Loading...
HomeMy WebLinkAbout1979-09-05 u.l.l September 5, 1979 Bozeman, Montana 59715 I The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, September 5, 1979, at 1:15 o'clock p.m. Present were Mayor Sedivy, Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer, City Manager Gesko, Assistant City Manager Smith, City Attorney P1ana1p and the Clerk. Commissioner MacNab opened the meeting with a prayer whereupon the minutes of the regular meeting held on Wednesday, August 29, 1979 were approved as submitted. Public Hearing - Mt. Ellis Academy, Conditional Use Permit - construction of 1,800 sq. ft. bldg. to be used as bakery This was the time and place set to consider the Conditional Use Permit for Mt. Ellis Acad- emy. The applicant seeks a conditional use permit which if granted would allow the construction of an 1,800 square foot building to be used as a bakery as an accessory use for the Mt. Ellis Academy. The Planning Director presented the staff report which recommended approval subject to conditions. There was no one present to protest and there were no written protests. The public hearing was closed and a decision will be made on September 12, 1979. Bond Sale - SID 608 - Paving & Storm Drain Figgins 4th - $375,000 SID 614 - Paving & Storm Drain Garfield - Between Tracy and Chicago, Milwaukee Ry. The City Manager stated that according to the Affidavit of Publication, this was the time and place set for the bond sale of Special Improvement District No. 608 and 6l4. The Mayor and City Manager outlined the procedure for conducting the bond sale and stated the amount of bonds to be sold would be the same as the advertised amount. I It was moved by Commissioner MacNab, seconded by Commissioner Vollmer, that the City proceed with the bidding. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer and Mayor Sedivy, those voting No, none. The Clerk of the City Commission stated there were no sealed bids and there was no one present to bid orally on SID No. 608. Upon recommendation of the City Manager, it was moved by Commissioner Vollmer, seconded by Commissioner Swanson, that the Commission authorize the City Manager to negotiate a sale for the bonds of SID No. 608. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer, Commis- sioner MacNab and Mayor Sedivy, those voting No, none. It was moved by Commissioner Swanson, seconded by Commissioner Vandeventer, that the City proceed with the bidding of bonds for SID 614. The Clerk of the Commission stated there were no sealed bids. Ronald J. Ahlers of the First Security Bank presented his good faith check in the amount of $1,500.00 as prescribed by the Notice of Sale for SID No. 614. The oral bid from First Security Bank in the amount of 9% was presented. Upon recommendation of the Director of Finance, it was moved by Commissioner Vandeventer, seconded by Commissioner MacNab, that the sale of the bonds for SID 614 in the amount of $30,000.00 be awarded to First Security Bank & Trust Company in the amount of 9% it being the only bid submitted. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vandeventer, Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson, and Mayor Sedivy, those voting Nd, none. I Continued Hearing - proposed Industrial Development Revenue Bond Issue for the Montana Bank of Bozeman The public hearing on the request of the Montana Bank of Bozeman, having been continued for a period of one week, was again presented. The hearing involves a proposed Industrial Development Revenue Bond Issue. The proposed project will consist of acquisition of land and construction of a new Montana Bank Bui1ding(s) and facilities at a cost presently estimated not to exceed Four Million and No/100ths ($4,000, 000) dollars. The hearing was taped and a Court reporter was also present to record the proceedings. Joe Sabol, representative for the petitioner, advised the Commission that the industrial 312 Development Act, passed in Montana in 1967, allows a private enterprise to finance itself by getting endorsement from a City, thereby allowing it to sell bonds with an interst rate free from federal and state income taxes. That tax exempt status makes the bonds more saleable. However, according to Montana law, City endorsement cannot be given unless the bond issue benefits the general public. Mr. Sabol said that a new bank building would indeed prove to be in the interest of the public. He stated that, historically, banks are referred to as institutions, which are defined as entities developed to serve the public. He further stated the bank would prove itself in the public interest in the future, particularly if it build its proposed 30,000 square- foot building. New job opportunities would arise, the City's tax base would increase, citizens income would increase, and the general health, safety and welfare of the City would improve. Mr. Clingman, president of Montana Bank, stated that at the present time Montana Bank employs 38 persons. If the new building was constructed, the bank could employ 48 persons. Those ten added jobs would create at least $70,000 more in payroll income. He further stated that the banks presently pays $3,000.00 a year in property taxes on the recently acquired property, with a new building, the bank's taxes would increase $35,000 a year, averaging $900,000 over a twenty year period going to the City's coffers. Mr. Clingman felt that a new building would anchor the west side of town, which some have claimed is being deserted by businesses moving to malls and by the courthouse moving to the new Law and Justice Center. However, he said the Board of Directors of the Bank decided two years ago that the bank would remain downtown. Mr. Clingman said they purchased all the property in a one-block area, except the Ketterer Art Center. He stated that they want to keep this part of downtown very vibrant. Robert Shaw, Vice President of Dougherty, Dawkins, Strand & Ekstrom Incorporated, invest- ment bankers, stated that his corporation had conducted an informal study as to the legal and economic feasibility of the proposal and concluded that the project complies with the stated public purposes of the Montana Act, that, on the basis of current financial conditions, the project is economically feasible and the revenue obligations of the City can be successfully issued and sold. Kutak Rock & Huie, Acting as Bond Counsel in connection with the proposed authorization, issuance and sale by the City of Bozeman of its Industrial Development Revenue Bonds (Montana Bank of Bozeman) addressed a letter to the City of Bozeman, whereby they stated the bonds are to be in the approximate amount of $4,500.000. The bonds are proposed to be issued pursuant to and under provisions of Section 90-5-101 through 90-5-113, inclusive M.C.A. 1978; as amended. Under a lease agreement to be entered into between the City and the Montana Bank of Bozeman, N.A., a national banking association (the "Bank"), the City will use the proceeds of the bonds to finance the acquisition and construction of a proposed banking facility and lease the Project to the Bank. The Bank will make lease rental payments to the City in amounts sufficient to pay principal and interest on the Bonds. In addition, the Bank will agree to indemnify the City against all expenses and liabilities which it may incur as a result of the proposed issue of Bonds. In the opinion of Kutak Rock & Huie, the bonds if issued, will be. Li.-I~ited: obligations of the City; and the Bonds and interest coupons attached thereto will never constitute an indebted- ness nor give rise to a pecuniary liability of the City. Mr. Bruce Ellis, Chairman of the Board of the Montana Bank of' Bozeman.and.Chief Executive of the Montana Bank groups was also present to comment on benefits the City would derive from the proposed project. Mr. Sabol stated that based on what has been presented at this hearing, a new bank build- ing would indeed prove to be in the best interest of the public. He further stated there are other hurdles to jump. They will have to adhere to and comply with all the requirements in connection therewith. Several other persons were present in favor of the proposed project. Senator Paul Boylan and Representative Bob Ellerd both agreed that a new bank building would certainly prove to be in the best interest of the public. Tom Olsen, representing First Security Bank and Western Bank of Bozeman, appeared before the Commission in opposition to the proposed project. . I I I . ,. 'J.i ,.,:' I He stated the proposed project, to-wit, a bank building for Montana Bank of Bozeman, Montana, N.A. to be financed by the issuance of industrial development revenue bonds by the City of Bozeman is a private purpose and not a public purpose, as required by law. The use of industrial development revenue bonds for the Montana Bank of Bozeman may be in violation of 12 USC 371d, which provides that no national bank without the approval of the Comptroller of the Currency shall invest in bank premises if the aggregate of all such investments, together with the indebtedness incurred by the bank corporation, will exceed the amount of the capital stock of such bank. All banking institutions in the City of Bozeman, Montana, have funded their improvements and expansion projects through the private sector, in compliance with state and federal laws regulating the investment of banks in their physical properties, and the granting of industrial revenue bonds to the petitioner will make the City of Bozeman a direct or indirect party to the avoidance of such regulatory laws and will render to the petitioner an unfair preference. The granting of industrial development revenue bonds to a banking institution by the City of Bozeman, in its present financial difficulties is not in the public interest and will further undermine public confidence in the city government. Mr. Olson disagreed in the statement that in no way would the City be injured by endorsing the bond. Mr. Olson argued that if funds were available privately, Montana Bank should build privately. "If they can put up the money, then they don't need the money of the city." He added that if Montana Bank built privately, it would still create 10 new jobs, increase the City's tax base and revitalize the downtown area. He said the three other banks had proven this. Mr. Olson submitted a opinion issued by Mr. William A. Johnstone, of the law firm of Dorsey, Windhorst, Hannaford, Whitney & Halladay of Minneapolis. He stated it is Mr. Johnstone's con- sidered opinion that industrial development revenue bonds are related to the effort of muni- cipalities to cope with unemployment, stagnant economic conditions and physical deterioration of urban areas, and are used to encourage investment in such undertakings. Mr. Johnstone notes that "obviously not every financing will satisfy the public purpose is predominate." Mr. Johnstone further commented that this is clearly an avoidance of the regulatory scheme and makes the City of Bozeman a dubious partner in such avoidance tactics. Can it be said that by assisting the bank in avoiding the regulations the city is acting toward a "public purpose"? We submit that it cannot. The City Commission, above all, should hold itself out as a model of compliance with the law. At a time when public confidence has been shaken, it would be unfortunate indeed for the City of Bozeman to engage in a subterfuge in behalf of the Montana Bank of Bozeman to avoid the clear statement of the Congress. Mr. Johnstone respectfully sub- mitted that the petition for industrial development revenue bonds for the Montana Bank of Bozeman be denied. Mr. Olson's final question was: "What is the over-riding public purpose?" If all the benefits would be created by private funding of a new building, there was no need for the Com- mission to involve the investing public in an industrial revenue bond. He did not feel the City of Belgrade or the Life of Montana should bind this Commission. He feels the City Commission has a duty tothe investing public to see if this project could be done with private financing. Mr. Erickson, a private citizen appeared in opposition to the project. In conclusion, Mr. Olson stated "this is a Pandora's box, it opens a troublesome area to the Commission which it does not need. Both sides were given the opportunity to rebut. Mr. Olson asked that the records show that not everyone present were in support of the project. The Mayor declared the public hearing closed. The Mayor agreed with Commissioner Vande- venter that this is a very serious matter and a decision may not be reached by next week's meeting. I I Public Hearing - Zone Map Change - Victory Powell -R-3 to R-O area located at corner of W. College & South 16th - extending north on College to County Law and Justice property This was the time and place set to consider Victory Powell's request for a Zone Map Change. The applicant seeks a change to the City's official zoning map, which if granted, would change the zoning classification from R-3 to R-O. The area is located at the corner of west College Street and South 16th Avenue and extends from north College Street to the County Law and Justice property. Paul Bolton, Planning Director, presented the staff report which recommended denial of the proposed zone map change. The Mayor declared the hearing opened. Victory Powell, the applicant, addressed the Commission and quoted Chapter l8.39 of the Zone Code Amendment. She went to add that since the new Law and Justice Center went in eventually all of the courts, etc., will be in this new center; 16th Avenue is the only paved access to the building. The RO district would not be detrimental to this area because there is no residential stability in the neighborhood. She felt the zone change is a legal use and there would be no major impact on city or county services. She said if the district were changed to an RO district, it would only be homogenous with its existing uses. The Planning Director said Sixteenth Avenue will not be the main access to this site. No one was present to speak in support or in opposition of the zone map change. Mayor Sedivy declared the public hearing closed and a decision will be forthcoming on Tuesday, September 11, 1979. I 31 1;1. ... ........ j Public Hearing - Zone Code Amendment - Greyhound Bus - allow transporationstations as per- mitted use - relocate the present Greyhound Bus lines operation from the B-3 district to a site within a B-2 zone This was the time and place set to consider the request of the Greyhound Bus Lines. The applicant seeks a zone code amendment, which if granted, would allow Transporation Stations as a permitted use. At the present time, transportation stations are allowed only as conditional uses in the B-3 district. Specifically, the applicant wishes to relocate the present Greyhound Bus Lines operation from the B-3 district to a site within a B-2 zone. The Mayor declared the public hearing opened. The Planning Director gave the staff report which recommended that Chapter 18.45.020 "Permitted Uses" of the Bozeman Zoning Code be amended to include a Passenger Transportation Agency or Terminal as a permitted use. Cont'd Hearing - Zone Map Change - Planning Staff - Remove "T" zoning designation from RS-l zoning districts I The public hearing on the request of the Planning Staff, for a Zone Map Change, having been continued was again presented. The Planning Staff seeks a zone map change which, if granted, would remove the "T" or Transitional zoning designation from the RS-l zoning districts. The Planning Director presented the staff report which recommended removal of the "T" designation from the following zoning districts. 1. Area located in the South ~ of Section 32, TIS, R6E, M.P.M., including and generally paralleling Bridger Drive a distance of approximately 4100 feet east from Story Mill Road and totalling approximately 113 acres. 2. Area located in the NE ~ of Section 6, T2S, R6E, M.P.M., generally located east of the Burlington Northern Railroad tracks, west of "L" Street and bounded on the south by the Bozeman City Limits. The area totals approximately 28 acres. 3. Three separate Rural Subdivision Zoning Districts located as follows" (A) Area generally located in the SE quadrant of the City of Bozeman including and generally paralleling Sourdough Road a distance of approximately twenty-seven hundred feet south from the proposed College Street extended, and generally bounded by Bozeman Creek to the north, Milwaukee Railroad tracks and University Subdivision to the west, Bozeman City limites to the south, and Sourdough Road to the east and con- taining 75 acres. (B) Area located in the S~ of Section l8,T2S, R6E, M.P.M., generally bounded by Thompson's Subdivisions to the west, Kagy Boulevard to the south, Sourdough Road tothe east, and proposed College Street extended, to the north and containing approximately 46 acres. (C) Area located in the SE~ of Section 18, T2S, R6E, M.P.M., generally bounded by Highland Boulevard to the east, Graf's Second Addition Subdivision and the City of Bozeman on the south, Hillcrest Retirement Home to the north, and Electric Heights Subdivision to the west and containing approximately 22 acres. I The Mayor declared the hearing closed, and a decision will be forthcoming on Tuesday, ,.' roo ',) .1 ..:; September ll, 1979. Cont'd Hearing - Zone Code Amendment - reconsider Chapter 18.60.210 new addition I The public hearing on the request for a Zone Code Amendment, having been continued, was again presented. Paul Bolton presented the Staff report and reminded the Commisson of the two zone code amendments proposed to the zoning code; one dealt with changing the basic structure of the RS-l requirements so that when subdivision lots would be proposed less than three acres in size they would have to be shown a final plat that would guarantee that the lots could be split down into sizes of 10,000 - 18,000 square feet. He then added that this zone code amendement was bypassed superficially at the last meeting. The amendment stated that where R-l, R-2, R-3, R-4 zoning exists, central systems designed to city specifications will be required. This amendment is not related to the other zone code amendment. He then stated that this zone code amendment is basically the same as proposed before. The Planning Director advised the Commission that the ductile iron is required by the City for water systems whereas the State Health Department allows use of Plastic pipe. The densities allowed in these zoning districts would assist in expanding the inventory of much-needed single and multi-family building sites utilizing central water and sewer systems. There being no further discussion, the Mayor declared the hearing closed and a decision will be made in one week. Commission Resolution No. 2097 - Intent to annex Allison property - Hearing October 10 Commission Resolution No. 2097 declaring the intention of the City Commission to annex a contiguous tract of land located in Section 24, T2S, R5E, M.P.M., into the City, as prepared by the City Attorney was presented, entitled: COMMISSION RESOLUTION NO. 2097 I A RESOLUTION DECLARING THE INTENTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, TO EXTEND THE BOUNDARIES OF SAID CITY TO ANNEX A CONTIG- UOUS TRACT OF LAND HEREIN DESCRIBED. Following discussion, it was moved by Commissioner Vandeventer, seconded by Commissioner MacNab, that the Commission delay a decision on Commission Resolution No. 2097 for a period of one week. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vandeventer, Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson and Mayor Sedivy, those voting No, none. Authorize signature - Contract documents SID 610 & 612 - Sanitary Sewer Water Mains, & Storm Drains - Woodridge Annexation & Westridge Meadows The Contract Documents for the construction of Special Improvement District No. 610 - Sanitary Sewer, Water Mains and Storm Drains in Woodridge Annexation and Special Improvement District No. 612 - Sanitary Sewer, Water Mains, and Storm Drains in Westridge Meadows as prepared by Thomas, Dean & Hoskins, Inc., in the amount of $109,077.50 as submitted by Under- ground Construction, was presented. It was moved by Commissioner MacNab, seconded by Commissioner Vollmer, that the Contract Documents be approved and the Mayor and Clerk of the Commission be authorized and directed to sign the contracts for the City of Bozeman, and that Underground Construction be authorized and directed to proceed with the construction of SID No. 610 and 612. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer and Mayor Sedivy, those voting No, none. I Certificate of completion - SID 594 - Paving improvements on Healy & Langohr - Figgins Addition The engineers of Thomas, Dean & Hoskins, Inc., on Special Improvement District No. 594 stating the paving improvements in Figgins Addition has been completed in accordance with the plans and specifications, was presented. This final acceptance does not relieve the contractor of his responsibility for neg- ligence, faulty materials or workmanship within the standard period provided for by law. The contractor has provided a performance and material bond in the full amount of the contract to guarantee workmanship and materials for a one year period to commence upon final acceptance. 316 It was moved by Commissioner Vollmer, seconded by Commissioner Swanson, that the project be accepted as completed. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer, Commis- sioner MacNab and Mayor Sedivy, those voting No, none. Proclamation - "National Cancer Day" - September 8, 1979 Mayor Sedivy proclaimed Saturday, September 8, 1979 as "National Cancer Day" and urged all residents to seek early check-ups which would result in the savings of millions of lives each year. It was moved by Commissioner Swanson, seconded by Commissioner Vandeventer, that the Commission endorse the Mayor's proclamation. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Swanson, Commissioner Vandeventer, Commis- sioner MacNab, Commissioner Vollmer and Mayor Sedivy, those voting No, none. Application for Raffle License - B.P.O.E. Elks - November 7, 1979 The City Manager presented an application from B.P.O.E. Elks, along with the appropriate fee for the purpose of holding a raffle on November 7, 1979. It was moved by Commissioner Vandeventer, seconded by Commissioner MacNab, that the Com- mission approve the application for the Raffle License for B.P.O.E. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vandeventer, Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson and Mayor Sedivy, those voting No, none. Application for Wine License - Karl Marks - $100.00 The City Manager presented an application from Karl Marks, along with the appropriate fee for a wine license. It was moved by Commissioner MacNab, seconded by Commissioner Vollmer, that the Commis- sion concur in the recommendation of the Chief of Police, also concurred in by the City Manager, and approve the application for the wine license. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer and Mayor Sedivy, those voting No, none. Claims - Library Architects and Band Concert The City Manager presented the claim for the Library Architects and the Band Concert. He had checked the claims and found them to be true and lawful claims against the City of Bozeman and recommended they be approved and the Director of Finance be instructed to issue warrants in payment. It was moved by Commissioner Vollmer, seconded by Commissioner Swanson, that the claims be approved. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer, Commissioner MacNab and Mayor Sedivy, those voting No, none. Acknowlege Building Inspector's report The City Manager commented on the report of the Building Inspector and recommended it be approved and ordered filed. It was moved by Commissioner Swanson, seconded by Commissioner Vandeventer, that the report of the Building Inspector be approved and ordered filed. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Swanson, Commissioner Vandeventer, Commis- sioner MacNab, Commissioner Vollmer and Mayor Sedivy, those voting No, none. Montana State University - Homecoming Parade October 6, 1979 - lO:OO A.M. A letter received from Sonny Holland, Executive Secretary of the Alumni Association of the Montana State University, requesting permission to hold the annual MSU Homecoming Parade on Main Street, was presented. The Parade will originate exactly at 10:00 a.m. at Buttrey's Shopping Center preceeding east on Main Street to disperse in the vicinity of Heeb's Grocery Store. It was moved by Commissioner Vandeventer, seconded by Commissioner MacNab, that the Com- mission grant permission to hold the annual MSU Homecoming Parade. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vandeventer, Commissioner MacNab, Commissioner Vollmer, Commissioner Swanson and Mayor Sedivy, those voting No, none. I I I '...J..L I Adjournment I There being no further business to come before the City Commission, it was moved by Commissioner Vollmer, seconded by Commissioner Vandeventer, that the meeting be adjourned. The motion was carried by the following Aye and No vote, those voting Aye being Commissioner Vollmer, Commissioner Swanson, Commissioner Vandeventer, Commissioner MacNab and Mayor Sedivy, those voting No, none. rv// z./~ ~/~/ F /.b~~/..4- . MUND P. SEDIVY, SR., MA~~~__.Z--- / ATTEST: I ITY COMMISSION I