HomeMy WebLinkAbout2017 - Payback Agreement - Graf - Street1
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commissioners
FROM: Rick Hixson, City Engineer
SUBJECT: Resolution 4740 Creating a Payback District for Graf Street From
South 15th Avenue to MacNab Street
AGENDA ITEM TYPE: Action
MEETING DATE: July 24, 2017
RECOMMENDATION: Adopt Resolution 4740 Creating a Payback District for Graf Street
From South 15th Avenue to MacNab Street.
BACKGROUND: In cooperation with the Gilhousen Property Trust (GPT), the city recently
constructed Graf Street, a collector level street, between South 19th Avenue and MacNab Street.
The portion between South 19th and South 15th has been fully paid for, GPT contributing their
local share and the city contributing impact fees for the capacity expanding portion. The section
between South 15th and MacNab Street is adjacent to currently undeveloped land within the city
limits. The owner of this property was contacted prior to the project and asked if they would be
willing to pay for their local share at this time. They declined to do so. The city, therefore, 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 4740 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 Graf Street has been recovered, whichever comes first.
160
UNRESOLVED ISSUES: None.
FISCAL EFFECTS: It is anticipated that the city will recover $780,092.44 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
comes first.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Resolution 4740
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
161
Page 1 of 4
COMMISSION RESOLUTION NO. 4740
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 GRAF STREET BETWEEN SOUTH 15th AVENUE AND MACNAB
STREET
WHEREAS, the City of Bozeman did construct Graf Street, a designated
collector, between South 15th Avenue and MacNab Street; and
WHEREAS, Graf Street between South 15th Avenue and MacNab Street abuts
undeveloped property within the city limits of Bozeman which will benefit from Graf Street 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 Graf Street through the
property; and
WHEREAS, while the City paid all of the costs to construct Graf Street to a full collector
standard, the costs equivalent to constructing Graf Street 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 Graf
Street to a local street, plus interest accrued since the installation of Graf Street, 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 Graf Street between South 15th Avenue
and MacNab Street.
162
Resolution No. 4740, Creation of a Payback District for Graf Street Between South 15th Avenue and MacNab Street
Page 2 of 4
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 Graf Street 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 Graf Street 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 Graf Street within the District that may be
required to be paid back to the City at the rate of $199.00 per linear foot of frontage, plus interest
costs. The rate to be used in calculating the interest costs shall be the Engineering News Record
Construction 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.
163
Resolution No. 4740, Creation of a Payback District for Graf Street Between South 15th Avenue and MacNab Street
Page 3 of 4
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 Graf Street 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.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 24th day of July, 2017.
______________________________________
CARSON TAYLOR
Mayor
ATTEST:
________________________________________
ROBIN CROUGH
City Clerk
164
Resolution No. 4740, Creation of a Payback District for Graf Street Between South 15th Avenue and MacNab Street
Page 4 of 4
APPROVED AS TO FORM:
______________________________________
GREG SULLIVAN
City Attorney
165
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