HomeMy WebLinkAboutStatement of Blight-Midtown URD 8.17.15 ORIGINAL
Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
August 17, 2015
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North Seventh Avenue Urban Renewal Area
Midtown Expansion
City of Bozeman
Statement of Blight
Introduction
The North Seventh Avenue Urban Renewal Board and the City of Bozeman are
initiating an effort to expand the North Seventh Avenue Urban Renewal District. The
expansion will incorporate several areas adjacent to the district in order to benefit
ongoing-revitalization efforts within the North 7th Avenue corridor as well as the City
as a whole. This Statement of Blight documents the conditions in these areas, generally
finding them to be eligible for inclusion in the District, for reasons which include:
• The presence of obsolete buildings and aging public infrastructure
• Deteriorating or lack of sidewalks creating unsafe conditions for pedestrians
• Dead-end, incomplete or unconnected streets
• Vacant, neglected empty spaces within the urban core of Bozeman
• Faulty lot layout, characterized by poor drainage and/or excessive or
undeveloped access
In February 2005, the Bozeman City Commission directed city staff, pursuant to the
provisions of the State of Montana Urban Renewal Law, to investigate conditions
along North 7th Avenue and adjacent lands, in the midtown area of the City of
Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
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Bozeman and report to the City Commission on “the need for, desirability of, and
feasibility of creating an urban renewal program in Bozeman.”
The area that was originally investigated can generally be described in the adopted
urban renewal plan as “the commercially zoned property between North 5th Avenue and North
8th Avenue from Main Street north to the city limits, vacant R-4 zoned parcels between
Tamarack Street and Oak Street from North 5th Avenue to North 3rd Avenue right of way
extended, and a commercially zoned parcel north of Oak Street between North 3rd Avenue right
of way extended, and a commercially zoned parcel north of Oak Street between North 3rd Avenue
right of way extended and the North Black Avenue alignment. Between West Main Street and
West Lamme Street, the original study area extended east only as far as a point roughly mid-
block between North 7th and North 5th Avenues.”
The initial task in response to this direction was to examine conditions in the area
relative to the statutory definition of a "blighted area." The documentation of blight,
within a municipality (defined as a city or town or consolidated city-county
government), in accordance with state law, provides the necessary foundation upon
which a local government may exercise its urban renewal powers.
As noted below, conditions of blight may apply in all or parts of the area in order to
qualify a local government to undertake an urban renewal program. The importance of
addressing these conditions is set forth in the Montana Urban Renewal Law, which
states that it is a matter of public policy to eliminate and prevent blight. Particularly, in
7-15- 4202 Montana Codes Annotated (MCA), states, “It is hereby found and declared:
(1) that blighted areas which constitute a serious and growing menace, injurious to
the public health, safety, morals, and welfare of the residents of the state, exist in
municipalities of the state;
(2) that the existence of such areas:
(a) contributes substantially and increasingly to the spread of disease and crime
and depreciation of property values;
(b) constitutes an economic and social liability;
(c) substantially impairs or arrests the sound growth of municipalities;
(d) retards the provision of housing accommodations;
(e) aggravates traffic problems; and
(3) substantially impairs or arrests the elimination of traffic hazards and the
improvement of traffic facilities; and
(4) that the prevention and elimination of such areas is a matter of state policy and
state concern in order that the state and its municipalities shall not continue to be
endangered by areas which are focal centers of disease, promote juvenile
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delinquency, are conducive to fires, are difficult to police and to provide police
protection for, and, while contributing little to the tax income of the state and its
municipalities, consume an excessive proportion of its revenues because of the
extra services required for police, fire, accident, hospitalization, and other forms
of public protection, services, and facilities.”
To this end, in 7-15-4210 MCA, a municipality, must, prior to defining and
implementing an urban renewal program, first adopt a resolution of necessity, finding
that (emphasis added):
“(1) one or more blighted areas exist in the municipality by finding that at least three
of the factors of blight [as defined in 7-15-4206 MCA] apply to the area or a part of the
area; and
(2) the rehabilitation, redevelopment, or both of an area or areas are necessary in the
interest of the public health, safety, morals, or welfare of the residents of the
municipality.”
The information gathered in the 2005 investigation indicated that the area was eligible
for designation as an urban renewal district, primarily due to:
• the defective or inadequate street layout identified within the study area
• instances of known deterioration
• inadequate provisions and/or age obsolescence of the following public
improvements within the study area: storm drain, streets and sidewalks
• instances of age obsolescence of buildings within the study area
• inappropriate or mixed uses of land or buildings
• deterioration of site; and improper subdivision or obsolete platting
Based on these findings, the City Commission adopted Resolution 3839, a Resolution of
Necessity, in August of 2005 and subsequently approved Ordinance 1685, on
November 27, 2006, which created the North Seventh Avenue Urban Renewal District
and adopted the North Seventh Avenue Urban Renewal Plan with a provision for tax
increment financing, to be calculated using a base year of 2006.
In March of 2015, the City Commission provided funding for the North Seventh
Avenue Urban Renewal Board to investigate the presence of blighted conditions in
several areas adjacent to the North Seventh Avenue Urban Renewal District, in an area
known as “Midtown”, to determine whether the district should be expanded
accordingly. The Urban Renewal Board had become concerned that the failure to
address blight in these areas had stymied rehabilitation and redevelopment within the
existing district. The investigation’s findings revealed that these areas exhibited
conditions of blight as defined in the Montana Urban Renewal Law and that the
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improvement of these areas would enable the City of Bozeman to better meet the goals
and objectives of the North Seventh Avenue Urban Renewal program.
Overview
Setting
The City of Bozeman is the county seat of Gallatin County in Southwest Montana. The
City is named for John M. Bozeman who established the Bozeman Trail and was a key
founder of the town in August 1864. The town became incorporated in April 1883 with
a city council form of government and later in January 1922 transitioned to its current
city manager/city commission form of government. Bozeman was elected an All-
America City in 2001 by the National Civic League. Bozeman is home to Montana State
University and is served by Bozeman Yellowstone International Airport. (Wikipedia)
According to the Design and Connectivity Plan for North 7th Avenue Corridor (2006), North
7th Avenue is a vital part of the City of Bozeman. North 7th Avenue is an established
entryway corridor that extends from I-90 south to Main Street. In the city's rating
system, this is a Class II corridor, which is automobile-oriented; however, it has the
potential to become more pedestrian-oriented while serving its arterial function. It
serves as a major circulation corridor and is home for a variety of businesses that
contribute to the vitality of the community. Historically, it served as the first north-
south corridor for automobiles in the City and was the community’s first connection to
Interstate 90. Visitors and residents alike recall a lovely tree-lined avenue that served
as a gateway to Montana State University.
However, important as it is today, North 7th Avenue’s full potential has not been fully
realized. While the North Seventh Avenue Urban Renewal program has supported
revitalization activities in the district, some issues remain. These include the lack of
connection to other parts of the city and the failure to diversity the types of uses and
achieve the degree of intensity of development that could occur.
Demographic and Economic Information
The City of Bozeman is growing. According to 2014 Census estimates, there are 41,660
people living in the City of Bozeman, significantly higher than the 2010 Census figure of
37,280. The county’s population is projected to experience continued growth through
2060, from 97,197 in 2015 to 145,389 in 2060, an increase of nearly 50% (Montana
Economic and Information Center). Census information, recorded over a one hundred
year period, beginning in 1910, indicates that the City’s population has grown rapidly
since 1950. The following figure presents population data for the City from 1910 to 2010,
based on the decennial census.
Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
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Source: Montana Census and Economic Information Center
However, despite rapid growth, the City’s poverty rate at 21.2% is significantly higher
than the poverty rates for Gallatin County, Montana and the nation, which are 14.1%,
15.2% and 15.4% respectively. (American Community Survey – ACS, 2009-2013).
Median Household Income for residents living in Bozeman is $44,615, lower than the
County’s, median, which is $52,833 and somewhat lower than the state, at $46,230 and
the nation, at $53,046 (ACS, 2009-2013). The following table shows employment in the
City of Bozeman by industry. The “Educational services, health care and social
assistance” sector employs the most people, followed by “arts, entertainment, and
recreation, and accommodation and food services” and “retail trade”.
0 5000 10000 15000 20000 25000 30000 35000 40000 City of Bozeman Population - 1890 to 2010
Population
Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
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EMPLOYMENT BY INDUSTRY CITY OF BOZEMAN SOURCE: ACS 2009-2013
ESTIMATE MARGIN OF ERROR PERCENT PERCENT MARGIN OF
ERROR
Civilian employed population 16 years and over 21,647 +/-580 21,647 (X)
Agriculture, forestry, fishing and hunting, and mining 499 +/-138 2.3% +/-0.6
Construction 1,247 +/-244 5.8% +/-1.1
Manufacturing 1,369 +/-298 6.3% +/-1.3
Wholesale trade 484 +/-154 2.2% +/-0.7
Retail trade 2,951 +/-415 13.6% +/-2.0
Transportation and warehousing, and utilities 485 +/-168 2.2% +/-0.8
Information 293 +/-125 1.4% +/-0.6
Finance and insurance, and real estate and rental and
leasing 1,132 +/-309 5.2% +/-1.4
Professional, scientific, and management, and
administrative and waste management services 2,613 +/-609 12.1% +/-2.7
Educational services, and health care and social
assistance 5,544 +/-439 25.6% +/-2.1
Arts, entertainment, and recreation, and
accommodation and food services 3,385 +/-472 15.6% +/-2.1
Other services, except public administration 895 +/-210 4.1% +/-1.0
Public administration 750 +/-306 3.5% +/-1.4
General Description and Map of the Expanded North Seventh Avenue Urban
Renewal Area – Midtown
Area Description
This investigation of blight was conducted in several areas directly adjacent to the
existing urban renewal area, which is shown in blue on the map below. Each expansion
area is described in the following individual discussions of blight.
Map
Each expansion area is shown in yellow on the map below and an enlarged map of each
expansion area is found starting on page 13. Following those maps, at end of this
document, is a large map further illustrating the North Seventh Avenue Urban Renewal
Area – Midtown Expansion.
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Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
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Blighted Conditions
The expansion of the North Seventh Avenue Urban Renewal District is being
undertaken to address a range of blighted conditions including infrastructure
deficiencies. The City intends to amend the North Seventh Avenue Urban Renewal
District in accordance with 7-15-4201 Montana Code Annotated (MCA) and the
Administrative Rules of the State of Montana governing amendments to existing tax
increment financing districts, particularly 42-19-1410 MCA and 42-19-1403 MCA. The
City also intends to extend the use of tax increment financing (TIF) to the expanded
portions to help fund urban renewal projects as set forth in the Urban Renewal Plan.
Prior to the adoption of an urban renewal plan, however, the City of Bozeman, as stated
above, must establish that blight exists in the areas being considered for inclusion in the
urban renewal district. The following presents the conditions of blight within these
areas.
Defining Blight
Montana law sets forth the specific conditions that constitute blight. In particular, state
statute defines a blighted area as one that substantially impairs or arrests the sound
development of communities, or constitutes an economic or social liability.
Per 7-15-4206, MCA, a “blighted area” may be identified as such by reason of:
(a) the substantial physical dilapidation; deterioration; defective construction,
material, and arrangement; or age obsolescence of buildings or improvements,
whether residential or nonresidential;
(b) inadequate provision for ventilation, light, proper sanitary facilities, or open
spaces as determined by competent appraisers on the basis of an examination of
the building standards of the municipality;
(c) inappropriate or mixed uses of land or buildings;
(d) high density of population and overcrowding;
(e) defective or inadequate street layout;
(f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(g) excessive land coverage;
(h) unsanitary or unsafe conditions;
(i) deterioration of site;
(j) diversity of ownership;
(k) tax or special assessment delinquency exceeding the fair value of the land;
(l) defective or unusual conditions of title;
(m) improper subdivision or obsolete platting;
(n) the existence of conditions that endanger life or property by fire or other causes;
or
(o) any combination of the factors listed in this subsection (2).” (Montana Laws)
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Blighted Conditions in the North Seventh Avenue Urban Renewal District
Expansion Areas
Following is a description of blighted conditions that were identified in each of the
areas examined.
1. and 2. Southern Boundary Areas – Two areas were examined just outside the
southern boundary of the urban renewal district. The first is bounded by Lamme Street
on the north, Main Street on the south, 3rd Avenue on the east and 6th Avenue on the
west. The second includes an area that is bounded on the north by Main Street, on the
south by Babcock Street, on the west by 8th Avenue and on the east by 5th Avenue and
on the west by 8th Avenue. The map on page 13 illustrates this area.
These areas are located between two existing urban renewal districts, the North Seventh
Avenue and the Downtown Urban Renewal Districts. The conditions of blight in these
two areas are similar to those found inside each of these districts and their exclusion has
resulted in diminished investment in parcels along this connecting corridor.
More particularly, the areas exhibit a number of blighted conditions including the
following:
• Age obsolescence of buildings and
improvements – Physically, these
areas are suffering from deferred
maintenance and deterioration of
both buildings and empty spaces.
Many of the structures in these
areas are older and exhibit signs of
deterioration. For example, the
hotel pictured here was recently
closed, is now vacant and
building/fire code issues preclude it from re-opening. Alleys are of particular
concern, especially in cases where alleys provide primary access to parking
facilities. Alleys are unpaved and ungraded.
• Inappropriate uses of land – Although adjacent to two key commercial districts,
the areas are characterized by lower density development, which results in lower
land values and less efficient use of public infrastructure and services.
• Unsafe conditions – Parking lots and adjacent alleys, in some cases, have
uncontrolled access. The designs of parking lots, alleyways, and driveways
create blighted conditions that diminish the value of property in the area and
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present hazards for pedestrians. The age obsolescence of some structures and
aging public infrastructure may also endanger life or property.
3. The Whittier School Remainder – A portion of the property owned by the School
District was left out of the original urban renewal
district. The area is directly adjacent to the
Whittier School and includes the playground and
the school parking lot. The map on page 14
illustrates this area. Conditions of blight in this
area include:
• Age obsolescence – The facilities on the site
are older and have been identified by the
School District as in need of improvements.
• Defective or inadequate street layout – The
alley adjacent to the school property is unpaved.
• Unsafe conditions – Deteriorating sidewalks in this area present hazards to
pedestrians
4. East Side Property – This area is located to the east of the existing urban renewal
district and is bounded on the north by Tamarack Street, on the south by Peach Street,
on the west by 5th Avenue and on the east by 3rd Avenue. The map on page 14
illustrates this area. The area includes an improved BMX Park that has seen significant
use and public investment in recent years. However, the overall area of the East Side
Property exhibits a number of blighted conditions including:
• Inappropriate uses of land – The land is largely vacant and underutilized. Its
value is diminished by poor access.
• Defective or inadequate street layout – The area
lacks adequate streets, sidewalks, curbs and
gutters.
• Faulty lot layout in relation to size, adequacy,
accessibility, or usefulness – In addition to poor
access, the site has poor drainage.
• Deterioration of site/Unsafe conditions – The
overall area is not maintained and there are
rough areas that present hazardous conditions.
5. West Side Property – This parcel of land is bounded on the north by Oak Street, the
south by Durston Road, on the east by what would be 8th Avenue and on the west by
11th Avenue. The map on page 15 illustrates this area. It directly abuts properties that
front on the west side of North 7th Avenue. It is largely vacant and lacks adequate
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infrastructure and provides no access to areas to the west. In effect, it forms a barrier
between the urban renewal district and the neighborhoods to the west. This in turn
negatively affects revitalization efforts. Specific blighted conditions include:
• Inappropriate uses of land – Although adjacent to a the North 7th Avenue
corridor, the area is characterized by lower density development, which results
in lower land values and less efficient use of public infrastructure and services.
• Defective or inadequate street layout – The area
has no transportation infrastructure – North 8th
Avenue ceases to exist here. There are no
sidewalks, curbs or gutters.
• Faulty lot layout in relation to size, adequacy,
accessibility, or usefulness – As noted above,
there is no access to the site and the site exhibits
drainage problems.
• The existence of conditions that endanger life –
Much of the property is fenced using barbed
wire. There is no safe pedestrian access.
6. Northwest Site – This site is bounded on the south
by Patrick Street, on the north by Baxter Lane, on the
east by 11th Avenue and on the west by 15th Avenue. The map on page 16 illustrates this
area. It is adjacent to several area hotels, but is largely vacant, and underutilized.
Blighted conditions include:
• Inappropriate uses of land – the area is
characterized by lower density
development, which results in lower land
values and less efficient use of public
infrastructure and services.
• Defective or inadequate street layout –
The road infrastructure is limited.
Existing roads, including the minor
arterial North 15th Avenue, “dead end” in
several places resulting in poor access to
much of the site.
• Faulty lot layout in relation to size, adequacy, accessibility, or usefulness – The
site is characterized by poor drainage, and no access to adjacent properties.
Sidewalks, curbs and gutters are generally missing.
• The existence of conditions that endanger – Much of the property is fenced using
barbed wire. There is no safe pedestrian access.
Statement of Blight – North Seventh Avenue Urban Renewal Area – Midtown Expansion
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7. Murdoch’s Annexation Property – This site is comprised of 3.889 acres located on the
north side of Murdoch’s, and addressed as 2507 and 2511 North 7th Avenue. The map
on page 17 illustrates this area. These four lots are undergoing annexation to the City of
Bozeman.
This area is located between an existing urban renewal district and an existing tax
increment financing industrial district. Its exclusion has made it ineligible to benefit
from various urban renewal and infrastructure programs. Conditions of blight include:
• Age obsolete structures and improvements – Physically, these areas are suffering
from deferred maintenance and deterioration of both buildings and empty
spaces. Many of the structures in these areas are older and exhibit signs of
deterioration.
• Inappropriate uses of land – These industrial uses result in lower land values and
less efficient use of public infrastructure and services.
• Defective or inadequate street layout – Street improvements, including but not
limited to paving, curb/gutter and storm drainage facilities for North 7th Avenue,
as well as for the adjacent local streets are needed.
Conclusion
Based on the information presented in this Statement of Blight, a finding can be made
that these areas exhibit attributes, which can be described as blighted per Montana
Statute, and therefore are eligible for inclusion in the existing North Seventh Avenue
Urban Renewal District.
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1. and 2. Southern Boundary Areas
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3. The Whittier School Remainder
4. East Side Property
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5. West Side Property
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6. Northwest Site
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7. Murdoch’s Annexation Property
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