HomeMy WebLinkAboutResolution 5060 Settlement Agreement in HERE4 Properties, LLC v. City of Bozeman and SID 747 (Manley Road) fag BG�
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RESOLUTION NO. 5060
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE CITY MANAGER TO SIGN A SETTLEMENT
AGREEMENT IN HERE4 PROPERTIES, LLC v. CITY OF BOZEMAN, MONTANA AND
SPECIAL IMPROVEMENT DISTRICT, NO. 747(CAUSE NOS. DV 19-262B, MONTANA
EIGHTEENTH JUDICIAL DISTRICT COURT, GALLATIN COUNTY)
WHEREAS,the City created Special Improvement District No. 747 (the"District") on
February 11, 2019 pursuant to Resolutions 4954 and 4955 for the purpose of constructing
improvements to Manley Road as described in Resolution 4954; and
WHEREAS,in March,2019 Here4 Properties,LLC("Plaintiff'),a property owner of two
lots within the District, filed a complaint in the Eighteenth Judicial District court alleging the
District was "not lawfully created due to lack of direct benefits to the Plaintiff and its property and
the inequity and disproportionality of the costs to the benefits derived to the Plaintiff and its
property"; and
WHEREAS, Plaintiff's property is in Gallatin Park Subdivision, which was annexed to
the City in 1998 subject to an annexation agreement which incorporated a waiver of right to protest
the creation of special improvement districts for various improvements including improvements
to Manley Road; and
WHEREAS, the City filed counterclaims against Plaintiff alleging breach of the
annexation agreement; and
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Resolution 5060, Settlement Agreement in Here4 Properties v. City
WHEREAS, after service of the City's Answer and Counterclaims on Plaintiff, Plaintiff
contacted the City regarding possible resolution of the case; and
WHEREAS, while the City is confident it would be successful on dismissing Plaintiff's
complaint and prevailing in the City's counter-complaint, it recognizes as with all litigation that
uncertainty, albeit it minimal, as to the legal outcome of this case exists; and
WHEREAS, continuing with litigation will most certainly result in delay of design and
construction of the Manley Road improvements due to the effect of active litigation on the City's
ability to market and sell bonds; and
WHEREAS, the City Commission recognizes and affirms all aspects of the City's
formation of the District were lawful; and
WHEREAS, the City Commission determines authorization of this settlement agreement
is in the best interest of the City as it creates certainty for the financing,designing,and construction
of the Manley Road improvements, avoids future costs of litigation, and will provide the City the
best opportunity to keep the construction of the Manley Road improvements on schedule and
within the costs set out in Resolution 4954.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana:
Section I
The City Commission hereby authorizes the City Manager to sign the Settlement Agreement
attached as Exhibit A to this Resolution.
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Resolution 5060,Settlement Agreement in Here4 Properties v. City
Section 2
The City Commission authorizes the City Manager and the City Attorney to take all steps
necessary to implement the Settlement Agreement.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 3rd day of June, 2019.
THLCL. U
Mayor
ATTEST:
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ROBIN CROUGH * �':`•" ,��
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City Clerk �
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APPROVED AS TO FORM:
GREL2fJLLIVAN
City Attorney
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