Downtown Roundup Urban Renewal Plan

Our heritage. Our culture. Our pride.

Downtown

`

Roundup Urban Renewal Plan

2018

Our heritage. Our culture. Our pride.

Downtown Roundup Urban Renewal Plan Urban Renewal Plan for the Downtown Roundup Urban Renewal Area

Commissioned by The City Council of the City of Roundup, Montana 34 3rd Avenue West Roundup, Montana 59072

Prepared by

Snowy Mountain Development Corporation 613 N.E. Main Street Lewistown, Montana 59457

With assistance from Hudson Consulting, L.L.C. Roundup Community Partners Montana Department of Revenue Musselshell County Commission

Acknowledgements and gratitude for the following professionals who have completed substantial planning and research with significant local public involvement. Their work has made it possible for SMDC to develop and assemble this Urban Renewal Plan.

CDS of Montana Great West Engineering Land Solutions, Inc. High Plains Architects

DATED October 2018

Our heritage. Our culture. Our pride.

Table of Contents SECTION 1

INTRODUCTION AND OVERVIEW ..................................................................... 1 Statement of Intent ................................................................................................................... 1 Urban Renewal Planning ........................................................................................................... 2 Downtown Roundup Urban Renewal District ........................................................................... 3 Overview of Tax Increment Financing ....................................................................................... 5

SECTION 2

DOCUMENTATION OF BLIGHT ......................................................................... 7 Establishing Blight...................................................................................................................... 7 Defining Blight ........................................................................................................................... 7 Blight Conditions in the Downtown Roundup Urban Renewal District ................................ 9-10

SECTION 3

DOWNTOWN ROUNDUP URBAN RENEWAL DISTRICT ..................................... 17 District Boundary ..................................................................................................................... 17 Land Use ............................................................................................................................. 18-22 Existing Conditions ............................................................................................................. 23-24

SECTION 4

URBAN RENEWAL DISTRICT GOALS AND STRATEGIES .................................... 25 Boundary Goal ......................................................................................................................... 25 Administrative Goal ................................................................................................................. 25 Blight Reduction Goal .............................................................................................................. 26 Activity Centers Goal .......................................................................................................... 26-27 Community Design Goal .......................................................................................................... 27 Functional Community Goal .................................................................................................... 28 Marketing Goal ........................................................................................................................ 28 Economic Development Goal .................................................................................................. 28

SECTION 5

MANAGEMENT STRATEGY ............................................................................. 31 Administration .................................................................................................................... 31-32 Implementation .................................................................................................................. 32-36 Evaluation and Amendments .................................................................................................. 36

Our heritage. Our culture. Our pride.

MAPS Map 1. Boundary Map of the Downtown Roundup Urban Renewal District ....................................................... 4 Map 2. Roundup Zoning Classification Map ....................................................................................................... 20

PHOTOS Photo Collages 1-6 of Blight Conditions in the Downtown Roundup Urban Renewal District ...................... 11-16

FIGURES Figure 1.1 Tax Increment Calculation ................................................................................................................... 6 Figure 1.2 How TIF Works ..................................................................................................................................... 6

TABLES Table 1. Downtown Roundup Urban Renewal District Planner ............................................................................ 8 Table 2. City of Roundup Zoning Ordinance by Zone and Intent ................................................................... 18-19 Table 3. Powers Conferred to the Downtown Urban Renewal Board by Montana Urban Renewal Law ..... 31-32 Table 4. Costs that May Be Paid by Tax Increment Financing ....................................................................... 34-35

ILLUSTRATIONS Illustration 1. Downtown Roundup Inventory ................................................................................................... 21 Illustration 2. Downtown Roundup Existing Land Uses ...................................................................................... 22 Illustration 3. Downtown Roundup Proposed Land Uses ................................................................................... 22 Illustration 4. Existing Conditions North Downtown Roundup Site Analysis ...................................................... 23 Illustration 5. Existing Conditions South Downtown Roundup Site Analysis ...................................................... 24 Illustration 6. Downtown Roundup Master Plan Illustration (South) ................................................................. 29 Illustration 7. Downtown Roundup Master Plan Illustration (North) ................................................................. 30

APPENDICES A B C D E F G

Resolution of Necessity (Res. 1105) Downtown Roundup Urban Renewal District Parcel Data RCP’s Recommendations for Prioritization of the Main Street Master Plan Action Steps Roundup Community Partners Meeting Agendas and Minutes Related to Downtown Revitalization, Urban Renewal and Tax Increment Financing City Council Meeting Agendas, Minutes and Actions Related to Downtown Revitalization, Urban Renewal and Tax Increment Financing Community Meetings Photos, Flyers and Sign-In Sheets Related to Downtown Revitalization, Urban Renewal and Tax Increment Financing Musselshell County Commission Meeting Agendas, Minutes and Actions Related to Downtown Revitalization, Urban Renewal and Tax Increment Financing

SECTION 1: INTRODUCTION AND OVERVIEW The City of Roundup, Montana has made significant strides in community and economic development planning and analyses, which are evident in its Growth Policy (2016), Capital Improvements Plan (2016), Downtown Preservation Plan (2018), Downtown Master Plan (2018) and Downtown Blight Assessment (2018). Following the recommendations set forth in these documents, the City launches its program to revitalize its downtown commercial core and highway gateways sited along the US87N transportation corridor, which passes through the center of town as Main Street. The renewal area includes residential parcels contiguous to Main Street and a number of commercial and industrial parcels along the US87 gateways at the City’s northwestern and southwestern borders. The City of Roundup undertakes the revitalization of the Downtown Roundup Urban Renewal District to address the overall deterioration and decay characteristic of the area’s buildings—many of which are listed (or eligible for listing) on the National Register of Historic Places. The City creates its Downtown Roundup Urban Renewal District in accordance with 7-15-4201 Montana Code Annotated (MCA) and establishes a tax increment financing (TIF) program to help fund its efforts. This Downtown Roundup Urban Renewal Plan for the District guides the City’s investment decisions. As stated in 7-15-4209 MCA, a local government “may formulate a workable program for utilizing appropriate private and public resources:

STATEMENT OF INTENT With this Downtown Roundup Urban Renewal Plan, the City of Roundup City Council demonstrates its intent to create the Downtown

Roundup Urban Renewal District with a Tax Increment Financing Provision and 2018 Base Year. It also provides a roadmap for downtown redevelopment efforts, to address the need for a more vital downtown district through a combination of business development and physical improvements.

(a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program”

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URBAN RENEWAL PLANNING The City of Roundup, Montana has made significant strides in community and economic development planning and analyses, which are evident in its Growth Policy (2016), Capital Improvements Plan (2016), Downtown Preservation Plan (2018), Downtown Master Plan (2018) and Blight Assessment (2018). Each document illuminates blight conditions in and around the City’s downtown core and gateways, which include overall deterioration of private commercial and residential structures and public infrastructure. Moreover, the Downtown Master Plan, Downtown Preservation Plan, and Growth Policy recommend that the City explore tax increment financing as a mechanism to support redevelopment and revitalization, as documented specifically below.

DOWNTOWN ROUNDUP MASTER PLAN Land Solutions, Inc. wrote the Downtown Roundup Master Plan, which was adopted by the City Council of the City of Roundup by Resolution (#1085) on March 6, 2018. At page 9 of the Plan, Land Solutions pulls forward from the City’s 2016 Growth Policy that: “Many goals and objectives listed in the Growth Policy are relevant to the downtown area….and….include an interest in….the possibility of Tax Increment Financing (TIF).”

And as recommended in Action Item (E.5) at page 73 to: “Explore Tax Increment Financing (TIF) and establish in Roundup if the community supports its development.”

DOWNTOWN ROUNDUP PRESERVATION PLAN High Plains Architects prepared the City’s Downtown Preservation Plan, which was adopted by the City Council of the City of Roundup by Resolution (#1086) on March 6, 2018. At page 5, High Plains recommends that the City: “Look into establishing a tax increment financing district in the downtown area to provide funds for redevelopment.”

At page 17, High Plains suggests that the City: “Establish a Tax Increment Financing (TIF) District in Downtown Roundup that includes the historic district in its entirety (at a minimum)” [Strategy 3.1.1.]

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CITY OF ROUNDUP GROWTH POLICY Great West Engineering wrote the City’s Growth Policy, which was adopted by the City Council of the City of Roundup on December 20, 2016. At page 20, Great West states that: “Based upon public feedback from the needs assessment and public workshops, there is interest in examining the potential use of tax increment financing (TIF) to address redevelopment of areas in the City.”

At page 53, Great West assigns the action to examine the potential for using TIF to the City, Chamber of Commerce and Snowy Mountain Development Corporation and to complete that action within a 2-3year frame. Given the Policy’s adoption in 2016, the City of Roundup’s 2018 Urban Renewal Plan is timely.

Following a review of Snowy Mountain Development Corporation’s Downtown Roundup Blight Assessment, the Roundup City Council adopted a Resolution of Necessity (Resolution 1105) on September 24, 2018 (Appendix A) that declared the Downtown Urban Renewal District “blighted” as defined in the Montana Urban Renewal Law, 7-15-4206 MCA. More specifically, the Resolution documented the following five prominent blight conditions in the downtown core and surrounding area:

1. Physical deterioration of buildings and properties 2. Inappropriate or mixed uses of land or buildings 3. Defective street layout 4. Unsanitary and unsafe conditions and the existence of conditions that endanger life or property by fire or other causes 5. Vacant, deteriorating buildings DOWNTOWN ROUNDUP URBAN RENEWAL DISTRICT The Resolution of Necessity follows the City Council’s adoption of the Roundup Downtown Preservation Plan (January 2018) completed by High Plains Architects and the Roundup Downtown Master Plan (February 2018) completed by Land Solutions, Inc. Both Plans focused on the downtown area encompassed also in the Downtown Roundup Urban Renewal District. The District’s boundaries were developed with input from Snowy Mountain Development Corporation (SMDC) and Montana Department of Revenue (MT DOR) staff. After walking the District, a number of Roundup City Councilmembers expanded the preliminary boundaries drawn by SMDC and MT DOR to include an area around the hospital and industrial areas, portions of which are sited in the floodplain. The final boundary map is provided on the next page.

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Map 1. Boundary Map of Downtown Roundup Urban Renewal District

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OVERVIEW OF TAX INCREMENT FINANCING “Tax Increment Financing in Montana: A Manual for Local Governments and Economic and Community Development Agencies” written by Janet Cornish of Community Development Services of Montana is widely regarded as the leading reference material on all things urban renewal in Montana.

The sections below explaining tax increment financing and the eligible costs toward which these revenues may be put are reproduced verbatim from Cornish’s Manual.

WHAT IS TAX INCREMENT FINANCING? Tax increment financing (TIF) is a state authorized, locally-driven funding mechanism that allows cities and counties to direct property tax dollars that accrue from new development, within a specifically designated district, to community and economic development activities. In Montana, TIF districts are authorized in parts 7-- 15-- 4201 and 4301, et. seq. Montana Code Annotated (MCA), the State’s Urban Renewal Law. Proposed TIF districts are typically characterized by blight and/or infrastructure deficiencies that have limited or prohibited new investment. A base year is established from which "incremental" increases in property values are measured. Virtually all of the resulting new property tax dollars (with the exception of the six-mill statewide university levy) can be directed to redevelopment and economic revitalization activities within the area in which they are generated.

Tax payers located within a TIF district pay the same amount as they would if the property were located outside the district. TIF only affects the way that taxes, once collected, are distributed. Taxes that are derived from base year taxable values continue to be distributed to the various taxing jurisdictions – local and state government entities and school districts. (See Figure 1.1.) Taxes derived from the incremental increase in taxable value are placed in a special fund for purposes set forth in establishing the TIF program.

Districts are authorized for a period of 15 years but may potentially be extended for up to an additional 25 years if all or part of TIF dollars have been pledged to the repayment of a bond. TIF dollars, however, can only accrue if property values increase substantially. For example, in Montana, a property with an assessed market value of $1 million only generates about $14,800 in property taxes annually, using a total mill levy of 600.

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Figure 1.1 Tax Increment Calculation ď ° Base Year Value o Taxable Valuation x Mill Value = Taxes Collected o Directed to All taxing Bodies (Local Governments, Schools, State)

ď ° Tax Increment Value o Incremental Taxable Valuation x Mill Value = Incremental Taxes Collected o Directed to Tax Increment Program (except University Levy)

While TIF does direct revenue derived from new property taxes to a specific area for a period of time, ultimately the entire community benefits as Figure 1.2 shows:

Figure 1.2 How TIF Works

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SECTION 2: DOCUMENTATION OF BLIGHT ESTABLISHING BLIGHT Prior to the development of this Downtown Roundup Urban Renewal Plan, the Roundup City Council adopted a Resolution of Necessity designating the renewal district as blighted, based on five characteristics. This action establishes the need for an urban renewal program and the rational for investing public funds in redevelopment activities.

DEFINING BLIGHT Montana Code (7-15-4206, MCA) defines a “blighted area� as an area that is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime, that substantially impairs or arrests the sound growth of the city or its environs, that retards the provision of housing accommodations, or that constitutes an economic or social liability or is detrimental or constitutes a menace to the public health, safety, welfare, and morals in its present condition and use, by reason of: (a) the substantial physical dilapidation, deterioration,

age obsolescence, or defective construction, material, and arrangement of buildings or improvements, whether residential or nonresidential; (b) inadequate provision for ventilation, light, proper

BLIGHT The Downtown Master Plan identifies 8 problems plaguing the downtown area. Of those, 4 are indicative of blight, as follows: An aging water distribution system and poor water quality.

The physical condition and

appearance of Main Street is impacting the

economic competitiveness of the area.

How Main Street appears visually and how it reflects upon the community.

The number of

abandoned and poorly maintained buildings along Main Street.

sanitary facilities, or open spaces as determined by competent appraisers based on 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;

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(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.

Montana Law requires municipalities to meet at

least 3 of these conditions to constitute a

finding of blight.

In June 2018, Snowy Mountain Development Corporation and Department of Revenue staff toured Roundup’s Central Business District and US87N gateways into the City to assess blight conditions against the definitions provided in the Montana Statute. In July 2018, SMDC staff prepared and submitted to the City Council in July 2018 a formal Downtown Roundup Blight Assessment. In August, Council members reviewed this document against the Montana statute and, in September 2018, elected to expand the preliminary boundaries originally drafted by SMDC and MT DOR. On September 24, 2018, the Roundup City Council adopted its Resolution of Necessity. SMDC staff provided the following Planner to guide the creation of the Downtown Urban Renewal District with a Tax Increment Financing Provision with a 2018 tax base year.

Table 1. Downtown Roundup Urban Renewal District Planner

PROJECT PHASE RESOLUTION OF NECESSITY

URBAN RENEWAL PLAN

PROPERTY OWNER INPUT

PLANNING / ZONING REVIEW

NOTICE & PUBLIC HEARING

ADOPTION OF ORDINANCE

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STARTING

ENDING

9/05/18

9/18/18

9/18/18

10/02/18

9/13/18

10/16/18

10/16/18

11/06/18

11/06/18

11/20/18

11/27/18

11/27/18

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BLIGHTED CONDITIONS IN THE DOWNTOWN ROUNDUP URBAN RENEWAL DISTRICT Snowy Mountain Development Corporation (SMDC) staff and Department of Revenue (DOR) staff reviewed State of Montana Property Record Cards of the properties located within the Downtown Roundup Urban Renewal District, followed by a tour to identify and photo blight conditions as described in Montana Urban Renewal Law. (See the photos taken during this tour at pp. 11-13). SMDC provided handouts to DOR staff of the Montana Code describing blight and asked for their professional experience and appraisal opinions of the conditions of the structures within the Assessment Area against the Statute. Together, the following blight conditions were identified:

1. Physical deterioration of buildings and properties Many of the structures in the defined area are dilapidated, deteriorating or in poor repair and properties are poorly maintained. There are several blighted empty lots within the defined area, crumbling brickwork, crumbling concrete, heavily damaged wood and vinyl siding, and boarded-up windows and doors.

2. Inappropriate or mixed uses of land or buildings The presence of incompatible uses within the defined area is incompatible with retail, commercial, residential and parkland development. This land use conflict can result in “disincentivizing” private property owners’ desire to improve their properties.

3. Defective street layout Much of the area is without adequate sidewalks, curbs, or gutters which exacerbate flooding conditions and aggravate traffic circulation. Optimum street layouts encourage traffic mobility and ample parking access that enhance commercial and recreational opportunities.

4. Unsanitary and unsafe conditions and the existence of conditions that endanger life or property by fire or other causes Many structures along Main Street show the effects of fire and hail damage.

Structures with flat rooftops and no rain gutters display substantial deterioration.

Standing water from flooding and inadequate stormwater drainage systems attract mosquitos that may transmit pestilence and disease to citizens and animals. The first case of West Nile Virus in Montana was documented earlier this month in a horse in Roundup.

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5. Vacant, deteriorating buildings Vacant structures constitute a fire hazard and present a significant risk to adjacent occupied structures. In many locations throughout the Assessment Area, sidewalks are deteriorating or absent and present a hazard to pedestrians. Department of Revenue staff reported that approximately 50% of the commercial structures in the Assessment Area are vacant. Vacant structures are known to attract criminal activity; often become home to transients; and are frequently marked or tagged by vandals.

When these conditions take hold, they often require higher-than-average responses from the city’s police, fire, building and planning staffs and draw significantly from the city’s general funds.

While declining property tax values are not a specific blight condition identified in the Montana Code, it is largely accepted among city and regional planners and economic developers as a

consequence of blight.

A review of the Montana Department of Revenue Property Record Cards

for multiple properties within the Assessment Area show declining assessment values for

both land and buildings.

Photos appended to DOR records documenting decline in both land

and building assessment values from 2015 to 2017 are provided at pages 14-16.1

In summary, the Downtown Roundup Urban Renewal District contains a great deal of blight. There is

substantial structural deterioration, long-term land vacancy, and significant infrastructure needs. Several of the commercial buildings are vacant or deteriorated and may require demolition. Many of the sidewalks are cracked or nonexistent, alleys are deteriorated, and, in general, much of the area is substandard. In contrast, there are also properties within the District that are in good repair but are included to: (i) allow for a contiguous block of land within the District that may be designated for Urban Renewal, should the City Council opt to do so; and (ii) because pockets of revitalization cannot be sustained when areas of neglect and blight surround them. Over time, without concerted effort from both the public and private sectors to remedy blight conditions, continued deterioration and decline in the District is likely.

Toward that end, the Montana Code Annotated, Title 7 Chapter 15 Part 4209, provides to local governments the authority

to formulate a workable program to utilize private and

public resources to eliminate blight.

1

Digital photos appended to MT Department of Revenue Property Record Cards of properties in the Assessment Area with land assessment values declining from 2015-2017 are available upon request.

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Photo Collage 1. Blight Conditions in the Downtown Roundup Urban Renewal District

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Photo Collage 2. Blight Conditions in the Downtown Roundup Urban Renewal District

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Photo Collage 3. Blight Conditions in the Downtown Roundup Urban Renewal District

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Photo Collage 4. Photos from MT DOR Property Record Cards Documenting Decline in Land and Building Assessment Values 2015-2017.

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Photo Collage 5. Photos from MT DOR Property Record Cards Documenting Decline in Building Assessment Values 2015-2017.

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Photo Collage 6. Photos from MT DOR Property Record Cards Documenting Decline in Building Assessment Values 2015-2017.

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SECTION 3: DOWNTOWN ROUNDUP URBAN RENEWAL DISTRICT DISTRICT BOUNDARY The Downtown Roundup Urban Renewal District boundaries are as follows: T 8N, R 25E, Section 12, McCleary First Addition to Roundup Blocks 9, 21, and 25; all Lots; Block 24; Lots 1, 2, 3, 5, and 6; and Section 13, Roundup Original Townsite, Blocks 1 through 28; all Lots; Block 29; all Lots and east half of vacated 2nd Street West Nelson’s Addition Block 1; Lots 1 through 12 and west half of vacated 2nd Street West (May 16, 2000 City Council Meeting) Block 2; Lots 1 through 22; Nelson’s Second Addition Block 1; all Lots; Block 2; all Lots and south half of vacated 2nd Avenue West; Milwaukee Land Company’s First Addition; Blocks 1 through 6 and 8 through 13; all Lots; Milwaukee Land Company’s Second Addition; Blocks 32, 33, 34, and 41 through 45; all Lots; Northwest Townsite Company’s First Addition; Block 4; Lots 13 through 31; Block 5; all Lots; Northwest Townsite Company’s Third Addition Block 4; Lots 5 through 8; Blocks 5, 6, 11, 12, 13, 22, 23, 24, and 31; Block 14; Lots 7 through 18; Block 21; Lots 7 through 18; Block 32; Lots 7 through 18; Parcel Z (between Blocks 5 and 6 of the Northwest Townsite Company’s Third Addition); East half of Section 13; COS 1991-2 Tracts 1 A and 2A; COS 1998-2 Tracts 1, 2, and 3; COS 1974-15 Amended Tract 2; COS 1983-2 Tracts A through F and H through K; COS 1983-2-A Tracts G1 and G2; CO 2007-6 Tracts 1 and 2; COS 2007-7 Tracts A-1 and A-2; Deed Book 234 Page 325 metes and bounds parcel; Deed Book 375 Page 653 metes and bounds parcel; Remainder of Deed Book 322 Page 541 metes and bounds parcel less preceding surveys and deeds; and Section 14, Park Addition Blocks 2 and 5; all Lots; Block 3; Lots 1, 2, 3, north half of 5, 6, and 7; Block 4; Lots 1, 2, 4, and 5; Steen Addition Block 5; all Lots; Nicholson Tracts B-3, C-2, and C-3; Tract directly East of Nicholson Tract B-3, described in Deed Book 99, Page 69.

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LAND USE The land use within the Downtown Roundup Urban Renewal District consists of a mix of uses. These land uses are regulated by Zoning Ordinance of the City of Roundup, referred to as the "Zoning Chapter of the Roundup Municipal Code" (Ord. No. 459, ยง 28.01, 7-20-2004), codified in the Code of Ordinances, published by Order of the City Council, and effective on September 18, 1997. Pursuant to Article III, Sec. 28-46, Official Zoning Map, the city is divided and classified into the following: R-1 Residential Single; R-2 Residential General; HB Highway Business; CBD Central Business District; LI Light Industrial; HI Heavy Industrial; and FP Floodplain (Ord. No. 459, ยง 28.03.010, 7-20-2004).

Table 2. City of Roundup Zoning Ordinance by Zone and Intent

ZONE (1) R-1 Residential Single.

INTENT The intent of this district is to provide for low density, single-family residential development, and to provide for such community facilities and services as will serve the area's residents while protecting the residential character and quality of the area.

(Ord. No. 459, ยง 28.05.010, 7-20-2004)

(2) R-2 Residential General.

The intent of this district is to provide for the development of single-family to four-family residences and medium- and high-density apartments. The district should provide a variety of housing types to serve the varied housing needs of area residents.

(Ord. No. 459, ยง 28.06.010, 7-20-2004)

(3) HB Highway Business.

This district is intended to accommodate a broad range of retail and service functions especially those operations that benefit from access to the U.S. Highway 87 and U.S. Highway 12.

(Ord. No. 459, ยง 28.08.010, 7-20-2004)

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ZONE (4) CBD Central Business District.

INTENT The intent of this district is to provide a central area for the community's business, government, service and cultural activities. Uses within this district should be appropriate to a high density, intensively developed commercial center. Appropriate areas should be provided for the logical and planned expansion of the present district.

(Ord. No. 459, § 28.09.010, 7-20-2004)

(5) LI Light Industrial.

The intent of this district is to provide for the community's needs for wholesale trade, storage and warehousing, trucking and transportation terminals, light manufacturing and similar activities. The district should be oriented to major transportation facilities yet arranged to minimize adverse effects on residential developments; therefore, some type of screening may be necessary. Residences shall not be permitted in this district.

(6) HI Heavy Industrial.

The intent of this district is to provide for the community's needs for wholesale trade, storage and warehousing, trucking and transportation terminals, heavy manufacturing and similar activities. District should be oriented to major transportation facilities yet arranged to minimize adverse effects on residential developments; therefore, some type of screening may be necessary.

Residences shall not be permitted in this district.

(7) FP Floodplain.

The intent of this district is to restrict all uses to special conditions and approval of the city council.

(Ord. No. 459, § 28.12.010, 7-20-2004)

Any number of these zoning districts are located within the Downtown Roundup Urban Renewal

Current uses of land within the District are in accordance to the City of Roundup’s Zoning Ordinances. A Zoning Classification Map is provided on the next page.

District.

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Map 2. City of Roundup Zoning Classification Map

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A Downtown Inventory conducted by Land Solutions in 2018 showed that a majority of downtown structures are vacant or underutilized, as depicted in the illustration below.

Illustration 1. City of Roundup Downtown Inventory Source: Downtown Roundup Master Plan, p. 29.

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Land uses along the Main Street corridor are primarily Central Business District, Highway Business, Residential and Parks, as provided below, at left, with Land Solutions’ recommendations below, right.

Land Solutions’ site analysis demonstrating the existing conditions in the downtown area are at pp.2324.

Illustration 2. Current Land Uses Illustration 3. Proposed Land Uses Source: Downtown Roundup Master Plan, p. 25 Source: Downtown Roundup Master Plan, p. 29.

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Illustration 4. EXISTING CONDITIONS: North Downtown Site Analysis

Downtown Roundup Urban Renewal Plan

Source: Downtown Roundup Master Plan, p. 21.

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Illustration 5. EXISTING CONDITIONS: South Downtown Site Analysis

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Source: Downtown Roundup Master Plan, p. 22.

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SECTION 4: DOWNTOWN ROUNDUP URBAN RENEWAL DISTRICT GOALS AND STRATEGIES The following goals and strategies are indicative of the planning approach to reducing and remedying blight conditions in the Downtown Roundup Urban Renewal District.

They are based on the 2018 Downtown Master Plan, 2018 Downtown Preservation Plan, public meetings and ongoing community dialogue. They will provide the sideboards for the Urban Renewal Board’s actions and are intended to be adequate in breadth to reinforce the Board’s role as the advisory body to the Roundup City Council.

BOUNDARY GOAL: THE D ISTRICT SHOULD ENCOMPASS AN AREA WHERE WE CAN REASONABLY EXPECT TO ADDRESS BLIGHTED CONDITIONS IDENTIFIE D IN THE RESOLUTION OF NECESSITY. CRITERIA ASSOCIATED WITH T HIS SHOULD BE:

VISION STATEMENT A thriving community

center and gathering place that embraces its unique heritage through architecture, events, and commerce, our downtown is

safe, inviting, walkable, and connects surrounding neighborhoods and community assets through parks, sidewalks, and

wayfinding signage.

▪

The presence of blight within the District

With employment

▪

Adequate resources (TIF dollars and other public and private resources)

▪

Ability to successfully meet goals and objectives in a timely manner (feasibility).

opportunities and incentives for growth and economic development, downtown

▪

Must include entire parcels

Roundup is recognized regionally for its high

quality of life, historic and ADMINISTRATIVE GOAL: CONSIDER THE CREATION OF AN URBAN RENEWAL AGENCY AND APPOINT AN URBAN RENEWAL BOARD (“URBAN RENEWAL BOARD”) PER 7-15-4234 AND 4235 MCA, RATHER THAN HAVING THE CITY COUNCIL ACT AS THE URBAN RE NEWAL AUTHORITY. ▪

cultural heritage and vibrant unique businesses.

Downtown Roundup Master Plan, p. 11

The Roundup City Mayor shall appoint a sixmember “Urban Renewal Board” comprised of five voting members who own property in the Downtown Roundup Urban Renewal District, and one non-voting ex-officio member who is also a member of the Roundup City Council, with staggered terms of service to be determined by the Mayor

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▪

Direct the Urban Renewal Board and staff to prepare an annual work plan to implement the Urban Renewal Program for presentation to the City Council

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Direct the Urban Renewal Board and staff to prepare an annual budget for review and adoption by the City Council

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Secure a consultant to train the six-member Urban Renewal Board on TIF management, annual work planning and budgets

BLIGHT REDUCTION GOA L: ADDRESS “EYESORES” IN THE DOWNTOWN AREA THROUGH A VARIE TY OF STRATEGIES, IN CLUDING, BUT NOT LIMITED TO REHABILITATION, MOTHBALLING AND DEMOLITION. ▪

Support and encourage business owners and homeowners in the District to address the physical deterioration of their properties by providing incentives that reduce the overall costs for them to do so

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Allow mixed-use commercial/residential and short-term rentals in the central and historic core of downtown to allow for more economic development and tourism activities

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Address defective street layouts

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Address unsanitary and unsafe conditions and the existence of conditions that endanger life or property by fire or other causes

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Address vacant, deteriorating buildings and buildings with absentee owners

ACTIVITY CENTERS GOA L: CREATE A DOWNTOWN WHERE PEOPLE WANT TO GATHER, SOCIALIZE, RECREATE, LIVE, AND SHOP BY PROMOTING A MIX OF USES AND ACTIVITIES. ▪

Create a central gathering area to serve as the “heart” of downtown through the creation of a plaza, promenade or town square. Reference: Downtown Roundup Master Plan, Action A.1.

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Promote the development of central community amenities and business anchors to locate in downtown, such as a theatre, bowling alley, restaurant, large store, etc. Reference: Downtown Roundup Master Plan, Action A.2.

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Define locations and create plans for additional recreational opportunities for youth and seniors, including options such as a skate park, splash park, street games and shaded observation areas. Reference: Downtown Roundup Master Plan, Action A.3.

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Allow and incentivize second-story residential and office units in downtown commercial buildings by creating an incentive program that allows permitting and utility fee reductions for buildings that combine mixed-uses into a single structure or development. Reference: Downtown Roundup Master Plan, Action A.4.

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Support and coordinate with efforts to renovate the historic Central School and connect it to downtown. Reference: Downtown Roundup Master Plan, Action A.5.

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Support the continued development of the Roundup Commemorative Garden and create additional green spaces in appropriate locations downtown.

Reference: Downtown Roundup Master Plan, Action A.6.

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Highlight and enhance existing community gathering spaces near and in the downtown area. Reference: Downtown Roundup Master Plan, Action A.7.

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Identify lots of areas that are within walking distance of downtown that would be suitable for cluster-home developments. Reference: Downtown Roundup Master Plan, Action A.8.

COMMUNITY DESIGN GOA L: ESTABLISH A SENSE O F COMMUNITY PRIDE THROUGHOUT DOWNTOWN BY ENHANCING VISUAL AESTHETICS AND CREATING A COHESIVE DOWNTOWN THEME. ▪

Update the zoning ordinance to permit downtown businesses to have sidewalk cafes and encourage the addition of such features through educational sessions for business owners. Reference: Downtown Roundup Master Plan, Action B.1.

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Create a downtown improvement program to incentivize building improvements and create a City ordinance that requires a minimum level of sidewalk and exterior upkeep for downtown buildings. Reference: Downtown Roundup Master Plan, Action B.2.

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Create welcoming entrance features at the north and south ends of Main Street to enhance the sense of arrival to downtown. Reference: Downtown Roundup Master Plan, Action B.3.

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Create overlay zones within the zoning ordinances to include a “Historic District Overlay Zone” and a “Gateway Corridor Overlay Zone” that include design standards and guidelines. Reference: Downtown Roundup Master Plan, Action B.4.

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Create a streetscape plan for Main Street that establishes design standards and a plan to add unique lighting, banners, benches, bike racks, planters and trees and other amenities. Reference: Downtown Roundup Master Plan, Action B.5.

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Update the zoning ordinance to include more intensive landscape requirements for the downtown and gateway corridor areas. Reference: Downtown Roundup Master Plan, Action B.6.

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Support and coordinate with the findings and efforts of the Historic Preservation Plan to restore, remove, or renovate dilapidated commercial buildings and housing. Reference: Downtown Roundup Master Plan, Action B.9.

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FUNCTIONAL COMMUNITY GOAL: ESTABLISH A SAFE AND SECURE DOWNOTWN ENVIRONMENT WHILE ALLOWING MULTI-MODAL T RANSPORTATION OPTIONS AND CLEAR WAYFINDING FEATURES. ▪

Improve pedestrian sidewalk connections and safety throughout the downtown and to important community interest points. Reference: Downtown Roundup Master Plan, Action C.2.

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Coordinate with MDT to redesign the traffic and parking configurations on Main Street to be more pedestrian friendly through downtown. Reference: Downtown Roundup Master Plan, Action C.4.

MARKETING GOAL: HIGHLIGHT THE ASSETS OF THE COMMUNITY AN D DOWNTOWN THROUGH COO RDINATED MARKETING O UTREACH EFFORTS ▪

Develop a strategic marketing plan that targets Billings residents and highlights Roundup’s quality of life, affordability, culture, and potential to serve as a bedroom community to the larger city. Reference: Downtown Roundup Master Plan, Action F.1.

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Establish a unified vision through a community brand that can be used on visual elements throughout downtown. Reference: Downtown Roundup Master Plan, Action F.3.

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Create a modern community website that highlights Roundup’s assets and promote relocating to the area, specifically targeting entrepreneurs and telecommuters. Reference: Downtown Roundup Master Plan, Action F.4.

ECONOMIC DEVELOPMENT GOAL: CREATE JOBS, BUSINESSES, FINANCIA L PROSPERITY AND IMPROVE THE QUALITY OF LI FE FOR ROUNDUP RESID ENTS. ▪

Encourage the development of catalyst businesses in vital locations downtown.

Reference: Downtown Roundup Master Plan, Action D.1.

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Meet with large employers in the area to discuss the potential for establishing locations downtown or how employees could utilize downtown services.

Reference: Downtown Roundup Master Plan, Action D.3.

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Create a resource center for local business owners to access tax increment revenue, grants and business assistance through established programs and opportunities.

Pages 29 and 30 illustrate Land Solutions’ redevelopment concept provided in the Downtown Roundup Master Plan. It is not intended to subjugate the Urban Renewal Board’s actions but rather provide one of many potentials of a coordinated redevelopment plan for the revitalization of the Downtown Roundup Urban Renewal District.

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Illustration 6. Downtown Roundup Master Plan Illustration

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Illustration 7. Downtown Roundup Master Plan Illustration

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SECTION 5: MANAGEMENT STRATEGY The Downtown Roundup Urban Renewal Plan sets a direction for redevelopment and revitalization for the Urban Renewal District. Upon its adoption, this Plan will serve as the official

policy guide for public action. However, these policies can only be transformed to action through an effective implementation program. Key to implementation will be sound process of administration, financing and program evaluation.

ADMINISTRATION The implementation of the redevelopment effort outlined in this Urban Renewal Plan will be directed by the Downtown Roundup Urban Renewal District’s Urban Renewal Board, which will be created by the City Council by resolution as authorized under 7-15- 4232, MCA. The Roundup City Mayor shall appoint six members to the Urban Renewal Board and provide staff support either directly or through a management contract. The Urban Renewal Board shall be comprised of five voting members who own property in the Downtown Roundup Urban Renewal District, and one non-voting ex-officio member who is also a member of the Roundup City Council. The members shall serve in staggered terms of service, the lengths of which will be determined by the Mayor. Each year the Urban Renewal Board will prepare an annual work program and budget and will list the activities and costs of the activities for the coming fiscal year, as well as the method of financing those activities. This program and budget may be amended during the course of the fiscal year, in light of funding and program opportunities and changes. All budgets and revised budgets shall be reviewed and approved by the Roundup City Council. Urban renewal activities undertaken by the City of Roundup and the Urban Renewal Board will be in accordance with Montana State statute. (See specific provisions of 7-15-4233 MCA.)

Table 3. Powers Conferred to the Downtown Roundup Urban Renewal Board by Montana Urban Renewal Law 7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1) In the event the local governing body makes such determination, such body may authorize the urban renewal agency or department or other officers of the municipality to exercise any of the following urban renewal project powers: (a) to formulate and coordinate a workable program as specified in 7-15-4209;

(b) to prepare Urban Renewal Plans; (c) to prepare recommended modifications to an urban renewal project plan; (d) to undertake and carry out urban renewal projects as required by the local governing body; (e) to make and execute contracts as specified in 7-15-4251, 7-15-4254, 7-15-4255, and 7-15-4281, with the exception of contracts for the purchase or sale of real or personal property; (f) to disseminate blight clearance and urban renewal information;

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7-15-4233. Powers which may be exercised by urban renewal agency or authorized department. (1) In the event the local governing body makes such determination, such body may authorize the urban renewal agency or department or other officers of the municipality to exercise any of the following urban renewal project powers: (g) to exercise the powers prescribed by 7-15-4255, except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages shall be reserved to the local governing body;

(h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7-15-4257; (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area; (j) to insure real or personal property as provided in 7-15-4258; (k) to effectuate the plans provided for in 7-15-4254; (l) to prepare plans for the relocation of families displaced from an urban renewal area and to coordinate public and private agencies in such relocation; (m) to prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements; (n) to conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of urban renewal projects; (o) to negotiate for the acquisition of land; (p) to study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto; (q) to organize, coordinate, and direct the administration of the provisions of this part and part 43; (r) to perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and performance of the duties and responsibilities entrusted to the local governing body. (s) Any powers granted in this part or part 43 that are not included in subsection (1) as powers of the urban renewal agency or a department or other officers of a municipality in lieu thereof may only be exercised by the local governing body or other officers, boards, and commissions as provided under existing law.

IMPLEMENTATION Given that private development and investment is necessary to generate tax increment funds, the City of Roundup’s urban renewal efforts should leverage community-based revitalization activities in lockstep. Toward that end, the following approaches to achieving the goals and strategies set forth in this Plan may include one or more of the following.

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PUBLIC REVITALIZATION PROJECTS ▪

Annual Tax Increment Appropriations – The City may finance smaller public infrastructure improvements and renewal programs from its annual tax increment receipts by appropriation.

Funds available each year would be determined by the size of the annual increment and any prior commitments (such as bond debt service requirements and administrative costs).

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Tax Increment Bonds – The City may issue tax increment bonds in order to finance projects “up front” and then repay the debt tax increments over time.

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Conventional Financing – The City may borrow funds from commercial lending institutions in order to finance public infrastructure improvements. Annual tax increment revenues will pay principal and interest on the loan. A conventional loan agreement will not, however, extend the authorized 15-year time period for an urban renewal TIF district.

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Local, State and Federal Programs – There are a number of funding resources available to communities to undertake planning and capital improvement projects. These are listed in the funding section below.

BUSINESS DEVELOPMENT AND BUSINESS RECRUITMENT Once the District is established, local staff and/or consultant services could be used to assist in the development of business plans, market studies and general research to assist businesses in locating or expanding in the Urban Renewal District.

PRIVATE SECTOR DEVELOPMENT In addition to public sector investments, the urban renewal agency can assist property and business owners in specific renewal activities including the following: ▪

Tax Increment Financing Revolving Loans – In 7-15-4292, MCA the Montana TIF statute provides for the establishment of loan programs, whereby TIF funds may be loaned for the construction of private infrastructure in support of the goals of the Urban Renewal District. As principal and interest payments are made, the funds may be loaned again, even after the TIF District sunsets.

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Tax Increment Grants – In some cases urban renewal agencies can make grants to private entities to support projects that are in the community’s best interest and are in keeping with the purposes of the Montana Urban Renewal Law, such as historic preservation, public safety and the removal of blight. Examples include: restoration of historic building facades; stabilization of structures that have been neglected or abandoned; and installation of life safety equipment such as sprinkler systems.

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Other Assistance – The urban renewal program can assist private sector projects in a variety of ways, by providing technical assistance and helping property owners access federal, state and local resources and incentives for development.

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PARTNERSHIP DEVELOPMENT The urban renewal program will rely on cooperative efforts among the City, district property owners, and economic development organizations to achieve its goal of eliminating blight and fostering revitalization. In many cases, these cooperative partners will work jointly on market analyses, business recruitment and capital improvements planning. Also, as noted above, it will be necessary to work with other local, state and federal entities in providing additional financing and matching funds to undertake projects and programs in the Downtown Roundup Urban Renewal District. Potential partnerships can be forged using a variety of programs and funding mechanisms. A sampling of these is provided in the following section.

PROGRAM FUNDING As noted in Section 1 of this Plan, the implementation of the Downtown Roundup Urban Renewal Plan will include the use of Tax Increment Financing (TIF). More particularly, costs that may be paid using TIF dollars are included in 7-15-4288, MCA as follows:

Table 4. Costs that May be Paid by Tax Increment Financing 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the local government to pay the following costs of or incurred in connection with an urban renewal area or targeted economic development district as identified in the urban renewal plan or targeted economic development district comprehensive development plan:

(1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and offstreet parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; (5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233; (6) acquisition of infrastructure-deficient areas or portions of areas; (7) administrative costs associated with the management of the urban renewal area or targeted economic development district; (8) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the local government itself at its fair value;

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7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the local government to pay the following costs of or incurred in connection with an urban renewal area or targeted economic development district as identified in the urban renewal plan or targeted economic development district comprehensive development plan:

(9) the compilation and analysis of pertinent information required to adequately determine the needs of the urban renewal area or targeted economic development district; (10) the connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district; (11) the provision of direct assistance to secondary value-adding industries to assist in meeting their infrastructure and land needs within the area or district; and (12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution.

A tax increment program is authorized for 15 years or longer if the tax increment revenue is pledged to the payment of tax increment bonds. 7-15-4289, MCA provides for the use of tax increments for bond payments. The tax increment may be pledged to the payment of the principal of premiums, if any, and interest on bonds, which the municipality may issue for the purpose of providing funds to pay such costs.

The City of Roundup will establish a Tax Increment Financing program for the Downtown Roundup Urban Renewal District, as defined in this Downtown Roundup Urban Renewal Plan. The base year for the purposes of measuring any incremental value will be January 1, 2018.

Per 7-15-4291, MCA, the City of Roundup may enter into agreements with the other affected taxing bodies to remit to such taxing bodies any portion of the annual tax increment not currently required for the payment of the costs listed in 7-15-4288, MCA or pledged to the payment of the principal of premiums, if any, and interest on bonds.

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EVALUATION AND AMEND MENTS The Downtown Roundup Urban Renewal Plan will be evaluated on a yearly basis in conjunction with the preparation of the annual report. Measures that may be used in evaluating program success include: ▪

Increases in the property tax base

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Reduction of blighted conditions in commercial structures in the downtown core

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Reduction of blighted conditions throughout the District

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New jobs creation due to business startups and expansions and real estate development

The Plan provides flexibility to accommodate a variety of approaches. However, changes over time may necessitate more formal amendments to the Downtown Roundup Urban Renewal Plan. The

Downtown Roundup Urban Renewal Plan may be modified by ordinance under 7-15-4221 MCA.

[ END OF DOCUMENT ]

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