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HomeMy WebLinkAbout02-25-19 City Commission Packet Materials - A1. Res 5003, Creating a Payback District for South 11th Ave from Campus to GrafCommission Memorandum REPORT TO: Honorable Mayor and City Commissioners FROM: Bob Murray, Project Engineer Shawn Kohtz, City Engineer SUBJECT: Resolution 5003 Creating a Payback District for South 11th Avenue from Campus Boulevard to Graf Street AGENDA ITEM TYPE: Action MEETING DATE: February 25, 2019 RECOMMENDATION: Adopt Resolution 5003 Creating a Payback District for South 11th Avenue from Campus Boulevard to Graf Street. BACKGROUND: The city recently constructed South 11th Avenue, a collector level street, between Campus Boulevard and Graf Street. This section of 11th is adjacent to currently undeveloped land within the city limits. The city paid for this section entirely with its own funds, that is, both the local share and the capacity expanding or impact fee eligible portion. The purpose of Resolution 5003 is to create a Payback District to repay that local share to the City prior to any development on the property in the District. The Resolution specifies the reimbursement must be made to the City prior to the filing of a final plat for any subdivision of land in the District, or prior to approval of any site plan on any land within the District. The payback amount is based on lineal frontage and uses the Engineering News Record Construction Cost Index to account for the annual increase in value of the work. The District will remain in effect for 20 years or until the local share cost for that portion of South 11th Avenue has been recovered, whichever comes first. UNRESOLVED ISSUES: None. FISCAL EFFECTS: It is anticipated that the city will recover $1,791,506.94 from the adjacent property owners to replenish the amount furnished by the City. The district is will be retired once all of the funds contributed have been recovered or 20 years from the date of creation, whichever 191 comes first. ALTERNATIVES: As suggested by the City Commission. Attachments: Resolution 5003 Exhibit A, District Map Exhibit B, Listing of the Properties in the District Exhibit C, Cost of the Work and Basis for the Payback Rate 192 Page 1 of 4 RESOLUTION NO. 5003 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, CREATING A PAYBACK DISTRICT REQUIRING CERTAIN PROPERTIES TO REIMBURSE THE CITY FOR CERTAIN COSTS ASSOCIATED WITH THE CONSTRUCTION OF SOUTH 11TH AVENUE BETWEEN CAMPUS BOULEVARD AND GRAF STREET WHEREAS, the City of Bozeman did construct South 11th Avenue, a designated collector, between Campus Boulevard and Graf Street; and WHEREAS, South 11th Avenue between Campus Boulevard and Graf Street abuts undeveloped property within the city limits of Bozeman which will benefit from South 11th Avenue as future development of these undeveloped properties must demonstrate compliance with the City’s adopted growth policy and transportation plans which call for the existence of South 11th Avenue through the property; and WHEREAS, the City paid all of the costs to construct South 11th Avenue to a full collector standard, the costs equivalent to constructing South 11th Avenue to a local street will be of special benefit to the properties of this district once they seek to develop. The costs equivalent to constructing South 11th Avenue to a local street, plus interest accrued since the installation of South 11th Avenue, shall be reimbursed to the City at the time of future development. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that a payback district be created for South 11th Avenue between Campus 193 Resolution No. 5003, Creation of a Payback District for South 11th Avenue between Campus Boulevard and Graf Street Page 2 of 4 Boulevard and Graf Street. Section 1 Recitals Incorporated. The Commission hereby incorporates the above recitals as findings for creation of the District. Section 2 Creation/Boundaries of District. The South 11th Avenue Payback District (the "District") is hereby created. The limits and boundaries of the District are depicted on a map attached as Exhibit A, (which is hereby incorporated herein and made a part hereof). A listing of each of the properties in the District is shown on Exhibit B (which is hereby incorporated herein and made a part hereof). The cost of the work performed which is used in the calculation of the cost per lineal foot of frontage is contained in Exhibit C, (which is hereby incorporated herein and made a part hereof). Section 3 Notice of Payback Costs/Timing of Payback. Current owners of the benefitted properties included on Exhibit B are hereby noticed that City may, at the time of preliminary plat or site plan, impose a condition of approval requiring the current owner or developer of the benefitted properties to reimburse the City for the local share component of the costs of constructing South 11th Avenue as financed by the City and as described herein including accrued interest. The condition may require such payment to be made prior to the filing of a final plat for any subdivision of land in the District or prior to approval of a site plan on any land within the District. In doing so, the City will calculate the amount of the local share of the costs of constructing South 11th Avenue within the District that may be required to be paid back to the City at the rate of $353.00 per linear foot of frontage for South University District Phase 2 Minor Sub Lot 2 plus interest costs; and $382.82 per linear foot of frontage for Allison Sub Annex and Lot 1, Block 2 Allison Sub phase 3A , plus interest costs. The rate to be used in calculating the interest costs shall be the Engineering News Record Construction 194 Resolution No. 5003, Creation of a Payback District for South 11th Avenue between Campus Boulevard and Graf Street Page 3 of 4 Cost Index Ratio at the time of the filing. The amount calculated must be paid to the city prior to the filing of the plat. Section 4 Deposit of Payback Monies. All monies paid to the City under this payback district shall be deposited in the City's Street Impact Fee Fund. Section 5 Term of Payback District. The payback district shall be created immediately upon adoption of this resolution and shall remain in effect for a period of 20 years from said creation or until the local share cost for that portion of South 11th Avenue has been recovered, whichever comes first. Section 6 Recording. The City Clerk is instructed to record this Resolution in the records of the Gallatin County Clerk and Recorder. 195 Resolution No. 5003, Creation of a Payback District for South 11th Avenue between Campus Boulevard and Graf Street Page 4 of 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 25th day of February, 2019. ______________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ______________________________________ GREG SULLIVAN City Attorney 196 197 198 199 200 201 202