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HomeMy WebLinkAbout05-21-24 City Commission Agenda and Packet MaterialsA. Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B. Pledge of Allegiance and a Moment of Silence C. Changes to the Agenda D. Public Service Announcements D.1 The City Commission is Currently Accepting Statements of Interest and Qualifications for Appointment until 5 p.m. May 23, 2024, for the Remainder of the Unexpired Term Vacated with Commissioner Coburn's Resignation E. FYI F. Commission Disclosures G. Consent THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, May 21, 2024 How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to comments@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. 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 1 G.1 Accounts Payable Claims Review and Approval (Armstrong) G.2 Approve the Final Plat for the Blackwood Groves Phase 3A Major Subdivision and Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman and Authorize the Director of Community Development to Execute the Associated Improvements Agreement on Behalf of the City of Bozeman and Authorize the Acting City Manager to Sign the Trail Corridor Easement on Behalf of the City of Bozeman; Application 23261(Montana) G.3 Authorize City Manager to Sign the Professional Services Agreement with Corrpro (Aegion) for annual inspection of Hilltop Tank Cathodic Protection System(Miller) G.4 Authorize the City Manager to Sign the First Amendment to Professional Services Agreement to Extend Term With No Change in Contract Amount with Code Studio(Saunders) G.5 Authorize the City Manager to Sign an Amendment 3 to the Professional Services Agreement for the Field Survey Term Contract with Sanderson Stewart, to Facilitate Design of Upcoming Capital Improvements Projects(Gamradt) G.6 Authorize the City Manager to Sign Task Order 003 with Sanderson Stewart for Main Street (Grand to North 7th Avenue) Lighting Design(Fine) G.7 Resolution 5595, Resolution of Adoption to Adopt the Nexus Point Growth Policy Amendment to Amend the Future Land Use Map from Urban Neighborhood to Community Commercial Mixed-use Property Located Between Arnold and Graf Streets, West of South 19th Avenue; Application 23205(Rogers) G.8 Ordinance 2164, Provisional Adoption, Rezoning Lot 1 of Minor Subdivision 235B, S23, T02S, R05E from R-O (Residential Office) to R-4 (Residential High Density District) Containing 10.16 Acres, B-2M (Community Business District-Mixed) Containing 1.49 Acres, and PLI (Public Lands and Institutions) Containing 1.33 Acres; The Nexus Point Zone Map Amendment, Application 23204(Cramblet) H. Consent II H.1 Findings of Fact and Order for Appeal 23214 Overturning the Conditional Approval of the Sundance Springs Subdivision, Phase 1B, Commercial Lot 2 Site Plan Application 22047(Bentley) I. Public Comment This is the time to comment on any matter falling within the scope of the Bozeman City 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. 2 J. Special Presentation J.1 Bozeman Police Department 2023 Annual Report(Jim Veltkamp, Police Chief ) K. Action Items K.1 Resolution 5589, Updating Engineering Permit Fees(Ross) K.2 Ordinance 2161, Provisional Adoption, Review and Consider Approval of a Zoning Text Amendment to Reduce the Minimum Rear Yard Setback for Lots Abutting Alleys in the Residential Emphasis Mixed Use (REMU) Districts Citywide; Application 24055(Montana.) K.3 Resolution 5596, Approving the 7th and Aspen 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) L. FYI / Discussion M. Adjournment Consider the Motion: Motion to approve Resolution 5589 Updating Engineering Permit Fees. Consider the Motion: Approve Ordinance 2161 for the Zoning Text Amendment to Reduce the Minimum Rear Yard Setback for Lots Abutting Alleys in the Residential Emphasis Mixed Use (REMU) Districts Citywide; Application No. 24055 Consider the Motion: I move to approve Resolution 5596. City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301). Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 3 Memorandum REPORT TO:City Commission SUBJECT:The City Commission is Currently Accepting Statements of Interest and Qualifications for Appointment until 5 p.m. May 23, 2024, for the Remainder of the Unexpired Term Vacated with Commissioner Coburn's Resignation MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Administration RECOMMENDATION:Provide the announcement 4 Memorandum REPORT TO:City Commission FROM:Nadine Waters, Accounts Payable Clerk Nicole Armstrong, Accounts Payable Clerk Rhonda Edwards, Accounts Payable Clerk Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:May 21, 2024 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. Please provide approval for checks dated May 21th, 2024. 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: May 8, 2024 5 Memorandum REPORT TO:City Commission FROM:Susana Montana, Senior Planner Brian Krueger, Manager, Development Review Division Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Approve the Final Plat for the Blackwood Groves Phase 3A Major Subdivision and Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman and Authorize the Director of Community Development to Execute the Associated Improvements Agreement on Behalf of the City of Bozeman and Authorize the Acting City Manager to Sign the Trail Corridor Easement on Behalf of the City of Bozeman; Application 23261 MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Approve the Final Plat for the Blackwood Groves Phase 3A Major Subdivision and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman and authorize the Director of Community Development to execute the associated improvements agreement on behalf of the City of Bozeman and authorize the Acting City Manager to sign the trail corridor easement on behalf of the City of Bozeman; Application No. 23261. 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: On September 15, 2023, the Blackwood Land Fund, LLC, (“Applicant”) submitted an application for a ~29.64-acre subdivision entitled Blackwood Groves Phase 3A Major Subdivision Final Plat. This subdivision will create 25 lots and an “R2” restricted lot to be the subject to a future subdivision. This application is the further subdivision of the ~29.64-acre “Lot R2” restricted lot of the Blackwood Groves Subdivision, Phases 1 and 9 Final Plat (Project 22058) and divides that restricted Lot R2 into 25 buildable lots and 1 restricted lot. The 25 lots will consist of 3 multi-household residential lots, 19 single-household residential lots, 1 park lot, and 2 common open space lots. The property is zoned REMU, Residential Emphasis Mixed Use. The 119.45 6 acre Blackwood Groves subdivision has an approved multi-phased Master Site Plan for the entire subdivision (Project No. 20292). Each phase will have its own final plat recorded and site plan approved prior to any building permit approvals. UNRESOLVED ISSUES:None. ALTERNATIVES:None suggested. 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: 23261 BWG Ph 3A FP Commission Memo.pdf 001 Final Plat Map_Sheet 1_Certificates.pdf 002 Final Plat Map_Sheet 2_Phase 3A.pdf 003 Final Plat Map_Sheet 3_Conditions of Approval.pdf City Attorney Certificate.pdf Report compiled on: May 1, 2024 7 Blackwood Groves Major Subdivision Phase 3A Final Plat Page 1 of 3 Commission Memorandum REPORT TO: Mayor and 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: Approve the Final Plat for the Blackwood Groves Phase 3A Major Subdivision and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman and authorize the Director of Community Development to execute the associated improvements agreements on behalf of the City of Bozeman and authorize the Acting City Manager to sign the trail corridor easement on behalf of the City of Bozeman; Application No. 23261. 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. MEETING DATE: May 21, 2024 AGENDA ITEM TYPE: Consent—Quasi-Judicial RECOMMENDATION: That the City Commission approve the Final Plat for the Blackwood Groves Phase 3A Major Subdivision and authorize the Director of Transportation and Engineering to execute the same on behalf of the City of Bozeman and authorize the Director of Community Development to execute the associated improvements agreement on behalf of the City of Bozeman and authorize the Acting City Manager to sign the trail corridor easement on behalf of the City of Bozeman. BACKGROUND: On September 15, 2023, the Blackwood Land Fund, LLC, (“Applicant”) submitted an application for a ~29.64-acre subdivision entitled Blackwood Groves Phase 3A Major Subdivision Final Plat. This subdivision will create 25 lots and an “R2” restricted lot to be the subject to a future subdivision. This application is the further subdivision of the ~29.64- acre “Lot R2” restricted lot of the Blackwood Groves Subdivision, Phases 1 and 9 Final Plat (Project 22058) and divides that restricted Lot R2 into 25 buildable lots and 1 restricted lot. 8 Blackwood Groves Major Subdivision Phase 3A Final Plat Page 2 of 3 The 25 lots will consist of 3 multi-household residential lots, 19 single-household residential lots, 1 park lot, and 2 common open space lots. This Phase 3A final plat is part of a larger 119.45 acre Blackwood Groves Major Subdivision Preliminary Plat which was approved June 22, 2021 to create a mixed use neighborhood that includes 127 single household lots, 14 multi-household lots, 22 townhouse/rowhouse lots, 3 commercial lots, 8 common open space lots, and 16 City Park lots. The Commission approved the Blackwood Groves Subdivision Preliminary Plat Findings of Fact (FOF), Project 20447, on June 22, 2021 and a link to that document is found below. The property is zoned REMU, Residential Emphasis Mixed Use. The Blackwood Groves subdivision has an approved multi-phased Master Site Plan for the entire subdivision (Project No. 20292). Each phase will have its own final plat recorded and site plan approved prior to any building permit approvals. This Phase 3A Final Plat would provide 19 lots for single household detached dwellings along the northern and eastern “ring” bordered by Cambridge Drive and South 11th Avenue. Open Space Lot A and B would lie within this outer “ring” of single household lots. Interior Lots 1 and 2 of Block 9 and a western Lot 1 of Block 12 would allow multi-household apartment buildings. A 2.13 acre City Park lot (Park 3) would also provide a shared stormwater pond to be maintained by the Blackwood Groves Homeowners’ Association (HOA). On April 23, 2024, the Development Review Committee (DRC) found that the final plat application meets the conditions of approval of the Preliminary Plat and is sufficient for consideration for approval. The final decision for this final plat must be made by within 45 working days of the date the application was deemed adequate for consideration for approval. Therefore, it must be reviewed by the City Commission by June 27, 2024. This Phase 3A Final Plat requires an Improvements Agreement (IA) and Financial Surety to allow concurrent construction of public Street Lighting, Park Improvements, Open Space Improvements and Sidewalks on private lots with the development of the subdivision. The IA and Financial Surety guarantees the installation of these improvements within one year of approval of the final plat, pursuant to the Bozeman Municipal Code (BMC) Sections 38.270.030.B and D. A financial surety in the amount of $1,902,310.03 was received in the form of a Letter of Credit from the Stockman Bank of Montana and which represented 150% of the $1,268,206.69 estimated cost of improvements. Therefore, based on the summary review provided below, 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 Blackwood Groves Phase 3A Major Subdivision Final Plat application may be approved by the City Commission. Open Space lots A and B will have public access trails developed and maintained by the Developer and the Trail Corridor Easement allows the City to install and maintain wayfinding signage therein. 9 Blackwood Groves Major Subdivision Phase 3A Final Plat Page 3 of 3 §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. The County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to subdivide have been paid. Staff finds that all terms and conditions of the preliminary plat approval have been met. The signed findings of fact for the Blackwood Groves Major Subdivision Preliminary Plat can be viewed here. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. 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. Report compiled on: May 1, 2024 Application Materials can be found here: https://weblink.bozeman.net/WebLink/Browse.aspx?id=284788&dbid=0&repo=bozeman&cr=1 10 11 12 13 14 Memorandum REPORT TO:City Commission FROM:Jill Miller, Water Treatment Plant Superintendent Shawn Kohtz, Utilities Director SUBJECT:Authorize City Manager to Sign the Professional Services Agreement with Corrpro (Aegion) for annual inspection of Hilltop Tank Cathodic Protection System MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize City manager execute the Professional Services Agreement with Corrpro (Aegion) for annual inspection of the Hilltop tank Cathodic Protection System. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The 2 million gallon Hilltop Tank had cathodic protection installed in 2007 by Corrpro. Since then the cathodic protection system ahs been inspected annually by Corrpro. The inspection generally occurs between June and August depending on the company's schedule. This includes Tank-to-Water potential profile, Electrical Measurements on anode and reference cells, inspection of the controls, meters, contacts, and wiring; adjustment of system as necessary, and submitting a report. UNRESOLVED ISSUES:none ALTERNATIVES:Forgo annual inspection. FISCAL EFFECTS:The inspection is budgeted for annually in the WTP Operating budget. The cost of the inspection is $1025. Attachments: PSA with Corrpro 2024 with Exhibit.pdf Report compiled on: May 6, 2024 15 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 1 of 11 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 1st day of June, 2024 (“Effective Date”), 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, Corrpro Companies, Inc., hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in Plan “C” Service as described in and attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 31st day of May, 2025, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will conduct an inspection of the cathodic protection corrosion control equipment of the hilltop tank at the Bozeman Water Treatment Plant and provide the services in accordance with the requirements of the Scope of Services as described in Plan “C” Service of Exhibit A. For conflicts between this Agreement and the terms in Exhibit A, unless specifically provided otherwise, the terms of this Agreement govern, including but not limited to Section 7. 4. Payment: City agrees to pay Contractor $1025.00 for the services described in Exhibit A. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the $1025.00. The City must agree in writing upon any additional charges. Unless otherwise set forth in the Agreement, payments are due to Contractor from the City within thirty (30) days receipt of invoice and payable in U.S. Dollars. In the event City does not pay 16 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 2 of 11 in accordance with the terms of this Agreement, Contractor shall have the right to terminate the Agreement and City shall pay all collection costs incurred by Contractor, including attorneys’ fees. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, 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 Scope of Services. b. Contractor represents and warrants for one (1) year from completion date, to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services 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 to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor 17 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 3 of 11 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 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 services to continue at no additional cost to City. Contractor shall indemnify, within the limits of its insurance, 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. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, within the limits of its insurance in this Agreement, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively 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 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 negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law and within the limits of its insurance in this Agreement, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or willful misconduct of the Contractor or Contractor’s agents or employees. 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. 18 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 4 of 11 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 the 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. Contractor also waives any and all claims and recourse against the City, 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. 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. 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 without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • 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; • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. 19 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 5 of 11 The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non- contributory basis on the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and carrier will provide cancellation notice in accordance with policy provisions. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. 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 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 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 8, 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. 9. 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 Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of 20 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 6 of 11 Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately 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 or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(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. 10. 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 each party 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 against the other. 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 thirty (30) 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. 11. Representatives and Notices: 21 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 7 of 11 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 as designated by the City in writing 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 Raychell Whitlow-Long 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. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, 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 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. 14. 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, 22 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 8 of 11 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. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. 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. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. 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. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor 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 the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 23 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 9 of 11 18. Non-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. Attorney’s Fees and Costs: In the event it becomes necessary for either Party 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 giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including City Attorney. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. 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 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 provisions of this Agreement. 22. Survival: Contractor’s indemnification 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. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 24 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 10 of 11 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. 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. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. 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. 30. Integration: This Agreement and the Scope of Services specifically described as in Exhibit A attached hereto constitute the entire agreement of the parties. The following language in Exhibit A is specifically excluded from this Agreement and nonbinding on the parties: “Corrpro’s total liability to Client shall not exceed the amount of compensation actually paid for the services, products, or materials giving rise to the claim. Client and Corrpro waive all rights against each other and any of their subcontractors, agents, and employees for all loss or damage to property or its loss of use.” Covenants or representations not contained herein 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. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 25 Professional Services Agreement for Inspection of Cathodic Protection of Hilltop Tank FY 2023 – FY 2024 Page 11 of 11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA CONTRACTOR (Type Name Above) By Chuck Winn, Interim City Manager By Print Name: Print Title: APPROVED AS TO FORM: By Greg Sullivan, Bozeman City Attorney 26 27 28 29 Memorandum REPORT TO:City Commission FROM:Chris Saunders, Community Development Manager Erin George, Community Development Deputy Director Anna Bentley, Community Development Director SUBJECT:Authorize the City Manager to Sign the First Amendment to Professional Services Agreement to Extend Term With No Change in Contract Amount with Code Studio MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign the First Amendment to Professional Services Agreement to Extend Term With No Change in Contract Amount with Code Studio. 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 City Commission approved a contract with Code Studio to assist the City in updates to Chapter 38 of the municipal code. The project has taken longer than originally expected. This first amendment is to extend the time of the contract to allow the project to be completed with adjustments as directed by the City Commission. No change in the cost of the contract is made with this amendment. UNRESOLVED ISSUES:None. ALTERNATIVES:As identified by the Commission. FISCAL EFFECTS:None, all money for the contract is already budgeted. Attachments: PSA Code Studio Amendment 5-15-2024.pdf Report compiled on: May 10, 2024 30 First Amendment to Professional Services Agreement for Update to Chapter 38, UDC. FY 2024 – FY 2026 Page 1 of 3 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR CODE STUDIO UPDATE TO CHAPTER 38, BMC dated June 28, 2022, (the “Agreement”) is made and entered into this _____ day of ____________, 2024, 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 Code Studio, Inc., 1800 East 4th Street, Unit 125, Austin TX, 78702, 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. Extension of Contract Term. Section 2 of the Agreement is extended for an additional one (1) year period. The Agreement shall terminate on June 1, 2025. 2. Modification to Authorization for Extensions. Section 31 of the Agreement is modified to allow for a maximum contract term to not exceed June 1, 2026. 3. Nondiscrimination and Equal Pay: Section 14 of the Agreement is replaced in its entirety with the following: 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 31 First Amendment to Professional Services Agreement for Update to Chapter 38, UDC. FY 2024 – FY 2026 Page 2 of 3 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. 4. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 32 First Amendment to Professional Services Agreement for Update to Chapter 38, UDC. FY 2024 – FY 2026 Page 3 of 3 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA CODE STUDIO CONTRACTOR By________________________________ By_____________________________ Chuck Winn, Interim City Manager Print Name: Lee Eisweiler Title: President APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 33 Memorandum REPORT TO:City Commission FROM:Kellen Gamradt, Engineer II Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign an Amendment 3 to the Professional Services Agreement for the Field Survey Term Contract with Sanderson Stewart, to Facilitate Design of Upcoming Capital Improvements Projects MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve and authorize the City Manager to sign amendment No. 3 to the Professional Services Agreement for the field survey term contract with Sanderson Stewart to facilitate design of upcoming capital improvements projects STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Attached is a copy of the contract amendment with Sanderson Stewart. This amendment will add survey on Flanders Mill Road, Vaquero Parkway, and North 19th Avenue as described in the attached scope of work and payment schedule. These surveys will be used for the design of an upcoming shared use pathway improvements projects which the City recently received a Transportation Alternatives Grant to complete and will add work to our existing survey contract. Engineering staff have reviewed the amendment and found it to be commensurate with the work involved. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the commission FISCAL EFFECTS:If approved, this amendment will increase the fee on a time and materials basis with a cost not to exceed amount of $20,400 from $93,762.10 to $114,162.10. This will be paid for by the City's Street Maintenance Fund (111). Attachments: 22- Professional Services Agreement - Sanderson Stewart - Capital Improvements Project Field Study.pdf Contract Amendment 3 - 041524.pdf 34 Report compiled on: May 8, 2024 35 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 1 of 11 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), 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, Sanderson Stewart, 106 E Babcock St, Suite L1, Bozeman, MT 59715, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the __30_ day of ___June_, 2025, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC July12 2 36 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 2 of 11 Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, 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 Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services 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 to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services 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 shall be left to the discretion of Contractor; provided, however, that DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 37 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 3 of 11 Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue 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. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) 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 negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. 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 City as 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 the City 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 City 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 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 38 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 4 of 11 jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the 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. Contractor also waives any and all claims and recourse against the City, 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 [City’s] 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. 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. 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 without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  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;  Automobile Liability - $1,000,000 property damage/bodily injury per accident; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 39 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 5 of 11 must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. 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 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 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 8, 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. 9. 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 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. DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 40 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 6 of 11 b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately 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 or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(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. 10. 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 thirty (30) 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. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be ___Kellen Gamradt____ or such other individual as City shall designate DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 41 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 7 of 11 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 as designated by the City in writing 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 ___Danielle Scharf, PE___ 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. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, 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 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. DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 42 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 8 of 11 14. 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. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. 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. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. 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 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 43 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 9 of 11 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. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor 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 the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-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. Attorney’s Fees and Costs: In the event it becomes necessary for either Party 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 giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. 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 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 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 44 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 10 of 11 competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification 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. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. 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. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein 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. 30. 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. 31. Extensions: this Agreement may, upon mutual agreement, be extended for a period DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 45 Version 8 30 21 Professional Services Agreement for [Capital Improvement Projects Field Survey] Page 11 of 11 of two years by written agreement of the Parties. In no case, however, may this Agreement run longer than ____06/30/2027____. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ___Sanderson Stewart__________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___Danielle Scharf, PE_______ Print Title: _Principal/Region Manager___ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 46 Exhibit A - Scope of Work The scope of work covered by this agreement is described hereafter: The project consists of the preparation of a topographic survey of: 1. Bogert Place – E Story Street to S Church Avenue 2. West Story Street – S 8th Avenue to S 4th Avenue 3. South Black Avenue – E Babcock Street to E Story Street See attached survey area exhibits. These surveys will be used for the design of future capital improvement projects by the City of Bozeman. The topographic survey will tie horizontally and vertically all surface improvements within the right of way (i.e. curb, gutter, sidewalk, driveways, asphalt, trees, fences, signs, aboveground utilities, and underground utilities marked by Montana One Call, etc.) Additionally, existing sanitary sewer manholes, storm drain manholes and inlets, and water main valve boxes will be measured vertically. Generally, the survey limits will be from back of walk to back of walk as noted on the attached survey area exhibits including approximately 20 feet beyond curb returns on side street intersections. Sanitary sewer, storm drain, and water alignments and associated measuredowns will extend beyond the survey limits where needed. The points will be surveyed using the Bozeman Low Distortion Projection. The Bozeman Low Distortion Projection is based on a single parallel Lambert Conformal Conic Projection and the North American Datum of 1983. A minimum of one project benchmark on the City of Bozeman Datum on each block within the project area (Area) will be established. Phase 100. Project Management & Coordination Task 101. Prepare project scope of work and contracts. Task 102. Project management, and coordination, and send weekly project updates. Phase 200. Pre-Survey Preparations & Research Task 201. Montana One Call utility locates will be requested for public underground utilities. Task 202. Review existing City sanitary sewer, storm drain, and water information utilizing the Bozeman GIS Infrastructure Viewer. Phase 300. Survey Control Task 301. Locate existing benchmarks from the Bozeman City Datum and calibrate the vertical component of the survey to one point for each DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 47 block within the survey areas. Additional control points will be set at strategic locations as needed. Phase 400. Topographic Survey Task 401. Use robotic total station to survey ground points on all three areas. Existing tree diameters will be estimated and labeled as deciduous or coniferous but will not be identified by species. Task 402. Survey field location of existing visible utilities as marked by Montana One Call. Task 403. Complete measuredowns on existing sanitary sewer manholes, storm drain manholes and inlets, and water main valve boxes. Photographs will be taken of each manhole within the project corridor. Task 404. The completed topographic survey will undergo a quality process review to check for consistency and completeness. Phase 500. Draft Topo & Base Plan Task 501. The surveyed data will be used to create an individual topographic surface and 2D linework and labeling will be completed for all three areas. Task 502. Internal quality control review of all deliverables. Task 503. The photographs taken of each manhole will be cataloged and georeferenced for easy identification and location. Task 504. Meet with the City to review the 90 percent plans prior to final submittal. Task 505. Incorporate the City’s comments into the plans. Task 506. Coordinate electronic and hardcopy file delivery with the City. The file delivery will contain a 24”x36” hard copy of the site map, copies of all field notes and photographs, PDF copies of the site map, and all AutoCAD project files and points files. There will be individual AutoCAD and PDF files for each area. The AutoCAD files will be compatible with AutoCAD Civil3D 2022. Fixed Costs/Expenses: Survey Equipment at $15.00 /fieldwork hour DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 48 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC49 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC50 City of Bozeman 2022 CIP Survey Bogert Place, W Story Street, S Black Avenue 22166 LaborCategory Total PlanHours Total PlanBill Amt Phase 100: Project Mgmt & Coordination Principal 18.00 4,230.00 Professional Land Surveyor 18.00 2,250.00 Phase 200: Pre-Survey Prep & Research Professional Land Surveyor 14.00 1,750.00 Phase 300: Survey Control Staff Surveyor II 16.00 1,840.00 Phase 400: Topo Survey Staff Surveyor II 132.00 15,180.00 Phase 500: Draft Topo & Base Plan Professional Land Surveyor 128.00 16,000.00 Senior Professional Land Surveyor 4.00 700.00 Subtotal 330.00 41,950.00 Expenses 1,500.00 Total for Data Collection, Topo & Site Survey 330.00 43,450.00 Total Acres Total Cost 6.20 43,450.00 43,450.00 Summary of 2022 CIP Survey Services 1 - Bogert Place, W Story Street, S Black Ave Total Project Cost Page 1 of 1 DocuSign Envelope ID: FD66FAC9-00E8-44AA-A085-A21DF656BDCC 51 Third Amendment to Professional Services Agreement for Field Survey Term Contract Page 1 of 2 THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Field Survey Term Contract dated July 12, 2022 (the “Agreement”) is made and entered into this _____ day of ____________, 2024, 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 Sanderson Stewart, 106 E Babcock Street, Suite L1, Bozeman, MT 59718 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. Addition to Scope of Work. Attached Amendment No. 3 1. Addition to Payment. Attached Rate Schedule 2. Agreement still valid. All remaining terms and provisions of the original Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 52 Third Amendment to Professional Services Agreement for Field Survey Term Contract 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 SANDERSON STEWART By________________________________ By_____________________________ Chuck Winn, City Manager Print Name: Danielle Scharf Title: Principal/Region Manager APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 53 AMENDMENT NO. 3 TO SANDERSON STEWART-CLIENT AGREEMENT 1. Background Data Effective Date of Original Agreement: July 12, 2022 Effective Date of This Amendment: April 15, 2024 Client: City of Bozeman, Montana Project No.: 22166 Project: City of Bozeman 2022 CIP Survey 2. Nature of Amendment Modifications to services of Sanderson Stewart Modifications to responsibilities of Client Modifications to payment to Sanderson Stewart Modifications to times(s) for rendering services 3. Description of Modifications Full topography survey bounded on the west by the top back of curb on the east side of Flanders Mill Road, bounded on the north by the top back of curb on the south side of Auger Lane, bounded on the east by a line 30 feet east of the top back of curb on the east side of Flanders Mill Road, and bounded on the south by the top back of curb on the north side of Durston Road. Boundary survey of lot lines on the east side of Flanders Mill Road. Full topography survey from the north side of Catron Street through Lot 2 of Minor Subdivision No. 210 bounded on the west by the 50 foot wide public open space/linear trail stream corridor and utility easement and bounded on the east by the west top of bank of Catron Creek and tieing into the existing 10 foot wide shared use pathway constructed in 2022 on the north end of Lot 2. Boundary survey of pertinent Lot 2 lot lines to determine extents of the 50 foot wide easement. Full topography survey of the easterly 30 feet of Lot 3 of Minor Subdivision No. 210 between the south top back of curb of Rawhide Ridge and the south side of the sidewalk to the north of Baxter Lane. Boundary survey of pertinent Lot 3 lot lines to determine the extents of the proposed 30 foot wide shared use pathway easement. Full topography survey of a portion of Vaquero Parkway / Winter Park Street per attached exhibit “Vaquero Survey Limits”. These services will be billed for on a Time and Materials basis according to the attached Sanderson Stewart Rate Sheet with a Not to Exceed contract fee. 54 4. Fee Modifications Original contract fee: $ 43,450.00 Previous Amendments: $ 50,312.10 Contract fee prior to this Amendment: $ 93,762.10 Fee modification due to this Amendment: Not to Exceed $ 20,400.00 Contract fee with all Amendments: Not to Exceed $ 114,162.10 Client and Sanderson Stewart hereby agree to modify the above-referenced Agreement as set forth in this Amendment. All provisions of the Agreement not modified by this or previous Amendments remain in effect. CLIENT SANDERSON STEWART By: By: Printed: Printed: Title: Title: Date: Date: 55 SURVEY ALL PED RAMPS,CROSSWALKS, AND SIDEWALKS INDAVIS / VAQUERO INTERSECTIONSURVEY SIDEWALK,BOULEVARD, AND 10' SOUTHOF EXIST. SIDEWALKSURVEY DRIVEWAYAPPROACHESSURVEY 50' BEYONDEXIST SIDEWALK56 OUTSIDE CONSULTANTS SURVEY CREW SERVICES STAFF PERSONNEL SERVICES CHARGE OUT RATES EFFECTIVE APRIL 1, 2024 Staff Engineer I $115.00/hour Staff Engineer II $130.00/hour Staff Engineer III $135.00/hour Project Engineer I $145.00/hour Project Engineer II $150.00/hour Senior Engineer I $185.00/hour Senior Engineer II $210.00/hour Principal $240.00/hour Engineer Intern $75.00/hour Expert Witness/Special Consultant $290.00/hour Staff Planner I $100.00/hour Staff Planner II $115.00/hour Planner I $130.00/hour Planner II $145.00/hour Senior Planner I $155.00/hour Senior Planner II $195.00/hour Senior Planner III $200.00/hour Right-of-Way Agent $168.00/hour Staff Landscape Designer I $100.00/hour Staff Landscape Designer II $115.00/hour Landscape Architect I $135.00/hour Landscape Architect II $145.00/hour Senior Landscape Architect I $160.00/hour Senior Landscape Architect II $175.00/hour Field Survey Technician I $85.00/hour Field Survey Technician II $88.00/hour Staff Surveyor I $110.00/hour Staff Surveyor II $125.00/hour Professional Land Surveyor I $135.00/hour Professional Land Surveyor II $148.00/hour Senior Professional Land Surveyor I $160.00/hour Senior Professional Land Surveyor II $180.00/hour Graphic Artist $105.00/hour CADD Technician I $100.00/hour CADD Technician II $105.00/hour Designer I $100.00/hour Designer II $110.00/hour Senior Designer I $120.00/hour Senior Designer II $145.00/hour Construction Inspector $88.00/hour Construction Engineering Technician $100.00/hour Senior Construction Engineering Technician $145.00/hour Construction Engineer I $145.00/hour Construction Engineer II $150.00/hour Project Administrator $100.00/hour Senior Project Administrator $115.00/hour Administrative/Clerical $95.00/hour Senior Administrative Director $185.00/hour Marketing Coordinator $110.00/hour Senior Marketing Coordinator $125.00/hour Marketing Director $175.00/hour 1-Person/2-Person Crew Per Job Survey Equipment $30.00 /fieldwork hour Survey Vehicle Mileage IRS rate/mile + $0.10/mile Scanner Equipment $150.00/hour Scanner Equipment (full day) $1,050/day 1) At cost if independently billed direct to client 2) Cost plus 5% if billed through us INDEPENDENT LABORATORIES 1) At cost if independently billed direct to client 2) Cost plus 5% if billed through us ADMINISTRATIVE EXPENSES Administrative Expenses 3.5% * Including copies, prints, phone, postage, materials, and travel *Based on professional services only, unless modified by contract Vehicle Mileage IRS Rate These rates are updated periodically to reflect market conditions. Rate increases will be reflected in future invoicing. TRAFFIC DATA COLLECTION SERVICES Standard Intersection Count (veh/bike/ped) $30.00/hour Small Roundabout Count (veh/bike/ped) $41.00/hour Large Roundabout Count (veh/bike/ped) $93.00/hour Spot Location Volume (veh/bike/ped) $4.00/lane/hour Spot Location Travel Speeds (veh) $5.00/lane/hour Data Collection Equipment $30.00/count location Rushed Processing (24-hour turnaround) $9.00/processing hour 57 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Program Manager Ellie Staley, Executive Director, Downtown Bozeman Partnership SUBJECT:Authorize the City Manager to Sign Task Order 003 with Sanderson Stewart for Main Street (Grand to North 7th Avenue) Lighting Design MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a task order 003 with Sanderson Stewart for Main Street (Grand to North 7th Avenue) lighting design. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The City's Midtown Action Plan and the Downtown Urban Renewal Plan both prioritize public utility improvements and increased safety within in the Urban Renewal Districts (URDs). This project is a coordinated effort between the Downtown URD and the Midtown URD to enhance the growing pedestrian area, provide needed lighting and increase utility access and availability to the edges of our developing Urban Renewal districts. The coordination between districts creates a cohesive look along Main Street from the Downtown Urban Renewal District to the Midtown Urban Renewal District. Sanderson Stewart will provide lighting design, bidding, and construction administration services for the installation of the lighting on the north side of Main Street between Grand Avenue and 7th Avenue. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Commission. FISCAL EFFECTS:Sanderson Stewart will bill for its services on a lump sum basis with a project total of $63,800.00, which will be split between the Midtown Urban Renewal District and the Downtown Urban Renewal District. Attachments: URD Task Order No_3_Main_Street_Lighting COMPLETE 042524.pdf 58 Report compiled on: April 25, 2024 59 City of Bozeman Urban Renewal District Term Contract Task Order No. 3 PROJECT: Main Street (Grand to 7th) Lighting Design Issued under the authority of Urban Renewal District Term Contract Professional Services Agreement with Sanderson Stewart for Architectural and Engineering Services executed on December 19, 2023. This Task Order is dated April 25, 2024 between the City of Bozeman Midtown Urban Renewal District (URD) and Sanderson Stewart (Contractor). The following representatives have been designated for the work performed under this Task Order: City: David Fine, Urban Renewal Project Manager Contractor: Danielle Scharf, Sanderson Stewart SCOPE OF WORK: The scope for this task order is detailed in the attached Midtown Urban Renewal District Scope of Work – Task Order Number 003. COMPENSATION: Sanderson Stewart will bill for its services on a lump sum basis with a project total of $63,800.00. Sanderson Stewart shall submit invoices to the City of Bozeman for work accomplished during each calendar month. The amount of each monthly invoice shall be determined on the “percentage of completion method” whereby Sanderson Stewart will estimate the percentage of the total work (provided on a lump sum basis) accomplished during the invoicing period. The provisions of the Professional Services Agreement shall govern the Work. IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman Sanderson Stewart Chuck Winn, Interim City Manager Danielle Scharf, Principal 60 Midtown Urban Renewal District Scope of Work – Task Order No. 3 Main Street (Grand to 7th) Lighting Design 4/25/24 Sanderson Stewart is pleased to provide this scope of work for design, bidding, and construction administration services for the installation of lighting on north side of Main Street between Grand Avenue and 7th Avenue. This work is to be done as a part of the Urban Renewal District term contract for architectural and engineering services. Sanderson Stewart will coordinate with the private development projects underway on either side of 5th Avenue. A detailed list of assumptions and scope of services for the project are outlined below. Scope of Work: Phase 1 – 30% Design Design tasks for this phase of the project will include layout of the street lighting improvements and conduit runs in plan view and streetscape modifications. Plans will include demolition sheets, lighting plan sheets, plan details, and sidewalk grading modifications (as necessary). Public and private utilities will be shown for coordination and identification of conflicts. Design parameters include a street light retrofit using a single meter/service for entire lighting stretch but designed to accommodate phased construction. This phase of the project will include the following tasks: •Project initiation, scope, contract preparation, and phone calls with the City of Bozeman •Project management, client, and stakeholder meetings (assume up to 4 meetings) •Topographic Survey including sidewalk, boulevard, public and private utilities, property corners to establish right-of-way, and other topographic features needed for streetlight design •Base mapping of existing topographic and boundary survey into Autocad format •Photometric and wiring design calculations to meet the City of Bozeman standards and applicable electrical codes •Internal QC review •MDT Design exception application and encroachment permit application Sanderson Stewart will prepare special provisions and a specifications manual including the templates for bid documents. The engineer’s opinion of probable cost will also be provided with this review submittal. All the above information will be compiled into a set of plans, specifications, and opinion of probable cost (PS&E) for review by the City of Bozeman in electronic format. Phase 2 – 100% Design Sanderson Stewart will address all review comments received from the City of Bozeman and prepare final plans, specifications, and engineer’s opinion of probable cost. It has been assumed that the streetlight pole foundations will be in accordance with the MDT standard specifications. It is not 61 expected than any geotechnical investigation or structural design will be required for foundations. The final deliverables will include electrical copies of all submittal documents. This phase of the project will include the following tasks: •Project management, client, and stakeholder meetings (assume up to 2 meetings) •Address City of Bozeman review comments on all PS&E submittals •Compile final PS&E submittal •Internal QC review •MDT Design exception and encroachment permit completion Phase 3 – Construction Bidding, Administration, and Inspection Sanderson Stewart will provide one (1) round of construction bidding services and construction administration and construction observation tasks, including the following: •Prepare bid advertisement •Contractor coordination through bidding, prepare up to two (2) addenda •Facilitate pre-bid meeting, prepare agenda and distribute minutes •Attend bid opening, prepare bid tabulation and recommendation of award letter •Process contract documents for a single contract •Facilitate pre-construction meeting, prepare agenda and distribute minutes •Shop drawing review •Construction observation and documentation based on assumed observation 4 hours each day and a 60-calendar day construction contract •Respond to contractor RFI’s •Construction materials testing coordination and review •Process Pay applications submitted by Contractor and any necessary work change directives, verify material quantities on all contractor pay requests •Process the Certificate of Substantial Completion, coordinate final inspection, prepare punch lists and verify completion •Prepare as-built (record) drawings •Prepare City of Bozeman close-out submittal •Conduct two-year warranty walkthrough, prepare punch list and verify completion The following items are not expected to be needed for this project and are therefore specifically excluded from this scope of work: •Landscape restoration and irrigation plans •Material testing (by contractor or City term contract) •Construction staking •Traffic signal/intersection design •Stormwater calculations and report •Stormwater Pollution Prevention Plan (SWPPP) permit •DEQ coordination or construction permitting •Right-of-way coordination •Wetland permitting and mitigation •Erosion control plans •Additional bidding/construction inspection periods for phased construction 62 If needed, these items will be added as a separate task order or contract amendment. Project Staff The following Sanderson Stewart staff will be assigned to the project: Project Manager: Joey Staszcuk, Community Transportation Studio Manager Senior Quality Reviewer: Danielle Scharf, Principal, Western Region Manager Additional Project Staff: Jeremy Herring, Senior Engineer Craig Kamps, PLS, Professional Land Surveyor Sanderson Stewart may, in its discretion, utilize other or different personnel on the project. Fees and Billing Arrangements: Phase Fee 1. 30% Design $19,500 2. 100% Design $9,800 3. Construction Bidding, Administration, and Inspection $34,500 Total $63,800 Sanderson Stewart will bill for its services on a lump sum basis with a project total of $63,800. Sanderson Stewart shall submit invoices to the Client for work accomplished during each calendar month. The amount of each monthly invoice shall be determined on the “percentage of completion method” whereby Sanderson Stewart will estimate the percentage of the total work (provided on a lump sum basis) accomplished during the invoicing period. Project Schedule: The anticipated schedule for this project consists of the 30% design deliverable within 3 months of notice to proceed. 63 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:Resolution 5595, Resolution of Adoption to Adopt the Nexus Point Growth Policy Amendment to Amend the Future Land Use Map from Urban Neighborhood to Community Commercial Mixed-use Property Located Between Arnold and Graf Streets, West of South 19th Avenue; Application 23205 MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5595 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 Commission approved Application 23205 April 2, 2024, to amend the Bozeman Community Plan 2020 Future Land use Map from Urban Neighborhood to Community Commercial Mixed Use on approximately 1.23 acres, 1.435 including adjacent right-of-way. The Growth Policy Amendment is associated with zone map amendment, which was also approved on April 2, 2024, to change the zoning from R-O, Residential Office to B-2M, Community Commercial Mixed, see application 23204. Final documents for the growth policy amendment were received by the Applicant on April 30, 2024. The property is located between Arnold and Graf Streets, west of South 19th Avenue and is composed of two parcels separated by Arnold Street and within the Nexus Point subdivision and master plan area. UNRESOLVED ISSUES:There are no unresolved issues. ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds 64 will be changed by this growth policy amendment. Attachments: 23205 GPA Resolution of Adoption 5595.pdf Nexus Point Growth Policy Amendment.pdf Report compiled on: May 6, 2024 65 Version April 2020 RESOLUTION 5595 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, TO ADOPT AN AMENDMENT TO THE FUTURE LAND USE MAP OF THE BOZEMAN COMMUNITY PLAN BY THE NEXUS POINT GROWTH POLICY AMENDMENT AMENDING THE FUTURE LAND USE MAP FROM URBAN NEIGHBORHOOD TO COMMUNITY COMMERCIAL MIXED USE, APPLICATION 23205. WHEREAS, the City of Bozeman has had a comprehensive plan (growth policy) since 1958, and WHEREAS, the City of Bozeman adopted its most current growth policy known as the Bozeman Community Plan (BCP) through Resolution 5567 on November 17, 2020, and WHEREAS, the Bozeman Community Plan, Section 5, establishes criteria for the amending of the document, and WHEREAS, an application has been received to amend the Future Land Use Map of the growth policy, and WHEREAS, on January 9, 2024, the Bozeman City Commission adopted Resolution No. 5567, a Resolution of Intent to modify the Future Land Use Map of the Bozeman Community Plan as requested by the applicant; and WHEREAS, in accordance with 76-1-602, MCA, on March 18, 2024, the Bozeman Planning Board conducted a public hearing to receive and review all written and oral testimony on the growth policy amendment application; and WHEREAS, the Bozeman Planning Board’s motion to approve the Nexus Point GPA application No. 23205 as requested by the applicant passed 5:1; and WHEREAS, on April 2, 2024, the City Commission conducted a public hearing prior to 66 Version April 2020 taking any action to adopt or revise a growth policy; and WHEREAS, following the public hearing, the City Commission passed a motion to approve modification to the Future Land Use Map as requested by the applicant. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 In accordance with the requirements of Section 76-1-604 MCA, application No. 23205, the Nexus Point application for amendment and revision to the Bozeman Community Plan Future Land Use Map, is hereby approved. The amendment changes the designation from Urban Neighborhood to Community Commercial Mixed Use on 1.4935 acres more or less. The property is described as: All that certain portion of Lot 1 of the Amended Plat of Lot 1 of Minor Subdivision No. 235 (Plat reference 235B) located in the Northeast Quarter of Section 23, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana, being more fully bounded and described below: Commencing at the northeast corner of Lot 1 of the Amended Plat of Lot 1 of Minor Subdivision No. 235 (Plat reference 235B), thence S 53°21'23" W a distance of 455.82 feet to a point in the center of Arnold Street; the POINT OF BEGINNING. Thence North 38°00'46" East, a distance of 30.00 feet to the southeast corner of Lot 1, Block 1 of the Nexus Point Subdivision; thence along the east line of said Lot 1 North 34°38'39" East, a distance of 109.59 feet to a point on the south line of Lot 3, Block 1 of the Nexus Point Subdivision; thence along said Lot 3 the nine (9) following courses; 1.) South 58°16'17" East, a distance of 7.97 feet; 2.) North 86°01'05" East, a distance of 23.09 feet; 3.) South 65°53'36" East, a distance of 21.81 feet; 4.) South 72°04'54" East, a distance of 43.76 feet; 5.) South 62°54'36" East, a distance of 30.59 feet; 6.) South 69°48'41" East, a distance of 34.99 feet; 7.) South 15°56'53" East, a distance of 15.46 feet; 8.) South 03°25'19" East, a distance of 57.13 feet; 9.) South 00°00'55" West, a distance of 63.02 feet to a point on the north right-of-way line of Arnold Street; thence South 00°13'00" East, a distance of 30.00 feet to the centerline of Arnold Street; thence along said centerline 89°47'00" West, a distance of 9.56 feet; thence South 00°13'00" East, a distance of 30.00 feet to the northwest corner of Lot 1, Block 2 of the Nexus Point Subdivision; thence along the west line of said Lot 1 the five (5) courses; 1.) South 00°45'44" West, a distance of 60.52 feet; 2.) South 15°30'19" East, a distance of 43.46 feet; 3.) South 04°50'20" West, a distance of 13.80 feet; 4.) South 10°08'23" West, a distance of 27.68 feet; 5.) South 06°27'05" East, a distance of 46.56 feet to a point on the north line of Park No. 1, Block 2 of the Nexus Point Subdivision; thence along the north line of said Park the two (2) following courses; 1.) South 89°46'59" West, a distance of 135.16 feet; 2.) North 00°19'45" West, a distance of 10.00 feet to the southeast corner of Lot 3, Block 2 of Nexus Point Subdivision; thence along the east line of said Lot 3 the two (2) following courses; 1.) North 00°34'10" West, a distance of 187.06 feet; 2.) North 24°27'42" East, a distance of 10.00 feet to a point on the south right-of-way line of Arnold Street; thence 67 Version April 2020 North 24°27'42" East, a distance of 30.00 feet to the centerline of Arnold Street, thence along said centerline the two (2) following courses; 1.) along a curve turning to the right with an arc length of 26.66', with a radius of 150.00', with a chord bearing of North 60°26'49" West, with a chord length of 26.62', with a delta angle of 10°10'57"; 2.) North 51°59'14" West, a distance of 122.93 feet to the POINT OF BEGINNING: Containing in area 65,057 square feet (1.4935 acres) Section 2 A public hearing was advertised and conducted on April 2, 2024, for the purpose of receiving public testimony on application 23205, Nexus Point Growth Policy Amendment to the Future Land Use Map. All written and oral public comment was received and considered during Commission deliberations prior to the vote to approve. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ______________, 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 68 69 Memorandum REPORT TO:City Commission FROM:Elizabeth Cramblet, Associate Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Ordinance 2164, Provisional Adoption, Rezoning Lot 1 of Minor Subdivision 235B, S23, T02S, R05E from R-O (Residential Office) to R-4 (Residential High Density District) Containing 10.16 Acres, B-2M (Community Business District- Mixed) Containing 1.49 Acres, and PLI (Public Lands and Institutions) Containing 1.33 Acres; The Nexus Point Zone Map Amendment, Application 23204 MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Provisionally Adopt Ordinance 2164 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 City Commission unanimously approved Application 23204 on April 2, 2024, to rezone the subject site from R-O (Residential Office) to R-4 (Residential High Density District) containing 10.06 acres, B-2M (Community Business District-Mixed) containing 1.49 acres, and PLI (Public Lands and Institutions) containing 1.33 acres, subject to contingencies for zoning. Final documents and easements were received by the Applicant. The subject site is located west of S. 19th Avenue, north and south of Arnold Street. The property is currently developed with six 12-unit apartment buildings on the north side of the site (north of Arnold Street), two 24-unit apartment buildings with one clubhouse south of Arnold Street, and a public park on the southeast side of the site, all of which are currently zoned R-O. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budged funds will be changed by this Zone Map Amendment. Future development will 70 incur costs and generate review according to standard City practices. Attachments: Nexus Point 2024 Zone Map Amendment Exhibit (Final).pdf Ordinance - Nexus Point ZMA.pdf Report compiled on: May 9, 2024 71 72 Ord 2164 Page 1 of 8 ORDINANCE 2164 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZMAN ZONING MAP ON LOT 1 OF MINOR SUBDIVISION 235B, S23, T02S, R05E FROM R-O (RESIDENTIAL OFFICE) TO R-4 (RESIDENTIAL HIGH DENSITY DISTRICT) CONTAINING 10.16 ACRES, B-2M (COMMUNITY BUSINESS DISTRICT-MIXED) CONTAINING 1.49 ACRES, AND PLI (PUBLIC LANDS AND INSTITUTIONS CONTAINING 1.33 ACRES. THE NEXUS POINT ZONE MAP AMENDMENT, APPLICATION 23204. WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map pursuant to Sections 76-2-301 and 76-2-302, M.C.A.; and WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning maps if a public hearing is held and official notice is provided; and WHEREAS, Section 76-2-307, M.C.A. states that the Zoning Commission must conduct a public hearing and submit a report to the City Commission for all zoning map amendment requests; and WHEREAS, the City of Bozeman Community Development Board has been created by Resolution 5330; and WHEREAS, the City of Bozeman Community Development Board has been assigned the duties of the Zoning Commission required by Section 76-2-307 MCA; and WHEREAS, Chapter 38, Article 2 of the Bozeman Unified Development Code sets forth the procedures and review criteria for zoning map amendments; and WHEREAS, after conducting the required public hearing on March 18, 2024, the Bozeman Community Development Board in their capacity as the Zoning Commission 73 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 2 of 8 recommended to the Bozeman City Commission that application No. 2 3204, the Nexus Point Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on April 2, 2024, to receive and review all written and oral testimony on the request for the zone map amendment; and WHEREAS, the City Commission reviewed and considered the zone map amendment criteria established in Section 76-2-304, M.C.A., and found that the proposed zone map amendment would be in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The City adopted a growth policy, the Bozeman Community Plan 2020, by Resolution 5133 to establish policies for development of the community including zoning; 2. The Bozeman Community Plan 2020, Chapter 5, sets forth the policies by which the City reviews and applies the criteria for amendment of zoning established in 76 -3-304, MCA; 3. Zoning, including amendments to the zoning map, must be in accordance with an adopted growth policy; 4. A staff report analyzing the required criteria for a zone map amendment, including accordance to the Bozeman Community Plan 2020, found that the required criteria are satisfied; 5. The two required public hearings were advertised as required in state law and municipal code and all persons have had opportunity to review the materials applicable to the application and provide comment prior to a decision; 74 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 3 of 8 6. The Bozeman Zoning Commission, which responsibilities have been assigned to the Community Development Board, has been established as required in state law and conducted their required public hearing; and after consideration of application materials, staff analysis and report, and all submitted public comment recommended approval of the requested R-4, B-2M, and PLI districts. 7. The City Commission conducted a public hearing to provide all interested parties the opportunity to provide evidence and testimony regarding the proposed amendment prior to the City Commission acting on the application. 8. The City Commission considered the application materials, staff analysis and report, Community Development Board recommendation, all submitted public comment, and all other relevant information. 9. The City Commission determines that, as set forth in the staf f report and incorporating the staff findings as part of their decision, the required criteria for approval of Application No. 23204 the Nexus Point Zone Map Amendment have been satisfied and no spot zoning occurs. Section 2 That the zoning district designations of the following-described property is hereby established as R-4 (Residential High Density District): Legal Description All that certain portion of Nexus Point Subdivision being Lot 1, Block 1, Lot 3, Block 1, Lot 1, Block 2, and Lots 3 and 4 of Block 2 together with portions of Arnold Street and South 21st Avenue located in the NE ¼ of Section 23 Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana, being more fully bounded and described as follows: Beginning at the northeast corner of the herein described tract at a point on the west right- of-way line of South 19th Avenue; thence along said right-of-way line the three (3) following courses; 1) South 00˚33’00” East, a distance of 370.70 feet; 2) North 89˚22’02” West, a distance of 9.89 feet; 3) South 00˚43’58” East, a distance of 333.48 feet to the northeast corner of Lot 1, Block 1, Parkland of Minor Subdivision Number 235C; thence along the north line of said Parkland South 89˚49’56” West, a distance of 114.48 feet to the southeast corner of Park No. 1, Block 2; Nexus Point Subdivision; thence along the 75 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 4 of 8 east line of said Park the five (5) following courses; 1) North 00˚15’42” West, a distance of 18.39 feet; 2) North 13˚18’18” West, a distance of 27.98 feet; 3) North 07˚14’30” East, a distance of 31.57 feet; 4) North 00˚12’53” West, a distance of 33.61 feet; 5) South 89˚46’59” West, a distance of 5.99 feet to the east line of Lot 2, Block 2, Nexus Point Subdivision; thence along said east line the five (5) following courses; 1) North 06˚27’05” West, a distance of 46.56 feet; 2) North 10˚08’23” East, a distance of 27.68 feet; 3) North 04˚50’20” East, a distance of 13.80 feet; 4) North 15˚30’19” West, a distance of 43.46 feet; 5) North 00˚45’44” East, a distance of 60.52 feet to the South right-of-way line of Arnold Street; thence through Arnold Street North 00˚13’00” West, a distance of 30.00 feet to the centerline of Arnold Street; thence along said centerline North 89˚47’00” East, a distance of 9.56 feet; thence continuing through said Arnold Street North 00˚13’00” West, a distance of 30.00 feet to the southeast corner of Lot 2, Block 1 of said Nexus Point Subdivision; thence along said Lot 2, Block 1 the ten (10) following courses; 1) North 00˚00’55” East, a distance of 63.02 feet; 2) North 03˚25’19” West, a distance of 57.13 feet; 3) North 15˚56’53” West, a distance of 15.46 feet; 4) North 69˚48’41” West, a distance of 34.99 feet; 5) North 62˚54’36” West, a distance of 30.59 feet; 6) North 72˚04’54” West, a distance of 43.76 feet; 7) North 65˚53’36” West, a distance of 21.81 feet; 8) South 86˚01’05” West, a distance of 23.09 feet; 9) North 58˚16’17” West, a distance of 7.97 feet; 10) South 34˚38’39” West, a distance of 109.59 feet to the north right-of-way line of Arnold Street; thence through Arnold Street South 38˚00’46” West, a distance of 30.00 feet to a point in the centerline of Arnold Street; thence along said centerline the two (2) following courses; 1) South 51˚59’14” East, a distance of 122.93 feet; 2) along a cu rve turning to the left with an arc length of 26.66’, with a radius of 150.00’, with a chord bearing of South 60˚26’49” East, with a chord length of 26.62’, with a delta angle of 16˚10’56”; thence through said Arnold Street and along the west line of Lot 2, Block 2 of said Nexus Point Subdivision, respectively, South 24˚27’42” West, a distance of 40.00 feet; thence continuing along the west line of said Lot 2, Block 2 South 00˚34’10” East, a distance of 187.06 feet to the north line of Park No. 1, Block 2 o f said Nexus Point Subdivision; thence along said north line South 89˚46’59” West, a distance of 330.78 feet to the east right-of-way line of South 21st Avenue; thence through South 21st Avenue South 75˚50’45” West, a distance of 30.00 feet to the centerline of South 21st Avenue; thence along said centerline the three (3) following courses; 1) along a curve turning to the left with an arc length of 54.48’, with a radius of 150.00’, with a chord bearing of North 24˚33’33” West, with a chord length of 54.18’, with a delta angle of 20˚48’37”; 2) along a reverse curve turning to the right with an arc length of 91.81’, with a radius of 150.00’, with a chord bearing of North 17˚25’48” West, with a chord length of 90.38’, with a delta angle of 35˚04’06”; 3) North 00˚06’14” East, a distance of 229.44 feet to the centerline of Arnold Street; thence along said centerline the three (3) following courses; 1) North 89˚33’18” West, a distance of 280.12 feet; 2) along a curve turning to the righ with an arc 76 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 5 of 8 length of 143.28’, with a radius of 150.00’, with a chord bearing of North 62˚11’26”, West, with a chord length of 137.89’, with a delta angle of 54˚43’43”; 3) North 34˚49’35” West, a distance of 208.93 feet to the south line of Lot 5A of the Amended Plat of Lot 5 and Lot 6, Genesis Business Park Subdivision; thence along the south line of said Lot 5A and Tract 1 of Certificate of Survey Number 1969, respectively, S 89˚31’03” East, a distance of 1190.91 feet to the Point of Beginning. Said tract containing in area 10.169 acres and is subject to any existing easements. Section 3 That the zoning district designations of the following-described property is hereby established as B-2M (Community Business District-Mixed): Legal Description All that certain portion of Nexus Point Subdivision being Lot 2, Block 1 and Lot 2, Block 2 together with portions of Arnold Street located in the NE ¼ of Section 23 Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Mon tana, being more fully bounded and described as follows: Beginning at the southeast corner of Lot 1, Block 1 of said Nexus Point Subdivision; thence along the east line of said Lot 1 North 34˚38’39” East, a distance of 109.59 feet to Lot 3, Block 1 of said Nexus Point Subdivision; thence along said Lot 3 the nine (9) following courses; 1) South 58˚16’17” East, a distance of 7.97 feet; 2) North 86˚01’05” East, a distance of 23.09 feet; 3) South 65˚53’36” East, a distance of 21.81 feet; 4) South 72˚04’54” East, a distance of 43.76 feet; 5) South 62˚54’36” East, a distance of 30.59 feet; 6) South 69˚48’41” East, a distance of 34.99 feet; 7) South 15˚56’53” East, a distance of 15.46 feet 8) South 03˚25’19” East, a distance of 57.13 feet; 9) South 00˚00’55” West, a distance of 63.02 feet, to the north right-of-way line of Arnold Street; thence through said Arnold Street South 00˚13’00” East, a distance of 30.00 feet to the centerline of Arnold Street; thence along said centerline South 89˚47’00” West, a distance of 9.56 feet; thence through said Arnold Street South 00˚13’00” East, a distance of 30.00 feet to the west line of Lot 1, Block 2 of said Nexus Point Subdivision; thence along said west line the five (5) following courses; 1) South 00˚45’44” West, a distance of 60.52 feet; 2) South 15˚30’19” East, a distance of 43.46 feet; 3) South 04˚50’20” West, a distance of 13.80 feet; 4) South 10˚08’23” West, a distance of 27.68 feet; 5) South 06˚27’05” East, a distance of 46.56 feet to the north line of Park No. 2, Block 2 of Nexus Point Subdivision; thence along said north line the two (2) following courses: 1) South 89˚46’59” West, a distance of 135.16 feet; 2) North 00˚19’45” West, a distance of 10.00 feet to the southeast corner of Lot 3, Block 2 of 77 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 6 of 8 said Nexus Point Subdivision; thence along the east line of said Lot 3 North 00˚34’10” West, a distance of 187.06 feet; thence continuing along said east line and through Arnold Street, respectively, North 24˚27’42” East, a distance of 40.00 feet to the centerline of Arnold Street; thence along said centerline the two (2) following courses; 1) along a curve turning to the right with an arc length of 26.66’, with a radius of 150.00’, with a chord bearing of North 60˚26’49” West, with a chord length of 26.62’, with a delta angle of 10˚10’57”; 2) thence North 51˚59’14” West, a distance of 122.93 feet; thence through said Arnold Street North 38˚00’46” East, a distance of 30.00 feet to the Point of Beginning. Said tract containing in area 1.493 acres and is subject to any existing easements. Section 4 That the zoning district designations of the following-described property is hereby established as PLI (Public Lands and Institutions): Legal Description All that certain portion of Nexus Point Subdivision being Park No. 1, Block 2 together with portions of South 21st Avenue located in the NE ¼ of Section 23 Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana, being more fully bounded and described as follows: Beginning at the southwest corner of Lot 4, Block 2 of said Nexus Point Subdivision; thence along the south line of Lot 4 and Lot 3, Block 2 of said Nexus Point Subdivision, respectively, North 89˚46’59” East, a distance of 330.76 feet; to the west line of Lot 2, Block 2 of said Nexus Point Subdivision; thence along the west and south line of said Lot 2, Block 2, respectively, the two (2) following courses; 1) South 00˚19’45” East, a distancer of 10.00 feet; 2) North 89˚46’59” East, a distance of 141.15 feet to the west line of Lot 1, Block 2 of said Nexus Point Subdivision; thence along said west line the four (4) following courses; 1) South 00˚12’53” East, a distance of 33.61 feet; 2) South 07˚14’30” West, a distance of 31.57 feet; 3) South 13˚18’18” East, a distance of 27.98 feet; 4) South 00˚15’42” East, a distance of 18.39 feet to the north line of Lot 1, Block 1, Parkland of Minor Subdivision Number 235C; thence along the north line of said Parkland South 89˚49’56” West, a distance of 468.91 feet to the west right-of-way line of South 21st Avenue; thence through South 21st Avenue South 89˚49’56” West, a distance of 30.00 feet to the centerline of South 21st Avenue; thence along said centerline the two (2) following courses; 1) North 00˚14’12” West, a distance of 73.91 feet; 2) along a curve turning to the left with an arc length of 39.36’, with a radius of 150.00’, with a chord bearing of North 06˚38’14” West, with a chord length of 39.24’, with a delta angle of 15˚02’01”; thence through South 21st Avenue North 75˚50’45” East, a distance of 30.00 feet to the Point of Beginning. 78 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 7 of 8 Said tract containing in area 1.338 acres and is subject to any existing easements. Section 5 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 6 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. Section 7 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 8 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” 79 Ordinance No. 2164, Nexus Point Zone Map Amendment Page 8 of 8 Section 9 Effective Date. This ordinance shall be in full force and effect thirty (30) days after fin al adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on th e 21st day of May 2024. ____________________________________ TERENCE CUNNINGHAM 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 4th day of June 2024. _________________________________ TERENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 80 Memorandum REPORT TO:City Commission FROM:Anna Bentley, Community Development Director SUBJECT:Findings of Fact and Order for Appeal 23214 Overturning the Conditional Approval of the Sundance Springs Subdivision, Phase 1B, Commercial Lot 2 Site Plan Application 22047 MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION:Approve the Findings of Fact and Order 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:On February 27, 2024, the City Commission held a hearing to consider Appeal 23214 regarding the Director of Community Development's administrative decision approving Site Plan Application number 22047. The Commission determined the administrative decision should be overturned by a vote of 4-1 and provided findings to support the decision. This Findings of Fact and Order memorializes the findings made by a majority of the Commission in supporting the decision to overturn the Director's administrative decision. This document supplements the video recording of the Commission hearing and adopted minutes of the February 27, 2024 City Commission meeting. UNRESOLVED ISSUES:None. ALTERNATIVES:Decline to adopt the Findings of Fact and Order and provide direction to staff in the alternative. FISCAL EFFECTS:None. Attachments: Findings of Fact and Order Sundance Springs Appeal 23214.pdf Report compiled on: May 13, 2024 81 Findings of Fact and Order Sundance Springs Appeal Appeal number 23214 23214 Findings of Fact and Order Overturning the Conditional Approval of the Sundance Springs Subdivision, Phase 1B, Commercial Lot 2 Site Plan Application 22047 Public Hearing: February 27, 2024 before the Bozeman City Commission Description: Appeal filed by Tim & Nancy Swanson and Geoffrey Poole seeking to overturn the Director of Community Development’s (Director) administrative decision approving site plan application 22047. Project Location: Sundance Springs Sub Ph 1B, S25, T02 S, R05 E, Comm Lot 2 Plat J-257; corner of South 3rd Avenue and Little Horse Drive Staff Contact: Anna Bentley, Director of Community Development Brian Krueger, Development Review Manager Decision: Overturn the Director’s Conditional Approval of Site Plan 22047. (4-1) Report Date: May 13, 2024 On February 27, 2024, the Bozeman City Commission (Commission) held a hearing to consider Appeal #23214 seeking to overturn the Director’s administrative decision approving a site plan application in the Sundance Springs subdivision, Application #22047. This appeal is for the specific application and it is not an appeal interpreting code generally applicable throughout the city. The Commission decided to overturn the Director’s decision. This document memorializes the alternative findings made by a majority of the Commission members in support of the decision to overturn the Director’s conditional approval of site plan application 22047. A video recording of the Commission hearing and the Commission’s decision is posted on the City’s website, found here. Consideration of this agenda item begins at 01:08:20 in the video. Minutes of the Commission meeting are also posted on the City’s website, found here. The City Commission first made the following motion, which failed 1-4: Having reviewed and considered Appeal 23214 seeking to overturn the decision of the Director of Community Development conditionally approving the Sundance Springs 82 Page 2 of 2 Subdivision, Phase 1B, Commercial Lot 2 Site Plan application 22047, the record of review, the presentation of staff and the appellant, public comment and all information presented, I move to uphold the decision that the Director of Community Development reflected in her June 28th, 2023 conditional approval letter. Then, the Commission made the following motion, which passed on a 4-1 vote, overturning the Director’s decision: I move to overturn the decision of the Director of Community Development made on June 28, 2023, related to the conditional approval of the Phase 1B, Commercial Lot 2 Site Plan application number 22047. CITY COMMISSION’S FINDINGS: 1. The City had sufficient documents within the surviving record to evaluate site plan application 22047. 2. The Director was correct in applying 2022 Bozeman Municipal Code standards and processes in reviewing the application because site plan application 22047 was deemed adequate in 2022. 3. The design guidelines, which were a required component of the original Sundance Springs PUD approval, are integral to this PUD. In the Sundance Springs PUD, the design guidelines are incorporated within the Declaration of Covenants, Conditions, and Restrictions for Sundance Springs Section II Neighborhood Services Property. The Director should have considered and applied the design guidelines for the Sundance Springs PUD, which are incorporated within the Covenants, to this site plan application. 4. The Developer did not demonstrate, as required by 38.250.060.E, that the criteria for approval of the departure from 38.510.020.F.1 related to block frontage standards, were met. The purpose of the standard, to create a comfortable walking environment, was not met. Therefore, the departure allowing the proposed buildings to face a trail proposed to be built on land the Developer does not own may not be approved. COMMISION ORDER: The decision of the Director of Community Development, conditionally approving site plan application 22047, is overturned. 83 Memorandum REPORT TO:City Commission FROM:Jim Veltkamp, Police Chief SUBJECT:Bozeman Police Department 2023 Annual Report MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Special Presentation STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:This is a special presentation of the Bozeman Police Department 2023 Annual Report UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Attachments: Annual Report 2023.pdf Report compiled on: May 10, 2024 84 1 Bozeman Police Department 2023 Annual Report 85 2 TABLE OF CONTENTS Message from the Chief 3 Mission and Values 4 Organizational Chart 5 Our Department 6 Answering the Call 7 Recruitment 11 Training 13 Detective Division 14 Traffic Safety 16 Specialty Assignments 17 988 Partnership 19 Beyond the Badge 19 BPSC National Recognition 23 Staff Additions 25 Promotions and Retirements 27 Awards 28 86 3 Message from Police Chief Jim Veltkamp It is not difficult to understand why Bozeman is growing so fast. The numerous outdoor recreational opportunities, the access to retail and restaurants, and the quality of the people here all contribute to making Bozeman such a special place. With this growth have come many challenges for our department. Socioeconomic issues, more critical incidents, higher call volumes, more events and venues, and drugs in the community have all meant an increasing workload. The members of this department deserve an immense amount of credit for how well they handle these challenges. They do difficult jobs in difficult environments, and they consistently make personal sacrifices to meet the increasing demands of a growing community. They do it with a sense of service and pride, all with short staffing in a place with a very high cost of living. This past year, we implemented an entire new policy manual, hired several officers and staff members, focused on providing additional training, and added the rank of Lieutenant. We began working in partnership with the staff members of the new Neighborhood Services unit, and we continued improving our collaboration with Gallatin Mobile Crisis to effectively respond to calls involving mental health. We also added a couple new community events and began offering the Citizen’s Police Academy twice a year. Thank you for your entrusting the members of the Bozeman Police Department with the safety of this community. We pledge to continue working hard to maintain the high quality of life we enjoy in Bozeman. Thank you, Chief Jim Veltkamp 87 4 OUR MISSION Our Mission is to keep Bozeman the most livable place through public safety and community partnerships. OUR VALUES LEADERSHIP in the community that is proactive and innovative. INTEGRITY at all times with transparency and accountability. SERVICE above self that is personal, prompt and respectful. TEAMWORK that promotes collaboration and success. 88 5 ORGANIZATIONAL CHART Police Chief Deputy Police Chief Patrol Captain Patrol Lieutentant Day Shift Sergeant Day Shift Team A Day Shift Sergeant Day Shift Team B Mid Shift Sergeant Mid Shift Team A Mid Shift Sergeant Mid Shift Team B Night Shift Sergeant Night Shift Team A Night Shift Sergeant Night Shift Team B Court and Security Officers (3) Part-Time Court Officers (2) Crash Investigator Patrol Lieutentant Detective Captain Detective Sergeant Property Crimes Detectives (2) Crimes Against Persons Detectives (3) Internet Crimes Against Children Detective Domestic Violence Detective Drug Task Force (2) Evidence Technician School Resource Sergeant School Resource Officers (4) Support Services Captain Support Service Sergeant Vehicle Maintenance Coordinator Animal Control Officers (2) Community Resource Officer Information Manager Information Specialists (4) Administrative Coordinator 89 6 POSITIONS QUANTITY Chief 1 Deputy Chief 1 Captains 3 Lieutenants 2 Sergeants 9 Patrol Officers 38 Detectives 9 School Resource Officers 4 Community Resource Officer 1 Animal Control Officers 2 Crash Investigator 1 Evidence Technician 1 Police Information Manager 1 Police Admin Coordinator 1 Police Information Specialists 4 Court and Security Officers 3 Fleet Manager 1 Part-time Officer 1 73 2023 AUTHORIZED SWORN OFFICERS 68 2023 ACTUAL STRENGTH 14 AUTHORIZED CIVILIAN STAFF 55 MALE OFFICERS 13 FEMALE OFFICERS 37 AVERAGE AGE 8 AVERAGE YEARS OF SERVICE WITH BPD OUR DEPARTMENT 90 7 48099 47060 48113 49998 45511 2019 2020 2021 2022 2023 BPD Total Calls for Service Column1 32564 32746 35477 37281 35308 14525 14314 12805 12893 10070 2019 2020 2021 2022 2023 Proactive vs Reactive Calls for Service Proactive Reactive 45,511 CFS in 2023 ANSWERING THE CALL 91 8 CASES GENERATED 4999 4831 5819 5636 2020 2021 2022 2023 Total Investigative Cases Generated BPD opened 5636 investigative cases in 2023 13,128 17,685 11,063 3635 Call for Service by Beat Beat 1 Beat 2 Beat 3 Other A case typically refers to a specific incident or investigation that has been assigned to a particular officer or team for follow-up and resolution. Cases require significantly more time and follow-up and are generated from calls for service or other sources of information, such as proactive policing efforts or routine patrols. Cases up 16.5 % since 2020 92 9 266 308 395 0 50 100 150 200 250 300 350 400 450 RFPs Request for Prosecution Submissions 2021 2022 2023 Great Falls Billings Helena Missoula Butte Kalispell Bozeman MT Bd of Crime Control Data 138.76 122.83 111.72 104.52 99.03 90.98 67.98 138.76 122.83 111.72 104.52 99.03 90.98 67.98 Crimes per 1000 people A request for prosecution (RFP) is a formal request to a prosecutor after a felony arrest or as a presentation of evidence supporting charges against a suspect. An RFP occurs at the end of a lengthy and often complex investigation by an officer and can require additional follow-up if requested. Since 2021, TOTAL RFPs INCREASED BY 48.5% BZN REMAINS THE SAFEST OF ALL MAJOR MT CITIES 93 10 CRIMES AGAINST PERSONS CRIME TYPE TOTAL OFFENSES OFFENSES PER 10,000 People Aggravated Assault 136 25.86 Intimidation 111 21.11 Simple Assault 309 58.76 Homicide 2 0.38 Negligent Homicide 1 1.90 Robbery 12 0.19 Human Trafficking 5 0.95 Kidnapping 19 3.61 Sex Offense - Forcible 109 20.73 Sex Offense - Nonforcible 10 1.90 Total 714 133.50 PROPERTY CRIMES CRIME TYPE TOTAL OFFENSES OFFENSES PER 10,000 People Arson 2 0.38 Burglary 55 10.46 Counterfeit/Forgery 33 6.28 Vandalism 303 57.62 Embezzlement 5 0.95 Fraud Offenses 119 22.63 Theft Offenses 1,014 192.83 Motor Vehicle Theft 65 12.36 Total 1589 133.50 Montana Board of Crime Control NIBRS data Montana Board of Crime Control NIBRS data 94 11 POPULATION Billings Missoula Great Falls Bozeman Butte Helena Kalispell Population 121,300 78,200 60,400 57,400 35,724 34,262 30,300 121,300 78,200 60,400 57,400 35,724 34,262 30,300 Montana Major Cities Population Estimates RECRUITMENT 49900 53600 55100 56100 57400 2019 2020 2021 2022 2023 Bozeman Population Estimate 95 12 The Bozeman Police Department recognizes that effective recruiting is essential for building a skilled, diverse, and representative workforce capable of effectively serving and protecting our community. The department continues to expand its recruiting strategy by leveraging technology and social media platforms to reach a wider audience of potential candidates. Officer wellness incentives, competitive compensation and a robust training program are just a few of the other strategies to help attract the best candidates. WELCOMING NEW POLICE OFFICERS In 2023, The Bozeman Police Department received 146 applications for police officer positions. After extensive testing and background investigations, 9 new police officers were added to the ranks. 9 NEW POLICE OFFICERS HIRED 4 LATERAL TRANSFERS HIRED 33 CANDIDATES INTERVIEWED 158 APPLICATIONS SUBMITTED ATTRACTING TALENT 96 13 TRAINING and PROFESSIONAL DEVELOPMENT Investing in comprehensive and ongoing training for police officers is essential for promoting effective, ethical, and community-oriented policing practices that uphold public safety while respecting the rights and dignity of all individuals. Trainings for BPD officers included a variety of classes such as defensive tactics, high risk traffic stops, communication and de-escalation, non-lethal interventions, family emotional survival, firearms, trial testimony, interviews, tactical medical care and supervisor training to name a few. Over 8600 hours of officer training Frequent training events hosted at BPSC De-escalation training for city employees 97 14 SCHOOL RESOURCE OFFICERS DETECTIVE DIVISION It is the mission of the Bozeman Police Department Detective Division to provide high quality criminal investigative support to the Bozeman Police Department and to the victim of a crime by conducting timely, competent, and thorough investigations using advanced investigative techniques. Major initiatives in 2023 focused on human trafficking and child exploitation. 664 546 743 2021 2022 2023 Felony Cases Investigated Represents workload and not NIBRS dispositions 21 Human Trafficking Investigations In 2023, SROs implemented a highly successful diversion program for juveniles committing minor offenses to help keep juveniles out of the criminal justice system. 2796 Calls for Service in 2023 98 15 MOVING EVIDENCE MISSOURI RIVER DRUG TASK FORCE (MRDTF) The final evidence move from the Law and Justice Center to the Bozeman Public Safety Center was completed in September 2023. Each piece of evidence had to be physically moved, re-catalogued and organized onto shelves. Amazing work by BPD Evidence Superstar Melanie Kammerer! 100,000 pieces of evidence were moved into the BPSC 100,000 pieces of evidence were moved into the BPSC 99 16 TRAFFIC SAFETY 332 255 335 320 266 2019 2020 2021 2022 2023 DUI Arrests 266 DUI ARRESTS IN 2023 As part of Bozeman’s SAFE plan, officers conducted focused enforcement on safety-critical transportation and intersection-related items. 704 HIT AND RUN CRASHES in 2023 1504 1774 1700 201 215 199 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2021 2022 2023 Total Crashes Injury Non-Injury 100 17 RADAR AND MESSAGE BOARD K9 PROGRAM The BPD K9 Program currently consists of Officer Peterson and his canine partner Stretch. Peterson is responsible for the care, training, and deployment of the K9 partner. The bond between a handler and their K9 is crucial for effective teamwork and communication during operations. The K9 program serves the community by providing patrol functions as well as locating illegal narcotics and conducting searches of buildings, vehicles and other property for illegal substances and suspects. to develop skills in areas such as obedience, agility, tracking, searching and detection. Stretch undergoes rigorous training and in 2023 successfully helped confiscate numerous narcotics, with fentanyl seizures increasing by 220% from 2022. 44 36 3 2 0 10 20 30 40 50 Total Narcotic Searches Suspects Tracked 200+ yds Call Outs Bozeman PD has four radar/message trailers that can be requested by the public and are used to promote road safety, reduce speeding, and improve traffic conditions. By combining speed monitoring technology with highly visible displays, radar trailers help deter speeding behavior, educate the public, and enhance overall traffic safety on roadways. SPECIALTY ASSIGNMENTS The trailers were deployed 525 days Methamphetamine – 480.3g Cocaine – 4.3g Heroin – 4.3g Fentanyl – 1,864 pills. 101 18 SPECIAL RESPONSE TEAM (SRT) The Bozeman area has a combined Special Response Team (SRT) composed of City of Bozeman/Gallatin County officers. was requested seven (7) times to incidents in Bozeman, Gallatin County and surrounding jurisdictions. They respond to incidents throughout Gallatin County and neighboring jurisdictions that include high risk, volatile situations where specialized training and equipment are needed, and where the capabilities of the patrol division are exceeded. ANIMAL CONTROL 0 2 4 6 8 10 12 Full Team Activations Barricaded Individuals School Threat High Risk Fugitive/Warrants Special Response Team Activations There were 17 additional partial SRT activations in 2023 Bozeman employs two full time Animal Control Officers whose primary focus is responding to nuisance animals, enforcing leash laws, education, and ensuring the welfare of animals. BPD Animal Control Officers responded to 3785 calls in 2023. 102 19 COMMUNITY OUTREACH HIGHLIGHTS Citizen’s Police Academy – The Police Citizens Police Academy (CPA) is a program designed to provide members of the community with insights into law enforcement operations and procedures. The primary goal of a Citizens Police Academy is to foster better understanding and cooperation between police departments and the communities they serve. In 2023, there were 44 graduates between the Spring and Fall academies. Trunk or Treat – The department had officers both downtown for the kid festivities as well as having patrol cars in neighborhoods “trunk or treating”. Both were extremely fun and well received. We always have officer Friendly’s equipment ready for quick deployment and photo op. 988 PARTNERSHIP The Bozeman PD continued to build on partnerships with mental health providers in Bozeman. The GALLATIN MOBILE CRISIS (GMC) team helps individuals experiencing a mental health crisis in Gallatin County get the care they need seven days a week, often responding with law enforcement to provide these services. Gallatin Mobile Crisis was used 335 times in 2023 BEYOND THE BADGE 103 20 Christmas Stroll – The first Saturday in December is Bozeman’s welcoming in of the Christmas Season. The Police Department is always on hand to serve up cheer, hot chocolate and photos for kids and adults as well. Special Olympics Torch Run – Bozeman Police Department Officers proudly led the Torch Run for Special Olympics as it made its way through downtown Bozeman. National Night Out – National Night Out is an opportunity for communities to come together, strengthen bonds, and demonstrate their commitment to building safer, more vibrant neighborhoods. It serves as a reminder of the importance of police- community partnerships in promoting public safety and enhancing the quality of life for all residents. Coffee with a Cop – Every other month, the department meets for coffee at different locations within the community. No agenda, no program, no schedule. Just a great opportunity to get together and chat, answer questions or address concerns. 104 21 SOCIAL MEDIA Cops and Bobbers – In BPD’s first annual Cops and Bobbers event, officers provided fishing equipment, bait, and instruction to area kids, creating an opportunity for positive interaction and relationship-building between police and community members. 29,123 Facebook followers 5864 Instagram followers 105 22 106 23 In December 2023, OFFICER Magazine awarded the Bozeman Public Safety Center its Gold Medal for Officer Station Design, a recognition of the outstanding architecture and design from law enforcement and public safety facilities nationwide. 100s of visitors toured the BPSC in 2023 NATIONAL RECOGNITION 107 24 108 25 STAFF ADDITIONS and CHANGES Fleet Manager In 2023, we said goodbye to Calvin Harman, our long time Fleet Manager. His service and commitment to the Bozeman Police Department will not be forgotten. We were fortunate to have Randy Schlichtmann transfer from City Shops and take over the important work of keeping our patrol fleet on the road. His skills underneath the hood of a car are unparalleled. Special Service Officers Special Services Officers serve a variety of roles for the City of Bozeman. They are the primary security for the Bozeman Public Safety Center, Municipal Courts and for other departments and events such as the library and City Commission Meetings. In 2023, the Bozeman Police Department added another SSO and there are currently 3 full time and one part time officers. 109 26 Police Information Services Team The Bozeman PD Information Specialists are the heart of our records management. They are the first to answer questions from the public and they ensure everything from our calls for service, requests for prosecution and body worn camera footage are appropriately classified, disseminated and retained. In 2023, the BPD added one more specialist to the team. IT Support Our dedicated IT support keeps all of the BPD technology up and running. In 2023, the IT Department assigned an additional part time civilian to assist the public safety divisions. 110 27 PROMOTIONS and RETIREMENTS Detective Dave Ferguson retired after 20+ years with the Bozeman Police Department. Detective Ferguson’s commitment to victims, especially to victims of domestic violence, is a lasting legacy that will be remembered. Anthony Hutchings promoted to Lieutenant Hal Richardson promoted to Lieutenant Ian Anderson promoted to Sergeant 111 28 INCREASED TRAINING In 2023, the Bozeman Police Department fully implemented a Teams model for patrol. The model allows for more consistent supervision, but it also allowed for a monthly training day for each Patrol Team. Along with department-wide training topics, Sergeants are given the latitude to determine what trainings are most needed for their teams. This bottom-up approach has led to reliable and effective in-service instruction. ECO-LOCK TECHNOLOGY This innovative technology was placed on all of our patrol fleet and it automatically turns the engine off to cut down on idling time which significantly cuts fuel consumption. It also reduces carbon dioxide emissions and saves 19 lbs per gallon burned while idling. CRIME FIGHTING TECHNOLOGY UPGRADES Purchase of Secure Warrant and advanced Cellebrite cell phone technology systems to increase officer efficiencies and crime solutions. This technology helps BPD investigative teams manage their workload in the face of rapidly evolving technology and crime trends. LEXIPOL POLICY IMPLEMENTATION The Bozeman PD adopted the Lexipol policy management software which uses nationwide standards and best practices while also incorporating state and federal laws and regulations where appropriate. Lexipol helps keep BPD policies updated with latest trends and guidance. NEIGHBORHOOD SERVICES The Neighborhood Services Division was started in 2023 with considerable assistance by the Bozeman PD. Since 2020, Community Resource Officer Scott Vongehr was successful in building relationships with people living in campers and tents and developing strategies for assistance and enforcement. This groundwork was essential in the successful hand off to the new Neighborhood Services Director as they worked to implement the new city camping ordinance. NOTABLE ACCOMPLISHMENTS 112 29 AWARDS DEVOTED SERVICE LIFESAVING Officer Capulong Officer Derrick Officer Cox Officer Fitzpatrick Officer Deets Sgt L. Chaffins Officer Ligotti Officer Peterson Officer Stephens Officer Ferguson Calvin Harmann Officer Bridge Officer Capulong Sgt Green Sgt Hutchings Officer Ng Officer Phillips Officer Sanders Officer Schultz MEDAL OF VALOR 113 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering SUBJECT:Resolution 5589, Updating Engineering Permit Fees MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consider the Motion: Motion to approve Resolution 5589 Updating Engineering Permit Fees. 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:Under Resolution 5589, fees for the review and approval of permits issued by the Department of Transportation and Engineering will be increased. The intent of the increases is to better align cost of service with revenue recovery. In order to determine appropriate fee levels, the Department commissioned an Engineering Review Fee Study to evaluate all permits reviewed by the Department and their associated existing fees and then determine full cost of service for providing review and approvals. The study found that our rate of cost recovery had fallen to approximately 29.5% for Fiscal Year 2023 and is projected to decline further to approximately 20% in the future. The Department has proposed increasing fees to meet a 75% level of cost recovery by Fiscal Year 2026. This public hearing for Resolution 5589 was adequately noticed on Saturday May 11th and 18th. The proposed Engineering fee schedule and study are attached for reference and review. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:Revenue will be increased per proposed fees. 114 Attachments: Resolution 5589 Establishing Transportation and Engineering Fee Schedule.pdf Res 5589_Engineering Permit Fee Schedule.pdf BozemanMT_EngineeringReview_FeeStudy_ProjectReport_FINAL_04232024.pdf Report compiled on: February 26, 2024 115 Version February 2023 RESOLUTION 5589 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING EXISTING FEES AND ESTABLISHING A FEE SCHEDULE FOR FEES COLLECTED FOR PERMITS REVIEWED AND APPROVED BY THE DEPARTMENT OF TRANSPORTATION AND ENGINEERING. WHEREAS, pursuant to §7-6-4013, Mont. Code Ann. when a local government has authority to establish a fee for a service to those served by the local government, the fees must be reasonable and related to the cost of providing the service. WHEREAS, the City by and through the Department of Transportation and Engineering (the “Department”) issues permits to individuals or entities for services that impact, occur on, or are related to street, sidewalks, pathways, and other public rights of way within the city. WHEREAS, pursuant to Sec. 34.02.030 Bozeman Municipal Code the Department is authorized to issue permits and collects fees for excavations in the public right of way; WHEREAS, pursuant to Sec. 38.400.090(A)(1)(a) BMC the Department is authorized to issue permits for curb cuts, driveways, and sidewalks; WHEREAS, pursuant to Sec. 34.02.040 and Sec. 34.02.050 BMC the Department may permit obstructions of a public right-of-way for residential or commercial needs; WHEREAS, pursuant to Sec. 38.410.060 BMC the Department is authorized to permit encroachment permits for utility easements in the dedicated right-of-way; WHEREAS, pursuant to Sec. 38.600.180 BMC the Department is authorized to collect an application review fee for flood plain permits in an amount established by city commission resolution; WHEREAS, pursuant to Sec. 40.02.740 BMC the Department is authorized to review fire flow applications; WHEREAS, pursuant to Sec. 34.05.080 BMC the Department is authorized to issue permits and collect fees for exclusive use of a public right-of-way in the downtown business district; WHEREAS, pursuant to Chapter 34, Article 8 BMC the City is authorized to permit and recover costs related to parades and public assemblies including costs of traffic control signals and street closures for events; 116 Version February 2023 WHEREAS, pursuant to Sec. 34.08.220 BMC the City is authorized to issue a waivers for open containers of alcohol and collect associated fees; WHEREAS, the Department commissioned an Engineering Review Fee Study to reevaluate fees collected by the Department of Transportation and Engineering and to examine the full cost to the city for providing these services and cost recovery. The results of the fee study identified services the Department currently provides but is not assessing fees for; where fees currently collected are well below cost recovery amounts; and recommendations with industry standards to revise the fees to more accurately and equitably recover costs for services. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 Transportation and Engineering fees are updated and established as detailed in the Transportation and Engineering Division Fee Schedule. Section 2 The Transportation and Engineering Division Fee Schedule goes into effect July 1, 2024. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ___________________, 2024. ___________________________________ Terence Cunningham Mayor ATTEST: ___________________________________ Mike Maas City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 117 Individual Fee / Service Name Current Base Fee Scaled Fee by Project Base Fee Proposed Variable Fee - Proposed Exclusive Use Permit for Downtown B-3 District $50.00 Additional fee is calculated by multiplying the square-foot area of the right of way encumbered by the exclusive use, by the total final square-foot land value of the adjacent property (as determined in the most recent appraisal by the MT Dept of Revenue for ad valorem property taxation purposes), multiplied by the whole month percentage of the calendar year the exclusive use is occurring, multiplied by a factor of 5%. $100.00 Additional fee is calculated by multiplying the square-foot area of the right of way encumbered by the exclusive use, by the total final square-foot land value of the adjacent property (as determined in the most recent appraisal by the MT Dept of Revenue for ad valorem property taxation purposes), multiplied by the whole month percentage of the calendar year the exclusive use is occurring, multiplied by a factor of 5%. Downtown Sidewalk Encrochment B-3 District $50.00 $0.00 $100.00 $0.00 Commercial Encroachment $0.00 $0.00 $320.00 $80 x the number of weeks more than two weeks Residential Encroachment $0.00 $0.00 $275.00 $80 x the number of weeks more than two weeks ROW Utility Encroachment (long-term)$0.00 $0.00 $425.00 $80 x the number of linear foot increments or fraction thereof Street Closure - Events $0.00 $0.00 $75.00 $0.00 Sign Operation - Events $0.00 $0.00 $75.00 $0.00 Sign Installation or Change Permit $0.00 $0.00 $150.00 $0.00 Public Assembly Permit $35.00 $250 (if street closure is required)$50.00 $350 (if street closure is required) Parade Permit $35.00 $250 (if street closure is required)$50.00 $350 (if street closure is required) Open Container Permit $25.00 $100 (if street closure is required)$50.00 $140 (if street closure is required) Fire Flow Permit $0.00 $0.00 $100.00 $0.00 Flood Plain Permit $100.00 $0.00 $150.00 $0.00 Curb Cut / Driveway / Sidewalk $0.00 $175.00 $180 x 50 s.f. segments or fraction there of Street Cut Permits Application Fee $50.00 Plus (total square feet of impacted area) x ($0.45)$250.00 Plus (total square feet of impacted area) x ($0.75) Transportation and Engineering Permit Fee Schedule RESOLUTON 5589 118 City of Bozeman Engineering Review Fee Study Final Report Submitted by: BerryDunn 2211 Congress Street Portland, ME 04102-1955 207.541.2200 Kevin Price, Principal kprice@berrydunn.com Jesse Myott, Project Manager jmyott@berrydunn.com Submitted on: Draft v1.0: December 6, 2023 Draft v2.0: January 18, 2024 Final: April 23, 2024 119 Engineering Review Fee Study Report – Final | April 23, 2024 i Table of Contents Section Page Table of Contents ....................................................................................................................... i 1.0 Introduction ....................................................................................................................... 2 1.1 Project Background ....................................................................................................... 2 1.2 Abbreviations and Terms .............................................................................................. 3 2.0 Approach and Work Performed......................................................................................... 4 2.1 Work Performed ............................................................................................................ 4 3.0 Transportation and Engineering: Technical Analysis ............................................................ 6 3.1 Department Overview .................................................................................................... 6 3.2 Current Fees and Charges Structure ............................................................................. 7 3.3 Transportation and Engineering Financial Analysis ....................................................... 8 3.4 Summary of Financial Analysis Findings ......................................................................11 4.0 Recommendations and Considerations ...........................................................................13 4.1 Fee Updates ................................................................................................................13 4.2 Fee Level Recommendations .......................................................................................13 4.2.1 Alcohol Open Container, Film Permits, Parade / Public Assembly .........................13 4.2.2 Street Cut, Curb Cut, Driveway, and Sidewalk .......................................................14 4.2.3 Encroachments and Exclusive Use ........................................................................15 4.2.4 Public Right-of-Way Utility Occupancy ...................................................................16 4.2.5 Streets, Sign, and Other ........................................................................................16 4.3 Summary of Recommendations and Considerations ....................................................18 5.0 CoS of Service Model Overview ......................................................................................20 5.1 Cost Model Framework ................................................................................................20 Appendix A: Cost Model ........................................................................................................21 120 Engineering Review Fee Study Report – Final | April 23, 2024 2 1.0 Introduction This section of the report provides a high-level background of the project as well as key terms and their definitions. 1.1 Project Background The City of Bozeman (City) partnered with Berry Dunn McNeil & Parker, LLC (BerryDunn) to prepare an Engineering Review Fee Study to reevaluate the fees collected by the transportation and engineering functions of the Public Works Department (the Department). The study projects the full cost of providing Department services contained within the core review areas of curb cut, street cut, public assembly/parade, commercial and residential encroachment permitting, signs, and long-term utility right-of-way (ROW) encroachment permitting. The results offer a cost recovery determination for Department core service categories and, in some instances, specific permit and/or service types. Establishing cost-recovery baselines allows for more detailed revenue and expenditure forecasts to be developed, which can serve as a foundation for assessing the level of fees necessary to meet revenue requirements, sustain current levels of service, and fund goals, initiatives, and enhanced service delivery in the future. The final project report includes recommendations based on objective analytical findings, institutional knowledge, and considerations related to best practices in policy, process, level of service, and funding. The analysis also identifies possible barriers and challenges to implementing recommendations and considerations, where applicable. Until now, the Department had not undertaken a formal cost of service (CoS) analysis and fee assessment conducted by an outside entity for transportation and engineering review services for over 10 years. For this reason, most fees have remained unchanged for a number of years, despite increased demand for certain services as a result of extraordinary construction and development activity throughout the City. To that end, the Department has become increasingly aware that the cost of providing fee-applicable services—and the ability to fund Department goals and initiatives—is beginning to disproportionally outpace the revenue generated by providing those services. For these reasons, the Department is interested in understanding the full cost of providing fee-related services and considering recommendations that might better align fee levels in the future to reflect these costs, satisfy revenue requirements, fund future transportation and engineering initiatives, and generate sufficient revenue to help ensure business and service level continuity. The final project report provides the City with an overview of current Department fees, charges, and associated revenues and expenses for each permit, inspection, and service category for which a fee is currently assessed related transportation and engineering services. The report also documents the estimated percentage of full costs recovered to deliver specific services and issue specific permits at current fee levels. This will allow Department leadership to make informed policy decisions regarding fee and charge adjustments if desired. Finally, this report describes BerryDunn’s approach to the analysis and its understanding of the Department’s organizational structure, services provided, findings, considerations, and recommendations. 121 Engineering Review Fee Study Report – Final | April 23, 2024 3 1.2 Abbreviations and Terms Table 1.2: Project Abbreviations, Terms, and Definitions Abbreviation/Term Definition BerryDunn Berry Dunn McNeil & Parker, LLC City City of Bozeman CoS Cost of Service Department Transportation and Engineering services of the Public Works Department EE Full-Time Employee FTE Full-Time Equivalent FY Fiscal Year MS Microsoft PSA Personnel Services Analysis ROW Right of Way SME Subject Matter Expert State State of Montana 122 Engineering Review Fee Study Report – Final | April 23, 2024 4 2.0 Approach and Work Performed This section of the report outlines how BerryDunn approached the project, summarizes major tasks performed within each project phase, provides an overview of how the cost model was developed, and offers a high-level synopsis of project deliverables. 2.1 Work Performed BerryDunn’s approach to completing this study involved five phases: • Phase 0 – Project Management and Planning • Phase 1 – Full Cost Modeling and Analysis • Phase 2 – Fee Schedule Updates, Recommendations, and Considerations • Phase 3 – Draft CoS and Fee Study Report • Phase 4 – Final CoS and Fee Study Report BerryDunn’s Microsoft (MS) Excel-based CoS model was central to this approach, forming the basis for calculating the City’s full cost of providing each permit and service by service category and, in some cases, by specific permit or service type. BerryDunn used the model to develop fee adjustment forecast scenarios and to assess the fiscal impact of implementing new fees, changes to current fee levels, and funding requirements related to applicable Department and City initiatives. After an initial project planning call with the Department project team to clarify goals and objectives, identify known project constraints, and refine dates and/or tasks, BerryDunn requested and reviewed documentation and data to better understand the Department’s current fees and charges for transportation and engineering review services environment. BerryDunn conducted a project kickoff meeting and scheduled a series of follow-up meetings with Department subject matter experts (SMEs) involved in the CoS analysis. BerryDunn also followed up with Department staff on multiple occasions throughout the project to confirm our understanding of the data and information provided. A main component of these conversations was to discuss the level of personnel effort required to deliver Department services to customers and discuss the revenue generated and associated expenses incurred to provide those services. BerryDunn reviewed the Department’s current master fee schedules related to curb cut, street cut, public assembly/parade, commercial and residential encroachment permitting, signs, and long-term utility right-of-way (ROW) encroachment permitting categories. BerryDunn also guided Department staff through discussions to consider fee schedule adjustments that might better reflect the Department’s most commonly provided services and how it delivers those services. This included identifying services with no associated fees in the current fee schedule and forecasting additional revenue generation projected to be realized from implementing fees for services. 123 Engineering Review Fee Study Report – Final | April 23, 2024 5 BerryDunn also reviewed all other Department services and analyzed them on a time-per-staff activity basis by which costs were assigned accordingly. Other charges, such as penalties, fines, and State of Montana (State)-mandated fees, were excluded from the analysis. BerryDunn employed an activity-based costing methodology that analyzes the major process steps required to provide services (e.g., application intake, plan review, permit issuance, and inspection) and the staff time and resources required to provide each service, issue each permit type, and conduct each inspection. This methodology relies on time estimates provided by Department SMEs, which BerryDunn then validated through the cost model’s built-in checkpoints. Furthermore, BerryDunn employed a standard cost accounting methodology to identify and assign expected costs for Department-provided permits and services. This methodology uses identified expected expenses—mainly from the Department’s adopted fiscal year (FY) 2022 and FY 2023 operating budget segments—and, in some instances, actual expenses incurred to determine full cost allocation. Finally, where detailed and/or accurate data was nonexistent, BerryDunn used institutional knowledge from Department SMEs to develop assumptions and proportional assignment of expenses based on weighted averages and other standard analytical techniques. Also included in the analysis are the identified and assigned revenues from FYs 2022 and 2023 associated with issuing permits, performing inspections, and delivering other services reflected on the Department’s master fee schedule, which Department SMEs also verified. BerryDunn prepared a CoS model to project the total cost of providing all services analyzed in this study for the select FYs. The total cost determination was based on the Department’s FY 2022 and FY 2023 adopted expenditure budgets, actual expenditures incurred, FY 2022 and FY 2023 reported actual revenue, key staff input and institutional knowledge, City financial document reviews, and the data discussed and reviewed during fact-finding sessions and project status meetings. BerryDunn reviewed findings with the Department on multiple occasions, identifying needed revisions and allowing the opportunity for the Department to give feedback and request revisions before approving final deliverables. BerryDunn also developed revenue and expense forecasts for FY 2024 – FY 2026. These forecast scenarios included estimated revenue generation based on current fee levels and also expected estimated revenue generation should the City adopt fee level increases. Furthermore, BerryDunn worked with Department SMEs to identify and project expected expenditures for FY 2024 – FY 2026. This was done in order to assess the estimated impact of increased expenditures across core service categories and to assess the level of cost recovery realized should the City choose to maintain current fee levels or increase them as proposed in Section 4.0. 124 Engineering Review Fee Study Report – Final | April 23, 2024 6 3.0 Transportation and Engineering: Technical Analysis This section of the report provides a general overview of the Department’s organizational structure, BerryDunn’s major technical findings, and BerryDunn’s projections based on those findings. 3.1 Department Overview The Department is responsible for providing a wide range of transportation, engineering, and inspection services to help protect the health and safety of residents, visitors, and commercial partners throughout the City. To help ensure the City is developed in a sustainable, well-designed, and prosperous way with a strategic development-friendly environment, the Department makes certain that all work performed throughout applicable areas of the City adheres to all federal, state, and local municipal code sections and health and safety provisions. Table 3.1.1 summarizes BerryDunn’s understanding of the Department’s structure and operations as currently organized. Table 3.1.1: Departmental Overview Function Function Description Department The Department has broad responsibilities, including providing transportation safety and engineering services, solid waste and recycling services, streets maintenance, and helping ensure a quality built environment through a capital improvement program. The Department strives to be responsive to the community and provide outstanding customer service in order to help realize the broader City vision centered around sustainable, strategic development and the promotion of economic development. Transportation Services The Department helps ensure realization of the City's goals to improve transportation system safety throughout the community and commits to prioritizing planning and implementing of appropriately designed roads, trails, sidewalks, bicycle facilities, and transit networks to help residents, visitors, and commercial partners move around the City in a safe and efficient manner. It does so by adhering to the goals and priorities outlined in the Bozeman SAFE Plan. Engineering Services The Department is responsible for permitting and inspecting construction activity in the public ROW. The City engineer and engineering review staff provide direct management of public works projects and technical assistance to all operating departments. In addition, engineering staff work with both private and public developments to help ensure compliance to City specification for constructing or replacing sidewalks, and issues commercial and residential encroachment permits and providing inspection services. Special Events The Department also reviews special event permit applications for events expected to require City services or may impact the right of way or may take place on City owned property. Technology The Department uses CentralSquare to monitor and track permits through the application, review, and approval process. 125 Engineering Review Fee Study Report – Final | April 23, 2024 7 3.2 Current Fees and Charges Structure The Department’s current fees and charges structure is divided into the following eight unique permit/service categories, which are all supported with administrative oversight and customer service elements: • Curb Cut / Driveway / Sidewalk • Street Cut • Sidewalk Encroachment and Exclusive Use • Commercial and Residential Encroachment • Film / Public Parade / Public Assembly • ROW Utility Encroachment (long-term) • Streets and Signs • Miscellaneous Permits and Services Table 3.2.1: Fees and Charges Structure Service Category Description Curb Cut / Driveway / Sidewalk Curb cut, driveway, and sidewalk services consist of administrative, site plan review, and inspection services related to the installation and/or adjustment of driveways and areas of sidewalk. Currently, the Department does not charge a fee for these services. Street Cut Street cut services consist of administrative, plan review, and inspection services related to work impacting public roadways. The Department currently charges a flat-rate base fee in conjunction with a variable pavement degradation fee based on total square footage of ROW impacted. Sidewalk Encroachment and Exclusive Use Sidewalk encroachment and exclusive use services consist of administrative, plan review, and inspection services related to work impacting sidewalk in the ROW. The Department currently charges a flat- rate base fee in conjunction with a variable fee based on land value and time frame of the encroachment. Film / Public Parade / Public Assembly Film, public parade, and public assembly permits are flat rate. ROW Utility Encroachment Permits (long-term) ROW utility encroachment services consist of administrative, plan review, and inspection services related to utility work impacting the ROW. Usually this involves the undergrounding (burying) of utility assets and infrastructure for which a long-term encroachment permit must be issued. Currently, the Department does not charge a fee for these services. Streets and Signs Streets and signs services consist of administrative, plan review, and inspection services related to sign installation or changes. Additionally, the Department provides signage services for street closures and other types of 126 Engineering Review Fee Study Report – Final | April 23, 2024 8 Service Category Description events. Currently, the Department does not charge a fee for these services. Miscellaneous Permits and Services Miscellaneous permits and services consist of alcohol open container permits and flood plain review permits. Fee for these permits and services are flat rate. Charging Methodology The Department uses a mix of flat fees and simple multipliers to calculate fees and charges for services, but it does not use any overtly complex calculations—or calculation methodologies substantially different from industry peers—to assess fees for services. The exception is the variable portion of the encroachment and\/or exclusive use permit for which land values and time frames are utilized in the calculation. 3.3 Transportation and Engineering Financial Analysis BerryDunn reviewed all Department services delivered in FY 2022 and determined that the full cost of providing all reviews, permits, and inspections was $153,222. The identified and assigned revenue to specific service functions was $82,650. BerryDunn calculated the percentage of costs recovered by way of current fees and charges, finding that the Department recovered an estimated 53.9% of the cost to provide applicable permits, inspections, and services in FY 2022. BerryDunn reviewed all Department services delivered in FY 2023 and determined that the full cost of providing all reviews, permits, and inspections was $232,579. The identified and assigned revenue to specific service functions was $68,570. BerryDunn calculated the percentage of costs recovered by way of current fees and charges, finding that the Department recovered an estimated 29.5% of the cost to provide applicable permits, inspections, and services in FY 2023. The slightly lower level of revenue generation realized in FY 2023 is generally attributable to decreased levels of construction activity permitting and inspection throughout the City. Additionally, the Department realized increased expenditures related to growth in customer demand for some core services and permits and increased operational expenses related to personnel expense and services and supplies expense. Table 3.3.1: FY 2022 and FY 2023 Financial Analysis Summary FY Assigned Revenue Assigned Expense Net Cost Recovery 2022 (Actual) $82,650 $153,222 ($70,572) 53.9% 2023 (Actual) $68,570 $232,579 ($164.009) 29.5% Though revenue generation declined slightly across the FYs analyzed, likely due to decreased construction activity trends across the City, expenses did increase significantly in FY 2023. The Department has experienced increased actual expenditures related to personnel, services, and supplies, and the cost associated with continuing to deliver high-quality, efficient services and substantial demand. 127 Engineering Review Fee Study Report – Final | April 23, 2024 9 BerryDunn projected revenue and expenses associated with Department service delivery for FYs 2024, 2025, and 2026. The projected average full cost to provide all Department permits and services is expected to be $386,334 annually. The projected average revenue estimated across all fees and charges structures is projected to be $77,101 annually at current fee levels. BerryDunn calculated the percentage of costs recovered by way of current rates and charges, finding that the Department is projected to recover an estimated of 20.0% of the cost to provide services between FY 2024 and FY 2026 at current fee levels. Table 3.3.2 outlines actual, projected, and estimated revenue and expense at current fee levels. Table 3.3.2: Cost Recovery at Current Fee Levels, FY 2022 – FY 2026 FY Assigned Revenue Assigned Expense Net Cost Recovery 2022 (Actual) $82,650 $153,222 ($70,572) 53.9% 2023 (Actual) $68,570 $232,579 ($164.009) 29.5% 2024 (Projected) $75,210 $370,111 ($294,901) 20.3% 2025 (Projected) $77,466 $388,616 ($311,150) 19.9% 2026 (Projected) $78,628 $400,275 ($321,647) 19.6% The analysis shows that, even with no rate increases, revenue is projected to increase slightly year over year given current construction and development trends throughout the City. However, despite some projected gains in some revenue categories, expenditures are estimated to outpace revenues year over year, with the most significant expense indicators pointing to the continuation of this trend. Left unchecked, these trends might have consequential effects on the Department's ability to continue delivering services at current levels. For these reasons, BerryDunn recommends the City consider adjusting select fees in FY 2025 (specific adjustments are outlined in Section 4.0). By doing so, increased fees will generate additional revenue to offset increased expenditures and help to fund enhanced service delivery functions and enhance service delivery quality and timeliness. Table 3.3.3 outlines the revenue and expense scenarios estimated for transportation and engineering permits and services between FY 2025 and FY 2026, with the proposed fee increases and fee additions outlined in Section 4.0. Table 3.3.3: Estimated Cost Recovery at Increased Fee Levels, FY 2025 – FY 2026 FY Est. Revenue Est. Expense Net Cost Recovery 2025 (Estimated) $250,525 $388,616 ($138,091) 64.5% 2026 (Estimated) $297,194 $400,275 ($103,081) 74.2% BerryDunn recommends the City consider adjustments identified in Section 4.0. Even upon adoption of the proposed adjustments, the Department will have an opportunity to assess revenue generation along with revenue requirements annually and make additional fee adjustments if warranted. Increased revenue generation will allow the Department to return to a 128 Engineering Review Fee Study Report – Final | April 23, 2024 10 cost recovery level more closely aligned with historical performance related to transportation and engineering services. Furthermore, increased revenue generation will help cover a larger portion of the annual full cost projected to operate the Department and deliver transportation and engineering services. BerryDunn recommends performing a basic CoS analysis annually as part of the budget development process and consider additional fee adjustments as warranted. While overall cost recovery baselines and targets might seem low, it is not indicative of poor financial management. To that end, several factors should be considered when assessing the current and estimated future cost recovery levels. The Department has made no major fee adjustments or fee additions related to core services for several years. Furthermore, it has experienced increased expenditures related to growth in customer demand for some permits and services, and is expected to realize increased personnel and operations expenses through FY 2026. Moreover, because of the unique nature of Department services, revenues are cyclical, tend to fluctuate annually, and depend on macroeconomic activity, making forecasting increased revenue generation difficult for certain service segments. Nonetheless, it is useful for leadership and staff to understand which core service categories are expected to be major revenue and expense drivers. BerryDunn estimates the Department will have an overall cost recovery ceiling of around 52.0% to 75.0 % specific to fees and charges revenue through FY 2026 related to the current transportation and engineering services environment. Without major operational adjustments altering the service delivery structure, sustained expenditure reductions, year-over-year major fee increases, or without major macroeconomic impacts and/or development activity impacts, the current fees and charges environment is not currently expansive enough to generate revenue levels sufficient to consistently sustain Department operations at cost recovery levels greater than 75.0%. This is not a negative outcome. Rather, this allows for policy decisions to be made regarding increased revenue generation for core service segments in the future if so desired. The Department should, however, focus on the core revenue-generating segments of its service delivery and consider adjustments to select service fees and charges to help ensure Department revenue requirements are being met and the appropriate portion of costs are being recovered. Figure 3.3.2, below, depicts the Department’s core service areas and corresponding estimated revenue contributions FY 2024 – FY 2026. 129 Engineering Review Fee Study Report – Final | April 23, 2024 11 Figure 3.3.2: Estimated Core Service Area Percentage of Total Revenue Generation, FY 2024 – FY 2026 It will be helpful for the Department to focus on core revenue-generating services to help meet revenue requirements and cost recovery goals and targets. Department staff should also take care to monitor local indicators related to construction and development demand and trends. To help ensure Department services continue at current levels and that increased service levels can be achieved to accommodate increased customer demand, select fees will most likely need to be systematically increased in future FYs to help offset increased expenditures. 3.4 Summary of Financial Analysis Findings Table 3.4.1 summarizes the key financial findings of BerryDunn’s analysis of the Department’s transportation and engineering current fees and charges environment. Table 3.4.1: Summary of Financial Analysis Findings Summary of Findings Category Findings Cost Recovery – FY 2022 BerryDunn identified and assigned $82,650 of revenue and $153,222 of identified expense to the fee-applicable permits and services analyzed for this study. The Department’s cost recovery rate for all FY 2022 transportation and engineering permits and services analyzed was 53.9%. Cost Recovery – FY 2023 BerryDunn identified and assigned $68,570 of revenue and $232,579 of identified expense to the fee-applicable permits and services analyzed for this study. The Department’s cost recovery rate for all FY 2023 transportation and engineering permits and services analyzed was 29.5%. Average Cost Recovery at Current Fee Levels – FY 2024 BerryDunn identified and assigned an average $77,101 of projected revenue and $386,334 of projected expense to the fee-applicable 130 Engineering Review Fee Study Report – Final | April 23, 2024 12 Summary of Findings Category Findings Through FY 2026 (Estimated) permits and services analyzed for this study. The Department’s estimated cost recovery rate for all transportation and engineering permits and services to be delivered from FY 2024 through FY 2026 is projected to be 20% at current fee levels. Average Cost Recovery With Fee Increases – FY 2025 Through FY 2026 (Estimated) BerryDunn identified and assigned an average $273,859 of projected revenue and $394,445 of projected expense to the fee-applicable permits and services analyzed for this study. The Department’s estimated cost recovery rate for all transportation and engineering permits and services to be delivered from FY 2025 through FY 2026 is projected to be 69.4% at increased fee levels. Cost Recovery Increase BerryDunn estimates that the Department might realize a 3% to 5% increase in the cost recovery rate for each additional $15,000 of revenue generated annually (FY 2024 baseline). Fee Increases BerryDunn estimates that fee increases, as recommended in Section 4.0, will be needed to satisfy revenue requirements and maintain increases in overall cost recovery through FY 2026. 131 Engineering Review Fee Study Report – Final | April 23, 2024 13 4.0 Recommendations and Considerations This section outlines various recommendations and considerations BerryDunn has provided based on the financial analysis, current fees and charges environment analysis, and meetings with staff and stakeholders to discuss Department and citywide priorities. 4.1 Fee Updates BerryDunn recommends the Department undertake a basic CoS analysis annually. The Department should also consider conducting a fee study every three to five years; or when the Department experiences a significant change in demand for services, organizational structure, or key business processes; or when it identifies budgetary issues. In the absence of major macroeconomic or organizational shifts, BerryDunn recommends the Department wait until the close of FY 2026 to consider additional fee adjustments other than those proposed below. 4.2 Fee Level Recommendations BerryDunn recommends the City consider making the proposed structural changes and fee level adjustments to the select master fee schedule segments below. The proposed changes are projected to increase revenue generation and cost recovery levels for FY 2024 through FY 2026. 4.2.1 Alcohol Open Container, Film Permits, Parade / Public Assembly The fees for alcohol open container, filming and photography, and parade / public assembly permits and services are recommended as follows. Table 4.2.1.1: Alcohol, Film, and Public Assembly Permits and Services – Current Permit/Service Category Base Fee – Current Variable Fee – Current Alcohol Open Container: Alcohol Open Container Permit (public works only) $25 $100 (if street closure is required) Film Permits: Film / Photography Permit $30 N/A Parade Public Assembly: Parade / Public Assembly Permit (public works only) $35 $250 (if street closure is required) Table 4.2.1.2: Alcohol, Film, and Public Assembly Permits and Services – Proposed Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Alcohol Open Container: 132 Engineering Review Fee Study Report – Final | April 23, 2024 14 Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Alcohol Open Container Permit (public works only) $50 $140 (if street closure is required) Film Permits: Film / Photography Permit $45 N/A Parade Public Assembly: Parade / Public Assembly Permit (public works only) $50 $350 (if street closure is required) BerryDunn estimates, on average, an additional $15,000 – $25,000 of revenue could be generated annually between FY 2025 and FY 2026 should the fee levels be adopted as proposed. 4.2.2 Street Cut, Curb Cut, Driveway, and Sidewalk The fees for street cut, curb cut, driveway, and sidewalk permits and services are recommended as follows. Table 4.2.2.1: Street Cut, Curb Cut, Driveway, and Sidewalk – Current Permit/Service Category Base Fee – Current Variable Fee – Current Curb Cut / Driveway / Sidewalk Permits: Curb Cut / Driveway / Sidewalk Permit $0 $0 Street Cut Permits: Street Cut Permit $50 Plus (total square feet of impacted area) X ($0.45) Table 4.2.2.2: Street Cut, Curb Cut, Driveway, and Sidewalk – Proposed Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Curb Cut / Driveway / Sidewalk Permits: Curb Cut / Driveway / Sidewalk Permit $175 $180 X 50 s.f. segments or fraction there of Street Cut Permits: Street Cut Permit $250 Plus (total square feet of impacted area) X ($0.75) BerryDunn estimates, on average, an additional $71,000 – $76,000 of revenue could be generated annually between FY 2025 and FY 2026 should the fee levels be adopted as 133 Engineering Review Fee Study Report – Final | April 23, 2024 15 proposed. 4.2.3 Encroachments and Exclusive Use The fees for encroachments and exclusive use permits and services are recommended as follows. Table 4.2.3.1: Encroachments and Exclusive Use Permits and Services – Current Permit/Service Category Base Fee – Current Variable Fee – Current Encroachment and Exclusive Use Permits: Encroachment and Exclusive Use Permit $50 Additional fee is calculated by multiplying the square-foot area of the right of way encumbered by the exclusive use, by the total final square-foot land value of the adjacent property (as determined in the most recent appraisal by the MT Dept of Revenue for ad valorem property taxation purposes), multiplied by the whole month percentage of the calendar year the exclusive use is occurring, multiplied by a factor of 5%. Construction Encroachment: Commercial Encroachment Permit $0 $0 Residential Encroachment Permit $0 $0 Table 4.2.3.2: Encroachments and Exclusive Use Permits and Services – Proposed Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Encroachment and Exclusive Use Permits: Encroachment and Exclusive Use Permit $100 Additional fee is calculated by multiplying the square-foot area of the right of way encumbered by the exclusive use, by the total final square-foot land value of the adjacent property (as determined in the most recent appraisal by the MT Dept of Revenue for ad valorem property taxation purposes), multiplied by the whole month percentage of the calendar year the 134 Engineering Review Fee Study Report – Final | April 23, 2024 16 Permit/Service Category Base Fee – Proposed Variable Fee – Proposed exclusive use is occurring, multiplied by a factor of 5%.) Construction Encroachment: Commercial Encroachment Permit $320 $80 X the number of weeks more than two weeks Residential Encroachment Permit $275 $50 X the number of weeks more than two weeks BerryDunn estimates, on average, an additional $60,000 – $65,000 of revenue could be generated annually between FY 2024 and FY 2026 should the fee levels be adopted as proposed. 4.2.4 Public Right-of-Way Utility Occupancy The fees for public ROW utility occupancy permits and services are recommended as follows Table 4.2.4.1: Public ROW Utility Occupancy Permits and Services – Current Permit/Service Category Base Fee – Current Variable Fee – Current Public ROW Utility Occupancy Permit: Public ROW Utility Occupancy Permit $0 $0 Table 4.2.4.2: Public ROW Utility Occupancy Permits and Services – Proposed Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Public ROW Utility Occupancy Permit: Public ROW Utility Occupancy Permit $425 $80 X the number of 25 linear foot increments or fraction thereof BerryDunn estimates, on average, an additional $27,000 – $40,000 of revenue could be generated annually between FY 2024 and FY 2026 should the fee levels be adopted as proposed. The proposed fees are new fees for existing services. 4.2.5 Streets, Sign, and Other The fees for streets, signs, and other types of permits and services are recommended as follows. Table 4.2.5.1: Streets, Signs, and Other Permits and Services – Current 135 Engineering Review Fee Study Report – Final | April 23, 2024 17 Permit/Service Category Base Fee – Current Variable Fee – Current Streets and Signs: Street Closures - Events $0 $0 Sign Operations $0 $0 Sign Installation or Change Permit $0 $0 Other Permits: Flood Plain Permit $100 N/A Fire Flow Permit $0 N/A Table 4.2.5.2: Streets, Signs, and Other Permits and Services – Proposed Permit/Service Category Base Fee – Proposed Variable Fee – Proposed Streets and Signs: Street Closures - Events $75 $0 Sign Operations $75 $0 Sign Installation or Change Permit $150 $0 Other Permits: Flood Plain Permit $150 N/A Fire Flow Permit $100 N/A BerryDunn estimates, on average, an additional $5,000 – $8,000 of revenue could be generated annually between FY 2025 and FY 2026 should the fee levels be adopted as proposed. Though there is no way to know for certain what construction and development activity will look like in the future throughout the City, the analyses and projections are based on historical service performance and known future expense impacts as well as historical levels of service delivered and permits issued. For these reasons, Department staff should monitor local indicators related to construction and development trends and building permit activity. Staff should track, in detail, the number of applications reviewed, permits issued, and inspections conducted for the most common transportation and engineering services provided. Staff should also assess additional fee adjustments for specific services, as needed, on a FY basis to determine adjustments’ potential impact on revenue generation and to offset applicable costs. The recommended fee increases and subsequent projected revenue gains represent an ambitious two-year plan to increase revenue generation in order to help keep pace with known expense increases expected to be realized in future FYs. In doing so, BerryDunn projects that an additional $170,000 - $185,000 of revenue could be realized annually, helping increase overall cost recovery levels by 45% – 60% through FY 2026. The projections and estimates are based on the following volume assumptions provided by City staff in table 4.2.5.3. Should annual volume estimates be missed (or exceeded) due to changes in development activity 136 Engineering Review Fee Study Report – Final | April 23, 2024 18 revenue estimates as outlined in this report may not reflect actual revenue generation levels and cost recovery targets may not be met. Furthermore, should fee increases as proposed lead to a decline in demand, revenue estimates and projections may also be impacted and cost recovery targets may not be met. Table 4.2.5.3: Permit and Service Volume Estimates Permit / Service FY 2025 Volume Estimate FY 2026 Volume Estimate Alcohol-Open Container 50 60 Curb Cut/Driveway/Sidewalk (NEW) 25 35 Street Cut 160 160 Downtown Sidewalk Encroachment/Exclusive Use 79 89 Construction Encroachment (Commercial & Residential) (NEW) 75 85 Film 20 20 Parade-Public Assembly 85 100 Public Right-of-Way Utility Occupancy (Permanent) (NEW) 60 85 Streets and Signs (NEW) 13 15 Other Permits (NEW) 5 5 Lane Closure and/or Traffic Control Encroachment (NEW) 5 5 4.3 Summary of Recommendations and Considerations Table 4.3.1: Summary of Recommendations and Considerations Summary of Recommendations Category Recommendation 1 Fee Schedule Updates BerryDunn recommends the Department consider the adjustment of select alcohol open container, film permits, parade / public assembly permits and services outlined in Section 4.2.1. In doing so, BerryDunn estimates the Department might realize an additional $15,000 – $25,000 of revenue FY 2025 – FY 2026. 2 Fee Schedule Updates BerryDunn recommends the Department consider the adjustment of select street cut, curb cut, driveway, and sidewalk fees for permits and services outlined in Section 4.2.2. In doing so, BerryDunn estimates the Department might realize an 137 Engineering Review Fee Study Report – Final | April 23, 2024 19 Summary of Recommendations Category Recommendation additional $71,000 - $76,000 of revenue FY 2025 – FY 2026. 3 Fee Schedule Updates BerryDunn recommends the Department consider the adjustment of select encroachments and exclusive use fees for permits and services outlined in Section 4.2.3. In doing so, BerryDunn estimates the Department might realize an additional $60,000 - $65,000 of revenue FY 2025 – FY 2026. 4 Fee Schedule Updates BerryDunn recommends the Department consider the adjustment of select public ROW utility occupancy fees for permits and services outlined in Section 4.2.4. In doing so, BerryDunn estimates the Department might realize an additional $27,000 - $40,000 of revenue FY 2025 – FY 2026. 5 Fee Schedule Updates BerryDunn recommends the Department consider the adjustment of select streets, signs, and other fees for permits and services outlined in Section 4.2.5. In doing so, BerryDunn estimates the Department might realize an additional $5,000 – $8,000 of revenue FY 2025 – FY 2026. 6 Fee Schedule Updates BerryDunn recommends the Department monitor cost recovery levels annually, which would guide staff on setting fee levels aligned with desired cost recovery targets and maintaining revenue requirements. BerryDunn recommends the Department wait until the close of FY 2026 to consider any additional fee adjustments other than those proposed in Section 4.2. 7 Cost Recovery BerryDunn recommends monitoring targeted ranges of cost recovery annually related to specific permit and service categories. BerryDunn also recommends considering adjusting fees accordingly when cost recovery levels begin to significantly impact budget and/or funding levels needed to sustain operations and service delivery. 8 Technology The Department should use its current electronic permitting system, CentralSquare, to the greatest extent possible to allow detailed tracking and analysis of revenues and annual volumes per permit and service type. Capturing this detail and incorporating it into fee level assessment will enable a more accurate calculation of fee levels. 9 Fee Monitoring The Department should annually review all fee levels, once adopted, and consider adjustments in accordance with budgetary requirements, staff effort, and permit and service volume. The Department should undertake a thorough fee review every two to three years, when major personnel or budgetary adjustments are made, or when macroeconomic events occur. 138 Engineering Review Fee Study Report – Final | April 23, 2024 20 5.0 CoS of Service Model Overview This section of the report outlines the technical and financial analysis tabs BerryDunn constructed to develop the cost model used for this study. 5.1 Cost Model Framework Table 5.1.1 summarizes the format, technical construct, and content of the cost model developed for the Department. This includes a summary description of each tab in the model. Table 5.1.1: Cost Model Framework and Organization Cost Model Framework Model Section/Tab Description 1 Cover Tab Contains the title of the study, Department project manager contact information, and BerryDunn contact information. 2 DPWENG Dashboard Tab Contains a high-level overview of all service categories with a comparison of assigned revenue, as well as current percentage of total revenue, projected revenue, and cost recovery levels. 3 DPWENG Worksheet Tab Contains all revenue and expense data, as well as cost recovery percentage by service category; contains functionality to develop forecast scenarios and adjust cost recovery goals by service category to project and assess fee levels. 4 DPWENG Services Contains a more detailed listing of specific transportation and engineering permits and services and associated fees 5 DPWENG Expense Tab Contains personnel and non-personnel expense by core permit and/or service category. 6 DPWENG Employee (ee) Alloc Tab Contains full-time personnel annual time assignments and expense forecasting functionality by specific transportation and engineering permit and/or service category. 7 DPWENG Employee (ee) Tab Contains the list of all full-time personnel assigned to the study, annual salary by position, annual benefit expense by position, and various hourly rates calculated by position. 8 Revenues Reflects the actual reported revenue for FY 2022 and FY 2023 and forecasted revenue FY 2024 – FY 2026. 9 Expenses Reflects the actual incurred expense for FY 2022 and FY 2023 and forecasted expense FY 2024 – FY 2026, including personnel, operating, and applicable additional expenses. 139 Engineering Review Fee Study Report – Final | April 23, 2024 21 Appendix A: Cost Model The CoS model developed for the Department is attached as an MS Excel file. 140 Memorandum REPORT TO:City Commission FROM: Susana Montana, Senior Planner, Development Review Division Brian Krueger, Manager, Development Review Division Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT: Ordinance 2161, Provisional Adoption, Review and Consider Approval of a Zoning Text Amendment to Reduce the Minimum Rear Yard Setback for Lots Abutting Alleys in the Residential Emphasis Mixed Use (REMU) Districts Citywide; Application 24055 MEETING DATE:May 21, 2024 AGENDA ITEM TYPE:Community Development - Quasi-Judicial RECOMMENDATION: Consider the Motion: Approve Ordinance 2161 for the Zoning Text Amendment to Reduce the Minimum Rear Yard Setback for Lots Abutting Alleys in the Residential Emphasis Mixed Use (REMU) Districts Citywide; Application No. 24055 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: This Zone Text Amendment application was submitted by the Bridger Land Group, developers of the Blackwood Groves subdivision which lies within a Residential Emphasis Mixed Use (REMU) District. This is a request to amend the City’s Unified Development Code to reduce the rear yard setback for residential lots abutting an alley in REMU Districts. The rear setback would be reduced from ten (10) or fifteen (15) feet to six (6) feet. This amendment to Table 38.320.040 would apply to all residential lots whose rear yards abut an alley within REMU Districts citywide. However, as amended by the Community Development Board, acting as the Zoning Commission, the reduced setback would not apply to group housing facilities or apartment 141 buildings. The Community Development Board on May 6, 2024 considered this Ordinance and recommended approval, as amended. UNRESOLVED ISSUES:None. ALTERNATIVES:None suggested FISCAL EFFECTS: Fiscal effects are undetermined at this time but any development occurring as a result of this text amendment would increase property tax revenue to the City, along with increased costs to deliver municipal services to the property. Attachments: 24055 Ordinance 2161 CC Memo.pdf 24055 REMU alley rear setback CC staff rpt 05 10 24.pdf Applicant's Narrative.pdf Provisional Ordinance 24055 REMU rear yard setback CC 05 14 24.pdf Report compiled on: May 13, 2024 142 Commission Memorandum REPORT TO: Mayor and 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: Approve Provisional Ordinance No. 2161 amending Table 38.320.040 of the Bozeman Unified Development Code to reduce the rear yard setback to 6 feet for single- household, townhouse/rowhouse and two-to-four household dwellings on lots that abut alleys in the Residential Emphasis Mixed Use (REMU) Districts, citywide; Amended Application No. 24055. 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. MEETING DATE: May 21, 2024 AGENDA ITEM TYPE: Action—Legislative RECOMMENDATION: Provisionally adopt Ordinance No. 2161 amending Table 38.320.040 of the Bozeman Unified Development Code to reduce the rear yard setback to 6 feet for single- household, townhouse/rowhouse and two-to-four household dwellings on lots that abut alleys in the Residential Emphasis Mixed Use (REMU) Districts, citywide; Amended Application No. 24055. BACKGROUND: This Zone Text Amendment (ZTA) application was submitted by the Bridger Land Group, developers of the Blackwood Groves subdivision which lies within a Residential Emphasis Mixed Use (REMU) District. This is a request to amend Table 38.320.040 of the City’s Unified Development Code (UDC) to reduce the rear yard setback for residential lots abutting an alley in REMU Districts. The rear setback would be reduced from ten (10) or fifteen (15) feet to six (6) feet. This amendment would apply to all residential lots whose rear yards abut an alley within REMU Districts citywide. On May 6, 2024, the Community Development Board, acting as the Zoning Commission, recommended an amendment to the Applicant’s proposal which would limit the reduced setback to single-household, townhouse/rowhouse and two-to-four dwelling 143 buildings. Apartment buildings and group housing facilities would remain with a 10-foot rear alley setback. The ZTA which is the subject of this application reflects the amended Table 38.320.040 as recommended by the Community Development Board. UNRESOLVED ISSUES: Potential Commission preference for the Applicant’s original ZTA. ALTERNATIVES: 1. Deny the request based on findings of non-compliance with the applicable criteria contained within the staff report; 2. Approve the request; 3. Approve an amended version of the request; 4. Approve the Applicant’s original amendment to Table 38.320.040 with new findings of compliance with State Statute criteria for approval; or 5. Continue the public hearing on the application, with specific direction to staff to supply additional information or to address specific items. 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. Report compiled on: May 10, 2024 Links: The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715 or here or https://weblink.bozeman.net/WebLink/Browse.aspx?id=287867&dbid=0&repo=BOZEMAN. The CDB meeting recording of May 6, 2024 can be viewed here or https://bozeman.granicus.com/player/clip/2283?view_id=1&redirect=true Attachment: Staff report 144 Alley Rear Yard Setback Reduction in REMU Districts ZTA; 24055 Page 1 of 31 Staff Report for the Amended Reduced Alley Rear Yard Setback in REMU Districts Zone Text Amendment (ZTA), Application No. 24055. Public Hearing Date(s): Community Development Board acting in their capacity as the Zoning Commission held a public hearing on the proposal on May 6, 2024 at 6:00 P.M. in the City Hall Commission Room. The City Commission public hearing on this ZTA will be held on May 21, 2024 at 6:00 P.M. in the City Hall Commission Room. Project Description: A Zone Text Amendment (ZTA) to modify Table 38.320.040 of the City’s Unified Development Code (UDC) of the Bozeman Municipal Code (BMC) to reduce the rear yard setback for residential lots abutting an alley within a REMU (Residential Emphasis Mixed Use) District. The rear yard for single household dwellings, townhouses, rowhouses, rowhouse clusters and two- to four-household dwellings would be reduced from 10- or 15-feet to 6-feet for. The alley rear yard setback for group housing facilities and apartment buildings would remain at 10-feet. Project Location: The proposed revision to the UDC Table 38.320.040 would be applicable to any lot with rear alley access in all REMU Districts, city-wide. Staff Findings: The proposed CDB-amended Table 38.320.040 as a zoning text amendment meets State Statute Section 76-2-304 Montana Code Annotated (MCA) and Section 38.260.010 of the Bozeman Municipal Code (BMC) ZTA criteria for approval as described below in Section 3. Community Development Board Motion: Having reviewed and considered the application materials, staff report, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 24055 and recommend approval of Ordinance 2161 amending Table 38.320.040 of the UDC text to reduce rear yard setbacks for residential lots abutting alleys in REMU Districts with the exception that group housing and apartment housing types of Table 38.320.040 retain the existing minimum 10-feet rear alley setback standard. This Motion was approved 6 to 1 by the Board. City Commission Recommended Motion: Having reviewed and considered the staff report, draft ordinance, public comment, recommendation from the Community Development Board, and all the information presented, I hereby adopt the findings presented in the staff report for application 24055 and move to provisionally adopt Ordinance 2161. Report Date: May 10, 2024 Staff Contact: Susana Montana, Senior Planner Agenda Item Type: Action – Legislative 145 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 2 of 31 EXECUTIVE SUMMARY This report is based on the application materials, Community Development Board (CDB) discussions of the May 6, 2024 public meeting, the CBD recommended amendment to the Applicant’s ZTA, and staff evaluation and findings of the CDB-amended version of the Applicant’s proposed zoning text amendment. There was no written or oral public comment received to date. The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715 or here or https://weblink.bozeman.net/WebLink/Browse.aspx?id=287867&dbid=0&repo=BOZEMAN. The CDB meeting recording of May 6, 2024 can be viewed here or https://bozeman.granicus.com/player/clip/2283?view_id=1&redirect=true The staff evaluation of the State Statute criteria for approval of a zoning regulation amendment presented herein is based on the amended version of the Applicant’s original proposal to reduce the rear yard setback for all types of structures, including apartments and group housing, to 6-feet. The Applicant’s original proposal was recommended by the Community Development Board (CDB) on May 6th to be amended as described below on pages 5 to 9 and shown in Figure 2. This staff report evaluates and presents findings on the CDB-amended ZTA. Public Meetings The City Commission will hold a public hearing on the CBD-amended zone text amendment on May 21, 2024. The meeting will begin at 6 P.M. in the Commission Room at City Hall, 121 N. Rouse Ave, Bozeman, Montana. Remote electronic participation may also be available. Instructions for participating remotely will be included on the meeting agenda. The agenda is available in the Events portion of the City’s website at https://www.bozeman.net/home at least 48 hours prior to the meeting. At the City Commission’s public hearing the City Commission may act to approve, modify, or reject the proposal, as Provisional Ordinance No. 2161, or may continue the public hearing to another date. The City Commission may revise the proposed amendment referred in this staff report during the public hearing process. 146 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 3 of 31 Alternatives 1. Deny the request based on findings of non-compliance with the applicable criteria contained within the staff report; 2. Approve the request; 3. Approve an amended version of the request; 4. Approve the Applicant’s original amendment to Table 38.320.040 with new findings of compliance with State Statute criteria for approval; or 5. Continue the public hearing on the application, with specific direction to staff to supply additional information or to address specific items. Potential Unresolved Issues The Applicant’s original proposed Zoning Text Amendment (ZTA) can be found as Table 38.320.040 in Figure 1 on page 4 below. The Applicant expressed in the May 6th public hearing that he had no intention or desire to reduce the rear yard setback for apartments or group housing to 6-feet, rather than the current 10-feet. Therefore, the CDB-recommended amended version of Table 38.320.040 is deemed to be the current ZTA application and is herein evaluated against Montana Code Annotated (MCA) Statute and Bozeman Unified Development Code (UDC) criteria for approval of a text amendment. Project Summary This Zone Text Amendment (ZTA) application was submitted by the Bridger Land Group, developers of the Blackwood Groves subdivision which lies within a Residential Emphasis Mixed Use (REMU) District. This is a request to amend the City’s Unified Development Code (UDC) to reduce the rear yard setback for residential lots abutting an alley in REMU Districts citywide. The rear setback would be reduced from 10- or 15- feet to 6- feet as shown in below in Figure 1. 147 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 4 of 31 Figure 1: Applicant’s original application. Amendments shown in red underlined text. Standard Small-lot single- household Single- household Townhouse/ rowhouse townhouse/ rowhouse cluster1 Two to four household dwellings, group living, apartments Mixed use (residential over commercial) Non- residential Minimum-Maximum Setbacks (feet) (38.320.020.E) (where only one number is shown in the column, there is no "maximum" setback) Front Setback (minimum and maximum) 10-15 10-15 10-15 10-15 Note7 Note8 Setback to an individual garage oriented to the street 2011 2011 2011 — — — Rear Setback 10 15 10 10 — — Rear Setback Adjacent to an Alley 6 6 6 6 __ __ Side Setback 59 59 510 5 — — Garages and Special Parking Standards Residential garages Note12 Note12 Note12 Note12 Note12 — Special Parking Standards — — — Note13 Note6,13,14 Note6,13,1 4 Notes: [Notes 1 through 14 are unchanged.] 148 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 5 of 31 The REMU zoning standards were first created in 2011 by Ordinance 1802. The minimum rear yard setback in the REMU District was established at 10-feet for small, single-household lots [less than 4,000 square feet (sf) in size]; at 15-feet for single-household lots at or greater than 4,000 sf in size; and at 10-feet for all other housing type lots (townhouse/rowhouse, two- to four-household dwellings, group living and apartments). The Applicant seeks to maximize the footprint of buildings on alley-loaded lots in the REMU Districts, particularly for single-household dwellings with detached or attached alley-loaded garages, by reducing the rear setback to from 10- or 15-feet to 6-feet. SECTION 1 –BOARD DISCUSSION AND RECOMMENDATIONS The Community Development Board, acting in their capacity as the Zoning Commission, held a public hearing on this text amendment on May 6, 2024. During the meeting, Community Development staff Susana Montana provided an overview of the Applicant’s proposed ZTA and presented a summary of how the proposal meets applicable MCA and UDC statute criteria for evaluating and approving zoning regulation amendments. This evaluation of the statute criteria are detailed below in Section 3 on pages 17 to 25 of this report. There was no written or oral public comment on the proposal for the Board to consider at this meeting. The Applicant made a detailed presentation of how the reduced rear yard alley setback would meet the MCA and UDC criteria and would address relevant City Growth Policies. The Applicant stated that he agreed with staff findings and recommendation for approval. Following the staff and Applicant’s presentations, no public comment, Board Member Egnatz made a Motion and Board Member Delmue seconded the Motion to begin the Board discussion process. Questions of staff, comments and discussions from Board Members include the following: Topic: Public health, public safety, and general welfare Public Safety MCA Criteria B, C and F As noted in Section 3 below on page 17, a zoning text amendment (ZTA) must address state adopted criteria. Staff has grouped discussion items of the Community Development Board according to the criteria. Criterion B and C are mandatory criteria for approval of a zoning text amendment. Board Members inquired as to how the reduced building setback along an alley would address Criterion B—securing the community’s safety from fire and other dangers, and Criterion C--promoting the public health, safety and general welfare. Board Member Egnatz stated that he disagreed with the staff finding of Criterion B and C, that the reduced setback “would dissuade motorists from parking within a setback in front of an alley accessed garage, resulting in blocking passage of other 149 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 6 of 31 travelers along the alleyway, including emergency service vehicles. Thus, the proposed ZTA would tend to promote or advance public health, safety and general welfare as noted in the City’s Community Plan and in Section 38.100.040 purpose of the UDC” [page 20 below] and “Neighborhoods with more blocks with alleyways would offer pedestrians and cyclists greater choices for travel throughout the neighborhood with less traffic than through the abutting streets. This would have a marginal effect on motorized transportation systems in REMU neighborhoods to the extent that induces developers to provide more blocks with alleys. Blocks with alleys are expected to facilitate safer pedestrian and bicycle travel off of busier streets” [page 21 below]. Board Members asked for “hard metrics” that demonstrate that blocks with vehicle access to lots from alleys would induce pedestrians and cyclists to travel the alleys rather than along the busier street fronting the lots and, therefore, would have a safer travel experience than traveling along the street frontage. They wanted to know potential negative effects of the reduced setback along the alley regarding dangers from pedestrian/bicycle/vehicle conflicts. During the meeting, staff did not have this pedestrian/vehicle collision data from City records. After the meeting, Community Development staff asked Fire Chief Josh Waldo and Deputy Chief of the Police Department (PD) Andy Knight if they have records of such events. Available data showed City had a citywide average of 9.8 pedestrian/vehicle collisions per year reported over the 2018-2023 period. The collision records for do not detail with or without blocks with alleys. The finding by staff that the ZTA meets Criteria A, B and C is based on staff observations and anecdotal reports given to staff over recent years. Whether or not a reduced setback of 6-feet would positively address Criteria B, securing the community’s safety from pedestrian/vehicle conflict dangers, and Criteria C, securing the public health, safety and general welfare, by reducing pedestrian/vehicle conflicts along the street frontage of blocks with alleys is not verifiable with collision records. Scale and Massing and Light and Air of Criterion E The proposed amendment allows the principal building to be at the 6-foot setback rather than the current allowance for only an accessory building to be at the 6-foot setback. Board Members expressed concern that a reduced setback from 10- or 15-feet to 6-feet along the alley for apartment buildings that are permitted to be five stories in height could have a negative impact or result for the specific block and surrounding neighborhood. Board Members stated that a 6-foot rear setback for 50- or 60-feet tall apartment buildings along a 20-foot wide alley would likely result in a scale and massing that would be dark and overwhelming to the human scale, particularly if both sides of the alley had 5-story buildings built to the 6-foot setback line. This may produce a visual “canyon effect” along the alley which would have a negative impact on providing adequate light and air to the lots along the subject block. Board Members wanted to differentiate the smaller (35 to 44 feet tall) single-household, townhouse, rowhouse or two-to-four dwelling structures along the alley from the up to 5-story multi-family/apartment structures to avoid this canyon effect. 150 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 7 of 31 Since the ZTA Applicant testified that he did not specifically intend to reduce the rear setback for group living or apartment buildings, it was recommended unanimously by Board Members that group living facilities and apartment buildings be removed from the reduced setback Table 38.320.040 and, instead, the table to be amended to have those housing types retain the 10-feet minimum setback. Table 38.320.040 would be amended to add a column for the group housing and apartment residential uses and the amended table would establish their setbacks at 10 feet as is shown in Figure 2. With these changes, the Board opined that the ZTA would meet Criterion E—provide for the reasonable provision of adequate light and air to the affected community. Five feet rear alley setback versus a six feet setback Board Members discussed whether this reduced rear alley setback ZTA amendment should be included in the proposed citywide UDC amendment, referred to as the UDC update. The September 7, 2023 Draft ReCode proposal recommends a 5-foot rear setback for all housing types in the REMU Districts. The ZTA Applicant was asked by Board Members why he did not propose a 5-foot rear alley setback instead of the 6-foot rear setback for lots with alley access. The Applicant responded: (1) He did not want to wait for the UDC update process to conclude because they have a block with an alley that is designed with single-household dwellings with an attached garage accessed from the alley with a 6-foot setback that is ready for development now; (2) for this specific ZTA application he wanted to request just minor changes to the UDC to accomplish their development objectives for their REMU block and the Applicant believes the 6- feet rear alley setback would be a minimal change to Table 38.360.040; and (3) the Applicant also intended to amend Table 38.320.040 to be consistent with other sections of the existing UDC such as the current rear yard setbacks for detached accessory structures found in Section 38.360.030.I which requires a minimum 6-foot rear yard setback except a 20 foot setback is required when parking is provided between the structure and rear property line (“stacked” parking in a driveway). Public Benefits of this ZTA Board Members indicated that all zone text amendments should provide a public benefit in order to qualify for approval. Board Members asked staff to identify the public benefits of the proposed ZTA. Staff responded that the REMU District’s intent and purpose is to provide a variety of housing types, along with a mixture of neighborhood-serving commercial uses. The REMU District seeks to (1) incorporate a wider range of housing types; and (2) provide flexibility in the 151 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 8 of 31 placement and design of new developments and redevelopment to anticipate changes in the marketplace. Blocks with alleys within REMU subdivisions can accommodate smaller lots which could result in more affordable lots and lower priced dwellings with attached garages accessed from the alley. Facilitating smaller lots and homes and a mix of housing types in the REMU Districts citywide would be the principal public benefit of the reduced rear alley setback as amended by the Board. As noted in the staff evaluation of Criterion B and F on pages 20 and 22, the rear setbacks in REMU Districts are allowed to be parking spaces but only if they meet required dimensional standards in 38.540.020. The 15- foot, 10-foot or 6-foot setbacks cannot accommodate a parked vehicle along the standard 20-foot wide alley as vehicles are typically 18- to 24-feet in length. The rear alley setback to access a garage, carport or surface parking of a lot located along an alley can only accommodate a short “pause” for a motorist awaiting the garage door to fully open. Public Comment The Board Chair asked if there was any public comment provided before the meeting or was being offered at the hearing in person or on-line. None was offered Post-Discussion Board Action After considering the Applicant’s proposed ZTA, the staff report, the staff presentation, the Applicant’s presentation, and their own Discussion, the Board voted to amend the proposed ZTA. The maker of the original Motion, Mr. Egnatz, made a Motion to amend the original Motion to amend Table 38.320.040 separating out the group housing and apartment housing types into a new column and retaining the 10-foot rear setback for those structures in the REMU District. The Board voted 6 to 1 to approve the amended Motion presented in the title block of this report. The Board forwards its recommendation to the City Commission on the zoning text amendment, as amended and shown below in Figure 2, and as described below. The full video of the May 6, 2024, meeting may be found in the Laserfiche Archive or here or https://bozeman.granicus.com/player/clip/2283?view_id=1&redirect=true 152 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 9 of 31 Figure 2: Community Development Board recommended Zoning Text Amendments are shown in red underlined text with the deleted Applicant’s text shown in red strike through text. A new column for group living and apartments has been added. Standard Small-lot single- house hold Single- house hold Townhouse/ rowhouse townhouse/ rowhouse cluster1 Two to four household dwellings, group living, apartments Group living, apartments Mixed use (residential over commercial) Non- residential Minimum-Maximum Setbacks (feet) (38.320.020.E) (where only one number is shown in the column, there is no "maximum" setback) Front Setback (minimum and maximum) 10- 15 10-15 10-15 10-15 10-15 Note7 Note8 Setback to an individual garage oriented to the street 2011 2011 2011 — -- — — Rear Setback 10 15 10 10 10 — — Rear Setback Adjacent to an Alley 6 6 6 6 10 __ __ Side Setback 59 59 510 5 5 — — Garages and Special Parking Standards Residential garages Note 12 Note12 Note12 Note12 Note 12 Note12 — Special Parking Standards — — — Note13 Note13 Note6,13,14 Note6,13, 14 153 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 10 of 31 The Board’s amendment to Table 38.320.040 would apply to all residential lots whose rear yards abut an alley within REMU Districts citywide. It would apply to all structures abutting the alley whether it be the primary (attached) structure or an accessory (detached) garage. TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 2 Unresolved Issues ..................................................................................................................... 3 Project Summary ....................................................................................................................... 3 Alternatives ............................................................................................................................... 3 SECTION 1 – BOARD DISCUSSION AND RECOMMENDATIONS ................................. 5 SECTION 2 – MAPS, TABLES AND FIGURES ................................................................. 11 SECTION 3 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS ..................... 17 SECTION 4 - PROTEST NOTICE FOR ZONING AMENDMENTS .................................. 26 APPENDIX A - BACKGROUND AND APPLICANT’S RATIONALE FOR THE ZONE TEXT AMENDMENT ........................................................................................................... 26 APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 30 APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 31 FISCAL EFFECTS ................................................................................................................. 31 . 154 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 11 of 31 SECTION 2 – MAPS, TABLES AND FIGURES Figure 3: City of Bozeman –The proposed amendment would apply to all current REMU Districts (in purple) and future REMU zoning districts citywide. Current REMU Districts can be found in the Community Developer Viewer via this link and by clicking on the zoning map layer found in the left side legend. 155 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 12 of 31 Figure 4: 2024 Cityside Map of REMU Districts in purple color. 156 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 13 of 31 Figure 5: Community Plan Future Land Use Map (FLUM). Tan color 157 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 14 of 31 Figure 6: Blackwood Groves Block 8 example of a lot abutting an alley. 158 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 15 of 31 Figure 7: Blackwood Groves Block 8 lot with rear yard abutting an alley. garage 6’ SETBACK 159 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 16 of 31 Figure 8: Garage with alley access and a 6 foot rear setback. garage 6’ SETBACK 160 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 17 of 31 SECTION 3 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS In considering applications for approval under this title, the advisory boards and City Commission must consider the following criteria (letters A-I) found in Section 76-2-304 of the Montana Statutes Annotated (MCA). As an amendment is a legislative action, the Commission has broad latitude to determine a policy direction. The burden of proof that the application should be approved lies with the applicant. A zone text amendment must be in accordance with the growth policy (criteria A) and be designed to secure safety from fire and other dangers (criteria B), promote public health, public safety, and general welfare (criteria C), and facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements (criteria D). Therefore, to approve a text amendment the Commission must find Criteria A-D are met. In addition, the Commission must also consider criteria E-I, and may find the text amendment to be positive, neutral, or negative with regards to these criteria. To approve the zone text amendment, the Commission must find that the positive outcomes of the amendment outweigh negative outcomes for criteria E-I. In determining whether the criteria are met, Staff considers the entire body of regulations for land development. Standards which prevent or mitigate negative impacts are incorporated throughout the entire municipal code but are principally in Chapter 38, Unified Development Code. Where a finding of Neutral is presented, it represents that the criteria is either not applicable to the proposed amendments or that the change does not materially advance or detract from compliance. Therefore, a finding of Neutral is not an indication of a deficiency in the proposed amendments or the existing standards. Having considered the State Statute criteria established for a zoning text amendment, the Staff evaluated the amended ZTA Table 38.320.040 against the MCA and UDC criteria for approval and finds the criteria for approval of this CDB-recommended amendment have been met. Therefore, staff recommends approval of the application as amended. The Development Review Committee (DRC) considered the original ZTA application and did not identify infrastructure deficiencies associated with the proposed amendment. The following is an evaluation of the Board-recommended amendments to Table 38.320.040. Section 76-2-304, MCA (Zoning) Criteria A. Is the new zoning text in accordance with the City’s growth policy? Yes. Overall, this criterion is met. Staff Evaluation: The Bozeman Community Plan 2020 describes planning principles and “growth policies” listed as Themes, Goals, Objectives and Actions. As described below, the proposed text amendment satisfies the following growth policies of the Community Plan and staff has found no 161 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 18 of 31 such policy that would be violated by the proposed zoning text amendment (ZTA). Therefore, this criterion is met. The proposed text amendment would apply to all lots abutting alleyways that lie within the REMU, Residential Emphasis Mixed Use zoning districts. The REMU District is an implementing district of the Residential Mixed Use future land use map (FLUM) designation of the Community Plan (see Figure 5). The Residential Mixed Use designation promotes: “neighborhoods substantially dominated by housing yet integrated with small-scale. commercial and civic uses. The housing can include single-attached and small single- detached dwellings, apartments, and live-work units. If buildings include ground floor commercial uses, residences should be located on upper floor. Variation in building mass, height, and other design characteristics should contribute to a complete and interesting streetscape”[page 53, Community Plan]. Overall, whether the alley rear yard setback is 10-, 15- or 6-feet in depth has no bearing on the value or utility of a home or its garage along the alley because a vehicle cannot legally park in the setback area of either size setback since those dimensions do not meet the standards for parking in 38.540.020. This setback is not allowed “stacked” parking and not deemed a driveway for parking purposes. A minimum 5-, 6-, 10- or 15-feet setback from the alley property line would provide (1) sufficient visual distance for a passersby motorist, pedestrian or cyclist traveling along the alley to see/notice a vehicle backing out from a garage accessed from the alley; (2) sufficient distance from the alley for snow storage and placement of a trash receptable on trash days; and (3) sufficient distance for a motorist driving into or out of a garage to make one or more turning movements to reach the garage or alley travelway. These are the purposes of a rear setback along an alleyway. How does the proposed reduced rear setback along alleys in REMU districts address the intent of the Residential Mixed Use land use designation? The intent and purpose of the REMU District is to establish areas within Bozeman that are mixed-use in character and to provide options for a variety of housing, employment, retail and neighborhood service opportunities within a new or existing neighborhood [UDC 38.300.110.F]. Alleyways within REMU districts are encouraged and are intended to facilitate the development of a variety of types and sizes and, perhaps, affordability, of housing. Pursuant to UDC Section 38.510.030.M.2(j), if an alley is adjacent to a site, access must be taken from that alley. Access to a street may be considered by the review authority. Per 38.510.010.B this standard does not apply to one to four-household dwellings. With the purpose of an alley rear setback and the purposes of the REMU District in mind, the reduced rear setback for lots with rear alley access positively address the following growth policies of the 2020 Community Plan. 162 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 19 of 31 2020 Community Plan Policies Theme 1 seeks a Resilient City: “Resilient communities rebound, positively adapt to, and thrive amidst changing conditions or challenges and maintain quality of life, healthy growth, durable systems and conservation of resources for present and future generations.” Policy R-1.7: “Be flexible: willingness and ability to adopt alternative strategies in response to changing circumstances.” R-2.6: “Innovation: Advance new approaches and techniques that will encourage continual improvement and advancement of best practices.” Staff Evaluation: A reduced rear yard setback for blocks of housing with garages accessed from an alley would represent the flexibility sought to encourage development of homes which accommodate the “market-tastes” of a variety of households, particularly those who wish to present an attractive urban façade to the house along the street rather than encumber the street frontage with a garage and to those who wish to enter their homes from the rear yard. Theme 2: A City of Unique Neighborhoods. Goal N-1: Support well-planned, walkable neighborhoods. Policy N-1.1: Promote housing diversity, including missing middle housing. Goal N-3: Promote a diverse supply of quality housing units. N-3.1: Establish standards for provisions of diversity of housing types in a given area. N-3.7: Support compact neighborhoods, small lot sizes, and small floor plans, especially through mechanisms such as density bonuses. N-3.8: Promote the development of “Missing Middle” housing (side-by-side or stacked duplex, triplex, live-work, cottage housing, group living, rowhouses/townhouses, etc.) as one of the most critical components of affordable housing. Staff Evaluation: The reduced rear setback for lots abutting an alley would facilitate a mix of housing types and sizes in REMU neighborhoods by allowing larger building “footprints”/greater utilization of the land for the principal house or the principal house and an Accessory Dwelling Unit (ADU) and a garage accessed from the alley. The visual character of residential blocks that have garages accessed by a mid-block alley may appeal to residents who wish to “present” more attractive and personalized house designs, facades and landscaping than can be achieved with street-facing and accessed garages. The proposed reduced rear alley setback may induce and facilitate use of the alley to access the garage. The changed standard will further distinguish the 163 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 20 of 31 built environment in the REMU district from other residentially oriented districts that have different rear setback requirements. Theme 3: A City bolstered by Downtown and Complementary Districts. Goal DCD-1: Support urban development within the City. Goal DCD-3: Ensure multimodal connectivity within the City. DCD-3.6: Evaluate parking requirements and methods of providing parking as part of the overall transportation system for and between districts. Staff Evaluation: The reduced rear setback for blocks with an alley would support compact development in REMU Districts where they lie in the city. Reducing the rear setback for alley- loaded lots would induce and facilitate greater development of such block forms. Blocks with alleys may create more attractive pedestrian and bicycle routes through neighborhoods as there are fewer conflicts with motor vehicles crossing the sidewalks and bike routes/lanes, than through streets with front-facing garages. The remaining Community Plan Themes have policies that do not speak directly to the proposed ZTA and the proposed ZTA is neutral toward and does not negatively affect any of the remaining policies: Theme 4: A City influenced by our Natural environment, parks, and open lands. Theme 5: A City that prioritizes accessibility and mobility choices. Theme 6: A City powered by its creative, innovative and entrepreneurial economy. Theme 7: A City engaged in regional coordination. B. Will the new zoning secure the community’s safety from fire and other dangers? Yes. This criterion is met. Staff Evaluation: The current rear setback for a garage accessed from an alley in the REMU District would have a 10- or 15-foot depth of driveway fronting the alley. No “stacked” parking of a vehicle within the current or proposed 6-foot setback from the alley could occur. Any rear setback of less than 20-feet is not deemed or allowed as a driveway for parking. A typical vehicle length is from 18 to 24 feet and no such vehicle can “park” in a driveway of 10 or 15 feet in length. However, many people try anyway. Experience across the City has shown that vehicle areas should either be standard parking size or very obviously too small to park. A vehicle entering the garage from the alleyway would likely stop the vehicle next to the garage while awaiting the opening of an automatic garage door this would be different with a 10-foot, 15-foot or the ZTA 6-foot rear yard setback along the alley. Other travelers along the alley would wait their “turn” to travel the alleyway while the motorist is navigating into or out of the garage. 164 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 21 of 31 Vehicles are not permitted to parallel park alongside a 20- or 30-foot wide alley in order to assure emergency vehicle access and, perhaps, solid waste disposal trucks to pass through the alleyway. Development of garages lying 6-feet from a 20- to 30-feet wide alley would have sufficient “back up” and turning movement area within the alley for vehicles parked within the rear yard garages to access the alley in a safe manner. Although, a 24-foot long truck parked in a garage with a 6- foot long driveway will likely have to engage in several turning movements in order to safely exit the alley and may have to forego a property line fence in order to provide adequate sight visibility for backing out of the garage. This would be true for a 10-, 15-, 6- or 5-foot setback from the alley. C. Will the new zoning promote the public health, public safety, and general welfare? Yes. This criterion is met with the Board-amended Table 38.320.040. Staff Evaluation: As noted above, the Board-amended ZTA would allow but not require a minimum reduced rear yard setback of 6-feet for lots that abut an alley in the REMU District and that have a garage or carport that is accessed from the alley. This amendment to Table 38.320.040 would apply only to the smaller residential developments of single-household dwellings, townhouse/rowhouse developments and two-to-four household dwellings. The taller group housing facilities and apartment buildings would retain the current 10-foot rear alley setback. These larger facilities are expected to generate more traffic with greater potential for conflict as multiple people are simultaneously entering and exiting a parking area. Additional clear visual area lessens likelihood of negative outcomes. The reduced setback for the smaller homes would allow lot owners to utilize the land area of the lot more fully for the house and garage. The 6-foot minimum depth of a rear setback to a garage or carport, rather than the current 10- or 15-foot setback, would dissuade motorists from parking within the setback, resulting in blocking passage of other travelers along the alleyway, including emergency service vehicles. Thus, the proposed ZTA would tend to promote or advance public health, safety and general welfare as noted in the City’s Community Plan and in Section 38.100.040 purpose of the UDC. D. Will the new zoning facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements? Yes. This criterion is met. Staff Evaluation: The City conducts extensive planning for municipal transportation, water, sewer, parks, and other facilities and services provided by the City. The adopted plans for these services and facilities allow the City to consider existing conditions and identify enhancements needed to provide additional service needed by new development or new or reuse of a property. The subdivision application process assures that these services would be available and provided to any new development lot within the City, including all REMU lots. The proposed text amendment does not alter any requirements or standards associated with the provision of transportation, water, sewerage, schools, parks, and other public requirements. 165 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 22 of 31 E. Will the new zoning provide for the reasonable provision of adequate light and air to the affected community? Yes. This criterion is met with the Board-amended ZTA. The Board does not believe that a 6-foot rear setback along an alley in the REMU District for group housing facilities and apartment buildings accessed from the alley would provide adequate light, air and privacy to adjacent residential lots and their occupants. The Board anticipates that such uses are likely to be taller structures. Rather, the Board opines that the reduced setback from 10-feet to 6-feet would produce a building that is out of scale and massing with its neighboring lots. It would create a building that blocks light and air to its neighbors. In addition, if all lots within the block were built with 50- or 60-foot apartment buildings, as is allowed by the REMU building height standards, the result would be a dark and foreboding “canyon effect” of tall buildings on each side of a 20-foot wide alley. The Board opines that the current 10-foot rear setback for apartment buildings and group housing buildings would better ameliorate the canyon-effect of tall buildings within the alley block. Therefore, the Board recommends that the apartment and group housing type of development remain with the 10-foot rear alley setback. The Table 38.320.040 shown in Figure 2 on page 9 reflects this Board-amended ZTA. Staff agrees with the Board that, for single-household, townhouse/rowhouse and two-to-four household dwellings, a linear distance from a structure such as a garage to the rear property line abutting an alley can be 6 feet without blocking light, air or privacy to REMU-zoned residential lots. Staff finds that the Board’s recommendation that apartments and group housing retain the 10- foot rear alley setback better assures light and air to the block and neighborhood. The Applicant has designed their Blackwood Groves Subdivision Block 8 homes with a 6-foot rear yard setback from an attached or detached garage and the Board-amended ZTA would accommodate that design. The Applicant proposes that this rear alley setback amendment apply to all REMU District lots, citywide. The Board-amended ZTA accomplishes this. F. Will the new zoning have an effect on motorized and non-motorized transportation systems? Yes. This criterion is met. Staff Evaluation: The proposed reduced rear yard setback in REMU Districts for lots that about an alley from the current 10- or 15-feet to 6-feet is expected to induce the development of residential blocks with mid-block alleyways due to the possibility to make more efficient use of the land on individual lots for buildings, rear yards and other personal space within the lot. More neighborhoods with blocks with alleyways would offer pedestrians and cyclists greater choices for travel throughout the neighborhood because alleys induce less traffic than the abutting streets. This would have a marginal effect on motorized transportation systems in REMU neighborhoods to the extent that the change induces developers to provide more blocks with alleys. Blocks with alleys are expected to facilitate safer pedestrian and bicycle travel away 166 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 23 of 31 from the busier fronting streets. Vehicle access through alleys removes pedestrian/vehicle conflict that can occur where vehicles must cross the sidewalk to access a garage facing the street. With the smaller rear setbacks of this ZTA, developers of land in REMU Districts may perceive it advantageous to build smaller lots that are accessed by alleyways, making more efficient use of residential land. It is noted that neither a 10-foot, 15-foot or a 6-foot setback between a garage and the alley will support a “stacked” parking space in the driveway. A vehicle entering or exiting a garage accessed from a 20-foot wide alley may require several turning movements. This may increase congestion in alleys during peak morning and evening periods when both sides of the alley may have resident motorists engaged in multiple turning movements to get out of (in the AM) or into their garage (in the PM). Other residents along the particular alley learn to “share” the alley during these peak AM and PM periods or seek more flexible hours for their vehicle travels. Parking is required for housing in the REMU District at the same rate as for other residential districts: 1 space for 1 bedroom homes and 2 spaces for 2 or more bedroom homes. To the extent that households have to park more vehicles than can be accommodated in the rear yard garage, there will be increased parking congestion on area streets because parking is not permitted along alleys. However, for blocks with alley access to a garage, there would be more street frontage available for parking spaces. Parking on the street is not counted for meeting parking requirements. It is anticipated that curb-side/on-street parking in front of one’s lot would create fewer pedestrian/vehicle conflicts than lots with a driveway accessed from the street frontage. A 10- or 15-foot deep setback from a garage accessed from an alley could not accommodate “stacked” parking in the driveway but it would likely reduce the turning movements required to get into or out of the alley-fronting garage. The reduced 6-foot rear alley setback may result in a few moments of delay while a motorist maneuvers into an alley garage, but it is not expected to have any additional parking congestion on the alley, street frontage, or any additional pedestrian congestion on the street frontage sidewalk. G. Does the new zoning promote compatible urban growth? Yes. This criterion is met. Staff Evaluation: The REMU District’s intent and purpose seeks to create urban, predominantly residential mixed use neighborhoods with parks, trails and neighborhood-serving non-residential uses therein. In particular, the REMU District seeks to (1) incorporate a wider range of housing types; and (2) provide flexibility in the placement and design of new developments and redevelopment to anticipate changes in the marketplace. As shown in Figures 3 and 4 above, most REMU Districts are located at the edges of the City, rather than in the urban core or downtown. However, within each REMU neighborhood, development provides the density, block and lot configurations, open space, streets and trails connectivity that reflects urban development. All REMU Districts must have an approved Master Plan which positively addresses Community Plan growth policies. All REMU Districts create their own neighborhoods, some of which may 167 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 24 of 31 be lower density or suburban in character and some of which may be high density and quite urban in character. Combined, the REMU neighborhoods must address the intent and purposes of the District as cited on page 18 and, in particular, to incorporate a wider range of housing types and to provide flexibility in the placement and design of new developments to anticipate changes in the marketplace. The reduced rear setback to 6-feet for the smaller residential buildings on lots abutting alleys is expected to facilitate these objectives. A reduced rear alley setback for the taller apartment and group housing buildings have the potential for creating a block with greater height and building massing that is out of scale with other housing types such as single- duplex or four- plex homes. Section 38.700.040, Definitions, of the UDC offers the following definition of “compatible development”. “Compatible development. The use of land and the construction and use of structures which is in harmony with adjoining development, existing neighborhoods, and the goals and objectives of the city's adopted growth policy. Elements of compatible development include, but are not limited to, variety of architectural design; rhythm of architectural elements; scale; intensity; materials; building siting; lot and building size; hours of operation; and integration with existing community systems including water and sewer services, natural elements in the area, motorized and non-motorized transportation, and open spaces and parks. Compatible development does not require uniformity or monotony of architectural or site design, density or use.” The Board-proposed reduced rear yard setback along alleyways furthers the REMU objectives of compact, walkable development and compatible urban growth. By allowing a 6-foot deep setback for the single, duplex or rowhouse/townhouse development on lots abutting alleys in all REMU Districts, it is expected that the objective of compact and walkable residential developments would be facilitated and achieved. H. Does the new zoning address the character of the district and its peculiar suitability for particular uses? Yes. This criterion is met with the Board-amended ZTA. Staff Evaluation: The “peculiar suitability” of residential or mixed use development in REMU Districts is its principle of providing a mix of housing types in the form of compact development, with mixed uses, and “complete streets” that “accommodate pedestrians, bicycles, buses, automobiles and wintertime snow storage and work in concert with internal property accesses and adjacent development to create a connected and vibrant public realm [UDC 38.330.020.B.1].” Alleys in residential blocks provide mid-block access for pedestrian and bicycle travel through neighborhoods, taking these travelers off the busier streets. Providing alleys in residential blocks provide vehicular access to private garages along the alley, resulting in the street-side façade of homes on the block emphasizing pedestrian-scale entries, porches, landscaping and architectural 168 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 25 of 31 treatments that individualize each home within the typically smaller lots within the compact development block. A reduced rear yard setback by this Board-amended ZTA application would facilitate the residential compact development peculiarity sought by the REMU District without allowing taller and bulkier apartment buildings to be built to the 6-foot rear yard. Having alleys with a reduced rear yard setback of 6-feet or, even, 5-feet would facilitate development of the smaller lots that are currently desired by housing renters and buyers. These smaller lots with alley access have garages with no driveway “stacked” parking and, with only a 20- or 30-foot wide alley, no parking along the alley, forcing the garage to fully contain the vehicles. I. Is the new zoning adopted with a view to conserving the values of buildings and of encouraging the most appropriate use of land throughout the jurisdictional area? Yes. This criterion is met with the Board amended ZTA. The proposed ZTA would address new buildings rather than existing buildings within REMU Districts. New residential lots with alley access may have a premium value over lots without an alley due to the convenience of parking in a garage accessed by the alley and the ability to have a more attractive front façade, entries and landscaping over homes with a garage facing the street (“snout homes”). Whether the rear yard setback is 10-, 15- or 6-feet in depth has no bearing on the value of the new home or its garage because a vehicle cannot park in the driveway of either size setback. The reduced rear yard alley setback for single, duplex, triplex, or four-plex built lots would facilitate compact development of a variety of types and sizes of housing in REMU Districts, citywide. This would positively address the REMU District principles and objectives. The REMU District is largely found in newly annexed areas of the city’s edges. The City Commission carefully reviews annexation applications and accompanying REMU District proposals to determine the REMU District’s suitability for the site, area and the City. The Commission carefully determines that the new District, at that location, would positively address relevant policies of the Community Plan and the intent of the REMU District. Any future zone map amendment will likewise be evaluated for all the state zoning criteria and, if adopted, the change in garage setback will be part of that evaluation. Larger REMU areas are required to have a master site plan to consider the distribution of uses that provides a further and more specific level of site design before any lots are designed and constructed. 169 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 26 of 31 SECTION 4 - PROTEST NOTICE FOR ZONING AMENDMENTS In the case of written protest against the proposed ZTA, protests signed by the owners of 25% or more of the area of the lots or units within any REMU zoned area or those lots or units within 150 feet from a lot included in REMU District, the amendment shall not become effective except by the favorable vote of two-thirds of the present and voting members of the City Commission. The City will accept written protests from property owners against the proposed text amendment referred to in this notice until the close of the public hearing before the City Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s) of real property within the area affected by the proposal or by owner(s) of real property that lie within city limits affected by the proposal. The protest must be in writing and must be signed by all owners of the real property. In addition, a sufficient protest must: (i) contain a description of the action protested sufficient to identify the action against which the protest is lodged (including the application number, 24055); and (ii) contain a statement of the protestor's qualifications (including listing all owners of the property and the physical address), to protest the action against which the protest is lodged, including ownership of property affected by the action. Signers are encouraged to print their names after their signatures. A person may in writing withdraw a previously filed protest at any time prior to final action by the City Commission. Protests must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230, Bozeman, MT 59771-1230. APPENDIX A - BACKGROUND AND APPLICANT’S RATIONALE FOR THE ZONE TEXT AMENDMENT Background In 2018, the City revised its Unified Development Code to (1) adapt to changing community needs, (2) streamline review processes, (3) create new zoning districts, (4) implement the North 7th Corridor Plan, (5) further implement the Growth Policy Plan, and (6) generally simplify the UDC. The 2009 Bozeman Community Plan (previous plan) and Bozeman Community Plan 2020 (current plan) both encourage mixed use development patterns. In 2011, the City Commission established the new REMU (Residential Emphasis Mixed Use) zoning district to encourage development of residential neighborhoods with neighborhood-serving establishments as described below in the UDC Section 38.300.110.F. REMU objectives relevant to this ZTA application are noted in bold text. “Residential emphasis mixed-use zoning district (REMU). The intent and purpose of the REMU district is to establish areas within Bozeman that are mixed-use in character and to provide options for a variety of housing, employment, retail and neighborhood 170 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 27 of 31 service opportunities within a new or existing neighborhood. These purposes are accomplished by: 1. Emphasizing residential as the primary use, including single household dwellings, two to four household dwellings, townhouses, and apartments. 2. Providing for a diverse array of neighborhood-scaled commercial and civic uses supporting residential. 3. Emphasizing a vertical and horizontal mix of uses in a compact and walkable neighborhood setting. 4. Promoting neighborhoods that: a. Create self-sustaining neighborhoods that will lay the foundation for healthy lifestyles; b. Support compact, walkable developments that promote balanced transportation options; c. Have residential as the majority use with a range of densities; d. Provide for a diverse array of commercial and civic uses supporting residential; e. Have residential and commercial uses mixed vertically and/or horizontally; f. Locate commercial uses within walking distance; g. Incorporate a wider range of housing types; and h. Encourage developments that exhibit the physical design characteristics of vibrant, urban, and pedestrian-oriented complete streets. 5. Providing standards and guidelines that emphasize a sense of place: a. Support or add to an existing neighborhood context; b. Enhance an existing neighborhood's sense of place and strive to make it more self-sustainable; c. Encourage a new neighborhood commercial center(s) with a unique identity and strong sense of place; d. Develop commercial and mixed-use areas that are safe, comfortable, and attractive to pedestrians; and e. Reinforce the principle of streets as public places that encourage pedestrian and bicycle travel, transit, on-street parking and physical elements of complete streets. 6. Providing standards and guidelines that emphasize natural amenities: a. Preserve and integrate the natural amenities into the development; and b. Appropriately balance a hierarchy of both parks and public spaces that are within the neighborhood. 7. Providing standards and guidelines that emphasize the development of centers: a. Group uses of property to create vibrant centers; b. Where appropriate create a center within an existing neighborhood; c. Facilitate proven, market driven projects to ensure both long and short-term financial viability; 171 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 28 of 31 d. Allow an appropriate blend of complementary mixed land uses including, but not limited to, retail, offices, commercial services, restaurants, bars, hotels, recreation and civic uses, and housing, to create economic and social vitality; e. Foster the master plan development into a mix of feasible, market driven uses; f. Emphasize the need to serve the adjacent, local neighborhood and as well as the greater Bozeman area; and g. Maximize land use efficiency by encouraging shared use parking. 8. Promoting the integration of action: a. Support existing infrastructure that is within and adjacent to REMU zones; b. Encourage thoughtfully developed master planned communities; c. Provide flexibility in the placement and design of new developments and redevelopment to anticipate changes in the marketplace; d. Provide flexibility in phasing to help ensure both long and short term financial viability for the project as a whole; 9. Providing standards and guidelines that promote sustainable design. Use of this zone is appropriate for sites at least five acres in size and areas located adjacent to an existing or planned residential area to help sustain commercial uses within walking distance and a wider range of housing types.” Staff Comment: Since 2011, several REMU Districts have been established, mostly along the outer edges of the city (see Figures 3 and 4 above) where the Community Plan’s Future Land Use Designation Map (FLUM) allows the REMU District to locate (see Figure 5). The REMU District is an implementing zone for the Urban Residential, Residential Mixed Use, and Community Commercial Mixed Use land use categories of the FLUM. As shown on the FLUM, the Neighborhood Residential land use designation is the most abundant category. REMU, as a comparatively new zoning district is generally located along the edges of the city. This amendment would also apply to any future zone map amendments to REMU. The Blackwood Groves REMU-zoned subdivision was established in 2022 and, at that time, was at the southwestern edge of the city. Since then, several more properties have been annexed and designated REMU. Within the Blackwood Groves subdivision, a number of residential blocks are under construction or have been completed and are occupied. The Applicant is currently proposing construction of the first block within the subdivision that has a 20-feet wide mid-block alleyway abutting lots ranging in size from 5,000 to 6,200 square feet. These lots are proposed for single-household dwellings with garages accessed from the alley. 172 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 29 of 31 Applicant’s Rationale for the Zone Text Amendment It is noted that the Applicant has prepared a development proposal for one of the Blackwood Groves REMU residential blocks which feature a 20-foot wide mid-block alley. The 5,000 square foot lots along this block feature attached garages accessed from the alley with only a 6-foot rear yard setback. The Applicant states that the 6-foot rear setback allows a more efficient use of land within each lot. The Applicant offers the following rationale for how this reduced setback would better accommodate the design of homes with garages on small lots [note that UDC Table 38.320.040 defines small lots as between 2,500 and 4,000 square feet in size]: “Most commercial/mixed use districts specially call out alley setbacks, REMU doesn’t, and this leads to confusion throughout the document and in the diagrams. Our application aims to simplify these areas to eliminate any confusion and conflicts between the diagrams for the REMU District.” “Detached structures are allowed to be 6’ off the alley (if 20’ ROW) but primary structures are required to be a minimum of 15’.” “Our proposal is to implement a 6’ alley setback. This creates uniformity for both detached and attached structures.” “Having wider alleys defeats the true purpose of the alley. When alleys are wider, they tend to encourage both higher rates of speed and more primary traffic. These two conditions dramatically decrease the safety of the alley. Alleys are intended to be back-of-house functions and should warrant lower rates of speed. In order to encourage this behavior alleys, need to be tighter. This is one the reason this condition is allowed currently for detached structures. Our intent is to allow this for primary structures as well. The Draft Proposed UDC aims to remedy this as well. The Draft proposes a 5’ alley setback.” • RE: REMU Section 38.300.110.F.4.b – Support compact, walkable developments that promote balanced transportation options. “6’ alley setback is more conducive for smaller lots thus supporting a more compact development.” • REMU Section 38.330.020.B.1.e – on-street parking should be maximized wherever feasible. “6’ alley setback requires parking in the garage or on-street – not wasting rear yard space for hardscape to store vehicles.” • REMU Section 38.330.020.B.4. Alleys. Alleys are encouraged, but not required, in the REMU District. “Having the 6’ alley setback encourages developments to utilize more alleys as it creates more options for lot development to provide for a variety of housing types.” The Applicant’s full rationale for this zoning text amendment (ZTA) can be in the application Narrative document viewed here or https://weblink.bozeman.net/WebLink/Browse.aspx?id=287867&dbid=0&repo=BOZEMAN 173 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 30 of 31 The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. APPENDIX B - NOTICING AND PUBLIC COMMENT Notice for text amendments must meet the standards of Bozeman Municipal Code 38.420.080 and 38.550.070 which requires legal notice publication twice in a local newspaper. Notice was published in the Bozeman Daily Chronicle as required and contained all required elements. Notice was provided at least 15 working days before the Zoning Commission public hearing, and not more than 45 working days prior to the City Commission public hearing. Notice was published in the legal notice section of the Bozeman Daily Chronicle on Sunday, April 21, 2024 and Sunday, April 28, 2024. The City exceeded the required notice provision. A May 6, 2024, public hearing was held by the Community Development Board acting in their capacity as the Zoning Commission. No public comments were received prior to or during this meeting. Any comments received on this application can be reviewed at the following link by scrolling down to Project No. 24055. https://weblink.bozeman.net/WebLink/Browse.aspx?id=269857&dbid=0&repo=BOZEMAN The City Commission public hearing on this amended ZTA will be held on May 21, 2024 beginning at 6 P.M. in the Commission Room of City Hall. For the City Commission hearing, any public comments received will be archived and available through the project folder in the City’s Laserfiche archive. Comments provided orally at public meetings will be available through the recordings of those public meetings. How to comment: The purpose of the public hearings is to consider the proposed amendment as requested by the applicant, Blackwood Land Group, 115 West Kagy Blvd, Suite L, Bozeman, MT 59715. The City invites the public to comment in writing and to attend the public hearings regarding compliance of this application with the required criteria. Comments should identify the specific criteria of concern along with facts in support of the comment. During the notice period the City will continue review for compliance with applicable regulations. Written comments may be directed to by email to comments@bozeman.net or by mail to the City of Bozeman, Department of Community Development, PO Box 1230, Bozeman, MT 59771-1230. Please reference application 24055 in all correspondence. For those who require accommodations for disabilities, please contact Mike Gray, City of Bozeman ADA Coordinator, 582-3232 (voice), 582-3203 (TDD). 174 Alley Rear Yard Setback Reduction in REMU Districts ZTA; Application 24055 Page 31 of 31 APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF Applicant: Bridger Land Group, c/o Grant Syth, Applicant Representatives: Tyler Steinway, Intrinsik Architecture Report By: Susana Montana, Senior Planner, Community Development Department FISCAL EFFECTS No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Amendment. 175 ALLEY SETBACK ZONE TEXT AMENDMENT January 2024 176 January 2024 2 Table of Contents Narrative I. Project Overview II. Response to Zone Map Amendment Approval Criteria Appendices Appendix A – Code Sections Marked Up Appendix B – Edited Code Sections Clean 177 January 2024 3 1. Project Team Owners & Applicant: Bridger Land Group Attn: Grant Syth 115 West Kagy Boulevard, Suite L Bozeman, MT 59715 Email: Grant@bridgerlandgroup.com Representative: Intrinsik Architecture, Inc Attn: Tyler Steinway 106 East Babcock Street, Suite 1A Bozeman, MT 59715 Ph: 406.582.8988 Email: tsteinway@intrinsikarchitecture.com 178 January 2024 4 Project Narrative Executive Summary The project team is submitting a Zone Text Amendment Application to update the Alley Setbacks for attached single household structures in REMU to a logical configuration that will simplify and make the current code easier to understand . Project Description The Applicant is requesting to add a row to the form and intensity table for the REMU zoning district to align with the growth policy and to clean up the existing UDC. Currently, the UDC does not specify any alley setback standards in the REMU Zoning District like several of the commercial zoning districts do. Not including this alley setback requires applicants to rely on other zoning standards that muddy the waters on what is required. This is remedied in the new Draft Development Code, but due to the uncertainty of when that will be adopted, this ZTA has been submitted. This standard affects projects that are being planned and some that are currently under review. When evaluating the rear yard setback for properties along an alley, there are several standards in the Code that allow the setback requirements to vary slightly, which leads to confusion. The intention with this ZTA is to simplify these standards. The existing code sections in contemplation are: - Table 38.320.040. – Rear Yard Setback for single households up to apartments is 15’. - 38.360.030.I.b – Detached Structures Setback Requirements Accessory structures greater than 120 square feet but less than or equal to 600 square feet in footprint may not be located in any front, side, or corner-side setback. The accessory structure must be set back a minimum of either: a. Six feet, or b. When parking is provided between the structure and the rear property line, 20 feet except when required parking spaces need a greater setback for back-up maneuverability. See the following examples: Alley Right-of-Way Width Setback for Garage without Stacked Parking Setback for a Garage with Stacked Parking Off of an Alley 30 feet 6 feet 20 feet 20 feet 6 feet 24 feet 16 feet 8 feet 28 feet 14 feet 10 feet 30 feet 179 January 2024 5 - Accessory structures greater than 600 square feet may not be located in any required front or side setback, or in a rear setback when no alley is present. Adequate back-up maneuverability for required parking spaces must be provided. - Accessory structures greater than 600 square feet may be located in required rear setbacks when an alley is present and must provide adequate backup maneuverability for required parking spaces. - Figure 38.360.220.E : To summarize, on one hand it appears the current code requires a 15’ rear yard setback for the primary structure but the standards listed 38.360.030.I.b. allow for a situation where a detached structure is only 6’ off the alley. Furthermore, the diagram included as Figure 38.360.220.E (above) outlines a situation where the primary structure only has a 6’ setback off an alley. The crux of the discrepancy relies on the difference between the primary structure and detached structures. Detached structures, because they are not physically attached to the main structure, are allowed to be 6’ from the alley, while primary structures adjacent to the alley must be a required 15’ off the alley. It has been argued that the reason for the difference in standards is to break down the massing of a building but the new Draft Development Code looks to simplify this section and allow for the a 5’ alley setback. There are other standards in the current UDC such as required open space that address massing. Finally, separating the garage from the main house on smaller lots does little to break down the massing because both structures can be similar size and ultimately results in less backyard privacy. 180 January 2024 6 Our request to amend the code also implements one of the proposed changes early, allowing for the construction of homes sooner. Requiring wide setbacks along alleys defeats the true purpose of the alley. Alleys are intended to be narrower for providing access to the rear of the lots. When there is a drastic setback from the alley, it encourages higher speeds and short cuts from streets. These areas that are intended for back of house functions and access should be narrow to limit non-residents from using that as a means of transportation. It should also be mentioned that the pausing of the new Development Code resulted in several applications being delayed. While it was done at risk, several alleys loaded lots in Blackwood Groves were designed utilizing the detached garage setback of 6’. Without this ZTA the building permit applications that are under review cannot be approved without either significant redesign or waiting for the new code. This ZTA is looking to remedy this and allows housing units to be built now. Responses to ZTA Approval Criteria Below are responses to the ZTA Approval Criteria (Section 76-2-304, MCA) that address how the project relates to and meets the criteria outlined for the approval of a zone change. a. Is the new zoning designed in accordance with the growth policy? How? Yes. The Future Land Use Map in the Bozeman Community Plan 2020 designates the property as Residential Mixed Use. The intent of Residential Mixed Use is to promote neighborhoods that are primarily comprised of residential uses that vary in type, scale, and form, while simultaneously allowing for small-scale commercial and civic uses to support these primary residential components. This property is zoned REMU, which is consistent with the Community Plan vision for the Residential Mixed-Use designation. The purpose of this proposed change is to establish criteria for residential alley setbacks, which will establish a protocol that ensures that the residential components properly mesh with the other allowed uses in communities with this zoning designation. This proposed ZTA is consistent with several goals and objectives of the community plan including: Goal DCD-1 Support urban development within the city DCD-1.2 Remove regulatory barriers to infill N-3.7 Support Compact neighborhoods, small lot sizes and small floor plans, especially through mechanisms such as density bonuses. R-1.7 Be flexible: willingness and ability to adopt alternative strategies in response to changing circumstances. 181 January 2024 7 R-2.6 Innovation: Advance new approaches and techniques that will encourage continual improvement and advancement of best practices. Amending the current UDC to align with the proposed Development Code will allow for projects to move forward quicker and will allow for infill housing to be constructed now. This change will allow for the development of at least 20 homes in Blackwood Groves alone. This change will also allow for more urban development to happen within the city. Allowing for structures to be closer to the alley, will increase the spatial enclosure which helps to reinforce the road hierarchy and re-establish alleys as secondary accesses that are primarily intended for the adjacent lot owners to use for access to their property. This will help discourage normal vehicular traffic through alleys, which in turn, will encourage non-motorized transportation users like bicyclists and pedestrians to use alleys more. This change will simplify the UDC ahead of the New Development Code and will allow align with the goals of more flexibility and improvement/advancement of best practices. b. Will the new zoning secure safety from fire and other dangers? How? Yes. This Zone Text Amendment will have no effect on safety from fires or other dangers. This change was contemplated in the Draft Development Code. Also, it is allowed in other zoning designations and for accessory structures. This shall have no effect on fire safety. Finally any proposed structure will have to comply with the adopted building & fire codes which adequately address fire safety. c. Will the new zoning promote public health, safety and welfare? How? Yes. The proposed Zone Text Amendment will promote health, safety and welfare by increasing transportation safety in alleys. The proposed Zone Text Amendment would allow for attached structures to abut alleys more closely. This increased spatial enclosure helps to reinforce the road hierarchy and re-establish alleys as secondary accesses that are primarily intended for the adjacent lot owners to use for access to their property. This will help discourage normal vehicular traffic through alleys, which in turn, will encourage non-motorized transportation users like bicyclists and pedestrians to use alleys more. The increased presence of non-motorized transportation users accessing alleys will also discourage motorists to decrease their rates of speed. d. Will the new zoning facilitate the adequate provisions of transportation, water, sewage, schools, parks and other public requirements? How? Yes. This Zone Text Amendment will have no impact on the current provisions of transportation, water, sewage, schools, parks or any other public requirements. As previously stated, this proposed Zone Text Amendment is proposing what is currently allowed in other zoning designations and is being brought forth to provide clarity to the rules and regulations of residential uses within the REMU Zoning District. 182 January 2024 8 e. Will the new zoning provide reasonable provision of adequate light and air? How? Yes. This proposed change will only have an effect on alley setbacks; therefore, primary private & public spaces will remain unchanged. The proposed changes will have no impact on any aspects of the design, function, or appearance of streets, street frontage, open space, or parks. This absence of impact includes the aspects of light and air adequacy. Additionally, the proposed change would allow for conditions that are already found elsewhere throughout the City in other zoning districts, which indicates that the conditions that this change would allow for have already been found to reasonably provide adequate light and air. f. Will the new zoning have an effect on motorized and non-motorized transportation systems? How? Yes. The proposed Zone Text Amendment would allow for the space between structures that abut alleys to become smaller. This increased spatial enclosure will help to visually establish alleys as secondary rights-of-way to streets. This will discourage vehicular traffic in alley ways by non-residents, by increasing the notion of privacy and reduced speed. With this reduction in vehicular traffic, alleys will become safer and more inviting to non-motorized transportation users like bicyclists and pedestrians. While presence of alleys allows property owners to access their property via the rear, preserving street-fronting building appearances, increased safety for non-motorized transportation users in alleys unlocks another purpose of these rights-of-way; to break up block lengths & make neighborhoods more walkable. Providing more viable transportation for non-motorized transportation users will benefit all transportation users, as the risk for incidents between motorized and non-motorized will decrease. g. Does the new zoning promote compatible urban growth? How? Yes. Stated intent and purpose of the REMU Zoning District is “To establish areas within Bozeman that are mixed-use in character and to provide options for a variety of housing, employment, retail and neighborhood service opportunities within a new or existing neighborhood. These purposes are accomplished by:” b. Support compact, walkable developments that promote balanced transportation options; h. Encourage developments that exhibit the physical design characteristics of vibrant, urban, and pedestrian-oriented complete streets. 5.d. Develop commercial and mixed-use areas that are safe, comfortable, and attractive to pedestrians; 5.e. Reinforce the principle of streets as public places that encourage pedestrian and bicycle travel, transit, on-street parking and physical elements of complete streets. The proposed Zone Text Amendment only furthers these ideas of compact, walkable development and compatible urban growth. The ability to build a structure 6’ off an alley already exists with detached garages, our intention is to allow this for attached garages to which would have no impact on these goals or the ability to promote compatible urban growth. Finally, the new Development Code aims to make a similar change. 183 January 2024 9 h. Does the new zoning promote the character of the district? How? Yes. The City of Bozeman’s Unified Development Code states that one of the REMU Zoning District’s intended purposes is to “Support compact, walkable developments that promote balanced transportation options”. The current residential alley setback standards in this zoning district are contrary to this stated goal. By allowing for a smaller alley setback for all structures in REMU, it will allow for more compact walkable developments. i. Does the new zoning address the affected area’s peculiar suitability for particular uses? How? No. This Zone Text Amendment will not affect the permitted uses. The request is to modify the setback requirements to eliminate confusion and harmonize the code. j. Was the new zoning adopted with a view of conserving the values of buildings? How? Yes. This proposal should have no effect on the value of buildings. The request won’t substantially change anything that would affect the values of buildings. k. How does the new zoning encourage the most appropriate use of land throughout the jurisdictional area? Yes. As stated above, this property has been planned for Residential Mixed Uses & densities for many years. The Community Plan illustrates the most appropriate uses of land through the future land use map. The future land use map category in this case identifies these parcels as Residential Mixed Uses as the most appropriate type of development for this property. The REMU zoning district successfully implements this Residential Mixed-Use vision. The proposed changes won’t result in any changes to the already approved permitted uses. 184 Version February 2023 Ord. 2161 Page 1 of 7 ORDINANCE 2161 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING TABLE 38.320.040 OF CHAPTER 38 OF THE BOZEMAN MUNICIPAL CODE TO REDUCE THE REAR YARD SETBACK FOR SINGLE- HOUSEHOLD, TOWNHOUSE/ROWHOUSE AND TWO-TO-FOUR HOUSEHOLD DWELLINGS ON ALLEY-ABUTTING LOTS LYING WITHIN REMU (RESIDENTIAL EMPHASIS MIXED USE) DISTRICTS CITYWIDE. WHEREAS, the City of Bozeman (the “City”) has adopted land development and use standards to protect public health, safety and welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102, 76-2-304, 76-3-102, and 76-3-501; and WHEREAS, pursuant to the Bozeman City Charter, the City of Bozeman has adopted and is hereby relying upon its self-government powers recognizing pursuant to Montana law such self- government powers must be liberally construed in favor of such power; and WHEREAS, pursuant to Chapter 38, Section 38.260.010.A of the Bozeman Municipal Code (BMC), the Bridger Land Group submitted application number 24055 for a specific zoning text amendment for Table 38.320.040 to reduce the rear yard setback for single-household, townhouse/rowhouse and two-to-four household dwellings on lots that abut alleyways lying within a Residential Emphasis Mixed Use (REMU) District; and WHEREAS, pursuant to BMC Section 38.260.020, upon receipt of such application, the Community Development Department initiated the required investigation of facts bearing on such proposed amendment to ensure that the action is consistent with the intent and purposes of Chapter 38, Section 38.100.040 to protect health, safety and general welfare; and WHEREAS, on May 6, 2024, the Bozeman Community Development Board, acting as the Bozeman Zoning Commission, voted to recommend to the City Commission an amendment to the Applicant’s text amendment proposal. The Board recommended separating the group living and apartment buildings into a new category and maintaining a 10-foot setback for those uses, instead of the applicant’s initial proposal, which proposed reducing the setback for those uses to a 6-foot rear yard alley setback. This amendment is incorporated into Ordinance 2161; and 185 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 2 of 7 WHEREAS, pursuant to Sections 38.220.420 and 38.260.030, public notice of the May 6, 2024 public hearing on the proposed amendment before the Community Development Board and of the May 21, 2024 public hearing before the Bozeman City Commission was given by publication in a general circulation newspaper on April 21, 2024 and April 28, 2024, which is not less than 15 or more than 45 calendar days prior to the public hearings; and WHEREAS, after proper notice, the Community Development Board held a public hearing on May 6, 2024 to receive and review all written and oral testimony on the proposed amendment and offer their recommendation to the City Commission; and WHEREAS, the Community Development Board recommended to the Bozeman City Commission that Ordinance 2161 be approved as proposed; and WHEREAS, after proper notice, the City Commission held its public hearing on May 21, 2024, to receive and review all written and oral testimony on the proposed amendments; and WHEREAS, the City Commission has reviewed and considered the applicable amendment criteria established in Montana Code Annotated § 76-2-304, and found that the proposed amendments are in compliance with the criteria; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Legislative Findings The City Commission hereby makes the following findings in support of adoption of this Ordinance: 1. The City adopted a growth policy, the Bozeman Community Plan 2020, by Resolution 5133 to establish policies for development of the community including zoning; 2. The Bozeman Community Plan 2020, Chapter 5, sets forth the policies by which the City reviews and applies the criteria for amendment of zoning established in 76-2-305, MCA; 3. Zoning, including text amendments, must be in accordance with an adopted growth policy; 4. A staff report analyzing the required criteria for a zone text amendment, including accordance to the Bozeman Community Plan 2020, has found that the required criteria are satisfied; 5. The two required public hearings were advertised as required in state law and municipal code and all persons have had opportunity to review the materials applicable to the application and provide comment prior to a decision; 6. The Bozeman Community Development Board as the Zoning Commission has been established as required in state law and conducted their required public hearing; and after consideration of application materials, staff analysis and report, and all submitted public comment recommended approval of the application. 186 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 3 of 7 7. The City Commission conducted a public hearing to provide all interested parties the opportunity to provide evidence and testimony regarding the proposed amendment prior to the City Commission acting on the application. 8. The City Commission considered the application materials, staff analysis and report, Zoning Commission recommendation, all submitted public comment, and all other relevant information. 9. The City Commission determines that, as set forth in the staff report and incorporating the staff findings and Community Development Board’s amendment and recommendation as part of their decision, the required criteria for approval of the proposed Bozeman Unified Development Code (UDC) Table 38.320.040 text amendment to reduce the rear yard setback to 6-feet for single-household, townhouse/rowhouse and two-to-four household dwellings on lots within the REMU District which abut an alley have been satisfied. 187 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 4 of 7 Section 2 Table 38.320.040—Form and Intensity Standards of the Residential Emphasis Mixed Use (REMU) Districts—Minimum-Maximum Setbacks (feet)—shall be amended to read as follows with all other elements of the table and footnotes remaining unchanged: Community Development Board recommended Zoning Text Amendments are shown in red underlined text with the deleted Applicant’s text shown in red strike through text. A new column for group living and apartments has been added. Standard Small-lot single- house hold Single- house hold Townhouse/ rowhouse townhouse/ rowhouse cluster1 Two to four household dwellings, group living, apartments Group living, apartments Mixed use (residential over commercial) Non- residential Minimum-Maximum Setbacks (feet) (38.320.020.E) (where only one number is shown in the column, there is no "maximum" setback) Front Setback (minimum and maximum) 10-15 10-15 10-15 10-15 10-15 Note7 Note8 Setback to an individual garage oriented to the street 2011 2011 2011 — -- — — Rear Setback 10 15 10 10 10 — — Rear Setback Adjacent to an Alley 6 6 6 6 10 __ __ Side Setback 59 59 510 5 5 — — Garages and Special Parking Standards Residential garages Note12 Note12 Note12 Note12 Note 12 Note12 — Special Parking Standards — — — Note13 Note13 Note6,13,14 Note6,13,14 188 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 5 of 7 Notes: [All notes remain unchanged.] … 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. 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. The provisions of Section 2 of this Ordinance shall be codified as appropriate in the Bozeman Municipal Code. 189 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 6 of 7 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 21st day of May, 2024. ____________________________________ TERRENCE CUNNINGHAM 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 ____________________, 2024. The effective date of this ordinance is ______________, 2024. _________________________________ TERRENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk 190 Ordinance No. 2161, Amend Residential Emphasis Mixed Use Rear Yard Setback Page 7 of 7 APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 191 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director SUBJECT:Resolution 5596, Approving the 7th and Aspen 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:May 21, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consider the Motion: I move to approve Resolution 5596. 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 Midtown Aspen 20240521.pdf Resolution 5596 approving 7th & Aspen project.pdf BZN Development Agreement.7th and Aspen.v2.pdf TIF Application 7th & Aspen_Phase 1& 2 - 05.02.2024 (Revised).pdf EPS Report 233073-Memo-TIF Review-7th and Aspen 05-07- 2024.pdf Report compiled on: May 14, 2024 192 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director Chuck Winn, Interim City Manager SUBJECT: Resolution 5596 - A Resolution Approving the Lumberyard 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 or Tax Increment Revenue Bonds to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE: May 21, 2024 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 5596. Executive Summary The 7th and Aspen Project is a three-phase project being undertaken by Boundary Development, LLC and its related entities. Phase 1 of the project consists of a four-story apartment building containing 46 residential rental units, 29 of which are expected to be affordable at 60% area median income (“AMI”) and 17 of which are expected to be affordable at 50% AMI. Phase 1 is utilizing 9% and 4% low- income housing tax credits (LIHTC) to require 50-year affordability. Phase 2 of the project consists of a four-story apartment building containing 50 residential rental units, all of which are expected to be workforce housing affordable at 80% AMI, which is below market rate. Since the units in Phase 2 are expected to be taxable, the developer’s request for tax increment financing is expected to make the 50- year required affordability of these units possible. The third phase of the project is expected to include commercial development and market rate housing units in the long run. Phase 3 will initially be developed as parking to serve Phase 1 and Phase 2 until a more suitable parking solution can be developed to serve all three phases of development. TIF Assistance for Phase 3 of the project is not being considered with this application. Phase 1 and Phase 2 of the project complement each other. The workforce housing project, Phase 2, 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, like Phase 1, traditionally 193 apply for tax exemption, and pay no taxes, which makes them ill-suited to use TIF as a source of funds. The below market rate units create new taxable value as a source of repayment for installing necessary public infrastructure to serve both 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 Boundary Development. Staff recommends that the City Commission adopt Resolution 5596 and the associated development agreement, which provides $3,096,061 in TIF assistance reimbursement to Boundary Development to cover TIF eligible costs and for placing restrictive covenants on Phase 1 and Phase 2 ensure long-term affordability. 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 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. 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 $3,096,061. Staff scored the application based on the program criteria. Based on our review and the application materials presented, the project received 32 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 commercial 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 Economic and Planning Systems, Inc. (EPS) 194 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. EPS 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. EPS examined three approaches for determining if the project could be expected to proceed, “but for” public subsidy, and determined that the request for public assistance was reasonable and necessary to move the project forward. The Midtown TIF Assistance Program set a private investment to public investment target of 10:1. While the overall ratio of private investment to TIF investment does not quite meet the 10:1 target, it is important to note that this program target was selected based on a presumption that assisted projects would be market rate. In this case, the City can consider the addition of long-term workforce housing as a public good that balances the need for private investment. The 7th and Aspen Project is the first project in which the City has used a provision in the urban renewal law to provide TIF support to vertical construction of a workforce housing project. As might be expected, this deeper support creates a longer expected payback. The developer provided a tax generation analysis for the project. According to their projection, the taxable portion of the project would produce net new annual taxes of at least $65,000 to $85,000, which would allow TIF assistance to be paid back in 36-48 years without accounting for the cost of capital. This payback period exceeds the remaining life of the District, which means that taxes generated by the rising value of the Midtown URD, as a whole, are also facilitating this project. While careful consideration of project taxable values and returns are an important part of TIF management, this project makes progress on many of the goals of the urban renewal plan and provides the public benefit of long-term workforce housing. Just as other public infrastructure upgrades provide public value without providing a direct monetary return on investment, the addition of long-term, rent restricted workforce housing provides a public benefit and a hedge against market pressures on rents. 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 $3,096,061 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. Given that this project includes 96 units of covenant restricted workforce housing, and restrictions on short term rentals, and EPS 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 $3,096,061 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 5596 in Section 3. Staff’s makes the conclusions regarding these findings. 195 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 has a single unit that was historically used as a residence, but that has not been occupied for several years. 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 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. 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 Midtown Urban Renewal District currently generates adequate tax increment to support the bonds contemplated by the Development Agreement and the project is adding net new incremental taxable value to the Midtown Urban Renewal District. e. The Project constitutes an urban renewal project within the meaning of the Act and the Plan. • The Project was found by Staff through review of the TIF Assistance Program Criteria 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 $3,096,061 in TIF eligible costs. When a certificate of occupancy is issued for the project, staff will likely initiate the process for issuing tax increment revenue bonds to support the project. In the event that sufficient cash is available in the Midtown Urban Renewal District, staff may also recommend providing the assistance in cash. 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 196 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 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 developer provided a tax generation analysis for the project. According to their projection, the taxable portion of the project would produce net new annual taxes of at least $65,000 to $85,000, which would allow TIF assistance to be paid back in 36-48 years without accounting for the cost of capital. While the project is generating net new taxes, new tax generation is not the primary public benefit of the project. [1 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 two infill parcels containing two long-vacant structures. These structures will be replaced with multi-story residential structures that are more compatible with the adopted priorities of the district. [4 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. 197 [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] 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 provides covered bike parking. [1 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: This project promotes innovation in infrastructure and will reduce long term cost of maintenance by utilizing a low-impact, underground storm water retention system and permeable pavers. The enhanced landscaping and seating areas at the plaza area enhance the public sidewalk. [2 of 2] Goal Number 4: Promote Unified Human Scale Urban Design 198 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 is maintaining the single vehicular access point shared by the two vacant existing structures. [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 is utilizing a storefront block frontage on the N. 7th Ave. corridor. The new buildings will be installed closer to the street which will provide for a more walkable corridor and more interest and activity for pedestrians. [2 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 utilizes a storefront block frontage. The streetscape will also feature significantly enhanced landscaping elements that will improve the pedestrian experience. [2 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 intent is to create an affordable project with higher quality stemming from distinct, aesthetically pleasing architecture and amenitized site improvements. More specifically building detailing and fenestration will be emphasized to create a unique aesthetic. In order to create a dynamic and distinct streetscape the 7th avenue street frontage is prioritized: providing facade transparency along 7th avenue will exceed UCD requirements, as well as plaza and boulevard areas exceeding landscaping requirements. [1 of 1] Goal Number 5: Support Compatible Urban Density Mixed Land Uses 199 12. Increases Housing Units: The project increases housing units within the District. Submit plans demonstrating an increase in the number of housing units. The project proposes the addition of 96 workforce housing units to the District. 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. Phase 3 of the project is expected to include commercial uses. However, the application does not provide any detail to support this criterion. [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. All of the projects housing units meet the City’s definition of an affordable unit established by the Affordable Housing Ordinance (AHO) with rents that are affordable to households making 80% AMI or below for 50 years. The project includes 17 units at 50% AMI, 29 units at 60% AMI, and 50 units at 80% 200 AMI. Five of the residential units developed as Phase I of the Project must accept Housing Choice Vouchers (HCV) as a form of rental payment for those units targeting 50% AMI or below. [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 7th and Aspen 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 96 units of affordable workforce 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 8.5:1 leverage ratio. [2 of 4] Total Points (32/55) 201 RESOLUTION NO. 5596 RESOLUTION APPROVING A 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. 202 Resolution 5596, Approving a Project in the Midtown URD Known as the 7th and Aspen Project 2 1.03. Boundary Development, LLC (the “Developer”) or affiliated entities, together with Midtown Aspen, LLC, owns certain property in the District (collectively, the “Land”). The Developer, together with Midtown Aspen, LLC and the Human Resource Development Council (“HRDC”), proposes to undertake a project on the Land in two phases. Phase I is or will be owned by Midtown Aspen LLC, a Delaware limited liability company, or an affiliated entity, and consists of the design, engineering and construction of a four-story apartment building containing 46 residential rental units, 29 of which are expected to be affordable at 60% area median income (“AMI”) and 17 of which are expected to be affordable at 50% AMI, together with residential common space and related improvements (“Phase I of the Project”), which will be located on “Lot 4A”. Phase I of the Project will be financed in part with low income housing tax credits awarded or allocated to Midtown Aspen 4 LLLP, a Montana limited liability limited partnership, and Midtown Aspen 9 LLLP, a Montana limited liability limited partnership, which will each own condominium units comprised of the residential housing units upon which such tax credits were awarded or allocated. Phase I of the Project will be subject to a regulatory agreement or similar instrument restricting the use of Lot 4A to affordable housing meeting certain requirements, and will be owned and operated in partnership with HRDC. The second phase of the project is expected to consist of the design, engineering and construction of a four-story apartment building containing 50 residential rental units, all of which are expected to be workforce housing affordable at 80% AMI, together with residential common areas and related improvements (“Phase II of the Project” and, collectively with Phase I of the Project, the “Project”), which will be located on “Lot 6A.” Phase II of the Project will be owned by Developer or an affiliated entity. The under the Act, permissible uses of tax increment and tax increment financing include the acquisition, construction and improvement of public improvements or infrastructure, with “infrastructure” defined to include “workforce housing.” Although “workforce housing” is not defined in the Act, Section 90-6-143, Montana Code Annotated, defines “attainable workforce housing” as housing of a cost that a household earning between 60% and 140% of median household income would spend no more than 30% of gross monthly income to attain. 203 Resolution 5596, Approving a Project in the Midtown URD Known as the 7th and Aspen Project 3 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 (the “Eligible Costs”). The Eligible Costs include costs of the demolition of existing structures on the Land, together with the design, engineering and construction of infrastructure, including water, sewer, storm water, streets, sidewalks, curbs and gutters serving the entire Project and certain costs of the workforce housing, and related improvements, as well as certain fees or charges pertaining to the Project. Section 2 Approval of the Project as an Urban Renewal Project. 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; 204 Resolution 5596, Approving a Project in the Midtown URD Known as the 7th and Aspen Project 4 e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan; and f. the Project is a means to provide safe, sanitary and healthful workforce housing, which constitutes a public purpose and a public use for which tax increment funds may be spent. 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 Interim 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, 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. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21 day of May, 2024. ___________________________________ TERRY CUNNINGHAM Mayor 205 Resolution 5596, Approving a Project in the Midtown URD Known as the 7th and Aspen Project 5 ATTEST: ___________________________________ MICHAEL MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 206 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. 5596 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 May 21, 2024, 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 [___] day of [___________], 2024. (SEAL) __________________________________ MIKE MAAS City Clerk 207 Resolution 5596, Approving a Project in the Midtown URD Known as the 7th and Aspen Project A-1 EXHIBIT A [Form of Development Agreement] 208 DEVELOPMENT AGREEMENT (7th and Aspen) This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of May 21, 2024, by and between BOUNDARY DEVELOPMENT, 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; and 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; and WHEREAS, the Developer or affiliated entities, together with Midtown Aspen, LLC, owns certain property in the District, legally described on Exhibit B hereto (collectively, the “Land”), and together with Midtown Aspen, LLC and the Human Resource Development Council (“HRDC”), Developer proposes to undertake a project on the Land in two phases. Phase I is or will be owned by Midtown Aspen LLC, a Delaware limited liability company, or an affiliated entity, and consists of the design, engineering and construction of a four-story apartment building containing 46 residential rental units, 29 of which are expected to be affordable at 60% area median income (“AMI”) and 17 of which are expected to be affordable at 50% AMI, together with residential common space and related improvements (“Phase I of the Project”), which will be located on “Lot 4A”. Phase I of the Project will be financed in part with low income housing tax credits awarded or allocated to Midtown Aspen 4 LLLP, a Montana limited liability limited partnership, and Midtown Aspen 9 LLLP, a Montana limited liability limited partnership, who will each own condominium units comprised of the residential housing units upon which such tax credits were awarded or allocated. Phase I of the Project will be subject to a regulatory agreement or similar instrument restricting the use of Lot 4A to affordable housing meeting certain requirements, and will be owned and operated in partnership with HRDC; and WHEREAS, the second phase of the project is expected to consist of the design, engineering and construction of four-story apartment building containing 50 residential rental units, all of which are expected to be workforce housing affordable at 80% AMI, together with 209 2 residential common areas and related improvements (“Phase II of the Project” and, collectively with Phase I of the Project, the “Project”), which will be located on “Lot 6A”. Phase II of the Project will be owned by Developer or an affiliated entity. The current budget for the Project is set forth on Exhibit A hereto; and WHEREAS, under the Act, permissible uses of tax increment and tax increment financing include the acquisition, construction and improvement of public improvements or infrastructure, with “infrastructure” defined to include “workforce housing;” and WHEREAS, although “workforce housing” is not defined in the Act, Section 90-6-143, Montana Code Annotated, defines “attainable workforce housing” as housing of a cost that a household earning between 60% and 140% of median household income would spend no more than 30% of gross monthly income to attain; and WHEREAS, the Developer has requested tax increment assistance with respect to certain eligible costs of the Project; and WHEREAS, pursuant to Resolution No. 5596 adopted on May 21, 2024, 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 $3,024,061, 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 demolition of existing structures on the Land, together with the design, engineering and construction of infrastructure, including water, sewer, storm water, streets, sidewalks, curbs and gutters serving the entire Project and certain costs of the workforce housing to be provided by Phase II of the Project and related improvements (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 (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 Lot 6A, which will require the long-term use of that property for workforce housing; and WHEREAS, the City Commission expects to reimburse the Developer for Eligible Costs solely out of 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 and the Eligible Costs. 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. 210 3 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 May 21, 2024, 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. “City Commission” means the governing body of the City. “Developer” means Boundary Development, LLC, a Montana limited liability company, or affiliated entities, 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. 211 4 “Infrastructure Improvements” means the demolition of existing structures on the Land, together with the design, engineering and construction of infrastructure, including water, sewer, storm water, streets, sidewalks, curbs and gutters serving the entire Project and certain costs of the workforce housing, and related improvements. “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 Land or the Project. “Lot 4A” means that portion of the Land on which Phase I of the Project will be constructed. “Lot 6A” means that portion of the Land on which Phase II of the Project will be constructed. “Milestone” or “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. “Phase I of the Project” has the meaning given to it in the recitals. “Phase II of the Project” has the meaning given to it in the recitals. “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 Land in accordance with 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, including cash in lieu of water rights and parkland and impact fees. “Restrictive Covenants” has the meaning given to it in Section 3.12 hereof. 212 5 “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. “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 any other mills that may hereafter be excluded from the calculation of increment by the Act), 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, unusual permitting delays, 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. “Workforce Housing Covenants” has the meaning given to it in Section 3.12 hereof. “Workforce Housing Units” has the meaning given to it in Section 3.12 hereof. 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. 213 6 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: Form of Developer Certificate and Request Exhibit F: Nondiscrimination and Equal Pay Affirmation 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. 5596 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, if available, to reimburse the Eligible Costs in a total amount not to exceed $3,024,061. (d) The City has found and determined that the Project is a means to provide safe, sanitary and healthful workforce housing, which constitutes a public purpose and a public use for which tax increment funds may be spent. 2.2. Developer Representations. The Developer hereby represents as follows: (a) The Developer is a Montana limited liability company, duly formed, validly existing, in good standing and 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. 214 7 (b) The Developer or its affiliated entities have 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, or such liens and encumbrances that may otherwise be approved by the City in writing. The individual condominium units comprised of the residential housing units in Phase I of the Project are owned by Aspen 4 LLLP, a Montana limited liability limited partnership, and Midtown Aspen 9 LLLP, a Montana limited liability limited partnership, and such condominium units are 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, or such liens and encumbrances that may otherwise be approved by the City in writing. (c) The Developer has the financial capability or commitments to complete the Project. (d) 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, 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 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. In addition, if Tax Increment in the District decreases, the City may need to use 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 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 215 8 agrees that if Tax Increment is not available 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 Phase II of the Project, the City agrees to cooperate with the Developer or subsequent owner of Phase II of the Project to remove the Restrictive Covenants from Lot 6A. 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, 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 the Project shall be completed by July 1, 2027, 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 Land 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. 216 9 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 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 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 upon thirty (30) days prior written notice, 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 Phase II of the Project, the City agrees to cooperate with the Developer or subsequent owner of Phase II of the Project to remove the Restrictive Covenants from Lot 6A. 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 217 10 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. 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 218 11 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 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 Phase II of the Project or Lot 6A. 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 Lot 6A. 3.12. Workforce Housing Covenants. The Developer agrees that, as a condition to receiving any reimbursement under this Agreement, the Developer will file a restrictive covenant on Lot 6A, providing that any residential housing units developed on Lot 6A (the “Workforce Housing Units”) will be restricted for a period not less than 50 years for use as workforce housing affordable to households with incomes equal to 80% 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 Lot 6A. The Restrictive Covenants must (i) run with the land, (ii) bind, for a period not less than 50 years from the date of issuance of a certificate of occupancy with respect to Phase II of the Project, the Workforce Housing Units to be used as residential rental units affordable at 80% AMI, with rental prices tied to affordability at 80% AMI, and (iii) provide that a third-party or government entity with experience in managing affordable housing units must manage the rental of the Workforce Housing Units. In addition, the Restrictive Covenants will provide that the Workforce Housing 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 prices of the Workforce Housing 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. The Developer’s covenants described in this Section 3.12 are referred to herein as the “Workforce Housing Covenants.” The Developer acknowledges and agrees that the Workforce Housing Covenants are fundamental to the City’s agreements hereunder. The Parties acknowledge that, as development proceeds at Lot 6A, it may be necessary or desirable to record 219 12 other instruments to implement the Workforce Housing Covenants and provide for the affordability of the Workforce Housing 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. Housing Choice Vouchers and Phase I of the Project. Five of the residential units developed as Phase I of the Project must accept Housing Choice Vouchers (HCV) as a form of rental payment for those units targeting 50% AMI or below. In connection with the five units accepting HCV as a form of rental payment, the property owner with respect to Phase I of the Project must participate in the HCV program and comply with all program requirements, including but not limited to rent reasonableness standards. In the event that the rent charged to a tenant receiving HCV assistance exceeds the applicable payment standard established by the U.S. Department of Housing and Urban Development (HUD), the rent will be adjusted to the Fair Market Rents (FMRs) or payment standard set by HUD for tenants utilizing the HCV program. City Undertakings. Subject to satisfaction of all conditions in Section 5 below, and solely from Tax Increment, 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 $3,024,061). 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. Conditions and Procedure. (a) The Developer shall complete or satisfy Milestones by the applicable Milestone Dates, as such dates may have been extended pursuant to Section 3.4 hereof. (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 reimbursement (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 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 with 220 13 respect to Lot 6A and have not been modified, amended or rescinded other than with the prior written consent of the City. (e) The Developer must provide evidence satisfactory to the City that a regulatory agreement or similar instrument restricting the use of Lot 4A to affordable housing has been recorded with the Gallatin County Clerk and Recorder’s Office. (f) The Developer shall have been issued a certificate of occupancy for the Project. (g) When the above conditions have been met, the Developer shall submit to the Director of Economic Development a certificate substantially in the form attached hereto as Exhibit E, together with such supporting documentation as may be requested by the City. 5.2. Failure to Satisfy Conditions. If any of the conditions described in Section 5.1 are not satisfied in the determination of the City, the City shall have no obligation to reimburse the Developer, 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 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 Project so as to be able at all times to pay promptly and when due all property taxes levied with respect to 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. 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 221 14 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 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 222 15 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. (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 5.2 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. 223 16 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 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 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 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 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, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing or any other provision herein, the Parties acknowledge and agree that the investor limited partner with respect to Phase I of the Project may require certain amendments or modifications to this Agreement, which may include the assignment by Developer of this Agreement to Midtown Aspen LLC, a Delaware limited liability company, or another affiliate of Developer in relation to the tax credit financing for Phase I of the Project. 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, 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 224 17 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: Boundary Development, LLC Attention: Joseph Walsh 233 E. Main Street, Suite 404 Bozeman, MT 59715 Email: joe@boundarydev.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. 225 18 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 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. 226 19 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: ______________________________ Title: City Manager [Signature Page to Development Agreement] 227 20 BOUNDARY DEVELOPMENT, LLC, a Montana limited liability company By: Name: Joseph Walsh Title: Authorized Signatory [Signature Page to Development Agreement] 228 A-1 EXHIBIT A PROJECT COSTS 229 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE LAND 230 C-1 EXHIBIT C ELIGIBLE COSTS 231 D-1 EXHIBIT D MILESTONES MILESTONE MILESTONE DATE PHASE I OF THE PROJECT: Site Plan Submittal to the City Complete Development Building Permit Submittal 7/1/2025 Start of Development Construction 12/31/2025 Completion of Development Construction (occupancy) 7/1/2027 PHASE II OF THE PROJECT: Site Plan Submittal to the City Complete Development Building Permit Submittal 7/1/2025 Start of Development Construction 12/31/2025 Completion of Development Construction (occupancy) 7/1/2027 232 E-1 EXHIBIT E FORM OF DEVELOPER CERTIFICATE AND REQUEST TO: City of Bozeman, Montana FROM: Boundary Development, LLC (the “Developer”) SUBJECT: Request for Reimbursement This Developer Certificate is delivered in accordance with the Development Agreement between the Developer and the City of Bozeman, Montana, dated as of May 21, 2024 (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 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. 233 E-2 Based on the attached invoices, the Developer hereby requests reimbursement for the Eligible Costs in the amount of $[_______].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. Dated: _____________, 20__ Boundary Development, LLC By: Authorized Developer Representative 1 Lesser of $3,024,061 or total cost. 234 F-1 EXHIBIT F 235 G-1 EXHIBIT G [Form of Affordable Housing Restrictive Covenant and Agreement] 236 7th & Aspen Mixed-Use7th & Aspen Mixed-Use MARCH 2024 Phase 1 & 2 TIF Assistance Request ARCHITECTURE & DESIGN 237 PART 1PART 1 Property, owner, & applicant information 1 Company Profile & Business Plan 2 TIF Request 3 Project Detail, Signed Application 4 Project Narrative 5 Project Timeline 7 Criteria for TIF assistance 8 Vicinity Maps, Phasing, & Site Plans 12 Existing Site Photos 15 Renderings, Floor plans, & Elevations 16 PART 2PART 2 Sources and uses of funds 22 Development budget 23 TIF eligible expenses 24 CONTENTS 238 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 11 PROPERTY INFORMATION PROPERTY ADDRESS:PROPERTY ADDRESS: LEGAL DESCRIPTION: LEGAL DESCRIPTION: PROPERTY GEO CODES: PROPERTY GEO CODES: COUNTY TAX ID #:COUNTY TAX ID #: 654 & 706 N. 7th Avenue, Bozeman, MT North Seventh Addition to Bozeman Subdivision S01, T02 S, R05 E, Block 1, Lot 4A & 6A Plat E-21-D Parcel 1: 06-0798-01-4-05-37-0000 Parcel 2: 06-0798-01-4-05-38-0000 Parcel 1: RGG6685 Parcel 2: RGG6268 PROPERTY OWNER / APPLICANT INFORMATION PROPERTY OWNER & DEVELOPER:PROPERTY OWNER & DEVELOPER: APPLICANT’S PRIMARY CONTACT: APPLICANT’S PRIMARY CONTACT: DEVELOPMENT PARTNER:DEVELOPMENT PARTNER: Midtown 654 LLC / Boundary Development 233 E. Main St., Suite 404 Bozeman, MT 59715 Joseph Walsh, Developer Boundary Development 233 E. Main St., Suite 404 Bozeman, MT 59715 503.784.9411 joe@boundarydev.com HRDC Lila Fleishman Community Development Director HRDC District IX 32 S. Tracy Ave. Bozeman, MT 59715 (406) 585-4943 239 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 22 BUSINESS LOCATION:BUSINESS LOCATION: YEAR BUSINESS ESTABLISHED: YEAR BUSINESS ESTABLISHED: TYPE OF BUSINESS: TYPE OF BUSINESS: COMPANY PROFILE Bozeman, MT 2020 Boundary Development is a real estate development company BUSINESS PLAN Boundary Development and HRDC (“Developers”) are currently planning the development of a 96-unit affordable and middle-income project in the heart of Bozeman, MT at 654 & 706 N. 7th Avenue (the “Project”). The Project is located in the Midtown Urban Renewal District, an area that the City has designated as a Tax Increment Finance District in order to accelerate growth in a walkable, urban location close to downtown. Our business plan is to develop high-quality, functional and design-driven units which will serve a range of lower-income and middle- income residents in Bozeman for decades to come. Bozeman has an acute housing shortage and nearly all new developments cater to a more affluent population, furthering the crisis for the majority of working residents. The project will include two buildings: (1) A 46-unit affordable housing building with rents restricted to 50 and 60% of AMI and (2) a 50-unit building with rents restricted to 80% of AMI. The buildings will feature studio, one, two, and three-bedroom units and will be nearly identical, creating cost efficiency for both soft and hard costs. The purpose of the TIF assistance program is to encourage desirable development projects, as well as assist projects that would not otherwise occur “but for” the assistance provided through tax increment financing. As illustrated by our analysis, the Project is not feasible without the support of the TIF program. If approved, the Project will commence in the fall of 2024 and will be completed in mid-2025. The benefits of the Project can be summarized as follows: (1) Creation of 96 new housing units at 20-50% below market rates, including studio, one, two and three bedroom units. (2) New residents added to the neighborhood, supporting local businesses and accelerating growth of the Midtown Urban Renewal District (3) Dozens of new jobs created during construction and on a permanent basis. (4) Additional tax revenue to the City, supporting the Tax Increment Finance District. 240 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 33 Our TIF request is comprised of two tiers. In the first tier, we seek upfront lump-sum financing to pay for CILP and Impact Fees totaling $824,061 which is comprised of $43,037 of CILP fees and $781,023 of impact fees. These fee amounts are calculated using the city calculators and are based on unit count and site area. For the second tier, we are requesting $2,200,000 in take-out financing, which is comprised of $1,092,451 for off- site infrastructure, $907,549 for vertical construction and $200,000 of contingency. TIF REQUEST [1] 10% of offsite infrastructure and vertical costs TIF ELIGIBLE FUNDS INFRASTRUCTURE $1,092,451 VERTICAL CONSTRUCTION $907,549 CIL FEES $43,037 IMPACT FEES $781,023 CONTINGENCY [1]$200,000 Total $3,024,061 241 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 44 PROPERTY STATUS: PROPERTY STATUS: TYPE OF ASSISTANCE SOUGHT:TYPE OF ASSISTANCE SOUGHT: VALUE OF TIF ASSISTANCE SOUGHT:VALUE OF TIF ASSISTANCE SOUGHT: WILL THIS PROJECT PROCEED IF TIF WILL THIS PROJECT PROCEED IF TIF ASSISTANCE IS NOT GRANTED?:ASSISTANCE IS NOT GRANTED?: PROJECT DETAIL Existing vacant 1-story commerical buildings (2 total+garage) Infrastructure, Demolition, Impact Fees, CIL fees, Vertical Construction $3,024,061 This project will not move forward as presently designed. Midtown TIF Assistance Application Part 1 Page 3 Please attach a list of all other property owners, business partners, developers and/or investors associated with this project, with the above information provided for each. This application must be signed by both the applicant(s) and the property owner(s) (if different). I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to participate in the Midtown Urban Renewal District TIF assistance program. I (we) understand that failure to comply with the terms of the TIF assistance program may result in revocation of an award. I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority and must receive all required approvals prior to commencing the work. I (we) understand if approved for TIF assistance, the work to be performed must also be in accordance with TIF assistance program procedures and the general design guidelines for the District, as well as the specific plans approved for the project. I (we) acknowledge that the City has an Impact Fee Program and impact fees may be assessed for my project. Further, I (we) agree to grant City personnel and other review agency representative’s access to the subject site during the course of the review process (Section 38.34.050, BMC). Applicant (s) (Print Name) Signature of Applicant Date Property Owner(s) (Print Name) Signature of Property Owner Date SIGNED APPLICATION 242 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 55 PROJECT NARRATIVE The 7th & Aspen Mixed-Use project is a phased master plan consisting of residential and commercial development located Southeast of the intersection of 7th Avenue and Aspen street in the Midtown Urban Redevelopment District. The master plan consists of three phases each containing a single building on each respective parcel. This TIF request addresses Phase 1 and 2 onlyThis TIF request addresses Phase 1 and 2 only located on the southern lots 4A and 6A. Both parcels zoned B-2M and the underlying land use is designated “Community Commercial Mixed Use”. Phase 1Phase 1 of development consists of a single four-story apartment building containing 46 affordable rental dwellings on the South parcel (lot 4A). Phase 2Phase 2 consists of a single four-story apartment building containing 50 affordable rental dwellings on the South parcel (lot 6A). The eventual build-out of Phase 3 consists of a single speculative seven-story mixed-use building containing structured parking, commercial space, and residential dwelling units located on the Northern parcel (lots 1-3). However, in the interim condition, this parcel is anticipated to contain adequate surface parking for users of phase 1 & 2 with approximately 80 spaces. This parking will be integrated into the phase 3 building or a separate nearby garage. Site improvements include but are not limited to surface parking, vehicular and pedestrian circulation, plaza and other outdoor open spaces containing spaces for recreation and outdoor seating. PROPOSED USESPROPOSED USES PHASE 1 (LOT 4A)PHASE 1 (LOT 4A) consists of a single four-story multi-family residential building containing 46 affordable dwelling units for rent and residential common areas. Units are comprised of a mix of studio, one, two, and three-bedroom units. No commercial space is proposed. 100% of the dwelling units will be affordable, with 29 units with rental rates at 60% of AMI thresholds and 17 units at 50% of AMI thresholds. PHASE 2 (LOT 6A)PHASE 2 (LOT 6A) consists of a single four-story multi-family residential building containing 50 affordable dwelling units for rent and residential common areas. No commercial space is proposed. Units are comprised of a mix of one, two, and three-bedroom units. 100% of the dwelling units will be affordable, with all 50 affordable dwelling units for rent at 80% of AMI thresholds. TOTAL PHASE 1 & 2TOTAL PHASE 1 & 2 dwelling unit mix includes: - (4) Studio Units @ 510 SF - (60) one-bedroom Units @ 530 SF - (22) two-bedroom Units @ 775 SF - (10) three-bedroom Units @ 1,010 SF 243 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 66 PROJECT NARRATIVE CONSTRUCTION INFORMATIONCONSTRUCTION INFORMATION DEMOLITIONDEMOLITION will be required for the current existing buildings on each parcel. Demolition of the existing buildings as well as existing infrastructure and site clearing on Phase 1 & 2 parcels is anticipated. Demolition of the existing structure on the future Phase 3 parcel is TBD, however it is anticipated sometime during construction of Phase 1 & 2 in order to construct the interim surface parking at this location. PHASINGPHASING is anticipated as follows: Construction of Phase 1 will commence first, with Phase 2 anticipated to follow quickly thereafter with Phase 1 & 2 likely to be constructed simultaneously in a staggered fashion. Phase 3 (not included in this request) is a future phase and construction commencement is TBD. The interim condition of Phase 3 inclusive of surface parking is anticipated to be completed concurrently with the completion of Phase 1 & 2. See the included phasing diagram and project timeline below for more detail. PUBLIC BENEFITPUBLIC BENEFIT In addition to the responses to specific criteria included below, this project provides immense public benefit for a multitude of reasons. First and foremost, this development will provide almost 100 units of much-needed affordable housing at a central location in Bozeman. These units will be obtainable to a broader demographic given both the mixture of unit types offered and the range in rents offered based on multiple AMI thresholds. Futhermore, this valuable, high-density, attainable housing will be located in the heart of the Midtown District: placing tenants close to commerce and services. This mixed-use urban pattern creates a vibrant neighborhood which fosters walkability, multi-modal transporatation, and overall social equity. CONCEPT REVIEW WAIVER The city has approved a concept review waiver request for this project as a result of a pre-application meeting. A copy of this approved request as well as the pre-application comments are included for reference. 244 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 77 PROJECT TIMELINE LAND ACQUISITION PHASE 1LAND ACQUISITION PHASE 1 JANUARY 2023JANUARY 2023 PRE-APPLICATION MEETINGPRE-APPLICATION MEETING JANUARY 2024JANUARY 2024 SITE PLAN SUBMITTALSITE PLAN SUBMITTAL APRIL 2024APRIL 2024 LAND ACQUISITION PHASE 2LAND ACQUISITION PHASE 2 MAY 2024MAY 2024 SITE PLAN ENTITLEMENT (ANTICIPATED)SITE PLAN ENTITLEMENT (ANTICIPATED)JUNE 2024JUNE 2024 DEMOLITION (PHASE 1 &2)DEMOLITION (PHASE 1 &2)AUGUST AUGUST 20242024 CONSTRUCTION START PHASE 1CONSTRUCTION START PHASE 1 SEPTEMBER 2024SEPTEMBER 2024 CONSTRUCTION START PHASE 2CONSTRUCTION START PHASE 2 OCTOBER 2024OCTOBER 2024 CONSTRUCTION COMPLETION PHASE 1CONSTRUCTION COMPLETION PHASE 1 MARCH 2026MARCH 2026 CONSTRUCTION COMPLETION PHASE 2CONSTRUCTION COMPLETION PHASE 2 APRIL 2026APRIL 2026 245 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 88 4/4 CRITERIA FOR TIF ASSISTANCE PROMOTE ECONOMIC DEVELOPMENTPROMOTE ECONOMIC DEVELOPMENT TAX GENERATION: TAX GENERATION: This development will greatly increase the taxable value within the district compared to the current condition. The Project is estimated to generate between $65,000 and $85,000 of real estate tax per year. The 46-unit affordable building is property tax-exempt given it will be owned in partnership with HRDC, a non-profit organization. We estimate that the 50-unit middle-income building will appraise between $8.0 and $10.0 MM or $160k - $200k per unit. The Project will also provide the benefit of adding 150+ full time residents to the neighborhood, supporting businesses within the TIF district and future development. ELIMINATION OF BLIGHT: ELIMINATION OF BLIGHT: The site currently contains underdeveloped commercial buildings, two of which are aging and at risk of falling into disrepair. These structures contain low-density, single-story structures which will soon be incompatible with the proposed pattern of growth in the midtown district. Once constructed, these underutilized buildings will be replaced with new multistory residential buildings consistent with the district. EMPLOYMENT GENERATION: EMPLOYMENT GENERATION: This development will create many jobs in both the near and long term. The design and construction of two multi-story buildings involves many local professionals and trades people for two to three years. Once complete the apartments will require a workforce to manage, maintain, and service them for the entire lifespan of the rentals. IMPROVE MULTI-MODAL TRANSPORTATIONIMPROVE MULTI-MODAL TRANSPORTATION FACILITATES PUBLIC HEALTH AND MOBILITY:FACILITATES PUBLIC HEALTH AND MOBILITY: This development is designed with ADA accessibility throughout the site and areas as required by all applicable codes. Furthermore, this project exceeds housing accessibility requirements by providing eight fully accessible (per ANSI 117.1) dwelling units between the two buildings. 1.1. 2.2. 3.3. 4.4. 4/4 3/3 1/1 246 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 99 CRITERIA FOR TIF ASSISTANCE REDUCES RESOURCE DEMAND:REDUCES RESOURCE DEMAND: This project promotes the use of transit as there are three transit stops within 800 feet of this development. PROMOTES ACTIVE TRANSPORTATIONPROMOTES ACTIVE TRANSPORTATION This development promotes bicycling as an active transportation option by providing covered bike parking, and is uniquely situated to provide easy access to Westlake Park and story mill trails. IMPROVE, MAINTAIN, AND SUPPORT INNOVATION IN INFRASTRUCTUREIMPROVE, MAINTAIN, AND SUPPORT INNOVATION IN INFRASTRUCTURE INFRASTRUCTURE IMPROVEMENTS:INFRASTRUCTURE IMPROVEMENTS: This project promotes innovation in infrastructure and will reduce long term cost of maintenance by utilizing a low-impact, underground storm water retention system and permeable pavers. The enhanced landscaping and seating areas at the plaza area enhance the public sidewalk. PROMOTE UNIFIED HUMAN SCALE URBAN DESIGNPROMOTE UNIFIED HUMAN SCALE URBAN DESIGN REDUCE VEHICULAR ACCESS:REDUCE VEHICULAR ACCESS: While this project does not propose to reduce access points, the design proposed allows parking and access to share the single existing vehicular access point for both buildings instead of providing two access points (one per each building). ENHANCES NORTH 7TH AVE ENTRYWAY CORRIDOR:ENHANCES NORTH 7TH AVE ENTRYWAY CORRIDOR: This project enhances the Entryway corridor by orienting the primary facades of both buildings towards 7th. The main entrances, lobbies, and indoor tenant community areas are placed along the street to place and promote activity along this frontage. Additionally, the street-facing West facades of both buildings are enhanced aesthetically with unique building features to emphasize building entries and provide visual interest along the corridor. 1/1 2/2 2/2 1/2 2/2 6.6. 5.5. 7.7. 8.8. 9.9. 247 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1010 CRITERIA FOR TIF ASSISTANCE ENHANCES THE PEDESTRIAN EXPERIENCE:ENHANCES THE PEDESTRIAN EXPERIENCE: This project enhances the pedestrian experience along 7th by utilizing storefront block frontage standards for both buildings. At the ground level, both buildings contain articulated entries for a wider, more dynamic building entry as well as transparency exceeding the BMC standards. Furthermore, enhanced boulevard landscaping and hardscaping coupled with flanking plaza containing seating and landscaping are provided to provide a dynamic pedestrian space. QUALITY OF DEVELOPMENT AND OVERALL AESTHETICSQUALITY OF DEVELOPMENT AND OVERALL AESTHETICS The design intent is to create an affordable project with higher quality stemming from distinct, aesthetically pleasing architecture and amenitized site improvements. More specifically building detailing and fenestration will be emphasized to create a unique aesthetic. In order to create a dynamic and distinct streetscape the 7th avenue street frontage is prioritized: providing facade transparency along 7th avenue will exceed UCD requirements, as well as plaza and boulevard areas exceeding landscaping requirements. SUPPORT COMPATIBLE URBAN DENSITY MIXED LAND USESSUPPORT COMPATIBLE URBAN DENSITY MIXED LAND USES INCREASES HOUSING UNITS:INCREASES HOUSING UNITS: Once complete, this project will provide 96 affordable dwelling units of housing for rent at 50%, 60%, and 80% AMI thresholds. As there is currently no housing at this location all units will be in addition to the existing condition. MIX OF USES:MIX OF USES: This project does not propose any commercial development, however Phase 3 of the overall master plan of which this project is a part of is anticipated to contain significant commercial area to compliment the housing provided with this project. 2/2 6/6 6/6 10.10. 11.11. 12.12. 13.13. 2/2 248 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1111 TOTAL POINTS: 49/52 CRITERIA FOR TIF ASSISTANCE SHARED PARKING AMONG COMPATIBLE USES:SHARED PARKING AMONG COMPATIBLE USES: This development provides a temporary parking lot on the northern parcel which may be used by tenants of this development as well as public users of the Aspen/ Festival Street establishments. The future Phase of this northern parcel is anticipated to incorporate parking into the speculative building. PROVIDES AFFORDABLE HOUSING UNITS:PROVIDES AFFORDABLE HOUSING UNITS: This project will provide 96 affordable dwelling units for rent, 46 (48%) of which will be offered at or below 70% AMI thresholds, with the remaining units (50 or 51%) offered at 80% AMI thresholds. All units will meet the city’s affordable eligibility guidelines. All units offered will be contractually obligated, by way of a written plan, to assure ongoing affordability to the affordable housing agency for a period of not less than 20 years. OVERALL DISTRICT RELEVANCEOVERALL DISTRICT RELEVANCE RELEVANCE TO THE MIDTOWN URBAN RENEWAL PLAN:RELEVANCE TO THE MIDTOWN URBAN RENEWAL PLAN: This development aligns with the goals of the Midtown Urban renewal Plan, primarily and generally with the “….emphasis on new, urban density housing construction…” (MURD Action Plan, Page 1). This project supports compatible urban density mixed use land uses; and will improve multi-modal transportation: by placing quality, dense, affordable housing in the middle of the district within close proximity to many goods and services, and open spaces. Furthermore this project promotes unified, human scale urban design with it’s priority on enhancing the streetscape. PUBLIC / PRIVATE FUNDS INVESTMENT RATIO:PUBLIC / PRIVATE FUNDS INVESTMENT RATIO: The investment of the requested public funding results in a leverage ratio of 8.5:1 for multifamily. ($25,674,728 Private / $3,024,061 Public). 1/2 6/6 5/5 3/4 14.14. 15.15. 16.16. 17.17. 249 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1212 VICINITY MAP VICINITY MAP 250 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1313 XXX NG NGNG OHP OHPOHP WWW SS SSSS WFS WFSWFS BP BPBP LLIINNEE TTYYPPEE LLEEGGEENNDD PROPERTY LINE SETBACK LINE EASEMENT LINE DEMOLISH LINE FENCE GAS LINE OVERHEAD POWER LINE WATER LINE SEWER LINE FIRE SERVICE LINE BURIED POWER LINE 1. ALL NOTES CODE REQUIRMENTS REDERENCE THE BOZEMAN MUNICIPAL CODE (BMC) 2. REFER TO CIVIL DRAWINGS FOR SITE GRADING, UTILITY, STORMWATER, AND SITE ENGINEERING DETAILS 3. REFER TO LANDSCAPE DRAWINGS FOR LANDSCAPE AND PLANTING DETAILS AND LOCATIONS 4. "TYPICAL" OR "TYP." MEANS IDENTICAL FOR ALL SIMILAR CONDITIONS, UNLESS NOTED OTHERWISE SSIITTEE PPLLAANN NNOOTTEESS SSUURRFFAACCEE PPAARRKKIINNGG(23 SPACES)N. 7TH AVEPPRROOPPOOSSEEDD BBUUIILLDDIINNGG --PPHHAASSEE 11LLEEVVEELL 11 FFOOOOTTPPRRIINNTT:: 99,,008844 SSFFTTOOTTAALL SSQQUUAARREE FFOOOOTTAAGGEE:: 3377,,339900 SSFF((44 SSTTOORRYY,, 4466 DDWWEELLLLIINNGG UUNNIITTSS)) W. ASPEN ST S 1(ADA)2 3 4 5 6 7 10UNLOAD AREA 8 9 11 EXISTING ADJACENTBUILDING EXISTING ADJACENTBUILDING SSUURRFFAACCEE PPAARRKKIINNGG --PPHHAASSEE 33 ((IINNTTEERRIIMM))FFUUTTUURREE BBUUIILLDDIINNGG ((TTBBDD)) --PPHHAASSEE 33SSEEEE SSEEPPAARRAATTEE AAPPPPLLIICCAATTIIOONN EXISTING PARKING / DRIVE EXISTING PARKING / DRIVE EXISTING PARKING / DRIVE97' -0" R.O.W.DESIGNATED BLOCK FRONTAGE: MIXED50' -0" R.O.W.DESIGNATED BLOCK FRONTAGE: STOREFRONT PPRROOPPOOSSEEDD BBUUIILLDDIINNGG --PPHHAASSEE 22 LLEEVVEELL 11 FFOOOOTTPPRRIINNTT:: 99,,008844 SSFFTTOOTTAALL SSQQUUAARREE FFOOOOTTAAGGEE:: 3377,,339900 SSFF((44 SSTTOORRYY,, 5500 DDWWEELLLLIINNGG UUNNIITTSS)) EXISTING PARKING / DRIVE AA111111 SSiimm 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA12 7TH & ASPENPHASE 1 MASTER SITE PLAN -WORKING TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH KKEEYYNNOOTTEESS N 1" = 30'-0"AA112211 PHASING DIAGRAM NNoo..DDeessccrriippttiioonn DDaattee PHASING / MASTER SITE PLAN APPROX. 80 SPACES (29 TOTAL SPACES W/ STREET PARKING) 251 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1414 XXX NG NGNG OHP OHPOHP WWW SS SSSS WFS WFSWFS BP BPBPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPWWWWWWSSSSSSSSSSSSSSSSSS SS SSSS SS SS WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX LLIINNEE TTYYPPEE LLEEGGEENNDD PROPERTY LINE SETBACK LINE EASEMENT LINE DEMOLISH LINE FENCE GAS LINE OVERHEAD POWER LINE WATER LINE SEWER LINE FIRE SERVICE LINE BURIED POWER LINE 1. ALL NOTES CODE REQUIRMENTS REDERENCE THE BOZEMAN MUNICIPAL CODE (BMC) 2. REFER TO CIVIL DRAWINGS FOR SITE GRADING, UTILITY, STORMWATER, AND SITE ENGINEERING DETAILS 3. REFER TO LANDSCAPE DRAWINGS FOR LANDSCAPE AND PLANTING DETAILS AND LOCATIONS 4. "TYPICAL" OR "TYP." MEANS IDENTICAL FOR ALL SIMILAR CONDITIONS, UNLESS NOTED OTHERWISE SSIITTEE PPLLAANN NNOOTTEESS 2A30 / / 2A31 / / 1A30 / / - / / 1A31 / / SSUURRFFAACCEE PPAARRKKIINNGG(23 SPACES) MMAAIINN EENNTTRRYY N. 7TH AVEPPRROOPPOOSSEEDD BBUUIILLDDIINNGG --PPHHAASSEE 11LLEEVVEELL 11 FFOOOOTTPPRRIINNTT:: 99,,008844 SSFFTTOOTTAALL SSQQUUAARREE FFOOOOTTAAGGEE:: 3377,,339900 SSFF((44 SSTTOORRYY,, 4466 DDWWEELLLLIINNGG UUNNIITTSS)) EXISTING TELEPHONE POLE 97' -0" R.O.W.8' - 0" 8' - 0"(TYP.)9' - 0" T S EXISTING SEWER EASEMENT 10' - 0" 1(ADA)UNLOAD AREA FRONT SETBACK5' - 0" SIDEWALK11' - 1" REAR SETBACK10' - 0"6' - 1 1/2"5' - 0"11' - 5 1/2" PHASE 3 BUILDING FOOTPRINT(SEE MASTER SITE PLAN) F EXISTING FIRE HYDRANT 6' - 7 1/2"EENNTTRRYY CCOOMMMMUUNNIITTYY RROOOOMM(PRIVATE RESIDENTIAL OPEN SPACE)554 SF LLOOBBBBYY (PRIVATE RESIDENTIAL OPEN SPACE)83 SF EXISITING CURB / GUTTER TO REMAINREPAIR / PATCH AS NEEDED MMAAIILL 5' - 0"5' - 0"EASEMENT20' - 0"SIDE SETBACK5' - 0"EXISTING POWER LINES TO REMAIN 6' - 3" 11' - 8" 8' - 2 1/2"14' - 2"4' - 6"17' - 4"4' - 6"17' - 4"4' - 6 1/2"17' - 4" 1' - 5 1/2" 17' - 7"8 1/2"23' - 0"8' - 5"17' - 5"4' - 4 1/2"17' - 5"4' - 5"17' - 5"8' - 4 1/2"24' - 0" EXISTING PARKING / DRIVE EXISTING PARKING / DRIVE DESIGNATED BLOCK FRONTAGE: MIXEDPPLLAAZZAA(PRIVATE RESIDENTIAL OPEN SPACE)907 SF (PRIVATE RESIDENTIAL OPEN SPACE)2,524 SF GGRRIILLLL // PPIICCNNIICC TTAABBLLEESS BBOOCCCCEE CCOOUURRTT(PRIVATE RESIDENTIAL OPEN SPACE)3,914 SF RECYCLING TOTE RECYCLING TOTE 8 YD. DUMPSTER ST REET VISIO N TRIAN GLE PER 38.400.100.C STREET VISION TRIANGLEPER 38.400.100.C2 34 5 6 7 108 9 11 12 13 14 15 16 17 19 20 2118 22 23 RRIISSEERR RROOOOMM ((EENNTTRRYY)) RRIISSEERR RROOOOMM ((EENNTTRRYY))(TYP.)17' - 11 1/2"DRIVE AISLE23' - 5 1/2"8"18' - 6"22' - 0"6' - 8 1/2"7' - 0"MMAAIINN EENNTTRRYY EENNTTRRYY PPLLAAZZAA(PRIVATE RESIDENTIAL OPEN SPACE)944 SF 6' - 2 1/2"5' - 0"11' - 2" SIDEWALK11' - 2 1/2" FRONT SETBACK5' - 0" 42' - 5"6' - 6"9"23' - 0"8' - 5"17' - 5"4' - 5 1/2"17' - 5"4' - 5"17' - 5"8' - 4 1/2"24' - 0" 6' - 3" 11' - 8" 8' - 2 1/2"14' - 2" 4' - 6"17' - 4"4' - 6"17' - 4"4' - 6 1/2"17' - 4"7' - 0"1' - 5 1/2" 17' - 7" PPRROOPPOOSSEEDD BBUUIILLDDIINNGG --PPHHAASSEE 22LLEEVVEELL 11 FFOOOOTTPPRRIINNTT:: 99,,008844 SSFFTTOOTTAALL SSQQUUAARREE FFOOOOTTAAGGEE:: 3377,,339900 SSFF((44 SSTTOORRYY,, 5500 DDWWEELLLLIINNGG UUNNIITTSS)) 34353637383940414243444546 3132 33 4748495051525354555657585960616263646566 676869 22 23 24 25 29282726 70 74 75 76 807978 12345678910 11 12 13 14 15 16 17 18 19 20 21 30 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 CCOOMMMMUUNNIITTYY RROOOOMM (PRIVATE RESIDENTIAL OPEN SPACE)554 SF LLOOBBBBYY(PRIVATE RESIDENTIAL OPEN SPACE)83 SF MMAAIILL EXISTING PARKING / DRIVE EXISTING PARKING / DRIVE PROPOSED TRANSFORMER 7771 72 73 5' - 0"4' - 0"6' - 0"34' - 0" CCOORRNNHHOOLLEE BBOOAARRDDSS REAR SETBACK 10' - 0"SIDE SETBACK5' - 0"3' - 0" 149' - 11"SIDE SETBACK5' - 0"SIDE SETBACK5' - 0"PROPERTY LINE PROPERTY LINEPROPERTY LINEPROPERTY LINE PROPERTY LINE PROPERTY LINEPROPERTY LINEST 28 ST 26 ST 26 ST 26 ST 26 ST 26 ST 26 ST 23 ST 06 ST 06 ST 06 ST 06 ST 06 ST 06 ST 06 ST 06 ST 26 ST 26 ST 26 ST 26 ST 26 ST 26 ST 26ST 26ST 26ST 26ST 26 ST 26ST 26ST 26ST 26ST 26 ST 38 ST 38 ST 38 (TYP.)5' - 0"(TYP.)2' - 0"ST 06 RF 31 RF 31 RF 31 RF 31 ST 38 ST 38 AA11331133 SSiimm AA11331111 SSiimm ST 24 ST 24 ST 16 -------- -------- --------ST 06ST 06ST 06ST 06ST 06214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA11 7TH & ASPENPHASE 1 ENLARGED SITE PLAN TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH KKEEYYNNOOTTEESS RF 31 ROOF ABOVEST 06 PLANTER - SEE LANDSCAPE.ST 16 HANDICAPPED PARKING SIGN.ST 23 ELECTRICAL TRANSFORMER.ST 24 ELECTRICAL SERVICE & METER - COORD. LOCATION W/ LOCAL UTILITY PROVIDER & MEP.ST 26 PRIVACY FENCE - SEE A13ST 28 REFUSE ENCLOSURE - SEE A13ST 38 BIKE RACK - SEE A13 N 1/16" = 1'-0"AA111111 ENLARGED SITE PLAN -PHASE 1 & 2 NNoo..DDeessccrriippttiioonn DDaattee SITE PLAN (PHASE 1 & 2) (29 TOTAL SPACES W/ STREET PARKING) 252 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1515 SITE PHOTOS EXISTING SITEEXISTING SITE View from 7th Ave looking Northeast View from 7th Ave looking Southeast View from 7th Ave looking Southeast 253 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1616 VIEW FROM 7TH AVE LOOKING NORTH EAST VIEW FROM 7TH AVE LOOKING EAST PHASE 1 SOUTH ELEVATION FROM PARKING AREA (MIRRORED TO PHASE 2 NORTH ELEVATION) VIEW FROM 7TH AVE LOOKING SOUTH EAST PRELIMINARY RENDERINGS 254 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1717 T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" H J T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" GFEDACB I T.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"M1 CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGG M2 NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3 CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBD M4 AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH: M5 M6 M7 SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING) EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDD MMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING) MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACK TTRRIIMM?? FINISH: (MATCH SIDING) T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" H J T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" GFEDACB I T.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"214 East Mendenhall St. Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA30 7TH & ASPENPHASE 1 BUILDING ELEVATIONS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 01.11.2024 SAH 1/8" = 1'-0"AA330011 SOUTH ELEVATION -PHASE 1 KKEEYYNNOOTTEESS 1/8" = 1'-0"AA330022 NORTH ELEVATION -PHASE 1 NNoo..DDeessccrriippttiioonn DDaattee M1 CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGG M2 NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3 CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBD M4 AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH: M5 M6 M7 SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING) EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDD MMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING) MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACK TTRRIIMM?? FINISH: (MATCH SIDING) T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" 1 T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" 23564 T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" 1 T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" 2 3 5 64 T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"214 East Mendenhall St. Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA31 7TH & ASPENPHASE 1 BUILDING ELEVATIONS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 01.11.2024 SAH KKEEYYNNOOTTEESS 1/8" = 1'-0"AA331111 EAST ELEVATION1/8" = 1'-0"AA331122 WEST ELEVATION WWEESSTT EELLEEVVAATTIIOONN --SSTTOORREEFFRROONNTT BBLLOOCCKK FFRROONNTTAAGGEELEVEL 1 OPAQUE: LEVEL 1 TRANSPARENT: RESIDENTIAL OPAQUE: RESIDENTIAL TRANSPARENT: 178 SF (45%)220 SF (56%) NNoo..DDeessccrriippttiioonn DDaattee M1 CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGG M2 NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3 CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBD M4 AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH: M5 M6 M7 SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING) EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDD MMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING) MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACK TTRRIIMM?? FINISH: (MATCH SIDING) T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" 1 T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" 23564 T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" 1 T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" 2 3 5 64 T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"214 East Mendenhall St. Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA31 7TH & ASPENPHASE 1 BUILDING ELEVATIONS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 01.11.2024 SAH KKEEYYNNOOTTEESS 1/8" = 1'-0"AA331111 EAST ELEVATION1/8" = 1'-0"AA331122 WEST ELEVATION WWEESSTT EELLEEVVAATTIIOONN --SSTTOORREEFFRROONNTT BBLLOOCCKK FFRROONNTTAAGGEELEVEL 1 OPAQUE: LEVEL 1 TRANSPARENT: RESIDENTIAL OPAQUE: RESIDENTIAL TRANSPARENT: 178 SF (45%)220 SF (56%) NNoo..DDeessccrriippttiioonn DDaattee PRELIMINARY EXTERIOR ELEVATIONS - PHASE 1 T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" H J T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" GFEDACB I T.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"M1 CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGG M2 NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3 CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBD M4 AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH: M5 M6 M7 SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING) EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDD MMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING) MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACK TTRRIIMM?? FINISH: (MATCH SIDING) T.O. SLAB99' -0" T.O. SUBFLOOR (L2)109' -6" T.O. SUBFLOOR (L3)119' -0" H J T.O. SUBFLOOR (L4)128' -6" T.O. ROOF138' -0" GFEDACB I T.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"214 East Mendenhall St. Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA30 7TH & ASPENPHASE 1 BUILDING ELEVATIONS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 01.11.2024 SAH 1/8" = 1'-0"AA330011 SOUTH ELEVATION -PHASE 1 KKEEYYNNOOTTEESS 1/8" = 1'-0"AA330022 NORTH ELEVATION -PHASE 1 NNoo..DDeessccrriippttiioonn DDaattee SOUTH ELEVATION - PHASE 1SOUTH ELEVATION - PHASE 1*NOT TO SCALE*NOT TO SCALE NORTH ELEVATION - PHASE 1NORTH ELEVATION - PHASE 1*NOT TO SCALE*NOT TO SCALE WEST ELEVATION - PHASE 2WEST ELEVATION - PHASE 2 *NOT TO SCALE*NOT TO SCALE EAST ELEVATION - PHASE 2EAST ELEVATION - PHASE 2 *NOT TO SCALE*NOT TO SCALE 255 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1818 FLOOR PLANS - PHASE 1 UP UP PPLLAAZZAA MMAAIINN EENNTTRRYY EENNTTRRYYSIDEWALK SIDEWALK FLOOR ABV. SIDEWALK WH WH WH WH WH WH WH WH WH WH 2A30 / / 2A31 / / 1A30 / /GGRRIILLLL // PPIICCNNIICC TTAABBLLEESS 1A31 / / AA228822 AA229911 AA227733AA227722 AA226622 AA228811 LLAAUUNNDDRRYY SSTTAAIIRR 11 SSTTAAIIRR 22 //EENNTTRRYY UUNNIITT 111111 UUNNIITT 111122UUNNIITT 111100UUNNIITT 110088 UUNNIITT 110077 UUNNIITT 110099UUNNIITT 110055UUNNIITT 110033 UUNNIITT 110044 UUNNIITT 110066 RRIISSEERR RROOOOMM ((EENNTTRRYY)) 12 24 25 26 27 28 29 30 31 32 38 39 40 41 42 43 44 45 46 47 48 49 50 SKI BENCHCOFFEE BARFIXED BIKE STAND FFIIRREE RRIISSEERRRROOOOMM CCOORRRRIIDDOORR 11 MMAAIILL CCOOMMMMUUNNIITTYYRROOOOMM MMEECCHH..BBAATTHH JJ..CC.. BBIIKKEESSTTOORRAAGGEE LLOOBBBBYY 34567 33 35 36 37 11 12 13 14 15 16 17 18 19 20 21 22 238 9 10 24 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA20 7TH & ASPENPHASE 1 LEVEL 1 FLOOR PLAN 654, 706 & 726 N. 7th AveBozeman, MT 59715 Lots 1-3, 4A & 6A of the NorthSeventh Addition to BozemanSubdivision 03.20.2024 SAH 1/8" = 1'-0"AA220011 LEVEL 1 FLOOR PLAN KKEEYYNNOOTTEESS UUNNIITT CCOOUUNNTT 4 STUDIOS24 ONE BEDROOMS11 TWO BEDROOMS7 THREE BEDROOMS 4466 UUNNIITTSS TTOOTTAALL PUBLIC SPACE SCHEDULE - LVL 1 ROOM NAME FLOOR AREA LVL 1 1121 SFBATHLVL 1 58 SFBATH 1LVL 1 Not PlacedBATH 2LVL 1 Not PlacedBIKE STORAGELVL 1 478 SFCOMMUNITY ROOM LVL 1 Not PlacedCOMMUNITY ROOM LVL 1 Not PlacedCOMMUNITY ROOM LVL 1 Not PlacedCOMMUNITY ROOM LVL 1 306 SFCORRIDORLVL 1 Not PlacedCORRIDOR 1LVL 1 989 SFFIRE RISER ROOM LVL 1 108 SFJ.C.LVL 1 Not PlacedJ.C.LVL 1 Not PlacedJ.C.LVL 1 22 SFLAUNDRYLVL 1 121 SFLAUNDRY 1LVL 1 117 SFLOBBYLVL 1 Not PlacedLOBBYLVL 1 90 SFLOBBYLVL 1 249 SFMAILLVL 1 Not PlacedMAILLVL 1 Not PlacedMAILLVL 1 63 SFMECH.LVL 1 Not Placed UNIT SCHEDULE - LVL 1 UNIT NAME FLOOR UNIT TYPE UNIT ACCESSIBILITY AREA UNIT 103 LVL 1 THREE BEDROOM ACCESSIBLE 1014 SFUNIT 103 LVL 1 TWO BEDROOM 774 SFUNIT 104 LVL 1 TWO BEDROOM ACCESSIBLE 774 SFUNIT 104 LVL 1 ONE BEDROOM 508 SFUNIT 105 LVL 1 ONE BEDROOM TYPE B 529 SFUNIT 105 LVL 1 ONE BEDROOM 529 SFUNIT 106 LVL 1 ONE BEDROOM ACCESSIBLE 529 SFUNIT 107 LVL 1 ONE BEDROOM TYPE B 529 SFUNIT 107 LVL 1 ONE BEDROOM 529 SFUNIT 108 LVL 1 ONE BEDROOM TYPE B 529 SFUNIT 108 LVL 1 ONE BEDROOM 529 SFUNIT 109 LVL 1 ONE BEDROOM TYPE B 530 SFUNIT 109 LVL 1 ONE BEDROOM 529 SFUNIT 110 LVL 1 ONE BEDROOM TYPE B 529 SFUNIT 110 LVL 1 ONE BEDROOM 529 SFUNIT 111 LVL 1 STUDIO ACCESSIBLE 522 SFUNIT 111 LVL 1 TWO BEDROOM 773 SFUNIT 112 LVL 1 TWO BEDROOM ACCESSIBLE 782 SFUNIT 112 LVL 1 ONE BEDROOM 531 SFUNIT 113 LVL 1 STUDIO 503 SF NNoo..DDeessccrriippttiioonn DDaattee GROUND FLOOR FLOOR PLAN - PHASE 1GROUND FLOOR FLOOR PLAN - PHASE 1NOT TO SCALE UPPER FLOORS FLOOR PLAN - PHASE 1UPPER FLOORS FLOOR PLAN - PHASE 1NOT TO SCALE UP DN -------- -------- WH WH WH WH WH WH 2A30 / / 2A31 / / 1A30 / / WH WH WH WH WH 1A31 / / AA226633AA229922 AA227711 AA226611 CCOORRRRIIDDOORR 22 LLAAUUNNDDRRYY 22 UUNNIITT 221122UUNNIITT 220022 UUNNIITT 220044 UUNNIITT 220066 UUNNIITT 220088 UUNNIITT 221100 UUNNIITT 220033 UUNNIITT 220055 UUNNIITT 220077 UUNNIITT 220099 SSTTAAIIRR 22 UUNNIITT 221111 SSTTAAIIRR 11 UUNNIITT 220011 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA21 7TH & ASPENPHASE 1 LEVEL 2 FLOOR PLAN 654, 706 & 726 N. 7th AveBozeman, MT 59715 Lots 1-3, 4A & 6A of the NorthSeventh Addition to BozemanSubdivision 03.20.2024 SAH 1/8" = 1'-0"AA221111 LEVEL 2 FLOOR PLAN N KKEEYYNNOOTTEESS UUNNIITT CCOOUUNNTT 4 STUDIOS24 ONE BEDROOMS11 TWO BEDROOMS7 THREE BEDROOMS 4466 UUNNIITTSS TTOOTTAALL UNIT SCHEDULE - LVL 2 UNIT NAME FLOOR UNIT TYPE UNIT ACCESSIBILITY AREA UNIT 106 LVL 2 ONE BEDROOM 507 SFUNIT 201 LVL 2 TWO BEDROOM NONE Not PlacedUNIT 201 LVL 2 THREE BEDROOM 1023 SFUNIT 201 LVL 2 TWO BEDROOM NONE 786 SFUNIT 202 LVL 2 THREE BEDROOM NONE 1023 SFUNIT 202 LVL 2 TWO BEDROOM Not PlacedUNIT 203 LVL 2 THREE BEDROOM NONE 1015 SFUNIT 203 LVL 2 TWO BEDROOM 774 SFUNIT 204 LVL 2 TWO BEDROOM NONE 774 SFUNIT 204 LVL 2 ONE BEDROOM 507 SFUNIT 205 LVL 2 ONE BEDROOM NONE 529 SFUNIT 205 LVL 2 ONE BEDROOM 529 SFUNIT 206 LVL 2 ONE BEDROOM NONE 529 SFUNIT 206 LVL 2 ONE BEDROOM 507 SFUNIT 207 LVL 2 ONE BEDROOM NONE 529 SFUNIT 207 LVL 2 ONE BEDROOM 529 SFUNIT 208 LVL 2 ONE BEDROOM NONE 529 SFUNIT 208 LVL 2 ONE BEDROOM 529 SFUNIT 209 LVL 2 ONE BEDROOM NONE 531 SFUNIT 209 LVL 2 ONE BEDROOM 529 SFUNIT 210 LVL 2 ONE BEDROOM NONE 529 SFUNIT 210 LVL 2 ONE BEDROOM 529 SFUNIT 211 LVL 2 STUDIO NONE 521 SF PUBLIC SPACE SCHEDULE - LVL 2 VV FLOOR AREA CORRIDOR 2LVL 2 957 SFLAUNDRY 2LVL 2 121 SFLAUNDRY 2LVL 2 117 SFSTAIR 1LVL 2 164 SFSTAIR 2LVL 2 219 SF NNoo..DDeessccrriippttiioonn DDaattee 256 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 1919 FLOOR PLANS - PHASE 1 T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"HJT.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"GFEDACBIT.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"M1CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGGM2NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBDM4AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH:M5M6M7SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING)EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDDMMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING)MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACKTTRRIIMM??FINISH: (MATCH SIDING)T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"HJT.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"GFEDACBIT.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"214 East Mendenhall St. Bozeman, MT 59715aspektarch.com406.317.5333ARCHITECTURE & DESIGNSSHHEEEETTPPRROOJJEECCTTRREEVVIISSIIOONNSSDDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY© 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA307TH & ASPENPHASE 1BUILDING ELEVATIONSTBD 706, 726 N 7th AveBozeman, MT 59715Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision01.11.2024SAH1/8" = 1'-0"AA330011SOUTH ELEVATION -PHASE 1KKEEYYNNOOTTEESS1/8" = 1'-0"AA330022NORTH ELEVATION -PHASE 1NNoo..DDeessccrriippttiioonnDDaatteeM1CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGGM2NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBDM4AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH:M5M6M7SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING)EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDDMMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING)MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACKTTRRIIMM??FINISH: (MATCH SIDING)T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"1T.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"23564T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"1T.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"23564T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"214 East Mendenhall St. Bozeman, MT 59715aspektarch.com406.317.5333ARCHITECTURE & DESIGNSSHHEEEETTPPRROOJJEECCTTRREEVVIISSIIOONNSSDDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY© 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA337TH & ASPENPHASE 1BUILDING ELEVATIONS Copy2TBD 706, 726 N 7th AveBozeman, MT 59715Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision01.11.2024SAHKKEEYYNNOOTTEESS1/8" = 1'-0"AA333311EAST ELEVATION Copy 11/8" = 1'-0"AA333322WEST ELEVATION Copy 1WWEESSTT EELLEEVVAATTIIOONN --SSTTOORREEFFRROONNTT BBLLOOCCKK FFRROONNTTAAGGEELEVEL 1 OPAQUE: LEVEL 1 TRANSPARENT: RESIDENTIAL OPAQUE: RESIDENTIAL TRANSPARENT: 178 SF (45%)220 SF (56%)NNoo..DDeessccrriippttiioonnDDaatteeM1CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGGM2NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBDM4AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH:M5M6M7SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING)EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDDMMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING)MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACKTTRRIIMM??FINISH: (MATCH SIDING)T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"1T.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"23564T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"1T.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"23564T.O. RIDGE (ROOF)152' -0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"53' - 0"214 East Mendenhall St. Bozeman, MT 59715aspektarch.com406.317.5333ARCHITECTURE & DESIGNSSHHEEEETTPPRROOJJEECCTTRREEVVIISSIIOONNSSDDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY© 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA337TH & ASPENPHASE 1BUILDING ELEVATIONS Copy2TBD 706, 726 N 7th AveBozeman, MT 59715Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision01.11.2024SAHKKEEYYNNOOTTEESS1/8" = 1'-0"AA333311EAST ELEVATION Copy 11/8" = 1'-0"AA333322WEST ELEVATION Copy 1WWEESSTT EELLEEVVAATTIIOONN --SSTTOORREEFFRROONNTT BBLLOOCCKK FFRROONNTTAAGGEELEVEL 1 OPAQUE: LEVEL 1 TRANSPARENT: RESIDENTIAL OPAQUE: RESIDENTIAL TRANSPARENT: 178 SF (45%)220 SF (56%)NNoo..DDeessccrriippttiioonnDDaatteeSOUTH ELEVATION - PHASE 2SOUTH ELEVATION - PHASE 2*NOT TO SCALE*NOT TO SCALE EXTERIOR ELEVATIONS - PHASE 2T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"HJT.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"GFEDACBIT.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"M1CCOORRRRUUGGAATTEEDD MMEETTAALL SSIIDDIINNGGM2NNAATTUURRAALL WWOOOODD SSIIDDIINNGG && SSOOFFFFIITTTYPE: 1" x 4" SHIPLAPSPECIES: CEDAR, STANDARD AND BETTERFINISH: STAIN -CLEAR NATURAL M3CCEEMMEENNTTIITTIIOOUUSS PPAANNEELL SSIIDDIINNGGMANUFACTURER: JAMES HARDIE (OR SIM)TYPE: PANEL VERTICAL SIDING, SMOOTHFINISH: PAINTED, COLOR TBDM4AASSPPHHAALLTT SSHHIINNGGLLEE RROOOOFFIINNGG MANUFACTURER:TYPE:FINISH:M5M6M7SSTTEEEELL BBEENNCCHHSS??STRUCTURAL STEEL -WELDED AND GRINDEDFINISH: PRIMED AND PAINTED, MATTE BLACK(MATCH MATTE BLACK SIDING)EEXXTTEERRIIOORR FFIINNIISSHH LLEEGGEENNDDMMEETTAALL FFAASSCCIIAA22 GAUGE BRAKE METAL -SEAMLESSFINISH: GALVALUME (MATCH SIDING,ROOFING)MANUFACTURER: METAL SALES (OR SIM)TYPE: 7/8" CORRUGATED; 24 GAUGEFINISH: MATTE BLACKTTRRIIMM??FINISH: (MATCH SIDING)T.O. SLAB99' -0"T.O. SUBFLOOR (L2)109' -6"T.O. SUBFLOOR (L3)119' -0"HJT.O. SUBFLOOR (L4)128' -6"T.O. ROOF138' -0"GFEDACBIT.O. RIDGE (ROOF)152' -0"53' - 0"14' - 0"9' - 6"9' - 6"9' - 6"10' - 6"214 East Mendenhall St. Bozeman, MT 59715aspektarch.com406.317.5333ARCHITECTURE & DESIGNSSHHEEEETTPPRROOJJEECCTTRREEVVIISSIIOONNSSDDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY© 2023 ASPEKT ARCHITECTURE LLCC:\Aspekt_Shared\ASPEKT ARCHITECTURE\ASPEKT - PROJECTS\SAH - 7th Affordable Housing\REVIT\SAH.rvtA307TH & ASPENPHASE 1BUILDING ELEVATIONSTBD 706, 726 N 7th AveBozeman, MT 59715Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision01.11.2024SAH1/8" = 1'-0"AA330011SOUTH ELEVATION -PHASE 1KKEEYYNNOOTTEESS1/8" = 1'-0"AA330022NORTH ELEVATION -PHASE 1NNoo..DDeessccrriippttiioonnDDaatteeNORTH ELEVATION - PHASE 2NORTH ELEVATION - PHASE 2*NOT TO SCALE*NOT TO SCALE WEST ELEVATION - PHASE 2WEST ELEVATION - PHASE 2 *NOT TO SCALE*NOT TO SCALE EAST ELEVATION - PHASE 2EAST ELEVATION - PHASE 2 *NOT TO SCALE*NOT TO SCALE 257 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 2020 FLOOR PLANS - PHASE 2 PPLLAAZZAA MMAAIINN EENNTTRRYYSIDEWALK SIDEWALK SIDEWALK GGRRIILLLL // PPIICCNNIICC TTAABBLLEESS BBOOCCCCEE CCOOUURRTTYY // YYAARRDD GGAAMMEESS FFIIRREE RRIISSEERRRROOOOMM LLOOBBBBYY CCOORRRRIIDDOORR 11 SSTTAAIIRR 44 //EENNTTRRYY LLAAUUNNDDRRYY 11 EENNTTRRYYRRIISSEERR RROOOOMM ((EENNTTRRYY)) WH WH WH WH WH WH WH WHWHWH WH UUNNIITT 110033 UUNNIITT 110055 UUNNIITT 110077 UUNNIITT 110099 UUNNIITT 111111 UUNNIITT 111133 UUNNIITT 111122UUNNIITT 111100UUNNIITT 110088UUNNIITT 110066UUNNIITT 110044 -- / / -- / / -- / / -- / / MMAAIILL MMEECCHH..BBAATTHH BBIIKKEESSTTOORRAAGGEE CCOOMMMMUUNNIITTYYRROOOOMM JJ..CC.. SSTTAAIIRR 33 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA24 7TH & ASPENPHASE 1 LEVEL 1 FLOOR PLAN -PHASE 2 654, 706 & 726 N. 7th AveBozeman, MT 59715 Lots 1-3, 4A & 6A of the NorthSeventh Addition to BozemanSubdivision 03.20.2024 SAH 1/8" = 1'-0"AA224411 LEVEL 1 FLOOR PLAN -PHASE 2 KKEEYYNNOOTTEESS UUNNIITT CCOOUUNNTT NNoo..DDeessccrriippttiioonn DDaattee GROUND FLOOR FLOOR PLAN - PHASE 2GROUND FLOOR FLOOR PLAN - PHASE 2NOT TO SCALE UPPER FLOORS FLOOR PLAN - PHASE 2UPPER FLOORS FLOOR PLAN - PHASE 2NOT TO SCALE SSTTAAIIRR 33 SSTTAAIIRR 44 CCOORRRRIIDDOORR LLAAUUNNDDRRYY 22 UUNNIITT 220011 UUNNIITT 220033 UUNNIITT 220055 UUNNIITT 220077 UUNNIITT 220099 UUNNIITT 221111 UUNNIITT 220044 UUNNIITT 220066 UUNNIITT 220088 UUNNIITT 221100 UUNNIITT 221122 UUNNIITT 221133 -- / / -- / / -- / / -- / / 1' - 9" UUNNIITT 220022 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA32 7TH & ASPENPHASE 1 LEVEL 2 FLOOR PLAN -PHASE 2 654, 706 & 726 N. 7th AveBozeman, MT 59715 Lots 1-3, 4A & 6A of the NorthSeventh Addition to BozemanSubdivision 03.20.2024 SAH 1/8" = 1'-0"AA332211 LEVEL 2 FLOOR PLAN -PHASE 2 N KKEEYYNNOOTTEESS UUNNIITT CCOOUUNNTT 4 STUDIOS24 ONE BEDROOMS11 TWO BEDROOMS7 THREE BEDROOMS 4466 UUNNIITTSS TTOOTTAALL UNIT SCHEDULE - LVL 2 UNIT NAME FLOOR UNIT TYPE UNIT ACCESSIBILITY AREA UNIT 106 LVL 2 ONE BEDROOM 507 SFUNIT 201 LVL 2 TWO BEDROOM NONE Not PlacedUNIT 201 LVL 2 THREE BEDROOM 1023 SFUNIT 201 LVL 2 TWO BEDROOM NONE 786 SFUNIT 202 LVL 2 THREE BEDROOM NONE 1023 SFUNIT 202 LVL 2 TWO BEDROOM Not PlacedUNIT 203 LVL 2 THREE BEDROOM NONE 1015 SFUNIT 203 LVL 2 TWO BEDROOM 774 SFUNIT 204 LVL 2 TWO BEDROOM NONE 774 SFUNIT 204 LVL 2 ONE BEDROOM 507 SFUNIT 205 LVL 2 ONE BEDROOM NONE 529 SFUNIT 205 LVL 2 ONE BEDROOM 529 SFUNIT 206 LVL 2 ONE BEDROOM NONE 529 SFUNIT 206 LVL 2 ONE BEDROOM 507 SFUNIT 207 LVL 2 ONE BEDROOM NONE 529 SFUNIT 207 LVL 2 ONE BEDROOM 529 SFUNIT 208 LVL 2 ONE BEDROOM NONE 529 SFUNIT 208 LVL 2 ONE BEDROOM 529 SFUNIT 209 LVL 2 ONE BEDROOM NONE 531 SFUNIT 209 LVL 2 ONE BEDROOM 529 SFUNIT 210 LVL 2 ONE BEDROOM NONE 529 SFUNIT 210 LVL 2 ONE BEDROOM 529 SFUNIT 211 LVL 2 STUDIO NONE 521 SF PUBLIC SPACE SCHEDULE - LVL 2 VV FLOOR AREA CORRIDOR 2LVL 2 957 SFLAUNDRY 2LVL 2 121 SFLAUNDRY 2LVL 2 117 SFSTAIR 1LVL 2 164 SFSTAIR 2LVL 2 219 SF NNoo..DDeessccrriippttiioonn DDaattee 258 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 2121 FLOOR PLANS - PHASE 2 J J 5 5 6 6 4 4 I I 23' - 0" 23' - 0"22' - 1 5/8"22' - 1 5/8"KITCHEN /DINING STORAGE BATH LIVING BEDROOM CLOSETWH J J 5 5 6 6 4 4 I I 23' - 0"22' - 1 5/8"23' - 0"22' - 1 5/8"KITCHEN /DINING STORAGE BATH LIVING BEDROOM CLOSETWH 1 1 F F E E 2 2 21' - 10"24' - 2"21' - 10"24' - 2"KITCHEN / DINING STORAGE WH BATH BEDROOM CLOSET LIVING 1/4" = 1'-0"AA226633 UNIT PLAN -TYPE 1 (1 BDRM) 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA26 7TH & ASPENPHASE 1 UNIT PLANS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH 1/4" = 1'-0"AA226611 UNIT PLAN -TYPE 0 (STUDIO)1/4" = 1'-0"AA226622 UNIT PLAN -TYPE 0A (STUDIO -ACCESSIBLE) NNoo..DDeessccrriippttiioonn DDaattee KKEEYYNNOOTTEESS MEETS ACCESSIBILITY REQUIREMENTS PER IBC 1108MEETS OR EXCEEDS ACCESSIBILITY REQUIREMENTS PER ANSI 117.1.1101 STUDIOSTUDIOTYPICAL UNIT PLANTYPICAL UNIT PLAN 510 SF510 SF ONE BEDROOMONE BEDROOMTYPICAL UNIT PLANTYPICAL UNIT PLAN 530 SF530 SF TWO BEDROOMTWO BEDROOMTYPICAL UNIT PLANTYPICAL UNIT PLAN 775 SF775 SF THREE BEDROOMTHREE BEDROOMTYPICAL UNIT PLANTYPICAL UNIT PLAN 1,010 SF1,010 SF UNIT PLANS J J 55 66 44 I I 23' - 0" 23' - 0"22' - 1 5/8"22' - 1 5/8"KITCHEN /DINING STORAGE BATH LIVINGBEDROOM CLOSETWH J J 5 5 6 6 4 4 I I 23' - 0"22' - 1 5/8"23' - 0"22' - 1 5/8"KITCHEN /DINING STORAGE BATH LIVING BEDROOM CLOSETWH 1 1 F F E E 2 2 21' - 10"24' - 2"21' - 10"24' - 2"KITCHEN / DINING STORAGE WH BATH BEDROOM CLOSET LIVING 1/4" = 1'-0"AA226633 UNIT PLAN -TYPE 1 (1 BDRM) 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA26 7TH & ASPENPHASE 1 UNIT PLANS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH 1/4" = 1'-0"AA226611UNIT PLAN -TYPE 0 (STUDIO)1/4" = 1'-0"AA226622 UNIT PLAN -TYPE 0A (STUDIO -ACCESSIBLE) NNoo..DDeessccrriippttiioonn DDaattee KKEEYYNNOOTTEESS MEETS ACCESSIBILITY REQUIREMENTS PER IBC 1108MEETS OR EXCEEDS ACCESSIBILITY REQUIREMENTS PER ANSI 117.1.1101 1 1 F F E E 2 224' - 2"21' - 10"24' - 2"21' - 10" KITCHEN / DINING STORAGEWH BATH BEDROOM CLOSET LIVING 1 1 G G F F 2 2 KITCHEN / DINING STORAGE WH BATH BEDROOM CLOSET LIVING 21' - 10"24' - 2"21' - 10"24' - 2"1 1 H H J J 2 2 I I 24' - 2"32' - 2"24' - 2"32' - 2" BEDROOM1 CLOSET BATHSTORAGE LIVING KITCHEN / DINING WH CLOSET BEDROOM2 214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA27 7TH & ASPENPHASE 1 UNIT PLANS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH 1/4" = 1'-0"AA227711 UNIT PLAN -TYPE 2 (2 BDRM)1/4" = 1'-0"AA227722UNIT PLAN -TYPE 1A (1 BDRM -ACCESSIBLE)1/4" = 1'-0"AA227733 UNIT PLAN -TYPE 1B (1 BDRM -TYPE B) NNoo..DDeessccrriippttiioonn DDaattee KKEEYYNNOOTTEESSKKEEYYNNOOTTEESS MEETS ACCESSIBILITY REQUIREMENTS PER IBC 1108MEETS OR EXCEEDS ACCESSIBILITY REQUIREMENTS PER ANSI 117.1.1101 E E D D C C 3 3 5 5 4 4 41' - 11"24' - 1 1/2"41' - 11"24' - 1 1/2"STORAGE WH BEDROOM3 BATH BEDROOM1 BEDROOM2 CLOSETSTORAGE CLOSETCLOSET LIVING KITCHEN /DINING 1 1 D D A A C C B B 2 2 42' - 1"24' - 2"42' - 1"13' - 0"24' - 2"KITCHEN / DINING WH LIVING CLOSET STORAGE BEDROOM3 BEDROOM2 BEDROOM1 BATH CLOSET CLOSET STORAGE214 E Mendenhall Street Suite 201 Bozeman, MT 59715 aspektarch.com 406.317.5333 ARCHITECTURE & DESIGN SSHHEEEETT PPRROOJJEECCTT RREEVVIISSIIOONNSS DDRRAAWWIINNGGSS FFOORR PPLLAANNNNIINNGGRREEVVIIEEWW OONNLLYY © 2024 ASPEKT ARCHITECTURE LLCAutodesk Docs://Seventh & Aspen Affordable Housing/SAH.rvtA29 7TH & ASPENPHASE 1 UNIT PLANS TBD 706, 726 N 7th AveBozeman, MT 59715 Lots 1-3 & 4A of the North SeventhAddition to Bozeman Subdivision 02.28.2024 SAH 1/4" = 1'-0"AA229911 UNIT PLAN -TYPE 3A (3 BDRM -ACCESSIBLE)1/4" = 1'-0"AA229922 UNIT PLAN -TYPE 3 ( 3 BDRM) NNoo..DDeessccrriippttiioonn DDaattee KKEEYYNNOOTTEESSKKEEYYNNOOTTEESS 259 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 2222 SOURCES & USES OF FUNDS USESLAND / ACQUISITION COSTSLAND / ACQUISITION COSTS $4,894,000 HARD COSTS HARD COSTS [less eligible TIF costs][less eligible TIF costs]$14,482,219 SOFT COSTS SOFT COSTS [less eligible TIF costs][less eligible TIF costs]$4,159,838 FINANCING COSTSFINANCING COSTS $2,322,577SUBTOTALSUBTOTAL$25,658,634 $25,658,634 TIF ELIGIBLE COSTSTIF ELIGIBLE COSTSINFRASTRUCTURE & VERTICAL COSTS $2,000,000 IMPACT FEES & CIL FEES $824,061 CONTINGENCY $200,000 SUBTOTALSUBTOTAL $3,024,061$3,024,061 TOTALTOTAL $28,682,695$28,682,695 SOURCESDEVELOPER / INVESTOR EQUITY $12,022,437 THIRD PARTY CONSTRUCTION DEBT $13,636,198 TIF UPFRONT FINANCING $824,061 TIF TAKEOUT FINANCING $2,200,000 TOTALTOTAL $28,682,695$28,682,695 Below are the anticipated sources and uses for development of the project. The sources include: (1) Developer and investor equity: The project will require approximately $11.9 MM of equity. The equity will be contributed by the developer as well as a third-party tax-credit investor. The 46-unit project has secured approximately $9.0 MM in tax-credits which we anticipate will be sold to a tax-credit investor for between $7.25 and $7.75 MM. The remaining equity of $4.1 to $4.6 MM will be conventional equity contributed by the developer. (2) Debt: The project will require approximately $13.7 MM of debt (48% of cost). We anticipate that this will be provided by Glacier Bank. The debt will be in the form of tax-exempt bonds, issued by the Montana Board of Housing, and taxable debt issued by Glacier Bank. A term sheet will be provided in the coming months. (3) TIF: The remaining sources of $3.0 MM are upfront and takeout TIF proceeds. 260 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 2323 DEVELOPMENT BUDGET ACQUISITION COSTS $4,894,000 AFFORDABLE APPLICATION COSTS $62,350 HARD COSTS $16,482,219 HARD COSTS HARD COSTS [TIF ELIGIBLE][TIF ELIGIBLE]$2,200,000 PROFESSIONAL FEES $854,233 GENERAL & ADMINISTRATIVE $3,243,953 CIL FEES CIL FEES [TIF ELIGIBLE][TIF ELIGIBLE]$43,037 IMPACT FEES IMPACT FEES [TIF ELIGIBLE][TIF ELIGIBLE]$781,023 FINANCING COSTS $362,229 INTEREST RESERVES $1,660,348 POST-OPENING INTEREST RESERVE $300,000 TOTALTOTAL $28,682,695$28,682,695 261 7TH & ASPEN MIXED - USE Phase 1 & 2 TIF Request ARCHITECTURE & DESIGN Boundary 2424 TIF ELEGIBLE EXPENSES INFRASTRUCTURE TOTAL Public ROW On Site DEMOLITION $50,000 $50,000 EXCAVATION $539,600 $71,600 $468,000 STORM WATER RETENTION $45,000 $0 $45,000 WATER MAIN $56,650 $56,650 $0 SEWER MAIN $9,500 $9,500 $0 FIRE LINE $59,325 $59,325 $0 CURB AND GUTTER $23,000 $23,000 $0 SIDEWALKS $263,816 $263,816 $0 PAVING AND STRIPING $45,560 $11,600 $33,960 INFRASTRUCTURE SUBTOTAL $1,092,451 $495,491 $596,960 VERTICAL CONSTRUCTION $907,549 CIL FEES $43,037 IMPACT FEES $781,023 CONTINGENCY [1]$200,000 TOTAL $3,024,061 [1] 10% of offsite infrastructure and vertical costs 262 M EMORANDUM To: David Fine, City of Bozeman From: Brian Duffany, Christian Carroll, Colton Harguth, Economic & Planning Systems Subject: Bozeman URA TIF Request Review: 7th and Aspen; EPS #233073 Date: May 7, 2024 This memorandum summarizes Economic & Planning Systems’ (EPS) analysis of the request for tax increment financing (TIF) for the 7th and Aspen project. EPS has been contracted by the City of Bozeman to evaluate the developer’s request for TIF and evaluate key project assumptions, including construction costs, operating revenues and expenditures, and overall developer return. The purpose of this analysis is to evaluate if the assumptions presented by the developer are within a reasonable range of current market conditions, costs, and typical rates of return. This analysis will help the City determine if it is investing in a viable project, and if the amount of TIF requested is needed and reasonable. Approach As part of the TIF application process, each development team is required to submit a formal proposal that includes a project overview and key project assumptions. These materials include a summary of the development program, construction costs, eligible costs for TIF reimbursement, and sales or leasing revenues in a project pro forma. EPS used this information to look at the project in two ways: • Static Unlevered – A static unlevered analysis provides a snapshot of the project’s revenues, expenditures, net operating income (NOI), and Yield on Cost (YOC) once the project is stabilized. • Unlevered Discounted Cash Flow – An unlevered discounted cash flow analysis provides a broader understanding of project cash flows and how costs, equity, LITHC, TIF, and project disposition impact the overall success of the project. An unlevered analysis looks at the project without debt. The financing (leverage) structure of a project can affect the returns to the developer. The analysis takes debt out of the equation to better understand the feasibility of the project on its own merit. 263 Memorandum: 7th and Aspen TIF Request Review Page | 2 EPS analyzed each phase individually and then as one combined project. Development Program The project, located at 7th Avenue and Aspen Street, is proposed to contain approximately 96 affordable housing units in two development phases, as shown in Table 1. • Phase 1 is an affordable rental development utilizing the federal Low Income Housing Tax Credit (LIHTC) program. It will include 46 units, 17 units at 50% Area Median Income (AMI) and 29 units at 60% AMI. • Phase 2 is income restricted to 80% of AMI for 30 years. Phase 2 has 50 units at 80% AMI. Phase 1 includes 4 studio units, 24 one-bedroom/one-bathroom units, 11 two- bedroom/two-bathroom units, and 7 three-bedroom/two-bathroom units. Phase 1 rents are projected to range from $986 per month for the one-bedroom/one- bathroom units at 50% AMI to $1,641 per month for three-bedroom/two- bathroom units at 60% AMI, equating to a weighted average of $973 per unit or $1.42 per square foot for the 50% AMI units and $1,172 per unit or $1.77 per square foot for the 60% AMI units. It should be noted that the rents and net operating income for Phase 1 are net of utilities. Under the LIHTC program, affordable rents need to include rent and utilities, making the effective rent to the project lower. Phase 2 includes 36 one-bedroom/one-bathroom units, 11 two-bedroom/two- bathroom units, and 3 three-bedroom/two-bathroom units. Phase 2 rents are projected to range from $1,683 per month for one-bedroom/one-bathroom units to $2,103 per month for three-bedroom/two-bathroom units, equating to a weighted average of $1,754 per unit or $2.85 per square foot. 264 Economic & Planning Systems, Inc. Page | 3 Table 1. Project Development Program Project Costs Phase 1 The development and construction budget for Phase 1 totals $13.5 million as shown in Table 2 and summarized below. • Land – The land has been purchased for $1.57 million in addition to $20,000 in closing costs for a total of $1.59 million or $51.42 per rentable square foot, accounting for roughly 11.8 percent of the total costs. • Hard Costs – Hard costs are estimated at $7.8 million or $252.64 per rentable square foot, accounting for roughly 57.8 percent of the total costs. Description Units % of Total Unit SF Total Sq. Ft. Rent/Unit per Month Utilities/Unit per Month Net Rent/Unit per Month Rent/Sq. Ft. per Month Total Annual Rent Phase 1 50% AMI (Phase 1) Studio 0 0.0%518 0 $0 -$82 $0 $0.00 $0 1 Bedrooms /1 Bath 10 58.8%528 5,280 $986 -$106 $880 $1.87 $105,600 2 Bedrooms /2 Bath 4 23.5%768 3,072 $1,183 -$142 $1,041 $1.54 $49,968 3 Bedrooms /2 Bath 3 17.6%1,104 3,312 $1,368 -$175 $1,193 $1.24 $42,948 Total/Average 17 100.0% 686 11,664 $973 -$127 $846 $1.42 $198,516 60% AMI (Phase 1) Studio 4 13.8%518 2,072 $1,105 -$82 $1,023 $2.13 $49,104 1 Bedrooms /1 Bath 14 48.3%528 7,392 $1,184 -$106 $1,078 $2.24 $181,104 2 Bedrooms /2 Bath 7 24.1%768 5,376 $1,420 -$142 $1,278 $1.85 $107,352 3 Bedrooms /2 Bath 4 13.8%1,104 4,416 $1,641 -$175 $1,466 $1.49 $70,368 Total/Average 29 100.0% 664 19,256 $1,172 -$121 $1,051 $1.77 $407,928 Other (Phase 1) Amenity 2,200 Mechanical/Circulation/BOH 5,530 Total 7,730 Phase 2 80% AMI (Phase 2) Studio 0 0.0%0 0 $0 $0 $0 $0.00 $0 1 Bedrooms /1 Bath 36 72.0%528 19,008 $1,683 $0 $1,683 $3.19 $727,056 2 Bedrooms /2 Bath 11 22.0%768 8,448 $1,893 $0 $1,893 $2.46 $249,876 3 Bedrooms /2 Bath 3 6.0%1,104 3,312 $2,103 $0 $2,103 $1.90 $75,708 Total/Average 50 100.0% 615 30,768 $1,754 $0 $1,754 $2.85 $1,052,640 Other (Phase 2) Amenity 2,200 Mechanical/Circulation/BOH 5,530 Total 7,730 Source: Developer Financial Documents; Economic & Planning Systems 265 Memorandum: 7th and Aspen TIF Request Review Page | 4 • Soft Costs – Soft costs, not including financing costs and the developer fee, are estimated at $2.5 million or $81.33 per rentable square foot, accounting for roughly 18.6 percent of the total costs compared to 16.7 percent in Phase 2. In addition, the developer collects a 15 percent development fee on unlevered development costs allowed under the LIHTC program, which is $1.4 million for this project. The unlevered development cost does not include land, LITHC application costs, or financing costs, thus it only makes up 10.4 percent of the total costs. • Financing Costs – Financing costs are estimated at $203,991 or $6.60 per rentable square foot, accounting for roughly 1.5 percent of total costs. Financing costs include title, loan origination fees, closing costs, costs to obtain the tax credits, and legal costs. The total project budget for Phase 1, including the percentage of total development costs by category, is in EPS’ opinion within the typical ranges for affordable multifamily development and projects utilizing the LIHTC program. Table 2. Project Costs – Phase 1 Phase 2 The development and construction budget for Phase 2 totals $15.2 million as shown in Table 3 and summarized below. • Land – The land is under contract for a total of $3.3 million or $106.86 per rentable square foot, accounting for roughly 21.8 percent of the total costs. Land costs are high because the developer acquired an existing building formerly occupied by Aaron’s Furniture Warehouse. • Hard Costs – Hard costs are estimated at $8.7 million or $280.42 per rentable square foot, accounting for roughly 57.2 percent of the total costs. Phase 2 has upgraded interior finishes that make the costs slightly higher than Phase 1. • Soft Costs – Soft costs, not including financing costs and the developer fee, are estimated at $2.5 million or $81.71 per rentable square foot, accounting for 16.7 percent of the total costs. In addition, the developer collects a 5 percent development fee on unlevered development costs, which is $501,831 for this project. The unlevered development cost does not include financing costs; thus, the developer fee only makes up 3.3 percent of the total costs. Description Total Cost per RSF % of Total Development Costs Land Costs $1,590,000 $51.42 11.8% Hard Costs $7,811,611 $252.64 57.8% Soft Costs $2,514,750 $81.33 18.6% Developer Fee $1,401,448 $45.32 10.4% Financing Costs $203,991 $6.60 1.5% Total Costs $13,521,800 $437.32 100.0% Source: Developer Financial Documents; Economic & Planning Systems 266 Economic & Planning Systems, Inc. Page | 5 • Financing Costs – Financing costs are estimated at $158,356 or $5.12 per rentable square foot, accounting for roughly 1.0 percent of total costs. Financing costs include title, loan origination fees, closing costs, and legal costs. The total project budget for Phase 2, including the percentage of total development costs by category, is in EPS’ opinion within the typical ranges for affordable multifamily development and projects. Table 3. Project Costs – Phase 2 Funding and Financing Sources Phase 1 Phase 1 of the project is funded by tax credits (LITHC), tax-exempt bonds, and TIF funds from the City of Bozeman that cover the impact fees. The developer is relying primarily on syndicated LITHC funding, which minimizes the need for traditional equity investment from third parties. The developer has purchased land with equity but is repaying itself with the construction financing and tax credits. After construction, the tax credits and tax-exempt bonds will be utilized to pay off the construction loans. As shown in Table 4, the LITHC allocation accounts for 65.3 percent of the construction financing and 59.7 percent of the permanent financing. Tax-exempt bonds account for 31.8 percent of the construction costs and 31.7 percent of the permanent costs. TIF funds account for 2.9 percent of the construction and permanent costs. Description Total Cost per RSF % of Total Development Costs Land Costs $3,304,000 $106.86 21.8% Hard Costs $8,670,608 $280.42 57.2% Soft Costs $2,526,461 $81.71 16.7% Developer Fee $501,831 $16.23 3.3% Financing Costs $158,356 $5.12 1.0% Total Costs $15,161,256 $490.34 100.0% Source: Developer Financial Documents; Economic & Planning Systems 267 Memorandum: 7th and Aspen TIF Request Review Page | 6 Table 4. Sources – Phase 1 Phase 2 Phase 2 of the project is funded by conventional lending (i.e., taxable debt), TIF funds, and equity as shown in Table 5. Additionally, the developer is taking out a loan of $8.7 million to cover 57.2 percent of the costs. The remainder of construction is funded by TIF funds of $428,302, or 2.8 percent of the construction costs, which cover the impact fees for the site. The remaining TIF funds from the City, which equate to $2.2 million, or 14.5 percent of the permanent costs, cover public right-of-way and on-site costs for infrastructure, vertical construction, and contingency (10 percent of the offsite infrastructure and vertical costs). Description Total % of Total Sources - Construction Tax Exempt Bonds $4,300,000 31.8% Taxable Debt $8,019,284 59.3% 9% TC Investor Contribution $558,800 4.1% 4% TC Investor Contribution $247,957 1.8% TIF Funds $395,759 2.9% TOTAL CONS. SOURCES $13,521,800 100.0% Sources - Permanent Tax-Exempt Bonds $4,281,333 31.7% Taxable Debt $777,141 5.7% 9% TC Investor Contribution $558,800 4.1% 4% TC Investor Contribution $247,957 1.8% Total 9% Tax Credit Proceeds $5,029,200 37.2% Total 4% Tax Credit Proceeds $2,231,610 16.5% TIF Funds $395,759 2.9% TOTAL PERM. SOURCES $13,521,800 100.0% Source: Developer Financial Documents; Economic & Planning Systems 268 Economic & Planning Systems, Inc. Page | 7 Table 5. Sources – Phase 2 Hurdle Rate Analysis The project is evaluated against three financial performance measures: yield on cost (YOC), a discount rate, and an internal rate of return (IRR). • Yield on Cost (YOC) – Yield on Cost represents the project’s stabilized NOI divided by its total costs. For this project, a YOC hurdle rate of 7.5 percent is used to determine the development cost gap, which estimates the risk associated with the project (capitalization rate plus 100 basis points). • Discount Rate – The discount rate is used to measure the current value of future cash flows of the project (i.e., the value of a dollar today is more than at some time in the future). It is the weighted average of the interest rate on debt and the cost of equity invested in the project, which typically ranges between 15 percent and 20 percent. • Internal Rate of Return (IRR) – Internal Rate of Return measures the rate at which the investment into the project grows. More specifically, it is the discount rate when the net present value (NPV) of the project equals zero. Description Total % of Total Sources - Construction Taxable Debt $8,668,452 57.2% TIF Funds $428,302 2.8% Equity @ 40% of Uses $6,064,502 40.0% TOTAL CONS. SOURCES $15,161,256 100.0% Sources - Permanent Taxable Debt $8,668,452 57.2% TIF Funds $2,628,302 17.3% Equity $3,864,502 25.5% TOTAL PERM. SOURCES $15,161,256 100.0% Source: Developer Financial Documents; Economic & Planning Systems 269 Memorandum: 7th and Aspen TIF Request Review Page | 8 Phase 1 As shown in Table 6, the YOC hurdle rate for Phase 1 is derived from the current market cap rate of 6.5 percent (backward looking) and increased by 100 basis points for risk (forward looking) associated with real estate development. Given the limited amount of equity invested for Phase 1, the project also has a discount rate of 7.5 percent due to the limited amount of equity invested in the project (13.8 percent of the costs) because of the financing structure for LIHTC projects. The interest rate on the permanent loan is 6.0 percent and accounts for 86.2 percent of the costs. Table 6. Rates – Phase 1 Phase 2 As shown in Table 7, the YOC hurdle rate for Phase 1 is derived from the current market cap rate of 6.5 percent and increased by 100 basis points for risk associated with development for a rate of 7.5 percent. For Phase 2, the developer is covering 51.9 percent of the project construction with equity and 48.1 percent with debt. With an interest rate of 7.0 percent on the construction loan, and a rate of 17.5 percent for the cost of equity, the discount rate equates to 12.5 percent. After refinancing, the developer leverages most project costs into a permanent loan with an interest rate of 6.0 percent. With that change, the ratio shifts 69.2 percent of the costs being covered by debt, which leads to a lower discount rate of 9.5 percent. Description Rate Ratio YOC Hurdle Rate Market Cap Rate 6.5% Basis Point Adjustment 1.0% YOC Hurdle Rate 7.5% Discount Rate (Before Refinancing) Cost of Equity 17.5%11.4% Cost of Debt 7.0%88.6% WACC 8.3%100.0% Discount Rate (After Refinancing) Cost of Equity 17.5%13.8% Cost of Debt 6.0%86.2% WACC 7.5%100.0% Source: CoStar; Economic & Planning Systems 270 Economic & Planning Systems, Inc. Page | 9 Table 7. Rates – Phase 2 Project Net Operating Income Phase 1 At full stabilization, the annual effective gross income (EGI) generated from Phase 1 of the project is estimated at $573,919, as shown in Table 8. $603,412 is generated through residential revenue, $12,746 is generated through other sources, and $42,239 is lost to vacancy annually. Operating expenses are estimated at $148,922 per year and include utilities, taxes, insurance, and management and maintenance expenses. The estimated operating expenses fall within the expected range of 25 to 35 percent of gross income. Total net operating income (NOI) for the project is estimated at $424,997 per year. With no subsidies, the project’s yield on cost (YOC) is 3.43 percent. With the Phase 1 TIF subsidy of $395,759, the YOC is 3.54 percent. With allocation of the LITHC credits for the project, which total $6.7 million in present value, the YOC is 7.5 percent for the project, which aligns with the 7.5 percent hurdle rate. This project is feasible because the tax credit sales cover roughly 54 percent of the total cost of the project. Description Rate Ratio YOC Hurdle Rate Market Cap Rate 6.5% Basis Point Adjustment 1.0% YOC Hurdle Rate 7.5% Discount Rate (Before Refinancing) Cost of Equity 17.5%51.9% Cost of Debt 7.0%48.1% WACC 12.5%100.0% Discount Rate (After Refinancing) Cost of Equity 17.5%30.8% Cost of Debt 6.0%69.2% WACC 9.5%100.0% Source: CoStar; Economic & Planning Systems 271 Memorandum: 7th and Aspen TIF Request Review Page | 10 Table 8. Net Operating Income (NOI) – Phase 1 Phase 2 At full stabilization, the annual effective gross income (EGI) generated from Phase 2 of the project is estimated at $1,082,757, as shown in Table 9. $1,047,639 is generated through residential revenue, $87,500 is generated through other sources, and $52,382 is lost to vacancies and turnover annually. Description Lease Rate Total % of Total Revenue Rent/SF/Mo % of PGI Residential Revenue $603,412 100.0% 50% AMI (Phase 1) Studio $0.00 $0 0.0% 1 Bedrooms /1 Bath $1.87 $105,600 17.5% 2 Bedrooms /2 Bath $1.54 $49,968 8.3% 3 Bedrooms /2 Bath $1.24 $42,948 7.1% 4 Bedrooms /2 Bath $0.00 $0 0.0% Total/Average $1.42 $198,516 32.9% 60% AMI (Phase 1) Studio $2.13 $49,104 8.1% 1 Bedrooms /1 Bath $2.24 $181,104 30.0% 2 Bedrooms /2 Bath $1.85 $107,352 17.8% 3 Bedrooms /2 Bath $1.49 $70,368 11.7% 4 Bedrooms /2 Bath $0.00 $0 0.0% Total/Average $1.77 $407,928 67.6% Concessions --$0 0.0% Bad Debt ---$3,032 -0.5% Other Income $12,746 2.2% Other Income $12,746 2.2% Less: Vacancy (7.0% per year)-$42,239 -7.4% Effective Gross Income (EGI)$573,919 95.1% Expenditures % of EGI Total Operating Expenses -$148,922 25.9% Net Operating Income (NOI)$424,997 74.1% Yield on Cost (YOC)3.43% YOC with TIF 3.54% YOC with LIHTC Allocation 7.50% Source: Developer Financial Documents; Economic & Planning Systems 272 Economic & Planning Systems, Inc. Page | 11 Operating expenses are estimated at $318,948 per year and include utilities, taxes, insurance, and management and maintenance expenses. The estimated operating expenses fall within the expected range of 25 to 35 percent of gross income. Total net operating income (NOI) for the project is estimated at $763,809 per year. With no subsidies, the project’s yield on cost (YOC) is 5.5 percent. With the Phase 2 TIF subsidy of $2,628,302, the YOC is 6.66 percent, which is still below the 7.5 hurdle rate. This project becomes more feasible when combined with Phase 1 and the associated LIHTC developer fee, otherwise it would not clear the hurdle rate. Table 9. Net Operating Income (NOI) – Phase 2 Description Lease Rate Total % of Total Revenue Rent/SF/Mo % of PGI Residential Revenue $1,047,639 100.0% 80% AMI (Phase 2) Studio $0.00 $0 0.0% 1 Bedrooms /1 Bath $3.19 $727,056 69.4% 2 Bedrooms /2 Bath $2.46 $249,876 23.9% 3 Bedrooms /2 Bath $1.90 $75,708 7.2% 4 Bedrooms /2 Bath $0.00 $0 0.0% Total/Average $2.85 $1,052,640 100.5% Concessions --$0 0.0% Bad Debt ---$5,001 -0.5% Other Income $87,500 8.1% Utility Reimbursement Income $37,500 3.5% Garage Income $0 0.0% Other Income / Parking $50,000 4.6% Less: Vacancy (5.0% per year)-$52,382 -4.8% Effective Gross Income (EGI)$1,082,757 103.4% Expenditures % of EGI Total Operating Expenses -$318,948 29.5% Net Operating Income (NOI)$763,809 70.5% Yield on Cost (YOC)5.50% YOC with TIF 6.66% Source: Developer Financial Documents; Economic & Planning Systems 273 Memorandum: 7th and Aspen TIF Request Review Page | 12 Combined When combining both Phase 1 and Phase 2, the stabilized EGI of the project is $1.6 million, as shown in Table 10. Total operating expenditures are $467,870 and the NOI is $1.2 million. With a hurdle rate of 7.5 percent, the development gap without subsidy is $10.4 million resulting in a YOC of 4.52 percent. With the LITHC allocation and TIF subsidy, the combined project YOC would be 7.1 percent, which does not clear the 7.5 percent hurdle rate. Table 10. Combined NOI Description Combined REVENUE EFFECTIVE GROSS INCOME (EGI)$1,656,676 EXPENDITURES TOTAL OPERATING EXPENDITURES -$467,870 NET OPERATING INCOME (NOI)$1,188,806 YIELD ON COST (YOC) HURDLE RATE 7.5% Net Development Cost Target $15,850,745 DEVELOPMENT COSTS Total Construction Cost $26,297,139 Less: Net Development Cost Target $15,850,745 GAP: Actual less Target $10,446,394 YIELD ON COST (YOC) WITHOUT SUBSIDY 4.52% Project Cost Total Development Cost $26,297,139 Less: Present Value of LIHTC Allocation $6,737,063 Less: Present Value of TIF $2,819,525 Net Cost $16,740,550 YIELD ON COST (YOC) WITH SUBSIDY 7.10% TIF Only 5.06% LIHTC Only 6.08% Source: Developer Financial Documents; Economic & Planning Systems 274 Economic & Planning Systems, Inc. Page | 13 Unleveraged Discounted Cash Flows (DCF) Phase 1 For Phase 1, EPS evaluated the unleveraged cash flow for the project to consider the impact of the Low-Income Housing Tax Credit (LIHTC) equity. An unleveraged analysis considers a project’s financial performance without debt. Project feasibility is measured using unlevered DCF because the sale of the credits will be used to pay off the difference between the construction loan and permanent loan when the project is refinanced in Year 2. If this loan information were included, it would depict an inaccurate internal rate of return since minimal initial equity is put into the project. Without the TIF and LIHTC credits, the project would require a larger permanent loan and equity contribution. With LIHTC, the project yields a net present value (NPV) of $1.5 million at a 7.5 percent discount rate and an internal rate of return of 9.71 percent, as shown in Table 11. With the TIF, the proposed project yields a net present value (NPV) of $1.9 million at a 7.5 percent discount rate, equating to an IRR of 10.43 percent. Given that the IRR is higher than the discount rate, this provides an indication that the project is feasible. Table 11. Unleveraged Project Returns – Phase 1 The addition of TIF from the City improves the returns in Phase 1, but not to a level that is judged to be excessive. The attractiveness of the LIHTC program is the allowance of developer fees in the eligible cost basis, in this case $1.4 million. The developer fees are large enough to attract investment. The cash flow from a LIHTC project typically can cover operating and maintenance costs but is not enough to cover debt financing and developer profit comparable to a market rate project. Year Land and Construction Costs NOI Disposition Income Net Cash Flows w/o Subsidy 4% and 9% Tax Credit Contribution 4% and 9% Tax Credit Proceeds TIF Request Net Cash Flows w/ Subsidy 2024 -$3,031,934 $0 $0 -$3,031,934 $892,550 $0 $395,759 -$1,743,625 2025 -$8,651,603 $0 $0 -$8,651,603 $0 $0 $0 -$8,651,603 2026 -$720,967 $442,167 $0 -$278,800 $0 $0 $0 -$278,800 2027 $0 $451,010 $0 $451,010 $0 $6,765,755 $0 $7,216,765 2028 $0 $460,031 $0 $460,031 $0 $0 $0 $460,0312029$0 $469,231 $0 $469,231 $0 $0 $0 $469,231 2030 $0 $478,616 $0 $478,616 $0 $0 $0 $478,616 2031 $0 $488,188 $0 $488,188 $0 $0 $0 $488,188 2032 $0 $497,952 $0 $497,952 $0 $0 $0 $497,952 2033 $0 $507,911 $0 $507,911 $0 $0 $0 $507,911 2034 $0 $518,069 $0 $518,069 $0 $0 $0 $518,069 2035 $0 $528,431 $0 $528,431 $0 $0 $0 $528,4312036$0 $537,218 $0 $537,218 $0 $0 $0 $537,218 2037 $0 $547,962 $0 $547,962 $0 $0 $0 $547,962 2038 $0 $558,921 $0 $558,921 $0 $0 $0 $558,921 2039 $0 $570,100 $8,677,792 $9,247,892 $0 $0 $0 $9,247,892 Net Cash Flows -$12,404,504 $7,055,805 $8,677,792 $3,329,093 $892,550 $6,765,755 $395,759 $11,383,157 LIHTC Subsidy LIHTC and TIF Subsidy Discount Rate 7.50%Discount Rate 7.50% NPV $1,458,361 NPV $1,854,120 IRR 9.71%IRR 10.43% Source: Developer Financial Documents; Economic & Planning Systems 275 Memorandum: 7th and Aspen TIF Request Review Page | 14 Phase 2 For Phase 2, EPS evaluated the unleveraged returns for the project to do a consistent analysis for both phases. An unleveraged analysis considers a project’s financial performance without debt. Without TIF, the proposed project yields a net present value (NPV) of -$3.6 million at a 9.5 percent discount rate and an internal rate of return of 5.89 percent, as shown in Table 12. Given that the IRR is lower than the discount rate, this provides an indication that the project is not feasible without some form of subsidy. With the public subsidy, the proposed project yields a net present value (NPV) of -$1.4 million at a 9.5 percent discount rate, equating to an IRR of 7.98 percent. With the TIF funding, the IRR makes significant strides towards clearing the hurdle rate but still does not reach the targeted rates of returns. Table 12. Unleveraged Project Returns – Phase 2 Year Construction Costs NOI Disposition Income Net Cash Flows w/o Subsidy TIF Request Initial Investment TIF Request Net Cash Flows w/ Subsidy 2024 -$4,627,579 $0 $0 -$4,627,579 $428,302 $0 -$4,199,278 2025 -$7,941,476 $0 $0 -$7,941,476 $0 $0 -$7,941,476 2026 -$1,323,579 $788,128 $0 -$535,451 $0 $2,200,000 $1,664,549 2027 $0 $800,507 $0 $800,507 $0 $0 $800,507 2028 $0 $813,032 $0 $813,032 $0 $0 $813,032 2029 $0 $825,703 $0 $825,703 $0 $0 $825,703 2030 $0 $838,519 $0 $838,519 $0 $0 $838,519 2031 $0 $851,481 $0 $851,481 $0 $0 $851,481 2032 $0 $864,588 $0 $864,588 $0 $0 $864,588 2033 $0 $877,840 $0 $877,840 $0 $0 $877,840 2034 $0 $891,235 $0 $891,235 $0 $0 $891,235 2035 $0 $904,773 $0 $904,773 $0 $0 $904,773 2036 $0 $858,192 $0 $858,192 $0 $0 $858,192 2037 $0 $871,316 $0 $871,316 $0 $0 $871,316 2038 $0 $884,581 $0 $884,581 $0 $0 $884,581 2039 $0 $897,986 $13,743,078 $14,641,064 $0 $0 $14,641,064 Net Cash Flows -$13,892,635 $11,967,882 $13,743,078 $11,818,326 $428,302 $2,200,000 $14,446,628 No Subsidy Subsidy Discount Rate 9.50%Discount Rate 9.50% NPV -$3,632,408 NPV -$1,369,283 IRR 5.89%IRR 7.98% Source: Developer Financial Documents; Economic & Planning Systems 276 Economic & Planning Systems, Inc. Page | 15 Conclusions With essentially no equity invested, a developer fee of 15 percent, an NPV of $1.9 million, and an IRR of 10.43 percent, Phase 1 generates reasonable returns in EPS’ opinion. This is due to the $6.7 million received from the sale of LITHC credits, which is the purpose of the federal LIHTC program – to attract private investment to build affordable housing. Given that the City is only subsidizing $395,759 of Phase 1 due to City policy, it is EPS’ opinion that the TIF funds are warranted for Phase 1. For Phase 2, the developer invests 40 percent of the uses as equity and funds the remainder of the project with debt and TIF funding of $2.6 million. Without any TIF funding, the project’s NPV is -$3.6 million. With the initial TIF funding of $428,302 and the Year 2 TIF funding of $2.2 million, the project becomes more realistic with an NPV of -$1.4 million. Therefore, in EPS’ opinion the TIF funds for Phase 2 of the project are warranted. 277