Urban Renewal Agency Board

February 21, 2024, 12 PM Anaconda Deer Lodge County URA TIF Board - DRAFT Minutes Community Service Center 3st Floor Conf. Room Attendance: Board Members Present: Jim Davison, Rose Nyman, Dawn Dee, Carl Hamming Board Members Excused: Kristy McKay Staff: Ruth Moen, Kathleen Tarkalson Public: Heather Collins, Robbie Dee, Tana Andrews, Ben Andrews, Duane Brugman, Maryanne Brugman, Betty Ann Eileraas, Errol Eileraas, Chris Bruner, Gary Bruner, Jana Roe, Magali Bartoletti, Tony Bartoletti, Jeff Galle, Angela Galle, Debbie Dauenhauer-Hess, Robby Gunderson, Howard Smith I. Call to Order and Roll Call A. Meeting was called to order at 12:00 PM. II. Approval of Minutes from January 10, 2024 Meeting A. Rose Nyman moved to table the minutes until next meeting as they need some corrections, Carl Hamming seconded and the motion passed unanimously. III. Financial Statement A. Kathleen Tarkalson reviewed current financials and available funds. B. Jim Davison mentioned that he received a different current funding number from the county this morning so Kathleen will contact them and get confirmation of exact figure. C. Rose Nyman asked whether 64 Mile Distillery was an extension rather than an award in June 2023. It was thought that it was an award but Kathleen Tarkalson said she would verify. IV. Old Business A. Rose Nyman moved to amend the agenda to place all but Item D, Conflict of Interest statement, below New Business on the agenda. Carl Hamming seconded and the motion passed unanimously. B. Conflict of Interest Statement 1. Jim Davison explained that the county developed a uniform conflict of interest statement for its authority boards. Rose Nyman moved to accept Resolution #24-05 and conflict of interest statement for ADLC. Carl Hamming seconded and the motion passed unanimously. Board members signed and turned in the forms. V. New Business A. February 2024 Application Review 1. Bartoletti a) Tony Bartoletti explained the history of the building and outlined the project to remove the siding and brick and install zip panels. b) Dawn Dee asked what the removal of the alley building was. Mr. Bartoletti explained that it is a small shed attached to the building that needs to come off in order to access the siding. c) Carl Hamming asked who Double Impact is. Mr. Bartoletti said they are a construction company that works with zip panels. d) Rose Nyman said the building needs TLC and she is glad to see the application. e) Jim Davison asked if the building was originally brick. Mr. Bartoletti said no. f) Carl Hamming asked if this is their first TIF request. Mr. Bartoletti said yes. 2. Dee Motors a) Rose Nyman abstained b) Dawn Dee abstained c) Robbie Dee explained the project which includes replacing showroom lights with energy efficient lighting. He had a letter from Northwestern Energy. d) Jim Davison asked if NWE gave him an estimate of how long it would take to recoup the cost of the lighting. Mr. Dee said no.  e) Carl Hamming pointed out that the application grant request amount looks like it was based off of an original estimate and that, since a second estimate came in at a lesser cost, the 50% award would be less than the amount requested. Mr. Dee said he understood. 3. Elks a) Maryanne Brugman explained both the electrical and facade projects to be done. The electrical is a technical assistance request as Colbert Electric will come in and evaluate/assess the entire building and what it will take to bring it up to code. The facade project includes repairing the existing awning and replacing damaged brick on the side of the building. They are seeking a Montana Historical Preservation grant to complete the electrical work. b) Duane Brugman and Errol Eileraas elaborated on both projects. c) Rose Nyman said it is wise they applied for a technical assistance grant to get an idea of the scope of the project. Ms. Nyman also asked for clarification about the budget and what they were asking for. d) Jim Davison noted that there were two different bids for the canopy. Mr. Brugman explained that the approx. $1800 bid is for sealing and repairing the canopy and the approx. $8000 bid was to tear down and replace. e) Carl Hamming noted that the Montana Historical Preservation grant is competitive and wondered what their backup plan is if they don’t receive it. Mr. Eileraas explained that they have already replaced all the fluorescent lights with LED and they will slowly work to upgrade things. f) Carl Hamming asked what the square footage of the building is. Mr. Eileraas estimated 10,500 square feet per floor. g) Rose Nyman asked what floor the bowling alley was on. Upstairs. 4. Celtic House a) Howard Smith explained both the fire ladder and parking lot projects. When work was done previously an outbuilding the fire ladder was removed and had to be replaced within two weeks. This is an emergency request since the project is already completed. The parking lot project is to pave the parking lot where the outbuilding was and connect it to the existing parking lot. b) Rose Nyman expressed concern about the look of the entire wall. Mr. Smith said that is their next project and they hope to fix it this spring. c) Carl Hamming suggested he coordinate with the County on the lighting when he does the paving project. d) Rose Nyman asked what the percentage is for emergency projects. Jim Davison said he thought other projects were done at 50%. 5. Galle a) Jeff Galle explained the two projects submitted. He wants to finish work at 524 E. Park. He said the Birch Street side was never finished. b) Rose Nyman asked if he will replace the windows on the second floor. Mr. Galle said yes. Ms Nyman also asked what will happen to the ghost sign. Mr. Galle said that he will cover the sign because there is no R-value on that side of the building unless he does. c) Carl Hamming asked how many residential units. Mr. Galle said two. d) Jim Davison asked how he arrived at the budget as there is no detail. Mr. Galle said he walked around the property with Nine Pines, who is a personal friend and they arrived at the number based on both of their expertise. He said he talked to AFCO about making an exterior ladder and put those numbers together. He can provide a more detailed breakdown if necessary. 6. Goosetown a) Robby Gunderson explained that they are completely remodeling the inside of the gym. The exterior remodel will include a new entry that will provide a safer, more accessible  entry for everyone. b) Rose Nyman thanked him for providing photos. c) Carl Hamming asked if he is planning to preserve and relocate the sign. Mr. Gunderson said his daughter is an artist and will restore it and it will be hung on the new entry. d) Jim Davison asked about timeframe. Mr. Gunderson said they plan to start mid-March and finish as soon as possible. 7. JFK a) Debbie Dauenhauer-Hess explained that she decided not to pave the parking lot across the street so is asking only for the sidewalk in front of the bar. Paving the lot won’t provide her with much additional parking so doesn’t make sense. b) Carl Hamming asked if she has any plans for the parking lot. Ms. Dauenhauer-Hess said that she is just going to use it for parking. 8. Jordiloosa a) Chris Bruner explained the design of the mural proposed for the side of the Anaconda Outdoor building. It is a contemporary piece that they hope will celebrate Goosetown and add some liveliness to the neighborhood. b) Rose Nyman mentioned that they need to receive commission approval for a mural. Mr. Bruner said the process has been started. Ms. Nyman also asked if they had any interest in saving the ghost sign. Mr. Bruner said their artist mentioned that she is open to ideas if necessary. Ms. Nyman clarified that the Historic Resource Board is an advisory board. c) Jim Davison asked how big it is. Mr. Bruner said approximately 24’x40’. Mr. Davison also asked if the artist had consulted with the historic preservation office to find a technique that preserves brick so there is no future damage to the wall underneath. Mr. Bruner said he would research that. 9. Paumie’s a) Ben Andrews explained the need for a fire suppression system. He said that the existing system is outdated and they got blindsided by this expense as they had an inspection when they bought the building and were told it just needed to be serviced. They can’t operate without a new system above the fryer. b) Rose Nyman asked if they have identified other grants to help pay for the project. Mr. Andrews said his wife looked into USDA grants but it is a difficult process. They are still working on finding additional funding and are open to any ideas. c) Jim Davison mentioned USDA Rural Development grants. Kathleen Tarkalson mentioned that the deadline is too close but that she would reach out to the Andrews to discuss other possibilities that might be available. d) Carl Hamming asked if they have a hard and fast deadline from the fire department to get this done. Ms. Andrews said they have been very helpful and are giving them time as long as they are working toward a solution but that it has to be done fairly soon. e) There were public questions and comments surrounding how people can avoid buying something with hidden issues like this. f) Rose Nyman mentioned that at one time when you got your business license the fire department had to come and inspect. 10. There was a break from 1:05 - 1:15pm 11. Stacked Properties a) Heather Collins explained that they need to do a complete plumbing redo in the Peterson Building. It is leaking in some places on the first floor but that the entire building needs to be done. There are 4 residential units upstairs and 2 commercial units downstairs. b) Dawn Dee asked if she could do the work in increments. Mr. Collins said her plan is to do it in stages but she got the estimate for the entire project. She asked if she can apply for TIF grants annually. c) Carl Hamming asked what her priorities are. Ms. Collins said to fix the leaks and redo the  main floor. She would work on each residential unit as tenants moved out. d) Jim Davison mentioned that TIF grants cover only basic plumbing but stop short of upgrades. With the way the budget was submitted it is difficult to work out which pieces could be covered. Ms. Collins said she could work with her plumber to break things down. B. Copper Holdings Extension Request 1. Two letters were submitted by Copper Holdings explaining that work on both projects is done but they haven’t received invoices from the contractors yet. That is the only piece missing. 2. Rose Nyman confirmed that the addresses in question are 300 and 310 E. Commercial. Ms. Nyman moved to grant a 6 month extension for both addresses. Dawn Dee seconded the motion and it passed unanimously. C. Elks Letter of Support 1. Rose Nyman explained that she received a call in late January from the Elks that they were applying for a Montana Historic Preservation grant for the electrical work on the building. Since they were too late to apply for this round of TIF funding they asked for a letter of support from the board that they can submit with their application. A draft of the letter was provided to the board. 2. Carl Hamming remembered a similar request that the county had and they provided an informational letter. 3. Jim Davison commented that historic preservation grants are competitive. 4. Rose Nyman commented that for their limited funds, they keep the building in nice condition. 5. Carl Hamming moved to sign the draft letter with the deletion of one sentence that discussed the worthiness of the project. Dawn Dee seconded the motion and it passed unanimously. D. Scoring/Voting 1. Rose Nyman stated a need for an emergency fund policy. 2. Carl Hamming remembers a discussion around offering less than 50% to encourage people to not let things become an emergency. 3. Dawn Dee moved to adopt a policy of 35% for emergency requests. Carl Hamming seconded the motion and it passed unanimously. 4. Dawn Dee amended the motion to be 35% for the first emergency request, 20% for a second emergency request, and 5% for a third emergency request. Rose Nyman seconded the motion and it passed unanimously. 5. Dawn Dee moved that both Galle applications are incomplete. Carl Hamming seconded the motion and it passed unanimously. A letter will be sent letting them know that they can re- apply in the future with a detailed/itemized budget for one project so the board knows what portions it can fund. 6. There was discussion about the Jordiloosa mural. Rose Nyman thinks the design is too contemporary for that block. Dawn Dee asked what the boundary is for Goosetown. Jim Davison likes the design but it is different for that area. Carl Hamming suggested that the decision of whether it is appropriate for the community is up to the commission. 7. Carl Hamming moved that the Stacked Properties application is incomplete. Dawn Dee seconded the motion and it approved unanimously with Rose Nyman abstaining. A letter will be sent stating that they can re-apply in the future with a detailed/itemized bid so the board knows what portions it can fund. 8. Rose Carl Jim Dawn $ Amount Bartoletti 24 23 26 30 $20,000 Celtic Ladder 15 17 12 25 $1,146 Celtic Paving 21 19 14 36 $1,835 Dee Motors Abstain 14 14 Abstain $6,609 Elks Tech Assist 29 19 19 27 $2,000 Elks Facade 28 17 22 29 $1,914.88  Goosetown 23 15 17 29 $16,881 JFK 26 15 18 31 $2,577.30 Jordiloosa 12 13 14 31 $10,725 Paumies 21 15 14 26 $39,266.50 9. Carl Hamming moves to fund Bartoletti for $20,000; Celtic House Ladder for $1,146; Celtic House Paving for $1,835; Dee Motors for $6,609; Elks TA for $2,000; Elks Facade for $1,914.88; Goosetown Facade for $16,881; JFK Sidewalk for $2,577.30; Jordiloosa Facade for $10,725 and Paumies Fire Suppression for $39,266.50. With Dawn Dee abstaining from Dee Motors and Rose Nyman abstaining from Dee Motors and Stacked Properties, Rose Nyman seconded the motion and it passed unanimously. VI. Old Business, Continued A. Election of Officers 1. Carl Hamming moved to nominate Jim Davison for Chair. Dawn Dee seconded the motion and it passed unanimously. 2. Rose Nyman moved to nominate Carl Hamming for Vice Chair. Dawn Dee seconded the motion and it passed unanimously. B. Grant Application Review 1. Gayla Hess sent a message before the meeting to suggest removing the question about whether the building is listed in the Montana Historical Landmarks as there is no such designation. Kathleen Tarkalson asked whether all questions related to historical status should be removed as all applications are sent to the County Historic Preservation Office upon submission. It was agreed that the remaining three questions would stay in the application but change State Historic Preservation Office to County Historic Preservation Office and that the requirement to submit a written response with the application would be removed. 2. Rose Nyman requested that the Technical Assistance category be titled Design/Technical Assistance. She also pointed out that Fire Suppression was never added as a category so needs to be added. 3. Jim Davison suggested adding Mixed Use 2nd Story Residential as a category based on discussions during the January meeting. 4. Rose Nyman requested that a construction timeline chart be added to the application. Applicants have one year from award to complete the project and a year seems like a long time but it goes quickly. A timeline will give an idea of how the plan will proceed. 5. Jim Davison recommended removing the suggested additional attachments section and making the two items in that category required instead. 6. Kathleen Tarkalson will make the above changes and send to board for approval at next board meeting. C. Grant Agreement Review 1. Carl Hamming reminded the board that at the last meeting there was discussion around how, as an authority board, they could go back to applicants who received funding but didn’t do the project as described. He spoke with the County Attorney and he doesn’t want to do liens. The County Attorney will review the language in the contract if the board would like to update it. 2. Rose Nyman agreed that stronger language is needed. She agreed to talk to the County Attorney and ask him to write a clause to be included in the agreement. D. Properties With Declining Taxes 1. Rose Nyman reported that the property at 117 E. Park, Locker Room, has received $28,632; BW Blacksmith has received $23,378.28 and 124 E. Commercial has received $27,799.50 in TIF funds. The taxes on these properties have declined and the properties haven’t been developed. These funds could have gone to other projects. 2. Jim Davison mentioned that the JC Penney building probably has a zero functionality since there are no tenants and that is why the taxes are so low. 3. Rose Nyman mentioned that the grant agreement has a section that discusses removal of  elements and repayment of grant monies. It hasn’t ever been used. 4. Jim Davison shared that Butte changed their policy and they now don’t pay out until the entire project is complete. Rose Nyman reiterated that this is why the timeline is important. She asked if it would be better to pay out when a project is leased rather than when complete. 5. This discussion will be continued at a future meeting. E. Snow Removal 1. Kathleen Tarkalson asked about the snow removal funds in the budget and whether they rolled year-to-year. Yes, they stay in for whenever they might be needed. F. Ordinance #236 1. Jim Davison didn’t have an update on this. No action is necessary. VII. Public Comment – This is the time for members of the public to comment on items NOT appearing on this Agenda that are within the Board’s jurisdiction. VIII. Next Meeting A. The next meeting to review grant applications will take place on September 18, 2024 at noon. Meeting Adjourned at 3:21