and Community Development Department partner to update the data set: The City would like to pool resources with the Downtown Partnership to update the data set identifying historic structures within the B-3 district. Creation of new, more accurate records will enhance downtown development by identifying structures which are historic and should be preserved, as well as those which may be extensively altered or demolished. A new data set will enable City Staff to answer development inquiries quickly and with a high level of certainty. Better information will enable investors to more quickly perform due diligence activity and move forward with project development. Ideally, we’d update the data set for the entire B-3 district in one project. The 1984 Inventory indicates 474 different properties within the B-3 zoning district; of these 132 contribute to a potential historic district, 10 were labeled non-contributing, 89 properties were labeled “Intrusive,” 195 Inventories are missing and 48 were labeled “neutral.” Of the 1984 Inventory terms, only “contributing” and “non-contributing” are currently used by historic preservation professionals (an indicator of how the current standards have evolved and emphasizing the need to update the inventory). The Inventory Form itself has also been replaced by the Montana State Historic Preservation Office (SHPO) with a Property Record Form. The Property Record form is both more useful in its comprehensive information and can be handled electronically to make information transfer simpler. B-3 Zoning Area- 1984 Inventory  Contributing 132  Non Contributing 10  Neutral 48  Intrusive 89  Missing 195  Total properties in B-3 474   Many of the properties are within the geographical boundaries of an established historic district; 174 properties in the Main Street Historic District, three in the Bon Ton District, one in the North Tracy District and four in the South Tracy/ South Black District. Of the properties in the Main Street District, an extensive number have been restored (Avant Courier Building, Story Block, etc), demolished or destroyed (2009 Fire, Story Motor Co) or extensively modified (First Security Bank) since the 1986 nomination. Main Street District- 1986 National Register Nomination  Contributing 84  Non-C ontributing 7  Neutral 9  Missing 59  Intrusive 18  Total properties in Main St. Dist. 177   Though changes have occurred in the historic districts, likely in a direction which would add contributing properties to the district, Staff believes the data set for this area is sufficient and recommends placing properties in established districts at a lower priority for the project. City Staff would like to focus the data update on properties in the B-3 which were deemed “neutral,” “intrusive” or “non-contributing.” Staff also recommends evaluating a handful of properties deemed “contributing” which are known to have been modified since 1984 in a manner which undermines the property’s historic significance. The update would also create Property Record Forms for properties for which the City is missing historic inventory records. Properties in B-3, excluding historic districts  Contributing 41  Non Contributing 3  Neutral 38  Intrusive 69  Missing 135  Total properties in B-3 286   An initial analysis of the City’s Historic Inventory records indicates that roughly 69 properties were identified as “intrusive,” 38 were identified as “neutral,” and we are missing Inventory records for 135 properties; a total of 242 properties. Staff anticipates the cost of updating the information for 242 properties to exceed six figures. As an alternative, Staff proposes the City and the Downtown Partnership share the cost of creating at least 100 new Property Record Forms in the downtown area. Butte/ Silverbow County completed a similar project in 2009, at a cost of $30,000 for 100 new Property Record Forms. City Staff would work with the Downtown Partnership, the consultant and the Bozeman Historic Preservation Advisory Board (BHPAB) to identify which 100 properties should be included because of anticipated development pressure. A consultant who satisfies the Secretary of the Interior’s Standards for Historic Preservation Professionals (attached) would be hired through a Request for Proposals (RFP) process. City Staff, the Downtown Partnership and the BHPAB would participate in drafting the RFP and selection of the consultant. Proposed budget to update at least 100 Property Record Forms: City of Bozeman Staff a $30,000 budget for this endeavor, with the City supplying $15,000 in funding if the Downtown Partnership matches the funding with $15,000. As the proposed budget does not address the entire B-3 zoning district, if the work is less costly than anticipated staff suggests adding additional inventory forms to the project rather than expending fewer funds. Proposed timeline: April 2013: Discussion with Downtown Partnership; authorization of matching funds May 2013: City Manager authorization to expend funds. Cash on hand funds do not need City Commission authorization. Draft of Request for Proposals (RFP) June 2013: Issuance of RFP July 2013: RFP responses due Committee selection of consultant Contract negotiations August- October 2013: Project completion October 2013: Property Record Form drafts due for review by City November 2013: Property Record Forms sent to SHPO for review December 2013: Final Property Record Forms made available to the public Attachments: Map showing results of 1984 Inventory in the B-3 zone Example of 1984 Montana Architectural and Historical Inventory Example of BSB Property Record Form created in 2009 Secretary of the Interior’s Standards for Historic Preservation professionals ACTION: Bob Lashaway moved to approve $15,000 to match the COB Community Development funds to complete a strategic downtown historic inventory update. Bob Hietala seconded the motion. All voted in favor. COB Downtown Planning Initiatives Chris presented a draft of the FY2014 Budget. He pointed out that “income” would be similar but slightly higher than FY13 due to a larger starting cash balance and an anticipated increase in the COB Interlocal Share. Chris said there would be a slight increase in the Partnership Management Fee—the first in several years. Chris proposed itemizing some of the expenses under “DBIP Implementation Funds” to include planned projects/expenditures. The board agreed this was a good improvement. The Board discussed potentially increasing the “Residential Incentive Program” dollar amount from $100k to $150k to accommodate and further incentivize the surging housing market. The Board also talked about increasing the “Code Compliance Program” to fund four or five maximum-award projects. Chris said he would make further adjustments to the budget for approval at the May meeting. The board asked Chris to request clarification on how TIF income is transferred to the TIF account—monthly or quarterly. With no further new or old business to discuss, Bobby adjourned the meeting.