HomeMy WebLinkAboutC8. MOU DMC North 7th1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Economic Development Specialist
SUBJECT: Authorize the City Manager to sign a Memorandum of Understanding
(MOU) with DMC Properties, LLC defining project roles and
responsibilities between the parties related to construction for the N. 7th
Lighting and Sidewalk Project
MEETING DATE: November 2, 2015
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to sign the Memorandum of
Understanding with DMC Properties, LLC.
BACKGROUND:
The North Seventh Urban Renewal District (NSURD) is working on a project to enhance
the safety and aesthetics of the North 7th Avenue corridor by installing setback sidewalks
buffered by boulevard, and decorative luminaries. The existing right-of-way along the corridor
will not accommodate a sidewalk setback, so the district has been acquiring public access and
lighting easements from property owners on a voluntary basis for one dollar ($1.00) and for other
valuable consideration. Construction on Phase 2 of the project between Juniper St. and Durston
Rd. has commenced, with construction expected to be complete by the end of 2015. The N. 7th
Lighting and Sidewalk Project has been approved by the City Commission as part of the North
Seventh Urban Renewal District Work Plan and Budget for Fiscal Year 2016.
The parcels owned by DMC Properties, LLC currently include the building housing
Gallatin Valley Furniture Carpet One (GVFC1). The proposed route of the setback sidewalk goes
directly through GVFC1’s existing non-conforming sign and creates complications with
drainage, parking, and the existing approach. The policy goals advanced by the MOU include a
setback sidewalk to enhance pedestrian access, a green boulevard strip, the replacement of large
non-conforming sign with a conforming sign, and the remediation of known drainage issues on
the site. The North Seventh Urban Renewal Board (NSURB) voted at an October 13, 2015
meeting to recommend the approval of the proposed MOU to the City Commission.
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The proposed MOU is the result of extensive negotiations with the property owner and
staff believes the approval of this MOU is necessary to obtain the required easement for the
lighting and sidewalk project.
UNRESOLVED ISSUES:
The total cost of the change order to effectuate the scope of work required by the MOU is
unknown at this time; a change order for this portion of the project was expected if staff was able
to obtain an easement for the property, as the issues – particularly regarding signage – were well
known. Staff is working with our consulting engineer at Morrison-Maierle on a change order that
will be presented to the Commission at a later date. The sign vendor has also not been finally
selected at this time.
ALTERNATIVES: As determined by the Commission.
FISCAL EFFECTS:
The project will be paid for using tax increment funds from the North Seventh Urban
Renewal District. The MOU commits NSURD funds “to include the direct and incidental costs
related to removing the existing private pole sign and installing a new compliant sign with this
project, with a not to exceed (NTE) construction amount of $20,000. Direct and incidental costs
incurred for the private sign work over the agreed NTE amount will be covered by DMC
Properties, LLC at their own expense.”
Costs related to the setback sidewalk, green boulevard strip, and replaced drive approach
will require an expected change order for the project of a yet to be determined amount. A number
of change orders are expected for this project and will likely result in a budget amendment at the
end of the project.
The projected year-end balance for the district, not including any Fiscal Year 2016
revenues, is $917, 205, but will likely be much higher due to lack of progress on the Phase 3 of
the lighting and sidewalk project.
Attachments:
1. MOU between the City of Bozeman and DMC Properties, LLC
Report prepared on October 27, 2015
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