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HomeMy WebLinkAbout26 - Development Agreements - 302 East Mendenhall Hotel LLC - Boutique Hotel Application 241472876570 ʪT*sim a -cÎT ²Î Î4 4 AM Fee O.00 IIIIIIIIIIIlllIIIIIMlillIIIllilll1111111N11111E1111111M1111111 Afterrecordingreturnto: Bozeman City Clerk PO Box 1230 Bozeman MT 59771 AGREEMENT TO SATISFY CODE REQUIREMENT This Agreement To SatisfyCode Requirement (the"Agreement")ismade this22nd day of January,2026,by and between 302 EAST MENDENHALL HOTEL LLC locatedat 402 East Main Street#3,Bozeman,MT 59715 hereby referredto as "Developer"and the City of Bozeman,a self-governingmunicipalityoperatingpursuant to itsCharterand the laws of the Stateof Montana,PO Box 1230,Bozeman MT 59771. WHEREAS,the Developer has obtainedpreliminarysiteplan approval from theCity pursuant to Application24147 fora hoteldevelopment known as theBoutique Hotel (the "Project");and WHEREAS,a requirement of approval fortheProjectto comply with the City'sUnified Development Code isas follows: BMC 38.540.070.The use depends on off-siteparking to meet parking requirements.The applicantmust provide evidence to theCommunity Development Department of a long-term leaseagreement forparking utilization of the off-sitelocationpriorto finalsiteplan approval. ;and WHEREAS,the Developer enteredintoan agreement with PetersenHoldings,LLC for theuse of propertyowned by PetersenHoldings,LLC tomeet the Developer'sparking requirementsforthe Projectand Developer desiresthe agreement with Petersen Holdings,LLC be consideredby theCity tomeet theparking requirements of the Project; and AgreementtoSatisfyCode RequirementforBoutiqueHotel Page1 of8 2876570 Page 2 of 9 05/11/2026 09:14:34 AM WHEREAS,the Developer alsoenteredintothe Parking Lot Sublease Agreement with SharBert EnterprisesInc.,lesseeto the Commercial Lease between itand DeCosse Eastgate,LLC,owner of therealpropertysubjectto the Parking Lot Sublease Agreement,tomeet the Developer's parking requirements fortheProjectand Developer desiresthe Parking Lot Sublease Agreement,be consideredby the Cityto meet the parking requirementsof the Project;and WHEREAS,pursuant tothisAgreement,the City recognizestheDeveloper's agreement with PetersenHoldings,LLC (the"PetersenOff-SiteParking Agreement")and the Developer's agreement with SharBert Enterprises,(the"SharbertEnterprisesAgreement) (collectively,the "Off-SiteParking Agreements)(a summary of both are attachedherein as Attachment A)as sufficienttomeet theparking requirements forthe Project. NOW THEREFORE,For valuableconsideration,the receiptof which ishereby acknowledged,the Developer and City agree as follows: 1.PETERSEN HOLDINGS LLC istheowner of propertywhose legaldescriptionis BOZEMAN ORIGINAL PLAT,S07,TO2 S,RO6E,BLOCK D,S80'LOTS 20 & 21 LOTS 22 &23 LESS ST 10'X70'theIN NE CORNER OF LOT 22 PLAT C-1 PLUS VACANT STREETS LESS &LOT 24. 2.DeCosse Eastgate,LLC,istheowner of propertywhose legaldescriptionis: BOZEMAN ORIGINAL PLAT,SO7,TO2S,RO6E,BLOCK D,S63'OF W24' LOT 28,S63'LOT 29,S62.5'LOTS 30&31;and 3.SharbertEnterpriseshas pursuantto the Commercial Lease agreement between it and DeCosse Eastgate,a leaseholdforcertainportionsofDeCosse Eastgate,LLCs, propertyforparking,the descriptionof which isincludedin as ExhibitA tothe Commercial Lease between DeCosse Eastgate,LLC and SharbertEnterprises,Inc.; and 4.The Developer representsto the City the Off-SiteParking Agreements willensure the Projectmeets itsparking demand during theterm of theOff-SiteParking Agreements and thatthe Off-SiteParking Agreements can be freelyand unilaterallytransferredor assignedto theDeveloper's successorsin interestto the Projectand thatthe righttouse parking as provided forinthe Off-SiteParking AgreementtoSatisfyCode RequirementforBoutiqueHotel Page2 of8 2876570 Page 3 of 9 05/11/2026 09:14:34 AM Agreements runs with the land and are forthebenefitof the Project.The Developer alsorepresentsthe parking provided on thePetersenHoldings LLC propertyand the SharBert Enterprisesleasedproperty complies,or willcomply priorto occupancy of the Project,with the City'sparking requirementsforthe Project. 5.The Developer acknowledges and agreesthe Off-SiteAgreements must be effectivepriortotheCity issuingfinalsiteplan approval and priortoissuinga buildingpermit forthe Project.The Off-SiteParking Agreements must provide theDeveloper a lawfulrightto use the propertiessubjectto theOff-SiteParking Agreements forparking purposes priortotheCity issuinga certificateof occupancy fortheProject. 6.The partiesrecognize the significantlegalimplicationsof thisAgreement and have consultedlegalcounsel priortosigning.This Agreement isbinding upon the heirs,successorsand assignsof the Developer and must be recorded inthe records of theGallatinCounty Clerk and Recorder. 7.This Agreement may be terminatedor modified only by priorwrittenconsent of theCity'sDirectorof Community Development ("Director")by a document filed in therecordsof the GallatinCounty Clerk and Recorder. 8.The Developer acknowledges and agrees theDeveloper must maintain parking on the PetersenHoldings,LLC parceland theSharBert Enterprisesparcelpursuant to the City'sapproval of the Project.Ifthe Developer desirestochange the location of itsrequiredparking,or in any way modify the amount or type of required parking,the Developer must firstobtainthewrittenconsent of the Directorof Community Development (the"Director").To do so,no lessthan six(6)months priorto the Developer taking any of the above actions,the Developer must provide writtennoticeto the Directorof itsintenttotakean actionthatwould affectitsrequiredparking.In thisnotice,the Developer must provide the Director an alternativeparking plan to continueto ensuretheProjectmeets itsparking requirements.Ifthe alternativeparking plan isapproved by the Director,the Developer must implement the alternativeparking plan priorto takingany action to change or modify the requiredparking.The Director'sreview of the alternative parking plan willbe subjectto the parking provisionsof chapter38,Bozeman Municipal Code,inplaceatthetime theDeveloper's applicationforapprovalof an alternativeparking plan isconsideredadequate pursuant to chapter38, AgreementtoSatisfyCode RequirementforBoutiqueHotel Page3 of8 2876570 Page 4 of 9 05/11/2026 09:14:34 AM Bozeman Municipal Code.The Directormay approve an alternativeparkingplan thatauthorizesthe Developer topay cash-in-lieuof parking in compliance with thecash-in-lieuprovisionsof Chapter 38,BMC,inplace at thetime of the Director'sdeterminationand inan amount setby the City atthetime of the Director'sdetermination. 9.Notwithstanding any otherprovisionof thisAgreement,the City reservestheright torequireDeveloper to provide parking spaces ata differentlocation(s)tomeet theparking requirements of theProjectifat any time theDirectordetermines,in theDirector'ssolediscretion,thelocationof the Project'sparking no longer meets theProjects'requiredparking or otherapplicablerequirementsof the Bozeman Municipal Code forthe Project.The Developer acknowledges that failureto do so willconstitutenoncompliance with the siteplan approval forthe Project. In such a case,Developer agrees itwill,within six(6)months of the date of the Director'sdeterminationthatallor a portionof the requiredparking no longer satisfiestherequirement of the Bozeman Municipal Code,provide alternative parking spaces tothesatisfactionof the Directorin compliance with theparking requirements inplace atthe time of theDirector'sdetermination. 10.Each person signingthisAgreement representsand warrantsthathe isfully authorizedto execute thisAgreement on behalfof theentityon whose behalfsuch individualhas signed thisAgreement,and thatby signingthisAgreement such entitywillbe bound by the terms containedherein. 11.Developer waives any and allclaims and recourseagainstCity,includingthe right of contributionforlossor damage toperson orpropertyarisingfrom,growing out of,or inany way connected with or incidenttothe performance of thisAgreement except "responsibilityfor [City's]own fraud,forwillfulinjurytotheperson or propertyof another,or forviolationof law,whether willfulor negligent"as per 28-2-702,MCA. 12.Representativesand Notice: a.City's Representative:City's Representative for the purpose of this Agreement must be the Directorof Community Development or such other individual as City must designate in writing.Whenever approval or AgreementtoSatisfyCode RequirementforBoutiqueHotel Page4 of8 2876570 Page 5 of 9 05/11/2026 09:14:34 AM authorizationfrom or communication or submission to City isrequiredby thisAgreement,such communication or submission must be directedto City'sRepresentativeand approvals or authorizationsmust be issuedonly by such Representative;provided,however,thatin exigentcircumstances when City's Representative is not available,Contractor may directits communication or submission tootherdesignatedCity personnelor agents as designatedby City inwritingand may receiveapprovalsor authorization from such persons. b.Developer's Representative for the purpose of thisAgreement must be Matthew Paine or such other individualas Developer must designate in writing.Whenever directionto or communication with Developer is required by this Agreement,such directionor communication must be directedtoDeveloper's Representative;provided,however,thatinexigent circumstanceswhen Developer's Representativeisnot available,City may direct its direction or communication to other designated Developer personnel or agents. c.Notice:All noticesrequiredby thisAgreement must be in writingand must be provided to theRepresentativesnamed in thisSection.Notices must be deemed given when delivered,ifdeliveredby courierto Party'saddress shown above during normal businesshours of the recipient;or when sent, if sent by email (with a successfulread receipt)to the email address provided by the Party's Representative;or on the fifthbusiness day followingmailing,ifmailed by ordinarymail to the addressshown above, postage prepaid. 13.This Agreement may not be enlarged,modified or alteredexcept by written agreement signed by both Parties.Developer may not assignDeveloper's dutiesor obligationsarisinghereunder,without the priorwrittenconsent of City. 14.A waiver by eitherParty of any defaultor breach by theotherPartyof any terms or conditionsof thisAgreement does not limitthe otherParty'srightto enforcesuch term or conditionsor to pursue any availablelegalor equitablerightsintheevent of any subsequent defaultor breach. 15.Dispute Resolution: AgreementtoSatisfyCode RequirementforBoutiqueHotel Page5 of8 2876570 Page 6 of 9 05/11/2026 09:14:34 AM a.Any claim,controversy,or dispute between the Parties,theiragents, employees,or representativesmust be resolvedfirstby negotiationbetween senior-levelpersonnel from each Party duly authorized to negotiate settlementagreements.Upon mutual agreement of the Parties,the Parties may invitean independent,disinterestedmediator to assistinthenegotiated settlementdiscussions.The Partiesmust attempt to resolveby negotiation within 90 days afterthe claim,controversy,or disputehas arisen. b.Ifthe Partiesare unable to resolvethe disputepursuant to subsection(a), then such disputemay only be resolvedina courtof competent jurisdiction in compliance with the Applicable Law provisions of thisAgreement.In such a case,allcourtactionsmust be commenced within 1 year afterthe settlementprocedure in subsection(a)has been exhausted. 16.If any portion of thisAgreement is held to be void or unenforceable,allother provisionsof thisAgreement must remain in effect. 17.The Partiesagree thatthisAgreement is governed by the laws of the State of Montana. 18.This Agreement is binding upon and inures to the benefitof the heirs,legal representatives,successors,and assignsof the Parties. 19.This Agreement isforthe exclusivebenefitof the Parties,does not constitutea third-Partybeneficiaryagreement,and may not be reliedupon or enforced by a thirdParty. 20.This Agreement constitutesthe entireAgreement of the Parties.Covenants or representationsnot contained herein or made a partthereofby reference,are not binding upon the Parties.There are no understandingsbetween the Partiesother than as setforthin thisAgreement.All communications,eitheroral or written, made prior to the date of thisAgreement are hereby abrogated and withdrawn unlessspecificallymade a partof thisAgreement by reference. END OF DOCUMENT EXCEPT FOR SIGNATURES AgreementtoSatisfyCode RequirementforBoutiqueHotel Page6of8 2876570 Page 7 of 9 05/11/2026 09:14:34 AM DEVELOPER 302 EAST MENDENHALL HOTEL LLC BY:MATT PAINE MEMBER/MANAGER STATE OF MONTANA ) )ss. County ofGallatin ) Thisdocument was signedbeforeme on the ay of ri),2026,by Matt Paine,asManaging Member of 302 EastMendenhall Hotel,LLC. IN WITNESS WHEREOF,Ihave hereuntosetmy hand and affixedmy NotarialSealthe day and yearfirstabove written. JEAN FOSTER NotaryPublic^^- OTARJA fortheStateofMontanaryPublicfotheStateofMontanai.:-·-3 Residingat:SEAL sozernan,MontanaPrmtedName:....· My CommissionExpires:Residingin ×RP .n,o september26,2029 My Commission expires 2to,2079 AgreementtoSatisfyCodeRequirementforBoutiqueHotel Page7 of8 2876570 Page 8 of 9 05/11/2026 09:14:34 AM THE CITY OF BOZEMAN BY:ERIN GEORGE, DIRECTOR OF COMMUNITY DEVELOPMENT CITY OF BOZEMAN STATE OF MONTANA ) :ss County of Gallatin ) This document was signed before me on the 3 day of ,2026,by Erin George,Directorof Community Development forthe City of Bozeman. IN WITNESS WHEREOF,Ihave hereunto setmy hand and affixedmy sealon the day and year firstwrittenabove. (SEAL) s ERH0F =fortheStateofMontana (PrintedName Here)Residingat:A Bozeman,Montana Notary Publicforthe Stateof Montana 1 2 Š ** Residing at MVWoJ{\ My Commission Expires:3 (Use 4 digitsforexpirationyear) AgreementtoSatisfyCode RequirementforBoutiqueHotel Page8 of8 2876570 Page 9 of 9 05/11/2026 09:14:34 AM ATTACHMENT A Summary ofOff-SiteParking Agreements BoutiqueHotel-CityofBozeman ApplicationNo.24147 Lease 1 -Petersen Holdings,LLC Document CommercialParkingLotLeasedatedApril15,2025 Landlord PetersenHoldings,LLC -Seattle,WA Tenant 302EastMendenhallHotelLLC-402E.MainSt.,Suite3,Bozeman,MT 59715 ParkingLotLocation BlockD,OriginalPlat,CityofBozeman.Boundedsouthbyexistingalley,westbyBozeman Creek,northbyMendenhallSt.,eastbyN.RouseAve. LegalDescription S.80'ofLots20&21,allofLots22&23,BlockD,plusLot24,BlockD,OriginalPlat,CityofBozeman. ParkingSpaces 43 spaces Term 25years-commencingonoraboutDecember1,2027;expiringonoraboutJanuary31,2052 Lease 2 -SharBert Enterprises,Inc. Document ParkingLotSubleaseAgreementdatedMarch27,2026 Sublandlord SharBertEnterprises,Inc.-P.O.Box1860,Bozeman,MT 59771 Tenant 302EastMendenhallHotelLLC-402E.MainSt.,Suite3,Bozeman,MT 59715 PrimeLandlord DeCosseEastgate,LLC -consentedtosublease.PrimeLeasetermextendedtoMarch31,2048bySecondAmendmentdatedMarch27,2026. ParkingLotLocation Behindandacrossthealleyfrom237E.MainSt.,Bozeman,MT LegalDescription Approx.63ft.N/S× 108ft.E/W inLots28-31,Block"D",originalplat,CityofBozeman.[DeedRef:Film2400132,Pg.1-2] ParkingSpaces 14spaces Term March27,2026-March31,2048 ThissummaryisprovidedasAttachmentAtotheAgreementtoSatisfyCodeRequirementfortheBoutiqueHotel(CityofBozemanApplicationNo.24147).Itisasummaryonly;thefullexecutedleaseagreementsarecontrolling.