The City received a petition on January 24, 2020 signed by four property owners for the City to consider either expanding the Downtown Urban Renewal District or forming a new urban renewal district in an area just west of the existing Downtown Urban Renewal District (See attached Area Map). The area contains 128 properties and there are 77 property owners. The process to expand or form an urban renewal district is complex and takes significant time and resources. Staff determined the best approach was to first analyze the area of the petition and bring information to the City Council to seek direction on whether to begin a process to expand the Downtown Urban Renewal District, form a new urban renewal district, or not move forward with any action at this time.

City staff has a significant number of priorities and projects already programmed for 2020, so the City Administrator directed staff to prepare a funding package from public and private sources to hire a consultant to conduct the initial analysis. The analysis is to be completed by Community Development Services of Montana (CDS). CDS will conduct a review of conditions of blight in the area under consideration (See attached Area Map) per §7-15-4206 MCA and how addressing these conditions would benefit the public. As part of this review, evaluation of the benefits of creating a new district, versus adding to the existing downtown district will be prepared. Support for the work will come from City Finance, Planning, Public Works and GIS staff. The cost for CDS to complete the work is not more than $11,000.

The petitioners agreed to contribute $3,000 toward the effort and this funding will be combined with $4,000 from the General Fund and $4,000 from the Downtown Tax Increment Funds. The Council is accepting $1,500 at this meeting and an additional $1,500 in donations from the petitioners is expected to complete the funding package and will be brought to Council at a future meeting for acceptance.

City Council may:

• Accept the donation from Fagg Properties in the amount of $1,500 toward the analysis of expansion of the Downtown Urban Renewal District or formation of a new urban renewal district, and approve of the City utilizing up to $4,000 in Downtown Urban Renewal District Tax Increment Finance funding and up to $4,000 in City General Funds to complete the analysis, or;
• Not Accept the donation from Fagg Properties in the amount of $1,500 toward the analysis of expansion of the Downtown Urban Renewal District or formation of a new urban renewal district, not approve of the City utilizing up to $4,000 in Downtown Urban Renewal District Tax Increment Finance funding and up to $4,000 in City General Funds to complete the analysis.

Acceptance of this donation in the amount of $1,500 will be combined with $4,000 from the General Fund and $4,000 from the Downtown Tax Increment Funds to enter into a contract with the consultant. An additional $1,500 in donations from the petitioners is expected to complete the funding package and will be brought to Council at a future meeting for acceptance. The consultant cost will not exceed $11,000. Expenditure of these donations combined with the City funds is an unbudgeted expenditure for FY20.


 

Staff recommends the City Council accept the donation from Fagg Properties in the amount of $1,500 toward the analysis of expansion of the Downtown Urban Renewal District or formation of a new Urban Renewal District, and approve of the City utilizing up to $4,000 in Downtown Urban Renewal District Tax Increment Finance funding and up to $4,000 in City General Funds to complete the analysis.