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DOWNTOWN URBAN RENEWAL DISTRICT TAX INCREMENT FINANCING (TIF) PUBLIC INFRASTRUCTURE ASSISTANCE PROGRAM

Introduction:

The Downtown Urban Renewal Plan (“Plan”), adopted by the Bozeman City Commission on November 20, 1995 by Bozeman City Commission Ordinance No. 1409 authorizes the Downtown Urban Renewal Board (“Board”) to establish monetary tax increment financing (“TIF”) incentives in the Downtown Urban Renewal District (“District”) in support of the Plan’s goal to promote economic development. The improvements supported by this program comply with the standards established by Montana Code Annotated 7-15-4288. The Board administers this TIF assistance program to provide financial support for the redevelopment of properties within the District.

TIF assistance applications are subject to program eligibility criteria and project guidelines listed below. Applications will be accepted and processed in the order in which they are received and approved based on the availability of funds for the program.

Program Purpose:

The purpose of this TIF assistance program is to support desirable development/redevelopment projects with funding to offset required public offsite infrastructure improvements. The program will prioritize funding for projects that would not otherwise occur “but for” the assistance provided through tax increment financing. The purpose of this document is to provide guidelines for the Board to offer monetary incentives for development activities in the District in the form of TIF assistance funds.

Grants will be awarded based on criteria identified in the program application document. The grant criteria align with the priorities, goals, and objectives of the District which are detailed in the following documents.

• 2025 Downtown URD Board Annual Priorities

• 2019 Downtown Bozeman Improvement Plan

• 1995 Downtown Urban Renewal Plan

This policy shall be used as a guide in processing and reviewing applications requesting TIF assistance. The Board shall have the option of amending or waiving sections of this policy when it determines, in its sole discretion, such an amendment or waiver is necessary or appropriate. In amending or waiving any sections of this policy, the Board shall document the reason for the deviation.

The provision of financial assistance is the sole discretion of the Board. The Board reserves the right to reject, deny, or approve applications on a case-by-case basis, considering established policies, specific project criteria and the demand on District services in relation to the potential project benefits. Meeting policy guidelines or other criteria does not guarantee the award of TIF assistance. Furthermore, the approval or denial of one application is not intended to set precedent for approval or denial of another application.

Program Objectives:

The primary objective of the TIF public infrastructure assistance program is to encourage investment in development and redevelopment of commercial and mixed-use property within the District in accordance with the provisions of the Montana Urban Renewal Law (7-15-4209, 7-15-4233, and 7-15-4288, M.C.A.). Additional District objectives are to:

• Encourage private investment in the District using public incentives

• Expand the property tax base in the District through private investment in income producing properties

• Stimulate economic and business development within the District

• Reduce conditions of blight in the District

• Meet one or more objective of the 2019 Downtown Bozeman Improvement Plan

• Comply with the allowances and restrictions of the Downtown Bozeman Urban Renewal Plan Ordinance 1409

The grants are awarded at the discretion of the Board as authorized by the Bozeman City Commission, based upon review of the Applicant's compliance with program objectives and eligibility requirements.

General Policies:

1. TIF assistance priority will be given to projects that do not have the financial feasibility to proceed without the benefit of the assistance.

2. The applicant shall provide a financial analysis of the new taxable value and subsequent tax increment created by the project over the remaining life of the District. The Board may require additional financial information to review the need for TIF assistance.

3. TIF assistance will not be used for projects that place extraordinary demands on District infrastructure or services.

4. The applicant must be able to demonstrate, to the Board’s satisfaction, an ability to construct, operate and maintain the proposed project based upon past experience, general reputation and credit history.

5. The Applicant must retain ownership of the project long enough to complete it, to stabilize its occupancy, to establish project management, and to initiate payment of taxes based on the increased project value. This application must be signed by both the applicant(s) and the property owner(s) (if different).

6. Project plans and construction must comply with all applicable code and permit requirements. Applicants are advised to consult with the City of Bozeman planning and building departments, licensed architects, engineers, or building contractors before proceeding with final plans or construction.

7. The Applicant must demonstrate significant leverage of private investment through the use of public dollars.

Eligible Improvements & Costs:

TIF eligible expenses are defined by Montana Code Annotated, 7-15-4288 and further limited by the Plan. The project seeking TIF assistance must be located within the boundary of the District. All TIF assistance is restricted to funding the public portion of private project as established in the District’s enabling ordinance.

Costs related to the following improvements are eligible for financial assistance:

1. Construction of public infrastructure including:

a. Streets, alleys, curbs, gutters

b. Sidewalks and intersection pedestrian ramps

c. Public off-street parking facilities

d. Water, sewer, and stormwater utilities and associated system components

2. Installation of public streetlamps

3. Installation of building life safety systems (dedicated fire lines, sprinkler systems)

4. Construction/Installation of open-source fiber internet infrastructure

5. Street Trees (new installations or replacements)

6. Street Tree Irrigation

See the table below for a detailed list of applicable public infrastructure improvements.

Requests for funding above $50,000 will require the ratification of the Bozeman City Commission.

Funding requests may not exceed a total grant value of $500,000.

Disbursement of Assistance Funds:

The TIF assistance program is a reimbursement program. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the Board in its sole discretion. At the end of the project, the recipient will submit a Certificate of Completion and required supporting documentation to the Board including itemized invoices and other documentation as the Board may reasonably request.

Use of Assistance Funds:

The award of TIF assistance funds is subject to the Applicant entering into a grant agreement with the District. The grant agreement will include requirements that the grantee comply with (i) applicable City of Bozeman procurement regulations related to bidding, hiring, and prevailing wages; (ii) the City’s nondiscrimination policy; and (iii) State of Montana public records laws. The grant agreement will include such additional terms as the District in its sole discretion determines are prudent or necessary to fulfill the goals of the TIF assistance program.

TIF assistance funds must be used within two years of the date of the Letter of Award. Any funds not disbursed to the Applicant within that time will remain in the District fund. The Board, in its sole discretion, may provide an extension of up to one year to the original two-year timeframe.

Use of TIF assistance funds must comply with the terms of the grant agreement between the Applicant and the District.

Revocation of Award:

The grant agreement will include terms providing that an award of TIF assistance may be revoked by the Board if the Board finds, in its sole discretion, that Applicant has failed to comply with any of the terms of the assistance program or grant agreement or has failed to provide information or provided inaccurate information on the application. Upon such a finding, the Board will provide Applicant with notice of the default and a 30-day opportunity to cure before the award is revoked. The grantee will be required to return TIF assistance funds already disbursed pursuant to the terms of the grant agreement.

DISCLAIMER: Neither the Board nor the City of Bozeman will be responsible for the planning, design, or construction proposed by any work conducted as part of the TIF assistance program. No warrantees or guarantees are expressed or implied by the description of, application for, award of or participation in the TIF assistance program.

Application Process and Procedure:

Application for TIF public infrastructure assistance shall be made on the forms provided by the Board and submitted to the Downtown Bozeman Partnership for review and comment. Deadlines for submittals shall be established by the Board. Incomplete application materials will be returned to the applicant with an explanation on additional information as may be required.

Prior to submitting the grant application, the Applicant must obtain, and provide to the Board, written comments on the proposed development from the City Community Development Department Conceptual Review process. The Conceptual Review must provide adequate detail to receive comments from the Engineering Division on required public utility connections and offsite infrastructure.

Applications for TIF assistance are reviewed and analyzed using the information provided by the applicant. Criteria are provided in the application materials, and the applicant should provide detailed documentation to demonstrate adherence to the goals of the program.

If approved by the Board, or City Commission, a Letter of Award outlining the specific terms and conditions of the TIF assistance will be provided to the applicant.

Submittal Information

There are two parts to the application. All applicants must complete Part 1. Applicants requesting TIF assistance above $50,000 must complete and include information identified in Part 2.

  • Part 1 – All Applications
  • Part 2 – Applications requesting funding over $50,000

VIEW EVALUATION CRITERIA

Part One

Property Information

Applicant Information

Applicant's Primary Contact:

Project Representative (if not applicant):

Please list name, business name, phone number and email.

Property Owner (if not applicant):

Please list name, business name, phone number and email.

Company Profile

Only complete if you selected the box above.

Project Detail

Type of TIF Assistance Sought:

Please attach a list of all other property owners, business partners, developers and/or investors associated with this project, with the above information provided for each.

This application must be signed by both the applicant(s) and the property owner(s) (if different).

I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to participate in the Downtown Urban Renewal District TIF Public Infrastructure Assistance Program. I (we) understand that failure to comply with the terms of the TIF assistance program may result in revocation of an award.

I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority and must receive all required approvals prior to commencing the work. I (we) understand if approved for TIF assistance, the work to be performed must also be in accordance with TIF assistance program procedures and the general design guidelines for the District, as well as the specific plans approved for the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be assessed for my project. Further, I (we) agree to grant City personnel and other review agency representative’s access to the subject site during the course of the review process (Section 38.34.050, BMC).

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Additional Information

Project Narrative

Provide an overview of the project in narrative format. The narrative must include a description of the following aspects of the project:

Proposed use(s) of project

  • e.g. retail, office, restaurant, mixed use, residential for sale or for rental, etc.
  • Total number and individual square footage of residential units; type of residential units (e.g. for-sale, rental, condominium, etc.); delineation of square foot allocation by use; number and type of parking spaces provided; and construction phasing.

Project Timeline

  • Include anticipated dates for site acquisition, project start and completion, as well as other project milestones. Multi-phase projects must include details for each phase. The timeline should also identify any critical or time-sensitive dates as well as any time constraints facing the applicant.

Construction information

  • Size of any existing structure to be demolished or rehabilitated; size of any new construction; types of construction materials (structural and finish);

Public Benefits

  • Projects with a high degree of public benefits are typically more likely to receive TIF assistance. The criteria of this application are intended to help the Board understand and evaluate the public benefits for a project. Provide a detailed narrative response to each criterion and include supporting documentation.

Part Two

FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE

Project Financial Information

For the Downtown Urban Renewal District Board to adequately review applications seeking TIF assistance, the following information must be submitted with the application. This information will be used to perform a third-party financial analysis to determine the project’s anticipated return on investment (ROI) and reasonableness of developer profit. The goal of the TIF Assistance program is to make projects financially feasible. Therefore, projects that demonstrate financial need for public funding will be given priority.

1. Site Maps and Building Plans

The Applicant must submit a completed Conceptual Review Application and City responses to the Board. The Conceptual Review application must include, at minimum:

a. Photographs of project site and/or building

b. Map showing the location of the site and its immediate surroundings

c. Proposed development plans including site plans, floor plans indicating square footage and layout, building elevations

d. Description of parking accommodations for residential units and commercial uses

e. Estimated date of occupancy

f. Anticipated off-site infrastructure improvements, including anticipated costs

g. Copy of Concept Review comments

2. Sources & Uses of Funds

a. Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, other anticipated types of public assistance, and any other types or methods of financing. Describe the sources of equity and include a term sheet for lender financing, if available.

b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project budget must identify the up-front sources intended to finance the development costs of the project. If determined, specify the specific line items of the project budget that each source will finance.

c. Summarize the uses of funds. General categories to be identified include acquisition and related site costs, hard construction costs, and a breakdown of soft costs.

3. Development Budget

Provide an accurate and detailed development budget for the project that includes a detailed breakdown of significant line item costs consistent with the sample included in the application packet. The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs. Also, identify all line items that are performed by the developer, owner, or related entities.

4. Budget of TIF Eligible Expenses

Identify which of the development costs are eligible for reimbursement as defined by the Downtown TIF Public Infrastructure Assistance Program documents.

5. Financial Commitments

Submit commitment letters and/or term sheets from all lenders for proposed debt (such as construction, mezzanine, permanent, and government financing) and all other financial sources of the project (such as grants and tax credits). Commitment letters must clearly specify the nature and terms of the obligations.

CRITERIA FOR TIF ASSISTANCE

The Board will evaluate each TIF assistance application using the following criteria. Indicate whether the application applies to each criterion. If ‘yes’, provide a detailed narrative response to each criterion and include documentation demonstrating adherence to the criteria must be submitted with the application.

VIEW EVALUATION CRITERIA HERE

The Downtown Bozeman Partnership reserves the right to request additional information from the applicant to determine grant eligibility. Applicants are required to submit a complete application and all supporting materials per the instructions in this packet. Incomplete applications will not be reviewed.