PUBLIC HEARINGS

In October 1998, the City and County Commissions conditionally approved the amended preliminary plat of Skyline Park Addition, a single family residential subdivision located north of 33rd Avenue Northeast between Skyline Park and Skyline School. Phases 1 through 5 of the subdivision, encompassing 63 lots, have been annexed and developed. The developer and property owner, Jim Workman Construction Company, desired to final plat and annex Phase 6, consisting of 15 lots along the westerly extensions of 35th and 36th Avenues Northeast.

Ordinance 2795 assigns a zoning classification of "A" Residence Use, "A" Area District to Skyline Park Addition, Phase 6. On December 12, 2000, the Planning Board recommended approval of the final plat and the annexation of the requested area.

Mayor Gray declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9139 or Ordinance 2795. Mayor Gray closed the public hearing.

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt annexation Resolution 9139 and approve the final plat of Skyline Park Addition, Phase 6, the accompanying Annexation and Improvements Agreement and easement for utilities.

Motion carried 5-0.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission adopt Ordinance 2795.

Motion carried 5-0.

The Police Department applied for a grant that required an ad hoc committee to review the proposals for using the grant and to make a recommendation to the City Commission on the grant's use. The Ad Hoc Committee recommended the City use the Bureau Of Justice Assistance grant money to make technological improvements to the existing system and to expand the systems capabilities. The amount of the grant was $48,495 which required a match of $7,200 for a total amount of $53,883.

Mayor Gray declared the public hearing open. No one appeared to speak in support of or opposition to the BJA grant use.

Commissioner Rosenbaum moved, seconded by Commissioner Jovick-Kuntz, that the City Commission accept the recommendation of the L.E. Ad Hoc Committee for the use of the BJA grant funds.

Motion carried 5-0.

NEW BUSINESS

ORDINANCES/RESOLUTIONS

Analysis of the Special Improvement District Revolving Fund and Subsidiary Debt service Funds show that the one SID completed and ready for closure to the SID Revolving Fund and the one SID subsidiary fund has cash available to partially repay a loan from the SID Revolving Fund. The projected June 30, 2001 SID Revolving Fund balance will be $316,984. This is $206,934 above the minimum balance required by statute and $287,406 below the amount allowed by IRS Arbitrage Standards related to maximum debt service reserves. Staff stated this balance provided adequate reserves within the SID Revolving Fund.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9140.

Motion carried 5-0.

CONSENT AGENDA

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission approve the Consent Agenda as printed.

Motion carried 5-0.

BOARDS & COMMISSIONS

The preliminary plat for Whispering Ridge, Phases 2 and 3, consist of 17 single family residential lots located south of 15th Avenue South between 35th and 39th Streets South. The subdivision will be platted and annexed to the City in two phases.

The Planning Board conducted a public hearing on the preliminary plat January 23, 2001, and passed a motion recommending the City and County Commissions approve the preliminary plat for Whispering Ridge Addition, Phases 2 and 3 and the accompanying Findings of Fact subject to the following conditions: the final plat of each phase incorporate any errors or omissions noted by staff; the final engineering drawings and specifications for the required public improvements for each phase be submitted to the Public Works Department for review and approval prior to finalization of each subdivision; an annexation agreement be prepared containing terms and conditions for each phase; all applicable fees be paid; until the open space related to the subdivision is established, the owner shall escrow the following amount (11% net acres x current fair market value per acre). The escrow shall be released upon establishment of said open space. Should the open space not be established in a reasonable time, the funds in escrow shall be deposited in the City Park Trust Fund; and provision of an easement along the south side of 15th Avenue South to accommodate a proposed sanitary sewer main extension.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission approve the Preliminary Plat of Whispering Ridge, Phases 2 and 3, and the accompanying Findings of Fact subject to fulfillment of conditions stipulated by the Planning Board.

Motion carried 5-0.

The preliminary plat of Discovery Meadows consists of 62 single family residential lots located immediately north of Portage Meadows Addition and west of 52nd Street North. The subdivision will be final platted and annexed to the City in three phases.

The Planning Board held a public hearing on the proposed subdivision on December 12, 2000, and continued it until January 9, 2001. At the conclusion of the public hearing, the Planning Board passed a motion recommending the City and County Commissions approve the Preliminary Plat for Discovery Meadows Addition Phases 1, 2 and 3 and the accompanying findings of fact subject to the following conditions being met: the final plat of each phase incorporate any errors or omissions noted by staff; the final engineering drawings and specifications for the required public improvements for each phase be submitted to the Public Works Department for review and approval prior to finalization of each subdivision; an annexation agreement be prepared containing terms and conditions for each phase; all applicable fees be paid; and preparation of covenants and any homeowner's association documents acceptable to Staff addressing placement of structures on lots and the management and maintenance of the pedestrian/bicycle corridor between Phases 1 and 2.

Mayor Gray stated that because he was a party to this proposed development, he would pass the gavel to Mayor Pro-Tempore Beecher. Mayor Pro-Tempore Beecher asked for the direction of the Commission.

Commissioner Rosenbaum moved, seconded by Commissioner Jovick-Kuntz, that the City Commission approve the Preliminary Plat of Discovery Meadows Addition and the accompanying Findings of Fact subject to fulfillment of conditions stipulated by the Planning Board.

Motion carried 4-0 (Mayor Gray recused himself).

The term on the City-County Health Board for Alan Frohberg expired. He was eligible and interested in reappointment.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission reappoint Alan Frohberg to the City-County Health Board to a three-year term beginning March 1, 2001 through December 31, 2003.

Motion carried 5-0.

Terms for Brett Steene, Paul Petersen, and Dave Sutinen expired on January 3,1 2001, and William Fitzgerald resigned from the Council, therefore it was necessary for the City Commission to make appointments to this board.

Commissioner Hinz moved, seconded by Commissioner Rosenabum, that the City Commission appoint David L. Davis, Mary Dupuis, Jacqueline G. Hertel, and Jerry O'Connell to the Community Development Council for three-year terms beginning February 1, 2001 and expiring January 31, 2004.

Motion carried 5-0.

CITY COMMISSION

Commissioner Diane Jovick-Kuntz briefly explained the issue and history regarding continuing horse racing at the Fairgrounds. She added that this past Friday, she and Commissioner Rosenbaum met with County Commissioners Morris and Stelling.

Commissioner Rosenbaum stated that during this meeting, they discussed options available to the City and the County including offering an underwritten agreement to a private company to run horse racing. Commissioner Rosenbaum explained that the County was planning on contributing in $50 thousand to run horse racing. If that was coupled with the City's offer to provide $37 thousand, it amounted to a sizable subsidy. Commissioner Rosenbaum concluded by stating that he thought the City Commission should stick with their original offer which included: the City would use up to $160 thousand to repair the backside and the track; the City would provide $37 thousand this year and $20 thousand next year to help offset the costs of horse racing; and the City would not relinquish total control of the backside, grandstand, Paddock Club or Beer Garden to the County, but would allow them to use it during the racing season. Commissioner Rosenbaum stated that this was a good starting point.

Commissioner Jovick-Kuntz stated the reason the City Commission counter-offered the County's proposal to run horse racing because they asked the City to give up 1/3 of the mill proceeds collected for the Fairgrounds. Commissioner Jovick-Kuntz asked what would happen to the rest of the Fairgrounds without that revenue? She added that the City made a good offer and if horse racing could not survive with an $87 thousand subsidy, then it was not a viable activity.

Jim Cummings, Great Falls Horse Racing Group, stated that his group ran horse racing for 3 years, and if the City was going to continue it, they concentrate on having an excellent simulcast facility. He clarified that the facility needed to be in operation at least 10 months and offer beer, wine and food. Additionally, Mr. Cummings advised that in order to run a profitable race meet, the City and/or County needed to hire a manager who knows horse racing.

John Kelley and Ire (sp) David both spoke to the economic benefits horse racing has on this community. Mr. Kelley works at Western Ranch Supply and Mr. David works at United Agri-Products Feed Plant.

County Commissioner Gayle Morris stated that the County did receive some information on the economic impact of horse racing in this community. However, he did not know where that information was at this time.

Commissioner Hinz asked what the financial impact would be if the Paddock Club was totally consumed with simulcast? Fairgrounds Manager Patty Gumenberg stated that it eliminated the option of renting out the room, so the Fairgrounds would lose that revenue. She added that because it was uncertain if horse racing would continue, she had directed staff not to book that room for future events.

Commissioner Beecher stated that he was not in favor of subsidizing horse racing. He added that the City's offer gave an operator a break-even opportunity. He said that this was the most fair proposal the City could offer without jeopardizing the entire Fairgrounds and Four Seasons. He added that horse racing is a gaming activity and asked if government should be in the role of subsidizing this type of activity.

Mayor Gray stated that County Commissioner Morris did hand out some economic statistics which were 1989 projected economic impact stats. He stated that in the projected stats the handle was $3.5 million with 33 race days, and ninety thousand in attendance. He added the stats extrapolated that 20% of the ninety thousand in attendance would stay in area hotels/motels and eat at restaurants thus deriving at a figure for community economic impact. Mayor Gray explained that today, there are 400 patrons and an 11 day horse race meet. He added that horse racing in the entire state took in $2.3 million out of $700.8 million spent on gambling in Montana last year. Mayor Gray stated that in analyzing the numbers, the bottom line is that subsidizing horse racing could put the bottom line of the Fair in jeopardy and that it was not worth it. There were other, more critical, needs at the Fair.

Commissioner Rosenbaum asked if there was a difference in the agreements between the private horse racing operators and what the City proposed to the County regarding concession operations. Commissioner Jovick-Kuntz clarified that there are only two days that are still in question and those are the two days of horse racing during the State Fair.

Commissioner Hinz stated she was wrestling with financial insolvency and asked if the City Commission should be subsidizing an ailing business not to mention a gaming one? She reiterated that the City's original offer was a good one and she stood behind it.

County Commissioner Morris clarified that the City was not being asked to subsidize horse racing. He added that meant, to him, a long term arrangement of receiving assistance. He said that the County wanted to see if horse racing was still viable and wanted an opportunity to get it back on its feet. He then asked how and/or if the City Commission would communicate this dialog to the County Commission.

Mayor Gray stated that the City Manager would prepare a letter explaining that the City's proposal of January 23, 2001, still stood.

Commissioner Rosenbaum asked that the use of the Paddock Club be clarified in the letter as well as who has concessions during the race meet and State Fair.

City Manager Lawton clarified that in the letter he should reiterate the City's proposal and clarify the use of the Paddock Club during simulcast; who has concessions during the horse race meet and the State Fair and the City's intent with the $160 thousand in improvements to the backside and the track.

Commissioner Jovick-Kuntz asked Public Works Director Jim Rearden what could be done to save the traffic light at 2nd Avenue North and Third Street. Mr. Rearden explained that the State intended to remove that traffic light because their statistics indicate there was no longer a need for it. He added that Staff was currently working with the State on the issue but does not give this process much hope. He added that an outpour of concern from the community may be helpful. He would continue to keep the Commission apprized of the situation.

ADJOURNMENT