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HomeMy WebLinkAboutApprove Resolution 4494, allocation of $1,045,000 from Trails, Open-Space and Park Bond Funds for Bozeman Pond Expansion, version2Commission Memo Bozeman Ponds Park Expansion Project Page 1 of 6 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Mitch Overton, Director of Parks and Recreation Chris Kukulski, City Manager SUBJECT: Resolution 4494 authorizing the allocation of $1,045,000.00 from Trails, Open- Space and Park Bond Funds for the Bozeman Ponds Park Expansion Project. MEETING DATE: December 2, 2013 AGENDA ITEM TYPE: Action RECOMMENDATION: The Trails, Open Space and Parks Committee recommends the Bozeman City Commission adopt Resolution 4494 as currently written providing $1,045,000 from the Trails, Open Space and Parks Bond Fund for the Bozeman Ponds Park Expansion. We recommend the Commission allocate up to an additional $255,000 for construction of Ravalli Street and Pond Row and miscellaneous transaction costs. SUGGESTED MOTION: I hereby move to adopt Resolution 4494 providing Trails, Open- Space and Park Bond funding of up to $1,045,000.00 for the Bozeman Ponds Park Expansion Project. Alternative Motion: Should the Commission decide to allocate $255,000 to fund construction of Ravalli/Pond Row and miscellaneous transaction costs from the TOP Bond we recommend the Commission adopt the following motion: I hereby move to adopt Resolution 4494 providing Trails, Open-Space and Park Bond funding of up to $1,300,000.00 for the Bozeman Ponds Park Expansion Project. BACKGROUND: The Bozeman Ponds Park Expansion Project (the “Project”) is presented for funding under the Trails, Open Space, and Park Bond program (TOP Bond) as a two-phase project for the expansion and development north of the existing Bozeman Ponds Park. This memorandum provides brief information on the background of the Bozeman Ponds Park, a description of the Project including a discussion of each phase of the Project, a description of the partnerships involved in the Project, a discussion of the TOP Committee recommendation, and finally a Commission Memo Bozeman Ponds Park Expansion Project Page 2 of 6 discussion on fiscal impacts to the City regarding offsite infrastructure and ongoing costs associated with the Project. I. Background on the Bozeman Ponds Park The existing Bozeman Pond Park (the “BP Park”) is an existing 16.5-acre community park owned by Montana Fish, Wildlife and Parks (FWP) and operated and maintained by the City under a lease from FWP. See the attached location map included in the application from the Gallatin Valley Land Trust (GVLT). The BP Park is in the fast growing west quadrant of the City and includes a pond and natural open space with trails and fully developed amenities, including beaches, fishing access, dog beach, picnic facilities, restroom facilities, playground, and a climbing boulder. There is little remaining space for additional park infrastructure. The BP Park is located adjacent to an arterial street (Fowler Avenue) near multiple community services (such as the Gallatin Valley Mall, grocery store, restaurants, Streamline transit service, etc.) and ties into existing trail facilities. Aasheim Fields baseball diamonds are immediately west of the proposed Project on the west side of Fowler Avenue. Hyalite Elementary School is two blocks from the proposed Project. II. Description of the Project Approximately twelve acres of vacant property exist immediately north of BP Park. This twelve acre property has been under contract several times for high-density residential development; however none of the projects have closed on the purchase. At risk of losing the opportunity to expand BP Park, GVLT decided to acquire the property to preserve the opportunity for the City to purchase the property for park purposes. At the same time, GVLT became aware HAVEN, a local non-profit providing services related to domestic violence, was interested in acquiring approximately three acres of the property. According to GVLT, the seller is not interested in splitting the 12-acre property between multiple buyers. To leverage funding and achieve multiple community goals, GVLT and HAVEN entered into a partnership with GVLT securing a contract on the property in late September. The Project is separated into two phases. Both phases are included in the request for TOP Bonds. Phase I is the purchase of the land. Phase II includes a request to provide funds for the development of the newly acquired parkland. Phase I: GVLT entered into a purchase and sale agreement with the current owner for the entire 12-acre property for a purchase price of $800,000. Should the Commission adopt Resolution 4494, GVLT will close on the purchase. After survey and boundary line adjustments, GVLT proposes the City purchase approximately nine acres for the Project at the same price per square foot GVLT pays for the property. ($1.53/sq. ft.). As such, the proposed allocation for Phase I is $600.000. GVLT obtained an appraisal for the property. The City Manager may use this current appraisal as long as it is assigned to the City with the consent of the appraiser. GVLT has indicated it will obtain an update to the appraisal for the acreage the City will purchase. Commission Memo Bozeman Ponds Park Expansion Project Page 3 of 6 As mentioned above, HAVEN intends to purchase approximately three acres of the property from GVLT at a purchase price estimated to be $200,000. HAVEN will share the cost of the boundary relocation, survey work, appraisal, and other due diligence already conducted. Phase II: Phase II of the Project requests $437,900. Upon acquisition of the property, Phase II of the Project would provide funds to develop the parkland. Phase II includes the following components (for additional information on each component of Phase II please refer to GVLT’s application: Section 2, Conceptual Plan, and the proposed budget): a five acre natural park; a 3.5 acre off-leash dog exercise area; trail connections; restrooms; parking lot north of the Ravalli Street alignment west of Fowler; signaled pedestrian crossing on Fowler immediately west of Aasheim Fields at the north end of the Project; and other miscellaneous items such as benches, dog stations, picnic shelter, and a natural playground. The costs of improvements to the property are based on rough estimates created on a short timeline. A more thorough master planning process for Phase II will need to be completed, which could modify the proposed budget. However, GVLT and Run Dog Run are committed to securing $100,000, or 19% of the total improvement costs in matching funds and in-kind contributions to leverage the request of $437,900. III. Partnerships involved in the Project/Leveraging of the TOP Bond The Project involves several community organizations. GVLT, which builds and maintains community trails and preserves open space, and HAVEN, which provides emergency shelter, crisis intervention, and on-going support to victims of domestic abuse, envision an innovative community park and family violence prevention center. This partnership, should the Commission approve the Project, will provide the community with parkland and a new home for HAVEN’s critical social services. Should HAVEN develop its community center on the adjacent three acres, HAVEN and the City can share the costs of infrastructure development. GVLT has been instrumental in developing the Project. They are contributing financing, staff time, and expertise in-kind to purchase the property and will work with the City to assist in the development and maintenance of trails. ERA Landmark Real Estate commits to providing master planning services for Phase II in-kind. Finally, Run Dog Run, a local non-profit group advocating for additional off-leash recreation facility for local dog owners and promoting responsible dog ownership practices, will assist in developing the off-leash dog area. For specific information on the amounts stated for matching please refer to the Bozeman Pond Expansion Budget in GVLT application. IV. TOP Committee Recommendation The TOP Committee reviewed GVLT’s application for the Project during two public meetings (October 24, 2013 and November 7, 2013), The TOP Committee found the Project consistent with the ballot language from the November 6, 2012 election, GVLT’s application thorough, and the Project well justified. The TOP Committee passed the Project through the Rough Cut Matrix with five or more “yeses” by each of the five voting members. The application scored above 60% for both the Community Benefits Matrix and Prevailing Characteristics Matrix (Parks) by Commission Memo Bozeman Ponds Park Expansion Project Page 4 of 6 the votes of the five members present. For more information on the TOP Committee’s actions please see the attached minutes from November 7, 2013 approval. Members of the TOP Committee will be present on December 2nd to answer questions from the Commission. V. Offsite Infrastructure Three components of off-site infrastructure we feel the Commission must consider during the approval of the Project include: (i) the signaled mid-block crossing on Fowler; (ii) improvements to Fowler; and (iii) construction of Pond Row/Ravalli Street. It is important to note the acquisition of the real property does not by itself trigger road improvements to Fowler and Ravalli Street. Fowler Avenue: Fowler Avenue is a minor arterial that currently runs from Huffine Lane ending at Babcock. Fowler Avenue is planned to but does not currently continue north through the City. At this time, Fowler Ave. is not constructed to a current City standard. The east side of Fowler Ave. lacks curb, gutter, and sidewalks. As such, Fowler Ave. will need to be improved to current standards at some point in the future. However, according to the City’s Engineering Division, based on anticipated traffic volumes the Project does not trigger immediate improvements to Fowler Ave. In addition, the City does not have right-of-way adjacent to property at the southeast corner of Fowler Ave.; as such, until the City acquires all the right-of-way along Fowler any improvements would be incomplete. Options for financing future improvements to Fowler include: the TOP Bond for frontage along City parkland, the City’s general fund, the creation of a special improvement district, or the City’s street maintenance and reconstruction funds. A portion of Fowler Ave. from Huffine Lane to Babcock may be eligible for use of transportation impact fees should this portion be scheduled on the Transportation Impact Fee CIP. Pond Row/Ravalli Street: Concurrent with development of Phase II of the Project we recommend Ravalli Street/Pond Row be completed to a local street standard. At this time, the application does not include funding for construction of Ravalli Street/Pond Row through the Project. Pond Row runs south from Babcock along the northeast edge of the Project ending along the north edge of HAVEN’s proposed community center. Ravalli Street will, if constructed, run east/west through the Project and is planned to connect to Pond Row in front of the proposed location of HAVEN’s community center. Should the City construct a parking lot on the north side of Ravalli Street, Ravalli Street must be completed at a minimum from Fowler to the eastern edge of the entrance to the new parking lot. Construction of the entire road through the Project is estimated to cost approximately $250,000. Options for funding Ravalli Street/Pond Row include using the TOP Bond for the City’s proportionate share of the entire road (with HAVEN contributing its proportionate share through direct contribution) or the City’s general fund. Commission Memo Bozeman Ponds Park Expansion Project Page 5 of 6 As noted above, we recommend Ravalli/Pond Row be constructed concurrent with development of Phase II of the Project. Access to the amenities included in Phase II should be provided by a City standard street to ensure access for people with disabilities, or others unable to access these amenities through the use of an un-paved trail. In addition, constructing Ravalli/Pond Row is called for through the City’s transportation plan. The extent of construction and the timing, however, will depend on a determination of funding for the City’s proportionate share, the timing for construction of a parking facility, and the timing of development of HAVEN’s community center. Regardless of the specific timing of the above elements, we believe complete construction of Ravalli/Pond Row should occur concurrently with Phase II. UNRESOLVED ISSUES: Unresolved issues related to approval of the Project include funding for Ravalli/Pond Row construction as discussed above and receipt of a supplemental appraisal for the land the City will purchase. NEXT STEPS: Should the City Commission adopt Resolution 4494, the City must comply with all municipal code provisions regarding the purchase of real property, enter into a purchase and sale agreement with GVLT, and close on the purchase. The City Attorney will review the appraisal, preliminary title commitment, and Environmental Assessment prior to the December 2, 2013 Commission meeting. The City’s Engineering Division is reviewing the Phase I Environmental Assessment. ALTERNATIVES: As directed by City Commission. FISCAL EFFECTS: Below are the amounts we are aware of concerning the TOP Bond authorization, commitments approved by the Commission, and upcoming recommendations from the TOP Committee. TOP Bond Authorization: $ 15,000,000 Commitment: Trail to M $ (600,000) TOP Bond: Amount Yet to Be Committed $ 14,400,000 TOP Committee Recommended: Bozeman Ponds (Ph 1 & 2) $ (1,045,000) TOP Committee Recommended: Bozeman Creek/Bogert Park $ (250,000) Balance: $ 13,105,000 Approval of the application as written would decrease the TOP Bond Fund by $1,045,000. In addition, full development of the Project will require an estimated $250,000 for the construction of Pond Row/Ravalli. Once the Bozeman Pond Expansion is complete it will require that addition resources be allocated toward the maintenance and upkeep of the additional parkland and associated amenities, including the annual Street & Tree maintenance, and W. Babcock SID payments of approximately $5,000/yr in the Park’s Department General Fund budget. The fiscal effects of the City purchasing property along Fowler Avenue include our obligation as a property owner to fund approximately 1,000 ft (not including current FWP property) of street reconstruction to bring Fowler up to a minor arterial standard. A cost estimate is not available at this time. Commission Memo Bozeman Ponds Park Expansion Project Page 6 of 6 Because of the nature of this transaction (GVLT purchasing, holding, and re-selling to the City), we would anticipate additional closing costs/title insurance that is not included in the application of approximately $5,000, proposed to come from the TOP Bond. Attachments: Resolution 4494 GVLT Application TOP Committee Minutes Bozeman Ponds Project: Capital Costs: Phase 1, as described 607,100$ City transaction costs, estimate 5,000$ Phase 2, as described 437,900$ City Pond Row/Ravalli cost (without HAVEN offset)250,000$ Fowler Ave Improvements no estimate Total Estimate 1,300,000$ Annual Costs: City Assessments (including SID)5,000$ /yr Park Department Maintenance Costs no estimate Annual Water/Power/Garbage no estimate