Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fire Station 1 Urd Funds topic
No spam. Unsubscribe anytime.
URD funds tied to Fire Station 1 will expire if not claimed at occupancy, board told
Summary
At a Downtown Bozeman URD board meeting staff said $1.6 million in URD funds for the Fire Station 1 project are tied to a project ordinance and buy–sell agreement, become available for reimbursement five years after closing (Sept. 13, 2022), and may be lost unless a reimbursement request or formal extension is made.
At a Downtown Bozeman Partnership Urban Renewal District (URD) board meeting, Executive Director Ellie said $1.6 million in URD funds for the Fire Station 1 project are tied to the URD project ordinance and the buy–sell agreement and become eligible for reimbursement five years after the project's closing on Sept. 13, 2022.
Ellie said, "These documents state that the funds are available for reimbursements reimbursement 5 years after the closing date, which occurred on 09/13/2022." She told the board those project documents link the money to the development agreement and to conditions that require funds be claimed at occupancy.
The board was given three practical implications: if a reimbursement request is not made at the time the project's certificate of occupancy is issued, the allocation effectively expires; the property owners could ask URD staff for an extension, but staff (including Greg Sullivan) expects a project to be under construction before an extension would be considered; or the owners could explore a covenant buyout, a route staff said appears unlikely because the owners originally received a discounted purchase price and would face additional financial obligations.
Board member Marley said she had examined the deed and that it contains a restriction requiring a certain amount of affordable housing on the property. Ellie confirmed the deed restriction and said that is a primary reason staff believes a covenant buyout is not a straightforward option.
Ellie told the board the practical effect for budgeting is that the URD cannot count the $1.6 million as available until the legal and timing conditions are met. The board discussed that if nothing changes, the funds would be released back to URD management after the contractual timing window expires and the deed restriction would remain attached to the property.
The discussion did not include a motion or vote. Board members asked staff to incorporate this clarification into upcoming budget forecasts so the board can plan whether to assume those funds will be available.
Ellie and staff identified three next steps for the property owners: (1) request an extension (staff said projects should be under construction before extensions are granted), (2) pursue a covenant buyout (staff said this likely has major financial implications for the owners), or (3) forfeit the current allocation and apply for separate URD funding for a new project on the site (for example demolition or public infrastructure improvements).
