HomeMy WebLinkAboutResolution 5353 Allocating CILP - Burke Park Peets Hill
RESOLUTION 5353
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, APPROVING THE BURKE PARK/PEETS HILL EXPANSION AND
IMPROVEMENT PROJECT INCLUDING ALLOCATION OF CASH-IN-LIEU OF
PARKLAND FUNDS FOR ACQUISITION OF LAND ADJACENT TO BURKE PARK
AND AUTHROZING THE CITY MANAGER AND CITY ATTORNEY TO TAKE ALL
STEPS NECESSARY TO PURCHASE THE LAND ASSOCIATED WITH THE PROJECT
WHEREAS, Gallatin Valley Land Trust (GVLT) submitted a proposal for the City to
expand and develop Burke Park through a 12-acre property acquisition and trail expansion and
improvement project; and
WHEREAS, the total expected project cost is $1,624,728 including Phase I land
acquisition costs of $1,326,025 and phase II improvement costs totaling $298,703;
WHEREAS, GVLT requests that the City allocate $800,000 toward the Phase I land
acquisition costs; and
WHEREAS, GVLT will provide $824,728 of funding toward the remaining Phase I and
Phase II costs; and
WHEREAS, the city-wide cash-in-lieu of parkland dedication fund balance is currently
$891,210.65; and
WHEREAS, Section 38.420.030 (F.) of the Bozeman Municipal Code, (“Cash Donation
in lieu of Land Dedication”) specifies criteria for which these funds may be utilized; and
WHEREAS, the Recreation and Parks Advisory Board at their special meeting on
November 4, 2021 unanimously passed a motion recommending that the Commission approve the
project and immediate allocation of $485,000 from the cash-in-lieu of parkland dedication account
to the land acquisition; and
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WHEREAS, the Recreation and Parks Advisory Board recommended a two-year period
to provide the remaining $315,000 plus financing costs for the land acquisition to allow staff time
to find additional funding sources such as grants; and
WHEREAS, GVLT has agreed to finance the remaining $315,000, plus financing costs,
for a period of up to two years; and
WHEREAS, a known source of funding must be provided for security of the remaining
$315,000 plus finance costs; and
WHEREAS, GVLT has provided the City with a current appraisal of the property and
the purchase price of the property ($1,225,000) is below the appraised value ($1,400,000); and
WHEREAS, Chapter 1.8 of the Parks, Recreation, Open Space and Trails Plan
(“PROST Plan”) establishes procedures for amending individual park master plans; and
WHEREAS, the PROST Plan further establishes guidelines for park and trail location,
design, and recreational facilities; and
WHEREAS, the existing Burke Park Master Plan indicates that acquisition of adjacent
land to the south would be desirable; and
WHEREAS, the conceptual improvements to Burke Park as outlined in the project
proposal, to include trail expansion and improvements, overlook, and gathering spaces, will be
further developed with the Parks and Recreation Department;
WHEREAS, the City Commission finds purchasing the property through assignment by
the Gallatin Valley Land Trust (GVLT) to the City of GVLT’s existing purchase and sale
agreement with the current owner is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana,
Section 1 – Authorize Cash-in-lieu for the Project
The Burke Park/Peets Hill Expansion and Improvement Project will serve the entire
City of Bozeman thus meeting the requirements of Section 38.420.030 (F.) of the Bozeman
Municipal Code for use of cash donations from the city-wide fund.
Expansion and improvement of Burke Park as proposed through the acquisition of two
contiguous parcels will allow the expansion of the trail network, increase the amount of parkland
frontage on a public right-of-way, retain a prominent landscape feature with high visibility as
public land, improve accessibility for mobile assist devices, and provide an attractive gathering
and donor-recognition area within a relatively undeveloped park.
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The City will authorize the use of $485,000 of funding from the cash-in-lieu of
parkland dedication fund and will accept the remaining $740,000 of funding from GVLT to
complete the purchase (this does not include an additional $60,000 that GVLT has already spent
on due diligence costs, which puts GVLT’s total commitment at $800,000). The City will also
allocate up to $315,000 plus financing costs of additional cash-in-lieu of parkland funding to be
paid to GVLT within two years of the effective date of this Resolution. The $315,000, plus loan
origination fees and an annualized interest rate based on the prime rate + 0.5%, with no pre-
payment penalty, which is not expected to exceed $30,000, shall be considered appropriated by
the City until other funding sources are secured for this project. The result of this project is that
the balance in the cash-in-lieu parkland fund is $61,210.65 until project funding or additional
cash-in-lieu of parkland dedication is received.
Section 2 – Authorizing the City Manager and City Attorney to Complete the
Land Acquisition
The City Manager and City Attorney are authorized to complete the necessary steps to
acquire the new parcel and resolve any issues associated with the purchase, including an
assignment agreement of GVLT’s Purchase and Sale Agreement to enable the City to acquire the
Property as the Buyer on January 18, 2022. The City will accept from GVLT the reassignment
of the appraisal and the buy-sell agreement and proceed with the purchase of the properties for
$1,225,000 using $740,000 of GVLT funding and $485,000 from the cash-in-lieu of parkland
dedication fund. The City Manager is authorized to enter into an agreement with GVLT for
bridge financing of the remaining City portion of the project ($315,000 plus financing costs as
set forth above) to be paid within two years.
The City Manager is authorized to enter into an agreement with the adjacent
landowner, a member of the selling entity, to resolve encroachment issues within a reasonable
timeframe.
The City will resolve any other issues arising from the purchase of the properties in a
timely manner, including but not limited to annexation into the City as needed and amendment to
the City’s zoning map to designate the property as PLI - Public Lands and Institutions, and park
master plan amendment.
After closing, staff will negotiate and prepare for City Commission consent agenda a
Memorandum of Understanding or Use License with GVLT for completion of site
improvements, donor recognition and public infrastructure development at GVLT’s cost, in
accordance with City standards and requirements.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 14th day of December, 2021.
___________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
________________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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