On November 14, 2016, the City Council approved a Pre-Development Memorandum of Understanding (MOU) with MontDevCo II, regarding development of the One Big Sky Center (OBSC) project.  The Council approved Amendment #1 in June 2017 and Amendment #2 on July 24, 2017 that extended the MOU until December 11, 2017 and added a new development partner, Landmark LLC/Hammes Co.  Landmark/Hammes will present its development plan at the December 4 work session and will ask the Council to extend the MOU again or will propose a new MOU that will move the project toward a development agreement.  

City Council may:

• Approve the proposed MOU; or
• Disapprove it and terminate negotiations.

There is a financial impact from approving a new agreement or extending the current MOU termination date, but the outlay depends on what Landmark and the City Council ultimately approve..  Continuing negotiations will require staff time and may require consultant assistance, such as from financial advisors or bond counsel.  The total amount of public financing for the proposed OBSC project will be determined only if the City continues negotiating a project development agreement

Staff recommends that the City Council approve an MOU that directs staff to negotiate a development agreement for the OBSC project.  A development agreement that commits City funds will require separate City Council action.