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Home My WebLink AboutC8. Resolution 4671 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: Resolution 4671 amending the Fiscal Year 2016 (FY16) Northeast Urban Renewal Tax Increment Finance District Work Plan and Budget to Include Additional Expenditures for Payment of the Local Share of the North Wallace Avenue Reconstruction Project. MEETING DATE: February 22, 2016 AGENDA ITEM TYPE: Consent RECOMMENDATIONS: Staff recommends adoption of Resolution 4671 (Attachment 1). At its regular meeting held on February 2, 2016 the Northeast Urban Renewal Board approved Resolution 2016-01 to amend the Board’s FY16 adopted work plan and budget to include an additional expenditure within the District for payment of the local share of the North Wallace Avenue Reconstruction Project. (Attachments 2 - 4) BACKGROUND: The Board of the Northeast Urban Renewal District (the District) is desirous of supporting the reconstruction of North Wallace Avenue. For several months the Northeast Urban Renewal District Board (the Board) and City staff have discussed the project inside District boundaries and potential funding mechanisms for the local share of the North Wallace Avenue reconstruction project. Wallace is classified as a “major collector” and thus eligible for 85% cost coverage by street reconstruction funds. The Board has determined that the cost of the improvement is eligible for use of tax increment and therefore the Board proposes that the District pay those eligible costs associated with the local share (15%) of the street improvement. UNRESOLVED ISSUES: None at this time. ALTERNATIVES: As determined by the Commission. 86 FISCAL EFFECTS: The current engineers estimate for the local share of the project within the District is $149,305.58. Fixed costs are unknown until project bids are unsealed in March, 2016. The current fund balance is $434,537. Beginning FY16 Estimated Revenues Amended Appropriations Estimated Amended FY16 Ending Balance $434,537 $85,000 $482,090 $37,447 Attachments: 1. Resolution No. 4671; 2. Northeast Urban Renewal District Board Resolution 2016 – 01; 3. Northeast Urban Renewal District FY16 Adopted work plan and budget; and 4. Map of the Northeast Urban Renewal District. Report prepared on February 4, 2016. 87 - 1 - COMMISSION RESOLUTION NO. 4671 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE NORTHEAST URBAN RENEWAL DISTRICT FY16 WORK PLAN AND BUDGET TO INCLUDE COSTS ASSOCIATED WITH FUNDING THE LOCAL SHARE (15%) OF THE NORTH WALLACE AVENUE RECONSTRUCTION PROJECT. WHEREAS, the Northeast Urban Renewal District Plan was duly adopted by the Bozeman City Commission by City of Bozeman Ordinance No. 1655, dated November 28, 2005; and WHEREAS, the City of Bozeman Northeast Urban Renewal District Board has been duly established by the Bozeman City Commission as provided for in the Northeast Urban Renewal District Plan; and WHEREAS, the City of Bozeman has determined that the reconstruction of North Wallace Avenue is important to the function of the overall street network; and WHEREAS, the City of Bozeman Northeast Urban Renewal District Plan has the mission, vision and goals to remedy conditions associated with blight, improve infrastructure, revitalize the neighborhood, and to utilize Tax Increment Financing (TIF) in conjunction with other funding sources to improve the economic vitality within the district; and WHEREAS, the City of Bozeman Northeast Urban Renewal District Board held a regular meeting on Tuesday, February 2, 2016, to consider authorization of the North Wallace Avenue Reconstruction Project as an urban renewal infrastructure improvement project and a pledge to commit tax increment funds, and to amend its FY 16 Work Plan and Budget to pay a portion of the project costs; and WHEREAS, at its’ regular meeting on held on Tuesday, February 2, 2016,the Northeast Urban Renewal District Board voted unanimously to support Resolution 2016-01 which found: 1. Infrastructure improvements meet Guiding Principle 1 and Goals A & B of the Northeast Urban Renewal District Plan: • Principle 1. Ensure the health, safety, and security of the District, • Goal A: Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved, 88 - 2 - • Goal B: Encourage a land use pattern that facilitates all modes of transportation - vehicular, bicycle, pedestrian, mass transit, and commercial - for safe, efficient and convenient access for residential, commercial, and industrial uses; and 2. The North Wallace Avenue Reconstruction Project is an infrastructure project in conformance with Goal A & B of Principle 1, and other Principles and Goals of the Northeast Urban Renewal District Plan; and WHEREAS, a sound and adequate financial program exists for the financing of this street reconstruction project and includes moneys from the Street Maintenance Fund dedicated to reconstructions, and the approximately 15 percent of the total cost remaining, or local share, to be paid by the property owners along North Wallace Avenue through the creation of a Special Improvement District; and WHEREAS, the boundaries of the Special Improvement District will over-lap the boundaries Northeast Urban Renewal District. Those properties within both the SID and the NURD will be allocated project costs for each property that may be paid-in-full by the Northeast Urban Renewal District prior to the commencement of construction; and WHEREAS, The spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288, MCA which states, "Costs that may be paid by tax increment financing" allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: …..”(4) the acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred;.....”; and WHEREAS, tax increment funds are available to pay the estimated cost of approximately $150,000 due from the property owners along North Wallace Avenue within the Northeast Urban Renewal District; and WHEREAS, notice of the public hearing was published on February 7th and 14th, 2016 pursuant to the provisions of Section 7-6-4021, Montana Code Annotated, the City Commission of the City of Bozeman, Montana will conduct a public hearing on amending the District budget for Fiscal Year 2015-2016, embodied in Commission Resolution No. 4671; and NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: The Bozeman City Commission, having heard and considered all input, adopted the findings presented herein and finds that: 1. The Northeast Urban Renewal District Board has designated the North Wallace Avenue Reconstruction Project as an authorized urban renewal infrastructure development project; and 2. The Northeast Urban Renewal District Board pledged to commit tax increment funds to pay 100% of the property owners’ share (local share) of the project costs for properties within the Northeast 89 - 3 - Urban Renewal District portion of the North Wallace Avenue SID; and 3. The Northeast Urban Renewal District Board forwarded to the Bozeman City Commission this amendment to its FY 16 Work Plan and Budget to Designate the Undesignated Reserve for the North Wallace Avenue Reconstruction Project and proposed amend any remaining uncommitted Priority II funds to cover the remainder, followed by any remaining uncommitted Priority III funds, then Priority I funds. Section 1 – Appropriation Additions The FY 2016 annual work plan and budget of the District is hereby amended by authorizing $150,000 in additional expenditures in Fiscal Year 2016 to pay 100% of the property owners’ share (local share) of the project costs for properties within the Northeast Urban Renewal District portion of the North Wallace Avenue SID 732. Section 2 – Appropriation Reductions The FY 2016 annual work plan and budget of the District is also amended by removing the appropriation for East Peach Street of $88,912, and allocating Undesignated Reserve amounts to the North Wallace SID project. Section 3 – Summary of Amended Appropriation and Ending Balance Beginning FY16 Estimated Revenues Amended Appropriations Estimated Amended FY16 Ending Balance $434,537 $85,000 $482,090 $37,447 Section 3 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on February 22, 2016. Section 4 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 22nd day of February, 2016. ________________________________________ CARSON TAYLOR Mayor ATTEST: 90 - 4 - _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ________________________________________ GREG SULLIVAN City Attorney 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 113