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HomeMy WebLinkAboutA4. TIF FY16 Budget and Workplan May 20, 2015 TO: Chris Kukulski Anna Rosenberry Bozeman City Commission FR: Chris Naumann Executive Director RE: Tax Increment Finance District FY 2016 Budget and Work Plan Commission Meeting: June 1, 2015 Attached are the Downtown Tax Increment Finance District (TIF) FY2015 Annual Report, FY2016 Work Plan and FY2016 Budget. The FY2015 Budget was unanimously approved by the TIF Board on May 19, 2015. I will be presenting these documents at the City Commission meeting on Monday, June 1, 2015. If you have any questions regarding the annual report, work plan or budgets, please feel free to contact me at any time. Respectfully Submitted, Chris Naumann 337 Downtown Tax Increment Finance (TIF) FY2015 Annual Report and FY2016 Work Plan and Budget On November 6, 1995, the City Commission passed Ordinance No 1409 adopting the Urban Renewal Plan for downtown Bozeman. The intent and purpose of the Urban Renewal Plan emphasizes: 1. Bozeman’s historical character as a “working” downtown shall be maintained. 2. Traffic movement and access shall be designed with the emphasis on the downtown as a designation rather than improving the flow of through traffic. 3. The facilitation of private/public partnerships is encouraged in the implementation of the Plan. 4. Objectives shall be accomplished by incentives whenever possible. 5. Private property rights will be respected. 6. Administrative practices shall be conducted in a constructive manner which fosters cooperation. The Urban Renewal Plan established nine “Guiding Principles” to provide direction for improving Bozeman’s historic downtown. The Urban Renewal Study Committee considered the first three principles more important than the next three with the last three the least important. However, the Committee deemed all nine principles to be vital to achieving the vision for downtown. Key implementation actions were identified for each principle (may apply to multiple principles, but are only listed once below). 1. Strengthen downtown’s economic vitality  Provide more, better managed parking; retain public offices and anchor businesses; facilitate commercial development; eliminate unnecessary regulatory barriers to reinvestment; enable high density housing; eliminate through truck traffic and restore Main Street as pedestrian-friendly 2. Improve the safety, security and health of the district  Improve traffic flow emphasizing downtown as a destination; improve public works; improve night- time lighting; improve sidewalks; increase police presence; improve alley and parking lot appearance and safety 3. The image of downtown shall be continuously improved  Improve streetscape aesthetics and amenities; enhance appearance of and accessibility to Bozeman Creek; improve trash removal 4. Downtown’s accessibility shall be improved  Provide effective public transportation; better accommodate bicycles; reduce reliance on private automobiles 5. “Community Partnership” is fundamental to downtown’s success  Encourage growth of cultural activities; preserve historic character 6. Downtown’s diversity shall be facilitated 7. The cost of projects and programs shall be weighed against their benefits 8. Downtown shall become more user friendly 9. Cultural activities shall be nurtured and expanded downtown TIF-IDB Mission Statement The Downtown Bozeman Tax Increment Finance board (TIF) will foster an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center. 338 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2015 Annual Report (July 1, 2014 to June 30, 2015) Downtown Parking Garage $ 437,000 invested The TIF made a debt service payment of $427,000 on the Bridger Park Garage construction bond. The TIF also pledged its interest earnings to the Bozeman Parking Commission’s Long-term Maintenance Fund. This year’s contribution will be $10,000. 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 Hotel Incentive Program $ 200,000 encumbered The TIF received hotel incentive applications this year and awarded up to $100,000 each to the Etha and Element hotel projects. 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 provides reimbursement of the impact fees associated with the development of a downtown hotel upon issuance of the City occupancy permit. Bridger Park Garage LED Lighting Project $165,000 invested The TIF funded purchase and installation of 188 state-of-the-art LED light fixtures in the garage. This project was identified as a high priority in the City of Bozeman Energy audit performed by McKinstry. The project will save the Parking Division upwards of $15,000 annually in electricity and operating costs. Downtown Partnership Management Fee $ 100,000 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 majority of the payroll costs of Chris Naumann, who serves as the Executive Director of the TIF. Technical Assistance Grant Program $ 99,600 invested $ 40,000 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 5 Planning Grants and 1 Facade Grants to a variety of proposed downtown redevelopment projects. Fiber Broadband Project $ 58,000 invested The TIF funded the design and engineering of downtown’s portion of Bozeman’s Fiber Master Plan. Design 9 was selected to design the downtown fiber network that will not only service businesses be an important link in the parts of network that connect the School District, City and County properties. DURT Phase 1 Preliminary Engineering $ 50,000 invested The TIF began the design and engineering work for a large streetscape improvement project involving 21 block faces in downtown. The contract was awarded to TD&H Engineering and their work will continue in FY2016. 339 Streetscape Element Purchases and Maintenance $ 31,000 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 bike racks. The TIF also funded the on-going maintenance of the streetlamps and Soroptomist Park. Downtown Truck Traffic Study $ 20,000 invested The TIF contracted with the Western Transportation Institute to conduct a quantitative study of the through-semi-truck traffic along Main Street. The 1995 Urban Renewal Plan, 1998 Downtown Improvement Plan and 2009 Downtown Improvement Plan all called for looking closely at the impact of interstate truck traffic on the downtown district. Downtown Plan Implementation $ 12,500 invested The TIF made two small investments towards accomplishing priority objectives established in the 2009 Downtown Improvement Plan. The TIF invested another $6,000 in the Downtown 3D Modeling Project. The TIF also committed $10,000 to the B3 Zone Map Amendment project. Code Compliance Program $ 10,000 invested 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 $10,000. Streetscape Assistance Program $ 12,000 invested 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. 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. 340 Downtown Tax Increment Finance-Improvement District Board (TIF) FY2015 Work Plan (July 1, 2014 to June 30, 2015) Downtown Parking Garage $ 437,000 budgeted The TIF will make the annual bond payment and long-term maintenance fund contribution for Bridger Park, the downtown parking garage. Downtown Public Parking Lot Improvements $ 250,000 budgeted The TIF is committed to partnering with the Bozeman Parking Commission and the Parking Enterprise Fund to make strategic functional and aesthetic improvements to the City-owned parking lots downtown. Improvements will include stormwater compliance, internal lighting, landscaping, and reconfigured vehicle circulation. Downtown Hotel Incentive Program $ 200,000 encumbered 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 up to $100,000 of the impact fees associated with the development of a hotel. The TIF Board awarded incentives to the Element and Etha hotels in FY2014. DURT Phase 1 Design and Engineering $ 180,000 budgeted The TIF will continue the design and engineering work for a large streetscape improvement project involving 21 block faces in downtown. Once the design is complete, an SID will be formed to finance the construction work, if feasible. Downtown Housing Incentive Program $ 100,000 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 Program will reimburse a portion of housing- related impact fees for qualifying residential projects. Downtown Broadband Infrastructure $500,000 budgeted The TIF has committed funding to begin the construction and implementing the public portion of a fiber optic broadband network downtown as previously design as one component of the Bozeman Fiber Master Plan. 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 $100,000 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. 341 Technical Assistance Grant Program $ 50,000 budgeted $ 40,000 FY15 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. Alley Improvement Incentive Program $ 25,000 budgeted The TIF will offer a new program to assist property owners in the implementation of the ideas presented in the Downtown Alley Sketchbook. This document provides numerous examples of how to improve the alley corridors with lighting, landscaping, and hardscaping. The incentive program will focus on assisting with the installation of pedestrian-scale lighting in the alleys. Code Compliance Program $ 50,000 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 $10,000. Downtown Improvement Plan Implementation $ 40,000 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 specifically designated as follows: GVLT Burke Park Bridge Project $ 25,000 Downtown Wayfinding Contribution $ 15,000 Streetscape Element Purchases and Maintenance $ 37,500 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. Funding is also available for the ongoing maintenance of the streetlamps and Soroptomist Park. Streetscape Assistance Program $ 20,000 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. Downtown Comprehensive Parking Plan $ 20,000 budgeted This TIF will contribute funds to the development of the Bozeman Parking Commission’s Comprehensive Parking Plan. The RFP for consultant selection was released in May of 2015 and the Plan will be completed in early 2016. The FY2015 Downtown Tax Increment Finance District Work Plan and Budget were unanimously approved by the TIF Board on May 19, 2015. 342 Downtown Tax Increment Finance District FY2016 Budget FY2016 Category BUDGET Income Starting Cash Balance 1,621,036$ Income from TIF (estimated)427,000$ COB Interlocal Share 335,113$ Entitlement Share State of Montana 45,436$ Interest Income (estimated)11,000$ Total Income 2,439,585$ Expense Operations Management Fee and Admin.100,000$ Total Operations 100,000$ Infrastructure Improvements Street Furniture and Park Maintenance 7,500$ Streetscape--new purchases 30,000$ Streetscape Assistance Program 20,000$ Wayfinding Signage--fab & install 10,000$ Alley Improvement Incentive Program 25,000$ Public Parking Lot Improvements 250,000$ Code Compliance Program 50,000$ Encumbered for Olive & Wallace -$ Fiber-Broadband Infrastructure 500,000$ GVLT Burke Park Bridge Project 25,000$ Bridger Park LED Project -$ Total Improvements 917,500$ Planning Technical Assistance Grants 50,000$ FY13 Encumbered Funds -$ FY14 Encumbered Funds -$ FY15 Encumbered Funds 40,000$ Residential Incentive Program 100,000$ Hotel Incentive Program -$ FY14 Encumbered Funds 200,000$ DBIP Implementation Funds Miscellaneous 20,000$ Encumbered FY14 WTI Truck Route Study -$ B3 3D Modeling Project -$ B3 Historic Inventory Update -$ B3 ZMA Project -$ City Wayfinding--Downtown Planning 5,000$ DURT Phase 1 Prelim Engineering 60,000$ DURT Phase 1 Final Engineering 120,000$ DURT Phase 1 Lighting Contribution -$ Comprehensive Strategic Parking Plan 20,000$ Total Planning 615,000$ Parking Structure Garage Bond Payment 427,000$ Garage Long-term Maintenance Fund 10,000$ Total Parking Garage Payments 437,000$ Explosion Impact Fee Expenses Explosion Impact Fees 100,000$ Total Impact Fee Expenses 100,000$ Total Expenses 2,169,500$ Year End Balance 270,085$ 343