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HomeMy WebLinkAboutDraft Request for Proposals for Construction of Hotel with Meeting Facilities in Downtown Bozeman, Carnegie Parcel1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development And Community Relations SUBJECT: Commission Review and Comment on the Draft Request for Proposals (RFP) for the Construction of a Full Service Hotel with Meeting Facilities in Downtown Bozeman, Montana on the Carnegie Parcel Located at 106 East Mendenhall Street. MEETING DATE: September 26, 2011 AGENDA ITEM TYPE: Action Item RECOMMENDATION: After having reviewed the RFP and taking public comment, consider offering comments and suggestions to staff relating to the content and proposed selection schedule outlined in the draft RFP and direct staff to finalize and publish the document. BACKGROUND: The draft RFP for the construction of a full Service hotel with meeting facilities in downtown Bozeman, Montana on the Carnegie parcel located at 106 East Mendenhall Street is attached hereto as Attachment 1. The Carnegie parcel is located on the corner of North Black and East Mendenhall at 106 East Mendenhall. (Attachment 2) The lot contains 71 parking spaces. The property was purchased by the City of Bozeman in 1976. (Attachments 3 & 4) Additionally, the Carnegie parcel is located directly east, across North Black Avenue, from Bozeman’s five-story (including the basement level), 435 space parking structure, Bridger Park Downtown. On May 9, 2011, the City conducted a public forum and information and listening session in the City Commission meeting room with businesses and property owners surrounding the Carnegie parcel. Approximately 25 – 30 business and property owners, staff and elected officials participated in the discussion. (Attachments 5 and 6) The majority of property and business owners present at the meeting expressed concern that disposing of the subject property may negatively impact their business due to the proposed displacement of public parking at the Carnegie parcel. There was some support for the sale of the 56 2 Carnegie parcel for a higher and better use than that of a surface parking lot and still other attendees expressed a great deal of interest but had no recommendation at that time. On May 11, 2011, the Bozeman Parking Commission met in the City Commission meeting room at its regularly scheduled monthly meeting wherein the Parking Commission found by a vote of 5 – 1 (with one recusal) that there is a higher and better economic use and a greater benefit to the downtown area for the Carnegie parcel than surface parking due to the amount of available parking in the vicinity of this lot, particularly at the Bridger Park Downtown, which currently has the capacity to replace removal of the Carnegie lot spaces. Accordingly, the Parking Commission found that the Carnegie parcel is not needed to provide public parking. (Attachment 7) On June 13, 2011, the City Commission conducted a public hearing to determine whether real property owned by the City of Bozeman located at 106 East Mendenhall Street, known as the Carnegie parcel, is necessary for the conduct of City business or the preservation of its property and provided direction to staff. (Attachment 8) The Commission took the following action: Vote on the Motion that having conducted a Public hearing considered written and spoken public testimony the recommendation of the Parking Commission and based on the findings contained in the staff memorandum findings provided by the Parking Commission and findings articulated by the Commission during discussion I hereby move: 1. That the real property known as the Carnegie parking lot (lots 17A, 18, 19, 20, 21, and 22 of Block E of the Original Town-site of Bozeman, Montana) located at 106 East Mendenhall is no longer necessary for the conduct of City of Bozeman business or the preservation of City of Bozeman property and that sale and development of the real property by a private entity, in compliance with adopted City plans, is in the public interest; 2. That any motion made by the Commission on May 2, 2011 regarding this property or the proposed sale of is superseded in its entirety by this motion; and 3. That the staff is hereby directed to proceed with a request for proposals process that could authorize the sale of the Carnegie parking lot to the entity whose proposal satisfies all legal requirements for the sale of City real property and whose development proposal the Commission determines best fulfills the objectives of the City’s 2020 Community Plan, its Economic Development Plan, and the Downtown Improvement Plan. Those voting Aye being Crs. Becker, Mehl, Andrus, Taylor, and Mayor Krauss. Those voting No being none. The motion passed 5-0. With Commission direction, utilizing both internal and external resources, Parking, Legal, Planning and Economic Development staff prepared the draft RFP for review. Other internal reviews include those by Finance and Administration. Additionally, external, private sector, review of the RFP was solicited and comments received and incorporated into the draft. 57 3 Once approved by the Commission and finalized, staff intends to: 1. Submit the RFP notice to the local newspaper of record for publication, as required by State statute; 2. E-mail the RFP to private individuals who have requested said service; 3. Publish the RFP, related plans, associated documents, and frequently asked questions (FAQ) on www.bozeman.net . (Attachment 9) 4. Publish an abbreviated RFP notice in one newspaper with nationwide circulation; and 5. Publish an abbreviated RFP notice in one newspaper with regional circulation. At the time of the submittal of this memo, no additional public comment has been received. UNRESOLVED ISSUES: None at this time. ALTERNATIVES: As recommended by the Commission. UNRESOLVED ISSUES: None at this time. ALTERNATIVES: As recommended by the Commission. FISCAL EFFECTS: At this time, fiscal effects are undetermined. Attachments: 1. Draft RFP for the Construction of a Full Service Hotel with Meeting Facilities in Downtown Bozeman, Montana on the Carnegie Parcel located at 106 East Mendenhall Street; 2. Aerial photograph of the Carnegie parcel; 3. Deeds (3) to the property located at 106 E. Mendenhall (Carnegie parcel); 4. Plat map of the property located at 106 E. Mendenhall (Carnegie parcel); 5. Sign in sheet for the May 9, 2011, Carnegie parcel public forum; 6. Public comment received as of September 15, 2011; 7. Minutes from the May 11, 2011, Parking Commission meeting and Parking Commission Guidelines; 8. Minutes from the June 13, 2011, City Commission meeting; and 9. Screen shot of the City of Bozeman’s webpage for all documents and FAQ’s related to the RFP for the construction of a full service hotel with meeting facilities in downtown Bozeman, Montana on the Carnegie parcel located at 106 East Mendenhall Street. Report compiled on: September 15, 2011 58 1 | P a g e City of Bozeman, Montana Request for Proposals (RFP) for the Construction of a Full Service Hotel with Meeting Facilities In Downtown Bozeman Section 1 INTRODUCTION ―In some ways it is surprising that a community of Bozeman‘s stature does not already have a small 50-80 room, ‗four star‘ hotel. The university, the hospital and other corporate entities report that such a hotel is needed for many types of visitors.‖1 Thank you for your interest in the development of a full-service hotel with meeting facilities in the heart of downtown Bozeman, Montana, and the northern Rocky Mountains, gateway to Yellowstone National Park. This RFP is a request for detailed plans for the financing, construction and operations of a downtown hotel from professionals in the development community. The level of design, furnishing and operation of the project must be commensurate with a high quality, unique lifestyle hotel with individualized, non-franchised architecture. Respondent must show multiple successes in developing and operating high quality hotels in similar environments. Section 2 DEVELOPMENT OPPORTUNITY The property development opportunity is to design, build and operate a full service hotel with meeting facilities to attract more downtown patrons and high quality events and help the City of Bozeman (the City) maintain strong tourism, entertainment and cultural and professional events industries. The project must be consistent with all City plans that relate to its historic downtown core and dynamic Central Business District including but not limited to the stated goals of the Bozeman City Commission, the Downtown Bozeman Improvement Plan, Bozeman Community Plan and the Economic Development Plan. Section 3 WHY BOZEMAN? Located in the heart of the Rocky Mountains, Bozeman is truly a remarkable community. The City of 38,000 people serves a region of 90,000+ with backgrounds and cultures as diverse as the Montana landscape. From cattle ranchers to high tech engineers, the area is home to a breed of 1 Downtown Bozeman Improvement Plan, page 37. 59 2 | P a g e people who have come to appreciate an unmatched quality of life. While retaining a small town feel, Bozeman prides itself on offering community activities and programs typically available only in larger, metropolitan areas. Combine the wide array of cultural resources with an abundance of outdoor recreational opportunities and it's easy to understand why Bozeman consistently ranks as one of the nation's most livable cities. The Gallatin Valley is one of the fastest-growing areas in the Northern Rocky Mountains. Bozeman is the regional trade, education and medical center and consistently hosts top-tier medical, retail, cultural and educational amenities that service southwest Montana, northwest Wyoming and eastern Idaho. Through innovation, collaboration and a focused effort, Bozeman is well positioned as a competitive and attractive place to conduct business, live, visit and recreate. Bozeman is also home to Montana State University, a thriving research university. A new classification system by the Carnegie Foundation for the Advancement of Teaching recognizes MSU as one of 96 research universities with ―very high research activity.‖ Other such institutions are Yale University, Harvard University, Johns Hopkins University, the University of Washington and Oregon State University. MSU, through competitively awarded grants and contracts, had $109,481,694 in research expenditures between 2009 and 2010. MSU's most valuable contribution to the state's economy is an educated workforce that attracts, promotes, and retains higher paying jobs in Montana. Considered the ―Gateway to Yellowstone National Park‖ Bozeman boasts visitor numbers of over approximately one million visitors per year. Three world class ski resorts, Bridger Bowl, 60 3 | P a g e Big Sky and Moonlight Basin are only minutes away. Many visitors arrive in Bozeman via Interstate 90, which bisects the beautiful Gallatin Valley from east to west. Many others transit via the recently expanded Gallatin Field Airport, one of the busiest airports in the State of Montana. Gallatin Field Airport recorded its busiest year ever with 365,210 passengers boarding airline flights in 2010. This represents a 6.6% increase over 2009 and nearly 14,000 passengers more than the previous record set in 2008. Presently, Gallatin Field Airport and local private business interests are exploring the feasibility of providing a customs agent for international passenger arrivals and departures. A newly constructed concourse addition will expand service to five airlines and averages 20 flights per day including many non-stop connections to major hubs including Atlanta (seasonal), Chicago, Denver, Los Angeles (seasonal), Las Vegas, Minneapolis, Phoenix, Salt Lake City, San Francisco (seasonal) and Seattle. Additionally, two private jet centers provide an array of services to private jet passengers. Over the years, Bozeman has been fortunate to be included on several ―Best Of‖ lists from a variety of sources. For example, in 2010 an economic research firm ranked Bozeman as the seventh strongest micropolitan economy in 2010 out of 576 small cities studied throughout the United States. Additional recognitions include:2 a. ―Where to Live and Play Now‖: This article by National Geo- Adventure recommended Bozeman as a good place to raise children for the reasons of safety, exposure to culture, and outdoor amenities. October, 2009; b. ―The Union of Town and Gown‖: Entrepreneur Magazine highlighted colleges that are working with their cities to foster a local entrepreneurial spirit that will develop the economy and encourage business-savvy students to stick around post-graduation. Bozeman ranked #6 on this list. October, 2009; c. ―Happiest States of 2009: The List‖: LiveScience ranked Montana #3 behind Hawaii and Utah where the index included questions about six areas of well-being, including overall evaluation of resident‘s lives, emotional health, physical health, healthy behaviors and job satisfaction. February, 2010; d. ―Best Towns 2010 – Best for Skiing (West)‖: Outside magazine featured the top 25 towns in America for cycling, paddling, running, surfing, skiing, and — because you might want everything — all of the above. Bozeman received these accolades for having two ski areas and 350 inches of annual snowfall. August, 2010; e. ―10 Best Affordable Mountain Towns for Retirement‖: According to U.S. News & World Report, Bozeman fits the bill of offering access to plenty of skiing, trails, and wildlife, while still providing affordable housing and a reasonable cost of living in addition to other retiree-friendly characteristics, such as access to healthcare and a low crime rate. July, 2010; 2 This list was excerpted from Robyn Erlenbush‘s article ―Twelve Reasons to Live in Big Sky Country‖ appearing in the Bozeman Daily Chronicle’s Businesss2Business publication on January 11, 2011. 61 4 | P a g e f. ―Bozeman named #1 town to live (if you‘re a skier)‖: According to Powder magazine, ―Bozeman is the perfect mix of ski town and skitropolis; it‘s more affordable than Jackson Hole, less crowded than Salt Lake City and more of a real town than Whistler.‖ November, 2010; and g. ―Top Retirement Town‖: Bozeman was profiled in Where to Retire magazine‘s November/December issue for possessing many qualities important to today‘s retirees. October, 2010. The region also hosts numerous ―blue ribbon‖ trout fishing streams including the nearby Yellowstone, Boulder, Madison, and Gallatin rivers. Bozeman is also distinguished by its thriving and vibrant downtown food, culture, arts, and entertainment scenes. Bozeman is the regional hub for retail and commerce, education, healthcare, tourism, manufacturing and innovation. Bozeman is home to notable, one-of-a-kind, worldwide organizations such as Right Now Technologies, Zoot Enterprises, Schedulicity.com, Simms Fishing Products, Mystery Ranch Backpacks, West Paw Design, LigoCyte Pharmaceuticals, Bacterin International, Scientific Materials, BioScience Laboratories, Foundant Technologies, Bridger Photonics, ILX Lightwave, and Lattice Materials, to name only a few. Bozeman is a dynamic, growing, and thriving community boasting an excellent university surrounded by beautiful mountains, clear streams, and fertile land. The Bozeman community strongly supports our excellent school systems which are important to our well-educated community and workforce. Additionally, Bozeman is the regional trade and medical center of southwest Montana and hosts top-tier medical, retail, and cultural amenities that service southwest Montana, northwest Wyoming, and eastern Idaho. Add the scenic beauty of our mountains, 82 miles of designated ―Blue Ribbon‖ trout streams, and proximity to Yellowstone National Park (80 miles), Big Sky (48 miles), Moonlight Basin (50 miles), and Bridger Bowl (13 miles) ski areas and one can see why Bozeman is a great place to visit, call home or start or relocate a business. Section 4 PROJECT GOALS AND OBJECTIVES a. Develop a regionally and nationally recognized, high quality downtown hotel with meeting facilities; b. Enhance the dynamic environment of downtown Bozeman with a boutique hotel that complements the area‘s existing retail, dining, entertainment, accommodation, and meeting venues; c. Serve as an added catalyst for continued economic growth and provide a direct economic benefit to Bozeman; d. Maximize the site‘s potential in a creative and complementary manner; 62 5 | P a g e e. Reflect and respect the architectural and spatial context of the site; f. Create long-term and sustainable jobs; and g. Further the goals and objectives of the Bozeman City Commission, Downtown Bozeman Improvement Plan, Bozeman Community Plan, and the City‘s Economic Development Plan. Section 5 THE PROPERTY The development opportunity is located on a 26,600 square foot parcel known as the ―Carnegie parcel‖ located on the corner of North Black Avenue and East Mendenhall Street at 106 East Mendenhall Street. The Carnegie parcel presently serves as a surface parcel and contains 71 parking spaces. The property was purchased by the City in 1976. Additionally, the Carnegie parcel is located directly east, across North Black Avenue, from Bozeman‘s five-story (including the basement level), 435 space parking, restaurant, and retail structure, Bridger Park Downtown. Located in Bozeman‘s Central Business District and immediately north of Main Street, the site is within less than five minutes walking distance of entertainment and cultural attractions, multiple historic districts, business services, public library, public parks, public parking structure, restaurants, shopping, and public transit. The site is owned by the City and currently managed by the Bozeman Parking Commission as a public surface parcel. The parcel is adjacent to Bozeman‘s Main Street Historic District, recognized on the National Register of Historic Places as a historic commercial center with a period of historic significance between 1872 and 1945. Bozeman‘s Main Street district remains the heart of the community, and attracts innumerable area residents and many thousands of out–of-town visitors per year. Although both existing historic hotels located within the district have been converted to private non-hotel uses, visitors often express an interest in staying in or directly adjacent to the Main Street district given its proximity to numerous locally-owned restaurants, galleries, boutiques as well as music, cultural, and community events. Section 6 SELECTION Through this RFP process, the highest qualified proposals will be forwarded to the Bozeman City Commission for final selection. Formal negotiations for a sale and development agreement are expected at the end of this process. 63 6 | P a g e Section 7 DEVELOPMENT SITE INFORMATION The proposed 26,600 square foot hotel site is located on real property owned by the City known as the Carnegie parcel (lots 17-A, 18, 19, 20, 21, and 22 of Block E of the Original Townsite of Bozeman, Montana) located at 106 East Mendenhall (see the orange square on the maps below). Details related to the size, zoning, and development capacity of the site area are summarized in the City‘s Unified Development Code or UDC. Map A 64 7 | P a g e Map B Section 8 DEVELOPMENT PARAMETERS HEIGHT LIMIT The maximum height allowed for the development site is 70 feet as defined in the UDC. Compatibility with adjacent development may require less than the maximum for some portions of the building based on building design. The maximum height of the proposed hotel shall be measured from the sidewalk. Details related to the size, zoning, and development capacity of the site area are summarized in the City‘s UDC. LOT COVERAGE The entire area of the lot may be covered exclusive of the minimum yard setbacks. 65 8 | P a g e PARKING AND EASEMENT REQUIREMENTS Provide the minimum number of spaces required by the UDC (See UDC, Section 18.46.040). The City will entertain cash in lieu of parking spaces or an arrangement with the Bridger Park Downtown. Additionally, the City will consider shared parking proposals utilizing adjacent parking resources. DESIGN FLEXIBILITY There are opportunities for flexibility in compliance with numeric standards in exchange for superior design. (See UDC, Section 18.28.070) Section 9 DUE DILIGENCE INFORMATION Property Appraisal The City has obtained a real estate appraisal on the Carnegie parcel. The appraisal is available at http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ. Property Title The City has contracted for a Preliminary Commitment for Title Report to be prepared for the Carnegie parcel. The Preliminary Commitment for Title Report is available at http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ. Zoning The site is zoned B-3, Central Business District, see http://www.bozeman.net/Departments- (1)/Administration/Commission/BID---RFP---RFQ for a current zone map. Environmental Clearance The City has contracted for a Phase I Environmental Assessment to be prepared for the Carnegie parcel. The Phase I Environmental Assessment is available at http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ. Section 10 DESIGN CONCEPTS AND GUIDELINES Design guidelines for the Downtown area, of which the hotel site is a part, are provided in the Downtown Bozeman Improvement Plan and the Design Guidelines for the Neighborhood Conservation Overlay. The guiding design principles for this area are summarized as follows: 66 9 | P a g e a. Reinforce the Downtown Bozeman Improvement Plan, Bozeman Community Plan, the City‘s Economic Development Plan, and the City Commission‘s 2011 - 2012 Work Plan; b. Respect history and community landmarks; c. Promote high standards of street design with active streetscapes and visually permeable street level facades; d. Create a vibrant edge to the street with strong building character and proximity to the sidewalk; e. Maintain and extend historic streetscape elements as specified in the ―Downtown Business Improvement District Streetscape Plan‖; f. Maintain the distinction between the street level and the upper floor in the building design; g. Provide a gracious setting, Create dignified public spaces; embellish outdoor spaces; h. Achieve building design coherence; i. Maintain and extend the traditional building form and mass as seen in the surrounding commercial district, the building may express traditional form and massing with current architectural vocabulary; j. Use building materials as seen traditionally in the surrounding commercial district; k. Communicate building function; and l. Build to the highest standards. Section 11 SUBMITTAL REQUIREMENTS/CONSIDERATIONS Except for the project pro-forma and information regarding the ability to financially guarantee the project, after the closing date for submissions all submittal documents are considered public records. Each submittal must contain all of the following: a. Discuss how the proposal is consistent with, and furthers City Commission Policy Initiative 1c) ―[f]acilitate the development of a downtown hotel as identified in the downtown development plan‖, of the Commission‘s 2011 - 2012 Work Plan 67 10 | P a g e [HYPERLINK] the Downtown Bozeman Improvement Plan, Bozeman Community Plan, and the City‘s Economic Development Plan; b. Include a detailed description of the proposed project (building sq. footage, number of floors, proposed uses, not less than 20% interior and 50% exterior schematics, including the proposed number of rooms, a discussion of retail, restaurant, meeting and/or other proposed use of space (if applicable); c. Provide a parking plan that includes the appropriate number of parking spaces required to serve the proposed hotel. Include a detailed description of how parking issues will be addressed; d. Discuss the inclusion of meeting facilities in the proposal; e. Enumerate and describe public (local, state and federal) incentives or funding sought. Proposals involving any contribution from the City's General Fund will not be considered; f. Clearly delineate the desired role of the City, if any, in terms of the financing, construction, and operations of a downtown hotel; g. Include estimated project costs, timeline for completion, and a summary of proposed equity/financing structure; h. State whether the intent is to purchase the property from the City and proposed purchase price or propose an alternative legal relationship; i. Provide an economic plan/pro-forma. In a separate document or documents, substantiate the financial capacity to fund the project costs, including: 1) lot purchase, if that is proposed; and 2) estimated construction costs, including both detailed hard costs and soft costs, and financing costs, if any. In addition, provide a detailed pro-forma operating budget and substantiate the ability to fund costs in excess of income if startup losses are concluded in the budget. ―Substantiation‖ will be considered an accountant prepared verification of equity capital sufficient to construct and operate the project, a letter of commitment from a bank or other reputable commercial lender in an amount sufficient to construct and operate the project, or verification of a combination of equity capital and a lender letter of commitment. Except for the project pro-forma and information regarding the ability to financially guarantee the project, after the closing date for submissions all submittal documents are considered public records; j. If an alternative legal relationship is proposed, provide proposed transaction terms and conditions and a term sheet that includes the proposed lease amount and proposed lease term; k. Acknowledge the rights of the City, per Section 18; 68 11 | P a g e l. Include a narrative and photographic history of successfully completed projects of similar scope; m. Provide public and/or private sector project references; n. Acknowledge that the City reserves the right to require the reversion of the property back to the City if the project is not commenced or completed within a pre-determined time frame; o. Acknowledge that the City will maintain ownership and operational rights of the Carnegie parcel until a proposal is approved, contracts are executed, and a building permit issued for the project; p. Identify long-term, sustainable jobs created; q. Describe the project‘s contribution to the area economy through the utilization of locally sourced materials, professionals, and labor; r. Provide a full description of the submitting development entity, including full legal name, type, ownership, and primary contact regarding submittal; s. Identify the management company that will manage the overall, long-term hotel operations and describe the proposed legal relationship between the City and the submitting entity; t. Provide identification and qualifications of the proposed team members (i.e. the developer, hotel operator, etc). Include a single contact person for all correspondence and notifications; u. Provide a description of the project‘s potential to serve as an economic stimulus to the area and projected economic impact, including impact on the local lodging, local Tourism Business Improvement District or facility use tax ($1/night stay), and local property tax base; v. Identify additional project benefits to the City, such as jobs created, services provided, and needs met; w. Provide a traffic and access plan describing the maintenance of access to the Bridger Park Downtown and all other adjacent businesses throughout the site preparation and construction phases; and x. Acknowledge the City‘s anti-discrimination policy for contracts, purchases, and other agreements. 69 12 | P a g e Prior to executing a contract for the sale of the subject property, or permitting of the project, the City may require the successful submitting entity to furnish an approved Construction Performance Bond and a Construction (Labor and Materials) Payment Bond, each in the amount of one hundred percent (100%) of the contract amount. Insurance, as required by the City, shall be provided by the successful submitting entity and a certificate(s) of that insurance shall be provided under terms approved by the City Attorney. Teams are encouraged to provide any information that will assist the City in the evaluation of their submission. However, bulky promotional materials not directly related to the project are discouraged. Submissions must be in the actual possession of the Office of the Bozeman City Clerk, (121 North Rouse Ave, P.O. Box 1230, Bozeman, MT 59771 on or prior to Tuesday, January 3, 2012 at 5:00pm, Mountain Standard Time. Late submissions will not be considered. Submissions must be provided in a sealed package with the statement ―Downtown Bozeman Hotel Proposal‖ and the prime contact name and address clearly labeled on the front. Please submit ten (10) complete paper copies and five (5) complete digital copies on CD-ROM or flash drive of the proposal. PDF digital file formats preferred. Section 12 EVALUATION PROCESS THE CITY RESERVES THE RIGHT TO REJECT ANY OR ALL SUBMITTALS AT ITS SOLE AND ABSOLUTE DISCRETION. The City will designate a Preliminary Review Panel (Panel) to evaluate all proposals received in response to this RFP. The Panel will assess the proposals based on the evaluation criteria described in Section 13, below. Panel members will score each proposal in their own preferred order. The scores assigned by each Panel member will be based on the individual member‘s reasonable judgment as to the degree to which the proposal complies with the criteria and intent of the RFP process. Members of the Panel and other City staff may contact references and industry sources, investigate previous projects and current commitments, and interview some or all of the development team. The proposals passing preliminary review will be forwarded to the Bozeman City Commission for final selection based on the evaluation criteria described below. Respondents selected for Commission review may be requested to present their full proposal before the City Commission at a public meeting. 70 13 | P a g e Architectural design of final selected proposal will be reviewed through the City‘s Planning Department, with particular attention paid to the municipal code requirements for Certificates of Appropriateness. Bozeman‘s Design Guidelines for Historic Preservation and the Neighborhood Conservation Overlay District should be consulted during the design process and will be used by City Planning Staff to evaluate the project. The City does not require any particular architectural style in building design. Planning staff is available to further discuss design guidelines, objectives, and intent as needed. Section 13 EVALUATION CRITERIA The following criteria will be utilized in determining those submittals deemed most advantageous to the City and most responsive to stated goals of this project. The City reserves the right during the evaluation process to determine the weight to be applied to each. a. Development Entity/Capacity i. Demonstrated experience in successful financing, development, operation, and economic performance of comparable projects; ii. Ability to complete the project in a timely fashion; and iii. Preference will be given to those developers/operators that have experience in public/private projects utilizing private sector financing. b. Submittal Requirements i. Extent to which the submittal satisfies the Submittal Requirements/Considerations described in Section 11 and the Project Goals and Objectives described in Section 4; and ii. Ability to effectively design, construct, and operate the project within the Development Parameters described in Section 8. c. Transaction Terms i. Proposed development schedule and phasing required to complete the project; and ii. Quality and feasibility of proposed business offer. Section 14 PROPOSED SELECTION SCHEDULE 71 14 | P a g e The City intends to proceed in accordance with the schedule shown below. The City reserves the right to issue written notice of any changes in the schedule should the City determine, in its sole and absolute discretion, that such changes are necessary or desirable. The City agrees to provide adequate notice to respondents should the schedule be amended. Such notice will be provided through the City’s website at www.bozeman.net. Section 15 SCHEDULE RFP Release: October 3, 2011 Due date for written questions: December 1, 2011 RFP Response Deadline: January 3, 2012 (no later than 5:00pm Mountain Time) Section 16 INQUIRIES All questions regarding the RFP shall be in writing and directed to: Brit Fontenot Director of Economic Development and Community Relations City of Bozeman, Montana 406-582-2258 bfontenot@bozeman.net Written questions and responses will be published on the City‘s webpage at http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ Section 17 RESPONDENT RESPONSIBILITIES All facts and opinions stated herein and in any additional information, whether written or oral, provided by the City of Bozeman and/or its representatives, are based on available information and are believed to be accurate. However, no representation or warranty is made with respect thereto. The information in this document is intended to help prospective respondents create viable responses. However, it is the sole and absolute responsibility of those responding to this request to complete their own due diligence with regard to the information contained herein, including, without limitation, any development restrictions, whether contractual, governmental, physical, or otherwise, which may restrict or affect development of the site. Development is subject to all applicable development standards and restrictions. 72 15 | P a g e Section 18 RESERVATION OF RIGHTS BY CITY OF BOZEMAN The issuance of this RFP and the acceptance of a submittal does not constitute an agreement by the City that any contract will actually be entered into by the City. Any costs incurred by respondents in preparation of a response to this RFP or future RFP are completely the responsibility of the respondents. Any or all disputes arising under this RFP and any contract negotiated as a result of this RFP shall be governed by the laws of the State of Montana. The City reserves the right to issue written notice of any changes in the submittal process should the City determine, in its sole and absolute discretion, that such changes are necessary or desirable. In addition and notwithstanding any other provision of the RFP, the City reserves the right to: a. Waive any immaterial defect or informality in a submittal; b. Extend or otherwise revise the submittal date; c. Reject any or all submissions or portions thereof; d. Reissue a new or revised RFP; and e. Request additional information or one or more teams to submit a more detailed submittal. Section 19 NO PARTNERSHIP/BUSINESS ORGANIZATION Nothing in this RFP or in any subsequent development agreement, lease, or any other contract entered into as a result of this RFP shall constitute, create, give rise to or otherwise be recognized as a partnership or formal business organization of any kind between or among the City or the team unless agreed to by the City. Section 20 EMPLOYMENT RESTRICTION AND INDEMNITY No person who is an officer, employee, contractor or consultant of a team shall be an officer or employee of the City. No rights of the City‘s, retirement or personnel rules accrue to the submitting team, its officers, employees, contractors, or consultants. The successful team shall have the total responsibility of all salaries, wages, bonuses, retirement, withholdings, worker‘s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums appurtenant thereto concerning its officers, employees, contractors, and consultants. Each submitting team shall save and hold the City harmless with 73 16 | P a g e respect to any and all claims for payment, compensation, salary, wages, bonuses, retirement, withholdings, worker‘s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums in any way related to each submitting team‘s officers, employees, contractors and consultants. Section 21 PROPERTY RIGHTS/DISCLOSURE OF INFORMATION All materials submitted in response to this RFP and submittals subsequent thereto, shall become the property of the City upon delivery. By tendering a response to this RFP, every submitting team waives any right of access to other submittals during the review period. Any entity tendering a submittal in response to this RFP further acknowledges and understands that the City is a public entity required to abide by public record laws and shall not be liable for disclosures required by law. Section 22 SUBMITTAL REJECTION/RIGHT TO DISQUALIFY Submittal of terms, condition and/or agreements may result in rejection if such terms, conditions, or agreements are deemed unacceptable by the City in its sole discretion. The City reserves the right to disqualify any team who fails to provide information or data specifically requested herein or who provides materially inaccurate or misleading information or data or who attempts to influence the selection process outside the procedures established herein. The City reserves the right to disqualify any team on the basis of any real or apparent conflict of interest. This disqualification is at the sole discretion of the City. Section 23 CITY OF BOZEMAN’S ANTI-DISCRIMINATION POLICY Each entity submitting under this notice shall include a provision wherein the submitting entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and which also recognizes the eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity‘s employees and to all subcontracts. Failure to comply with the above shall be cause for the City to deem the submittal non- responsive. 74 17 | P a g e #### END OF RFP 75 N BLACK AVE E MENDENHALL ST N BOZEMAN AVE 6 inch 10 inch10 inch6 inch 6 inch 6 inch10 inch6 inch 8 inch8 inch6 inch 8 inch6 inch 8 inch 8 inch 6 inch 6 inch 8 inch8 inch8 inch100 0 10050 Feet¯1 inch = 50 feet Legend Parcels Water Mains Sewer MainsRevised: 4/12/11 6576 6677 6778 79 6880 7281 7382 8583 8684 8785 8886 8987 9088 9189 9290 9391 9492 9593 9694 9795 9896 Bozeman Parking Commission Meeting May 11, 2011 7:00 a.m. City Hall Commission Room Parking Commissioners in Attendance: Pam Bryan Chris Naumann Chris Pope Tammy Hauer Ben Bennett Ben Lloyd Lisa Dazl-Scott City Staff in Attendance: Cyndy Andrus, City Commissioner Laurae Clark, Treasurer Paul Burns, Parking Manager Ashlie Portnell, Parking Clerk Guests in Attendance: None Action Items:  The June meeting was officially rescheduled for June 1, 2011  Ben L motioned that there is a higher use for the Carnegie lot, Chris P seconded the motion. A vote was taken and the motioned passed with a 5 to 1 vote. I. Call to order Pam called the meeting to order at 7:30am. 7497 II. Approval of April 13, 2011 minutes Pam asked for a motion to approve the April 13, 2011 minutes. Chris N motioned to approve the minutes, and Chris P seconded. The motioned was carried unanimously. III. Public Comment, for any member of the public wishing to comment on parking issues. State name and address. Please limit comments to 3 minutes. None. IV. Action Item, Discussion and recommendation to the City Commission regarding future use of the Carnegie Lot. Paul presented a staff report regarding the request to sell the Black/Carnegie lot. He stated that the BPC cannot sell any city owned property, only the City Commission would be able to do so. The BPC can only give advice to the City Commission. Paul referred to the parking study update for a lot of his information. He stated that the study currently shows a surplus of parking around the block in which the Carnegie lot and the parking garage is located. Currently the Carnegie lot has 71 spaces. Main, Black, Mendenhall and Bozeman make up the Carnegie block. Within that area there is a total of 183 spaces. These spaces are found in public parking, private parking, alley and both on and off street parking. The parking garage has a total of 435 spaces, combining those spaces with the streets that make up the garage block, and there are a total of 479 spaces. Surplus spaces found at the Carnegie block are 85 spaces. The garage block has 321 surplus spaces. Most of the 321 comes from the garage itself. There are quite a few permit holders, but the garage still has plenty of spaces available everyday for people to park. The parking study concludes that "...the demand calculations indicated the existence of a parking surplus which provides headroom for future downtown growth." Therefore, Paul recommends that due to the findings of the parking study, that the city consider selling this lot if the economic value of doing so is a significant benefit for the downtown community. 7598 After Paul's presentation, Pam asked if any of the Commissioners had any questions or comments. Ben L asked if other studies are being considered for the future. Studies will be considered in the future, but nothing is lined up at this time. Chris P asked if the data from the study was what Paul has observed in his tenure. Paul responded that there is always somewhere to park downtown due to the parking garage; it has created many surplus spaces around the area. Chris N asked what is considered standard industry capacity? Paul stated that 85% is considered the standard. Chris N went on to ask if peak times have been considered. There are many different kinds of businesses downtown. Restaurants and retail shops will have different peak times than that of the banks. Those kinds of things need to be considered, that could affect the availability of parking spaces downtown. Pam asked about the night time usage at the parking garage. Paul stated that the garage is well lit, and that police officers do patrol the area. Lisa asked if the permit holders at the Carnegie lot would be moved into the garage? Paul said that those permits holders could purchase a permit for the garage but they would not be forced to do so. There are less than ten permit holders in that lot, so it will not affect too many customers. Cyndy asked how often the parking garage is patrolled by police officers at night? Paul stated he cannot vouch for how frequently they patrol the garage, simply that they do it as part of their night time patrol. The new police sub-station downtown has been a great addition and there are officers that are assigned to that station on a regular basis which has increased the visibility and availability of an officer for routine patrols. Having the new patrol station downtown has seemed to help lessen the amount of vandalism at the garage. Tammy asked if the new hotel was to be built, would they have onsite parking available for their facility? And would that have to be part of the BPC's recommendation for the City Commission? 7699 Pam stated that the BPC cannot recommend anything until the project is underway. Pam opened the floor for public comment. Ashley Ogle from Kenyon Noble stated that there is no point in allowing the City to sell something you need, just to turn around and buy back that property to create what you just sold. She asked how we determine surplus? Kenyon noble is not operating a business downtown as this time, some of the condos in the garage are not even full and there are vacant businesses downtown. When they are full eventually we would need to account for the parking spaces they need. She asked where the money from the sale of this lot go? Chris N stated we might buy a new parking lot. She asked where are we going to come up with new parking? The BPC might not even be able to find land to purchase for a new lot. She asked if the BPC has thought all this through? When is the data going to be taken? Chris P stated that purchasing another lot is just an assumption. We are using the 2010 data. She asked if the study took into consideration the businesses not operating? Steve Roderick from the Ridge Downtown stated that you just invested money for additional parking for the downtown area. He doesn't like the idea of taking away parking just when we invested money into providing parking in this area. He wants to know who is deciding that if that lot does go away that we will have a better economic stimulace. He took some of his own data. One day he observed that at 12:30 pm the lot was entirely full. Other times just a few spots were being used. He spoke to people who use that lot. 76 % of people who go to the Ridge use that lot to park. He asked that the decision that is made consider all the businesses that use that lot. David Loseff from the Baxter Hotel stated that it was not good to make a business decision based on a snap shot. You need to look at the trend lines. He looked back at previous studies and the 2010 study. Despite the addition of the garage over the last 20 years there was a loss of 19 spaces, and provided documentation for those findings. He believed the numbers are skewed. He says peak demands are higher in June, July and August. He stated he was speaking for other owners in his building as well, and stated that business decisions are sometimes irrevocable. You must consider the outcome if you are wrong. That is what he is asking the BPC, to carefully consider this decision in case they are wrong to take away this lot. 77100 Larry Bowman from Owenhouse Hardware spoke about previously sitting on the Bozeman Parking Commission. He talked about the struggles they had to create spaces and discussed the cash n lieu process. He stated there needs to be development in the downtown to stimulate the economy and attract customers to the downtown area to keep up with the rest of Bozeman. The lot in question is ideal for development, and would be a great opportunity for downtown. This would create more jobs and customers for other businesses in the downtown core. He is in favor of developing this lot. Dave Berghold of 11 E Main, The Last Wind-Up spoke in agreement with Larry. He believes development downtown is very important. To have a hotel downtown is a natural attraction to other businesses, retail, restaurants etc. To not have that resource available to visitors would force them to go elsewhere on the outskirts of town and they may not visit the downtown area. To centralize groups and gathering seems like it would be real bonus for businesses that are downtown. Bozeman does face parking issues, as Chris mentioned. He believes any development should offer parking on their lot. Main street is growing east and west, but little in the north and south areas. This proposed development would assist with growth in the north downtown area. Having the garage next door to the hotel is a perfect match. Ileana Indreland of Delaney and Co. spoke in representation of her tenants as well as her own business. She stated that we need to keep this parking lot. Women are vulnerable, especially at night and the lot is more convenient and feels less threatening than the garage. She likes the way it is now and does not want to see that change for the convenience of customers and employees both. She stated it would be responsible to do studies based on real numbers, actual data. Until we have real data it is premature to replace this lot. Her tenants use this lot. She does support the garage, but this is an important lot as well. Her building lost a lot of money during the development of the garage. She feels the developer should reach out to properties from private parties rather than take away the public parking. And, feels we should get better data before making this decision. Mike Delany from Delany and Co stated he did some research of the past parking commissioners and discussed how and why the commission had been established. The original goal was basically to provide lots for people to park. We now have that. The last time this commission decided to sell a property, it had bad circumstances. The houses that were purchased were rented for a time and then when the commission was ready to demolish the homes to create a lot on the south side, the City Commission refused to allow it. Those homes were then sold them to private citizens who wished to continue to use them as a residence. Approximately $400,000 was made on these home and no parking spots were created. Big Sky Western Bank since developed a nearby business that could have used that parking lot. He stated other areas have also been developed that have taken away approximately 50 additional spaces. 78101 He also mentioned the First Security Bank renovation and how that lot could have also benefited them had it been created. He feels that if it is the BPC's intention to take this parking lot away, they should have an auction, just don't sell it to the first person who asks. Other people should have a chance to purchase the lot and propose a development. And, mentioned the buy local goal by the City Commissioners. Pam asked for further public comment, and there was none. She asked if there were written comments. Paul stated that Michael Ochsner from Plonk wrote in favor of the development. Steve Rodderick asked if Brit had passed on a copy of the letter from the law firm across from the Carnegie lot? It was noted that they had not, as they had been addressed to the City Commission. Ben L made a motion that the Bozeman Parking Commission accepts the recommendation by staff to recommend to the Bozeman City Commission that there is a higher and better economic use than surface parking for the Carnegie Lot. This is due to the amount of available parking in the vicinity of this lot, particularly at the Garage, which has the capacity to currently replace these spaces. This lot is not needed to provide public parking. Chris P seconded the motion. Lisa stated that her concern is that even though this could create new jobs etc. that things seem to be moving so quickly. She thought there should be more public meetings before a recommendation be made. She was reminded that the City Commission laid out this process on the May 2nd commission meeting. Other public meetings have also already occurred. It was also stated that on June 13 there is another public meeting and then there would be two other public meetings after that. Chris P thanked everyone who spoke. He finds this opportunity very interesting and wants to move forward. But, he is carrying around trepidation. He agreed with Mike's point that you can't go back on things. He reminded everyone that a private developer has come forward with an offer to purchase a property that is not for sale. Without this offer, the BPC would not be considering selling the property. There was no solicitation for this offer. He feels the PBC is compelled to look at the offer. The reason is in the interest for a healthy environment downtown. This is an opportunity. We have to study things even without 100% data sets. He also thinks we should entertain any offer. The city should be paid back fair market value or more! 79102 The future use needs to be extremely good for the economic future of the City. It also needs to be from a qualified party. No, the Carnegie lot is not for sale, but future use could benefit the public in such a way that it should be considered. He is hearing the conversationd of nearby businesses that this is not a good idea, but we need to communicate to the City Commission that any sale revenue that is made would go to additional parking in the future. He is also an advicate that a new building plan for parking the way zoning requires and show plans for underground parking. That is an expensive thing to do, but necessary. He suggested someone should ask the developer why this property? There are other opportunities for this development downtown. He asked if we had sell for 95% of appraised value? Whomever the developer is, they will be held to a HIGH STANDARD. It needs to be the best option built as possible. He does agree with possibly an auction or some type of fair public process. He again reminded everyone that this would not be considered unless a development is put to GREAT use. He thinks we should see if there is a developer out there that can bring good use to that lot and stimulate the Bozeman economy. He does want to recontribute to parking and supplying spaces again. Chris N stated that out of deep respect he holds in his position for the Downtown Bozeman Partnership he will recues himself from the vote. Because of the things he has heard today. he cares even more strongly for the people and businesses in the area. His reservations are if this property is determined by the City Commission that it has a better use, that they and the comminity keep in mind the objectives of the Downtown Improvement Plan and only do smart projects. There is other land available out there that a developer could purchase. How would we best have the oppotrunity to see a higher and best use? There is only one option and to not jump on the first thing. We need to get to a point and have time to think hard and get the most assurance that it will be done to the benefit of the downtown community. He feels a RFP would be the best way to do that. Cyndy Andrus commented on the process. She wants everyone to know the die has NOT been cast yet. This process will be fair and transparent. Great care will be taken into consideration with the public. She cares about the public a great deal. Pam stated there is a motion on the table. There are replacement spaces available for this lot. There is a higher use for this lot. By our approving or not approving this will determine how this process will move forward. All we can comment on today is the future of this lot and not the development requirements. We need to separate the two. Chris P asked if was appropriate for the BPC to take into the consideration and comment to the City Commission at a future date if it were to becomse a hotel. He wants to hear a discussion about understanding the maintenance of the parking downtown. 80103 He wants a commitment to continue to solve parking issues. He wants any funds that are received from the sale to go into the parking capital fund. It cannot be used for striping lots or maintenance, but for creating future parking spaces. Lisa stated that her difficulty in making a decision is not knowing if there will be a public bid and hearing what other members if the public think. She wants to know if a hotel is built will it just provide private parking for hotel and restaurant patrons. Can the general public use those spaces? Pam clarified the motion is about whether there is a greater benefit to the downtown area for this lot than surface parking. The vote was taken, Tammy Hauer, Ben Bennett, Ben Lloyd, Pam Bryan and Chris Pope all voted in favor. Lisa Danzl-Scott voted against. Chris Nauman was recused from the vote. The motion was approved by a 5-1vote. Pam announced a 5 minute break. V. Action Item, Consider a new date for June BPC meeting. Pam called the meeting back to order at 8:51am. The June meeting was officially rescheduled for June 1, 2011. VI. Manager’s report The elevator fee was higher than expected. But it is now working. Paul reported more graffiti at the garage. The garage will be swept May 12th. Paul is going to purchase a walk behind sweeper. He priced them out at approximately $3,600.00. Chris N suggested Paul talk to the folks in Billings because they have one too. Maybe he could find one that would be a little cheaper or what they like or don't like about the one they have. There were 600 courtesy tickets issued in the month of April. The City Commission approved the contract with Big Look for advertising at the parking garage. 81104 VII. Finance report Paul presented the finance report to the BPC. He briefly noted that the budget is currently in the black. The numbers are looking good. VIII. New business None. IX. Adjournment Pam adjourned the meeting at 9:00am. Respectfully Submitted Ashlie Portnell, Parking Clerk 82105 Bozeman Parking Commission Policy Guidelines Mission Statement The Bozeman Parking Commission is responsible for managing and regulating public parking in its districts, and will provide a customer-oriented and user-friendly parking system for businesses, residents, employees and visitors. Goals  Improve and maintain public parking assets  Provide for the safe movement of vehicle and pedestrian traffic  Make the parking system fiscally sound and self-sufficient  Manage spaces to best serve the needs of customers  Provide consistent treatment regarding parking enforcement action  Educate parking users to minimize parking conflicts  Make parking areas attractive and easy to use  Plan for and respond to changing needs in the districts  Consider alternative modes of transportation that reduce parking demand  Work cooperatively with local partners  Seek to acquire additional public parking as needed Policy Guidelines Community Transparency The Bozeman Parking Commission will conduct the business of managing parking in a publically transparent way.  Monthly BPC meetings are open to the public and properly noticed pursuant to Montana Code Annotated.  All BPC meeting minutes are publically archived at: http://weblink.bozeman.net/WebLink8/0/fol/37627/Row1.aspx Fiscal Responsibility The Bozeman Parking Commission will operate in a fiscally responsible manner while effectively managing resources and implementing parking regulations.  The BPC will consciously control operating costs without sacrificing other guidelines and policies.  The BPC will consciously manage revenues without sacrificing other guidelines and policies. 83106  It is the intent of the BPC to invest any Parking Enterprise Fund profits into three fiscal reserves: Parking Capital Reserve, Parking Operating Reserve, and Bridger Park Downtown Long-term Maintenance Reserve. Resource Management The Bozeman Parking Commission will professionally manage the public parking resources entrusted to it by the City of Bozeman.  The BPC will develop and manage a customer oriented and user friendly parking system.  The BPC will manage public on-street, surface lot, and structure parking resources for the benefit of residents, visitors, employees, and businesses.  The BPC will conduct and revise a Downtown Parking Study on a regular basis in order to utilize current empirical data in its decision making process. Effective Enforcement The Bozeman Parking Commission will strive to ensure there is sufficient short-term parking available by employing effective enforcement in the three districts it oversees.  The existence of Bridger Park Downtown for long-term parking needs makes compliance with parking regulations easier.  The BPC will deter illegal parking with a timely, consistent, and fair enforcement presence.  The BPC will continually work to develop customer friendly enforcement practices and policies. Economic Development The Bozeman Parking Commission supports projects that bring vitality and energy to its parking districts.  The BPC recognizes that economic development and parking are inextricably linked, especially in the downtown district.  The BPC will consider supporting projects that constitute a significant economic benefit for the downtown area while being consistent with the guidelines of the Bozeman Community Plan; the Downtown Improvement Plan; and the mission, goals, and policy guidelines established herein. Regulatory Oversight The Bozeman Parking Commission will dutifully exercise regulatory oversight of parking inventories, parking regulations, commercial parking requirements, and special parking districts.  The BPC will develop regulations for the public surface parking lots and Bridger Park Downtown in keeping with national and state industry standards.  The BPC will advise the City Commission on parking regulations as they relate to on- street parking rules and violations; parking requirements for changes-in-use, development, and redevelopment; and the Montana State University and Bozeman High School residential parking districts.  The BPC will continue to manage the Cash-in-Lieu-of-Parking policy for the downtown district to reflect current parking demand and market rates. Adopted February 9, 2011 84107 r rf MINUTES OF THE MEETING OF THE CITY COMMISSION June 13 2411 The Commission of the City of Bozeman met in the Commission Room City Hall at 121 North Rouse on Monday June 13 2011 Present were Mayor Jeff Krauss Commissioner Cyndy Andrus Commissioner Sean Becker Commissioner Chris Mehl Commissioner Carson Taylor City Manager Chris Kukulski Assistant City Manager Chuck Winn City Attorney Greg Sullivan and City Clerk Stacy Ulmen Please refer to the audio recording of this meeting for additional detail 00837 A Call to Order 6 pm Commission Room City Hall 121 North Rouse Mayor Krauss called the meeting to order at 603 pm 00839 B Pledge of Allegiance and a Moment of Silence 009 28 Welcome Mayor Krauss welcomed everybody to the meeting 009 31 C Changes to the Agenda Mayor Krauss asked City Manager Chris Kukulski if there were any changes to the agenda Mr Kukulski stated no 0 0939 D Public Service Announcement Update on Potential City Flooding Shrauger Fire Chief Jason Shrauger gave a PSA on the potential City flooding 01433 E Consent 1 Authorize Payment of Accounts Payable Claims LaMeres 2 Authorize City Manager to sign South Meadow Minor Subdivision Water and Sewer Easement and Release and Reconveyance of Easements Murray 3 Authorize City Manager to sign 2011 Street Improvements Contract Award to Knife River Inc Kerr Page 1 of 11 108 Minutes qythe Bozeman City Commission June z3 2011 4 Approve Resolution No 4317 authorizing City Manager to sign Change Order No 1 for the College and 11th Roundabout Heeston 6 Approve Resolution No 4319 Commitment of Special Revenue Fund Balances in Accordance with the Governmental Accounting Standards Board GASB Statement 54 LaMees 6 Approve Fukui Prefectural Dinosaur Museum Day of Celebration Mayoral Proclamation Kissel 7 Approve Reclaiming jurisdiction for the final approval o the Santa Fe Reds Projecting Sign Certificate of Appropriateness application per 1864010 of the Bozeman Municipal Code and further set a tentative public hearing date of July 18 2011 for formal consideration of the application BdstoH O Approve Reclaiming jurisdiction for the South Towne Square Outdoor Seating and on Premise Consumption of Alcohol Conditional Use Permit application located at 2000 South 3rd Avenue and further set a tentative public hearing date of July 112O1lfor formal consideration nf the application Krueger Al40 Public Comment Mayor Krauss opened public comment onthe Consent Agenda No person spoke Mayor Krauss closed public comment on the Consent Agenda 0 1516 Motion and Vote to approve Consent Items 15 and 78 It was moved by Cr Andrus seconded by Cr Taylor to approve Consent Items 15 and Those votinp Aye being Crs Andrus Taylor Becker Mehl and Mayor Krauss Those voting No being none The motion passed 50 053 5 Mayor Krauss Mayor Krauss disclosed that he had o conflict uf interest with Consent Item No 6 Approve FuAkn Dinosaur Museum Day wfCelebration Mayoral Proclamation He then handed the gavel to Deputy Mayor Becker 01538 and Vote hm approve Consent Item E6 It was moved by Cr Taylor seconded by Cr Mehl to approve Consent Item 6 Those votiny Aye being Crs Taylor Mehl Andrus and Depuly Major Becker Those recused Mayor Krauss Page 2 of 11 109 Minutes of the Bozeman City Commission June 13 2011 Those voting No being none The motion passed 40 01641 F Public Comment Mayor Kra took back the gavel and opened general public comment 01705 Russ Godium Public Comnient Mr Godium stated that he is with a Wind Power Company from Billings He spoke regarding LED Lighting He spoke regarding LED Events coming up and LED lighting savings According to him Montana is being overcharged by the Public Service Commission Only cities and counties can go before the Public Service Commission He is urging Cities to go to Public Service Commission 02048 Public Comment closed Mayor Krauss closed public comment 02052 G Action Items 02052 1 Public Hearing to determine whether real property owned by the City of Bozeman located at 106 East Mendenhall Street known as the Carnegie parking lot is necessary for the conduct of City business or the preservation of its property and direction to staff Fontenot 02118 Brit Fontentot Economic Development Director Mr Fontenot gave the staff presentation regarding the Public Hearing to detennine whether real property owned by the City of Bozeman located at 106 East Mendenhall Street known as the Carnegie parking lot is necessary for the conduct of City business or the preservation of its property and direction to staff 030 51 Public Comment Mayor Krauss opened public comment No person commented Mayor Krauss closed public comment 03117 Naumann Public Comment Mr Naumann stated that he is the Executive Director for the Downtown Bozeman Partnership He spoke regarding the downtown improvement plan 03445 Ashley Oak Public Comment Ms Ogle stated that she is with Kenyon Noble and that she is opposed to the sale of the Parking Lot We are for a hotel downtown The parking lot should not be sold in order to get a hotel downtown She spoke regarding the downtown study and competitive building Page 3 of 11 110 Minutes of the Bozeman City Commission June 13 2011 03732 Pam Bryan Public Comment Ms Bryan stated that she is the Chair Woman of the Bozeman Parking Commission She stated that they believe that there is a better use for this lot Location of this lot is across from the Parking Garage Location played a part in their deliberations She spoke regarding the Study 04119 RaFma Stewert Public Comment Ms Stewert stated that she is with the Ridge Athletic Club and urged that the Commission slow down the process She spoke regarding members that have discontinued memberships due to parking in their downtown location 04453 LarrL7 Bowman Public Comment Mr Bowman is the owner of Owenhouse Hardware He stated that he is in favor of developing the lot He is a prior Parking Commission Member Downtown needs development We want our downtown to be the center of Bozeman We need downtown to be competitive 04743 Bill Br an Public Comment Mr Bryan of 1220 South Tracy stated that he is in support of the motion as long as there is competitive bidding involved He disclosed that he is related to the Parking Commission Chair person He would love to see a boutique hotel in Bozeman 05159 flena Inderland Public Comment Ms Inderland stated that she owns the building at 101 East Main and is representing the tenants People do not like parking in a parking garage There are several businesses that need this lot 05445 Mike Hqpe Public Comment Mr Hope stated that he is with the F H Building on Main Street His building will probably encompass at least 140 employees He spoke regarding a possible second Parking Garage Financing is tough in hotel industry right now Spoke regarding obtaining a Letter of Intent 05902 Chris Pope Public Comment Mr Pope of 1508 South Willson Avenue stated that there are complex issues around parking The Parking Commission is committed to build the data base Need to focus on properties going forward The value of this is the future development We need excellence and quality Look very hard at this offer 10337 Mike Delana fuhlic Comment Mr Delaney spoke about importance of having a downtown hotel With decisions there are positive and negative with this He owns a number of properties downtown He spoke regarding above ground property He does not support selling the lot 10812 Jill Bowers Public Comment Ms Bowers stated that she lives downtown and parks in the parking garage She spoke regarding the benefit of having the parking garage She spoke regarding encouraging living downtown Current facility is being under used 10959 Public Comment Closed Mayor Krauss closed public comment Page 4 of 11 111 Minutes ofthe Bozeman City Commission June 13 2011 1 1011 Commission Questions for Staff The Commission and Staff spoke regarding the downtown study being a snapshot of time the surplus numbers in the study activity in the current parking garage customer base in the garage complaints location of a new parking garage and other possible locations to acquire for a new parking garage 13312 Motion that having conducted a public hearing considered written and spoken public testimony the recommendation of the Parking Commission and based on the findings contained in the staff memorandum findings provided by the Parking Commission and findings articulated by the Commission during discussion I hereby move 1 That the real property known as the Carnegie parking lot lots 17A 18 19 20 21 and 22 of Block E of the Original Townsite of Bozeman Montana located at 106 East Mendenhall is no longer necessary for the conduct of city of Bozeman business or the preservation of city of Bozeman property and that sale and development of the real property by a private entity in compliance with adopted city plans is in the public interest 2 That any motion made by the Commission on May 2 2011 regarding this property or the proposed sale of is superseded in its entirety by this motion and 3 That the staff is hereby directed to proceed with a request for proposals process that could authorize the sale of the Carnegie parking lot to the entity whose proposal satisfies all legal requirements for the sale of city real property and whose development proposal the Commission determines best fulfills the objectives of the citys 2010 Community Plan its Economic Development Plan and the Downtown Improvement Plan It was moved by Cr Becker seconded by Cr Mehl that having conducted a public hearing considered written and spoken public testimony the recommendation of the Parkin Commission and based on the findings contained in the staff memorandum findings provided by the Parking Commission and findings articulated by the Commission durin2 discussion I hereby move 1 That the real property known as the Carnegie parking lot lots 17A 18 19 20 21 and 22 of Block E of the Original Townsite of Bozeman Montana located at 106 East Mendenhall is no longer necessary for the conduct of city of Bozeman business or the preservation of city of Bozeman property and that sale and development of the real property by a private entitV in compliance with adopted city plans is in the public interest 2 That any motion madeby the Commission on May 2 2011 regarding this property or the proposed sale of is sugerseded in its entirety by this motion and 3 That the staff is hereby directed to proceed with a reguest for proposals process that could authorize the sale of the Carnegie parking lot to the entily whose proposal satisfies all legal requirements for the sale of city real ro per and whose developmeatproposal th Page 5 of 11 112 Minutes ofthe Bozeman City Commission dune 13 2011 Commission determines hest fulfills the objectives of the citys 2010 Communitv Plan its Economic Development Plan and the Downtown Improvement Plan 13451 Commission Discussion on the Motion Discussion took place regarding investing in downtown attracting uses downtown acknowledgement of the comments received encouraging request for proposals fz 2 hour parking encouragement the downtown plans lack of current hotel needs downtown this being a community issue keeping downtown a focal point the need to get people used to the idea of using the parking garage the need for keeping the parking lot recognizing where we currently are other opportunities the construction of the parking garage and taking pride in downtown 20850 Vote on the Motion that having conducted a Public hearing considered written and spoken public testimony the recommendation of the Parking Commission and based on the findings contained in the staff memorandum findings provided by the Parking Commission and findings articulated by the Commission during discussion I hereby move 1 That the real property known as the Carnegie parkinlz lot lots 17A 18 19 20 21 and 22 of Block E of the Original Townsite of Bozeman Montana located at 106 East Mendenhall is no longer necessary for the conduct of citV Bozeman business or the preservation of city of Bozeman property and that sale and development of the real property b a private entity in compliance with adopted ci lans is in the public interest 2 That any motion made b the Commission on May 2 2011 regarding this proper or the proposed sale of is superseded in its entirety by this motion and 3 That the staff is hereby directed to proceed with a reguest for proposals process that could authorize the sale of the Carnegie parking lot to the entity whose proposal satisfies all legal requirements for the sale of city real property and whose development proposal the Commission determines best fulfills the objectives of the citys 2010 Community Plan its Economic Development Plan and the Downtown Improvement Plan Those voting Aye being Crs Becker Mehl Andrus Taylor and Mayor Krauss Those voting No being none The motion passed 50 20948 Break Mayor Krauss declared a break 22127 Called back to order Mayor Krauss called the meeting back to order 22149 Mr Fontenot Mr Fontenot continued the staff presentation 22624 Commission Questions for Staff Discussion took place regarding the Request for Proposals and the timeline and scope ofthe project and the committee makeup Page 6 of 11 113 Minutes of the Bozeman City Commission June 13 2012 23336 Public Comment Mayor Krauss opened public comment No person commented Mayor Krauss closed public comment 2 3410 Motion to direct staff to draft a Request for Proposal for review by the City Commission no later than Monday September 12 2011 It was moved by Cr Mehl seconded by Cr Andrus to direct staff to draft a Request fo Proposal for review by the City Commission no later than MondaL Seplember 12 2011 23432 Discussion on the Motion Cr Mehl stated that he would like to see the motion amended to include that the RFP is for a hotel as a central component Cr Andrus agreed with the addition 24507 Motion restated and voted upon with friendly amendment to direct staff to draft a Request for Proposal for a hotel as a central component for review by the City Commission no later than Monday September 12 2011 It was moved by Cr Mehl seconded by Cr Andrus to direct staff to draft a Reguest fo Proposal for a hotel as a central component for review by the City Commission no later than Monday September 12 2011 Those voting Ale being Crs Mehl Andrus Taylor KraussBeckerandMayorKrauss Those voting No being none The motion passe 50 24544 Motion to direct staff to obtain a certified real estate appraisal for the Carnegie parking lot to be paid out of the city of Bozemans parking enterprise fund It was moved by Cr Mehl seconded by Cr Andrus to direct staff to obtain a certified real estate appraisal for the Carnegieparking lot to be paid out of the city of Bozemans parking enterprise fund 24609 Commission Discussion on the Motion The Commission discussed the timing of the appraisal in conjunction with the RFP 25204 Motion restated to direct staff to obtain a certified real estate appraisal for the Carnegie parking lot to be paid out of the city of Bozemans parking enterprise fund performed and delivered on or before late September It was moved by Cr Mehl seconded by Cr Andrus to direct staff to obtain a certified real estate appral for the Carnegie parking lot to be paid out of the city of Bozemans parking enterprise fund performed and delh an or be ore late Se teniher 2 Commission Discussion on the Motion Page 7 of 11 114 Minutes ofthe Bozeman City Commission June 13 2011 25322 Vote on the Motion to direct staff to obtain a certified real estate appraisal for the Carnegie parking lot to be paid out of the city of Bozemans parking enterprise fund performed and delivered on or before late September Those voting Ave being Crs Mehl Andrus Taylor and Becker Those voting No being Mayor Krauss The motion passed 41 25341 Motion that should the Commission approve a submitted sale and development proposal and eventually agree to sell the Carnegie parking lot all proceeds from the sale of the property be deposited with the city of Bozemans parking enterprise fund for the purposes of enhancing parking opportunities in downtown Bozeman It was moved by Cr Mehl seconded by Cr Andrus that should the Commission approve a submitted sale and development proposal and eventually agreetosell the Carnegie parking lot all proceeds from the sale of the property be deposited with the city of Bozemans parking enterprise fund for the purposes of administering taken out enhancing parking opportunities in downtown Bozeman 2 5410 Discussion on the Motion 25432 Vote on the Motion that should the Commission approve a submitted sale and development proposal and eventually agree to sell the Carnegie parking lot all proceeds from the sale of the property be deposited with the city of Bozemans parking enterprise fund for the purposes of enhancing parking opportunities in downtown Bozeman Those votinp Aye being Crs Mehl Andrus Taylor Becker and Mayor Krauss Those voting No being none The motion passed 50 25459 Commission Discussion Commission discussion took place regarding the role of the committee The Commission agreed that the City Manager will appoint the committee The Commission also spoke regarding drafting the RFP 31217 2 Resolution No 4318 Adopting the City Managers Recommended Budget for Fiscal Year 2012 as the preliminary budget for Fiscal Year 2012 and adopting the changes in financial policies contained therein Rosenberry 31224 Anna RosenbeiTy Finance Director Ms Rosenberry gave the staff presentation regarding Resolution No 4318 Adopting the City Managers Recommended Budget for Fiscal Year 2012 as the preliminary budget for Fiscal Year 2012 and adopting the changes in financial policies contained therein Page 8 of 11 115 Minutes of the Bozeman City Commission June 13 2011 31822 Commission Questions for Staff The Commission spoke regarding committed funds assigned and unassigned funds Discussion took place regarding construction timelines Discussion took place regarding the levies and special assessments and special districts 345 22 Public Comment Mayor Krauss opened public comment 34545 Thia Ovnic Public Comment Ms Ovnic of 310 South 8th stated that she is representing her neighbors and that there are concerns regarding assessments and South Sth Mayor Krauss and Staff answered the questions that were presented by Ms Ovnic 35032 Public Comment closed Mayor Krauss closed public comment 40013 Rules suspended Mayor Krauss suspended the rules 10 minutes 41315 Motion to approve Resolution No 4318 Adopting the City Managers Recommended Budget for Fiscal Year 2012 as the preliminary budget for Fiscal Year 2012 and adopting the changes in financial policies contained therein It was moved by Cr Andrus seconded by Cr Taylor to approve Resolution No 4318 Adopting the City Managers Recommended Budget for Fiscal Year 2012 as the preliminary budget for Fiscal Year 2012 and adoptinlz the changes in financial olicies contained therein 41405 Commission Discussion on the Motion The Commission discussed FTEs and the costs related to Bogert Pool They also discussed the police and fire levy and the funding of the Police Department and emphasized that this is a preliminary budget 42026 Vote on the Motion to approve Resolution No 4318 Adopting the City Managers Recommended Budget for Fiscal Year 2412 as the preliminary budget for Fiscal Year 2412 and adopting the changes in financial policies contained therein Those voting Ale being Crs Andrus Taylor and Mehl Those voting No being Cr Becker and Mayor Krauss The motion passed 32 42044 3 Appointment to the Cemetery Advisory Board Kissel 42112 Motion to appoint Karlina Popwell to the Cemetery Advisory Board It was moved by Cr Taylor seconded by Cr to appoint Karlina Popwell to the Cemetery Advisory Board 42136 Discussion on the Motion Page 9 of 11 116 Minutes of the Bozeman City Commission June 13 2011 42225 Vote on the Motion to appoint Karlina Popwell to the Cemetery Advisory Board Those voting Ave being Crs Taylor Becker Mehl Andrus and Mayor Krauss Those voting No being none The motion passed 50 422394 Appointment to the Impact Fee Advisory Board Kissel 42305 Motion and Vote to appoint Rob Evans to the Impact Fee Advisory Committee It was moved by Cr Mehl seconded by Cr Andrus to appoint Rob Evans to the Impac Fee Advisory Committee Those voting Aye being Crs Mehl Andrus Taylor Becker and MayorKrauss Those voting No being none The motion passed 50 42316 5 Appointment to the Senior Citizens Advisory Board Kissel 42320 Motion and Vote to appoint Susan Smith to the Senior Citizens Advisory Board It was moved by Cr Becker seconded by Cr Mehl to appoint Susan Smith to the Senior Citizens Advisory Board Those voting Aye being Crs Becker Mehl Taylor Andrus and Mayor Krauss Those voting No being none The motion passed 50 42338 6 Appointment to the Zoning Commission Kissel 42341 Motion and Vote to appoint Erik Garberg to the Zoning Commission It was moved by Cr Mehl seconded by Cr Andrus to appoint Erik Garberg to the Zoning CommiWan Those voting Aye being Crs Alehl Andrus Taylor Becker and Mayor Krauss Those voting No being none The motion passed 50 42404 H FYIDiseussion 42408 1 Procurement Policy and Insurance Requirements Cr Mehl would like a copy of this 42602 2 Meeting next week begins at 530 p1n with an Executive Session Clerk is to get food Page 10 of 11 117 Minutes of the Bozeman City Commission June 13 2011 42648 3 Reclaiming Review Authority Cr Taylor stated that this should be discussed He wants to review this procedure For Mayor Krauss it is about do we need a Board of Adjustment This should be included in a PolicySession 43041 4 Cleveland Street Mr Kukulski wondered if 6th and Cleveland should be opened up as an access due to construction We could test how it would operate The Commission would need to take a look at testing it out It was in a prior motion to close it so it would take Commission discussion to re open it 43356 1 Adjournment Mayor Krauss adjourned the meeting at 1034 pm Z8 AI0 TIV9 Stay III Perk CO0 PREPARED BY kStinCMCCltyicr Approved on i1fIt Jee a s Ma or Page 11 of 11 118 119