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HomeMy WebLinkAbout2004-09-13 Minutes, City Commission MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA September 13, 2004 ***************************** The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, on Monday, September 13, 2004, at 5:30 p.m. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff, Commissioner Lee Hietala, City Manager Chris Kukulski, Assistant City Manager Ron Brey, Director of Public Service Debbie Arkell, Planning Director Andy Epple, Acting City Attorney Tim Cooper and Clerk of the Commission Robin Sullivan. Executive Session re Dersonnel At 5:30 p.m., Mayor Cetraro announced that, pursuant to Section 2-3-203(3), Montana Code Annotated, the Montana Constitution and the Montana Supreme Court rulings, he, as presiding officer, has determined that the right to privacy clearly exceeds the merits of public disclosure and announced that the employee has not waived her right to privacy. He then called an executive session for the purpose of evaluating the Clerk of the Commission and requested that all persons except the Commissioners and the Clerk leave the room. At 6:00 p.m., Mayor Cetraro closed the executive session and reconvened the open meeting. Recess - 6:00 D.m. Mayor Cetraro recessed the meeting at 6:00 p.m. to conduct the work session, with the regular meeting to reconvene at 7:00 p.m. Reconvene at 7:00 p.m. Mayor Cetraro reconvened the meeting at 7:00 p.m. Call to Order: Pledae of Alleaiance and Moment of Silence The meeting was opened with the Pledge of Allegiance and a moment of silence. Minutes - Mav 3. SeDtember 7 work and SeDtember 7.2004 It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the minutes of the work session of September 7,2004, be approved as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala and Mayor Cetraro; those voting No, none. Mayor Cetraro deferred action on the minutes of the meetings of May 3 and September 7, 2004, to a later date. Consent Items City Manager Kukulski presented to the Commission the following Consent Items. 09-13-04 - 2 - Commission Resolution No. 3720 - intent to annex 1.6039 acres lying alona east side of StOry Mill Road. and south side of Bridger Drive: set public hearing for October 11. 2004 - Deborah and Keith O'Reilly. 4K Partners (A-04012) COMMISSION RESOLUTION NO. 3720 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABIT ANTS THEREOF AND THE OWNERS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN, AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. Commission Resolution No. 3721 - revised rules of procedure COMMISSION RESOLUTION NO. 3721 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE RULES OF PROCEDURE FOR THE CONDUCT OF CITY COMMISSION BUSINESS. Approval of Depository Bonds and Pledaed Securities as of June 30. 2004. as reviewed bv Commissioner Kirchhoff and Commissioner Hietala Building Inspection Division report for Auaust 2004 Claims It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that the Commission approve the Consent Items as listed, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the fOllowing Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Public comment No comment was received under this agenda item. Conditional Use Permit with Certificate of Appropriateness - to allow establishment of real estate office and aallerv on around floor - ERA Landmark (8 East Main Street) (Z-04195) This was the time and place set for the public hearing on the Conditional Use Permit with Certificate of Appropriateness, as requested by ERA Landmark for the Masonic Temple, Inc., under Application No. Z-04195, to allow a real estate office and gallery to be located on the ground floor level of the building located on Lots 0, 1, 2, 3 and 4, Block A, Original Townsite. The subject property is located immediately east of the South Tracy Avenue/East Main Street intersection and is known as 8 East Main Street. Included in the Commissioners' packet were a letter from Michael J. Lilly, dated September 3, expressing support for the application, and a letter from Barbara Noelle, dated September 9, voicing concern about the potential future impacts that approval of this application might have on the downtown. Public hearing Mayor Cetraro opened the public hearing. Historic Preservation Planner Allyson Bristor presented the staff report. She stated that a conditional use permit is required for office use on the ground floor in the core downtown area. As a result, staff has reviewed this application in light of the applicable criteria, and staff's comprehensive findings are contained 09-13-04 - 3 - in the written staff report. Based on that review, she forwarded staff's recommendation for approval, subject to several conditions. The Historic Preservation Planner noted that under this application, a small amount of real estate office space is to be provided, in addition to a large display area, reception area and gallery. No exterior changes are proposed except the signage, which will be more appropriate for the site. She indicated that adequate parking is provided for the ground floor of the building, and staff has found the proposed use would be appropriate for the interior space of this building and would not adversely impact adjacencies. She concluded by noting that, since this is a conditional use, all applications are reviewed individually and the Commission's decision on this one will not set a precedent for decisions on future applications. Ms. Robyn Erlenbush, applicant, submitted copies of letters from fourteen individuals and companies in the downtown area who support this application. She characterized the proposal as innovative, stating it is her intent to use this downtown showcase gallery to market properties currently listed in Bozeman, Livingston, Clyde Park and Big Sky. She noted that it will also serve as a gallery for community and cultural activities; and the front portion of the showcase will be dedicated to the Museum of the Rockies, Intermountain Opera and the Bozeman Symphony, three well-known charities in the community. She noted that, as one walks into the store, the covered area will be converted to showcases with plasma screens. The west side will be dedicated to the community, and might include tapes of recent community activities, such as the Christmas Stroll and Taste of Bozeman. Ms. Erlenbush indicated that a real estate concierge will be available to answer questions. She indicated that approximately 60 percent of her company's clients are local, although in the more expensive properties, approximately 60 percent are out-of-town clients. In addition, her company has 25 vacation rentals in the area; and those visitors will go to the downtown location to get the keys and information on the area. She stated that in 2003, this segment of her business had 840 visitors, which will create a positive impact on foot traffic in the downtown and will hopefully encourage those visitors to spend a little time downtown. Ms. Erlenbush stated she also plans to use this site to provide revolving displays for the Museum of the Rockies, to serve as a clearing house for once-a-year events, to sell opera tickets from a main floor venue, and to sell rush tickets for the symphony. She also hopes to have concerts in this business during the art walks. She concluded by stressing that the space devoted to the real estate business will be very small, with the result not being the profile of a professional office but a place that provides information on the community and activities. Ms. Mary Jane DiSanti, 3024 Westridge Drive, stated she owns the Country Bookshelf at 28 West Main Street. She urged the Commission to not approve this application; rather, she stated that every bit of downtown space needs to be devoted to retail uses to bring more people downtown. She stated that her store relies on its local clientele for survival, although she does have tourists visit her store in the summertime. She also noted that downtown stores serve as information points, and she likes to have people stop at her store and talk instead of having them go to a central point. Mr. Don Kreitz, 2001 Fairway Drive, noted that if City assistance is needed to provide a competitive advantage in a highly-competitive business, he is definitely not for it. He observed that he lives under a conditional use permit and, while in the short term it seemed to be a good idea, in the long term it has been detrimental. In this instance, it allows the incumbent an advantage; and the City should be helping to provide a level playing field rather than an advantage. Mr. Paul Reichert, Executive Director of the Downtown Bozeman Partnership, stated that he took an informal poll of the Downtown Bozeman Association board members; and a majority of them were against the issuance of the requested conditional use permit. He noted the primary issues were conversion of this space to a non-retail use and the precedent for allowing real estate offices in the downtown area. Ms. Mary Vant Hull, 416 East Story Street, stated that many people in the traditional neighborhoods depend on the downtown area for staples, citing Owenhouse Hardware, Western Drug, Phillips Bookstore, Country Bookshelf, Sylvesters and the Stylon as examples of places where many people shop. She cautioned that allowing galleries and real estate offices to move into former retail spaces will be detrimental to the existing character of the downtown. She noted that the Commission has done everything in its power since the 1970s to ensure downtown businesses flourish, and she is concerned that approval of this application will begin to erode those efforts. 09-13-04 -4- Mr. Chris Pope, Rocky Mountain Toy Company, noted he also works for ERA Landmark. He stated that the downtown is changing, and not as many people are now shopping for staples in the community's core. He cautioned that one cannot always control the changes that occur, and he believes a quality tenant and excellent project deserve approval. He concluded by urging the Commission to consider this application on its merits. Ms. Vonda Laird, 414 North 20th Avenue, noted she owns a business at 544 East Mendenhall Street. Her major concerns revolve around allowing something other than retail on the main level in the downtown area, and she feels it is important to uphold the current regulations. She noted that when the Park City delegation visited Bozeman a few years ago, they were impressed with the downtown area and talked about how their main street had become mostly real estate offices with few business outlets. She cautioned that if she were in the real estate business, if this application is approved, she would be looking for office space on Main Street tomorrow. She concluded by encouraging the Commission to preserve the downtown area that is so important to the community and its residents. Ms. Erlenbush acknowledged the concerns of those who had testified, noting that since 1981 she has been a good corporate citizen and supported the community, and she has spent since July 15 talking to a variety of people about this proposal. She does not feel her proposed use will damage the downtown, and stressed that since this type of use is subject to the conditional use process, the decision on this application will not set a precedent. She believes in supporting the downtown and feels that the strong emphasis on the arts, culture and a community concierge help to set this proposal apart from a typical professional office application. She concluded by stating she plans to enhance this space, and noting that probably 200 square feet of the 2,OOO-square-foot space will be allocated to real estate office operations. Responding to Commissioner Krauss, Planning Director Epple stated this is the first conditional use permit application for office space on Main Street that he has seen since he arrived in 1987, although a couple of grandfathered main level office spaces have been allowed to convert the type of office space. Since there were no Commissioner objections, Mayor Cetraro closed the public hearing. Decision Commissioner Kirchhoff indicated that, while he is impressed with the presentation, the existing business, and the contributions that Ms. Erlenbush has made to the community and the arts, a real estate office is at the core of this application. He does not believe that other professionals working in this industry will see the nuances of this application, but will view it as establishing a very enviable position in the core of the city. He is also mindful that a majority of the Downtown Bozeman Association board members were negative. Finally, he believes that this decision will set a precedent, even though every application for a professional office space on the main level is subject to the conditional use process. He concluded by indicating he cannot support this application. Commissioner Hietala expressed his support for this application, noting he believes this business, as proposed, will generate an attractive store front and foot traffic in the downtown. He also stated that approval of this application will help to retain activity in the downtown, rather than an increase in vacancies. He further noted that approval of this application allows for diversity in the downtown of a community that is growing. Mayor Cetraro noted this application represents an innovative approach that raises the bar for future applications. He indicated that, while he has struggled with this proposal, he will support it. Responding to questions from the Mayor, Planning Director Epple stated that if the number of real estate officers and desks were to increase at this location, it would be a violation of the approved conditional use permit, and staff would take enforcement steps to bring it back into compliance. Commissioner Krauss stated he feels the diversity will help to ensure the downtown remains vibrant. He noted that many downtown businesses and uses have been lost over the years, citing Silent Knight Muffler, Montana Motors, Firestone, Bungalow Drug, Big Bear, Woolworths, banks and the Texaco station as examples. He feels that those changes have helped to keep the downtown alive and, while he may want to protect old Bozeman, he recognizes that change and diversity are essential. He concluded by noting that he finds the collaborative gallery an interesting and unique idea and indicating he supports the application. . 09-13-04 ---.---.--.-.. - 5 - Commissioner Youngman voiced her concern that approval of this application will result in setting a precedent she does not believe is desirable for the downtown area. If this project is to be approved, she suggested it is important to identify it as an extraordinary proposal with public elements and differentiate it from an office use. She cautioned that some uses, including real estate offices, tend to cluster together for competitive advantage and, as a result, she finds the concern about precedent a real issue. She feels that offices on the second floor in the downtown area are appropriate but that retail needs to be retained on the ground level. It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the Conditional Use Permit with Certificate of Appropriateness, as requested by ERA Landmark for the Masonic Temple, Inc., under Application No. 2-04195, to allow a real estate office and gallery to be located on the ground floor level of the building located on Lots 0, 1, 2, 3 and 4, Block A, Original Townsite, be approved subject to the following conditions: 1. The applicant shall provide material and color samples of the proposed wall sign prior to installation on the site, to allow Administrative Design Review staff to review appropriateness of the design. 2. All code provisions shall be met, the following provisions in particular: . Per Section 18.34.100.C, "City Commission Consideration and Findings for Conditional Use Permits," the right to a use and occupancy permit shall be contingent upon the fulfillment of all general and special conditions imposed by the conditional use permit procedure. . Per Section 18.34.100.C, "City Commission Consideration and Findings for Conditional Use Permits," all of the special conditions shall constitute restrictions running with the land use, shall apply and be adhered to by the owner of the land, successors or assigns, shall be binding upon the owner of the land, his successor and assigns, shall be consented to in writing, and shall be recorded as such with the County Clerk and Recorder's Office by the property owner prior to the issuance of any building permits, final site plan approval or commencement of the conditional use. . Per Section 18.42.150, "Lighting," all new lighting must conform to code requirements and all existing non-conforming lighting must be retrofitted or replaced. Lighting details and locations must be included with the final site plan. . Per Chapter 18.52, "Signage," all new signage shall require a sign permit subject to review and approval by the Department of Planning and Community Development. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No being Commissioner Kirchhoff and Commissioner Youngman. Conditional Use Permit with Certificate of ADDroDriateness - to allow construction of five two-story mixed use buildinas with offices on first floor and aDartments on second floor - Snowload Condos (north side of Durston Road between StoneRidge Drive and North 22nd Avenue) (Z-04199) This was the time and place set for the public hearing on the Conditional Use Permit with Certificate of Appropriateness, as requested by Gaston Engineering, representing applicant Snowload, LLC, and property owner Fellowship Baptist Church under Application No. 2-04199, to allow the construction of five two-story mixed use buildings on Tracts A and B, Amended Plat of Lots 1 and 2, Block 13, Annie Subdivision, Phase I; and Tract 1, cas No. 1240C. The subject property lies along the north side of Durston Road, immediately east of its intersection with North 22nd Avenue, and is known as 2165 Durston Road. 09-13-04 .---- - 6 - Included in the Commissioners' packets was a letter from Donald E. Cape, Sr., representing Jo Don Enterprises and Cape France, Inc., voicing concerns about the proposed project. Public hearing Mayor Cetraro opened the public hearing. Associate Planner Jami Morris presented the staff report. She noted that the Fellowship Baptist Church owns two tracts of land, with the church being located on one of the tracts. This application is for construction offive two-story structures on the westernmost parcel, which is zoned "B-1" and "R-O" and lies along the north side of Durston Road at Charlotte Street. These buildings are to contain a total of 16,599 square feet of office space on the main level and 19 apartment units on the second level. The subject property is located within the North 19th Avenue entryway overlay corridor. The Associate Planner noted that primary access to these buildings is to be from Durston Road, with right in/right out access, and secondary access is to Charlotte Street. She indicated that 150 square feet of open space is required per dwelling unit plus parkland dedication for the condominium units. Associate Planner Morris stated that staff has reviewed this application in light of the applicable criteria, and staff's comprehensive findings are contained in the written staff report. Based on that review, staff has forwarded a recommendation for approval, subject to several conditions. In response to questions from Commissioner Kirchhoff, Associate Planner Morris highlighted some of the issues from the Design Review Board meeting, noting that the application has not been revised since that meeting. She noted one of their recommendations is that some architectural design be included to reflect the residential character of the second level. She indicated that the dead end hall is to be addressed in the building design, and the interior door at the foot of the stairs is to be locked to prevent people from accessing the living units. She also noted that the board members were concerned that the buildings seem to be shoehorned into the site and recommended that additional open space or landscaped area be provided between the building and the sidewalk. Responding to Commissioner Hietala, Associate Planner Morris stated the playground area on the church site does not count toward the open space for this parcel; if additional open space is to be provided on the church site, a mutual or shared access easement will be required to provide access to that area from these living units. Mr. Dennis Foreman, consulting engineer representing the applicant, stated he has no problem with the conditions recommended by staff. He then noted that the proposed plans include 100 parking stalls; and since only 94 spaces are needed, six can be eliminated and the amount of parking lot landscaping increased to meet code requirements. He indicated that the parking will be shared by the church, businesses and residents, which results in an efficient use of asphalt surface. He concluded by indicating a willingness to respond to questions. Mr. Shaun Shahan, real estate agent and member of the Fellowship Baptist Church, noted this subject parcel contains 1.9 acres and is zoned "B-1". The church is now looking for another site, but must first sell this parcel so it has the funds to do so. Seeking this conditional use permit is designed to make the parcel more marketable, in an area where mixed use would be desirable and beneficial. He concluded by encouraging approval of the application. Mr. Robert Barr, 902 Woodland Drive, stated the existing private parking area and the private deeded park belong to Brentwood Subdivision, Phases I and II, which have no relationship to this project. He noted that the only ingress and egress for this subdivision is westward on Durston Road. As a resident of Brentwood Subdivision, his concern is that people will become frustrated with this being the only option and will use the streets in his subdivision to access West Oak Street instead. He stated that at the current time, there are 300 cars per day on Woodland Drive, and this development and the retirement home on West Oak Street could result in a significant increase in traffic on that street. Mr. James Bauder, 420 North 21st Avenue, stated he does not support this proposal for a variety of reasons. He has lived on this street since 1990 and has seen many changes over the years. Approval of this application would remove the little open space that now exists; and this site has served as a major waterway for stormwater and snow melt over the years. He is also concerned about the amount of traffic in the area and the problems that already exist at certain times of the day. 09-13-04 .-... -......----..--..---- .- --....-..... - 7 - Ms. Anne Thoreson, 320 North 21 st Avenue, noted there is a lot of high-density housing in the area to the west, and she questions the advisability of adding nineteen more apartments on Durston Road, particularly on a site with limited access. She then stated she cannot envision five buildings on that tiny parcel of land. Mr. Bruce Bradford, 8799 Sypes Canyon Road, stated he is a trustee at the Fellowship Baptist Church. He noted the original plan was to construct the sanctuary on the "B-1" zoned parcel but, with the City's requirements, they were unable to make it fit. As a result, they chose to sell the property so they can acquire another site and construct a new church that will allow them to continue to grow. He concluded by encouraging the Commissioners to accept the staff's recommendation on this project. Mr. Kyle Leonard, 307 Crawford Trail, stated he is a member of the church and does a lot of business in Bozeman. He noted that traffic has always been bad in this area. He noted that he has seen traffic drive through Brentwood Subdivision from the church because of the difficulties of traveling along Durston Road. He indicated that the sanctuary capacity is 105 people; that is the number they had in church last week, with a total of 188 adults and children in attendance for the various activities. He stressed that they have no space to build at this location and that they must build a larger church so more people can attend. Mr. Dennis Foreman stated there is a creek along the east side of the property, and a 35-foot setback must be observed. He noted that, because this site was originally identified for commercial development, no parkland dedication was required; since residential units are now proposed, those dedication requirements must be met. He indicated that if cash-in-lieu of parkland dedication is allowed, the payment will be at the appraised value of "B-1" zoned property. Commissioner Youngman noted the Commission has had a history of not allowing cash-in-lieu of parkland dedication because of the small amount paid through that program. She stated that if the development were less intense, more open space could be provided on site. Responding to questions from Commissioner Youngman, Associate Planner Jami Morris stated that commercially zoned property is appraised higher than residentially zoned property. Commissioner Youngman indicated that she has no problem with the fundamental proposal and likes the idea of a live/work environment. She does, however, have some concerns with the project as proposed, including the issues of providing a differentiation for the residential entrances and traffic flows. Since there were no Commissioner objections, Mayor Cetraro closed the pUblic hearing. Decision Commissioner Krauss recognized that the concerns about traffic patterns in the area are valid, particularly in light of the right in/right out only access to the site from Durston Road. He noted, however, that the project itself is compatible with the neighborhood and is in compliance with the unified development ordinance, which encourages shared use of parking areas and mixed use development. He acknowledged that the site will be a little cramped with the amount of development proposed on it but finds the proposal acceptable. Commissioner Kirchhoff noted that, if cash-in-lieu of parkland is calculated on a higher value per acre than is typical, he could bend on that issue. Because of the large amount of development proposed on this small parcel, he would like to see the space between the buildings increased, providing areas of visual relief rather than a nearly continuous wall. It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that the Conditional Use Permit with Certificate of Appropriateness, as requested by Gaston Engineering, representing applicant Snowload, LLC, and property owner Fellowship Baptist Church under Application No. Z-04199, to allow the construction of five two-story mixed use buildings on Tracts A and B, Amended Plat of Lots 1 and 2, Block 13, Annie Subdivision, Phase I; and Tract 1, cas No. 1240C, be approved subject to the following conditions: 1. Cash-in-lieu of water rights must be paid for the condo units. Payment shall be made prior to final site plan approval. 09-13-04 - 8 - 2. A joint access easement shall be filed on both lots prior to final site plan approval to allow for common use of both drive accesses to the site and the common drive aisles. 3. The alignment of the sewer main shall be revised to eliminate the manhole in the landscaped area east of the parking lot, or access shall be provided to the manhole for maintenance purposes. 4. The existing nonconforming pole lights shall be removed prior to the occupancy of any of the new buildings. 5. All ground mounted and roof mounted mechanical equipment shall be completely screened from view from all adjacent properties. 6. A color palette and materials sample board shall be provided with the final site plan. 7. The landscape plan shall include additional landscaping within the parking lot in order to account for at least 10% of the parking lot area. The area defined for parking lot landscaping shall be exclusive of any required yard setbacks. 8. Pedestrian crossings shall be included within the parking lot to provide an identifiable pedestrian connection through the parking lot between the buildings on the south end and north end of the property. The crossing shall be constructed with stamped and pigmented concrete or asphalt. 9. An outdoor seating area shall be provided either within the designated open space, the watercourse setback or adjacent to the buildings. 10. Two additional sidewalk connections shall be provided from the sidewalk within the development to the sidewalk along Durston Road. 11. A sidewalk connection shall also be installed to connect the church entrance to North 22nd Avenue. 12. The doors shall be centered under the gable detail on the front of the buildings. The front elevation for building "B" currently depicts the doors offset from the edge of the covered entrances. 13. The doors shall relate better to the design of the buildings and provide wood trim around the glass pane and door knobs instead of the standard metal storefront door depicted. 14. The area between the buildings and the sidewalks shall be increased to provide substantial foundation plantings. 15. Covenants shall be drafted and provided to the Planning Office for review. The approved covenants shall be recorded with the Clerk and Recorder's Office prior to issuance of a building permit. The covenants shall include reference to sidewalk, landscaping, stormwater pond, open space and parking maintenance. 16. Cash-in-lieu of parkland for 0.57 acres, equal to the fair market value of the land that would have been dedicated, shall be paid prior to final site plan approval unless it is determined that sufficient parkland was previously provided. 17. The applicant shall provide exterior detailing which differentiates the residential units on the second level from the commercial uses on the main level, for review and approval by the Administrative Development Review staff. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff and Mayor Cetraro; those voting No, none. 09-13-04 -.--.---.-..-."...-... - 9 - Break - 8:35 to 8:45 D.m. Mayor Cetraro declared a break from 8:35 p.m. to 8:45 p.m., in accordance with Commission policy. Preliminary Dlat for Cattail Creek Subdivision. Phase III ~ subdivide t51 acres into 64 sinale- household residential. multi-familv residential and commercial lots. with waiver to allow either critical wildlife habitat or Dreviouslv dedicated Darkland to meet reauirements for this subdivision - TD&H. Inc.. and Intrinsik Architecture for Sandan. llC (P-04030) This was the time and place set for the public hearing on the preliminary plat for Cattail Creek Subdivision, Phase III, as requested by Thomas, Dean and Hoskins, Inc., and Intrinsik for Sandan, LLC, under Application No. P-04030, to subdivide :!::51 acres described as Tract 1, cas No. 2050, into 64 single- household residential, multi-family residential and commercial lots, with a waiver from Section 18.50.010 of the Bozeman Municipal Code to allow either the critical wildlife habitat or the previously dedicated parkland for Phases I and II to meet the requirements for this phase of the subdivision. Included in the Commissioners' packets was an e-mail message from Rob Pertzborn, Intrinsik Architecture, withdrawing the application. Public hearing Mayor Cetraro opened the public hearing. Decision It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the Commission acknowledge the applicant's withdrawal of this preliminary plat application. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala and Mayor Cetraro; those voting No, none. Amendment No. 1 to Memorandum of Aareement for downtown Darkina garaQe: authorize City Manager to sign continaent UDon TGCC executina amendment Included in the Commissioners' packets was a draft of Amendment NO.1 to the Memorandum of Agreement for the downtown parking garage, between the City and The Garage at City Center. Assistant City Manager Ron Brey reminded the Commissioners that last week they directed staff to prepare an amendment to include the value of the property that would be needed for Option B. He noted that in a conversation today, Mr. Clotfelter expressed an intent to use 60 feet of the parking lot, which is 150 feet wide. That totals 9,000 square feet, at an estimated value of $35 per square feet, or a total of $315,000. He concluded by noting the amendment provides for the garage to be submitted to the Design Review Board for its review and recommending that the Commission authorize the City Manager to sign the amendment. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that the Commission authorize the City Manager to sign Amendment No. 1 to the Memorandum of Agreement, contingent upon The Garage at City Center executing the document. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Discussion - Dossible creation of sDecial imDrovement districts for North 19th Avenuel Vallev Center Road Included in the Commissioners' packets was a memo from Acting City Attorney Tim Cooper, attached to which was a copy of a letter from Michael Garrity, dated September 8, forwarding the developers' proposal. 09-13-04 - 10- City Manager Chris Kukulski noted that the Commission chose not to create the special improvement districts for the North 19th AvenueNalley Center Road corridor due to the cost per acre for one of the districts. As a result of that action, a group of developers has been working with staff and is now coming forward with a proposal to contribute a total of $1.5 million up front, which writes down the cost of the special improvement district assessments. The developers will be seeking impact fee credits for that portion of the project that would normally be eligible for impact fee credits; and those credits could be used anywhere in the community. Further, the developers are requesting that they be allowed to undertake concurrent construction of their projects and clarification that, if their projects are completed prior to the road project, they will still be granted occupancy permits; staff recommends that if occupancy is allowed, those developers would be required to provide whatever is determined necessary to ensure the safety of the traveling public. The City Manager noted that the initial request from the developers included the provision that, if impact fee credits are found to be unusable, a payback arrangement would ensure that they would recoup some of the upfront monies. He stated that staff's recommendation does not include that provision, and he encouraged the Commissioners to not incorporate it into the proposal. Responding to Commissioner Kirchhoff, Acting City Attorney Cooper confirmed that some of the conditions of approval for the two motels along Valley Center Road made up part of the complaints against the City. He noted that those conditions pertained to no building permit being issued until the contract is awarded for the road improvements and no occupancy permit being issued until the road improvements are completed. Commissioner Kirchhoff expressed concern about taking any action at this time that might undermine the City's position in those two lawsuits. Acting City Attorney Cooper noted that some of the conditions of approval were tied to an event certain and the passage of time has helped to address those issues. He noted that at this time, the City and the developers are working together to move this project forward and, while the details have not yet been worked out, he has representations from the developers and attorneys that they are willing to come to terms with the City on any issues that remain outstanding. He indicated that, at this time, he would like to hear from those developers that, if the City takes steps to begin construction of the road improvements, they would be willing to drop their lawsuits. He concluded by reminding the Commissioners that four or five of the parties now working to make these improvements work are not currently suing the City. Mr. Mike Garrity, attorney representing Arrowhead Development, LLC, one ofthe six developers who presented the proposal, noted the City has been adamant about keePini the four improvement projects together for the safety of the traveling public. This proposal provides for 1.1 million in additional funding to pay down the costs plus $455,000 in impact fees that can be applied to this or other projects as the City determines appropriate. In consideration of those payments, the developers are seeking some concessions, including being able to begin construction on projects prior to the road improvements, designating a single manager to coordinate with City staff, and issuing temporary occupancy permits prior to completion of the road improvements. He noted the developers have expressed a willingness to incur costs of extraordinary traffic control to ensure safety issues are addressed for those projects completed prior to the roadway. He concluded by asking the Commission to create the special improvement districts per staff's recommendation and authorize the Acting City Attorney to prepare an agreement with the developers so that these projects can move forward. Mr. Herb Fisher, Country Inn and Suites, stated he flew from Pennsylvania just to attend this meeting. He noted that for over two years, they have attempted to get their project started on Valley Center Road. As a developer on a national level, he recognizes the need to address safety and other issues and the importance of teamwork in doing so. He noted that, since teamwork was missing in the beginning, his company used the law. As the owner of this development, he assured the Commission that the basis of the lawsuit was only to come to a mutual agreement. He finds it admirable that six developers are now coming to the City to express a willingness to put their "wallets to work" and help the City accomplish the creation of special improvement districts. He noted that he is here to work out a resolution and is ready to drop the lawsuit once that resolution is accomplished. Mr. Gene Graf, Gallatin Center, stressed the importance of moving forward with the creation of these special improvement districts as quickly as possible and not losing another construction season. He noted that three weeks ago, he had requested the three special improvement districts for the North 19th Avenue 09-13-04 - 11 - corridor be created and was told that all four must move forward together. It is now three weeks later, and it is important to not lose any more time. Mr. Don Cape, Jr., Cape France Enterprises, indicated a willingness to participate financially at some level, noting that their property is included in the special improvement district for Valley Center Road. Mr. Tom Stonecipher, attorney representing C'mon Inn, stated his client is agreeable to not having a payback district, as proposed in Mr. Garrity's letter. He noted that he has worked hard, especially with Acting City Attorney Cooper, to find a cooperative way to bring monies to the table to get past the troublesome conditions that were imposed in the 2003 approval of this project. He stated that, with time, many of those conditions are not the issues they were initially; and the hotel has now submitted its plans to the Building Inspection Division for review. He noted that all developers are now ready to assist with this project, a position that would not have occurred if the attorneys had not become involved and the Acting City Attorney worked cooperatively with them. He concluded by encouraging the Commission to move forward with the creation of these special improvement districts. Acting City Attorney Cooper asked that the Commission direction be conditional on successful negotiation of an agreement. City Manager Kukulski noted that under this proposal, the cost per acre for Valley Center Road drops from $28,000 to $18,000 per acre. Commissioner Kirchhoff noted that, if the project comes in at $6.1 million, the $1.1 million being offered won't get the job done. As a result, he suggested that the agreement be for $1.1 million or 10 percent of the costs so that the project does not become stalled again but moves forward under a fluid document. Commissioner Krauss noted he was the Commissioner who felt $28,000 per acre was excessive. He believes that everything possible has now been done to lower the assessment costs, and it is important to move forward in a manner that ensures there are no more stopping spots. In exchange for ensuring there are no stopping spots, he could support concurrent construction and allow occupancy as long as the developers meet their side of the conditions. He thanked the developers for stepping forward and Acting City Attorney Cooper for his cooperative work on this issue. City Manager Kukulski recommended that the Commission authorize staff to proceed with an agreement that incorporates the issues included in this discussion. Responding to Commissioner Krauss, City Manager Kukulski stated he hopes to have the agreement ready for Commission consideration in two weeks, but cautioned that might be optimistic given the number of parties and attorneys involved. It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the Commission direct staff to work with the developers and/or their attorneys to develop an agreement for participation in the costs of the road improvements to the North 19th AvenueNalley Center Road corridor, to be submitted to the Commission for its consideration and action as soon as possible. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Mayor Cetraro; those voting No, none. Discussion - possible creation of special improvement district for Baxter Lane. east of North 19th Avenue Included in the Commissioners' packets was a memo from City Engineer Rick Hixson forwarding background information and seeking Commission direction on possible creation of a special improvement district as requested by Mr. Phillip Saccoccia. City Engineer Rick Hixson reminded the Commissioners that during discussion three weeks ago, they directed him to look at alternative methods of assessing this special improvement district, especially for the developed properties. He noted that research revealed that specific benefit may not be provided to developed properties; rather, assessments must be the same for all lots and parcels within the district. As a result, the only way to provide benefit to the developed properties is through a private agreement outside 09-13-04 ...------ - 12 - the special improvement district process. He concluded by reminding the Commission that several of the properties within the proposed boundaries of this district will be impacted by some of the districts for the North 19th Avenue/Valley Center Road improvements. Commissioner Krauss identified his inability to support the proposed special improvement district for improvements to Baxter Lane, noting he sees it as benefitting a developer and adding a debt load in excess of what existing uses can handle. He cautioned that approval of this district could result in the elimination of some existing industrial uses and the addition of more regional commercial uses, which can better accommodate that increased debt load. City Engineer Rick Hixson noted that the petition submitted by Mr. Saccoccia included just over 50 percent support; and State Lands did not protest it because of the waiver of right to protest that had been executed for that property. He reminded the Commission that the policy for seeking the creation of a special improvement district is to obtain signatures for 75 percent of the property to provide some assurance that if staff moves forward with the district, it will not be killed on protests. Director of Public Service Debbie Arkell indicated that staff's recommendation is to move forward with the creation of the district so that the public has an opportunity to comment rather than staff trying to second guess their positions. Responding to Commissioner Kirchhoff, City Engineer Hixson stated this district has been requested because the applicant has developable tracts of land in a prime location, and one of the conditions for development is that Baxter Lane be upgraded to a collector standard. Mr. Saccoccia is being proactive rather than waiting for those roadway improvements to be completed. City Manager Kukulski reported that Mr. Saccoccia is currently in Mississippi awaiting the hurricane to hit and has asked that action on this item be delayed if additional information is needed. Responding to Commissioner Youngman, Director of Public Service Arkell indicated that she felt this was a political issue and chose to submit it to the Commission for a decision rather than asking staff to make a recommendation based on the fact that some properties may now be in four new special improvement districts. Commissioner Youngman suggested Mr. Saccoccia could buy down the cost of the district before it is created, either through a contribution or by covering some of the upfront costs. Assistant City Manager Brey noted that his decision to bring this issue to the Commission preceded the agreement on the North 19th Avenue/Valley Center Road improvements. He stated that, because of the number of parcels involved in numerous districts and the same kind of assessment questions that were arising, he wanted to know about any Commission questions or concerns before starting to incur any expenses. As a result of discussion, a majority of the Commissioners asked that action on this item be delayed until Mr. Saccoccia has had an opportunity to address the Commission with his suggestions for reducing the impacts of this proposed special improvement district on those properties that will be impacted by the decision to proceed with the four districts for the North 19th Avenue/Valley Center Road corridor improvements. Discussion - FYI Items The following "For Your Information" items were forwarded to the Commission. (1 ) Letter from Christopher Spogis, 613 North Tracy Avenue, dated September 9, expressing support for the proposed downtown parking garage. (2) E-mail message from Katharine Beebe, 825 St. Andrews Drive, voicing concern about the continued operation of the City's landfill. Director of Public Service Debbie Arkell indicated that Sanitation Superintendent Mark Kottwitz has responded to this e-mail. 09-13-04 -.----.. - 13 - (3) Copy of a letter from Rick Kerin, consulting engineer, to the Boys and Girls Club of Southwest Montana, dated September 2, providing additional information on the Ice Pond Road realignment and improvements. Planning Director Epple noted that he discussed this issue in the weekly memo that was distributed on Friday. He then noted he has started drafting a letter to Mr. McRay Evans, who has offered to dedicate a 30-foot-wide strip to the City for Ice Pond Road in exchange for some entitlements. He then stressed that there is already a public access easement over this 30-foot-wide strip, so the City does not need to accept the proffered strip for the road. He indicated that he will be attending a meeting on Thursday at the Boys and Girls Club to discuss this issue further. (4) Updated listing of planning projects to be considered at upcoming Commission meetings, dated September 9. (5) Copy of a letter from the Government Finance Officers' Association announcing that the City has received a Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report for the year ending June 30, 2003. (6) Minutes from the Cemetery Board meeting held on August 19, 2004. (7) Agenda for the School District NO.7 Board of Trustees meeting to be held at 7:00 p.m. on Monday, September 13, at the Willson School. (8) Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday, September 14, at the Courthouse. (9) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, September 14, at the Professional Building. (10) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, September 14, at the Professional Building. (11) Planning Director Andy Epple reminded the Commissioners of the retreat with the Recreation and Parks Advisory Board, to review the "nuts and bolts on calculating parkland" under the unified development ordinance. (12) City Manager Kukulski noted that seven public hearings are scheduled for next week's meeting. He then asked if the Commissioners are interested in conducting a work session before or after the regular meeting; the Commissioners indicated they do not want a work session prior to the regular meeting. (13) Responding to Commissioner Krauss, Director of Public Service Arkell indicated that she has committed to doing a couple of things for the three parks plan, but has not had an opportunity to complete them. (14) Commissioner Krauss indicated that he has asked a local business to bring in chairs within the next week for the Commissioners to consider. Adiournment - 9:55 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Mayor Cetraro; those voting No, none. 09-13-04 . ..-..-....---.-....--.- - 14- ATTEST: ~J~ R N L. SULLIVAN Clerk of the Commission 09-13-04