Staff recommends that the City Council approve the Reimbursement Agreement with Big Sky Economic Development Authority.

In order to obtain water and sanitary sewer service, Development 55, LLC extended a water and sanitary sewer main west from East Lane to Parcel 11A of Certificate Survey 1391, where the new Coca-Cola Plant is being constructed along Harnish Boulevard.  The extension of the water and sanitary mains were completed fronting properties that now have the opportunity to be served from the mains.  Since these properties do not desire connection to the city services at the present time, Development 55, LLC. paid for a portion of the project.  In addition, as part of the construction, Big Sky Economic Development Authority (BSEDA) paid $250,000 for the extension of the water and sanitary sewer.  At such time that properties along the water and sanitary mains request City water and/or sanitary sewer service, BSEDA desires to be reimbursed a portion of its construction costs.  As outlined in BMCC Article 26-500, Section 26-505, the developer can enter into a Reimbursement Agreement with the City for reimbursement in the future when other properties connect into the water and sanitary sewer mains.

The Council may:

• Approve the Reimbursement Agreement with BSEDA; or
• Not approve the Reimbursement Agreement with BSEDA.  Rejecting the agreement would be contrary to City Code.

Based on a review of final costs, the Public Works Department determined that $250,000 attributable to the water and sanitary sewer mains constructed as part of Private Contract 776, is eligible to be recovered by the developer.  Since this fee is paid by adjacent properties, the City has no financial obligation with a Reimbursement Agreement.