Old Corvallis Road Urban Renewal Program An Overview May 4 th, 2009

Project Sponsors – The City of Hamilton – Ravalli County – The Ravalli County Economic Development Authority

Area Description The City of Hamilton is embarking on an effort to develop and revitalize the area in the vicinity of the Old Corvallis Road, roughly bounded by: – The County Fairgrounds on the south (including the Fairgrounds but not the adjacent residential area), – The Glaxo-Smith-Kline Laboratory on the north, – Portions of the East Side Highway and the drainage ditch on the east (at Blodgett View Drive), and – Portions of Old Corvallis Road and Highway 93 on the west.

Proposed Urban Renewal Area

Opportunities – Additions to the Glaxo-Smith-Kline Laboratory – Entrepreneurship Center – Proposed 800 home subdivision adjacent to the Daly Mansion – “Area 3” planning area development – Neighborhood mixed-use/commercial development

Proposed Action Design and implement a development program for the Old Corvallis Road Area that addresses: – Public improvements – Economic Development – Public-Private Partnerships Identify associated financing mechanisms including: – Tax Increment Financing – Other funding strategies

The Steps (Montana Urban Renewal Statute) Identify District Boundaries Prepare a Finding of Blight and Associated Resolution for Adoption Prepare an Urban Renewal Plan with a Tax Increment Financing Provision Provide for Public Participation Determine Accordance with the Growth Policy Provide for Public Notice and Hearing Adopt the Plan (Ordinance) Notify the DOR and other Taxing Bodies

Prepare an Urban Renewal Plan for the Covallis Road Area The Plan can include: – Transportation Related Improvements – Road Improvements (Old Corvallis Road, Fairgrounds Road (curbs, gutters and storm sewers) – Non-Motorized Facilities (bicycle and pedestrian trails) (more)

A Workable Plan (Continued) – Water Related Improvements (storage and transmission) – Sewer Related Improvements (interceptors, waste water treatment plant upgrades) – Park Development – Lighting – Communication – Internet Services

Tax Increment Financing

The Concept A state authorized, locally driven funding mechanism for community and economic development A methodology for eliminating blight and infrastructure deficiencies A strategy for stabilizing, diversifying and expanding the tax base in critical areas

What is Tax Increment Financing? TIF is authorized in the Montana Urban Renewal Law, under , MCA and enables communities to direct property taxes that accrue from new development within a designated blighted area to various development activities. A base year is established from which incremental increases in property values are measured.

The Tax Increment Calculation Base Year Value Taxable Valuation x Mill Value = Taxes Collected Directed to All taxing Bodies (Local Gov, Schools, State) Tax Increment Value Incremental Taxable Valuation x Mil Value = Incremental Taxes Collected All Directed to Tax Increment Program (except University Levy)

BASE Declining Property Values TIF Start Date Increment for Development TIF End Date Tax Value for Distribution Taxable Value Time How a Tax Increment Finance Provision (TIF) Works Base + Increment

Other Important Provisions Provisions for Returning Funds Sunset Bonding

It Takes a Big Private Investment Assume: $10,000,000 dollars of New Development Assume: Class 4 (2007) Assume: A mill levy of Increment Value = $169,204

Applications Urban Renewal Districts – Within Cities Only Industrial Districts Technology Districts Aerospace Transportation and Technology Districts

Provide Opportunities for Public Participation Development and Review of Planning Concepts – Public Meetings and Work Sessions with the City Commission and Planning Board – Focus Group Meetings – Key Person and Organizational Meetings

Overall Community Planning Considerations The Urban Renewal Plan must Conform with the Hamilton Growth Policy Reflect and Consider – Hamilton Transportation Plan – Economic Development and Housing Plans – Parks and Recreation Plans – Infrastructure Plans

First Things First The Urban Renewal Area must be entirely located within the municipal boundaries of the City of Hamilton. Portions of the proposed Old Corvallis Urban Renewal Area must be annexed to the City of Hamilton prior to creating the district and tax increment financing provision.

The Benefits of Annexation City Services Participation in the Urban Renewal Program – Infrastructure Development – Taxes directed to improvements that benefit your property through TIF Property Value Increases

The Cost of Annexation Current mill levy for those living outside of the city limits: – Hamilton Rural/no fire: – Hamilton Rural/fire: Current mill levy for properties within the city limits – An additional levy of – Total Levy: An increase of 24% or 19%

Questions and Answers