HomeMy WebLinkAbout06-22-20 City Commission Packet Materials - C7. Agreement w PDI Investments LLC for N 7th Ave Streetscape Proj
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist SUBJECT: Authorize the City Manager to Sign Agreement Between and Among PDI Investments, LLC, and the City of Bozeman, and the Associated Public Access and Utility Easement, and Temporary Construction Easement for the North 7th Avenue Streetscape Design and Construction Project.
MEETING DATE: June 22, 2020 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager Agreement with PDI Investments, LLC BACKGROUND: The Midtown Urban Renewal District (MURD) is working on a project to enhance
the safety and aesthetics of the North 7th Avenue corridor by installing setback sidewalks buffered by tree-lined boulevard, and decorative luminaries. The existing right-of-way along the corridor will not accommodate a sidewalk setback, so the district has been acquiring public access and lighting easements from property owners on a voluntary basis.
Temporary construction easements are also being acquired for this project.
The parcel owned by PDI Investments, LLC includes the building formerly housing Nu2u! at 431 N. 7th Ave. The Midtown Urban Renewal Board voted at its April 30, 2020 meeting to authorize staff to negotiate an Agreement with property owner in order to
acquire the necessary easements for the project. The property owner is making extensive
interior renovations to the property to accommodate their new tenant, Access Fitness. The new use will require new fire and water service lines to be installed from within N. 7th Ave. across the extents of the project. In the interest of creating resilient infrastructure connections to the property that facilitate long-term redevelopment, including the
possibility of multi-story mixed-use development of the site, the Agreement allows the
property owner to be reimbursed up to $50,000 for the cost of installing these new service lines, if they are sized appropriately to accommodate more intensive future development of the site. These upgraded connections to public infrastructure are the same kinds of eligible costs often reimbursed with redevelopment agreements. In essence, while the
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reimbursement facilitates adaptive reuse of the existing building, it assists future
redevelopment of the site. The proposed Agreement is the result of extensive negotiations with the property owner’s representative and staff believes the approval of this Agreement is necessary to obtain the required easements for the lighting and sidewalk project. UNRESOLVED ISSUES: The addition of this parcel’s frontage to the project will require a change order. The total cost of the change order to effectuate the scope of work required by the Agreement is unknown at this time; a change order for this portion of the project was expected if staff
was able to obtain an easement for the property. Staff is working with our consulting engineer at Morrison-Maierle on a change order that will be presented to the Commission at a later date. ALTERNATIVES: As determined by the Commission.
FISCAL EFFECTS: The project will be paid for using tax increment funds from the Midtown Urban Renewal District. Funds designated for contingency for the Midtown Infrastructure
Improvements Urban Renewal Project in the Midtown Urban Renewal Board recommended Work Plan and Budget would be used to fund the reimbursement up to $50,000.
Attachments: 1. Agreement 2. Public Access and Utility Easement 3. Temporary Construction Easement Report prepared on June 12, 2020
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