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HomeMy WebLinkAbout08-04-15 NURB min NURB Meeting – August 4, 2015 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, August 4, 2015 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, August 4, 2015, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Tom Noble, Chair Daniel Doehring Erik Nelson Robert Pavlic Jeanne Wesley-Wiese (arrived at 6:35 p.m.) Non-Voting Members: John Usher Commissioner Liaison: I-Ho Pomeroy (arrived at 6:45 p.m.) Staff: Brit Fontenot, Economic Development Director Allyson Brekke, Associate Planner Robin Sullivan, Recording Secretary Guests: Chris Nixon, 719 North Wallace Avenue David Chambers, 224 North Church Avenue Dale Martin, 305 South 7th Avenue John How, KLJ Engineering Dustin Johnson, KLJ Engineering Matt Jones, BNSF Jim Lewis, MRL Call to Order – Chair Tom Noble called the meeting to order at 6:33 p.m. Public Comment – No comment was received under this agenda item. Consent Items – Approve minutes from July 7, 2015 meeting. It was moved by Erik Nelson, seconded by Bob Pavlic, that the minutes of the meeting of July 7, 2015, be approved as submitted. The motion carried on a 4-0 vote. NURB Meeting – August 4, 2015 2 Discussion/Action Items – Discussion with Matt Jones, Burlington-Northern Santa Fe (BNSF), and Jim Lewis, Montana Rail Link (MRL), regarding various railroad issues. Chair Noble noted that, over the past nine years, there have been several unsuccessful attempts to contact representatives of the railroad regarding interest in the depot and the railroad property around it. He characterized this as a watershed moment and thanked Mr. Jones and Mr. Lewis for attending this meeting. Jim Lewis, Chief Sales/Marketing and Information Officer for MRL, reviewed background information on MRL, noting it operates 937 route miles of rail from just east of Billings to Sandpoint, Idaho, and short spur lines off that main line; and provides rail service to Billings, Bozeman, Helena and Missoula. Matt Jones, local employee of BNSF, stated that BNSF operates routes from east of Billings to Glendive along the old Northern Pacific route as well as branch lines off that main line. Also, BNSF operates the northern rail line, across what is typically referred to as the hi-line. Jim Lewis stated MRL has approximately 100 employees and 33 customers in the Bozeman area, and its operations generate approximately $750,000 annually to the community. He stated they operate across two mountains passes, the Bozeman Hill and the continental divide outside Helena; and they keep helper locomotives close to push trains across the passes as needed. Mr. Lewis provided statistical data on the number of carloads and a breakdown of traffic across the line. That information revealed the number of trains through Bozeman has decreased from 17.8 trains per day in 2014 to 14.6 trains per day during Quarter 2 of 2015. The typical coal train contains 125 cars, and the number of coal trains through Bozeman per day has decreased from 6.3 in 2014 to 5.0 in Quarter 2 of 2015. State regulations require that crossings not be blocked for more than 15 minutes; MRL’s internal goals set that standard at 10 minutes; and a review of statistical information Belgrade revealed the crossings were closed an average of 6 minutes 48 seconds last year. Jim Lewis stated that safety is extremely important to the company, and their current rates of injury and accidents are well below industry standards. He acknowledged that ten years ago, MRL’s accident rates were much higher and, in an effort to lower those rates, employees were sent to learn from a railroad line that had a top rated safety record. He noted that emergency response has also become a top priority, and 408 first responders have been trained to date, with additional training being provided this year. Mr. Lewis turned his attention to the local depot, noting that in 2014, the company updated the depot by replacing the roof at a cost of $45,000. A portion of the building is leased for storage; and any lease opportunities are to be submitted to Joe Gentri, in the real estate division, at telephone (406) 523-1374. All other questions are to be submitted to him at telephone (406) 523- 1400. Responding to Chair Noble, Mr. Lewis cautioned that re-use of the depot as a restaurant or micro-brewery will result in considerable expense for upgrades to the lessee, including a fence NURB Meeting – August 4, 2015 3 that runs between the depot and the railroad tracks and extends beyond the depot itself. He stated that if a lessee is willing to make such an investment, the company is willing to look at a lease. Responding to the Chair, Mr. Lewis stated that the brewery in the yard in Missoula is not as close to the main railroad tracks as the depot in Bozeman, and it already has some natural barriers. He also noted that train traffic through Bozeman tends to be traveling faster than through Missoula, particularly those trains traveling westward. Jeanne Wesley-Wiese stated this Board discussed the possibility of constructing a fence several years ago, but had a hard time trying to work with the railroad. She noted that this Board is interested in a more aesthetic or artistic fence than the standard chain link fence one typically sees. Erik Nelson noted that this Board functions as a catalyst for redevelopment in the area. He then stated that when the fence was discussed a couple years ago, the Board was discouraged by the level of insurance and indemnification required. Jim Lewis responded that the efforts to ensure adequate levels of insurance and indemnification for all agreements have been increased since that time. Erik Nelson stated he feels it is appropriate for a lessee to provide indemnification in the event a patron goes over the fence; however, he does not feel that indemnifying the railroad company’s employees working on the tracks is. He then asked if Joe Gentri is the best person in the company to talk to about indemnification and leasing railroad property; Mr. Lewis responded that he is. Responding to Chair Noble, Matt Jones stated that BNSF has standard lease terms. He noted that the company typically does not approve a longer-term lease; however, there are exceptions and there is also a revocability provision in the standard lease. Responding to Jeanne Wesley-Wiese, Mr. Lewis stated that depots in other communities are preserved through private investment. He then noted that MRL does not own the depot in Livingston; rather, it has been purchased by a private entity. John How, KLJ Engineering, noted this Board is now working on a timeframe where its tax increment funding, and possibly the life of the district, is nearing expiration. He asked if the railroad is willing to sell the depot. Matt Jones stated the railroad property is leased to MRL, so both companies would have to work together. He then cautioned that BNSF does not handle its own real estate deals; rather, a separate company is involved. NURB Meeting – August 4, 2015 4 Jim Lewis asked that the Board combine all of its questions and send them to him. He will then talk them to the executive leadership and get answers quickly. He acknowledged that the process is much easier for MRL than it is for BNSF. Jeanne Wesley-Wiese voiced concern about the pedestrian crossing on North Wallace Avenue/L Street and stressed the importance of ensuring pedestrian safety. Jim Lewis responded by asking who owns the roadway; Erik Nelson stated the City does. He then stated the Board has been told the road right-of-way at the crossing is 30 to 40 feet wide; and that is not wide enough to accommodate the vehicle, bicycle and pedestrian traffic that will be generated by development of the new Story Mill Park as well as a new trail connection in the Main Street to the Mountains trail system. He asked if it would be possible to widen the street right-of-way to accommodate pedestrians at the railroad tracks. Jim Lewis stated that MRL’s engineering department works with Cities, Counties and the State on crossings. He asked that this Board compile the questions they need answered and send them to him. He will forward them to the engineering department and provide responses back to this Board. He concluded by stating that improvement of the widened crossing would be up to the owner of the roadway. Matt Jones stated a similar issue arose in another community; and the solution was to move the pedestrian pathway outside the gates for the vehicular crossing and not gate it. Responding to John Usher, Jim Lewis stated that pedestrian underpasses are expensive, noting that construction of the underpass in Helena is estimated at $21 million. He also cautioned that those facilities are expensive to maintain. He then stated that sky bridges in both Billings and Missoula cost approximately $1.5 million to construct. Responding to Bob Pavlic, Jim Lewis stated that Billings has funded the approximately $1 million cost of installing each quiet crossing in that community. They took one year to install and have had few maintenance issues. He stated the process for installing such crossings starts with an application to the Federal Railroad Administration (FRA). He stressed that the application must come from either a City or a County; and a consultant study may be required. He then stated that Helena has submitted a request for quiet crossings, and it estimated that each of its crossings will cost $400,000 because the amount of pedestrian traffic is much lower. He indicated that the best brochure he has found on this issue is from the New Jersey Planning Authority, and gave a copy of that brochure to Economic Development Director Brit Fontenot. Jim Lewis read the FRA standards for horn blowing when approaching railroad crossings and stressed that an engineer must estimate the amount of time it will take him to reach a crossing when determining when to start blowing the horn. Matt Jones stated he gets a fair number of calls from Billings residents because of trains blowing their horns in a quiet zone. He noted that when people are working around the tracks, trains are required to blow their horns. NURB Meeting – August 4, 2015 5 Jim Lewis stated that in Helena, the FRA is recommending safety apparatus at some of the crossings but not at all of them. He noted, however, that MRL recommends the installation of safety devices at all crossings. Responding to comments from David Chambers, President of NENA, Jim Lewis stated the depot in Billings is under private ownership. As a result, he cannot address how it is operated. Responding to questions from the Board, both Jim Lewis and Matt Jones confirmed the best option for long-term use of the building would be to submit a proposal to purchase the depot and lease the land. Economic Development Director Fontenot stated it appears the re-uses that work the best are those where the depot is in private ownership. Matt Jones stated he occasionally gets questions because people are confused about the relationship between the two companies. He noted that, while MRL leases much of the BNSF property in Bozeman, it does not lease all of the BNSF property. He then stated that BNSF has two employees in Bozeman, servicing Montana and Wyoming. The Board thanked Mr. Lewis and Mr. Jones for their presentation. Recommendation for approval of three-year term contract with KLJ Engineering. Economic Development Director Brit Fontenot noted that the proposed contract with KLJ Engineering was e-mailed to Board members for their review prior to this meeting. He stated this is the City’s standard engineering services agreement and, if this Board recommends approval, it will be placed on the agenda for the August 17 City Commission meeting. John How, KLJ Engineering, stated that the contract is written so that if the company is not performing to expectations, the Board can terminate it. It was moved by Tom Noble, seconded by Erik Nelson, that the Board recommend to the Commission approval of the three-year contract with KLJ Engineering. The motion carried on a 5-0 vote. John How announced that an employee of KLJ Engineering is working on the Helena quiet zone; and the firm is working on getting on BNSF’s approved list for engineering services. He stressed that BNSF will only choose those on the preferred list. He then stated that the structural division in the Great Falls office is working on getting on the MRL preferred list for rail work. Update regarding Neighborhood Conservation Overlay Districts. John How, KLJ Engineering, stated he is currently analyzing the overlay districts in the community. He distributed a memo dated August 3, noting a color map is on the back shows the boundaries of the overlay districts as well as the various historic districts. He reported that he is currently meeting with neighborhoods and the various districts, and briefly highlighted his upcoming meetings. He then stated that Page 2 of the memo contains a list of five questions on which he NURB Meeting – August 4, 2015 6 would like to receive input from the Board and suggested that, if the Board wishes, the discussion could be delayed to the September 1 meeting. Chair Noble voiced his support for delaying discussion on this issue until the September 1 meeting, noting it will give Board members a chance to review the questions and consider responses. Erik Nelson stated that, after having worked within the conservation overlay districts, it is his strong belief that it may be better to eliminate the district but centralize the same design effort in the urban renewal boards and historic districts. He characterized the Neighborhood Conservation Overlay Districts as a giant homeowners’ association for the entire city. John How stated he will be meeting with the NorthEast Neighborhood Association next Tuesday evening and will raise these questions with that group. Review of projects in work plan. Recording Secretary Sullivan distributed to the Board a list of the projects contained in this year’s work plan and budget. She suggested that the trails maintenance line be removed from the list of projects and put into a separate maintenance category or listed under administration; the Board asked that it be moved to a new maintenance category. She then stressed that these projects are not listed in any priority order. John How, KLJ Engineering, asked that the Board identify its priority projects. Dustin Johnson, KLJ Engineering, cautioned that underground projects are needed under some of the street projects on this list, so it is important to coordinate those projects so the paving does not occur until the underground infrastructure has been installed. Erik Nelson asked that an item be placed on future agendas to give staff an opportunity to spend 15 or 20 minutes going through the list of projects and providing updates. Chair Noble voiced his agreement and asked that the spreadsheet be revised to include an updates column. Set agenda for September 1, 2015 meeting or cancel meeting. Chair Noble asked that an update on projects be added as a regular item on all future agendas. He also asked that the Neighborhood Conservation Overlay District discussion be placed on the agenda. Chair Noble asked if the Board wishes to identify questions to be forwarded to Jim Lewis for MRL response. Discussion on miscellaneous issues. Erik Nelson noted this Board has set aside monies for engineering services for North Wallace Avenue and asked if that should become a priority for this Board. Responding to questions from Jeanne Wesley-Wiese, Erik Nelson stated an initial straw poll to determine if there is property owner support for a special improvement district has been NURB Meeting – August 4, 2015 7 completed; and that poll revealed significant support. The next step now is to complete the engineering design for street improvements and then proceed through the SID process. Economic Development Director Brit Fontenot stated it is Director of Public Service Woolard’s intent to use the engineering firm selected by this Board for its three-year contract to do the design work for North Wallace Avenue. John How, KLJ Engineering, stated the firm will set up two separate billings for the design so that this district pays only the costs of design within its boundaries and the City pays the remainder of the costs. Responding to comments from John How regarding the railroad crossing on North Wallace Avenue, Erik Nelson noted the best outcome would be for this Board to shepherd approval of the crossing through the process but then get the Story Mill Park project to pay the costs of the crossing upgrade. Chair Noble asked that the railroad crossing be added to the list of projects, under one of the existing line items. Responding to Erik Nelson, Economic Development Director Fontenot stated the Director of Finance has received preliminary appraisal numbers from the Department of Revenue. Once the final numbers have been received, the next step will be to contact Dan Semmens, Dorsey and Whitney, to determine if the issuing of bonds is appropriate at this time. Neighborhood News. Chair Noble noted that review of a development proposal on the last lot on Cottonwood Street is currently underway. Associate Planner Allyson Brekke stated that, while no application has been received, she has heard rumblings of a tenant change in the building located at 624 North Wallace Avenue. She noted it was previously approved as a commercial kitchen/small restaurant but that tenant has not chosen to proceed with the project. Chair Noble noted that the Edgerley property now has a for sale sign on it. Adjournment – 8:13 p.m. There being no further business to come before the Board at this time, Chair Noble adjourned the meeting. Tom Noble, Chair Northeast Urban Renewal Board City of Bozeman