40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended...

20
NAI Business Properties | 1 40 East Broadway Street Butte, Montana

Transcript of 40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended...

Page 1: 40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended primarily to accommodate stores, offices, service establishments, hotels and governmental

NAI Business Properties | 1

40 East Broadway StreetButte, Montana

Page 2: 40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended primarily to accommodate stores, offices, service establishments, hotels and governmental

NAI Business Properties | 2

03 Section 01 Executive Summary

04 Section 02 Asset Disposition Details

05 Section 03 Local and Regional Information

(1) City Information (2) Economic Overview

06 Section 04 Building Overview

(1) Building Layout (2) Preliminary Architectural Report (3) Structural Conditions Report

14 Section 05 Structure and Amenities Information

16 Section 06 Highest and Best Use

(1) MRC Report and Findings (2) Office Potential

17 Section 07 Funding Options

Additional Resources: Reports Available via Dropbox or mailed via thumb drive: Preliminary Architectural Report (62 pages) Facilities Condition Report (25 pages) Best Use Study (86 pages)

Presented by Ethan Kanning+1 406 294 [email protected]

NAI Business Properties3312 4th Avenue NorthBillings, Montana 59101

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NAI Business Properties | 3

Executive SummaryBuilding History: From Montana Power’s beginnings in 1912, housed in

the ‘Electric Building’ in uptown Butte, the power company has been a key

partner in community for nearly 100 years. For many years, Northwestern

Energy occupied the original Electric Building and four other ‘connected’

buildings that make up the General Office building at 40 East Broadway

Street. As Montana Power (NorthWestern Energy) grew out of its original

location in the Electric Building on East Broadway, rather than relocate

to a bigger building elsewhere, the company simply bought the adjacent

building and punched holes through the common walls for access and

expansion at each floor. Expanding into the Beehive Building (subsequently

named by Montana Power), then the F.B. Price, and the East Building,

Montana Power remodeled the Broadway facade in the 1960’s in an effort

to change the image of Montana Power to a more modern company and

provide architectural cohesion to the face of the facility. The Ranchouse

Building was added last, after the facade remodel. Thus, this building

facade is relatively in-tact in its original construction.

While the building facilities have worn well over time, the inherent

functional, maintenance and image issues along with the life-safety

concerns have reached the point beyond yearly maintenance budgets

and must be addressed to insure long term goals are achievable.

(Mosaic Architecture, P.C, 2015)

Northwestern Energy moved out of the facility in March of 2016 and the

property was deeded to Butte-Silver Bow County in the fall of 2016.

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Asset Disposition DetailsPrice: Open offer period with NO PRICE RESERVE. Offers due on or

before Friday, December 8th.

Proposals are evaluated as follows:(1) Property must be utilized in a manner that promotes economic and

social vitality within uptown Butte and the greater Butte area.

(2) Seller prefers, but does not require, that a prospective buyer utilize

local labor and local professional services.

(3) Prospective buyer must present a professional and thoughtful vision,

strategy and plan for the subject property. Seller requests high level

project financials and development timeline.

(4) Seller has no preference regarding retail, office or multi-family use so

long as the development accomplishes Butte-Silver Bow County goals

as described above.

(5) Proposals to be evaluated by a 7 person committee headed by Karen

Brynes. Committee members may include members of the URA

Board, County Commissioners office, etc. Committee members will be

appointed by the Chief Executive of Butte-Silver Bow County.

Deed transfer: In order to accomplish mutually beneficial development

goals, Butte-Silver Bow County will transfer the deed to the buyer via

a Contract for Deed with development step stones used in place of a

normal payment plan. The buyer will execute the Agreement whereby

they would agree to a development plan approved by Butte-Silver Bow

County officials. Once the development plan is satisfied pursuant to the

Development Agreement, the deed held in escrow would be recorded and

the ownership officially transferred. The Buyer would be responsible for

holding costs, maintaining adequate bonding and insurance, allowances

for approval of plans, construction, contractors, etc.

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Local and Regional InfoCity Information: Butte-Silver Bow County Montana has one of the

richest, most colorful histories in the nation. The role that the community

played in the world’s copper industry as well as in the American labor

movement during the first half of the 20th century is considered critical

to the understanding of the history of the United States. As a result of its

prominence, Butte, and southwest Montana, have been left with unique

economic, environmental and historic preservation challenges. Today less

than 5% of the workforce is employed in the mining industry. Efforts to

diversify the economy have focused on the growing the service sector

including health care and higher education, and in bringing high tech

companies to the community. The community has also worked to promote

Butte’s unique cultural resources in order to develop its heritage tourism

potential. Butte-Silver Bow County has a unique character that combines

urban, rural, semi-rural and industrial qualities within an extraordinarily

beautiful setting. A century of mining copper helped to shape our land use

patterns, architecture, landscape, attitudes and lifestyle. As the community

transitions away from a dependence on mining, Butte-Silver Bow is

emerging as more diverse. (Butte-Silver Bow, 2008)

Economic Overview:(1) 2016 Review and Outlook—BBER Economic Outlook Seminar (available

via Dropbox or thumb drive)

(2) Economic Outlook for Silver Bow County and SW Montana—Bureau of

Business and Economic Research, University of Montana (available via

Dropbox or thumb drive)

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Building OverviewBuilding Layout: The 5 buildings include: East, F.B Price, Beehive, Electric

and The Ranchouse and total approximately 112,640 square feet. (Mosaic

Architecture, P.C, 2015)

High Level Overview :

East 13,900 SF

F.B Price 10,200 SF

Beehive 25,500 SF

Electric 41,600 SF

Ranchouse 13,300 SF

Courtyard 2,700 SF

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Building Overview continued…

Main Level Floor Plan:

Courtyard 2,700 SF

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Building Overview continued…

Main Level Floor Plan:

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Building Overview continued…

East

F.B P

rice

Beehive

Elect

ric

Ranch

ouse

Courtyar

d

Exterior Overview:

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Zoning:(1) C-3 Central Commercial Zone: The C-3 zone is intended primarily to accommodate stores,

offices, service establishments, hotels and governmental and cultural centers at the central

focal points of the arterial and transportation systems where they can conveniently serve

the population of Butte-Silver Bow, state of Montana, and the entire surrounding area with a

varied and specialized selection of goods and services. (Ord. 53 120-1, 1978)

(2) Permitted Uses: please reference report (MRC, 2015)

(3) Map:

Preliminary Architectural Report: Summary (Mosaic Architecture, P.C, 2015)

(1) Note: Please reference full information in the Mosaic Architecture Preliminary Architectural

Report.

(2) Building Summary

(1) Code Requirements: Structure does not meet current seismic requirements and does not

meet many ADA requirements.

(2) Life-Safety: Includes, but not limited to: adequate # of exits, exit access, fire escape

usability, fire sprinkler coverage

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INTERSTATE 90 FWY

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BU

SCH

ST

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ARGYLE ST

WATERLINE RD

S A

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ON

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W JOSETTE AVE

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\\GIS-Serv11\Disk3\Butte\Planning\Zoning_Jan_2013.mxd Printing Date: 12/18/2015

Yankey Doodle

Mill TailingsPond

Berkeley Pit

Butte, MT - Urban Zoning Classifications

Sources: Base Map data was digitized from 1989 and 1991 photography by Horizon Inc. This data has not been field checked by BSB GIS. Changes occuring after the date of photography may or may not be reflected in the base map. Section lines were originally from USGS 1:24,000 DLG data and have been upgraded in some of the Urban Area by GPS points obtained from TeraWest and BSB GIS.

Zoning boundaries were digitized by BSB GIS from 1978 and 1987 zoning maps. Inaccuracies are known to exist. Any decisions as to land use should be made from the zoning ordinances themselves. No liability will be assumed by the Butte-Silver Bow Government for decisions based on determinations made exclusively from this map.

Heavy Industrial

Light Industrial

Commercial and Light Commercial

Industrial

Unzoned AreaNot Zoned or Exempt

CM

M1

M2

NZ

PublicPublic CollegeE1

Residential

Mobile Home - SuburbanR4S

Mobile HomeR4

Multi Family ResidentialR3

Two Family ResidentialR2

One Family Suburban ResidentialR1S

One Family ResidentialR1

Local Commercial

Community Commercial

Central Commercial

C1

C2

C3

Commercial

Open Space

Open Space - DevelopableOSD

Open Space - ConservationOSC

Interstate Highway

Secondary Highway

Road, Street or Trail

Railroad

Township Line

Section Line

2010 Urban Limit Boundary

1 0 10.5 Miles

Walkerville

Centerville

Williamsburg

9 10

1112 7 8

910

151617

1813141516

21 2223

2419 20

2122

27282930

2526

2728

33 3435

32

33 34

34

523

4

28

27 26

21

16

9 1011

12 78

910

15

16171813

1415

2223

2419 20

21 22

345

234

35343332

3233

34

25 3029

36 31

61

61

36 31

R1S

NZ

NZ

R1S

R1

RC

R4SR4S

C2

EXEMPT

R4S

M1

R1S

R2

M1

R1

R1

R1

M2

R4

R2

R3

OSC

R2

M1

OSD

E1

C2

R3

R2

R2

R2

CM

OSC

R4

C3

OSD

M1

C2

R1S

R3

R2

OSD

M2L

R4

OSC

OSC

R2

R4

C3

R3

R4

OSD

R2

M1

M2

R2

C2

R2

OSD

C3

R1S

C2

R4

R3

OSC

NZ

M2L

OSC

R1

R1R3

OSD

R3

R2

M1

R3

OSD

OSD

C2

C2

C2

R1S

OSD

R3

OSD

M1

R3

C2

C2T

C1

OSD

R2

R3

R4

R1

OSD

R1PUD

R3

OSD

C2

NZ

OSD

M1

M2

R1PUD

C1

C1

OSC

C2 R4

NZ

C1

C2

NZ

OSC

OSD

R3PUD

OSC

R1

C1

C2T

OSC

R4

OSC

NZ

R1

C1

R4PUD

NZ

M1L

OSC

OSC

NZ

OSD

OSC

C2

OSD

OSD

C2

C2PUD

OSD

C2T

OSC

R3PUD

C2L

R1

NZ

R1PUD

C2T

OSD

R4PUD

C1

NZ

OSD

C2PUD

OSD

C2OSD

NZC2

NZ

R1PUD

R1PUD

C2

NZ

OSD

NZ

C2PUD

R2

NZ

M2

R1

NZ

R1

OSDOSD

R1

OSC

C2T

NZ NZ

C2PUD

OSD

OSD

INTERSTATE 90 FWY

CO

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HA

RR

ISO

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AS

IN C

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RD

HIGHWAY 2 HW

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CR

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GRIZZLY TRL

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GEORGE ST

BR

OW

NS

GU

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RD

JAN

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RD

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CO

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D

COBBAN ST

BLUEBIRD TRL

A ST

ROWE RD

S M

ON

TAN

A S

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MARCIA ST

LIVA LN

SAD

DLE R

OC

K R

D

C ST

S R

OC

KER

RD

ORO FINO GULCH RD

BU

CK

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RN

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SANTA CLAUS RD

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OTTAWA ST

W PARK ST

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LOCUST ST

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AMHERST AVE

STORM VW

CASEY ST

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STU

AR

T AV

E

STONEWALL RD

SKI AREA LOOP

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FOUR MILE RD

4th ST

SHIELD

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5th ST

FARRELL ST

SWEET MEADOWS RD

W GALENA ST

TEX

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ASH DR

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CA

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ON

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AH

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MM

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HANSEN RD

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D

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LUPI

NE LN

POR

TER

AVE

AD

AM

S A

VE

ELKHORN LN

LISAC LN

PREVOST TRL

W COPPER ST

CALEDONIA ST

ELECTRIC ST

GILMAN AVE

PHIL

LIP

S A

VE

W GOLD ST

DEER LN

E BADGER LN

DOWNHILL LN

LONGFELLOW ST

MILK

Y WAY

THO

MA

S A

VE

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W DIAMOND ST

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ASPEN LN

WH

ITM

AN

AV

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W BADGER LN

EAST LAKE DR

W GREENWOOD AVE

S W

ASH

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TON

ST

WA

RR

EN

AV

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STAGE COACH RD

S O

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T

N B

ST

GA

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CK

SO

N S

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D A

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W QUARTZ ST

S M

AIN

ST

S E

MM

ET

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LIB

ERTY

LN

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RN

TON

AV

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KEYSTONE TRL

TELE

MA

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LN

FIVE MILE RD

NO

RD

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RL

MA

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D AVE

S AIRPORT RD

RA

M ST

WH

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DG

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TIM

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DR

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ION

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RD

E D

R

S W

EST

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N A

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HAY

ES

AV

E

N ALICE ST

W PORPHYRY ST

AN

TELOPE R

UN

RUSTY SPUR

TRE

NTO

N S

T

16TH ST

FOX

TAIL

LN

GELANDE M

TN

NOYES ST

VIENN

A ST

HOLMES AVE

HOLIDAY DR

THIRD ST

AMERICAN DR

SCENIC DR

SHOESTRING ANNIE RD

LASALLE AVE

WAGON ST

MAJESTIC VW

N C

LAR

K S

T

S OH

IO ST

TRAIL CREEK RD

NINE MILE RD

MA

SS

AC

HU

SETT

S A

VE

ZARELDA ST

N W

ES

TER

N A

VE

OVERLOOK DR

HECLA ST

RAMPART DR

E ALUMINUM ST

N A

LAB

AM

A S

T

HA

NC

OC

K A

VE

15TH ST

E PLATINUM ST

ZELL

A D

R

MCKINLEY AVE

17TH ST

HAT

TIE

LO

OP

INDIAN ROCK RD

WHARTON ST

ONEILL ST

BERNIES WAY

BRYANT ST

GA

RR

ISO

N A

VE

E GRANITE ST

GLA

CIE

R L

ILY

LN

ME

AD

OW

VIE

W D

R

S A

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ON

A S

T

WH

ITE

WAY

TAFT ST

CIVIC CENTER RD

E BROADWAY ST

ANTIMONY ST

BA

NK

S A

VE

N H

EN

RY

AV

E

8th ST

HIC

KO

RY D

R

S A

LAB

AM

A S

T

STERLING TRL

S PARKMONT ST

NORTH DR

HORNET ST

HOMESTAKE RD

APEX LN

LAR

KS

PU

R L

N

FLO

RID

A A

VE

SILVER BOW BLVD

GR

EEN A

CR

ES DR

ROOSEVELT AVE

HO

PE

RD

ST ANN ST

HO

WA

RD

AVE

GLA

DS

TON

E A

VE

STRNOD RANCH RD

GARLAND AVE

JOY LN

STANDBY CREEK RD

ZOO

LN

TAMARACK DR

N PARKMONT ST

MU

SEU

M W

AY

EMM

A S

T

WALL ST

CURTIS ST

IOWA AVE

CANADA CREEK DR

LAUREL RD

CLAY AVE

TECHNOLOGY WAY

SUNRISE LN

LEXINGTON ST

NORTH ST

WA

SH

OE

ST

GRAY GHOST P

T

E CENTER ST

HOLLAND ST

REDWOOD DR

GREGSON ST

MO

NTR

OS

E A

VE

WE

ST

DR

6th ST

STAR

LN

CORA TERR

HIGHWAY 10 DR

ST PAUL AVE

SHE

RM

AN

AV

E

RICHARDSON ST

AURORA LN

W FRONT ST

FAIRMONT ST

EASY ST

OR

EG

ON

AV

E

E BENNETT STC

OR

TO R

D

CEDAR LAKE DR

E CHULA AVE

FOO

THIL

L R

D

ATLA

NTI

C S

T

PAX

SO

N A

VE

GA

LAX

Y D

R

BARTLETT ST

S W

YO

MIN

G S

T

SOUTH DR

SAGE ST

OA

K LN

GAY

LOR

D S

T

MYSTIC LN

FAT JACK RD

JOSEPHINE ST

PONDEROSA DR

E LA PLATTE ST

CORNELL AVE

MO

NR

OE

AV

E

FAIR

WAY

AV

E

W BROWNS GULCH RD

EAGLE ST

MAUDE S CANYON RDHOLLY LN

LEWISOHN ST

GRAND VIEW DR

RO

BER

TS AVE

TELLU

RIDE R

DG

WA

LDR

ON

DR

2nd ST

CAMAS DR

N W

AS

HIN

GTO

N S

T

EAS

T D

R

11TH ST

WILLIAMS ST

QU

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DR

BURKE LN

BITTERSWEET DR

E GALENA ST

ZINC ST

DA

HLG

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N S

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TROTTER DR

EVANS ST

KELS

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CLO

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R D

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N ID

AH

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PAR

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N PARK PL

N J

AC

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ON

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CO

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FAW

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CASPIAN LN

1st ST

OLYMPIC WAY

OXFORD ST

MEL

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LN

TRA

VO

NIA

ST

NEW ST

W SECOND ST

W CHULA AVE

WHITE BLVD

POWDER LOOP

PHILLIS LN

KETCHUM LN

KODIAK TRL

KNOB HL

DUNN AVE

HIG

H V

IEW

DR

LEMONS DR

W BUFFALO ST

W ALUMINUM ST

EQU

US

DR

FOR

D L

N

BA

NTRY W

AY

BLA

CK

AN

GU

S LN

CAPE ST

W JOSETTE AVE

TOWER ST

GONDOLA LOOP

SESAME ST

RYE

DR

EAGLES NEST LN

TREASURE STATE RD

VISTA CT

VIC

TOR

IA L

N

JOH

NS

AVE

COWDOG L

N

INDIAN PAINTBRUSH RD

CENTER DR

SAGE DR

DELAWARE AVE

3rd ST

DUNDEE ST

RUBY ST

LEXINGTON TERR

MIN

AH

ST

PRINCETON ST

TIPI TRL

MAJORS ST

W CLINTON AVE

WAT

HENA

DR

ALPIN

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RL

GUN CLUB RD

DRIGGS ST

CHALET LOOP

BAVARIA ST

FLEECER DR

RISIN

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13TH ST

WILLOW

DR

ME

AD

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VE

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GA

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ST

AVOCA DR

SHA

WN

A L

N

CORRAL ST

W PACIFIC ST

AIRPORT RD

E FIRST ST

HARRISON ST

N C

RYS

TAL

ST

CRYING GEORGE RD

GOODWIN ST

ATHER

TON

LN

AU

GU

STA

AV

E

S C

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STA

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MO

ON

LN

E CLARK ST

RODEO DR

RENZ DR

MO

UN

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D

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DR

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DR

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GR

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SUM

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CALIFORNIA AVE

MA

NTL

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T

SPORTSMAN WAY

FOX

RUN

GRANITE MOUNTAIN RD

SUTT

ER S

T

ABERDEEN ST

SHORT ST

E GAGNON ST

HU

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DR

BELL S

T

KINGS CT

BIRD DOG LN

PRO

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CT

AVE

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TRIC

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LN

CIT

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CO

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BU

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GREEN ACRES CT

NEI

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BO

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OR

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AN

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UTA

H AVE

INTERSTATE 90 FWY

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PRINCETON ST

IOWA AVE

N A ST

BU

SCH

ST

ARGYLE ST

YALE AVE

ARGYLE ST

WATERLINE RD

S A

RIZ

ON

A S

T

POR

TER

AVE

BA

NK

S A

VE

W JOSETTE AVE

S A

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ON

A S

T

UTA

H A

VE

GA

RFI

ELD

AV

E

S ARIZONA ST

W PORPHYRY ST

WY

NN

E A

VE

AGATE ST

WA

SH

OE

ST

SUNSET RD

HA

NC

OC

K A

VE

W GOLD ST

WALL ST

SAGE ST

UTA

H A

VE

N M

AIN

ST

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\\GIS-Serv11\Disk3\Butte\Planning\Zoning_Jan_2013.mxd Printing Date: 12/18/2015

Yankey Doodle

Mill TailingsPond

Berkeley Pit

Butte, MT - Urban Zoning Classifications

Sources: Base Map data was digitized from 1989 and 1991 photography by Horizon Inc. This data has not been field checked by BSB GIS. Changes occuring after the date of photography may or may not be reflected in the base map. Section lines were originally from USGS 1:24,000 DLG data and have been upgraded in some of the Urban Area by GPS points obtained from TeraWest and BSB GIS.

Zoning boundaries were digitized by BSB GIS from 1978 and 1987 zoning maps. Inaccuracies are known to exist. Any decisions as to land use should be made from the zoning ordinances themselves. No liability will be assumed by the Butte-Silver Bow Government for decisions based on determinations made exclusively from this map.

Heavy Industrial

Light Industrial

Commercial and Light Commercial

Industrial

Unzoned AreaNot Zoned or Exempt

CM

M1

M2

NZ

PublicPublic CollegeE1

Residential

Mobile Home - SuburbanR4S

Mobile HomeR4

Multi Family ResidentialR3

Two Family ResidentialR2

One Family Suburban ResidentialR1S

One Family ResidentialR1

Local Commercial

Community Commercial

Central Commercial

C1

C2

C3

Commercial

Open Space

Open Space - DevelopableOSD

Open Space - ConservationOSC

Interstate Highway

Secondary Highway

Road, Street or Trail

Railroad

Township Line

Section Line

2010 Urban Limit Boundary

1 0 10.5 Miles

Subject

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(3) Exterior Façade does not match other properties within historic uptown

(4) Interiors are well-maintained but have poor “way-finding”, limited windows in

common areas, lack of continuity in materials.

(3) Improvement Scenarios

(1) Full plans, pricing and details included in the Preliminary Architectural Report

(2)

(3) Scenario Summary (Mosaic Architecture, P.C, 2015)

Scenario A: Major Remodel of the existing buildings for use by one tenant

(Highlands College studied as potential tenant). In this scenario, the buildings

are completely gutted with the intention of envisioning a new plan that responds

to 21st Century learning, clear and concise circulation, way finding and existing,

and an aesthetic and functionality that defines a rebirth of the existing buildings.

The exteriors of the buildings would be completely refinished and restored to the

historical grandeur. Highlands College was explored as the potential tenant in

this scenario, using building program spaces as the “fit” into the existing building.

Although, remodel issues and costs would be similar for other one-tenant Class A

office space.

Scenario B: Split the existing building into the five original buildings, and reuse

by multiple tenants/uses. The goal of this scenario is to provide a distinct

separation between the five existing buildings. In this case, the result would be

separate buildings that could be marketed separately to various uses, whether

office, residential, retail or mixed use. In this scenario, the buildings are again,

completely gutted. Individual buildings will require exit stairs, some shared

circulation, individual heating, cooling and electrical systems. While the exterior

of the buildings would be completely refinished and restored to their historical

grandeur, it is anticipated that the interiors would be finished to a grey shell finish

for eventual tenant “fit-out.”

Scenario C: Convert buildings to residential use. Converting the existing office

building to residential use will require substantial remodeling and installation of

new building systems. Again, structural, exiting, access to view and fresh air,

energy code, and condition of the exterior façade, mandate gutting the interior

space and total restoration/window replacement of the exterior races. The goal of

this scenario is to provide apartment units on floors one through four and service/

storage space at the basement level. The anticipated cost of the renovation would

put these apartments in the high end of residential use, although, the opportunity

for some very nice and sizeable units is achievable.

Building Overview continued…

SCENARIO TYPE ESTIMATED COST $/SF NEW CONSTRUCTION Single Tenant Class A Office Space $14,000,000 $140 $200–220/SF

Split–5 buildings Shell Space $7,700,000 $77 $100–120/SF

Multi-Family 39 Apartments $10,900,000 $109 $120–180/SF

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Structural Condition Reports(1) Note: Please reference full information in the Structural Conditions Assessment Report (Beaudette

Consulting Engineers, Inc., May 19, 2010)

(2) Square Footage Summary:

(3) Summary and Construction Details: Summary (Mosaic Architecture, P.C, 2015)

(1) The buildings were found to be well maintained and in good condition. For buildings well over

100 years old, they are in exceptional structural condition.

(2) East Building: Unreinforced brick walls with wood framed roof and floors. Steel beams and

columns establish a center bearing line for the wood framed floors and roof.

(3) F.B Price Building: Reinforced concrete skeleton of columns, beams and slab with

unreinforced brick side and back walls.

(4) Beehive Building Unreinforced brick walls with wood framed roof and floor structures.

(5) Electric Building: Reinforced concrete skeleton structure with reinforced concrete beam and

slab floor system with brick in-fill walls around the perimeter.

(6) Ranchouse Building: Unreinforced brick and masonry walls with wood framed floors and roof.

Building Overview continued…

East Building Basement* ............ 4000Main Level ............ 4000Second Level ........ 4000Third Level ............ 4000Subtotal .............. 16,000

FB Price Building Basement* ............ 4000Main Level ............ 4000Second Level ........ 1950Third Level ............ 1950Subtotal .............. 11,900

Beehive Building Basement* ............ 6900Main Level ............ 6900Second Level ........ 6650Third Level ............ 6650

Subtotal .............. 27,100

Electric Building Sub-Basement Boiler Room ..... 2840Sub-Basement Storage ........... 4750Basement .............................. 7600Main Level ............................. 7600Second Level ......................... 7250Third Level ............................. 6750Penthouse ............................. 6750Subtotal ............................... 43,540

Ranchouse Building Basement .............................. 3500Main Level ............................. 3600Second Level ......................... 3600Third Level ............................. 3400Subtotal ................................. 14,100

GRAND TOTAL ...................... 112,640

*Basement SF includes sidewalk vault spaces

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Page 14: 40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended primarily to accommodate stores, offices, service establishments, hotels and governmental

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Structure, Amenities and Site Info

Life Safety Items to Address (Beaudette Consulting Engineers, Inc., May 19, 2010)

Summary: • Adequate # of exits, inadequate exit protection – only 1 protected stair

• Open stairs may create smoke chimney

• Poor exit access and way-finding

• Auditorium exists have inadequate separation

• Fire escapes difficult for many to use

• Fire sprinklers do not have complete coverage in concealed wood frame areas

• 4th Floor exits are problematic

• Structure does not meet current seismic code requirements

• Building does not meet many ADA requirements

Fire Sprinklers: The entire building is fully sprinkled. There is a concealed wood

frame area and a space between the 3rd and 4th floor of the Electric

Building that was not previously sprinkled (as reported in the 2010

report), but fire sprinklers were add in 2014.

HVAC: Per report, works well overall with slight suggested improvements. HVAC

system in the Energy Building was updated in 2010. (Beaudette Consulting

Engineers, Inc., May 19, 2010)

Electrical: • Full upgrade in 2004 with a single, main switch gear installed

• 480 volt, 3 phase power with step down transformers

• Emergency power system installed, generator removed

Plumbing: 6" clay main line

Water: insulated 3" main line

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NAI Business Properties | 15

Roof per building: • East: Torch Down (2014)

• FB Price: TPO Membrane (2010)

• Beehive: TPO Membrane (2010)

• Electric: TPO Membrane (late 90’s)

• Ranchouse: Torch Down (date unknown)

Lighting: mix of T8 and T12 throughout

Windows: single pane aluminum, cased

Telephone: switch room located in sub-basement

Elevators: Otis, installed in mid 1960’s, in good working order

Asbestos: report on file for all mitigation work completed

Mold: none

Bathrooms: 32 total, less than 25% are ADA accessible

Parking: • Parking garage on E Broadway, $50/space/month

• Free parking lot nearby

• 2 hour shared on-street metered parking

• New parking garage under construction offering 200 spots, to be completed Fall 2017

Structure, Amenities and Site Info continued…

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Highest and Best Use (MRC, 2015)

(A) MRC Report: (1) Note: Please reference full information in the MRC Best Use Report.

(2) NorthWestern Energy engaged MRC of Frisco, TX to complete a best use study

on the facility. The complete 86 page report completed on July 30, 2015 will be

available to any prospective buyer.

(3) Report Summary(1) Purpose of the Report: to determine the market feasibility of a new

construction, Class A apartment community.

(2) Site Location: site is located in a desirable uptown location in Butte with good

visibility, access and walkability.

(3) Zoning: C3 which allows residential, office or retail uses.

(4) Viable Uses

(a) Residential: demand locally is strong.

(b) General Office: appears to be the more obvious use, given current layout.

(5) Highest and Best Use Recommendation: based on the Butte market, the

report recommends a buyer execute a residential strategy.

(B) Single User Office Potential: after taking all aspects of the subject property into

consideration, the property seems to lend itself to a single user office facility for

a user such as a nationally based call center. Based on the current layout and

infrastructure, the potential remodel costs, and the site amenities, this seems to be

unique opportunity for a national corporation to place a call center in the subject

property thereby creating many local and quality jobs while leveraging the existing

site amenities and minimizing potential remodel costs. The staff would have access

to world class outdoor opportunities and a peaceful and unique quality of life which

Butte-Silver Bow county would see an uptick in job creation in the uptown area.

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Funding Options(A) URA Program General Description:

(I) The Urban Revitalization Agency, funded through tax increment financing, has

set aside a portion of its revenues for Redevelopment Programs including façades,

building conservation and interior renovation programs, as well as sidewalk

replacement. This Redevelopment Program consists of both matching grants and

loans to eligible applicants. The goal of the Program is to encourage voluntary repair

of existing commercial property within the District. Objectives of the program are to:

(1) Encourage elimination of conditions that could be a serious and growing

menace, injurious to public health, safety and welfare;

(2) Encourage private investment in commercial property within the District

through the use of public incentives;

(3) Stimulate economic and business development within the District by providing

safe environments for workers, businesses and the public; and,

(4) Retain and expand safe employment opportunities with economic

development assistance.

(5) Preservation and promotion of cultural and historical resources.

(II) A matching funds grant is given at the discretion of the URA based upon review

of the applicant’s compliance with program objectives, eligibility requirements and

eligible construction activities.

(III) Redevelopment Grants and Loans – Includes all Private Sector Projects

(exterior, interior improvements limited to only the following; heating, plumbing

or electrical systems, elevator or stair renovations). Please refer to the attached

application check sheet.

(IV) Grants

(1) URA participation = 25% of total project cost

(2) The minimum grant awarded will be $1,000.00

(3) The maximum amount of funding awarded to one project in an annual period

cannot exceed $150,000.00

(4) Maximum payout over 3 years = $450,000.00 if phased correctly

(5) Monies paid out after project completion and satisfactory county inspection

(6) Application available upon request

(V) URA Loans are available for acquisition and renovation costs, terms are flexible.

(B) New Market Tax Credits: the subject property is located in an area that potentially

qualifies it for incentives via New Market Tax Credit (NMTC) financing. NMTC

potentially provides 15-20% of project costs as a subsidy. For more information

https://mtcdc.org/loans/new-markets-tax-credits/.

(C) Butte Local Development Corporation Loan : Low interest rate loans between

$150,000 to $200,000 for equipment, building or working capital. Completed

application which will be reviewed by the BLDC Loan Committee for recommendation

the BLDC Board.

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NAI Business Properties | 18

(D) Montana Board of Investments—Loan Participation: Business Loan Participation Program

Funded from the Permanent Coal Tax Trust. Loan parameters include fixed rate financing for

up to 25 years, maximum participation of approximately $70 million, job creation credits may

reduce posted interest rate up to 2.5%. Additional MBOI programs may apply also.

(E) Community Development Block Grant (CDBG): The goal of the program is to provide jobs

to qualified low and moderate-income persons. Local governments may apply for up to

$5,000 for each job created or retained in the form of a grant for working capital, equipment

purchases, infrastructure improvements, constructions costs, or other eligible business

expenses.

(F) Big Sky Trust Fund (BSTF): Job Creation funds are awarded to local governments in the form

of grants to assist basic sector businesses in creating good paying jobs for Montana residents.

The Business must be a basic sector company with a focus on out-of-state markets and

clients. Each new job created qualifies for $7,500 in assistance. Planning Grants for feasibility

studies are available to qualifying businesses.

(G) State of Montana Primary Sector Workforce Training Grant: A state-funded program that

provides grant funds to primary sector businesses (more than 50% of their sales come from

outside of Montana) for training of new full-time and part-time jobs. The maximum grant award

is up to $5,000 for each new full-time job and $2,500 for each new part-time job. Applicants

must provide $1 of match for every $3 of grant funds.

(H) The above is a sample of financing programs that may apply to the proposed project. As

additional information becomes available specific programs and requirements will be identified.

Funding Options continued…

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NAI Business Properties | 19

ReferencesBeaudette Consulting Engineers, Inc. (May 19, 2010). Northwestern Energy Butte Long Range Facilities Study. Helena.

Butte-Silver Bow. (2008). Butte-Silver Bow Growth Policy Update.

Mosaic Architecture, P.C. (2015). Preliminary Architectural Report. Butte.

MRC. (2015). Best Use Study. Frisco.

Watts, W. C. (July 30, 2015). President. Frisco.

Page 20: 40 East Broadway Street Butte, Montana...(1) C-3 Central Commercial Zone: The C-3 zone is intended primarily to accommodate stores, offices, service establishments, hotels and governmental

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3312 4th Avenue NorthBillings, Montana 59101+1 406 256 5000

naibusinessproperties.com