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HomeMy WebLinkAbout05-03-16 NURB Minutes NURB Meeting – May 3, 2016 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, May 3, 2016 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, May 3, 2016, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Tom Noble, Chair Jeanne Wesley-Wiese Daniel Doehring Erik Nelson Robert Pavlic Non-Voting Members: John Usher Commissioner Liaison: I-Ho Pomeroy (arrived at 7:00 p.m.) Staff: Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary Guests: John How, KLJ Engineering Chris Nixon, 719 North Wallace Avenue Bonnie Snavely, Missoula Maurice Quanbeck, 520 North 11th Avenue Call to Order – Chair Tom Noble called the meeting to order at 6:33 p.m. Changes to the Agenda – No changes were made to the agenda. Public Comment – Chris Nixon stated Jeanne Wesley-Wiese is unable to attend the NorthEast Neighborhood Association meeting on Thursday night and has given him a written report to read on behalf of this Board if no one else is able to attend. Chair Noble stated he can attend the meeting; Bob Pavlic indicated he will also try to attend. Minutes – April 5, 2016. It was moved by Erik Nelson, seconded by Bob Pavlic, that the minutes of the meeting of April 5, 2016, be approved as submitted. The motion carried on a 4-0 vote. NURB Meeting – May 3, 2016 2 Discussion/Action Items – Update on whether feasibility study for quiet zone can be bonded. Brit Fontenot stated bond monies cannot be used for a feasibility study because it may be determined a project is not feasible. He noted that other monies can be used for the feasibility study and, if it is determined a project is feasible, bond monies can then be used to complete the project. Erik Nelson suggested that the installation of a quiet zone could be included in the list of projects to be funded through bond proceeds and, if monies are available, they could be used for that purpose. He expressed concern that if the feasibility study shows a quiet zone is feasible and if it is not included in the bond list, an opportunity could be lost. Economic Development Director Brit Fontenot noted that a physical barrier is a necessary part of a quiet zone. He stated there are examples of quiet zones in Montana, one of which is in Billings. John How stated that Helena has conducted a feasibility study for a quiet zone, at a cost of $28,000, and has two crossings that will cost $300,000 to implement. Economic Development Director Fontenot raised the question of how the rest of the community participates in this effort. He noted that the first step would be to include it in the capital improvement program; and at the present time, no staff member is even thinking about it. Responding to Chair Noble, Erik Nelson stated a feasibility study will identify the pros and cons of a project as well as estimated costs. He noted that the issue before the Board is whether it wants to champion the cause. Erik Nelson stated he feels the $25,000 for the feasibility study currently in the draft budget is appropriate. Economic Development Director Fontenot stated the budget presentation will be the first opportunity for this Board to raise the issue of a quiet zone to the Commissioners and staff. He suggested that this project needs to be clearly defined in the work plan and budget to make them aware of the benefits to not only this district but the entire community. John How stated he will contact Brad Koon in Helena about the feasibility study. Update on financial analysis for issuance of tax increment financing bonds. Economic Development Director Fontenot stated that Administrative Services Director Rosenberry has been busy working on the City budget for the upcoming year; so he was unable to meet with her prior to this meeting. He and Lanette Windemaker are scheduled to meet with her on May 11 regarding this financial analysis. Responding to Erik Nelson, the Director stated that the presentation of this budget to the Commission will be on June 13, so this Board will have one more meeting prior to that presentation. He indicated that once he receives the financial analysis he can forward it to the Board members so they can review it prior to the June meeting. NURB Meeting – May 3, 2016 3 Update on North Wallace Avenue reconstruction. John How stated Knife River signed the contract ten days ago; however, the Certificate of Insurance they submitted needs revision. Once that revised certificate is received, the City Engineering Department will sign the contract. Hopefully, a preconstruction meeting will be held sometime next week, the schedule details will be worked out, and construction will begin. He noted that the project is now two weeks behind schedule, and he hopes to see construction begin by the end of May. The project is to be completed 180 days from the date of the Notice to Proceed; and it appears the project will be complete in late October. He then noted that his firm is working with Kenyon-Noble on easement language for the stormwater outfall. John How stated the project is to start on the north end, working southward. Portions of the street will be closed for periods as the work progresses; and a rerouting plan will be implemented to allow for access to businesses as the construction impacts the street adjacent to them. Update on pedestrian railroad crossing, including financial commitments, MRL agreement and sidewalk snow removal, and timing. Economic Development Director Fontenot noted the crossing is located outside the TIF district; however, it is an important crossing with the Front Street trail improvements being undertaken. He reminded the Board of the success in obtaining $15,000 in funding commitments from the Gallatin Valley Land Trust and the City’s Parks and Recreation Department for this crossing. He stated the City Attorney’s office has approved the agreement with MRL for the required work in the right-of-way; and that work can now be done in conjunction with mobilization for the North Wallace Avenue improvements. The Economic Development Director stated one issue yet to be resolved is who shovels the sidewalk, since MRL requires the new sidewalk be maintained at all times. His proposal is that the Parks Department be asked to maintain the 133 lineal feet of sidewalk because it is an important link in the trail system. He will meet with the Parks and Recreation Superintendent on Friday to talk about how this might be folded into the parks contract for maintenance. John How stated that once the issue of sidewalk maintenance has been addressed, this agreement will be placed on the Commission’s agenda, and the work will then become Change Order No. 1 for the North Wallace Avenue improvement project. Staff report on non-standard street design approval process. Economic Development Director Brit Fontenot stated he has no update at this time, but hopes to have the issue resolved by next month’s meeting. John How stated that staff from KLJ and the City’s Engineering Department met yesterday regarding the conceptual design for East Peach Street. The Engineering Department has expressed concern about the base under the street and, if it is poor, they recommend that the street be completely reconstructed rather than just the edges as originally designed. Erik Nelson noted that railroad tracks were located in what is now East Peach Street, and it was paved with millings. NURB Meeting – May 3, 2016 4 Responding to questions from Erik Nelson, John How stated that engineering costs for this project can be funded through the bond issue only if a reimbursement resolution is adopted within sixty days of the costs being incurred. He then stated that determining the stability of the base at this time is important because this is one of the Board’s top priority projects. He cautioned that if it determined the base is not stable, this project will not be ready for construction next summer and, as a result, may fall down the priority list. He then stated if the street improvements need to be redesigned, there will be additional engineering costs. Also, he noted that City Engineering staff wants to get the water line replacement project and the sewer slip-lining project completed prior to reconstruction of the street. Responding to Dan Doehring, John How stated he believes the base for East Tamarack Street is in better shape than the base for East Peach Street. Responding to Erik Nelson, John How indicated it may be possible to reduce the costs of the street improvements by the cost savings for patching that result from doing the water and sewer projects first. John How stated that KLJ will pull bores as soon as possible to determine the next steps in the East Peach Street project. Work plan and budget for Fiscal Year 2016-17. Recording Secretary Sullivan distributed a spreadsheet showing the revenues and expenses to date for this fiscal year and a spreadsheet showing the revenues and expenditures from FY208 to date. She then noted that copies of the draft work plan and budget were distributed to Board members via e-mail. She highlighted the changes that were made as a result of the discussions at last month’s meeting. John How stated a couple grants for arts are available and asked if the Board is interested in pursuing a grant to assist with the costs of a sculpture program for the traffic circle and median on North Wallace Avenue. He noted the highest grant available is $5,000 but $2,500 for artwork might help implement the sculpture program. Erik Nelson voiced support for that idea because it reflects the nature of the district, and suggested that the Board designate $5,000 from the undesignated reserve for a broad art initiative. He noted that the monies could then be used for a sculpture or possibly in another format on a pedestrian bridge. Economic Development Director Fontenot suggested another option would be an art crossing program at street intersections. He noted it may be possible to identify and develop specific areas where sculptures or other artwork could be displayed, thus providing for an art show within the district. The Board agreed and asked that the work plan and budget be revised to include $5,000 to facilitate the placement of artwork within the district. Responding to Dan Doehring, John How stated the pedestrian bridge can be designed to stay out of the floodplain; and he will have Shane Strong check to see if there is adequate space on the site to accommodate that design. NURB Meeting – May 3, 2016 5 It was moved by Erik Nelson, seconded by Tom Noble, that the Board approve the work plan and budget for Fiscal Year 2016-17 as modified to include $5,000 for a public arts program, with final review of the language at next meeting. The motion carried. Brief overview of project on Edgerley property. Erik Nelson stepped out as a member of the Board and became member of the public for the purpose of presenting a conceptual plan on the Edgerly property. Erik Nelson stated that Think Tank and partners are under contract for the Edgerley property, located on East Cottonwood Street between North Ida Avenue and North Wallace Avenue. He stated that two very rudimentary concepts are being considered at this time. The first is a project that is 25 percent commercial and 75 percent residential. The commercial space on the ground level would accommodate office, retail or any type of use allowed in the HMU zone; and residential units would be located on the second through fourth floors. A portion of the residential units are to be affordable while the rest would be attainable to someone working in the downtown area. He estimated that the affordable units would rent for $600 a month for a one bedroom unit. Under this proposal, there would be approximately 30 residential units, and the applicants are pursuing the planned unit development process for this development and will seek relaxation of the parking standards for the mixed use and affordable units. Erik Nelson stated the second concept is for a 50/50 mix of commercial and residential. This option would result in approximately 16,000 square feet of commercial or office space and approximately 20 residential units. Twenty percent of the residential units would be affordable while the remainder would be attainable. Erik Nelson noted that the net effect of the traffic and parking impacts would be essentially the same under both scenarios. He noted that the mixed use development would allow for an overlap of living and work spaces; and the site would include angled parking along East Cottonwood Street, deeper setbacks and a boulevard plaza space in front of the building. The height of the building would be similar to The Lofts building. The partners are exploring a green roof that would provide an outdoor space for residents and provide for sustainability. Responding to John How, Erik Nelson estimated it will be eighteen months before construction begins on the project. John How suggested that it might be beneficial for the partners to identify code modifications that would help spur redevelopment in this area, noting that those modifications could possibly be implemented before this project moves forward, particularly since the HMU district mimics the B-3 zone in many ways. Erik Nelson noted that under HMU zoning, only 50 percent of the gross square footage of a building may be residential, so a 25/75 split will trigger the need to pursue the PUD process. He then asked if this Board sees a benefit to including more commercial or more residential in this application. Bob Pavlic voiced his preference for commercial uses that operate from 8 a.m. to 5 p.m., noting that evening use is frowned upon by residents in the area. NURB Meeting – May 3, 2016 6 Chair Noble noted the area is quiet on weekends and nights, and he would like to see development that maintains the current character. Erik Nelson noted he is seeing a lot of demand for areas like Lone Mountain Gymnastics, with Class A office spaces and high wage employment. He stated that this proposed building could provide over 3,000 square feet for a business, and there will be no format for breaking up the space until they have signed commitments for the space. Erik Nelson stated that construction materials are to include cross laminated timbers, which are structurally like precast concrete. He noted that the shell of the building can be completed in four weeks by using laser cut panels. The ground floor is to be relatively tall and flexible, with 9- foot-tall walls on the second floor. Exposed wood is also to be an element in the construction of this building. Economic Development Director Fontenot voiced his appreciation for the mixing of original Bozeman and new technology in this project. He then asked if any renewable elements like solar panels or other leading edge technology is to be included. Erik Nelson responded his intent is to prevent the use of energy first through increasing insulation and using triple pane windows. He indicated that pursuing leading edge technology will then be considered after those steps have been taken. Erik Nelson stated the site layout is crude at this time because the percentage mix of uses has not yet been identified. He noted that the partnership has a very short time to perform due diligence and decide whether to proceed with purchasing the property. He stated that if it is determined the project is not feasible, they will not continue with the purchase. Chris Nixon noted that a minimum of two acres is required to pursue a planned unit development, and this site is less than two acres. Erik Nelson stated they are determining if it is feasible to collaborate with other property owners in the area to create a larger project. Responding to Bob Pavlic, Erik Nelson stated the stormwater would be retained underground. He then noted that that they are proposing to separate the wastewater in the building, treating the water from sinks and showers in passive ways that make it suitable for irrigation. Responding to questions from Bob Pavlic, Erik Nelson estimated the groundwater level at 8 feet, noting that would allow a basement if they so choose. He stated that if a basement is not included, the structure will be constructed with footings and a precast deck on the ground. Responding to Erik Nelson, Dan Doehring and John Usher voiced preference for a 50/50 split between commercial and residential development. They noted this would result in a lower key development with lower traffic impacts in an already busy neighborhood and allow for continuation of quiet evenings and weekends. Responding to Chair Noble, Erik Nelson stated he anticipates there will be a high demand for the residential units since they are to be affordable or attainable. He then noted the type of commercial development to locate in the building will probably relate to the residential development around it. NURB Meeting – May 3, 2016 7 Erik Nelson thanked everyone for their comments and returned to the Board. Set agenda for June 7, 2016 meeting or cancel meeting. Chair Noble asked that every meeting agenda include an update from KLJ Engineering on its current projects. He stressed that any item of public interest unable to meet a 10-day deadline is to be pushed to the next meeting. Chair Noble asked if the representatives of True Dragon Brewery have any presentation to make to this Board; Brit Fontenot stated he will invite them to attend the meeting. Additional items to include on the agenda are finalization of the work plan and budget for the upcoming fiscal year and the update on the financial analysis for issuance of tax increment financing bonds. FYI/Discussion (formerly Neighborhood News). No discussion was raised under this agenda item. Adjournment – 8:16 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