Bozeman Urban Renewal District Board Meeting – May 26, 2026

The Bozeman Urban Renewal District (URD) Board met on May 26, 2026, to hear presentations on Montana State University's strategic planning process and the Bozeman Creek Vision Plan, and to vote on a $372,000 infrastructure grant for the Boutique Hotel at 302 East Mendenhall. The meeting also included public comment, a discussion on the downtown post office relocation, and the cancellation of the June 16 meeting.

Consent Calendar

• The April 2026 board minutes were approved unanimously.

Public Comments & Testimony

• Mark Campanelli, Bozeman resident (Bogart Park), expressed skepticism about the public benefit of adding another luxury hotel downtown, noting the tax increment from the Spotique Hotel is expected to repay within less than one year ($464,000/year). He questioned whether the TIF funds would be used for a downtown parking garage and raised concerns about gentrification, price inflation, and displacement of venues like Cactus Records. He argued that the blight along Bozeman Creek might not be remedied by the hotel and urged investing TIF funds in the Bozeman Creek Vision Plan flood reduction infrastructure instead.
• Daniel Cardi, Bozeman resident (200 block of North Third), asked the board to deny the $372,000 TIF request, stating the hotel is not in a blighted area, that development would occur without the TIF, and that the request does not meet the "but for" rule. He also referenced developer Matt Payne's previous comments insulting the community for opposing the hotel and argued that development must pay its own way.
• Matt Payne (Payne Group, 515 South Black) responded that the sewer line upgrade was requested by the city for future-proofing, not for the hotel’s immediate capacity needs, and that the existing line had enough capacity. He said city public works determined the alternative route under Bozeman Creek was not budget-feasible, and the chosen route is more cost-effective and benefits nine adjacent properties. He stated, "I'm not taking any of that money home."

Discussion Items

MSU Strategic Plan – Kate (Consultant, President's Office)

• Kate, a consultant hired by MSU President Tessman, presented the strategic plan process, which will be released in November and serve as an active, ongoing document. Over 1,500 campus stakeholders (staff, faculty, students) have been engaged, and broader community listening sessions will continue through the summer.
• Housing: Board members raised the impact of MSU’s growth on Bozeman’s housing market. Ellie noted that MSU students off campus make up 20% of Bozeman's population, and student housing demand is often debt-financed, which has inflationary effects on rents. Kate confirmed that housing is a recurring theme, especially for grad students and faculty, and mentioned plans to build a new dorm where the grad houses are. A board member suggested university land could subsidize faculty housing to aid recruitment.
• Internships and Integration: Board members emphasized the importance of connecting MSU students to downtown businesses through internships and career pipelines. Tony shared that his business benefits from Jake Jabs College of Business interns. Students expressed desire for better integration with the community, with parking as their top concern.
• Downtown Presence: A board member noted that a downtown MSU store or more events (like CatWalk) could strengthen the university-town connection, drawing on experiences in other college towns.

Bozeman Creek Vision Plan – John Henderson (Asst. City Manager) & Nick Chad (Port, Consultant)

• John Henderson introduced the Bozeman Creek Vision Plan, a commission priority adopted in late 2024. The city is co-leading the effort with the C. Bozeman Creek group, which includes watershed experts, biologists, engineers, and architects.
• Scope: The study area runs from Ice Pond Road (near the Galligator) through downtown to the Northeast neighborhood, roughly to I-90. The plan aims to mitigate flood hazards, improve water quality and ecological health, increase trail and park connectivity, support economic vitality, and strengthen community connection to the creek.
• Progress: The first phase (stakeholder meetings, literature review, code analysis) is complete. A public open house is scheduled for June 2, 2026 (4-7 p.m. at Soroptimist Park) to present 12 “big ideas” for Bozeman Creek. A draft vision plan is expected in late August/early September, with city commission adoption targeted for December.
• Funding: John noted that the board may be asked for significant financial investments from the URD for future projects, aligned with FEMA grants, philanthropy, and other opportunities.

Infrastructure Grant for 302 East Mendenhall (Boutique Hotel)

• Ellie presented the first infrastructure grant request under the URD’s new program, established in late 2025. The $372,000 grant is for sewer infrastructure improvements tied to the Boutique Hotel on Mendenhall.
• Background: The existing sewer line is over 100 years old. The city requested an upsizing for future-proofing, and the chosen route (up Mendenhall, not under the creek) is more cost-effective and will benefit nine other properties. The grant is a reimbursement grant, released upon certificate of occupancy, and the developer will pay for all costs above the grant amount.
• Developer Details: Duncan Fraser (Payne Group) confirmed the line is gravity-fed (no lift station) and sized for all properties on the block. The hotel’s site plan is approved; building permit is imminent.
• Blight Remediation: Ellie stated that the grant addresses deferred sewer lines, but a district-wide blight assessment is a goal over the next 1–2 years.

Key Outcomes

• MSU Strategic Plan: The board will submit additional feedback via Ellie; the president’s office is collecting recommendations through a survey.
• Bozeman Creek Vision Plan: The board was invited to participate in the June 2 open house and to have two members serve on the summer advisory committee. Jake expressed interest.
• Infrastructure Grant Approved: The board voted to approve the $372,000 infrastructure grant for 302 East Mendenhall. Roll call vote: Nicholas – aye, Jake – aye, Sky – aye, Tony – aye (all in favor).
• June 16 Meeting Canceled: The board agreed to cancel the June 16, 2026 meeting due to Ellie’s absence; the parking vision plan presentation will move to July.
• Post Office Relocation: Ellie will draft a separate public comment on behalf of the URD board regarding the proposed relocation of the downtown post office, which has been walkable for over a century. Comments are due June 7 via mail to USPS/GSA.