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HomeMy WebLinkAbout1984-05-29 181+ MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA May 29, 1984 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, May 29,1984, at 4:00 p.m. Present were Mayor Weaver, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki, I Assistant City Manager Barrick, City Attorney Crumbaker-Smith and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. The minutes of the regular meeting of May 21, 1984 were approved as amended. Action on the minutes of the regular meeting of December 5, 1983, was deferred until a later date. Mayor Weaver asked if any of the Commissioners wished to remove any of the Consent Items for discussion. Commissioner Mathre requested that the engineering agreement with Sorenson and Company for Highland Boulevard be removed for discussion. Commissioner Jordan requested that permission to conduct the CNFR parade and placement of temporary bleachers on the sidewalk, as well as the annual report for the Police Division for calendar year 1983, be removed for discussion. Decision - Zone Code Amendment - amend Sections 18.30.020, 18.32.020 and 18.52.140 to allow bars, taverns and cocktai I lounges as a Conditional Use only within the B-2 and B-3 Districts This was the time and place set for the decision on the Zone Code Amendment to amend Sections 18.30.020, 18.32.020 and 18.52.140 to allow bars, taverns and cocktai I lounges as a Conditional Use only within the B-2 and B-3 Districts. City Manager Wysocki stated the public hearing was conducted last week and recommended approval of the Zone Code Amendment. Commissioner Vant Hull asked if this Amendment would create discrimination against one I type of business. City Attorney Crumbaker-Smith stated it would not. She stated other categories of businesses are listed as conditional uses rather than permitted uses at the present time. Commissioner Mathre indicated the clarification of the definition of a bar should be completed by staff. She noted that is not a part of this Zone Code Amendment. The Commis- sioner then stated there is a problem in conflicting uses on adjacent properties at the present time. She indicated any time conflicting uses create a potential for problems, the conditional use review process should be utilized. Commissioner Vant Hull and Commissioner Anderson stated support of Commissioner Mathre's reason for supporting the proposed Zone Code Amendment. Commissioner Jordan stated this one industry creates many policing problems and should be carefully reviewed whenever possible. Mayor Weaver stated support for the Zone Code Amendment, noting the Zone Code provides that Conditional Use Permits be issued for specific uses other than those permitted, with one of the concerns addressed being protection of the public health, safety and general welfare of persons residing or working in the vicinity of the proposed business. Also, he indicated he views bars, taverns and cocktail lounges as a unique kind of business which carries with it a significant impact to its immediate area. The Mayor then stated this Amendment does not address the existing problems involving bars, but it puts the City in the best possible position to protect residential areas in the future. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- I sion approve the Zone Code Amendment to amend Sections 18.30.020, 18.32.020 and 18.52.140 of the Bozeman Municipal Code, to allow bars, taverns and cocktail lounges as a Conditional Use only within the B-2 and B-3 Districts. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. It was then moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission authorize and direct the staff to draft an amendment to the Zone Code establish- ing a definition for bars, taverns and cocktail lounges. The motion carried by the following 05-29-84 185 Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Request - permission to place information center on North Seventh Avenue - Chamber of Commerce City Manager Wysocki presented to the Commission a request on behalf of the Chamber of I Commerce to place an information center and Lions Club sign on North Seventh Avenue. He also submitted a memo from Assistant City Manager Barrick addressing specific issues in the request. Assistant City Manager Barrick stated he has discussed the recommendations made on the second page of his memo with the owner of the Topper Motel and the Chamber of Commerce, and both have expressed support of the recommendations. Daria Joyner, Acting Executive Director of the Chamber of Commerce, stated the rec- ommended conditions for approval will be satisfied. Commissioner Anderson asked if the recommended one-year approval applies to both the structure and sign. The Assistant City Manager stated the one-year time element applies to the structure only. He noted the length of time involved in approval of the sign can be addressed in the proposed agreement on the right-of-way encroachment. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission approve the request submitted by the Chamber of Commerce for permission to place a temporary structure on the parking lot at the Topper Motel for a period of one year, pro- vided the structure is pinned to the asphalt surface and the off-street parking requirements are met. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Assistant City Manager Barrick stated he will meet with the Lions Club to reach an I agreement for the right-of-way in which to place the sign near the Topper Motel. He noted possible use of a revocable permit may be considered. City Manager Wysocki noted use of a revocable permit is addressed in the Resolution pertaining to sidewalk sales which was recently adopted. He noted that Resolution could be possibly revised in the future to include all public rights-of-way. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commission authorize and direct the staff to negotiate an agreement with the Lions Club for placement of the sign within public right-of-way, to be submitted to the Commission for action as soon as possible. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. Continued discussion - water data collection; possible internship for same City Manager Wysocki stated the Commission has requested this item be placed on the agenda for further discussion. He then presented to the Commission a listing of the documents in the Engineering Office. He indicated the Planning Director will submit a list of the docu- ments in that office as soon as possible. Commissioner Anderson asked if a comprehensive collection of water data would be of assistance in making decisions on land use and planning questions. Planning Director Steve Lere stated he is not certain what is available compared to what the Planning Department currently has. He also indicated uncertainty about the parameters of I the proposed study or the usable information that may be gathered. Mayor Weaver noted one of the goals tentatively established is participation in an area- wide inventory of water. He indicated the major question is one of timing. He noted the City may wish to participate with other entities to get an inventory completed, although it may not be immediately beneficial to the City. Commissioner Anderson stated the major goal determined at the November water confer- ence was the collection of data. She stated she feels the $2,500.00 submitted in the proposal is 05-29-84 186 an appropriate price and stated she feels to have the information available by July 1 st could be beneficial during the budgeting cycle. Commissioner Vant Hull noted the graduate student will be able to gather this information while completing his work at a good price. She stated Senator Eck also commented that comple- tion of this data collection could enhance the City's chances to obtain grants through Helena. Commissioner Anderson noted this item was on the County Commission's agenda earlier this afternoon. I City Manager Wysocki stated the County decided not to participate in the funding of this proposal. Commissioner Jordan asked if the collection of data will help the City know its water position. He also asked if all of the data wi II be collected in one place and, if so, if someone will review that information to determine what is contained in those reports. Commissioner Anderson stated the process is to determine what reports have been completed and where that information is located. She stated, if possible, all of the information will be gathered into one central library. Commissioner Vant Hull noted if this study is compared to others which the City has funded, such as the Automated Flight Service Station study, the City will receive a more immediate payoff. She also noted the City has recently appropriated monies for a study on water rates, only after which would the previous study on hook-up fees be usable. Mayor Weaver stated he would like to see the City participate in a joint venture to explore a water inventory. He indicated if this is the first step in that process, he will support the study. The Mayor noted, however, that if the study is completed at this time, the monies must be appropriated from the current budget. City Manager Wysocki cautioned the Commission that it may need to consider an increase in the water rates because of increased costs. He then indicated the Water Fund may face a deficit during this fiscal year, which must be considered when appropriating additional monies. Commissioner Anderson suggested the Travel and Schools line item of the Commission's budget may contain adequate monies to fund this project. I Commissioner Jordan indicated he is not against the study, but he would like to know what will be done with the information gathered and what might be requested in the future. Commissioner Mathre asked if the information gathered through this process will be useful to the City. City Manager Wysocki stated the information could be useful to the City. He noted once all the various studies are gathered into one location, someone must review those studies and determine the next step. He indicated he is uncertain anyone on the City staff would have the time necessary to complete a review of the information in those studies. Mayor Weaver asked why the City should pay the entire $2,500.00 when the Water Resources Center is also interested in the information. Commissioner Anderson stated the University will provide supervision of the graduate student, which is why the proposed cost is so low. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commis- sion appropriate $2,500.00 for graduate student Dave Donohue to implement collection of water studies as they relate to the Gallatin drainage. Commissioner Mathre offered the following substitute motion. It was moved by Commis- sioner Mathre that the Commission appropriate $1,250.00 for the proposed water data collection for the Gallatin drainage, contingent upon commitment of funding for the remaining $1,250.00 for the study. The motion died for the lack of a second. The original motion then carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre, Commissioner Vant I Hull and Mayor Weaver; those voting No. none. Break - 4:55 to 5:00 p.m. Mayor Weaver declared a break at 4:55 p.m., to reconvene at 5:00 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. 05-29-84 187 Continued discussion - possible appointment of Handicapped Access Committee City Manager Wysocki stated the Commission requested this item be placed on the agenda for further discussion. Mayor Weaver indicated further conversation with Shirley Sedivy has indicated the Handi- capped Access Committee has been formed as a citizens committee. He noted the Committee has requested that it be appointed as an advisory committee to the Commission rather than being I strictly a citizens committee. Mrs. Shirley Sedivy stated formation of a committee was discussed during previous dis- cussions on lay-down curbs in the downtown area and installation of additional handicapped parking spaces along Main Street. She indicated a committee has been formed to review any problems that exist and to attempt to find solutions to those problems. The Mayor indicated it may be easier to function as a citizens committee submitting suggestions to the Commission rather than as an advisory committee. which would face the con- straints of a regular committee. He suggested that the committee remain in its capacity now and, if it is determined the committee is not functioning as well as it would as an advisory committee, the Commission can make the appointments at that time. Shirley Sedivy then reviewed a memo from the Committee to the Commission listing three suggestions for consideration. Those suggestions include relocation of the trash receptacle in front of Miller's Jewelry; recognition of businesses providing handicapped access, possibly through issuance of a certificate; and increasing the fines for parking in designated handi- capped spaces. The Commission determined strict enforcement of the existing Code should be attempted prior to increasing the fine. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission acknowledge receipt of the suggestions submitted by the Handicapped Access Committee and refer those suggestions to staff for review and a report to be submitted to the Commission in two weeks. The motion carried by the following Aye and No vote: those voting I Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Ordinance No. 1161 - amending Section 15.32.020 of the Bozeman Municipal Code re electrical signs above private property City Manager Wysocki presented Ordinance No. 1161, as prepared by the City Attorney, entitled: ORDINANCE NO. 1161 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTION 15.32.020 OF THE BOZEMAN MUNICIPAL CODE, REVISING THE ADDITIONS AND DELETIONS OF THE UNIFORM SIGN CODE IN THE CITY OF BOZEMAN, MONTANA. City Manager Wysocki stated the Commission provisionally adopted this Ordinance at its meeting of May 14 and recommended that the Commission finally adopt the Ordinance at this time. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission finally adopt Ordinance No. 1161, amending the sign code. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Commission Resolution No. 2502 - annexation policy City Manager Wysocki presented Commission Resolution No. 2502, entitled: I COMMISSION RESOLUTION NO. 2502 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING GOALS AND POLICIES FOR ANNEXATION OF PROPERTIES TO THE CITY OF BOZEMAN. City Manager Wysocki stated the Commission has considered this policy at several previous meetings and recommended that this Resolution be adopted. Commissioner Jordan suggested the Commission may wish to consider adding a goal or policy requiring that all new annexations install underground utilities. The Commissioners concurred that item could be considered during review of this Resolution. 05-29-84 - ------------ -------------------- 188 It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commission adopt Commission Resolution No. 2502, establishing an annexation policy. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Ander- son, Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. Commission Resolution No. 2503 - providin for an ener y conservation capital improvement I program un City Manager Wysocki presented Commission Resolution No. 2503, entitled: COMMISSION RESOLUTION NO. 2503 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING AN ENERGY CONSERVATION CAPITAL IMPROVE- MENT PROJECT FUND FOR THE CITY OF BOZEMAN, MONTANA. Commissioner Vant Hull indicated she has prepared two proposed additional sections to this Commission Resolution. Mayor Weaver requested that action on this Commission Resolution be deferred for a period of one week to allow staff and the Commission an opportunity to review those proposed additions. Commission Resolution No. 2504 - annexation of Sourdou h Creek Properties (Carter Williams/ lair Daines nnexation City Manager Wysocki presented Commission Resolution No. 2504, as prepared by the City Attorney t entitled: COMMISSION RESOLUTION NO. 2504 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, EXTENDING THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO IN- CLUDE A TRACT OF LAND CONTIGUOUS TO SAID CITY AND REFERRED TO AS THE WESTFIELD SUBDIVISION, HEREIN MORE PARTICULARLY DESCRIBED, WITHIN THE CORPORATE LIMITS THEREOF. I City Manager Wysocki stated on November 7, 1983, the Commission approved annexation of this 31. 714-acre site located between South Third Avenue and Wagon Wheel Road, across South Third Avenue from Figgins Addition, contingent upon two conditions. Those conditions have been met, and this Resolution provides for annexation of the parcel. The City Manager recommended that the Commission adopt Commission Resolution No. 2504. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commis- sion adopt Commission Resolution No. 2504, annexing the Sourdough Creek Properties, also known as the Westfield Subdivision. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull and Commissioner Anderson; those voting No, none. Mayor Weaver abstained because his residence lies within a Special Improvement District which may be repaid by development of this site, resulting in pecuniary advantage. of Westrid e Meadows, PU D, Phase " (Donald City Manager Wysocki presented Commission Resolution No. 2505, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2505 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, EXTENDING THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE A TRACT OF LAND CONTIGUOUS TO SAID CITY AND REFERRED TO AS I WESTRIDGE MEADOWS, PUD, PHASE II, HEREIN MORE PARTICULARLY DESCRIBED, WITHIN THE CORPORATE LIMITS THEREOF. City Manager Wysocki stated on July 5, 1983, the Commission approved annexation of this 2-acre parcel, located south of Kagy Boulevard, adjacent to and west of the Valley View Golf Course. The City Manager then recommended that the Commission adopt Commission Resolution No. 2505. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- sion adopt Commission Resolution No. 2505, annexing the Westridge Meadows, PUD, Phase I I. 05-29-84 189 The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Authorize Cit a reement for Hi hland Boulevard - Sorenson and ompany I City Manager Wysocki stated Commissioner Mathre had requested this item be removed from the Consent Items. .. Commissioner Mathre asked if this agreement is standard for engineering services. City Manager Wysocki stated this agreement is more definitive than previous engineering agreements. The City Manager then stated the City received eight proposals for this project; and the staff has recommended Sorenson and Company, Missoula, Montana, for this project. Commissioner Vant Hull noted the City should attempt to hire local firms whenever possi- ble. City Manager Wysocki indicated the hiring of a local firm was discussed at length. How- ever, none of the local firms was close to Sorenson and Company in the point system utilized. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission authorize and direct the City Manager to sign the engineering agreement with Sorenson and Company, Missoula, Montana, for engineering services for construction of the realigned Highland Boulevard. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Request - permission to conduct CN FR arade - 1 :00 p.m., June 20, 1984; permission to place temporary bleachers on Sf ewalk City Manager Wysocki stated Commissioner Jordan had requested this item be removed from the Consent Items. I Commissioner Jordan asked if the City would incur any liability through placement of bleachers on the sidewalk. He also asked if the City would place the bleachers on the sidewalk or if the Commission would only be granting permission for placement of the bleachers. City Manager Wysocki indicated the bleachers are owned by the City and would be moved by the City at the City's expense, which would be approximately $100.00. Commissioner Vant Hull stated she does not feel the City should pay for moving of the bleachers. Commissioner Mathre stated the police direct the traffic at no cost to those conducting the parade. She noted the use of bleachers appears to be the same type of service. Commissioner Jordan indicated he feels supplying of the police protection at the City's expense is sufficient. He stated he feels the City should move the bleachers but that the CNFR should pay for. the costs. Commissioner Anderson stated she does not feel the City should bear the costs of moving the bleachers. She noted a precedent could be set which could cost the City substantially more than this request. It was moved by Commissioner Mathre that the City approve the request for permission to conduct the College National Finals Rodeo parade on June 20, 1984 at 1 :00 p.m.; and approve the request for permission to place temporary bleachers on the sidewalk with the understanding that the CNFR can make a contribution to the City for the costs incurred if they so desire. The motion died for the lack of a second. It was moved by Commissioner Vant Hull, seconded .by Commissioner Anderson, that the I Commission approve the request for permission to conduct the College National Finals Rodeo parade on June 20, 1984 at 1: 00 p. m.; and approve the request for placement of temporary bleachers on the sidewalk, with the City moving those bleachers at the CNFR's expense. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. 05-29-84 ,. l~O Acknowledge receipt of annual report for the Police Division for Calendar Year 1983 City Manager Wysocki stated Commissioner Jordan had requested this item be removed from the Consent Items. Commissioner Jordan asked if the statistics for this report are computerized and whether information on specific establishments is readily available. Assistant City Manager Barrick indicated the Police Department reports are not currently computerized; and at the present time, the City's computer is at maximum capacity. He indi- I cated the statistics for this report are completed of! a manual basis. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commis- sion acknowledge receipt of the annual report for the Police Division for Calendar Year 1983. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A magazine article entitled "Leadership at Work" submitted by Commissioner Anderson. (2) Minutes from the Pedestrian/Traffic Safety Committee meeting held on March 27, 1984. Commissioner Anderson stated before the Commission begins the budgeting process, she feels Sarah Helfrich should submit a report on the bicycle path plan. Mayor Weaver asked that she talk to Sarah Helfrich and possibly schedule a time for her to submit a presentation to the Commission. (3) A letter from William J. Sebena regarding issuance of Industrial Development Revenue Bonds for the proposed convention/hotel center. (4) Weekly construction reports from Thomas, Dean and Hoskins, Inc.' (5) A letter from Jeff Rupp, H RDC, regarding the Senior Transportation Plan, as re- quested by the Commission. I (6) A letter of resignation from Curt Shook, Administrative Assistant/ Recreation Di- rector, effective June 18, 1984. Commissioner Anderson suggested the Commission send Curt a letter wishing him well in his new position. Mayor Weaver requested that she draft a letter for Commission review. Consent Items City Manager Wysocki presented to the Commission the following items. Authorize Cit Mana er to si n - Bud et Amendment to transfer $5,000.00 from na ocate nterest arnln s ater und to ater reatment Plant Authorize ity Manager to sign - mendment o. 2 - homas, Dean and Hoskins, Inc. Approve and ratify City Manager's signature - contract documents for installation of elevator at the Senior Center Social Center - Robert A. Taylor Construction Acknowledge receipt of quarterly litigation report from former City Attorney Planalp Authorize use of annual leave for Clerk of the Commission Sullivan; appoint Kathleen Norman Acting Clerk of the Commission - June 4-15, 1984 Claims It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Com- mission approve the items as listed above, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commis- sioner Jordan and Mayor Weaver; those voting No, none. I Recess - 5: 45 p. m . Mayor Weaver declared a recess at 5: 45 p. m., to reconvene at 7: 00 p. m. for the purpose of conducting the scheduled publ ic hearing and completing the routine business items. Reconvene - 7;00 p.m. Mayor Weaver reconvened the meeting at 7; 00 p. m. for the purpose of conducting the scheduled public hearing and completing the routine business items. 05-29-84 -- -- --------------..----------- 191 Public hearing - applications for UDAG funding as of May 31, 1984 This was the time and place set for the public hearing on the applications for Urban Development Action Grant funding as of May 31, 1984. Mayor Weaver opened the public hearing. City Manager Wysocki stated he conducted a public hearing on Wednesday, May 23, 1984 at 7: 00 p. m. He indicated minutes from that meeting have been provided to the Commissioners. I The City Manager stated this public hearing is the second to be held on applications for UDAG funding which must be submitted by May 31, 1984. He indicated one application was submitted prior to the public hearing held on May 23, and no additional applications were submitted as of 5:00 p.m. today. City Manager Wysocki then requested that Mr. Audie Solvie submit his presen- tation to the Commission on the proposed application. Mayor Weaver requested that the minutes of the public hearing held by Hearings Officer Wysocki on May 23, 1984 and the memo submitted by the City Manager at the beginning of this public hearing become a part of the official record. The Mayor noted after this public hearing is completed, the Commission must determine whether the City of Bozeman should apply for UDAG funding in connection with the proposal submitted. Mr. Audie Solvie, Felska-Solvie, resident of Whitefish, Montana, submitted a presentation for an Urban Development Action Grant in the amount of $1 million, to be used in the construc- tion of a convention/hotel center on North Seventh Avenue, across from the Holiday Inn. The convention/hotel structure will contain a 120-room hotel, with a fourth-floor shell having cap- acity for an additional forty rooms, which will not be developed during the initial construction. He noted the hotel is anticipated to be a Sheraton franchise, which will utilize the reservation system; however the Sheraton will provide no financial support for the project. Mr. Solvie indi- cated the convention/hotel center will be constructed around a 13,000-square-foot atrium area; and will contain a restaurant with a seating capacity of 110 persons, as well as a private dining room on the level above which wi II seat approximately 60 additional persons. Also, a lounge adjacent to the restaurant will seat 110 persons. He stated several small meeting rooms will be I constructed in a plaza type atmosphere along "Bozeman Trail" which will seat from ten to forty persons in a board room setting. A banquet area which will seat 625 persons will also be located in the convention center portion of the structure. Mr. Solvie indicated this proposed convention/hotel center is to be developed on a 10.82- acre tract, with very adequate parking to be provided. He also noted the project will contain greenery as well as footpaths, benches and jogging trai Is. In the future, the developers anti- cipate construction of more recreational facilities which will be available to the guests of the convention/hotel center as well as to the residents of the Bozeman area. He also stated the structure will be built so the convention center portion may be easily expanded, if the need arises, in such a manner that it will not look like an add on. Mr. Solvie then indicated the convention/hotel center will employ 80 full-time and 40 part-time persons when initially constructed, with 40 employees being added when the 40 rooms on the fourth floor are completed. He also indicated the project will indirectly enhance other businesses in the Bozeman area, including existing hotels and motels. Also, the facility will attract additional persons to Bozeman through use of the convention center. The applicant then stated estimates indicate the project will face a large negative cash flow for the first three years if UDAG funding is not utilized. He indicated the UDAG funding will provide a more attractive investment package for those interested in this convention/hotel center. He stated the $8 million project will be basically funded through Industrial Development Revenue bonds. with Urban Development Action Grant monies supplementing that funding. Mr. Solvie then compared the proposed facility and its effect on the area to the Outlaw I Inn in Kalispell. He noted that faci lity has attracted additional traffic to the Flathead area; and several new satellite hotels have been built in KalispeIl, as well as expansion of the Outlaw 'I nn faci Iiti.es. Mr. John Taylor, architect for the project, stated the parcel of property under considera- tion is located on North Seventh Avenue, bordered by Oak Street, 1-90, and undeveloped property to the east. The parcel contains two tracts of land totaling 10.82 acres, with the 4.01-acre tract to remain undeveloped at this time. He indicated the convention/hotel center will be constructed immediately north of the Baxter Lane right-of-way extended. The convention/hotel 05-29-84 __ __ ___n___..____________ 192 center will be built around a 118-foot by 115-foot by 45-foot high multi-level atrium court, which will contain a pool and jacuzzi as well as landscaping with greenery and waterfalls. The interior rooms will open onto the atrium and have balconies or garden entrances. Windows wi II cover the top of the atrium area, with windows being one-story deep on two sides of the atrium. The site drops approximately 20 feet from North Seventh Avenue to the back of the lot. The building will be basically divided into two "L" shaped multi-level facilities by use, with one being utilized for convention activities and one utilized for sleeping rooms. I Mr. Taylor then reviewed the drawings for the various levels of the proposed convention/ hotel center. He noted the front entrance to the building will be located on what is the third level in the back of the structure. The convention area will be located on the second level, with an entrance from the south side. The area can be divided into four smaller rooms; and the outside walls will be panels and curtains which can be removed for easy expansion of the facility if necessary. The small meeting rooms in the court area will seat 25, 20, 18, 14 and 10 persons respectively. Three of those rooms may be opened into one large area if necessary. Based on 12 square feet per person, the convention center area will seat 625 persons. The lobby area for the convention center portion will also be located on the second level, with a wander- ing ramp built to handicapped specifications to the first level, providing access to the atrium a rea. The walking area around the 1,000-square-foot pool and jacuzzi will be large enough for style shows and possibly serving of a continental breakfast. Mayor Weaver asked Mr. Solvie if this project will enlarge the tourist industry in this area or provide one more facility in which the existing tourist traffic can stay. Mr. Solvie stated the proposed convention/hotel center will be of the highest caliber and wi II provide many items not currently available in Bozeman, and possibly in the state. He in- dicated the meeting rooms will be similar to the board rooms In large private corporations, rather than being one large room split into various rooms by movable dividers. Also, the banquet facilities will be larger than most of those currently located in Montana. Mayor Weaver then asked Mr. Solvie to compare this convention/hotel center with the Outlaw Inn in Kalispell, as well as existing facilities in Bozeman. I Mr. Solvie stated the Outlaw initially had a capacity for 550 persons. A second room that size has since been constructed. Also, there were less than 100 sleeping rooms initially, compared to 260 sleeping rooms at the present time. Mr. Solvie then stated the Holiday Inn and The I nn of Bozeman currently have a capacity for 225 persons. Also, Montana State University has an outstanding capacity for convention activities if they are not scheduled for University activities. Commissioner Anderson asked what kind of conventions and types of people would fill the hotel rooms in Bozeman. Mr. Solvie stated people from every walk of life have meetings or conventions; and with a convention center in Bozeman, they would possibly meet here. He noted Bozeman is one of the most attractive areas in the United States. He also noted travel agencies promote inter- national travel; and that avenue could possibly bring conventions to Bozeman. Commissioner Jordan stated he would like to see statistics on whether the proposed convention/hotel center would really benefit Bozeman. He noted that because of Montana State University, Bozeman has experienced a large build up of motel rooms. He questioned whether the convention/hotel center would take some of the trade from other hotels. Mr. Solvie stated a facility study completed in the Bozeman area indicated the facility would have approximately a 60-percent occupancy rate during the first year of operation. The study also indicated there is currently a void in Bozeman for the type of rooms which would be available through this project. Mr. Solvie then stated he feels the success of the Outlaw I nn in Kalispell provides justification that this type of project can be successful and can enhance the I existing businesses in the area. Commissioner Vant Hull asked about the anticipated percentage of profits from the various parts of the convention/ hotel center. Mr. Solvie stated the anticipated prOfits would be approximately 50 percent from food and beverages and 50 percent from rooms. Commissioner Mathre noted several Items must be considered when determining whether the Commission should support this proposed application for UDAG funds, including the number 05-29-84 193 of new jobs for low- and moderate-income persons which would be created, the addition to the tax base which this project would provide, and the amount of private monies committed to this project. City Manager Wysocki stated the criteria listed by Commissioner Mathre must be con- sidered as well as the needs assessment which must be completed for the appl ication. Commissioner Anderson asked if the Sheraton has the power to override any of the I design proposals for the convention/hotel center. The applicant indicated the Sheraton has a complete design program with minimum standards which must be met. All working drawings must be carried to the Boston offices for the Sheraton and carefully reviewed by that office prior to construction. Commissioner Anderson then expressed concern that the concentration of hotel and motel complexes which would be created on North Seventh Avenue would erode the downtown business core by shifting emphasis from the vitality of the downtown area. Mr. Solvie stated some people prefer the downtown area to the interstate area. He noted there will always be a need for good hotel facilities and a sound business core in the downtown area. Mayor Weaver asked if a market study has been completed on the proposed project. Mr. Solvie stated the firm of Laventhol and Horwath, Certified Public Accountants, located in Denver, Colorado, is a nationally recognized firm for this type of study. He in- dicated a copy of that study is included in the application for UDAG funding. Mr. Solvie then stated that study recommended that a 120-room hotel and a 2,500- to 3,000-square-foot conven- tion area be provided. He indicated the original plans had been for a larger facility but were scaled down to meet the recommendations submitted in the report, and will provide the 120 rooms recommended and provide meeting areas which can be opened up to a 7,500-square-foot room if needed for banquet faci I ities. Mayor Weaver noted the applicants' justification for use of UDAG funding is the near-term cash flow deficit. He asked how determination of the deficit was made. I Mr. Solvie stated Laventhol and Horwath completed a cash flow study for the first five years of operation. He noted that study will be submitted with the proposal for use of Indus- trial Development Revenue bonds. Commissioner Vant Hull asked the developer why they chose Bozeman as the site for a convention/hotel center. Mr. Solvie stated they had originally considered Bozeman approximately two years ago. He stated Bozeman is one of the outstanding places in the state; and they feel the convention/ hotel center would be a good project for the area. He noted the area has many various items which draw people, including Yellowstone Park and Montana State University. B rea k - 8: 1 5 to 8: 25 p. m . Mayor Weaver declared a break at 8:15 p.m., to reconvene at 8:25 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Public hearing (continued) - applications for UDAG funding as of May 31, 1984 City Manager Wysocki asked Mr. Solvie to indicate what key personnel would be employed and when the sales and marketing operations would begin. Mr. Solvie stated the executive personnel will include a general manager, who has an extensive background in retailing and advertising promotion. Under him, an assistant manager. sales person, catering manager, food and beverage manager, chef, housekeeping manager and maintenance personnel will operate. A second sales person will be added if needed. He indi- I cated the sales person will begin work as soon as the ground is broken for construction and will work at the national, regional and local levels. The City Manager then asked about the anticipated room rates. Mr. Solvie stated the projected room rates, based on 1984 prices, for a single person are: $35.25 in 1984; $39.75 in 1985; $43.50 in 1986; $46.00 in 1987; $49.00 in 1988; and $51.50 in 1989. City Manager Wysocki then asked the applicant to describe the hotel rooms, the parking to be provided and the public improvements to be completed. 05-29-84 194 Mr. Solvie stated the guest rooms will be 131 feet by 28i feet, which are much larger than most hotel rooms. He also indicated West Oak Street will be improved as a four-lane road; a stop light will be provided at the corner of West Oak Street and North Seventh Avenue; Baxter Lane will be extended west of North Seventh Avenue; and the developers intend to work closely with the City on any public improvements that should be completed. Mr. Taylor stated parking will be provided for approximately 400 cars during the initial construction, with possible expansion of 150 parking spaces in the future. He stated the water I line currently stops at the southern edge of the property. That line will be extended to pro- vide service to the convention/hotel center and will then be run under North Seventh Avenue to connect with the water trunk line which services the Holiday Inn and other establishments in that area. In lieu of transferring water rights to the City for the site, the developer will pay the costs of installing a new well, probably near the Public Library. The developers will also install a traffic light at the intersection of North Seventh Avenue and West Oak Street. which will be constructed as a four-lane roadway. They will also dedicate a 15-foot strip along Oak Street to the City to provide adequate width to complete the improvements, including paving, curb and gutter, and sidewalks. A water detention area, which is to receive approval from the Engineering Officer, will be constructed near the large expanse of the paved parking lot. Commissioner Jordan asked about the actual cost of the proposed convention/hotel center and the funding for that cost. Mr. Solvie stated the project is valued at $8 million, with $4.5 million in IDR bonds and $1 million in UDAG funding to cover a portion of those costs. Commissioner Anderson asked what type of situation the City would face if default occurs on this project. City Manager Wysocki stated that prior to August 1, the City and the developer must develop a repayment schedule. The principal and interest repaid under this program are placed in a separate fund for disbursement by the Commission for other projects which meet the program guidelines. During the recapture period, if default occurs, repayment is negotiated with the new owners and the process continues. The City Manager also noted if a sale occurs prior to I the end of the recapture period, the City and UDAG will receive a proportionate share of the profits received from that sa Ie. He noted the recapture period is usually seven to ten years. Mayor Weaver asked if the City or the taxpayers will face any liability or risk as a consequence of approving this application. City Manager Wysocki stated the project will be personally guaranteed by the principals and will not be backed by taxing powers in any manner. Mr. William J. Sebena, owner of the Lewis and Clark Motel, indicated he had written a letter to the Commissioners concerning this proposed project. He stated most people in the motel business are having a hard time and are fighting high interest rates. He noted the pro- posed site will attract people traveling along 1-90 and will spread the business over a larger area, causing everyone to suffer. He indicated he does not feel the convention center will create additional traffic to Bozeman or increase the business in the area. Mr. Sebena then stated opposition to approval of UDAG funding and I DR bonds to finance the project. He indi- cated if the developers were required to construct the convention/hotel center without financial. aid, the existing hotel owners in Bozeman would be able to compete but will be unable to do so if the aid is approved. Commissioner Anderson asked Mr. Sebena how many rooms he has available for meetings and how many people those rooms could contain. Mr. Sebena stated he has a meeting room which will hold about 60 people, and noted the room has been used several times during the past two years. Commissioner Vant Hull asked if $35.00 for a single room is competitive in Bozeman. I Mr. Sebena stated it is higher, indicating the average room cost is approximately $22.00 to $24.00 per night. He stated the State allows $24.00 for a hotel room, and most hotels attempt to stay slightly below that figure. Mr. Alan Bendz, part owner of the Royal 6 Motel, stated his is a budget hotel which would probably not be affected by the convention center. He stated opposition to the proposal, indicating he feels there are adequate facilities in Bozeman to meet the needs of the area. Mr. Leroy Spain, part owner of the Royal 6 Motel, also indicated opposition to the use of 05-29-84 195 federal funds for the proposed convention center. He indicated he feels the project should be funded through conventional means if it is to be constructed. Mrs. Marilyn Jones, owner of the Imperial 400 Motel, stated the higher airfares into Montana have an effect on the number of conventions held in the state. Also, the lack of popu- lation, even in the larger cities, affects the number of conventions in Montana. Mrs. Jones stated the area needs more meeting rooms and banquet facilities; however the proposed project I seems like another motel similar to what is currently available. She also indicated there are plans on the drawing board for two or three other motels which would like to add banquet and meeting rooms without adding sleeping rooms. Commissioner Vant Hull asked how the $35.00 rate per single person compares to their rates. Mrs. Jones stated the rates are relative. She noted the proposed facility sounds beautifu.l; and the rates may be low if they are set at $35.00. Mr. Bob Spillane, representing the Holiday Inn, stated the average daily rate in his motel is $37.00 to $38.00. He indicated he has no mortgage on the Holiday Inn; and he does not feel the developers will be able to meet the mortgage payments of an $8 million project at the proposed $35.00 rate. He also stated he does not feel a 60 percent occupancy rate during the first year is feasible, but may be after three years of good marketing and promotion. He then indicated the Holiday Inn has two rooms which can be divided into five separate rooms. If the facility is opened up, it can seat 260 persons for a banquet. He also indicated 400 persons can be seated in the pool area, but the acoustics are not good. Commissioner Mathre asked how many conventions Bozeman loses each year because of inadequate facilities. Mr. Spillane stated a study completed in January 1984 indicated Bozeman loses six con- ventions per year because they cannot be accommodated. He indicated other new conventions could be brought into the region if the facilities were available. Mr. Spillane then indicated he has two sales people working locally and one sales person on the road on a full-time basis. Also, I the International Association of Holiday Inns is currently selling Bozeman. Commissioner Jordan asked about the average attendance at conventions. Mr. Spillane indicated the average convention has 75 persons attending. He then stated Bozeman is in a good location for the region and the state, but nationally it is in a poor loca- tion. Mrs. Rose Mary Keenan t part owner of the Royal 6 Motel, asked if the City has been through the UDAG application process in the past. The Commission indicated it has not. City Manager Wysocki stated during the goals assessment process which is currently under- way, the Commission asked three questions, one of which is what the people would like to see the City develop or promote. He stated a number of people indicated a convention center is one item which should be given strong consideration. Other items mentioned were interest in clean industry and maintaining the environment. Mayor Weaver closed the public hearing. Commission Resolution No. 2506 - authorizing submittal of application for UDAG funds City Manager Wysocki presented Commission Resolution No. 2506 t entitled: COMMISSION RESOLUTION NO. 2506 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING SUBMISSION OF AN APPLICATION TO THE UNITED STATES OF AMERICA DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR AN URBAN DEVELOPMENT ACTION GRANT FOR THE FELSKA/ SOLVIE I CONVENTION/HOTEL CENTER. City Manager Wysocki stated the Commission has received one application for Urban Development Action Grant funds to be submitted by May 31, 1984. He stated this Resolution authorizes the submittal of the application for consideration in the UDAG funding process. He indicated the application could be withdrawn after submittal, or the Department of Housing and Urban Development could reject the application during processing of all applications. The City Manager stated if this Resolution is adopted and the application is submitted, the work to be completed between now and August 1 will be time consuming and expensive. He noted the items 05-29-84 198 which will require action prior to the end of July include consideration of an annexation request, Zone Map Change, vacation of a portion of Baxter Lane, Master Plan Amendment, and an Industrial Development Revenue bond issue. He noted the Commission made a decision at last week's meeting to consider annexation requests in the order in which they have been received. Commissioner Anderson asked what elements are considered during review of the appli- cations. I The City Manager indicated elements considered include expansion of the tax base; additional jobs created, especially for low- and moderate-income persons; expansion or diversity of the economy; and providing an element that does not currently exist. Commissioner Vant Hull asked how much this process will cost the City. City Manager Wysocki stated it will cost time and effort to process all of the requests listed above. He noted if the City is successful, those costs may be charged against the administrative portion of the UDAG funding. B rea k - 1 0 : 00 to 1 0 : 05 p. m . Mayor Weaver declared a break at 10:00 p.m., to reconvene at 10:05 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Commission Resolution No. 2506 (continued) - authorizing submittal of application for UDAG funds City Manager Wysocki indicated a copy of the application submitted to HUD will be available in the City Hall for review by the Commissioners prior to consideration of the lOR bonds. He stated that application may answer some of the questions which the Commissioners have expressed. Commissioner Jordan asked if adoption of this Resolution will compel the Commission to approve the IDR bond issue. Mayor Weaver indicated a positive decision on this item will make an implicit statement on I the Commission's decision on the IDR bonds. City Manager Wysocki stated each element stands alone in this process. He indicated the Commission should not feel compelled to make an affirmative decision if the request and presen- tation do not meet the requirements for approval. Commissioner Mathre indicated this public hearing has answered many of the questions she had about the project. Commissioner Jordan noted Industrial Development Revenue bonds are considered private money, but they carry a lower interest rate than conventional loans; and use of UDAG funds represents a substantial savings. He expressed concern that the proposed facility will utilize methods of financing which will save money, and will be competing with facilities which have used conventional methods of financing. Mayor Weaver noted one important question to answer is whether this proposed facility is a convention center or another motel. Commissioner Vant Hull stated without the use of UDAG funding and lOR bonds, nobody would construct the type of facility being proposed. She indicated if the Commission desires this type of facility rather than one with less amenities, it should consider adoption of this Resolution. Mayor Weaver stated quality in Bozeman should be the way of the future. He indicated when the City has an opportunity to encourage quality development, it should do so. He also stated he anticipates public gain through construction of the proposed convention/hotel center. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the I Commission adopt Commission Resolution No. 2506, authorizing submittal of an application for Urban Development Action Grant funds for construction of the Felska/Solvie convention/hotel center and authorizing the City Manager to sign said application. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull. Commissioner Anderson and Mayor Weaver; those voting No being Commissioner Jordan. 05-29-84 197 Continued work session - goals assessment evaluation Due to the length of this meeting, Mayor Weaver requested this item be placed on next week's agenda. Adjournment - 10:25 p.m. There being no further business to come before the Commission at this time, it was moved I by Commissioner Mathre, seconded by Commissioner Anderson, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Anderson, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. KENNETH L. WEAVER, Mayor ATTEST: Clerk of the Commission I I 05-29-84