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Posted on: February 7, 2024

Blog: CITY COUNCIL REGULAR MEETING: Tuesday, February 6, 2024

Montrose, CO — City Councilors met for their regular meeting on Tuesday evening, February 6, to consider a grant application for senior housing, a construction contract to extend Tributary Street, and a zoning change to the Sugarpine Subdivision. 

Mayor Barbara Bynum and councilors Dave Frank, Doug Glaspell, David Reed, and Ed Ulibarri met in the City Council Chambers at the Elks Civic Building along with city staff. 

The following is a summary of the primary topics discussed during the meeting. 

PUBLIC COMMENT 

No members of the public offered public comments.

APPROVAL OF MINUTES 

City Councilors voted unanimously to approve the minutes of the January 16 special City Council meeting and regular meeting.

The city’s archive of past meeting minutes can be found on the Public Meetings Portal and at CityofMontrose.org/ArchiveCenter.

SPECIAL EVENTS ALCOHOL PERMIT APPLICATION

City Councilors voted unanimously to approve a special events alcohol permit in conjunction with the closure of S. Junction Ave., on Saturday, March 16, for the St. Patrick’s Day Beer Festival. 

RESOLUTION 2024-03

City Councilors voted unanimously to allow staff to apply for a grant to support the construction of additional senior housing in Montrose.

Christopher Ottinger, the City of Montrose's community development specialist said the council’s approval was needed to apply for a Community Development Block Grant (CDBG) on behalf of Volunteers of America (VOA). The purpose of this grant application is to secure funding to acquire the Rendezvous Apartments, formerly Pavilion Gardens, located at 2366 Robins Way, which is being redeveloped to provide essential low-to-middle-income senior housing in Montrose.

VOA currently owns the Pavilion Gardens Apartments and its adjacent undeveloped land. The existing building is due for rehabilitation, so VOA is taking the opportunity to redesign it for senior housing. With that goal, VOA secured 4% State Tax Credit funding to rehabilitate the existing building and construct a new 22-unit building adjacent to the existing property. 

The City of Montrose aims to secure a Community Development Block Grant (CDBG) to provide sub-grant funding to VOA for this acquisition. The CDBG program, administered by the State of Colorado for the U.S. Department of Housing and Urban Development (HUD), provides funding to local governments to address a wide range of community development needs, including affordable housing. By leveraging this grant opportunity, the City of Montrose can support Volunteers of America’s efforts to preserve and expand affordable senior housing options in our community.

The total funding required for the rehabilitation and development of the Rendezvous Apartments is estimated to be $22,797,480. The Montrose County Housing Authority plans to request a CDBG grant in the amount of $2,860,000, which is specific to the acquisition. They have secured additional funding commitments from other sources, including state tax credits and private activity bonds, to cover the remaining portion of the cost. No matching funds are required for this grant.

AMENDMENT TO THE CONTRACT FOR THE SALE OF HISTORIC CITY HALL

City Councilors voted unanimously to approve the amendment to the sales contract for Historic City Hall between the city and Rathbone PropCo LLC and give authority to the City Attorney to sign all associated documents.

City Attorney Chris Dowsey said the city purchased a new City Hall building on Main Street and moved administrative operations from Historic City Hall in March 2023. 

During this transition, the owners of the Knights of Pythias building, soon to be the Rathbone Hotel, approached the city regarding purchasing the Historic City Hall building. In March 2023, the city entered into an agreement with Rathbone PropCo LLC for the sale of the building with a closing date in August 2023. The costs of the renovations for the Rathbone Hotel began to exceed the expectations of the owners and they approached the city to extend the contract.

In January 2024, the costs of renovations for the Rathbone Hotel have continued to exceed expectations and the owners have requested a portion of the earnest money to pay for such unforeseen costs. The amendment to the contract would return a portion of the earnest money to Rathbone PropCo LLC in exchange for the city to have the option to market Historic City Hall. If there is a secondary buyer, Rathbone PropCo LLC, will have the right to execute the sale under the terms of the current agreement.

RATHBONE HOTEL DEED OF EASEMENT AUTHORIZATION

City Councilors voted unanimously to approve a pair of ordinances authorizing the utility and access easements along the western property line of the former Montrose City Hall, located at 433 S First St, to aid in the construction of the Rathbone Hotel. 

Ordinances 2656 and 2657 both passed on second reading. 

Public Works Director Jim Scheid said the owners of the Rathbone Hotel had requested sewer service and access easements on city property on the eastern side of the hotel, located on the corner of S 1st St and Cascade Ave. 

The area encompassing the deeded easements has been and is currently used for parking. Other city-owned utilities already located in this area make it unusable for future building expansion or other structures. This area will likely continue as parking/alley access in the future. Due to the dense infill of parcels, access to sewer main lines in the downtown area can be complicated and may sometimes require easements to be able to get from a property to a main sewer line. This is the case with the Rathbone Hotel property. This realignment of the sewer line will also correct an issue with an old sewer line unlying the foundation of a neighboring property. The access easement is for the addition of an ADA-accessible ingress/egress to the back of the building. For architectural reasons, the back of the building was the most suitable location for this access point.

TRIBUTARY STREET EXTENSION CONSTRUCTION CONTRACT

City Councilors voted unanimously to approve contracts for the construction of the Tributary Street Extension Project. This includes the award of a $639,646 construction contract to Oldcastle SW Group (dba United Companies), a $24,000 survey and engineering support contract to Del-Mont Consultants, natural gas extension expenditures of $10,000, and up to $25,000 to Delta-Montrose Electric Association for powerline extension. 

City Engineer Scott Murphy said the next infrastructure project required for the buildout of Colorado Outdoors is the extension of Tributary Street for approximately 275 feet toward the west. This work includes relocation and upsizing of the city’s sanitary sewer trunkline, extension of storm drain piping, a short waterline extension, extension of dry utilities (communications conduit, natural gas, power), and construction of the roadway (curb, gutter, sidewalk, base, and paving). 

The construction project is scheduled for completion in August 2024. Since the project is off the main roadway, no major traffic impacts are expected. However, the Tributary Street Trailhead for the Uncompahgre Riverway Trail will be closed while construction is underway. 

ORDINANCE 2659 - FIRST READING

City Councilors voted unanimously to deny a request to rezone the Sugarpine subdivision from an “R-2” Low-Density District to an “R-3” Medium Density District. 

City Planner William Reis said the proposal was to rezone a portion of the property located northwest of the corner of Miami Rd and 6700 Rd. The 37.31-acre property is split-zoned with a portion of it already zoned as “R-3” Medium Density District.  Approximately 20.61 acres of the property will remain in the “R- 2” Low Density District. 

Following the staff presentation from Reis, the council heard from nearly two dozen members of the public before voting to deny the re-zone. 

STAFF REPORTS 

Youth City Councilor Shiloh Warthen said the Youth Council is preparing to work with Sharing Ministries to organize a food drive. 

•••

All City Council meetings are recorded and made available online via the city’s website and cable channels 191 for Charter subscribers and 970 for Elevate subscribers. Replays of council meetings are also broadcast at 6 p.m. on the same channels on days that the council is not in session. 

In addition, each regular meeting is archived on the City of Montrose’s YouTube channel

Residents can watch all regular City Council meetings and work sessions on-demand through the city’s Public Meetings Portal.


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