Regular 4.
Regular City Council Meeting
- Meeting Date:
- 07/24/2017
- TITLE
- Amendment #2 to Memorandum of Understanding with Montdevco and Montdevco II, establishing a new termination date of January 8, 2018
- PRESENTED BY:
- Bruce McCandless
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
At its June 26, 2017 meeting, the City Council approved a one month extension of the proposed One Big Sky Center (OBSC) redevelopment project Memorandum of Understanding (MOU). The MOU will terminate on July 31, 2017. without further Council action. The MOU allows City staff to work with the project's development team to produce a Development Agreement for Council consideration, but prohibits any City participation in a competing redevelopment project on the same property while the MOU is in effect.
The development team representatives, including new partner the Hammes Company, attended a special City Council meeting on July 10, 2017, and requested that the City Council extend the project's Memorandum of Understanding (MOU) for a six (6) month term. Council indicated that it wanted to consider this request at its July 24, 2017 meeting. The attached Amendment No. 2 will extend the term of the MOU until January 8, 2018, which is the Council meeting that is closest to the requested 6 month term extension. The Council could approve the extension until December 11, 2017, which is probably the last Council meeting of the year, but this would be a five (5) month extension. The Council could also extend the agreement through October, which is the month in which Hammes Company promised to complete its economic analysis and business plan.
The development team representatives, including new partner the Hammes Company, attended a special City Council meeting on July 10, 2017, and requested that the City Council extend the project's Memorandum of Understanding (MOU) for a six (6) month term. Council indicated that it wanted to consider this request at its July 24, 2017 meeting. The attached Amendment No. 2 will extend the term of the MOU until January 8, 2018, which is the Council meeting that is closest to the requested 6 month term extension. The Council could approve the extension until December 11, 2017, which is probably the last Council meeting of the year, but this would be a five (5) month extension. The Council could also extend the agreement through October, which is the month in which Hammes Company promised to complete its economic analysis and business plan.
ALTERNATIVES ANALYZED
City Council may:
- Approve the developer's request to extend the MOU termination date to January 8, 2018, or;
- Approve extending the MOU termination date to a different date, or;
- Not approve an extension and the MOU will terminate on July 31, 2017.
FINANCIAL IMPACT
There is a small, but unknown financial impact from this action. Staff will commit time to research and in negotiations. Staff or Council may request a background report on the new development team partner, the Hammes Company, which would be conducted by a consultant that will charge for its services. Assuming that any public portion of the project would require bonding, the City's bond counsel, Dorsey-Whitney, may also be consulted.
RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 2 to the OBSC Memorandum of Understanding with MontDevCo, LLC and MontDevCo II, LLC that extends the termination date until January 8, 2018.