HomeMy WebLinkAboutTermination of the Carnegie RFP process1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
Chris Kukulski, City Manager
SUBJECT: Termination of the Carnegie RFP process.
MEETING DATE: September 17, 2012
AGENDA ITEM TYPE: Consent Item (by voting in the affirmative for this item on the
Commission Consent agenda, the City Commission will
officially terminate Carnegie RFQ process as provided for in
the June 18, 2012 Commission motion and vote and allowed for
in Section 10, Number 4 of the Carnegie RFQ)
RECOMMENDATION: Consider Commission action on June 18, 2012 and after review of
the staff memo and attachments, terminate the Carnegie RFP process.
BACKGROUND: At the June 18, 2012 public hearing regarding the suspension of the
Carnegie RFQ, the Bozeman City Commission determined in a vote of 4 – 1 that:
[T]he Carnegie parcels RFQ process [will] be suspended for 180 days with the
understanding that the process will remain suspended or be eliminated (emphasis
added) as long as there is continued progress on the armory project. Progress
includes but is not limited to action towards purchase of a liquor license, purchase
of the armory property and or design work on the proposed hotel. (Attachments 1
& 2)
Staff suggests that the progress thresholds identified in the above motion have been met,
evidenced by Attachments 3 – 5. Action has been taken and progress made on both the
purchase of a liquor license and hotel design work. Additionally, Etxea Hospitality LLC,
obtained ownership of the Armory property from First Interstate Bank on August 28, 2012.
For the complete Carnegie parcels timeline see Attachment 6.
Additionally, concerning the termination of the Carnegie RFQ process, Section 10 of the
Carnegie RFQ states:
Section 10
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RESERVATION OF RIGHTS BY CITY OF BOZEMAN
The issuance of this RFQ and the acceptance of a submittal do 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 RFQ or future RFP are completely the
responsibility of the respondents. Any or all disputes arising under this RFQ and any contract
negotiated as a result of this RFQ 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 RFQ, the City reserves the right to:
1. Waive any immaterial defect or informality in a submittal;
2. Extend or otherwise revise the submittal date;
3. Reject any or all submissions or portions thereof;
4. Cancel this RFQ at any time;
5. Reissue a new or revised RFQ; and
6. Request additional information or one or more teams to submit a more detailed submittal.
In summary, the Armory group has met the criteria established by the City Commission on June
18th
For the forgoing reasons, staff suggests the Commission consider their action on June 18, 2012
and after review of the staff memo and attachments, terminate the Carnegie RFP process.
and therefore the staff recommendation is to terminate the Carnegie RFQ process.
UNRESOLVED ISSUES: None at this time. All qualified respondents to the Carnegie RFQ
will be notified of the Commission decision in writing.
ALTERNATIVES:
Alternatives remain at the direction of the Commission.
FISCAL EFFECTS: None identified at this time.
Attachments:
1. June 18, 2012 Commission memo;
2. June 18, 2012 Commission meeting minutes;
3. E-mail Correspondence from Etxea Hospitality (formerly Armory Group) principle Cory
Lawrence;
4. E-mail Correspondence from Matt Johnson of First Security Bank, former Armory
property owner;
5. Design work on the Armory property; and
6. Updated Carnegie parcels timeline.
Report compiled on: September 6, 2012
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Commission Memorandum
REPORT TO Honorable Mayor and City Commission
FROM Carnegie Parcels RFQ Preliminary Review Panel the Panel
Brit Fontenot Director of Economic Development
Chris Kukulski City Manager
SUBJECT Update on the Carnegie Parcels Hotel Development Request for
Qualifications RFQ Process Direction to Carnegie Parcels RFQ
Preliminary Review Panel Regarding the Scheduling of Respondent
Interviews and Preparation of a Final Recommendation
MEETING DATE June 18 2012
AGENDA ITEM TYPE Action Item
RECOMMENDATION Receive presentation ask questions of Staff and the Panel receive
public comment and provide direction to the Panel on the continuation of the RFQ process
including whether to conduct respondent interviews and forward of a final recommendation to
the Commission that one firm be considered for an exclusive negotiation agreement for the
Carnegie parcels
POTENTIAL ALTERNATIVE MOTIONS FOR CONSIDERATION Please select one of the
following
If the Commission desires to continue with the RFQ process for development of the Carnegie
parcels
I move that the Carnegie parcels RFQ Preliminary Review Panel continue with the process of
conducting interviews of the two qualified respondents and extend the deadline for the Panel s
recommendation for an additional 30 days or another date certain An additional 30 days
forwards the hearing date to August 13 2012
OR
If the Commission desires to suspend or terminate the RFQ process for development of the
Carnegie parcels
I move that the Carnegie parcels RFQ process be suspended for a period of 90 days or another
date certain An additional 90 days forwards the hearing date to October 8 2012
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OR
I move that the Carnegie parcels RFQ process be terminated
In the ALTERNATIVES section of this memorandum p 4 several additional alternatives
not mentioned in the above potential motions are provided
BACKGROUND
A detailed process timeline from April 2011 February 2012 is included as
ATTACHMENT 1
On March 13 2012 the RFQ seeking firms interested in developing a full service hotel with
meeting facilities on the Carnegie parcels owned by the City was released to the public The
deadline for responses was established for 5 pm on April 13 2012
By 5 00 pm on April 13 2012 the City received three 3 Statements of Qualifications SOQ in
response to the Carnegie RFQ
By April 13 2012 the Carnegie Parcels Preliminary Review Panel was selected and seated The
Panel consisting of one City Commissioner Cyndy Andrus along with City staff representing
the Parking Division Paul Burns and the Finance Anna Rosenberry and Planning Tim
McHarg departments joined representatives of the following downtown organizations the
downtown Business Improvement District Mike Basile the downtown Tax Increment
Finance District Bobby Bear and the Parking Commission Ben Bennett
The expectations of the Panel are described in the Evaluation Process Section 7 of the RFQ see
ATTACHMENT 2 The section is reproduced in its entirety below
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 the Panel to evaluate all
submittals received in response to this RFQ Within 30 days of the submittal
deadline the panel will assess respondent qualifications based on the evaluation
criteria described in Section 6 above 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 RFQ 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
Within 60 days of the submittal deadline interviews may be scheduled for firms
or teams which have been found to be the most responsive to the RFQ
Following review one or more firms may be selected to submit a more detailed
proposal including concept design drawings financial projections and the
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financial terms for the purchase or lease of the Carnegie parcels Within 90 days
of the submittal deadline the panel may then recommend to the City
Commission that one firm be considered for an exclusive negotiation agreement
for the Carnegie parcels
The Panel met on
April 16 2012 to acknowledge SOQ responses and be briefed on the process and expectations
April 20 2012 to discuss the responses and the initial scoring of the SOQs
April 30 2012 to finalize scoring and discuss the interview process and content and
May 23 2012 to discuss the RFQ process and request clarity and direction from City
Commission and directed Staff to perform the following tasks
1 Inform one of the three respondents that their SOQ did not meet the minimum scoring
requirements and therefore would not proceed to the interview stage The respondent
which did not meet the minimum requirements was notified
2 Verify the interest of the remaining two respondents in continuing with the RFQ process
The remaining qualified respondents were contacted and expressed interest in continuing
the process to completion
3 Request Commission clarity and direction via public hearing regarding the continuation
of the RFQ process including
a Schedule qualified respondent interviews and
b After interviews prepare a recommendation to the City Commission that one firm
if qualified be considered for an exclusive negotiation agreement for the Carnegie
parcels
Through the RFQ language the Panel was directed by the Commission to return a
recommendation within 90 days of the RFQ deadline of April 13 2012 The recommendation
deadline is July 13 2012 and a public hearing scheduled for July 9 2012
Carnegie parcels RFQ timeline
1 SOQ deadline April 13 2012
2 SOQ deadline 30 Days May 13 2012 Assess respondent qualifications
3 SOQ deadline 60 Days June 13 2012 Schedule and conduct qualified respondent
interviews and request additional or more detailed information if necessary
4 SOQ deadline 90 Days July 13 2012 Commission recommendation scheduled for
Monday July 9 2012
If the Commission extends the Panel s deadline for recommendation for an additional 30 days
the new deadline will be August 13 2012
Additionally the RFQ contains a Reservation of Rights section that provides the City the
authority to suspend or terminate the RFQ process or to extend timelines when deemed
necessary see Section 10 of the RFQ ATTACHMENT 2
The Panel requests direction from the Commission on the following
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1 Should the Committee continue with the RFQ process as originally directed If so the
next steps of the process include
a Schedule and conduct qualified respondent interviews as soon as possible
b Request additional or more detailed respondent information if necessary and
c Prepare a recommendation to the City Commission The Panel requests an
additional 30 days beyond the July 13 2012 deadline to conduct interviews and
forward a recommendation to the Commission This action would forward the public
hearing date to August 13 2012
UNRESOLVED ISSUES Other than the request for direction identified herein there are no
other identified unresolved issues related to the Carnegie parcels RFQ process
ALTERNATIVES
1 Continue with the defined RFQ process
2 Extend the 90 day deadline for final recommendation
3 Cancel the Carnegie parcels RFQ
4 Suspend the work of the Panel for a fixed amount of time
5 Suspend the work of the Panel for an indefinite amount of time or
6 Other alternatives as directed by the Commission
FISCAL EFFECTS Commission direction to proceed with the defined RFQ process or a finite
or indefinite suspension of the RFQ process has no identifiable fiscal ramifications at this time
Attachments
1 Carnegie parcels timeline and
2 The Carnegie parcels RFQ
Report compiled on June 7 2012
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ATTACHMENT 1
1
CARNEGIE PARCELS TIMELINE
On April 15 2011 the City of Bozeman received a Letter of Intent LOI from CATELLUS
GROUP LLC CATELLUS for the purchase of the Carnegie parcels located at 106 East
Mendenhall Street in downtown Bozeman for the purpose of exploring the feasibility of
constructing a hotel with ancillary services
On May 2 2011 the Commission voted 5 0 to acknowledge the receipt of the CATELLUS LOI
and authorized the City Manager to sign the LOI and order an appraisal only if a future
determination is made by the City that the Carnegie parking lot is no longer necessary for the
conduct of city business
On May 9 2011 City staff conducted a public forum and information and listening session in
the Commission meeting room with downtown businesses and property owners surrounding the
Carnegie parcels Approximately 25 30 business and property owners staff and elected
officials participated in the discussion
On May 11 2011 the Bozeman Parking Commission met in 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 the Carnegie parcel is
not needed to provide public parking
On June 13 2011 the Commission conducted a public hearing to determine whether real
property owned by the City located at 106 East Mendenhall Street known as the Carnegie
parcels is necessary for the conduct of City business or the preservation of its property and
provided direction to staff By a 5 0 vote the Commission determined that
1 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 business or the
preservation of City 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 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 Staff is 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
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ATTACHMENT 1
2
With Commission direction utilizing internal and external resources parking legal planning
and economic development staff prepared the draft RFP for Commission 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
On August 25 2011 a Commitment for Title Insurance was issued by Security Title Company
Bozeman Montana
On September 14 2011 a real estate appraisal was issued by Appraisal Services of Bozeman
Inc Bozeman Montana which appraised the property at 1 5 million dollars The appraisal is
valid for one year from the date of issuance The current appraisal expires on September 15
2012
On September 26 2011 the Commission provided comment and direction on the content of the
draft Carnegie parcels RFP for the construction of a full service hotel with meeting facilities in
downtown Bozeman Montana on the Carnegie parcels The Commission directed staff to leave
the date of publication open for Commission discussion and decision at the October 24 2011
public hearing Staff incorporated the Commission changes into the Draft 2 of the RFP as
directed with a public release date to be determined by the Commission
On October 24 2011 in a unanimous 5 0 decision the Commission directed staff to postpone
the release of the Carnegie RFP until January 2012 The Commission set a hearing date of
January 23 2012 for staff to return to the Commission to discuss the final release of the
approved Carnegie parcels RFP
On December 7 2011 CATELLUS requested that they be removed from consideration for the
purchase of the Carnegie parcels and future development of a downtown hotel project
During the week of January 2 2012 City staff conducted discussions with hotel industry
development professionals who independently expressed concerns with the release of the RFP as
drafted citing primarily the expense of the initial investment necessary to create an acceptable
and appropriate response to the RFP The up front cost appeared disproportionately high when
viewed against the odds of being chosen as the preferred project proposal
These professionals suggested the net result of pursuing the current strategy of the RFP release
as drafted and associated up front investment to the Respondent may be a total lack of
responses at the conclusion of the 90 day response period A lack of responses to the Carnegie
parcels RFP may cause credibility issues with the process that may reflect poorly on City Based
on this information we proposed re working the process to reduce up front costs for
Respondents without undermining the spirit of the original RFP One option included adding an
RFQ stage and a process to provide more personalized attention to those who may respond in
order to communicate community desires assess Respondent capabilities and research past
projects while simultaneously setting expectations from the City and attempting to understand
the Respondents expectations
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ATTACHMENT 1
3
If an alternative approach is approved work put into the existing RFP is neither lost or nor
undermined by altering the process The RFP as drafted and approved will constitute the
majority of the information requested from respondents albeit in a later phase of the process
Identified in both the Downtown Bozeman Improvement Plan and the Commission s 2011
2012 adopted work plan the development of a downtown hotel is one of the highest community
priorities Ensuring that the process facilitates an outcome with the highest probability of success
is the rationale for suggesting alternatives to the originally proposed RFP process Given the
complexities public property sale transactions and the planning process for the construction of a
downtown hotel staff does not believe that the requested delay will have an overall negative
impact on a downtown hotel project
On January 11 2012 at the regularly scheduled monthly Parking Commission meeting staff
discussed the available information and excerpts from discussions with private sector industry
professionals City staff received a consensus from Parking Commissioners present that the
recommended delay and process reconsideration is a reasonable accommodation under the
circumstances if the modifications increase the odds of success in the desire to construct a
downtown hotel
On January 12 2012 results of a Phase I Environmental Assessment was issued by Phoenix
Engineering Bozeman Montana
On January 23 2012 the City Commission voted 4 1 with Deputy Mayor Krauss opposed to
delay publishing the Request for Proposal RFP and direct staff to develop an Request for
Qualifications RFQ within approximately thirty days and release it to the public upon
completion
On February 21 2012 the City Commission received a letter from several downtown business
and property owners expressing their opposition to the sale of the Carnegie parking lot
because it is of the utmost importance to the long term financial survival of their businesses and
properties downtown
On March 13 2012 the Carnegie RFQ was released to the public The deadline for responses
was established for 5 pm on April 13 2012
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City of Bozeman
Request for Qualifications RFQ for the Construction of a
Full Service Hotel with Meeting Facilities In
Downtown Bozeman Montana
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
Section 1
DEVELOPMENT OPPORTUNITY
Thank you for your interest in the development of a full service hotel with meeting facilities in
the heart of downtown Bozeman Montana gateway to Yellowstone National Park 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 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 2
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 residents with backgrounds and cultures as
diverse as the Montana landscape From cattle ranchers to high tech entrepreneurs the area is
home to a breed of people who have come to appreciate an unmatched quality of life While
retaining its small town feel Bozeman prides itself on offering a wide array of cultural amenities
with an abundance of outdoor recreational opportunities It s easy to understand why Bozeman
consistently ranks as one of America 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 of southwest Montana and
consistently attracts top tier business medical retail cultural and educational opportunities
1 Downtown Bozeman Improvement Plan page 37
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through innovation collaboration and focused effort Bozeman is well positioned as a
competitive attractive and inspiring location to conduct business live visit recreate or earn a
degree
Bozeman is home to Montana State University a thriving research university The Carnegie
Foundation for the Advancement of Teaching recognizes MSU as one of 96 research universities
with very high research activity MSU enrollment numbers for the fall of 2011total 12 188
undergraduate students and 1 965 graduate students Through competitively awarded grants and
contracts MSU accounted for 109 481 694 in research expenditures between 2009 and 2010
MSU provides a well educated workforce and strong technology transfer program that attract
retain and support higher paying jobs in southwest Montana Additionally Gallatin College
Programs GCP offers 2 year associate degrees and 1 year certificate programs further
improving and diversifying our workforce In 2011 Gallatin College Programs recorded an
enrollment of approximately 200 students Each year both MSU and GCP enrollments continue
to expand
Considered the Gateway to Yellowstone National Park Bozeman hosts over one million
visitors each year Three world class ski resorts Bridger Bowl Big Sky and Moonlight Basin
are only minutes away Many visitors travelling east to west arrive in Bozeman via Interstate 90
which is less than 2 minutes from Downtown Many others arrive via the recently expanded
Bozeman Yellowstone International Airport Our airport recorded its busiest year ever in 2011
with 397 822 passengers boarding flights This represents an 8 9 percent increase over 2010 and
approximately 32 600 more passengers than the previous record set in 2010 Bozeman
Yellowstone Airport and local private business interests are pursuing the establishment of an on
site U S Customs agent for international passenger arrivals and departures In 2011 a newly
constructed concourse addition allows expanded service to six airlines including Alaska
Allegiant Delta Frontier Horizon and United Airlines The Bozeman Yellowstone Airport
averages 20 flights per day including many non stop connections to major hubs including
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Atlanta seasonal Chicago Denver Los Angeles seasonal Las Vegas Minneapolis New
York seasonal Phoenix Portland seasonal Salt Lake City San Francisco seasonal and
Seattle Additionally two private jet centers provide an array of services to private jet owners
pilots and passengers
Over the years Bozeman is fortunate to be included on a variety of Best Of lists Policom an
economic research firm ranked Bozeman as the seventh strongest micropolitan economy in 2011
out of 576 small cities studied throughout the United States Additional recognitions include 2
1 Where to Live and Play Now National Geographic Adventure recommended Bozeman
as a good place to raise children for the reasons of safety exposure to culture and
outdoor amenities October 2009
2 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
3 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
4 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
5 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
6 Bozeman named 1 town to live if you re a skier According to Powder magazine
Bozeman is the perfect mix of ski town and ski tropolis it s more affordable than
Jackson Hole less crowded than Salt Lake City and more of a real town than Whistler
November 2010
7 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
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
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One of the area s top outdoor recreational activities is trout fishing in our world class rivers and
streams The region has 82 miles of blue ribbon trout fishing streams and rivers including the
nearby Yellowstone Boulder Madison and Gallatin rivers and is surrounded by thousands of
acres of national forest and other public lands Bozeman is also distinguished by its thriving and
vibrant downtown food culture arts and entertainment scenes The Bozeman community
strongly supports our excellent K 12 school systems which are important to our well educated
community and workforce
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 Oracle formerly Right Now Technologies Zoot Enterprises
Schedulicity com Simms Fishing Products Mystery Ranch Backpacks West Paw Design Sitka
LigoCyte Pharmaceuticals Bacterin International Scientific Materials BioScience Laboratories
Foundant Technologies Bridger Photonics ILX Lightwave and Lattice Materials to name but a
few
Section 3
DEVELOPMENT SITE INFORMATION
The 26 600 square foot proposed 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 Street see the blue polygon on the map
below
Details related to the zoning and development capacity of the site area are summarized in the
City s Unified Development Code or UDC
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Section 4
PREFFERED QUALIFICATIONS
The City is interested in working with a development entity who is experienced in the
development and operation of a full service hotel with meeting facilities The City will work
closely with the developer regarding site design and development To that end the City is
soliciting Statements of Qualifications SOQ from a limited list of interested parties Following
review one or more firms may be selected to submit a more detailed proposal including concept
design drawings financial projections and the financial terms for the purchase or lease of the
land 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
1 Reinforce the Downtown Bozeman Improvement Plan Bozeman Community Plan the
City s Economic Development Plan and the City Commission s 2012 2013 Work Plan
2 Respect history and community landmarks
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3 Promote high standards of street design with active streetscapes and visually permeable
street level facades
4 Create a vibrant edge to the street with strong building character and proximity to the
sidewalk
5 Maintain and extend historic streetscape elements as specified in the Downtown
Business Improvement District Streetscape Plan and
6 Maintain and extend the traditional building form massing and traditional materials as
seen in the surrounding commercial district the building may express traditional form
and massing while using a current architectural vocabulary
Section 5
STATEMENT OF QUALIFICATIONS
The City requests a qualifications statement that expresses your entity s interest vision and
capability to develop and operate a full service hotel with meeting facilities in downtown
Bozeman Montana We are specifically seeking the following materials
1 Your Firm s Specialty Provide a narrative that details whether your firm develops or
develops and operates full service hotels with meeting facilities Please identify the firm s
specialization If teams are proposed that would separately undertake the development
and operating responsibilities please provide information for each team member
2 Vision and Development Program Summary Identify your vision for a full service
hotel with meeting facilities and describe how constructing and operating such a facility
on the Carnegie parcels would fit into your firm s overall business strategy Translate
your vision into a development program that identifies the type and quality level of a
downtown full service hotel with meeting facilities as well as the lodging market this
facility would service Also please detail ancillary uses i e restaurant retail and or spa
uses your firm or another entity would develop onsite in conjunction with a hotel
3 Operations Identify anticipated hotel operators for the hospitality venue Also identify
other proposed operators for all ancillary uses Illustrate the brand promise marketing
program and reservation system that is unique to the hotel operator
4 Experience Include a detailed resume for your firm or if a team for each participating
firm citing specific experience with developing operating a full service hotel with
meeting facilities in a downtown Identify other projects your firm has developed and or
operates including the host community size ancillary uses and quality level Also
provide information regarding your firm if a development team include each firm on the
team that identifies length of time in business ownership structure operating structure
principal offices and the office that would service this project Further identify the
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project manager and personnel that would be assigned to this project including their level
of experience and responsibility
5 Financial Capability Identify the firm s or team s capacity to secure the equity and
financing required to implement the proposed development program Please disclose if
your firm has ever defaulted on its financial obligations has had developments that were
foreclosed upon or if bankruptcy has ever been filed and
6 Implementation Time Frame Outline the time period your firm proposes to initiate site
and development program planning activities upon signing an exclusive negotiation
agreement with the City Discuss your firm s ability to initiate construction activities
within 12 months after executing a disposition and development agreement
Section 6
SELECTION CRITERIA
The following criteria will be used to evaluate the qualifications statement submittals
1 The development program should feature a full service whole ownership high quality
hotel with dedicated meeting facilities and appropriate ancillary uses
2 The development entity must demonstrate experience with designing building and
operating full service hotels with meeting facilities Experience entails at least three or
more properties
3 The development entity must demonstrate that it has access to sufficient capital to
underwrite all construction costs and at least one year of maintenance and operating
costs and
4 The development entity must demonstrate that it is ready to initiate site and development
program planning activities upon signing an exclusive negotiation agreement and that it
will commence construction activities within 12 months after executing a disposition and
development agreement
Section 7
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 the panel to evaluate all submittals received
in response to this RFQ Within 30 days of the submittal deadline the panel will assess
respondent qualifications based on the evaluation criteria described in Section 6 above Panel
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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 RFQ 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
Within 60 days of the submittal deadline interviews may be scheduled for firms or teams which
have been found to be the most responsive to the RFQ Following review one or more firms may
be selected to submit a more detailed proposal including concept design drawings financial
projections and the financial terms for the purchase or lease of the Carnegie Parcels Within 90
days of the submittal deadline the panel may then recommend to the City Commission that one
firm be considered for an exclusive negotiation agreement for the Carnegie Parcels
Section 8
SUBMITTAL REQUIREMENTS
This request for qualifications remains open until filled Please send submittals to the attention
of
Carnegie Parcels RFQ
Bozeman City Clerk
121 North Rouse Ave
P O Box 1230
Bozeman MT 59771
Submissions must be in the actual possession of the Office of the Bozeman City Clerk on or
prior to Friday April 13 2012 by 5 00pm Mountain Time
Late submissions will not be considered Submissions must be provided in a sealed package with
the statement Carnegie Parcels RFQ and the prime contact name and address clearly labeled on
the front of the package Please submit two 2 complete paper copies and two 2 complete
digital copies on CD ROM or flash drive of the proposal PDF digital file formats are
preferred
Section 9
INQUIRIES
All questions regarding the Carnegie Parcels RFQ shall be in writing via parcel post or e mail
and directed to
Brit Fontenot
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Director of Economic Development
and Community Relations
P O Box 1230
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 RFQ RFQ
Section 10
RESERVATION OF RIGHTS BY CITY OF BOZEMAN
The issuance of this RFQ and the acceptance of a submittal do 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 RFQ or future RFP are completely the
responsibility of the respondents Any or all disputes arising under this RFQ and any contract
negotiated as a result of this RFQ 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 RFQ the City reserves the right to
1 Waive any immaterial defect or informality in a submittal
2 Extend or otherwise revise the submittal date
3 Reject any or all submissions or portions thereof
4 Cancel this RFQ at any time
5 Reissue a new or revised RFQ and
6 Request additional information or one or more teams to submit a more detailed submittal
Section 11
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
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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 12
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 in fulfillment of this RFQ the RFP if selected or in the
development and operations of a hotel if a contract is entered into for such purposes 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
This solicitation does not require the City to award a contract to pay any cost incurred with the
preparation of a qualifications statement or to procure or contract for services or supplies The
City reserves the right to accept or reject any submittals received in response to this request to
negotiate with any qualified source or cancel in whole or part this process if it is in the best
interest of the City Prior to negotiations prospective entities may be required to submit revisions
to their qualifications statements All proposers should note that any contract pursuant to this
solicitation is dependent upon the recommendation of the City staff and the approval of the City
Commission
END OF RFQ
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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN MONTANA
JUNE 18 2012
The Commission of the City of Bozeman met in the Commission Room City Hall at 121 North
Rouse on Monday June 18 2012 Present were Mayor Sean Becker Commissioner Cyndy
Andrus Commissioner Jeff Krauss Commissioner Chris Mehl Commissioner Carson Taylor
City Manager Chris Kukulski City Attorney Greg Sullivan and Deputy City Clerk Aimee Kissel
0 00 40 A Call Meeting to Order
0 00 56 B Pledge of Allegiance and a Moment of Silence
0 00 58 C Changes to the Agenda
Mayor Becker asked City Manager Chris Kukulski if there were any changes to the agenda Mr
Kukulski said there were not
0 01 16 D Minutes May 7 2012
0 01 20 Motion and Vote to approve the minutes of May 7 2012 as submitted
It was moved by Cr Mehl seconded by Cr Taylor to approve the minutes of May 7 2012
as submitted
Those voting Ave being Cr Mehl Taylor Andrus Krauss and Mayor Becker
Those voting No being none
The motion passed 5 0
0 01 20 E Consent
1 Authorize Payment of Accounts Payable Claims LaMeres
2 Accept the Building Division Monthly Report for May 2012 Risk
3 Approve a Wine License for All Things Italian to sell off premises at 2622
West Main Street Suite IB Neibauer
4 Approve Certification of Delinquent City Assessments to Gallatin County
Rosenberry
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Minutes of the Bozeman City Commission June 19 2012
0 01 25 Public Comment on Consent Items E 1 4
Mayor Becker opened public comment on consent items E 1 4 Seeing none Mayor Becker
closed public comment
0 01 56 Motion and Vote to approve consent items E 1 4 as submitted
It was moved by Cr Taylor seconded by Cr Andrus to approve consent items E 1 4 as
submitted
Those voting Aye being Crs Taylor Andrus Krauss Taylor and Mayor Becker
Those voting No being none
The motion passed 5 0
0 02 08 International Visitors Leadership Program
Mayor Becker announced that visitors from the International Leadership Program were present
this evening Participants from Sri Lanka Nepal and other countries are visiting
0 02 56 F Public Comment
Mayor Becker opened public comment
0 03 10 Ben Alexander Public Comment
Mr Alexander of 225 North Powder Park Court provided public comment in favor of the parks
and trails bond He provided several safety arguments saying neither of his daughters can make it
to their school on trails or bike paths currently Great trails nearby connect to nowhere Mr
Alexander said the city has a good beginning of a trail system but missing links represent a
safety hazard
0 05 29 James Payden Public Comment
Mr Payden of 3763 Potossi says he looks forward to having the armory developed
0 05 59 Clark Finch Public Comment
Mr Finch former owner of Heebs Grocery and current owner of Heebs Center said he does not
think the Cider House should be approved at the proposed location as it does not have parking as
the current businesses are already struggling with parking He is also concerned that the Cider
House proposal is in the alley where Tire Rama and Heebs receive supplies Mr Finch said lack
of parking is the most dangerous issue to a grocer s survival
0 08 14 Dan Center Public Comment
Mr Center of 409 North Bree Avenue provided public comment in support of allowing the
voters to decide whether to invest in a parks and trails bond
0 11 25 Alex Russell Public Comment
Mr Russell of Brady Street spoke in favor of a parks and trails bond
0 12 30 Tony Faber on behalf of Mike Hope Public Comment
Mr Kaber of 303 Golden Valley read a letter into the record on behalf of Mike Hope urging the
city not to sell the Carnegie parking lot
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0 13 56 Mitch Bradley Public Comment
Mr Bradley owner of Heebs Grocery spoke in opposition to the Yellow House Cider House in
the location requested due to the lack of parking available in this location He reported there is no
side parking on Wallace and parking is already full in this location He is also worried about the
ability to receive deliveries if the Cider House were to open in this location
0 16 16 Lance Travish Public Comment
Mr Travish CEO of a printing company in town spoke in favor of the Armory development He
feels it would be very nice to have a boutique hotel at that location He would encourage the
Commission not to sell the Carnegie lot
0 17 24 Conrad Anker Public Comment
Mr Anker spoke in favor of placing a parks and trails bond measure on the ballot
0 18 16 Dan Stevenson Public Comment
Mr Stevenson of 3009 Westridge Drive spoke in favor of a parks and trails bond as it would
allow planning for the legacy of open spaces that developers do not have the ability to affect
themselves
0 19 46 Ray Rasker Public Comment
Mr Rasker of 11 South Grand spoke in favor of a parks and trails bond measure He has seen
more and more people use the trails over the years Mr Rasker said that from Costco to the Mall
the trails do not link making that route a dangerous undertaking
0 21 21 Amy Hukill Public Comment
Ms Hukill of 208 Dawn Avenue spoke in favor of a parks and trails bond measure speaking
regarding connecting the trails
0 22 08 Julie Zichovich Public Comment
Ms Zichovich of 109 East Grant spoke in support of the parks and trails bond and then spoke
regarding the importance of keeping the public informed throughout the process regarding both
the feasibility study and the bond issue and the differences between them
0 23 05 Marianne Amsden Public Comment
Ms Amsden of 5588 Patterson Road is the current President of the Gallatin County Planning
Board although she is not speaking on behalf of the board She spoke regarding how a parks and
trails bond is related to the county wide park and trail plan that she and others have been working
on since 2008 She would ask that as Bozeman and Belgrade are growing together we look into
some way to preserve the wildlife corridor between the two
0 25 03 Tom Keck Public Comment
Mr Keck of 411 North 3rd spoke in support of a park and trails bond measure on the ballot so
the citizens can decide for themselves Mr Keck said that safety should be a consideration in this
decision as there are gaps among the trails
0 27 02 Colette Kirchhoff Public Comment
Dr Kirchhoff of 516 South 6th spoke in favor of a parks and trails bond measure saying as a
doctor getting plenty of exercise and seeing other people socially is very important for health
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0 29 28 Steve Kirchhoff Puhlic Comment
Mr Kirchhoff of 516 South 6th spoke in favor of a park and trails bond measure He applauds
the originator of this idea He said the community cherishes these resources and parks and trails
are best done by the people Private industry cannot provide what the community needs in a
timely or coordinated fashion The people should be allowed to decide whether they want to go
forward with this bond
0 31 43 Gary Weiner Public Comment
Mr Weiner of 4030 Sourdough Road spoke as the coordinator of the Bozeman Creek
Enhancement Project saying they would like to see Bozeman Creek be the best amenity for the
community and that this bond issue is integral to making that happen They are making progress
on Bogert Park but the bond would be a great opportunity to make a huge difference there He
also spoke about funders wanting to see local commitment to receive grants
0 35 11 Roh Knapp Public Comment
Mr Knapp of 1503 South Grand spoke in favor of a park and trails bond measure and said an
interconnected system of trails with real planning and parks provides a great sense of
community
0 36 15 Allan Bay Puhlic Comment
Mr Bay of 419 Fillstone Drive spoke as a representative of the Blittz Soccer Club in favor of a
park and trails bond measure They would love to work on a public private partnership for a
sports park complex that could accommodate soccer lacrosse and rugby There are over 3 000
kids and adults that play soccer in Bozeman Mr Bay said tournaments could come to Bozeman
if we had space available and a sports complex would provide a huge opportunity to compete
with our regional neighbors
0 39 37 Pippin Wallace Public Comment
Mr Wallace of 3226 Summerset spoke in support of a park and trails bond measure and asked
what it will take to get this item passed by the Commission
0 40 41 Molly Pickall Puhlic Comment
Ms Pickall of 407 South 14th spoke in favor of a park and trails bond measure
0 41 35 Public Comment Closed
Seeing no further public comment Mayor Becker closed public comment
0 41 53 G Action Items
0 41 55 1 Yellow House Cider House On Premise Consumption of Alcohol
Conditional Use Permit and Certificate of Appropriateness at 549 East Babcock Street
Application No Z 12086 Quasi Judicial Bristor
0 42 40 Allyson Bristor Planning Department
Ms Bristor provided the staff presentation on this item
0 47 42 Cr Mehl
Cr Mehl asked questions of staff regarding the height of the proposed building
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0 48 48 Ms Bristor
Ms Bristor continued the staff report
0 50 00 The Commission began questions for staff
0 50 12 Ms Bristor
Ms Bristor explained that a bar and a restaurant are in the same category
0 53 14 Mayor Becker
Mayor Becker asked about an informal hearing that was previously heard by the Commission for
this location
0 54 48 Mr Arnold Architect with Stickworks LLC AP Wicant
Mr Arnold spoke relative to the parking issue saying they moved forward based on B 3 zoning
that says parking onsite is not needed This Cider House would be a great addition to the east end
of downtown and they would like to target folks walking and riding their bikes to the facility
0 56 35 Glenn Gale Applicant
Mr Gale said he would be open to speaking with the owners at Heebs to cooperate with them
and move forward
0 57 09 Mr Arnold Applicant
Mr Arnold responded to an earlier question saying the occupancy for the proposed tasting room
is 37 people
0 57 49 Cr Andrus
Cr Andrus began questions for the applicants
1 01 43 Public Comment
Mayor Becker opened public comment
1 02 28 Gary Gullickson Public Comment
Mr Gullickson of 404 South Church read a letter to the Commission regarding the parking issue
in this location saying that the Commission should open and continue the public hearing on this
application with specific direction to staff or the applicant to supply additional information
1 08 04 Public Comment Closed
Seeing no further public comment Mayor Becker closed public comment
1 08 05 Applicant Response
Mr Gale says he understands the concerns of the neighborhood but would ask that the
Commission not hold up this project as the applicant did respond to the Unified Development
Code They are more than happy to sit down with the neighbors to work on signage and
encouraging customers to not park on their property
1 09 44 Ms Bristor
Ms Bristor explained that restaurant parking is determined by the serving area only If this was a
restaurant larger than 3000 square feet they would still receive a reduction in B 3 zoning
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Minutes of the Bozeman City Commission June 18 2012
1 12 25 Commission questions for Staff
1 12 29 Ms Bristor
Ms Bristor explained the standard public notice requirement as well as what Ms Bristor does to
notify the neighborhood groups
1 13 26 Motion to approve Conditional Use Permit and Certificate of Appropriateness
application Z 12086 as described in the staff report and subiect to the conditions therein
based on a finding of compliance with all applicable criteria
It was moved by Cr Andrus seconded by Cr Krauss to approve Conditional Use Permit
and Certificate of Appropriateness application Z 12086 as described in the staff report and
subiect to the conditions therein based on a finding of compliance with all applicable
criteria
1 16 41 Commission discussion on the motion
1 20 55 General discussion about color palette for a home that is not historic
1 21 31 Amendment to the main motion to strike condition 15 the requirement for a color
aplette
It was moved by Cr Mehl seconded by Cr Krauss to strike condition 16 the requirement for
a color palette
1 23 34 Vote on the Amendment to the main motion to strike condition 16 the
requirement for a color palette
Those voting Aye being Cr Mehl Krauss Andrus and Mayor Becker
Those voting No being Cr Taylor
The amendment to the main motion passed 4 1
1 23 47 Vote on the main motion as amended to approve Conditional Use Permit and
Certificate of Appropriateness application Z 12086 as described in the staff report and
subiect to the conditions therein based on a finding of compliance with all applicable
criteria striking condition 16 the requirement for a color palette
Those voting Ave being Crs Andrus Krauss Mehl Taylor and Mayor Becker
Those voting No being none
The main motion as amended passed 5 0
1 24 06 2 Provisional Adoption of Ordinance No 1832 amending the text of the Unified
Development Code to allow a Master Site Plan as an alternative to the creation of a
Planned Unit Development for non residential development within the North 19th
AvenuelWest Oak Street Entryway Corridor Zone Code Amendment Z 12050 AND
consideration of Resolution No 4384 modifying the Bozeman Design Objectives Plan to
achieve this purpose Riley
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Minutes of the Bozeman City Commission June 18 2012
1 24 23 Doug Riley Planning Department
Mr Riley provided the staff presentation on this item
1 30 38 The Commission began questions for staff
1 34 43 Don Cape Jr Cape Enterprises Applicant
Mr Cape Jr began the applicant presentation comparing the process of going through a planned
unit development versus a master site plan and said the PUD has outlived its usefulness as a
requirement but not as a tool
1 37 44 Kevin Cook Applicant
Mr Cook of 1276 North 15th Avenue continued the applicant presentation on this item speaking
regarding experiences in the past in going through a planned unit development
1 39 30 Public Comment
Mayor Becker opened public continent on this item Seeing none Mayor Becker closed public
comment
1 40 15 Motion that having heard and considered public testimony materials presented
and the review criteria for adoption of a Zone Code Amendment I find that the text of
Ordinance 1832 is consistent with the review criteria and move to provisionally adopt
ordinance 1832
It was moved by Cr Krauss seconded by Cr Mehl that having heard and considered
public testimony materials presented and the review criteria for adoption of a Zone Code
Amendment I find that the text of Ordinance 1832 is consistent with the review criteria
and move to provisionally adopt ordinance 1832
1 42 16 Commission discussion on the motion
1 43 41 Vote on the motion that having heard and considered public testimony materials
resented and the review criteria for adol2tion of a Zone Code Amendment I find that the
text of Ordinance 1832 is consistent with the review criteria and move to provisionally
adopt ordinance 1832
Those voting Aye being Crs Krauss Mehl Taylor Andrus and Mayor Becker
Those voting No being none
The motion passed 5 0
1 44 37 Break
Mayor Becker called for a break
1 56 24 Back to Order
Mayor Becker called the meeting back to order from break
1 56 57 3 Potential Parks and Trails Bond Policy Discussion Commissioner Mehl
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Minutes of the Bozeman City Commission June 18 2012
1 57 18 Cr Mehl
Cr Mehl provided the presentation on this item
2 16 12 Mayor Becker began questions
Mayor Becker asked about why we would not have a six mill levy instead of a bond
2 19 58 Dan Simons Dorsey and Whitney Bond Counsel
Mr Simons answered questions regarding bonds
2 41 09 Public Comment
Mayor Becker opened public comment on this item
2 41 21 David Cook Public Comment
Mr Cook of 701 South 7th Avenue spoke on behalf of the Recreation and Parks Advisory Board
He explained that there is a backlog of parks and playing fields and that the time is now to take
care of this issue He would urge that the Commission place the bond issue on the ballot
2 43 58 Amy McNamere Public Comment
Ms McNamere of 419 South 9th Avenue voiced her strong support for the parks and trails bond
issue as a way to help keep our trails safe especially since this community uses the parks and
trails as heavily as they do
2 45 53 Steve Schnee Public Comment
Mr Schnee of 108 Silverwood Drive spoke in favor of a parks and trails bond measure speaking
regarding quality of life
2 47 59 Terry Cunningham Public Comment
Mr Cunningham of 3224 Hidden Springs Lane spoke regarding past private public projects that
he was involved in saying the same energy would be used for future parks and trails project
2 50 07 Cathy Costakis Public Comment
Ms Costakis of 140 Village Crossing Way spoke regarding her use of the trails within town and
that everyone should have the ability to use the trails She would like everyone to be able to have
within a quarter mile of their home trail access they can reach safely via walking biking or in a
wheelchair She spoke regarding a conference she recently attended called Weight of the
nation
2 53 20 Matte Pope Public Comment
Ms Pope of 1508 South Willson asked the Commission to support a 15 million park and trails
bond initiative
2 54 28 Chris Pope Public Comment
Mr Pope of 1508 South Willson spoke about social welfare and said that taxpayers would like
the opportunity to take a vote to tax ourselves
2 55 52 Deb Love Public Comment
Ms Love of 1013 South Black Avenue said she is the Northern Rockies Director for the Trust
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Minutes of the Bozeman City Commission June 18 2012
for Public Land She spoke regarding a public opinion poll they conducted asking voters whether
they would support a bond The majority said they would
2 59 11 Chris Naumann Public Comment
Mr Naumann of 603 South 10th Avenue spoke on behalf of the Lacrosse League in support of a
bond measure for parks and trails The city only has one legal size lacrosse field for 200 players
and cannot host the state tournament because of the lack of athletic fields available
3 02 18 Hal Stanley Public Comment
Mr Stanley of 7327 Canyon Drive commended Cr Mehl for bringing this bond issue forward
He was attracted by the revitalized downtown and the trails here in Bozeman He emphasized
that parks and trails are democratic as it does not cost anyone to use them
3 04 30 Swiven McGrath Public Comment
Ms McGrath spoke on behalf of the Bridger Ski Foundation saying that public private
partnerships have been integral to the Foundation They support this bond initiative
3 05 39 Blake Maxwell Public Comment
Mr Maxwell of 516 West Lamme Street spoke regarding the timing and scale of a parks and
trails bond speaking regarding the poverty level in this community and saying the assets of parks
and trails are not translating to economic development Mr Maxwell asked about the math for
the bond issue and spoke with concerns that many residents cannot afford the extra tax
3 09 04 Paul Rubright Public Comment
Mr Rubright President of the Blittz Soccer Club spoke in favor of a parks and trails bond
measure and emphasized the economic benefits that could follow In talking with soccer
lacrosse and other groups there may be the possibility of a non profit coalition that could
eventually take over maintenance They are attempting to model a coalition off of Kalispell s
3 10 37 John Catton Public Comment
Mr Cation of 624 South Third thanked Cr Mehl and staff for the research done on this item and
then spoke regarding his experiences with a Hello Walk and how uplifting it was He would
support a bond measure as trail systems and parks are why a lot of people have moved here and
stayed here
3 13 53 Kelly Pohl Public Comment
Ms Pohl of 860 Rogers Way said she works for the Gallatin Valley Land Trust and is a parent
and homeowner She spoke in favor of a park and trails bond measure referring to the benefits of
parks and trails including raising property values lowering rates of obesity and attracting
employers She said the current system of developing parks is not working The current lull in
development can be a unique opportunity Ms Pohl would urge the Commissioners to let voters
decide about the bond in November
3 16 33 Penelope Pierce Public Comment
Ms Pierce Executive Director of Gallatin Valley Land Trust spoke in favor of a parks and trails
bond measure speaking regarding the many years they have been working on trails in this
community They see this bond as a great opportunity right now while land value is down Ms
Pierce said thank you for the hard and thoughtful work that has been put into this
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3 18 54 Public Comment Closed
Seeing no further public comment Mayor Becker closed public comment
3 19 02 Cr Mehl
Cr Mehl spoke to questions that arose during public comment
3 36 35 Motion to direct staff to prepare a motion to be considered in July for the City
Commission to place a referendum on the November ballot authorizing the City to sell
bonds to acquire money for purchase and improvement of parks trails recreation fields
and preserving water quality along creek and stream corridors
It was moved by Cr Mehl seconded by Cr Taylor to direct staff to prepare a motion to be
considered in July for the City Commission to place a referendum on the November ballot
authorizing the City to sell bonds to acquire money for purchase and improvement of
parks trails recreation fields and preserving water quality along creek and stream
corridors
3 37 20 Discussion on the motion
3 54 29 Suspension of the Rules of Procedure
Mayor Becker suspended the rules of procedure to allow the meeting to extend to 11 p m
4 01 11 Vote on the motion to direct staff to prepare a motion to be considered in July for
the City Commission to place a referendum on the November ballot authorizing the City to
sell bonds to acquire money for purchase and improvement of parks trails recreation
fields and preserving water quality along creek and stream corridors
Those voting Aye being Crs Mehl Taylor Andrus and Mayor Becker
Those voting No being Dept Mayor Krauss
The motion passed 4 1 with Deputy Mayor Krauss opposed
4 01 39 Questions for Commission
Cr Mehl asked clarification questions of the Commission
4 13 54 4 Update on the Carnegie Parcels Hotel Development Request for
Qualifications RFQ Process Direction to Carnegie Parcels RFQ Preliminary Review
Panel Regarding the Scheduling of Respondent Interviews and Preparation of a Final
Recommendation Kukulski
4 14 00 Chris Kukulski City Manager
Mr Kukulski referred to the memorandum provided to the Commission
4 15 40 Public Comment
Mayor Becker opened public comment on this item
4 15 53 Don Cane Jr JWT Capital Public Comment
Mr Cape a respondent on the RFQ said while he is enthusiastic about the prospect of being a
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developer on a downtown hotel as a private citizen he would urge the Commission to slow down
and think about the implications of interfering in a private sector project that is valid
4 17 56 Loren Acton Public Comment
Mr Acton of 8490 Overlook Lane said he is concerned because he does not want to see city land
sold unless there is an extremely compelling reason He also said that just because the city
started a request for qualifications process does not mean we need to carry it through completion
4 21 21 Jerry Pape Public Comment
Mr Pape of 15 North 25th spoke representing both First Interstate Bank and Kelryco
respectively the sellers and buyers of the Bozeman Armory Mr Pape handed out a letter to the
Commission from Kelryco regarding their qualifications to get the armory project accomplished
for the benefit of the community
4 23 16 Matt Johnson Public Comment
Mr Johnson of 3113 Garden Brook Lane spoke about a long affiliation between Kelryco and
First Interstate and his confidence in Kelryco
4 24 23 Steve Rodderick Public Comment
Mr Rodderick of 111 East Mendenhall spoke on behalf of his downtown business regarding the
continued need for the Carnegie parking lot
4 26 16 Bill Bryan Public Comment
Mr Bryan of 1220 South Tracy spoke as one of the founders of the business Off the Beaten
Path which is about meaningful travel and connections He would recommend that this RFQ be
suspended to provide support for related actions within the private industry
4 29 14 Dick Hart Public Comment
Mr Hart of 2511 Ricky Rock Lane said parking is economic development and he does not know
where additional parking would come from if this lot were removed
4 30 14 Ashley Ogle Public Comment
Ms Ogle with Kenyon Noble would ask the Commission to rescind the RFQ and let the
Carnegie lot remain a parking lot
4 31 16 Kyle Dornberger Public Comment
Mr Dornberger of 211 North 10th asked that the RFQ process be terminated and spoke to the
Armory as a more sustainable site He provided arguments for the Armory Hotel project
4 34 22 Cory Lawrence Public Comment
Mr Lawrence of 4510 Morning Sun Drive spoke to the Armory redevelopment project as the
developer They intend to bring a project that will be unique but reflective of the community If
the city moves forward with the RFQ process they will exit this proposal as downtown cannot
support two downtown boutique hotels
4 37 36 Michael Delaney Public Comment
Mr Delaney of 101 East Main Street spoke in favor of the Armory redevelopment project He
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also spoke regarding the vitalization going on right now in downtown Bozeman They are
convinced that the Carnegie parking lot is necessary
4 40 36 Public Comment Closed
Seeing no further public comment Mayor Becker closed public comment
4 40 38 Discussion on the motion
4 53 50 Rules of procedure Suspended
Mayor Becker suspended the rules of procedure to allow the meeting to continue until 11 10 p m
4 59 37 Motion that the Carnegie parcels RFQ process be suspended for a period of 180
days pending with the understanding that the process will remain suspended or eliminated
on the armory proiect Progress includes but is not Iimited to action towards purchase of a
liquor license purchase of the armory property and or design work on the proposed hotel
It was moved by Cr Taylor seconded by Cr Andrus that the Carnegie parcels RFO
process be suspended for 180 days with the understanding that the process will remain
suspended or be eliminated as long as there is continued progress on the armory project
Progress includes but is not limited to action towards purchase of a liquor license purchase
of the armory property and or design work on the proposed hotel
5 01 39 Discussion on the motion
5 02 54 Vote on the motion that the Carnegie parcels RFO process be suspended for 180
days with the understanding that the process will remain suspended or be eliminated as
long as there is continued progress on the armory project Progress includes but is not
limited to action towards purchase of a liquor license purchase of the armory property and
or design work on the proposed hotel
Those voting Aye being Crs Taylor Andrus Mehl and Mayor Becker
Those voting No being Deputy Mayor Krauss
The motion passed 4 1 with Deputy Mayor Krauss opposed
5 03 16 H FYI 1 Discussion
5 03 16 1 Upcoming Ordinance revising the Code of Ethics
City Attorney Greg Sullivan said the Commission will be seeing an Ordinance during next
week s meeting regarding revisions recommended by the Board of Ethics
5 03 32 2 Parks and Recreation Director
City Manager Chris Kukulski said he will be announcing tomorrow who will serve as the new
Parks and Recreation Director
5 04 02 3 Letter regarding Kohl s and the EIS process
Commissioner Carson Taylor said he would like to discuss writing a letter about Kohl s
regarding the EIS process
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Minutes of the Bozeman City Commission June 18 2012
5 04 23 4 Color Palette discussion
Cr Taylor said he would like to have a discussion with the other Commissioners regarding color
palette as Cr Mehl has said he is committed to taking that out of every proposal in the future
5 04 59 I Adjournment
Mayor Becker adjourned the meeting at 11 11 p m
OF B OZ Sean A Becker Mayor
ATTEST
Alyti y yl
Stacy Ul
r
1 q
4
v0
a
PREPARED BY
Aimee kissel Deputy City Clerk
Approved on iv i 2 01
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CARNEGIE PARCELS TIMELINE
On April 15, 2011 the City of Bozeman received a Letter of Intent (LOI) from CATELLUS
GROUP LLC (CATELLUS) for the purchase of the Carnegie parcels located at 106 East
Mendenhall Street in downtown Bozeman for the purpose of exploring the feasibility of
constructing a hotel with ancillary services.
On May 2, 2011 the Commission voted 5 – 0 to acknowledge the receipt of the CATELLUS LOI
and authorized the City Manager to sign the LOI and order an appraisal “only if a future
determination is made by the City that the Carnegie parking lot is no longer necessary for the
conduct of city business”.
On May 9, 2011, City staff conducted a public forum and information and listening session in
the Commission meeting room with downtown businesses and property owners surrounding the
Carnegie parcels. Approximately 25 – 30 business and property owners, staff and elected
officials participated in the discussion.
On May 11, 2011, the Bozeman Parking Commission met in 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 the Carnegie parcel is
not needed to provide public parking.
On June 13, 2011, the Commission conducted a public hearing to determine whether real
property owned by the City located at 106 East Mendenhall Street, known as the Carnegie
parcels, is necessary for the conduct of City business or the preservation of its property and
provided direction to staff. By a 5 – 0 vote the Commission determined that:
1) 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 necessar y for the conduct of City business or the
preservation of City 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) 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) Staff is 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.
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With Commission direction, utilizing internal and external resources, parking, legal, planning
and economic development staff prepared the draft RFP for Commission 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.
On August 25, 2011 a Commitment for Title Insurance was issued by Security Title Company,
Bozeman, Montana.
On September 14, 2011, a real estate appraisal was issued by Appraisal Services of Bozeman
Inc. Bozeman, Montana which appraised the property at $1.5 million dollars. The appraisal is
valid for one year from the date of issuance. The current appraisal expires on September 15,
2012.
On September 26, 2011, the Commission provided comment and direction on the content of the
draft Carnegie parcels RFP for the construction of a full-service hotel with meeting facilities in
downtown Bozeman, Montana, on the Carnegie parcels. The Commission directed staff to leave
the date of publication open for Commission discussion and decision at the October 24, 2011
public hearing. Staff incorporated the Commission changes into the Draft 2 of the RFP as
directed with a public release date to be determined by the Commission.
On October 24, 2011, in a unanimous 5 – 0 decision, the Commission directed staff to postpone
the release of the Carnegie RFP until January, 2012. The Commission set a hearing date of
January 23, 2012 for staff to return to the Commission to discuss the final release of the
approved Carnegie parcels RFP.
On December 7, 2011 CATELLUS requested that they be removed from consideration for the
purchase of the Carnegie parcels and future development of a downtown hotel project.
During the week of January 2, 2012, City staff conducted discussions with hotel industry
development professionals who independently expressed concerns with the release of the RFP as
drafted citing primarily the expense of the initial investment necessary to create an acceptable
and appropriate response to the RFP. The up-front cost appeared disproportionately high when
viewed against the odds of being chosen as the preferred project proposal.
These professionals suggested the net result of pursuing the current strategy of the RFP release
as drafted, and associated up-front investment to the Respondent, may be a total lack of
responses at the conclusion of the 90-day response period. A lack of responses to the Carnegie
parcels RFP may cause credibility issues with the process that may reflect poorly on City. Based
on this information, we proposed re-working the process to reduce up-front costs for
Respondents without undermining the spirit of the original RFP. One option included adding an
RFQ stage and a process to provide more personalized attention to those who may respond in
order to communicate community desires, assess Respondent capabilities and research past
projects while simultaneously setting expectations from the City and attempting to understand
the Respondents expectations.
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If an alternative approach is approved, work put into the existing RFP is neither lost or nor
undermined by altering the process. The RFP as drafted and approved will constitute the
majority of the information requested from respondents, albeit in a later phase of the process.
Identified in both the Downtown Bozeman Improvement Plan and the Commission’s 2011 –
2012 adopted work plan, the development of a downtown hotel is one of the highest community
priorities. Ensuring that the process facilitates an outcome with the highest probability of success
is the rationale for suggesting alternatives to the originally proposed RFP process. Given the
complexities public property sale transactions and the planning process for the con struction of a
downtown hotel, staff does not believe that the requested delay will have an overall negative
impact on a downtown hotel project.
On January 11, 2012 at the regularly scheduled monthly Parking Commission meeting, staff
discussed the available information and excerpts from discussions with private sector industry
professionals. City staff received a consensus from Parking Commissioners present that the
recommended delay and process reconsideration is a reasonable accommodation under the
circumstances if the modifications increase the odds of success in the desire to construct a
downtown hotel.
On January 12, 2012 results of a Phase I Environmental Assessment was issued by Phoenix
Engineering, Bozeman, Montana.
On January 23, 2012 the City Commission voted 4 – 1, with Deputy Mayor Krauss opposed, to
delay publishing the Request for Proposal (RFP) and direct staff to develop an Request for
Qualifications (RFQ) within approximately thirty days and release it to the public upon
completion.
On February 21, 2012 the City Commission received a letter from several downtown business
and property owners expressing their “opposition to the sale of the [Carnegie] parking lot
because it is of the utmost importance to the long-term financial survival of their businesses and
properties downtown”.
On March 13, 2012 the Carnegie RFQ was released to the public. The deadline for responses
was established for 5 pm on April 13, 2012.
On April 13, 2012, three responses were received.
On June 18, 2012, the Commission voted 4 -1 to suspend the Carnegie RFQ process for 180
days with the understanding that the process will remain suspended or be eliminated as long as
there is continued progress on the armory project.
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