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HomeMy WebLinkAbout1986-10-06 , 433 Fund retain 1.25 times the annual payment, which runs from $568,000 to $588,000, so the amount required in the reserve account will not change substantially during the life of the bond issue. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion authorize the designation of loans from the General Fund to the Water Fund as a long-term debt, to be repaid within five years at an interest rate of 7.86 percent. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. I Ordinance No. 1220 - amendments to Chapter 16 of the Bozeman Municipal Code, subdivision regulations City Manager Wysocki presented Ordinance No. 1220 to the Commission entitled: ORDINANCE NO. 1220 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING TITLE 16 OF THE BOZEMAN MUNICIPAL CODE, PROVIDING MINIMUM STANDARDS AND PROCEDURES FOR SUBDIVISIONS IN THE CITY OF BOZEMAN AND THE JURISDICTIONAL AREA OF THE CITY OF BOZEMAN, MONT ANA. City Manager Wysocki reminded the Commission that they had conducted the public hearing on these proposed amendments to the subdivision regulations to bring them into compliance with State Statute and had subsequently approved those changes. He then recommended that the Commission provisionally adopt Ordinance No. 1220, adopting the amendments to the subdivision regulations, and that it be brought back in two weeks for final adoption. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commis- sion provisionally adopt Ordinance No. 1220, amending various sections of Chapter 16 of the Bozeman Municipal Code, and that it be brought back in two weeks for final adoption. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Com- missioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. I City Manager Wysocki presented Ordinance No. 1221 to the Commission entitled: ORDINANCE NO. 1221 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING NUMEROUS SECTIONS OF CHAPTER 18 OF THE BOZEMAN MUNICIPAL CODE TO ALLOW SPECIFIC TYPES OF PUBLIC UTILITY FACILITIES AS PERMITTED USES AND/OR CONDITIONAL USES IN THE VARIOUS ZONING DISTRICTS, TO DELETE THE DEFINITION OF PUBLIC UTILITY FACILITY AND SUPPLEMENTARY SCREENING REQUIREMENTS FOR A PUBLIC UTI LlTY FACI LlTY AND TO DELETE PUBLIC UTI LlTY FACI LlTY AS A PERMITTED USE IN THE "M-1" AND "TR" DISTRICTS AND AS A CONDITIONAL USE IN THE "AS," "R-S," IR-1," "R-MH," "R-O," "B-2" AND "PLI" DISTRICTS IN THE CITY OF BOZEMAN, MONTANA. City Manager Wysocki reminded the Commission that they had conducted the public hearing on the Zone Code Amendment and had approved it. He then recommended that the Commission provisionally adopt Ordinance No. 1221, enacting those amendments, and that it be brought back in two weeks for final adoption. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission provisionally adopt Ordinance No. 1221, amending numerous sections of Chapter 18 of the Bozeman Municipal Code to allow specific types of public utility facilities as permitted and/or conditional uses in specific zoning districts, and that it be brought back in two weeks for final adoption. I The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Discussion - Montana Lea ue of Cities and Towns Convention held in Butte on Se tember 17-19, 19 - City Manager Wysocki stated that the Commission had requested this item be placed on the agenda. 10-06-86 439 Mayor Mathre indicated she wi II submit suggestions from the Commissioners to Mr. Alec Hansen, Executive Di rector of the League. Commissioner Jordan stated he feels the cracker barrel sessions are good and should be used again. He noted that the large information swap format used in the one afternoon session this year was not as effective as the cracker barrel session where sevl!!ral people are involvl!!d in a discussion. I Commissioner Stiff noted it was difficult to get around in his wheelchair, so hI!! went to thosl!! areas on the periphery only. City Manager Wysocki noted that at the I CMA Conference he recently attended, there was a "wind down" hour in the later afternoon where five or six tables were set up in a room with the topic of discussion listed on the front. He noted that presented an opportunity to discuss items of interest with others. Commissioner Stiff noted that the conference he attended is San Antonio had the same basic setup, which didn't work well. He noted that the attendance at that conference was substantially lower than the attendance at the I CMA conference. Commissioner Martel expressed disappointment about the number of communities represented at the convention. He then suggested that the resolutions which are prepared ahead of time be submitted to the various communities so that the councils and commissions have an opportunity to review them prior to the general business meeting. Mayor Mathre noted that a few of the resolutions are prepared ahead of time; but the Resolutions Committee meets on the Wednesday prior to the convention to review the proposed resolutions and prepare a recommendation. She also noted that most of the items submitted in the resolutions are the same year after year; and the voting delegate usually knows where the majority of the commission or counci I stands on the various issues. Commissioner Vant Hull asked how many of the Commissioners should attend the convention each year, indicating that she does not feel it is necessary for all five to be present. Commissioner Stiff noted that he feels this year two or three would have been sufficient to send, and the monies saved could then have been used to send someone to another seminar I which might have been helpful to the City. Commissioner Jordan stated if the mode is changed to include more cracker barrel sessions, he feels it would be beneficial to have all the Commissioners present, otherwise, he feels two or three would be sufficient. He then stated he would also like to see more legislators attend, with an opportunity for discussion among them and the local elected officials. Commissioner Martel indicated he feels a discussion on all initiatives and constitutional amendments, with both sides represented, would have been beneficial. City Manager Wysocki indicated that he was asked if Bozeman would consider submitting a bid for the Convention in 1989. He noted that 230 people attended the Convention in Butte; and he feels there are facilities in this community to handle that many easily. He asked that the Commission consider that possibility, with a decision on that item being made around the first of the year. Mayor Mathre stated she has addressed one civic group about the impact of C127, indicating she will address others. She then asked if other Commissioners are interested in talking to civic groups as well. Commissioner Vant Hull stated she would be interested in talking to groups and distributing information. Commissioner Jordan stated he would be willing to talk to groups who have meetings when he is in town. require "No Parking" signs along north Carroll V. Henderson requestin I City Manager Wysocki presented to the Commission a memo concerning the "No Parking" signs along the north side of Garfield Street between South Willson Avenue and South Black Avenue. He noted that a letter from Duncan MacNab, and a copy of the minutes from the September 14, 1977, Commission meeting, at which meeting the signs were ordered installed, have been attached. The City Manager also noted he received a letter from Mr. Carroll V. Henderson requesting that the "No Parking" signs along East Hayes Street from South Willson Avenue to the railroad right of way be removed, which is also attached. The City Manager then stated he feels this type of issue is an administrative matter and recommended that the Commission refer these items back to . staff for action. 10-06-86 4Lt U Mayor Mathre asked if the Pedestrian/Traffic Safety Committee should review this type of request. The City Manager stated they could, reminding the Commission that the PTSC is advIsory to them, not the City staff. Following discussion, the Mayor suggested three alternatives for a motion: ( 1) rea ffi rm the previous Commission action; (2) refer to the Pedestrian/Traffic Safety Committee and back to the Commission for action; or (3) refer to staff for action. It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that the Com- I mission refer the issue of "No ParkingU signs along the north side of Garfield Street between South Willson Avenue and South Black Avenue to the Pedestrian/Traffic Safety Committee, with a recommendation to be submitted back to the Commission. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Stiff and Commissioner Vant Hull; thOSE voting No being Commissioner Jordan, Commissioner Martel and Mayor Mathre. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com- mission reaffirm the previous Commission action of September 14, 1977, requiring that the "No Parking" signs be re-installed. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Martel and Commissioner Vant Hull; those voting No being Commis- sioner Jordan, Commissioner Stiff and Mayor Mathre. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission rescind the previous Commission action and refer the placement of "No ParkingU signs along Garfield Street between South Willson Avenue and South Black Avenue to staff; and refer the letter from Carroll V. Henderson requesting removal of "No Parking" signs along East Hayes Street to staff for action. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Martel and Commissioner Vant Hull. Break - 3:45 to 3:55 p.m. Mayor Mathre declared a break from 3:45 p.m. to 3:55 p.m., in accordance with Commission I policy established at their regular meeting of March 14, 1983. Avenue and McAdow Avenue City Manager Wysocki stated that Commissioner Vant Hull had requested this item be removed from the Consent Items. Commissioner Vant Hull noted once again that the City of Billings requires payment for the public right of way which is vacated, based on the appraised value of that property. She indicated she still feels the City should check out that possibility and implement such a program. The Commissioner then suggested the Commission may wish to acknowledge receIpt of this request but defer any action until after the possibility has been reviewed. Commissioner Jordan indicated that he supports the idea; but he does not feel that action on this request should be deferred unti I that possibility has been reviewed. Mayor Mathre noted that the cost effectiveness of such a program must be carefully re- viewed. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission acknowledge receipt of the request submitted by R. G. Simkins for vacation of the alley between Broadway Avenue and McAdow Avenue, north and south of Fridley Street. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commis- I sion direct the staff to review the possibility of developing a policy to charge for vacated public rights of way. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Martel. 10-06-86 441 Application for Gaming License - The Sundance, 120 North 19th Avenue - two video draw poker ". machines - through June 30, 1987 City Manager Wysocki stated that Commissioner Vant Hull had requested this item be re- moved from the Consent Items. ;', Commissioner Vant Hull noted that the facility appeared to be closed for an extended period this summer. She then indicated she wants a determination on whether the facility was I legally opened again before approving the application for a gaming license. City Manager Wysocki distributed to the Commission copies of a letter from Kirwan and Barrett, attorneys, dated September 15, 1986, indicating that affidavits were attached from individuals who were served alcoholic beverages during the period of time that the establishment was closed. He stated this letter was submitted to the City upon an inquiry from Building Official Gene Yde; and the staff has reviewed the affidavits which were submitted. Commissioner Jordan stated he would also like an opportunity to review this matter before making a decision. It was moved by Commissioner Martel, seconded by Commissioner Jordan, that the applica- tion for gaming license for two video draw poker machines submitted by The Sundance, 120 North 19th A venue, be approved. It was moved by Commissioner Jordan, seconded by Commissioner Vant Hull, that action be tabled to allow the Commissioners an opportunity to review the affidavits which have been submitted. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Jordan, Commissioner Vant Hull and Commissioner Stiff; those voting No being Commis- sioner Martel and Mayor Mathre. Mayor Mathre requested that this item be placed on next week's agenda for further con- sideration. Claims City Manager Wysocki stated that Commissioner Martel had requested this item be removed I from the Consent Items. Commissioner Martel noted that the claims listing includes a payment to Doug Andrus Distributing in the amount of $783.23 for road salt. He reminded the Commission, combined with the previous claim for approximately $1,100, this brings the total spent for road salt to almost $2,000. The Commissioner stated he still opposes the purchase and use of road salt. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com- mission order the claims be paid, and authorize and direct the Director of Finance to pay said claims. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Martel. Discussion - FYI items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A letter indicating that a Gallatin County Fair Board meeting will be held at 7: 30 p.m. on Tuesday, October 14, in the Fair Board Office at the Fairgrounds. (2) The City Manager stated that Dorsey and Whitney, bond counsel for SID Nos. 649, 650 and 651, for Annie Subdivision, has indicated that personal guarantees cannot be required for this bond issue and still retain the tax exempt status of the bonds. (3) A memo from the Clerk of the Commission listing the meetings to be held during the upcoming week. I (4) A second letter from Janet Herwig, dated September 24, 1986, concerning the inter- section of South 5th Avenue and West Grant Street. (5) A letter from Claire O'Brien, Bozeman Convalescent Center, expressing concern about the intersection of North 5th Avenue and East Villard Street. (6) A paper on the "Role of the Commissioner" as prepared by City staff. The City Manager noted this is in response to Commissioner Martel's request for clarification of the role of the Commissioner as well as the Mayor and City Manager. Mayor Mathre requested that this paper be placed on an agenda for discussion when possible. 10-06-86 4~2 (7) Commissioner Jordan noted that he has found information in various documents in Great Falls concerning the roles of Commissioners and the conduct of Commission business, which he has had copied. He noted that may also be useful in discussing the above item. (8) Commissioner Vant Hull noted that a 3. 5-acre tract of land at the intersection of South Church Avenue and East Story Street is currently for sale with an asking price of $70,000. She stated the property was owned by the Milwaukee Railroad; and a real estate corporation is in the process of selling the remaining right-of-way. She then suggested the City may be I interested in purchasing that property. The City Manager indicated that the gentleman from that corporation has been in twice to discuss this matter, but has not given notice before arriving at the office. (9) Commissioner Jordan noted he observed the Board of Adjustment meeting in Great Falls last week. He then stated that the Board is now serving as an advisory board to the Com- mission, due to a change in legislation two years ago. The Commissioner then suggested that this Commission may wish to consider such a change. (10) Mayor Mathre stated she has received a letter from Mary Pace concerning the lack of sidewalks in her residential area, the southwest segment of the community. She indicated she will make copies for distribution to the Commissioners. Consent Items Items. II It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission approve the Consent Items as listed above, and that the appropriate persons be authorized and I directed to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Recess - 4:25 p.m. Mayor Mathre declared a recess at 4:25 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearing. Reconvene - 7:00 p.m. Mayor Mathre reconvened the meeting at 7:00 p.m. for the purpose of conducting the scheduled public hearing. This was the time and place set for the public hearing on the application submitted by Zenith Management Company for $5,500,000 in Industrial Development Revenue Bonds from the Montana Economic Development Board for acquisition, renovation and remodeling of the Holiday I nn in Bozeman. Mayor Mathre opened the public hearing. Mr. David Ewer, Bond Program Manager for the Montana Economic Development Board, I stated the Board is responsible for trying to revitalize the economy in the State. He noted the application submitted by Zenith Management Company is for $5,500,000 in the stand-alone I DR bond program. He noted under this program, the applicant is responsible for underwriting and marketing the bonds; and the State does not become involved in any way except to serve as the sponsoring agency. He indicated those bonds are then repaid by revenues generated through the project. He noted that the federal regUlations require that a public hearing be held by the MEDB or by the local governing body; and whoever conducts the public hearing must make the decision on whether the bonds are to be issued, based on whether or not the project is in the 10-06-86 443 public interest. He noted that in some cases the MEDa will validate a local governing body's decision; but that decision usually stands on its own. Mr. Ewer stated that typically the MEDB over-induces for a specific project because fewer bonds can be sold; but if the project costs exceed the bond issue, the entire process must be completed at a higher dollar amount. He noted that the actual amount of bonds sold for the project is strictly governed by federal law, citing the requirement that at least 15 percent of I the proceeds must be used for rehabilitation as an example. He then added that Dorsey and Whitney is serving as bond counsel for this issue. Commissioner Stiff asked if there are any specific criteria to be used in making a deci- sion on this request. Mr. Ewer stated there are no specific criteria established, except that the State Statute requires that a determination whether the project is in the public interest must be made. He indicated that the local governing body may use whatever criteria it wishes in making that determination. City Manager Wysocki distributed copies of the current City policy on I ndustrial Develop- ment Revenue bond issues to the Commission. He noted that he gave a copy of this policy to Zenith Manufacturing Company upon their request; and following review of the policy, they applied for IDR's through the Montana Economic Development Board. Mr. Manley Goldfine, Chief Executive Officer for Zenith Management Group, stated his firm is in the motel business, currently owning and managing 2,000 motel rooms mainly in smaller communities throughout the United States. He then submitted to the Commission a list of the cities in which they own motels, showing the year in which it was acquired and the number of rooms in each motel. Mr. Goldfine indicated his company is interested in acquiring the Holiday Inn in Bozeman because it is one of the better motels in the community; Holiday Inn has high standards; and he feels that his firm can improve the Holiday I nn to make it a better motel. He indicated that he plans to upgrade the rooms; and if warranted, he would like to increase the convention and I meeting capabilities in the facility. Mr. Goldfine indicated the company has projected that upgrading of the facility, which should also increase the occupancy rate, should create an additional twenty jobs for the community. Manley Goldfine stated this is only the second time he has requested the use of lOR bonds for purchasing and upgrading a facility. He noted that the bonds wi II be issued only on his firm's credit; and they are responsible for providing a Letter of Credit from a bank and getting someone to purchase the bonds. He then indicated his reason for requesting the use of lOR bonds is because they carry a fixed rate, rather than the floating rate available at the bank. He noted it will take a couple of years to improve the rooms and get the income stabilized; and having a set interest rate will be helpful during that period. Mr. Goldfine stated that Holiday Inn has reviewed this motel and has submitted a fifteen- page report on items which must be completed and upgrading which must be done to retain the Holiday I nn franchise. He noted the current franchise expires in 1988; and if the motel meets the standards at that time, the franchise can be renewed for thirteen years. He stated it is his goal to complete the improvements to meet the franchise standards so the renewal can be done. He then indicated that the projected budget for upgrading the rooms is $778,000, noting that he has not yet completed a project within the budgeted amount. Commissioner Vant Hull noted that the community needs a convention center in which to hold large meetings and asked if the applicant would have adequate monies to provide such a faci Iity. Mr. Goldfine indicated he would have monies available for such a facility. He stated that I he has not studied the need for a larger convention center in the community; but if he finds it is wa rranted, he wi II pu rsue the matter. He noted it would be possible to enlarge the existing pool area and provide a nice convention area. Mr. Goldfine then noted the Holiday Inn will be one of the largest motels and will be aggressive; however, he feels that will also benefit other motels in the community. He then emphasized that even if convention facilities are expanded, he plans only to upgrade existing rooms and not add to the number of rooms in the motel. Mr. Goldfine stated that the Zenith Management Company is comprised of seven individuals, five of whom work full time in the motel business. He noted that the seven people form different 10-06-86 4y It limited partnerships to purchase the various motels; and the Zenith Management Company is then contracted to manage all of the motels. He indicated that the Holiday I nn currently has an occu- pancy rate of 55 to 60 percent; and he hopes to increase that rate to 70 percent. Mr. Goldfine also indicated that the limited partners plan to put $1 million of their private monies into this project; and the amount of lOR bonds needed to complete the project will be negotiated, based on the total amount of monies needed for the project. In response to a question from Commissioner Vant Hull, Mr. Goldfine indicated that most of the people employed at the Holiday Inn will be Bozeman people. He noted they will use some I of their supervisory people to train the employees; and three to five of their supervisory personnel may be transferred here, but the remainder of the positions will be filled locally. Manley Goldfine stated that he hopes to purchase the Holiday Inn immediately. He then noted that the lOR bonds must be sold by December 31, because the federal law changes after that date so that lOR bonds can no longer be used in this manner. He stated that he hopes to have the remodeling completed within six months after purchase of the property and sale of the bonds. Commissioner Martel noted that the applicant has proposed using $1 million of personal monies plus $5.5 million in IDR bonds and asked how all of those monies would be spent. Mr. Goldfine indicated the purchase price plus remodeling is estimated at $5 million, without any expansion of the existing facility. He reminded the Commission that he had indicated earlier that renovation usually exceeds the budgeted amount, so he anticipates an additional $.5 million to $1 million will be needed before the project is completed. He then noted that the MEDB usually over-induces the I DR bond issue so that if more monies are needed than originally projected, the process does not need to be completed again. He stated that only as many bonds as needed to cover actual expenditures will be issued. City Manager Wysocki reminded the Commission they had received a copy of a letter dated September 10, 1986, from Don Norem to the State Department of Commerce expressing concern and questioning specific points in the application. Mr. David Ewer stated he received the original copy of that letter and had responded to Mr. Norem. He indicated that he had en- I couraged Mr. Norem to attend or have a representative present at this publiC hearing. He then reminded the Commission that the State is not responSible for underwriting the bonds and that the MEOB over-induces the lOR bond issues. He noted that the federal guidelines are explicit on how the monies can be used, citing as examples the fact that the monies cannot be used in the restaurant section or where alcoholic beverages are served, and the fact that the monies cannot be used for working capital. Mayor Mathre asked who monitors the bond issue. Mr. Ewer stated that the Montana Economic Development Board signs the no arbitrage statement. He noted that a governmental unit must be the sponsoring agency for the I DR bond issue; and that is the function of the MEOB. He then indicated the MEDB will not oversee the spending of those monies; however, the applicant must sign a certificate indicating how the monies are being used. Mr. Goldfine stated that the ramifications of improper use of the lOR bond monies are heavy, such as the bond issue becoming taxable and possibly callable immediately. He indicated that his firm will be very careful in its use of the bond proceeds. Commissioner Stiff asked if the individuals will be backing the bond issue or if they have a corporate shield. Mr. Goldfine stated they are responsible for providing a Letter of Credit and personal guaranteeing of the bonds. He noted the individuals involved in the limited partnership incur a heavy financial obligation for their projects. He then noted that to obtain the Letter of Credit, the individuals must pay 1 t percent per year of the outstanding bonds. He also noted a big bank must provide the Letter of Credit and issue the bonds, so they plan to use a bank in Minneapolis. He then indicated they have negotiated with Dain I Bosworth for sale of the bonds. I n response to a question from Commissioner Vant Hull, Mr. Ewer requested that the decision be made tonight. He noted that the law provides that a decision must be made within fourteen days after the public hearing. However, the timeline for an lOR bond sale is sixty to ninety days; and the sale must be completed not later than December 31, 1986. Commissioner Martel commented that to personally guarantee borrowing on several proper- ties in such a short period of time would result in considerable leveraging. Mr. Goldfine stated 10-06-86 445 that the people involved in the limited partnerships and the Zenith Management Company have a greater net financial worth and less leveraging than those in other companies of comparable size in the U.S. He noted that the project here, at $5 mi llion. is a large project for them. Mr. Ewer noted that recent federal legislation is having an impact on what are eligible projects for bonds. He stated that all commercial facilities will no longer be eligible for tax exempt bonds after De'cember 31, 1986; and all non-manufacturing entities will not be eligible I for tax exempt bonds after December 31, 1988. No one was present to speak in opposition to the application for issuance of $5.5 million in I DR bonds for the Zenith Management Company. Mayor Mathre closed the public hearing. Commissioner Jordan stated he does not want to waive the one-week waiting period because the Commission has just received the information on this item at this public hearing and he wants an opportunity to review it prior to making a decision. Commissioner Stiff stated he shares Commissioner Jordan's concerns; however, two of the Commissioners will be absent from next week's meeting. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commis- sion waive the customary one-week waiting period. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Jordan and Commissioner Martel. Break - 8:26 to 8:35 p.m. Mayor Mathre declared a break from 8:26 p.m. to 8:35 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. 5,500,000 or acquisition, I Commissioner Jordan requested that the Commissioners voting on the prevailing side of the previous motion reconsider their action and place such a motion on the floor. Each of the three indicated they would not place a motion to reconsider on the floor, noting that they feel to wait two weeks to make a decision could create problems for the applicant as well as to place the entire project in jeopardy. Mayor Mathre suggested that the Commission review the criteria for consideration of Industrial Development Revenue bonds, as set forth in Commission Resolution No. 2542, to deter- mine if this project is in the public interest. Following review of those criteria, the Commission concurred that the project is in the publiC interest. Commissioner Jordan questioned what is changing besides the ownership of an existing business under this application. He also noted that the jobs to be created are not primary jobs. Commissioner Stiff noted that to improve the occupancy rate of the motel will help others in the community, including satellite business to the motel industry. He then stated he feels the Commission is mandated to do everything possible to build the existing business base in the community, noting that tourism seems to be about the best industry at this time. Commissioner Martel noted there is no risk to the local community or to the State in this proposed project; and the remodeling wi II result in an increased tax base. He also noted that Montana dollars are not being exported under this proposal. The Commissioner then expressed concern about making a decision at this time without having time to review the information which has been received during the publ ic hearing. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission I approve the application submitted by Zenith Management Company for $5.5 million in Industrial Development Revenue Bonds from the Montana Economic Development Board for acquisition, renovation and remodeling of the Holiday Inn, based on their determination that this project is in the public interest. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No being Commissioner Jordan. 10-06-86 44b Application for Gaming License - The Sundance, 120 North 19th Avenue - two video draw poker machines - through June 30, 1987 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the application for gaming license submitted by The Sundance be removed from the table. The motion carrIed by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No being Commissioner Vant Hull. City Manager Wysocki noted the Commission had requested an opportunity to review the I affidavits which had been submitted to the Building Inspection Division by the applicant. He stated those affidavits were made available to the Commissioners for review just prior to the recess. He then noted that the affidavits indicate that The Sundance was open intermittently during the subject period of time. He further reminded the Commission that the business holds current State and City liquor licenses. Commissioner Jordan stated he feels that the business must be able to show that it was open for business and operating, not just giving drinks to a chosen few off and on during the summer. He also suggested that the business should be able to show daily receipts if it was not closed. The Commissioner stated that if The Sundance can show that it was open for business during the summer, the application for the video draw poker machines should be approved; but if it was not, he would not be comfortable approving the request. Mayor Mathre asked if there is any definition of "open for business" and the City Manager indicated he would have to research that question. Commissioner Vant Hull also expressed concern about the affidavits which have been sub- mitted. She noted that the neighborhood has voiced concern about this establishment on numerous occasions; and she feels the City must be careful in its actions. Commissioner Jordan noted his concern is that the business location changed types of business--from a bar to a teen center and now back to a bar--however, the time lapse for the bar was more than ninety days. City Manager Wysocki suggested that the Commission defer action for a period of two weeks, indicating that he will have someone present to represent The Sundance. I Mayor Mathre requested that this item be placed on the October 20 agenda for further consideration. Adjournment - 9:20 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission I 10-06-86