Consent 10.
Regular City Council Meeting
- Meeting Date:
- 08/22/2011
- TITLE
- Community Challenge Planning Grant - Request for Tax Increment Finance Funds
- PRESENTED BY:
- Candi Beaudry
- Department:
- Planning & Community Services
Presentation:
PROBLEM/ISSUE STATEMENT
Big Sky Economic Development Authority (Big Sky EDA), on behalf of the East Billings Urban Renewal District (EBURD) HUD-DOT-EPA Sustainable Communities Partnership, is asking for up to $3 million, contingent on other verified matching funds, from the Community Challenge Planning Grant program to develop and implement a Sustainable Communities Fund. The fund will be used to direct, ensure and align investments in projects that embrace the livability principles and promote long-term sustainable development in the East Billings Urban Renewal District (EBURD).
The Sustainable Communities Fund is the Partnership’s strategy to create and preserve affordable housing close to job clusters in the EBURD’s revitalized mixed-income, mixed-use neighborhoods. Projects funded through the Sustainable Communities Fund will mirror all of the Community Challenge Grant’s criteria. Applicants must also align their projects with the aims and goals of the East Billings Urban Renewal Plan, EBURD Master Plan, Parking Overlay Zone, Exposition Gateway Plan, Form-Based (EBURD) Code, International Energy Conservation Code, and the proposed City Infill Policy. Having these crucial planning activities already in play has provided an environment conducive to sustainable development. By virtue of a Sustainable Communities Fund, the local Partnership will consider projects that plan, establish and acquire land for development, redevelopment and revitalization that reserves property for the development of affordable housing within the context of sustainable development.
The local Partnership’s catalyzing project is the homeWORD-North Park Children’s Center (NPCC) mixed-used, affordable housing complex. The project has been vetted through the local Partnership. homeWORD and NPCC will apply to the Sustainable Communities Fund to defray the costs of land acquisition. Other projects likely to access the Fund have been identified and will be vetted through the local Partnership.
The grant requires a 20% local match. Many of the partners are contributing in-kind contributions totaling $200,000. Staff is requesting the City contribute $100,000 of tax increment funds from the East Billings Urban Renewal District annually for three years for a total of $300,000. The grant application requires the Mayor’s signature on a letter of commitment of those funds as well as a letter stating the City is a member of the East Billings Urban Renewal District (EBURD) HUD-DOT-EPA Sustainable Communities Partnership. Staff is requesting City Council vote to put these items on the August 22, regular City Council agenda and approve the commitment of $300,000 of EBURD TIF funds as match for the grant.
The grant application is due Sept. 9, before another Council meeting will be held, so the Council is being asked to add this item to the Aug. 22 agenda. The EBURD Board usually is asked to make a recommendation to the Council but cannot meet until after the Aug. 22 Council meeting. The Council could make approval of the grant application contingent on a favorable recommendation from the EBURD Board.
A 3/4 vote of the Council Members present is needed to add the grant application to the agenda. Then a simple majority of those present is needed for approval of the item.
The Sustainable Communities Fund is the Partnership’s strategy to create and preserve affordable housing close to job clusters in the EBURD’s revitalized mixed-income, mixed-use neighborhoods. Projects funded through the Sustainable Communities Fund will mirror all of the Community Challenge Grant’s criteria. Applicants must also align their projects with the aims and goals of the East Billings Urban Renewal Plan, EBURD Master Plan, Parking Overlay Zone, Exposition Gateway Plan, Form-Based (EBURD) Code, International Energy Conservation Code, and the proposed City Infill Policy. Having these crucial planning activities already in play has provided an environment conducive to sustainable development. By virtue of a Sustainable Communities Fund, the local Partnership will consider projects that plan, establish and acquire land for development, redevelopment and revitalization that reserves property for the development of affordable housing within the context of sustainable development.
The local Partnership’s catalyzing project is the homeWORD-North Park Children’s Center (NPCC) mixed-used, affordable housing complex. The project has been vetted through the local Partnership. homeWORD and NPCC will apply to the Sustainable Communities Fund to defray the costs of land acquisition. Other projects likely to access the Fund have been identified and will be vetted through the local Partnership.
The grant requires a 20% local match. Many of the partners are contributing in-kind contributions totaling $200,000. Staff is requesting the City contribute $100,000 of tax increment funds from the East Billings Urban Renewal District annually for three years for a total of $300,000. The grant application requires the Mayor’s signature on a letter of commitment of those funds as well as a letter stating the City is a member of the East Billings Urban Renewal District (EBURD) HUD-DOT-EPA Sustainable Communities Partnership. Staff is requesting City Council vote to put these items on the August 22, regular City Council agenda and approve the commitment of $300,000 of EBURD TIF funds as match for the grant.
The grant application is due Sept. 9, before another Council meeting will be held, so the Council is being asked to add this item to the Aug. 22 agenda. The EBURD Board usually is asked to make a recommendation to the Council but cannot meet until after the Aug. 22 Council meeting. The Council could make approval of the grant application contingent on a favorable recommendation from the EBURD Board.
A 3/4 vote of the Council Members present is needed to add the grant application to the agenda. Then a simple majority of those present is needed for approval of the item.
ALTERNATIVES ANALYZED
A 20% local match is required for the Communities Challenge Planning Grant. Tax Increment finance funds committed by the City will be used in conjunction to leverage the grant. The maximum amount that can be leveraged is $300,000.
Council first may consider whether or not to add the item to the Aug. 22 agenda. If the item is added, the Council then may:
• Approve the request to commit $100,000 of EBURD TIF funds annually for a total of $300,000. This approval may be subject to a recommendation from the EBURD Board, if the Council desires; or
• Deny the funding request; or
• Modify the funding request
Council first may consider whether or not to add the item to the Aug. 22 agenda. If the item is added, the Council then may:
• Approve the request to commit $100,000 of EBURD TIF funds annually for a total of $300,000. This approval may be subject to a recommendation from the EBURD Board, if the Council desires; or
• Deny the funding request; or
• Modify the funding request
FINANCIAL IMPACT
There will be approximately $331,000 of unobligated funds in the EBURD tax increment fund available in FY12. Future revenues are not committed to any projects other than the First Interstate Bank Operation Center’s annual payment of approximately $93,000 and to the TIFD Coordinator position of approximately $50,000. After these obligations are met, it is anticipated approximately $188,000, at a minimum, will remain in the fund. There are sufficient funds in the EBURD TIF fund to cover the annual match.
RECOMMENDATION
Staff recommends that Council vote to put these items on the August 22, regular City Council agenda and approve the commitment of $100,000 annually for three years of EBURD TIF funds as match for the grant.