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HomeMy WebLinkAboutPacket 03-19-2007_113-135_Gallatin Ice Foundation Request for Economic Development Funds for Fairgrounds Ice Arena Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Brey, Assistant City Manager Chris Kukulski, City Manager SUBJECT: Gallatin Ice Foundation Request for Economic Development Funds for Fairgrounds Ice Arena MEETING DATE: March 19, 2007 BACKGROUND: In August, this group came before the Commission seeking $300,000 in Big Box Economic Development Funds for the above referenced facility. At a subsequent meeting of the Commission in October, details of the proposal were submitted and are contained in the attached plan and letter from members of the Gallatin Ice Foundation submitted in conjunction with the October meeting. Also attached is the staff memorandum submitted at that time which acknowledges the ongoing expression of need for public ice and the endorsement of Fairgrounds development in the N. 7th Design and Connectivity Plan. The Commission approved the request and the attached agreement was submitted for review by our legal staff who found the agreement acceptable In addition to the attachments from the October Commission meeting, I have attached the Big Box Fund Report submitted in November, 2006 by finance Director Rosenberry which describes the fund and presents fund balance information. Use this information and not the information contained in my cover memo for the October meeting. RECOMMENDATION: The proposal is intended to create additional skating opportunities in the heart of Bozeman. The Fairgrounds has been identified in the N. 7th Design and Connectivity Plan discussion as a cultural activity center in the heart of town that has great value to the community and that provides a significant connection between several different parts of town. The work the Fairgrounds is doing to re-orient its activities responds positively to concerns expressed by adjacent neighborhoods. When the Commission originally heard this request, it sought to have the funds used to leverage additional financial support. The agreement addresses this request of the Commission on a one-to-one matching basis, matching city dollars with pledge dollars as proposed by the recipients in October. 113 Given the positive community wide benefits of this proposal, the responsiveness to the Commission’s leveraging request, and the lack of competing proposals from other parts of the community, the staff recommends approval of the agreement if the Commission accepts the pledges as a match rather than requiring hard cash. One circumstance may have changed since the Commission’s last review of this request. Staff is unclear on the status of the federal appropriation of $400,000 for this project. FISCAL EFFECTS: The fiscal effects are described in the attached Big Box Fund report. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _____________________________ ___________________________ Ron Brey, Assistant City Manager Chris A. Kukulski, City Manager Attachments: 10/9/06 packet material and minutes, Big Box Fund Report Report compiled on: 2/22/07 114 Assistance Agreement 1 FUNDING ASSISTANCE AGREEMENT BIG BOX ECONOMIC DEVELOPMENT GRANT This Assistance Agreement is made and entered into this _____ day of November, 2006, by and between Gallatin Ice Foundation (“Foundation”), a nonprofit organization, and the City of Bozeman (“City”). RECITALS WHEREAS the City has established the Big Box Economic Development program for receipt of funds from Big Box stores; and WHEREAS the funds from the Big Box Development program are to be used for low income housing and to drive economic development; and WHEREAS the Foundation wishes to receive a grant from the City to enclose the Haynes Pavilion and to construct a new Ice Arena within the City’s jurisdictional area. NOW, THEREFORE, in consideration of the mutual covenants and conditions herein, the parties agree as follows: 1. AMOUNT OF ASSISTANCE The City agrees under the terms and conditions of this Agreement to provide funds as a grant to enclose the Haynes Pavilion and to construct a new Ice Arena in the principal amount of Three Hundred Thousand Dollars and No Cents ($300,000.00). The Foundation agrees to match such funds with pledges from individuals and/or entities in the amount of Three Hundred Thousand Dollars and No Cents ($300,000.00). 2. REQUEST FOR FUNDS The Foundation will submit to the City written requests for funds periodically as needed for the purposes of the assistance specified herein. 3. CONDITIONS OF ASSISTANCE a. The City is not required to release funds unless and until the Foundation has raised Three Hundred Thousand Dollars and No Cents ($300,000.00) in pledges from individuals and/or entities b. The City is not required to release funds for the enclosure of Haynes Pavilion unless and until the Foundation produces invoices evidencing costs incurred for enclosing the Haynes Pavilion. 115 Assistance Agreement 2 b. The City is not required to release funds for the construction of the new Ice Arena unless and until construction begins on the new Ice Arena and the Foundation produces invoices evidencing costs incurred for constructing the new Ice Arena. c. During the entire term of this Assistance Agreement the Foundation will make its records relating to this Assistance Agreement available for inspection to the City during normal business and upon reasonable notice. d. The Foundation will submit status reports on project performance at the request of the City. e. This Assistance Agreement is non-assignable except upon the written consent of the City. The City reserves the right to deny requests for assignment and to modify rates and terms of the Assistance Agreement as conditions of an assignment with approval. f. It is expressly understood that the proceeds of this assistance are designated solely for the purpose described in this Assistance Agreement. g. The Foundation waives any and all claims and recourse against the City, including the right of contribution for loss and damage to persons or property arising from, growing out of, or in any way connected with or incident to this Assistance Agreement. Further, the Foundation will indemnify, hold harmless, and defend the City against any and all claims, demands, damages, costs, expenses or liability arising out of the performance of the Foundation. 4. WAIVERS a. The City hereby waives any and all lien rights it may have, statutory or otherwise, in and to Haynes Pavilion and/or the new Ice Arena, or any portion thereof, regardless of whether or not such is deemed real or personal property under applicable laws. The City will not assert any claim whatsoever against the Foundation for loss of anticipatory profits or any other indirect, special, incidental or consequential damages incurred by the City as a result of the construction of Haynes Pavilion and/or the new Ice Arena. b. The City hereby waives any and all ownership rights it may have, statutory or otherwise, in and to Haynes Pavilion and/or the new Ice Arena, or any portion thereof, regardless of whether or not such is deemed real or personal property under applicable laws. 116 Assistance Agreement 3 5. SECURITY a. As security for the performance of this Agreement, the Foundation agrees that in the event the enclosure of Haynes Pavilion or the construction of the Ice Arena are not completed, the full amount of the funds received by the Foundation and not yet spent will be refunded to the City, but only up to the amount of funds actually received from the City. 6. EVENTS OF DEFAULT- FOUNDATION If any of the following events occur, the City may, in its sole discretion, declare such event a default under this Assistance Agreement. a. Any representation or warranty made by the Foundation in this Assistance Agreement or in any request or other information furnished to the City hereunder proves to have been incorrect in any material respect; b. The Foundation fails in any material respect to carry out its obligations under its proposal to the City for the assistance provided hereunder. In the event the Foundation fails to perform any of the covenants on its part or any event of default occurs as stated above, the City may declare the Foundation to be in default and thereafter give the Foundation written notice setting forth the action or inaction which constitutes the default and giving the Foundation 45 days in which to correct the default. This notice shall also state that if the Foundation fails to correct the default within 45 days of receipt of this notice, the City will no longer be obligated to provide any remaining funds to the Foundation. The City shall, upon good cause shown, agree to give the Foundation an additional amount of time reasonable under the circumstances to allow the Foundation to correct the default. Any waiver by the City of any default by the Foundation does not constitute a waiver of a continuing breach or a waiver of a subsequent breach. Any agreement contrary to this Assistance Agreement is not binding upon each party hereto unless it is in writing and signed by both parties. 117 Assistance Agreement 4 7. EVENTS OF DEFAULT- CITY If any of the following events occur, the Foundation may, in its sole discretion, declare such event a default under this Assistance Agreement. a. Any failure by the City to release funds within a reasonable time after the Conditions of Assistance set forth in Paragraph 3 have been satisfied. In the event the City fails to perform any of the covenants on its part or any event of default occurs as stated above, the Foundation may declare the City to be in default and thereafter give the City written notice setting forth the action or inaction which constitutes the default and giving the City 15 days in which to correct the default. This notice shall also state that if the City fails to correct the default within 15 days of receipt of this notice, the Foundation may elect to file a lawsuit against the City for any and all claims that the Foundation may have against the City related to this Assistance Agreement, and the Foundation may seek any and all damages that it is or may be entitled to. The Foundation shall, upon good cause shown, agree to give the City an additional amount of time reasonable under the circumstances to allow the City to correct the default. Any waiver by the Foundation of any default by the City does not constitute a waiver of a continuing breach or a waiver of a subsequent breach. Any agreement contrary to this Assistance Agreement is not binding upon each party hereto unless it is in writing and signed by both parties. 8. ADDITIONAL ASSURANCES The Foundation will remain fully obligated under the provisions of this Assistance Agreement notwithstanding its designation of any third party or parties with written approval of the City for the undertaking of all or any part of the projects with respect to which assistance is being provided under this Assistance Agreement. The Foundation will comply with all applicable laws rules and regulations of the City, the State of Montana, and the United States Government and will all lawful requirements of the City so as to insure that this Assistance Agreement is carried out in accordance with the obligations and responsibilities of the City to the State of Montana. 9. DISPUTES In the event that either party incurs legal expenses to enforce the terms and conditions of this Assistance Agreement, the prevailing party is entitled to recover reasonable attorney’s fees and other costs and expenses, whether the same are incurred with or without suit. 118 Assistance Agreement 5 10. AVOIDANCE OF CONFLICT OF INTEREST The Foundation covenants that no officer, member, agent, or employee of the City who participates in the administration of this Assistance Agreement in other than a purely ministerial capacity will have any personal interest, real or apparent, in the funds of the assistance provided hereby. For purposes of this covenant an impermissible conflict of interest exists if the officer, member, agent, or employee; any member of his or her immediate family; his or her partner; or an organization which employs, or is about to employ, any of the foregoing has a financial or other interest in the proceeds hereof during his or her tenure or for one (1) year thereafter. The Foundation shall incorporate, or cause to be incorporated, in all contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section. 11. CONSTRUCTION AND VENUE This Assistance Agreement will be construed under and governed by the laws of the State of Montana. In the event of litigation concerning it, venue is in the 18th Judicial District in and for the City of Bozeman, State of Montana. For the Foundation: For the City of Bozeman: ________________________ ________________________ (President, etc.) (Chief Elected Official) ATTEST: Legal Review: ________________________ ________________________ 119 The Development Impacts (Big Box) Fund accounts for the dollars the City receives to mitigate impacts related to large-scale retail developments. In 2002 Home Depot paid $500,000 for impacts related to their project. $100,000 was submitted directly to Farmhouse Partners for affordable housing. $400,000 was deposited with the City. The fund has also received $450,000 from Wal-Mart, and is expect- ing to receive approx $500,000 from Lowes, over 2 years. Once the Lowes’ payments are received, Development Impact dollars will total $1,450,000 (with $100,000 going directly to Farm- house Partners). $46,000 has been earned in interest since 2002. To date, $693,000 has been commit- ted to various projects, leaving an un- committed balance of $803,000 once all payments are received. Affordable Housing & Economic De- velopment: There was no specific con- dition language for distribution of the Wal-Mart dollars. Home Depot’s con- dition allocated 20% for affordable housing and 80% for economic devel- opment. In August 2003, the Commis- sion voted to divide the Wal-Mart and Home Depot money 50/50 between affordable housing & economic devel- opment projects. In August 2005, the condition approved for Lowes allo- cated 20% for affordable housing and 80% for economic development. As a result, the report below shows Home Depot and Wal-Mart dollars at 50/50, and the Lowes dollars 20/80. Affordable Housing Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Interest Earnings to date $ 23,000 Lowes *expected 2/2007 FY07 $100,000 Total Revenues: $598,000 Affordable Housing Commitments: Farmhouse Partners - submitted directly: FY03 $100,000 The Road Home Project: FY04 $100,000 The Road Home Project: FY05 $100,000 Total Commitments: $300,000 Uncommitted Dollars: $298,000 Development Impacts Fund (Big Box Fund) ISSUED: NOVEMBER 28, 2006 CITY FINANCE DEPARTMENT, ANNA ROSENBERRY, DIRECTOR Revenue & Commitments Narrative of the Big Box Fund Economic Development Revenues: Home Depot FY03 $250,000 Wal-Mart FY04 $225,000 Interest Earnings to date $ 23,000 Lowes *expected 2/2007 FY07 $200,000 Lowes *expected 2/2008 FY08 $200,000 Total Revenues: $898,000 Economic Development Commitments: GVIBA FY03 $ 25,000 N 7th Design & Connectivity Plan: FY05 $ 68,000 Gallatin Ice Foundation Arena: FY07 $300,000 Total Commitments: $393,000 Uncommitted Dollars: $505,000 Dollars Available FY07 $305,000 Additional Dollars Available FY08 $200,000 Affordable Housing Economic Development 120 PAGE 2 DEVELOPMENT IMPACTS FUND Affordable Housing—Projects Farmhouse Partners: In 2001, Home Depot contributed $100,000 directly to an exist- ing Farmhouse Partner’s Affordable Housing project. The money allowed Farmhouse to re- pay an outstanding $50,000 loan from the Community Affordable House Advisory Board, saving the project interest costs. The other $50,000 was used to subsidize the rents for four to eight units, allowing them to be rented to tenants earning as-low-as 40% of Area Median In- come, a market that the program was normally unable to reach without assistance. The Road Home: In November 2003, the City gave $100,000 to affordable housing down- payment assistance via HRDC’s “The Road Home” program. The City dollars were part of a local match for a $500,000 CDBG grant that provided services to persons/families earning 60%-80% of Area Median Income. In January 2005, HRDC was granted an additional $100,000, noting that the previous award had been entirely spent. “The Road Home” pro- vides education, counseling and assistance with loan packages, as well as down-payment assis- tance dollars. Economic Development—Projects GVIBA: In FY2003, the City awarded $25,000 of Economic Development dollars to the Gallatin Valley Independent Business Alliance (GVIBA). Its mission is “to promote locally owned independent businesses in order to preserve the Gallatin Valley’s unique character.” GVIBA is know for its “Buy Local, You Bet” campaign. City dollars were allocated to their website www.gviba.org, brochures, a membership directory, and print, television & radio ads. N 7th Design & Connectivity Plan: In June 2005, the Commission funded the Design and Connectivity Plan for North Seventh Avenue. The total approved cost of the plan was $68,000. At the time the Plan was funded, it was intended that the document provide the de- sign framework for further improvements to the area in conjunction with an anticipated TIF district for N. 7th Avenue and for the development of CTEP projects along the corridor. The plan was completed in 2006 and has been incorporated into the new North 7th TIF district. Gallatin Ice Foundation Arena: In October 2006, the Commission approved the Foundation’s request for a total of $300,000: $125,000 to improve the existing Haynes Ice Pa- vilion located at the Fairgrounds, and $175,000 for the future construction of an additional Ice Arena adjacent to Haynes. The money will be disbursed once it is matched dollar-for- dollar by local pledges raised by the Foundation. The project anticipates to provide increased commercial opportunities city-wide, and be a magnet for increased development and invest- ment in the general vicinity of the Fairgrounds. 121 LINKED MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA October 9, 2006 ***************************** The Commission of the City of Bozeman met in the Community Room, Gallatin County Courthouse, 311 West Main Street, on Monday, October 9, 2006, at 6:00 p.m. Present were Mayor Jeff Krauss, Cr. Sean Becker, Cr. Jeff Rupp, Cr. Kaaren Jacobson, Cr. Steve Kirchhoff, City Manager Chris Kukulski, Planning Director Andy Epple, Assistant Planning Director Chris Saunders, Assistant City Attorney Susan Wordal, and Deputy City Clerk Stuart Bernard. 0:07:28 [18:01:39] A. Call to Order - 6:00 p.m. - Community Room, Gallatin County Courthouse, 311 West Main Mayor Krauss called the meeting to order at 6:01 pm 0:07:29 [18:01:46] B. Pledge of Allegiance and Moment of Silence 0:08:31 [18:02:37] C. Public Service Announcement - 911 MIL LEVY Chuck Winn Director of Public Safety - Fire Services presented information about the 911 MIL LEVY 0:15:01 [18:02:45] Public Service Announcement - Durston Road Project Update City Engineer Rick Hixson gave an update of the Durston Road Project. The street opening date is November 2nd, weather permitting. 0:21:27 [18:09:23] Questions for Staff - Krauss 0:22:08 [18:16:03] Staff - Sue Stodola City Engineer Sue Stodola answered questions about how long Durston Road was and will be closed. 0:25:20 [18:16:39] E. Consent 1. Authorize Payment of Claims (LaMeres) 2. Adopt Bozeman Gateway Subdivision Zone Map Amendment, #Z-05269 (Skelton) 3. Adopt Laurel Glen Subdivision, Phase II Zone Map Amendment, #Z-04236 (Skelton) 4. Authorize Payment of Buttrey's Solvent Site Cost Recovery (Luwe) 5. Approve Creekwood Final Plat (Cooper) 6. Approve Northside Final Plat (Cooper) 7. Authorize Mayor to sign Bozeman Gateway Subdivision Planned Unit Development, Findings of Fact and Order (Skelton) 122 0:25:29 [18:19:56] Motion and Vote - It was moved by Cr. Becker, seconded by Cr. Rupp, to approve consent items 1-7. Those voting Aye being Crs. Becker, Rupp, Kirchhoff, Jacobson, and Mayor Krauss. Those voting No being none. The motion carried. 0:26:10 [18:20:07] F. Public comment Mayor Krauss called for public comment. This was the time for individuals to comment on matters falling within the purview of the Bozeman City Commission. There will also be an opportunity in conjunction with each agenda item for comments pertaining to that item. 0:26:45 [18:20:22] Public Comment - Deb Stober Deb Stober of 395 North Valley Drive from the Northwest Neighborhood Network Board discussed problems with the closure of Anne and Durston and the issues for citizens and Emily Dickenson school access. 0:31:22 [18:21:10] Public Comment - Marcia Youngman Marcia Youngman of 1214 West Kotch updated the commission on the status of the Affordable Housing Task Force. She also asked for clarification and a time limit extension. 0:34:01 [18:21:21] Public Comment - Robbye Hamburgh Robbye Hamburgh, the Principal of Emily Dickenson School, asked for changes to the 25th and Durston crossing for the safety of school students. 0:36:06 [18:26:01] Public Comment - Jeff Ball Jeff Ball of 323 South Wallace spoke in favor of retrofitting the corner of 25th and Durston. He also spoke about a police request for a social security number. He finally asked for a review of the intent of the Big Box money. 0:38:56 [18:28:47] Public Comment - Cathy Callahan Cathy Callahan of 702 Bridger Drive spoke in favor of using Big Box money to research Mobile Home Ownership. 0:40:32 [18:30:54] Public Comment - Brian Close Brian Close 516 East Curtis requested the creation of a process for reviewing proposals for the Big Box money exists and thought all the Big Box money could be used toward Affordable Housing. 1:00:37 [18:52:20] I. Action Items 1:00:39 [18:54:17] 1. Acceptance McLeod Park (Dingman) 1:00:52 [18:54:38] Staff Report - Ron Dingman Director of Parks and Recreation Ron Dingman presented the staff report relating to McLeod Park. 123 1:02:34 [18:55:59] Public Comment There was no public comment. 1:02:44 [18:56:17] Motion and Vote - It was moved by Cr. Rupp, seconded by Cr. Kirchhoff, to accept McLeod Park as a City Park. Those voting Aye being Crs. Becker, Rupp, Kirchhoff, Jacobson, and Mayor Krauss. Those voting No being none. The motion carried. 1:03:03 [18:57:13] 2. Big Box Economic Development Money for Ice Arena (Hope) 1:03:29 [18:57:54] Presentation - Mike Hope Mike Hope of 2215 Arrowleaf Drive and others presented information about the proposed Ice Rink and requested a grant from the city of $300,000. 1:24:27 [19:12:53] Public Comment - John Vincent John Vincent former Mayor of the City of Bozeman and County Commissioner spoke in favor of granting the money to the Ice Rink proposal. 1:28:20 [19:15:06] Public Comment - Christopher Grey Christopher Grey the President of the Gallatin Ice Foundation spoke of how this Ice Rink project has brought people together. 1:30:41 [19:19:24] Public Comment - Russ Tucker Russ Tucker of 43 Gardner Park asked the commission to put money toward this asset. 1:32:27 [19:20:14] Public Comment - Rob Pertzborn Rob Pertzborn of 518 North Tracy spoke of the history of the Haynes Pavilion and his support for the Ice Rink. 2:05:09 [19:44:45] Motion and Vote - It was moved by Cr. Kirchhoff, seconded by Cr. Jacobson, to grant $300,000 of the Big Box Economic Development Money for the Ice Arena, and direct staff to write a grant agreement for review. Those voting Aye being Crs. Becker, Rupp, Kirchhoff, Jacobson, and Mayor Krauss. Those voting No being none. The motion carried. 2:07:40 [19:49:49] Break Mayor Krauss called a break 2:23:15 [19:50:20] G. Special Presentation 2:24:16 [19:51:55] 1. Street Impact Fee 2:24:17 [19:53:59] Staff Report - City Manager Chris Kukulski 2:33:32 [20:01:48] Report - Robert P. Wallace 124 Robert P. Wallace, P.E., AICP the Vice President of Tindale-Oliver & Associates, Inc. presented in regards to Impact Fees. 3:38:41 [21:08:16] H. Public Hearings 3:39:15 [21:12:05] 1. Water Facilities Plan (Murray) 3:39:35 [21:14:30] Staff Report Engineer Rick Hixson presented the staff report. 3:40:58 [21:16:18] Report - Scott Smith Allied Engineering 4:03:18 [21:47:48] Mayor Krauss suspended the rules to extend the meeting past 10:00 pm 4:15:49 [21:58:28] Motion and Vote - It was moved by Cr. Kirchhoff, seconded by Cr. Jacobson, to adopt the Water Facilities Plan. Those voting Aye being Crs. Becker, Rupp, Kirchhoff, Jacobson, and Mayor Krauss. Those voting No being none. The motion carried. 4:17:27 [21:59:58] FYI - Becker Commissioner Becker meet with the neighborhood about the Kenyon Road extension. He recommended extending the deadline for the Affordable Housing Task Force. Then he asked for updates on the traffic mitigation options and the UDO amendments. 4:20:09 [22:01:17] FYI - Rupp Commissioner Rupp mentioned he will be absent next week while he attends the Modular Mobile Home Trade show. He asked staff to look into a car abandoned on Lincoln. 4:21:18 [22:02:26] FYI - Krauss Mayor Krauss talked about the New West Conference, and asked the City Manager to advertise the Holiday Gas Station discount. 4:24:00 [22:02:57] FYI - Kukulski The City Manager talked about the upcoming Commissioner Team Building Exercise. Chris also talked about the construction delays on 19th and Durston. 4:34:08 [22:08:58] K. Adjournment Mayor Krauss adjourned the meeting at 10:32 125 ______________________________ Jeffrey K. Krauss, Mayor ATTEST: ______________________________________ Brit Fontenot, City Clerk PREPARED BY: ______________________________________ Stuart John Bernard, Deputy City Clerk Approved on ____________________. 126 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Brey, Assistant City Manager Chris Kukulski, City Manager SUBJECT: Gallatin Ice Foundation Request for Economic Development Funds for Fairgrounds Ice Arena MEETING DATE: October 9, 2006 BACKGROUND: In August, this group came before the Commission seeking $300,000 in big box economic development funds for the above referenced facility. Details of the proposal are contained in the attached plan and letter from members of the Gallatin Ice Foundation. The City has received $950,000 in economic impact mitigation payments from Walmart and Home Depot. Another $500,000 is anticipated on the opening of Lowe’s for a total $1,450,000. By past discussion of the Commission, the funds have been earmarked as going half to affordable housing and half to economic development directed at existing commercial areas. There is, therefore, $725,000 directed to economic development. To date, the Commission has authorized the expenditure of $68,000 for the North 7th Design and Connectivity Plan, and $25,000 to go to the Gallatin Valley Independent Business Association (GVIBA). The Commission also indicated a willingness to commit $250,000 to initial projects in the N. 7th Corridor, recognizing that it will take some time for tax increment funding to be available. In sum, there will be $725,000 earmarked for economic development activity collected after 127 Lowe’s payment; there has been $93,000 spent to date; another $250,000 has been earmarked for N. 7th projects, leaving a balance of $382,000. Granting this request for $300,000 will leave a balance of $82,000. The staff has not been contacted by representatives of any other areas seeking to use these funds. RECOMMENDATION: The proposal is intended to create additional skating opportunities in the heart of Bozeman – a need that has been expressed again and again. The Fairgrounds has been identified in the N. 7th Design and Connectivity Plan discussion as a cultural activity center in the heart of town that has great value to the community and that provides a significant connection between several different parts of town. The work the Fairgrounds is doing to re- orient its activities responds positively to concerns expressed by adjacent neighborhoods. When the Commission originally heard this request, it sought to have the funds used to leverage additional financial support. The proposal addresses this request of the Commission on a one-to- one matching basis. Given the positive community wide benefits of this proposal, the responsiveness to the Commission’s leveraging request, and the lack of competing proposals from other parts of the community, the staff recommends a favorable response to the request. FISCAL EFFECTS: The big box economic development fund will have a remaining uncommitted balance of $82,000 after the Lowe’s funds are received. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _________________________________ ____________________________ Ron Brey, Assistant City Manager Chris A. Kukulski, City Manager 128 Attachments: Plan and letter from Gallatin Ice Foundation Report compiled on: 10/4/06 129 131 132 133 134 135