Memorandum
REPORT TO:
City Commission
FROM:
David Fine, Economic Development Manager
Cola Rowley, Assistant City Manager
Chuck Winn, City Manager
SUBJECT:
Public Hearing on a Resolution Determining that Fulfillment of the South Bozeman Technology District Comprehensive Development Plan Requires Pledging Tax Increment to the Payment of Bonds that will Extend the Termination of the Tax Increment Financing Provision Beyond the 15th Year
MEETING DATE:
September 22, 2026
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Consider the Motion: I move to adopt a Resolution Determining that Fulfillment of the South Bozeman Technology District Comprehensive Development Plan Requires Pledging Tax Increment to the Payment of Bonds that will Extend the Termination of the Tax Increment Financing Provision Beyond the 15th Year
STRATEGIC PLAN:
BACKGROUND:
The City of Bozeman created the South Bozeman Technology District in 2012 to facilitate development of the Montana State University Innovation Campus (MSUIC). The District Plan contemplated expanding public infrastructure, including Technology Boulevard and South 27th Avenue (which would become Innovation Drive), as well as associated sidewalks, curbs, gutters, broadband infrastructure, and water and sewer utilities.
MSUIC selected a master developer for the campus through a competitive process. In 2022, the City entered into a development agreement with the developer. Under that agreement, the City agreed to issue bonds to reimburse the developer for eligible public infrastructure costs once new buildings on the campus generated sufficient incremental taxable value to support the debt service on tax increment financing bonds.
Issuance of the bonds will extend the life of the tax increment financing district through the anticipated 25-year term of the bonds. House Bill 19, enacted by the 2025 Montana Legislature, amended § 7-15-4289, Montana Code Annotated, to require a public hearing before the City Commission determines that fulfillment of the South Bozeman Technology District Plan requires pledging the District’s tax increment revenue to repayment of the bonds. Resolution No. 2026-## memorializes the public hearing and the City Commission’s determination.
UNRESOLVED ISSUES:
None at this time.
ALTERNATIVES:
As suggested by the City Commission.
FISCAL EFFECTS:
Holding a Public Hearing on the extension of the tax increment finance district does not have fiscal effects. Issuing tax increment revenue bonds and the extension of the life of the tax increment finance district will have fiscal effects that are discussed with the appropriate agenda item.