HomeMy WebLinkAbout15- The Lakes at Valley West, Bozeman LLC Impact Fee Offer Agreement CITY OF BOZEMAN IMPACT FEE OFFER AGREEMENT
This City of Bozeman Impact Fee Offer Agreement ("Agreement") is executed by and between
The Lakes at Valley West, Bozeman, LLC, a Montana limited liability company (hereinafter
"LVWB"), and the City of Bozeman,Montana (hereinafter"the City").
WHEREAS, the City has offered transportation system impact fees in exchange for
constructing approximately 4,000 linear feet of Durston Road, from Cottonwood Road to the
west City limits, to a minor arterial standard; approximately 1,350 linear feet of Laurel Parkway
south from its intersection Durston Road to a collector standard; and a traffic signal at the
Durston Road/Cottonwood Road intersection.
WHEREAS, the impact fee program is governed by Sections 2.06.1600 through
2.06.1700, Bozeman Municipal Code, and all actions must comply with the standards and
procedures of that text; and
WHEREAS, the impact fee offer contemplated by this Agreement complies with the
required criteria of the Bozeman Municipal Code; and
WHEREAS, the approval of the impact fee offer is subject to the following four (4)
requirements, as set forth in more detail in this Agreement:
1. The impact fees will be paid by check as a single amount for each of the three separate
projects: Durston Road, Laurel Parkway, and the Durston Road/Cottonwood Road
intersection.
2. An engineer's estimate of project costs has been provided and results in a preliminary
estimate of impact fee use of$1,488,185. A breakdown of the estimated impact fee use
for each specific project is as follows:
Durston Road: $944,195
Laurel Parkway: $304,390
Durston Road/Cottonwood Road Intersection: $239,600
i
A final determination of impact fee use will be determined upon completion and
acceptance of the work.
3. The check will not be issued until the construction has been completed, the work
accepted by the City, and the final costs including evidence of those costs provided to and
accepted by the City for the specific project for which the impact fees are being
requested.
4. The applicant shall agree in writing to the above listed conditions of approval as set forth
in this Agreement; and
Page 1 of 8
WHEREAS, the portions of Durston Road, Laurel Parkway, and the Durston
Road/Cottonwood Road intersection described in this Agreement are currently included in the
City's Capital Improvement Plan for impact fees; and
WHEREAS, the City and LVWB have reached an agreement to share the cost of design
and construction of certain roadway improvements to portions of Durston Road, Laurel Parkway,
and the Durston Road/Cottonwood Road intersection and desire to set forth the terms of their
agreement in writing.
NOW, THEREFORE, BE IT HEREBY KNOWN, in consideration of the mutual
promises and covenants contained herein, the receipt and sufficiency of which are hereby
acknowledged, LVWB and the City agree as follows:
1. Incorporation: The foregoing recitals of this Agreement are contractual and are hereby
incorporated by reference.
2. The Project: The project contemplated by this Agreement (the "Project") consists of
roadway improvements to the portions of Durston Road, Laurel Parkway, and the
Durston Road/Cottonwood Road intersection shown in the Construction Proposal
attached as Exhibit 1. The Project limits for each specific project are also depicted on
Exhibit 1. The improvements covered by this Agreement will consist of the following:
Durston Road:
i
a. installation of curb and gutter on the south side of Durston Road;
b. widening the south side of Durston Road to match the existing section on the
north side of Durston Road;
c. construction of a 6' wide sidewalk on the south side of Durston Road;
d. installation of street lights on the south side of Durston Road; i
e. installation of signage and striping of roadway;
£ construction of drainage improvements and installation of culvert extensions
at existing culvert locations; and
g. Relocating the existing ditch along Bronken Park.
Laurel Parkway:
h. installation of curb and gutter, including median;
i. construction of the road surface;
j. installation of 6' sidewalks on both sides of the roadway;
k. installation of streetlights; and
1. installation of signage and striping of roadway.
Page 2 of 8
i
Durston Road/Cottonwood Road Intersection:
in. install a traffic signal as depicted on the attached exhibit entitled "Durston
Road and Cottonwood Road Traffic Signal."
3. Anticipated Project Cost: The anticipated total cost of the Project is $2,310,450.00. An
itemization of anticipated Project costs is provided with the attached Exhibit 1.
a. Allocation of Anticipated Project Costs: The City and LVWB have agreed to
allocate the anticipated Project costs as follows:
Durston Road Laurel Parkway Intersection Total
Est. Developer Funding: $ 300,538 $ 343,530 $ 103,400 $ 747,468
Est. Impact Fee Funding: $ 944,195 $ 304,390 $ 239,600 $1,488,185
Est. Additional Funding: $ 74,797 $ 0 $ 0 $ 74,797
$1,319,530 $ 647,920 $ 343,000 $2,310,450
4. Additional Funding Sources: The parties are working cooperatively to determine the
source(s) of the additional $74,797 the parties believe is necessary to complete the
Project. These costs are primarily associated with the sidewalk fronting Durston Road
along Bronken Park. Possible funding sources include the use of cash-in-lieu of park
funds, open space and parks funds to fund sidewalks, or street maintenance assessment
funds or a combination of these sources. Other sources may also be available.
5. Variations in Project Costs: The Project costs may be less than or more than originally
estimated, and the Project itemization attached with Exhibit 1 includes a contingency. If
the actual Project costs are less than originally estimated, (a) the City will pay the amount
of actual Project costs incurred which are eligible for impact fees and (b) LVWB will pay
the amount of actual Project costs incurred which are not eligible for impact fees. If the
actual Project costs exceed the original estimate, (i)the City will pay the amount of actual
Project costs incurred which are eligible for impact fees, up to the amount allocated for
the Project in the City's Transportation Impact Fee Capital Improvements Plan, and (ii)
LVWB will pay (A) the amount of actual Project costs incurred which are not eligible for
impact fees plus (B)the amount of any actual Project costs incurred which are eligible for
impact fees but solely to the extent, and in the amount that, such eligible Project costs
exceed the amount allocated for the Project in the City's Transportation Impact Fee
Capital Improvements Plan.
6. Contracts for Design and Construction of Project: LVWB agrees to assume
responsibility for retaining the engineer to complete the design of all portions of the
Project undertaken by LVWB and for retaining a contractor to complete construction of
Page 3 of 8
all portions of the Project undertaken by LVWB. LVWB will have sole authority and
responsibility for selection and hiring of the engineer and contractor. As a condition to
receiving reimbursement under this Agreement, LVWB will cause Project plans,
including engineering drawings, conforming to Exhibit 1 and City roadway standards to
be prepared and submitted to the City for approval. If such plans meet City requirements
and are otherwise acceptable to the City, the City shall approve such plans in writing.
Once approved by the City, such plans shall be referred to as the "Approved Plans."
7. Project Funding and Reimbursement: The City will not be required to reimburse LVWB
for the City's portion of the Project costs until construction of a specific project has been
completed, that specific project has been accepted by the City, and final costs (including
evidence of those costs) is provided to the City. In furtherance of the foregoing, the City
may inspect the specific project at reasonable times and the City agrees that construction
of the specific project will be complete and the City will accept the specific project upon
receipt by the City of(a) certification by the project engineer retained by LVWB that the
specific project is substantially complete in accordance with the Approved Plans, and (b)
a calculation of the final costs for the specific project and evidence thereof reasonably
satisfactory to the City. The City will pay LVWB, by single check, the City's portion of
each specific project costs, as set forth in Paragraphs 4 and 6 above, no later than thirty
(30) days following satisfaction of the conditions set forth in (a) and (b) above.
8. Building Permits: Upon approval and acceptance of the Preliminary Construction
Proposal (as set forth in subparagraphs 1-3 below) for improvements to Durston Road,
Laurel Parkway, and the Durston Road/Cottonwood Road intersection, a portion of the
building permits for The Lakes at Valley West and the Traditions Phase 11 Subdivisions
will be issued prior to completion of the mitigation measures; in addition to those
building permits approved for concurrent construction for the Lakes at Valley West.
Under the following conditions building permits for up to 30 dwellings will be issued to
the Lakes at Valley West subdivision and building permits for up to 26 dwellings will be
issued to the Traditions Phase II.
The following items will be required prior to the release of these building permits. These
are in addition to the terms of the PUD concurrent construction process for the Lakes at
Valley West.
1. Plan and specification approval of the Durston Road/Cottonwood Road signal,
Durston Road Improvements, and Laurel Parkway Improvements.
2. A construction contract for completion of the improvements executed and in place.
3. Completion of or a financial guarantee and improvements agreement for the signal
improvements to the Durston Road/Cottonwood Road Intersection.
Page 4 of 8
9. Timing: For purposes of the building permits referenced in Section 8 above, the
improvements for Durston Road/Cottonwood Road signal, Durston Road, and Laurel
Parkway shall be constructed and completed not later than December 31, 2015. For the
avoidance of doubt, this deadline shall not impact LVWB's right to receive
reimbursement for the City's portion of the Project costs as set forth in Section 7 above.
10. Amendment and Waiver: This Agreement may only be amended or modified by a
written agreement signed by the City and LVWB. No waiver by any party hereto of any
provision or breach of, or default under, this Agreement shall be deemed to have been
made unless the same is in writing and signed and delivered by the party charged with
making the waiver, and no waiver of any provision or breach of, or default under, this
Agreement shall be deemed a waiver of any other provision or breach of, or default
under, this Agreement.
11. Representations and Warranties: Each party represents and warrants to the other that:
a. It is fully authorized and legally empowered to execute and perform this
Agreement, and it has obtained all approvals and authorizations needed to
execute and perform this Agreement.
b. Execution of this Agreement does not violate any agreement, bylaw, statute or
ordinance binding on or applicable to such party.
c. The individual executing this Agreement on behalf of the party is duly
authorized and empowered to execute this Agreement for the party, and
following execution and delivery by both parties this Agreement will be a
legally binding obligation of the party, enforceable against the party in
accordance with its terms.
12. Choice of Law and Venue: This Agreement shall be governed by, and interpreted under,
Montana Law, without regard to conflict of law principles. Mandatory and exclusive
jurisdiction for any dispute shall be in the Eighteenth Judicial District Court, Gallatin
County,Montana.
13. Severability: Each provision of this Agreement shall be considered severable and if for
any reason any provision which is not essential to the effectuation of the basic intent of
this Agreement is determined to be invalid, such invalidity shall not impair the operation
of or effect those provisions of this Agreement which are valid.
[Signature page follows]
Page 5 of 8
Dated this day of , 2015
THE LAKES AT VALLEY WEST,BOZEMAN,LLC
By: JSKHGK Investments 1, L.L.C.
Its: Manager
t
B
Dated this 2 6—day of u 2 , 2015
CITY OF BOZEMAN
By: Chris Kukulski, City Manager
Page 6 of 8
Exhibit 1 to the Impact Fee Agreement between the Lakes at Valley West and the City of Bozeman
Preliminary Construction Proposal—Option 1
The Lakes at Valley West—Durston Road and Laurel Parkway Street Improvements
The Project: To construct Durston Road and Laurel Parkway to full City of Bozeman Standards including
the installation of a traffic signal at the Cottonwood Road/Durston Road intersection. Durston Road is
classified as a Minor Arterial, Laurel Parkway is classified as a Collector. Typical Sections for each of
these roadways are attached with this proposal.
At the November 17, 2014 City Commission meeting transportation improvements were discussed in
detail. A major aspect of the discussion was the need to complete road improvements as the City grows
and the City's desire to avoid partial or intermittent improvements to roadways within the City. The
existing Durston Road between Fowler Avenue and Ferguson Avenue is a prime example. Durston Road
is complete to the east of Fowler and West of Ferguson but in many places in between is partially
constructed or simply constructed to a county road standard. City Staff and the commission discussed
efforts to avoid this situation in the future.
Recent proposals for development on the west side of Bozeman are straining the Cottonwood/Durston
intersection. According to the Traffic Study prepared by Morrison-Maierle, Inc. for"The Lakes at Valley
West",this intersection is currently operating at a level of service D. Proposed development to be
served by the intersection will result in the level of service F in the near future. This proposal provides a
plan to effectively mitigate the effects of development on the level of service to maintain acceptable
levels of service as development occurs.
This proposal provides a plan and funding mechanism to avoid the construction of partial or intermittent
improvements to both Durston Road and Laurel Parkway as the City grows to the west of Cottonwood
Road and maintain acceptable levels of service at the Cottonwood Road/Durston Road intersection.
Durston Road and Laurel Parkway will be constructed to City Standards avoiding the partial or
intermittent roadway construction that the City is trying to avoid.
Proposed Improvements:
Durston Road: The road section is illustrated on the attached Durston Road Minor Arterial Section. The
construction limits will be from Cottonwood Road on the east and the city limits line on the west as
illustrated on Figure 1—Durston Road and Laurel Parkway Improvements.
Improvements: - Curb and Gutter on the south side of Durston Road
- Widening the south side of Durston Road to match the existing road section
to the east of Cottonwood Road.
- A 6' wide sidewalk on the south side of Durston Road.
- Street Lights as needed on the south side of Durston Road.
- Signing and Striping.
- Drainage improvements and culvert extensions at existing culvert locations.
- Relocating the existing ditch along Bronken Park to accommodate the
widening.
Durston/Cottonwood Signal: A signal will be installed at the Durston Road/Cottonwood Road
intersection as depicted on the exhibit entitled "Durston Road and Cottonwood Road Traffic Signal".
The east and west legs of the intersection, on Durston Road,will be complete with this project. The
north and south legs, on Cottonwood Road will remain in the existing configuration to be completed by
the City of Bozeman with a future project addressing the widening of Cottonwood Road. The signal
equipment, poles, and mast arms will be placed at temporary locations until the widening but the design
will allow them to be used in the future to the greatest extent possible.
Laurel Parkway: The road section is illustrated on the attached Laurel Parkway Collector Street
Section. The construction limits will be from Durston Road to the south boundary of The Lakes at Valley
West as illustrated on Figure 3—Durston Road and Laurel Parkway Street Improvements.
Improvements: - Curb Gutter including median.
- Construction of Road Surface.
- Sidewalks on both sides of roadway.
- Street Lights.
- Signing and Striping.
- Drainage Improvements.
Project Funding: A funding proposal is provided on the attached "Project Funding Proposal—The Lakes
at Valley West—Roadway Improvements."
This funding scenario is based on providing a method to finance the signalization of the
Durston/Cottonwood intersection. Currently there has been a significant level of development
approved in the area without any contribution to the intersection. This previously approved level of
development,without additional projects, is enough to drop the level of service to F in the short term.
It will be difficult, if not impossible,to collect a contribution from previously approved projects moving
forward. This funding proposal,to some degree, addresses this situation.
The total cost of the project is estimated to be$2,310,450. The improvements will be completed by the
developer through a combination of private funds and city funds as follows!
Durston/Cottonwood
Durston Road Laurel Parkway Intersection Total
Estimated Developer Funding: $ 300,538 $ 343,530 $ 103,400 $ 747,468
Estimated Impact Fee Funding: $ 944,195 $ 304,390 $ 239,600 $1,488,185
Estimated Additional Funding: 74,797 0 $0 74,797
$1,319,530 $ 647,920 $ 343,000 $2,310,450
The Additional Funding is anticipated to be provided by a combination city funding. It is primarily
associated with the sidewalk fronting Durston Road along Bronken Park. It needs to be noted that this
amount is well within the contingency provided for the overall project. Possible sources to make up the
difference, if the funds are needed, include use of cash-in-lieu of parks funds collected by the City for
trails, open space and parks funds to fund sidewalks and the relocation of the existing ditch along
Bronken Park, or street maintenance assessment funds. Other sources may also be available.
Laurel Parkway is currently included in the Capital Improvement Plan for Impact Fees for the 2016 fiscal
year. Durston Road was recently added to the Capital Improvement Plan for Impact Fees for the
2015/2016 fiscal years. At this time The City of Bozeman is committing 60%of the funds to design,
finance, and construct the improvements using impact fees. Full funding for the intersection is available
in fiscal year 2019. In other words,the City of Bozeman will be able to fund 100%of the cost of the
intersection in 2019.
The developer is requesting that reimbursement be by cash payment upon completion of the project
and acceptance by the City. Payment request will be submitted with required supporting
documentation. Payments will be made according to the proportionate share of the actual work
completed according to the agreed upon schedule of values.
This proposal was made to City Staff and the City Commission on December 8, 2014 at the regularly
scheduled City Commission meeting in preliminary form. The addition of this section of Durston Road to
the Capital Improvements Plan for Impact Fees was supported by both staff and the City Commission
paving the way to move the proposal to the next phase of planning and eventually construction. This is
an updated version of the original plan that has evolved based on the cooperative efforts of City Staff
and Kilday&Stratton, Inc. the developers of The Lakes at Valley West.
Moving Forward
The first step in moving the project forward is to finalize a plan to present to the City Commission for
approval. The plan will need to be submitted prior to the commission review of The Lakes at Valley
West to allow the Traditions to move forward as proposed.
The following steps present a path to move the project forward. The goal is to construct the
improvements during the spring and summer of 2015 concurrently with the first two phases of"The
Lakes at Valley West".
Impact Fee Credit Application: The first step will be to submit an Impact Fee Credit Application to the
City of Bozeman. The application has been submitted and is included in this section of the Preliminary
Plat Application for"The Lakes at Valley West."
Impact Fee Agreement: A draft of this agreement is included in this section and has been submitted to
the City of Bozeman for review.
Preliminary Planning and Design/Design Report: Preliminary Plans and design report will be prepared
immediately following approval of the Impact Fee Agreement. A design contract has been executed
with Morrison-Maierle, Inc. and plan preparation is underway. Kilday&Stratton, Inc. in conjunction
with Morrison-Maierle, Inc. is providing preliminary planning and design report services.
Final Construction Plans: Prepared based on preliminary plan/design report review comments.
Construction: We propose to start construction June 1, 2015 and plan a 60 day construction schedule to
complete Durston Road. Laurel Parkway will be completed in conjunction with Phases 1 and 2 of The
Lakes at Valley West. Construction management will be provided by Kilday&Stratton, Inc. A contract
has been executed with Morrison-Maierle, Inc.to provide construction engineering services.
Planning and Engineering: A budget has been established for engineering, planning, and management
services. The following consultants will be providing these services:
Planning and Management: Kilday&Stratton, Inc.
Planning, Engineering Design and Construction Engineering: Morrison-Maierle, Inc.
Wetlands Consulting/Permits: Vaughn Environmental
Final Plat and Building Permits:
The intersection of Cottonwood and Durston is currently operating at a Level of Service
D. Improvements are required per the Municipal Code to improve the Level of Service to C. In
order to reach that level of service through the year 2018 a four-way stop controlled intersection
would be adequate. For longer term needs a traffic signal is required. It is understood that a signal
will be required for the development and the design is in process. The concern is that the time to
complete the signal improvements is much greater than that of typical subdivision
improvements. This is primarily due to the procurement of signal poles and mast arms as they are
not readily available and cannot be ordered until the design work is fully completed. This delay
causes problems in terms of being able to obtain building permits in a timely fashion. As a way to
mitigate this problem we request the following:
A portion of the building permits for The Lakes and the Traditions will be issued with the
implementation of a four-way stop controlled intersection while restricting the remaining building
permits until the signal is operational. This will allow for the applicants to move forward in a timely
manner but also provide full incentive for the applicant to complete the signal project in a timely
fashion. It is proposed that 30 building permits be issued for the Lakes and 26 permits for the
traditions.
The following items will be required prior to the release of the initial building permits (outside of
PUD concurrent construction process):
1. Plan and specification approval of the signal and subdivision infrastructure.
2. Construction of an interim four-way stop which will include the completion of the geometric
improvements to the intersection to allow for east and west left hand turn lanes.
3. Completion of or a financial guarantee and improvements agreement for all other subdivision
improvements
4. Financial guarantee and improvements agreement for the signal
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