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Home My WebLink About06-17-14 Downtown Tax Increment Finance District (TIF) Minutes Downtown Tax Increment Finance Board Meeting Minutes June 17, 2014 Attending: Bobby Bear, Bob Hietala, Vonda Laird, Bob Lashaway, Bill Stoddart, Scott Lee, Carson Taylor, Chris Naumann Absent: Shannon Haish Guests: Chuck Winn, Anna Rosenberry, Natalie Meyer Public Comments Dan Himsworth and Jolee Barry expressed interest in coordinating a new streetscape along the east and west sides of South Tracy between Main and Babcock Streets. They said this would be possible if it could be done using SID funding. They asked if their project could be included with the proposed Mendenhall streetscape SID. Disclosures None Minutes ACTION: Bob Hietala moved to approve the May minutes as presented. Bill Stoddart seconded the motion. All voted in favor. Financial Report Chris presented the Finance Report noting there was only one expenditure of $630 for seasonal landscaping work at Soroptomist Park. He noted that he was still waiting for year-end revenue figures from the City who was in turn waiting for the figures from the Montana Department of Revenue. Chris said he would hopefully be able to present the final FY2014 finance report at the July meeting. The board had no questions regarding the finance. Executive Director’s Report Technical Assistance Program Update The first chart below lists the 2 remaining grants from FY2013 that have not been completed. The second chart lists the 10 grants awarded in FY2014 totaling a $59,000 commitment of the $100,000 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. Bold listings indicate completed. Work Plan and Budget Presentation to City Commission I presented the TIF FY2015 work plan and budget to the City Commission on June 2nd. The Commission had a few questions including if there was a way to consider incentivizing affordable housing. They thanked me and the TIF board for all the great work that is being done in the district. Technically the work plan and budget will be approved with the entire City budget at the June 23 Commission meeting. Downtown Breakfast and Awards The breakfast event on June 12 went very well with approximately 60 people in attendance. Andy Holloran was the keynote speaker and addressed his philosophy about the need for infill development in the downtown core. He announced his plans to build a 5-story mixed use building at the northwest corner of Tracy and Mendenhall (the current location of the American Federal Bank). The following Downtown Awards were presented: • Downtown Community Award to First Interstate Bank • Downtown Cornerstone Award to Country Bookshelf • Life is Downtown Award to Ileana Indreland Downtown Parking Update The graphs below show the trends in both garage use and revenue for May. Entries and revenue were up 8% and up 21% over May 2013. Therefore year-to-date entries and revenue for 2014 are up 18% and 17% respectively over 2013. FY2013 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type SWN Creekside 317 East Mendenhall Susan Neubauer Weirich & Greenspace Facade Bozeman Spirits 121 West Main Jim Harris Locati Planning FY2014 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type 34 North Bozeman 34 North Bozeman Big Sky Beverage Intrinsik Planning Masonic Temple 14 South Tracy Masonic Temple CTA Planning Masonic Temple 14 South Tracy Masonic Temple CTA Facade Lindley Park Hotel 702 East Main Renslow Group Minarik Architecture Planning Grand & Main 136 West Main Bzn Redevelopment Thinktank Planning Willson Residences 404 West Main Bridger Builders Comma Q Planning Willson Residences 404 West Main Bridger Builders Comma Q Facade The Dutton 131 West Main Dutton Developers Springer Group Planning The Dutton 131 West Main Dutton Developers Springer Group Facade Montana Motor 23 West Babcock MMSB, LLC AE Dynamics Planning Discussion and Decision Items Bridger Park Garage LED Retrofit Proposal Anna Rosenberry (COB Finance Director), Chuck Winn (COB Assistant City Manager) and Natalie Meyer (COB Sustainability Coordinator) presented the board with a proposal to install LED light fixtures in the basement and first floor levels of the Bridger Park Garage. Natalie explained that the City retained McKinstry to audit numerous municipal facilities for possible energy efficiency projects. The garage was identified as a light and electricity intensive facility and retrofitting the garage with LED lights would net a high return on investment in terms of energy savings. See attachment. Anna requested that the TIF board consider funding the installation of the recommended LED fixtures on the lower two floors of the garage totaling approximately $100,500. The board asked various questions and discussed the specifics of the McKinstry recommendation. Bobby asked what the plan would be to install LED fixtures on the upper floors. Anna answered that neither the BPC nor the City CIP has the financial capacity to commit the necessary funds to upgrade the upper floors. Bob Lashaway suggested the board consider converting the entire facility all at once as soon as possible. Bob Hietala asked how much a complete conversion would cost. Natalie responded that the original estimate from McKinstry was approximately $198,000. Chris mentioned that the total would be reduced if the roof was not converted considering the BPC was looking into installing a free standing roof that would require new light fixtures. Bob Lashaway added that he would rather not pay for the “measurement and verification” services. The board agreed that if the roof and verification services were excluded that they would fund converting the garage to the recommended LED fixtures. The board indicated that in return for funding the project they would require the BPC to enter into a Memorandum of Understanding stipulating at a minimum that the energy savings be invested in the garage long-term maintenance fund. The board asked Chris to draft the MOU for the board to review. ACTION: Bob Hietala moved that the TIF Board provide financial support not to exceed $200,000 for the Bridger Park Garage LED Retrofit Project subject to the revision of the McKinstry scope of work to include the entire garage (excluding the roof fixtures) with the elimination of the “Measurement & Verification” services. Funding will be contingent on the Bozeman Parking Commission accepting terms proposed by the TIF Board for the reallocation of energy savings and garage lighting capital funds. Bob Lashaway seconded the motion. All voted in favor. Board and Officer Appointments Chris reminded the board that they needed to appoint the officers—Chair and Vice Chair—for fiscal year 2015. Bobby and Bill offered to continue to serve as Chair and Vice Chair respectively. Chris asked if any other members would like to be considered for either officer position. None responded. ACTION: Bob Lashaway moved to nominate Bobby Bear to serve as Chair and Bill Stoddart to serve as Vice Chair for coming year. Bob Hietala seconded the motion. All voted in favor. At 1:15pm Bobby adjourned the meeting. Bridger Parking Garage LED Retrofit Proposal I. Background a. City of Bozeman is completing an energy audit of 30 buildings and facilities. Converting City facilities to LED lighting is high priority of the City Commission. b. McKinstry is an Energy Services Company that provides turnkey service, along with guarantees on cost and utility savings. c. A LED lighting project at the Bridger Parking Garage was highlighted as one of the top energy- saving opportunities. II. The Project a. Replace existing metal halide fixtures with individually controlled Philips Gardco 70 watt LED fixtures at basement and first floor (104 luminaires). b. Integral sensor will dim to 10% illumination when garage is unoccupied. i. Sensor will detect any motion within a 22’ radius and turn on to full power. ii. Remains on for 5 minutes. c. 5-year warranty on the lamp and sensor. d. Rated for 70% illumination for 100,000 hrs at average of 77°F. i. Based on occupancy of other McKinstry parking garage projects, this will equate to 15-20 years. e. 3rd party quality assurances: i. f. LEDs would take 2 to 3 weeks to build with the integral sensor, then 1 week to ship. It would then take 2 weeks to install the LEDs. III. Cost and Payback Guaranteed Maximum Price $100,514 Guaranteed Annual Utility Savings* $6,949 Annual Operational Savings** $2,868 Simple Payback 12.4 years *Savings guaranteed for three years during measurement and verification period **Payback includes 5 years of operational savings a. Breakdown Materials $59,400 Labor $9,500 Disposal $1,800 Permit $700 State of Montana Gross Receipts $1,005 Construction Admin, Design, Performance & Payment Bond, Safety, Measurement & Verification, Overhead & Profit $28,109 Total $100,514