HomeMy WebLinkAboutResolution No. R21-123RESOLUTION NO. R21-123
A RESOLUTION OF THE CITY COUNCIL TO ADOPT CRITERA FOR AWARDING AND/OR
APPROVING GRANTS FOR THE LAUREL URBAN RENEWAL AGENCY (LURA) BOARD
AND CITY COUNCIL.
WHEREAS, the City Council previously created the Laurel Urban Renewal Agency (LURA),
pursuant to Ordinance No. 08-09 as codified at Title 18, Chapters 18.02 and 18.04 of the Laurel Municipal
Code, to provide input and recommendations regarding the most effective uses of resources gained from
the Tax Increment Finance (TIF) District; and
WHEREAS, the City Council appointed a LURA Board of Commissioners, pursuant to Resolution
No. R08-123, who are responsible for providing guidance and recommendations to the City Council
pursuant to grant programs that were previously created by resolution;
WHEREAS, the City Council has determined that it is appropriate to adopt mandatory criteria for
the LURA Board and City Council to utilize when reviewing and analyzing grant applications under the
previously created LURA grant programs.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Laurel, Montana, that
the LURA Board and City Council shall apply the following criteria when reviewing and awarding LURA
Grants to applicants under the previously approved grant programs:
Sparks.
1. Does the application benefit the public as a whole or just an individual business/property owner?
2. Does the application directly fund public projects or programs?
3. Does the application help to retire public debt?
4. Does the application establish a loan fund to provide financing?
5. Does the application stabilize or renovate publicly owned historic buildings?
6. Does the application construct and/or connect public infrastructure?
7. Does the project improve streetscape and/or public green spaces?
8. Does the project mitigate unsafe decay?
9. Does the project improve accessibility to publicly owned infrastructure?
10. Is the application intended to fund a study, plan or to promote something for the Public benefit?
Introduced at a regular meeting of the City Council on November 23, 2021, by Council Member
PASSED and APPROVED by the City Council of the City of Laurel this 231 day of November 2021.
APPROVED by the Mayor this 23' day of November 2021.
OF LAUREL
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Emelie, Eaton, Maycv—
R21-123 Adopt Criteria for LURA Grant Review and Award
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Bethany Langve 1 asurer
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R21-123 Adopt Criteria for LURA Grant Review and Award
Urban
Renewal
and Tax
Increment
Financing
CDS of Montana
October S, 2021
Purposes of Urban Renewal
Fundamentals of Tax Increment Financing
Laurel URD Summary
2 Workshop District Management
B
Overview Eligible Projects and Activities
Urban Renewal Experiences Across the State
and Cautionary Tales
Questions and Discussion
tory Authority for Urban Renewal
"...the prevention and elimination of
[blighted] 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... 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." (§7-15-
4202 MCA)
Types of U R Ds
Urban Renewal (URD)
Available only within incorporated
cities and towns in areas that
exhibit at least three conditions of
blight
Provides for investments in public
improvements in support of
commercial, industrial and
residential revitalization
Targeted Economic
Development (TEDD)
Available to cities, towns and and
counties in areas that exhibit
public infrastructure deficiencies
Supports value-added economic
development, usually industrial
with limited commercial uses
through investments in public
infrastructure
Urban Renewal and Tax Increment
Financing
The plan for a URD may include a provision to use Tax
Increment Financing (TIF).
TIF is a state authorized, locally driven funding
mechanism that allows cities and counties to direct
property tax dollars that accrue from new investment
within a URD or TEDD, to development activities within
that district.
TIF is not a special taxing district; it does not add any new
taxes. Rather, it affects the way that incremental
increases in property taxes are distributed once
collected.
Projects and programs that are funded by TIF dollars must
serve a public purpose.
How a Tax Increment Finance
Provision (TIF) Works
TIF
Start
Date
Property
Values
TIF
End
Tax Value 4
Distribution
/ Increment for
Development
Base +
Increment
BASE
Tax Value for Distribution to Other
Taxing Jurisdictions
Time
he Calculation
ssume: $10,000,000 dollars of net
ew Appraised Value
ssume: Class 4 commercial
roperty valued at a tax rate of
89%(2021)
)xable Value = $189,000
ssume: 600 net mills (total mills
sinus the six -mill university levy and
ny voted mills after TIF effective
ate )
)x Increment = $113,400
Potential Funding Strategies
w TIF dollars can be used to:
w Directly fund public projects and programs
w Retire debt
Leverage other funding sources, both public and
private.
Funds may be used to establish a revolving loan fund to
provide financing.
w Interest rates can be set based on project feasibility.
wThe revolving fund may continue in perpetuity, even
after the TIF provision has "sunsetted", but funds must be
used in accordance with the adopted urban renewal
plan.
Laurel URD Summary
■ l Laurel Urban Renewal District created in 2007
r City created an urban renewal agency in 2008
w Created a Facade Improvement Grant program in 2010
M Created Technical Assistance Grant program in 2010
0 Large Grant Requests Program in 2015
0 General Small Grant Program in 2019
0 Issued a 25 -year TIF bond in 2020
10
Feedback,
update and
evaluation of
Implemented
projects
(Last quarter of
calendar year)
Prepare Annual
Report no later
than September
30 of each year
per
§7-15-4237 MCA
Identity projects
to be undertaken
and/or continued
In the next fiscal
year (January -
February)
Adopt URD Work
Plan and Budget
(July -August) as
part of the Town
budget
Estimate TIF
dollars available
for the next fiscal
Year (February -
March)
Prepare Work Plan
and Budget for
Upcoming Fiscal
Year(March-
April)
Stabilize and/or
renovate
publicly owned
historic buildings
Mitigate unsafe
decay
Improve
accessibility to
publicly owned
infrastructure
Construct and
connect public
infrastructure
Improve
streetscapes
and public
green spaces
Study, plan and
promote
Project Evaluation s
Criteria
w Public purpose
w Urban Renewal Plan conformance
w Beneficiaries - community or district
vs. business? 2
w Leverage - percent of total project
cost
w Partnerships brought to the project
w Measurable objectives
m Property tax growth
wOpportunity cost 400A
wOngoing maintenance requirements
13
Flooding
Need for Street
Improvements
Storm Drain
System
Inadequacies
Need for
Intersection
Improvements
Lack of Green
Space
Lack of
streetlights,
sidewalks, curbs
and gutters
Urban Renewal Sample Projects
• Water main replacement
• Sewage system expansion pro -rata share
• Repaving/rebuilding streets
,/Broadband installations
• Unified street fixtures/colors
• Intersection identification
• Signs and Wayfinding
9 Utility box graphics/anti-graffiti
Sample Projects
• Public parking lot construction
• Revolving loan fund
• Historic Facade Improvements
• HK (High Intensity Activated Cross
alk) light
(Fire
raffic Signals
hydrant connections
DA in publicly owned buildings
•Sidewalks
• Streetlights
• Connectivity
• Leveraging LMI grant applications
17
Questionable
public benefit
Dependency
on centrally
assessed
taxpayers
"Build it and
they will come"
Change in
taxable status
Lack of buy -in
Single use
districts
— rl,