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HomeMy WebLinkAbout1984-06-18 21Lt MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA June 18, 1984 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, June 18, 1984, at 4:00 p.m. Present were Mayor Weaver, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager I Wysocki, Assistant City Manager Barrick, City Attorney Crumbaker-Smith and Clerk of the Commission Sull ivan. The meeting was opened with the Pledge of Allegiance and a moment of si lence. The minutes of the regular meeting of June 11, 1984 were approved as submitted. 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 proclamation for Sheriff's Posse Week be removed for discussion. Decision - CondiUonal Use Permit - Clair Daines - allow an residences on a tract 0 land in the SE , ection 24, 2 , Ave- nue from Figgins Addition} - Westfield Annexation This was the time and place set for the decision on the Conditional Use Permit requested by Clair Daines to allow an 80-lot Planned Unit Development for single-family residences on a tract of land in the Southeast One-Quarter of Section 24, Township 2 South, Range 5 East, Montana Principal Meridian. This site is more commonly known as being located across South Third Avenue from Figgins Addition. City Manager Wysocki stated the public hearing on this Conditional Use Permit had been conducted on March 19, 1984; and the Zoning Commission had recommended approval subject to nine conditions. He then recommended that the Commission approve this Conditional Use Permit I subject to the recommended conditions. Commissioner Vant Hull noted the public hearing included discussion on whether one or three storm drainage ponds should be installed. She asked if that issue has been resolved. City Manager Wysocki noted that item will be covered in the final plat, which must be submitted prior to construction of any improvements. The City Manager then noted one of the items to be required for this subdivision is completion of the design for a sidewalk or walkway along South Third Avenue between Graf Street and Kagy Boulevard, which is to be completed by Mr. Daines. He indicated that item is covered in the conditions for Preliminary Plat approval. Commissioner Mathre noted one of the conditions to be attached to some portion of this development is the requirement for a waiver of protest of a Special Improvement District for construction of a sidewalk along South Third Avenue between Graf Street and Kagy Boulevard. City Manager Wysocki stated that item is also covered in the conditions for the Pre- liminary Plat approval. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission approve the Conditional Use Permit requested by Clair Daines to allow an 80-lot Planned Unit Development for single-family residences on a tract of land in the Southeast One-Quarter of Section 24, Township 2 South, Range 5 East, Montana Principal Meridian, subject to the following conditions: 1. That the City staff re-evaluate the accesses onto Wagon Wheel Road. 2. That a detailed site plan be submitted which will provide the following I information: a. A plant legend which will provide the plants' common names, planted sizes, mature sizes and quantity to be planted. The location of the plants should be shown on the site plan. b. Lawn irrigation plans for the common open space area. c. Exterior lighting plan for the proposed private streets and pedes- trian walkways. 06-18-84 215 d. Improvement plans to provide for improved surfaces for all walkways within the proposed development. e. Locations of clustered mailboxes as approved by the Postal Office. f. An approved typical section of the private streets within the pro- posed development. g. The storm drainage plan as approved by the City Engineering Offi- I cer. h. Use Allocation and Density Distribution tables as required in Chapter 18.75.050-9. 3. That a tot lot be developed at the Westfield park location. 4. That the boundaries of the Planned Unit Development correspond with the annexation request. 5. That a final draft of the protective covenants and association by-laws be reviewed by the Planning Staff and approved by the Bozeman Zoning Commission. 6. That three (3) copies of a final site plan containing all conditions, cor- rections and modifications recommended and approved by the City Com- mission shall be reviewed and approved by the Planning Director prior to the issuance of a building permit for the project. One (1) signed copy shall be retained by the Planning Director; one (1) signed copy shall be retained by the Building Department; and one (1) signed copy shall be retained by the applicant. 7. All Improvements Agreement requirements for the Planned Unit Develop- ment will need to be met through the Improvements Agreement developed for the subdivision of the property. 8. That the Planned Unit Development approval is contingent on resolution of the annexation of the area. 9. That the Planned Unit Development approval is contingent on subdivision approval. I 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. Bozeman American Le ion Baseball Pro ram; possi City Manager Wysocki presented to the Commission a request submitted by the Bozeman American Legion Baseball Commission for authorization to acquire an electronic scoreboard and possibly install that sign at the Softball Complex. Mr. Larry Moran, representing the Bozeman American Legion Baseball Commission, stated the Pioneer League baseball team in Bi lIings has installed a new electronic scoreboard; and the American Legion Baseball can acquire their old electronic scoreboard with the only costs to be incurred for relocation and installation of the sign. He indicated the sign is approximately 10 feet by 15 feet in size and would be installed on City property at the south end of the complex. City Manager Wysocki noted there have been discussions about the possible relocation of the American Legion ballfields. He also noted one of the larger expenses involved in this proposal would be installation of a primary electrical cable to the sign. He then suggested that the Commission encourage that the American Legion Baseball Commission acquire the sign, and that the City provide a storage area for the sign until a final determination on the location of the ballfields is made. Mr. Moran indicated he has heard rumors about possible relocation of the American Legion I ballfields. He noted the American Legion will be unablj:! to install the sign this season and indicated; however, if they wish to obtain the sign, they must remove it from its present Billings location in the near future. Commissioner Vant Hull suggested that the Recreation Advisory Board review the possible location of the electronic scoreboard prior to installation. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission urge the Bozeman American Legion Baseball Commission to acquire the electronic scoreboard from the Pioneer League baseball team in Billings; provide storage in a City facility 06-18-84 215 . until the scoreboard is installed; and consider approval of placement of the sign on City park property after review by the Recreation Advisory Board. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Com- missioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. . Discussion - amendment to agreement for Northeast Sewer Trunk Line - William J. Sebena City Manager Wysocki presented to the Commission a proposed amendment to the agreement I between the City and Wi lIiam J. Sebena dated July 29, 1983 for the Northeast Sewer Trunk Line. The City Manager then indicated this item is presented for discussion only at this time and will be submitted for review and action at a future meeting. The City Manager then stated the proposed amendment would address questions concerning design, construction and financing of the sewer line. He noted the amendment provides that the sewer line would be maintained in private ownership for a period of six years, with a potential three-year extension. Also, it would provide that the City would act as a clearing- house for all payments made to hook onto the sewer line. City Manager Wysocki then suggested that the Commission consider the possibility of sending a letter to the State suggesting that Phases I and I I be released for construction and that the design for Phase I" be ~ndertaken. He noted Phase I begins at North Rouse Avenue and ends at the lift station in Phase I of the Platinum Subdivision; Phase I I begins at that lift station and ends at a lift station just west of L Street; ~nd Phase I I I begins at that lift station and ends in Story Hills. Mayor Weaver stated it is important to note that approval of Phases I and II does not provide automatic approval for Phase I I I. Mr. John Schunke, Morrison-Maierle, stated he was representing Mr. William J. Sebena. He indicated acceptance of the suggestion submitted by the City Manager regarding construction of the sewer trunk line. He also indicated Mr. Sebena realizes that approval of Phases I and II does not provide automatic approval for Phase I I I . He then stated he is working with the Water Quality Bureau in an effort to resolve problems created by possible contamination in the area I through which the sewer line is proposed. Commissioner Vant Hull noted Mr. Sebena had submitted a packet of information to the Commission a few weeks ago; and one of the statements in that information indicated that he could construct the sanitary sewer trunk line at a fraction of the cost that would be incurred through an SID. She also asked if an administrative fee, like that charged for an SI D, should be included in the proposed amendment. City Manager Wysocki stated the City is requesting that all financial transactions be through the City to provide a record of all costs and revenues involved in the project. He indicated he does not feel an administrative charge 'should be attached because this method is in the City's best interests. Also, this issue is not parallel to an SID because no bond debt service is involved. The City Manager indicated this item will be placed on the agenda in two weeks for further review and possible action. Authorization to transfer monies to and from the SID Revolving Fund City Manager Wysocki presented to the Commission a memo from Director of Finance Swan requesting authorization to transfer monies to and from the Special Improvement District Revolving Fund as follows: To SID Revolving Fund SID No. Amount 428 $2,222.14 I 432 11 ,054.34 434 605.09 TOTAL $13,881.57 06-18-84 211 From SID Revolving Fund SID No. Amount 427 $ 207.65 433 177.14 612 604.52 TOTAL $ 989.31 I The City Manager recommended approval of the requested transfers to and from the SID Revolving Fund. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Com- mission authorize and direct the Director of Finance to transfer monies to and from the Special Improvement District Revolving Fund as listed above. 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. Zone Code to allow bars, taverns and cocktail loun es as a Con- -3 zoning districts City Manager Wysocki presented Ordinance No. 1162, as prepared by the City Attorney, entitled: ORDINANCE NO. 1162 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY .OF BOZEMAN, MONT ANA, AMENDING SECTIONS 18.30.020, 18.32.020 AND 18.52.140 OF THE BOZEMAN MUNICIPAL CODE, BY REMOVING BARS, TAVERNS AND COCKTAIL LOUNGES FROM THE LIST OF PERMITTED USES AND ADDING THEM TO THE LIST OF CONDITIONAL USES IN BOTH THE B-2 AND B-3 ZONES IN THE CITY OF BOZEMAN, MONTANA. The City Manager stated the Commission had approved this Zone Code Amendment at its regular meeting held on May 29, 1984. He then recommended that the Commission provisionally I adopt the Ordinance and that it be brought back in two weeks for final adoption. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commis- sion provisionally adopt Ordinance No. 1162, amending the Bozeman Municipal Code to provide for bars, taverns and cocktail lounges as a conditional use only in the B-2 and 8-3 Zoning Districts, 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 Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. Ordinance No. 1163 - Amend Section 2.56.010 of Bozeman Municipal Code re Library Board of Trustees City Manager Wysocki presented Ordinance No. 1163, as prepared by the City Attorney, entitled: ORDINANCE NO. 1163 AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTIO~I 2.56.010 OF THE BOZEMAN MUNICIPAL CODE, ENTITLED APPOINTMENT- COMPOSITION AND ORGANIZATION-POWERS AND DUTIES. The City Manager stated the Commission had approved the amendment to the Bozeman Municipal Code at the meeting held on June 4, 1984. He then recommended that the Commission provisionally adopt the Ordinance and that it be brought back in two weeks for final adoption. Commissioner Anderson asked if the method of appointment to the Library Board of I Trustees is in compl iance with Commission policy established. City Attorney Crumbaker-Smith stated the State Statute provides that the Mayor or possibly the City Manager appoint the members of the Library Board of Trustees with the concurrence of the City Commission. She indicated she had prepared the Ordinance to provide for the Mayor's appointment, with the concurrence of the Commission. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission provisionally adopt Ordinance No. 1163, amending Section 2.56.010 of the Bozeman Municipal Code regarding the Library Board of Trustees, and that it be brought back in two 06-18-84 . 218 weeks for final adoption. 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. Proclamation - "Sheriff's Posse Week" - June 24-30, 1984 City Manager Wysocki stated Commissioner Mathre had requested that this item be removed from the Consent Items. I Commissioner Mathre noted the proclamation includes a statement that the community be encouraged to support efforts to raise funds. She indicated concern that adoption of this proclamation might commit City funds to the project. City Manager Wysocki stated approval of this proclamation will not indicate any financial support by the City of Bozeman. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission concur in the Mayor's proclamation of June 24-30, 1984 as "Sheriff's Posse Week" in the City of Bozeman. 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. Discussion - FYI items City Manager Wysocki presented the following "For Your Information" items to the Commission: (1) Minutes of the Board of Directors of the Montana League of Cities and Towns meeting held on June 12, 1984, as prepared by Commissioner Mathre. (2) A memo from Commissioner Vant Hull suggesting that a thank you letter be sent to the unsuccessful applicants for the Housing Committee. Mayor Weaver requested that Commissioner Vant Hull draft a letter to the unsuccess- ful applicants. (3) A memo from Commissioner Vant Hull, accompanied by a letter from Wally Eater, regard- I ing the stream bank along Woodbrook Planned Unit Development. (4) Weekly construction reports submitted by Thomas, Dean and Hoskins, I nc. Consent Items a.m. 1984, It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the I Commission approve the Consent Items as presented, 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, Commissioner Jordan and Mayor Weaver; those voting No, none. Continued work session - goals assessment evaluation Mayor Weaver stated the Commission has completed prioritization of the budgetary goals 06-18-84 219 and policies; and the list of items to be considered during the Fiscal Year 1984-85 budgeting process has been forwarded to the City Manager. Commissioner Mathre noted the City is currently doing most of the items listed under the continuing goals and policies. She noted if the current actions are not adequate. the Commis- sion should emphasize additional action on those items. The following list of items requiring additional emphasis was then prepared: I CONTINUING GOALS AND POLICIES REQUIRING ADDITIONAL EMPHASIS 1. Community Development c. Promote tourism. d. Maintain downtown Bozeman. 2. Transportation a. Traffic Master Plan. b. Development to be self-supporting. c. Main Mall traffic safety. d. Improve traffic flow. e. Alternative truck route. f. Review of residential development road standards. g. Pavi ng streets. h. Encourage development of sidewalks to be located in areas where needed. 3. Utilities a. Solid waste management--Iandfill. b. Sol id waste management--garbage collection. d. Development to be self-supporting. 4. Governmental operations g. Community input meetings; community relations; and citizens I advisory committees. 6. Other b. Hazardous materials legislation. c. Better communication among Commissioners. Break - 5:00 to 5:10 p.m. Mayor Weaver declared a break at 5:00 p.m., to reconvene at 5:10 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Continued work session (continued)- goals assessment evaluation The Commission prepared expanded action statements for the above-listed items, as follows: 1. Community Development c. Promote tourism. II .. . .. promote tourism through cooperation with other agencies; pursue more identification of Bozeman on the westbound 1-90 road signs. II d. Maintain downtown Bozeman. II ..... explore all mechanisms for funding of downtown improvements. II 2. Transportation d. Improve traffic flow. II . . . .. evaluate entire Transportation Plan, particularly I bicycle paths and one-way streets. II g. Paving streets. II . . . .. evaluate mechanisms for paving of unpaved north side streets. II h. Encourage development of sidewalks to be located in areas where needed. II ..... review sidewalk policy from the public safety standpoint and consider requiring installation of new sidewalks, particularly along arterials. II 06-18-84 ---- 22G Recess - 6:05 p.m. Mayor Weaver declared a recess at 6:05 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearings. Reconvene - 7:00 p.m. Mayor Weaver reconvened the meeting at 7: 00 p. m. for the purpose of conducting the scheduled public hearings. I This was the time and place set for the public hearing on the Conditional Use Permit requested by Ken LeClair to allow construction of seventeen townhouse units in Block 4 of Thompson's Fourth Addition. This project is more commonly known as Phase IV of the Wood- brook Planned Unit Development. Mayor Weaver opened the public hearing. Senior Planner Mike Money presented the Staff Report. He noted this application re- places the original plans for Phase IV of Woodbrook, which included professional office space. The Senior Planner indicated that three units in this phase will not be allowed to have decks because they would fall within the 35-foot setback from streambanks. He also noted the Zoning Commission has recommended that sidewalks be required along Hoffman Street and South Tracy Avenue along the project. He noted the Woodbrook PUD covers the entire area and indicated this would be the only section of sidewalk required for the entire project. Senior Planner Money then stated the Zoning Commission has recommended approval of the Conditional Use Permit, subject to fifteen conditions. Commissioner Vant Hull asked if the applicant could apply to the Board of Adjustment for a variance to the 35-foot setback from streamban ks to allow decks on the three units. The Senior Planner indicated that the Board of Adjustment is the only body which may grant a variance to the Zone Code; and the applicant could submit a request for a variance if I he so desi res. Mayor Weaver noted the required section of sidewalk will not connect to any existing sidewalk at this time and suggested that the Commission may wish to address this item in view of its recently-adopted policy to require sidewalks in all new developments. Senior Planner Money noted that sidewalks provide for pedestrian traffic and circulation and for the safety of children. He stated several developers have questioned whether sidewalks should be required when they only run from property line to property line. He then suggested that a sidewalk plan for the entire city might be beneficial when considering the various individual requests. He noted the existing or proposed density could be considered during development of a plan. The Senior Planner then stated the developer has been willing to work with the Planning Staff through the various phases of this PUD. He indicated the Planning Staff feels this total project is a nice addition to the city; and they use it as a model when showing people the community. Mr. Corbin Ross, Architect representing Mr. LeClair, stated the applicant is willing to accept Condition Nos. 3 through 15 as recommended by the Zoning Commission. He indicated the applicant does not feel that Condition No.1, concerning decks and patios within the 35-foot setback from streambanks, and Condition No.2, concerning installation of sidewalks, should be imposed on this phase of the PUD. Mr. Ross noted this phase has been approved through the Conditional Use Permit process, but has been changed from containing twelve townhouse units and two commercial buildings to I contain seventeen townhouse units. He stated this project was started several years ago, and he feels this phase should be grandfathered in rather than required to meet the 35-foot setback from streambanks. City Attorney Crumbaker-Smith stated the Board of Adjustment is the only body which may consider a variance to the Zone Code. She noted this item must be presented to them for consideration, not the City Commission. 06-18-84 221 Mr. Ross then stated he feels the requirement for installation of sidewalks should not be imposed on this phase of the PUD, but that it should be grandfathered in. He once again noted construction of the project was started several years ago; and the requirement for installation of sidewalk has not been imposed on any of the first three phases. He stated if a city-wide requirement for installation of sidewalks is imposed, the developer is wi IIing to install the sidewalks at that time. I Commissioner Jordan indicated that no other developer has been required to install side- walks in that immediate area and suggested that the Commission may consider waiving this re- quirement. He then suggested that if the Commission decides not to require sidewalks at this time, it may wish to require a waiver of protest of an SID for installation of sidewalks in the future. Mayor Weaver noted the Commission may wish to consider eliminating the recommended condition which requires installation of sidewalks on this appl ication only. Mr. Ken LeClair was present and asked what steps remain for this phase of the PUD. Senior Planner Mike Money answered his questions, indicating that the Preliminary Plat must be approved prior to installation of footings and foundations or issuance of any building permits. No one was present to speak in opposition to the requested Conditional Use Permit. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Public hearing - Conditional Use Permit - Audie Collins - allow construction of an auto and service repair business on Lot 25C, Amended Plat of Lot 25 of Gordon Mandeville State School Section Subdivision (northeast corner of intersection of Lea Avenue and Griffin Drive) This was the time and place set for the public hearing on the Conditional Use Permit requested by Audie Collins to allow construction of an automobile and service repair business on Lot 25C, Amended Plat of Lot 25 of the Gordon Mandevi lie State School Section Subdivision. This site is more commonly located at the northeast corner of the intersection of Lea Avenue I and Griffin Drive. Mayor Weaver opened the public hearing. Senior Planner Mike Money presented the Staff Report. He stated the applicant proposes to construct a 40-foot by 75-foot building on the site, with parking on the north and south portions of the lot. He indicated the Zoning Commission reviewed the application and recom- mended approval, subject to twelve conditions. Commissioner Anderson asked if the concerns about waste disposal have been resolved. The Senior Planner stated if the wastes generated from this operation do not meet the guidelines established in the sewer rules and regulations, the applicant must install a disposal system approved by the City. Mr. Lowell Springer, Architect representing the appl icant, stated he has reviewed all of the proposed conditions and agrees to those conditions. No one was present to speak in opposition to the requested Conditional Use Permit. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. - Zone Code Amendment - amend Section 18.52.140 of the Bozeman Municipal Code esidentla aCllitles as a conditional use In a This was the time and place set for the public hearing on the Zone Code Amendment to amend Section 18.52.140 of the Bozeman Municipal Code to add Community Residential Facilities as a conditional use in all residential zones designated A-S through R-O. Mayor Weaver opened the public hearing. I Planning Director Steve Lere presented the Staff Report. He stated the State Statutes provide the following definition of "community residential facilities:" a. A group, foster, or other home specifically provided as a place of residence for develop- mentally disabled or handicapped persons who do not require nursing care. b. A youth group home as defined in Section 41-3-1102, M.C.A. c. A halfway house operated in accordance with the regulations of the Department of Health and Environmental Sciences for the rehabilitation of alcoholics or drug dependent persons. 06-18-84 222 d. A licensed adult foster family care home. The Planning Director stated that at the present time, the Zone Code does not provide for these facilities in any zone; but the State Statute provides that they be allowed through the conditional use process. He stated that, following review of the proposed Zone Code Amendment, the Zoning Commission unanimously recommended approval. No one was present to speak in support of or in opposition to the proposed Zone Code Amendment. I Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Public hearin - Commission Resolution No. 2499 - intent to create SID No. 646 - sanitary sewer and water main - North eventh nnexation This was the time and place set for the public hearing on Commission Resolution No. 2499, entitled: COMMISSION RESOLUTION NO. 2499 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN TO CREATE A SPECIAL IMPROVEMENT DISTRICT NO. 646 FOR THE PURPOSE OF CONSTRUCTION AND INSTALLATION OF A SANITARY SEWER AND WATER MAIN TO SERVE THE ADJOINING PROPERTIES, MORE SPECIFICALLY DESCRIBED AS FOLLOWS: AN 8-INCH WATER MAIN AND APPURTENANCES AND AN 8-INCH SANITARY SEWER AND APPURTENANCES. THE CONSTRUCTION AND INSTALLATION OF THE SANITARY SEWER AND WATER MAIN TO INCLUDE ALL TRENCH EXCAVATION AND BACKFILL, BEDDING MATERIAL, SANITARY SEWER LINES, DUCTILE IRON WATER MAIN, MANHOLES, VALVES, FITTINGS, HYDRANTS, SERVICE LINE STUBS AND OTHER NECESSARY APPURTENANCES. Mayor Weaver opened the public hearing. No one was present to speak in support of or in opposition to the intention to create Special Improvement District No. 646, for the purpose of construction and installation of sanitary sewer and water mains in the North Seventh Annexation. No written protests have I been received on this proposed SID. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Public hearing - Commission Resolution No. 2501 - proposed issuance of IDR bonds for Felska/ Solvie Convention/ Hotel Center This was the time and place set for the public hearing on Commission Resolution No. 2501, entitled: COMMISSION RESOLUTION NO. 2501 A RESOLUTION PROVIDING FOR THE GIVING OF NOTICE OF A PUBLIC HEARING ON THE PROPOSED ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF INDUSTRIAL DEVELOPMENT REVENUE BONDS IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $8,000,000.00 FOR FELSKA/SOLVIE, A MONTANA CORPORATION, FOR THE PURPOSE OF ACQUIRING LAND FOR, DEVELOPING, CONSTRUCTING, IMPROVING, EQUIPPING AND FURNISHING A HOTEL AND CONVENTION CENTER FACILITY. Mayor Weaver opened the public hearing. City Manager Wysocki presented to the Commission a copy of the I ndustrial Development Revenue Bond evaluation format for review; a letter from Laventhol and Horwath, CPA's, dated December 6, 1983, on the preliminary findings for Phase I of the project; and a letter of support for the project from Mr. C. C. Westlake. Mr. Audie Solvie, applicant from Whitefish, Montana, representing Felska/Solvie, sub- mitted the presentation on the proposed convention/hotel center. He noted the motel would I have a capacity for 160 rooms, with 120 of the rooms being totally completed and the remaining 40 rooms being completed when the need arises. Also, a large area which will seat 600 persons for banquets will be constructed in the convention center area. Several permanently con- structed meeting rooms, with a total capacity of 100 to 150 people wi II be bui It in a town square atmosphere. A multi-level 13,000- to 14,000-square-foot atrium area containing a swimming pool, jacuzzi and landscaping will be located in the center of the complex. A restaurant which will comfortably seat 125 people will be constructed on the third level, with a lounge area 06-18-84 223 adjacent to it which will accommodate the same number of people. A music area with a small dance floor overlooking the atrium area will also be provided on the same level. Mr. Solvie stated the proposed convention/hotel center will be constructed on 10.81 acres and will have ample parking spaces to meet the zoning requirements. Also, a landscaped area with leisure areas and jogging paths wi II be constructed, as well as an outdoor tennis court. He indicated they hope to construct an indoor recreational facility when the need warrants such I development. Mr. Solvie then stated the estimated cost of the initial construction is $8 million. Mr. Solvie then stated the application submitted for I ndustrial Development Revenue bonds is in the amount of $8 million, and requested that the amount be revised to $6,750,000.00. He noted the remaining ten to fifteen percent of the money for construction would come from private sources, including limited partners from this area. He also noted the application for $1 million in Urban Development Action Grant monies has been submitted; and a decision on that funding will be made by August 1, 1984. Mr. Solvie then stated a total negative cash flow of $500,000.00 to $750,000.00 is ex- pected during the first three years of operation. He noted the firm of Laventhol and Horwath, CPA's from Denver, Colorado, has completed the feasibility study on this project. He stated one of the employees in the Seattle office spent three days in Bozeman completing an indepth study of the market and existing facilities prior to issuance of the report. He noted that report indicates that a convention/hotel center with guest rooms above the norm is what is needed in Bozeman; and stated that is what they propose to construct. Mr. Solvie noted the report indicates three percent of the present hotel facilities are now being used for conventions and group gatherings; and that the number of conventions is anticipated to increase to three times the current number in the next three years. Mr. Solvie then stated the applicants are aware of the administrative charge which the City has adopted for all lOR bond issues. Commissioner Vant Hull noted the letter from Laventhol and Horwath refers to a proposed hotel only. She also noted the proposed atrium area is not discussed in the letter. The I Commissioner also noted not all of the available hotel and motel rooms in Bozeman are included in the list in the report. Mr. Solvie stated the letter refers to generalities only. He indicated the applicants mentioned the atrium area to Laventhol and Horwath; and the company indicated that would increase the marketability of the facility. Mr. Solvie then stated the company must have used only selected motels in the study. The applicant then stated the greatest competition for the convention/hotel center will not come from existing hotels and motels in Bozeman, but from the larger and better hotels in other cities in Montana, such as Great Falls, Missoula, Helena and Bill ings. He noted con- struction of the convention/hotel center should draw more people to this area for overnight accommodations. City Manager Wysocki noted the letter from Laventhol and Horwath refers to preliminary findings for Phase I. He asked how many phases are involved and what is the current status of the feasibility study. Mr. Solvie stated Phase I concerns the feasibility, Phase II concerns the projected cash flow, and Phase I I I is the synopsis of the study. He noted Phases I and I I have been completed; and Phase III will not be completed until the final arrangements for financial backing are being completed. City Manager Wysocki then stated that he will recommend to the Commission that if the requested I DR bond issue is approved, the approval be for a one-year period only. He noted if the project is not completed at that time, the entire process must be completed once again. I Commissioner Jordan noted that in the third year, the report lists an anticipated 9 percent of the project's business to be for conventions. He noted the reason for wanting this type of facility is to promote the convention business; and stated he does not want the new facility to become a replacement for existing motels to the tourists and commercial travelers. The Commissioner then stated the Billings Sheraton indicates 11 to 13 percent of its business is for conventions, with only about ten conventions each year having more than 200 people. He indicated the Outlaw Inn in Kalispell indicates 10 percent of its business being for conventions, with about six conventions having over 200 people. He also stated the motels indicated that 06-18-84 224 about 90 percent of the conventions have less than 100 people. The Commissioner expressed concern that the amount of new convention business generated by the proposed convention/motel center would not offset the costs involved. Commissioner Jordan then stated there are actually 954 motel rooms available rather than the 815 rooms listed in the report; and he feels that difference in the number of rooms could have an immediate effect on the viability of the pro- posed faci Iity. Mr. Solvie stated competition helps businesses in an area. He also stated business creates business; and he feels construction of a convention/hotel center in Bozeman will help I the community. Mayor Weaver asked if any bond counsel is present. He indicated he would like a professional evaluation of the financial soundness of the proposed project prior to making a decision on this request. Mr. Solvie indicated no bond counsel is present. He stated the developers are currently working with three different firms and do not wish to select a single firm at this time. He noted the developers have worked with D.A. Davidson in the past and have worked with them on th is project. The applicant noted reputable bonding firms do not consider sale of bonds for a project which they do not consider financially sound. Mayor Weaver noted Industrial Development Revenue Bonds are not backed by the City's full faith and credit. He then asked if there has been any case in which the taxpayers of a community have been assessed to help pay for a project which has defaulted under IDR financing. City Attorney Crumbaker-Smith stated that if the owners default on a project under lOR bond financing as set forth in the loan agreement, the defaults are made a part of the mortgage on the property. She noted neither the City's full faith and credit nor the amount of taxes assessed by the City would be affected by such a default. Break - 8:30 to 8:40 p.m. Mayor Weaver declared a break at 8:30 p.m., to reconvene at 8:40 p.m., in accordance I with Commission policy established at their meeting of March 14, 1983. No. 2501 - proposed issuance of lOR bonds Mr. William J. Sebena, owner of the Lewis and Clark Motel. stated he does not feel the project is financially sound. He noted the interest payments alone on $8 million will cost almost $1 million annually based on 12 percent, which is well below current interest rates. Mr. Sam Kimbrell, representing himself, submitted a presentation on an analysis of the tourist industry in Montana, based on 1982 statistics from the State of Montana Department of Commerce. He noted that the Gallatin Valley ranks No. 2 in the state in the tourist industry, but Bozeman is tied for No. 5 out of the six large cities for conventions and meetings, behind Bi llings, Missoula, Great Falls, Kalispell and Helena. He indicated that Gallatin County receives approximately 12.7 percent of the nearly $1 billion generated by the hospitality industry in Montana, and reviewed the distribution of those monies among the various types of businesses involved. Mr. Kimbrell noted this area has a natural beauty which attracts people but does not attract conventions because there is a lack of facilities for more than 100 people. He noted there are adequate facilities for conventions with 50 to 100 people, but there are few of those conventions held in Bozeman at the present time. Mr. Kimbrell noted there are approximately 2,000 conventions with 50 or more people held each year in Montana, excluding one-time and out-of-state groups. He indicated Bozeman should be able to attract many of those conventions. Mr. Kimbrell then noted the competition in Bozeman is not between the existing hotels I and motels in the area, but is with the Sheraton in Billings, the Red Lion in Missoula and the Outlaw Inn in Kalispell. He indicated appreciation for the feelings of other motel owners in Bozeman, but noted statistics indicate that with increased competition, the market increases to offset the opening of the new facility. He also noted the construction of a new facility causes other facilities to upgrade; and it will stimulate economic growth. He also noted the UDAG funding would provide a tremendous amount of potential to the City. 06-18-84 225 Sam Kimbrell stated the tourism industry in the United States will increase. He also noted the convention business is more stable than the tourist industry; and those attending conventions usually spend more money in a community than tourists. Mr. Kimbrell then stated the proposed convention center is not perfect, but it is good. He also noted the men submitting the proposal are creditable and have a long history of successful development. I Commissioner Anderson asked how many 500-people conventions are turned down each year in Bozeman. Mr. Kimbrell stated there are probably no conventions turned down at this time because the large corporations are aware that no convention facilities exist in Bozeman. He also noted good private facilities should be constructed now because Montana State University is beginning to organize its facilities to provide for banquets and wi II become highly competitive in the tourism industry. Mr. William Sebena asked how much out-of-pocket money the developers plan to invest in this project. He once again noted the project is not financially feasible. Mr. Sebena then stated there is an over-building of motel units in this area compared to the amount of business available and noted the average occupancy rate is about 50 percent. He indicated the area has sufficient convention facilities at the present time and stated if additional convention facilities seemed feasible, one of the local businessmen would have constructed such a facility. Mr. Sebena also noted the proposed convention/hotel center would contain a restaurant, which would compete with the existing restaurants in Bozeman and noted that in less than five months, four restaurants have filed bankruptcy. He stated public monies will be utilized for construction of the new facility, which will create a depressed market for existing hotels and restaurants in the area, and stated he feels that is unfair to everyone in the business, in- cluding himself. Commissioner Vant Hull asked Mr. Sebena if there has been an increase in the amount of tourism in Bozeman or in the occupancy rate. I Mr. Sebena stated there has not been an appreciable difference in tourism in the area for several years. He noted more motel facilities have been constructed in the past few years, but the occupancy rate has remained basically the same. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Commission Resolution No. 2508 - inducement resolution for I DR bond issue for Felska/Solvie Convention/Motel Center City Manager presented Commission Resolution No. 2508, as reviewed by the City Attorney t entitled: COMMISSION RESOLUTION NO. 2508 RESOLUTION RELATING TO A PROJECT AND REVENUE BONDS UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED; APPROVING AND AUTHORIZING THE FELSKA/SOLVIE PROJECT, AND THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS THEREFOR. The City Manager recommended that, since public protest was received during the above hearing and the decision was deferred for a period of one week, the Commission defer action on this item as well. Mayor Weaver requested that this item be placed on next week's agenda for action. Adjournment - 9:35 p.m. There being no further business to come before the Commission at this time, it was moved I by Commissioner Vant Hull, seconded by Commissioner Anderson t that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Anderson and Mayor Weaver; those voting No, none. KENNETH L. WEAVER, Mayor ATTEST: Clerk of the Commission 06-18--84