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HomeMy WebLinkAbout01-14-19 City Commission Packet Materials - A1. Res 4954, Intent to Create SID 747 for Manley Road - SUPPLEMENTAL MATERIALSResolution # 4954: Resolution of Intent to Create Special Improvement District (SID) 747 for Manley Road Overview  Proposed Improvements to Manley Road  Need for the Improvements  Cost and Timeline  Special Improvement District (SID) Overview  Proposed Improvements to Manley Road  Need for the Improvements  Cost and Timeline  Special Improvement District (SID) Proposed Improvements Project Start Project Finish Upgrade Manley Road to City Urban Collector Street Standard Proposed Improvements south of Gallatin Park Subdivision Project Start Project Finish Add street side parking south of Gallatin Park Subdivision Shared Use Path both sides of street Proposed Improvements south of Gallatin Park Subdivision Proposed Improvements Adjacent to Gallatin Park Subdivision Project Start Project Finish Center turn lane with no street side parking Shared Use Path both sides of street Proposed Improvements Adjacent to Gallatin Park Subdivision Overview  Proposed Improvements to Manley Road  Need for the Improvements  Cost and Timeline  Special Improvement District (SID) Need for Improvements to Manley Road  City Transportation Master Plan (TMP): Recommended Major Street Network Project #36  Increased demand from development  Improve road section to City collector street standard  Improve bike and pedestrian facilities  TMP pedestrian facility upgrade (Figure 4.3)  Improve parking conditions on Manley Road  Improve access control Need for Improvements to Manley Road  City Transportation Master Plan (TMP): Recommended Major Street Network Project #36  Increased demand from development  Improve road section to City collector street standard  Improve bike and pedestrian facilities  TMP pedestrian facility upgrade (Figure 4.3)  Improve parking conditions on Manley Road  Improve access control History of Development along Manley Road Mergenthaller Property: 5.32 Acres (Developed 1995) History of Development along Manley Road Gallatin Park Subdivision: 29.69 Acres (Annexed 1998) History of Development along Manley Road Turtle Way Subdivision: 1.84 Acres (Annexed 2005) History of Development along Manley Road Minor Subdivision 154A: 15.41 Acres (Annexed 2008) History of Development along Manley Road MAP Brewing: 1.62 Acres (Developed 2013) History of Development along Manley Road Glen Lake Commercial Subdivision: 5.49 Acres (Developed 2019) History of Development along Manley Road East Gallatin Recreation Area: 29.79 Acres (Ongoing Improvements) History of Development along Manley Road Bridger Vale Annexation: 6.47 Acres (2019) History of Development along Manley Road  Majority of development has provided waivers of right to protest creation of a special improvement district (SID) for Manley Road but did not upgrade the road at the time of development  Waivers filed with County Clerk and Recorder  Current code requires Manley Road to be upgraded to City collector street standard with development  Glen Lake Commerce Subdivision partner in developing preliminary SID documents Need for Improvements to Manley Road  City Transportation Master Plan: Recommended Major Street Network Project #36  Increased demand from development  Improve road section to City collector street standard  Improve bike and pedestrian facilities  TMP pedestrian facility upgrade (Figure 4.3)  Improve parking conditions on Manley Road  Improve access control Improved Street Section Improve asphalt and road base thickness and quality to accommodate loads and durability Add curb and gutter to improve drainage control, road surface protection, and access control Need for Improvements to Manley Road  City Transportation Master Plan: Recommended Major Street Network Project #36  Increased demand from development  Improve road section to City collector street standard  Improve bike and pedestrian facilities  TMP pedestrian facility upgrade (Figure 4.3)  Improve parking conditions on Manley Road  Improve access control Improve Bike and Pedestrian Facilities Shared Use Path Need for Improvements to Manley Road  City Transportation Master Plan (TMP): Recommended Major Street Network Project #36  Increased demand from development  Improve road section to City collector street standard  Improve bike and pedestrian facilities  TMP pedestrian facility upgrade (Figure 4.3)  Improve parking conditions on Manley Road  Improve access control Improve Parking Conditions Overview  Proposed Improvements to Manley Road  Need for the Improvements  Cost and Timeline  Special Improvement District (SID) When would the street be constructed?  Street construction in 2020.  Preliminary designs have been completed. Detailed design would occur in 2019. How much will the street cost?  The Engineer’s estimate of the construction cost is $4,242,000 Overview  Proposed Improvements to Manley Road  Need for the Improvements  Cost and Timeline  Special Improvement District (SID) How would the improvements be paid for?  Street improvements ($4,242,000) paid by proposed Special Improvement District What is a Special Improvement District (SID)?  A Special Improvement District, or SID, is a method of financing certain public improvements which is authorized by the Montana Code Annotated Chapter 7-12, Part 41.  Only Municipalities may create SID’s.  It is an assessment levied on properties that will be benefitted by the improvement.  SIDs allow costs to be financed for 20 years. Special Improvement District Boundaries S.I.D. Timeline  Resolution of Intent to Create January 14, 2019  Publish Notice of Public Hearing January 20 & January 27, 2019 (begins protest period)  End of Protest Period February 6, 2019  Public Hearing February 11, 2019  Resolution of Creation February 11, 2019  Design & Public Meetings June – December, 2019  Advertise for Construction Bids January – February, 2020  Project Construction Begin Summer 2020 How Are Properties Assessed?  Combination of Methodologies  Primary assessment methodology based on Manley Road frontage  Secondary Assessment methodology applied for subdivisions based on area of lots within subdivision How Are Properties Assessed?  Combination of Methodologies  Primary assessment methodology based on Manley Road frontage  Secondary Assessment methodology applied for subdivisions based on area of lots within subdivision How Are Properties Assessed?  Combination of Methodologies  Primary assessment methodology based on Manley Road frontage  Secondary Assessment methodology applied for subdivisions based on area of lots within subdivision Methodology Summary Each property or subdivision pays for ½ of Manley Road that the property or subdivision fronts Estimate of how much the project will cost each property – Primary Assessment Cost of the S.I.D. $4,242,000 Total Lot or Subdivision Frontage 6,298.88 Feet Cost per Foot of Frontage $673.45 Example estimate of how much the project will cost each property in a subdivision Gallatin Park Subdivision Frontage 1,646.34 Feet Cost per Foot of Frontage $673.45 Gallatin Park Subdivision Assessment $1,108,732.71 Total Area of Gallatin Park Subdivision Assessable Lots 925,014 SF Assessment per SF $1.20* Financing over 20 years (at 2% interest rate) $61.16/$1,000 assessment/year See Exhibit B for specific property assessments * The assessment per square foot is different for each subdivision due to the assessment methodology Other Improvements to be Paid by City Funds  Sewer improvements within Manley Road ($457,000), Wastewater Impact Fees  Manley Road SID assessment for City Park Parcel ($234,880.22)  Intersection improvements at Manley Road and Griffin Drive, separate project, Street Impact Fees and Arterial and Collector District Funds ($2,000,000)  Griffin Drive upgrade Rouse to 7th, separate project, Street Impact Fees and Arterial and Collector District Funds ($5,500,000) Other Considerations  The East Gallatin Recreation Area Assessment would be $484,919.88.  Director Overton has communicated with Montana Fish, Wildlife and Parks (FWP)  Assessment paid by FWP per our lease agreement with them  Railroad right-of-way fronts on Manley Road, and the assessments to Burlington Northern Santa Fe (Leased by Montana Rail Link) would be $145,176.28 and $50,751.42 for two parcels that front on Manley Road What if the Project Costs More than Estimated?  The SID project cost estimate can not be exceeded without going through the SID creation process again  Other City funds could be used to buy down the project cost, but the City’s capital plan would need to be re-prioritized.  Street impact fee funds  Arterial and collector district funds  If the cost of the project is less than estimated, the assessments will be reduced Resolution 4954  Resolution of intent to create Special Improvement District 747 First step in the process of creation  Required by Montana Code Annotated 7-12-4104  Required elements: 1) Designate the number of the district; 2) Describe the boundaries thereof; 3) State the general character of the improvements which are to be made and an approximate estimate of the cost; 4) Specify the method of Assessment. Public Outreach  Staff held a courtesy public meeting describing the proposed Manley Road SID on October 17, 2018  Staff mailed a courtesy notice on December 28, 2018 to all affected property owners informing owners of the proposed resolution of intent to create the district  Final notices will be mailed to property owners in the proposed district should the Commission adopt the resolution of intent to create the district Property Owner Protest Provisions  Must be in writing  Must identify the property owned in the proposed district  Must be signed by all owners  Must be delivered to the City Clerk by 5:00pm on the last day of the protest period, February 6, 2019 Summary  Consider financing Manley Road Improvements by creation of SID #747  Staff recommends the proposed combination of Lot Frontage Method and Area Method of Assessment  Consider adoption of Resolution #4954 creating the Resolution of Intent to create the district QUESTIONS?