HomeMy WebLinkAbout08-02-16 NURB Minutes
NURB Meeting – August 2, 2016 1
Northeast Urban Renewal Board (NURB)
Regular Meeting
Tuesday, August 2, 2016
The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, August 2,
2016, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana.
Present: Absent:
Voting Members:
Erik Nelson, Vice Chair
Bobbi Clem
Daniel Doehring
Robert Pavlic
Jeanne Wesley-Wiese
Non-Voting Members:
John Usher
Commissioner Liaison:
I-Ho Pomeroy
Staff:
Brit Fontenot, Economic Development Director
Robin Sullivan, Recording Secretary
Guests:
Shane Strong, KLJ Engineering
Chris Nixon, 719 North Wallace Avenue
Maurice Quanbeck, 520 North 11th Avenue
Call to Order – Vice Chair Erik Nelson called the meeting to order at 6:30 p.m.
Changes to the Agenda – In light of concerns voiced by various Board members, Vice Chair
Nelson added a discussion on board vacancies to the agenda.
Public Comment – No comment was received under this agenda item.
Minutes – June 7, 2016. It was moved by Bob Pavlic, seconded by Dan Doehring, that the
minutes of the meeting of June 7, 2016, be approved as submitted. The motion carried on a
5-0 vote.
NURB Meeting – August 2, 2016 2
Discussion/Action Items –
Updates on current projects. Shane Strong, KLJ Engineering, provided the following
updates.
North Wallace Avenue. Shane Strong stated this project is moving forward on
schedule. There are generally no issues, except for breaking an abandoned gas line.
NorthWestern Energy arrived quickly, and the smell of gas was in the air, but the issue was
resolved. Shane stated that in Phase II, NorthWestern Energy will need to relocate its gas main
since it is located only a few inches below grade where the curb is being installed.
Shane Strong reported that all of the utilities in the first phase have been installed, and the
subgrade and base are now in. Pouring of one or two blocks of curb and gutter is scheduled for
next week. By the end of August, Phase I should be finished and the contractor will move to
Phase II.
Shane Strong stated the soils under North Wallace Avenue are very bad. Monies are in the bid
for subgrade stabilization; however, he anticipates that with the bad soils and amount of
subgrade stabilization needed, including the laying of grid fabric in some areas, $100,000 could
be added to the project. Also, the budget includes $35,000 for miscellaneous costs, and
approximately $4,000 of that has been spent to date.
Responding to Jeanne Wesley-Wiese, Shane stated there is a lot of top soil, clay and silt in the
existing subgrade; and those soils do not compact well.
Shane Strong noted that the project is currently on budget and on time; however, within two
weeks he should have some idea of any changes in costs. He still anticipates that Phase II of
the project will be done by the end of October.
East Peach Street/East Tamarack Street. Shane Strong reported that the geotechnical
report reflects soil conditions under both East Peach Street and East Tamarack Street are
similar to those that have been encountered under North Wallace Avenue. He met with Bob
Murray and Andy Kerr in the City’s Engineering Department, and they are adamant that full
reconstruction is needed for these streets. He reminded the Board that the preliminary design
was for edge replacement and curb and gutter; and that is the basis on which the initial
construction costs were based. Given this new information, he has revised the cost estimates
for full reconstruction of those streets, and those new figures are contained in his memo dated
August 2. The new figures increase the estimated costs for East Peach Street from $422,400 to
$743,800 and increase the costs for East Tamarack Street from $420,800 to $582,500.
Jeanne Wesley-Wiese stated the design was something this Board worked hard on because
they wanted something different. She stressed the importance that, particularly with East Peach
Street, that design be implemented.
Economic Development Director Brit Fontenot stressed that the designs prepared by Morrison-
Maierle were preliminary and not at the level for construction. He then noted that the road base
will not necessarily impact the road designs this Board has developed.
Jeanne Wesley-Wiese expressed concern that these top two priority streets will cost the full
amount this district can bond and, as a result, she feels the Board needs to review its priorities.
NURB Meeting – August 2, 2016 3
She then questioned if this district should be expected to bear the whole cost of these street
reconstructions.
Erik Nelson suggested that the Board discuss this issue with Director of Public Service Woolard,
particularly in light of the complete street reconstruction. He recognized that these streets may
carry less traffic than North Wallace Avenue, which would reduce the percentage of contribution
from the City’s reconstruction fund. He then stated he does not think it makes sense to consider
an SID for East Peach Street because half of it is in the district and half of it is out.
The Economic Development Director noted that once the Montana Department of
Transportation realigns the intersection of North Rouse Avenue and East Peach Street, the level
of traffic on East Peach Street could easily increase.
Jeanne Wesley-Wiese stated that she would like to see both of these streets improved, but not
at the expense of other projects on the Board’s priority list.
Responding to Erik Nelson, Economic Development Director Fontenot stated the projects in the
City’s capital improvement program for street reconstruction are set in the next few months, so
the Board’s proposed discussion with the Director of Public Service is occurring at a good time.
He then stated he will ask Craig Woolard to attend next month’s Board meeting to begin
discussions about funding for these street reconstructions. He recognized that both of these
streets are important because of the increase in traffic from the Story Mill Park development and
the North Rouse Avenue/East Peach Street intersection improvements.
Dan Doehring stated there are rumors that Karst Stage is moving and that apartments are to be
constructed on that corner, which will further impact traffic patterns in the area.
The Economic Development Director reminded the Board that if bonds are not issued, this
district will be terminated in just a few years. He stated it is important to think about projects
that will last for the next generation and will help to solve some of the existing problems, citing
the North Wallace Avenue improvements and the pedestrian crossing at the railroad as good
examples.
Shane Strong stated he will talk to the Director of Public Service about the street improvements.
He noted a water main replacement is recommended between North Ida Avenue and North
Plum Avenue, and the City is more interested in replacing sewer lines than trying to slip-line
them because of problems encountered. He suggested that, with the utility improvements
needed in both East Peach Street and East Tamarack Street, the Director may be more willing
to participate in the road improvements.
Railroad Crossing. Shane Strong reported that MRL dropped off the concrete panels
for the pedestrian crossing, and they should be installed before the road improvements reach
the railroad tracks.
Sewer Outfall. Shane Strong stated the stormwater outfall improvements will be made
in Phase II of the North Wallace Avenue improvements. He stated that, because the easement
where the stormwater pipe will be is a water main easement, the City has revised the language
to include stormwater maintenance; however, Kenyon Noble is not signing the easement but is
trying to use it to as leverage.
NURB Meeting – August 2, 2016 4
Discussion regarding board vacancies. Jeanne Wesley-Wiese voiced her concern about the
e-mail that Chair Tom Noble sent out to the Board, informing them that he was being replaced.
She noted that in the past, staff has informed Board members when their terms are expiring so
that they could respond to the Clerk’s office. Tom Noble did reapply for the Board, and she
feels he is an incredibly valuable asset to the Board. The way the City handled the situation
was disrespectful. She feels that if someone wants to serve as a voting member on the Board,
they should at least attend the meetings so they know what is happening.
Responding to Bob Pavlic, Commissioner Liaison Pomeroy stated that appointments to tax
increment financing boards are made by the Mayor with approval of the Commission; and
Mayor Carson chose to appoint a new person.
Bob Pavlic expressed his concern about the Mayor replacing Tom Noble on the Board,
particularly with his long service, knowledge and history.
John Usher reviewed the history of the notifications and e-mails between the City Clerk’s office
and Tom Noble, noting the first one is dated July 14. After a conversation with the Mayor on
Monday, Tom Noble wrote an e-mail to the Board members indicating he would not attend this
meeting so the Board could discuss how to move forward without him. He finds this situation
was handled poorly, but he also understands the Mayor’s desire to appoint a new person to
bring new ideas to the Board. He noted that he has served as a non-voting member on the
Board for more than a year and is informed on the Board’s activities, but does not want to serve
as a voting member. He noted the possibility remains for Tom Noble to serve in a non-voting
position and possibly continue to serve as Chair. He concluded by recognizing that the way this
was handled has engendered ill will and bad feelings.
Erik Nelson acknowledged that the notification of term expiration may not have been timely,
noting that none of the Board members know when their terms expire. He recognized, however,
that Board members serve at the pleasure of the Commission; and there is nothing that
guarantees an incumbent will be reappointed. He then asked how the Board members are to
be made more aware of when their terms expire so they are not blindsided. Following a brief
discussion, it was determined that the June agenda each year should include an update on
which terms are expiring as of July 31.
Bobbi Clem gave a brief biography of herself and why her schedule has not allowed her to
become an active member of this Board until now.
Vice Chair Nelson welcomed her to the Board.
Staff updates on items of interest to the Board. Economic Development Director Brit
Fontenot stated the first economic development plan for the City was adopted in 2009 and is
now being updated. The initial plan had lofty goals, and it was difficult to demonstrate any
movement on those goals. The updated plan is to provide a more narrow focus on what the
City can do to further economic development, including investing in infrastructure to drive
development, workforce development and education, and promoting and encouraging local
business growth while remaining open to incoming businesses.
The Economic Development Director noted that activity within the Midtown TIF District is
ramping up, with opening of the Midtown Tavern. Also more residential development will
NURB Meeting – August 2, 2016 5
hopefully be pursued within the district. He stated the name was changed from the North 7th
Avenue TIF to the Midtown TIF to create a better sense of place.
Update on financial status of NURB fund (preliminary fiscal year-end balance). Recording
Secretary Robin Sullivan distributed a spreadsheet showing revenues and expenses to date for
Fiscal Year 2015-2016, a spreadsheet showing the revenues and expenditures from inception
of the district to date, and a spreadsheet listing the items included in the 2016-2017 budget.
She briefly reviewed the information contained in the year to date expenditures, noting that the
amount charged against this fund for engineering for the North Wallace Avenue improvements
is well over the $25,000 budgeted; and she has asked the Finance Department to move those
monies to the appropriate fund. She also noted that the payment for special improvement
district assessments has already been transferred by the Finance Department, even though it
was not budgeted until the 2016-2017 fiscal year.
Set agenda for September 6, 2016 meeting or cancel meeting. Items to be included on the
September 6 agenda, in addition to the standard agenda items, are electing a Chair, update
from KLJ on project cost estimates, a discussion with Director of Public Service Woolard
regarding improvements to East Peach Street and East Tamarack Street, improvements in the
traffic circle on North Wallace Avenue, and bylaws for the Board.
FYI/Discussion (formerly Neighborhood News).
Update on project on Edgerley property. Erik Nelson provided an update on the
project for the Edgerley property, noting that the group he is involved with has also acquired the
Tin Works property so the total site is now two acres, which allows review as a planned unit
development. They have leased the Tin Works property back to the former owner for a period
of eighteen months; and it is their hope to have the plans for the new project done and approved
by the end of that eighteen months. The development team is going to meet in early September
to talk about goals and ideas for the development, after which the proposal will be presented to
the neighborhood, the community and this Board. He stated it will be some type of mixed use
project that includes housing. The intent is to provide reasonable housing prices; and various
options for providing that are being considered, including new market tax credits, low income tax
credits, and smart building design.
Responding to Bob Pavlic, Erik Nelson stated North Ida Avenue could be used for ingress and
egress to the project.
Jeanne Wesley-Wiese asked about providing open space for the project, and voiced her
concern that cash-in-lieu of parkland for projects in this immediate area have been spent in
other parts of the community in the past.
Rialto Theater project. Erik Nelson stated that work has just begun on the Rialto
Theater, noting that it will be a theater when complete. The sloped floor was framed in wood; it
has been removed and the former basement floor is now the stage floor. The seats will be
retractable, and the theater can be used for lectures for up to 120 seated people or the seats
can be retracted for concerts for up to 350 people. A small 40-person wine bar will be built on
the upstairs level. He concluded by stating demolition is currently underway and when it is
completed, the exterior will include the 1920s marquee.
NURB Meeting – August 2, 2016 6
Adjournment – 8:30 p.m. There being no further business to come before the Board at this
time, Vice Chair Nelson adjourned the meeting.
Erik Nelson, Vice Chair
Northeast Urban Renewal Board
City of Bozeman