HomeMy WebLinkAboutResolution 3757 Create SID 676, Valley Center
COMMISSION RESOLUTION NO. 3757
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 676;
CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN
LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND
INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT
DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT
DISTRICT REVOLVING FUND AND ESTABLISHING COMPLIANCE WITH
REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE
CODE.
WHEREAS, on the 19th day of April 2004, the Commission adopted Commission Resolution
No. 3674, stating its intent to create Special Improvement District No. 676 in the amount of $2,636,000;
and
WHEREAS, this special improvement district is one of four inter-connected districts for
improvements to the North 19th AvenueNalley Center Road corridor; and
WHEREAS, on the 10th day of May 2004, the Commission conducted its public hearing on its
intent to create the special improvement district; and
WHEREAS, on the 21 st day of June 2004, the Commission chose not to adopt Commission
Resolution No. 3695, creating Special Improvement District No. 676, due to concerns about the amount
of the assessments to be levied against the properties within the District; and
WHEREAS, the City has met with several large property owners in District Nos. 675, 676, 677
and 678 who are willing to make certain cash contributions toward the costs of the improvements in each
of the Districts so that the Improvements can be constructed at lower assessments to all of the properties
in the Districts; and
WHEREAS, at its meeting held on the 4th day of October, the Commission approved "An
Agreement Regarding Development of and Construction Along East Valley Center Road and North 19th
Avenue" wherein the developers identified therein have agreed to make specified cash contributions to
each of the Districts.
BE IT RESOLVED by the City Commission of the City of Bozeman (the "City"), Montana, as
follows:
Section 1. Passaae of Resolution of Intention. This Commission, on April 19, 2004, adopted
Commission Resolution No. 3674 (the "Resolution of Intention"), pursuant to which this Commission
declared its intention to create a special improvement district, designated as Special Improvement
District No. 676 of the City, under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as
amended, for the purpose of financing costs of certain local improvements described generally therein
(the "Improvements") and paying costs incidental thereto, including costs associated with the sale and
the security of special improvement district bonds drawn on the District (the "Bonds"), the creation and
administration of the District, the funding of a deposit to the City's Special Improvement District Revolving
Fund (the "Revolving Fund").
Section 2. Notice and Public Hearina. Notice of passage of the Resolution of Intention was
duly published and mailed in all respects in accordance with law, and on May 10, 2004, this Commission
conducted a public hearing on the creation or extension of the District and the making of the
Improvements. The meeting of this Commission at which this resolution was heard is the first regular
meeting of the Commission following the expiration of the period ended 15 days after the first date of
publication of the notice of passage of the Resolution of Intention (the "Protest Period").
Section 3. Protests. Within the Protest Period, protests were filed with the Clerk of the
Commission by three property owners and the holder of an option to purchase parcels in the District.
One of the property owners representing 14.65% of the assessable area in the District signed a waiver
of the right of protest and was not included in the final protest. Valid protests were received from the
owners of 36.25% of the assessable area in the District.
Section 4. Creation of the District: Insufficiencv of Protests. The District is hereby created on
the terms and conditions set forth in, and otherwise in accordance with, the Resolution of Intention except
as follows: The amount for which the District shall be created is reduced from $2,636,000 to $1,276,000;
the assessable area of the property in the district is reduced from 4,084,032 square feet to 4,076,210
square feet, as a result of easements for ~UbliC right of way; the estimated cost to be assessed is
reduced from $0.645441 per square foot to 0.313036 per square foot, as shown on the revised Exhibit
C. The protests against the creation or extension of the District or the making of the Improvements filed
during the Protest Period, if any, are hereby found to be insufficient. The findings and determinations
made in the Resolution of Intention are hereby ratified and confirmed.
Section 5. Reimbursement Expenditures.
5.01. Reaulations. The United States Department of Treasury has
promulgated final regulations governing the use of proceeds oftax-exempt bonds, all
or a portion of which are to be used to reimburse the City for project expenditures
paid by the City prior to the date of issuance of such bonds. Those regulations
(Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City
adopt a statement of official intent to reimburse an original expenditure not later than
60 days after payment of the original expenditure. The Regulations also generally
require that the bonds be issued and the reimbursement allocation made from the
proceeds of the bonds within 18 months (or three years, if the reimbursement bond
issue qualifies for the "small issuer" exception from the arbitrage rebate requirement)
after the later of (i) the date the expenditure is paid or (ii) the date the project is
placed in service or abandoned, but (unless the issue qualifies for the "small issuer"
exception from the arbitrage rebate requirement) in no event more than three years
after the date the expenditure is paid. The Regulations generally permit
reimbursement of capital expenditures and costs of issuance of the bonds.
5.02. Prior Expenditures. Other than (i) expenditures to be paid or
reimbursed from sources other than the Bonds, (ii) expenditures permitted to be
reimbursed under the transitional provision contained in Section 1.150-2U)(2) of the
Regulations, (iii) expenditures constituting preliminary expenditures within the
meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a "de
minimus" amount (as defined in Section 1.150-2(f)(1) of the Regulations), no
expenditures for the Improvements have been paid by the City before the date 60
days before the date of adoption of this resolution.
5.03. Declaration of Intent. The City reasonably expects to reimburse the
expenditures made for costs of the Improvements out of the proceeds of Bonds in an
estimated maximum aggregate principal amount of $1,276,000 after the date of
payment of all or a portion of the costs of the Improvements. All reimbursed
expenditures shall be capital expenditures, a cost of issuance of the Bonds or other
expenditures eligible for reimbursement under Section 1.150-2( d)(3) of the
Regulations.
5.04. Budaetarv Matters. As of the date hereof, there are no City funds
reserved, allocated on a long-term basis or otherwise set aside (or reasonably
expected to be reserved, allocated on a long-term basis or otherwise set aside) to
provide permanent financing for the expenditures related to the Improvements, other
than pursuant to the issuance of the Bonds. The statement of intent contained in this
resolution, therefore, is determined to be consistent with the City's budgetary and
financial circumstances as they exist or are reasonably foreseeable on the date
hereof.
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5.05. Reimbursement Allocations. The City's financial officer shall be
responsible for making the "reimbursement allocations" described in the Regulations,
being generally the transfer of the appropriate amount of proceeds of the Bonds to
reimburse the source of temporary financing used by the City to make prior payment
of the costs of the Improvements. Each allocation shall be evidenced by an entry on
the official books and records of the City maintained for the Bonds or the
Improvements and shall specifically identify the actual original expenditure being
reimbursed.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, this 20th
day of December 2004.
AN ETRARO, Mayor
ATTEST:
~/~
ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
~~
/ ' oo-Pl.-R..
TIMOTHY A. E~ '-
Acting City Attorney
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Valley Center Road SID
VALLEY CENTER ROAD ROADWAY, DRAINAGE & LIGHTING IMPROVEMENTS SID 676 SID Amount $1,276,000
12/15104 Assessment Rate 0.313036 $/SQ.FT.
-------------------- -----~------
CDS 1827 Tr A-2_Bo~man Country Hotel 2102 Oregon Pike 10.640 463,478 $145,085.37 35,542 0 590,080 931,925 UndeveL
Group, lLC lancaster, PA 17601-4605
-- - -------------------
0904-35
CDS 1827 Tr B-1 . _'{ello-wstonf>.______ 4324 U'livf>.rsi!y A~_~0__184,694 _ $57,815.98 14,659 0 424,527 561 ,246lJnde~--'
_..J.:~-1 0-0000 .Manag,ernent._ __ Grand Fork~,NQ._~820~ ..:..._____ ._.___.____ ___ ______ __~______
- - --------
CDS 1827 TrE-1 AccolaRanch ,!7CentenniaIT'<>.iL _ ..____4~()____ _.1()~~1_ 'H__$63,8!5~___ 15,327 0 77,876 227,930 UndeveL
Bozeman, MT 59715 i i
! 1
-------- ----- ----------------~----------~--------- -----~.---~-----r__------ -.-~-~-.,-----------+.------_.
Gallatin Center 1 Costco 999 Lake Drive 13.731 598,122 $187,233.76 47,469; 0 '10,099,477 i 10,553,907 Wholesale
_MinorSub210 .--------- Issaquah, WA 98027 - 1 Club__..!
0904-35:1.-()S-30 , i ! !
. i i .J
Galla1in Center 2 Valley Center Enterprise 2305 Catron Road 3.578_..;._ 155,858__$48, 7~9_05 ~~---"O-~--'----5,278,508_-i--- 5,396-,-~0___Motel._
Minor 5 ub 210__ 'ijmgate Inn Motel Boze man, MT 59718, i I i
------ ~- I
_,Q.aJlatin Center 1 Gallatin Center 220 W. Lamme St, Ste. 1 F 3.046' 132,704 $41,541-11 9,612 0 415,991 i 513,304 Undevel.
__Jl.!D__ Phase 1 L.P. Bozeman, MT 59715 .!
1~~5 I
----- l
Gallatin Center 2 Gallatin Center 220 W. Lamme St., Ste. 1 F 2.777' 120,960 $37,864.82 10,545 0 385,412 475,897; Undevel. ..-1
PUD Phase 1 _ _ ____L.P. Bozeman, MT 59715 _11
1 ~5-O1 -I
___G',IIla.bD..C_~ 4 Gallatin Carinos 74 E. Fieldview Circle 2.193 95,507~__129,897.12 8,714 967 1,295,290 1,368,987 I Restaurant I
PUD Phase 1 Bozeman, MT 59715 -----'----------L----~
. 0904-35-1-40-10 ,.____~ ! I
i !
Gallatin cenier 5 Gallatin Ce~ter LP 220 W, Lamme St., Ste. 1 F 1 .967 85,667 $26,816.85 -~ 7,816 ---0- 293,674 359,778 I Undevel. .J
PUD Phase 1 Bozeman,.r'~!_~1..1.i___~_ I '
1-40-25 i
Minor Sub. 221 ----1---=--_ Jeraldj3;vens()n 6071 JackrabM Lane 6.277 273,405 $85,585,64 --0'---------0- 1,338 187,477
Belgrade, MT 59714 reduced __~__,_
Minor Sub 221 B 1 Bonnie M. and 219?_~~~r.B.d____ 2.854 ----124,298 --$38-;-909:88 - ,- 0 0 66,751 _JQ5,~___._~__._.______
Richard D. Milligan Belgrade, MT 59714 ____
Minor ~tJ221B _.J Bonnie M. and -2195 WeaverRd 3.245 --=-_1~.L361- - ~,~.5_1cO!_ 0 0 75,914 ---f '-120~16s------ -------
_ __ _____~____.RicharQ.D Milligiln EI~lgrade, MT59714_ . __ _ __ __________ __~___ ___ _~ ' ., _ _____nn___.__
Minor Sub 221 B 3 Bonnie M. a-rld- ----""'2195 Weaver Rd----3~ 146,958--- $46,003.24--- -. 0 '.- 0 78,927 i 124,930
-- ------ Richard_O:Milligan__-----=Belgra_d~=_i;{r::.~~~_____~____~__~_- ~_~-____=________ __..:._____,. ----r-----~~-- --
- --------"-- ---------- .---------- ----
CDS 2050 Tr 1 ._ SandanLLC uP~D~_Box.l~5!_ ____.J&2.L____:>32,2J1.9____$.111,3,9!J.45, _____0._____ _0.. __. .1J1} _i. _. _ 226,5Q,o _n__u______
_35-0904-2~o.1-30 _____u__ Bozeman, MT 59771 reduced __~_ i
-------------- -- -------------- --------- ---- ---------- -'1
TOTALS 93.577 4,076,210 $1,2J~,I)OO__ _$.2~!!I.~~__~ $967 $19,086,178 $21,908,983
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