Planning Director Ben Rangel reported that adoption of Resolution 9618 would annex two lots and a 210 foot extension of 12th Avenue South between 45th and 47th Streets South and adoption of Ordinance 2953 would assign a zoning classification of PUD planned unit development district to it. He added that the applicant intended to construct 6 duplex structures containing a total of 12 dwelling units to be sold separately as part of a condominium association.

At the conclusion of a combined public hearing held September 12, 2006, the Planning Board/Zoning Commission passed motions recommending the City Commission annex the property and approve the minor plat and the accompanying Findings of Fact subject to the applicant paying all fees, signing the annexation agreement, correcting any errors or omissions on the minor plat and Public Works approving the final engineering documents. The second recommendation was for the City Commission to assign the requested zoning to the property.

Mayor Stebbins declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9618 or Ordinance 2953. Mayor Stebbins declared the public hearing closed and asked for direction from the Commission.

Commissioner Hinz moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9618 and approve the Minor Plat, Findings of Fact and Annexation Agreement all related to East Ridge Addition Phase 4.

Motion carried 5-0.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Ordinance 2953.

Motion carried 5-0.

Planning Director Ben Rangel reported that upon adoption Resolution 9619 would annex 37 single-family residential lots located northwest of the Skyline Education Center. Ordinance 2954 would assign a zoning classification of R-3 single-family high density district to it.

He added that on June 13, 2006, the Zoning Commission unanimously recommended the City Commission assign the requested zoning and on September 19, 2006, the Planning Board passed a motion recommending the Commission approve the annexation request.

Mayor Stebbins declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9619 or Ordinance 2954. Mayor Stebbins declared the public hearing closed and asked for direction from the Commission.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9619 and approve the final plat and annexation agreement all related to West Ridge Addition, Phase IV.

Motion carried 5-0.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission adopt Ordinance 2954.

Motion carried 5-0.

City Clerk Peggy Bourne reported that in 1999, the City Commission adopted an ordinance prohibiting smoking in public places and places of employment. In 2005, a state law went into effect superseding the City ordinance. Upon adoption, Ordinance 2956 would repeal most of the City ordinance and businesses and places of employment would then follow the guidelines set forth in state law. One section Staff proposed the City retain was requiring designated smoking areas be placed at least 20 feet from a public building.

Commissioner Rosenbaum moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Ordinance 2956.

Motion carried 5-0.

The property owner, Dan Brown, DBA DMW, Inc., is renovating the building at 501 2nd Street South. The building permit was issued September 1, 2006, and the project was completed in October 2006, at an estimated cost of $800,000. The applicant requested approval of the tax benefits and Resolution 9621 was prepared to comply with the requirement that all applications be approved by resolution. Approval of the application will allow for the taxes generated from the expansion to be added to the existing taxes over a five-year period in increments of 20 percent each year.

Commissioner Beecher moved, seconded by Commission Jovick-Kuntz, that the City Commission adopt Resolution 9621.

Commissioner Hinz asked Community Development Director Mike Rattray to explain the tax benefit program. He explained that MCA 15-24-1501 provides the local government the option of giving tax benefits for the remodeling, reconstruction or expansion of existing buildings or structures. The law governing this incentive was amended in 1985 requiring that each local governing body (City and County) approve the tax benefit on a project by project basis. If one local government body approves the tax benefit and the other does not, the benefit will apply only to the mills levied by the approving governing body. In addition, tax benefits do not include any relief from state-wide levies and local government approval of the application must be by resolution.

The City Commission's policy regarding the approval of remodeling tax benefits was established in the late 1980's and requires that all property taxes on all property owned by the applicant be current and that the applicant be allowed to take advantage of only one City program available to provide local development assistance. In applying this policy to the application received from the current owner, staff found that all property taxes were current and that the applicant had not received City financial assistance from other programs.

Mayor Stebbins called for the vote. Motion carried 5-0.

Commissioner Beecher moved, seconded by Commissioners Hinz, that the City Commission approve the Consent Agenda as presented.

Motion carried 5-0.