HomeMy WebLinkAbout02-03-15 NURB minNURB Meeting - February 3, 2015 1
Northeast Urban Renewal Board (NURB)
Regular Meeting
Tuesday, February 3, 2015
The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday,
February 3, 2015, in the Conference Room, Professional Building, 20 East Olive Street,
Bozeman, Montana.
Present: Absent:
Voting Members:
Tom Noble, Chair Daniel Doehring
Erik Nelson
Robert Pavlic
Jeanne Wesley-Wiese
Non-Voting Members:
Commissioner Liaison:
I-Ho Pomeroy
Staff:
Brit Fontenot, Economic Development Director
Allyson Brekke, Neighborhood Coordinator
Robin Sullivan, Recording Secretary
Guests:
John Usher, 423 East Tamarack Street
Liz Galli-Noble, 401 North Church Avenue
Call to Order – Chair Tom Noble called the meeting to order at 6:35 p.m.
Public Comment – No comment was received under this agenda item.
Consent Items –
Approve minutes from January 6, 2015 meeting. It was moved by Erik Nelson,
seconded by Bob Pavlic, that the minutes of the meeting of January 6, 2015, be approved as
submitted. The motion carried on a 4-0 vote.
Discussion/Action Items –
Discussion of possible budget amendment to include design of North Wallace
Avenue street improvements in this year’s budget. Chair Noble noted that at last month’s
meeting, Director of Public Service Craig Woolard asked for a $25,000 contribution from this
Board to cover half the costs of designing the street improvements for North Wallace Avenue. He
noted that during the presentation, the Director indicated a contribution to the design costs would
NURB Meeting - February 3, 2015 2
accelerate the process of completing street improvements within the district; however, he noted
this raised questions in his mind. He asked how the design process would take place, this
Board’s role, and interaction with the engineers. He stated that he was uncomfortable with the
presentation and the request made and, as a result, requested additional discussion be included
on this agenda.
Erik Nelson noted that former Assistant City Manager Ron Brey, in his presentation when the tax
increment financing district was formed, indicated that theoretically monies can be spent outside
the district as long as they benefit the district, and cited the extension of a sewer line to a district
without sewer as an example. He then suggested that, based on that analogy, it might be
possible to spend TIF monies on improvements to the railroad crossing on North Wallace Avenue
since it would benefit the district even though it lies outside the district boundaries.
Erik Nelson then turned his attention to the Director of Public Service’s presentation at last
month’s meeting, noting that the Board’s interest is in floating a bond issue to improve East
Peach Street and East Tamarack Street since the designs for those street improvements have
been completed. He noted it had been his hope that the Board could tap into the City’s street
improvement fund to assist with the costs of the street improvements. However, the Director of
Public Service takes a more macro position, looking at the entire street structure. As a result, he
has found North Wallace Avenue is more important from a traffic standpoint, particularly in light of
the impending Story Mill Park development and the reconstruction of North Rouse Avenue. It is
obvious that improvements to that street need to occur before those two projects begin, and that
appears to be the impetus for the Director’s presentation at the last meeting. He noted that this
Board has had input from outside influences in the other street designs it has undertaken, such
as the Bozeman Area Bicycle Advisory Board’s input on East Peach Street improvements. He
suggested that the Board could impose stipulations on its monies for the design of North Wallace
Avenue, including the level of Board participation and public outreach. He then suggested that
this is an opportunity to piggy back with the City to make sure that infrastructure improvements
are made more quickly and cost effectively. He recognized that a joint project for improvements
to North Wallace Avenue will include the creation of a special improvement district to cover
approximately half of the costs; however, he proposed that tax increment financing monies could
be used to pay those costs for the property owners within this district. Since approximately one-
half of the length of the street lies within the district, this could also help to ensure the successful
creation of a special improvement district. He concluded by noting that the design for North
Wallace Avenue would be approximately one-half of the cost for the other street designs,
stressing that how it gets improved is still up to this Board.
Chair Noble questioned where this Board would be if it agrees to work with the City on these
improvements and a special improvement district does not pass.
Erik Nelson responded that it would put this Board in the same position on North Wallace Avenue
as it is on East Peach Street and East Tamarack Street – designed and shovel ready.
Responding to Jeanne Wesley-Wiese, Erik Nelson stated that the street improvements are to
occur within the existing right-of-way, and the design would possibly include boulevards and
NURB Meeting - February 3, 2015 3
sidewalks. He then stated that, while the street designation was changed several years ago from
collector to local standard, in reality it still acts as a collector. He suggested that, in addition to
boulevards and sidewalks, other possible considerations would be parking, bike lanes and
possibly bioswales or gardens for drainage. He then reminded the Board members that the City’s
Engineering staff had to ultimately accept their design elements before the previous street
designs could be presented to the Commission.
Jeanne Wesley-Wiese noted that the last time a special improvement district was proposed for
North Wallace Avenue improvements, it was defeated because the costs were triple the estimate
and people were concerned about the loss of property and parking for a traffic circle.
Neighborhood Coordinator Allyson Brekke responded that the new proposed traffic circle would
be at neighborhood scale and would actually be more like a cone in the middle of the intersection
and built with the capability of driving over the curb. She acknowledged that the possible loss of
parking will still be an issue.
Erik Nelson suggested that the motion could include a caveat that the Board wants Morrision-
Maierle to do the design, and that if the design can be done at a lesser cost in house, this Board
wants the same level of involvement. He then noted that if the Board does not like the design, it
can delay any construction of the improvements with tax increment financing funds.
Bob Pavlic noted that design of the intersection of North Wallace Avenue and East Tamarack
Street will be the key design element.
Jeanne Wesley-Wiese stated that parking was reinstated on both sides of the street many years
ago as a traffic calming measure.
Erik Nelson acknowledged that parking on both sides of the street gives it a residential feel;
however, he noted it is important to remember that there are still a lot of industrial uses in the
area that use the street.
Chair Noble stated he is willing to move forward with the design, but wants an escape clause if
the process does not result in the type of design the Board wishes to see. He expressed concern
that, while this Board works effectively, he is not sure how well the process can work with the City
involved.
Responding to Erik Nelson, Neighborhood Coordinator Allyson Brekke stated this Board was
involved in the request for proposals process that resulted in hiring of Morrison-Maierle to do the
other street design projects. The Board could require the same level of involvement as it has had
in the past, whether it is an engineering firm or Engineering staff that does the design.
Erik Nelson acknowledged the real challenge is the level of public outreach required for that
portion of the street that lies outside this district.
NURB Meeting - February 3, 2015 4
Responding to concerns voiced by Chair Noble, Erik Nelson stated the City won’t build the street
without the participation of this district; however, this Board could choose to tweak the design to
meet its interests and proceed with improvements within the district if it so chooses.
Neighborhood Coordinator Brekke reminded the Board that Director of Public Service Craig
Woolard has been supportive of this Board’s efforts since he came. She recognized that his
presentation at last month’s meeting was a surprise to this Board, but reminded them that he is
looking at the bigger picture and recognizes that North Wallace Avenue is being used by a lot of
people; and he saw a way to coordinate efforts to get the improvements done.
Responding to Erik Nelson, the Neighborhood Coordinator stated that identifying the traffic
impacts from park improvements is tricky; and she does not anticipate any monies have been set
aside for the Story Mill Park project to make improvements to L Street or North Wallace Avenue.
Erik Nelson noted that the $25,000 requested by Director of Public Service Woolard seemed to
be an off-the-cuff number and asked if proposals may need to be sought to determine the real
number before this Board takes action.
Responding to Erik Nelson, Neighborhood Coordinator Brekke stated a request for proposals will
be required before a firm can be selected and the design undertaken. She feels that staff has
adequate information to proceed with the RFP, noting it will include the outreach and Board
involvement that was included in the previous contract.
It was moved by Erik Nelson, seconded by Bob Pavlic, that the Board direct staff to solicit
proposals for designing improvements to North Wallace Avenue in conjunction with the City, with
this district paying its proportionate share of those costs. The motion carried on a 4-0 vote.
Responding to Neighborhood Coordinator Brekke, the Board indicated it wants to see the
proposals prior to proceeding with a budget amendment.
Review line items in current year budget; discussion regarding budget for Fiscal
Year 2015-2016. Recording Secretary Sullivan distributed copies of the budget for the current
fiscal year along with a spreadsheet showing the revenues and expenditures for this district since
its inception.
Economic Development Director Brit Fontenot stated the Gallatin Valley Land Trust has
expressed interest in a trail along Oak Street to L Street and has indicated a desire to submit the
project to this Board. He noted that GVLT is looking for support from this Board.
Erik Nelson noted that this trail lies outside the district boundaries, but the Board could consider
how it might tie to trails within the district.
Erik Nelson asked if the budget for the pedestrian bridge is now $20,000 short of accomplishing
the project.
NURB Meeting - February 3, 2015 5
Jeanne Wesley-Wiese voiced her interest in seeing this project completed.
Responding to Jeanne Wesley-Wiese, Erik Nelson suggested that the Board leave monies for the
depot project in the budget through the useful life of this district, noting that the monies could be
used to assist with its reuse.
Neighborhood Coordinator Brekke suggested that the language of the line item be changed from
“depot stabilization” to “depot rehabilitation”. The Board agreed with the proposed change.
Erik Nelson noted that some of the monies in the stream restoration line may be needed for the
pedestrian bridge project.
Erik Nelson expressed his eagerness to get the process started for issuing bonds for street
improvements, noting that this district has monies to cover approximately one-third of the costs of
making those improvements. He then stated that the issuance of bonds will extend the life of the
district and, since approximately $70,000 of the annual increment can be dedicated to retiring the
bond, approximately $30,000 of the annual increment will be available for other projects. He
stressed the importance of hiring someone to proceed with the bond issue in the upcoming fiscal
year, or this district could run the risk of sunsetting at the end of fifteen years.
Responding to Erik Nelson, Economic Development Director Fontenot stated he will call bond
counsel to find out what the costs of issuing the bonds might be so that cost can be included in
the budget for next year.
Erik Nelson noted that this Board is carrying monies forward every year and needs to take steps
to make some of the items in its budget actionable. He then asked if someone needs to be hired
to do a street light study, expressing interest in seeing the lights be more dark skies compliant.
Chair Noble stated that, in addition to a street light study, he would like to see a plan for street
lights within the district.
Neighborhood Coordinator Allyson Brekke noted that a street light study would focus on
pedestrian safety and the connectivity of lights. She stated the tricky part of a street light program
is who pays the energy costs. She then cautioned against spending monies on a plan if there is
no chance of it coming to fruition.
Neighborhood Coordinator Brekke suggested that a consultant also be hired to develop a
program for redevelopment incentives. She noted that a tax increment financing consultant has
been retained for the North Seventh Avenue urban renewal district, who has proposed a program
to offset loan costs in that district. She suggested that this Board could retain her or someone
else to prepare a package of incentives for projects within this district.
Responding to Erik Nelson, the Neighborhood Coordinator stated that applicants going through
the Planning process do not know this program is available. She then stressed that the program
needs to be developed before it can be promoted.
NURB Meeting - February 3, 2015 6
Neighborhood Coordinator Brekke asked if this is the year to build the pedestrian bridge.
Chair Noble responded that the Aspen Street right-of-way and design as well as the location of
the bridge must be determined first.
Economic Development Director Brit Fontenot suggested that, rather than addressing the various
pieces of the programs this Board wishes to see, staff be allowed to come back with a package of
solutions.
Liz Galli-Noble noted that she does requests for proposals professionally and volunteered her
time to do a request for proposals for the street light plan if she can get a City template. She
stated the Board can then review the RFP and make any changes it desires.
Economic Development Director Fontenot noted that an evaluation sheet for proposals must be
done at the same time. He indicated that he will find templates for both of those items and
forward them to her.
Responding to Neighborhood Coordinator Brekke, Erik Nelson stated he is not sure this Board
would be willing to proceed with a special improvement lighting district within the district;
however, it is important to find out what is on the ground, who owns it and what the options are
for revising it.
Chair Noble asked if $5,000 is adequate for staff support.
Economic Development Director Brit Fontenot requested that the amount budgeted be increased
to $10,000. He noted that his department is assuming responsibility for all of the tax increment
districts and, as the new districts begin their programs, he envisions the hiring of another person
to provide staff support for those programs. It is also his vision that each of the districts would
contribute one-quarter of that individual’s salary.
Erik Nelson indicated his support for adding $5,000 to the line item. He noted this Board is losing
opportunities for action, and he would like to see some of the projects move forward. He then
stated that, in the future, he would like to see the districts contribute to staffing based on a share
proportionate to the revenue stream for the district rather than one-quarter of a salary. He noted
this would be fairer to the districts since their revenue streams vary greatly.
Neighborhood Coordinator Brekke stated the City Attorney has advised staff not to amend the
contract with Morrison-Maierle to add the East Aspen Street project since he feels the project is
outside the scope of the original contract and since the contract is five years old. Instead, he has
advised staff to proceed with another request for proposals.
Erik Nelson asked if it would be possible to contract with Morrison-Maierle for the scope of work
within the district under this Board’s plan and then include tasks as they arise.
NURB Meeting - February 3, 2015 7
Chair Noble indicated this Board can finalize its budget and work plan at its next meeting if it has
adequate information to do so. He noted one of the key items is the costs for bonding.
Election of Chair and Vice Chair for 2015. It was moved by Jeanne Wesley-Wiese,
seconded by Bob Pavlic, that Tom Noble continue as Chair and that Erik Nelson continue as
Vice-Chair. The motion carried on a 4-0 vote.
Set agenda for March 3, 2015 meeting or cancel meeting. Chair Noble asked that
finalization of the budget for Fiscal Year 2015-16, a presentation from the Gallatin Valley Land
Trust on its trail proposal, the request for proposals for lighting and an update on North Wallace
Avenue design be included on the March agenda. He also asked that possibilities for
redevelopment incentives be placed on the April agenda.
Neighborhood News. Economic Development Director Brit Fontenot stated there are
currently discussion on expanding the North Seventh Avenue tax increment financing district to
abut another tax increment financing district.
Erik Nelson noted now that the Kenyon-Noble site on North Rouse Avenue is vacant, it may be
good to consider expanding the district to include that property.
Bob Pavlic noted there are a lot of traffic congestion and parking issues around the bakery.
Neighborhood Coordinator Brekke stated there is a proposal for a market and restaurant in the
metal building at the corner of North Wallace Avenue and East Cottonwood Street. The proposal
includes the sale of products made on site, including spices and soup mixes. Since the applicant
is proposing to serve beer and wine in the restaurant, this project will go before the City
Commission next Monday. She stressed that the restaurant is less than the maximum 1500
square foot limit. Responding to concerns raised by the Board, she indicated the hours of
operation are to be from 5 p.m. to 10 p.m. according to the application. She then noted that the
noise ordinance was enacted before the mixed use district was created, so it may be time to
revisit that ordinance.
Adjournment – 8:40 p.m. There being no further business to come before the Board at this
time, Chair Noble adjourned the meeting.
Tom Noble, Chair
Northeast Urban Renewal Board
City of Bozeman