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HomeMy WebLinkAbout05-21-13 Downtown Tax Increment Finance District (TIF) Minutes / Downtown Tax Increment Finance Board Meeting Minutes May 21, 2013 Attending: Bobby Bear, Bob Hietala, Vonda Laird, Scott Lee, Bill Stoddart, Chris Naumann, Carson Taylor Absent: Shannon Haish, Bob Lashaway Public Comments None Disclosures Minutes ACTION: Vonda Laird moved to approve the April minutes as presented. Bill Stoddart seconded the motion. All voted in favor. Financial Report Chris presented the financial report indicating that the only new “income” was a revised interest earned amount of $6,670. The only two expenses were $5,000 for Caird Streetlamp project and $19,931.00 for four technical assistance grant payments. There was no further discussion regarding finances. Executive Director’s Report Technical Assistance Program Update As you can see from the chart below, 11 grants have been awarded so far this year. The total committed funds for these projects total $57,885 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 (5 of 11 projects)** 2013 Downtown Technical Assistance Program        Project Name Project Address Applicant Professional Grant Type  SWN Creekside 317 East Mendenhall Susan Neubauer Weirich & Greenspace Facade  Rialto-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 E 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  Osborn Block 229 East Main Chris Pope Intrinsik Planning  Imperial Inn 122 West Main Eric Nelson ThinkTank Planning   Explosion Site Impact Fee MOU City Manager Chris Kukulski and I signed a new MOU to pay the impact fees associated with redeveloping the two remaining properties destroyed by the March 5, 2009 explosion and fire. The MOU extends until December 31, 2016. I provided copies to the owners of the two remaining vacant lots. Downtown Construction Updates Northwestern Energy is closing West Babcock between Grand and Willson to install a new gas shut-off valve and replace the service lines running north and south. This block of Babcock will be restricted to one lane or closed until June 26th. City of Bozeman has closed North Rouse between Main Street and Mendenhall to install a new water service to old City Hall. Project should be completed Tuesday, May 21st (today) and the road reopened no later than Wednesday, May 22nd. Gallatin Lodge is working on their foundation along North Bozeman. They will be replacing the sidewalk following the foundation work. The parking lanes have been eliminated along North Bozeman between Main and Mendenhall. Two-way traffic will be maintained except for a few short periods. The project is scheduled to be completed in late June. 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. Downtown Parking Updates / Other news… Etha Hotel approved Bobby received Life is Downtown Award Discussion and Decision Items FY2014 Work Plan and Budget Chris presented the work plan and budget for fiscal year 2014: / Downtown Tax Increment Finance (TIF) FY2013 Annual Report and FY2014 Work Plan and Budget FY2013 Annual Report (July 1, 2012 to June 30, 2013) Downtown Parking Garage $ 437,400 invested The TIF made a payment of $428,400 on the Bridger Park Garage construction bond. The TIF also pledge its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund. This year’s contribution will be $9,000. Chris Naumann, TIF Director, has continued to play an active role in the operation and maintenance of the parking garage as a member of the BPC. Downtown Partnership Management Fee $ 95,600 invested The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the Downtown Partnership office in addition to a portion of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF. Technical Assistance Grant Program $ 71,688 invested $ 48,000 encumbered This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. This year the TIF awarded 8 Planning Grants and 2 Facade Grants to a variety of proposed downtown redevelopment projects. Streetscape Element Purchases $ 10,900 invested The TIF purchased additional streetscape elements to augment those already located in the downtown district. This year’s purchases included: pedestrian benches, trash receptacles, and cigarette disposal fixtures. Downtown Plan Implementation $ 6,780 invested The TIF made several small investments towards accomplishing priority objectives established in the 2009 Downtown Improvement Plan. The TIF continued to work Alta Planning to do a graphic rendering project for the Downtown Urban Route Transformation (DURT) Project. TD&H Engineering was contracted to develop initial cost estimates for DURT Phase I implementation. The TIF also contributed to a Partnership project to develop a Downtown Economic Profile report that will provide data-driven economic demographic information. Streetscape Assistance Program $ 6,000 invested The TIF received one assistance applications this year. This TIF program provides property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape and Park Maintenance $ 5,262 invested The TIF pays for the replacement of dozens of the street lamp light bulbs annually. For several years the TIF has taken responsibility for the seasonal maintenance of the landscaping, amenities, and irrigation system at Soroptomist Park. Downtown Explosion Impact Fee Relief $ 0 invested On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. Neither of the two remaining vacant parcels was rebuilt this fiscal year so in turn no funds were expended. Downtown Housing Incentive Program $ 0 invested The TIF did not receive any housing incentive applications this year. The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. Downtown Hotel Incentive Program $ 0 invested The TIF did not receive any hotel incentive applications this year. The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The specifics of this program are still being determined by the TIF Board and staff. Potentially the program will involve partial reimbursement of the impact fees associated with the development of a downtown hotel. Code Compliance Program $ 0 invested The TIF did not receive any applications for the Code Compliance Program. The program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $20,000. Downtown Tax Increment Finance-Improvement District Board (TIF) FY2014 Work Plan (July 1, 2013 to June 30, 2014) Downtown Parking Garage $ 432,000 budgeted The TIF will make the annual bond payment and long-term maintenance fund contribution for Bridger Park, the downtown parking garage. Downtown Hotel Incentive Program $ 200,000 budgeted The purpose of the Downtown Hotel Incentive Grant Program is to encourage the construction of a quality hotel within downtown TIF District. The 2009 Downtown Improvement Plan noted that Bozeman’s Main Street district lacks a “50-80 room four-star hotel”. The program offers to reimburse 50% of the impact fees associated with the development of a hotel not to exceed $100,000. The TIF Board reserves the option to incentivize two qualifying hotels. Downtown Improvement Plan Implementation $ 183,000 budgeted The TIF board has allocated funds to be invested in high-priority projects identified by the Downtown Improvement Plan. These funds could be used for further planning or design projects or for implementation of particular projects such as: DURT Phase I Preliminary Engineering $90,000 DURT Phase I Lighting CTEP Match $50,000 B3 Historic Inventory Update $15,000 B3 3D Modeling Project $ 7,500 Downtown Housing Incentive Program $ 150,000 budgeted The purpose of the Downtown Housing Incentive Grant Program is to encourage the creation of new housing units within downtown TIF District. The intent of the program is to increase the residency rate and subsequently the tax base of the TIF District. The 2009 Downtown Improvement Plan emphasizes the need to increase residential density in Bozeman’s historic core in order to support downtown as a vibrant and sustainable commercial center. The Program will reimburse a portion of housing-related impact fees for qualifying residential projects. Technical Assistance Grant Program $ 100,000 budgeted This program supports current or potential developers, owners, and tenants with technical assistance during the preliminary phases of possible redevelopment projects in the downtown tax increment district. This program facilitates navigating code requirements, preparing for the planning application and approval process, and evaluating historic preservation considerations. The following services are eligible for Technical Assistance funds: Development feasibility study, Preliminary development review, Building condition assessment, Renovation or reuse studies, Historical inventory and research, Parking requirement assessment, Preliminary cost estimates, UDO and building code analysis, Scenario planning and phasing. Downtown Explosion Impact Fee Relief $ 100,000 budgeted On January 19, 2010 the TIF and the City of Bozeman entered into a Memorandum of Understanding that the TIF would pay the any impact fees associated with construction projects resulting from the destruction of the March 5, 2009 explosion and fire. On April 26, 2013 the MOU was renewed for another three year term. There are still two properties to be reconstructed. Downtown Partnership Management Fee $ 98,500 budgeted The TIF is a member of the Downtown Bozeman Partnership, LLC which serves as the incorporated management agency for all of the downtown organizations. This management fee pays for a portion of the operating costs of the downtown office at 222 East Main Street in addition to the majority of the payroll costs of Chris Naumann, who serves as the Director of the TIF. Code Compliance Program $ 80,000 budgeted This TIF program provides property owners with partial reimbursement for life-safety code compliance upgrades. The program is specific to the installation of dedicated fire lines connecting a building’s sprinkler system to the municipal water main. The program has a one-to-one match required of the property owner and a per-project dollar cap of $20,000. Streetscape Assistance Program $ 35,000 budgeted This TIF program will provide property owners with partial reimbursement for the installation of historic street lamps in accordance with the Downtown Streetscape Plan. The program is designed to stimulate private investment, redevelopment of property and the improvement of public areas in the downtown urban renewal district. Streetscape Element Purchases $ 30,000 budgeted The TIF will continue to supplement the existing streetscape inventory by purchasing additional historic street lamps, trash receptacles, pedestrian benches, tree guards and bike racks. This year the TIF will make a considerable investment in eight multiple bin recycling receptacles to be placed along Main Street. Streetscape and Park Maintenance $ 12,000 budgeted The TIF will continue to maintain the large number of streetscape elements in the downtown district, all of which were originally purchased with TIF funds, including: historic street lamps, pedestrian benches, trash receptacles, tree guards, and bicycle racks. The TIF will continue to fund the landscaping maintenance for Soroptomist this fiscal year. Downtown Tax Increment Finance District FY2014 Budget / ACTION: Bob Hietala moved to approve the FY2014 Work Plan and Budget as presented to be submitted to the City Commission for final adoption. Vonda Laird seconded the motion. All voted in favor. 407 West Main Technical Assistance Grant Chris informed the board that he received an application for technical assistance for the property at 407 West Main. He explained that a previous grantee attempting to purchase the property had completed $2500 worth of analysis with CTA. They decided not to proceed with the purchase and halted the grant work. The new applicant, who is under contract to purchase the property, would like to pick up where the previous work left off and receive funding to help with a Growth Policy Amendment and Zone Map Amendment to convert the property to B3. The board discussed that since the initial applicant only used a fraction of the grant amount awarding a “continuation” grant made since. ACTION: Bill Stoddart moved to approve the pending technical assistance grant application for 407 West Main Street for an award not to exceed $5000.00. Vonda Laird seconded the motion. All voted in favor. KERBspace Downtown Parking Study Chris presented a proposal for a potential study of on-street parking along Main Street that would involve remote sensors developed by a local company called KERBspace: The Bozeman Parking Commission and the Downtown Bozeman Partnership have approached KERBspace regarding the collection of on-street parking data. The 2010 and 2012 Downtown Parking Studies focus primarily on the utilization of the public parking lots and Bridger Park Garage. The studies provide very limited data regarding the use of downtown’s most valuable parking: on-street. KERBspace, a Bozeman company founded by Bozeman native Bill Clem, is developing a sophisticated computerized system that allows cities to dynamically manage parking inventory. KERBspace gathers and collates a significant amount of on-street parking data using proprietary sensors that monitor a parking space and detect when an object occupies the space. KERBspace has offered to demonstrate their ability to gather, store and provide useful, actionable parking data by in-stalling a pilot program in downtown Bozeman. The pilot program would include: • Install 8-12 Sensor packages downtown in locations select-ed by the Parking Commission for a 3-4 month period. • Provide KERBsmart Dashboard with data feeds including: • In / Out times • Dwell times • Occupancy map • Vehicle size • Turnover rates KERBspace would provide a comprehensive report on find-ings and analytics at close of study period, including data stream collected during peak seasonal time of year for under-standing of the highest demand scenarios. Sensors are housed in a discrete 6”x10” black box, mounted at the top of existing streetlamps and plugged into the GFI outlet. The boxes would be clearly marked with the BPC’s Blue P logo and the KERBspace logo. The board agreed that this would be very valuable data to compliment the previous parking studies. Chris said he was presenting the proposal to the BID Board as well for their feedback. With no further new or old business to discuss, Bobby adjourned the meeting.