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HomeMy WebLinkAbout08-15-23 City Commission Meeting Agenda and Packet MaterialsA.Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse This meeting will be held both in-person and also using an online video conferencing system. You can join this meeting: Via Video Conference: Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting. Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in- person United States Toll +1 669 900 9128 Access code: 933 7244 1920 B.Pledge of Allegiance and a Moment of Silence C.Changes to the Agenda D.Authorize the Absence of Commissioner Pomeroy Authorize the Absence of Commissioner Pomeroy D.1 Authorize the Absence of Commissioner Pomeroy(Maas) E.FYI F.Commission Disclosures G.Consent G.1 Accounts Payable Claims Review and Approval (Armstrong) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, August 15, 2023 How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to agenda@bozeman.net or visit the Public Comment Page prior to 12:00 p.m. on the day of the meeting. Public comments will also be accepted in-person and through video conference during the appropriate agenda items but you may only comment once per item. As always, the meeting will be recorded and streamed through the Commission's video page and available in the City on cable channel 190. For more information please contact the City Clerks' Office at 406.582.2320. 1 G.2 Approve the Four Points Phase 2 Final Plat Major Subdivision and Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman; Application No. 21399(Rogers) G.3 Authorize the City Manager to Sign the Public Works Service Agreement with Inland Potable Services, Inc for Inspection and Cleaning of the City of Bozeman Potable Water Tanks.(Miller) G.4 Authorize the City Manager to Sign a Use License with Williams Homes for Bridger Vale Park Dog Park Construction(Jadin) G.5 Authorize the Police Information Manager to Sign an Professional Services Agreement with LexisNexis Risk Solutions for the use of Accurint for Law Enforcement Plus Services.(Werley) G.6 Authorize the City Manager to Sign Amendment 1 to the Professional Services Agreement with Jacobs Engineering for Federal Transportation Grant Writing Services(Ross) G.7 Resolution 5527, Adopting the Bridger Vale Park Master Plan(Jadin) G.8 Resolution 5528, Designation of Additional Restraint-Free Dog Areas within the City of Bozeman(Jadin) G.9 Ordinance 2143, Final Adoption of Text Amendment Amending Chapter 10 Buildings and Building Regulations, Article 2 Technical Codes, Section 20 Building Division Fees and Permits(Bentley) H.Public Comment This is the time to comment on any matter falling within the scope of the Bozeman City 081621 148-99 SHEET 2.pdf 081621 148-99 SHEET 3.pdf 081621 148-99 SHEET 1.pdf 21399 FP transmittal.pdf PSA with Inland Potable Services and Exhibit.pdf Bridger-Vale-Dog-Park_Use-License.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit-B_Bridger-Vale-Dog-Park_Landscape-Plan.pdf Schedule A 1493135 City of Bozeman Bozeman Police Department.pdf Amendment 1 to PSA with Jacobs Engineering for_Federal Transportation Grant Writing Services.docx Scope and Fee for Amendment 1 for Federal Transportation Grant Writing Services.pdf Resolution_5527_Bridger_Vale_Park_Master_Plan.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit_B-Bridger_Vale_Parks_Master_Plan.pdf Resolution 5528 Creating New Restraint-Free Dog Areas within the City of Bozeman.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit_C-Blackwood_Groves_Ph2_Park_10.pdf Exhibit_B-SUD.pdf Exhibit_D-Meadow_Creek.pdf Ord 2143 Revise 10.02.020 Building Fees.pdf 2 Commission. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once per topic. Please note, the City Commission cannot take action on any item which does not appear on the agenda. All persons addressing the City Commission shall speak in a civil and courteous manner and members of the audience shall be respectful of others. Please state your name and address in an audible tone of voice for the record and limit your comments to three minutes. Written comments can be located in the Public Comment Repository. I.Special Presentation I.1 Triannual Climate Plan Report (Meyer) J.Action Items J.1 Resolution 5526, Confirming the Revised Scope of Work for Kagy Boulevard (Ross) J.2 Preliminary Plat for the Aaker Phase 1 Major Subdivision at the northwest corner of South 19th Avenue and Stucky Road, Application 22311 (Quasi-Judicial)(Montana) J.3 Public Hearing on Resolution 5505 - Resolution Approving the Lumberyard Project in the Bozeman Midtown Urban Renewal District as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement(Fine) J.4 Authorize the City Manager to sign the Grant Agreement with NeighborWorks Montana in support of the Gallatin Housing Impact Fund(Fine) K.FYI / Discussion L.Adjournment Kagy Boulevard_Open House Activity Results.pdf Kagy Boulevard_Online Activity Results.pdf Resolution_5526_- _Confirming_the_Revised_Scope_of_Work_for_Kagy_Boulevard_FINAL.docx 22311 Aaker Phase 1 PP CC staff rpt.pdf Commission Memorandum Lumberyard 20230815 v.2.docx Resolution approving Lumberyard project.docx BZN Development Agreement.Lumberyard.v5.docx Bozeman Baker Tilly Lumberyard Flats Request for Assistance Financial Review summary memo update 071723.docx 230724 Virga Capital TIF Application.pdf Bozeman Grant Agreement v.4.docx Community Housing Fund_Structure and Offer_April 2023.pdf Gallatin Housing Impact Fund_Loan Program Term Sheet.pdf Gallatin Housing Impact Fund_Loan Program Term Sheet.pdf City Commission meetings are open to all members of the public. If you have a disability and require assistance, please contact the City for ADA coordination, 406.582.2306 (TDD 582-2301). Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 3 4 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Kira Peters, Assistant City Manager Jeff Mihelich, City Manager SUBJECT:Authorize the Absence of Commissioner Pomeroy MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Administration RECOMMENDATION:Authorize the Absence of Commissioner Pomeroy STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Commissioner Pomeroy notified City Manager Mihelich and Mayor Andrus of her anticipated absence. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Report compiled on: July 6, 2023 5 Memorandum REPORT TO:City Commission FROM:Nadine Waters, Accounts Payable Clerk Nicole Armstrong, Accounts Payable Clerk Levi Stewart, Assistant City Controller Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Finance RECOMMENDATION:The City Commission is recommended to make a motion and approve payment of claims as presented. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Montana Code Annotated, Section 7-6-4301 requires claims to be presented to the City Commission within one year of the date the claims accrued. Claims presented to the City Commission under this item have been reviewed and validated by the Finance Department. The Department has ensured that all goods and services have been received along with necessary authorizations and supporting documentation. UNRESOLVED ISSUES:None ALTERNATIVES:The City Commission could decide not to approve these claims or a portion of the claims presented. This alternative is not recommended as it may result in unbudgeted late fees assessed against the City. FISCAL EFFECTS:The total amount of the claims to be paid is presented at the bottom of the Expenditure Approval List posted on the City’s website at https://www.bozeman.net/departments/finance/purchasing. Report compiled on: August 10, 2023 6 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Approve the Four Points Phase 2 Final Plat Major Subdivision and Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman; Application No. 21399 MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Approve the Four Points Phase 2 Final Plat Major Subdivision and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND:Four Points MT, LLC (Applicant) submitted an application to the City of Bozeman Department of Community Development for Final Plat review and approval for the Four Points Phase 2 Major Subdivision Final Plat to create thirteen (13) lots zoned R-5, Residential Mixed-Use High Density. This plat will create six developable lots, three deed restricted lots, two open pace lots, a lift station lot, and a linear park lot as shown on the plat. Four Points Phase 1 was approved by the City Commission on April, 27, 2015 and subsequently developed. The Commission approved the Four Points Phase 2 Major Subdivision preliminary plat unanimously (5:0) on April 18, 2016. The Commission approved the Findings of Fact and Order for phase two on May 9, 2016. Four Points Findings of Fact (PDF) A minor modification was made between the preliminary plat and final plat on Lot 1 and 2, Block 2 to accommodate a change in the wetlands boundary. The boundary between these lots was altered to follow wetlands boundary after said wetlands were filled with approval from the Army Corps of Engineers. No change in the number of lots being platted resulted. 7 All required subdivision infrastructure has been installed. Therefore no improvement agreement is required. Therefore, based on the summary review provided, the City Transportation and Engineering Department and Department of Community Development have reviewed the application against the conditions of the preliminary plat approval and, as a result, find that the Four Points Phase 2 Major Subdivision Final Plat application may be approved by the City Commission. §76-3-611(1), MCA, provides that the City Commission shall approve the plat only if: (a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of this chapter and regulations adopted pursuant to this chapter; and (b) the County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to be subdivided have been paid. Staff finds that all terms and conditions of the preliminary plat approval have been met. The County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to subdivide have been paid. UNRESOLVED ISSUES:None identified ALTERNATIVES:As determined by the Commission FISCAL EFFECTS:Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Attachments: 081621 148-99 SHEET 2.pdf 081621 148-99 SHEET 3.pdf 081621 148-99 SHEET 1.pdf 21399 FP transmittal.pdf Report compiled on: July 25, 2023 8 9 10 11 MEMORANDUM ---------------------------------------------------------------------------------------------------------- TO: KELLY RISCHKE, ASSISTANT CITY ATTORNEY MIKE MAAS, CITY CLERK FROM: TOM ROGERS, SENIOR PLANNER RE: FINAL PLAT REVIEW FOR THE FOUR POINTS PHASE 2 SUBDIVISION, PLANNING FILE NO. 21399 DATE: JULY 19, 2023 ---------------------------------------------------------------------------------------------------------- Four Points MT, LLC (Applicant), made application to the City of Bozeman Department of Community Development for Final Plat review and approval for the Four Points Phase 2 Subdivision Final Plat to create thirteen (13) lots zoned R-5. Lots described below and all associated easements and rights of way. Block 1 Lot 1 Deed restricted, wetlands & common open space Lot 2 Developable Block 2 Lot 1 Developable Lot 2 Deed restricted, wetlands Lot 3 Common open space Lot 4 Developable Block 3 Lot 1 Lift station lot Lot 2 Developable Lot 3 Developable Lot 4 Developable Lot 5 Common open space, storm water Lot 6 Deed restricted, wetlands & common OS Lot 7 Linear Park Attached is a copy of the Findings of Fact and Order from Preliminary Plat Application, number 15526 for Four Points Phase II Subdivision. The Commission approved the preliminary plat unanimously (5:0) on April 18, 2016. The Commission approved the Findings of Fact and Order on May 9, 2016. Major multi-phased subdivision approvals are valid for three years plus extensions. 12 Page 2 of 3 There are no uninstalled subdivision improvements associated with this application. Based on the summary review provided below, the City Engineering Department and Department of Community Development have reviewed the application against the conditions of preliminary plat approval; and as a result, find that the Final Plat application may be approved by the City Commission. The documents listed below are attached for your review. A minor modification was made between the preliminary plat and final plat on Lot 1 and 2, Block 2 to accommodate a change in the wetlands boundary. The boundary between these lots was altered to follow wetlands boundary after said wetlands were filled with approval from the Army Corps of Engineers. No change in the number of lots being platted is contemplated. The Community Development staff respectfully requests that you prepare City Attorney's Certificates using the attached original Platting Certificates as updated; approve the Certificates of Director of Public Works and Certificate of Completion "as to form". The final City signatures will be obtained once the City Commission has approved the final plats and the unresolved issue listed above is resolved. Signed Plat received on June 8, 2023, complete and signed RTC received on July 13, 2023, and Deed with RTC for the Lift Station lot received on July 18, 2023. Upon receipt of these documents adequacy was granted on July 19, 2023. The final plat review must complete review within a 45-day (working days) review period. The review period begins once the signed mylars are received. The conditions of preliminary plat approval, which are pertinent to this subdivision and how they have been met, are described in the submittal materials. Note: The Community Development Department and Engineering Department have also reviewed the final plat application against the preliminary plat cited code provisions and found compliance with these code requirements. The Engineering Department has also reviewed and approved the “closure” of the final plat. The project is scheduled for consideration by the City Commission on August 8, 2023. Materials for the agenda will be uploaded on (July 26, 2023). Please let me know if this will not work. Attachments: 1. Three (3) Mylar Final Plats 2. Original Platting Certificate (original signed) 3. Quitclaim Deed – granting Common Open Space Lots to the Owners Association and Original signed RTC for HOA 13 Page 3 of 3 4. Quitclaim Deed – granting Common Lots (deed restricted lot) to the Owners Association and Original signed RTC for HOA 5. Quitclaim Deed for Lift Station Lot 1, Block 3 to the City of Bozeman & Original signed RTC for City 6. Warranty Deed – Lot 7, Block 3, linear park and Original signed RTC for City 7. Signed Deed restriction 8. Signed waiver SID 9. Declaration of Covenants & Restriction for Four Points 10. Findings of Fact cc: File 14 Memorandum REPORT TO:City Commission FROM:Jill Miller, Water Treatment Plant Superintendent John Alston, Director of Utilities SUBJECT:Authorize the City Manager to Sign the Public Works Service Agreement with Inland Potable Services, Inc for Inspection and Cleaning of the City of Bozeman Potable Water Tanks. MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign the Public Works Service Agreement with Inland Potable Services, Inc for Inspection and Cleaning of the City of Bozeman Potable Water Tanks. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Water Treatment Plant schedules a potable water tank diving service to inspect and clean the five potable water tanks in the distribution system every five years. This allows the water tanks to remain online and in service. The cleaning and inspection must occur in the summer due to the cold water temperature for the safety of the dive team. The diving service provides a written report and video of the dive for our records. This provides data for the WTP to know when potable water tanks will need to be scheduled to be drained and taken out of service for repairs. There will only be four tanks (Lyman Tank, Hilltop Tank, WTP Tank, and WTP conduit) inspected and cleaned this year because of planned repairs on Sourdough Tank this winter. UNRESOLVED ISSUES:None ALTERNATIVES:Forgo cleaning and inspection. FISCAL EFFECTS:The potable water tank cleaning and inspection is budgeted for in the FY24 WTP Operations budget. Attachments: PSA with Inland Potable Services and Exhibit.pdf Report compiled on: July 28, 2023 15 Page 1 of 14 ` PUBLIC WORKS SERVICE AGREEMENT This Agreement is made this day of , by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, P.O. Box 1230, Bozeman, Montana 59771-1230 (“City”), and Inland Potable Services, Inc, 16297 E. Crestline Lane, Centennial, CO 80015, (“Contractor”). In consideration of the covenants, agreements, representations, and warranties contained herein, the parties agree as follows: 1.Work to be Performed: Contractor will perform work as outlined in proposal and quote for each City potable water tank, included in this Agreement and attached as Exhibit A. In general, the water tanks will be entered by divers to be inspected and cleaned. Contractor must prepare and deliver to the City’s Representative a written report of the findings. In addition, Contractor shall prepare and deliver video of the inspection and cleaning. 2.Contract Documents: This Agreement consist of the following: a. This Agreement; b.The proposals and quotes for each potable water tank attached as Exhibit A (the “Work”); and c.Proof of Insurance. 3.Time of Performance: Contractor shall begin the Work upon instruction by the City’s Representative. 4. Payment: Upon satisfactory final completion and acceptance of the Work as determined exclusively by the City, the City shall pay to Contractor, and Contractor shall accept as full payment for the performance of this Agreement and the Work, the amount of 16 Page 2 of 14 $18,900.00 (eighteen thousand nine hundred dollars). Contractor shall submit a request for payment by invoice to the City’s Representative as described below. 5.Contractor’s Representations and Warranties: In order to induce the City to enter into this Agreement, Contractor represents and warrants as follows: a.Contractor has familiarized itself with the nature and extent of this Agreement, the Work, the Work site, and with all local conditions and federal, state and local laws, ordinances, rules and regulations that in any manner may affect cost, progress or performance of the Work. b.Contractor has studied carefully all reports of investigations and tests of subsurface and latent physical conditions at the site or otherwise affecting cost, progress or performance of the Work. c.Contractor has made or caused to be made examinations, and investigations as it deems necessary for the performance of the Work at the contract price, within the contract time and in accordance with the other terms and conditions of this Agreement and the Work, and no additional examinations, investigations, tests, reports or similar data are or will be required by Contractor for such purposes. d. Contractor has correlated the results of all such observations, examinations, investigations, tests, reports and data with the terms and conditions of this Agreement and the Work. e.Contractor and its sureties are liable for the satisfaction and full performance of all warranties. 6.General Requirements: a.Contractor Use of Premises. The Contractor shall confine its operations to site of the proposed Work. b.Safekeeping of Equipment and Materials on Work Site. The parties agree the responsibility for protection and safekeeping of equipment and materials on or near the site will be entirely that of Contractor and that no claim shall be made against the City by reason of any act of a City official or employee or trespasser. It shall be further understood that should any occasion arise necessitating access by the City to the sites occupied by the Contractor’s stored materials and equipment, the Contractor owning or responsible for the stored materials or 17 Page 3 of 14 equipment shall immediately remove same. No materials or equipment may be placed upon any private property until the property owner has agreed in writing to the location contemplated by the Contractor to be used for storage. c. Debris and Restoration. While performing the Work, and as part of the final completion of the Work, Contractor shall clean up the Work site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of the Work. d.Safety. Safety provisions must be entirely adequate and meet with City, County, State and Federal regulations to protect the public in affected areas. i. Fall protection must be utilized when the water tank hatches are open. ii.Proper OSHA procedures for confined space entry and fall protection must be followed. iii.Contractor acknowledges that water tank entry to perform this service is required and this may be considered an abnormally dangerous activity. iv.Contractor assumes all responsibility for ensuring and enforcing safe working conditions and compliance with all safety-related rules and regulations for the benefit of its own employees, the employees of subcontractors and the public when conducting the Work, including all duties related to safety and will indemnify the City for any losses or damages the City may incur as a result of work conditions. 7.Delays and Extensions of Time: If Contractor’s performance of this Agreement is prevented or delayed by any unforeseen cause beyond the control of the Contractor, including acts or omissions of the City, Contractor shall, within ten (10) days of the commencement of any such delay, give the City written notice thereof. Further, Contractor shall, within ten (10) days of the termination of such delay, give the City written notice of the total actual duration of the delay. If the City is provided with these required notices and if the City determines that the cause of the delay was not foreseeable, was beyond the control of the Contractor, and was not a result of the fault or negligence of the Contractor, then the City will determine the total duration of the delay and extend the time for performance of the Agreement accordingly. Unless the delay is caused by the intentional interference of the City with the Contractor’s performance, Contractor shall make no claim for damages or any other claim other than for an extension of time as herein provided by reason of any delays. 18 Page 4 of 14 8.Suspension: a.The City may, by written notice to the Contractor and at its convenience for any reason, suspend the performance of all or any portion of the work to be performed on the Work (“Notice of Suspension”). The Notice of Suspension shall set forth the time of suspension, if then known to the City. During the period of suspension, Contractor shall use its best efforts to minimize costs associated with the suspension. b.Upon Contractor’s receipt of any Notice of Suspension, unless the notice requires otherwise, Contractor shall: (1) immediately discontinue work on the date and to the extent specified in the Notice of Suspension; (2) place no further orders or subcontracts for materials, services, or equipment; (3) promptly make every reasonable effort to obtain suspension upon terms satisfactory to City of all orders, subcontracts, and rental agreements to the extent that they relate to the performance of the work suspended; and (4) continue to protect and maintain the Work, including those portions on which work has been suspended. c.As compensation for the suspended Work, Contractor will be reimbursed for the following costs, reasonably incurred, without duplication of any item, and to the extent that such costs directly resulted from the suspension: (1) all reasonably incurred costs for the demobilization of Contractor’s and subcontractor’s crews and equipment; (2) an equitable amount to reimburse Contractor for the cost to protect and maintain the Work during the period of suspension; and (3) an equitable adjustment in the cost of performing the remaining portion of the work post-suspension if, as a direct result of the suspension, the cost to Contractor of subsequently performing the remaining work on the Work has increased or decreased. d.Upon receipt of written notice by the City to resume the suspended work (“Notice to Resume Work”), Contractor shall immediately resume performance of the suspended work as to the extent required in the Notice to Resume Work. Any claim by Contractor for time or compensation described in Section 9(c) shall be made within fifteen (15) days after receipt of the Notice to Resume Work and Contractor shall submit a revised Work Schedule for the City’s review and approval. Contractor’s failure to timely make such a claim shall result in a waiver of the claim. e.No compensation described in Section 9(c) shall be paid and no extension of time to complete the Work shall be granted if the suspension results from Contractor’s non- compliance with or breach of the terms or requirements of this Agreement. 19 Page 5 of 14 9. Termination for Contractor’s Fault: a.If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the Work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the Work and complete it, either with its own resources or by re-letting the contract to any other third party. b.In the event of a termination pursuant to this Section 10, Contractor shall be entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor shall not be entitled to any further payment until the Work has been completed. Upon completion of the Work, if the unpaid balance of the Contractor’s compensation exceeds the cost to the City of completing the work, including all costs paid to any subcontractors or third parties retained by the City to complete the Work and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess shall be paid to the Contractor. If the City’s Cost for Completion exceeds the unpaid balance of the Contractor’s compensation, then Contractor and its sureties shall be liable for and shall pay the difference, plus interest at the rate applicable to court judgments, to the City. c.Any termination provided for by this Section 10 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d.In the event of termination under this Section 10, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10.Termination for City’s Convenience: a.Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease work on the Work, City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. 20 Page 6 of 14 b.Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease work on the Work, discontinue placing orders for materials, supplies, and equipment for the Work, and make every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c.In the event of a termination pursuant to this Section 11, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain the City’s sole property. d.The compensation described in Section 11(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 11. Limitation on Contractor’s Damages; Time for Asserting Claim: a.In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b.In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 21 Page 7 of 14 12.Representatives: a.City’s Representative: The City’s Representative for the purpose of this Agreement shall be Jill Miller, Water Treatment Plant Superintendent or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b.Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Paul Click, Inland Potable Services, Inc or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c.Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 13. Permits: Contractor shall provide all notices and obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of the Work. 14.Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, Montana Contractor Registration requirements, Montana Contractors Gross Receipts Tax (Title 15, Chapter 50, MCA), all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of 22 Page 8 of 14 the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15.Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16.Intoxicants; DOT Drug and Alcohol Regulations: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of the Work. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. 17. Labor Relations: In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of the Work, any labor problems or disputes of any type arise or materialize which in turn cause any work on the Work to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take to resume work on the 23 Page 9 of 14 Work shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the work on the Work to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 18. Subcontractors: Contractor may employ subcontractors for any part of the Work. Contractor shall provide City with a list of all subcontractors employed. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor shall remain fully responsible and liable for the timely completion of the Work. Contractor is solely liable for any and all payments to subcontractors. Contractor shall hold all payments received from the City in trust for the benefit of subcontractors, and all such payments shall be used to satisfy obligations of the Work before being used for any other purpose. Contractor shall make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from the City. In the event of a dispute regarding any subcontractor’s invoice, Contractor shall promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 19. Indebtedness and Liens: Before City may make any final payment to Contractor, Contractor shall furnish City with satisfactory proof that there are no outstanding debts or liens in connection with the Work. If the Contractor allows any indebtedness to accrue to subcontractors or others during the progress of the work, and fails to pay or discharge the same within five (5) days after demand, then City may either withhold any money due to Contractor until such indebtedness is paid or apply the same towards the discharge of the indebtedness. If any lien or claim is filed or made by any subcontractor, material supplier, or any other person, the Contractor shall immediately notify the City and shall cause the same to be discharged of record within thirty (30) days after its filing. 20. Indemnification; Insurance: Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively 24 Page 10 of 14 referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including reasonable attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith resulting in bodily injury or destruction of property and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City is responsible to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. Contractor and City waive against each other, and against the other’s officers, directors, members, partners, and employees any and all claims for or entitlement to special, incidental, indirect, punitive, and consequential damages, loss of use, loss of profits and revenue, and loss of reputation arising out of, resulting from, or 25 Page 11 of 14 related to the Contract. This Cap does not apply to or limit any claim by either party for the following: (a) costs, losses, or damages asserted by third parties for destruction of tangible property, bodily injury, sickness, disease, or death or (b) gross negligence or willful misconduct. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below: • Workers’ Compensation – not less than statutory limits; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; and • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles). The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project are required to pay or have withheld from earnings a license fee of one percent (1%) of the gross contract price if the gross contract price is Five Thousand Dollars ($5,000) or more. This license fee is paid to the Montana Department of Revenue. 22. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. 26 Page 12 of 14 Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b.If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute shall be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 23.Attorney Fees: In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing party or the party given notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in- house counsel (to include the City Attorney’s Office). 24. Survival: Contractor’s indemnification and warranty obligations shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 25. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 26. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 27.Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 28.Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 29.Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 30.Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 27 Page 13 of 14 31.No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33.Authority: Each party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to sign this Agreement. 34.Independent Contractor: The parties agree and acknowledge that in the performance of this Agreement and the completion of the Work, Contractor shall render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of the City. 35. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 36.Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA __________________________________ CONTRACTOR (Type Name Above) By_______________________________ By______________________________ Jeff Mihelich, City Manager Inland Potable Services, Inc 28 Page 14 of 14 Print Name:________________________ Print Title: ________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 29 Exhibit A 30 City of Bozeman Orry Browning 7022 Sourdough Canyon Rd. Bozeman, MT 59715 Date: September 7, 2022 Phone: 406-994-0502 Email: OBrowning@bozeman.net Diving Services for Potable Water Tank Cleaning and Inspection Tanks Tank Description Additional Information Scope of Work Includes 1 2.1MG Hilltop Reservoir On-Grade, Steel Welded 93` Dia x 47` Dp All Discharge water does not require de-chlorination. All Discharge water and sediment may be released onto the ground. Clean and inspect. Up to three (3) inches of sediment removal from the tank floor. Visual inspection of the interior and exterior of the tank. Written report with photos. and a Video of the dive. 1 5.2MG Lyman Reservoir Below-Grade, Concrete 175` L x 138` W x 30` Dp 1 5.3MG WTP Tank Below-Grade, Concrete 205` Dia x 24` Dp 1 188KG Conduit Clearwell Below-Grade, Steel 250` ft L X 8` Dia Proposal Total: $18,900.00 Proposals signed and returned to Inland Potable Services are valid for one year from date of acceptance. Payment terms: 1% Ten Days, Net 30 Days. 1.5% interest will be charged on all accounts past 30 days. This contract is based on a total price which includes time and mobilization to and from the project site, set-up and breakdown of equipment, and the preparation for the dive and diving services. Diving services will include sediment removal up to 3 inches from the floor, a video inspection and written report for your records (still photos included). During the initial dive, sediment depths will be measured by the diver and documented on video. If removal of sediment of an abnormal consistency (clay, calcium, rocks, pebbles, mud, etc.), additional sediment removal (over 3 inches from the floor), wall cleaning or epoxy repairs is requested and approved by designated on-site representative, each of these services will be performed at a rate of $400.00 per hour. Inland Potable Services, Inc. will provide all personnel and equipment necessary to provide diving services in the above referenced tank(s) or reservoir(s). We will provide your utility with a written report as well as a narrated color video for the services performed. The tank(s) or reservoir(s) will be inspected according to American Water Works Association (AWWA), NACE, SSPC, ASNT, ACI and AWS standards. •All divers employed by Inland Potable Services are certified Commercial Divers. •Inland Potable Services is fully bondable and insured. •All equipment entering the tanks will be disinfected with a minimum of 200 ppm Chlorine. 16297 E. Crestline Lane Centennial, Colorado 80015 Office Phone: 303-400-4220 Toll Free: 1-844-372-2956 Office Fax: 303-400-4215 Email: paul@inlandpotableservices.com 31 •Schedule dates are tentative and are subject to change. •If Inland Potable Services dive team is required to stop working or is delayed working due tounforeseen circumstances or any reasons beyond our control (i.e. no utility personnel onsite,inability to access designated work site, low water level, etc.) a down-time charge of $369.00per hour will be charged. •A fee based on $400.00 per hour will be charged if we are unable to get our truck and trailerto a tank location. We will use portable dive gear and cleaning equipment to complete the job.Please understand that use of utility vehicles or equipment may be necessary to get ourequipment to a tank. •Inland Potable Services makes every attempt to obtain complete information from customersprior to the presentation of bids concerning fees required for municipal licenses, registrationfees, Sales Tax or Use Taxes in your area. These items are identified on your contract. In theevent that additional fees are discovered or charged, after the bid has been submitted, thesecharges will be added to the stated contract amount when billed. Paul Click, Regional Account Manager Date: September 7, 2022 Important Information Hatch Size - The entry hatch on top of the tank must be at least 20 inches in diameter or square with no obstructions that would prevent entry. A futile trip charge of $500.00 will be levied if the team is unable to enter the tank due to the hatch size being too small or objects are blocking the entry. Water Level – Please understand, the water level within the tank must be within ten (10) feet or less of the hatch opening prior to the dive team’s arrival. A futile trip charge of $500.00 will be levied if the team is unable to complete job if water levels cannot be adjusted to the appropriate level. Tank Information – Please verify the type of tank, dimensions or information listed in the proposal is accurate. If the tank dimensions or information is not accurate as listed then additional costs may be added. Completion Date – With acceptance this work will be completed at a mutually acceptable date within one year. If money budgeted for this work must be used by a specific date, please indicate the date on this line and every attempt will be made to meet the given date: ________________________________ Option – If a hatch gasket ($125.00), a #24 mesh vent screen ($75) and/or a lock for the hatch ($25) is needed, would you like the dive team to install while on-site? Yes ___ No _x__ If a hard bound copy of the inspection report is needed ($125.00) Yes__ No_x_ To accept, please sign and date the proposal. Please fax both pages to 303-400-4215 or scan and email them to me at paul@inlandpotableservices.com. __________________________________________ ______________________________________ Printed Name and Title Signature Date: ___________________________ 32 Memorandum REPORT TO:City Commission FROM:Addi Jadin, Park Planning and Development Manager Mitch Overton, Director of Parks and Recreation SUBJECT:Authorize the City Manager to Sign a Use License with Williams Homes for Bridger Vale Park Dog Park Construction MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Agreement - Property RECOMMENDATION:Authorize the City Manager to Sign a Use License with Williams Homes for Bridger Vale Park Dog Park Construction STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND:Williams Home is installing a fenced dog area in Bridger Vale Park which connects to the Glen Lake Rotary Park trail system. The parkland was dedicated to the City at the time of platting of Bridger Vale Subdivision PUD. The use license authorizes Williams Homes and their subcontractors to work within the City park and establishes conditions for restoration of disturbances. UNRESOLVED ISSUES:NA ALTERNATIVES:Per Commission FISCAL EFFECTS:Williams Homes is voluntarily providing the park improvements, which will be maintained by the Parks and Recreation Department. Attachments: Bridger-Vale-Dog-Park_Use-License.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit-B_Bridger-Vale-Dog-Park_Landscape-Plan.pdf Report compiled on: July 27, 2023 33 License Agreement with Williams Homes for Bridger Vale Park Page 1 of 12 AFTER RECORDING PLEASE RETURN TO: City Clerk City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 LICENSE AGREEMENT FOR THE USE OF CITY PROPERTY BY WILLIAMS HOMES This License Agreement (the “Agreement”) is entered into on July 31st , 2023 between the City of Bozeman, a self-governing municipality operating pursuant to its Charter and the laws of the State of Montana, with a mailing address of P.O. Box 1230, Bozeman, MT 59771 (the “City”) and Bridger Vale 20, LLC, with a mailing address of 24911 Avenue Stanford, Santa Clarita, California 91355 (“Licensee” and collectively with the City, the “Parties”). In consideration of Licensee’s promises herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1.Purpose. The City owns the real property described as City Park Lot 1 of Bridger Vale Subdivision PUD, located in the Southwest Quarter (SW ¼) of Section Thirty-one (31), Township One (01) South, Range Six (06) East, P.M.M., City of Bozeman, Gallatin County, Montana (Exhibit A) (referred to as the “City Property”, “Park or “Park Property”) and agrees to authorize Licensee to access a portion of the Park Property for purposes of creating a fenced dog area pursuant this Agreement and Licensee’s approved final construction drawings for Bridger Vale Park dog park (Exhibit B). The alternations of and improvements to the Park Property consist of the following: Installation of a perimeter fence, trash stations and related appurtenances and landscaping to create a dog park and restore the property (the “Alterations and Improvements”). 2.Description of Licensed Property. The portions of the Park Property subject to this Agreement consist of the real property as described in Section 1 (Exhibit A). 3.Title. Licensee hereby acknowledges this Agreement grants a privilege and not an interest in the Licensed Property and the title of the City to the Licensed Property, and Licensee agrees never to deny such title or claim, at any time, or claim any interest or estate of any kind or extent whatsoever in the Licensed Property by virtue of this Agreement or Licensee’s occupancy or use hereunder. The City may enter the Licensed Property at any time to assert its real property 34 License Agreement with Williams Homes for Bridger Vale Park Page 2 of 12 interest or for other purposes which do not unreasonably interfere with the activities of the Licensee authorized by this Agreement. 4.License for Construction and Installation of Improvements; Term. The City hereby grants permission, revocable and terminable as provided herein, during period commencing on the Effective Date and expiring on June 30, 2024 on the terms and conditions set forth herein, which Licensee promises to comply with and abide by to Licensee for Licensee’s fulfillment of its obligations as stated in this Agreement and/or the conditions of the Site Plan, which Licensee promises to comply with and abide by (the “Use License”). The Use License consists of permission for Licensee, their contractors, subcontractors and other entities contracted with or hired by Licensees to use the Licensed Property and no other portion of the Park Property for only the purposes as stated herein. Construction of Improvements not in compliance with the infrastructure plan shall be considered a breach of the Use License. The term of the Use License may be extended by mutual agreement of the Parties in writing. The City Manager is authorized to agree on behalf of the City to extension(s) of the term of the Use License. Title to all permanent improvements on the Park Property(ies) and on public rights-of-way adjacent to the Park Property(ies) made by Licensee or its agents shall vest in the City, free and clear of all debts, liens and encumbrances. 5.Indemnification/Insurance. a. To the fullest extent permitted by law, Licensee, recognizing it exercises its privileges under this Agreement at its own risk, shall release, and shall protect, defend, indemnify, and hold harmless the City and its agents, representatives, employees, and officers from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City, occasioned by, growing or arising out of or resulting from or in any way related to: (i) the occupation or use of the Licensed Property by Licensee; (ii) the negligent, reckless, or intentional misconduct of the Licensee, its officers, employees, or agents on or related to the Licensed Property; and (iii) any negligent, reckless, or intentional misconduct of any of the Licensee’s guests, invitees, contractors, or subcontractors on or related to the Licensed Property. 35 License Agreement with Williams Homes for Bridger Vale Park Page 3 of 12 Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to an indemnitee described in this Section. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Licensee’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Licensee to assert its right to defense or indemnification under this Agreement or under the Licensee’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Licenseewas obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against the City, the City may elect to represent itself and incur all costs and expenses of suit. Theobligations of this Section 5(a) shall survive termination of this Agreement. b. In addition to and independent from the above, during the term of this Agreement Licensee shall at Licensee’s expense maintain those insurances as may be required by City as set forth below through an insurance company or companies duly licensed and authorized to conduct business in Montana which insures the liabilities and obligations specifically assumed by the Licensee in Section 5(a). The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Licensee in Section 5(a). Within ten (10) days following execution of this Agreement, Licensee shall provide City with proof of such insurance in the form of a certificate of insurance, the insuring agreement and all applicable endorsements demonstrating that such insurance is in full force and effect and shall provide such proof when requested by the City thereafter during the term of this Agreement. The City may require additional evidence of the nature and scope of the insurance required herein. 36 License Agreement with Williams Homes for Bridger Vale Park Page 4 of 12 Licensee shall ensure such required insurance coverage is timely renewed so that there is no lapse in coverage during the time such insurance must remain in place. Licensee shall notify the City within two (2) business days of Licensee’s receipt of notice that any required insurance coverage will be terminated or Licensee’s decision to terminate any required insurance coverage for any reason. The insurance and required endorsements must be in a form suitable to the City. c. Licensee shall obtain the following type of insurance in the amount indicated: Workers’ Compensation:not less than statutory limits; and Employers’ Liability:$1,000,000 each occurrence; $2,000,000 annual aggregate; Commercial General Liability: $1,000,000 per occurrence; $2,000,000 annual aggregate; Automobile Liability:$1,000,000 property damage/bodily injury; $2,000,000 annual aggregate; Additional coverage as may be reasonably required by the City from time to time. For liabilities assumed hereunder, the City, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability and Automobile Liability policies. 6.Construction/Restrictions/Repair and Maintenance. a. For the use of any public rights-of-way or any real property of the City other than the Licensed Property the Licensee shall obtain an encroachment permit from the City’s Director of Public Works or other applicable approvals. b. Licensee shall keep the adjacent private and public properties including streets, alleys, and sidewalks free from construction debris and other materials stored or located on the Licensed Property. Sediment, rock, mud, and other debris entering upon public or private property outside the Licensed Property from the Licensee’s project shall be cleaned or removed immediately. c. Licensee agrees to immediately repair any damage caused by Licensee, its agents, invitees, guests, contractors or subcontractors to any public or private 37 License Agreement with Williams Homes for Bridger Vale Park Page 5 of 12 property outside the Licensed Property including but not limited to streets, curbs, sidewalks, and other infrastructure to the current City Standard for public infrastructure, and to a condition acceptable to the owner for privately owned infrastructure. Licensee agrees to timely comply with any request of the City to perform maintenance and repairs to streets, curbs, sidewalks and other infrastructure damaged by Licensee or Licensee’s agents, invitees, guests, contractors, or subcontractors. d. Any damage to the Park Property and the Licensed Property shall be repaired to a condition acceptable to the City.Maintenance or repair work to the Property shall be performed to the City’s reasonable satisfaction. 7.Waste, Nuisance, and Unlawful Use Prohibited. Licensee shall not commit, or suffer to be committed, any waste on the Park Propertyor the Licensed Property, nor shall Licensee maintain, commit, or permit the maintenance of any nuisance on the Park Propertyor the Licensed Property or use the Licensed Property for any unlawful purpose. Licensee shall not do or permit anything to be done in or about the Park Property or the Licensed Property which shall in any way conflict with any law, ordinance, rule, or regulation affecting the occupancy and use of the Park Propertyor Licensed Property, which are or may hereafter be enacted or promulgated by any public authority. 8.Hazardous Materials. Licensee agrees and represents that it shall not store or dispose of on the Licensed Property any “Hazardous Materials” as defined by Federal, State or local law as from time to time amended. 9.Signage. Licensee, nor any of its agents may not install any signage except as approved by the City’s Representative. 10.Restoration. a. Within 30 days upon completion of the Licensee’s use of the Licensed Property or within 30 days of termination of this Agreement pursuant to Section 12, whichever is earlier, and under no circumstances later than June 30, 2024, the Licensee shall cause the Licensed Property (and any portion of the Park Property disturbed by Licensee’s activities) to be fully restored to the condition existing at the date of execution by the City. Restoration is at the discretion of the City and may include but is not limited to grading and repairs to failed sub- grade; reconstruction of accesses, fencing, and existing water systems, as applicable; installation of ground cover as specified by the Parks Superintendent or City Representative; and installation of temporary water 38 License Agreement with Williams Homes for Bridger Vale Park Page 6 of 12 system or application of water sufficient to stabilize the area disrupted. In addition, Licensee shall restore damage it or its agents, invitees, guests, hires, contractors or subcontractors cause to other public or private infrastructure adjacent to the Licensed Property to a condition as good or better than existed prior to Licensee’s occupation of the Licensed Property. All work to restore the Licensed Property shall comply with applicable building codes and the City’s design and construction standards, except to the extent that the Existing Condition, as explained below, does not comply with such codes and standards. Licensee may be required to enter into a contract with the City for such work. Licenseemay cause their contractors or other agents to conduct such restoration but in no case shall Licensee be relieved of its obligation under this Section until such restoration is accepted by the City. b. Unless waived by the City Representative, prior to Licensee occupying the Licensed Property, the City’s Representative and Licensee shall perform an inspection of the Licensed Property and adjacent public and private infrastructure with video and/or photographs to record the condition of the Licensed Property and/or public or private infrastructure (the “Existing Condition”). c. The City retains the right to approve any plans for and to inspect work done under this Section. d. The City and Licensee may enter into an agreement prior to the expiration of the term of this Agreement or prior to the end of Licensee’s occupation of the Licensed Propertyregarding restoration of the Licensed Property to a condition different from the Existing Condition. Such agreement may address: (i) improvements to the Licensed Property in addition to or different than the Licensees’ obligations for restoration/repair under this Agreement; (ii) the City’s contribution of funds to such improvements, if any; and (iii) other duties and obligations of the Licensee regarding restoration and repair of the Licensed Property. Nothing in such an agreement will reduce the obligations of Licensees under this Agreement. e.Site Restoration Security.The Licensee must provide the City security for Licensee’s restoration requirement through a form acceptable to the Bozeman City Attorney. Licensee may provide a cash deposit, a letter of credit, or obtain a good and sufficient site restoration performance bond payable to the City of Bozeman. The security shall be for the complete restoration of the Site as required by this Section in an amount equal to ten thousand dollars 39 License Agreement with Williams Homes for Bridger Vale Park Page 7 of 12 ($10,000.00). Such security shall be conditioned on the City’s determination whether required restorations have been satisfactorily completed. Licensee may substitute such security upon a written requested directed to the City’s Representative and upon approval by the Bozeman City Attorney. Release of the security to Licensee upon satisfaction of their restoration obligations shall be upon written request of the Licensee providing the security and must be authorized in writing by the City’s Representative. 11.Termination. If Licensee fails to comply with any condition of this Agreement at the time or in the manner provided for, the City may, at its option, terminate this Agreement and be released from all obligations if the Licensee’s default is not cured within sixty (60) calendar days after written notice of the default is provided by the City to the Licensee. Said notice shall set forth the items to be cured. Notices shall be provided in writing and hand-delivered or mailed to the parties at the addresses set forth in the first paragraph of this Agreement. Failure to cure any default may result in an order by the City’s Representative for the Licensee to pay a fine. 12.Due Diligence. Licensee shall at all times exercise due diligence in the protection of the City’s Park Property and the Licensed Property against damages. 13.Non-discrimination and Equal Pay. The Licensee agrees that all hiring by Licensee of persons performing this Agreement shall be on the basis of merit and qualifications. The Licensee will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Licensee will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Licensee shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Licensee represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Licensee must report to the City any violations of the Montana Equal Pay Act that Licensee has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. 40 License Agreement with Williams Homes for Bridger Vale Park Page 8 of 12 Licensee shall require these nondiscrimination terms of its sub-licensees providing services under this Agreement. 14.Amendment. This Agreement represents the entire understanding between the Parties regarding the subject matter and supersedes any prior agreement, verbal or written. Any amendment or modification of this Agreement or any provision herein shall be made in writing or executed in the same manner as the original document and shall after execution become a part of this Agreement. 15.Assignment. Licensee may not assign this Agreement in whole or in part and may not sublet all or any portion of the Property without the prior written consent of the City. No assignment will relieve Licensee of its responsibility for the performance of the Agreement (including its duty to defend, indemnify and hold harmless). This license shall not run with the land. 16.Waiver of Claims. Licensee waives all claims against City for injury to persons or property on or about the Property or from its use of the Licensed Property. It shall be understood that the responsibility for protection and safekeeping of equipment and materials on or near the Property will be entirely that of the Licensee and that no claim shall be made against the City by reason of any act of an employee, officer, or, agent of the City or any trespasser. 17.Representatives. a. City’s Representative. The City Representative for the purpose of this Agreement shall be Addi Jadin, Parks Planning and Development Manager, or her successor or designee. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available,Licensee may direct its communication or submission to other City personnel or agents and may receive approvals or authorization from such persons. b. Licensee’s Representative. The Licensee’s Representative for the purpose of this Agreement shall be William Leep, Assistant Project Manager, Bridger Vale 20, LLC. Whenever direction to or communication with Licensee is required by this Agreement, such direction or communication shall be directed to Licensee’s Representative; provided, however, that in exigent circumstances when Licensee’s Representative is not available, the City may direct its direction or communication to other designated employees or agents of Licensee. 41 License Agreement with Williams Homes for Bridger Vale Park Page 9 of 12 18.Permits. Unless otherwise agreed to in writing by the parties, Licensee shall provide all notices, comply with all applicable federal, state, and local laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 19.Intoxicants; DOT Drug and Alcohol Regulations. Licensee shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the Licensed Property. Licensee acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti- drug and alcohol misuse prevention plans and related testing. The City shall have the right to request proof of such compliance and Licensee shall be obligated to furnish such proof. The City may order removal from the Licensed Property of any employee or agent of Licensee or any of its subcontractors for use of intoxicants on the Licensed Property. 20.Liens and Encumbrances. Licensee shall not permit any liens or encumbrances to be filed on the Park Property or the Licensed Property related to either the Licensee’s use of the Licensed Property or the Licensee’s actions pursuant to this Agreement. Prior to the expiration of this Agreement or termination by the City or Licensee as provided herein Licensee must furnish the City with satisfactory proof that there are no outstanding liens or encumbrances in connection with the Licensee’s use of the Licensed Property. 21.Dispute Resolution. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute shall be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22.Survival. Licensee’s indemnification obligations shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23.Headings. The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24.Waiver. A waiver by City of any default or breach by Licensee of any covenants, terms, or conditions of this Agreement does not limit City’sright to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 42 License Agreement with Williams Homes for Bridger Vale Park Page 10 of 12 25.Severability. If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 26.Applicable Law. The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. Jurisdiction for any dispute or claim raised under this Agreement or proceeding brought to interpret the Agreement shall lie solely in the State of Montana, Gallatin County. 27.Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 28.No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party except the City. 29.Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. 30.Authority. Each party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to sign this Agreement. 31.Independent Contractor. The Parties agree and acknowledge that in the performance of this Agreement Licensee shall not be considered an agent, representative, subcontractor, or employee of the City. The Parties further agree that all individuals and companies retained by Licensee at all times will be considered the agents, employees, or independent contractors of Licensee and at no time will they be the employees, agents, or representatives of the City. 32.Integration. This Agreement constitutes the entire agreement of the Parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 33.Recordation. This Agreement shall be recorded in the files of the Gallatin County Clerk and Recorder. All costs of recording shall be borne by the Licensee. A copy of this recorded agreement shall be provided to the City’s Representative. 43 License Agreement with Williams Homes for Bridger Vale Park Page 11 of 12 ########### End of Agreement except for signatures ########### 44 License Agreement with Williams Homes for Bridger Vale Park Page 12 of 12 Executed this _____ day of __________________, 20___. City: By: _____________________ Jeff Mihelich Bozeman City Manager STATE OF MONTANA ) : ss. County of Gallatin ) This instrument was acknowledged before me on the _____ day of ________________, 20___ by Jeff Mihelich, as City Manager for the City of Bozeman, Montana. __________________________________________ Notary Public for the State of Montana Printed Name: _____________________________ (SEAL)Residing in________________________________ My Commission Expires:_____________________ Williams Homes By: _______________________ _______________________ William Leep _______________________ Assistant Project Manager STATE OF MONTANA ) : ss. County of Gallatin ) This instrument was acknowledged before me on the _____ day of ________________, 20___ by William Leep, as Assistant Project Manager of Bridger Vale 20, LLC. __________________________________________ Notary Public for the State of Montana Printed Name: _____________________________ (SEAL)Residing in________________________________ My Commission Expires:_____________________ 45 Exhibits - License Agreement with Williams Homes for Bridger Vale Park EXHIBIT A Bridger Vale Subdivision Final Plat 46 Exhibits - License Agreement with Williams Homes for Bridger Vale Park EXHIBIT B Construction Drawings 47 ΔΔΔΔΔΔΔ48 FENCESYMBOLDESCRIPTIONQTYDETAILFENCE: 4' CHAIN LINK - GALVANIZED STEEL WITH BLACK PVC COATING. 1" 639 LF4/L1.2MESH WITH BLACK PVC COATING. SOURCED LOCALLYWOOD GATESYMBOLDESCRIPTIONQTYDETAILGATE:12' WIRE FILLED GATE, BLACK, BEHLEN COUNTRY. SKU: 401321251HTTPS://WWW.BEHLENCOUNTRY.COM/(800) 447-2751LATCH: HAMILTON HINGE CO. CORVALLIS, MT(406) 961-4086GATE: 4' WIRE FILLED GATE, BLACK, BEHLEN COUNTRY. SKU: 401320452HTTPS://WWW.BEHLENCOUNTRY.COM/(800) 447-2751LATCH: HAMILTON HINGE CO. CORVALLIS, MT(406) 961-4086ATHLETIC & RECREATIONAL PAVINGSYMBOLDESCRIPTIONQTYDETAILCONCRETE: BROOM FINISH16 SF3/L1.2SITE FURNISHINGSSYMBOLDESCRIPTIONQTYDETAILTRASH: MAGLIN MTR-0650-0000513/L1.2600 SERIES – 650 TRASH RECEPTACLE: LASER CUT – BIRCH PATTERN,COLOR: SILVER, METAL LID, SIDE OPENING, 1 X 32 GALLON BLACKPOLYETHYLENE LINER,HTTPS://WWW.MAGLIN.COM/1-800-716-5506PET WASTE: DOGI-POT ALUMINUM PET STATION22/L1.2COLOR: FOREST GREEN, SKU: 1003-LHTTPS://WWW.DOGIPOT.COM/(407) 888-4627TREESQTYBOTANICAL / COMMON NAMESIZECONTAINERDROUGHT TOL.NATIVE/ADAPTEDDETAIL5POPULUS TREMULOIDESB&B2" CALYESYES1/L1.2QUAKING ASPENMATURE SIZE 40`H X 20`W;SPACING AS SHOWN1POPULUS TREMULOIDES M/SB&B10-12`HTYESYES1/L1.2MULTI-STEM QUAKING ASPENMATURE SIZE 40`H X 20`W;SPACING AS SHOWNTREES TO RETAINQTYBOTANICAL / COMMON NAMESIZECONTAINERDROUGHT TOL.NATIVE/ADAPTEDDETAIL9EXISTING TREE SPECIES VARIES---EXISTINGYESYESTO BE RETAINEDNANANA1.PRIOR TO PLANTING, CONTRACTOR IS RESPONSIBLE FOR CONTACTINGCITY OF BOZEMAN TO SCHEDULE PRE-CONSTRUCTION MEETING AND TOOBTAIN PROPER TREE PLANTING PERMITS.2.PLANT MATERIAL SHALL CONFORM TO THE CURRENT AMERICANSTANDARD FOR NURSERY STOCK, BY THE AMERICAN NURSERY ANDLANDSCAPE ASSOCIATION. ALL PLANTS TO BE NURSERY GROWN.3.ALL PLANTS SHALL BE FULLY BRANCHED AND SYMMETRICAL IN HABIT,UNLESS OTHERWISE NOTED.4.ALL PLANTS TO BE SPACED AS SHOWN ON THE PLANS, UNLESSOTHERWISE NOTED.5.NO SUBSTITUTIONS ALLOWED WITHOUT PRIOR WRITTEN CONSENT FROMTHE LANDSCAPE ARCHITECT. ANY PLANT OR MATERIAL NOT MEETINGTHE REQUIREMENTS SHALL BE REJECTED, REMOVED, DISPOSED OF ANDREPLACED BY AND AT THE CONTRACTOR'S EXPENSE.6.PLANTS SHALL BE INSPECTED AND APPROVED ON-SITE PRIOR TOPLANTING BY LANDSCAPE ARCHITECT.7.PLANTS SHALL BE LOCATED BY THE CONTRACTOR AND LANDSCAPEARCHITECT SHALL GIVE DIRECTION, MAKE ADJUSTMENTS, AND APPROVELOCATION PRIOR TO INSTALLATION.8.VERIFY ALL QUANTITIES. PLANT QUANTITIES IN THE PLANT SCHEDULEARE FOR REFERENCE ONLY. CONTRACTOR IS RESPONSIBLE TOCOMPLETE THEIR OWN QUANTITY TAKE-OFFS FOR ALL PLANS AND SIZESSHOWN ON THE PLAN. IN CASE OF A DISCREPANCY THE PLANTING PLANSHALL DICTATE QUANTITY.8.GROW BAGS MAY BE SUBSTITUTED FOR BALL AND BURLAP TREES.9.SEED/SOD ALL DISTURBED EXISTING LAWN AREAS AS SPECIFIED.10.BACKFILL TO BE LOOSENED NATIVE SOIL UNLESS AMENDMENT ISNECESSARY AS DICTATED BY SOIL TEST.11.LANDSCAPE CONTRACTOR SHALL WATER PLANTINGS UNTIL IRRIGATIONSYSTEM IS FULLY FUNCTIONAL AND PROVIDE A 1-YEAR WARRANTYPERIOD AFTER INSTALLATION AND GUARANTEE ALL PLANTINGS TO BEALIVE AND IN SATISFACTORY HEALTH.12.TREES AND SHRUBS TO BE PROTECTED WITH A MINIMUM OF A SIX FEET(6') HIGH, WELDED-WIRE FENCE FOR A MINIMUM 2-YEAR ESTABLISHMENTPERIOD.1.ALL CONSTRUCTION SHALL BE PERFORMED IN ACCORDANCE WITHCURRENT CITY OF BOZEMAN STANDARDS AND THE STATE OF MONTANABUILDING AND SPECIALTY CODES.2.LANDSCAPE CONTRACTOR RESPONSIBLE FOR SCHEDULING APUNCH-LIST INSPECTION AND POST INSTALL INSPECTION WITHLANDSCAPE ARCHITECT.3.INSTALL EROSION CONTROL SYSTEMS IN ACCORDANCE WITH CITY OFBOZEMAN STANDARDS PRIOR TO SITE WORK AND LANDSCAPEINSTALLATION.4.A MINIMUM OF A THIRTY-FIVE (35') SETBACK FROM ALL WETLAND ANDRIPARIAN AREAS IS REQUIRED. NO STRUCTURES, FILL ORDISTURBANCES, MAY OCCUR IN THIS SETBACK. STORMWATER BESTMANAGEMENT PRACTICES (BMP'S) SHALL BE UTILIZED TO ADEQUATELYTREAT RUNOFF IN THIS AREA PER LOCAL, STATE AND FEDERALREGULATIONS.5.ANY MODIFICATIONS TO EXISTING, PRE-DEVELOPMENT DRAINAGEPATTERNS ARE TO BE DESIGNED BY A LICENSED ENGINEER ANDREVIEWED AND APPROVED BY THE ARC.6.MARK AND PROTECT ALL UTILITIES, SITE FEATURES, AND VEGETATIONTO BE RETAINED.7.CONTRACTOR TO COORDINATE WITH OWNER'S REPRESENTATIVE ANDUTILITY COMPANIES, LOCATION OF ALL UTILITIES PRIOR TO COMMENCINGWORK. CONTRACTOR IS RESPONSIBLE TO REPAIR DAMAGES TOEXISTING UTILITIES, HARDSCAPES AND STRUCTURES AS A RESULT OFTHE CONTRACTORS ACTIVITIES.8.MULCH AS SPECIFIED. MULCH ALL GARDEN BEDS AND TREE RINGS.TREE RINGS IN LAWN TO HAVE ORGANIC COMPOST MULCH, UNLESSOTHERWISE INDICATED ON PLAN.EXTENTOF WORKEXISTINGNATURAL FINESTRAILEXTENTOF WORKPROPERTY LINE 709.72'ADJACENT AGRICULTURE LANDRETAINEXISTINGGRASSPROPERTY LINE 219.64'ADJACENT PARKLAND RETAINEXISTINGGRASSRETAINEXISTINGGRASSREPLACE DEAD TREES, TYP.12'VERIFY DRIPIRRIGATION ISPRESENT, TYP.ALLEYVERIFY FENCE & SPRINKLERSDO NOT CONFLICT, TYP.10 '10'PROPOSED FENCE, DONOT ENCLOSEEXISTING TEST WELLSBACK OF CURB,EXISTINGSHEET No:JOB No:DATE:REVISIONS:PREPARED FOR:inContourSUSTAINABLE LANDSCAPEARCHITECTURE& MASTER PLANNINGPO Box 1673292 W. Haley Springs Rd, Ste 3Bozeman, MT 59771(406)624-9111hello@inContour.com ZZZ.inContour.com7/26/2023187 Bridger Vale Drive, Bozeman MT 59715 Bridger Vale23240.1Williams Homes387 Gallatin Park Drive, Suite 102Bozeman, MT 59715wleep@williamshomes.comL1.1PLANTING PLAN, SCHEDULE & NOTESN0153060'SCALE 1" = 30'-0" @ 24" X 36"NOTE:1.NO ALTERATIONS TO EXISTING IRRIGATION SPRINKLER HEADSANTICIPATED. IF A CONFLICT WITH EXISTING SPRINKLER HEADS ARISES,CONTACT LANDSCAPE ARCHITECT FOR REVIEW OF CONTRACTORSUGGESTED ADJUSTMENTS. ANY NECESSARY IRRIGATIONADJUSTMENTS TO BE MADE BY CONTRACTOR.S TA T E OFMONTANALANDSCAPEARCH ITECTLICENSE D LESSA R.RACOW27449 SHEET No:JOB No:DATE:REVISIONS:PREPARED FOR:inContourSUSTAINABLE LANDSCAPEARCHITECTURE& MASTER PLANNINGPO Box 1673292 W. Haley Springs Rd, Ste 3Bozeman, MT 59771(406)624-9111hello@inContour.com ZZZ.inContour.com7/26/2023187 Bridger Vale Drive, Bozeman MT 59715 Bridger Vale23240.1Williams Homes387 Gallatin Park Drive, Suite 102Bozeman, MT 59715wleep@williamshomes.comL1.2PLANTING DETAILS PRUNE TREE AS SPECIFIED TO RETAINNATURAL FORM AND TO REMOVE DEAD ORDAMAGED LIMBS OR BRANCHES.ROUND WOOD TREE STAKES AND FLATGROMMET TREE STRAPS AS SHOWN.STAKES SHALL NOT PENETRATE ROOTBALL. STAKES SHALL BE REMOVED AFTERTWO YEARSNOTES:1.TREE STAKING IS MANDATORY.2.ALL TREES TO BE PLANTED SHALL HAVE THE SAME RELATIONSHIP TO FINISH GRADE ASORIGINALLY GROWN IN THE NURSERY.3.PROVIDE A 18" MULCH RADIUS AROUND TREES IN TURF AREA. NO EDGING.4.TRUNK GUARD WRAP, INSTALL SEASONALLY SEPT - APRIL FOR DEER RUT PROTECTION.ORGANIC MULCH AS SPECIFIEDFINISHEDGRADEEXCAVATE SLOPING SHALLOW PITTWICE THE DIAMETER OF THE ROOTBALL. DEPTH OF PIT TO BE NOGREATER THAN THE HEIGHT OF THEROOT BALL. ALL WALLS TO BEFRACTURED AND UNGLAZEDPULL MULCH 3" AWAY FROM TRUNK18"REMOVE BURLAP, WIRE BASKET, TAGS,LABELS, AND STRINGSBACKFILL AS SHOWN. PLANTING SOILMIX AS SPECIFIEDTRUNK GUARD WRAP ON ALL BROADLEAFTREESTREE IN NATIVE GRASSDETAILNTS11-3/4" SQUARE GALVANIZED STEELSIGN POST. MEETS ASTM A1011GRADE 50; GALVANIZING ASTMA-653FOOTING FOR PET WASTE STATIONDETAILNTS6'-0"SQUARE SIGN POST BREAKAWAYADAPTER WITHSTANDING 120MPHWINDS. CORNER BOLTS INSTALLED ONSAME SIDE OF POSTCONCRETE FOOTING AND NO. 4 REBARBY OTHERS PER LOCAL SOILCONDITIONS AND LOCAL CODE.CONSULT PROJECT ENGINEER FOREXACT REQUIREMENTS.FROST DEPTH OR 36" MIN.FINISHED GRADESIGN OR PET WASTE STATION ASSPECIFIED.8" TYP.4" DEPTH No. 57 STONECOMPACTED TO 95% STANDARDPROCTOR.4" DEPTH PREPARED SUBGRADECOMPACTED TO 95% STANDARDPROCTOR.21'4"12" RAD. TOOLED OUTER EDGE,TYP.FINISHED GRADE4"CONCRETE PAVEMENTBROOM FINISH, TYP.1” MINUS CRUSHED GRAVEL,COMPACTEDCOMPACTED SUBGRADE1% SLOPEANCHOR PER MANF'SPECIFCATIONSTRASH RECEPTACLE ASSPECIFIEDTRASH RECEPTACLE FOOTING - SURFACE MOUNTDETAILNTS4'-0"4'-0"1'-0"TYP.3S TA T E OFMONTANALANDSCAPEARCH ITECTLICENSE D LESSA R.RACOW274CHAIN-LINK FENCEDETAILNTSFINISHED GRADE6'-0"48.02' 1.48'BALL CAPTERMINAL OR CORNER POST,2-3/8" OUTSIDE DIA. SCHEDULE40 GALVANIZED WITH BLACKPVC COATING1-5/8" OUTSIDE DIA. TOP RAILKNUCKLED SELVAGE AT TOP &BOTTOM, TYP.TENSION BAR, TYP.TENSION BAR BANDS/CLIPS AT12" O.C.CONCRETE FOOTINGSLOPE TO DRAINTENSION WIRE WITH6-GAUGE GALVANIZED HOGRINGS AT 18" O.C.1" MESH CHAIN-LINK FABRIC8-GAUGE CORE WITH BLACKPVC COATING1-7/8" OUTSIDE DIA. LINE POSTS, TYP.6-GAUGE ALUMINUM WIRE TIESAT 12" O.C., TYP.6" DEPTH #57 CRUSHED STONEBASE. COMPACTED TO 95%STANDARD PROCTOR4" PREPARED SUBGRADE.COMPACTED TO 95%STANDARD PROCTORFROST DEPTH 450 Memorandum REPORT TO:City Commission FROM:LexisNexis Risk Solutions SUBJECT:Authorize the Police Information Manager to Sign an Professional Services Agreement with LexisNexis Risk Solutions for the use of Accurint for Law Enforcement Plus Services. MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:For Approval STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:Amending services to allow for additional users to utilize this tool. Billing changed from set fee for one user to a flat rate commitment with an expense cap. UNRESOLVED ISSUES:No unresolved issues ALTERNATIVES:Alternative would be to stay with one user on our current agreement and not be able to utilize this tool to it's full potential. FISCAL EFFECTS:Fiscal effects should be minimal and this agreement allows for a six month review. If we exceed the cap amount, we can adjust the agreement as necessary. Attachments: Schedule A 1493135 City of Bozeman Bozeman Police Department.pdf Report compiled on: June 8, 2023 51 June 8, 2023 Page 1 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. LexisNexis Risk Solutions SCHEDULE A Accurint for Law Enforcement Plus (Subscription) Customer Name:City of Bozeman, Bozeman Police Department Billgroup #: LN Account Manager:Courtney Foudree This Schedule A sets forth additional or amended terms and conditions for the use of the Accurint for Law Enforcement Plus services (“LN Services”), as set forth in the services agreement for the LN Services between Customer and the LexisNexis Risk Solutions entity as further defined therein (“Agreement”), to which this Schedule A is incorporated by reference. For purposes of the Agreement and this Schedule A, all applicable LexisNexis Risk Solutions entities shall be individually and collectively referred to as “LN”. Customer acknowledges that the services provided under this Schedule A are non-FCRA services. 1.SCHEDULE A TERM The term of this Schedule A will be 12 months beginning June 1, 2023 (the "Initial Term"). Following the Initial Term, this Schedule A shall automatically renew for additional periods of twelve (12) months (each one, a "Renewal Term"), unless written notice of termination is provided to either party at least sixty (60) days prior to the expiration of the Initial Term or any Renewal Term. If an account is activated after the first day of a calendar month, charges will not be pro-rated. 2.FEES 2.1 Minimum Payment: Customer shall pay to LN each month a flat rate commitment in the amount of $200.00 (the “Flat Rate Commitment”). The Flat Rate Commitment shall include any fees to be paid by Customer for its access and use of any of the LN Services listed herein. 2.2 User ID’s: During the Initial Term or any Renewal Term, Customer shall be granted an unlimited number of Accurint for Law Enforcement Plus User IDs. 2.3 Transactional Fees: The attached Price Schedule lists the currently available searches and reports (“Features”), as well as their respective prices (“Transactional Fees”). If during any given month Customer’s combined actual use of the LN services listed herein (“Actual Use”) exceeds $400.00 (the “Cap”), Customer will be charged the Transactional Fees in effect at that time for all searches and reports in excess of the Cap. 2.4 Features Not Included: The following Features (“Excluded Features”) are not included in the Flat Rate Commitment and shall in all cases be charged separately according to the pricing specified in the attached Price Schedule: Bankruptcy Docket Sheet Bankruptcy Documents Canadian Phones Court Search Wizard Dun & Bradstreet Search and Report DE Corporation Search and Report Email Search Premium FCRA Credit Reports National Motor Vehicle Accident Search and Report News Searches Online Batch Property Deed Image Real Time Person Search Workplace Locator XML 52 June 8, 2023 Page 2 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. LN standard pricing will be in effect for any new features made generally available by LN subsequent to the execution of this Schedule A. Some Excluded Features listed herein may not appear available to Customer via the LN Services. 2.5 Fee Increases: At the end of each 12-month period ("Year"), the Flat Rate Commitment and Cap will be increased 0.00%. 3.EXPIRATION Unless otherwise accepted by LN, the terms herein are valid if the Schedule A is signed by the Customer and received by LN on or before June 22, 2023. 4.CLOUD SERVICES LN is executing a multi-year plan to move certain LexisNexis Risk Solutions products and services to Microsoft Azure Cloud services. Should you have questions regarding this plan, please document and send them via email to cloudquestions@lexisnexisrisk.com. 5.CONFIDENTIAL INFORMATION This Schedule A contains the confidential pricing information of LN. Customer acknowledges that the disclosure of such pricing information could cause competitive harm to LN, and as such, Customer agrees to maintain this Schedule A in trust and confidence and take reasonable precautions against disclosure to any third party to the extent permitted by local and state law. AGREED TO AND ACCEPTED BY: City of Bozeman, Bozeman Police Department Signed: $#4745361-Signed#$ Name: $#4745361-CustName1#$ Title: $#4745361-Title1#$ Date:$#4745361-Date1#$ 53 June 8, 2023 Page 3 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Accurint for Law Enforcement Plus (Updated May 18, 2023) (Plan 58) (Pricing is per hit unless otherwise indicated. All features priced $0.35 or less are not discountable, in addition to any feature indicated as not discountable) Price Schedule (Subscription Use Cap) ACCURINT FOR LAW ENFORCEMENT PLUS FEATURES PRICE Accurint Mapping (Charged per layer)$0.00 Advanced Motor Vehicle Search (charged per search)$1.00 Advanced Person Search $0.75 Advanced Sexual Offender Search $2.00 Automated Valuation Model (AVM) Report $5.00 Bankruptcies, Liens & Judgments Search (charged per search)$0.50 Bankruptcy Search (charged per search)$0.25 Bankruptcy Report $1.00 Boolean Search $2.00 Business Search (charged per search) (not discountable)$0.35 Businesses In The News (not discountable)$5.00 Civil Courts Search (Report Included) (charged per search)$2.00 CLIA Report $0.25 Corporation Filings (Report Included Except In Delaware)$1.00 Criminal Records (charged per search)$1.00 Criminal Records Report $1.00 DEA Controlled Substances License Search $0.25 Death Records (charged per search)$0.25 Death Records Report (charged per search)$1.00 Driver Licenses $0.75 Dun & Bradstreet Search (not discountable)$0.25 Dun & Bradstreet Report (not discountable)$3.75 Email Search Premium (not discountable)$0.40 FAA Aircraft (Report Included)$0.25 FAA Certifications (Report Included)$0.25 Federal Criminal Court Records Search (charged per search)$3.00 Federal Firearms & Explosives $0.25 Federal Employer ID Numbers (FEIN)$0.50 Fictitious Business Name $0.50 Foreclosures Search (Report Included)$1.00 Hunting/Fishing Licenses $0.25 InstantID Q&A (charged per search)$1.30 Liens & Judgments (charged per search)$1.00 Lineup $0.00 Marriages / Divorces Search $1.00 Motor Vehicles Search $0.75 Motor Vehicles Report $1.00 National Motor Vehicle Accident Search & Report (not discountable)$3.00 54 June 8, 2023 Page 4 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. National UCC Filings (Report Included)$1.00 NCPDP (National Council for Prescription Drug Programs) Search (charged per search)$0.50 NCPDP (National Council for Prescription Drug Programs) Report (charged per search)$1.50 NPI Data Search $0.20 NPI Report $0.50 Passport Validation (charged per search)$1.00 People At Work Search $1.00 People In The News (not discountable)$5.00 Person Alerts Monitoring (Monthly Monitoring Transactions Per Acct.) (Alerts Charged At Regular Price)-- -1 - 50 $3.00 -51 - 250 $15.00 -251 - 500 $30.00 -501 - 1,000 $60.00 -1,001 - 5,000 $300.00 -5,001 - 25,000 $1,500.00 -25,001 - 100,000 $6,000.00 Person Search $0.35 Phones Plus $0.50 Professional Licenses (Report Included) (charged per search)$1.00 Property Deed Search $1.00 Property Assessment Search $1.00 Property Assessment Report $1.00 Property Deed Report (excluding Deed Image)$1.00 Provider Search $0.25 Provider Report $5.00 Provider Report Card (charged per search)$5.00 Provider Sanction Search (charged per search)$0.25 Provider Sanction Report $5.00 Real Time Phone Search $0.50 Relavint Plus Link Analysis (per diagram) (not discountable)$2.00 Reverse Lookup $0.10 Sexual Offenders (Report Included)$0.00 USA Patriot Act $0.00 Virtual Identity Search & Report $2.00 Watercraft $0.50 Watercraft Report $1.00 Wildcard Search $1.00 WorkPlace Locator (not discountable)$3.50 Reports Asset Report: Property Deeds & Assessments, Vehicle Registrations, Watercraft, FAA Pilots, FAA Aircraft, and UCC Filings.$3.50 Business Link Report $5.00 Comprehensive Report (Best Value): Summary Report, Associates, Bankruptcy, Concealed Weapons Permits, Criminal Records, DEA Controlled Substances License Search, Driver’s Licenses, Email Search Premium, FAA Aircraft, FAA Pilots, Federal Firearms & Explosives License Search, Hunting/Fishing Permits, Liens/Judgments, $6.00 55 June 8, 2023 Page 5 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. National Motor Vehicle Accident Search & Report, Neighbors, People at Work, Phones Plus, Possible Education, Professional Licenses, Property, Relatives (3 Degrees), Sexual Offenders, UCC Filings, Vehicle Registrations, Voter Registration and Watercraft. Additional Report Options:-- -Real Time Phone Search (not discountable)$0.50 Contact Card Report: Summary Report: Names Associated with Subject, Contact List: At Home, At Work, Through Family, Through Associates, Through Neighbors, Possible Relocation, Email Search Premium, Address Summary and Phones Plus (optional). $3.50 Finder Report: Address Summary, Others Using SSN, Date/Location Where SSN Issued, Phone Summary, Current Listed Phones, Unverified Phones With Type And Date Indicators, Current Neighbor Phones, Possible Relative Phones (2 Degrees), Possible Associate Phones, Phones At Historical Addresses, Email Search Premium, Bankruptcy Filings And Corporate Affiliations. $3.50 Law Enforcement Location Report (charged per search)$1.00 Relatives, Neighbors, & Associates Report $2.00 Comprehensive Address Report: (Base Report Features: Current And Previous Residents And Phones At Address)$0.50 Additional Report Options:-- -Bankruptcy (charged per search)$1.00 -Businesses At Address $0.25 -Concealed Weapons Permit Search $0.25 -Criminal Records Search (charged per search)$1.00 -Criminal Records Report $1.00 -Driver Licenses At Address $0.75 -Hunting/Fishing License Search $0.25 -Liens And Judgments (charged per search)$0.25 -Motor Vehicles Registered At Address $0.75 -Neighborhood Profile (2010 Census)$0.50 -Neighbors At Address $0.25 -Property Ownership Current / Previous $1.00 -Sexual Offenders Search (Report Included) (charged per search)$1.00 Comprehensive Business Report (Base Report Features: Name and TIN Variations, Parent Company, and Industry Information)$0.50 Additional Report Options:-- -Associated Businesses $1.00 -Associated People $1.00 -Bankruptcy (charged per search)$1.00 -Business Registrations $0.25 -Corporation Filings $1.00 -Dun & Bradstreet Records (not discountable)$3.75 -Liens and Judgments (charged per search)$0.25 -Motor Vehicles $0.75 -Properties $1.00 -UCC Filings $0.50 Custom Comprehensive Report (Base Report Features: Others Using Same SSN, Date and Location where SSN Issued, Company Header, Address Summary, Possible Education, Comprehensive Report Summary) $0.50 56 June 8, 2023 Page 6 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Additional Report Options:-- -Associates $1.00 -Bankruptcy (charged per search)$1.00 -Criminal Records (charged per search)$1.00 -DEA Controlled Substances License Search $0.25 -Driver Licenses Information $0.75 -Email Search Premium (not discountable)$0.40 -Federal Firearms & Explosives License Search $0.25 -Liens And Judgments (charged per search)$0.25 -Motor Vehicle(s) Registration (Watercraft & Boat Trailers Included)$0.75 -National Motor Vehicle Accident Search & Report $3.00 -Neighborhood Profile (2010 Census)$0.50 -Neighbors (Up To 6 Neighbors At 10 Different Addresses)$0.25 -People At Work $1.00 -Phones Plus $0.50 -Professional Licenses (Report Included) (charged per search)$1.00 -Properties $1.00 -Real Time Phone Search (not discountable)$0.50 -Real Time Vehicle Registrations (charged per search) (not discountable)$3.50 -Relatives (Up to 3 Degrees of Separation)$1.00 -Sexual Offenders (charged per search)$1.00 -Supplemental Data Sources (charged per search)$1.00 -UCC Filings $1.00 Flat Rate Comprehensive Healthcare Business Report (includes Base Report Features and Additional Report Options listed below)$10.00 Comprehensive Healthcare Business Report (Base Report Features: Name, Address and Phone Variations; Parent Company, ID Numbers and Industry Information)$0.50 Additional Report Options:-- -Associated Businesses $1.00 -Associated People $1.00 -Bankruptcy (charged per search)$1.00 -Business Phone Matches $0.25 -Business Registrations $0.25 -Corporation Filings $1.00 -Dun & Bradstreet Records (not discountable)$3.75 -FAA Aircraft $0.25 -IRS 5500 $0.50 -Liens And Judgments (charged per search)$0.25 -Motor Vehicles $0.75 -Properties $1.00 -Sanctions $0.50 -UCC Filings $0.50 -Verification $0.75 -Watercraft $1.00 Flat Rate Comprehensive Healthcare Provider Report (includes Base Report Features and Additional Report Options listed below)$6.00 57 June 8, 2023 Page 7 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Comprehensive Healthcare Provider Report (Base Report Features: Gender, Date of Birth, Social Security Number, Tax ID(s) UPIN and NPI number)$0.50 Additional Report Options:-- -Additional Deceased Data Sources $0.00 -Associates $0.00 -Bankruptcy (charged per search) (not discountable)$0.25 -Business Address Summary $0.25 -Business Affiliations $0.50 -Business Phone Matches $0.25 -DEA Licenses $0.25 -Degrees $0.00 -Education $0.50 -Group Affiliations $0.50 -GSA Sanctions (charged per search)$0.50 -Hospital Affiliations $0.50 -Liens And Judgments (charged per search)$0.25 -Medical Licenses (charged per search)$1.00 -Possible Criminal Records (charged per search)$0.25 -Professional Licenses (charged per search)$1.00 -Sanctions (Disciplinary) (charged per search)$0.50 -Sexual Offenses (charged per search)$1.00 -Specialties $0.00 -Verification $0.75 Online Batch Advanced Person Search $0.50 Batch Person Search $0.50 Batch Telephone $0.10 Deceased Person $0.25 Real Time Phone Search $0.50 58 June 8, 2023 Page 8 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Accurint for Law Enforcement (Updated May 18, 2023) (Plan 58) (Pricing is per hit unless otherwise indicated. All features priced $0.35 or less are not discountable, in addition to any feature indicated as not discountable) Price Schedule (Subscription Use Cap) ACCURINT FOR LAW ENFORCEMENT FEATURES PRICE Advanced Motor Vehicle Search (charged per search)$1.00 Advanced Person Search $0.75 Automated Valuation Model (AVM) Report $5.00 Associates ("Next Steps")$1.00 Bankruptcies, Liens & Judgments Search (charged per search)$0.50 Bankruptcy Search (charged per search)$0.25 Bankruptcy Report $1.00 Bankruptcy Docket Sheet ($0.50 For First 5 Pages & $0.20 Per Page Thereafter) (not discountable)$0.50 Bankruptcy Documents (Per Page, Up To Max Charge Of $6 Per Document) (not discountable)$0.20 Boolean Search $2.00 Business Credit (charged per search) (not discountable)$0.25 Business Credit Report $20.00 Business Search (charged per search) (not discountable)$0.35 Businesses In The News (not discountable)$5.00 Canadian Phones $0.40 Civil Courts Search (Report Included) (charged per search)$2.00 CLIA Report $0.25 Concealed Weapons Permit $0.25 Corporation Filings (Report Included Except In Delaware)$1.00 Court Search Wizard (Additional Fees May Apply; Orders Are Non-Refundable)-- -County Civil Lower & Upper Court - 7 Year (not discountable)$35.00 -County Civil Lower & Upper Court - 10 Year (not discountable)$40.00 -County Criminal - 7 Year (not discountable)$25.00 -County Criminal - 10 Year (not discountable)$30.00 -Federal Division Civil - 7 Year (not discountable)$16.00 -Federal Division Civil - 10 Year (not discountable)$25.00 -Federal Division Criminal - 7 Year (not discountable)$16.00 -Federal Division Criminal - 10 Year (not discountable)$25.00 -Statewide Criminal (not discountable)$24.00 Criminal Records (charged per search)$1.00 Criminal Records Report $1.00 DEA Controlled Substances License Search $0.25 Death Records (charged per search)$0.25 Death Records Report (charged per search)$1.00 Delaware Corporations (not discountable)$1.00 Delaware Corporations Report (not discountable)$11.00 59 June 8, 2023 Page 9 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Disclosed Entity Service (charged per search) (not discountable)$5.00 Driver Licenses $0.75 Dun & Bradstreet Search (not discountable)$0.25 Dun & Bradstreet Report (not discountable)$3.75 Email Search Premium (not discountable)$0.40 FAA Aircraft (Report Included)$0.25 FAA Pilots (Report Included)$0.25 Federal Civil Court Records Search (charged per search)$2.00 Federal Criminal Court Records Search (charged per search)$3.00 Federal Firearms & Explosives $0.25 Federal Employer ID Numbers (FEIN)$0.50 Fictitious Business Name $0.50 Foreclosures Search (Report Included)$1.00 Hunting/Fishing Licenses $0.25 InstantID Q&A (charged per search)$1.30 Law Enforcement Location Report (charged per search)$1.00 Liens & Judgments (charged per search)$0.25 Liens & Judgments Report $1.00 Marriages / Divorces Search $1.00 Motor Vehicles Search $0.75 Motor Vehicles Report $1.00 MVR Wildcard Search $1.00 National Motor Vehicle Accident Search & Report (not discountable)$3.00 National UCC Filings (Report Included)$1.00 NCPDP (National Council for Prescription Drug Programs) Search (charged per search)$0.50 NCPDP (National Council for Prescription Drug Programs) Report (charged per search)$1.50 Neighbors ("Next Steps") (not discountable)$0.25 NPI Data Search (not discountable)$0.25 NPI Report $0.50 Passport Validation (charged per search)$1.00 People At Work Search $1.00 People In The News (not discountable)$5.00 Person Alerts Monitoring (Monthly Monitoring Transactions Per Acct.) (Alerts Charged At Regular Price)-- -1 - 50 $3.00 -51 - 250 $15.00 -251 - 500 $30.00 -501 - 1,000 $60.00 -1,001 - 5,000 $300.00 -5,001 - 25,000 $1,500.00 -25,001 - 100,000 $6,000.00 Professional Licenses (Report Included) (charged per search)$1.00 Property Deed Search $1.00 Property Assessment Search $1.00 Property Assessment Report $1.00 60 June 8, 2023 Page 10 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Property Deed Report (excluding Deed Image)$1.00 Property Deed Image (additional charge when ordered from within Property Reports) (not discountable)$8.00 Property Search (Property Assessments, Deeds & Mortgages)$2.00 Property Report (Property Assessments, Deeds & Mortgages, excluding Deed Image)$2.00 Provider Search $0.25 Provider Report $5.00 Provider Report Card (charged per search)$5.00 Provider Sanction Search (charged per search)$0.25 Provider Sanction Report $5.00 Real Time Person Search (charged per search)$3.50 Real Time Phone Search $0.50 Relatives ("Next Steps")$1.00 Relatives, Neighbors & Associates ("Next Steps")$2.00 Relavint Visual Link Analysis (Per Diagram) (not discountable)$2.00 Satellite Image Search $0.00 Sexual Offenders (Report Included) (charged per search)$1.00 USA Patriot Act (charged per search) (not discountable)$0.25 Virtual Identity Search & Report $2.00 Voter Registrations $0.25 Watercraft $0.50 Watercraft Report $1.00 WorkPlace Locator (not discountable)$3.50 Reports Asset Report: Property Deeds & Assessments, Vehicle Registrations, Watercraft, FAA Pilots, FAA Aircraft, and UCC Filings.$3.50 Business Link Report (charged per search)$5.00 Comprehensive Report (Best Value): Summary Report, Associates, Bankruptcy, Concealed Weapons Permits, Criminal Records, DEA Controlled Substances License Search, Driver’s Licenses, Email Search Premium, FAA Aircraft, FAA Pilots, Federal Firearms & Explosives License Search, Hunting/Fishing Permits, Liens/Judgments, National Motor Vehicle Accident Search & Report, Neighbors, People at Work, Phones Plus, Possible Education, Professional Licenses, Property, Relatives (3 Degrees), Sexual Offenders, UCC Filings, Vehicle Registrations, Voter Registration and Watercraft. $6.00 Additional Report Options:-- -Real Time Phone Search (not discountable)$0.50 Contact Card Report: Summary Report: Names Associated with Subject, Contact List: At Home, At Work, Through Family, Through Associates, Through Neighbors, Possible Relocation, Email Search Premium, Address Summary and Phones Plus (optional). $3.50 Finder Report: Address Summary, Others Using SSN, Date/Location Where SSN Issued, Phone Summary, Current Listed Phones, Unverified Phones With Type And Date Indicators, Current Neighbor Phones, Possible Relative Phones (2 Degrees), Possible Associate Phones, Phones At Historical Addresses, Email Search Premium, Bankruptcy Filings And Corporate Affiliations. $3.50 Summary Report: Address Summary, Others Using SSN, Date/Location Where SSN Issued, Census Data, Bankruptcy Indicator, Property Indicator And Corporate Affiliations Indicator. $0.50 61 June 8, 2023 Page 11 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. Comprehensive Address Report: (Base Report Features: Current And Previous Residents And Phones At Address)$0.50 Additional Report Options:-- -Bankruptcy (charged per search)$1.00 -Businesses At Address $0.25 -Concealed Weapons Permit Search $0.25 -Criminal Records Search (charged per search)$1.00 -Criminal Records Report $1.00 -Driver Licenses At Address $0.75 -Hunting/Fishing License Search $0.25 -Liens And Judgments (charged per search)$0.25 -Motor Vehicles Registered At Address $0.75 -Neighborhood Profile (2010 Census)$0.50 -Neighbors At Address $0.25 -Property Ownership Current / Previous $1.00 -Sexual Offenders Search (Report Included) (charged per search)$1.00 Comprehensive Business Report (Base Report Features: Name and TIN Variations, Parent Company, and Industry Information)$0.50 Additional Report Options:-- -Associated Businesses $1.00 -Associated People $1.00 -Bankruptcy (charged per search)$1.00 -Business Registrations $0.25 -Corporation Filings $1.00 -Dun & Bradstreet Records (not discountable)$3.75 -FAA Aircraft $0.25 -IRS 5500 $0.50 -Liens and Judgments (charged per search)$0.25 -Motor Vehicles $0.75 -Properties $1.00 -UCC Filings $0.50 -Watercraft $1.00 Custom Comprehensive Report (Base Report Features: Others Using Same SSN, Date and Location where SSN Issued, Company Header, Address Summary, Possible Education, Comprehensive Report Summary) $0.50 Additional Report Options:-- -Associates $1.00 -Bankruptcy (charged per search)$1.00 -Criminal Records (charged per search)$1.00 -DEA Controlled Substances License Search $0.25 -Driver Licenses Information $0.75 -Email Search Premium (not discountable)$0.40 -Federal Firearms & Explosives License Search $0.25 -Liens And Judgments (charged per search)$0.25 -Motor Vehicle(s) Registration (Watercraft & Boat Trailers Included)$0.75 -National Motor Vehicle Accident Search & Report $3.00 62 June 8, 2023 Page 12 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. -Neighborhood Profile (2010 Census)$0.50 -Neighbors (Up To 6 Neighbors At 10 Different Addresses)$0.25 -People At Work $1.00 -Phones Plus $0.50 -Professional Licenses (Report Included) (charged per search)$1.00 -Properties $1.00 -Real Time Phone Search (not discountable)$0.50 -Real Time Vehicle Registrations (charged per search) (not discountable)$3.50 -Relatives (Up to 3 Degrees of Separation)$1.00 -Sexual Offenders (charged per search)$1.00 -Supplemental Data Sources (charged per search)$1.00 -UCC Filings $1.00 Flat Rate Comprehensive Healthcare Business Report (includes Base Report Features and Additional Report Options listed below)$10.00 Comprehensive Healthcare Business Report (Base Report Features: Name, Address and Phone Variations; Parent Company, ID Numbers and Industry Information)$0.50 Additional Report Options:-- -Associated Businesses $1.00 -Associated People $1.00 -Bankruptcy (charged per search)$1.00 -Business Phone Matches $0.25 -Business Registrations $0.25 -Corporation Filings $1.00 -Dun & Bradstreet Records (not discountable)$3.75 -FAA Aircraft $0.25 -IRS 5500 $0.50 -Liens And Judgments (charged per search)$0.25 -Motor Vehicles $0.75 -Properties $1.00 -Sanctions $0.50 -UCC Filings $0.50 -Verification $0.75 -Watercraft $1.00 Flat Rate Comprehensive Healthcare Provider Report (includes Base Report Features and Additional Report Options listed below)$6.00 Comprehensive Healthcare Provider Report (Base Report Features: Gender, Date of Birth, Social Security Number, Tax ID(s) UPIN and NPI number)$0.50 Additional Report Options:-- -Additional Deceased Data Sources $0.00 -Associates $0.00 -Bankruptcy (charged per search) (not discountable)$0.25 -Business Address Summary $0.25 -Business Affiliations $0.50 -Business Phone Matches $0.25 -DEA Licenses $0.25 -Degrees $0.00 63 June 8, 2023 Page 13 of 13 Confidential 474536.1v2 Accurint for Law Enforcement Plus (Subscription) (Plan 58) Any unauthorized revisions to this Schedule A by Customer after receipt of the final version from LN shall be considered unenforceable, and may void this Schedule A at the option of LN. -Education $0.50 -Group Affiliations $0.50 -GSA Sanctions (charged per search)$0.50 -Hospital Affiliations $0.50 -Liens And Judgments (charged per search)$0.25 -Medical Licenses (charged per search)$1.00 -Possible Criminal Records (charged per search)$0.25 -Professional Licenses (charged per search)$1.00 -Sanctions (Disciplinary) (charged per search)$0.50 -Sexual Offenses (charged per search)$1.00 -Specialties $0.00 -Verification $0.75 Online Batch Advanced Person Search $0.50 Deceased Person $0.25 Address (Single)$0.13 Address (Multiple)$0.16 Reverse Phone Append (not discountable)$0.10 Waterfall Phones: Directory Assistance Match, Address And Name Variations, Co- Residents, Phones Plus & Relatives; Add-Ons Possible Relocation, Neighbors & People At Work (Single) $0.23 Waterfall Phones: Directory Assistance Match, Address And Name Variations, Co- Residents, Phones Plus & Relatives; Add-Ons Possible Relocation, Neighbors & People At Work (Multiple) $0.25 Waterfall Phone with Address (single)$0.25 Waterfall Phone with Address (multiple)$0.30 Address and/or Phone Confirmation (per input) (single)$0.03 Address and/or Phone Confirmation (per input) (multiple)$0.04 Phones Plus $0.50 Real Time Phone Search $0.50 Real Time Motor Vehicle Registrations $1.50 Property - Add Up To Five Properties Owned By The Subject $1.00 Consumer InstantID $0.65 Consumer InstantID With Fraud Defender $0.95 Consumer InstantID With Red Flags Rule $0.90 Multiple = 2 Or More Phones/Addresses Returned -- 64 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign Amendment 1 to the Professional Services Agreement with Jacobs Engineering for Federal Transportation Grant Writing Services MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign Amendment 1 to the Professional Services Agreement with Jacobs Engineering for Federal Transportation Grant Writing Services STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Jacobs Engineering was previously selected to provide Federal Transportation Grant Writing Services to the Department of Transportation and Engineering. The Professional Services Agreement is dated March 7, 2023. This amendment covers additional work required to support the development of an application to the Multimodal Project Discretionary Grant (MPDG) program. UNRESOLVED ISSUES:None. ALTERNATIVES:None identified or recommended. FISCAL EFFECTS:The cost of these additional services is $16,928.63. This work will be paid out of $50,000 allocated for Federal Grant Writing Assistance in the FY24 Engineering operating budget. Attachments: Amendment 1 to PSA with Jacobs Engineering for_Federal Transportation Grant Writing Services.docx Scope and Fee for Amendment 1 for Federal Transportation Grant Writing Services.pdf Report compiled on: July 28, 2023 65 First Amendment to Professional Services Agreement for Federal Transportation Grant Writing Services Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Federal Transportation Grant Writing Services dated March 7, 2023 (the “Agreement”) is made and entered into this 15 th day of August, 2023, by and between the CITY OF BOZEMAN, MONTANA,a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and Jacobs Engineering Group, Inc., hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Additional Scope and Fee. The Scope and Fee are amended as outlined in the attached Scope and Fee document. 2.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 66 First Amendment to Professional Services Agreement for Federal Transportation Grant Writing Services Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA JACOBS ENGINEERING GROUP INC. By________________________________By_____________________________ Jeff Mihelich, City Manager Print Name: Lucas Huck, PE Title: Manager of Projects APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 67 300 Old Tractor Lane Columbia Falls, MT 59912 United States T 406 899 5653 www.jacobs.com Document number. 1 July 27, 2023 Nick Ross, Director of Transportation and Engineering City of Bozeman 121 N Rouse Ave. Bozeman, Montana 59715 Re: Grant Support Amendment 1 – Scope and Fee Dear Nick, Jacobs Engineering is pleased to provide the Scope of Services and Level of Effort for Grant Support Amendment 1. This is based on the previous discussion with regards to Jacobs providing Grant Narrative writing, editing, and support. Let me know if you have questions with regards to our Scope of Services and Level of Effort for this effort. Sincerely, Ed Toavs, PE Luke Huck, PE Project Management Manager of Projects Jacobs Engineering Jacobs Engineering 68 300 Old Tractor Lane Columbia Falls, MT 59912 United States T 406 899 5653 City of Bozeman Grant Application Support Services – Amendment 1 Scope of Work Jacobs Engineering Group Inc. Date: July 21, 2023 Jacobs Scope Description The scope of services for this amendment supplements the original scope. Below are the activities used to develop the level of effort for this scope of services along with assumptions for this amendment. Activity 2.1 Project Coordination – The original scope is supplemented with the following: b. Participate in formal and informal coordination meetings with City of Bozeman and project stake holders. i. As needed, up to 4 – 1 hour meetings conducted virtually with up to 5 Jacobs staff members to attend. Activity 2.2 Grant Application Support Services – The original scope is supplemented with the following: a. Coordinate with City of Bozeman during grant writing and assembly. I. Write the grant application outline per the selected Grant NOFO guidance for review by City staff. II. Write the grant application narrative in conjunction with City Staff and based on project input. III. Provide editing and review of the grant application for submission. Activity 3.1 Benefit-Cost Analysis – No changes to this section. Activity 3.2 Benefit Cost Narrative – No changes to this section. Key Assumptions – No changes to this section. Project Schedule This section is replaced with the following: The schedule for this amendment work follows the 2023 MPDG Grant cycle which states the submission date is August 21st. Jacobs anticipates delivery of all deliverables to the City no later than COB on August 18, 2023. If the City elects to not submit an MPDG Grant Application for the 2023 cycle, a new schedule will be developed based on a future grant cycle chosen by the City. 69 DATE: July 21, 2023 Activity Tasks Total Hours Proj. Mgr.Grant Writer Traffic. Eng.Roadway Eng.Transportation Plan/Economist Task Total - Fee $207.40 $140.28 $140.63 $152.94 $134.81 2.1 PROJECT COORDINATION 101 A. Scoping Meeting 0 B. Formal and Informal Meetings 20 4 4 4 4 4 101 101 SUBTOTAL (HOURS)20 4 4 4 4 4 $3,104.26 2.2 GRANT APPLICATION SUPPORT SERVICES 102 A. Grant writing and assembly support 88 24 40 24 102 102 SUBTOTAL (HOURS)88 24 40 0 0 24 $13,824.37 3.1 BENEFIT-COST ANALYSIS 103 A. Input Data 0 B. Run Analysis 0 C. Quality Control 0 103 103 SUBTOTAL (HOURS)0 0 0 0 0 0 $0.00 3.2 BENEFIT-COST NARRATIVE A. BCA Narrative 0 B. BCA Spreadsheet 0 104 104 SUBTOTAL (HOURS)0 0 0 0 0 0 $0.00 SURVEY PH TOTAL HOURS 108 28 44 4 4 28 Total Fee $5,807.31 $6,172.23 $562.52 $611.76 $3,774.82 $16,928.63 PROJECT: City of Bozeman Grant Support - Amendment 1UPN: Estimate Prepared By: E Toavs Revised 3/1/18 Page 1 of 1 70 Memorandum REPORT TO:City Commission FROM:Addi Jadin, Park Planning and Development Manager Mitch Overton, Director of Parks and Recreation SUBJECT:Resolution 5527, Adopting the Bridger Vale Park Master Plan MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Resolution 5527, Adopting the Bridger Vale Park Master Plan STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND:The Bridger Vale Subdivision was adopted by the City Commission in 2020. The improved park was accepted by the Parks and Recreation Department in 2021. Since that time a new owner has begun developing housing in the area and proposed changing the use of the park from passive lawn area to dog park, with all associated improvements to be managed and funded by the developer, Williams Homes. This Resolution adopts the park master plan and its new use. UNRESOLVED ISSUES:NA ALTERNATIVES:Per Commission FISCAL EFFECTS:Management and maintenance costs associated with the park and new assets will be funded through the Parks and Trails District. Attachments: Resolution_5527_Bridger_Vale_Park_Master_Plan.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit_B-Bridger_Vale_Parks_Master_Plan.pdf Report compiled on: August 3, 2023 71 Page 1 of 2 RESOLUTION NO. 5527 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE BRIDGER VALE PARK MASTER PLAN WHEREAS,the Bozeman Municipal Code Section 26.02.220 states, “the Commission shall authorize any conceptual changes, new development, or redevelopment aspects of changes in all city parks proposed by the staff;” and WHEREAS,Section 1.8.2 of the Parks, Recreation, Open Space and Trails (PROST) Plan delineates a process for preparing and amending park master plans; and WHEREAS,the PROST Plan states, “the Parks Division will prepare a resolution formally adopting the new or amended park master plan and schedule the item for City Commission’s Consent Agenda;” and WHEREAS,the statistically valid survey for the Parks, Recreation, and Active Transportation (PRAT) plan identifies dog accommodations as a high demand priority; and WHEREAS,community engagement for the PRAT plan recommends adding park assets that were identified as in high demand by the community in new and existing spaces; and WHEREAS,the City Commission approved the Bridger Vale Park Master Plan with the Bridger Vale Subdivision PUD Preliminary Plat on March 25, 2019; and WHEREAS,Bridger Vale Park was dedicated to the City with the Bridger Vale Subdivision PUD as Park 1 of Block 5 (“Exhibit A”); and 72 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 Authority. The Bridger Vale Park Master Plan (“Exhibit B”) is hereby adopted, in accordance with Section 1.8.2 of the Parks, Recreation, Open Space and Trails (PROST) Plan and Section 26.02.220 of the Bozeman Municipal Code. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ________, 2023. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ________________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 73 ΔΔΔΔΔΔΔ74 BRIDGER VALE PUD PARK MASTER PLAN September 25, 2018 Revised January 22, 2021 Prepared for: PO Box 930 Manhattan, Montana 59741 Prepared by: In Conjunction With: 75 Bridger Vale PUD Parks Master Plan January 22, 2021 i CONTENTS Bridger Vale PUD .......................................................................................................................................... 1 Park Master Plan ........................................................................................................................................... 1 Project Location and History ......................................................................................................................... 1 Project Scope ................................................................................................................................................ 1 Park Dedication Requirements ..................................................................................................................... 2 Dedicated Parkland ....................................................................................................................................... 2 Parkland Amenities ....................................................................................................................................... 2 Vegetation ..................................................................................................................................................... 3 Irrigation ........................................................................................................................................................ 3 Soils ............................................................................................................................................................... 4 Trails .............................................................................................................................................................. 4 Maintenance .................................................................................................................................................. 4 Appendix A: Park Plan .................................................................................................................................. 7 Appendix B: Opinion of Probable Cost ......................................................................................................... 8 Appendix C: Revised Park Plan .................................................................................................................... 9 76 Bridger Vale PUD Parks Master Plan January 22, 2021 1 PROJECT LOCATION AND HISTORY Bridger Vale PUD is located off Manley Road, on a current access road that services the East Gallatin Recreation Area (EGRA) in Gallatin County, and adjacent to the City of Bozeman. Bridger Vale PUD proposes twenty (20) multi-family townhouse dwelling units and one (1) commercial lot. Legal description of the property is: S31, T01 S, R06 E, C.O.S. 157, REM TRACT SW4 6.472AC. The current use of the land is vacant RR – residential rural. Zoning is Gallatin County MI – light industrial. Annexation to the City of Bozeman has been approved for the property, however the land is not yet annexed. Proposed zoning in the City of Bozeman for the land will be REMU - Residential Emphasis Mixed-use District. Adjacent properties are zones City of Bozeman R-1, M-1, PLI, and Gallatin County AS. Ownership of lots include: HILLMAN MELVIN L & SANDRA L 860 MANLEY RD BOZEMAN, MT 59715- 8776 DOUBLE S PROPERTIES LLC 384 GALLATIN PARK DR STE 201 BOZEMAN, MT 59715- 7928 OLD MARSH HOLDINGS LLC PO BOX 1167 BOZEMAN, MT 59771-1167 BACKCHECK LLC MAIL TO DENNIS STEINHAUER BOZEMAN, MT 59771 DHEIN JUSTIN 291 TURTLE WAY BOZEMAN, MT 59715- 8767 BLACKBURN JAMES W III 279 TURTLE WAY BOZEMAN, MT 59715- 8767 PICKENS JARRED 257 TURTLE WAY BOZEMAN, MT 59715-876 VARNAI CHRISTINE 563 BEAR CROSSING RD GALLATIN GATEWAY, MT 59730-9641 WHEELER JACOB A 213 TURTLE WAY BOZEMAN, MT 59715- 8767 SUNFISH PARK COMMUNITY ASSOCIATION INC PO BOX 4480 BOZEMAN, MT 59772- 4480 There are wetlands and a few existing shrubs and trees on the site. Within the design of the Bridger Vale PUD, care has been taken to preserve as much of the existing wetlands and vegetation as possible. Historical use of the land includes agricultural uses. See the Phase 1 Environmental Site Assessment (ESA) for further detail. PROJECT SCOPE Bridger Vale PUD Park Master Plan is comprised of the following components; dedicated park, open space, and trail network. The residential units and the park are the first phase of the development; the commercial lot and open space will be developed as separate future phases. Upon approval, the open space is planned to immediately transfer ownership to the Bozeman Sunrise Rotary Club, who will further design and develop that parcel beyond what is indicated on the construction documents. 77 Bridger Vale PUD Parks Master Plan January 22, 2021 2 The purpose of this Park Master Plan is to describe the initial level of development and maintenance of the dedicated park and trails. This park design is consistent with the goals of the city’s long-range parks plan in that this park will provide opportunities and amenities for “an active community with parks, recreation facilities and programs, trails, and open spaces that are…outstanding in quality to meet the needs of all of our citizens” (PROST Plan, 2007). The proposed park will meet the recreation needs of the residents of the development through providing passive recreation, walking trails, and connection to the EGRA. In addition, the lawn areas provide potential for active recreational activities. PARK DEDICATION REQUIREMENTS Number of Residential Units: 20 Multi-family dwelling units proposed on 6.47 acre site. Parkland Required: 20 Dwelling Units/acre x 0.03 acres/unit = 0.60 acres of parkland/acre 0.60 acres parkland required Parkland Provided: 0.69 acres 0.69 acres provided - 0.60 acres required = 0.09 acres parkland excess DEDICATED PARKLAND The Bridger Vale PUD dedicated parkland constitutes 0.69 acres of land adjoining the existing EGRA parkland and trail system to the east. The emphasis of this plan is to provide passive recreation and active trail uses by connecting to the existing EGRA trail system. Sidewalks provided throughout the Bridger Vale PUD will also connect to the existing EGRA trail system to the south. The Bridger Vale PUD parkland will be maintained as areas of drought tolerant turf grass and aspen trees to complement the adjoining EGRA parkland. The grasses will be mowed 1-2 times per week or often as deemed necessary. A permanent automatic irrigation system will be provided to all plantings. PARKLAND AMENITIES The Bridger Vale PUD parkland will provide turf grasses, trees, and trails for passive and active recreation in the dedicated parkland. Trees will be provided to offer shade and interest along the trail system. The proposed trails will connect to the existing EGRA trail system. ACCESSIBILITY All parkland amenities and trails are ADA accessible. STREET FRONTAGE Due to the location of the parkland, existing adjacencies, and the desire to connect and expand the usage of the EGRA, it is not possible to provide 100% street frontage of the park perimeter. As much street frontage as possible has been provided. 78 Bridger Vale PUD Parks Master Plan January 22, 2021 3 PARKING REQUIREMENTS No on-street parking is allowed along the alleyway street frontage for the dedicated parkland. Off-street parking is provided in the adjacent EGRA parking lots. FUTURE AMENITIES Any future amenities not indicated in this Park Master Plan will be the responsibility of the Bridger Vale Property Owners Association (POA), City of Bozeman or other future entity established to construct, and build said improvements. FINANCING Appropriate financial planning and bonding will occur as requested by the City of Bozeman. An Opinion of Probable Cost has been provided with this Park Master Plan. CONSTRUCTION All construction shall be performed in accordance with current City of Bozeman standards and the State of Montana Building and Specialty Codes. Prior to site work or planting, a pre- construction meeting(s) with the City of Bozeman shall occur and proper permits shall be obtained. The City of Bozeman must approve all plans and improvements. Any deviation from the Park Master Plan shall be submitted to the City of Bozeman prior to construction. VEGETATION All plant material shall conform to the current American Standard for Nursery Stock, by the American Nursery and Landscape Association. All plants to be nursery grown. Construction documents to specify species, quantities, and selections. TREES Tree selection is based on the current City of Bozeman Tree List and species are subject to the approval of the City of Bozeman. Parkland tree species include single and multi-stem Populus tremuloides (Quaking Aspen). GRASSES Seed mixes are indicated on the construction documents. Turf areas include drought tolerant grass seed. All disturbed areas caused by construction activities shall be seeded as indicated on the construction documents. All lawn seed shall be fresh, clean new crop seed, of local origin. IRRIGATION An automatic irrigation system to sustain the landscape plantings shall be provided, meeting City of Bozeman requirements and state building codes. See irrigation plan. Lawn areas are to be irrigated with sprinkler heads and trees to be irrigated with root zone watering system. The parkland will be irrigated by connecting City of Bozeman water service lines. Upon competition of irrigation installation, as-built drawings shall be provided to the Bridger Vale POA and the City of Bozeman Parks Department. 79 Bridger Vale PUD Parks Master Plan January 22, 2021 4 SOILS See the Phase 1 ESA for soils report regarding soil type and testing. Prior to planting, on-site topsoil shall be tested for soil fertility by a certified testing lab. If necessary, topsoil for turf grasses and tree pits shall be amended as recommended by the soil fertility report and to meet the City of Bozeman minimum requirements. All rocks larger than 1 inch in diameter shall be removed. TRAILS All trails shall meet current ADA Guidelines. Trails shall be 72” in width and match grades when connecting to existing trails. Trail detail is indicated in the construction documents. Trails shall be kept clear of weeds for a minimum period of 2 years following construction completion. Developer is responsible for trail maintenance until 50% of units are sold, thereafter, the Bridger Vale POA shall become responsible. MAINTENANCE RESPONSIBLE PARTY The developer shall be responsible for maintenance of trails, parkland, and irrigation until 50% of the dwelling units are sold. Thereafter the Bridger Vale POA shall take over maintenance. The Bridger Vale POA shall be responsible for parkland insurance, taxes (if any), and maintenance of all parkland amenities. Funds to pay for these items may be collected by the Bridger Vale POA Board, and at its discretion, may adjust the assessments as needed to meet the needs of the POA and parkland. The association shall contract annually with a licensed landscape contractor, for the landscape maintenance of the parklands and irrigation system. The POA shall be responsible for park maintenance until such a time that a City of Bozeman Park Maintenance District is created. TREES The landscape contractor shall provide annual care, trimming, pruning, of trees and replacement of dead trees. All tree trimming shall be performed by a certified arborist and in coordination with the City of Bozeman Forestry Division. TRAILS The landscape contractor shall regularly inspect trails, providing surface maintenance as needed to prevent erosion or unsafe conditions. Weeds shall be controlled on the trail surface, meeting City of Bozeman standards. TURF CARE Grasses shall be mowed 1-2 times per week, or as deemed necessary. 80 Bridger Vale PUD Parks Master Plan January 22, 2021 5 NOXIOUS WEED CONTROL A weed control program shall be created that conforms to the City of Bozeman, Gallatin County Weed Control Board, and NRCS requirements. This will include spot spraying native grass areas and trails. Work shall be done by a licensed contractor, as needed to control weeds per the weed control program. Signs shall be posted prior to application of pesticides or herbicides on the parkland. Signs shall remain in place for the minimum of two days or time period deemed necessary by the chemical manufacturer, whichever is greater. Records shall be maintained in accordance with State of Montana Pesticide Act and copies submitted to the City of Bozeman Parks Department. FERTILIZATION The goal of the Bridger Vale PUD Park Master Plan is to minimize fertilization to prevent unnecessary run-off into streams and wetlands. It is not recommended that native grasses or aspen trees be fertilized. If the ongoing growth of such plants causes concern, a licensed landscape contractor or arborist shall be consulted, and a soil test conducted to deem if fertilizer is needed and/or appropriate, before any native grasses, wildflowers, or trees are fertilized. SNOW AND LEAF REMOVAL There are no sidewalks within the parkland. If in the future, sidewalks are provided, it will be the responsibility of the Bridger Vale POA to contract with a snow removal service to plow snow from sidewalks. Sidewalks must be plowed within 24 hours of the end of a snow fall event, per City of Bozeman. The Bridger Vale POA shall be responsible for contracting with a landscaper, handyman, or other service provider to remove leaf debris from trees in the parkland each autumn. IRRIGATION SYSTEM A licensed landscape contractor or irrigation service technician shall be contracted to maintain, service, and repair the irrigation system. The system shall be charged in spring, typically April, after the ground thaws and once plants emerge from dormancy. The system shall be winterized in the fall, typically late October, prior to the ground freezing. All necessary and standard irrigation practices for winterizing the system shall be performed. Following winterization of the irrigation system, any winter watering shall be done with a water tank or other manual method, to prevent damage to the system. Irrigation system elements should be checked periodically to maintain proper working condition, and replacement heads shall be replaced with the same brand/model to insure continued irrigation coverage. ANIMAL CONTROL All animals must be leashed when in the parklands. All park users must clean up their pet’s waste. 81 Bridger Vale PUD Parks Master Plan January 22, 2021 6 REFUSE There are no proposed refuse containers in the park. If the Bridger Vale POA provides refuse containers at a future date, the POA will be responsible for contracting with a waste collection contractor to have the refuse removed on a weekly basis. 82 APPENDIX A: PARK PLAN Refer to the Construction Documents for the park landscape plans. Refer to Appendix C for revised park landscape plans. 83 APPENDIX B: OPINION OF PROBABLE COST 84 APPENDIX C: REVISED PARK PLAN Refer to the Construction Documents for the revised park landscape plans dated December 11, 2020 85 Memorandum REPORT TO:City Commission FROM:Addi Jadin, Park Planning and Development Manager Mitch Overton, Director of Parks and Recreation SUBJECT:Resolution 5528, Designation of Additional Restraint-Free Dog Areas within the City of Bozeman MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5528, Designation of Additional Restraint-Free Dog Areas within the City of Bozeman STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND:Four new fenced dog parks area being created with new developments or amendments to existing parks. This resolution formally exempts those areas from animal restraint requirements in Sec. 8.02.080.A and B. Bozeman Municipal Code (BMC) upon their opening to the public. Including the 9 existing restraint-free areas designated in Section 8.02.080.G, the City will have 13 dog parks. They are: 1. Burke Park 2. Canine Beach at Bozeman Pond Park 3. Highland Park at Softball Complex 4. Snowfill 5. Anderson Dog Park at Gallatin County Regional Park (County owned and maintained Park) 6. Cooper Park 7. Centennial Park (limited hours) 8. West Paw Dog Park at Story Mill Community Park 9. Lewis and Bark Dog Park at Bozeman Pond Park 10. Bridger Vale Dog Park 11. South University District Park Dog Park 12. Best Friend Park at Blackwood Groves 13. Meadow Creek Park Dog Park Parks and Recreation will add dog parks 10-13 to BMC when they are finally constructed and will continue to add new dog parks by resolution up to twice per year as needed. Operational dog parks will be added to the Dogs in Parks webpage as they open: https://www.bozeman.net/departments/parks-and-recreation/parks/off- 86 leash-parks. UNRESOLVED ISSUES:NA ALTERNATIVES:Per Commission FISCAL EFFECTS:The new parkland and assets in new parks described are managed and maintained by the City of Bozeman Parks and Recreation Department with funding from the Parks and Trails District. Attachments: Resolution 5528 Creating New Restraint-Free Dog Areas within the City of Bozeman.docx Exhibit_A-Bridger_Vale_Final_Plat.pdf Exhibit_C-Blackwood_Groves_Ph2_Park_10.pdf Exhibit_B-SUD.pdf Exhibit_D-Meadow_Creek.pdf Report compiled on: August 3, 2023 87 Page 1 of 5 COMMISSION RESOLUTION NO. 5528 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, CREATING NEW RESTRAINT-FREE DOG AREAS WITHIN THE CITY OF BOZEMAN WHEREAS,the Bozeman Municipal Code Section 8. 02. 080. A. states " it is unlawful for the owner of any animal to fail or keep such animal under restrain or to permit such animal to run at large upon the streets and public ways of the city"; and WHEREAS,the Bozeman Municipal Code Section 8. 02. 080. B. states, " Any dog, while on a street, sidewalk, public way, or in a park or other public space, other than areas as designated pursuant to subsection G of this section, or upon any private property without the consent of the property owner, shall be secured by a leash or chain of sufficient tensile strength to restrain the particular dog, such leash or chain not to exceed six feet in length. However, while actually participating in instructional obedience training, dogs may be temporarily restrained by a leash of greater length"; and WHEREAS, the Bozeman Municipal Code Section 8.02.080.G establishes the following areas as restraint-free areas: 1. Burke Park 2. Canine Beach fenced and enclosed area at Bozeman Pond Park 3. Highland Park fenced and enclosed area at the southwest side of the Softball Complex. 88 Resolution, Creating New Restraint-free Dog Areas Page 2 of 5 4. Snowfill fenced area 5. Gallatin County Regional Park fenced area 6. Cooper Park 7. Centennial Park (from 5 AM MST to 9:00 AM MST) 8. West Paw Dog Park at Story Mill Community Park fenced area 9. Lewis and Bark Dog Park at Bozeman Pond Park area; and WHEREAS,the Bozeman Municipal Code Section 8.02.080.H. states, “The city commission may, by resolution, designate additional areas within the city which shall be exempt from subsections A and B of this section in addition to those listed in subsection G of this section;”and WHEREAS,the City Commission approved Resolution 5527, Adopting the Bridger Vale Park Master Plan on August 15, 2023, which includes a half-acre fenced dog park and Bridger Vale Park was dedicated to the City with the Bridger Vale Subdivision as Park 1 of Block 5 (Exhibit A); and WHEREAS, the South University District Park Master Plan Amendment was approved by the City with the South University District Block 2 Site Plan on March 3, 2023 and includes a 0.36-acre fenced dog park and the parkland was dedicated to the City with the South University District Subdivision Phase 3 as Park 4 of ; WHEREAS,the City Commission approved the Blackwood Groves Park Master Plan on June 8, 2021, which includes a half-acre fenced dog park named Best Friend Park and the parkland was dedicated to the City with the Blackwood Groves Subdivision Phase 2 as Park 10 of Block 13 (Exhibit C); and 89 Resolution, Creating New Restraint-free Dog Areas Page 3 of 5 WHEREAS,the Meadow Creek Park Master Plan Amendment was approved by the City with the Homestead at Buffalo Run Site Plan on November 3, 2022, and the expanded parkland including a 0.4-acre fenced dog park was conveyed to the City via park easement on October 5, 2022 (Exhibit D); and WHEREAS,the PRAT plan identifies dog accommodations as a high demand priority; and WHEREAS,strategy 1.1 of the PRAT plan recommends adding park assets that were identified as in high demand by the community in new and existing spaces; and NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that in addition to the areas identified in Sec. 8.02.080.G BMC, the following areas are also exempt from subsections A and B of Section 8.02.080 Bozeman Municipal Code to the extent that, when these new parks are fully open to the public, signed and advertised on the City’s Dogs in Parks webpage, in such areas animals may be permitted to run or otherwise remain unrestrained: 1. Bridger Vale Dog Park 2. South University District Dog Park 3. Blackwood Groves Dog Park 4. Meadow Creek Dog Park This exemption shall not apply to other prohibited areas listed in subsection F of this section or otherwise relieve an owner or custodian of any animal to prevent the same from becoming a nuisance, as defined in Section 8.02.010 Bozeman Municipal Code. 90 Resolution, Creating New Restraint-free Dog Areas Page 4 of 5 PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ________, 2023. ___________________________________ CYNDI ANDRUS Mayor ATTEST: ________________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 91 Resolution, Creating New Restraint-free Dog Areas Page 5 of 5 Exhibit A 92 ΔΔΔΔΔΔΔ93 94 4 1 AVENUE ABLACKWOOD ROAD B 24' 15' 62' 10'265' 67' 10' 15' 5' 6' 5' +22 +21 +20 +19 5020' +18 1 2 3 5 6 5 7 7 7 8 8 7 9 10 10 10 11 11 12 12 12 13 13 13 13 18 19 PARK AREA CALCS - PARK 10 TYPE SF ACRES PARKLAND 41328 SF 0.9488 ACRES WATERCOURSE 0 SF 0 ACRES DETENTION 1745 SF 0.0401 ACRES TOTAL QUALIFYING PARKLAND 39583 SF 0.9087 ACRES SYMBOL PRODUCT SITE AMENITY SCHEDULE 6' BENCH*** BIKE RACK*** PET WASTE STATION*** DOG PARKFENCING NATURAL STEEL EDGING PERPLAN TREE ROOT BARRIER AT WATER MAIN PER PLAN CONCRETE PLAYGROUND CURB PERPLAN SYMBOL PRODUCT SITE MATERIAL SCHEDULE CRUSHERFINES TRAIL CONCRETE PLAYGROUND & FITNESS STATION SURFACING ALL ROUND WASHED ROCK BOULDERSEATWALL AT BERM ROUNDED LANDSCAPEBOULDERS LINE TYPE LEGEND GAS GAS GAS LINE PROPERTY LINE PROPOSED MAJOR CONTOUR PROPOSED MINOR CONTOUR EXISTING MAJOR CONTOUR EXISTING MINOR CONTOUR SETBACK EASEMENT 7620' ST ST UGE COMM STORM MAIN UNDERGROUND POWER TELECOMMUNICATION WTR WTR WTR WTR WATER LINE LIM LIM LIMITS OF DISTURBANCE SHEET MATCHLINE 8''SS 8''SS SANITARY SEWER NOTE: CONTRACTOR TO VERIFY ALL FINAL SIDEWALK GRADES. ALL SIDE SETBACKS TO SLOPE AT 2% TOWARDS PARK. PRIMARY PARKSIGNAGE DIRECTIONALTOTEM PARK BOUNDARYPIN SYMBOL PRODUCT SIGNAGE SCHEDULE B TRAFFIC &PEDESTRIAN SIGNS SITE AMENITY SCHEDULE FITNESS EQUIPMENT FITNESS STATION #1(SIT UP)*** FITNESS STATION #2 (PUSH OFF)*** FITNESSSTATION INSTRUCTION SIGN*** SYMBOL PRODUCT 1 KEYNOTES - PARK 10 2 3 4 5 6 7 8 9 10 PARK BOUNDARY LANDSCAPE BOULDER, SEE MATERIAL SCHEDULE: SHEET L001 STORMWATER POND, SEE CIVIL & SHEET L501: DETAIL 9 PARK DIRECTIONAL TOTEM, SEE SIGNAGE SCHEDULE: SHEET L001 PRIMARY PARK SIGN, SEE SIGN SCHEDULE: SHEET L001 6' CONCRETE SIDEWALK, SEE MATERIAL SCHEDULE: SHEET L001 11 PARK BOUNDARY PIN 5' ASPHALT BIKE TRAIL, SEE CIVIL DOG PARK AREA 4' HEIGHT DOG PARK FENCING, SEE MATERIAL SCHEDULE: SHEET L001 4' HEIGHT DOG PARK GATE, SEE MATERIAL SCHEDULE: SHEET L001 12 PET WASTE STATION, SEE AMENITY SCHEDULE: SHEET L001 13 6' IN-GROUND MOUNTED BENCH, SEE AMENITY SCHEDULE: SHEET L001 14 NOT USED 15 NOT USED 16 NOT USED 17 NOT USED 18 EXISTING WATER MAIN 19 TREE ROOT BARRIER, SEE PLANTING DETAIL, SHEET L501: DETAIL 7 Park 10 Hardscape & Grading Plan L 102 design5la.com406.587.4873 date issue drawn by: checked by: filename: z:\blackwood groves\autocad\01_sheets\bg-phase 2 parks cds\l000_blackwoodgroves_d5_landscape_ph2.dwgBlackwood Groves SubdivisionPhase 2 Parks Final PlatBozeman, MontanaKHM/HU TMS 2 SHEET KEY: 20 10 0 40 N 1 L102 1" = 20'-0" Park 10 Hardscape & Grading Plan 95 GWCWWWWWWWWWWWWWWWWSTORM BASIN BASINWCITY PARK 24955'1.4%2.2%SOUTH 17TH AVEARNOLD STREET4955'4955'4955'LIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIM LIM LIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLIMLI M LIMLIMLIMLIM LIM LIM LIM LIM L IM LIMLIM LIM LIM LIM LIM158223344567679910111214141015151316AB20'30'20' EXISTINGIRRIGATIONEASEMENT 20'30'81'12'12'1PARK BOUNDARYKEYNOTES - L10225' CRUSHER FINES TRAIL310' CONCRETE SIDEWALK46' CONCRETE SIDEWALK5WETLAND AREA6ZONE 1 WATERCOURSE SETBACK7ZONE 2 WATERCOURSE SETBACK8STORMWATER POND, SEE CIVIL9LANDSCAPE BOULDER10LANDSCAPE BERM11DOG PARK FENCING12DOG PARK ENTRY GATE & STAGING AREA13EDUCATIONAL SIGN14BENCH (**SEE COLOR SCHEDULE)15PET WASTE STATION16MAINTENANCE ACCESS GATESYMBOLPRODUCTSITE MATERIAL SCHEDULECRUSHERFINES TRAIL4" CONCRETESIDEWALKSROUNDEDLANDSCAPEBOULDERSENGINEEREDWOOD FIBERPLAYGROUNDSURFACINGPEDESTRIANBRIDGE6" CONCRETEDRIVE AREACONCRETEPLAYGROUNDCURBPERPLANDOG PARKFENCINGFOREVERREDWOOD18'X26' TOLEDOPAVILIONFOREVERREDWOOD14'X40' TOLEDOPAVILIONNATURALSTEEL EDGINGPER PLANSYMBOLPRODUCTSITE AMENITY SCHEDULE6' BENCHBIKE RACKTRASH &RECYCLINGRECEPTACLEPET WASTESTATIONRECTANGULARPICNIC TABLEW/ BENCHESADIRONDACKCHAIRSNOTE:RCOLLAPSIBLEBOLLARDPRIMARY PARKSIGNAGESYMBOLPRODUCTSIGNAGE SCHEDULEEDUCATIONALSIGNGWCLINE TYPE LEGENDIRRIGATIONPROPERTY LINEPROPOSED MAJOR CONTOURPROPOSED MINOR CONTOUREXISTING MAJOR CONTOUREXISTING MINOR CONTOURSETBACK/EASEMENT7620'WSSWATER LINESANITARY SEWEROHEOVERHEAD POWERLIMLIMLIMITS OF DISTURBANCESHEET MATCHLINEWETLAND AREAUGEUNDERGROUND ELECTRICSYMBOLCOLOR CODEPRODUCTSITE AMENITY - COLOR SCHEDULE6' BENCHRECTANGULARPICNIC TABLEW/ BENCHESADIRONDACKCHAIRSABCCHARCOAL GRAYLEAF GREENSUNSET ORANGEABCCHARCOAL GRAYLEAF GREENSUNSET ORANGEABCCHARCOAL GRAYLEAF GREENSUNSET ORANGEHardscape &Grading PlanL 1021L1021" = 20'-0"Hardscape & Grading Plandesign5la.com406.587.4873dateissuedrawn by:checked by:filename:z:\sud park master plan\autocad\01_sheets\l000_sud-park_landscape.dwg Southwood Park Park Master Plan Bozeman, Montana KHM/HU TMS 12/02/2275% Progress Set01/18/2375% Park Update04/26/23100% Bid Set06/23/23100% CD Rev112010040NMATCHLINE L101MATCHLINE L103 Exhibit B - Southwood Dog Park at South University District96 B02HH B02 B02 B02 HH UTIL UTILUTILUTILUTILUTIL UTILUTILUTILUTILUTILUTILDSS S 8W 8W 8W 8W 8W 8W 8W 8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8S8SDYHDYH8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8WSSSS SS SS SS 8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8W8WUTIL UTILUTILUTILUTILUTILNG NG NG NG NG NGBPBPBPBPBPBPBPBPMULTI-USE PLAY FIELDIRRIGATED BLUEGRASS SOD80'X200'2-OHIO BUCKEYEDOG PARKNATIVE GRASS,TYP.CRUSHER FINES TRAIL2-LITTLELEAF LINDEN3-NORTHERN CATALPA2-BUR OAK2-SKYLINEHONEYLOCUSTEXISTING VEGETATION TO REMAIN, TYP,EXISTING VEGETATION TO REMAIN, TYP,NATIVE GRASS,TYP.2-NORTHERN RED OAK3-TURKISH FILBERTNATIVE GRASS,TYP.IRRIGATED BLUEGRASS SODIRRIGATED BLUEGRASS SOD6'-0" WIDEL1.22ALIGN TRAIL WITH CROSSWALKFIELD LOCATE TRAIL THROUGH TREES TO MAINTAINMINIMUM 3'-0" CLEARANCE FROM TREE TRUNKS(COORDINATE EXACT ALIGNMENT WITH CITY FORESTRY)EXTEND CRUSHER FINES TRAIL INTO EXISTING PARK. REMOVE EXISTINGTURF TO ACCOMMODATE CRUSHER FINES. CONTRACTOR TO REPAIRANY TURF OR IRRIGATION DISTURBED BY TRAIL INSTALLATIONMATCH EXISTING WALK IN BOTHLINE AND GRADE6'-0" WIDE CONCRETEWALKL1.356' BENCH (3)L1.32LANDSCAPE BOULDERSL1.31TRASH RECEPTACLEL1.33BASKETBALL GOAL AND COURTL1.37PET WASTE STATIONL1.346' BENCH (3)L1.32WOOD RAIL FENCEL1.36WOOD RAIL FENCEL1.36STORMTECH STRUCTURE,RE: CIVILTEMPORARY ACCESSTURNAROUNDDOG PARKDOG PARK(INSTALL 3'x7'x4"CONCRETE PAD)(INSTALL 3'x7'x4"CONCRETE PAD)LEGENDPROPERTY LINEPROPOSED NATIVE GRASSPROPOSED IRRIGATED BLUEGRASSPROPOSED DECIDUOUS TREEEXISTING VEGETATIONMEADOW CREEK PARK EXPANSION(2.06 ACRES)KURK DRIVE SOUTH 30TH AVENUEEXISTINGPLAYGROUNDMEAH LANEBUFFALO RUN AVENUETRASH RECEPTACLEL1.33(LOCATE 2' FROM EDGEOF BOTH WALKWAYS)Scale: 1" = 20'-0"Site Plan Submittal Date: NOVEMBER 12, 2021SITE PLAN SUBMITTALTHE HOMESTEAD AT BUFFALO RUN5400 FOWLER LANES23, T02 S, R05 E, N2SW4SW4, CITY OF BOZEMAN, GALLATIN COUNTY, MONTANA.Revision 1 Date:JULY 6 2022L1.1 - LANDSCAPE PLAN1" = 30'-0"Exhibit D - Meadow Creek Park Dog Park 97 Memorandum REPORT TO:City Commission FROM:Ben Abbey, Chief Building Official Anna Bentley, Director of Community Development SUBJECT:Ordinance 2143, Final Adoption of Text Amendment Amending Chapter 10 Buildings and Building Regulations, Article 2 Technical Codes, Section 20 Building Division Fees and Permits MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Final adoption of Ordinance 2143. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Chapter 10 Buildings and Building Regulations, Article 2 Technical Codes, Section 20 Building Division Fees and Permits of the Bozeman Municipal Code (BMC) describes Building Division charges and fees. The existing code lists a series of mathematical equations that were adopted in 2005. Existing code also describes how several fees are administered. In April 2021, the City Commission adopted Resolution 5287 [external link] directing staff to cease use of the mathematical equations, and instead base building fees on the most recent International Code Council (ICC) Valuation and Fee Calculations. This methodology is an industry best practice and the associated cost tables are updated at least annually. The resolution further described the ability to update fees administratively. Timing and staff turnover prevented Community Development from implementing the Resolution in 2021; staff is doing so now. The first step in implementing Resolution 5287 is to strike the outdated equations from the BMC. The presence of these equations in the code precludes the ability to implement any other fee rationale. This Ordinance 2143 would remove that language and simplify associated descriptive text. A second and future step in implementing Resolution 5287, anticipated September 2023, will bring a fee resolution to the Commission for consideration. That fee resolution will include building fees and the most current ICC cost table, per Resolution 5287. 98 The City Commission provisionally adopted this ordinance on August 1, 2023 on a vote of 4-0. For details, please see the video [external link] of the August 1st meeting beginning at 18 minutes in the recording, and the City Commission packet item [external link] for the meeting beginning on page 281. UNRESOLVED ISSUES:None. ALTERNATIVES:As identified by the Commission. FISCAL EFFECTS:None at this time related to this Amendment. Attachments: Ord 2143 Revise 10.02.020 Building Fees.pdf Report compiled on: August 7, 2023 99 Version February 2023 Ord 2143 Page 1 of 6 ORDINANCE 2143 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA TO GENERALLY REVISE BOZEMAN MUNICIPAL CODE SECTION 10.02.020 “BUILDING DIVISION FEES; PERMITS” TO UPDATE AND SIMPLIFY REGULATIONS AUTHORIZING PAYMENT OF BUILDING DIVISION FEES AND PROVIDING THAT FEE SCHEDULES WILL BE ADOPTED BY RESOLUTION OF THE CITY COMMISSION. WHEREAS, Administrative Rules of Montana 24.301.138(6) and 24.301.203 allow a city to establish building permit fees to fund building code enforcement activities; and WHEREAS, this Ordinance setting the process for establishing building division fees, along with periodically adopted fee schedule resolutions, are intended to replace certain previous processes to determine building division fees and fee schedules; and WHEREAS, the fee schedules periodically adopted by resolution shall comply with the most current version of ICC Construction Cost Table, as adopted by the Bozeman City Commission through Resolution 5287; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That Ordinance 1631 and Commission Resolution 3800 be repealed in their entirety. Section 2 That the Bozeman Municipal Code be amended so that Section 10.02.020 shall read as follows: Sec. 10.02.020. – Building division fees; permits 100 Ordinance No. 2143, Generally revising BMC 10.02.020 Regarding Building Division Fees Page 2 of 6 A. Building division fees. The building division must charge fees for permits, plan checks, and other work. Charges may be flat or scaled fees. Building Division fees must be adopted by resolution of the city commission. 1. All fees will be assessed based on the most current fee schedule, as adopted by resolution of the city commission. 2. When new construction types or administrative procedures require new fee types, the city manager has the authority to approve and implement those fees by administrative order. In such instances, the city commission must adopt the fee schedule by resolution within 90 days of the administrative approval. A. Building division fees. The building division shall charge fees for permits, plan checks and other work based upon the following criteria and formulas. The specific fee tables referenced below, and including those for the various uniform, national or international codes, shall be approved by resolution of the city commission. 1. Fees for additional and new building permits. Fees for building additions and commercial/residential building construction projects will be assessed based upon the current number of employees and their labor costs, internal and external administrative costs, the building square footage, and the labor factors derived from approved fee tables. The permit formula is: Administrative and Internal Charges = Administrative Charges/Employee # Personnel Administrative Charges/Employee = Administrative Charges/Employee/Hour 1800 (network hours/year) Admin. Charges/Employee/Hour + Inspector's Hourly Pay Rate = Total Hourly Rate (Total Hourly Rate)(Table A)(Building Sq. Footage) = Building Permit Fee 2. Building permit factors: Table A is based on Amount of Inspection Time/Sq. Ft., Construction Type and Fire Rating. 3. Plan review formula is: Administrative and Internal Charges = Administrative Charges/Employee # Personnel Administrative Charges/Employee = Administrative Charges/Employee/Hour 1800 (network hours/year) 101 Ordinance No. 2143, Generally revising BMC 10.02.020 Regarding Building Division Fees Page 3 of 6 Admin. Charges/Employee/Hour + Plans Examiner Hourly Pay Rate = Total Hourly Rate (Total Hourly Rate)(Table B)(Building Sq. Footage) = Plan Review Fee 4. Plan review factors: Table B is based on Amount of Plan Review Time/Sq. Ft., Construction Type and Fire Rating. 5. Fees for electrical, plumbing, mechanical, fire suppression systems, and building remodel permits will be determined based on the contractor valuation of the project, subject to the building division's approval of the valuation. The permit valuation will be applied to the permit amounts detailed in Table C. 36. Related fees. The payment of the fee for construction, alteration, removal or demolition for work done in connection to or concurrently with the work authorized by a building permit shall not relieve the applicant or holder of the permit from payment of other fees that are prescribed in the International Building Code (IBC) and the International Residential Code (IRC). IBC section 108.5 and IRC section R108.4. a. Reinspection fees. Reinspection fees may be assessed against a previously issued permit when additional reinspections are made in excess of what is commonly performed. Such fees are based on the extra time expended, multiplied by the building inspectors total hourly rate. This additional fee is to be paid to the building division prior to any further inspections being made by the building inspector to the site. The reinspection fee is to be based on a minimum time of two hours. b. Move-in prior to issuance of a certificate of occupancy. When an occupant moves into a structure prior to a certificate of occupancy being issued by the building inspector, a reinspection fee shall be assessed against the previously issued permit. Such fees are based on the extra time expended, multiplied by the building inspector's total hourly rate. This additional fee is to be paid to the building division prior to any further inspections being made by the building inspector to the site. The reinspection fee is to be based on a minimum time of two hours. B. Plan review; permit expiration; work without valid permit. 1. Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official or designee is authorized to grant one or more extensions of time for additional periods not exceeding 90 days each. The extension shall be requested in writing and justifiable cause demonstrated. 2. Permit expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after issuance, or, if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. The building official or designee is authorized to grant, in writing, one or more extensions of time, for periods not to exceed 180 days each. The extension shall be requested in writing and justifiable cause demonstrated. 3. Plan review and permit renewal. 102 Ordinance No. 2143, Generally revising BMC 10.02.020 Regarding Building Division Fees Page 4 of 6 a. In order to renew action on a plan review after expiration, the applicant must re- submit plans and pay a new plan review fee. b. In order to renew action on an expired permit, a new permit shall first be obtained and the fee therefor shall be one-half the amount required for a new permit for such work, provided no changes have been made or will be made in the original plans and specifications for such work, and provided further that such suspension or abandonment has not exceeded one year. c. In order to renew action on a permit after expiration has exceeded one year, the permittee shall pay a new full permit fee. 4. Work commencing before permit issuance. Any person who commences any work on a building, structure, electrical, gas, mechanical or plumbing system before obtaining the necessary permits shall be subject to an additional fee as established by the building division that shall be in addition to the required fees. The fee shall not be more than twice the permit fee amount. C. Refunds. 1. Plan review fee refunds will not be given if the review has already been performed on the plans and specifications. 80 percent of the plan review fee will be refunded if the review of the plans and specifications has not commenced. 2. Permit fees will not be refunded if the work has commenced and inspections have been made. 80 percent of the permit fee will be refunded if no inspections have been performed at the site and the work is to be abandoned or postponed for more than 180 days. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. 103 Ordinance No. 2143, Generally revising BMC 10.02.020 Regarding Building Division Fees Page 5 of 6 Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall be codified as indicated in Section 2. Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 1st day of August, 2023. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of ____________________, 20__. The effective date of this ordinance is ______________, 20__. 104 Ordinance No. 2143, Generally revising BMC 10.02.020 Regarding Building Division Fees Page 6 of 6 _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 105 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Triannual Climate Plan Report MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Sustainability Program Manager, Natalie Meyer, will present an update on the 2020 Bozeman Climate Plan. STRATEGIC PLAN:6.3 Climate Action: Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy; foster related businesses. BACKGROUND:On December 22, 2020, the City Commission approved Resolution 5248 adopting the Bozeman Climate Plan. The Climate Plan identifies community goals and actions to reduce greenhouse gas emissions and prepare for the impacts of climate change. Sustainability Program Manager, Natalie Meyer, will present work accomplished since the last Triannual Report presented on April 25, 2023. Triannual Climate Plan Reports are planned every four months on a triannual basis to provide both the City Commission and the community with regular progress updates. A community dashboard is also available providing a condensed view of current progress, updated twice yearly. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:None. Report compiled on: August 3, 2023 106 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Resolution 5526, Confirming the Revised Scope of Work for Kagy Boulevard MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Having reviewed and considered the staff report, public comment, and all information presented, I hereby move to approve Resolution 5526, Confirming the Revised Scope of Work for Kagy Boulevard STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:City Staff presented a Kagy Revisited Work Session to the City Commission on February 28, 2023 and to the Transportation Board on April 26, 2023. The staff memo highlighted the purpose and need for the project, the history of the project, the updated traffic evaluation, and the alternatives analysis. Since those work sessions, the project team engaged with the public through an open house on May 25, 2023 and an online survey to gather input on a number of aspects of the Kagy Boulevard project. The goal of this engagement effort, in addition to several public meetings previously held between the start of the project in 2015 and now, was to ensure the public has a voice in the final design scope of work presented to Commission for approval. The open house attracted 53 attendees who generally reported positive feedback on the engagement process. Several who have been involved in various Kagy public engagement efforts since 2016 noted their preference for this style of meeting over previous efforts, which indicated positive support for the city's Engage BZN efforts. Attendees were presented with all pertinent project material, given one-on-one access to team members for any questions they may have, and then asked to complete a series of exercises used to indicate an appropriate scope of work based on the values they shared. The activities included a survey to indicate their preference of allowable travel delay as it relates to the necessary lane allotment for each of the options provided. Participants were then asked to provide input on their priority of four equivalent-cost scope items in a scenario where funding constraints would require the scope to be reduced. Additionally, the online survey received 11 responses to the same series of activities. All information and access provided to people who joined the in-person open house were 107 also available to all online participants. Results of the engagement activities can be found as a supplement to this agenda item. During the open house, participants were almost exactly split between accepting significant congestion and accepting a reasonable amount of congestion. The former option correlates to maintaining a single lane of vehicular capacity in each direction while the latter option correlates to providing two lanes of vehicular capacity in each direction. All 11 respondents to the online engagement chose to accept a reasonable amount of congestion (two lanes in each direction). For sake of transparency participants were also provided the option of building enough capacity to maintain little to no congestion, which would require six or more lanes (this option is not under formal consideration). Based on comments gathered during the engagement period and prior efforts, consistent patterns of concern were observed. Two themes emerged around both allowing considerable additional development in the south part of Bozeman without keeping up with adequate infrastructure , and also over creating a barrier to pedestrian and bicycle travel across Kagy by building a poorly designed multi-lane street. Staff have responded by proposing a scope that directly addresses both concerns equally. Concerns of a wider street acting as a barrier to safe crossings is of primary concern and will be addressed in several manners. First, grade separated crossings at locations of high projected bicycle and pedestrian demand will fully separate vulnerable street users from live vehicular traffic. These features would be proposed regardless of lane number, as the projected demand on future Kagy Boulevard would justify grade separation for the benefit of all modes. The inclusion of a landscaped median and narrowed travels lanes also means that a pedestrian will be exposed to no more than two lanes of traffic at a time, technically shorter than existing crossing distances (signalized intersections at 19th and Willson will provide phasing to protect bicycle and pedestrian crossings). Finally, a 25 mph design speed has been chosen to allow certain features of the project such as turning radii to operate in a slower and safer manner. Concerns of future traffic congestion induced by development will be addressed by providing adequate capacity for all modes through a second travel lane in each direction, shared-use paths, and roundabout intersection control at 11th and 7th. The need for additional future capacity was studied extensively through the Kagy Revisited effort. Staff directed the consultant to revise their traffic projections with known sources of historic error in over-projection in mind. These revisions included assuming no "background" traffic growth (only that which can be anticipated from known developments), up to 50% of future trips from mixed-use development directly adjacent to Kagy in the form of internally captured or active trips (bicycle and pedestrian), and 10% bike/ped mode share for all future trips within a mile of Kagy. Additionally, another 21,000 trips were assumed to 108 use future parallel street connections along Stucky, Arnold, and Graf. With these assumptions included, the projected future vehicular volumes along Kagy are expected to still approach 25,000 trips per day with an additional 2,000-3,000 trips by foot or bicycle. The typical capacity of a 3-lane street approaches 18,000 vehicles per day, indicating that additional lane capacity will be required to avoid substantial travel delay and the potential to induce diversions into residential areas. In addition to assisting with efficient operations, roundabout intersections will also provide traffic calming and improved safety performance compared to a typical signalized intersection of multi-lane streets. Based on findings of the previous staff report and results of the engagement efforts, the recommended final design scope of work is proposed to include two travel lanes in each direction, left turn lanes as determined through detailed engineering design, roundabouts at the intersections with South Eleventh Avenue and South Seventh Avenue, traffic signal modifications at the intersection with South Willson Avenue and South Nineteenth Avenue, 10-foot wide shared-use paths on both sides of the corridor, pedestrian tunnels at South Eleventh Avenue and South Seventh Avenue, landscaping, and street lighting. This proposed scope largely follows the existing scope of work most recently approved by Bozeman City Commission in 2021. Proposed revisions to the existing scope include maintaining traffic signal control at Willson and shared-use paths in lieu of curbside bicycle lanes paired with traditional sidewalks. Constructing a second travel lane in each direction with this project drastically reduces life cycle cost compared to postponing widening to a future date. This determination is based the anticipation of future cost escalation and the fact that a future widening would have to reconstruct most stormwater, landscaping, lighting, and shared-use paths built with the current proposed project. Further, staff envisions the potential to re-allocate lane capacity in the future for rapid transit use should expanded transit service materialize. The capacity built now could provide the infrastructure for robust bus rapid transit service in the future. This scope will ultimately require outside funding assistance to advance into construction and remains subject to right-sizing if funding is not secured. All eligible Federal grant sources for this type of project are highly competitive with a far greater number of requests than the approved funding can serve. A benefit-cost analysis of both congestion and safety is required for these grant submissions, and the proposed Kagy scope presented above stands a substantially higher chance of selection than if adequate capacity were not included. Successfully obtaining federal funding will allow existing Kagy funding sources such as local Street Impact Fees and Federal Urban Route funding to be re-allocated across other community needs, such as College 109 Ave. The Transportation Advisory Board was presented with findings of the engagement effort during the meeting on July 25, 2023. At the conclusion of the staff presentation and with Board questions answered, the Board voted 5-0 in support of Resolution 2023-02 recommending the proposed scope of work referenced above. Staff will provide a review of the previous findings, discuss outcomes of the recent community engagement efforts, and answer any questions before presenting the proposed scope of work for approval. UNRESOLVED ISSUES:Proposed scope is dependent on securing Federal grant funding. If unsuccessful, staff will return to Commission with a value-engineered scope revision for approval. ALTERNATIVES:As recommended by the Commission. FISCAL EFFECTS:None from the Commission Resolution. Construction of the Kagy Boulevard project is included in the current City of Bozeman Capital Improvements Program and local funding commitment remains unchanged. Attachments: Kagy Boulevard_Open House Activity Results.pdf Kagy Boulevard_Online Activity Results.pdf Resolution_5526_- _Confirming_the_Revised_Scope_of_Work_for_Kagy_Boulevard_FINAL.docx Report compiled on: July 28, 2023 110 Kagy Boulevard – Open House May 25, 2023 Project team attendees: MDT: • Geno Liva • Dave Gates Sanderson Stewart: • Tessa Wermers • Joey Staszcuk City of Bozeman: • Nick Ross • Taylor Lonsdale • Takami Clark Big Sky Public Relations: • Kristine Fife • Katie Hodge Total community attendees: 53 Activity Results: Travel congestion/typical section input board: Single-lane = 20.5 votes Multi-lane = 19.5 votes 6-lane = 1 vote 111 Jar Activity: Reduce Project Limits: lesson total project area to decrease overall cost. • Dark Blue – 6 (15%) • Light Blue – 6 (15%) • Yellow – 11 (28%) • White – 16 (41%) Additional Capacity: increased number of travel lanes. • Dark Blue – 3 (7%) • Light Blue – 8 (20%) • Yellow – 7 (17%) • White – 22 (56%) Shared Use Paths: to accommodate bicycles. • Dark Blue – 4 (10%) • Light Blue – 18 (46%) • Yellow – 17 (44%) • White – 0 (0%) Pedestrian Underpasses: to reduce pedestrian and traffic conflicts. • Dark Blue – 26 (67%) • Light Blue – 7 (18%) • Yellow – 4 (10%) • White – 2 (5%) 112 Kagy Blvd Open House Survey 1 / 3 0.00%0 100.00%11 0.00%0 Q1 What is your preferred amount of travel delay during a typical weekday? Answered: 11 Skipped: 0 TOTAL 11 0%10%20%30%40%50%60%70%80%90%100% Single-lane (one lane in... Multi-lane (two lanes i... Six-lane (three lanes... ANSWER CHOICES RESPONSES Single-lane (one lane in each direction): accept significant traffic congestion Multi-lane (two lanes in each direction): accept reasonable traffic congestion Six-lane (three lanes in each direction): prioritize reducing traffic congestion 113 Kagy Blvd Open House Survey 2 / 3 Q2 If cost of the project exceeds available funding, rank the following items in order of greatest to least importance. Answered: 11 Skipped: 0 18.18% 2 9.09% 1 45.45% 5 27.27% 3 11 2.18 36.36% 4 36.36% 4 9.09% 1 18.18% 2 11 2.91 36.36% 4 36.36% 4 0.00% 0 27.27% 3 11 2.82 9.09% 1 18.18% 2 45.45% 5 27.27% 3 11 2.09 0 1 2 3 4 5 6 7 8 9 10 Project limits: full... Additional capacity:... Pedestrian underpasses:... Shared-use paths: to... 1 2 3 4 TOTAL SCORE Project limits: full length of project from South 19th Avenue to Willson Avenue. Additional capacity: increased number of travel lanes. Pedestrian underpasses: to reduce pedestrian and traffic conflicts. Shared-use paths: to accommodate bicycles 114 Kagy Blvd Open House Survey 3 / 3 Q3 Any other comments about the project we should consider? Please write them out below! Answered: 3 Skipped: 8 115 Version February 2023 RESOLUTION 5526 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, CONFIRMING THE REVISED SCOPE OF WORK FOR THE KAGY BOULEVARD, SOUTH WILLSON AVENUE TO SOUTH NINETEENTH AVENUE PROJECT. WHEREAS,the purpose for the Kagy Boulevard Reconstruction, is to provide a safe and efficient facility for all users; and WHEREAS,the need for the project is to address current deficiencies and accommodate future demands for all modes of travel within the 20-year horizon; and WHEREAS, on May 25, 2023, staff from the City of Bozeman, the Montana Department of Transportation, and their consultants conducted a public open house to receive input on the scope of work for the Kagy project, NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: the revised Scope of Work for the Kagy Boulevard – South Willson to South Nineteenth Avenue shall include two travel lanes in either direction separated by a landscaped median, left turn lanes as determined by detailed engineering design, roundabouts at the intersections with South Eleventh Avenue and South Seventh Avenue, modifications to existing traffic signals at the intersections with South Nineteenth Avenue and South Willson Avenue, a 10 foot shared-use path on both sides of the corridor, pedestrian tunnels at South Eleventh Avenue and South Seventh Avenue, landscaping, and street lighting. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 15th day of August, 2023. 116 Version February 2023 ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 117 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Development Review Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Preliminary Plat for the Aaker Phase 1 Major Subdivision at the northwest corner of South 19th Avenue and Stucky Road, Application 22311 (Quasi- Judicial) MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION: Having reviewed and considered the staff report, application materials, public comment, Planning Board recommendation, and all the information presented, I hereby adopt the findings presented in the staff report for application 22311 and move to approve the Aaker Phase 1 Major Subdivision Preliminary Plat with conditions and subject to all applicable code provisions and approve the two subdivision variance requests detailed in Section 2 of the staff report. STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. BACKGROUND: The Aaker Phase 1 major subdivision preliminary plat would divide a 95.41 acre property into 11 lots consisting of 6 multi-household lots, 1 City park lot, 1 commercial lot, 2 open space lots, and 1 restricted development lot. The property has two zoning designations: REMU, Residential Emphasis Mixed Use, and B-2M, Community Business—Mixed. The 63.68 acre restricted lot, labeled Tract B, is zoned B-2M. The 6 residential lots, 1 commercial lot, 2 open space lots and the City park lot are zoned REMU and constitute the first phase of development of this subdivision (“Phase 1”). The REMU lots would be subject to an approved Master Site Plan. The Tract B Restricted Lot would be developed at a later phase and would require a subsequent subdivision application and approval prior to its development. 118 UNRESOLVED ISSUES:The 10 REMU zoned lots in Phase 1 are subject to an approved Master Site Plan currently under review. ALTERNATIVES:None. FISCAL EFFECTS: Fiscal impacts cannot be determined at this time, but it is expected that property tax would be generated by development of the Site and increased costs to provide municipal services for that development would be expected. No unusual fiscal effects have been identified. Attachments: 22311 Aaker Phase 1 PP CC staff rpt.pdf Report compiled on: August 4, 2023 119 Page 1 of 36 22311; City Commisson Staff Report for the Aaker Phase 1 Major Subdivision Preliminary Plat Public Meeting/Hearing Dates: Planning Board meeting was held on Monday, July 17, 2023 at 6:00 pm. City Commission meeting will be held Tuesday, August 15, 2023 at 6:00 pm. Both meetings take place in the Commission meeting room at City Hall, 212 N. Rouse Avenue, Bozeman, MT. Electronic access to the meeting may be available as outlined on the published agenda of the meeting. Project Description: A major subdivision preliminary plat application to divide a 95.41 acre property into 11 lots consisting of 6 multi-household lots, 1 City park lot, 1 commercial lot, 2 open space lots, and 1 restricted development lot. The property has two zoning designations: REMU, Residential Emphasis Mixed Use, and B-2M, Community Business—Mixed. The restricted lot, labeled Tract B, is zoned B-2M. The 6 residential lots, 1 commercial lot, 2 open space lots and the City park lot are zoned REMU and constitute the first phase of development of this subdivision (“Phase 1”). The Tract B Restricted Lot would be developed at a later phase and would require a subsequent subdivision application and approval prior to its development. Project Location: The property is located at the northwest corner of the intersection of South 19th Avenue and Stucky Road, a tract of land located within portions of the southeast ¼ of Section 14, Township 2 South, Range 5 East, PMM, City of Bozeman, Gallatin County, MT. Staff Finding: The application conforms to standards and is sufficient for approval with conditions and code provisions. Recommended City Commission Motion: Having reviewed and considered the staff report, application materials, public comment, Planning Board recommendation, and all the information presented, I hereby adopt the findings presented in the staff report for application 22311 and move to approve the Aaker Phase 1 Major Subdivision Preliminary Plat with conditions and subject to all applicable code provisions and approve the two subdivision variance requests detailed in Section 2 of the staff report. Report Date: August 2, 2023 Staff Contact: Susana Montana, Senior Planner Simon Lindley, Project Engineer Agenda Item Type: Action (Quasi-judicial) 120 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 2 of 36 EXECUTIVE SUMMARY This report is based on the application materials submitted and public comment received to date. The application materials are available in the City’s Laserfiche archive and may be accessed through the Community Development viewer as well. No public comments have been received as of the writing of this report. Should written public comments be received they will be included in the City’s Laserfiche archive and available to the public. Unresolved Issues. Approval of the Preliminary Plat is contingent upon the Director of Community Development’s approval of the concurrent Aaker REMU Master Site Plan (MSP) , Application 22381. In REMU, Residential Emphasis Mixed Use Districts, development of lands therein must be consistent with an adopted Master Site Plan per BMC 38.310.060. B.1. The Community Development Board, acting as the Design Review Board, reviewed the MSP on July 18, 2023 and, by a unanimous 6 to 0 vote, recommended approval of the MSP to the Director of Community Development. Project Summary The Department of Community Development received a Preliminary Plat Application on November 15, 2022 requesting to subdivide the 95.41 acre parcel (“Site”) into 7 buildable lots (14.62 acres), 1 City park (8.76 acres), 2 common open space lots (0.52 acres total), road Rights- of-way (7.82 acres) and 1 restricted development lot (63.68 acres). The Restricted Lot, Tract B, would be reserved for future development in subsequent phases and would require a separate subdivision application. The Site has been used for grazing and irrigated crops. The Site is zoned both REMU and B-2M, Community Business—Mixed Use Districts. The Site will have access from the east from continuation of West Kagy Boulevard and Remington Way. The Site will extend both South 23rd Avenue and South 25th Avenue from the north to the new Kagy Blvd. extension within the Site. The southern border of the Site fronts on Stucky Road and extensions from internal roads southward to Stucky Rd. would take place in later phases when the Restricted Lot Tract B is developed. The northern and western boundaries of this Site border a 21 acre, narrow band of unincorporated farmland owned and operated by Montana State University (MSU) as part of their 474 acre Bozeman Agricultural Research and Teaching Facility (BART). On May 23, 2023 the Development Review Committee (DRC) found the application sufficient for continued review and recommends the conditions and code provisions identified in this report. The final decision for this preliminary plat must be made within 60 days of the application being deemed complete; in this case, by August 21, 2023. 121 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 3 of 36 The subdivider requested two variances with this application: a variance to Section 38.400.010.A.1 Relation to Undeveloped Area; and a variance to Section 38.420.060.A Parkland Frontage. Please refer to Section 2 of this report for details on these variance requests. The City did not receive any public comment on the application as of the August 4th writing of this report. Alternatives 1. Approve the application with the recommended conditions; 2. Approve the application with modifications to the recommended conditions; 3. Deny the application based on findings of non-compliance with the applicable criteria contained within the staff report; or 4. Continue the public meeting on the application, with specific direction to staff or the subdivider to supply additional information or to address specific items. 122 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 4 of 36 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ 2 Unresolved Issues. .............................................................................................................. 2 Project Summary ................................................................................................................. 2 Alternatives ......................................................................................................................... 3 SECTION 1 – MAP SERIES .......................................................................................................... 5 SECTION 2 – REQUESTED VARIANCES ................................................................................. 9 SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL .......................................... 13 SECTION 4 – CODE PROVISIONS ........................................................................................... 13 SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS ............................................ 21 SECTION 6 – STAFF ANALYSIS and findings ......................................................................... 21 Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. .......................... 21 38.220.060 Documentation of compliance with adopted standards ................................. 23 APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY..................................... 33 APPENDIX B – DETAILED PROJECT DESCRIPTION .......................................................... 35 APPENDIX C – NOTICING AND PUBLIC COMMENT ......................................................... 35 APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF ................................. 36 FISCAL EFFECTS ....................................................................................................................... 36 ATTACHMENTS ......................................................................................................................... 36 123 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 5 of 36 SECTION 1 – MAP SERIES Exhibit 1 – Zoning 124 Page 6 of 36 Exhibit 2 – Community Plan 2020 Future Land Use Designation: Community Commercial Mixed Use Community Commercial Mixed Use 125 Page 7 of 36 Exhibit 3 – Preliminary Plat Tract B restricted lot for future development 126 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 8 of 36 Exhibit 4 – Phase 1’s 10 Lots (shown in red) Exhibit 5: Phase 2’s Restricted “Tract B” Lot—the 11th Lot. 127 Page 9 of 36 SECTION 2 – REQUESTED VARIANCES The Applicant requested two subdivision variances with this application: a variance to Section 38.400.010.A.1 Relation to Undeveloped Area; and a variance to Section 38.420.060.A Parkland Frontage. 1. Request 1 – Sec. 38.400.010.A.1, BMC. Relation to Undeveloped Area. The first variance request is to eliminate the requirement to extend Remington Way to the western property boundary. Section 38.400.010.A.1 states, “When a proposed development adjoins undeveloped land, and access to the undeveloped land would reasonably pass through the new development, streets and alleys within the proposed development must be arranged to allow the suitable development of the adjoining undeveloped land. Streets and alleys within the proposed development must be constructed to the boundary lines of the tract to be developed, unless prevented by topography or other physical conditions. If the development being reviewed is a subdivision, a required for an alteration of this standard must be processed as a subdivision variance.” The Applicant requested a variance to not extend Remington Way to the western extent of the property stating “there IS critical watercourse and wetland presenting a major site constraint. The general philosophy of the neighborhood is to protect the existing ecosystems wherever possible. Requiring this extension across this significant watercourse would fragment this critical watercourse/wetland habitat for limited positive benefit. Furthermore, there is a significant permitting obstacle to get this roadway approved by the Army Corps of Engineers because it would be challenging to demonstrate the need for this local street when the adjacent property will have access to Kagy Boulevard (Principal Arterial) approximately 600’ south of Remington Way. The intent of this code standard is to ensure that adjacent properties have both adequate physical/legal access and to enhance the overall connectivity of Bozeman. This is evident in the Bozeman Transportation Plan and the planned future transportation network. The future transportation network shows that there will be two collectors (Lincoln Road & South 27th Avenue), and a principal arterial street (Kagy Boulevard) all serving the adjacent property. The extension of Remington Way through the park does little to improve the overall connectivity of the larger City network and is unnecessary. Furthermore, when looking at Remington Way as a whole, it doesn’t extend much further to the east of our project site, so as a local street it does little to enhance the overall east/west connectivity of the larger transportation system. Finally, in this case, the site directly adjacent to the subject parcel is one large landowner (State of Montana) with several existing access points, all of which are either collectors or arterial streets. These factors make extending Remington Way unnecessary.” City Response: The Applicant has provided information to address the variance criteria outlined in BMC 38.250.080. Based on the information provided with this application, City staff supports this variance request. 128 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 10 of 36 2. Request 2 – Sec. 38.420.060.A. Frontage. The second variance request is to eliminate the overall park frontage requirement for the proposed Public Park A lot within the subdivision. Section 38.420.060.A states, “Parkland, excluding linear trail corridors, must have frontage along 100 percent of its perimeter on public or private streets or roads. The City may consider and approve the installation of streets along less than 100 percent, but not less than 50 percent, of the perimeter when: 1. Necessary due to topography, the presence of critical lands, or similar site constraints; and/or 2. When the following elements are included: a. When direct pedestrian access is provided to the perimeters without street frontage; b. When additional land area is provided in the park to accommodate the off-street parking which would have otherwise been provided by the additional length of perimeter streets and the additional land is developed as a parking area; or c. When additional land area is provided in the park to accommodate the off-street parking which would have been provided by the additional length of perimeter streets and, in lieu of the constructed parking area, an equivalent dollar value of non-parking improvements within the park are provided according to the individual park plan.” The Applicant requested a variance to not provide 100 percent frontage on the “Public Park A” Lot stating “The overall park system for Aaker looks to capitalize and enhance the existing wetlands in the area. This is evidenced in the way the park lots are drawn. All of the park lots will encompass a portion of the critical wetland, which runs north/south across the whole property in two locations. Couple this critical land and the extension of the street grid make it impossible to meet the park frontage requirements set out in the code. If you look at the park system as a whole, the park frontage goes up from 45% in phase 1 to over 75% when the project is complete. The Block 1 Lot 1 development area aims to create a community use that will enhance and interact with the park. The specific design of this structure is unknown at this time but it should be noted that proposed program aims to create a larger community benefit. This lot will be privately maintained/operated but the hope is that it will function similarly to a park amenity. Another goal of the Block 1 lot is that it be integrated into the park system as to feel as if it were an extension of the park. There is a chance that the parcel to the west of this, if ever developed, will be a park given the dimensions of it and the extension of South 27th Avenue north. It appears that South 27th (collector 90’ ROW) will bend around the existing farm building hugging closely to the Aaker property boundary. This leaves little development potential for this sliver of land. It is likely that this sliver of left over ground would be converted to park land. This would increase the overall park frontage and likely get the park well above the 50% requirement. 129 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 11 of 36 Lastly, many of the Aaker parks could be considered Linear Parks, which may logically not be subject to individual park frontage requirements.” Exhibit 6: Parks Master Plan 130 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 12 of 36 Exhibit 7: Park landscape Sheet L001 City Response: The Applicant has provided information to address the variance criteria outlined in BMC 38.250.080. Based on the information provided with this application, City staff supports the variance request. MSU Ag lands MSU Ag lands Phase 2 park 131 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 13 of 36 SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL Please note that these conditions are in addition to any required code provisions identified in this report. These conditions are specific to this project. 1. Approval of this Preliminary Plat is contingent upon Community Development Director approval of the Aaker REMU Master Site Plan, Application 22381, pursuant to BMC 38.310.060.B.1. 2. Tract B is a Restricted Development Lot, and this must be so identified and labeled as such on the Final Plat Map Sheet 2 and in the Conditions of Approval Sheet 4. This notifies all parties that any future development will require approval of a subsequent subdivision application prior to development of land within Tract B. 3. The subject property is located within the Meadow Creek Subdivision Signal and Sewer payback district boundaries. If the subject property did not participate in the original cost of construction of improvements the subject property will be accessed a payback charge prior to Final Plat approval. Reference documents: https://weblink.bozeman.net/WebLink/ElectronicFile.aspx?dbid=0&docid=181718& https://weblink.bozeman.net/WebLink/ElectronicFile.aspx?dbid=0&docid=129437& SECTION 4 – CODE PROVISIONS 1. Sec. 38.100.080 – Compliance with regulations required. The Applicant is advised that unmet code provisions, or code provisions that are not specifically listed as conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. 2. Sec. 38.610.090.A. Wetlands Preservation. a. The Applicant shall assure that all reasonable effort has been made to limit direct and indirect impacts to vegetation, faunal interspersion and connectivity, and hydrological connectivity in the subdivision design and shall assure that any structures, boardwalks, viewing platforms, or bridges which are constructed within wetlands will have at least a two-foot space between the bottom chord of the structure and the wetland surface elevation to limit shading impacts and allow wetland vegetation to persist; and b. Porous material that does not disrupt the hydrological connectivity must be used for fill within the wetlands where the pathways cross the wetlands. This exact design must be coordinated with the City Parks Department and be part of the approved park plan and could include a bridge that spans the width of the wetland, a boardwalk, or other porous material that allows the integrity of the hydrological connectivity to be maintained. 132 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 14 of 36 3. Sec. 38.220.020, 38.220.130 (A) and 38.610.050 – Streambed, Streambank, and/or Wetland Permits a. Prior to Final Plat approval, the Applicant must provide the Community Development Department with a written statement of a wetland boundary determination from the U.S. Army Corps of Engineering (USACE). If the wetlands are determined to be USACE jurisdictional, an approved 404 permit for any placement of dredged or fill material within the wetland must be submitted to the Community Development Department prior to Final Plat approval; and b. The Applicant must contact the Gallatin County Conservation District, Montana Department of Environmental Quality, and U.S. Army Corps of Engineers regarding the proposed project and any required permits (i.e., 310, 404, Turbidity exemption, etc.) must be obtained by the Applicant. Approved stream and wetland permits shall be provided to the Community Development Department and City Engineer prior to public infrastructure approval for public infrastructure impacts to jurisdictional wetlands and streams. 4. 38.220.100.C.3 and 6, 38.220.130 and 38.410.100, Watercourse Setbacks. a.Watercourse setbacks must be shown and properly labeled on all Sheets of the Final Plat; and b. The Conditions of Approval Sheet shall notify prospective buyers of the regulations relevant to wetlands preservation, maintenance of appropriate plantings, and maintenance responsibilities of the property owners’ association (POA) for the wetlands’ flora and nearby trails. The CC&R document shall outline the POA maintenance responsibilities relative to the wetlands. 5. Sec. 38.220.070. The Conditions of Approval Sheet, at a minimum, shall contain the following: a. "This is a known area of high groundwater. No crawl spaces or basements may be constructed unless a signed and stamped report from a licensed engineer is provided to the Community Development Department which verifies that there is sufficient separation between groundwater and crawl space or a basement. Sump pumps are not allowed to be connected to the sanitary sewer system. Sump pumps are not allowed to be connected to the drainage system. Water from sump pumps may not be discharged into streets, such as into the curb and gutter, where they create a safety hazard for pedestrians and vehicles."; b. List all easements and recorded document numbers on the Conditions of Approval Sheet; c. "The maintenance of all subdivision stormwater facilities outside the public right- of-way, including stormwater facilities within the park parcel, is the responsibility of the subdivision property owners’ association (POA). The maintenance of all 133 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 15 of 36 private lot stormwater facilities is the responsibility of the private lot property owners' association (POA)." ; and d. "The ownership and maintenance of the pipe which diverts the perennial or intermittent and flood flows from the existing irrigation ditch to the west fork of the Catron Creek on the north side of West Stucky Road is the responsibility of the subdivision property owners' association (POA)." e. A 1-foot “No Access” easement shall be placed along the West Kagy Boulevard frontage for the full length of the development with the exception of an access to Block 1, Lot 1, and Block 3, Lots 3 and 4. This shall be shown and labeled on Sheet 2 of the plat and this language shall be included in the Notes on the Condition of Approval Sheet; and 6. BMC 38.400.040.A.2 – Street Names. Street names must be reviewed and approved by the County's geographic information systems and City Engineering Department prior to Final Plat approval. The Applicant must submit written approval from both entities with the Final Plat application. 7. Sec. 38.270.030.D - Completion of Improvements for Subdivisions. The Applicant has requested concurrent construction of public infrastructure with development of the Site infrastructure. a. The property owner must enter into an improvements agreement to ensure the installation of required infrastructure and other applicable improvements, to be secured by any security or securities found in section 38.270.080; b. Approval of the final engineering design, including location and grade, for any public infrastructure must be obtained from the engineering department, and the Montana Department of Environmental Quality when applicable, prior to issuance of any building permit for the development; c. For building permit and/or site plan applications seeking concurrent construction, the developer must provide and maintain hazard and commercial general liability insurance. Insurance policies must not be cancelled without at least 45 days prior notice to the City. The commercial general liability policy must name the City as an additional insured. The developer must furnish evidence, satisfactory to the City, of all such policies and the effective dates thereof; d. For building permit and/or site plan applications seeking concurrent construction, the developer must execute a hold harmless and indemnification agreement indemnifying, defending and holding harmless the City, its employees, agents and assigns from and against any and all liabilities, loss, claims, causes of action, judgments and damages resulting from or arising out of the issuance of a building permit under this section; 134 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 16 of 36 e. For building permit and/or site plan applications seeking concurrent construction, subsequent to preliminary plat approval, a concurrent construction plan, addressing all requirements of this section, must be submitted for review and approval of the community development director in consultation with the City engineer and with a recommendation from the development review committee and f. BMC 38.400.A - Where improvements are to be installed prior to Final Plat approval, the Final Plat subdivision must contain a certificate of completion of public improvements. The certificate must list all completed and accepted improvements. 8. Sec. 38.400.070 – Street Lighting The required public streetlight(s) must be included in a Special Improvement Lighting District (SILD), in accordance with the City of Bozeman Lighting and Electrical Specifications, prior to Final Plat approval. 9. Sec. 38.410.060. - Easements. a. All Easements indicated below must be provided on City standard easements templates. Drafts must be prepared for review and approval by the City. Signed hard copies of the easements must be submitted to the City prior Final Plat approval. The Applicant may contact the review engineer to receive standard templates: (i) 60 foot Public Street and Utility Easement, (ii) 20 foot Irrigation Easement, and (iii) 30 foot Water and Sewer Pipeline Access Easement; b. The Applicant must provide a ten foot utility easement (power, gas, communication, etc.) along the developments’ property frontage; and c. The Applicant must provide a public storm drainage easement for the proposed storm sewer main and detention facility where located outside of public right-of- way or dedicated parkland. 10. BMC 38.400.060.B.4 and 38.270.070.C – Streets. a. The proposed project is located within one-half mile of the intersection of South 19th Avenue and Kagy Boulevard. The Aaker Phase 1 Subdivision Traffic Impact Study indicates the subject intersection will not meet the City's level of service standard at full buildout in the design year required per BMC 38.400.060.B.4. The intersection of South 19th Avenue and Kagy Boulevard is scheduled for improvement in the City's Capital Improvement Plan within the next three years. Per BMC 38.270.070.C, the applicant must pay cash-in-lieu for the Aaker Phase 1 proportional share of the capital facility prior to Final Plat approval; and 135 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 17 of 36 b. A 1 foot "No Access" easement shall be placed along the West Kagy Boulevard frontage for the full length of the development with the exception of an access to Block 1 Lot 1 and Block 3, Lots 3 and 4. This shall be shown and labeled on Sheet 2 and this language shall be included in the notes on the Condition of Approval Sheet. 11. Sec 38.410.070 Municipal Water, Sanitary Sewer and Storm Sewer Systems The diversion pipe conveying West Fork Catron creek flows from Middle Creek Ditch back to the original West Fork Catron Creek channel must be able to convey the 100-year flood flows. 12. Sec. 38.410.130 - Water Adequacy and Water Rights. a. Any useable water rights associated with the property, as determined by the City, must be transferred to the City prior to Final Plat approval. Offsets for the transfer will be available for future development of the property as defined in a water adequacy agreement that must be filed at the Gallatin County Clerk & Recorder along with the Final Plat; b. Water adequacy code requirements will be deferred for all developable lots, and the restricted lot, until future development or subdivision. No cash-in-lieu of water rights will be paid for these lots. A note must be included on the Conditions of Approval Sheet to notify future owners of the restriction pursuant to 38.410.130.C; c. Cash-in-lieu of water right payment must be provided for any irrigation water being supplied by the City’s municipal system for Kagy Boulevard and South 23rd Avenue; and d. Water Rights. Prior to Final Plat approval, the developer must demonstrate in writing that approval has been received from all affected water rights holder, including the Middle Creek Ditch Company and MSU, for the altered irrigation facilities. 13. Sec. 38.550.070. - Landscaping of public lands. a. All irrigation wells located within the boundaries of the development shall include Montana DNRC certificates which shall be provided to the City with the Final Plat submittal or included as a requirement in an improvements agreement if allowed. Ownership of any well and associated water right within the proposed park shall be transferred to the City. The City must review and approve the wells 602 forms. All wells shall include a meter or other device to determine consumption; 136 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 18 of 36 b. The landscaping and irrigation system must be included in the infrastructure submittal for Kagy Blvd. The City’s Water Conservation Department must have the opportunity to review and approve the design prior to construction; and c. All irrigation wells located within the boundaries of the development shall include Montana DNRC certificates which shall be provided to the City with the Final Plat submittal or included as a requirement in an improvements agreement if allowed. Ownership of any well and associated water right within the proposed park shall be transferred to the City. The City must review and approve the wells 602 forms. All wells shall include a meter or other device to determine consumption. The landscaping and irrigation system must be included in the infrastructure submittal for Kagy Blvd. The City’s Water Conservation Department must review and approve the design prior to construction. 14. Sec. 38.410.060.D.1, Agricultural Water User Easements. a. Prior to public infrastructure plan approval (if ditch modifications are proposed in a public right-of-way) or Final Plat approval of the Aaker Phase 1 Major Subdivision, the developer must demonstrate in writing that approval has been received from all affected water rights holder, including the Middle Creek Ditch Company and MSU, for the altered irrigation facilities; b. BMC 38.410.060.D.1.a.2: Easements for agricultural water user facilities: A minimum easement width of ten feet is required on each side of irrigation canals and ditches. The easement for center ditch must extend ten feet on either side from the edge of the facility, not the centerline; c. An agricultural water user’s easement meeting the requirement of 38.410.060.D.1. must be provided with the Phase 1 Final Plat and notice stating that the easements are subject to the requirements of Section 70-17-112, MCA restricting interference with canal or ditch easements and that irrigation works are subject to Section 85-7- 2211 and 85-7-2212, MCA regarding duties and liability, per 38.410.060.D.6. The notice must include language to assure the duties are binding upon all successors in interest and remain in effect until such time that the agricultural water user facility is abandoned in accordance with the requirements of Montana Law or alternative requirements are agreed to in writing by all applicable parties. The easements must be prepared as documents separate from a Final Plat but may be referenced on a Final Plat; and d. The developer's professional engineer must certify, prior to Final Plat approval, that the water entering and exiting the realigned or relocated agricultural water user 137 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 19 of 36 facility is the same quality and amount of water that entered or exited the facility prior to realignment or relocation. 15. Sec. 38.360.280. - Agricultural Water User Facilities: a. With the Final Plat application submittal, written permission from the ditch owner and any downstream water user must be provided to modify a Middle Creek Ditch through the Site. Ditches must provide historical drainage; b. The Applicant must provide written notice to all applicable water users and/or agricultural water facility authorized representatives of the proposed development per BMC 38.360.280.B.1; c. The Applicant must demonstrate that the appropriate representative with Montana State University has been notified of the proposed alterations to the irrigation facility per 38.360.280; d. Per BMC 38.410.060.D.4. - Stormwater discharges to an agricultural water user facility, stormwater from the development must not be discharged to an agricultural water user facility without written approval from the owner of the facility and corresponding stormwater conveyance easement(s). Any required stormwater conveyance easements must be provided with the Final Plat submittal; e. BMC 38.410.070. The diversion pipe conveying West Fork Catron creek flows from Middle Creek Ditch back to the original West Fork Catron Creek channel must be able to convey the 100-year flood flows; f. Pipe Maintenance. The Conditions of Approval Sheet shall include the following text: "The ownership and maintenance of the pipe which diverts the perennial or intermittent and flood flows from the existing irrigation ditch to the west fork of the Catron Creek on the north side of West Stucky Road is the responsibility of the subdivision property owners' association (POA)." ; g. BMC 38.410.060 - Easements: An easement is needed to convey the perennial stream flows and flood flows to the west fork of the Catron Creek. A signed hard copy of the easement must be submitted to the Community Development Department prior to the Phase 1 Final Plat approval. Drafts must be prepared for review and approval by the City. The easement language must allow for the conveyance of perennial stream flows and flood flows to the west fork of the Catron Creek. If the Applicant needs to request changes to the City standard easement template, they must contact the development review engineer assigned to the 138 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 20 of 36 project. If any changes are made to the easement templates, the Applicant must indicate in the document the specific changes when returned to the City and the City legal team must approve any language which deviates from the City standard template; and h. The developer's professional engineer must certify, prior to Final Plat approval, that the water entering and exiting the realigned or relocated agricultural water user facility is the same quality and amount of water that entered or exited the facility prior to realignment or relocation. 16. BMC 38.420.100.A.4 and 38.240.180.A.3. Parklands. a. Applicant to provide deeds and easements for all parklands in Phase 1 at the time of Final Plat; b. Public park improvements must be included in the certificate of public improvements on the Final Plat Certificates Sheet; c. BMC 38.220.060.A.14.b. Park Irrigation. The parkland irrigation must be entirely discrete and separate from any irrigation system that is privately owned and maintained; d. The Applicant must demonstrate that the well-used for irrigating parkland can do so while fitting within any well or water use restrictions at whichever comes first: either 30 days prior to the preconstruction meeting, or with an Improvements Agreement proposal; e. Prior to the City’s final acceptance of public park improvements, the Applicant shall ensure that the City obtains free and clear ownership of any irrigation water rights used to irrigate City parks or City streets; f. If an exempt well is proposed to provide irrigation water supply for the development, a written determination from DNRC shall be provided indicating that the proposed exempt water use is allowable under applicable state law governing the use of exempt wells; g. The Applicant must include this note on the conditions of approval sheet of the Final Plat if parkland has not been fully accepted by the Parks Department prior to Final Plat review: “Although an easement or parkland dedication is required at the time of Final Plat, the Parks and Recreation Department does not assume maintenance responsibility for parkland and improvements until the following have 139 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 21 of 36 been completed after Final Plat: 1) the constructed park meets requirements of 38.420.080 and the approved park master plan; 2) all conditions of approval for the subdivision or park master plan are completed’ and 3) written acknowledgement of final acceptance has been provided by the City”.; h. The Applicant is to include this note on the Final Plat: “Private utilities are not allowed within parkland unless otherwise approved by the Director of Parks and Recreation.”; and i. Final designs for bridges and any related revisions to the park improvements package must be coordinated with the City Park Planner and included in the final park plan submittal. SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS The Development Review Committee (DRC) determined the application was sufficient for continued review and recommended approval with conditions and code provisions on May 23, 2023. The Community Development Board, acting as the Planning Board, met on Monday, July 17, 2023 and by a 6 to 0 unanimous vote, recommended approval of the Aaker Phase 1 Major Subdivision Preliminary Plat with the staff-recommended conditions and code provisions. City Commission meeting will be held Tuesday, August 8, 2023 at 6:00 pm at 121 N Rouse in the City Commission chambers. Electronic access to the meeting will be available as outlined on the published agenda of the meeting. SECTION 6 – STAFF ANALYSIS AND FINDINGS Analysis and resulting recommendations are based on the entirety of the application materials, municipal codes, standards, plans, public comment, and all other materials available during the review period. Collectively this information is the record of the review. The analysis in this report is a summary of the completed review. Applicable Subdivision Review Criteria, Section 38.240.150.B, BMC. In considering applications for subdivision approval under this title, the advisory boards and City Commission shall consider the following: 140 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 22 of 36 1) Compliance with the survey requirements of Part 4 of the Montana Subdivision and Platting Act The preliminary plat was prepared in accordance with the surveying and monumentation requirements of the Montana Subdivision and Platting Act by a Professional Engineer registered in the State of Montana. As noted in the code requirements, the Final Plat must comply with State statute, Administrative Rules of Montana, and the Bozeman Municipal Code (BMC). 2) Compliance with the local subdivision regulations provided for in Part 5 of the Montana Subdivision and Platting Act The Final Plat must comply with the standards identified and referenced in the Bozeman Municipal Code. The subdivider is advised that unmet code provisions, or code provisions not specifically listed as a condition of approval, do not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Sections 3 and 4 of this report identify conditions and code provisions necessary to meet all municipal standards. The listed code requirements address necessary documentation and compliance with standards. Therefore, upon satisfaction of all conditions and code corrections the subdivision will comply with the subdivision regulations. 3) Compliance with the local subdivision review procedures provided for in Part 6 of the Montana Subdivision and Platting Act The Bozeman Planning Board public meeting and City Commission public meetings were properly noticed in accordance with the Bozeman Municipal Code. Based on the recommendation of the Development Review Committee (DRC), the Planning Board, and other applicable review agencies, as well as any public testimony received on the matter, the City Commission will make the final decision on the subdivider’s request. The Department of Community Development received a pre-application review request on November 15, 2022. On December 23, 2022, the Applicant submitted a preliminary plat application and the DRC determined that the submittal did not contain detailed, supporting information that was sufficient to allow for the continued review of the proposed subdivision. A revised application was received on February 3, 2023. The DRC determined the application was adequate for continued review on May 23, 2023 and recommended conditions of approval and code corrections for the staff report. The Applicant posted public notice on the subject property and sent public notice to physically adjacent landowners via certified mail, and to all other landowners of record within 200-feet of the subject property via first class mail on June 28, 2023. The public comment period is June 28 to August 8, 2023. No public comment had been received on this application as of the writing of this report. On August 4, 2023, this major subdivision preliminary plat staff report was completed and forwarded with a recommendation of conditional approval for consideration to the City Commission. 141 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 23 of 36 4) Compliance with Chapter 38, BMC and other relevant regulations Community Development staff and the DRC reviewed the preliminary plat against all applicable regulations and the application complies with the BMC and all other relevant regulations with conditions and code corrections. This report includes Conditions of Approval and required Code Provisions as recommended by the DRC for consideration by the City Commission to complete the application processing for Final Plat approval. All municipal water and sewer facilities will conform to the regulations outlined by the Montana Department of Environmental Quality and the requirements of the Design Standards and Specifications Policy and the City of Bozeman Modifications to Montana Public Works Standard Specifications. The two subdivision variance requests for street exemption and park frontage modifications have been evaluated and are supported by City staff. 5) The provision of easements to and within the subdivision for the location and installation of any necessary utilities The Final Plat will provide and depict all necessary utilities and required utility easements. Code Provisions 9 and 14 require that all easements, existing and proposed, to be accurately depicted and addressed on the Final Plat and in the Final Plat application. Public utilities are located within dedicated street right-of ways. Code Provision 14 requires the provision of agricultural water user facility easements prior to Final Plat approval. Code Provision 14a and 15a require the Applicant to secure written permission from the Middle Creek Ditch Company and all applicable water users for the alteration to the ditch for road crossings and other alterations. 6) The provision of legal and physical access to each parcel within the subdivision and the notation of that access on the applicable plat and any instrument transferring the parcel The Final Plat will provide legal and physical access to each lot within the subdivision. All of the proposed lots will have frontage on public streets constructed to City standards with lot frontage meeting minimum standards shown on the preliminary plat. Per Code Provision 10b, only Lot 1 of Block 1 will be allowed to have physical access from West Kagy Boulevard, a principal arterial roadway. 38.220.060 Documentation of compliance with adopted standards The Development Review Committee (DRC) completed a subdivision pre-application plan review on May 31, 2022 and no waivers from submittal requirements were requested. The pre-application review was Application 22194 and was called West University subdivision, however the project has since been renamed to Aaker Phase 1 Major Subdivision. 142 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 24 of 36 Staff offers the following summary comments on the documents required with Article 38.220.060, BMC. 38.220.060.A.1 – Surface water A Wetland Delineation report was prepared by TerraQuatics for the entire Aaker property and has been included as Appendix M of the application materials. Historically and currently this site has been used for agricultural crop production and grazing. The results of that study show that there are three wetland systems within the Aaker property and all three systems include a non- wetland waterway that appears to convey ground water and Middle Creek Ditch Irrigation Water. Included in the study are several figures and map delineating the wetland systems. The link to the study is found at the highlighted text. Furthermore, those wetland systems are depicted on the Civil Plan Sheets. An Army Corp of Engineers (USACE) 404 permit is currently being prepared to mitigate all USACE jurisdictional wetland impacts with the proposed Aaker Phase 1 Subdivision. Pursuant to Code Provisions 2 and 3, all such permits must be approved and provided to the Community Development Department with the Final Plat submittal. Code Provision 4 assures that the required watercourse setback is provided to the wetlands. The West Fork of Catron Creek runs north south on the western portion of the property, and the East Fork of Catron Creek runs north south on the more eastern side of the property. The West Form is proposed to be diverted to the western wetlands via a diversion pipe. Code Provision 15c protects these creek waters by the following language on the Conditions of Approval Sheet of the Final Plat: "The ownership and maintenance of the pipe which diverts the perennial or intermittent and flood flows from the existing irrigation ditch to the west fork of the Catron Creek on the north side of West Stucky Road is the responsibility of the subdivision property owners' association (POA)." Code Provision 5c requires the following language to be included on the Conditions of Approval Sheet to assure the proper maintenance of private stormwater facilities: "The maintenance of all subdivision stormwater facilities outside the public right-of-way, including stormwater facilities within the park parcel, is the responsibility of the subdivision property owners’ association (POA). The maintenance of all private lot stormwater facilities is the responsibility of the private lot property owners' association (POA)." 143 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 25 of 36 38.220.060.A.2 - Floodplains A Flood Hazard Evaluation (FHE) has been completed and the results of that study are included as Appendix N of the preliminary plat application materials. The existing conditions model results show that the 100-year inundation area is mostly contained within the area that was also delineated as wetlands and is within the 50’ watercourse setback area. The results of the model for the proposed conditions show that there is some backwater created by the new road crossings for Kagy Blvd., but that the additional flooded area is within the watercourse setback and on the subject property. A comparison of the existing conditions and proposed conditions are included in the FHE study. 38.220.060.A.3 - Groundwater Groundwater monitoring was conducted throughout the 2022 season and is provided in the Geotechnical Report Appendix O of the preliminary plat materials. Depth to seasonal high groundwater varied from near the surface in the wetlands to about 3-4’ below ground at the proposed lots. Groundwater is generally flowing to the north. Proposed street and lot grading will raise the developed portions of the site approximately 2-3’ resulting in a typical depth to seasonal high groundwater in developed areas of about 5-7’. Due to the high groundwater, Code Provision No. 5a requires the following language on the Conditions of Approval Sheet of the Final Plat: "This is a known area of high groundwater. No crawl spaces or basements may be constructed. Sump pumps are not allowed to be connected to the sanitary sewer system. Sump pumps are not allowed to be connected to the drainage system. Water from sump pumps may not be discharged into streets, such as into the curb and gutter where they create a safety hazard for pedestrians and vehicles.” 38.220.060.A.4 - Geology, Soils and Slopes Allied Geotech conducted a field investigation of the site in 2021 and developed recommendations for development of the site in a report dated August 2022. A copy of that report is included in this application as Appendix O of the preliminary plat application materials. Geologic Hazards There are no known natural geologic hazards on the property. The property is comprised of an undeveloped agricultural field that is mostly flat, falling slightly to the north at less than 2 percent. This site does experience high ground water which is not uncommon for Bozeman. Due to this factor several building recommendations have been provided to mitigate any future development. 144 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 26 of 36 Unusual Features The property has wetlands, an agricultural irrigation ditch and has high groundwater. There are no slopes greater than 15% on site. Soils Map A soils map and NRCS soil information is included in the Geotechnical Report. Cuts and Fills It is not anticipated that cuts or fills will exceed 3’ for the project. 38.220.060.A.5 - Vegetation The Montana Natural Heritage Program (MTNHP) maintains a statewide database for natural and human land cover. The property is shown to consist of: Rocky Mountain Lower Montane, Foothill, and valley grassland; and Cultivated Crops. Additionally, the MTNHP identities two emergent wetlands onsite which have been depicted on all of the civil drawings and further studied in the Surface Water Report & Floodplain study (see Exhibit 8 below). The existing wetland will be preserved in parkland: Block 1, Public Park A lot for Phase 1 and an un-named Block and Lot in the current Tract B for future phases. The wetland impacts are limited to two road crossings and a park trail which are required by City codes. These impacts will be mitigated through the US Army Corp of Engineers (USACE) permitting process. If the USACE determines the wetlands are jurisdictional under their authority. If the wetlands are determined to be non-jurisdictional by USACE, the City wetland code provisions of BMC 38.610.010 must be satisfied prior to Final Plat approval (see Code Provisions 2, 3 and 4). 145 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 27 of 36 Exhibit 8: Existing wetlands and ditch on the Site 38.220.060.A.6 - Wildlife This subdivision will not significantly impact wildlife. 38.220.060.A.7 - Agriculture The property has been in agricultural operation in recent history. This subdivision, in and of itself, is not expected to have an adverse effect on surrounding agricultural operations. 38.220.060.A.8 - Agricultural Water User Facilities Middle Creek Ditch runs through the property. The Applicant notified Middle Creek Ditch Company of their intentions to develop the property and underground the creek through the property (see Appendix AA) of the preliminary plat application materials. Tentative approval for this activity has been given to the Applicant by the Middle Creek Ditch Company and Code Provisions 14 and 15 require written approval from the Ditch Company and downstream water users prior to Final Plat approval. 38.220.060.A.9 - Water and Sewer The subdivision will not significantly impact City water and sewer infrastructure. Water and sewer improvements will be designed to meet City of Bozeman Standards and State Department of Environmental Quality Standards and Regulations. Per Code Provision 11, the diversion pipe conveying West Fork Catron creek flows from Middle Creek Ditch back to the original West Fork Catron Creek channel must be able to convey the 100- year flood flows. ditch 146 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 28 of 36 Code Provision 12 assures water adequacy to the Site and assures water rights to the City. Code Provision 13 assures water adequacy and water rights related to landscaping of public lands within the proposed Park. 38.220.060.A.10 - Stormwater Management The subdivision will not significantly impact stormwater infrastructure. 38.220.060.A.11 - Streets, Roads and Alleys At full buildout of Phase 1, the Aaker development is projected to generate 3,442 gross average weekday trips, with 251 trips (89 entering/162 exiting) generated during the AM peak hour and 315 trips (176 entering/139 exiting) generated during the PM peak hour. Tract B is the Restricted Development Lot and any development thereon would have a new subdivision and a Traffic Impact Study (TIS) associated with proposed development therein. Phase 1 (2026) capacity results with the existing street network show similar results at all intersections compared to Existing Conditions (2022), except for the Kagy Boulevard/South 11th Avenue intersection. That intersection is projected to operate at LOS D on average during both peak hours with LOS D or worse on the Kagy Boulevard approaches. The northbound approach at the Kagy Boulevard/South 7th Avenue intersection is projected to worsen to LOS E during both the AM and PM peak hours. The proposed new site access intersections on Kagy Boulevard will be stop-controlled and are all projected to operate at LOS A during both peak hours. The results of the Future (2037) intersection capacity calculations show that delay and 95th percentile queuing is projected to become extreme at the Kagy Boulevard/South 11th Avenue intersection, particularly on the east and west approaches. The Kagy Boulevard/South Willson Avenue intersection is projected to worsen to LOS D and E on multiple approaches with extremely lengthy queues on most approaches during both peak hours. The South 19th Avenue/Kagy Boulevard is anticipated to improve from LOS D to LOS C on the westbound approach in the AM and worsen to LOS D on the southbound approach in the PM. The South 19th Avenue/West College Street and South 19th Avenue/West Garfield Street intersections are projected to continue to operate at a failing LOS on both the eastbound and westbound approaches. At the stop- controlled intersection of Kagy Boulevard/South 7th Avenue, the northbound and southbound approaches are projected to operate at a failing LOS. All other intersections and approaches, including the new site access intersections, are projected to operate at LOS C or better during both peak hours. This is a link to the TIS: 147 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 29 of 36 The TIS recommended the following Capacity Improvements: South 19th Avenue/West College Avenue: West College Street and Kagy Boulevard intersections showed little improvement, with both projected scenarios to remain at LOS D on the east and west legs. It is recommended, due to existing and projected future capacity conditions, that the timing and coordination plan for the entire corridor be reevaluated by MDT/the City of Bozeman to maximize capacity and ensure efficient and safe operations. South 19th Avenue/West Garfield Street: Without impacting the coordination plan along South 19th Avenue, some minor signal timing changes were evaluated in the corridor. The South 19th Avenue/West Garfield Street intersection can be improved to operate at LOS C or better on all approaches through minor timing changes for the 2026 scenario and remains LOS D in the AM for the Future (2037) scenario. South 19th Avenue/Kagy Boulevard: Minor timing changes and the addition of an eastbound right-turn overlap phase were shown to slightly improve delay for the Phase 1 (2026) scenario, with the east and west legs still operating at LOS D. In the Future (2037) scenario, dual southbound left-turn, and dual westbound right-turn lanes will likely become necessary due to extremely large volumes projected to perform those movements. Other associated changes would include two receiving lanes on the east leg and retiming the signal to provide a protected-only phase for southbound left turns. It was also found that removing the pedestrian phases crossing South 19th Avenue resulted in improved delay metrics. Both Condition of Approval No. 3 and Code Provision No.10 require the Applicant to pay their fair share of improvements to the street network anticipated to be impacted by the subdivision development. With those requirements, the Aaker Phase 1 Subdivision is not expected to adversely impact the City’s street infrastructure and will provide adequate improvements to support the development and the existing neighborhoods by completing the street grid in the area. Per Code Provision 6, street names must be reviewed and approved by the County's geographic information systems and City Engineering Department prior to Final Plat approval. The Applicant must submit written approval from both entities with the Final Plat application. Per Code Provision 10b, Block 1, Lot 1 is the only lot fronting on West Kagy Blvd that will be allowed physical access to and from that street as it is bordered by the Public Park A on its north and east sides and by MSU Ag land on its west side. It is noted that the requested subdivision variance from BMC 38.400.010.A.1 to allow Remington Way to terminate at South 25th Avenue and not continue to the western boundary of the subdivision is supported by City staff (see Section 2 above). The preliminary plat provides a 60’foot wide street easement through the Public Park A lot in lieu of a developed street. This is to avoid 148 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 30 of 36 encroaching on the wetland through the Park unless the MSU lands to the west is developed and an extension of Remington Way is necessary. 38.220.060.A.12 – Non-Municipal Utilities The Applicant has received confirmation of future service from Northwestern Energy and internet providers. 38.220.060.A.13 - Land Use The subdivision will not significantly impact land use. The Phase 1 subdivision will create 7 buildable lots which are expected to accommodate a mix of townhomes, rowhouses and mixed- use apartments over commercial space. This Phase 1 of the Aaker subdivision proposes construction of a 10,000 square-foot community center, 250 mid-rise apartment units, 104 single- family attached housing units, and 136 mid-rise apartment units with 20,000 square-feet of commercial/office uses on the first floor. In total, there are 490 proposed residential units. An 8.84- acre public park is also proposed. The development is anticipated to be completed in phases, with all of Phase 1 constructed by 2026. Exhibit 9: Proposed land use map. 149 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 31 of 36 Exhibit 10: Land Use Table 38.220.060.A.14 - Parks and Recreation Facilities As noted above and shown on Exhibit 6, the subdivision will provide an 8.84 acre City Park. Code Provision No. 16 assures that the park will be properly dedicated to the City with proper improvements and water supply. It is noted that the Park is bordered on its north and west side by private property owned by MSU and street frontage cannot be provided on those sides via this subdivision. The Applicant has requested a subdivision variance to exempt the park from street frontage on those sides; this is supported by City staff (see Section 2 above). 150 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 32 of 36 38.220.060.A.15 - Neighborhood Center Plan The subdivision Park Master Plan provides a neighborhood center in the Public Park A lot as shown below in the yellow box. Exhibit 11: Neighborhood Center shown in the yellow box 38.220.060.A.16 - Lighting Plan The subject property is located within the Meadow Creek Subdivision Signal and Sewer payback district boundaries. If the subject property did not participate in the original cost of construction 151 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 33 of 36 of improvements the subject property will be accessed a payback charge prior to Final Plat approval. Staff recommends Code Provision No. 8 to assure proper street lighting. 38.220.060.A.17 - Miscellaneous The proposed subdivision is not located within 200 feet of any public land access or within a delineated Wildland Urban Interface area. No health or safety hazards on-site or off-site will be created with this development. 38.220.060.A.18 - Affordable Housing It is not anticipated that affordable housing, as defined by BMC 38.700.020, is provided. 38.220.060.A.19 – Adopted Growth Policy This proposal furthers relevant adopted growth policies of the Bozeman Community Plan. The subdivision is zoned REMU and B-2M. Refer to Appendix A below, Project Site Zoning and Growth Policy for further discussion on the adopted growth policies this proposal positively addresses. APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY Zoning Designation and Land Uses: The subject property is zoned REMU, Residential Emphasis Mixed-Use and B-2M, Community Business District – Mixed. Adopted Growth Policy Designation: Table 4 of the Bozeman Community Plan 2020 shows the correlation between future land use map designations and implementing zoning districts. The property is designated Community Commercial Mixed Use on the Community Plan Future Land Use Map and REMU zoning is one of the implementing zoning districts for that land use designation. The subject property responds to the following Growth Policies of the Community Plan. The following goals and policies of the Community Plan are addressed by this proposed subdivision. · Theme 2 – A city of unique neighborhoods · Goal N-1: Support well-planned, walkable neighborhoods · N-1.5 Encourage neighborhood focal point development with functions, activities, and facilities that can be sustained over time. Maintain standards for placement of community 152 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 34 of 36 focal points and services within new development. · N-1.7 Review and where appropriate, revise block and lot design standards, including orientation for solar power generation throughout city neighborhoods. · N-1.9 Ensure multi-modal connections between adjacent developments · N-1.10 Increase connectivity between parks and neighborhoods through continued trail and sidewalk development. Prioritize closing gaps within the network. · N-2.3 Investigate and encourage development of commerce concurrent with, or soon after, residential development. Actions, staff, and budgetary resources relating to neighborhood commercial development should be given a high priority. · Goal N-4: Continue to encourage Bozeman’s sense of place. · N-4.2 Incorporate features, in both public and private projects, to provide organization, structure, and landmarks as Bozeman grows. Aaker is envisioned as a well-planned walkable neighborhood. The site has been designed to use the proposed park as a focal point for this first phase of the project. Multi-modal connections are envisioned through the project to connect back to this focal point. The project will contribute to the sense of the place of this area of the community by prioritizing and enhancing/expanding the outdoor recreation amenities that exist in this area. · Theme 3 - A City Bolster by Downtown and Complimentary Districts · Goal DCD-1: Support urban development within the City. · DCD-1.5 Identify underutilized sites, vacant, and undeveloped sites for possible development or redevelopment, including evaluating possible development incentives. · DCD-1.12 Prioritize the acquisition and/or preservation of open space that supports community values, addresses gaps in functionality and needs, and does not impede development of the community · Goal DCD-3: Ensure multi-modal connectivity within the City. · DCD-3.1 Expand multi-modal accessibility between districts and throughout the City as a means of promoting personal and environmental health, as well as reducing automobile dependency. · DCD-3.2 Identify missing links in the multi-modal system, prioritize those most beneficial to complete, and pursue funding for completion of those links. · DCD-3.3 Identify major existing and future destinations for biking and walking to aid in prioritization of route planning and completion. The project includes open space and parks to compliment the surrounding neighborhoods and future adjacent commercial centers. This site also prioritizes multi-modal connections enhancing the pedestrian connections to adjacent neighborhoods. · Theme 4 - A City influenced by our Natural Environment, Park and Open Lands · Goal EPO-2: Work to ensure that development is responsive to natural features. · EPO-2.1 Where appropriate, activate connections to waterways by creating locations, adjacent trails, and amenities encouraging people to access them. 153 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 35 of 36 The Aaker Neighborhood has been designed to protect the adjacent wetlands. The two wetlands on the Site will be dedicated parklands. Rather than looking at these wetlands as a challenge, the Applicant states that he seeks to enhance them, as well as activate areas adjacent to them. · Theme 5 - A City That Prioritizes Accessibility and Mobility Choices · Goal M-1: Ensure multi-modal accessibility. · M-1.4 Develop safe, connected, and complementary transportation networks for pedestrians, bicyclists, and users of other personal mobility devices ( e-bikes, electric scooters, powered wheelchairs, etc.). · M-1.5 Identify locations for key mobility hubs (e.g., rideshare drop off/ pick up areas, bike/scooter share, transit service, bike, and pedestrian connections). · M-1.9 Prioritize and construct key bicycle infrastructure, to include wayfinding signage, connections, and enhancements with emphasis on completing network connectivity. · M-1.11 Prioritize and construct key sidewalk connections and enhancements. · Goal M-2: Ensure multi-modal safety. · M-2.5 Develop safe crossings along priority and high utilization pedestrian and biking corridors. While the project has been designed with safe streets and access for pedestrians and bikers, it is also comprehensively planned for auto vehicles with sufficient parking throughout. In addition, the two City Parks provide for easy and safe pedestrian and bike connections throughout the project and to adjacent neighborhoods as well. APPENDIX B – DETAILED PROJECT DESCRIPTION Project Background and Description This major subdivision preliminary plat application is submitted by the Applicant, West University LLC, by Barry Brown, 109 East Oak Street, Suite 2B, Bozeman, MT 59715. Tyler Steinway of Intrinsik Architecture is his representative, 106 East Babcock Street, Suite 1A, Bozeman, MT, 59715. APPENDIX C – NOTICING AND PUBLIC COMMENT Notice was provided at least 15 and not more than 45 days prior to the August 8th close of the public comment period/City Commission public meeting per BMC 38.220.420, The City scheduled public notice for this application on June 28, 2023 and the Applicant posted public notice on the subject property and sent public notice to physically adjacent landowners via certified mail, and to all other landowners of record within 200-feet of the subject property via first class mail. No comments have been received as of the date of this report. The City Commission meeting scheduled for August 8, 2023 was formally postponed on August 8th to the August 15th Commission meeting. 154 22311; City Commission Staff Report for Aaker Phase 1 Major Subdivision Preliminary Plat Page 36 of 36 APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF Owner: West University, LLC, Barry Brown, 109 East Oak Street 2B, Bozeman MT, 59715 Representative: Intrinsik Architecture, Tyler Steinway, 106 E Babcock Suite 1A, Bozeman, MT 59715 Report By: Susana Montana, Senior Planner FISCAL EFFECTS Fiscal impacts cannot be determined at this time, but it is expected that property tax would be generated by development of the Site and increased costs to provide municipal services for that development would be expected. No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this subdivision. ATTACHMENTS The full application and file of record can be viewed digitally at this highlighted text or via the “Project Documents Folder” and navigate to application #22311, as well as digitally at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. If public comment is provided, it may be accessed via the highlighted text. 155 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Renata Munfrada, Community Housing Coordinator Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Public Hearing on Resolution 5505 - Resolution Approving the Lumberyard Project in the Bozeman Midtown Urban Renewal District as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Having considered public comment and all information presented, I move to adopt Staff's findings in the Commission Memorandum and approve Resolution 5505. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:Please see attached Commission Memorandum. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Please see attached Commission Memorandum Attachments: Commission Memorandum Lumberyard 20230815 v.2.docx Resolution approving Lumberyard project.docx BZN Development Agreement.Lumberyard.v5.docx Bozeman Baker Tilly Lumberyard Flats Request for Assistance Financial Review summary memo update 071723.docx 230724 Virga Capital TIF Application.pdf Report compiled on: August 9, 2023 156 Commission Memorandum REPORT TO:Honorable Mayor and City Commission FROM:David Fine, Economic Development Program Manager Renata Munfrada, Community Housing Coordinator Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Public Hearing for Resolution 5505 - A Resolution Approving the Lumberyard Project in the Northeast Urban Renewal District as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues or Tax Increment Revenue Bonds to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Action RECOMMENDED MOTION: Having considered public comment and all information presented, I move to adopt Staff's findings in the Commission Memorandum and approve Resolution 5505. Executive Summary The Lumberyard development consists of two development projects by two separate developers. Virga Capital is installing public infrastructure that serves both developments. Virga Capital also plans to build The Lumberyard Flats, a 285-unit market rate apartment project “East Block” of the property, located just east of the newly constructed N. 14 th Ave. Reuter Walton Development is currently under contract to purchase the “West Block” parcel of land from Virga Capital to develop the 14 th and Patrick Apartments, a 155-unit low-income housing tax credit (LIHTC) project with 50 years of required affordability. The Lumberyard projects – The Lumberyard Flats (Market Rate) and 14 th and Patrick Apartments (LIHTC) – complement each other. The market rate project, the Lumber Yard Flats, is taxable and generates new tax increment that will reimburse public infrastructure and other costs for which tax increment financing (TIF) may be used. LIHTC projects traditionally apply for tax exemption, and pay no taxes, which makes them ill-suited to use TIF as a source of funds. The market rate units create new taxable value as a source of repayment for installing necessary public infrastructure to serve both 157 parcels. The LIHTC units harness equity from federal tax credit allocations and other sources of funds to ensure long-term affordability. This Memorandum focuses on an application to the Midtown TIF Assistance Program from Virga Capital for The Lumberyard Flats market rate project. Staff recommends that the City Commission adopt Resolution 5505 and the associated development agreement, which provides $7,581,061 in TIF assistance to Virga Capital to cover TIF eligible costs and for placing a restrictive covenant on the west block parcel, the 14th and Patrick LIHTC project,to ensure long-term affordable workforce housing. Figure 1 -The affordability restricted West Block is being developed by Reuter Walton as a 155-unit LIHTC project. The East Block is being developed as a 285-unit market rate project. Virga Capital is installing all the public infrastructure that serves both projects. Staff Recommendation The City Commission created the Midtown Urban Renewal District in 2006 with the vision of a walkable pedestrian centric area with compact urban density. The Commission adopted 2017 Midtown Action Plan reinforced this vision and named five elements for targeted redevelopment that would help implement the urban renewal plan. These targeted private investment elements included 1) infill, 2) increased building density, 3) encouraging multimodal transportation, 4) retail that serves surrounding residents, and 5) providing housing to support commerce in the area. These goals are represented in the criteria for the Midtown TIF Assistance Program, whose goal is to promote projects that meet these criteria, drive growth in taxable value, and create demand for market driven redevelopment. At this phase of Midtown’s redevelopment lifecycle, few projects containing the target elements are financially feasible, but for TIF incentives. Incentives may create the potential for higher returns to mitigate higher risk, which will likely attract investment that would not occur without these incentives. Bozeman struggles, given current market dynamics, to facilitate the construction of workforce housing at attainable prices. Recently approved urban renewal projects with a major housing 158 component, such as the Ruh Building and Aspen Crossing required significant assistance to attain feasibility as market rate projects. The addition of workforce units makes the projects even more difficult. The 9TEN urban renewal project became financially untenable and did not proceed. Market Rate Housing Virga Capital’s Lumberyard Flats Project provides market rate rentals by using multiple sources of funding including local and federal sources to create a project with market rate rentals and workforce housing. Virga Capital is undertaking the horizontal development and installation of major public infrastructure. Virga Capital also plans to complete the taxable portion of the project with 285 proposed market rate units. Workforce Housing Virga Capital is also delivering on the community need for workforce units by selling one of the new lots created by the installation of public infrastructure to a developer that plans to build long-term workforce housing. To ensure long-term affordability, the City will require a restrictive covenant that runs with the land on the “West Block” affordable parcel to require affordability of at-least 60% AMI for 30 years for at-least 90 units. The restrictive covenant sets a floor of a least 90 units with 30-year affordability. The likely purchaser of the West Block, Reuter Walton Development, has submitted a site plan application for review [Application, 23170], which proposes 155 units of LIHTC housing with 50-year affordability. The contractual floor of 90 units reflects other conversations that the Developer, and city staff have had with other LIHTC developers regarding the site. It represents a minimum that both parties hope to exceed. Midtown TIF Assistance Program Review The Midtown TIF Assistance Program allows the payment of eligible costs of development to incentivize development that meets the goals of the Midtown Urban Renewal Plan. The applicant identified several eligible cost areas totaling $9,639,613.Staff scored the application based on the program criteria. Based on our review and the application materials presented, the project received 34 of 55 available points. The application scored points toward five of five goals of the Midtown Urban Renewal Plan. In particular, the project advances the District goal of creating urban density land uses and providing increased housing stock within the District to drive further development. Third Party Review of the Request for TIF Assistance The appropriate use of public funds necessitates careful financial review of requests for TIF assistance. To ensure that the level of assistance makes the project feasible, but does not provide unreasonable returns to the developer, staff consulted with Baker Tilly (BT) to provide a third-party assessment of the development pro forma. Staff contracts for this component of the review process to independently assess the reasonableness of each applicant’s incentive request. Baker Tilly completed a financial analysis of the project to help staff evaluate the application for creation of new taxable value. Their report helps staff determine whether the project meets the District’s goals related to return on investment (ROI), estimated payback period for the public assistance and proposed target metrics for the ratio of private to public investment. The Midtown TIF Assistance Program targets a private to public investment ratio of 10:1 or greater for multi-family projects; the ratio for this project is greater than 14.4:1 for the taxable portion of the project and much higher if the non- 159 taxable LIHTC project is included. For every one dollar of public investment, over 14 dollars of private investment is made into the project.The greater than 10:1 ratio represents a good value for the public of private investment harnessed by public investment. Baker Tilly also created a tax generation model for the Midtown URD. According to their model, the project would produce net new annual taxes of at least $421,745, which would allow TIF assistance to be paid back in 17.85 years without accounting for the cost of capital. We note that the developer estimates that new annual taxes from the project as closer to $900,000 annually. This expectation gap makes a pay-go structure – ongoing payments paid as a percentage of project-generated tax increment - particularly well-suited for the project. If developer assumptions on tax payments are more accurate, they will be repaid more quickly; the District, however, does not need to cover debt service based on best- case-scenario assumptions. Staff finds that the project is consistent with Midtown TIF Assistance Program criteria and is a acceptable use of public funds. Baker Tilly found that $7,581,061 is an appropriate level of incentive to mitigate the costs of public infrastructure and other TIF eligible costs for the project. The project meets several goals of the urban renewal plan and makes productive use of a poorly located piece of property. Given that this project includes at least 90 units of covenant restricted workforce housing, and restrictions on short term rentals, and Baker Tilly has identified an appropriate level of incentive, Staff recommends that the City Commission designate the project as an urban renewal project and approve the associated development agreement with up to $7,581,061 in tax increment financing assistance. Required Findings The Montana Urban Renewal Law requires, as a criterion for approval of an urban renewal project, that the City Commission make the following findings. These findings are included in Resolution 5505 in Section 3. Staff’s makes the conclusions regarding these findings. a.A workable and feasible plan exists for making available adequate housing for the persons who will be displaced from their housing by the Project; No persons are displaced by the Project. The site of the Project does not have residential development at this time. b.The Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; The Project was found by Staff and the Midtown Urban Renewal Board to conform with the Midtown Urban Renewal Plan (the “Plan), and the Plan has been found by the Bozeman City Commission to be in conformance with the Bozeman Community Plan. c.The Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; The Project represents a significant investment by private enterprise in the redevelopment of the District. 160 d.Taking into account the use of tax increment revenues or the proceeds of tax increment revenue bonds to pay or reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and The Development Agreement only calls for reimbursing the Developer with tax revenue that is actually generated by the project, which represents a sound and adequate financial program. e.The Project constitutes an urban renewal project within the meaning of the Act and the Plan. The Project was found by Staff and the Midtown Urban Renewal Board to conform to the Midtown Urban Renewal Plan (the “Plan), and the Project meets the requirements for an Urban Renewal Project under the Act. Fiscal Effects: The proposed Development Agreement provides for $7,581,061 in TIF eligible cost. It includes a provision for a $2 million reimbursement of eligible costs following acceptance of the public infrastructure and placement of the affordability covenants on the west block LIHTC parcel. The Fiscal Year 2024 Work Plan and Budget for the Midtown Urban Renewal District includes $2 million for a workforce housing project. Repayment of the remaining $5,581,061 using project generated tax increment will require future appropriations of Midtown URD funds. TIF Assistance Program Overview and Criteria Review The Bozeman City Commission created the Midtown TIF Assistance Program in 2017 to support redevelopment activity and advance the goals of the 2015 Midtown Urban Renewal Plan. The City Commission amended the Program in January 2019. The Midtown TIF Assistance Program supports projects that contribute to the following five goals of the Midtown Urban Renewal Plan: 1) Promote economic development; 2) Improve multimodal transportation; 3) Improve, maintain, and support innovation in infrastructure; 4) Promote unified, human scale urban design; and 5) Support compatible urban density mixed land uses. These goals, as required by statute, focus on mitigating blighting conditions in the urban renewal area. Each of these five goals is further refined with particular criteria for a total of seventeen categories that can receive points. Designation of a project as an urban renewal project is a legislative act. Point awards demonstrate specific compliance with the criteria but are not the only factors the City Commission may consider in recommending an incentive award. For example, the City Commission may also consider new taxable value created by the project, whether the project would be feasible without a public incentive, and the project’s provision of amenities and services that contribute to walkability and quality of life in the district and surrounding neighborhoods. Criteria for TIF Assistance Goal Number 1: Promote Economic Development 161 1. Tax Generation: The project will increase the taxable value within the District. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor’s office or State Department of Revenue to determine tax increment generation. Submit documentation of estimated tax projections to receive points for these criteria. The project catalyzes development on land that has not been developed due to infrastructure constraints, complex legacy planned unit development rules that needed to be unwound and challenging ownership issues. Based on Baker Tilly’s report, we expect annual net new tax revenue between $421,745 and $709,469. The Developer is expecting more than $900,000 per year in annual taxes. At any level, this represents a massive increase in taxable value for the district. [4 of 4] 2. Elimination of Blight: The project’s direct and indirect impact on the physical and fiscal deterioration within the Tax Increment Financing District and the community. Projects that redevelop underutilized properties will be given priority. The characteristics of an underutilized site include land on which development occupies only a small amount, and/or land or buildings that are or have been vacant for some time. Submit information showing current conditions of property. The project is proposed on undeveloped infill parcel with significant development challenges. The lack of appropriate public infrastructure in this urban setting meets 3 criteria related to the statutory definition of blight including, “substantially impairs or arrests the sound growth of municipalities”; “retards the provision of housing accommodations”; and “aggravates traffic problems”. The public infrastructure installed for the project includes the northward extension of N. 15th Ave., a collector, to Tschache Ln., an important through street providing additional east-west connectivity. [3 of 4] 3. Employment Generation: Total employment generated by the project assessed in terms of new permanent and part-time jobs, and construction jobs. Submit documentation of estimated new jobs to receive points for this criterion. Long-term employment generation at the site will be minimal, with the primary employment driver being temporary construction jobs. The applicant did not provide sufficient documentation to support this criterion. [0 of 3] Goal Number 2: Improve Multi-Modal Transportation 4. Facilitates Public Health and Mobility:Project will construct or improve ADA access to and within existing structures. Provide detailed information demonstrating that the current condition inhibits public health and mobility and the proposed improvements benefit accessibility. There are no existing structures on the property to which ADA access could be provided. [0 of 1] 162 5. Reduces Resource Demand:Project promotes the use of transit, ride sharing, or car sharing. Provide plans, agreements or other methods to demonstrate reduction of resource demand. The project does not provide adequate documentation to support this criterion. [0 of 1] 6. Promotes Active Transportation:Project promotes bicycling as an active transportation option by constructing or improving bike lanes, providing covered bike parking, and/or participating in a bike share program. Provide plans, agreements or other methods that demonstrates the project goes beyond the minimum Bozeman UDC requirements for site development. “The project promotes bicycling as an active transportation option, specifically for exercise on paths near and through the site and for accessing the N 19th Avenue commercial corridor. The project will include ample bicycle parking for residents, visitors, and employees. 11th Avenue and 15th Avenue as collectors include bike lanes. The proximity of the site to neighborhood services encourages active transportation.” The extension of the multi-use path on Tschache Ln. and the installation of the bike lane on N. 15th Ave. qualifies the project for points under this criterion. [2 of 2] Goal Number 3: Improve, Maintain, and Support Innovation in Infrastructure 7. Infrastructure Improvements:Project promotes innovation in infrastructure and/or reduces long term costs of maintenance. Examples include low impact development for Stormwater, incorporation of green roof design into building architecture, or car charging stations. Low impact development (LID) incorporates designs such as bio retention facilities, rain gardens and permeable pavers. Does the project enable better connectivity or provide critical infrastructure for the community? Provide plans and descriptions of innovations proposed. Staff supports the Applicant’s description of the project’s infrastructure improvements: The project includes both innovation in infrastructure as well as reduction of long-term maintenance. We have low-impact development for Stormwater, as well as car charging stations. Our LID features include bio-retention facilities and permeable pavers. The project enables better connectivity as current right-of-ways do not exist and the project has a … shared- use path extending east-west connecting two existing trails. The project provides long-awaited key connections of the 11th Avenue & 15th Avenue to Tschache and the N. 19th Avenue commercial corridor. These connections allow continued connectivity and future development in the area of the TIF district. [2 of 2] Goal Number 4: Promote Unified Human Scale Urban Design 163 8. Vehicular Access Points: The project reduces the number of vehicular access points to the property and improves the pedestrian experience. Provide plans, agreements or other methods to demonstrate reduction. The project does not currently have vehicular access points and, therefore, cannot reduce them. [0 of 2] 9. Street Orientation: The project enhances the North 7th Ave. entryway corridor by having buildings oriented toward the street and designed to provide interest and activity. The project does not front the N. 7th Ave corridor and is not eligible for points under this criterion. [0 of 2] 10. Pedestrian Experience: The project enhances the pedestrian experience by using a storefront block frontage (BMC 38.510) as a component of the project. Key elements of the frontage would include façade transparency, building articulation, street furniture and/or landscaping. Submit plans and details that address this criterion. The project enhances the pedestrian experience through the addition of a multi-use path. It does not utilize a storefront block frontage. [1 of 2] 11. Quality of the Development Exceeds Minimum Requirements:The quality of development and overall aesthetics (architectural, site design, landscaping, etc.) are beyond that which is minimally required by the UDC. Provide a narrative and submit documentation to demonstrate compliance with this criterion. Staff concurs with the Applicant’s description of compliance with this criterion: The design intends to exceed the Bozeman UDC requirements to deliver a vibrant, cohesive neighborhood comprised of multifamily and LIHTC housing. Additionally the project promotes walkability and connectivity via multiple pathways and delivers ample open space across the landscaped site for residents to enjoy. [1 of 1] Goal Number 5: Support Compatible Urban Density Mixed Land Uses 12. Increases Housing Units: The project increases housing units within the District. Submit plans demonstrating an increase in the number of housing units. 164 The project proposes 285 conventional apartment units and at least 90 workforce housing units meeting the City’s definition of affordable rentals for a total of 375 new housing units. The development includes a mix of studio, one-bedroom, two-bedroom, and three-bedroom floorplans. [6 of 6] 13. Mix of Uses Including Residential: The project is a mix of residential and commercial. Commercial uses include retail, restaurant, office and services. Hotels would not be supported unless included with a project that included residential development. Submit plans detailing the proposed mix of uses within the project. The overall development includes a cohesive residential community that serves multiple income levels. However, there are no commercial uses within the project. [0 of 6] 14. Shared Parking: The project shares parking among compatible uses. Provide details demonstrating compliance with the UDC and as well as total number of parking spaces reduced because of a shared arrangement. The project does not have a formal shared parking agreement or lend itself to compatible shared uses of parking. [0 of 2] 15. Affordable Dwelling Units: The project provides affordable dwelling units. For the purposes of this criterion, an affordable dwelling unit is defined as a unit that requires no more than 33 percent of a household’s income for housing payments based on a designated percentage of area median income (AMI). Eligible rental units shall be affordable at 80% AMI and eligible for sale units shall be affordable at 120% AMI, as defined by the most recent Affordable Housing Ordinance. Condominium units are eligible as for sale units. Additional points may be awarded for projects that provide on-site housing for the proposed workforce. Eligible rental dwellings to be constructed in the proposed residential development shall be provided by long-term contractual obligation to an affordable housing agency, for a period of not less than 30 years,with a written plan assuring ongoing affordability guidelines and subsequent revisions establish affordability and eligibility. To receive 3 points under this criterion, 10% of all units must meet the affordability criteria. To receive 6 points under this criterion, 20% of all units must meet the affordability criteria. The project includes conventional multifamily housing and Low-Income Housing Tax Credit (LIHTC) housing. The West Block will restrict affordability by covenant that runs with the land and deliver a minimum of 90 working housing units meeting the City’s definition of affordable rentals at 60% AMI for a period of 30 years from the certificate of occupancy. There is currently a LIHTC developer under contract to provide the units and if that contract falls through, the land will continue to be restricted for 165 affordable housing. As a result, the Lumberyard project will have a least 24% long-term affordable units and will satisfy this criterion. [6 of 6] Overall District Relevance 16. Relevance to the Midtown Urban Renewal Plan: Documentation of the project’s impact in relation to the goals and objectives of the Midtown Urban Renewal Plan, particularly mixed-use development. Urban design elements are also considered, including pedestrian emphasis and quality of design. The Applicant demonstrates that the Lumberyard Flats Project meets all 5 goals of the Midtown Urban Renewal Plan. In addition, the project serves the number one focus area of the Midtown Action Plan, which is to build housing adjacent to the corridor to add the urban density that is necessary to support vibrant and walkable commercial centers. The high number of workforce housing units, including at least 90 and possibly 155 units of affordable housing is of particular benefit in providing long-term affordability for the City as a whole. [5 of 5] 17. Private / Public Investment Ratio: The investment of public funds in the project results in a leverage ratio of at least 10:1 for multifamily, 8:1 for commercial, or 5:1 for family wage jobs. The investment of public funds results in a 14.4:1 leverage ratio. [4 of 4] Total Points (34/55) 166 RESOLUTION NO. 5505 RESOLUTION APPROVING THE LUMBERYARD PROJECT IN THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01.Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1685 adopted by the Commission on November 27, 2006, as amended by Ordinance No. 1925, adopted by the Commission on December 16, 2015 (collectively, the “Ordinance”), the City has created the Bozeman Midtown Urban Renewal District (the “District”) as an urban renewal district and has approved the Bozeman Midtown Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District. 167 Resolution 5505, Approving a Project in the Midtown URD Known as the Lumberyard Project 2 1.03. Virga Venture I LLC (the “Developer”) owns certain property in the District, which has or is expected to go through a common boundary relocation, pursuant to which the land will be comprised of one lot on what is referred to as the “West Block” and two lots on what is referred to as the “East Block.” The Developer proposes to undertake a two-phase residential project on the East Block, the first phase of which is expected to consist of the design, engineering and construction of 21 studio apartments, 54 one-bedroom apartments, 78 two- bedroom apartments, 18 three-bedroom apartments, and related improvements, and the second phase of which is expected to consist of the design, engineering and construction of 14 studio apartments, 36 one-bedroom apartments, 52 two-bedroom apartments, 12 three-bedroom apartments, and related improvements (collectively, the “Project”). The Developer expects to sell the West Block to a third party that will develop an affordable housing project on the West Block, expected to consist of not less than 90 units of housing, each affordable at 60% of area median income, and the public improvements and infrastructure to be constructed in connection with the Project will support the development of the affordable housing project. The Developer has requested that the City use tax increment revenues of the District to reimburse the Developer with respect to certain eligible costs of the Project, including public improvements including street, curb, gutter and sidewalk improvements, and public and utility infrastructure, as well as impact fees, cash in lieu of water rights and fees and charges related to installing fiber optic cable (the “Eligible Costs”). 1.04. On August 15, 2023, a duly noticed public hearing was held on the question of approving the Project as an urban renewal project under the Act and the Plan and the use of tax increment revenues to reimburse the Developer for Eligible Costs and all persons appearing were given an opportunity to speak at the public hearing. Section 2 Approval of the Project as an Urban Renewal Project. 168 Resolution 5505, Approving a Project in the Midtown URD Known as the Lumberyard Project 3 The Commission hereby approves the Project as an urban renewal project under the Act and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Project as follows: a.no persons will be displaced from their housing by the Project; b.the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; c.the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d.taking into account the use of tax increment revenues to reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and e.the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4 Development Agreement; Use of Tax Increment. 4.01. Staff of the City’s Economic Development Department and the Developer have negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The Development Agreement is hereby approved in substantially the form attached. The City Manager, or in the event of his absence or disability, his designee, is hereby authorized and directed to finalize, approve, execute and deliver to the Developer the Development Agreement, 169 Resolution 5505, Approving a Project in the Midtown URD Known as the Lumberyard Project 4 substantially in the form attached as Exhibit A, with such changes as such officer shall deem necessary or appropriate. The execution and delivery by an appropriate officer of the City of the Development Agreement shall be conclusive as to the approval of such officer of the terms of the Development Agreement. 4.02. The Commission hereby approves the use of tax increment revenues to reimburse the Developer for Eligible Costs of the Project, subject to the terms and conditions of the Development Agreement. 170 Resolution 5505, Approving a Project in the Midtown URD Known as the Lumberyard Project 5 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 15th day of August, 2023. ___________________________________ CYNTHIA ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 171 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5505 entitled: “RESOLUTION APPROVING A PROJECT IN THE MIDTOWN URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on August 15, 2023, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 15th day of August, 2023. (SEAL) __________________________________ MIKE MAAS City Clerk 172 Resolution 5505, Approving a Project in the Midtown URD Known as the Lumberyard Project A-1 EXHIBIT A [Form of Development Agreement] 173 DEVELOPMENT AGREEMENT (Lumberyard) This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of August 15, 2023, by and between VIRGA VENTURE I LLC (the “Developer”) and the CITY OF BOZEMAN, MONTANA, 121 N. Rouse Ave., Bozeman, Montana 59771 (the “City”). The Developer and the City are each individually referred to herein as a “Party” and collectively as the “Parties.” RECITALS: WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs; WHEREAS, pursuant to the Act and Ordinance No. 1685 adopted by the City Commission of the City (the “City Commission”) on November 27, 2006, as amended by Ordinance No. 1925, adopted by the City Commission on December 16, 2015 (collectively, the “Ordinance”), the City has created the Bozeman Midtown Urban Renewal District (the “District”) as an urban renewal district and has approved the Bozeman Midtown Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District; WHEREAS, the Developer owns certain property in the District, legally described on Exhibit B hereto (collectively, the “Land”), which has or is expected to go through a common boundary relocation, pursuant to which the Land will be comprised of one lot on what is referred to herein as the “West Block” and two lots on what is referred to herein as the “East Block;” and WHEREAS, the Developer proposes to undertake a project on the East Block, and plans to proceed with construction in two phases. The first phase of the project is expected to consist of the design, engineering and construction of 21 studio apartments, 54 one-bedroom apartments, 78 two-bedroom apartments, 18 three-bedroom apartments, and related improvements (“Phase I of the Project”). The second phase of the project is expected to consist of the design, engineering and construction of 14 studio apartments, 36 one-bedroom apartments, 52 two- bedroom apartments, 12 three-bedroom apartments, and related improvements (“Phase II of the Project” and, collectively with Phase I of the Project, the “Project”). The current budget for the Project is set forth on Exhibit A hereto; and WHEREAS, the Developer expects to sell the West Block to a third party that will develop an affordable housing project on the West Block, expected to consist of not less than 90 units of housing, each affordable at 60% of area median income, as further described herein; and WHEREAS, the Developer has requested tax increment assistance with respect to certain eligible costs of the Project; 174 2 WHEREAS, pursuant to Resolution No. 5505 adopted on August 15, 2023, after a duly called and noticed public hearing, the City Commission approved the Project as an urban renewal project under the Plan and the Act and authorized the use of tax increment revenue of the District to reimburse the Developer for certain eligible costs of the Project described more particularly on Exhibit C hereto (the “Eligible Costs”) in the maximum amount of $7,581,016, subject to the terms and conditions of this Agreement; and WHEREAS, certain of the Eligible Costs are costs paid by the Developer in connection with the design, engineering, work, construction, materials, equipment, and other improvements eligible to be reimbursed, which improvements are identified as such on Exhibit C hereto (the “Infrastructure Improvements”), and certain of the Eligible Costs are costs to be paid by the Developer as fees or charges pertaining to the Project, which fees and charges are identified as such on Exhibit C hereto (the “Project Fees and Charges”); and WHEREAS, as a condition to the City’s reimbursing the Developer for Eligible Costs, the Developer will record the Restrictive Covenants (as hereinafter defined) against the West Block; and WHEREAS, the City Commission expects to reimburse the Developer for Eligible Costs in multiple installments, with the Initial Installment (as hereinafter defined) to be made solely from Tax Increment funds on hand and available therefor, and remaining installments to be made solely out of 80% of the Project Generated Tax Increment, as further described herein; and WHEREAS, the Parties desire to enter into this Agreement which sets forth the obligations and commitments of the Parties with respect to the Project, including the Eligible Costs consisting of the costs of the Infrastructure Improvements and of the Project Fees and Charges. NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in consideration of the representations, covenants and agreements of the other, as set forth herein, mutually represent, covenant and agree as follows: Section 1.Definitions; Rules of Interpretation; Exhibits. 1.1.Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise, the following terms have the meanings assigned to them, respectively: “Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended or supplemented. “Agreement” means this Development Agreement, dated as of August 15, 2023, by and between the City and the Developer, as it may be amended or supplemented from time to time in accordance with the terms hereof. “City” means the City of Bozeman, Montana, or any successors to its functions under this Agreement. 175 3 “City Commission” means the governing body of the City. “Developer” means VIRGA VENTURE I LLC, a Montana limited liability company, and its successors and assigns in accordance with and as permitted under this Agreement. “Developer Certificate” means the certificate attached hereto as Exhibit E. “District” means the Bozeman Midtown Urban Renewal District, an urban renewal district created by the Ordinance pursuant to the Act, as such may be enlarged or reduced from time to time in accordance with the Act. “DOR” means the State of Montana Department of Revenue. “Eligible Costs” means the costs identified as such on the attached Exhibit C. “Environmental Laws and Regulations” means and includes the Federal Comprehensive Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended, and any other federal, state, county, municipal, local or other statute, code, law, ordinance, regulation, requirement or rule which may relate to or deal with human health or the environment including without limitation all land use, zoning, and stormwater control regulations as well as all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance, regulation, requirement or rule. “Fiscal Year” means the period commencing on the first day of July of any year and ending on the last day of June of the next calendar year, or any other twelve-month period authorized by law and specified by the Commission as the City’s fiscal year. “Indemnified Parties” has the meaning given to it in Section 7.1. “Infrastructure Improvements” means the design, engineering, work, construction, materials, equipment, and other improvements, the costs of which form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. “Initial Installment” means the initial payment from the City to the Developer, expected to be in the amount of $2,000,000 as reimbursement for a portion of the Eligible Costs, as described in Sections 4 and 5.1 hereof. “Land” has the meaning given to it in the recitals. “Land Use Regulations” means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the East Block or the Project. 176 4 “Milestone” of “Milestones” has the meaning given in Section 3.4 hereof. “Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof. “Ordinance” means Ordinance No. 1685 adopted by the City Commission on November 27, 2006, as amended by Ordinance No. 1925, adopted by the City Commission on December 16, 2015. “Original Resolution” means Resolution No. 5131, adopted by the City Commission on July 6, 2020, pursuant to which the City issued the Series 2020 Bonds. “Person” means any individual, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. “Prevailing Wage Rates” means the Montana Prevailing Wage Rate for public works projects as published from time to time by and available from the Montana Department of Labor and Industry, Research and Analysis Bureau, P.O. Box 1728, Helena, Montana 59624, telephone number (800) 541-3904. “Project” means the facilities to be constructed by the Developer on the East Block pursuant to this Agreement, as described more particularly in the recitals hereto. “Project Fees and Charges” means those fees and charges pertaining to the Project that form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. “Project Generated Tax Increment” means the Tax Increment paid by the Developer with respect to the Project, as further described in Section 5.2(e) hereof. “Restricted Units” has the meaning set forth in Section 3.12 hereof. “Restrictive Covenants” has the meaning set forth in Section 3.12 hereof. “Series 2020 Bonds” means the Tax Increment Urban Renewal Revenue Bonds (Bozeman Midtown Urban Renewal District), Series 2020, issued in the principal amount of $6,500,000 pursuant to the Original Resolution. “State” means the State of Montana. “Tax Increment” means the amount received by the City pursuant to the Act from the extension of levies of Taxes (expressed in mills) against the incremental taxable value (as defined in the Act) of all Taxable Property, and shall include all payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost Tax Increment. “Taxable Property” means all real and personal property located in the District and subject to Taxes, including land, improvements and equipment. 177 5 “Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the Taxable Property (exclusive of the six mill levy for university purposes levied by the State), and shall include all payments in lieu of taxes received by the City with respect to Taxable Property. “Taxing Body” means the City; the County of Gallatin, Montana; High School District No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman), Gallatin County, Montana; the State; and any other political subdivision or governmental unit that levies or may hereafter levy or cause to be levied Taxes against property within the District. “Unavoidable Delay” means a delay resulting from a cause over which the Party required to perform does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest, embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics, epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. 1.2.Rules of Interpretation. (a) The words “herein,” “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any of its particular sections or subdivisions. (b) References to any particular section or subdivision hereof are to the section or subdivision of this Agreement in its original signed form, unless otherwise indicated. (c) The word “or” is not exclusive but is intended to contemplate or encompass one, more or all of the alternatives conjoined. 1.3.Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: Exhibit A: Project Costs Exhibit B: Description of the Land Exhibit C: Eligible Costs Exhibit D: Milestones Exhibit E-1: Form of Developer Certificate to Establish Amount of Eligible Costs and Request Initial Installment Exhibit E-2: Form of Developer Certificate Regarding Project Generated Tax Increment and Request for Reimbursement Exhibit F: Nondiscrimination and Equal Pay Affirmation 178 6 Exhibit G: Form of Restrictive Covenants Section 2.Representations. 2.1.City Representations. The City hereby represents as follows: (a)Pursuant to the Act, and after a public hearing duly called and held, the City by the Ordinance has duly created the District. (b)Pursuant to the Original Resolution, the City has issued and there are outstanding the Series 2020 Bonds. In the Original Resolution, the City reserved the right to issue obligations having a lien on Tax Increment subordinate to the lien of the Series 2020 Bonds (“Subordinate Obligations”). Any obligation of the City to make payments under this Agreement constitutes a Subordinate Obligation under the Original Resolution, subordinate and junior in all respects to the repayment of the Series 2020 Bonds and the replenishment of the debt service reserve account for the Series 2020 Bonds, and subject to all other terms and conditions of the Original Resolution. (c)Pursuant to Resolution No. 5505 of the City Commission, the City Commission authorized the execution and delivery by the City of this Agreement and approved the use of Tax Increment and Project Generated Tax Increment, if available, to reimburse the Eligible Costs in a total amount not to exceed $7,581,016. (d)The DOR has advised the City that the base taxable value (as defined in the Act) of the District is $3,507,723. 2.2.Developer Representations. The Developer hereby represents as follows: (a)The Developer is a Delaware limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified to do business in the State of Montana. The Developer has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement. (b)The Developer has good marketable title to the Land, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of the Land or materially interfere with the use made and proposed to be made of the Land by the Developer. (c)The Developer has the financial capability or commitments to complete the Project. (d)Except as set forth in that certain Phase I Environmental Site Assessment prepared by TD&H Engineering as Job No. B21-033 and dated April 26, 2021, the Developer is not aware of any facts the existence of which would cause the Developer to be in violation in any material respect of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. The Developer has not received from any local, state or federal official any notice or communication indicating that the activities of the Developer have been, 179 7 may be or will be in violation of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. (e)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of the Developer or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f)There is no action, suit, investigation or proceeding now pending or, to the knowledge of the Developer, threatened against or affecting the Developer or its business, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially and adversely affect the ability of the Developer to complete the Project. (g)The Developer acknowledges and agrees that the sole source of funds for reimbursing the Developer under this Agreement is, for the Initial Installment, Tax Increment then on hand and available therefor, and for all subsequent installments, the Project Generated Tax Increment. The Developer further acknowledges and agrees the amount of Tax Increment in the District is dependent upon a number of variables, including, without limitation, the taxable value of the Project, the number of mills levied by Taxing Bodies, and then-prevailing state laws regarding computation of Tax Increment, and that the City has no control over such variables. There is no assurance that Tax Increment will be available to make the Initial Installment to the Developer. In addition, if Tax Increment in the District decreases, the City may need to use Project Generated Tax Increment to pay debt service on the Series 2020 Bonds or to replenish the debt service reserve account for the Series 2020 Bonds, and there may not be Project Generated Tax Increment available to reimburse the Developer for Eligible Costs, despite the Developer having paid all property taxes then due with respect to the Project. The Developer agrees that if Project Generated Tax Increment is required to be used to pay debt service or replenish the debt service reserve account for the Series 2020 Bonds or if for any other reason, Tax Increment and/or Project Generated Tax Increment is not available to make the Initial Installment or subsequent installments to reimburse the Developer, the City shall have no obligation to pay to the Developer the amount of reimbursement described in Section 4. The Developer agrees that such event shall not constitute a default by the City hereunder. In such event, if the Developer has not received any reimbursement but has recorded the Restrictive Covenants described in Section 3.12, upon request of the Developer or subsequent owner of the West Block, the City agrees to cooperate with the Developer or subsequent owner of the West Block to remove the Restrictive Covenants from the West Block. Section 3.Developer Undertakings. 3.1.Construction and Maintenance of Project. The Developer hereby agrees and commits to the City that it will diligently prosecute to completion the construction of the Project in accordance with this Agreement, the site plan submitted to the City and all applicable federal, 180 8 State and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Project, including applicable Land Use Regulations and Environmental Laws and Regulations. The Developer agrees and commits to the City that construction of Phase I of the Project shall be completed by October 31, 2028 and construction of Phase II of the Project shall be completed by May 31, 2032, in each case, subject to Unavoidable Delays. The total estimated costs of the Project are shown on Exhibit A hereto. The Developer has the financial capacity to complete the Project, and the Developer agrees to pay all costs thereof. If there is an increase in the costs of the Project from that shown on Exhibit A hereto that cannot be covered by the contingency amount, the Developer shall notify the City of the increase and submit additional evidence in a form acceptable to the City that the Developer has the financial capacity to cover such additional costs and complete the Project. At all times during the term of this Agreement, the Developer will operate and maintain, preserve and keep the Project or cause the Project to be operated, maintained, preserved and kept for the purposes for which it was constructed, and with the appurtenances and every part and parcel thereof, in good repair and condition. The Developer agrees to permit the City and any of its officers, employees or agents access to the East Block for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. 3.2.Preparation, Review and Approval of Construction Plans. In connection with the Project, the Developer, at its sole expense, shall prepare and submit construction plans, drawings, and related documents for each portion of the Project to the appropriate City officials for architectural, engineering or land use review and written approval or permits. The Developer acknowledges that no review or approval by City officials hereunder may be in any way construed by the Developer to replace, override or be in lieu of any required review, inspection, or approval by the City Planning Division, or any other building construction official review or approvals required by any State laws or local ordinances or regulations. Nothing contained in this Agreement indicates or evidences that the City has approved or will approve the Project or any portion thereof. This Agreement does not affect or limit the City’s regulatory powers with regard to the Project, including, without limitation, those relating to building permits or other permits or the payment of fees. As further described in Section 7.1, the City shall have no liability and the Developer shall hold the City harmless with respect to any increases in costs of the Project related to or arising out of delays resulting from the City’s regulatory actions or approvals. 3.3.Construction of the Infrastructure Improvements. The Developer shall acquire, install, construct or otherwise provide the Infrastructure Improvements. The Developer acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or otherwise providing the Infrastructure Improvements. The estimated costs of the Infrastructure Improvements, which form a part of the Eligible Costs, are shown on Exhibit C hereto. 3.4.Milestones of the Project. Certain steps in the development of the Project are listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by which the Developer is obligated to complete the Milestones (collectively, the “Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges and agrees that the City in reserving or offering to make available Tax Increment to pay or reimburse the Eligible Costs necessarily means that certain Tax Increment is 181 9 not available to pay or reimburse other undertakings or costs for the benefit of the District and that the City reasonably expects additional Tax Increment as a result of completion of the Project. The Developer acknowledges and agrees that conditioning the availability of Project Generated Tax Increment to pay or reimburse the Eligible Costs on completion or satisfaction of the Milestones by the corresponding Milestone Dates is reasonable. If the Developer is unable to complete or satisfy a Milestone by the corresponding Milestone Date, the Developer shall make a formal written request to the Director of Economic Development, with appropriate supporting material, to extend the Milestone Date and, as appropriate, subsequent Milestone Dates. The Director of Economic Development may, in his or her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the request to the City Commission to either approve the extension and adjust other Milestone Dates, as appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will have no obligation to reimburse the Developer hereunder. If this Agreement is terminated as described in this Section 3.4 and the Developer has not received any reimbursement but has recorded the Restrictive Covenants described in Section 3.12, upon request of the Developer or subsequent owner of the West Block, the City agrees to cooperate with the Developer or subsequent owner of the West Block to remove the Restrictive Covenants from the West Block. 3.5.Prevailing Wage Rates; Competitive Bidding. The Developer understands that the City is obligated to follow certain laws with respect to the expenditure of public funds, which includes Tax Increment. The Developer agrees to comply with laws that govern City contracting obligations, including public procurement laws relating to all of the Infrastructure Improvements, such as, without limitation, laws and rules regarding prevailing wage and solicitation of work on a competitive basis. Without limitation of the foregoing, the Developer agrees that in the awarding of contracts for the Infrastructure Improvements (i) it will, and it will cause its contractor to, publicly bid competitively contracts for each component of the Infrastructure Improvements, and (ii) through its contract with its contractor, it will, in addition to the requirements of Sections 3.9 and 3.10, require its contractor to, pay the Prevailing Wage Rates on such contracts related to the Infrastructure Improvements. The Developer will provide to the City all documentation requested to verify the compliance of the Developer and its contractor with the foregoing requirements. Failure of the Developer or its contractor to bid competitively contracts for each component of the Infrastructure Improvements or to require contracts entered into directly with contractors or sub-contractors to include provisions requiring the contractor or sub-contractor to pay the Prevailing Wage Rates on the work related to the Infrastructure Improvements will be considered a breach of this Agreement and the City will be entitled, at its discretion and without obligation, to exercise any and all measures to assure compliance and retroactive compensation plus interest to workers not paid in accordance with this Agreement, and recovery of any penalty or fine assessed by the State attributed to any failure to pay the Prevailing Wage Rates. Additionally, the Developer acknowledges that a violation of these requirements may, in the City’s sole discretion, cause the Infrastructure Improvements to be ineligible for the application of Tax Increment, in which case the City will have no obligation to reimburse or pay the Developer hereunder. 182 10 3.6.Utilities. The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. The Developer at its own expense shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. 3.7.Permits and Compliance With Laws. The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet all requirements of all local, state and federal laws, rules and regulations which must be obtained or met in connection with the acquisition and construction of the Project, including the Infrastructure Improvements. Without limiting the foregoing, the Developer will request and seek to obtain from the City or other appropriate governmental authority all necessary land use, zoning, and building permits. The Developer will comply in all material respects with all Environmental Laws and Regulations applicable to the construction, acquisition, and operation of the Project, including the Infrastructure Improvements, will obtain any and all necessary environmental reviews, licenses or clearances under, and will comply in all material respects with, Environmental Laws and Regulations. In addition, the Developer shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances related to worker safety including but not limited to the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, and the Americans with Disabilities Act. 3.8.Easements. To the extent that the Infrastructure Improvements are to be located on the Land, the Developer hereby agrees to grant to the City and applicable utility companies from time to time such easements, rights-of-way and similar licenses in a form required by the City and as are reasonably necessary to permit the City to own, operate and maintain the Infrastructure Improvements. 3.9.Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Project, including the Infrastructure Improvements. The Developer agrees that in its contracts with its contractors the Developer’s contractor will be required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Project. The Developer agrees to provide copies of all such contracts upon request by the City. 3.10.Worker’s Compensation Insurance. The Developer shall provide in its construction contracts related to the Project with all of its respective contractors that such contractors are to be covered by a Worker’s Compensation insurance program with the State, a private insurance carrier, or an approved self-insurance plan in accordance with State law. 3.11.Walkaway Provision. The Developer shall have the option, in its sole discretion and for any reason, to cease developing the Project and terminate this Agreement without penalty at any time prior to the Developer submitting any request for reimbursement or payment to the 183 11 City (“walkaway provision”). If the Developer exercises this walkaway provision, this Agreement shall immediately terminate and all rights and obligations of the Parties under this Agreement shall cease, except for those rights and obligations specifically identified in this Agreement as surviving termination. If the Developer exercises this walkaway provision, the Developer automatically waives any and all rights to reimbursement or payment from the City under this Agreement. This walkaway provision shall not limit or prohibit any rights, claims, or recourse that the City may have in connection with the Project. The Parties expect that, if the Developer determines to exercise this walkaway provision, the Restrictive Covenants will not be recorded against the West Block. If the Developer records the Restrictive Covenants and, at a later date, determines to exercise the walkaway provision, the City agrees to cooperate with the Developer to remove the Restrictive Covenants from the West Block. 3.12.Affordable Housing Covenants. The Developer agrees that, as a condition to receiving any reimbursement under this Agreement, the Developer will file a restrictive covenant on the West Block, providing that any development at the West Block will include a minimum of 90 housing units (the “Restricted Units”), which will be restricted for a period not less than 30 years for use as housing affordable to households with incomes equal to 60% area median income (“AMI”). As a condition to reimbursement hereunder, the Developer shall record the restrictive covenants, substantially in the form attached hereto as Exhibit G (the “Restrictive Covenants”) against the West Block. The Restrictive Covenants must (i) run with the land, (ii) bind, for a period not less than 30 years from the date of issuance of a certificate of occupancy with respect to the Restricted Units, the Restricted Units to be affordable at 60% AMI, either as rental units or as owner-occupied units with restrictions on resale prices, with resale and rental prices tied to affordability at 60% AMI, and (iii) provide that a third-party nonprofit or government entity with experience in managing affordable housing units must manage the rental or sale of the Restricted Units. In addition, the Restrictive Covenants will provide that the Restricted Units are prohibited from being used, rented or made available as short term rentals, as that term is defined in the Bozeman Municipal Code. The affordability requirements in the Restrictive Covenants will be index-based, tied to AMI, and pursuant to the Restrictive Covenants, permissible rental and sale/resale prices of the Restricted Units will be based on the most recent affordability data available through the Housing and Urban Development’s Housing Availability Data System or other similar affordability data that is available at the time of rental or sale/resale. The Developer’s covenants described in this Section 3.12 are referred to herein as the “Affordable Housing Covenants.” The Developer acknowledges and agrees that the Affordable Housing Covenants are fundamental to the City’s agreements hereunder. The Parties acknowledge that, as development proceeds at the West Block, it may be necessary or desirable to record other instruments to implement the Affordable Housing Covenants and provide for the affordability of the Restricted Units, either in addition to or in replacement of the Restrictive Covenants to be recorded as a condition to reimbursement of the Developer under this Agreement, and the Parties agree to cooperate with respect to recording such other instruments if necessary or desirable. The Developer acknowledges that, as determined by the City, one-person household pricing relates to studios, two-person household pricing relates to one bedroom units, three-person household pricing relates to two bedroom units, and four-person household pricing relates to three bedroom units. Section 4.City Undertakings. Subject to satisfaction of all conditions in Section 5 below, and solely from Tax Increment (with respect to the Initial Installment) and from 80% of Project 184 12 Generated Tax Increment (with respect to subsequent installments), and subject to the prior lien of the Series 2020 Bonds and the debt service reserve account therefor, the City agrees to reimburse the Developer in an amount equal to the amount of the Eligible Costs (not to exceed $7,581,016). Section 5.Reimbursement for the Eligible Costs. Reimbursement of the Developer for Eligible Costs shall be subject to the following conditions and in accordance with the following procedures: 5.1.The Initial Installment. The City shall pay the Initial Installment only if the following conditions are satisfied and the following procedures are followed: (a)The Developer shall have completed or satisfied each of the Milestones for the “Initial Infrastructure Improvements” (as delineated on Exhibit D) by the applicable Milestone Date, as such date may have been extended pursuant to Section 3.4 hereof, with respect to those Milestones and Milestone Dates that have occurred by the date of the Initial Installment. (b)Reimbursement by the City for costs of the Infrastructure Improvements must be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or utility companies, which the Developer must supply to the City. The City may reject, in its sole discretion, any invoice related to the Infrastructure Improvements. The City will notify the Developer of any rejected invoice and the reason it was rejected. (c)At the time of the Developer’s request for the Initial Installment (i) all of the Developer’s representations as set forth in Section 2.2 must be true and correct, (ii) the Developer must not be in breach of any covenant or undertaking set forth in Section 3, and (iii) there must be adequate Tax Increment on hand to satisfy all financial obligations related to the Series 2020 Bonds and the debt service reserve account for the Series 2020 Bonds such that Tax Increment is available to pay the Initial Installment. (d)The Developer must provide evidence satisfactory to the City that the Restrictive Covenants have been recorded with the Gallatin County Clerk and Recorder’s Office and have not been modified, amended or rescinded other than with the prior written consent of the City. If residential development is proceeding or has occurred at the West Block and does not comply with the Affordable Housing Covenants, this Agreement shall terminate and the Developer shall not be eligible for additional reimbursement. (e)The Infrastructure Improvements shall have been completed in their entirety and the City shall have delivered to the Developer written acceptance of the Infrastructure Improvements (which may be in the form of a Certificate of Completion or such other format as required by the City). The Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable to the City, that the Infrastructure Improvements are free of financial liens and any encumbrances affecting the Infrastructure Improvements must be acceptable to the City. (f)The Developer shall provide to the City a signed Developer certificate substantially in the form attached as Exhibit E-1 hereto and acceptable to the City, accompanied by the invoices and lien waivers from the contractors or subcontractors that have performed the 185 13 work to be reimbursed. In addition, the Developer agrees to provide to the City any additional information requested by the City for the City to determine whether the Developer’s request for reimbursement complies with this Agreement. Based on this Developer certificate and the related information provided by the Developer, the City Manager or his or her designee shall determine the total dollar amount of Eligible Costs that may be reimbursed (up to $7,581,016). (g)If Tax Increment funds are on hand and available therefor, and all conditions set forth in Section 5.1(a) through (f) have been satisfied, the City shall pay the Initial Installment to the Developer. If the Initial Installment is paid to the Developer, the Restrictive Covenants shall remain in place for the full term set forth therein, regardless of whether any subsequent installments are paid to the Developer. 5.2.Subsequent Installments. Following the payment of the Initial Installment, payment by the City of subsequent installments to reimburse the Developer for Eligible Costs shall be made only if the following conditions are satisfied and the following procedures are followed: (a)The Developer shall continue to complete or satisfy remaining Milestones by the applicable Milestone Dates, as such dates may have been extended pursuant to Section 3.4 hereof. Due to the size of the Project, it will be delivered in two separate phases, Phase 1 is located on Lot 2A Block 3, and Phase 2 is on Lot 1A Block 3. (For the avoidance of doubt, once Phase 1 is completed in accordance with this agreement, the Developer shall be eligible for reimbursement of Phase 1’s share of the Eligible Costs.) (b)Reimbursement by the City for costs of the Infrastructure Improvements must be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or utility companies, which the Developer must supply to the City. The City may reject, in its sole discretion, any invoice related to the Infrastructure Improvements. The City will notify the Developer of any rejected invoice and the reason it was rejected. (c)At the time of the Developer’s request for each installment (i) all of the Developer’s representations as set forth in Section 2.2 must be true and correct, (ii) the Developer must not be in breach of any covenant or undertaking set forth in Section 3, and (iii) there must be adequate Tax Increment on hand to satisfy all financial obligations related to the Series 2020 Bonds and the debt service reserve account for the Series 2020 Bonds such that Project Generated Tax Increment is available to reimburse the Developer. (d)The Developer must provide evidence satisfactory to the City that the Restrictive Covenants have been recorded with the Gallatin County Clerk and Recorder’s Office and have not been modified, amended or rescinded other than with the prior written consent of the City. If development is proceeding or has occurred at the West Block that does not comply with the Affordable Housing Covenants, this Agreement shall terminate and the Developer shall not be eligible for additional reimbursement. (e)The Developer shall have been issued a certificate of occupancy for Phase I of the Project, and the Developer or other person(s) or entity responsible for paying such taxes, shall have paid property taxes with respect to Phase I of the Project for at least one full Fiscal Year 186 14 after the assessed and taxable values of Phase I of the Project, as completed, are reflected in the certified taxable values of the City provided by the Department of Revenue. For example, if Phase I of the Project is completed in August 2024, the value of Phase I of the Project as completed will be assessed by the Department of Revenue in January 2025; included in certified values provided to the City in August 2025; and the Developer must pay property taxes due November 30, 2025 and May 31, 2026 before it is eligible for reimbursement. The Tax Increment paid by the Developer with respect to the Project in the Fiscal Years for which the assessed and taxable values of at least Phase I of the Project, as completed, are reflected in the certified taxable values of the City constitute the “Project Generated Tax Increment.” (f)Following determination of the dollar amount of the Eligible Costs that may be reimbursed under Section 5.1(f), and the Developer’s payment of property taxes relating to Phase I of the Project as completed for a full Fiscal Year, as described under Section 5.2(e) above, in each Fiscal Year, the Developer shall submit to the Director of Economic Development a certificate substantially in the form attached hereto as Exhibit E-2, together with such supporting documentation as may be requested by the City, showing the amount of the Project Generated Tax Increment paid by the Developer for such Fiscal Year. (g)The Developer shall be eligible for reimbursement in each Fiscal Year in an amount equal to 80% of Project Generated Tax Increment for such Fiscal Year. The Developer may submit requests for reimbursement not more than once in each Fiscal Year until the full amount of the Eligible Costs (up to $7,581,016) has been reimbursed. 5.3.Failure to Satisfy Conditions. If any of the conditions described in Sections 5.1 and 5.2 are not satisfied in the determination of the City, the City shall have no obligation to make the Initial Installment or any subsequent installment, respectively, and the City’s determination to refrain from reimbursing, or its inability to reimburse, any of the Eligible Costs shall not be or result in a default of this Agreement. Section 6.Covenants to Pay Taxes. 6.1.Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty all Taxes and all installments of any special assessments payable with respect to the East Block and the Project and any improvements thereto or extension thereof. 6.2.Maintenance of Land and Project. The Developer, for itself and its successors and assigns, agrees to use its commercially reasonable best efforts to maintain and operate the East Block and the Project so as to be able at all times to pay promptly and when due all property taxes levied with respect to the East Block and the Project. 6.3.Injunction; Specific Performance. The Parties agree that, in the event of a breach of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or in equity, including, without limitation, the remedies of injunction and specific performance. 187 15 Section 7.Indemnification and Insurance. 7.1.Indemnification. The Developer releases the City and all City Commission members, board members, officers, agents, servants and employees of the City (the “Indemnified Parties”) from, and covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from, the acquisition and construction of the Project, including the Infrastructure Improvements, any violation by the Developer of any agreement, condition or covenant of this Agreement, the ownership, maintenance and operation of the Project, or the presence on any portion of the Land, of any dangerous, toxic or hazardous pollutants, contaminants, chemicals, waste, materials or substances; or (ii) which is proximately caused by the Developer or its officers, agents, contractors, consultants or employees. 7.2.Insurance. Developer shall keep and maintain the Project at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Project, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: 1.fire 2.extended coverage perils 3.vandalism and malicious mischief 4.boiler explosion (but only if steam boilers are present) 5.collapse on a replacement cost basis in an amount equivalent to the Full Insurable Value thereof. “Full Insurable Value” shall include the actual replacement cost of the Project, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation. The policies required by this Section 7.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and must contain a deductibility provision not exceeding $100,000. Subject to the terms of any mortgage relating to the Project, policies of insurance required by this Section 7.2 shall insure and be payable to Developer and shall provide for release of insurance proceeds to Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. During construction of the Project, any and all of the foregoing insurance policies may be maintained by the Developer’s contractor; provided that once the Project is placed into service, Developer shall maintain all of the foregoing insurance policies. In addition to and independent of the above, the Developer shall at the Developer’s expense secure liability insurance through an insurance company or companies duly licensed and 188 16 authorized to conduct insurance business in Montana. The insurance shall not contain any exclusion for liabilities specifically assumed by the Developer in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City in relation to construction of the Project and the Infrastructure Improvements without limit and without regard to the cause therefore. The Developer must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate The above amounts shall be exclusive of defense costs. The City, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability policy. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Developer commencing work on Project or Infrastructure Improvements. Developer must notify the City within two (2) business days of Developer’s receipt of notice that any required insurance coverage will be terminated or Developer’s decision to terminate any required insurance coverage for any reason. Section 8.General Provisions. 8.1.Conflicts of Interest; City’s Representatives Not Individually Liable. The Developer represents that it does not employ, retain, or contract with an officer or employee of the City and that no member, officer or employee of the City has a personal or financial interest, direct or indirect, in this Agreement or in the Project, or a financial interest in the Infrastructure Improvements. No member, officer or employee of the City shall be personally liable to Developer in the event of any default under or breach of this Agreement by the City, or for any amount that may become due to Developer for any obligation issued under or arising from the terms of this Agreement. 8.2.Rights Cumulative. The rights and remedies of the Parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by any Party hereto of any one or more of such remedies shall not preclude the exercise by such Party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the Party subject to the limitation of remedies provided herein. No waiver made by such Party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other Party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the Party making the waiver of any obligations of the other Party. Delay by a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 8.3.Term of Agreement. 189 17 (a)This Agreement shall remain in effect until the earlier of (i) the date that is 10 days after the date the City reimburses the Developer in full hereunder, or (ii) the termination of this Agreement pursuant to Sections 5.1(d), 5.2(d) or 3.11; provided that this Agreement may be earlier terminated by the City in its sole discretion at any time after failure by the Developer to complete or satisfy a Milestone by the applicable Milestone Payment Date (as such date may be extended as described in Section 3.4). (b)Notwithstanding the foregoing provisions of this Section 8.3, (i) Sections 6, 7, and 8 of this Agreement shall in all events survive the termination of this Agreement, and (ii) if the Developer is reimbursed under this Agreement, Section 3.12 shall survive the termination of this Agreement. 8.4.Limitation on City Liability. No agreements or provisions contained in this Agreement nor any agreement, covenant or undertaking by the City contained in any document in connection with the Project, including the Infrastructure Improvements, or the Eligible Costs shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing powers, or shall obligate the City financially in any way except with respect to then-available Project Generated Tax Increment. No failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charge except to the extent that the same can be paid or recovered from then-available Project Generated Tax Increment; and no execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City (except as such constitute then-available Project Generated Tax Increment). Nothing herein shall preclude a proper party in interest from seeking and obtaining specific performance against the City for any failure to comply with any term, condition, covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be recoverable from the City except as may be payable from the Project Generated Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the City. 8.5.Assignment. This Agreement is unique among the City and the Developer and no Party may assign any rights or privileges, or delegate any duties or obligations under this Agreement, without first obtaining the written consent of the other Party. 8.6.Successors Bound By Agreement; No Third Party Beneficiary; No Property Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors in interest and permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. This Agreement, by itself, does not create or give rise to a property interest in the Land or the Project. 8.7.Prior Agreements. This Agreement supersedes, merges and voids any and all prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. The Parties waive and release each other from any claims, actions, or causes of action that relate in any manner to any prior discussions, negotiations, 190 18 agreements and undertakings between the Parties with respect to the subject matter of this Agreement. 8.8.Entire Agreement. This Agreement, including any exhibits and attachments hereto, embodies the entire agreement and understanding of the Parties with respect to its subject matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil action any terms, conditions, understandings, warranties, statements or representations, whether oral or written, with respect to the subject matter of this Agreement and that are not contained in this Agreement. 8.9.Amendments, Changes and Modifications. This Agreement may be amended and any of its terms may be modified only by written amendment authorized and signed by the Parties hereto. 8.10.Headings. The headings of articles and sections in this Agreement are inserted for convenience of reference only and do not limit or amplify the terms and provisions of the Agreement in any manner. The headings will be ignored and will not affect the construction of any provisions of this Agreement. 8.11.Notice. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City or the Developer will be in writing and will be delivered to such Party either: (i) by personal hand-delivery; (ii) by depositing the same in the United States mail, certified mail with return receipt requested; (iii) by depositing the same with a nationally recognized overnight delivery service; or (iv) with respect to notice to the Developer, by email (in which case the notice shall be effective as of the date of confirmed delivery). Notice will be deemed complete upon receipt of the notice pursuant to any of the foregoing methods of notice. Notices and communications to the parties must be addressed to and delivered at the following addresses: If to City: City of Bozeman Attention: Bozeman City Manager 121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771 If to Developer: Virga Venture I LLC Attention: Legal Department P.O. Box 1070 Bozeman, MT 59771 Email: legal@virgacapital.com With a copy to: 191 19 Levenfeld Pearlstein, LLC Attention: Julie Workman, Esq. 120 S. Riverside Plaza Suite 1800 Chicago, IL 60602 Email: jworkman@lplegal.com The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 8.12. Severability. If any provision of this Agreement is declared void or held invalid, such provision will be deemed severed from this Agreement and the remaining provisions of this Agreement will otherwise remain in full force and effect. 8.13.Duplicate Originals or Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 8.14.Place of Performance. The place of performance of this Agreement will be in the City of Bozeman, Gallatin County, Montana. 8.15.Governing Law. This agreement and the legal relations between the Parties hereto will be governed by and construed in accordance with the laws of the State of Montana, without giving effect to any choice of law statutes, rules, or principles. 8.16.Dispute Resolution. (a)Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in the negotiated settlement discussions. (b)If the Parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the applicable law and the provisions of this Agreement. 8.17.Further Assurances and Corrective Instruments. The Parties agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Project, including the Infrastructure Improvements, or the Eligible Costs or for carrying out the expressed intention of this Agreement. 8.18.Reports/Accountability/Public Information. The Developer agrees to develop and/or provide documentation as requested by the City demonstrating the Developer’s compliance with the requirements of this Agreement. The Developer shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for 192 20 the purpose of verifying that the monies reimbursed to the Developer pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Developer shall not issue any statements, releases or information for public dissemination regarding this Agreement or the work contemplated hereunder without prior written approval of the City. 193 21 IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement to be executed as of the date first set forth above. CITY OF BOZEMAN, MONTANA By:_______________________________________ Printed Name: Jeff Mihelich Title: City Manager [Signature Page to Development Agreement] 194 22 VIRGA VENTURE I LLC By: Name: Title: [Signature Page to Development Agreement] 195 A-1 EXHIBIT A PROJECT COSTS 196 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE LAND Lot 1 of Block 2 and Lots 1A and 2A of Block 3 of Amended Plat of PT Land Phase 2 Subdivision, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. [Plat J-498B] 197 C-1 EXHIBIT C ELIGIBLE COSTS 198 D-1 EXHIBIT D MILESTONES MILESTONE MILESTONE DATE INITIAL INFRASTRUCTURE IMPROVEMENTS: Restrictive Covenants Recorded 11/30/2023 Off-Site Infrastructure Completed 11/30/2023 PHASE I OF THE PROJECT: Site Plan Submittal to the City 12/31/2024 Development Building Permit Submittal 12/31/2025 Start of Development Construction 01/01/2026 Completion of Development Construction (occupancy)12/31/2028 PHASE II OF THE PROJECT: Site Plan Submittal to the City 04/30/2028 Development Building Permit Submittal 03/31/2029 Start of Development Construction 05/31/2029 Completion of Development Construction (occupancy)05/31/2032 199 E-1-1 EXHIBIT E-1 FORM OF DEVELOPER CERTIFICATE TO ESTABLISH AMOUNT OF ELIGIBLE COSTS AND REQUEST INITIAL INSTALLMENT TO:City of Bozeman, Montana FROM:Virga Venture I LLC (the “Developer”) SUBJECT:Eligible Costs; Request for Initial Installment This Developer Certificate is delivered in accordance with the Development Agreement between the Developer and the City of Bozeman, Montana, dated as of ________________ (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.1(f) of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that: (a)the expenditures for which reimbursement is requested are listed in summary form in the attached schedule headed “Project Expenditures;” (b)invoices paid by the Developer corresponding to the expenditures set forth on the attached Project Expenditures Schedule are appended to the attached schedule headed “Project Invoices;” (c)the amounts for which reimbursement is requested have been paid by the Developer to the City for Project Fees and Charges or to contractors, subcontractors, materialmen, engineers, architects or other persons who or that have performed necessary or appropriate services or supplied necessary or appropriate materials for the acquisition, construction, renovation, equipping, and installation of the Infrastructure Improvements; (d)with respect to the Infrastructure Improvements, the contractor and subcontractors were solicited and retained competitively and all persons performing work on the Infrastructure Improvements were paid the Montana prevailing wage for such work; (e)the reimbursement of the amounts requested will not result in a breach of any of the covenants of the Developer contained in the Development Agreement; and (f)no litigation has been instituted or is threatened with regard to any amounts sought to be reimbursed, and binding and enforceable lien waivers have been obtained from all contractors, subcontractors, materialmen, and others with regard to all work related to any amounts for which reimbursement is requested. 200 E-1-2 Based on the attached invoices, the Developer hereby certifies that the total amount of Eligible Costs is equal to $[_______].1 The Developer represents that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. The Developer hereby requests $[________] as the Initial Installment of reimbursement for Eligible Costs. Dated: _____________, 20__Virga Venture I LLC By: Authorized Developer Representative 1 Lesser of $7,581,016 or total cost. 201 E-2-1 EXHIBIT E-2 FORM OF DEVELOPER CERTIFICATE REGARDING PROJECT GENERATED TAX INCREMENT AND REQUEST FOR REIMBURSEMENT TO:City of Bozeman, Montana FROM:Virga Venture I LLC (the “Developer”) SUBJECT:Project Generated Tax Increment This Developer Certificate relates to Project Generated Tax Increment, as defined in the Development Agreement between the Developer and the City of Bozeman, Montana, dated as of ________________ (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.2 of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that on [[___________], 20__] and [___________], 20__], the Developer, and/or person(s) or entity responsible for paying taxes, has paid property taxes relating to [Phase I of] the Project in the total amount of $[______]. The Developer has attached proof of each payment to this certificate. The Developer is eligible to be reimbursed for $[______]2 in total Eligible Costs. The Developer has previously been reimbursed for Eligible Costs in the amount of $[_____], including the Initial Installment, and as of the date hereof, the Developer is eligible to be reimbursed for an additional $[_______] in Eligible Costs. The Developer further certifies that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. Dated: _____________, 20__Virga Venture I LLC By: Authorized Developer Representative 2 [Should be the lesser of 80% of total Project Generated Tax Increment in the paragraph above or remaining amount of Eligible Costs not yet reimbursed (not to exceed $7,581,016).] 202 F-1 EXHIBIT F 203 G-1 EXHIBIT G [Form of Affordable Housing Restrictive Covenant and Agreement] 204 Memorandum To:David Fine, City of Bozeman From:Mikaela Huot, Director Date:June 15, 2023 Subject:Review of Request for Financial Assistance through Tax Increment Financing (TIF) District for Virga Capital (The Lumberyard Flats Project) Executive Summary The City of Bozeman (the “City”) received an application from Virga Venture I LLC / Virga Capital (the “Developer”) for financial assistance through Tax Increment Financing (TIF) to assist with offsetting a portion of the development costs related to the construction of a new market rate multifamily housing project (the “Lumberyard Flats Project”). The original application included an approximate 303-305-unit housing project with 18,000 square feet of commercial space on the first floor and a total development cost of $145 million. The project also included a proposal that would dedicate Block 2 for construction of a 90-unit Low-Income Housing Tax Credit (LIHTC) project at 80% area median income (AMI) for a period of 15 years from the certification of occupancy. The original application for TIF Assistance from the Developer was approximately $8,785,605. Since the original application was submitted, the scope of the project has evolved as related to 1) total number of units (reduced from 303-305 housing units with commercial space to a revised estimate of 285 housing units and no commercial space) and 2) total development cost – reduced from original estimate of $145 million to $109 million. The LIHTC project details have also evolved, and the project is now proposed as a 155-unit housing development project with all of the units at 60% AMI. Total investment for both Projects is over $160 million. The Developer initially requested $8,785,605 of financial assistance through tax increment financing (TIF) to assist with offsetting a portion of the development costs including Public Infrastructure Costs, Impact Fees, CILP, CILW, Franchise Utility Fees, and Bozeman Fiber Optic. The identified TIF-eligible costs and request for assistance increased to $9,639,613 as of May 2023 to include the financing needs for the Lumberyard Flats and LIHTC Projects. As a component of approvals for the Lumberyard Flats Project and the corresponding Development Agreement between the City and Developer for the public assistance package as further described in the memo, the Developer will be required to place a restrictive covenant on the adjacent parcel (Block 2) to include the construction of an affordable housing project (minimum 90-unit development with income levels of occupants no greater than 60% area median income). Reuter Walton is proposing the construction of a 155-unit affordable housing project (the LIHTC Project) that would meet that requirement. After review of the TIF application and supporting financial details of the Lumberyard Flats Project, the recommended level of assistance is $7,581,016 to offset a portion of the requested TIF-eligible project costs and to incorporate the financing needs for the LIHTC project. Prior to providing financial assistance, there are findings that need to be made by the City that include: 1) determination that a project qualifies and 2) determination that the project as proposed would not proceed without public assistance (meeting the “but-for” test). It can also be beneficial to make a determination that the estimated market value created on the site with tax increment financing assistance is greater than what would be created without assistance. When reviewing requests for financial assistance it is important to understand how the level of financial assistance would impact the ability of the project to proceed as proposed and maximize new value created on the current project site. The Developer applied for financial assistance including a description of the market rate housing project with supporting financials and other financing assumptions 205 including financial projections for future cash flow performance of both the multifamily and affordable housing developments. The purpose of this memorandum is to provide a summary of Baker Tilly’s review of the project costs and operating pro forma, as provided by the Developer to assist the City with making a determination if the project, as proposed, would be unlikely to proceed “but-for” the requested assistance, and to determine the appropriate amount, if any, of public assistance. A summary of the analysis related to the LIHTC Project is written as a separate memo. Following review of the Developer’s identified financial gap and need for public assistance, and projected financial performance of the project upon completion, we can recommend support of providing financial assistance for the project up to the requested amount of $7,581,016. Additional details regarding the proposed financial assistance package are included within Project Financing on page 2. Developer Request for Assistance The Developer is proposing an approximate $109 million market rate housing project that would be funded initially with an estimated $38.2 million of Developer equity (35%) and $70.8 million of private financing (65%). City upfront funding of $2.0 million would reduce the permanent upfront equity investment. We may see typical lending standards for similar projects in the 65-75% range, subject to terms of debt (interest rate and number of years) and availability of net operating income to support debt service payments. Project costs not supported by debt financing will be supported through equity or other funding (public) sources. It is possible based on the actual funding structures that the levels of debt and equity may adjust based on financial performance. Financial assistance from the City of Bozeman has been requested to reduce the permanent equity commitment for a portion of the extraordinary costs to meet minimum equity requirements and debt coverage ratios. The Developer’s request for assistance has included the City financing a portion of the TIF-eligible project development costs as reimbursement through bond issuance and pay-as-you-go financing following requirements of project completion via terms of the Development Agreement between the City and Developer. The Developer’s request for tax increment assistance is comprised of two tiers. 1) upfront lump-sum financing for part of the eligible off-site infrastructure costs associated with the construction of N 15th Ave, Tschache Lane, and N 14th Ave upon substantial completion and concurrent deed restriction of the West Block as further described below. The first tier of recommended assistance is upfront financing of $2,000,000 (subject to terms of the Development Agreement). 2) take-out financing for the balance of eligible costs associated with the development upon the certificate of occupancy of the Lumberyard Flats and LIHTC Projects. The second tier of recommended assistance is pay-as-you-go financing of $5,581,016 (subject to terms of the Development Agreement). The Developer stated in the application for assistance that the offsite infrastructure for this project would enable future development opportunities of surrounding land and has provided tax increment revenue estimates for additional completed developments in the District. The Developer indicates these projects would benefit from the off-site infrastructure improvements, in addition to the proposed Lumberyard Flats and LIHTC Projects. For purposes of our analysis, we are focusing solely on the need for financial assistance for the Lumberyard Flats Project based on the Developer’s submitted financing information. We may expect to see certain development costs associated with new construction projects including acquisition, site development and improvement costs, enhanced infrastructure improvement costs and structured/underground/enhanced parking. For this project, the Developer has indicated that tax increment financing assistance is necessary for the Project to proceed, as well as provide additional development opportunities in the area, and has identified several TIF-eligible development costs as requested be supported by the City. Extraordinary development costs that cannot be supported solely by the project alone typically may justify the need for some type of public financial assistance. The Developer’s total development cost budget and funding sources for the Lumberyard Flats Project are listed below. Sources Amount Development Costs Amount External Partners Equity $34,342,859 Land $7,575,000 Debt $70,171,676 Construction Hard Costs $68,909,139 Virga Capital Equity $3,815,873 Eligible Infrastructure Costs $5,208,009 Eligible Impact & Cash-in-Lieu Fees $2,913,573 TIF Upfront Soft Costs $9,495,848 206 TIF PayGO *Financing Costs $5,543,124 Owner Contingency $4,845,378 Developer Fee $3,175,485 Municipal Fees $1,359,787 Total Sources $109,024,929 Total Development Cost $109,025,343 * Public assistance through TIF as PayGO (up to the requested $5,581,016) would be used to reduce the level of permanent equity and/or increase level of debt service (pay-as-you-go) with additional annual cash flow provided through future tax increment revenues The Developer’s request for financial assistance from the City for construction of the project and sale of property for the LIHTC project is in the table below identifying both the requested amount for individual categories as well as the suggested potential costs that could be supported by the Lumberyard Flats Project. Categories of Costs (both Market Rate and LIHTC Project)TIF-Requested Project Costs Offsite Costs Offsite Infrastructure Costs $2,825,335 Civil and Design $151,299 * Virga Construction Management Fee $141,267 * CA $312,100 Northwest Energy/Bozeman Fiber $705,000 Interest on Offsites $78,149 Subtotal Offsite Costs $4,213,149 Overall Project Costs Water/Sewer (Onsite)$746,860 Subtotal Overall Project Costs $746,860 Total Offsite and Overall Project Costs $4,960,009 Onsite Costs Flats Project Impact Fees and CIL of Water $2,495,084 Cash-in-Lieu of Parks $280,472 Municipal Fees Contingency $138,017 Flats Subtotal $2,913,573 LIHTC Project Impact Fees and CIL of Water 1,296,646 Cash-in-Lieu of Parks $148,373 Municipal Fees Contingency $73,012 LIHTC Subtotal $1,518,031 Total Onsite and Municipal Fees Costs $4,431,604 Total Project Contingency $248,000 Total TIF Eligible Costs $9,639,613 Total TIF-Eligible TIF-Requested Project Costs $7,873,582 *Less: Non-Eligible TIF-Requested Project Costs $292,566 Total Recommended TIF Assistance $7,581,016 Project Financing There are different ways in which financial public assistance can be provided for development projects and historically the City has provided assistance through the issuance of tax increment revenue bonds upon some or all of project completion (take-out financing). This method can reduce the risk of debt issuance of the City as the development being completed is the source of revenue for which the tax increments are generated to repay the debt service. Alternate financing approaches to be considered (and as further described) may include upfront (prior to project completion) and/or on a pay-as-you-go basis (Developer financed and reimbursed over time with future increments). 207 With take-out financing, the Developer is responsible for financing all costs upfront through private investment (or other funding sources) and the City would reimburse a portion of those costs through bond issuance upon completion of the project (or determined level of private investment made or development completed) to generate sufficient revenues for debt repayment. With upfront financing, the City would finance a portion of the Developer’s initial project costs through the issuance of bonds or as an internal loan. This is generally done prior to construction commencement and used as a funding source when the Developer is unable to obtain sufficient upfront funds to pay all project costs. In certain cases, not all project costs generate revenues, and a development may experience a value gap, in which upfront funding is necessary to support all project costs. In this scenario, future tax increments generated by the new development would be collected by the City and used to pay debt service on City-issued bonds or repayment of an internal loan (subject to actual financing terms). With pay-as-you-go financing, the Developer would finance all project costs upfront and would be reimbursed over time for a portion of those costs as revenues are available. Pay-as-you-go-financing is generally more acceptable than upfront financing for the City because it shifts the risk for repayment to the Developer. If tax increment revenues are less than originally projected, the Developer receives less and therefore bears the risk of not being reimbursed the full amount of their financing. However, in some cases pay as you go financing may not be financially feasible. With bonds, the City would still need to make debt service payments and would have to use other sources to fill any shortfall of tax increment revenues. With internal financing, the City reimburses the loan with future revenue collections and may risk not repaying itself in full if tax increment revenues are not sufficient. The recommended structure of City assistance to the developer includes upfront bond financing to pay for a portion of the identified TIF-eligible costs (up to $2,000,000) as deemed necessary for development of the project. The remaining assistance ($5,581,016) would be provided as pay-as-you-go following the Developer incurring the actual project costs subject to reimbursement by the City with collection of future TIF revenues. Review of the Developer’s cash flow performance and discussions with the Developer have indicated financial assistance through pay-as-you-go would be financially feasible based on current market conditions. Financing Assumptions The assumption is that future tax increment revenues generated from the new housing development would be the source of repayment for the new project bond debt service. The property is currently paying taxes of approximately $43,000. The Developer provided total existing taxes of closer to $48,443 that also includes adjacent parcels. Upon development of the Projects, the Developer has estimated the new tax amount would be closer to $900,000. Additional analysis of the estimated total revenues and estimated increment amounts is listed in the table below. These estimates are based on the Lumberjack Flats Projects as the LIHTC Project is not expected to pay taxes. Certain assumptions were used to estimate the projected available property taxes and applicable tax increment revenues to assist with understanding feasibility of the project to support debt repayment up to the recommended assistance amount to support a portion of the infrastructure improvements. For purposes of our analysis, we are using estimates of total construction cost and comparison estimates to provide a range of projected taxable values of the project upon completion. Using the available information that has been provided and making some additional projections and assumptions, the table below illustrates a potential range of estimated valuations and corresponding revenues. We anticipate there may be adjustments as additional project details become available and building construction commences. Scenario 1 Scenario 2 Scenario 3 Scenario 4 Total Development Cost $109,025,343 $109,025,343 $109,025,343 $109,025,343 Total Construction Cost $68,909,139 $68,909,139 $68,909,139 $68,909,139 Basis for Taxable Value 90% Dev Cost 100% Const Cost $250,000/unit $200,000/unit Estimated Market Value $98,122,809 $68,909,139 $71,250,000 $57,000,000 Estimated Tax Revenues $752,406 $528,395 $546,345 $437,076 Existing Taxes $42,936 $42,936 $42,936 $42,936 Estimated Annual Incremental Tax $709,469 $485,459 $503,409 $421,745 Estimated Available Annual Revenues (80%)$567,576 $388,367 $402,727 $337,396 208 Developer Pro forma Analysis including But-For Upon approval of a TIF project, the City must make several findings, including the “but for” test: that the proposed development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The Developer has stated the assistance is necessary due to the high costs of developing the site, that includes acquisition of the property and installation of infrastructure, along with the inability of the project to support those costs upon completion. The current estimated project costs ($109,025,343) are in excess of the estimated future value of the building upon development (estimated range of $57- $98 million). Based on the Developer’s stated position relative to the need for tax increment financing assistance, the City could make its “but for” finding and provide tax increment assistance. We recommend, however, that the City also consider an appropriate level and type of TIF assistance for the project based on the information submitted by the Developer. The recommended level of assistance of $7.5 million is approximately 7% of total development costs. We understand that due to the Developer’s desire and vision for development of the project site (including sale of adjacent parcel and need to facilitate subsequent construction of the new affordable housing project) that there are additional costs to be incurred that enable the Lumberyard Flats and LIHTC Projects to proceed. Not all those costs will equate to increased value to the Developer, as represented by the total estimated taxable value upon completion. Following thorough evaluation of the project as provided allows the City to be prepared to make an informed “but-for” decision based on the likelihood of the project needing assistance, as well as the appropriate level of assistance. To complete this analysis, we reviewed the Developer’s provided operating proforma and constructed similar ten-year project proformas, showing a result if the Developer received the assistance and showing a result if the Developer did not receive assistance. Our analysis of the proformas included a review of the development budget, projected operating revenues and expenditures, and the project’s capacity to support annual debt service on outstanding debt. The purpose of evaluating the operating proformas is to understand the potential returns to the Developer through initial development and completion of the project (stabilization) and the operation of the enterprise over a 10-year period. The Developer is analyzing performance based on annual returns. Generally, should the rates of return lie below a reasonable range without assistance; we could assume the project as proposed would not move forward without assistance. Should the returns lie within a reasonable range with the assistance, we could assume the amount of assistance tested is appropriate for the project. All such estimates should be viewed as general indicators of performance and not exact forecasts. The number of current and future variables affecting these estimates and actual results are great. There is no set rate of return benchmarks that dictate whether a project needs TIF assistance or not; however, there are market industry standards for certain types of projects, as well as more specific investor/Developer thresholds that need to be achieved. An additional measure of project feasibility is the Debt Coverage Ratio (DCR), which is a calculation detailing the ratio by which operating income exceeds the debt-service payments for the project. If the DCR is greater than 1.0 it indicates the project has operating income that is greater than the debt-service payment by some margin; conversely if the DCR is less than 1.0 it indicates the project is incapable of meeting its debt-service payment and would need to seek additional revenue sources in order to pay its debt. Typical lending standards will require a DCR of significantly greater than 1.0 as a measure of cushion in the event actual revenues and expenses are different than projected. The Developer’s operating proforma includes meeting minimum DCR of closer to 1.15x, which could be considered reasonable for this type of project. It also illustrates that the project would not be able to support additional debt as a potential means of reducing the required level of equity and increasing the projected rate of returns. Our review of the operating proformas both with and without assistance, as well as modifications to the operating assumptions, provides a projected range of equity returns to the Developer including annual cash-on- cash upon project stabilization, yield on cost, and both leveraged and unleveraged internal rate of return (IRR). Testing the assumptions used to prepare the operating proformas assists with understanding how adjustments made to the upfront levels of debt and equity amounts, and operating details that include annual revenues 209 generated from the new housing units and other supporting uses, vacancy rates and operating expenses for the project and annual revenue and expense inflators are expected to impact the projected Developer returns. The Developer has provided projected annual cash-on-cash returns of the project without financial assistance resulting in projected below market returns. Financial assistance from the City would increase the projected returns as it would reduce the Developer’s permanent equity investment in the project. This is based on information provided by the Developer regarding the annual operating assumptions for revenues and expenditures and debt service payments. The analysis includes assumptions relative to the multifamily housing industry terms including projected lease rates and other operating revenues, vacancy rates and operating expenses to understand net operating income (NOI) as a function of availability of revenues to support debt service to meet minimum debt coverage ratios and equity investor returns. Based on the Developer’s assumptions used in the original operating proforma illustrating projected cash flow of the project upon completion, public assistance would be considered necessary to increase the Developer’s projected annual cash-on-cash rate of return. Review of the operating proformas based on with assistance and with no assistance provides an understanding of the potential range of financial feasibility for this project and what the estimated gap would be without assistance. It is important to note that certain assumptions were made based on the applicant’s provided information and market industry standards for annual lease rates, vacancy rates and annual revenue and operating expense inflators to provide an understanding of the project performance. Adjustments made to those assumptions assist in determining potential impacts on project performance and what a required level of assistance (type and total amounts) may be. Below is a summary of the applicant’s financial assumptions related to the operating proforma: 1) 2% annual revenue and 2% expense inflator 2) 5% vacancy rate 3) 33% operating expense ratio 4) 285 rental units average $2.54/SF rent 5) Parking income a. Ranging from $35/month for car ports (87 spaces) to $125/month for tuck under (69 spaces) To understand viability of the project and need for an appropriate level of public assistance, we provided a sensitivity analysis to the proformas with adjustments made to the total project costs (including land/building acquisition, construction costs, soft costs, Developer and other related construction management fees and contingency) and corresponding funding sources, as well as projected annual lease rates and operating expenses. Realizing any adjustments is all subject to market conditions. The purpose of the sensitivity analysis is to test the level of assistance that may be needed using those assumptions to understand if the recommended level of assistance could be consistent with the City’s objectives resulting in less assistance than what has been requested. We have also reviewed the project assumptions in light of the adjustments made to the project details as described under the Executive Summary. Conclusion The Developer is proposing a $109 million project comprising of development of the project site including construction of 2 multifamily housing projects (one market rate with 285 units and one affordable with 155 units). Financial assistance of approximately $7.5 million has been recommended from the City of Bozeman to finance a portion of the development costs including public infrastructure costs, impact Fees, cash-in-lieu for parks, cash-in-lieu for water, franchise utility fees, and fiber optic as related to the project. The Developer’s application and supporting financial data illustrate a need for public assistance to reduce Developer equity and increase the projected rates of returns. Additional due diligence review of the provided financial information with sensitivity analysis of the assumptions based on market data has resulted in support for the need for public assistance. However, following review of the financial project components of the project, it has been determined that providing financing for certain development costs would be consistent with the city’s use of tax increment financing, but not to the full requested level, based on what is considered extraordinary for the project. It is also important to understand that the projected performance of the project will be dictated by actual market and financial conditions. Should actual lease rates and net operating income greatly exceed current and forecasted market trends, project performance would be expected to increase, but not to a level significant enough to reduce the need for public assistance. Costs that could be considered to be supported for reimbursement through TIF are listed below as Potential TIF Costs. 210 Categories of Costs (both Market Rate and LIHTC Project)TIF-Requested Project Costs Offsite Costs Offsite Infrastructure Costs $2,825,335 Civil and Design $151,299 * Virga Construction Management Fee $141,267 * CA $312,100 Northwest Energy/Bozeman Fiber $705,000 Interest on Offsites $78,149 Subtotal Offsite Costs $4,213,149 Overall Project Costs Water/Sewer (Onsite)$746,860 Subtotal Overall Project Costs $746,860 Total Offsite and Overall Project Costs $4,960,009 Onsite Costs Flats Project Impact Fees and CIL of Water $2,495,084 Cash-in-Lieu of Parks $280,472 Municipal Fees Contingency $138,017 Flats Subtotal $2,913,573 LIHTC Project Impact Fees and CIL of Water 1,296,646 Cash-in-Lieu of Parks $148,373 Municipal Fees Contingency $73,012 LIHTC Subtotal $1,518,031 Total Onsite and Municipal Fees Costs $4,431,604 Total Project Contingency $248,000 Total TIF Eligible Costs $9,639,613 Total TIF-Eligible TIF-Requested Project Costs $7,873,582 *Less: Non-Eligible TIF-Requested Project Costs $292,566 Total Recommended TIF Assistance $7,581,016 Without public assistance the project is expected to generate below market investor returns. With assistance at the recommended level, the project performance is expected to increase, but still be on the low range of market returns. The financial analysis demonstrates that public assistance through TIF from the City of Bozeman has a positive impact on the project and the level of financial assistance to be considered could be considered a reasonable level and provide for a financially feasible project. Based on financial performance of the project following new construction and stabilization, it appears public assistance for certain costs could be provided as either takeout financing (City debt issuance) or pay-as-you-go reimbursement financing. The ability of the Developer to obtain financing and using future tax increment revenues for repayment will be subject to credit and marketability of the project. Development of the project site is expected to result in the increase of property values and taxes generated from the site. The projected range of taxable values and correlating tax estimates is included in the chart under Financing Assumptions. The incremental taxes generated from the new taxable value would be used to finance the TIF-eligible costs of the Projects. 211 The Lumberyard Bozeman, MT The Lumberyard TIF Assistance Request 1 A mixed-use development in Bozeman, Montana 212 PART 1 2 ➢PROPERTY INFORMATION ➢APPLICANT INFORMATION ➢COMPANY PROFILE ➢PROJECT DETAIL ➢PROJECT NARRATIVE ➢SITE MAPS & BUILDING PLANS ➢CRITERIA FOR TIF ASSITANCE 3 5 14 9 4 4 6 213 PROPERTY INFORMATION 3 SITE Bozeman Yellowstone International Airport Downtown Bozeman Bridger Mountain Range 45-mi to Big Sky Property Address:NW Corner of Patrick St and N 11th Ave Property Owner / Developer Virga Venture I LLC / Virga Capital Legal Description A tract of land being Lots 1 and 2, Block 3 of the PT Land Phase 2 Subdivision (Plat J-498), and Lot 3A of the amended Plat of Lot 3, Block 3, and Lot 6A of the PT Land Phase 2 Subdivision (Plat J-498A), all located within the Northwest One Quarter of Section 7, Township 2 South, Range 6 East, City of Bozeman, Gallatin County, Montana. Said area being 517,720 square feet or 11.89 acres more ore less and subject to all easements of record. 214 4 APPLICANT INFORMATION Applicant’s Primary Contact:Rob Lateiner Developer Virga Capital legal@virgacapital.com COMPANY PROFILE Business Location:The project site is a vacant, undeveloped parcel located at the northwest corner of Patrick and 11th Avenue. Year Business Established:2020 Type of business:Virga Venture I LLC is a real estate holding entity. Property Geo-Code(s)Parcel 1: 06-0798-01-2-05-01-0000 Parcel 2: 06-0798-01-2-05-05-0000 Parcel 3: 06-0798-01-2-05-03-0000 County Tax ID #RGG62598 RGG62599 RGG62597 PROPERTY INFORMATION 215 PROJECT DETAIL 5 Property Status:Vacant undeveloped land. Type of Assistance Sought:Public Infrastructure Costs, Impact Fees, CILP, CILW, Franchise Utility Fees, Bozeman Fiber Optic Value of TIF Assistance Sought:Approx. $8,122,343 Will this project proceed if TIF assistance is not granted? The project will not move forward as presently designed. INSERT SIGNED APPLICATION 216 PROJECT NARRATIVE 6 The Lumberyard is a planned ground-up development located at the northwest corner of N. 11th Avenue and Patrick Street, extending west to N. 15th Avenue and north to Tschache Lane. The project site, situated in the Midtown Urban Renewal District, is currently a vacant parcel of land. The project will deliver a mix of uses at completion, including conventional multifamily housing and LIHTC housing. The project aims to promote a high quality of life and a healthier lifestyle. The project site is centered around a privately maintained, shared-use walking path, with access and storage for bicycles throughout the site. To the project's west is the Bridger Peaks Town Center, which features a grocer, several banks, restaurants, and clothing stores. The shopping center is less than 900 feet from the project site promoting walkability and bike-ability for future residents. In addition to walkability and bike-ability, the project encourages the reduction of a carbon footprint through the use of public transit and electric vehicles. Within two blocks are one current and one future Blue line bus stop, which feature connectivity to the 19th Street corridor, the 7th Street corridor, and downtown Bozeman. Proposed Uses East Block ("Block 3") This project will be comprised of five 4-story 57-plex buildings and a central amenity/leasing center (~6000 SF) for its residents for a total of 285 residences. The residences will be a mix of studio, 1-, 2- and 3-bedroom homes with tuck-under parking. The project’s amenity/leasing center will feature flexible indoor recreation, gathering, and fitness areas indoors and will include multiple private gathering areas, outdoor game activity areas, and shared green space. There will also be dog runs placed accordingly on the property. The residences have been arranged on-site to take advantage of the unique location of the parcel. Multiple buildings in a small auto court configurations help to organize the site. The exterior design of the buildings will promote a distinctive multi-family style with materials, massing, and details that are compatible with the surrounding neighborhoods. The four-story massing is broken up with a variety in detailing, materials, color, and elevation forms. West Block (“Block 2”) The West Block (Block 2) is still in the initial planning phase and will include a Low-Income Housing Tax Credit (LIHTC) community. We are proposing to deed restrict Block 2 with 90 LIHTC units at 80% AMI for a period of 30 years from the certificate of occupancy. 217 PROJECT NARRATIVE continued 7 Below is a preliminary civil set that outlines the blocks referred to above. 218 8 Site Acquisition:July 2021 Zoning Change from B2 to B2-M:April 2022 Off-Site Construction Start:Summer 2022 LIHTC Construction Start:Late-2023/Early 2024 Flats Construction Start:Winter 2024 Projected Timeline 219 CRITERIA FOR TIF ASSISTANCE 9 Promote Economic Development 1.Tax Generation: At construction completion, the project will greatly increase the tax base for the site. Once the offsite infrastructure is completed and the project catalyzes the streetscape and surrounding area, we expect rising surrounding property values and additional development to follow on adjacent parcels. 4/4 2. Elimination of Blight: Currently, the 11.89-acre site is vacant land, and the surrounding streets: Tschache Lane, N 14th Avenue, and N 15th Avenue, are undeveloped. Once construction is complete, the project site will feature a cohesive and robust development, built-out streets, and updated pedestrian access in the form of sidewalks and walking paths. Further, the completion of Tschache provides connectivity between Midtown and the 19th Avenue commercial corridor. 4/4 3.Employment Generation: Employment generation at the site will be long-lasting. A local team of consultants and contractors will design and construct the project. During construction, the project could employ up to 50+ people at a given time. The multifamily will be a long-term employer of multiple onsite staff including property managers, maintenance staff, as well as third-party contractors. 3/3 220 CRITERIA FOR TIF ASSISTANCE 10 Improve Multi-Modal Transportation 4.Facilitates Public Health and Mobility: The project promotes accessibility as the current site is undeveloped and restricts connections between existing streets and trails. The proposed project will provide connectivity across the property with a privately maintained shared-use path, beginning at the southwest corner through the center of the property and ending at the northwest corner. This trail will be a privately maintained shared-use path available for multi-modal transportation. Additionally, all portions of the project will have ADA-accessible features. The proposed project will provide spaces for active recreation. 1/1 5. Reduces Resource Demand: The project promotes the use of transit as our shared-use path directs users to (2) nearby transit stops within 800’ of the site. (1) transit stop is currently existing, while the second is proposed and not currently built due to the undeveloped streets in the area. The proximity of the site to neighborhood services promotes efficient use of resources. Additionally, the proposed development aims to include electric vehicle charging stations with the flexibility to add more as EV adoption becomes more prevalent. 1/1 6.Promotes Active Transportation: The project promotes bicycling as an active transportation option, specifically for exercise on paths near and through the site and for accessing the N 19th Avenue commercial corridor. The project will include ample bicycle parking for residents, visitors, and employees. 11th Avenue and 15th Avenue as collectors include bike lanes. The proximity of the site to neighborhood services encourages active transportation. 2/2 221 CRITERIA FOR TIF ASSISTANCE 11 Improve, Maintain and Support Innovation in Infrastructure 7.Infrastructure Improvements: The project includes both innovation in infrastructure as well as reduction of long-term maintenance. We have low-impact development for stormwater, as well as car charging stations. Our LID features include bio-retention facilities and permeable pavers. The project enables better connectivity as current right- of-ways do not exist and our project has a privately maintained shared-use path extending east-west connecting (2) existing trails. The project provides long-awaited key connections of 11th Avenue & 15th Avenue to Tschache and the N 19th Avenue commercial corridor. These connections allow continued connectivity and future development in the area of the TIF district. 2/2 Promote Unified Human Scale Urban Design 8.Reduce Vehicular Access: The project improves the pedestrian experience through the construction of sidewalks around the site’s perimeter and the walking path that bisects the property. Additionally, the improvements on Tschache Lane, N 15th Avenue, and N 14th Avenue reduces the impact on existing infrastructure. 2/2 9. Enhances North 7th Ave Entryway Corridor: The project would be the first of its kind in the Midtown Urban Renewal District, a predominantly commercial use district. The addition of residents will benefit businesses and improve walkability of the neighborhood tremendously. 2/2 10.Street Frontage: Thoughtful site planning with the inclusion of parking interior to the site, allowing buildings to front the exterior give the feeling of the Storefront Block Frontage Standards. Additionally, we will introduce building articulation, landscaping throughout the site, and building access from the streetscape to engage street frontage. 2/2 222 CRITERIA FOR TIF ASSISTANCE 12 11.Quality of Development and Overall Aesthetics: The design intends to exceed the Bozeman UDC requirements to deliver a vibrant, cohesive neighborhood comprised of multifamily and LIHTC housing. Additionally, the project promotes walkability and connectivity via multiple pathways and delivers ample open space across the landscaped site for residents to enjoy. 2/2 Promote Unified Human Scale Urban Design Support Compatible Urban Density Mixed Land Uses 12.Increases Housing Units: The project proposes 285 conventional apartment units and a minimum of 90 LIHTC housing units for a total of 375 new housing units. Throughout the development, we've included a mix of studio, one-bedroom, two-bedroom, and three-bedroom floorplans. 6/6 13.Mixed Use: The overall development includes a cohesive residential community that serves multiple income levels. 6/6 14.Shared Parking: Internal parking lends itself to being easily shareable between communities. 2/2 223 CRITERIA FOR TIF ASSISTANCE 13 15.Affordable Dwelling Units: The West Block will deed restrict and deliver a minimum of 90 LIHTC housing units for a period of 30 years. 3/3 Support Compatible Urban Density Mixed Land Uses Overall District Relevance 16.Relevance to the Midtown Urban Renewal Plan: The Lumberyard’s mixed-use program aligns with all goals of the MURP. The residential programs promote mixed land uses, in a unified development, focused on human-centric site design, that connects users not just of the residential components, but outside the community to the commercial uses on- site that lead to the economic development of this area. In addition, the development adds critically needed street infrastructure. 5/5 17.Public Fund Leverage Ratio: The investment of public funds results in a 12.5:1 leverage ratio. $8,122,343 public / $101,268,977 private investment, 25% higher than the minimum leverage ratio for multifamily of 10:1. 4/4 TOTAL POINTS: 52/52 224 SITE MAPS AND BUILDING PLANS INSERT SECTION TITLE HERE IN ALL CAPS 14 Downtown Bozeman View West View East View Northwest View Southeast Deed-Restricted LIHTC Units 225 TIF REQUEST 15 Our TIF request is comprised of two tiers. In the first tier, we seek upfront lump-sum financing for part of the eligible off-site infrastructure costs associated with the construction of N 15th Ave, Tschache Lane, and N 14th Ave upon substantial completion and concurrent deed restriction of the West Block as further described below. The first tier of requested upfront financing is $2,000,000. In the second tier, we are requesting take-out financing for the balance of eligible costs associated with the development upon the certificate of occupancy of the Lumberyard Flats and LIHTC community. The second tier of requested take-out financing is $6,122,343. Above is an estimate of future property taxes versus what the property currently pays as raw land. At the completion of the overall project, it’s reasonable to estimate there is roughly $812,000 of additional property taxes to be paid by the property on an annual basis. 226 Site Aerials 16 Facing Southeast Facing Northwest 227 The Flats Preliminary Renderings INSERT SECTION TITLE HERE IN ALL CAPS 17 View West View East View Northwest View Southeast 228 The Flats Preliminary Exterior Elevations 18229 The Flats Floorplans 19230 Clubhouse Renderings 20 View West View East View Northwest View Southeast 231 Clubhouse Elevations 21232 Clubhouse Floorplan INSERT SECTION TITLE HERE IN ALL CAPS 22233 PART 2 23 ➢SOURCES AND USES OF FUNDS ➢DEVELOPMENT BUDGET ➢BUDGET OF TIF ELIGIBLE EXPENSES Facing East 31 31 32 ➢OFFSITE INFRASTRUCTURE EFFECTS 33 234 Overview 24 PART 2 FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE Project Financial Information In order for the Midtown Urban Renewal District Board to adequately review applications seeking TIF assistance, the following information must be submitted with the application. This information will be used to perform a third-party financial analysis to determine the project’s anticipated return on investment (ROI) and reasonableness of developer profit. The goal of the Midtown TIF Assistance program is to make projects financially feasible. Therefore, projects that demonstrate financial need for public funding will be given priority. 1. Sources & Uses of Funds a. Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, other anticipated types of public assistance, and any other types or methods of financing. Describe the sources of equity and include a term sheet for lender financing, if available. b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project budget must identify the up-front sources intended to finance the development costs of the project. If determined, specify the specific line items of the project budget that each source will finance. c. Summarize the uses of funds. General categories to be identified include acquisition and related site costs, hard construction costs, and a breakdown of soft costs. 2. Development Budget Provide an accurate and detailed development budget for the project that includes a detailed breakdown of significant line item costs consistent with the sample included in the application packet. The budget should be arranged to identify acquisition and site related costs, hard costs, and soft costs. Also, identify all line items that are performed by the developer, owner, or related entities. 3. Budget of TIF Eligible Expenses Identify which of the development budget costs are eligible for reimbursement as allowed by 7-15- 4288, MCA. 4. Financial Commitments Submit commitment letters and/or term sheets from all lenders for proposed debt (such as construction, mezzanine, permanent, and government financing) and all other financial sources of the project (such as grants, and tax credits). Commitment letters must clearly specify the nature and terms of the obligations. 235 Sources and Uses of Funds 25236 Summary of TIF Eligible Costs 26237 Offsite Infrastructure Effects 27 The offsite infrastructure for this project will catalyze future development of surrounding land. Two projects in particular to the parcel's north and west propose significant multifamily and hotel developments. To the subject property's north, the project named PT LAND SUBDIVISION PHASE 3 PP proposes up to three phases of hotel and retail development badly needed in Bozeman. To the subject property's west, the project named BOZEMAN EAST MIXED-USE DEVELOPMENT MASP proposes up to 305 apartments with 18,000+ SF of ground-floor commercial. These projects, combined with the subject property, are reliant on the off-site infrastructure improvements and unlock millions of dollars of future tax revenue, hundreds of jobs, and over 600 units to help combat the growing and present lack of housing in Bozeman. SITE 238 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Renata Munfrada, Community Housing Coordinator Brit Fontenot, Economic Development Director Jeff Mihelich, City Manager SUBJECT:Authorize the City Manager to sign the Grant Agreement with NeighborWorks Montana in support of the Gallatin Housing Impact Fund MEETING DATE:August 15, 2023 AGENDA ITEM TYPE:Grant RECOMMENDATION:I move to authorize the City Manager to sign the Gallatin Community Housing Impact Fund Grant Agreement with Neighborworks Montana. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND: NeighborWorks Montana (NWMT) is a federally certified community development financial institution (CDFI), which specializes in financing affordable housing. NWMT is working with a group of stakeholders including the City of Bozeman, First Security Bank, HRDC, and One Valley Community Foundation to raise a fund, the Gallatin Housing Impact Fund, to support affordable housing projects in Gallatin County. NWMT will host and manage the fund on behalf of donors and investors to benefit affordable and workforce housing projects. The target for the fund includes a range of income levels. "The initial fund targets will be to support projects serving renters with incomes up to $70,000 per household and create homeownership opportunities for households with incomes up to $150,000 per household. At least 60% of the fund dollars and projects funded will serve households making less than 80% of the area median income, and the highest income levels served will be 150% of area median income." 239 These target parameters align well with City policy set by the recent Affordable Housing Ordinance (AHO) and the Community Housing Action Plan which describe a target AMI as between 80% and 120%. The goal is to raise a $10 million fund and start deploying funds immediately. NWMT has already secured commitments to the fund from First Security Bank, Stockman Bank, Opportunity Bank, American Bank, Bank of Bozeman, and Clearwater Credit Union. Staff recommends that the City grant $1 million to the Gallatin Housing Impact Fund managed by NWMT. The donation extends limited public resources by harnessing up to nine private dollars for every one public dollar committed to the fund. While the fund is available for deployment anywhere in Gallatin County, NWMT agrees that “NWMT, as the administrator of the Fund, agrees to use the Grant to make a loan from the Fund for a housing project acceptable to NWMT and the City and located within the City limits prior to June 30, 2024”. In addition, NWMT agrees that at least $1 million from the fund will be used to make loans to housing projects located within the City limits. The City has already identified acceptable initial projects. For example, a potential loan out of the fund is a $2.5 million loan to Reuter Walton Development to close the remaining gap on LIHTC apartment development in the west block of the Lumberyard project. NWMT has provided a commitment letter to Reuter Walton for $2.5M contingent on closing City and investor dollars into the fund. While the City of Bozeman has traditionally made grants to support affordable housing projects, the use of loans to fill financing gaps allows the project to proceed, while returning limited resources to the community to support future affordable housing projects. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As recommended by the City Commission FISCAL EFFECTS:The $1,000,000 for this grant is available in the Community Housing Fund for Fiscal Year 2024. These funds consist primarily of unspent funds from Fiscal Year 2023, which the City Commission re-appropriated for the current fiscal year, and which staff did not spend in anticipation of recommending this grant agreement for approval. Attachments: Bozeman Grant Agreement v.4.docx Community Housing Fund_Structure and Offer_April 2023.pdf Gallatin Housing Impact Fund_Loan Program Term Sheet.pdf 240 Gallatin Housing Impact Fund_Loan Program Term Sheet.pdf Report compiled on: August 7, 2023 241 1 Gallatin Community Housing Impact Fund Grant Agreement This Grant Agreement (“Agreement”) is made and entered into by and between City of Bozeman, Montana, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of P.O.Box 1230, Bozeman, MT 59771(the “City”)andMontana Homeownership Network, Inc., doing business as NeighborWorks Montana (“NWMT”), with a mailing address of P.O. Box 1025, Great Falls, MT 59403, as of August 15, 2023 (the “Effective Date”). WHEREAS, the Bozeman City Commission may make grants of money for public purposes pursuant to Section 7-1-4124(9), Montana Code Annotated (“MCA”); and WHEREAS, on October 17, 2005, the Bozeman City Commission adopted Resolution No. 3866, establishing policies for the granting of funds from the City; and WHEREAS, the Bozeman City Commission determines the granting of funds under this Agreement is for a public purpose benefitting the community as described herein; and WHEREAS, the City has identified the lack of available affordable housing as a significant challenge within the City; and WHEREAS, encouraging the development of sustainable and lasting housing options for lower income individuals and families is one of the City’s strategic goals; and WHEREAS, among other programs, the City has developed an affordable housing fund to provide assistance to facilitate affordable housing development in the City; and WHEREAS, the City has adopted a Community Housing Action Plan, which outlines a partnership framework to address community housing in the City; and WHEREAS, NWMT is a statewide community development financial institution whose mission is to strengthen communities by providing education and financing that gives every Montanan the opportunity to live in a home where they can thrive; and WHEREAS, NWMT has worked with various private sector partners to develop a Gallatin Community Housing Impact Fund (the “Fund”) for the purpose of offering low-interest financing to encourage for-profit and nonprofit developers, investors and local governments to partner with community housing providers to preserve and expand housing solutions in Gallatin County; and WHEREAS, the Fund will be administered and managed by NWMT under the guidance of an advisory board (the “Board”), which shall operate in accordance with the provisions of the Gallatin Community Housing Impact Fund Advisory Board Charter; and WHEREAS, the Fund is seeking a combination of investments and donations, as a combination of investment and philanthropy will allow the Fund to charge lower interest rates to 242 2 borrowers, supporting the preservation and creation of more units of housing and creating deeper affordability impacts; and WHEREAS, the City has determined that making a grant to the Fund, on the terms and conditions set forth in this Agreement, will help the City to achieve the purposes of its affordable housing fund and maximize the impact of its affordable housing dollars. NOW, therefore, the parties agree as follows. 1.The Grant. Subject to the terms and conditions hereof, the City hereby grants $1,000,000 (the “Grant”) from the City’s affordable housing fund to NWMT as a donation to the Fund. NWMT hereby accepts the Grant and agrees to use the Grant in accordance with the terms and conditions set forth in this Agreement. 2.NWMT Representations. (a)NWMT has familiarized itself with the nature and extent of this Agreement and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect NWMT’s performance under this Agreement. (b)NWMT represents and warrants to City that it has the experience and ability to perform its obligations under this Agreement; that it will perform said obligations in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary for NWMT to meet this warranty. (c)NWMT represents and warrants to City that the Grant funds are necessary to accomplish the financial requirements of the Fund. 3.The Initial Loan; Loans Within City Limits. (a)NWMT, as the administrator of the Fund, agrees to use the Grant to make a loan from the Fund for a housing project acceptable to NWMT and the City and located within the City limits prior to June 30, 2024. (b)The parties agree that if the Grant is not used to make a loan for a housing project in accordance with subparagraph 2(a) above by June 30, 2024, NWMT will repay the Grant to the City, unless the City agrees in writing to an extension. (c)In consideration of receipt of the Grant and in furtherance of the purpose of the Fund, NWMT agrees that, following the initial deployment of the Grant to make a loan as described in subparagraph (a) above, a minimum of$1,000,000 of the Fund will be used to make loans for housing projects located within the City limits, measured on an annual basis as of the last day of the fiscal year of the Fund. The parties recognize that the Fund 243 3 is a revolving loan fund, and that amounts loaned from the Fund will be repaid and re- deployed over time. The parties intend that, as far as reasonably possible, in each year the Fund will have a minimum of $1,000,000 in loans outstanding to housing projects located within the City limits. 4.The Board. NWMT has created or shall create the Board to provide input to support the success of the Fund. The City shall have the right to appoint a member to the Board, and the City hereby selects the [City Manager or his or her designee] to represent the City on the Board. Meetings of the Board shall be open to the public and members of the public shall be given the opportunity to be heard. 5.Reports/Accountability/Public Information. If Grant funds are paid to NWMT, NWMT will provide to the City on an annual basis a formal written report that includes, at a minimum, information regarding the loans made by the Fund. NWMT shall maintain complete records of receipts and expenditures for the Fund pursuant to generally accepted accounting principles, and NWMT agrees to develop and/or provide such other documentation as requested by the City demonstrating NWMT’s compliance with the requirements of this Agreement. NWMT shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that monies provided to NWMT pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. NWMT shall retain annual financial records for seven years after the applicable fiscal year and shall retain records relating to specific loans from the Fund for seven years after the repayment in full of the applicable loan. NWMT shall not issue any statements, releases or information for public dissemination relating to the City’s role in the Fund without prior approval of the City’s Representative described in Section 13 hereof. 6.Independent Contractor Status. The parties agree that NWMT, its agents, employees, contractors, or subcontractors, are independent contractors for purposes of this Agreement and are not to be considered employees or agents of the City for any purpose. NWMT and its agents, employees, contractors, and subcontractors are not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered City employees for workers’ compensation or any other purpose. NWMT, its agents, employees, contractors, and subcontractors are not authorized to represent the City or otherwise bind the City in any way. 7.Termination for NWMT’s Fault: (a)If NWMT refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and NWMT’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). (b)In the event of a termination pursuant to this Section 7: (i) within 20 days of the date of the Termination Notice Due to Contractor’s fault, NWMT shall return to the City any amount of the Grant that has not been loaned as of the date of the Termination Notice Due to Contractor’s Fault, together with all books, records and all other information related to the loans that have been made using amounts of the Grant, and (ii) within 90 days 244 4 after the date of the Termination Notice Due to Contractor’s Fault, NWMT shall be required to repay to the City the portion of the Grant that has been loaned, less net Fund loan losses relating to housing projects within the City limits as of the date of such termination notice. The City may take any action, including any legal action it deems necessary, to recover such amount from NWMT. (c)Any termination provided for by this Section 7 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. (d)In the event of termination under this Section 7, NWMT shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 8.Termination for City’s Convenience: (a)Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to NWMT (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against NWMT. (b)Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, NWMT may immediately cease performance under this Agreement. (c)In the event of a termination pursuant to this Section 8, NWMT shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9.Default Provisions. If NWMT dissolves, the Fund dissolves, the Grant is not used in accordance with this Agreement, including Section 3 hereof, or NWMT otherwise fails to comply with the terms and conditions of this Agreement and this Agreement is terminated as described in Section 7 hereof, the City shall then have the right to: (a)Pursue any action available to it, at law or in equity, including specific performance, in order to enforce the terms of this Agreement, and (b)Recover (i) any amount of the Grant that has not been loaned as of the date of the termination, and (ii) within 90 days after the date of the termination, the portion of the Grant that has been loaned, less net Fund loan losses relating to housing projects within the City limits as of the date of termination. The City may take any action, including any legal action it deems necessary, to recover such amount from NWMT. 245 5 Whenever any Event of Default described in this Agreement occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of NWMT herein contained, and the City prevails in an action to enforce this Agreement, NWMT agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses as may be reasonably and appropriately incurred by the City in connection therewith. 10.Governing Law. This Agreement shall be governed by the laws of the State of Montana without regard to the conflict of law principles thereof. 11.Assignment. Neither this Agreement nor any of the rights, benefits, duties or obligations provided herein may be assigned by NWMT without the prior written consent of the City. 12.No Third Party Beneficiary. The terms and provisions of this Agreement are intended solely for the benefit of each party and their respective successors and assigns. It is not the parties’ intent to confer third party beneficiary rights upon any other person or entity. 13.Representatives. (a)City’s Representative. The City’s Representative for the purpose of this Agreement shall be Brit Fontenot, Economic Development Director, or such other individual as City may designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to the City’s Representative and approvals or authorizations will be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, NWMT may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. (b)NWMT’s Representative. NWMT’s Representative for the purpose of this Agreement shall be Kaia Peterson, Executive Director, or such other individual as NWMT designates in writing. Whenever direction to or communication with NWMT is required by this Agreement, such direction or communication must be directed to NWMT’s Representative; provided, however, that in exigent circumstances when NWMT/s Representative is not available, City may direct its direction or communication to other designated NWMT personnel or agents. 14.Indemnity/Waiver of Claims. To the fullest extent permitted by law, NWMT agrees to defend, indemnify and hold the City and its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against all third party claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, which arise out of, relate to or result from NWMT’s (i) negligence, or (ii) willful or reckless misconduct. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this 246 6 Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). NWMT’s indemnification obligations under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against NWMT to assert its right to defense or indemnification under this Agreement the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines NWMT was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. NWMT also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per Section 28-2-702, MCA. The obligations set forth in this Section 14 shall survive termination of this Agreement. 15.Nondiscrimination, Equal Pay, and Living Wage. NWMT agrees that all hiring by NWMT of persons performing this Agreement shall be on the basis of merit and qualifications. NWMT will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. NWMT will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. In addition, NWMT represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). NWMT must report to the City any violations of the Montana Equal Pay Act that NWMT has been found liable for or guilty of within 30 days of such finding for violations occurring during the term of this Agreement. NWMT shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16.Amendments. This Agreement may be supplemented, amended, or modified only by the mutual written agreement of the parties. 17.Attorney’s Fees and Costs. In the event it becomes necessary for a party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in-house counsel to include the City Attorney. 247 7 18.Waiver. A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19.Notices. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City or NWMT will be in writing and will be delivered to such party either: (i) by personal hand-delivery, or (ii) by depositing the same in the United States mail, certified mail with return receipt requested, addressed to such party at the address named below, with postage prepaid thereon. Notice will be deemed complete upon receipt of the notice pursuant to any of the foregoing methods of notice. If to City: City of Bozeman Attention: Bozeman City Manager 121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771 If to NWMT: NeighborWorks Montana Attention: Kaia Peterson, Executive Director P.O. Box 1025 Great Falls, MT 59403 The City and NWMT, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 20.Severability. If a court of competent jurisdiction holds any provision of this Agreement invalid or unenforceable, the remaining provisions will nonetheless be enforceable. If such court determines that any provision of this Agreement is held to be overbroad as written, such provision will be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and enforced as amended. 21.Term. This Agreement shall be effective as of the Effective Date and shall continue for thirty (30) years, unless earlier terminated (i) as described in Sections 7, 8 and 9 hereof; (ii) by the City, in its sole discretion; or (iii) by NWMT, only if it repays the City the full amount of the Grant. 22.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed one and the same instrument. 23.Consent to Electronic Signatures. The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. 248 8 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date. CITY OF BOZEMAN, MONTANA By:_______________________________________ Printed Name: Jeff Mihelich Title: City Manager 249 9 NEIGHBORWORKS MONTANA By:_______________________________________ Printed Name: Title: 250 GALLATIN COMMUNITY HOUSING IMPACT FUND FUND PURPOSE To provide stable returns for long-term investments to fund housing solutions. The fund will offer low- interest financing to encourage for-profit and nonprofit developers, investors, and local governments to partner with community housing providers to preserve and expand housing solutions in Gallatin County. FUND TARGETS The initial fund targets will be to support projects serving renters with incomes up to $70,000 per household and create homeownership opportunities for households with incomes up to $150,000 per household. At least 60% of the fund dollars and projects funded will serve households making less than 80% of the area median income, and the highest income levels served will be 150% of area median. Refer to loan program terms for more detailed parameters. ANTICIPATED IMPACT This fund is anticipated to create and preserve 850 units of housing. Fund dollars are expected to be leveraged 8:1 attracting $80,000,000 in dollars from other sources. IMPACT FUND ADVISORY BOARD Funds will be invested in NeighborWorks Montana who will administer the fund under the guidance of a local fund advisory board. The advisory board will be comprised of loan pool investors. Each investor with $250k or more invested in the fund will hold a seat on the board. The board will meet bi-annually to review deployment and impacts. Other stakeholders may be invited to attend meetings for education and discussion. Role of the Advisory Board High level fund parameters and targets have been set up front to meet community needs. The advisory board will have the ability to adjust maximum loan dollars per project, and oversee and approve any changes in fee structure requested by NWMT. The advisory board will not define specific products or more detailed underwriting standards. These will be defined by NeighborWorks Montana as the fund manager. Advisory board members may also be called on to provide local market perspective for NWMT underwriting and provide suggestions for market needs that could be addressed using available Impact Fund dollars. NEIGHBORWORKS MONTANA FUND MANAGEMENT NeighborWorks Montana will be responsible for all fund management and administration. This includes loan product development, policies and procedures, marketing, receipt of applications, underwriting, originating, and servicing. NeighborWorks Montana is a statewide Community Development Financial Institution whose mission is to strengthen communities by providing education and financing that gives every Montanan the opportunity to live in a home where they can thrive. 251 NWMT will charge origination of 1.00% of total loan amount for all loan types. In addition, NWMT will manage the fund for a 1.50% net rate of return. NWMT may request changes to fees and rates through approval of the fund advisory board. At the end of the fund term any returns in excess of the agreed upon rate to the fund manager will be reinvested in the Gallatin Community. Unless otherwise defined specifically for this fund, NWMT will follow all internal NWMT organizational policies and procedures including financial management and loan reserves. FUND INVESTMENT OPPORTUNITY The Community Housing Impact Fund requires a combination of investments and donations and is seeking interested investors and donors to participate in this fund. Impact investments will be pledged up front and drawn over a two-year period. Philanthropic gifts will be pledged up front and may be gifted over a two-year period. Funding Source Dollar Amount Impact Investment $8,000,000 NWMT Investment $1,000,000 Grants & Donations $1,000,000 Total Impact Fund $10,000,000 The minimum impact investment amount is $100k. The term on these investments is 10- to 15-years with an interest rate of 2.00%. Investors who do not require a return on this investment are encouraged to invest at 0.00%. With lower returns to investors the fund can charge lower rates to borrowers, support the preservation and creation of more units, and create deeper affordability impacts. In addition, investors are encouraged to also be donors. It is the combination of investment and philanthropic giving that will best meet community and project needs. 252 GALLATIN COMMUNITY HOUSING IMPACT FUND GAP FINANCING PROGRAM HIGHLIGHTS Type of Program: In partnership with local financial institutions, private sector stakeholders, government, and non-profit organizations a community impact fund has been established to fund housing solutions throughout Gallatin County. The fund purpose is to offer low-interest financing to encourage for-profit and nonprofit developers, investors, and local governments to partner with community housing providers to preserve and expand housing solutions in Gallatin County. Eligible Applicants: Applicant can be a for-profit, non-profit, or governmental entity. The property must be held by a Single Asset Entity. Types of Projects: New construction or acquisition/rehabilitation of properties providing housing for rent or for sale. Land acquisition and pre- development are also eligible. Projects or units financed with the fund must serve renter households with incomes no greater than 80% AMI and homebuyer households with incomes no greater than 150% AMI. Security: Subordinate mortgage Loan-to-Development Cost:Program can provide gap financing up to 20% of the total development cost for acquisition, rehab, construction, and permanent financing or up to 35% for land acquisition and/or predevelopment costs. Loan Amounts: Intended to be gap financing for projects. Maximum to any one project is $1,500,000. Higher amounts may be available if outside sources are allocated to the fund for a specific project or purpose. Loan Term: Up to 40-year amortization. Maximum term of 10-years except for LIHTC projects which may go up to 17 years. Amortizing payments are expected. A period of deferment or interest-only may be offered depending on project needs. Land acquisition and/or pre- development loans interest-only, term not to exceed three years. Reserve Requirements: Escrows to be established for property taxes and hazard insurance, operating reserve, and reserve for replacement by the first mortgage. Interest Rate: Targeted interest rate is 2.00% below the first mortgage for projects with a minimum of a 30-year period of affordability, and 1.00% below the first mortgage for projects with a minimum of a 15-year period of affordability. Interest rate floor is 3.50%. Rate floor for land acquisition and predevelopment is 4.50%. Origination Fees: Total of 1% of loan amount due at closing 253 GALLATIN COMMUNITY HOUSING IMPACT FUND GAP FINANCING PROGRAM HIGHLIGHTS Type of Program: In partnership with local financial institutions, private sector stakeholders, government, and non-profit organizations a community impact fund has been established to fund housing solutions throughout Gallatin County. The fund purpose is to offer low-interest financing to encourage for-profit and nonprofit developers, investors, and local governments to partner with community housing providers to preserve and expand housing solutions in Gallatin County. Eligible Applicants: Applicant can be a for-profit, non-profit, or governmental entity. The property must be held by a Single Asset Entity. Types of Projects: New construction or acquisition/rehabilitation of properties providing housing for rent or for sale. Land acquisition and pre- development are also eligible. Projects or units financed with the fund must serve renter households with incomes no greater than 80% AMI and homebuyer households with incomes no greater than 150% AMI. Security: Subordinate mortgage Loan-to-Development Cost:Program can provide gap financing up to 20% of the total development cost for acquisition, rehab, construction, and permanent financing or up to 35% for land acquisition and/or predevelopment costs. Loan Amounts: Intended to be gap financing for projects. Maximum to any one project is $1,500,000. Higher amounts may be available if outside sources are allocated to the fund for a specific project or purpose. Loan Term: Up to 40-year amortization. Maximum term of 10-years except for LIHTC projects which may go up to 17 years. Amortizing payments are expected. A period of deferment or interest-only may be offered depending on project needs. Land acquisition and/or pre- development loans interest-only, term not to exceed three years. Reserve Requirements: Escrows to be established for property taxes and hazard insurance, operating reserve, and reserve for replacement by the first mortgage. Interest Rate: Targeted interest rate is 2.00% below the first mortgage for projects with a minimum of a 30-year period of affordability, and 1.00% below the first mortgage for projects with a minimum of a 15-year period of affordability. Interest rate floor is 3.50%. Rate floor for land acquisition and predevelopment is 4.50%. Origination Fees: Total of 1% of loan amount due at closing 254