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Home My WebLink About22- Ordinance 2106 Approving Fire Station 1 Project ORDINANCE 2106 ORDINANCE APPROVING A PROJECT IN THE DOWNTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES OR TAX INCREMENT REVENUE BONDS TO REIMBURSE ELIGIBLE COSTS THEREOF BE IT ORDAINED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01 Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1409, adopted on November 20, 1995, and Ordinance No. 1928 adopted December 28, 2015 (collectively, the “Ordinance”), the Commission created the Downtown Urban Renewal District (the “District”) and approved the Downtown Urban Renewal District Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District. 1.03. The 2020 Bozeman Community Plan identified community housing as “one of Bozeman’s most serious problems,” DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 Ordinance 2106, Approving a Project in the Downtown URD as an Urban Renewal Project 2 1.04. The 2020 Bozeman Community Plan goals, “Encourage distribution of affordable housing units throughout the City with priority given to locations near commercial, recreational, and transit assets.” 1.05. The 2020 Bozeman Community Plan goals urge policymakers to, “Require development of affordable housing through coordination of funding for affordable housing and infrastructure.” 1.06. The 2020 Bozeman Community Plan calls for prioritizing infill stating, “Concentrated development uses land more efficiently, may reduce infrastructure costs, and reduces the overall amount of road surface and need for parking lots, improving overall access to parks, schools, and shops.” 1.07. The Urban Renewal Plan calls for the District to “Enable high density housing in and around Downtown,” and “broaden opportunities for diversity in housing” 1.08. The Urban Renewal Plan lists as an implementation action to, “Further refine, prioritize and implement the urban renewal plan by adopting updates to the “Downtown Improvement Plan” outlining specific programs and projects.” 1.09. The 2019 Downtown Improvement Plan calls for the District to “Promote a range of housing options,” including workforce housing and suggests a residential “Incentive Program” for “any project which has long-term affordability controls.” 1.10. The 2019 Downtown Improvement Plan calls for the District to “Enable high density housing in and around Downtown,” and “broaden opportunities for diversity in housing” 1.11. The City of Bozeman plans to sell its Fire Station 1 property, located at 34 N. Rouse Ave., and harness its control of the site to incentivize the creation of workforce housing. The City Commission supports providing an incentive of up to $1.6 million for an Urban Renewal Project at the Fire Station 1 site that creates at least 50 units of workforce housing with long-term affordability controls. The incentive must be to reimburse costs that may be paid by tax increment financing as defined in 7-15-4288, MCA. For the purposes of this Urban Renewal Project, workforce housing is defined as housing that is affordable to households making 120% or less of the Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD). The City would pay the incentive after the project receives a Certificate of Occupancy to mitigate risk to urban renewal funds and to ensure the creation of new taxable value by the project. The Project would also include demolition of the existing Fire Station structure and related infrastructure and utility improvements; and other related improvements (collectively, the “Project”) as an urban renewal project under the Act and the Plan. The Urban Renewal Funds will be available for up to a period of five (5) years after the DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 Ordinance 2106, Approving a Project in the Downtown URD as an Urban Renewal Project 3 Closing Date; after this five (5) year period, eligibility for the Urban Renewal Funds expire. To maintain eligibility for the Urban Renewal Funds five (5) years, Buyer must seek approval from the City Commission for renewal of extension of eligibility. 1.12. On March 22, 2022, a duly noticed public hearing was held on the question of approving the Project as an urban renewal project and the use of tax increment revenues to provide an incentive for workforce housing and all persons appearing were given an opportunity to speak at the public hearing. Section 2 Approval of the Project as an Urban Renewal Project. The Commission hereby approves the Project as an urban renewal project under the Act and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Project as follows: a. no persons will be displaced from their housing by the Project; b. the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; c. the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 Ordinance 2106, Approving a Project in the Downtown URD as an Urban Renewal Project 4 d. taking into account the use of tax increment revenues or the proceeds of tax increment revenue bonds to provide an incentive for workforce housing, there is expected to be a sound and adequate financial program for the financing of the Project; and e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4 Use of Tax Increment. 4.01. The Commission hereby approves the use of tax increment revenues to incentivize the development of workforce housing at the Fire Station site, subject to the terms and conditions of a negotiated Development Agreement. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the _____ day of ____________, 20__. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 March 2222 Ordinance 2106, Approving a Project in the Downtown URD as an Urban Renewal Project 5 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 12th day of April , 2022. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 Ordinance 2106, Approving a Project in the Downtown URD as an Urban Renewal Project A-1 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Ordinance No. 2106 entitled: “ORDINANCE APPROVING A PROJECT IN THE DOWNTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES OR TAX INCREMENT REVENUE BONDS TO REIMBURSE ELIGIBLE COSTS THEREOF” (the “Ordinance”), on file in the original records of the City in my legal custody; that the Ordinance was duly adopted by the City Commission of the City at a regular meeting on March 22, 2022, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 12th day of April, 2022. (SEAL) __________________________________ MIKE MAAS City Clerk DocuSign Envelope ID: D32079EC-7434-4891-AD18-BFD6CE9CF247 Andrus, Pomeroy, Madgic Cunningham, Coburn