Bozeman Urban Renewal Board Meeting: TIF Request & Budget Proposals - February 19, 2026

The Bozeman Urban Renewal Board met on February 19, 2026, to discuss a tax increment financing (TIF) request from Light Conversion USA (formerly Altos Photonics) and proposed budgets for the Midtown and Northeast Urban Renewal Districts. The meeting included public comments on conflicts of interest, project specifics, and neighborhood priorities.

Public Comments & Testimony

• Amy Hoytzma (President, Northeast Neighborhood Association): Raised concerns about potential conflicts of interest on the board due to the presence of realtors and developers, noting that in the past, developers who received TIF money had sat on the Northeast Urban Renewal Board. She referenced municipal ethics laws and the importance of avoiding even the appearance of a conflict.
• Amy Hoytzma (later in the meeting): Commented on the Northeast district budget, suggesting that proposed right-of-way enhancements on North Church Street might not align with neighborhood priorities. She recommended focusing on improving the stretch of Bozeman Creek between Tamarack and the alley south of Juniper, especially given Light Conversion USA's plans to extend the alley. She also expressed personal concern about the quiet zone project benefiting Bozeman Yards, which she described as "uber luxury" units, noting that Bozeman Yards received a $3.66 million TIF award and would further benefit from quiet zone funding.

Discussion Items

• TIF Request – Light Conversion USA (Item I3): Staff presented a $543,000 TIF assistance application from Light Conversion USA, a photonics company rebranded from Altos Photonics, for public infrastructure improvements at a corner lot on Tamarack and Rouse. Eligible costs included demolition ($200,000 budgeted, but reimbursement likely based on actuals), curb/gutter/alley improvements, water and sewer service lines, impact fees, and cash-in-lieu of water rights. The parking lot was deemed ineligible as a private improvement. Board members discussed the potential for the company to sell the improved property and whether job creation guarantees should be required. Staff noted that this is the first time a company building its own structure has sought TIF assistance; prior projects involved developer-owned buildings. The board voted unanimously to direct staff to conduct due diligence, including a third-party financial performance analysis, and return with a staff report.
• Midtown Urban Renewal District Budget (FY27 Proposed Projects): Staff presented a list of recommended projects for FY27, including:
  • Fifth Avenue Trail Lighting Construction (pedestrian-scale lighting)
  • Whittier parking lot construction (bid came in at ~$160,000 vs. $300,000 estimate)
  • Aspen and Seventh intersection improvements (bulb-outs, flashing beacons)
  • Mendenhall sewers (7th to 5th) design
  • Professional services line item ($100,000)
  • Fifth & Mendenhall lighting development agreement (already approved by city commission)
  • Midtown asset development agreement payment
  • Public parking structure exploration (10% design placeholder) Staff clarified the budget is not final and can be modified at the next meeting, which would be the latest for adding new items.
• Northeast Urban Renewal District Budget: Proposed FY27 projects included:
  • Right-of-way enhancements at Church, Cottonwood, and Aspen (conceptual design and renderings)
  • Removal of Wallace Avenue traffic calming (at neighborhood request, at no cost to the district)
  • Tree design and planting study (to address infrastructure conflicts)
  • FY28 items already approved include the Wallace Works pay-go agreement and Bozeman Yards bond issuance (the latter's low bid came in at $1.7 million vs. $2.6 million estimate). The quiet zone project, in development since 2020, is progressing with construction targeted for summer 2027.

Key Outcomes

• Motion to advance Light Conversion USA TIF request: Unanimously approved. Staff will perform due diligence and return with a staff report for a future decision.
• Midtown budget: No formal vote taken; staff recommended the board consider adoption at the next meeting. Board members were encouraged to submit additional project ideas.
• Northeast budget: No formal vote; staff agreed to revisit the proposed right-of-way enhancements to ensure alignment with neighborhood input, particularly regarding the creek area. Discussion acknowledged the quiet zone project's broad benefits despite some neighborhood concerns.