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HomeMy WebLinkAbout11-12-13 Downtown Tax Increment Finance District (TIF) Minutes / Downtown Tax Increment Finance Board Meeting Minutes November 12, 2013 Attending: Bobby Bear, Shannon Haish, Vonda Laird, Bob Lashaway, Scott Lee Carson Taylor, Chris Naumann Absent: Bob Hietala, Bill Stoddart Public Comments None Disclosures None Minutes ACTION: Bob Lashaway moved to approve the October minutes as presented. Vonda Laird seconded the motion. All voted in favor. Financial Report Chris presented the financial report which included only $376 of expenses. Chris summarized the answers provided by the City of Bozeman Finance Department to answer the three questions posed by the board in August: 1) Explain the difference in the year-end/year-begin account balance. The difference of $141,549 comes from a couple of sources: For budgeting purposes, we aren’t finished with a fiscal year. We are making estimates on collection of revenues and the expenditure of money through the end of the fiscal year. But, they’re just estimates. In the case of the Tax Levy funds, we are required under governmental accounting rules to recognize revenue received in July-Aug-Sept of the new FY as revenue of the old FY. I know it’s confusing, but the rules relate to when it is available to pay obligations of the government. So, the FY13 balances were changing clear into September, when we received the final FY13 payments from Gallatin County. $65,000 of income was accrued. Our Interest Income distribution can’t be completed until cash balances are finalized (above), so those were also posted in late August. The Final State Entitlement Share payment was posted in late July $22,718. 2) Does the FD use a cash or accrual basis when they provide TIF financial figures? They are usually CASH basis. Our financial statements are modified accrual, but we usually quote cash numbers throughout the year. 3) What is the approximate tax increment per $1million of new development? Here’s the framework I’d use: $1M of development could result in $10,154 in property tax revenue for the increment district. There was no further discussion regarding finances. Executive Director’s Report Technical Assistance Program Update **no new activity** The chart below lists the 8 remaining grants from FY2013 that have not been completed. No grants have been issued in FY2014, therefore $0 of the $100,000 budget has been allocated. 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 (0 of 8 projects) FY2014 Downtown Technical Assistance Program        Pro ject Name Project Address Applicant Professional Grant Type  SWN Creekside 317 East Mendenhall Susan Neubauer Weirich & Greenspace Facade  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  Thrive Headquarters 404 E Babcock Scott Dehlendorf Intrinsik Planning  Osborn Block 229 East Main Chris Pope Intrinsik Planning  Imperial Inn 122 West Main Eric Nelson ThinkTank Planning  101 E Mendenhall 101 E Mendenhall Big Sky Beverage Intrinsik Planning   Street Hardware Update The Lumec streetlamp base covers have finally arrived. Depending on the maintenance staff workload and the weather, we may replace the old corroded ones before winter sets in or wait until spring. The recycling receptacles will be shipping out this week. We will place one per block face as soon as they arrive and do a press release about single-stream recycling downtown. Holiday Decorations Update Here is the holiday schedule for the downtown decorations: 11/19-2 0 Streetlamp Garland Installed 12/2 Holiday Spiders Installed 12/3-4 Holiday Wreaths and Soroptomist Lights Installed 12/7 Christmas Stroll 1/6 Holiday Spiders Removed 1/7-8 Holiday Wreaths and Soroptomist Lights Removed 1/6-8 Streetlamp Garland Removed Downtown Parking Update The graph on the back of this page shows an increase in both garage use and revenue for October. Entries and revenue were up 17% and 26% over October 2012. Year to date both entries and revenue are up 13% and 12% respectively. / Discussion and Decision Items COB Ord. 1874—Manufacturing Definition The board discussed the memo Chris had previously distributed titled “Proposed Text Amendment to the Municipal Code Defining Manufacturing” (included below). The board agreed that the “artisan” definition was needed to allow a wider variety of cottage manufacturing downtown. After further discussion the board took the following action. ACTION: Vonda Laird moved to support artisan manufacturing with a retail component in the designated core but any artisan manufacturing without a retail component proposed within the core should require a Conditional Use Permit. Bob Lashaway seconded the motion. All voted in favor. The board asked Chris to prepare a recommendation to the City Commission expressing the board’s stance. Chris said he would draft the memo and send to the board via e-mail for their review prior to final submittal. ED Job Description Bobby updated the board on the process to revise the Executive Director’s job description. The current draft includes the following sentence under “Downtown Partnership Responsibilities”: “Seek prior approval from the appropriate downtown board(s) before publicly taking an official position before the City Commission” During the ensuing discussion board members emphasized that the very nature of the executive director position is to direct at an executive level. Vonda and Bobby recalled that there was general agreement among those on the PMC that the boards needed advance notice and specific information about any public position the ED takes with the City Commission. They stated that at the time the PMC didn’t advocate something more restrictive such as seeking prior approval. Furthermore the TIF Board acknowledged that other provisions within the job description clearly establish that the ED works for the downtown boards and is charged with carrying out each board’s mission statements and objectives. ACTION: Bob Lashaway moved that this particular provision in the Executive Director’s job description should read “Consult with the downtown boards prior to taking an official position before the City Commission”. Vonda Laird seconded the motion. All voted in favor. The board asked Chris to draft a memo to the BID board requesting this revision and send it to Bobby and Bill for approval before submittal to the BID. Future Project List Chris presented a document titled “Downtown Urban Renewal Investment Plan” which he explained is an expansion of the financial projections through 2020 that the board reviewed at the October meeting. The Plan plots the various expenditures along a timeline and includes brief project descriptions. Chris informed the board that he would continue to further develop the plan with more details for each project. B3 Project Updates Due to a lack of time Chris proposed that he put the B3 Project Updates on the next meetings agenda. All agreed. At 1:10pm Bobby adjourned the meeting. PROPOSED TEXT AMENDMENT TO THE BOZEMAN MUNICIPAL CODE DEFINING MANUFACTURING AND ASSIGNMENT TO ZONING DISTRICTS Below are excerpts from the City of Bozeman Draft Ordinance No. 1874 adding a third manufacturing category called “artisan” and revising how the three types of manufacturing uses would be allowed in each zoning district. As proposed two of the three manufacturing categories would be allowed in the downtown B3 district. Below are a summary and my analysis of the two types of manufacturing that are proposed in the B3 district. SUMMARY Manufacturing Definitions 1. Artisan—Proposed New Definition Section 38.42.1865. Manufacturing, artisan “Production of goods by the use of hand tools or small-scale, light mechanical equipment occurring solely within an enclosed building where such production requires no outdoor operations or storage, and where the production, operations, and storage of materials related to production occupy no more than 3,500 square feet of gross floor area. Typical uses have negligible negative impact on surrounding properties and include woodworking and cabinet shops, ceramic studios, jewelry manufacturing and similar types of arts and crafts, production of alcohol, or food processing.” 2. Light—Existing Definition Sec. 38.42.1870. Manufacturing, light Fabrication of and/or assembly of goods from previously prepared materials. Zoning Application as proposed in Ord. No. 1874  Permitted Uses   B-1 B-2 B-3  Manufactur ing-Artisan  P P P  Manufacturing-Light   C C3  P=Principal Use C=Conditionally Permitted Use 3=”Except on ground floor in the core area” between the alleys from Rouse to Grand Artisan Manufacturing is proposed to be allowed as a Principal use in the B3 district. This means that if an Artisan Manufacturing use is proposed anywhere in the B3 that does not require any other higher levels of review and approval, that Artisan Manufacturing use would be administratively approved within the Community Development Department. Light Manufacturing is currently not allowed in the B3 district. Ordinance No. 1874 proposes to allow Light Manufacturing in the B3 district as a conditionally permitted use except for in the core area where it will not be permitted on the ground floor. This means that if a Light Manufacturing use is proposed anywhere except in the core area would require a Conditional Use Permit to be applied for, reviewed by Community Development Department and ultimately approved by the City Commission. Zoning Commission Public Hearing On Tuesday November 5, 2013 the Zoning Commission held a public hearing regarding Ordinance 1874. The Zoning Commission consisted of Erik Garberg, Trever McSpadden, George Thompson, and Carson Taylor. Chris Saunders, COB, presented the staff report. The ZC members discussed some of the nuances of the “artisan” definition and asked staff several questions about how it would apply to several different zoning districts. The only public comment was offered by Michael Delaney who said he supported the proposed changes but asked that a retail requirement be added to the “artisan” definition so as to ensure a certain amount of vibrancy. The ZC members acknowledged Mr. Delaney’s request and the importance of foot traffic and “store front” vibrancy. They offered that market forces (i.e. lease rates) would in all likelihood drive any downtown artisan manufacturing to include a retail component as a revenue source. Staff also offered the option to modify the 3500 square foot requirement and/or to recommend “artisan” manufacturing require conditional approval in the core area of the B3 district. The ZC approved a motion recommending that the City Commission adopt Ordinance 1874 as proposed. ANALYSIS H ere are some examples of businesses that would be classified accordingly if Ordinance 1874 were in place: Artisan—Carter’s Cobbler, former JoNae’s Chocolate Shop, La Chatelaine Chocolates About 18 months ago, On the Rise Bakery inquired about relocating downtown but was classified as “manufacturing” which at the time was not allowed. Light—Alpha Graphics (Color World) Printers, Insty-Prints Approximately a year ago, Mystery Ranch Backpacks considered relocating to an off-Main downtown location but manufacturing was not allowed at that time. There has been a long history of great downtown businesses that technically should have been classified as manufacturing and therefore were non-conforming. There is also a history of businesses looking to relocate downtown and would have been positive additions to the business mix that were classified as manufacturing and therefore not allowed. I think that the new definition and subsequent zoning assignments will allow a more diversified business base to be established in downtown. I envision Artisan and some Light manufacturing businesses will help downtown expand to the north and south of Main Street. Artisan manufacturing businesses might play a role in revitalizing the alleys. One suggestion I have for the boards to consider is requesting that Artisan manufacturing be classified as a principal use in the B3 District except in the designated core area (between the alleys from Rouse to Grand). This classification would require any Artisan manufacturing business proposing to locate in the core area to seek a Conditional Use Permit. The CUP process includes a public hearing which would allow downtown stakeholders and the downtown boards to publically support or oppose each proposed Artisan use on a case by case basis. Prepared by Chris Naumann, Executive Director, Downtown Bozeman Partnership 10/28/13