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HomeMy WebLinkAbout2005-08-22 Minutes, City Commission MINUTES OF THE SPECIAL MEETING AND WORK SESSION OF THE CITY COMMISSION BOZEMAN, MONTANA August22,2005 ***************************** The Commission of the City of Bozeman met in regular session in the Community Room, Gallatin County Courthouse, 311 West Main Street, on Monday, August 22,2005, at 6:30 p.m. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff (arriving at 7:00 p.m.), Commissioner Lee Hietala, City Manager Chris Kukulski (arrived at 8:10 p.m.), Assistant City Manager Ron Brey, Director of Public Service Debbie Arkell, Director of Finance Anna Rosenberry, Director of Public Safety Mark Tymrak, Planning Director Andy Epple, Staff Attorney Tim Cooper and City Clerk Robin Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. Sianina of Notice of SDecial Meetina Each of the Commissioners, in turn, signed the Notice of Special Meeting. Public comment Mr. Roger Koopman, 811 South Tracy Avenue, stated that about two years ago, he raised strenuous objections to the City contributing $25,000 toward funding for the Gallatin Valley Independent Business Alliance (GVIBA), based on his concerns that the national alliance's connection to strident political agendas. He noted that the Bozeman Daily Chronicle agreed with his concerns, referencing the woefully inadequate research done before the Commission's decision to make the contribution. At that time, Assistant City Manager Ron Brey prepared an excellent set of guidelines; however, those guidelines were reviewed by the Commission but never revisited. He noted that in conjunction with the decision to provide funding, there was to be an annual audit of the GVIBA books; it appears that has never been done. Further, he noted GVIBA was in no way to be involved in political issues, but was to promote the "buy local" campaign. On August 5, however, Commissioner Youngman sent an e-mail to Suzie Johnson soliciting assistance with a public campaign to retain garbage collection services, suggesting there is a political agenda within the organization. He asked that the Commission do an immediate audit of the books of GVIBA and adopt the funding guidelines that are long overdue. Commission Resolution No. 3838 M endorsina bond issue for new iail Included in the Commissioners' packets was a copy of Commission Resolution No. 3838, entitled: COMMISSION RESOLUTION NO. 3838 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, SUPPORTING THE $20,000,000 GENERAL OBLIGATION BOND PROPOSED BY THE GALLATIN COUNTY COMMISSION TO FUND THE ACQUISITION, DESIGN, CONSTRUCTION, EQUIPPING AND FINANCING OF AN ADULT DETENTION FACILITY ON PROPERTY OWNED BY GALLATIN COUNTY AT THE LAW AND JUSTICE CENTER SITE. Included in the Commissioners' packets, was a copy of a power point presentation regarding the jail population breakdown; distributed just prior to the meeting was a memo forwarding additional information on the bond issue and a status report on the inmates as of August 19. Director of Public Safety-Police Mark Tymrak reminded the Commission that mail ballots for the jail bond issue are due August 30. He noted that his memo provides a brief history of this issue and a snapshot of the individuals incarcerated as of 6:00 a.m. on August 19. He suggested the citizens of Bozeman need 08-22-05 - 2 - to hear a clear voice from the Commission on this issue and encouraged them to adopt Commission Resolution No. 3838. He noted the subject has been studied and researched and a nationally recognized consultant has been retained to assist in determining the best judicial system for the area. Ms. Dorothy Bradley, staff of the Criminal Justice Coordinating Council (CJCC), noted that during her 16 years as a legislator, she spent a lot of time on criminal justice issues and was excited to accept a job that has allowed her to participate in local justice reform on the local level. She stated the need for a criminal justice assessment as one of the big reasons the bond issue failed three years ago, and noted that many steps have been taken to address that issue and to undertake many reforms in the system. She identified many of the programs that have been implemented over the past three years and noted that the consultant has indicated a 160-bed facility is needed to serve the community for now and the next twenty years in light of the number of potential inmates diverted through those programs. Responding to Commissioner Youngman, Sheriff Jim Cashell stated that the new jail is to be a phased facility, with 160 beds in the initial phase and the potential for additional pods in the future. He then indicated that all operations of the jail are funded through a public safety mill levy and, as a result, any additional operations costs would not impact other County programs or operations. Further responding to Commissioner Youngman, Sheriff Cashell stated the $7.8 million annual operations cost that was sUjgested in the newspaper is based on a rule of thumb involving the initial construction costs while the 3.5 million estimate by the County is based on actual costs and anticipated additional costs. He indicated that, if all tax revenues from growth are earmarked toward the additional costs, then there will be sufficient monies to operate the facility when it is constructed. Responding to additional questions from Commissioner Youngman, Sheriff Cashell stated that the 160-bed facility does not take the needs of other counties into consideration; however, if beds are available once the facility is completed and open, they will be made available to other counties and the state, thus generating revenue for Gallatin County until they are needed. In continued response to Commissioner Youngman, Ms. Dorothy Bradley stated the CJCC is comprised mostly of elected officials; and those individuals are committed to the programs that provide alternatives to incarceration. She stressed that, if these programs were not in place, more than 160 beds would be needed. Mr. Sam Harvey, 606 South 13th Avenue, asked that the Commission not endorse the bond issue until it has been revised down to something the community can afford and that doesn't take monies from other programs. Commissioner Krauss noted the County and the justice system have responded to the problems with the previous bond issue and, while he has some concerns that the commitment to alternative programs won't remain, he feels it is appropriate to support this bond issue. He noted that this generation of Bozeman residents has not dealt with issues like a new high school or a new jail; and it is the community's responsibility to do so. As a result, he indicated his support for adopting this resolution. Commissioner Kirchhoff arrived at 7:00 p.m. Commissioner Youngman encouraged the County to continue with the new alternatives that it has begun to implement. She recognized that when money gets tight, it is difficult for a local government to continue funding those alternatives, but noted it is important that the County do so. She then noted the current facility is not safe for either employees or inmates, and she finds the public safety issues are paramount and need to be addressed. As a result, she supports the bond issue. Commissioner Hietala noted there is no question that a new jail is needed. He looks forward to the continued development of alternative programs and the rental of underutilized beds to other counties and the state, thus generating revenues to supplement the operational costs. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that Commission Resolution No. 3838, endorsing the bond issue for new jail, be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Hietala and Mayor Cetraro; those voting No, none. Commissioner Kirchhoff abstained due to his late arrival and missing the presentation and discussion. 08-22-05 - 3 - City Manaaer's budaet recommendations for Fiscal Year 2005M2006 This was the time and place set for the public hearing on the City Manager's budget recommendations for Fiscal Year 2005-2006. Public hearing. Mayor Cetraro opened the public hearing. Director of Finance Anna Rosenberry distributed the power point presentation and then highlighted the memo included in the packet. She noted the memo includes a list of the changes that have been made since the City Manager's recommendations were printed. Those revisions include, for the General Fund: (1) a $30,000 decrease in the amount budgeted for salaries due to a bargaining unit not accepting the City's offer to implement a market-based salary survey; (2) a $1,040,000 increase to cover the short-term bridge loan for the new library construction; (3) a $12,482 increase in funding for 9-1-1 dispatch services to fully fund the request for these joint services; (4) a $15,000 decrease in funding for the Parking Commission to eliminate the subsidy; and (5) $164,000 in additional revenues resulting from the certified taxable value exceeding estimates. The Director of Finance noted that the parking garage also needs to be added to the budget since it is now an impending project. Director of Finance Rosenberry noted that this budget includes revenues in excess of $57 million and expenditures in excess of $72 million, including over $27 million in capital projects. She also indicated that this budget includes three new police officers, expanded hours for firefighters, one service worker in the Water/Wastewater Divisions and one new GIS position, which is a small portion of the number of additional personnel requested. She concluded by forwarding staff's recommendation that the Commission consider not levying two mills, which will leave a 14.6-percent reserve in the General Fund. Responding to Commissioner Krauss, the Director of Finance confirmed that the recommended budget includes $213,000 more in revenues than expenditures in the General Fund. Responding to questions from Commissioner Hietala, the Director of Finance stated it is less expensive to fund additional hours for the firefighters than to hire additional personnel because of the additional benefit costs triggered, including health insurance premiums. Responding to Commissioner Hietala, Director of Finance Rosenberry stated the additional 9.6 percent in revenues is from new construction and annexations. Mr. Frank Schledorn, 1208 North 8th Avenue, expressed concern about a reserve that is big enough to allow the Commission to unilaterally purchase items such as the old fraternity house without input from the public. He suggested that a limit needs to be added on the amount that the Commission can spend without a public vote. Since there were no Commissioner objections, Mayor Cetraro closed the public hearing. Decision. Commissioner Krauss noted that the bridge loan for the library puts the General Fund in the red and impacts the reserve. He suggested, however, the Commission may be missing an opportunity to lower the mill levy a little more, suggesting that potential sale of the Story Mansion could restore monies to the reserve during the fiscal year. As a result, he suggested that the Commission decrease the mill levy by one additional mill. He then indicated he does not support the proposed increase in funding for 9-1-1 dispatch. He concluded by stating a willingness to consider a limit on monies expended from reserve on items not in the capital improvement program except in the case of an emergency. Commissioner Youngman stated that she, too, is concerned about the additional monies for 9-1-1 dispatch, stating she wants to see a funding plan from the 9-1-1 Administrative Board that addresses the existing inequities in funding. She stressed that she does not want to destabilize the program and would be willing to consider a mid-year amendment if a funding plan were provided. Commissioner Hietala voiced his interest in further reducing the mill levy, reflecting a determination to remain fiscally responsible when additional expenditures might be possible. 08-22-05 - 4 - Responding to Commissioner Kirchhoff, Director of Finance Rosenberry stated that a one-mill levy decrease would lower the amount added to the reserve by $58,603 but would not impact the proposed expenditures. Responding to Commissioner Youngman, Director of Finance Anna Rosenberry acknowledged it has been a struggle to balance the budget while honoring the City's commitment to fund the library bridge loan. She stressed that, with the restructuring of this loan, it is a short-term commitment that will probably not impact next year's budget. She noted the target is to maintain a 15-percent reserve, and the proposed reduction of one additional mill will lower the City's reserve to 14.27 percent. She characterized this as an acceptable level, noting that it would provide funding for just under two months of expenditures. Commissioner Krauss reiterated his interest in reducing the mill levy by one additional mill, noting that the result is to still add $155,000 to the reserve. He then noted that the potential $1.3 in revenue from sale of the Story Mansion and the $1.05 million bridge loan for the library are "million dollar decisions that really affect the reserve". Commissioner Kirchhoff characterized the proposed one mill decrease as purely symbolic and a "feel good" action, noting that it will result in less a $5 decrease in property taxes to individual property owners; however, he also recognizes the benefit of doing so. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that staff be directed to bring back a resolution adopting the budget for Fiscal Year 2005-2006, based on the City Manager's recommendations with revisions as presented. It was moved by Commissioner Krauss, seconded by Commissioner Hietala, that the motion be amended to include a reduction of 1 mill, or $58,063, in property tax revenues, and to eliminate the recommended addition of $12,482 for 9-1-1 joint dispatch, with the recognition that a budget amendment would be considered upon presentation of a plan by the 9-1-1 Administrative Board for a more equitable funding arrangement for city and county residents. The amendment carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Hietala, Commissioner Kirchhoff, Commissioner Youngman and Mayor Cetraro; those voting No, none. The main motion, as amended, then carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Intent to caoture increase in revenue from new construction and increased valuation of mill for Drooertv tax This was the time and place set for the public hearing on the intent to capture the 9.1-percent increase in revenue from new construction and the increased valuation of a mill for property taxes. Public hearing. Mayor Cetraro opened the public hearing. Director of Finance Anna Rosenberry noted that the presentation and discussion in the previous agenda item pertain to this agenda item as well. She stated that the Commission's previous action results in a decrease in the percentage of revenues captured from new construction and increased valuation. She stressed that, under current statutes, the City may bank tax authority for future projects, unlike past limitations. She reminded the Commission that staff has initially recommended that the property tax levy be set at the highest level possible, with monies earmarked for a reserve to fund future capital projects, such as a new city hall, police station or fire station. Due to the fact that the City has no plans in place for those large capital items, the Commission did not support that recommendation, and the result was staff's administration to decrease the levy by two mills. No additional public comment was received. Since there were no Commissioner objections, Mayor Cetraro closed the public hearing. 08-22-05 - 5 - Decision. Responding to Commissioner Krauss, City Manager Chris Kukulski stated the proposed budget contains adequate budget authority to cover the costs of a transfer station that would be incurred in the current fiscal year. He then indicated that the future of solid waste services will be the subject of continued discussion in two weeks. It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the Commission approve an increase in property tax revenue from new construction and increased valuation of the mill to fund the budget approved in the previous agenda item. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Mayor Cetraro; those voting No, none. Review of bliaht study for North 7th Avenue corridor Included in the Commissioners' packets was a memo from Assistant City Manager Ron Brey forwarding the blight study for the North 7th Avenue corridor. Mayor Cetraro announced that he manages property and operates a business within the North 7th Avenue corridor. As a result, he will not participate in this discussion and will not vote on this issue. Assistant City Manager Brey noted that one of the high priority goals identified by the Commission last winter was the creation of a tax increment financing district for North 7th Avenue and West Main Street. The creation of a district includes several distinct steps, the first of which is an evaluation of the area to determine if blight exists. If blight is found, the next step is to prepare an urban renewal plan that includes how the tax increment will be used to redevelop and rehabilitate the area. He noted this is the second blight study to be considered this month, with a private entity embarking on the proposed district in the northeast sector of the community. The Assistant City Manager stated that, when he began investigating the North 7th AvenuelWest Main Street corridor, he found different circumstances exist between the two streets. Also, the business owners along North 7th Avenue requested monies from the large scale retail development fund to develop a plan for connectivity that provides for an identifiable corridor. Since no similar expressions of interest have been received from the West Main Street corridor, staff has proceed with the North 7th Avenue corridor only. The Assistant City Manager reviewed the proposed boundaries of the district, noting that they generally include the commercially zoned properties along both sides of North 7th Avenue between West Main Street and the viaduct, except for those parcels located in the county. He indicated that the boundaries have been expanded to include the Whittier School on North 5th Avenue and to include residential properties immediately adjacent to commercially zoned properties. Assistant City Manager Brey noted the difficulty at this juncture is the designation of this area as blighted. He stressed that this is a statutory requirement, but the declaration can be based on defective or inadequate street layout, age obsolescence of public improvements, improper subdivision and platting, mixed uses and deterioration of sites, and development that no longer conforms to new regulations. He noted that in this instance, pUblic infrastructure has been identified as the area where blight exists, particularly since there are areas where there are no sidewalks, sidewalks adjacent to the street without a boulevard, and areas without curb and gutter. He recognized that some streets are located within rights-of- way not wide enough to accommodate sidewalks; in those instances easements will be needed. He stressed that in no circumstance was the upkeep of a private residence identified as a contributing factor to blight. The Assistant City Manager noted that the resolution to be considered by the Commission in the next agenda item contains the same language as the one adopted for the tax increment financing district in the northeast sector that foregoes the government's condemnation authority for private enterprise. He suggested that, if the Commission chooses to adopt the resolution, appointment of a planning committee be considered at the September 6 Commission meeting. He noted that the request for proposals for a connectivity design has been advertised, and it has generated some real interest. Commissioner Krauss noted that North 7th Avenue has been identified as one of those areas that would be impacted by the large scale retail development on North 19th Avenue. 08-22-05 - 6 - Responding to questions from Commissioner Krauss, the Assistant City Manager indicated that tax increment financing monies may be used to encourage private revitalization and redevelopment efforts. Ms. Joanne Troxel, 607 West Lamme Street, voiced concern about various areas of the community being designated as blight areas. She noted that a tour of the northeast sector revealed people upgrading and being protective of their homes. Her own home is three houses from North 7th Avenue, located in an historic area and specifically listed on the National Register of Historic Places. She recognized that portions of North 7th Avenue could be declared a blighted area, and its intersection with West Lamme Street would be safer with a traffic signal. Also the installation of street lights and sidewalks would make the corridor more humane, but she questions including her home within the boundaries of the district. She concluded by cautioning that having areas of the community declared to contain blight is confusing and is resulting in many residents being concerned. Dr. Sherry Reid, 609 West Mendenhall Street, noted there has been little communication between the City and the residents about this proposed tax increment financing district, and they have had little notice to prepare for this meeting. She stated a review of the the Bozeman 2020 Community Plan revealed that it does address land use and neighborhood plans. Also, she picked up a copy of the blight study and asked how the data was collected and how it compares to other areas of the city. She asked that additional information be provided on this issue as it moves through the process so residents can comment from an evidence-based platform and that people interested in serving on the committee to prepare the plan be informed of where they can apply. Mr. Sam Harvey, 606 South 13th Avenue, noted that this blight study describes every area of town. He then asked when the blight study began and who in the North 7th Avenue corridor was notified that the study was being done, particularly since he just found out about the study two days ago. He stated that he is one of the owners of the property at 1008 North 7th Avenue, which was built in 1962 and, until last month, the complex had three of its original renters. He concluded by stating his opposition to being included within the proposed district. Mr. Mike Hope, owner of 726 North 7th Avenue, acknowledged the frustration and concerns that have been expressed. He noted that this process began six months to a year ago when several business owners approached the City about the possibility of creating a district. He stressed that this district will not result in increased costs to property owners but will give the North 7th Avenue corridor an opportunity to compete with the North 19th Avenue and North 27th Avenue corridors. He noted that he is involved in three properties in this corridor, and nearly $1.5 million has been invested in those properties in recent years. Mr. Hope stressed that the creation of a tax increment financing district is the only avenue to encourage economic development. He encouraged the audience to look at downtown Bozeman, one of the most vibrant downtowns in the state, noting that the creation of a tax increment financing district has encouraged improvements that further enhance it and its viability. He stated that the development of a connectivity plan and the creation of a tax increment financing district will help to protect the value of the properties in this corridor and allow the businesses to compete with the other new corridors in the long term. Mr. Dave Loen, 603 West Lamme Street, expressed concern that it has been difficult to get information about this proposed district in the time between receiving notice and this meeting. He questioned why homes not zoned "B-2" have been included in the district and asked if those homes could also use some of the monies from the tax increment. Mr. Jim Dickerson, 421 North 10th Avenue. noted that this issue has generated a number of questions and concerns and asked that people be given an opportunity to become informed before moving forward with the creation of a district. Mr. Frank Schledorn, 1208 North 8th Avenue, stated his back yard borders the proposed tax increment financing district and expressed concern that the blight designation might negatively impact the value of his home. He noted that he has lived in his home since 1960, and in the past 45 years he has seen North 7th Avenue change from a tree-lined, two-lane road to a four-lane street; and he anticipates even further changes along that roadway. Mr. Carl Solvie, GranTree Inn, noted references have been made to how beautiful North 7th Avenue was years ago; and that is what many of the businessmen are trying to bring back. He stated, unfortunately, the word "blight" must be used to do so. He does not see any negatives in the process, which involves 08-22-05 - 7 - improving the value of properties without raising taxes. He encouraged the Commission to proceed with the steps necessary to create the district. Mr. Mike Gaffke, Bozeman Inn, 1235 North 7th Avenue, applauded the City staff and business owners for their foresight in identifying a mechanism for promoting and assisting with the funding of improvements to the North 7th Avenue corridor. He characterized this as a diverse corridor and an important entrance to the community and encouraged the Commission to support the creation of the proposed district. Assistant City Manager Brey responded to several of the questions and issues raised. He noted that most of the residential properties in the district are located within the "B-2" zoning; however, there are a few exceptions where a residence adjacent to a commercial property was included in the district to allow for mitigation measures on the residential property to be funded, at least in part, through the district. The Assistant City Manager reviewed the manner in which tax revenues are divided under a tax increment financing district, noting that the revenues distributed to the city, county and school district are frozen at the level they were when the district was created, with any additional tax revenues being placed in the tax increment. He noted that tax increases are being market driven at this time; with revitalization, those increases could be even greater. Assistant City Manager Brey stated there is no statutory requirement for notice to be published or mailed to property owners for this step of the process; however, he felt it was important to provide notice. He noted that the process began with the Commission identifying the high priority goals for the upcoming year, followed by a meeting with interested parties along North 7th Avenue and then gathering of material. He stressed that the next step is drafting of the plan, and is one in which it is important to obtain public input and assistance. He also stressed the next step is where education on the tax increment begins. He concluded by stressing the composition of the committee preparing the urban renewal plan is critical. He indicated that material can be made available on the City's web page as that plan is being developed. City Manager Chris Kukulski stated that, while he has never lived within a tax increment financing district, he has been involved in the management of eight districts. Also, he has lived immediately outside a prominent historic district that was also involved in a tax increment financing district and found the cost of replacing the sidewalk in front of those properties was borne by the district while he had to pay for that portion in front of his home. He then indicated that he has not previously been involved in the creation of a district and has found this process interesting, stressing that this is the only economic development tool the City has available. Commission Resolution No. 3839 M declarina that bliaht areas exist within the North 7th Avenue corridor Included in the Commissioners' packets was a copy of Commission Resolution No. 3839, entitled: COMMISSION RESOLUTION NO. 3839 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING THAT BLIGHTED AREAS EXIST WITHIN THE MUNICIPALITY AND THE REHABILITATION, REDEVELOPMENT, ORA COMBINATION THEREOF OF SUCH AREA OR AREAS IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY, MORALS, OR WELFARE OF THE RESIDENTS OF SUCH MUNICIPALITY. Commissioner Hietala noted that once one gets beyond the word "blight", there are more positive words, such as "improvement" and "urban renewal". He stated that this corridor has been under study for six months, so the Commission is not jumping into a decision. He concluded by expressing his support for this proposed district. Mayor Cetraro noted that he reviewed the letter and recognized that it was straight forward and not very friendly. Commissioner Kirchhoff noted that the creation of a tax increment financing district helps facility a partnership in which the City's role is to implement the expressed wish of property owners along the North 7th Avenue corridor to improve it. He stressed that the antiquated language in State statute requires that 08-22-05 -8- the City determine "blight" exists and compared it to the antiquated language in the zoning section of the statutes. He concluded by stating he finds this is an opportunity to help improve the corridor with the help of the property owners. Commissioner Krauss noted that blight, as defined by State statute, is followed by encouragement to invest in and protect the community. He stated that the past decade has seen unprecedented growth and investment in the community. He then stressed that the most precious area of the community, its downtown, was declared a blighted area several years ago, and since that time, there has been an investment in the community and the downtown has grown. He admitted that "blight" in its common usage is a terrible word, but in this case, it results in a benefit to the area. He indicated that he is sensitive to the idea that not enough information has been provided or early enough to allow property owners to become educated on the process. He noted, however, he does support the creation of a tax increment financing district to make this corridor more pedestrian friendly and a place where people will go. It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that Commission Resolution No. 3939, declaring that blight areas exist within the North 7th Avenue corridor, be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Commissioner Kirchhoff; those voting No, none. Mayor Cetraro abstained. Authorize staff to seek aDDllcants for a committee to oreoare an urban renewal Dlan for DroDosed North 7th Avenue Tax Increment Flnancina District Assistant City Manager Ron Brey encouraged the Commission to consider a committee structure of ten to twelve individuals that represent all interested parties. Mayor Cetraro suggested the application form be made available at City Hall, at the Library and on the City's website. Commissioner Youngman suggested that adjacent neighbors, business owners and residential property owners be included on this committee. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that staff be authorized to seek applicants for a committee to prepare an urban renewal plan for the proposed North 7th Avenue Tax Increment Financing District, with the committee to be comprised of ten to twelve members including a combination of business owners, residential property owners, and one from the adjacent residential properties if possible. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff and Commissioner Hietala; those voting No, none. Mayor Cetraro abstained. ADDolntments to Desian Review Board. Downtown Business Imorovement District Board (BID) and Tree Advisorv Board Included in the Commissioners' packets was a memo forwarding the list of applicants for the various boards and commissions. Design Review Board. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that Michael Pentecost be appointed to replace Bill Hanson as a professional member on the Design Review Board, with a two-year term to expire on June 30, 2007. The motion carried by the fOllowing Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Downtown Business Improvement District Board (BID). It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that Travis Collins be appointed to replace Sarah Young, with an initial term to expire on June 30, 2007. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Tree Advisory Board. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that Chris Nixon be reappointed to the Tree Advisory Board, with a two-year term to expire on 08-22-05 -9- June 30, 2007. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Break M 9:15 to 9:20 D.m. Mayor Cetraro declared a break from 9:15 p.m. to 9:20 p.m., in accordance with Commission policy. Public comment Mr. Mike Hope, 2215 Arrowleaf Hills, noted that Thail Davis, Downtown Bozeman Partnership, recently testified about the good service that the private hauler has provided for the downtown. He stressed that this is simply one person's testimony and that no board has taken action on the issue of privatizing solid waste services in Bozeman. Informal review M Baxter Meadows Planned Unit Develooment M modify oreviouslvMaooroved conceot olan for Dlanned unit develoDment to allow aoolicant to develoo -340 acres as a neoMtraditional mixed use develoDment M Baxter Meadows West. LLC (ZM05103) Included in the Commissioners' packets was a copy ofthe information included in the July 11 packet. Contract Planner Lanette Windemaker distributed a memo addressing the revised plan submitted late last week. She concentrated on the conceptual plan for the east quadrant of the development, noting the new plan includes a change in the entire portion east of the linear park to community commercial mixed use. She recommended that, to ensure the appropriate mix between residential and employment opportunities is provided, the amount of non-commercial and residential uses on the ground floor be limited. She indicated that under this proposal, the height is to be reduced from the 96 feet originally proposed to 69 feet maximum height. She noted that under the code, a maximum of 49 to 57 feet is allowed in the "B-2" zoning district, while a maximum of 70 feet is allowed in the "B-3" district in the core of the community. She noted that any conditional use permit application should include to-scale drawings. Contract Planner Windemaker turned her attention to the village green or plaza area. She reminded the Commissioners that with Phase II, they accepted a deviation for less than 50 percentage street frontage for the plaza area, and stressed that the east side of the plaza does not yet have preliminary plan approval. She turned her attention to the quadrant south of Baxter Lane, noting the applicant has requested the area currently designated as the bed and breakfast and the barn/community center be changed to multi-family residential and neighborhood services since the current designations have not become viable. She noted that, if the Commission approves this change, the residential units should face Baxter Lane to complement the existing residential development on the north side of the street. The Contract Planner noted that a YMCA parcel and a school parcel are now being considered near the regional park; and the applicant is requesting that the donation of land for the school be accepted in lieu of parkland dedication, as allowed by a new State law taking effect October 1. Under that statute, she noted that if the school district chooses to dispose of the property, it reverts back to the City for park purposes. Further, she noted that the land must be transferred to the School District through the dedication process since sale does not meet the parkland dedication requirements. She then noted that a differentiation must be provided between parkland and open space and the basic trail system needs to be depicted for the entire development. She concluded by noting that staff has recommended the parkland adjacent to rear yards to reconfigured and that rear yards not be allowed adjacent to streets. Mr. Mike Potter, PC Development, stated his company has become involved with Mr. Jerry Williams in the development of this portion of the Baxter Meadows Subdivision. He recognized that the philosophy behind Baxter Meadows in innovative and pioneering, with a lot of dynamics involved. He reminded the Commission that the original concept plan was approved in 2001, before the Bozeman 2020 Community Plan and the unified development ordinance were adopted. That has resulted in the need for revisions to the concept plan as approved, though what he identified as a clumsy process. He noted the original plan included approximately 2,000 dwelling units; and the new plan includes possibly up to 200 less units. Both the original concept plan and this concept plan include diversity of housing types and price points, including attainable stick built homes. The village center and the 1 OO-acre regional park are also vibrant parts of the 08-22-05 - 10 - project. He indicated that this plan is on good financial footing and he anticipates the development will begin to progress more rapidly now. Mr. Potter noted that Mr. Williams has been recently approached about a potential school site, in particular, a 10-acre site for a new middle school. That site is to be located adjacent to the regional park and the YMCA to allow for cross-over uses of parking, athletic fields and open space. Because of those desires, additional revisions have been proposed in that section of the subdivision, to relocate the street and residential lots to provide space for the school. Mr. Potter turned his attention to the village area, noting that they are working on detailed thinking of that area. He agrees with the mixed use concept but asked that no percentages be attached to the various uses to give them the flexibility needed to provide a good mix that meets market needs and results in a viable development. Mr. Jason Leep, PC Development, gave a lengthy power point presentation of the concept plan, including the old plan and the new plan. He stated the central core is to continue as previously planned. He then noted that 130 village and traditional lots are proposed on the west side of the subdivision. He showed architectural renderings of the various house types, including the village home, the traditional home and the patio home. He stated that a middle school typically needs 30 acres to function adequately. In this instance, about 12 acres will be owned by the school district, with an additional 18 acres being leased from the County and the opportunity for shared parking. Mr. Leep stated that a row of houses is envisioned to the south of the village center, which is to include convenience stores, boutique hotel, shops and a central active plaza area. Mr. Leep then turned his attention to the concept plan for the overall development, noting there are approximately 156 developable acres within the Baxter Meadows Subdivision. At ten units per acre, that allows for 1600 residential units; and the applicant proposes closer to 1800 or 2000 dwelling units. He then indicated that, within a 6-acre parcel in the subdivision, a proposal for a 280-unit complex has been considered informally. Mr. Leep addressed several of the items raised in the staff reports. He noted the previous staff report requested a delineation between parkland and open space, and indicated a willingness to provide that information as long as it does not need to be very detailed. He stated there are 460 acres within the planned unit development, including the 100-acre regional park. There are 246 net acres available for development, with the plan setting aside 80 acres for parkland and open space. He noted the only open space is platted within Phase I; the remainder is parkland. He stated that, if the regional park is included in the parkland calculations, a total of 180 acres of park is being provided and, in reality, that is also open space. Mr. Leep turned his attention to restricted size lots, noting that this planned unit development fully meets that requirement. He stated that, although some of the lots are smaller than 5,000 square feet, the houses are the same size as others within the development and are actually the cheapest houses in the Bozeman market. He acknowledged that the eastern quadrant of the project is the stickiest. He noted that the vast majority of uses on the ground level are to be commercial under the City's code and, while he doesn't disagree with the intent of the zoning designation, the applicant wishes flexibility on that provision to provide more high-density housing with that zoning district if that is identified as preferable. He then addressed the issue of height, noting that the proposed height has been reduced from the 96 feet in previous proposals to 69 feet. He showed computer renditions which show that, if a 70-foot-tall building is set back from the street, it does not inhibit view of the mountains. Mr. Leep noted that double front lots are allowed along arterials, and steps will be taken to ensure the architecture of homes on those sites is appropriate. Also, landscape strips will be used to enhance those lots. Mr. Leep indicated that, in Phase I, the applicant is proposing to revise a portion of Phase I to convert a live/work area to medium-density residential. He also noted that the section previously designated as community center is proposed as medium-density residential. He stated the community center has not been a viable part of the development to date, and the applicant has determined the regional park, school parcel, YMCA complex would create a better community center for the entire community. 08-22-05 - 11 - Mr. Leep concluded by identifying the issues on which the applicant would like feedback. Those include the request for flexibility rather than a percentage of residential allowed on the ground floor in the commercial zoning, building heights, and lots alongthe perimeter of the central plaza to mirror the other side of that portion of the project. He recognized the concerns about parkland adjacent to the rear yards of residential sites, but noted this is a commercial area where such encroachments are not such an issue. Responding to Commissioner Krauss, Mr. Leep stated the School District has identified the site adjacent to the regional park as a desirable location for a new middle school and has indicated an interest in working with the YMCA on shared uses. He then indicated that the developer is committed to selling land for the school site and YMCA and noted that under a statutory change that becomes effective October 1, if the land is sold to a school district, it can be counted toward parkland dedication requirements. Commissioner Krauss voiced concern about infrastructure to support a school site, particularly the street system. City Manager Chris Kukulski stated that Superintendent of Schools Redburn called him to clarify the process and to stress that the School District is interested in the site but must go through the appropriate public process prior to making a commitment to pursue its acquisition. Commissioner Kirchhoff recognized the innovative concepts within the Baxter Meadows Subdivision, noting he finds it is a nice neighborhood. He then indicated he feels the existing concept plan for the southeast quadrant of the development is better than the new one. He stated he does not have a problem with a 70-foot-tall building in the central core as long as it performs architecturally, with detail and appropriate materials; however, he recognized a majority of the Commission may not share that view. He then stated he would like to see better connections between this development and West Winds Subdivision. He then concluded by voicing his frustration that the other bullet points on which the applicant is seeking input are simply reflections of disagreements between the developer and the staff; and stated he does not want to see a concept plan for this development again. Commissioner Krauss expressed his support for staff comments regarding the neighborhood center, voicing his preference for a center with streets around it. He indicated concurrence with Commissioner Kirchhoffs comments regarding street connectivity and encouraged better planning of the southeast quadrant. He does not support the proposed row of multi-family development because of the lack of mix of housing types and the potential that it will become "college student ghettos". He concluded by noting that, aside from his concerns about adequate infrastructure support, he feels the proposed school site is good. Commissioner Kirchhoff stressed the importance of a school site that is wholly surrounded by public rights-of-way. Commissioner Krauss responded by recognizing the benefit of streets around a school site but expressed concern that configuration would require students to cross a street to access the athletic fields. Commissioner Youngman stated the public rights-of-way need to be carefully considered, particularly since children will be bicycling to school. She then indicated she has no problem with the smaller restricted size lots with standard size houses as long as they meet lot coverage limitations. She noted that, at annexation, the City did not include the mandate for a certain amount of affordable housing in light of Mr. Williams' commitment to providing such housing. She indicated that she would appreciate a progress report to ensure that that commitment is being met, including whether any of that housing meets the City's definition of affordable. Commissioner Youngman then turned her attention to the proposed heights, stating she has a real problem with the proposal. She stated it is not good urban design to have heights taller than the downtown and voiced concern about the potential of sapping energy from the core of the community. She likes the concepts of the development and the mix of uses but, since this is a relatively flat, open area that is visible from the freeway, the proposed heights are inappropriate. She recognized that when more development occurs in the area, increased heights may be more acceptable. She concluded by expressing support for the previous comments regarding connectivity and the southeast quadrant of the project. Commissioner Hietala supported the phasing of decisions about ground floor residential uses in the "B-2" zone. He then stated he does not support the proposed height a mile from North 19th Avenue in what appears to be the country. He expressed support for the reverse frontage lots with superior architectural 08-22-05 - 12 - enhancement of the structures. He concluded by encouraging the applicant to be more creative with open space, noting that more utilization of those spaces should be provided. Commissioner Kirchhoff recognized the problem with the Baxter Meadows Subdivision is that it is "25 years too soon". He acknowledged that creating a viable commercial area will be difficult and that the proposed 70-foot height might be excessive. Mr. Mike Potter, PC Development, noted his company has become involved in the development of Baxter Meadows Subdivision. He responded to some of the Commissioner comments, recognizing that the Village area will take some time to mature and expressing a willingness to carefully work through the various phases as they develop. He acknowledged that the ingress and egress for the school site is critical and indicated a willingness to work with the School District on those issues. He also stated that he will make efforts to provide connectivity to the West Winds Subdivision via local streets. He concluded by indicating that parks and open space will be identified on the preliminary plats and by stating a willingness to provide a status report on the affordable housing issue. Mr. Greg Allen noted there is no place to build tall buildings in the downtown area at this time, and there are limited areas of "B-2" zoned properties available. He voiced concern about the mixed signals he is receiving, particularly in light of the comments received during the informal review of his mid-rise apartment project within Baxter Meadows Subdivision. Commissioner Youngman stated that residents in Baxter Meadows Subdivision have identified the need for more distance between the garage and the alley. She then returned to the issue of height, stating that during informal review of the Vida Urbana project, she recalls mild receptivity to 57 feet and some discomfort with the proposed 65-foot height and expressed here interest in sticking to the general standards. Commissioner Krauss stated that his support of any excess height would be dependent on the specific design of the structure and the project. Mr. Jerry Williams, developer, reminded the Commission that height has been an issue within this development since its inception and asked how that issue can be resolved so that developers may move forward with specific projects. Mr. Mike Potter expressed an interest in setting the ground rules within which the developers may work. In doing so, he noted it would be nice to have an identified height within which to work, recognizing that approval is dependent on a specific proposal. He stated that, at the present time, that limitation is 57 feet. Commissioner Kirchhoff stated he agrees with the parameters that have been set, noting that the Commission could still consider a proposal at 65 feet under the formal review process. He then encouraged the applicants to move forward, relying on staff as the best interpreter of the City's position instead of arguing with them. He concluded by noting that asking for specific answers from the Commissioners during an informal review at 11 :00 p.m. is the worst idea. Mayor Cetraro thanked the applicants for the opportunity to review this informal application. Discussion M FYI Items The following "For Your Information" items were forwarded to the Commission. (1) Invitation to attend the third annual Rocky Mountain Bioneers conference to be held at the Emerson Cultural Center on October 14-16, 2005. (2) Invitation from Bresnan Communications to attend the C-SPAN School Bus stop at MSU on Wednesday, August 24. (3) Copy of the "short term checkout" documents available at the Neighborhood Coordinator's office. (4) Copy of the notice to residents in the Marwyn/Lindley neighborhood meeting scheduled for August 25 regarding the proposal from Bridger Ski Foundation. 08-22-05 - 13- (5) Letters and petitions in support of retaining the City's solid waste collection services. (6) Copy of the guidelines for submitting resolutions and policy amendments for consideration at the upcoming National League of Cities Congress of Cities. (7) Minutes from the Parking Commission meeting held on July 14. (8) Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday, August 23, at the Courthouse. (9) Agenda for the County Commission meeting to be held at 10:00 a.m. on Wednesday, August 24, at the Moonlight Basin Lodge at Big Sky. (10) Agenda for the County Planning Board meeting to be held at 6:30 p.m. on Tuesday, August 23, at the Courthouse. (11) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Wednesday, August 24, at the Professional Building. (12) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Wednesday, August 24, at the Professional Building. (13) City Manager Chris Kukulski identified some of the accomplishments for the past fiscal year, noting that it is often difficult to remember to look back at the past year when budgeting for the next year. (14) The City Manager voiced concern about the development community's desire to negotiate deals with the Commission. Responding to Commissioner Youngman, Planning Director Epple stated that the informal application for Baxter Meadows Subdivision was deemed to be a completely new plan and, therefore, was subject to a free review. (15) City Manager Kukulski announced that he met with representatives from Senator Burns' office about available funding; Director of Public Service Debbie Arkell then spent eight hours preparing documentation for an application for that funding. (16) The City Manager reminded the Commission that he began work for the City one year ago and noted it has been a wonderful learning experience. (17) Director of Finance Rosenberry indicated she will notify 9-1-1 Director Ben Hess of the Commission's decision. (18) Planning Director Epple noted the Rugheimers have approached his office about including the northern portion of their land in the Churn Creek annexation and development. He cautioned that favorable consideration of that proposal, when coupled with annexation of the southern portion of the property, would result in only the center portion of the property remaining unannexed. Further, that uannexed portion would be in the middle of the neighborhood development plan that has been requested for this area. (19) Commissioner Krauss submitted the following. (1) Asked that the funding policy guidelines developed by Assistant City Manager Brey be brought forward for Commission consideration. (2) Noted that he has asked Commissioner Kirchhoff and City Manager Kukulski to get up to speed on energy issues. (3) Suggested that the City investigate providing wireless internet as part of its economic development plan. (20) Commissioner Kirchhoff noted the Story Mansion is being painted and looks great. (21) Staff Attorney Cooper asked the Commissioners to notify him if they are served with subpoenas since that triggers the response time. (22) Responding to Commissioner Hietala, Planning Director Epple stated the site plan for Bozeman Bubbles received final approval last Monday, although there are still some lingering questions about the landscape requirements. 08-22-05 - 14- Adiournment M 11 :05 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman r M~ or Cetraro; those voting No, none. ~~".'-'" .- J - / ANDR~ L.'C TRARO, Mayor ATTEST: ~./ -L~ R IN L. SULLIVAN City Clerk 08-22-05