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Home My WebLink About03-19-18 City Commission Packet Materials - A5. 2125 North Rouse Needs Hearing Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Craig Woolard, Director of Public Works SUBJECT: Public hearing to determine whether approximately 6.6 acres of City-owned property, at 2125 North Rouse Avenue, former location of the Humane Society, is necessary for the conduct of City business or that the public interest may be furthered by the exchange of the property with Northwestern Energy for an access road from Manley Road serving the East Gallatin Recreation Area and the City storage yard. AGENDA ITEM TYPE: Action (Public Hearing) MEETING DATE: March 19, 2018 RECOMMENDATION: Conduct a public hearing, consider public comment, and by a 2/3 vote of the Commission determine that approximately 6.6 acres of City-owned property located at 2125 North Rouse Avenue is no longer necessary for the conduct of City business and that the public interest will be furthered by the exchange of this property with Northwestern Energy (NWE). PROPOSED MOTION: Having considered the information presented by staff and public comment, I move to adopt the findings included in the staff memorandum and determine approximately 6.6 acres of City-owned property at 2125 North Rouse Avenue, is no longer necessary for the conduct of City business or the preservation of City property and also that the public interest will be furthered by an exchange of the property with Northwestern Energy and direct the City Manager to complete all steps necessary to complete the exchange and return to the Commission with an ordinance authorizing the exchange. It is important to note that the decision whether the real property on North Rouse Avenue is necessary for the conduct of the city’s business or the preservation of its property or whether the public interest will be furthered by the land exchange is not a final decision on the exchange of the property. Should the Commission adopt the proposed motion (or similar) 462 the Commission must, at some point in the future, adopt an ordinance authorizing the City Manager to execute a negotiated exchange agreement. FINDINGS/BACKGROUND: The Commission’s action tonight is related to a proposed exchange with Northwestern Energy (NWE) of City owned property located on N. Rouse Avenue. As shown in Attachment 1, the City owns a parcel of approximately 8.9 acres north of Griffin Drive and south of the East Gallatin Recreation Area. The northern 2.3 acre portion of this parcel is utilized for City gravel storage and material and equipment staging. The southern 6.6 acre portion of the parcel is not currently utilized for City operations. NWE has expressed interest in acquiring the southern 6.6 acre portion of this parcel for use as a staging facility for poles, lights, piping and other large electrical and gas utility materials and equipment. In exchange for this land, NWE would agree to construct, in part or in full, the roadways shown in Attachment 2. A public road will be constructed that connects the East Gallatin Recreation Area to Manley Road. A private access road will also be constructed that provides NWE access to its current yard as well as the property in question. This access road would also provide improved, secure access to the City storage and staging yard. The proposed exchange would be based on the appraised fair market value of the City property and the actual construction costs incurred by NWE for the construction of the proposed roads. Preliminary estimates value the City property at approximately $1.2 million. Construction of the road is estimated at this time to be approximately $500,000. A full appraisal will be conducted should the Commission determine to proceed with the exchange. A cash payment will most likely need to be made by Northwestern Energy to cover the difference between the appraised property value and the final roadway construction costs. This “need hearing” is a critical step in the process to complete the exchange. The City is authorized to exchange real property pursuant to 2.06.870.A and C, BMC. The Public interest will be furthered by the exchange based on the following: • History: This property is adjacent to the original City landfill. This landfill was in use from 1962 until 1969 until the landfill on Story Mill Road was opened. In 1975, the City leased an acre of this property to the Humane Society of Gallatin Valley for use as a local animal shelter and crematorium. This property was used for that purpose until 2003. Due to its historic use, this land is appropriate as an industrial site, including use as a storage yard, as intended by NWE. • Access: The current access to City property is poor, requiring heavy equipment and trucks to drive through a residential neighborhood on a local street that dead ends at City property. The road is narrow and substandard and not constructed for heavy traffic. In addition, trucks and equipment must enter and exit North Rouse Avenue less than 100’ from the Rouse Avenue/Griffin Drive intersection creating traffic conflicts at this intersection. 463 These conflicts are anticipated to increase in the future as traffic volumes on Rouse Avenue and Griffin Drive increase. City property would be better accessed from Manley Road, where grades and site distances are improved. • Utilities: This property does not have water and sewer connections. If developed, an easement would be required to extend a water line across private property from Industrial Drive or an existing water line on North Rouse would require an over 250’ extension. A sewer line runs along the south end of the property but would need to be extended north to be utilized by this property. • Flood Plain: As shown in Attachment 3, this property is the flood plain making development for residential or industrial purposes problematic. Flood plain restrictions would not apply to a storage yard as proposed by NWE. The property is no longer necessary for the conduct of city business or the preservation of city property because no city department has indicated it has plans to use this portion of the property in the immediate or long term. Because of the access issues, proximity to the landfill, lack of utilities and flood plain designation, without site investigation and remediation, the site is not suited for residential uses. UNRESOLVED ISSUES: A formal appraisal and final roadway construction costs will be presented to the Commission for approval before transfer of the property. A Phase 1 environmental investigation will also be conducted before transfer of the property. Should exchange of this property be approved, NWE may want access to the property in advance of final transfer for staging during construction of their new facility. Terms of that access agreement would be negotiated separate from the property exchange. ALTERNATIVES: The City could sell the property to NWE or others for fair market value. This may change negotiations with NWE and will most likely require the City to pay for construction of the road leading to the East Gallatin Recreation Area and the materials storage yard. Also, the City could retain the property and continue current operations. FISCAL EFFECTS: Initial estimates indicate that the property value will exceed the cost of roadway construction likely resulting in a net cash payment by Northwestern Energy to the City. Attachment 1 - City of Bozeman and NW Energy Property Exchange Attachment 2 – Northwestern Energy North Access Road Site Layout Attachment 3- Preliminary Floodplain Designations 464 E GRIFFIN DR INDUSTRIAL DR N ROUSE AVE MANLEY RD EDGERLEY LN BRIDGER DR City of Bozeman & NW Energy Property Exchange 0 500 1,000250FeetProposed Property Split City of Bozeman NW Energy City Limits Revised: 12/21/2017 Map and Data Created by theCity of BozemanGIS Department Intended for Planning purposes only.¤ Portion of Property to Remain in City Ownership Portion of Property to Exchange with NW Energy East Gall a tin River 465 NORTH050SCALE: 1" = 50'NOTE:-EXISTING UNDERGROUND INSTALLATIONS & PRIVATE UTILITIES SHOWN ARE INDICATED ACCORDING TO THE BEST INFORMATIONAVAILABLE TO THE ENGINEER. THE ENGINEER DOES NOT GUARANTEE THE ACCURACY OF SUCH INFORMATION. SERVICE LINES (WATER,POWER, GAS, STORM, SEWER, TELEPHONE & TELEVISION) MAY NOT BE STRAIGHT LINES OR AS INDICATED ON THE PLANS. STATE LAWREQUIRES CONTRACTOR TO CALL ALL UTILITY COMPANIES BEFORE EXCAVATION FOR EXACT LOCATIONS.-ALL IMPROVEMENTS SHALL BE PERFORMED IN ACCORDANCE WITH MONTANA PUBLIC WORKS STANDARD SPECIFICATIONS 6TH EDITION,APRIL, 2010, AND THE CITY OF BOZEMAN STANDARD MODIFICATIONS, DATED MARCH 31, 2011.-UNLESS OTHERWISE SPECIFIED, ALL CONSTRUCTION LAYOUT AND STAKING SHALL BE PERFORMED UNDER THE RESPONSIBLE CHARGE OF ALAND SURVEYOR LICENSED IN THE STATE OF MONTANA AND BY A PARTY CHIEF OR ENGINEERING TECHNICIAN EXPERIENCED INCONSTRUCTION LAYOUT AND STAKING TECHNIQUES AS ARE REQUIRED BY THE SPECIFIC TYPE OF WORK BEING PERFORMED.C2.OPUBLIC ACCESS ROAD FROM MANLEY ROAD TO GLEN LAKE PARK AND NORTHWESTERN ENERGY NORTH ACCESS ROAD BOZEMAN, MONTANA OVERALL SITE LAYOUT & DEMOLITION PLANC 2016 ALL RIGHTS RESERVEDDATE:FILE:PROJECT NO:CAD:QUALITY ASSURANCE:REVISIONSDATE DESCRIPTION08/29/201717032_01_OVERALL_PROD.DWG17032.01CMK87654321ABCDEF9G---------------------PRIVATE ACCESS ROAD FROM PUBLIC ACCESS ROAD TO NORTH ROUSE AVENUE1002550PROJECT SURVEY CONTROLPoint #345824Northing128203.13128220.91128742.05128348.60128220.05Easting383029.08383186.27382937.17383025.59382961.80Elevation4710.954710.174702.764707.954711.17DescriptionCP / MAG NAILCP / MAGNAILCP / 2"ACRSSCNTLMONCP / MAGNAILBM /FH ARROW BOLT NWDATUM:MT 83 BOZ LDPSURVEY COMPLETED 04/28/17 N.M., K.S.LINETYPE LEGENDV:\17032_01_NorthWestern_Energy_North_Access_Roads\CADD_C3D\PRODUCTION_DWG\17032_01_OVERALL_PROD.dwg, OVERALL, 8/29/2017 1:30:00 PM, ckramer, 1:1 466 E GRIFFIN DR INDUSTRIAL DR N ROUSE AVE MANLEY RD EDGERLEY LN BRIDGER DR City of Bozeman & NW Energy Property Exchange 0 500 1,000250Feet Proposed Property Split City of Bozeman NW Energy City Limits Preliminary Floodplain Designations 0.2% Annual Chance (500-yr) Floodplain 1% Annual Chance (100-yr) Floodplain Floodway Revised: 12/21/2017Map and Data Created by theCity of BozemanGIS Department Intended for Planningpurposes only. ¤ Portion of Property to Remain in City Ownership Portion of Property to Exchange with NW Energy EastGa ll a ti n R iver 467