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HomeMy WebLinkAbout1984-12-03 449 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA December 3, 1984 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, I Municipal Building, December 3, 1984, at 4:00 p.m. Present were Mayor Weaver, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki, 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 November 26, 1984, were approved as amended. None of the Commissioners requested that any of the Consent Items be removed for discussion. Open Water System 1m II-B (2 mg water stora e tank and trun This was the time and place set for the opening of the bids on the Water System Im- provements, Project Group II-B, consisting of the two million gallon water storage tank and a trunk main. The affidavit of publication for the "Call for Bids" was presented. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the bids for Group II-B of the Water System Improvements be opened and read. 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. The following bids were then opened and read aloud. Total Base Bid I Engineer's Estimate $513,515.00 Advance Tank and Construction Company Cheyenne, Wyoming License No. 5839A $528,153.00 Brown-Minneapolis Tank Spokane, Washington License No. 58198 $466,682.75 Hydrostorage, Inc. ,Des Moines, Iowa No Bid Na-Con Services, Inc. Plainfield, Illinois License No. 6190A $441,066.00 Rockford Corporation Anchorage, Alaska License No. 5134A $519,000.00 It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the bids be referred to staff for review and a recommendation to be submitted in one week. 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. I Decision - Zone Map Change - RS-l to R-l - Bach Enterprises - Tract SW! of Section 32, Tl S, R6E, MPM (alon south side of Srid er Drive, 1500 eet east 0 tory I oa This was the time and place set for the decision on the Zone Map Change requested by Bach Enterprises to change the present zoning of RS-l to R-l on Tract 1-B of Certificate of Survey No. 115-A, located in the southwest one-quarter of Section 32, Township 1 South, Range 6 East, Montana Principal Meridian. This parcel is more commonly located along the south side of Bridger Drive, beginning approximately 1500 feet east of Story Mill Road. . 12-03-84 45U City Manager Wysocki stated that at last week's meeting, the Commission tabled action for a period of one week to allow the staff an opportunity to review the information received during the public hearing. He then submitted to the Commission a memo addressing the twelve zoning criteria recited in Lowe v. City of Missoula. Commissioner Mathre noted the Commission has received a petition stating protest to the requested Zone Map Change. She stated the petition has not been verified to determine if it meets the 20-percent provision in the State Statute which requires a super majority vote. She I then suggested that the petition be verified prior to action by the Commission, to determine if the super majority vote applies in this instance. Commissioner Vant Hull stated one of the major problems is the shallow water table and the rising surface water, mostly during the spring. She stated one must consider the general health, safety and welfare of the general community and that particular area, as well as the concerns about groundwater contamination. She then expressed concern about the zoning remaining RS-1, which will allow a well and septic tank on each one-acre tract, because of the potential groundwater problems. The Commissioner indicated she feels a IITII designation should be added to the R-l zoning requested, which would provide for Commission review of any proposed development to protect the area from shallow flooding and the potential groundwater contamination. City Manager Wysocki noted that the Commissioners had received a packet of information from the appl icants over the weekend. He expressed concern that the City staff has not had an opportunity to review that information and suggested that if the Commission plans to use that information in its decision-making process, action be deferred for a period of one week to allow the staff an opportunity to review the information and respond as necessary. Commissioner Anderson asked if a mobile home court would be allowed in the RS-l zoning. Planning Director Steve Lere stated the RS-1 zoning allows single-family lots, on which a mobile home may be placed if it meets the requirements established by ordinance. He noted those requests are reviewed by the Building Official; and he issues a permit if all requirements are met. I Commissioner Mathre stated she feels the Commission should determine whether it wishes to consider the petition of protest during the decision-making process. She noted the State Legislature has provided for the super majority vote, recognizing that the adjacent property owners should be considered during this process. Commissioner Anderson stated concurrence in Commissioner Mathre1s statement. Commissioner Jordan ,stated he feels the petition should have been verified prior to this time if it were to be considered during the decision-making process. Mayor Weaver stated the petition indicates those who are opposed to the requested Zone Map Change. He then indicated he does not support deferral of the decision to determine whether the petition meets the requirements of the State Statute. It was moved by Commissioner Mathre, seconded by Commissioner Anderson, that the City Attorney be authorized and directed to determine whether the petition submitted meets the 20 percent protest requirement stipulated in the State Statute, prior to the Commission making a decision on this matter. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Mathre and Commissioner Anderson; those voting No being Commissioner Vant Hull, Commissioner Commissioner Jordan and Mayor Weaver. Commissioner Vant Hull then suggested that the zoning on the subject parcel be changed from RS-l to R-l- T, allowing the Commission an opportunity to review all proposed development of the site. Commissioner Mathre stated one of her concerns is the propriety of encouraging urban density beyond the city limits. She stated the request for annexation of this tract and the I adjoining tract have been discussed; and this site does not meet the annexation criteria es- tablished. She noted that the County is not prepared to take care of urban densities. The Commissioner also noted concerns have been raised about the groundwater level; and stated she does not support rezoning of the property. Commissioner Vant Hull stated the Commission must consider the welfare and the future of residents in the area. She questioned if the installation of septic tanks in the current RS-l 12-03-84 451 zoning is desirable, especially with the concerns expressed about the water table and ground- water contamination. Commissioner Jordan stated he does not support the proposed rezoning. He then cited Section 76-2-304(2), M.C.A., as follows: nSuch (zoning) regulations shall be made with reason- able consideration, among other things, to the character of the district and its peculiar suitability for particular uses and with a view to conserving the value of buildings and en- I couraging the most appropriate use of land throughout such municipality." The Commissioner then noted the subject tract of land lies within an RS-l district; and there are residences within this district which totally surround the subject parcel. Commissioner Jordan stated he feels the City would set a bad precedent by rezoning a tract in the very heart of this RS-l area to city density. Commissioner Anderson stated she does not support a change in the zoning of the subject tract because she feels the present zoning is appropriate. She stated she feels there is appropriate concern about density factors and the surface water problems that would imperil housing in the area. The Commissioner also noted the Zoning Commission has recommended denial of the requested Zone Map Change. Mayor Weaver stated the staff memo indicates that flooding has occurred on the subject site in the past and is likely to occur in the future. He also noted testimony submitted by several residents in the general neighborhood indicate they have observed surface flooding on the site. Further, the appl icant's engineering report dated November 30, 1984, indicates a concern about storm water and indicates that a similar event to the 1981 flood could happen again. The subject parcel is located in an area delineated as shallow flooding, which means that periodically up to twelve inches of surface water may be found on the site. The Mayor stated there is compelling evidence to indicate that the area proposed for R-l zoning, including a PUD density bonus, is inappropriate for that kind of development and is, therefore, im- practical. It was moved by Commissioner Vant Hull, seconded by Commissioner Mathre, that the I zoning on Tract 1-B of Certificate of Survey No. 115-A located in the southwest quarter of Section 32, Township 1 South, Range 5 East, Montana Pr'incipal Meridian be changed from RS-l, Residential--Suburban Country Estates, to R-l- T, Residential--Single-family, LOW-density with a Transitional Overlay. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Vant Hull; those voting No being Commissioner Mathre, Commissioner Anderson, Commissioner Jordan and Mayor Weaver. The Commission then acted upon the original request for the Zone Map Change from RS-l to R -1 . Commissioner Mathre, Commissioner Anderson, Commissioner Jordan and Mayor Weaver indicated they are opposed to the requested Zone Map Change for the reasons they listed above. Commissioner Vant Hull stated she opposes the requested Zone Map Change because she feels more restrictions should be placed on development of the subject tract than the R-l District will allow; and the Commission should review all proposed development. It was then moved by Commissioner Jordan, seconded by Commissioner Anderson, that the request for the Zone Map Change submitted by Bach Enterprises to change the present zoning of RS-l, Residential--Suburban Country Estates, to R-l, Residential--Single-family, Low-density, on Tract 1-B of Certificate of Survey No. 115-A located in the southwest quarter of Section 32, Township 1 South, Range 5 East, Montana Principal Meridian be denied. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Anderson, Commissioner Vant Hull, Commissioner Mathre and Mayor Weaver; those I voting No, none. position be Ms. Pat Gober, Chairperson of the Housing Committee, submitted to the Commission a revised memo. She noted the original appropriation by the Commission was $7,500.00, with $2,500.00 to be used for Operating Supplies and $5,000.00 to be used for Contracted Services. Ms. Gober stated the initial request submitted by the Committee was for a six-month extension 12-03-84 452 of the position. However, after review, the Committee has found that the balance in Operating Supplies is $991.73; and the remaining items should be completed by the end of February. She noted the revised request is for a transfer of $900.00 from the Operating Supplies to Con- tracted Services to cover Marcia Youngman's salary for the next few months. Ms. Gober noted the items to be completed include the Zoning Report, a Finance Seminar for the Home Builders' Association, and other Housing Committee reports. She then stated Marcia Youngman has donated more than 100 hours since September 5, 1984, when her six-month I contract expired. Ms. Gober stated she feels the work has been done in good faith and re- quested that the transfer be made to compensate Ms. Youngman for her work in December and January. City Manager Wysocki stated the reason this item has been submitted to the Commission is because the initial allocation was specifically broken into two separate categories. He stated the amount in Contracted Services has covered Marcia Youngman's salary, noting she has not been on the City's payroll. He then stated Ms. Youngman has agreed to complete the outlined work for $900.00. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission approve the transfer of up to $900.00 from the original appropriation for Operating Supplies to Contracted Services to pay Housing Consultant Marcia Youngman for specified projects, to be completed by the end of February 1985. 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. Update re historical preservation district - Martha Catlin City Manager Wysocki stated that Ms. Martha Catlin, Historic Preservation Officer, has requested an opportunity to address the Commission concerning the grant program. Ms. Catlin stated her duties include reviewing and refining the historic districts recommended in the historic survey, reviewing and refining regulations for those districts, assisting the Planning Staff in adoption of historic districts and regulations, assisting property I owners in preparing applications for historic designation and tax incentives, and helping in public education and awareness. She noted other items she will be involved in include review- ing CDBG applications, especially those involving the historic district or significant buildings, to make sure they meet the Secretary of Interior's standards; work with County Commissioners to introduce historic preservation in the County; and monitor historic preservation in the City and the County. Ms. Catlin then stated the Planning Board is forming a steering committee, of which one member is to be a City Commissioner. She indicated that committee will serve from three months to one year, depending upon the time needed to complete specific items. She stated the steer- ing committee will serve in an interim capacity until a Historic Preservation Commission is formed by the City Commission by adoption of an ordinance. Mayor Weaver asked if funding of her position affects the length of time the steering committee will serve. Ms. Catlin stated the funding for her position is from October 1, 1984 to October 1, 1985. She indicated that under the program, those cities progressing toward becoming certified local governments are eligible for additional funding to complete the process, so it may not expire in 19-85. Commissioner Anderson and Commissioner Vant Hull expressed interest in serving on the steering committee. Mayor Weaver requested this item be placed on the agenda for next week's agenda for the purpose of appointing a Commissioner to the steering committee. I Break - 4:55 to 5:05 p.m. Mayor Weaver declared a break at 4:55 p.m., to reconvene at 5:05 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1984. 12-03-84 . 453 Staff report - Request for annexation submitted by Valley View Golf Club - 1. 403-acre tract lYing In COS No. 803, SWk of SectIon 18 and NWi of Section 19, T2S, 1<6E, MPM least of Fairway Drive, south and west of Valley View Club House} City Manager Wysocki stated that the Commission had acknowledged receipt of this request for annexation on November 5, 1984. He noted the Planning Staff has prepared its report on the requested annexation; and the Commissioners have received copies of that report. I Assistant Planner Dave Skelton stated the subject site is a 1. 403-acre tract lying in Certificate of Survey No. 803 located in the southwest quarter of Section 18, and northwest quarter of Section 19, Township 2 South, Range 6 East, Montana Principal Meridian. He stated the subject property is more commonly located along the east side of Fairway Drive, and south and west of the Valley View Club House. The site is currently used as a portion of the driving range for the golf club; and the remainder of the driving range is currently inside the city limits. The subject property is currently zoned RS-l, Residential--Suburban Country Estates. Assistant Planner Skelton then submitted to the Commission a map showing the proposed development of this tract, which will be a Planned Unit Development. He noted the proposed PUD is an extension, but not a part of, the Westridge Meadows PUD currently being developed. The density of the proposed project will not be more than four units per acre, which is the density of current development in the area. The Assistant Planner noted if this parcel is combined with the parcel to the north during development, it can be developed as an 8-unit minor Planned Unit Development. The Assistant Planner then reviewed the various points listed in the annexation policy adopted by the Comm iss ion. He noted the subject property does exploit the peninsula of annexed land in that area. He also noted the tract is smaller than the five-acre size preferred by the Commission. The Assistant Planner then stated provision for transfer of water rights to the City will be made, rather than payment-in-lieu of water rights. He noted initial discussion with the Engineering Officer has taken place on that item. Assistant Planner Skelton then stated when the site is developed, crossing of Sourdough Trail to access the development must be addressed. He noted that the fiscal impact has not been addressed since a formula for deter- I mining the fiscal impact has not yet been developed. Commissioner Vant Hull asked if a fiscal impact fee should be addressed at this time. She suggested that possibly the item should be addressed prior to the public hearing. Planning Director Lere stated the staff has not addressed the development of a formula for determining fiscal impacts; and he is uncertain when that issue will be addressed. Commissioner Vant Hull asked if it would be in the City's best interests to annex the golf course along with this tiny parcel. Assistant Planner Skelton stated a question has been raised about whether the City can require water rights or payment-In-lieu if it initiates an annexation rather than the property owner. City Manager Wysocki noted that annexation of a facility like the golf course may cause additional expenses which are not necessary for that facility. Mr. Dan Klusmann, representing the Valley View Golf Club, stated that the driving range on the subject site is causing problems with development of the immediate area. He stated that the elimination of the driving range in that area will alleviate many of the problems that currently exist. It was moved by Commissioner Anderson, seconded by Commissioner Mathre, that the Commission acknowledge receipt of the request for annexation submitted by Valley View Golf Club for a 1.403-acre tract lying in Certificate of Survey No. 803 located in the southwest quarter of Section 18, and northwest quarter of Section 19, Township 2 South, Range 6 East, I Montana Principal Meridian. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. Commissioner Jordan abstained. It was moved by Commissioner Mathre, seconded by Commissioner Anderson, that the Commission instruct the City Attorney to prepare a Resolution of Intent to annex that 1.403-acre tract lying in Certificate of Survey No. 803, located in the southwest quarter of Section 18, and northwest quarter of Section 19, Township 2 South, Range 6 East, Montana Principal Meridian, requested by Valley View Golf Club. The motion carried by the following Aye and No vote: 12-03-84 45Lt those voting Aye being Commissioner Mathre, Commissioner Anderson and Mayor Weaver; those voting No being Commissioner Vant Hull. Commissioner Jordan abstained. Request of draft letter submitted by Commissioner Vant Hull re the proposed bikeways City Manager Wysocki presented to the Commission a draft letter prepared by Commissioner Vant Hull to be sent to the schools, service clubs and bicycle clubs requesting input on the proposed bi keways. I Commissioner Mathre and Commissioner Anderson submitted changes to the letter; and Mayor Weaver indicated he will provide some changes. The Mayor then requested that the final draft of the letter be placed on next week's agenda for review and possible action. Brief report on N LC Congress of Cities held in Indianapolis on November 24-28, 1984 Commissioner Anderson thanked the Commission for the opportunity to attend the National League of Cities Congress of Cities held in Indianapolis, Indiana, on November 24-28, 1984. She stated she will write articles on the various meetings and will submit those to the Commis- sion for review. She also indicated she will write a report to the Commission. The Commissioner stated she has ordered six tapes from the meeting, and will give the Commission a list of the tapes available to determine if more tapes should be ordered. Commissioner Anderson noted the emphasis of the meetings focused on urban development and renewal. She stated suggestions for smaller cities included the option that a group of cities cooperate in the hiring of one planner and sharing the costs. Discussion - FYI items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A memo from Director of Public Services Holmes concerning the existing agreements for sludge injection and the suggestion that fees be implemented. (2) A tabulation of residential building permits issued from October 1982 to October I 1984. The City Manager noted the Commission had requested this information. (3) A memo from Assistant City Manager Barrick concerning the issuance of raffle licenses. The City Manager stated concern has been expressed because some entities have obtained raffle licenses from the County but not from the City and have sold tickets within the City limits. He noted the major concern is control of the process. (4) Weekly construction report as submitted by Thomas, Dean and Hoskins, Inc., for Group III, Schedule II, of the Water System Improvements. (5) City Manager Wysocki reminded the Commission that the District 10 meeting for the Montana League of Cities and Towns will be held Wednesday night, December 5, 1984. (6) Commissioner Anderson noted the Commissioners have received a letter from Robert Foukal concerning drainage problems following the construction of Kagy Boulevard. She asked if the Commission should address this matter. City Manager Wysocki stated the Engineering Officer has registered concern with the State concerning drainage in that area; and a meeting will be held between the City, County and State in the near future to discuss the issue. The City Manager noted that the problems are stemming from an area outside the City limits but are affecting residents within the City limits. Consent Items Items. I It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the. Commission approve the items as presented, and authorize and direct the appropriate persons to 12-03-84 455 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. Recess - 5:50 p.m. Mayor Weaver declared a recess at 5:50 p.m., to reconvene at 7:00 p.m. for the purpose I 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. Public hearing - Commission Resolution No. 2530 - proposed issuance of $950,000.00 lOR bond issue for Marvin R. and Judy G. Cowdrey for construction of a 32 unit apartment complex This was the time and place set for the public hearing for the proposed issuance of a $950,000.00 I DR bond issue for Marvin R. and Judy G. Cowdrey for the construction of a 32-unit apartment complex, as provided in Commission Resolution No. 2530, entitled: COMMISSION RESOLUTION NO. 2530 RESOLUTION PROVIDING FOR THE GIVING OF NOTICE OF A PUBLIC HEARING ON THE PROPOSED ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF HOUSING DEVELOPMENT REVENUE BONDS IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $950,000 FOR MARVIN R. AND JUDY G. COWDREY FOR THE CONSTRUCTION OF A 32-UNIT APARTMENT COMPLEX AND RELATED EXPENDITURES THERETO. Mayor Weaver opened the public hearing. City Manager Wysocki stated the City has received letters of protest from the Bozeman Property Owners' Association and the Board of Directors of the Southwest Montana Homebuilders' Association, as well as a letter with attachments from the appl icant concerning the low-income I portion of the proposed housing project. Mr. Pat Giblin, Dougherty, Dawkins, Strand and Yost, Inc., Billings, Montana, spoke on behalf of the applicants. He stated the requested bond issue would provide financing for construction of a 32-unit apartment complex at the corner of West Dickerson Street and South 22nd Avenue. The laws for use of Industrial Development Revenue bonds for housing require that 20 percent of that housing be made available for low- and moderate-income families to qualify for tax exempt status. The Cowdreys have agreed to set aside 30 percent of the units for low- and moderate-income families and will establish reduced rental rates on those units. He then stated the interest rate on the IDR bonds will probably be 11 to 12 percent if the bonds are sold in the near future. Mr. Giblin then addressed several comments which have been made since the application was originally submitted to the Commission. He noted one of the concerns raised is that the low- and moderate-income units will be provided for a few years but will be slowly filled as regular units. He stated the bond covenants will require that 30 percent of the units be maintained for low- and moderate-income families; and failure to comply will result in the bonds coming due and payable immediately. He stated that will then require the Cowdreys to find alternative financing for the project. Mr. Giblin then stated the Cowdreys have been residents of Bozeman for more than twenty years and have been in the construction business. He stated local subcontractors and supplies will be used in the construction of the apartment complex. Pat Giblin stated most of the savings realized by the lower interest rate will flow back to I the tenants of the low-income units. He then noted concern has been expressed that a high insulation factor be used. He suggested that requirement be made a part of the issuance of the building permit. Mr. Giblin stated he feels this project is in the best interests of the public because it will increase the low- and moderate-income housing available in Bozeman. He also noted the Housing Committee has recommended approval; and the project meets the requirements of the federal and state laws for tax exempt bonds. Commissioner Mathre asked if the project would be viable without the lOR bond financing. 12-03-84 455 Mr. Giblin stated the interest rate on conventional financing would be approximately 14 percent. He noted at that rate, it would be very difficult, if not impossible, to provide units for low- and moderate-income individuals and maintain a profit margin. Commissioner Vant Hull stated one of the concerns she has heard expressed is about maintenance of the apartment complex once it is completed. Mr. Marvin R. uBuz" Cowdrey stated that often low-income units suffer for maintenance. He noted this project will have a mix of tenants at low-income and market rates; and he feels I that is a good combination. Mr. Cowdrey indicated the apartments must be maintained to attract tenants. He then noted they have had repeat tenants in some of their units, so they are apparently maintaining the apartments adequately. Commissioner Mathre noted that the sheet of information which the applicants had pre- viously submitted to the Commission indicates that 2t people will be hired to manage the apart- ment complex and take care of the paperwork. Mr. Cowdrey stated they will probably hire H to 2 people, and his wife will maintain the paperwork for the low- and moderate-income units. He stated they currently have a full-time maintenance man to take care of the various apartment units they own; and he will be available to do maintenance work on this complex as well. He also stated the apartment complex will probably also have a resident manager, who will be compensated for a portion of his rent. Commissioner Mathre then thanked the applicants for submitting the examples of the paperwork which will be completed for the low-income units. She noted in some instances, the rent is 30 percent of the income; and that amount is above the minimum rent suggested for the low-income units. She then asked if the applicants are anticipating higher incomes than those listed in the HUD guidelines. Mr. Cowdrey stated he feels the provision for determining the rental rates should be left as established. He noted that changes can occur in a tenant's income; and he feels that if the tenant's income has increased, the rent should be adjusted accordingly. He indicated he does not feel it is fair to the other tenants in the low- and moderate-income units to pay the same rent as someone who has just had a substantial income increase. I Commissioner Mathre then asked what the maximum level of income would be to be eligible for the low- and moderate-income unit. Mrs. Judy Cowdrey stated the information sheet previously submitted to the Commission was based on the guideline for very-lOW-income tenants. She also indicated they would be willing to rent the units to only the very-low-income tenants or to the very-low and low-income tenants, whichever the Commission wishes. Mrs. Cowdrey stated they feel that if someone has slightly more income than the guideline, the rent should be slightly higher also. Commissioner Mathre noted that the income for a very-low-income three-person family is listed in the State guidelines at $11,250.00 maximum; and the income for a low-income three- person family is listed at $18,000.00 in Gallatin County. Commissioner Vant Hull noted a question was raised previously about whether the low- income units would be designated or would float. She noted at that time, the applicants indicated the units would be designated and questioned whether it might be easier to keep the units filled if they floated, especially if someone in a low-income unit received a significant increase in income and no longer qualified for the lower rent. The Commissioner noted that to have the units floating may save on having tenants move from one apartment to another in the complex to maintain the nine low-income units. Mrs. Cowdrey noted the Commission may set whatever guidelines it feels are necessary. She indicated it may be easier to keep the low-income units filled if they are maintained on a floating basis. Ms. Pat Gober, Chairperson of the Housing Committee, submitted the Committee's report I on the proposed project. She stated the Committee has pursued possible alternative methods of financing a low-income housing project, realizing that the interest rates on conventional financing do not allow a profit margin for the owner. Ms. Gober stated the Committee's research indicated that FmHA does not provide funding in cities as large as Bozeman; and federal programs have been discontinued. Ms. Gober stated Industrial Development Revenue bonds are a viable alternative and do not cost the City or the taxpayers any money, nor is any risk incurred by the City or the taxpayers. 12-03-84 457 Ms. Gober stated the proposed project meets a critical need in the City. She noted there are waiting lists for every low-income unit available in Bozeman at the present time. Also, the mixed rental situation in this project wi II provide a good atmosphere and avoid a stigma on the complex. Ms. Gober then addressed various comments which have been made about the proposed project. She noted comments have been made that the rental market is softening; and therefore, I the rents will decrease. She noted the rental market is softening at the upper end, but that has no effect on the low-income units. Another comment has been made about the small size of this project. She noted it is better to start small and correct any problems which may arise prior to beginning another project. She further noted this is the first phase of the project; and if this phase proves satisfactory, the second phase will be undertaken. Ms. Gober stated a third point which has been raised is that it is not good for govern- ment to become involved in this type of project. She noted in this instance, the City govern- ment does little more than serve in an oversight capacity. Another point raised has been that the utilization of lOR bonds will provide an unfair advantage to the developer. She noted anyone is eligible to apply for I DR bonds to fund any project which meets the criteria established for such funding. Ms. Gober then stated this is the first proposal submitted in three years to provide additional low- and moderate-income housing in Bozeman. She stated the Housing Committee has reviewed the proposal and recommends that the Commission authorize the sale of Industrial Development Revenue bonds to finance the project. Ms. Gwen Salle, member of the Housing Committee, submitted to the Commission a list of statistics on the median incomes and a breakdown of the percentages in various income brackets for all of the counties in Montana for 1983. She noted in Gallatin County, the median income is $20,298.00; and 28.7 percent of the population falls in the $10,000.00 to $19,999.00 annual income bracket. She noted that if one grosses $10,000.00 annually, 30 percent for housing is $249.00 per month. Ms. Salle noted that many of those in service organizations, clerical and I retail business would fall in that income bracket. Commissioner Vant Hull noted Ms. Salle is currently working in real estate. She then asked Ms. Salle if she feels there is overbuilding at this time in Bozeman. Ms. Salle stated a number of apartments, condominiums and townhouses are being built in Bozeman at the present time. Those in the real estate business feel the units priced in the upper brackets are beginning to soften; but the housing market for low rent housing is critical. She noted "cellar dweller" units are renting for $250.00 per month. Ms. Salle then stated the community has grown, but the supply of lower cost housing has not increased. She stated the mobile homes in Covered Wagon Mobile Home Park and Bridger View Mobile Home Park must now be owner-occupied, which has substantially decreased the number of lower cost housing units available; and no new units are being constructed at an affordable rental cost. Ms. Salle then indicated she feels the provision of a handicapped unit will be very beneficial. She stated she has been looking for an apartment for a handicapped lady in a wheelchair but has been unable to find any apartments in the past three weeks. Ms. Linda McNeil, member of the Board of the Housing Coalition, spoke in support of the proposal. She stated the private developers cannot meet the needs of low-income tenants. She noted Bozeman's major rental housing problem is a lack of decent affordable housing. She further noted the City has taken positive steps toward alleviating the problem, including the formation of a Housing Committee and applying for a CDBG grant for housing rehabilitation and public facilities. Ms. McNeil then requested that the Commission approve the appJ ication for the I DR bonds for the subject project. I Ms. JoAnn Peterson, low-income tenant in Bozeman, stated she feels it is very important to increase the amount of housing for low-income people in Bozeman and requested that the Commission approve the issuance of lOR bonds for this project. Mr. Darrell Behrent, 208 Lindley Place, expressed concerns about ensuring that the project maintain units for low-income families. He also stated he feels that if there were a viable market for such units, they would be under construction. He also questioned how a project can be viable with 30 percent of the units being rented at low-income rates, even with the interest rates which would be obtained through the lOR bonding process. 12-03-84 458 Mr. William Davis, Director of the Bozeman Property Owners' Association, noted the Association has submitted a letter of opposition to the use of I ndustrial Development Revenue bonds for this project. He stated one of the reasons for opposition is that the Association feels it is wrong for government to grant an economic advantage to one enterprise over another. Commissioner Vant Hull asked Mr. Davis if the increased tax base through new construc- tion has been considered. Mr. Davis stated he realizes that construction of items such as a convention center would I increase business. However, he noted that the convention center would also compete with existing businesses which were constructed through conventional financing and are currently facing difficulties. Mr. Davis then stated the taxpayers would support an IDR bond issue indirectly through payment of federal taxes. Mr. Charles Beck, 106 Sunset Boulevard, owner of 36 rental units and manager of 12 additional units, stated some of his units are located next to some of Mr. Cowdrey's units. He stated Mr. Cowdrey has never had any tenant problems in those units; and he feels the Cowdreys are doing a good job in renting their units. Mr. Beck indicated he is not in support of nor in opposition to the issuance of the I DR bonds, but he feels the City should take a hard look at the request. He noted the project will benefit the City if additional affordable housing is constructed. Mr. Don Weaver, 2404 Spring Creek Drive, stated he is neither for nor against the proposal. He questioned what would happen if the use of Industrial Development Revenue bonds became a generally accepted method of financing projects. Mr. Weaver stated he hopes the Commission carefully reviews each lOR bond request, and that the use of IDR bonds does not become the standard way in which to finance projects in Bozeman. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Break - 8:05 to 8:15 p.m. Mayor Weaver declared a break at 8:05 p.m., to reconvene at 8: 15 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1984. I Public hearin and This was the time and place set for the public hearing on Commission Resolution No. 2533, intent to annex a 10.0-acre tract located along the west side of South 19th Avenue just south of the Montana State University Disease Control Center, requested by Ralph K. and Steven R. Aaker, as follows: COMMISSION RESOLUTION NO. 2533 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. Mayor Weaver opened the public hearing. Assistant Planner Marcia Elkins presented the Staff Report. She noted the original request for annexation included a 10. O-acre tract located along the west side of South 19th Avenue lying south of the Montana State University Disease Control Center. She stated a 300-foot buffer strip between the MSU Disease Control Center and a 148-foot wide strip lying along the west side of the site have been added to the annexation request, so that the tract under consideration at this time is slightly less than 35 acres in size. The Assistant Planner I noted that the decision on a request to change the zoning from AS to R-4 on the original 10.0-acre tract has been tabled pending a decision on the annexation request; and the zoning on the remainder of the tract is to remain AS at the present time. Assistant Planner Elkins then stated the applicants have addressed the items listed in the staff report. She stated the 300-foot buffer strip has been included; a 35-foot stream easement wi/I be included on the final plat so that the 35-foot stream setback is observed; all easements will be included on the final plat; and the western extension of Remington Way has 12-03-84 453 been included, so that the street lies within City limits. She noted the consulting engineer for the applicant has indicated that the right-of-way for West Lincoln Street extended lies north of the subject parcel. Commissioner Anderson asked if the provision of water rights has been satisfied. Assistant Planner Elkins stated that requirement has not been satisfied. She stated it is important that the applicants meet with the City staff to determine the amount of water rights I or payment-in-I ieu required for this annexation. Commissioner Vant Hull stated she feels that the fiscal impact of the annexation is important in the decision-making process. Commissioner Jordan stated he is also concerned about the fiscal impact, but action on several annexation requests was delayed pending development of an annexation policy. He stated he feels that if a proposed annexation will have too much fiscal impact on the City, the staff will caution the Commission without a formula being in place. Mr. Clair Daines, 105 Silverwood Drive, indicated he is representing the Evangelical Church. He stated at this point, the intent is to build a church on a five-acre portion of the tract, which will provide no income to the City but will impact the City's services. He stated the church is aware of that fact and is willing to cooperate with the City and pay its fair share for those services. Mr. Daines stated the question of the amount of water rights or payment-in-lieu for this annexation is of concern to the church as well as the University. He noted the Evangelical Church has a purchase agreement for the original 10. O-acre tract within this annexation; and a land swap with the University affects the remainder of the annexation. Mr. Daines stated he feels the amount of water rights or payment-in-lieu should be based on actual development rather than on anticipated development of the site, and suggested that a development agreement indicating that the applicant will provide water rights or payment-in-Iieu as development occurs may be a better approach. Mr. Mark Bryan, 507 West Arnold, indicated he is also representing the Evangel ical I Church. He stated the church has reviewed the staff report and agrees with all the staff recommendations except for the requirements for water rights or payment-in-lieu, which the church feels should be based on actual use of the land. Mr. Bryan then noted the requested Zone Map Change to R-4 zoning is compatible with the Master Plan. Rev. Chris Blackmore, 1004 East Babcock Street, stated he is the pastor of the Evangelical Church. He stated the church was started in 1973 and holds its services in the Seventh Day Adventist facilities. He stated he is currently conducting three church services on Sunday mornings because the facilities are too small. He also stated about one-fourth of the congregation is college students; and they wish to build close to the University campus for the convenience of the students. The possibility of constructing housing for students, especially freshmen, who would rather live with others from their own church than on campus has been discussed. He also noted a possible extension of Bethel College has been discussed for a portion of the ten-acre tract. Commissioner Jordan stated if only five acres are to be developed, he would have no problem in basing the amount of water rights or payment-in-lieu on the five acres. However, he feels an agreement should be signed stating that if more area is developed, the amount of water rights or payment-in-lieu will change accordingly. Mr. Paul Chausse, 604 Nelson Story Tower, stated support for the proposed annexation. Mrs. Carmen Murphy, 521 South Grand Avenue, stated she has belonged to the church since it began. She then stated any housing which would be constructed on the ten-acre site would not be owned by the church and, therefore, would be taxable. I No one was present to speak in opposition to the proposed annexation. Mayor Weaver closed the publ ic hearing. A decision will be forthcoming in one week. This was the time and place set for the public hearing on the Zone Map Change requested by Norm Wallin and Stephanie Volz to change the present zoning of RR to R-3 and RR and MB 12-03-84 46U to B-2-T for P I A , arce sand B, respectivel I in . . Township 2 South, Range 5 East MY' 0 y. g In the southeast quarter of Section 11, , ontana PrinCipal Meridian Tho , known as being located between W t MI' IS site Is more commonly es a n and West Babcock St ' Ponderosa Mobile Home Subdivision. reets, Immediately east of the Mayor Weaver opened the public hearing. Assistant Planne M 0 E 0 r arcla Iklns presented the Staff R would change the zoning on th t eport. She stated the request e -acre tract fronting on W B I Residential, to R-3, Residential--M d' " est abcock Street from RR, Rural e lum-Denslty Apartments' d h " tract fronting on West Main Street f RR ' an t e zoning on the 7. 6-acre rom , Rural Residential d MB B-2- T, Community Highway Business "th T . . ' an , Motor Business, to II II WI a ransltlonal Overlay Th A 0 the T designation is recommended b ( . e sSlstant Planner stated ecause 1) the high water t bl proposed development; (2) the s b" t " 0 a e must be considered in any u Jec Site IS along an entrywa to " n~i~nd off-~it~ traffic circulation must be' 0 Y the City; and (3) adequate g Commission reviewed thl 0 prOVided. ASSistant Planner Elk" t s rezoning request a d inS sated the Co. n recommended ap I ommlssloner Jordan noted th 0 prova . ere IS currently a h " zoning. He then asked how" ouse on the site proposed for R-3 many Units could be develo ed . removed. p on that site if the house were to be Assistant Planner Elkins stated four units could be placed th Mr R b t Loon e parcel. . 0 er ee, Morrlson-Maierle, stated he is workin for 0 stated the requested Zone Map Ch "" 0 g the applicants. Mr. Lee ange IS In compliance with the Master P property has recently been annexed H Ian; and the subject . e noted water and 5 b 0 site' and . ewer can e easIly extended to the , the applIcants plan to dev~lop the site in a manner which w'" " . th t 0 d' t I Improve traffic flow in a Imme la e area. Mr. Norm Wallin stated Mr Jim St h h . ep ens, w 0 owns the property immediately east of the subject site, has agreed to share a common street if needed for access to the property. He noted Mr. Stephens is present to answer any questions the Commission may have. No one was present to speak in opposition to the granting of the requested Zone Map Change. I Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Public hearing - Conditional Use Permit - Ken White - allow mobile home sales on Tract cas 4A, located in the NEi of Section 17, T2S, R5E, MPM (immediately east of existin omes site This was the time and place set for the public hearing on the Conditional Use Permit requested by Ken White to allow mobile home sales on Tract C-l of Certificate of Survey No. 4A, located in the northeast quarter of Section 17, Township 2 South, Range 5 East, Montana Principal Meridian. This site is more commonly located immediately east of the existing Gateway Homes site. Mayor Weaver opened the public hearing. Assistant Planner Dave Skelton presented the Staff Report. He stated the subject site is approximately 2.5 miles west of the City limits, along the south side of U.S. 191. The Assistant Planner stated Mr. White has obtained a permit from the State of Montana Department of Highways to gain access to his property from U. S. 191. The proposed office on this site will be a 16' by 70' mobile home. Assistant Planner Skelton then reviewed the six conditions recommended by the Zoning Commission for approval of the requested Conditional Use Permit. Planning Director Steve Lere recommended that the Commission consider including one more condition for approval stating "That the Building Official review the existing sign to determine whether it is in compliance with the Sign Code. II No one was present to speak in support of or in opposition to the granting of the I Conditional Use Permit. Mayor Weaver closed the public hearing. A decision will be forthcoming in one week. Adjournment - 9:00 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner 12-03-84 461 Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. KENNETH L. WEAVER, Mayor ATTEST: I Clerk of the Commission I I 12-03-84