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HomeMy WebLinkAbout04-05-16 NURB Minutes NURB Meeting – April 5, 2016 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, April 5, 2016 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, April 5, 2016, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Tom Noble, Chair Daniel Doehring Erik Nelson Robert Pavlic Jeanne Wesley-Wiese (arrived at 6:35 p.m.) Non-Voting Members: John Usher Commissioner Liaison: I-Ho Pomeroy Staff: Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary Guests: Shane Strong, KLJ Engineering John How, KLJ Engineering (arrived at 7:30 p.m.) Chris Nixon, 719 North Wallace Avenue Call to Order – Chair Tom Noble called the meeting to order at 6:30 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – No comment was received under this agenda item. Minutes – March 1, 2016. It was moved by Erik Nelson, seconded by Bob Pavlic, that the minutes of the meeting of March 1, 2016, be approved as submitted. The motion carried on 4-0 vote. Discussion/Action Items – Presentation and discussion regarding Ken VanDeWalle’s request for vacation of Pear Street right-of-way through the Empire lot. Chair Noble stated that, after seeing a NURB Meeting – April 5, 2016 2 public notice about the public hearing on this street vacation request, he asked that the Commission delay action until after this Board had an opportunity to review it. He provided a brief history about this street right-of-way, noting that the NorthEast Neighborhood Association has opposed prior requests for its vacation; and years ago, Pear Street was identified as an essential link in the northeast bypass. He indicated that he has reviewed the information pertaining to this request, and many of his concerns have been alleviated. He feels, however, that in light of the number of right-of-way abandonments that have previously occurred in this area, it is important for the Board to review this one. Ken VanDeWalle stated he purchased this property over a year and, during the title search, it was revealed the deed has read the same since Malcolm Story sold it years ago. He is the fourth owner of this property since that initial sale, and all four deeds reference the lots as well as the Pear Street right-of-way; however, that right-of-way has not been vacated. He reviewed the request for vacation of the street right-of-way, noting that the location of utility lines through the center of the street right-of-way has been identified; and the required 15-foot-wide right-of- way on each side of those lines has been provided. He stated that the resolution to vacate the remaining portion of the street right-of-way will remove the cloud from the deed. He then stated a small triangle on the southeast side of the right-of-way is a part of his property but is also the trail. He fully supports the trail system through the community and, as a result, has no problem keeping it open; however, he is concerned that a future property owner may not share that feeling. As a result, he has proposed a land exchange that would transfer ownership of the triangular portion to the City in exchange for a similar sized piece of the Pear Street right-of-way parcel adjacent to his property. Ken VanDeWalle stated he leases the railroad right-of-way adjacent to his property and has taken steps to clean up the site, including the removal of 12,000 pounds of garbage and old homeless camps. It is his desire to have an attractive parcel with nice fences that complements the adjacent trail system. In response to questions about ownership of adjacent lots, it was noted that Ken VanDeWalle owns Lot 27, and the City owns Lots 28 and 29; and Lot 28 contains the water pump house. Economic Development Director Brit Fontenot read a portion of the staff report, which revealed that the requested street right-of-way vacation will not have any impact on the trail or access to the pump station. Erik Nelson noted that, absent a specific resolution, when street right-of-way is vacated, it is equally divided between the adjacent property owners. Ken VanDeWalle stated Montana Rail Link has not posed any objections, and the Montana Department of Transportation has indicated it has no problem with the street vacation. He then stressed that this requested street vacation will not impact any utilities. Erik Nelson noted it is his assumption that someone has checked the Bozeman Area Transportation Plan Update to make sure that vacation of this street does not impact the proposed bypass around the northeast side of the city. It was moved by Erik Nelson, seconded by Jeanne Wesley-Wiese, that this Board recommend the Commission proceed with the requested Pear Street right-of-way vacation under the advisement of the City Engineering Department. The motion carried on a 5-0 vote. NURB Meeting – April 5, 2016 3 Update on whether feasibility study for quiet zone can be bonded. Economic Development Director Brit Fontenot stated he has no information on this item and requested that it be placed on next month’s agenda. Update on financial analysis for issuance of tax increment financing bonds. Economic Development Director Brit Fontenot stated he has no information on this item and requested that it be placed on next month’s agenda. Update on award of contract for North Wallace Avenue project. Shane Strong, KLJ Engineering, stated three bids were opened on March 29. The engineer’s estimate was $3,068,748.80; and the low bid was $2,278,915.75. Based on this low bid, it appears the special assessment on those properties lying within this tax increment financing district will be $91,000 instead of the $149,000 originally estimated. Responding to Chair Noble, Shane Strong stated the costs of the SID could increase if additions are made to the contract. Update on costs of pedestrian crossing at railroad tracks. Chair Noble noted that the railroad gives away a lot of money for parks and trails in other cities, citing Butte as an example. He suggested that GVLT could possibly apply for a grant from the railroad to help cover the costs of this pedestrian crossing. Responding to Director Fontenot, Shane Strong stated the street improvements will begin south of East Peach Street, with the second phase being north of East Peach Street. He estimated that the northern portion of the street improvements will not occur until three to four months after issuance of the Notice to Proceed. Jeanne Wesley-Wiese voiced support for this Board funding the railroad crossing if necessary, but she feels the grant option should be explored in the meantime to see if some funding can be obtained from that source. Economic Development Director reminded the Board that the Gallatin Valley Land Trust and the City’s Park Department have both committed $7,500 toward this project, which reduces the Board’s contribution to $35,000. Chair Noble suggested that the Board commit to funding the entire cost of the railroad crossing, and then be reimbursed by any contributions made to the project. Update on process for adoption of non-standard street designs. Economic Development Director Brit Fontenot noted that the MidTown Urban Renewal Board is also talking about adopting non-standard street designs within that district. He noted the idea is now to bundle all of the street designs to present to the Director of Public Service or to the Commission for approval, depending on the approval process adopted. Responding to Erik Nelson, Economic Development Director Fontenot stated Sanderson Stewart is currently working on the non-standard street designs in the MidTown Urban Renewal NURB Meeting – April 5, 2016 4 District. He then indicated he will check on that process to determine if bundling all of the non- standard street designs will result in a delay for this district’s streets. Work plan and budget for Fiscal Year 2016-17. Recording Secretary Sullivan distributed copies of the revenues and expenditures through March 28, the spreadsheet showing the revenues and expenditures from FY2008 through March 28, 2016, the revised draft work plan and budget for Fiscal Year 2016-17, and the spreadsheet of projects in the work plan and budget with identified funding sources. She noted the revisions are based on the Board’s discussions at last month’s meeting, and briefly highlighted those changes. Recording Secretary Sullivan noted that the expenses to date have been revised to reflect the KLJ Engineering billings to each project, rather than having all the expenses lumped under a single line under administration. She stated the red print in the revised work plan reflects the changes that Lanette Windemaker has made to ensure this work plan and budget meet the requirements for issuing bonds. She noted that the budget includes $1.5 million in bond revenues; however, that figure may need to be adjusted based on the financial analysis and the amount of bonds that can actually be issued during the upcoming fiscal year. She noted the budget includes a small undesignated reserve, which could be used to fund shortfalls that may occur in the projects listed. The Board reviewed the revised work plan and budget, suggesting revisions based on the lower costs for the North Wallace Avenue reconstruction project. As a result of that discussion, Recording Secretary Sullivan stated she will bring back a revised work plan and budget for consideration at next month’s meeting that includes the following revisions: decrease the amount budgeted for North Wallace Avenue from $150,000 to $100,000; change the project listing to state “quiet zone feasibility study”; change the budgeting for bond repayment to use only TIF funds for that $55,000; and add $17,000 to the undesignated reserve. Shane Strong stated that a surveyor from their firm will be in Bozeman in a week, and he will have that individual check the location for the pedestrian bridge to determine if there is adequate room to install a bridge that spans the floodplain as reflected on the new maps. Responding to Director Fontenot, Shane Strong stated KLJ should have the updated costs for each of the infrastructure projects within six months. Shane Strong drew attention to the East Peach Street project. He noted that the preliminary design was for edge replacement. The City staff has determined that the water line needs to be replaced in that roadway. Also, they do not want the street to be partially reconstructed and have approved the edge replacement but requested that an overlay of the entire street be added, which will result in increased costs. John How stated this issue arose late last week; and he is talking to the City’s Engineering Department about coordinating the water line replacement and street reconstruction project. Responding to Bob Pavlic, John How confirmed that the City will absorb the costs of storm drainage on East Tamarack Street. NURB Meeting – April 5, 2016 5 Economic Development Director Fontenot stated a different strategy may be used for getting bonds sold. He will follow up on that process, and will bring the details of that process back to the Board. Chair Noble stated he will attend the Commission meeting at which this budget is presented. Set agenda for May 3, 2016 meeting or cancel meeting. Chair Noble stated next month’s agenda will include the update on whether the feasibility study for the quiet zone can be bonded, the update on the financial analysis for issuance of tax increment financing bonds, and the work plan and budget for Fiscal Year 2016-17. Economic Development Director Fontenot indicated that a staff report about the non-standard street design approval process may be ready for next month’s meeting. Erik Nelson asked for an opportunity to present his new project in this district to the Board. FYI/Discussion (formerly Neighborhood News). Erik Nelson gave a brief overview of the project he is working on, noting that he is architect, land planner, developer and part owner of a project on the Edgerley property that includes a mix of commercial uses and residential development. Twenty percent of the residential units are to be at 80 percent AMI for the affordable units; and the remaining units are to be at attainable rates. Responding to Jeanne Wesley-Wiese, Erik Nelson stated he has discussed this proposed development with the owners of the property across the street. Jeanne Wesley-Wiese noted that Rowdy’s (Mike Kvasnick’s) property was sold a couple months ago. Economic Development Director Fontenot stated there is a project in the area, not located within this TIF district. The application submitted by True Dragon Brewing is for property located near the intersection of Plum Avenue/Avocado Street/East Peach Street. Jeanne Wesley-Wiese stated the new owners of the Guardian property are interested in the location of the island in North Wallace Avenue. Chair Noble stated the gym on North Rouse Avenue is to become a restaurant with bar and bakery. Adjournment – 8:00 p.m. There being no further business to come before the Board at this time, Chair Noble adjourned the meeting. Tom Noble, Chair Northeast Urban Renewal Board City of Bozeman