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HomeMy WebLinkAbout02-17-15 Downtown Tax Increment Finance District (TIF) MinutesDowntown Tax Increment Finance Board Meeting Minutes February 17, 2015 Attending: Bobby Bear, Shannon Haish, Bob Hietala, Vonda Laird, Scott Lee, Bill Stoddart, Carson Taylor and Chris Naumann Absent: Bob Lashaway Public Comments None Disclosures Bill Stoddart mentioned that the Library Foundation Board, of which he is a member, is continuing their planning process to evaluate the landscaping and patron/pedestrian access issues at the Bozeman Library. Chris reminded the Board that the Library Board had reached out to him about this project several months ago. Minutes ACTION: Bill Stoddart moved to approve the January minutes as presented. Bob Hietala seconded the motion. All voted in favor. Financial Report Chris presented the finance report as of February 17, 2015. He informed the board that the COB Finance Department confirmed that the annual Entitlement Share income was (and would continue to be) $45,436 and therefore all future finance reports and budgets will account for this increased amount. The expenses over the last month included payments towards several work plan projects including Truck Study, 3D Model, ZMA, Streetscape engineering totaling new expenditures of $17,268. The board had no questions regarding the finance report. Executive Director’s Report Technical Assistance Program Update The first chart lists the remaining FY2014 grants. The second chart lists grants that have been awarded thus far in FY2015. 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. Garage LED Light Project Three responses were submitted for McKinstry’s Parking Garage RFP and Tyler Electric had the lowest qualifying bid. The revised project cost is now $163,068, which is a $19,438 savings from McKinstry’s contracted Guaranteed Maximum Price. There is still $5,500 in contingency that may not be needed. The LEDs have been ordered and should arrive mid-March and the installation is currently scheduled to begin at the end of March and will take 12 work days with the commissioning. McKinstry will coordinate with Tyler Electric and Scott Lee on the installation. Montana Legislative Session There is only one bill related to tax increment finance law currently in committee for the 64 th session of the Montana Legislature. HB114 "AN ACT CLARIFYING LAWS RELATED TO THE USAGE OF TAX INCREMENT REMITTANCES TO SCHOOL DISTRICTS TO ENSURE A REDUCTION IN LOCAL PROPERTY TAXES” This bill would potentially how school districts view TIF districts. The Taxation Committee will consider the bill at a hearing on February the 19 th . Building Project Updates 5 West Building (northwest corner of Mendenhall and Tracy) The City Commission approved the final site plan and other entitlements on December 8, 2014. The developer is projecting to begin construction during the 2 nd quarter of 2015. FY2014 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type 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 FY2015 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type 101 E Mendenhall 101 E Mendenhall Liane Johnson Intrinsik Planning Owenhouse Bike Shop 25 South Black Eric Bowman Focus Planning Fechter Rear Façade 128-134 East Main Michael Guglielmino Focus Facade Dutton Building (131 West Main--corner of Grand and Main) is under construction. The developer has several of the new units available for lease including 5000 square feet of office on the second floor. Block M Residences (on Lamme between Black & Tracy): All 10 units of Phase 1 are complete. Construction of Phase 2—8 additional units—began this fall and should be completed early Fall of 2015. Element Hotel (at old Kenyon Noble site): Projecting to open in June 2015. Lark Motel (formerly the Imperial Inn): Projecting to open April 1, 2015. Downtown Parking Update The Parking Commission and Western Transportation Institute are finalizing the third Downtown Parking Study. Occupancy Rates for the side streets between Babcock and Mendenhall plus for all the public surface lots and the garage were studied. Analogous to the 2010 and 2012 studies, data was collected on a week day and a weekend day in July, August and September. The 2014 study juxtaposes all three years’ data to show trends in use. The final report will be released in February 2015. The chart below show the trends in both garage use and revenue for 2015. The year-to-date entries and revenue for 2015 are up 20% and 34% respectively over 2014. January 2015 had average daily entries of 441 cars and an average of $195 in daily revenue. Discussion and Decision Items Downtown Fiber Network Update David Fine, COB Economic Development Department, provided an update about the Bozeman Fiber Master Plan (included below). The board asked several questions about the phasing. David indicated the phasing of the various rings of the network would be dictated by available funding. He said he anticipated that the North 7 th and Downtown rings could be Phase One if the respective TIF Districts commit the necessary funding. The Board asked what the estimated cost would be to construct the downtown ring and David replied between $500,000 and $600,000. Chris clarified that the Bozeman Fiber Master Plan identified the need to run fiber/conduit down the length of both alleys so as to provide access to businesses on Main Street. Therefore this would be in addition to the fiber/conduit to be installed as part of the streetscape projects. The board discussed that funding this project should be a priority in FY2016. They asked the following questions to be answered and discussed at the next Board meeting:  With the TIF’s financial investment, what liability would the TIF have for maintenance/repair/upgrades to the infrastructure?  If the TIF was to receive lease payments for use of the infrastructure, what entity would be making the lease payments and what liability would that lease/payment relationship create for the TIF?  What, more specifically, would the TIF’s relationship with the “Bozeman Fiber” (non- profit) entail legally, fiscally, and managerially?  Who would the TIF be providing the funding to for final design (the already allocated $100k)?  Who would the TIF be providing the funding for construction (the approximate $500- $600k)? Downtown Fiber Plan Update 2-17-2015 Update  Master Plan finalized and submitted by Design Nine [January 2015]  City Commission held public hearing about the study and adopted the Master Plan [January 26, 2015]  Adopted “Bozeman Fiber Master Plan and Feasibility Study” www.bozeman.net  Departments  Administration  Economic Development http://weblink.bozeman.net/WebLink8/0/doc/78575/Electronic.aspx City of Bozeman Next Steps  Establish phases of the Master Plan are financially feasible  Hold public hearing at City Commission establishing Downtown Fiber Infrastructure Project as a formal Urban Renewal Project via City ordinance per MCA 7-15-4216-4221 Downtown TIF Next Steps  TIF Board Action supporting designation of Downtown Fiber Infrastructure Project as a recognized Urban Renewal Project per MCA 7-15-4216-4221no later than Thursday March 5, 2015 o (March TIF meeting could be held 2 weeks early or TIF could meet twice in March).  Identify Downtown Fiber Infrastructure Project in FY2016 Work Plan  Commit necessary Downtown Fiber Infrastructure Project funding in FY2016 Budget Proposal If agreeable to the TIF Board, the following proposal will be prepared and presented:  Revised 3-year TIF budget outlook including estimated Fiber Infrastructure Project costs.  Formal language for a TIF resolution/action supporting designation of Downtown Fiber Infrastructure Project as a recognized Urban Renewal Project.  Draft Project timeline showing public process, design and construction dates.