The Empire parking garage will be constructed on the north side of Montana Avenue between North 27th Street and North Broadway. The building consumes an entire half-block and the north side of the building will be adjacent to an alley that runs east/west on that block. There are several overhead and underground utilities that occupy the alley including power, data/telecommunications, and gas. All overhead and some underground utilities need to be relocated before any construction activity can begin on the Empire parking garage. The utility companies have agreed to relocate the utilities to a designated underground alley location. Relocating these utilities underground will allow the existing buildings to be torn down and the new garage constructed while meeting OSHA requirements. It is necessary to pay the utility companies because this relocation is due to a pending development and not their own initiative. The utility companies include Montana Dakota Utilities, Northwestern Energy, Optimum, Integra, Mid-Rivers Telecommunications, Zayo Group, and Century Link. It is necessary to enter into an agreement with these utility companies in order for them to start the relocation. The Northwestern and Optimum agreements were approved by City Council at the December 17, 2012, City Council meeting. The cost for the agreement with Zayo Group is expected to be greater than $50,000, and requires City Council approval.

The Council may:
•Approve the agreement with Zayo Group; or
•Do not approve the agreement, which would require the overhead utilities to be temporarily relocated during demolition or redesign the Empire parking garage so appropriate setbacks from energized utiltiy lines are accounted for, leading to the possible elimination of the proposed sky bridge between the Empire parking garage and the Northern Hotel.

The relocation price from Zayo Group for its fiber optic lines is $68,690.

The agreements with the other utilities will be signed by the City Administrator.

The funds for the utility relocation are budgeted into the cost for the Empire parking garage budget and are estimated to total $800,000.

Staff recommends that Council approve the agreement with Zayo Group to relocate the fiber optic lines for the construction of the Empire parking garage.