HomeMy WebLinkAbout05-26-26 - Downtown Urban Renewal District Board - Agendas & Packet MaterialsA. Call meeting to order - 12:00 p.m.
B. Disclosures
C. Changes to the Agenda
D. Approval of Minutes
D.1 Approve April DURD Meeting Minutes(Staley)
E. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board
THE DOWNTOWN AREA URBAN RENEWAL DISTRICT BOARD OF BOZEMAN, MONTANA
DURD AGENDA
Tuesday, May 26, 2026
General information about the Downtown Area Urban Renewal District Board is available in our
Laserfiche repository.
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 12:00pm on the day of the
meeting. At the direction of the City Commission, anonymous public comments are not distributed to
the Board or staff.
Public comments will also be accepted in-person and through Video Conference during the appropriate
agenda items.
As always, the meeting will be streamed through the Commission's video page and available in the
City on cable channel 190.
For more information please contact Ellie Staley, ellie@downtownbozeman.org
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
+1 346 248 7799
Access code: 956 1935 4304
This is the time to comment on any non-agenda matter falling within the scope of the Downtown
Urban Renewal District Board. 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 Board cannot take action on any item which does not appear on the agenda. All
persons addressing the Board shall speak in a civil and courteous manner and members of the
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F. Special Presentation
F.1 MSU Strategic Plan Outreach(Kate Sutherland )
F.2 Bozeman Creek Vision Plan Presentation(Jon Henderson)
G. Action Items
G.1 Approve or Deny 302 East Mendenhall Infrastructure Grant Request for proposed sewer
repairs.(Staley)
H. FYI/Discussion
H.1 Executive Director's May 2026 Report (Staley)
I. Adjournment
audience shall be respectful of others. Please state your name, and state whether you are a
resident of the city or a property owner within the city in an audible tone of voice for the record
and limit your comments to three minutes.
For more information please contact Ellie Staley, Downtown Bozeman Partnership,
ellie@downtownbozeman.org
This board generally meets the 3rd Tuesday of the month from 12:00 to 1:30pm
City Board meetings are open to all members of the public. If you have a disability that requires
assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232.
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Memorandum
REPORT TO:Downtown Area Urban Renewal District Board
FROM:Ellie Staley, Downtown Bozeman Partnership
SUBJECT:Approve April DURD Meeting Minutes
MEETING DATE:May 26, 2026
AGENDA ITEM TYPE:Minutes
RECOMMENDATION:I move to approve the meeting minutes from the following board meetings
from April 2026.
STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant
Downtown, Midtown, and other commercial districts and neighborhood
centers – including higher densities and intensification of use in these key
areas.
BACKGROUND:Approval of Monthly Minutes, as required
UNRESOLVED ISSUES:None.
ALTERNATIVES:As suggested by board.
FISCAL EFFECTS:None.
Attachments:
Downtown URD April 2026 Board Meeting Minutes.pdf
Report compiled on: May 19, 2026
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Downtown URD Board Meeting Minutes, April 2026
Page 1 of 3
THE DOWNTOWN URD BOARD MEETING OF BOZEMAN, MONTANA
MINUTES
April 22, 2026
General information about the Downtown Area Urban Renewal District Board is available in our Laserfiche
repository.
A) 00:04:17 Call meeting to order - 12:00 p.m. Present: Amy Horton, Tony Renslow, Jake Van Dusen, Marley McKenna, Sky Cook, Nicholas Wickes,
John How, Ellie Staley, Jennifer Madgic
Absent: None
Excused: Douglas Fischer
B) 00:04:22 Disclosures
C) 00:04:31 Changes to the Agenda
D) 00:05:09 Approval of Minutes
D.1 00:05:11 Approve Meeting Minutes
Downtown URD March 2026 Board Meeting Minutes.docx
00:05:38 Motion to approve I move to approve the meeting minutes from the following board meetings
from March 2026.
Nicholas Wickes: Motion
Jake Van Dusen: 2nd
00:05:38 Vote on the Motion to approve I move to approve the meeting minutes from the following board
meetings from March 2026. The Motion carried 6 - 0.
Approve:
Amy Horton
Tony Renslow
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Downtown URD Board Meeting Minutes, April 2026
Page 2 of 3
Jake Van Dusen
Marley McKenna
Sky Cook
John How
Disapprove:
None
E) 00:06:01 Public Comments on Non-agenda Items Falling within the Purview and
Jurisdiction of the Board
F) 00:06:35 Action Items
F.1 00:06:37 Monthly Finance Report and FINAL FY27-28 Budget & Work Plan Review
and Approval.
URD Finance Report 4-26.pdf
DURD FY27 Work Plan_DRAFT_3.pdf
DTN URD Budget FY2027-28 DRAFT_3.pdf
00:34:51 Motion to approve I move to approve the fiscal year 2027 2028 budget as presented.
Jake Van Dusen: Motion
Nicholas Wickes: 2nd
00:35:02 Vote on the Motion to approve I move to approve the fiscal year 2027 2028 budget as
presented. The Motion carried 7 - 0.
Approve:
Amy Horton
Tony Renslow
Jake Van Dusen
Marley McKenna
Sky Cook
Nicholas Wickes
John How
Disapprove:
None
G) FYI/Discussion
G.1 00:36:30 Executive Director's April 2026 Report
DBP Monthly ED Report 4-26 DURD.pdf
Downtown Tracking Sheet-Bus. Q2_2026.pdf
Downtown Tracking Sheet-Dev. Q2_2026.pdf
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Downtown URD Board Meeting Minutes, April 2026
Page 3 of 3
H) 01:16:40 Adjournment
For more information please contact Ellie Staley, Downtown Bozeman Partnership,
ellie@downtownbozeman.orgThis board generally meets the 3rd Tuesday of the month from 12:00 to
1:30pm
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Memorandum
REPORT TO:Downtown Area Urban Renewal District Board
FROM:Kate Sutherland, Tyton Partners
James Tobin, Montana State University
SUBJECT:MSU Strategic Plan Outreach
MEETING DATE:May 26, 2026
AGENDA ITEM TYPE:Administration
RECOMMENDATION:Receive presentation.
STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other
public agencies and build on these successes.
BACKGROUND:Montana State University is developing a new strategic plan to guide the
university into its next chapter, and we want to hear from you! This plan will
build on MSU’s recent momentum and set bold priorities to better serve
students, communities, and the state of Montana. Everyone is invited to
share ideas and help define what comes next for MSU.
Additional sessions to be announced. You can learn more about our process,
share your input, or stay updated by visiting
https://www.montana.edu/strategicplan.
UNRESOLVED ISSUES:none
ALTERNATIVES:none
FISCAL EFFECTS:none
Report compiled on: May 19, 2026
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Memorandum
REPORT TO:Downtown Area Urban Renewal District Board
FROM:Jon Henderson, City of Bozeman Assistant City Manager
SUBJECT:Bozeman Creek Vision Plan Presentation
MEETING DATE:May 26, 2026
AGENDA ITEM TYPE:Administration
RECOMMENDATION:Receive presentation.
STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other
public agencies and build on these successes.
BACKGROUND:The City Commission approved a Professional Services Agreement with PORT
Architecture and Urbanism, LLC on January 27th, 2026 to provide consultant
services to assist in the development of the Bozeman Creek Vision Plan.
PORT (and their water resource science and engineering partner Rio ASE
bring a tremendous amount of experience in waterway, public realm, and
ecological planning to this project, to complement the City’s partnership
with #SeeBozemanCreek in helping move this important work forward.
The City Commission also provided direction on modest revisions to the
project goals, in an effort to incorporate public comments resulting in more
clearly worded goals that reflect shared values. To that effect, “Ecological
Health” was added to honor the original intent of the Commission’s priority
interest in the overall health of the creek (while recognizing this effort will
not result in a holistic study of the entire watershed), as well as revising
“Economic Development” to “Economic Vitality” to better reflect the spirit
of highlighting the benefits that come with celebrating the creek through an
urbanized area. Thus, the goals moving forward are as follows:
Enhance flood mitigation efforts
Improve water quality & ecological health
Increase access and connectivity to parks and trails
Support economic vitality opportunities
Strengthen community connection to a vital resource
UNRESOLVED ISSUES:none
ALTERNATIVES:none
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FISCAL EFFECTS:none
Report compiled on: May 19, 2026
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Memorandum
REPORT TO:Downtown Area Urban Renewal District Board
FROM:Ellie Staley, Downtown Bozeman Partnership
SUBJECT:Approve or Deny 302 East Mendenhall Infrastructure Grant Request for
proposed sewer repairs.
MEETING DATE:May 26, 2026
AGENDA ITEM TYPE:Grant
RECOMMENDATION:Approve.
STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant
Downtown, Midtown, and other commercial districts and neighborhood
centers – including higher densities and intensification of use in these key
areas.
BACKGROUND:Approve or deny the 302 East Mendenhall Infrastructure Grant request for
proposed sewer repairs, as submitted. Upon Board approval, a Grant
Agreement with the developer will be executed to finalize the grant
approval process. A Grant Agreement between developer and Downtown
URD will be finalized following board approval per city legal requirements.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As suggested by the Board.
FISCAL EFFECTS:Value sought for proposed public improvements: $372,265.16.
Attachments:
24147 APPROVED staff report CC reconsideration.pdf
Bozeman Hotel TIF Application.pdf
Report compiled on: May 19, 2026
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 1 of 22
24147; Boutique Hotel Site Plan/Commercial Certificate of Appropriateness with Deviation
Application
Public Meeting Date:
City Commission meeting will be held – Tuesday, August 5, 2025, at 6:00 pm
Project Description: Site Plan application proposes a six-story hotel with amenities on a vacant parcel
that currently serves as a parking lot. The ground floor includes a hotel lobby, commercial space, and
back of house operations. Each subsequent floor includes hotel rooms, and a rooftop bar is proposed on
the sixth level. The total number of hotel rooms is 71. Site improvements include sidewalk, streetscape,
landscaping, and additional site amenities. The applicant proposes off-site parking to accommodate the
required parking. The property is zoned B-3 and is in the Neighborhood Conservation Overlay District
(NCOD).
The project is located directly adjacent to Bozeman Creek, which requires a 35-foot setback along both
sides of the creek per BMC 38.410.100. While the proposed building is located outside of the watercourse
setback, the applicant is requesting to allow for up to a 30-foot encroachment into the watercourse setback
for open space hardscaping and patio space, a 4-foot awning, and supporting utility infrastructure. Per
BMC 38.200.010.A, the City Commission is the review authority where a deviation is more than 20
percent of the standard.
A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding
zoning regulations and to encourage activity that would contribute to the overall historic character of the
community. The criteria for granting deviations from the underlying zoning requirements are outlined in
BMC 38.340.070.
Project Location: 240 E. Mendenhall St., Bozeman Original Plat, S07, T02 S, R06 E, Block D, Parcel A
Plat C-1-H, City of Bozeman, Gallatin County, Montana
Staff Finding: The application does conform to standards and criteria and is sufficient for approval.
Recommended Motion: Having reviewed and considered the application materials, public comment, and
all the information presented, I hereby adopt the staff findings as presented in the staff report for
application 24147 that the application does meet the criteria required for approval and move to approve
with conditions the Boutique Hotel application for the deviation requested to allow for encroachment of
open space hardscaping, a 4-foot awning, and supporting utility infrastructure into the 35-foot
watercourse setback.
Report Date: August 7, 2025
Reviewing Staff: Sarah Rosenberg, AICP, Associate Planner
Simon Lindley, Project Engineer
Agenda Item Type: Action (Quasi-judicial)
EXECUTIVE SUMMARY
This report is based on the application materials submitted and public comment received to date. The full
application and file of record can be viewed digitally at the Community Development Department at 20
E. Olive Street, Bozeman, MT 59715, as well as digitally at
https://www.bozeman.net/departments/community-development/planning/project-information-portal,
select the “Project Documents Folder” link and navigate to application 24147. They are also available in
the City’s Laserfische folder and may be accessed through the Community Development viewer.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 2 of 22
Unresolved Issues:
There are no unresolved issues with this application.
Project Summary:
The Department of Community Development received a site plan/commercial certificate of
appropriateness with a deviation application on March 25, 2024, proposing a six-story hotel with
amenities on a vacant parcel that currently serves as a parking lot. There is a basement that provides
covered bicycle parking, storage, and supporting building service infrastructure. The first floor includes a
hotel lobby, commercial space, and back of house operations. Each subsequent floor includes hotel rooms,
and a rooftop bar is proposed on the sixth level. The total number of hotel rooms is 71.
Included with this application is a deviation request to allow for encroachment of structures into the 35-
foot watercourse setback along Bozeman Creek. Per 38.410.100, “where a development is crossed by or
is adjacent to a watercourse, the developer must mitigate the impacts of the development on the
watercourse. This mitigation may not be less restrictive than the requirements of the city floodplain
regulations or any other applicable regulation of this chapter. The purpose of this mitigation is bank
stabilization; sediment, nutrient and pollution removal; and flood control.” Since the subject property was
platted prior to July 10, 2002, the setback along Bozeman creek is 35-feet along both sides of the
watercourse. The development proposes hardscaping for the open space, a 4-foot awning, and supporting
utility infrastructure to encroach about 30-feet into the watercourse setback along the eastern portion of
the property.
Per 38.200.010.A.1, where the deviation is for more than 20 percent of the standard, the City Commission
is the review authority and must conduct a public hearing for this application. The application must meet
the standards for granting deviations in section 38.340.070 of the Unified Development Code. A
description and staff evaluation are outlined in this report.
This site had a previous site plan application (no. 19445) with deviation request that was approved on
March 9, 2020, by the City Commission to allow for encroachment of open space hardscaping and a 4-
foot awning into the 35-foot watercourse setback. The project was to develop a six-story mixed-use
building with open space along Bozeman Creek. The approval of the application expired.
On March 11, 2025, the Development Review Committee (DRC) found the application contained the
required application materials with sufficient information for the City to consider the application
adequate. The DRC finds that the application does conform to standards and criteria and is sufficient for
conditional approval.
The public noticing period ran from March 17 to April 15, 2025. The City has received twenty-nine letters
of public comment on the application as of the writing of this report. Public comment is accepted until
such time that the City Commission closes the public comment period.
The City Commission heard this application at its regular meeting on May 20, 2025, and resulted in
denial. The City Commission voted to reconsider the application at its regular meeting held on Tuesday,
June 24 to a certain date of August 5, 2025.
Alternatives:
1. Deny the application based on the Commission’s findings of non-compliance with the applicable
criteria contained within the staff report; or
2. Approve the application.
3. Approve the application with the addition of specific conditions based on the Commission’s
findings.
4. Continue the public meeting on the application, with specific direction to staff or the applicant to
supply additional information or to address specific items.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 3 of 22
Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 1
Unresolved Issues: ................................................................................................................................ 2
Project Summary: .................................................................................................................................. 2
Alternatives: .......................................................................................................................................... 2
SECTION 1 – MAP & PLAN SERIES .................................................................................................... 4
Exhibit 1 – Location and zoning of subject property ............................................................................ 4
Exhibit 2 – Future Land Use Map ......................................................................................................... 5
Exhibit 3 – Site Plan ............................................................................................................................. 6
Exhibit 4 – Watercourse setback ........................................................................................................... 7
Exhibit 5 – Elevations ........................................................................................................................... 8
SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL .................................................... 10
SECTION 3 – CODE REQUIREMENTS .............................................................................................. 10
SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS ...................................................... 11
SECTION 5 – STAFF ANALYSIS AND FINDINGS ........................................................................... 11
BMC 38.230.100 – Plan Review Criteria ........................................................................................... 11
BMC 38.230.080 – Certificate of Appropriateness Criteria ............................................................... 15
BMC 38.250.050 – Deviations ........................................................................................................... 15
Conformance with adopted City of Bozeman Plans ........................................................................... 18
Conclusion .......................................................................................................................................... 19
APPENDIX A – NOTICING AND PUBLIC COMMENT ................................................................... 20
APPENDIX B – RELEVANT MUNICIPAL STATUTES .................................................................... 21
APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF ........................................... 22
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 4 of 22
SECTION 1 – MAP & PLAN SERIES
Exhibit 1 – Location and zoning of subject property
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 5 of 22
Exhibit 2 – Future Land Use Map
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Exhibit 3 – Site Plan
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Exhibit 4 – Watercourse setback (in red)
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Exhibit 5 – Elevations
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 10 of 22
SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL
Please note that these conditions are in addition to any required code provisions identified in this report.
These conditions are specific to this project.
Recommended Conditions of Approval:
1. BMC 38.340.010.F. The applicant must consult with a qualified professional, approved by the
Director of Community Development, to conduct archeological monitoring or another similar
process before and during excavation work. Any items of significance found must be reported and
cataloged. A report of the process conducted and the findings following the exploration and
monitoring must be submitted to the Community Development Department.
2. BMC 38.340.010.F. The applicant must submit a proposal to the Community Development
Department for an on-site installation that recognizes the history and significance of the site. This
may include, but is not limited to a sign, artwork, plaque, or other commemorative display. The
proposal must specify the design, content, and the intended location on the site. The content must
include, at a minimum, the site's history, historic photographs, and recognition of the creek. The
applicant is encouraged to work with the Downtown Bozeman Partnership and other appropriate
parties to adhere to the Downtown Bozeman Improvement Plan. The proposed installation must be
reviewed and approved by the Community Development Department prior to installation and must
be in place prior to planning approval of final routing for occupancy.
3. The applicant must ensure the exterior patio is a public-use area (as defined by the International
Building Code 2021) that makes exterior spaces available to the general public.
4. Prior to final site plan approval, the applicant must submit additional information to the Community
Development Department depicting the concept submitted at the public hearing on August 5, 2025,
including the reduction in the patio width and the provision of a natural fines path, for review and
approval by the Community Development Director.
5. Prior to final site plan approval, an updated landscape plan must be provided to depict that native
vegetation is used within the 35-foot watercourse setback.
SECTION 3 – CODE REQUIREMENTS
1. BMC 38.220.020. A. Sec. 38.220.020. - Streambed, streambank and/or wetlands permits. The
developer must provide the community development department with a copy of all required
streambed, streambank or wetlands permits, or written notification from the appropriate agency that
a permit is not required, prior to the commencement of any work on the site
2. BMC 38.240.350. A subdivision exemption application is required to aggregate the underlying lots.
The amended plat must be approved and recorded with the Gallatin County Clerk & Recorder prior
to final site plan approval.
3. BMC 38.250.060. Prior to final site plan approval, the applicant must pay the departure fee to allow
an alternative to the transparency standard on the north elevation.
4. BMC 38.540.070. The use depends on off-site parking to meet parking requirements. The applicant
must provide evidence to the Community Development Department of a long-term lease agreement
for parking utilization of the off-site location prior to final site plan approval.
5. BMC 38.270.030. The applicant proposes concurrent construction of the building and the
infrastructure improvements. The applicant must fulfill the requirements of section 38.270.030 D,
BMC prior to the issuance of a building permit for the proposed development or per 38.270.030.C
complete construction of all off-site infrastructure first.
6. BMC 38.600.170.C.4 A floodplain permit must be obtained prior to final site plan approval. The
floodplain permit application and required materials shall be provided to the City floodplain
administrator electronically through the PDox electronic plan review system.
7. BMC 38.600.220.D, that prior to receiving a Certificate of Occupancy, the Applicant must submit a
certification from the design engineer or architect that the completed project conforms with the
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 11 of 22
approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for Non-
Residential Structures acceptable to the Floodplain Administrator.
8. BMC 38.410.130. The development's estimated average municipal water demand is 8.80 ac-feet.
The estimate will be uploaded to the project file. The demand must be offset prior to final site plan
approval. To offset the demand by paying cash-in-lieu of water right a fee of $52,801 must be paid
prior to final site plan approval.
9. BMC Chapter 40, Article 4. Any work on the site must conform to the approved stormwater permit.
10. BMC 38.410.100. The applicant must work with the Engineering Division on any restoration work
beyond the approved landscaping plan. Any additional trees that need to be removed along the creek
bed during the construction process must be approved by the City Forester prior to removal.
11. BMC 34.05.060. and 34.05.070. Valet services that involve the elimination of any on-street parking
along East Mendenhall Street requires approval from the Parking Commission through the
infrastructure review process.
SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS
The Development Review Committee (DRC) determined the application was adequate review on March
11, 2025. The DRC finds that the application conforms to standards and is sufficient for approval with
conditions and code provisions. Furthermore, the DRC finds that the application meets all deviation
criteria and findings to support the approval of the request which are outlined below in this staff report.
While site plan applications are typically reviewed administratively, because the applicant requests a
deviation for more than 20% of the standard, the City Commission retains to itself the review authority
and the approval of the entire application requires the approval of the deviation. The City Commission
meeting will be held Tuesday, May 20, 2025, at 6:00 pm
SECTION 5 – STAFF ANALYSIS AND FINDINGS
Analysis and resulting recommendations are based on the entirety of the application materials, municipal
codes, standards, plans, public comment, and all other materials available during the review period.
Collectively this information is the record of the review. The analysis in this report is a summary of the
completed review.
The applicant is advised that unmet code provisions, or code provisions that are not specifically listed as
conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful
requirements of the Bozeman Municipal Code or State law.
Applicable Plan Review Criteria – Section 38.230, BMC
In considering applications for plan approval, the review authority evaluates the following criteria. This
application must comply with all applicable requirements of BMC chapter 38 including overlay district
requirements. The staff provides findings analyzed under the following relevant sections of code and
applicable plans:
• BMC 38.230.100 – Plan Review Criteria
• BMC 38.230.080 – Certificate of Appropriateness Criteria
• BMC 38.250.050 – Deviations
• Conformance with other City adopted plans
BMC 38.230.100 – Plan Review Criteria
Conformance with City’s adopted Growth Policy (38.100.040.D)
The subject property is designated as Traditional Core. The Bozeman 2020 Community Plan states, “the
traditional core of Bozeman is the historic downtown. This area has an extensive mutually supportive
diversity of uses, a strong pedestrian and multi-modal transportation network, and a rich architectural
character. Essential government services, places of public assembly, and open spaces provide the civic
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 12 of 22
and social core of town. Residential development on upper floors is well established. New residential uses
should be high density. The area along Main Street should be preserved as a place for high pedestrian
activity uses, with strong pedestrian connectivity to other uses on nearby streets. Users are drawn from
the entire planning area and beyond. The intensity of development is high with a Floor Area Ratio well
over 1. Future development should continue to be intense while providing areas of transition to adjacent
areas and preserving the historic character of Main Street.”
The application conforms to the Traditional Core category as it proposes a high intensity development. It
expands upon the existing activity of downtown. It also utilizes an undeveloped site and promotes
pedestrian connectivity.
Conformance with Article 2 – Submittal Material Requirements (38.220)
The site plan and commercial certificate of appropriateness are met with this project. The project
conforms to zoning provisions, community design provisions, and project design provisions. See the
analysis below for how the required standard of each article is met.
Concurrent Construction has been requested by the applicant to allow simultaneous construction of the
proposed building and required supporting infrastructure. The required infrastructure improvements
include adjacent improvements that are subject to BMC 38.270.030.D. The requirements of this section
including City and DEQ infrastructure review, approval from the City Fire Marshall, execution of an
Irrevocable Offer of Dedication, and an acceptable concurrent construction plan, must be met prior to a
building permit being issued for the development.
Conformance with Article 3 – Zoning Provisions (38.300)
The subject property is zoned B-3, Downtown District. “The intent of the downtown B-3 business district
is to provide a central area for the community's business, government service and cultural activities with
urban residential development as an essential supporting use. The downtown B-3 district should be the
area of greatest density of development, intensity of use, and appropriate infill. Design standards
reinforcing the area's historical pedestrian-oriented context are very important.
This district encourages high volume, pedestrian-oriented uses in ground floor space in the "core area" of
the city's central business district, i.e., along Main Street from Grand to Rouse and to the alleys one-half
block north and south from Main Street. Lower volume pedestrian uses such as professional offices may
locate on ground floor space in the downtown B-3 area outside the above-defined core.”
Currently the parcel is vacant and is used as a parking lot. A hotel is a permitted use in the B-3 zone
district. The proposed building meets form and intensity standards as follows:
Per BMC 38.350.050, elevator and stair penthouses are exempt from height limitations provided that no
linear dimension exceed 50 percent of the corresponding street frontage line. These penthouses exceed 4-
feet above the allowable height. Mechanical facilities are exempt from height.
Conformance with Article 4 – Community Design Provisions (38.400)
Setbacks Proposed Allowed
Front 3’ Storefront block frontage - See
Article 5 analysis below
Rear 13’ 0’
Side 1’ 0’
Alley 13’ 5’
Lot Area Proposed Allowed
Max lot coverage 49% 100%
Building Height Proposed Allowed
70’ 70’
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 13 of 22
The applicant provided a Traffic Impact Study conducted by 406 Traffic & Transportation Consulting,
which was thoroughly evaluated by the Engineering Division and found to satisfy standards for trip
generation and level of service evaluations. The development proposes valet service which will eliminate
some on-street parking along East Mendenhall Street. Any substantial encroachment involving the
elimination of any on-street parking within that area of the B-3 zoning district requires approval from the
Parking Commission. Compensation must be provided for each on-street parking space eliminated from
the downtown business district parking inventory in accordance City code outlined in BMC 34.05.060-
070. This process is completed during the City’s infrastructure review process which is a separate process
from site plan review and is managed by the City’s Engineering Division and requires the Parking
Commission’s approval as outlined in code provision number 11.
While there is an alley to the south of the building, there is no vehicular access to the building. Parking is
proposed to be located off-site. Pedestrian improvements include updating the sidewalk along Mendenhall
to be 13 feet wide.
This is an infill project on existing lots on an existing block. A subdivision exemption is required to
aggregate the underlying lots the lots prior to final site plan approval.
The subject property is an infill site with existing infrastructure services the site. The existing 6-inch
sewer main along East Mendenhall Street will be upgraded to 8-inch to accommodate the new use. At the
City’s current CILWR fee rate, the fee for the project is $52,801. Payment must be made prior to final site
plan approval.
An on-site storm water maintenance plan and design report was prepared by TD&H. Site improvements
include area inlets, roof drain piping, trench drains, subsurface infiltration chambers, and permeable
pavers.
Bozeman Creek runs through the subject property along the eastern boundary line which requires the
development to adhere to watercourse setback provisions outlined in BMC 38.410.100. The setback along
Bozeman Creek is 35-feet on both sides. Along the stream bank is a 5-foot non-disturbance zone which
will remain in a natural state and be seeded with native seed if necessary. Between the stream bank and
open space plaza, the landscaping will be improved which includes preserving existing trees and adding
additional landscaping to meet watercourse setback planting requirements.
The open space plaza between the landscaped area and building includes hardscaping which encroaches
roughly 24-feet into the watercourse setback. Supporting utility infrastructure is located on the southern
portion of the property and encroaches roughly 30-feet into the watercourse setback. While the building
itself is out of the watercourse setback, the building awning on the east side encroaches 4-feet into the
watercourse setback. The Bozeman Municipal Code defines setback as “the space on the same lot with a
principal building, which is open and unoccupied from the ground upward or from the ground
downward.” So even though the awning is not on the ground, it still encroaches into the setback.
A deviation is requested to allow for the encroachment of all these structures into the watercourse setback.
See the analysis below on how the criteria is met to satisfy the deviation request.
Since this project is a commercial development on less than one acre, no parkland requirements are
warranted.
Conformance with Article 5 – Project Design
The building fronts onto East Mendenhall Street which is designated storefront block frontage meaning
that the building and site must be designed in a vibrant and active manner. The building is setback 3-feet
from the front property line to accommodate a wider sidewalk. There is a building entrance that faces the
street and includes an awning that wraps around the entire perimeter of the building.
The applicant requests a departure to allow façade transparency to be 55% where 60% is required. This
reduction is based on the façade articulation along the ground floor rather than a flat façade. The intent is
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 14 of 22
still met through the 5% reduction of transparency that still promotes visual interest for pedestrians. This
departure meets the criteria and is sufficient for approval.
The proposed sidewalk along East Mendenhall Street is widened to 13 feet. Landscaping, street trees, and
bike racks are incorporated into the wider sidewalk to enhance the pedestrian experience. The open space
plaza to the east of the building incorporates seating and robust landscaping that promotes circulation and
amenities for pedestrians. While open space is not required for the project since the parcel is less than one
acre, roughly thirty percent of the property incorporates open space area to minimize the impact on the
watercourse setback and floodplain while providing a pedestrian amenity. To ensure that the plaza can be
enjoyed by all and to support access to Bozeman Creek, condition of approval number 3 requires that the
property owner ensure that the east side patio of the building be a public use area as defined in the
International Building Code 2021. That code states that a public use area is a term utilized to describe all
interior and exterior spaces or rooms that may be occupied by the general public for any amount of time.
Spaces that are utilized by the general public may be located in facilities that are publicly or privately
owned. Examples include the lobby in an office building, a high-school gymnasium with assembly
seating, an open-air stadium, a multipurpose room, an exposition hall, a restaurant dining room, a health
club, etc.
Trash services are located at the rear of the building along the alley. No screening measures are required
for services on the alley. Utility meters are located on the east façade and screened by landscaping.
The building meets building design standards. It utilizes durable high-quality materials through limestone
veneer, cast stone, and metal cladding. The ground level creates a human-scaled façade pattern through
façade articulation features such as windows, entries, weather protection features, and a change in
materials. Furthermore, since the building is in the B-3 zone district, it adheres to the NCOD Design
Guidelines chapter 4-B which is analyzed above.
Parking for the building will be provided off-site through an off-site parking agreement. The development
proposes to use the parking lot directly east to accommodate the 46 spaces required for the use. The
development takes advantage of the allowable reductions outlined in BMC 38.540.050.C. Prior to final
site plan approval, the applicant must provide an executed off-site parking agreement. The required
bicycle parking is 10 spaces. The development proposes 5 bike racks along the sidewalk on East
Mendenhall Street and 12 covered spaces in a bike room in the basement.
The project provides the appropriate landscaping required as outlined in BMC 38.550 including adding
grated street trees along East Mendenhall Street, drought tolerant plants, and the use of permanent
irrigation. The applicant proposes to do some restoration work along the creek bed which includes the
protection of existing trees, the removal of a few, and adding a native seed mixture if necessary. Code
provision number 8 requires the applicant communicate with the City if any additional trees will be
removed and any additional restoration work needs to be done.
All site lighting meets full cutoff standards as required by code.
Conformance with Article 6 – Floodplain Regulations (38.600)
The Site lies within a FEMA-regulated special flood hazard area for Bozeman Creek, which includes the
100-year floodway and floodplain fringe. The building is located within the floodplain fringe but outside
the floodway. Building design features are intended to mitigate the flood potential to both the building and
abutting pedestrian passageways.
The floodplain regulations in BMC 38.600 allow this particular use but require floodproofing or elevating
the building to the base flood elevation (BFE) plus 2 feet. The building’s main elevation is proposed at the
BFE plus 2 feet along most of the flood reach. The openings/windows that reside on the north side of the
building are proposed to be floodproofed to the BFE plus 2 feet. Areas below the BFE, such as the
basement, are allowable as the building is elevated or floodproofed.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 15 of 22
Code Provision 6 requires, per BMC 38.600.170.C.4, that prior to final site plan approval, the Applicant
must obtain a floodplain permit.
Code Provision 7 requires, per 38.600.220.D, that prior to receiving a Certificate of Occupancy, the
Applicant must submit a certification from the design engineer or architect that the completed project
conforms with the approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for
Non-Residential Structures acceptable to the Floodplain Administrator.
BMC 38.230.080 – Certificate of Appropriateness Criteria
Conformance with Overlay District Standards (38.340)
The proposed project is located within the Neighborhood Conservation Overlay District (NCOD) but is
not within a historic district. As there is no building on the site, no demolition review is required. It is
reviewed under the classification of new infill and construction that falls under the standards for
certificate of appropriateness outlined in BMC 38.340.050 and the NCOD Design Guidelines, specifically
chapter 4B which applies to properties zoned B-3 and outside of the Main Street Historic District. The
building and site design meets the standards conforms to this section.
The area around the Main Street Historic District should accommodate compatible contemporary
development of greater height and density. This project provides density that meets the goals and
objectives of the Downtown Bozeman Improvement Plan. The building design uses a combination of
materials such as limestone veneer and metal and is articulated through façade plane changes and the use
of awnings and windows along the street facing and open space facades. To further incorporate into the
downtown business district, the use of a flat roof line is used.
The site design creates a strong connection for pedestrians by incorporating a wide sidewalk along East
Mendenhall Street, a visible and publicly accessible open space along Bozeman Creek, and a variety of
different landscaping.
BMC 38.250.050 – Deviations
Conformance for Granting Deviations (38.340.070)
The subject property is located directly adjacent to Bozeman Creek which requires a 35-foot setback
along both sides of the creek per BMC 38.410.100. Section 38.410.100.A.1.a.(2) states that “no fence,
residential or commercial structure, fill material, parking or other similar improvements shall be located
within required watercourse setback.” Bozeman Creek runs along the east boundary of the property and
the watercourse setback encroaches 35-feet into the parcel. The development proposes open space
hardscaping, a 4-foot awning, and supporting utility infrastructure to be in the watercourse setback. The
open space plaza encroaches roughly 24-feet into the watercourse setback. Supporting utility
infrastructure is located on the southern portion of the property and encroaches roughly 30-feet into the
watercourse setback.
While the building does not encroach into the setback, the Bozeman Municipal Code defines setback, in
the relevant portion, as “the space on the same lot with a principal building, which is open and
unoccupied from the ground upward or from the ground downward.” Therefore, the proposed awning
encroaches 4-feet into the watercourse setback and is not allowed under BMC 38.410.100 absent an
approved deviation.
A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding
zoning regulations and to encourage activity that would contribute to the overall historic character of the
community. Pursuant to Section 38.340.070 BMC, there are three criteria for granting deviations from the
underlying zoning requirement.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 16 of 22
1. Modification must be more historically appropriate for the building and site in question and
the adjacent properties, as determined by the standards in Section 38.340.050, than would
be achieved under a literal enforcement of this chapter.
Bozeman Creek was channelized through the center of town back in the early days of the area’s
settlement, as evidenced by Sanborn maps dating from 1891. It was narrowed, straightened, and banks
armored with rock, concrete, and other materials. Since the realignment, Bozeman Creek was diverted to
be utilized for the built environment. Structures were built up to and over the creek. On this very parcel,
the pattern of development shows that structures were built over the creek and next to it as depicted in the
figures below.
Figure 1: Original City Plat with Bozeman Creek in natural flowing state. Figure 2: 1884 Sanborn Map depicting channelized Bozeman Creek
Project site in orange box.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 17 of 22
‘
Figure 3: 1942 Aerial of Downtown Bozeman
Although the proposed open space and building awning do not replicate what was traditional to the
construction or style of the early settlement of Bozeman, the DRC finds that the traditional placement of
structures close to the creek is historically appropriate to the site. Bozeman Creek was forced to not
meander through downtown, but instead to be utilized for industry and more recently recreation. Portions
of the retaining walls which form the embankments for segments of the creek are former rubble
foundations of structures no longer present.
Furthermore, along much of the historic development pattern along Bozeman Creek, there are structures
that abut up against it or are directly above Bozeman Creek. To the south of the subject property, 311 E.
Main (Bar IX) cantilevers over the creek and has an outdoor patio that is adjacent to Bozeman Creek. To
the north, 317 E. Mendenhall (Fresco restaurant) and 121 N. Rouse (City Hall) both have buildings that
front very closely to the creek within the Bozeman Creek watercourse setback.
Figure 4: Back of Bar IX building, date unknown Figure 5: Back of Bar IX building, present day
2. Modifications will have minimal adverse effects on abutting properties or the permitted
uses thereof.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 18 of 22
The proposed deviations will have minimal adverse effects on neighboring properties and their permitted
uses. The planned open space presents an opportunity to enhance both the creek and adjacent properties,
offering guests and the public a park-like setting in Downtown Bozeman along Bozeman Creek. As noted,
many nearby properties are built up to or over the creek, and this development aligns with the established
pattern and character of the area while maintaining minimal adverse effects on neighboring properties.
3. Modifications must assure the protection of the public health, safety and general welfare.
Approvals may be conditioned to assure such protection, and such conditions may include a
time period within which alterations will be completed; landscaping and maintenance
thereof; architectural, site plan and landscape design modifications, or any other conditions
in conformity with the intent and purpose set forth in this part 1.
The DRC has identified no significant barriers to public health, safety and general welfare from the
proposed deviations. The restoration and rehabilitation activity along Bozeman Creek will affect how
people interact with the creek. Currently, Bozeman Creek is overgrown, walled and/or fenced throughout
Downtown. The requested deviation will improve the open space adjacent to the creek and revitalize the
waterway by making it visible to the public and highlighting it as a unique amenity to Bozeman.
The enhancement of the open space will allow the public to utilize the area adjacent to Bozeman Creek. A
proposed railing and retaining wall will alleviate public safety concerns regarding public access to the
creek. The permeable pavers will help reduce storm water runoff and restore a functioning creek to
enhance public health. The existing landscaping is overgrown and will be cleaned up to further promote
the health of the stream bank. The protruding awning does not have any sort of impact on the public
health, safety, and general welfare but rather provides sheltered relief within the open space.
Conformance with adopted City of Bozeman Plans
In addition to the deviation criteria above, the Uniform Development Code (chapter 38 BMC) requires
conformance with specific plans adopted by the City of Bozeman. The Downtown Bozeman
Improvement Plan and Downtown Creek Enhancement Plan are applicable to this project. Staff has made
three conditions of approval that are supported by these plans to help achieve the goals of enhancing and
engaging Bozeman Creek.
In 2012, the City of Bozeman developed the Downtown Creek Enhancement Plan (DCEP), which created
goals, objectives, and strategies to assist in enhancing Bozeman Creek through downtown such as
creating ways to inform residents about the creek from its ecological services to the past and present
importance to the community. The DCEP also emphasizes on restoration of the creek to create a more
functioning stream ecosystem that can be enjoyed by all.
The Downtown Bozeman Improvement Plan (DBIP) was adopted in 2019 by the City Commission. One
of the themes of the DBIP is to connect to nature and culture by enhancing the natural systems and
increasing public spaces. Bozeman Creek flows right through downtown, but it is piped, hidden under
roads and parking lots. Much of the banks of the creek are largely overgrown or fenced. The goal of
enhancing Bozeman Creek is to reveal the creek, which would help create places to linger and points to
interact with the creek. Revealing the creek can also help produce strategies that help find healthier ways
for the natural waterways to filter storm water.
Based on the goals and objectives of these two plans, the DRC has proposed three conditions of approval
to help achieve the goals of enhancing and engaging Bozeman Creek. The requested deviation to allow
for encroachment into the watercourse setback will further assist in achieving these goals. The enhanced
open space creates points of access to Bozeman Creek’s edge and allows the public to experience the
waterways. To ensure that the public can experience the creek, condition of approval number three
requires a public access easement to be created for the open space area that fronts onto Bozeman Creek.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 19 of 22
Both plans emphasize creating some sort of commemorative display along the creek to provide
educational opportunities on the history and ecological service the creek provides. Condition of approval
number two notes that the applicant must create a commemorative display that highlights a variety of
content for the public to view. These sorts of displays are already occurring along Bozeman Creek such as
the Revitalize Relatives art installation and demonstration garden outside of City Hall and the restoration
of the creek in Bogert Park that is highlighted through educational signage.
Figure 6: Revitalize Relatives Art Installation outside of City Hall Figure 7: Demonstration Garden outside of City Hall
Figure 8: Restoration of Bozeman Creek in Bogert Park Figure 9: Restoration of Bozeman Creek in Bogert Park
Condition number one requires the applicant to conduct archeological monitoring or another similar
technique for the site before and during construction to ensure that if there are any artifacts that are found
that they be reported and cataloged, and to provide a report to the City of the process and findings
following initial construction. Prior to when white settlers came to this area, Native Americans relied on
the abundant resources of the valley, including this creek. When white settlers came to this area and
settled Bozeman, this area along East Mendenhall Street was considered Bozeman’s Red Light District.
An archeological dig or like process could discover artifacts that may bring forth relevant historical
information about this area.
Conclusion
The Development Review Committee finds that the application conforms with the site plan review
criteria, certificate of appropriateness criteria, and meets the criteria for granting the deviation for
encroachment into the watercourse setback and finds the application sufficient for approval. If the City
Commission denies the deviation request, the applicant will have to apply for a new site plan application
that does not have anything located in the watercourse setback per the pre-2002 watercourse setback
BMC standard.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 20 of 22
APPENDIX A – NOTICING AND PUBLIC COMMENT
Notice was provided at least 15 and not more than 45 days prior to the City Commission public meeting
per BMC 38.220.420. The City scheduled public notice for this application on March 14, 2025. The
applicant posted public notice on the subject property on March 14, 2025. The applicant sent public notice
to physically adjacent landowners of record within 200-feet of the subject property via first class mail on
March 14, 2025. It was also posted in the Bozeman Daily Chronicle on March 29 and April 3, 2025. On
April 15, 2025, the City Commission continued the review of this application to May 20, 2025. No
additional project notice was required at that time as the project was continued to a date certain for
review.
The City has received twenty nine public comments as of the writing of this staff report. A link to the
public comment received can be found here:
https://weblink.bozeman.net/WebLink/Browse.aspx?id=297513&dbid=0&repo=BOZEMAN
The public comments not in favor of the project commented on the following issues. The comments are
summarized by topic with staff response below:
Not in favor of a reduced water course setback. The code includes a deviation process to grant a
reduced setback for this property as this property is within the Neighborhood Conservation Overlay
District. The findings in the staff report conclude that the criteria have been met in order for the deviation
to be approved.
Not in favor of the use of the adjacent parking lot for off-site parking. The code allows the proposed
use of off-site parking for a project. The code includes criteria that must be met in order for the off-site
parking to be approved. The findings in the staff report conclude that the criteria can be met in order for
the off-site parking to be approved. A code provision from this code section is included in the approval
requirements for the project. It requires that an executed long term parking agreement for the proposed
offsite parking be provided to the Community Development Department prior to final site plan approval
for the Boutique Hotel. Final site plan approval is required prior to building permit issuance for the
construction of the hotel. There is an existing ten year long term lease on this parking area that expires in
2027 related to the Bozeman Hotel Conditional Use Permit for on premises consumption of alcohol. If
this project were to get an executed long term parking agreement for the current parking area leased by
the Bozeman Hotel, it would not place the Bozeman Hotel Conditional Use Permit out of compliance
with its approval as it satisfied the long term lease agreement accepted by the City Commission and the
Director of Community Development at the time the conditional use permit was granted. There is nothing
in the code that directs the property owner of the parking lot to lease to one individual/party or another.
Both the Bozeman Hotel and the Boutique Hotel can negotiate for the agreement to use the parking lot for
off-site parking as allowed by the code.
Loss of parking used by existing downtown business. The Bozeman growth policy, Downtown
Improvement Plan, and the development code support the infill and redevelopment of existing parking
areas within the City. The code does not require a district wide analysis of parking with an individual site
plan application. The code requires that an individual project must provide an analysis of the parking
demand for the proposed use of the property. The parking must be accounted for according to code
requirements that exist at the time that the application is deemed adequate. As long as the proposed
project meets the required parking by either providing it on site or offsite according to the requirements of
the code the project is sufficient for approval by the review authority.
The need for a parking analysis for the general area. The City has conducted a downtown parking
plan. There are strategies to manage parking downtown provided in that plan. The development code does
not require that an individual development application like the Boutique Hotel to implement the City’s
parking plan other than complying with the development standards within the development code. The
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 21 of 22
staff report finds that the application can meet the requirements of the code with the proposed conditions
and code provisions provided in the recommendation for approval.
That a 310 and 404 permit is required for the construction. The applicant states that these permits are
not required. The City has requested that the applicant confirm this prior to construction. A code provision
has been included in the recommended code provision that requires that these permits be provided to the
City if they are required. The code does not require that these permits be provided prior to preliminary
approval.
Reduced access to Bozeman Creek. This project will enhance access to Bozeman Creek. There is not
current legal access to Bozeman Creek on this property. A condition of approval is proposed that will
require the property owner to ensure access to the patio area of the east side of the project as a public-use
area (as defined by the International Building Code 2021) that makes exterior spaces available to the
general public.
Encroachment will impede flood waters. A separate flood plain permit related to the encroachment is
required by the code to be granted that analyzes the impact of the proposed encroachment against the
City’s floodplain regulations. That permit has been applied for and is under processing by the City’s
floodplain manager. A code provision is provided in the staff report related to this issue.
The project is not the best ecological outcome for Bozeman Creek. This is not required by the code.
There are competing interests provided in the Bozeman growth policy and development code. A property
owner may propose development on property that only complies with development standards. The
development standards do not require a best ecological outcome for a property nor is that defined in either
Bozeman’s policy documents or development code.
The public comments in favor of the project commented on the following issues:
The project will improve access to Bozeman Creek.
The quality of the project will improve Downtown Bozeman.
The project will add value to Downtown Bozeman.
Support for archaeological monitoring conditions and requirements.
APPENDIX B – RELEVANT MUNICIPAL STATUTES
Bozeman Municipal Code Section 348.340.070 – Deviations from underlying zoning requirements
Because the development of much of historic Bozeman preceded zoning, subdivision and construction
regulations, some buildings within the conservation district do not conform to contemporary zoning
standards. In order to encourage restoration, rehabilitation and appropriate new construction activity that
would contribute to the overall historic character of the community, deviations from underlying zoning
requirements may be granted as described in division 38.250 of this chapter. The criteria for granting
deviations from the underlying zoning requirements are:
1. Modifications must be more historically appropriate for the building and site in question and the
adjacent properties, as determined by the standards in section 38.340.050, than would be achieved
under a literal enforcement of this chapter;
2. Modifications will have minimal adverse effects on abutting properties or the permitted uses
thereof; and
3. Modifications must assure the protection of the public health, safety and general welfare.
Approvals may be conditioned to assure such protection, and such conditions may include a time
period within which alterations will be completed; landscaping and maintenance thereof;
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 22 of 22
architectural, site plan and landscape design modifications, or any other conditions in conformity
with the intent and purpose set forth in this part 1.
APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF
Owner: Paine Group, INC, 402 East Main Street, Suite 3, Bozeman, MT 59715
Applicant/Representative: Intrinsik Architecture, 106 E. Babcock, Suite 1A, Bozeman, MT 59715
Report by: Sarah Rosenberg, AICP, Associate Planner; Simon Lindley, Engineer.
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Downtown TIF Public Infrastructure
Assistance Program Application Part 1 Page 1
Downtown Urban Renewal District
TAX INCREMENT FINANCING (TIF) PUBLIC INFRASTRUCTURE
ASSISTANCE PROGRAM APPLICATION
PART 1
Property Information
Property Address: __
Property Owner:
Legal Description:
Property Geo-Code:
County Tax ID #:
Applicant Information
Property Owner
Tenant
Developer
Other
Applicant’s primary contact:
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
Project Representative (if not applicant):
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
Property Owner (if not applicant):
Name:
Business Name:
Business Phone: _______________________________Cell Phone:
Email:
302 E. Mendenhall
302 E. Mendenhall Hotel LLC
BOZEMAN ORIGINAL PLAT, S07, T02 S, R06 E, BLOCK D, PARCEL A PLAT C-1-H
06-0799-07-2-13-39-0000
RGH3052
Matt Paine
Paine Group Inc.
406-577-8301
Matt@painegroup.com
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Downtown TIF Public Infrastructure
Assistance Program Application Part 1 Page 2
Company Profile
Business Location
New business establishing itself in Bozeman
Existing business
Expanding/remodeling at same location
Expanding to an additional location
Existing business relocating from (identify location):
Street Address:
City: State: Zip:
Other:
Year Business Established:
Type of Business (Describe):
Has a business plan been developed in relation to the proposed project?
No (Development of a business plan may be required as part of the application process)
Yes (Include a copy with the application)
Project Detail
Property Status:
Vacant land
Building on leased land – Describe:
Land and building(s) – Describe:
Type of TIF Assistance Sought:
TYPE 2 GRANTS (over $50,000 must complete Application Part 2)
Public Infrastructure (water, sewer, stormwater, streets, alleys, sidewalks)
Streetlamps
Residential Incentive
TYPE 1 GRANTS (up to $50,000)
Streetscape Hardware
Fiber Connectivity
Life-Safety Fire
Street Trees
Street Tree Irrigation
Value of TIF Assistance Sought:
$
2028
Hotel and Restaurant
372,265.16
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Downtown TIF Public Infrastructure
Assistance Program Application Part 1 Page 3
Will this project proceed if TIF assistance is not granted?
No
In a limited fashion (explain):
Yes, but at a later date (explain):
Yes, as scheduled
Other:
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 Downtown Urban Renewal District TIF Public Infrastructure 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
Matt Paine
2/6/25
Matt Paine
2/6/25
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Downtown TIF Public Infrastructure
Assistance Program Application Part 1 Page 4
Additional Information
1. Project Narrative
Provide an overview of the project in narrative format. The narrative must include a description of
the following aspects of the project:
Proposed use(s) of project
o e.g. retail, office, restaurant, mixed use, residential for sale or for rental, etc.
o Total number and individual square footage of residential units; type of residential units
(e.g. for-sale, rental, condominium, etc.); delineation of square foot allocation by use;
number and type of parking spaces provided; and construction phasing.
Project Timeline
o Include anticipated dates for site acquisition, project start and completion, as well as
other project milestones. Multi-phase projects must include details for each phase. The
timeline should also identify any critical or time-sensitive dates as well as any time
constraints facing the applicant.
Construction information
o Size of any existing structure to be demolished or rehabilitated; size of any new
construction; types of construction materials (structural and finish);
Public Benefits
o Projects with a high degree of public benefits are typically more likely to receive TIF
assistance. The criteria on pages 4-6 of this application are intended to help the Board
understand and evaluate the public benefits for a project. Provide a detailed narrative
response to each criterion and include supporting documentation.
APPROVAL (For Official Use Only)
Approval Status:
Date Approved:
Date Letter of Award Sent:
Date Certificate of Completion:
Date of Payment Request:
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Downtown TIF Public Infrastructure
Assistance Program Application Part 2 Page 5
PART 2
FOR PROJECTS REQUESTING OVER $50,000 IN ASSISTANCE
Project Financial Information
For the Downtown Urban Renewal District Board to adequately review applications seeking TIF
assistance, the following information must be submitted with the application. This information will be
used to perform a third-party financial analysis to determine the project’s anticipated return on
investment (ROI) and reasonableness of developer profit. The goal of the Midtown TIF Assistance
program is to make projects financially feasible. Therefore, projects that demonstrate financial need for
public funding will be given priority.
1. Site Maps and Building Plans
The Applicant must submit a completed Conceptual Review Application and City responses to
the Board. The Conceptual Review application must include, at minimum:
a. Photographs of project site and/or building
b. Map showing the location of the site and its immediate surroundings
c. Proposed development plans including site plans, floor plans indicating square footage and
layout, building elevations d. Description of parking accommodations for residential units and commercial uses
e. Estimated date of occupancy
f. Anticipated off-site infrastructure improvements, including anticipated costs
g. Copy of Concept Review comments
2. Sources & Uses of Funds
a. Identify the sources of funds used to finance the project. Typical sources include equity,
lender financing, mezzanine financing, other anticipated types of public assistance, and any
other types or methods of financing. Describe the sources of equity and include a term
sheet for lender financing, if available.
b. TIF assistance is available as a reimbursement after the project is complete. Thus, the project
budget must identify the up-front sources intended to finance the development costs of the
project. If determined, specify the specific line items of the project budget that each source
will finance.
c. Summarize the uses of funds. General categories to be identified include acquisition and
related site costs, hard construction costs, and a breakdown of soft costs.
3. Development Budget
Provide an accurate and detailed development budget for the project that includes a detailed
breakdown of significant line item costs consistent with the sample included in the application
packet. The budget should be arranged to identify acquisition and site related costs, hard costs,
and soft costs. Also, identify all line items that are performed by the developer, owner, or related
entities.
4. Budget of TIF Eligible Expenses
Identify which of the development costs are eligible for reimbursement as defined by the
Downtown TIF Public Infrastructure Assistance Program documents.
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Downtown TIF Public Infrastructure
Assistance Program Application Part 2 Page 6
5. Financial Commitments
Submit commitment letters and/or term sheets from all lenders for proposed debt (such as
construction, mezzanine, permanent, and government financing) and all other financial sources of
the project (such as grants and tax credits). Commitment letters must clearly specify the nature and
terms of the obligations.
CRITERIA FOR TIF ASSISTANCE
The Board will evaluate each TIF assistance application using the following criteria. Indicate whether the
application applies to each criterion. If ‘yes’, provide a detailed narrative response to each criterion and
include documentation demonstrating adherence to the criteria must be submitted with the application.
TIF ASSISTANCE APPLICATION EVALUATION CRITERIA
2025 URD Board Priorities Yes or No
1. Improve/Upgrade Public Infrastructure
Support public infrastructure improvements with a focus on safety,
sustainability, and placemaking as part of private development projects.
2. Transportation Improvements
Encourage pedestrian and bicycles accessibility and safety upgrades. Support
creation and enhancement of active transportation options.
3. Residential Development
Incentivize development of residential units prioritizing below market rate
price points.
4. Beautification Projects
Support streetscape upgrades including the installation of trees, benches, and
bike racks.
Incentivize alley improvement projects that enhance the user experience.
2019 Downtown Bozeman Improvement Plan
5. More Than Main Street
Reinforce Downtown as the city center, through new and existing buildings of
urban density, considerable height and a diverse mix of uses.
Protect the character of the Main Street Historic District and enhance the
residential neighborhoods through context-sensitive development.
6. Walkable and Accessible
Use streets, sidewalks and alleys as a safe and comfortable multi-modal
network.
7. Welcoming to Everyone
Foster a place that is welcoming and inclusive of all ages, incomes, abilities,
and backgrounds with a mix of uses and accessible places.
Design new buildings for sustainability, durability and design excellence.
8. Connected to Nature and Culture
Ensure Downtown open spaces foster gathering, recreation, flexibility,
programming and local identity.
Highlight nature whenever possible, strengthening amenities that are unique
to Bozeman
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Downtown TIF Public Infrastructure
Assistance Program Application Part 2 Page 7
1995 Downtown Urban Renewal Plan
9. Strengthen Downtown’s Economic Vitality
Retain public offices and anchor businesses; Facilitate commercial
development; Enable high density housing; Restore Main Street as pedestrian-
friendly.
10. Improve the Safety, Security and Health of the District
Improve public works; Improve night-time lighting; Improve sidewalks;
Improve alley and parking lot appearance and safety.
11. The Image of Downtown Shall Be Continuously Improved
Improve streetscape aesthetics and amenities; enhance appearance of and
accessibility to Bozeman Creek.
12. Downtown’s Accessibility Shall Be Improved
Provide effective public transportation; better accommodate bicycles; reduce
reliance on private automobiles.
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BOZEMAN HOTEL -
MENDENHALL
TIF PUBLIC INFRASTRUCTURE ASSISTANCE P ROGRAM APPLICATION
PAINE GROUP
40
BOZEMAN HOTEL TIF APPLICATION 2
OVERVIEW
The Bozeman Hotel, a luxury 91-room boutique project under Marriott Design Hotels, will
energize Downtown Bozeman through high-end hospitality, premier dining, and rooftop
amenities. The hotel’s development is expected to spark economic growth, support local
businesses, and increase the District’s tax base.
The property is vacant land and will be transformed into a vibrant mixed-use destination,
aligning with city renewal plans and priorities.
41
BOZEMAN HOTEL TIF APPLICATION 3
PROPERTY
Property Address: 302 E Mendenhall
Property Owner: 302 East Mendenhall Hotel LLC
Legal Description: BOZEMAN ORIGINAL PLAT, S07,
T02 S, R06 E, BLOCK D, PARCEL A PLAT C-1-H
Geo-Code: 06-0799-07-2-13-39-0000
County Tax ID: RGH3052
Applicant: Developer / Property Owner
Primary Contact: Matt Paine, Paine Group Inc., 402 E
Main St. Ste 3, Bozeman MT 59715
Phone: 406-577-8301
Email: matt@painegroup.com
Project Status: Vacant land
Project Type: New construction – 91-room boutique
hotel (Marriott Design Hotels)
Building Height: 7 stories
Total Building Area: Approximately 68,000 square ft.
FIGURE 1
PROJECT TIMELINE
• Site acquisition: Completed
• Entitlements: Q1 2026
• Construction start (including off-site
infrastructure): Q1 2026
• Off-site infrastructure completion: Q2
2026
• Hotel construction completion: Q2 2028
• Occupancy: Q2 2028
PUBLIC BENEFITS
• Re-occupancy of vacant land: Transforms
underutilized site into income-producing
property.
• Elimination of blight: Upgrades outdated
infrastructure, reducing risks of failure and
supporting District redevelopment.
• Increased tax revenue: Projected
incremental annual tax value ~$662,809 post-
stabilization, with TIF payback in ~1 year.
• Job creation: ~150 construction jobs, ~25
permanent hotel/restaurant jobs.
• Economic stimulation: Attracts ~25,000
annual guests, boosting local spending by ~$5
million/year.
42
BOZEMAN HOTEL TIF APPLICATION 4
PROJECT NARRATIVE
The Bozeman Hotel is a luxury 91-room boutique hotel development under the Marriott Design Hotels flag,
featuring Bozeman's premier bar, an upper-middle market restaurant, and a rooftop deck with panoramic views.
Located in the heart of Downtown Bozeman, the project will catalyze economic growth by attracting high-spending
tourists and business travelers, supporting local commerce, and expanding the District's tax base. The property is
currently vacant land, and the development will transform it into a vibrant mixed-use destination aligned with the
1995 Downtown Urban Renewal Plan, the 2019 Downtown Bozeman Improvement Plan, and the 2025 Downtown
URD Board Annual Priorities.
TIF REQUEST
The specific Type 2 TIF request is for offsite public infrastructure improvements, with a focus on the sewer main
installation, which is essential for the project's feasibility. The existing infrastructure adjacent to the site is
insufficient and outdated, requiring upgrades to sewer, water, and street restoration to accommodate the hotel's
needs and enable future redevelopment in the area. Without these infrastructure improvements, the project
cannot proceed due to code compliance and utility capacity issues. As detailed in the attached Engineer's
Estimate (November 17, 2024), the work will include:
• General — mobilization, traffic control, SWPPP, dewatering $126,750
• Sewer — 2 main connections, 365 ft 8" pipe, 5 service connections, 1 manhole, bypass pumping $124,925
• Water — main tap, short 6" pipe, 1 fire hydrant $20,000
• Street restoration — asphalt replacement, base layers, milling & overlay, curb/gutter, sidewalk, markings
$62,855
Total: $372,265 (incl. inflation & prevailing wage)
This public benefit will eliminate blight by modernizing utilities, promote economic development by enabling the
$57M hotel investment, and support multimodal transportation by integrating with improved streetscapes. The
Bozeman Hotel requests $372,265 in TIF to cover critical off-site infrastructure. Without it, the project is still viable
but would require major cost cuts—cheaper facade materials (brick/stucco instead of limestone), simplified or
removed detailing, and lower-quality street-level finishes. These reductions would weaken the building’s
contribution to downtown’s image, conflict with the 1995 Urban Renewal Plan, and reduce long-term tax benefits.
TIF funding is essential to maintain high-quality design and maximize public return.
TIF REPAYMENT
The projected completed value of The Bozeman Hotel is $36,625,000 (building $34,125,000 + land $2,500,000).
This estimate is derived by applying the per-key assessed values of two recent comparable downtown Bozeman
hotels — the Kimpton Hotel and the AC Hotel — to the 91 keys planned for this project.
After subtracting the 2025 assessor’s market value of the unimproved parcel ($1,555,760), the net increase in
taxable value is $35,069,240, resulting in an incremental taxable value of $662,809.
At the projected FY 2028 TIF mill rate of 700 mills, the project is expected to generate $463,966 in annual
incremental tax revenue for the Downtown Urban Renewal District.
The requested TIF assistance of $372,265 (for off-site public infrastructure improvements) is projected to be fully
repaid in approximately 0.8 years (less than one year).
This rapid payback period, combined with substantial ongoing annual tax increment, provides a strong and
immediate fiscal return to the District while enabling the redevelopment of a vacant downtown parcel into a high-
value hospitality asset.
43
BOZEMAN HOTEL TIF APPLICATION 5
CONSTRUCTION INFORMATION
The Bozeman Hotel project consists of new construction on currently vacant land at 302 E. Mendenhall in
downtown Bozeman. The building will be a 7-story boutique hotel containing 91 guest rooms and approximately
68,000 square feet of gross floor area. Key program elements include guest rooms and suites (~58,000 SF), a full-
service restaurant and bar (~7,000 SF), and rooftop amenities/deck space (~3,000 SF).
The structure will utilize a steel frame with a high-quality limestone facade, arched window openings, and high-
efficiency mechanical, electrical, and plumbing systems designed for durability, energy performance, and
contextual fit within the downtown Bozeman streetscape. No demolition of existing structures is required.
VICINITY MAP
The project will be delivered in a single construction phase, with off-site public infrastructure improvements
(sewer main extension, water connection, fire hydrant, and street restoration) completed early in the schedule (Q2
2026) to eliminate utility constraints before vertical construction begins. Hotel construction completion is
targeted for Q2 2028, with occupancy anticipated in Q2 2028.
This high-quality, design-forward hospitality development will transform an underutilized downtown parcel into a
significant economic contributor while incorporating modern building systems and materials appropriate to the
character of the Downtown Urban Renewal District.
44
BOZEMAN HOTEL TIF APPLICATION 6
PROJECT PHOTOS, ELEVATIONS, PLANS
HOTEL PROPERTY
45
BOZEMAN HOTEL TIF APPLICATION 7
VIEW FROM MENDENHALL LOOKING WEST
VIEW FROM MENDENHALL LOOKING EAST
46
BOZEMAN HOTEL TIF APPLICATION 8
PROJECT ELEVATIONS
47
BOZEMAN HOTEL TIF APPLICATION 9
PROJECT FLOORPLANS
48
BOZEMAN HOTEL TIF APPLICATION 10
INFRASTRUCTURE DESIGN
PROJECT TIMELINE
• Site acquisition: Completed
• Entitlements: Q1 2026
• Construction start (including off-site infrastructure): Q1 2026
• Off-site infrastructure completion: Q2 2026
• Hotel construction completion: Q3 2028
• Occupancy: Q2 2028
SITE ACQUISITION
•COMPLETED
ENTITLEMENTS
•Q1 2026
CONSTRUCTION &
INFRASTRUCTURE
•Q1 2026
INFRASTRUCTURE
COMPLETE
•Q2 2026
OCCUPANCY
•Q2 2028
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BOZEMAN HOTEL TIF APPLICATION 11
PUBLIC BENEFITS
The Bozeman Hotel will deliver substantial and measurable public benefits to the Downtown Urban Renewal
District. By transforming a long-vacant parcel into a 91-room boutique hotel with restaurant, bar, and rooftop
amenities, the project will activate underutilized land, eliminate blight, and significantly expand the commercial
tax base.
These outcomes directly advance the goals of the 1995 Downtown Urban Renewal Plan,
the 2019 Downtown Bozeman Improvement Plan, and the 2025 URD Board Annual
Priorities.
The development is projected to generate approximately $463,966 in annual property tax revenue once stabilized,
create approximately 150 construction jobs and 25 permanent hospitality positions, and attract roughly 25,000
room nights per year — driving millions of dollars in additional visitor spending that supports downtown
businesses. The requested TIF funding will enable critical off-site public infrastructure improvements (sewer main
extension, water connection, fire hydrant, and street restoration), modernizing aging utilities, increasing system
capacity, enhancing pedestrian safety and accessibility, and providing long-term infrastructure benefits that
facilitate future redevelopment in the area. These outcomes directly advance the goals of the 1995 Downtown
Urban Renewal Plan, the 2019 Downtown Bozeman Improvement Plan, and the 2025 URD Board Annual Priorities.
50
BOZEMAN HOTEL TIF APPLICATION 12
CRITERIA FOR TIF ASSISTANCE
The Bozeman Hotel meets all key criteria for Downtown Urban Renewal District TIF assistance. The $372,265
request is strictly limited to reimbursing essential off-site public infrastructure (sewer main extension, water
connection, fire hydrant, street restoration), aligning with MCA 7-15-4288 and the program's purpose of funding
public off-site improvements for desirable redevelopment that would not otherwise occur. The project advances
the 2025 URD Board Priorities (public infrastructure, transportation, beautification), the 2019 Downtown Bozeman
Improvement Plan (downtown vitality, walkability, accessibility, inclusivity), and the 1995 Urban Renewal Plan
(economic strength, blight removal, safety, image, accessibility) through significant private investment, rapid TIF
payback (<1 year), substantial ongoing incremental revenue, job creation, and long-term utility/streetscape
benefits that support future district growth.
Plan / Document Priority / Goal Alignment How the Bozeman Hotel Project
Supports This Goal
Downtown URD Board
Annual Priorities
Improve / Upgrade Public
Infrastructure
Yes Funds off-site sewer main extension, water
connection, fire hydrant and street
restoration – core public utility upgrades
Transportation
Improvements
Yes Street restoration improves pedestrian
access, sidewalk quality, and curb/gutter
along E. Mendenhall corridor
Beautification Projects Yes New curb, gutter, sidewalk, and pavement
markings enhance the public realm
appearance
Downtown Bozeman
Improvement Plan
More Than Main Street –
Downtown as the city’s
true center
Yes 91-room boutique hotel + restaurant/bar
creates a major destination in the
downtown core
Walkable and Accessible Yes Central location + improved adjacent
sidewalks and streetscape support
walkability
Welcoming to Everyone Yes High-quality hospitality space (hotel
restaurant rooftop) designed to be
inclusive and community-oriented
Connected to Nature and
Culture
Yes Rooftop deck offers panoramic
mountain/city views connecting guests to
Bozeman’s natural and cultural setting
Downtown Urban
Renewal Plan
Strengthen Downtown’s
Economic Vitality
Yes ~57.5M private investment ~463k annual
taxes ~25 permanent jobs
Improve Safety Security
and Health of the District
Yes Modern sewer reduces overflow risk, new
fire hydrant improves fire protection, better
sidewalks enhance safety
The Image of Downtown
Shall Be Continuously
Improved
Yes Limestone facade + improved streetscape
(curb sidewalk markings) elevates visual
character of the corridor
Downtown’s Accessibility
Shall Be Improved
Yes Upgraded pedestrian infrastructure and
central location improve accessibility for
residents and visitors
Elimination of Blight /
Redevelopment of
Underutilized Land
Yes Transforms vacant lot into high-value hotel
use removes utility constraints that have
limited redevelopment
51
BOZEMAN HOTEL TIF APPLICATION 13
PROJECT FINANCIAL INFORMATION
SOURCES & USES OF FUNDS
Sources:
• Equity (Paine Group/Vertex Holdings investors): $23,023,474 (~40% of total costs, as per proforma).
• Debt (construction/permanent loan): $34,520,411 (~60%). Proposed term sheet from First Interstate Bank:
Construction loan of approximately 2 years, followed by term financing for another 3 years (total term 5
years).
• TIF Assistance: $372,265 (reimbursement for off-site infrastructure).
Uses:
• Acquisition/Site Costs: $2,335,000 (land cost per proforma).
• Hard Construction Costs: $36,520,293 (including base building, contingency, and owner's contingency).
• Soft Costs, Other Costs, Finance: $18,316,327 (including fees, interest, reserves, and other costs per
proforma).
• TIF Eligible (Off-Site Infrastructure): $372,265.
Total Project Cost: $57,543,885.
DEVELOPMENT BUDGET
Development Budget Amount Performed By
Base Building $34,442,656 Contractor
TIF Eligible Funds $372,265 Contractor
Contingency $1,023,223 Contractor
Owner's Contingency $682,149 Owner
Land Cost $2,335,000 Owner
Other Cost $8,783,357 Owner/Consultants
Soft Cost $7,708,391 Owner/Consultants
Finance Costs $2,196,843 Owner
Total $57,543,885
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BOZEMAN HOTEL TIF APPLICATION 14
BUDGET OF TIF ELIGIBLE EXPENSES
TIF FINANCIAL IMPACT
The Bozeman Hotel project requires $372,265 in TIF assistance to fund essential off-site public infrastructure
(sewer main extension, water connection, fire hydrant, and street restoration) that the private capital stack cannot
fully absorb without materially compromising project feasibility. While the project could theoretically move
forward without the TIF funding, doing so would force significant cost reductions and design compromises.
Specifically, the exterior aesthetics and overall quality would be adversely impacted — most likely through
substitution of lower-cost facade materials (e.g. replacing limestone with less expensive brick or stucco),
simplification or elimination of architectural detailing (arched windows, cornice work, metal accents), and
reduced quality of street-level finishes. These changes would diminish the building’s contribution to the
downtown streetscape, weaken its alignment with the 1995 Urban Renewal Plan’s goal of continuously improving
the image of downtown, and reduce the project’s long-term economic and fiscal return to the District. TIF
reimbursement is therefore critical to preserve the high-quality, contextually appropriate design that maximizes
public benefit and tax increment generation.
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55
56
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 1 of 22
24147; Boutique Hotel Site Plan/Commercial Certificate of Appropriateness with Deviation
Application
Public Meeting Date:
City Commission meeting will be held – Tuesday, August 5, 2025, at 6:00 pm
Project Description: Site Plan application proposes a six-story hotel with amenities on a vacant parcel
that currently serves as a parking lot. The ground floor includes a hotel lobby, commercial space, and
back of house operations. Each subsequent floor includes hotel rooms, and a rooftop bar is proposed on
the sixth level. The total number of hotel rooms is 71. Site improvements include sidewalk, streetscape,
landscaping, and additional site amenities. The applicant proposes off-site parking to accommodate the
required parking. The property is zoned B-3 and is in the Neighborhood Conservation Overlay District
(NCOD).
The project is located directly adjacent to Bozeman Creek, which requires a 35-foot setback along both
sides of the creek per BMC 38.410.100. While the proposed building is located outside of the watercourse
setback, the applicant is requesting to allow for up to a 30-foot encroachment into the watercourse setback
for open space hardscaping and patio space, a 4-foot awning, and supporting utility infrastructure. Per
BMC 38.200.010.A, the City Commission is the review authority where a deviation is more than 20
percent of the standard.
A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding
zoning regulations and to encourage activity that would contribute to the overall historic character of the
community. The criteria for granting deviations from the underlying zoning requirements are outlined in
BMC 38.340.070.
Project Location: 240 E. Mendenhall St., Bozeman Original Plat, S07, T02 S, R06 E, Block D, Parcel A
Plat C-1-H, City of Bozeman, Gallatin County, Montana
Staff Finding: The application does conform to standards and criteria and is sufficient for approval.
Recommended Motion: Having reviewed and considered the application materials, public comment, and
all the information presented, I hereby adopt the staff findings as presented in the staff report for
application 24147 that the application does meet the criteria required for approval and move to approve
with conditions the Boutique Hotel application for the deviation requested to allow for encroachment of
open space hardscaping, a 4-foot awning, and supporting utility infrastructure into the 35-foot
watercourse setback.
Report Date: August 7, 2025
Reviewing Staff: Sarah Rosenberg, AICP, Associate Planner
Simon Lindley, Project Engineer
Agenda Item Type: Action (Quasi-judicial)
EXECUTIVE SUMMARY
This report is based on the application materials submitted and public comment received to date. The full
application and file of record can be viewed digitally at the Community Development Department at 20
E. Olive Street, Bozeman, MT 59715, as well as digitally at
https://www.bozeman.net/departments/community-development/planning/project-information-portal,
select the “Project Documents Folder” link and navigate to application 24147. They are also available in
the City’s Laserfische folder and may be accessed through the Community Development viewer.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 2 of 22
Unresolved Issues:
There are no unresolved issues with this application.
Project Summary:
The Department of Community Development received a site plan/commercial certificate of
appropriateness with a deviation application on March 25, 2024, proposing a six-story hotel with
amenities on a vacant parcel that currently serves as a parking lot. There is a basement that provides
covered bicycle parking, storage, and supporting building service infrastructure. The first floor includes a
hotel lobby, commercial space, and back of house operations. Each subsequent floor includes hotel rooms,
and a rooftop bar is proposed on the sixth level. The total number of hotel rooms is 71.
Included with this application is a deviation request to allow for encroachment of structures into the 35-
foot watercourse setback along Bozeman Creek. Per 38.410.100, “where a development is crossed by or
is adjacent to a watercourse, the developer must mitigate the impacts of the development on the
watercourse. This mitigation may not be less restrictive than the requirements of the city floodplain
regulations or any other applicable regulation of this chapter. The purpose of this mitigation is bank
stabilization; sediment, nutrient and pollution removal; and flood control.” Since the subject property was
platted prior to July 10, 2002, the setback along Bozeman creek is 35-feet along both sides of the
watercourse. The development proposes hardscaping for the open space, a 4-foot awning, and supporting
utility infrastructure to encroach about 30-feet into the watercourse setback along the eastern portion of
the property.
Per 38.200.010.A.1, where the deviation is for more than 20 percent of the standard, the City Commission
is the review authority and must conduct a public hearing for this application. The application must meet
the standards for granting deviations in section 38.340.070 of the Unified Development Code. A
description and staff evaluation are outlined in this report.
This site had a previous site plan application (no. 19445) with deviation request that was approved on
March 9, 2020, by the City Commission to allow for encroachment of open space hardscaping and a 4-
foot awning into the 35-foot watercourse setback. The project was to develop a six-story mixed-use
building with open space along Bozeman Creek. The approval of the application expired.
On March 11, 2025, the Development Review Committee (DRC) found the application contained the
required application materials with sufficient information for the City to consider the application
adequate. The DRC finds that the application does conform to standards and criteria and is sufficient for
conditional approval.
The public noticing period ran from March 17 to April 15, 2025. The City has received twenty-nine letters
of public comment on the application as of the writing of this report. Public comment is accepted until
such time that the City Commission closes the public comment period.
The City Commission heard this application at its regular meeting on May 20, 2025, and resulted in
denial. The City Commission voted to reconsider the application at its regular meeting held on Tuesday,
June 24 to a certain date of August 5, 2025.
Alternatives:
1. Deny the application based on the Commission’s findings of non-compliance with the applicable
criteria contained within the staff report; or
2. Approve the application.
3. Approve the application with the addition of specific conditions based on the Commission’s
findings.
4. Continue the public meeting on the application, with specific direction to staff or the applicant to
supply additional information or to address specific items.
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 3 of 22
Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 1
Unresolved Issues: ................................................................................................................................ 2
Project Summary: .................................................................................................................................. 2
Alternatives: .......................................................................................................................................... 2
SECTION 1 – MAP & PLAN SERIES .................................................................................................... 4
Exhibit 1 – Location and zoning of subject property ............................................................................ 4
Exhibit 2 – Future Land Use Map ......................................................................................................... 5
Exhibit 3 – Site Plan ............................................................................................................................. 6
Exhibit 4 – Watercourse setback ........................................................................................................... 7
Exhibit 5 – Elevations ........................................................................................................................... 8
SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL .................................................... 10
SECTION 3 – CODE REQUIREMENTS .............................................................................................. 10
SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS ...................................................... 11
SECTION 5 – STAFF ANALYSIS AND FINDINGS ........................................................................... 11
BMC 38.230.100 – Plan Review Criteria ........................................................................................... 11
BMC 38.230.080 – Certificate of Appropriateness Criteria ............................................................... 15
BMC 38.250.050 – Deviations ........................................................................................................... 15
Conformance with adopted City of Bozeman Plans ........................................................................... 18
Conclusion .......................................................................................................................................... 19
APPENDIX A – NOTICING AND PUBLIC COMMENT ................................................................... 20
APPENDIX B – RELEVANT MUNICIPAL STATUTES .................................................................... 21
APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF ........................................... 22
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 4 of 22
SECTION 1 – MAP & PLAN SERIES
Exhibit 1 – Location and zoning of subject property
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Exhibit 2 – Future Land Use Map
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Exhibit 3 – Site Plan
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Exhibit 4 – Watercourse setback (in red)
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Exhibit 5 – Elevations
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SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL
Please note that these conditions are in addition to any required code provisions identified in this report.
These conditions are specific to this project.
Recommended Conditions of Approval:
1. BMC 38.340.010.F. The applicant must consult with a qualified professional, approved by the
Director of Community Development, to conduct archeological monitoring or another similar
process before and during excavation work. Any items of significance found must be reported and
cataloged. A report of the process conducted and the findings following the exploration and
monitoring must be submitted to the Community Development Department.
2. BMC 38.340.010.F. The applicant must submit a proposal to the Community Development
Department for an on-site installation that recognizes the history and significance of the site. This
may include, but is not limited to a sign, artwork, plaque, or other commemorative display. The
proposal must specify the design, content, and the intended location on the site. The content must
include, at a minimum, the site's history, historic photographs, and recognition of the creek. The
applicant is encouraged to work with the Downtown Bozeman Partnership and other appropriate
parties to adhere to the Downtown Bozeman Improvement Plan. The proposed installation must be
reviewed and approved by the Community Development Department prior to installation and must
be in place prior to planning approval of final routing for occupancy.
3. The applicant must ensure the exterior patio is a public-use area (as defined by the International
Building Code 2021) that makes exterior spaces available to the general public.
4. Prior to final site plan approval, the applicant must submit additional information to the Community
Development Department depicting the concept submitted at the public hearing on August 5, 2025,
including the reduction in the patio width and the provision of a natural fines path, for review and
approval by the Community Development Director.
5. Prior to final site plan approval, an updated landscape plan must be provided to depict that native
vegetation is used within the 35-foot watercourse setback.
SECTION 3 – CODE REQUIREMENTS
1. BMC 38.220.020. A. Sec. 38.220.020. - Streambed, streambank and/or wetlands permits. The
developer must provide the community development department with a copy of all required
streambed, streambank or wetlands permits, or written notification from the appropriate agency that
a permit is not required, prior to the commencement of any work on the site
2. BMC 38.240.350. A subdivision exemption application is required to aggregate the underlying lots.
The amended plat must be approved and recorded with the Gallatin County Clerk & Recorder prior
to final site plan approval.
3. BMC 38.250.060. Prior to final site plan approval, the applicant must pay the departure fee to allow
an alternative to the transparency standard on the north elevation.
4. BMC 38.540.070. The use depends on off-site parking to meet parking requirements. The applicant
must provide evidence to the Community Development Department of a long-term lease agreement
for parking utilization of the off-site location prior to final site plan approval.
5. BMC 38.270.030. The applicant proposes concurrent construction of the building and the
infrastructure improvements. The applicant must fulfill the requirements of section 38.270.030 D,
BMC prior to the issuance of a building permit for the proposed development or per 38.270.030.C
complete construction of all off-site infrastructure first.
6. BMC 38.600.170.C.4 A floodplain permit must be obtained prior to final site plan approval. The
floodplain permit application and required materials shall be provided to the City floodplain
administrator electronically through the PDox electronic plan review system.
7. BMC 38.600.220.D, that prior to receiving a Certificate of Occupancy, the Applicant must submit a
certification from the design engineer or architect that the completed project conforms with the
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approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for Non-
Residential Structures acceptable to the Floodplain Administrator.
8. BMC 38.410.130. The development's estimated average municipal water demand is 8.80 ac-feet.
The estimate will be uploaded to the project file. The demand must be offset prior to final site plan
approval. To offset the demand by paying cash-in-lieu of water right a fee of $52,801 must be paid
prior to final site plan approval.
9. BMC Chapter 40, Article 4. Any work on the site must conform to the approved stormwater permit.
10. BMC 38.410.100. The applicant must work with the Engineering Division on any restoration work
beyond the approved landscaping plan. Any additional trees that need to be removed along the creek
bed during the construction process must be approved by the City Forester prior to removal.
11. BMC 34.05.060. and 34.05.070. Valet services that involve the elimination of any on-street parking
along East Mendenhall Street requires approval from the Parking Commission through the
infrastructure review process.
SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS
The Development Review Committee (DRC) determined the application was adequate review on March
11, 2025. The DRC finds that the application conforms to standards and is sufficient for approval with
conditions and code provisions. Furthermore, the DRC finds that the application meets all deviation
criteria and findings to support the approval of the request which are outlined below in this staff report.
While site plan applications are typically reviewed administratively, because the applicant requests a
deviation for more than 20% of the standard, the City Commission retains to itself the review authority
and the approval of the entire application requires the approval of the deviation. The City Commission
meeting will be held Tuesday, May 20, 2025, at 6:00 pm
SECTION 5 – STAFF ANALYSIS AND FINDINGS
Analysis and resulting recommendations are based on the entirety of the application materials, municipal
codes, standards, plans, public comment, and all other materials available during the review period.
Collectively this information is the record of the review. The analysis in this report is a summary of the
completed review.
The applicant is advised that unmet code provisions, or code provisions that are not specifically listed as
conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful
requirements of the Bozeman Municipal Code or State law.
Applicable Plan Review Criteria – Section 38.230, BMC
In considering applications for plan approval, the review authority evaluates the following criteria. This
application must comply with all applicable requirements of BMC chapter 38 including overlay district
requirements. The staff provides findings analyzed under the following relevant sections of code and
applicable plans:
• BMC 38.230.100 – Plan Review Criteria
• BMC 38.230.080 – Certificate of Appropriateness Criteria
• BMC 38.250.050 – Deviations
• Conformance with other City adopted plans
BMC 38.230.100 – Plan Review Criteria
Conformance with City’s adopted Growth Policy (38.100.040.D)
The subject property is designated as Traditional Core. The Bozeman 2020 Community Plan states, “the
traditional core of Bozeman is the historic downtown. This area has an extensive mutually supportive
diversity of uses, a strong pedestrian and multi-modal transportation network, and a rich architectural
character. Essential government services, places of public assembly, and open spaces provide the civic
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and social core of town. Residential development on upper floors is well established. New residential uses
should be high density. The area along Main Street should be preserved as a place for high pedestrian
activity uses, with strong pedestrian connectivity to other uses on nearby streets. Users are drawn from
the entire planning area and beyond. The intensity of development is high with a Floor Area Ratio well
over 1. Future development should continue to be intense while providing areas of transition to adjacent
areas and preserving the historic character of Main Street.”
The application conforms to the Traditional Core category as it proposes a high intensity development. It
expands upon the existing activity of downtown. It also utilizes an undeveloped site and promotes
pedestrian connectivity.
Conformance with Article 2 – Submittal Material Requirements (38.220)
The site plan and commercial certificate of appropriateness are met with this project. The project
conforms to zoning provisions, community design provisions, and project design provisions. See the
analysis below for how the required standard of each article is met.
Concurrent Construction has been requested by the applicant to allow simultaneous construction of the
proposed building and required supporting infrastructure. The required infrastructure improvements
include adjacent improvements that are subject to BMC 38.270.030.D. The requirements of this section
including City and DEQ infrastructure review, approval from the City Fire Marshall, execution of an
Irrevocable Offer of Dedication, and an acceptable concurrent construction plan, must be met prior to a
building permit being issued for the development.
Conformance with Article 3 – Zoning Provisions (38.300)
The subject property is zoned B-3, Downtown District. “The intent of the downtown B-3 business district
is to provide a central area for the community's business, government service and cultural activities with
urban residential development as an essential supporting use. The downtown B-3 district should be the
area of greatest density of development, intensity of use, and appropriate infill. Design standards
reinforcing the area's historical pedestrian-oriented context are very important.
This district encourages high volume, pedestrian-oriented uses in ground floor space in the "core area" of
the city's central business district, i.e., along Main Street from Grand to Rouse and to the alleys one-half
block north and south from Main Street. Lower volume pedestrian uses such as professional offices may
locate on ground floor space in the downtown B-3 area outside the above-defined core.”
Currently the parcel is vacant and is used as a parking lot. A hotel is a permitted use in the B-3 zone
district. The proposed building meets form and intensity standards as follows:
Per BMC 38.350.050, elevator and stair penthouses are exempt from height limitations provided that no
linear dimension exceed 50 percent of the corresponding street frontage line. These penthouses exceed 4-
feet above the allowable height. Mechanical facilities are exempt from height.
Conformance with Article 4 – Community Design Provisions (38.400)
Setbacks Proposed Allowed
Front 3’ Storefront block frontage - See
Article 5 analysis below
Rear 13’ 0’
Side 1’ 0’
Alley 13’ 5’
Lot Area Proposed Allowed
Max lot coverage 49% 100%
Building Height Proposed Allowed
70’ 70’
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The applicant provided a Traffic Impact Study conducted by 406 Traffic & Transportation Consulting,
which was thoroughly evaluated by the Engineering Division and found to satisfy standards for trip
generation and level of service evaluations. The development proposes valet service which will eliminate
some on-street parking along East Mendenhall Street. Any substantial encroachment involving the
elimination of any on-street parking within that area of the B-3 zoning district requires approval from the
Parking Commission. Compensation must be provided for each on-street parking space eliminated from
the downtown business district parking inventory in accordance City code outlined in BMC 34.05.060-
070. This process is completed during the City’s infrastructure review process which is a separate process
from site plan review and is managed by the City’s Engineering Division and requires the Parking
Commission’s approval as outlined in code provision number 11.
While there is an alley to the south of the building, there is no vehicular access to the building. Parking is
proposed to be located off-site. Pedestrian improvements include updating the sidewalk along Mendenhall
to be 13 feet wide.
This is an infill project on existing lots on an existing block. A subdivision exemption is required to
aggregate the underlying lots the lots prior to final site plan approval.
The subject property is an infill site with existing infrastructure services the site. The existing 6-inch
sewer main along East Mendenhall Street will be upgraded to 8-inch to accommodate the new use. At the
City’s current CILWR fee rate, the fee for the project is $52,801. Payment must be made prior to final site
plan approval.
An on-site storm water maintenance plan and design report was prepared by TD&H. Site improvements
include area inlets, roof drain piping, trench drains, subsurface infiltration chambers, and permeable
pavers.
Bozeman Creek runs through the subject property along the eastern boundary line which requires the
development to adhere to watercourse setback provisions outlined in BMC 38.410.100. The setback along
Bozeman Creek is 35-feet on both sides. Along the stream bank is a 5-foot non-disturbance zone which
will remain in a natural state and be seeded with native seed if necessary. Between the stream bank and
open space plaza, the landscaping will be improved which includes preserving existing trees and adding
additional landscaping to meet watercourse setback planting requirements.
The open space plaza between the landscaped area and building includes hardscaping which encroaches
roughly 24-feet into the watercourse setback. Supporting utility infrastructure is located on the southern
portion of the property and encroaches roughly 30-feet into the watercourse setback. While the building
itself is out of the watercourse setback, the building awning on the east side encroaches 4-feet into the
watercourse setback. The Bozeman Municipal Code defines setback as “the space on the same lot with a
principal building, which is open and unoccupied from the ground upward or from the ground
downward.” So even though the awning is not on the ground, it still encroaches into the setback.
A deviation is requested to allow for the encroachment of all these structures into the watercourse setback.
See the analysis below on how the criteria is met to satisfy the deviation request.
Since this project is a commercial development on less than one acre, no parkland requirements are
warranted.
Conformance with Article 5 – Project Design
The building fronts onto East Mendenhall Street which is designated storefront block frontage meaning
that the building and site must be designed in a vibrant and active manner. The building is setback 3-feet
from the front property line to accommodate a wider sidewalk. There is a building entrance that faces the
street and includes an awning that wraps around the entire perimeter of the building.
The applicant requests a departure to allow façade transparency to be 55% where 60% is required. This
reduction is based on the façade articulation along the ground floor rather than a flat façade. The intent is
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still met through the 5% reduction of transparency that still promotes visual interest for pedestrians. This
departure meets the criteria and is sufficient for approval.
The proposed sidewalk along East Mendenhall Street is widened to 13 feet. Landscaping, street trees, and
bike racks are incorporated into the wider sidewalk to enhance the pedestrian experience. The open space
plaza to the east of the building incorporates seating and robust landscaping that promotes circulation and
amenities for pedestrians. While open space is not required for the project since the parcel is less than one
acre, roughly thirty percent of the property incorporates open space area to minimize the impact on the
watercourse setback and floodplain while providing a pedestrian amenity. To ensure that the plaza can be
enjoyed by all and to support access to Bozeman Creek, condition of approval number 3 requires that the
property owner ensure that the east side patio of the building be a public use area as defined in the
International Building Code 2021. That code states that a public use area is a term utilized to describe all
interior and exterior spaces or rooms that may be occupied by the general public for any amount of time.
Spaces that are utilized by the general public may be located in facilities that are publicly or privately
owned. Examples include the lobby in an office building, a high-school gymnasium with assembly
seating, an open-air stadium, a multipurpose room, an exposition hall, a restaurant dining room, a health
club, etc.
Trash services are located at the rear of the building along the alley. No screening measures are required
for services on the alley. Utility meters are located on the east façade and screened by landscaping.
The building meets building design standards. It utilizes durable high-quality materials through limestone
veneer, cast stone, and metal cladding. The ground level creates a human-scaled façade pattern through
façade articulation features such as windows, entries, weather protection features, and a change in
materials. Furthermore, since the building is in the B-3 zone district, it adheres to the NCOD Design
Guidelines chapter 4-B which is analyzed above.
Parking for the building will be provided off-site through an off-site parking agreement. The development
proposes to use the parking lot directly east to accommodate the 46 spaces required for the use. The
development takes advantage of the allowable reductions outlined in BMC 38.540.050.C. Prior to final
site plan approval, the applicant must provide an executed off-site parking agreement. The required
bicycle parking is 10 spaces. The development proposes 5 bike racks along the sidewalk on East
Mendenhall Street and 12 covered spaces in a bike room in the basement.
The project provides the appropriate landscaping required as outlined in BMC 38.550 including adding
grated street trees along East Mendenhall Street, drought tolerant plants, and the use of permanent
irrigation. The applicant proposes to do some restoration work along the creek bed which includes the
protection of existing trees, the removal of a few, and adding a native seed mixture if necessary. Code
provision number 8 requires the applicant communicate with the City if any additional trees will be
removed and any additional restoration work needs to be done.
All site lighting meets full cutoff standards as required by code.
Conformance with Article 6 – Floodplain Regulations (38.600)
The Site lies within a FEMA-regulated special flood hazard area for Bozeman Creek, which includes the
100-year floodway and floodplain fringe. The building is located within the floodplain fringe but outside
the floodway. Building design features are intended to mitigate the flood potential to both the building and
abutting pedestrian passageways.
The floodplain regulations in BMC 38.600 allow this particular use but require floodproofing or elevating
the building to the base flood elevation (BFE) plus 2 feet. The building’s main elevation is proposed at the
BFE plus 2 feet along most of the flood reach. The openings/windows that reside on the north side of the
building are proposed to be floodproofed to the BFE plus 2 feet. Areas below the BFE, such as the
basement, are allowable as the building is elevated or floodproofed.
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Code Provision 6 requires, per BMC 38.600.170.C.4, that prior to final site plan approval, the Applicant
must obtain a floodplain permit.
Code Provision 7 requires, per 38.600.220.D, that prior to receiving a Certificate of Occupancy, the
Applicant must submit a certification from the design engineer or architect that the completed project
conforms with the approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for
Non-Residential Structures acceptable to the Floodplain Administrator.
BMC 38.230.080 – Certificate of Appropriateness Criteria
Conformance with Overlay District Standards (38.340)
The proposed project is located within the Neighborhood Conservation Overlay District (NCOD) but is
not within a historic district. As there is no building on the site, no demolition review is required. It is
reviewed under the classification of new infill and construction that falls under the standards for
certificate of appropriateness outlined in BMC 38.340.050 and the NCOD Design Guidelines, specifically
chapter 4B which applies to properties zoned B-3 and outside of the Main Street Historic District. The
building and site design meets the standards conforms to this section.
The area around the Main Street Historic District should accommodate compatible contemporary
development of greater height and density. This project provides density that meets the goals and
objectives of the Downtown Bozeman Improvement Plan. The building design uses a combination of
materials such as limestone veneer and metal and is articulated through façade plane changes and the use
of awnings and windows along the street facing and open space facades. To further incorporate into the
downtown business district, the use of a flat roof line is used.
The site design creates a strong connection for pedestrians by incorporating a wide sidewalk along East
Mendenhall Street, a visible and publicly accessible open space along Bozeman Creek, and a variety of
different landscaping.
BMC 38.250.050 – Deviations
Conformance for Granting Deviations (38.340.070)
The subject property is located directly adjacent to Bozeman Creek which requires a 35-foot setback
along both sides of the creek per BMC 38.410.100. Section 38.410.100.A.1.a.(2) states that “no fence,
residential or commercial structure, fill material, parking or other similar improvements shall be located
within required watercourse setback.” Bozeman Creek runs along the east boundary of the property and
the watercourse setback encroaches 35-feet into the parcel. The development proposes open space
hardscaping, a 4-foot awning, and supporting utility infrastructure to be in the watercourse setback. The
open space plaza encroaches roughly 24-feet into the watercourse setback. Supporting utility
infrastructure is located on the southern portion of the property and encroaches roughly 30-feet into the
watercourse setback.
While the building does not encroach into the setback, the Bozeman Municipal Code defines setback, in
the relevant portion, as “the space on the same lot with a principal building, which is open and
unoccupied from the ground upward or from the ground downward.” Therefore, the proposed awning
encroaches 4-feet into the watercourse setback and is not allowed under BMC 38.410.100 absent an
approved deviation.
A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding
zoning regulations and to encourage activity that would contribute to the overall historic character of the
community. Pursuant to Section 38.340.070 BMC, there are three criteria for granting deviations from the
underlying zoning requirement.
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1. Modification must be more historically appropriate for the building and site in question and
the adjacent properties, as determined by the standards in Section 38.340.050, than would
be achieved under a literal enforcement of this chapter.
Bozeman Creek was channelized through the center of town back in the early days of the area’s
settlement, as evidenced by Sanborn maps dating from 1891. It was narrowed, straightened, and banks
armored with rock, concrete, and other materials. Since the realignment, Bozeman Creek was diverted to
be utilized for the built environment. Structures were built up to and over the creek. On this very parcel,
the pattern of development shows that structures were built over the creek and next to it as depicted in the
figures below.
Figure 1: Original City Plat with Bozeman Creek in natural flowing state. Figure 2: 1884 Sanborn Map depicting channelized Bozeman Creek
Project site in orange box.
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‘
Figure 3: 1942 Aerial of Downtown Bozeman
Although the proposed open space and building awning do not replicate what was traditional to the
construction or style of the early settlement of Bozeman, the DRC finds that the traditional placement of
structures close to the creek is historically appropriate to the site. Bozeman Creek was forced to not
meander through downtown, but instead to be utilized for industry and more recently recreation. Portions
of the retaining walls which form the embankments for segments of the creek are former rubble
foundations of structures no longer present.
Furthermore, along much of the historic development pattern along Bozeman Creek, there are structures
that abut up against it or are directly above Bozeman Creek. To the south of the subject property, 311 E.
Main (Bar IX) cantilevers over the creek and has an outdoor patio that is adjacent to Bozeman Creek. To
the north, 317 E. Mendenhall (Fresco restaurant) and 121 N. Rouse (City Hall) both have buildings that
front very closely to the creek within the Bozeman Creek watercourse setback.
Figure 4: Back of Bar IX building, date unknown Figure 5: Back of Bar IX building, present day
2. Modifications will have minimal adverse effects on abutting properties or the permitted
uses thereof.
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The proposed deviations will have minimal adverse effects on neighboring properties and their permitted
uses. The planned open space presents an opportunity to enhance both the creek and adjacent properties,
offering guests and the public a park-like setting in Downtown Bozeman along Bozeman Creek. As noted,
many nearby properties are built up to or over the creek, and this development aligns with the established
pattern and character of the area while maintaining minimal adverse effects on neighboring properties.
3. Modifications must assure the protection of the public health, safety and general welfare.
Approvals may be conditioned to assure such protection, and such conditions may include a
time period within which alterations will be completed; landscaping and maintenance
thereof; architectural, site plan and landscape design modifications, or any other conditions
in conformity with the intent and purpose set forth in this part 1.
The DRC has identified no significant barriers to public health, safety and general welfare from the
proposed deviations. The restoration and rehabilitation activity along Bozeman Creek will affect how
people interact with the creek. Currently, Bozeman Creek is overgrown, walled and/or fenced throughout
Downtown. The requested deviation will improve the open space adjacent to the creek and revitalize the
waterway by making it visible to the public and highlighting it as a unique amenity to Bozeman.
The enhancement of the open space will allow the public to utilize the area adjacent to Bozeman Creek. A
proposed railing and retaining wall will alleviate public safety concerns regarding public access to the
creek. The permeable pavers will help reduce storm water runoff and restore a functioning creek to
enhance public health. The existing landscaping is overgrown and will be cleaned up to further promote
the health of the stream bank. The protruding awning does not have any sort of impact on the public
health, safety, and general welfare but rather provides sheltered relief within the open space.
Conformance with adopted City of Bozeman Plans
In addition to the deviation criteria above, the Uniform Development Code (chapter 38 BMC) requires
conformance with specific plans adopted by the City of Bozeman. The Downtown Bozeman
Improvement Plan and Downtown Creek Enhancement Plan are applicable to this project. Staff has made
three conditions of approval that are supported by these plans to help achieve the goals of enhancing and
engaging Bozeman Creek.
In 2012, the City of Bozeman developed the Downtown Creek Enhancement Plan (DCEP), which created
goals, objectives, and strategies to assist in enhancing Bozeman Creek through downtown such as
creating ways to inform residents about the creek from its ecological services to the past and present
importance to the community. The DCEP also emphasizes on restoration of the creek to create a more
functioning stream ecosystem that can be enjoyed by all.
The Downtown Bozeman Improvement Plan (DBIP) was adopted in 2019 by the City Commission. One
of the themes of the DBIP is to connect to nature and culture by enhancing the natural systems and
increasing public spaces. Bozeman Creek flows right through downtown, but it is piped, hidden under
roads and parking lots. Much of the banks of the creek are largely overgrown or fenced. The goal of
enhancing Bozeman Creek is to reveal the creek, which would help create places to linger and points to
interact with the creek. Revealing the creek can also help produce strategies that help find healthier ways
for the natural waterways to filter storm water.
Based on the goals and objectives of these two plans, the DRC has proposed three conditions of approval
to help achieve the goals of enhancing and engaging Bozeman Creek. The requested deviation to allow
for encroachment into the watercourse setback will further assist in achieving these goals. The enhanced
open space creates points of access to Bozeman Creek’s edge and allows the public to experience the
waterways. To ensure that the public can experience the creek, condition of approval number three
requires a public access easement to be created for the open space area that fronts onto Bozeman Creek.
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Both plans emphasize creating some sort of commemorative display along the creek to provide
educational opportunities on the history and ecological service the creek provides. Condition of approval
number two notes that the applicant must create a commemorative display that highlights a variety of
content for the public to view. These sorts of displays are already occurring along Bozeman Creek such as
the Revitalize Relatives art installation and demonstration garden outside of City Hall and the restoration
of the creek in Bogert Park that is highlighted through educational signage.
Figure 6: Revitalize Relatives Art Installation outside of City Hall Figure 7: Demonstration Garden outside of City Hall
Figure 8: Restoration of Bozeman Creek in Bogert Park Figure 9: Restoration of Bozeman Creek in Bogert Park
Condition number one requires the applicant to conduct archeological monitoring or another similar
technique for the site before and during construction to ensure that if there are any artifacts that are found
that they be reported and cataloged, and to provide a report to the City of the process and findings
following initial construction. Prior to when white settlers came to this area, Native Americans relied on
the abundant resources of the valley, including this creek. When white settlers came to this area and
settled Bozeman, this area along East Mendenhall Street was considered Bozeman’s Red Light District.
An archeological dig or like process could discover artifacts that may bring forth relevant historical
information about this area.
Conclusion
The Development Review Committee finds that the application conforms with the site plan review
criteria, certificate of appropriateness criteria, and meets the criteria for granting the deviation for
encroachment into the watercourse setback and finds the application sufficient for approval. If the City
Commission denies the deviation request, the applicant will have to apply for a new site plan application
that does not have anything located in the watercourse setback per the pre-2002 watercourse setback
BMC standard.
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APPENDIX A – NOTICING AND PUBLIC COMMENT
Notice was provided at least 15 and not more than 45 days prior to the City Commission public meeting
per BMC 38.220.420. The City scheduled public notice for this application on March 14, 2025. The
applicant posted public notice on the subject property on March 14, 2025. The applicant sent public notice
to physically adjacent landowners of record within 200-feet of the subject property via first class mail on
March 14, 2025. It was also posted in the Bozeman Daily Chronicle on March 29 and April 3, 2025. On
April 15, 2025, the City Commission continued the review of this application to May 20, 2025. No
additional project notice was required at that time as the project was continued to a date certain for
review.
The City has received twenty nine public comments as of the writing of this staff report. A link to the
public comment received can be found here:
https://weblink.bozeman.net/WebLink/Browse.aspx?id=297513&dbid=0&repo=BOZEMAN
The public comments not in favor of the project commented on the following issues. The comments are
summarized by topic with staff response below:
Not in favor of a reduced water course setback. The code includes a deviation process to grant a
reduced setback for this property as this property is within the Neighborhood Conservation Overlay
District. The findings in the staff report conclude that the criteria have been met in order for the deviation
to be approved.
Not in favor of the use of the adjacent parking lot for off-site parking. The code allows the proposed
use of off-site parking for a project. The code includes criteria that must be met in order for the off-site
parking to be approved. The findings in the staff report conclude that the criteria can be met in order for
the off-site parking to be approved. A code provision from this code section is included in the approval
requirements for the project. It requires that an executed long term parking agreement for the proposed
offsite parking be provided to the Community Development Department prior to final site plan approval
for the Boutique Hotel. Final site plan approval is required prior to building permit issuance for the
construction of the hotel. There is an existing ten year long term lease on this parking area that expires in
2027 related to the Bozeman Hotel Conditional Use Permit for on premises consumption of alcohol. If
this project were to get an executed long term parking agreement for the current parking area leased by
the Bozeman Hotel, it would not place the Bozeman Hotel Conditional Use Permit out of compliance
with its approval as it satisfied the long term lease agreement accepted by the City Commission and the
Director of Community Development at the time the conditional use permit was granted. There is nothing
in the code that directs the property owner of the parking lot to lease to one individual/party or another.
Both the Bozeman Hotel and the Boutique Hotel can negotiate for the agreement to use the parking lot for
off-site parking as allowed by the code.
Loss of parking used by existing downtown business. The Bozeman growth policy, Downtown
Improvement Plan, and the development code support the infill and redevelopment of existing parking
areas within the City. The code does not require a district wide analysis of parking with an individual site
plan application. The code requires that an individual project must provide an analysis of the parking
demand for the proposed use of the property. The parking must be accounted for according to code
requirements that exist at the time that the application is deemed adequate. As long as the proposed
project meets the required parking by either providing it on site or offsite according to the requirements of
the code the project is sufficient for approval by the review authority.
The need for a parking analysis for the general area. The City has conducted a downtown parking
plan. There are strategies to manage parking downtown provided in that plan. The development code does
not require that an individual development application like the Boutique Hotel to implement the City’s
parking plan other than complying with the development standards within the development code. The
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staff report finds that the application can meet the requirements of the code with the proposed conditions
and code provisions provided in the recommendation for approval.
That a 310 and 404 permit is required for the construction. The applicant states that these permits are
not required. The City has requested that the applicant confirm this prior to construction. A code provision
has been included in the recommended code provision that requires that these permits be provided to the
City if they are required. The code does not require that these permits be provided prior to preliminary
approval.
Reduced access to Bozeman Creek. This project will enhance access to Bozeman Creek. There is not
current legal access to Bozeman Creek on this property. A condition of approval is proposed that will
require the property owner to ensure access to the patio area of the east side of the project as a public-use
area (as defined by the International Building Code 2021) that makes exterior spaces available to the
general public.
Encroachment will impede flood waters. A separate flood plain permit related to the encroachment is
required by the code to be granted that analyzes the impact of the proposed encroachment against the
City’s floodplain regulations. That permit has been applied for and is under processing by the City’s
floodplain manager. A code provision is provided in the staff report related to this issue.
The project is not the best ecological outcome for Bozeman Creek. This is not required by the code.
There are competing interests provided in the Bozeman growth policy and development code. A property
owner may propose development on property that only complies with development standards. The
development standards do not require a best ecological outcome for a property nor is that defined in either
Bozeman’s policy documents or development code.
The public comments in favor of the project commented on the following issues:
The project will improve access to Bozeman Creek.
The quality of the project will improve Downtown Bozeman.
The project will add value to Downtown Bozeman.
Support for archaeological monitoring conditions and requirements.
APPENDIX B – RELEVANT MUNICIPAL STATUTES
Bozeman Municipal Code Section 348.340.070 – Deviations from underlying zoning requirements
Because the development of much of historic Bozeman preceded zoning, subdivision and construction
regulations, some buildings within the conservation district do not conform to contemporary zoning
standards. In order to encourage restoration, rehabilitation and appropriate new construction activity that
would contribute to the overall historic character of the community, deviations from underlying zoning
requirements may be granted as described in division 38.250 of this chapter. The criteria for granting
deviations from the underlying zoning requirements are:
1. Modifications must be more historically appropriate for the building and site in question and the
adjacent properties, as determined by the standards in section 38.340.050, than would be achieved
under a literal enforcement of this chapter;
2. Modifications will have minimal adverse effects on abutting properties or the permitted uses
thereof; and
3. Modifications must assure the protection of the public health, safety and general welfare.
Approvals may be conditioned to assure such protection, and such conditions may include a time
period within which alterations will be completed; landscaping and maintenance thereof;
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24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 22 of 22
architectural, site plan and landscape design modifications, or any other conditions in conformity
with the intent and purpose set forth in this part 1.
APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF
Owner: Paine Group, INC, 402 East Main Street, Suite 3, Bozeman, MT 59715
Applicant/Representative: Intrinsik Architecture, 106 E. Babcock, Suite 1A, Bozeman, MT 59715
Report by: Sarah Rosenberg, AICP, Associate Planner; Simon Lindley, Engineer.
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Memorandum
REPORT TO:Downtown Area Urban Renewal District Board
FROM:Ellie Staley, Executive Director Downtown Bozeman Partnership
SUBJECT:Executive Director's May 2026 Report
MEETING DATE:May 26, 2026
AGENDA ITEM TYPE:Plan/Report/Study
RECOMMENDATION:Discuss
STRATEGIC PLAN:7.3 Best Practices, Creativity & Foresight: Utilize best practices, innovative
approaches, and constantly anticipate new directions and changes relevant
to the governance of the City. Be also adaptable and flexible with an
outward focus on the customer and an external understanding of the issues
as others may see them.
BACKGROUND:Ellie will present the monthly report of general program updates and
updates to topics relating to downtown. Board will discuss relevant matters.
UNRESOLVED ISSUES:None
ALTERNATIVES:None
FISCAL EFFECTS:None.
Attachments:
DBP Monthly ED Report 5-26 DURD.pdf
Downtown Tracking Sheet-Bus. Q2_2026.pdf
Downtown Tracking Sheet-Dev. Q2_2026.pdf
Report compiled on: May 19, 2026
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Downtown Bozeman Partnership – ED Report
May 2026
DURD Discussion Items:
• The DURD is currently contracted to complete a Parking Vision Plan outlining short- and long-term
solutions from the former mayor’s Parking Working Group, scheduled for Fall 2026 completion.
o Discuss “Key Insight Presentation” schedule for DURD board, special meeting in June?
• Cancel or reschedule June 17 DURD board meeting?
• Post Office relocation, additional public comment from DURD board (separate from the PMC), in
association with the interest in the site for future parking infrastructure?
Downtown Updates:
• The Downtown Bozeman Partnership has initiated an organizational refresh, retaining the DTNBZN logo
while introducing updated colors and visual identity. The release is slated for June 1 with design overhauls
of our weekly newsletter template, our website, downtown banners, annual report and directory and
more.
City/County Updates:
• City Commission Meeting - Tuesday, May 27 - canceled
• Downtown BID Meeting – Wednesday, June 17 at 12pm at City Hall
• Notable Engage Bozeman projects/updates:
o The City Commission approved a Professional Services Agreement with PORT Architecture and
Urbanism, LLC on January 27th, 2026 to provide consultant services to assist in the development of
the Bozeman Creek Vision Plan. Learn More. Jon Henderson is at our meeting to discuss DURD’s
potential involvement and support for future projects. June 2 Open House, join us!
DBP/DURD Project Updates:
• DURD expansion exploration is underway. A PSA with Pioneer Technical is in final stages for a potential
district extension into the Federal Building site.
• The Pedlet along South Willson is now installed on South Willson with adjacent planters for protection
against cars.
• I-Ho Peace Park final walk-through is scheduled for the first week in June. And a dedication celebration is
planned for Friday, August 14, save the date is coming soon.
• We have begun the process of renewing a downtown SILD (Special Improvement Lighting District). A PSA
with TD&H is on the June 2 City Commission Consent agenda. Ellie to keep board updated through
process.
• Preliminary discussions for the DURD to support an ADA accessible park at Willson School in coordination
with the Bozeman School District.
DBA Events/Updates:
• Walk the Block Mondays – EVERY MONDAY, Meet at the Baxter at 1pm. Join us for this great way to get to
know your neighbors!
• FIRST 2026 Art Walk – Friday, June 12 6-8pm
• Full Online Event Calendar HERE.
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DOWNTOWN BUSINESS TRACKING
Q2 2026
APR-JUNE
NEW DBA MEMBERS
BUSINESS ADDRESS DATE OF MEMBERSHIP
Hail Marys - at Rocking R Bar 211 E Main 3-Apr
Field & Stream Bozeman 5 E Baxter - Outside Core 7-Apr
Dry Fly Saloon - at Field & Stream Bozeman 5 E Baxter - Outside Core 7-Apr
Nissa by Food for Thought - at Umvelt 22 S Grand 8-Apr
Luxe Diamond Jewelers 311 N Willson #102 27-Apr
joogi 323 Gallatin Park Dr, Unit 103 -
Outside Core 18-May
NEW BUSINESSES
BUSINESS ADDRESS DATE OF OPENING
PreShift Cafe & Pizzeria (formerly
Tarantino's)315 E Main 8-May
Old Main Gallery (relocated)16 S Tracy 1-Jun
Buen Provecho (formely Tarintinos)321 E Main STE 1F TBA
Crazy Mountain Outdoor Company US Bank TBA 2+ Years
Saffron 312 E Main TBA
CLOSED BUSINESS
BUSINESS ADDRESS DATE OF CLOSURE
Allegra 39 S Tracy 1-Jan
Blush 23 S Tracy Ave #2 1-Jan
Nova Café 312 E Main 17-Feb
VACANT LOCATIONS
BUSINESS ADDRESS DATE OF CLOSURE
Teton Gravity Research 9 E Main 2025
Blush 23 S Tracy Ave #2 2025
Old Main Gallery 129 E Main Jun-26
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DOWNTOWN DEVELOPMENT TRACKING
Q2 2026 April - June
CURRENT PROJECTS ADDRESS STATUS PROPERTY
TYPE UNIT TYPE(S)
NOTES
(design
professional,
stories, etc)
GRANT
REIMBURSE
MENTS
DURD Funding
$
Cooper Black (Dtn Antiques)122 E Main St Nearly
Complete Mixed 2 commercial, 3
residential
Walkway recently
removed N/A
Abby Hetherington Interiors 33 S Tracy In Progress Retail/
Commercial 1 GL, 1 UG Langlas & Graphic
Haus, 2 stories
Streetscape,
Façade,
Utility, Fire-
Safety grant
approved
and work
completed
$33,000 funds
confirmed for
fire-line safety
work completed
by CKMay
East Main Trading Co.702 East Main Nearly Completoffice space 1-2 individual offices
spaces
112 E Main - Old US Bank
Location 112 E Main St
In Progress,
April 2027
tentative
completion
Mixed 7-9, 4 stories Walkway now
erected
Residential,
streetscape
108 W Babcock 108 W Babcock
Plans
submitted/stre
etscape
deviation
requested
Mixed
Pearson Design
Group, 4 stories,
proposed
office/residential
Hotel Project 302 E Mendenhall 2026/2027 Hotel
Current grant
for Sewer
Lines under
review
Mendenhall Flats 240 E Mendenhall Plans
submitted Mixed
Commercial, Office,
15 two and three
bedroom condos
Intrinsik, break
ground in 2025
Klare Building 234 E Babcock In progress Commercial New façade, mostly
exterior work
FUTURE PROJECTS ADDRESS STATUS PROPERTY
TYPE UNIT TYPE(S)
NOTES
(design
professional,
stories, etc)
GRANT
REIMBURSE
MENTS
DURD Funding
$
Fire Station One 30 N Rouse N/A Mixed 50 units at 120% AMI
1.6M Workforce
Housing Agreement -
expires Oct-2027
Block B (Salvation Army)32 S Rouse 2025/26 Hotel/Hilton
Co.
191 keys, 6 stories,
137 UG parking
spaces
Currently installing
underground utility
services along site
Block A 503-519 E Babcock Delayed Mixed 44 units, 7 stories 75 parking spaces,
high-end
Empire Site 606 E Main N/A Hotel
Ag Depot 620-714 E
Mendenhall N/A Mixed
Downtowner Building S Willson to W Main N/A Mixed Roof, brick and
suppression
BG Mill 714 E Mendenhall N/A 18 condos, 5 stories
The Baxter 105 W Main Fall 2027
completion
Hotel/Restaur
ant
32 rooms,
fitness/wellness
Intrinsik, Envi,
Langlas
NOT IN DURD
Hampton Inn 507 W Main In Progress Hotel + retail 113 rooms, 3 retail, 4
stories *not in DURD Sanderson
Stewart
Hotel Bozeman and Residences 1 W Lamme St In Progress Hotel/
Marriott
120 guest rooms, 29-
two-bedroom, 5-3-
6 stories, Autograph
Collection. *not in
SMA
Architecture
Depot on Church 112 S Church In planning office, retail, 12
residential 6 stories
84