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Council committee backs amendment to Westside Markets grant timeline tied to Target project

Gallatin City Council committee · January 14, 2026

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Summary

Staff recommended and the committee approved sending an amendment to the grant agreement for Westside Markets (CHM Green Gallatin LLC) to extend construction and substantial-completion deadlines after permitting delays; the amendment would also tighten force-majeure language and link final payment to completion milestones.

Council members authorized staff to place an amendment to the grant agreement with CHM Green Gallatin LLC (the Westside Markets/Target-related project) on the full council agenda after staff and the developer described schedule and permitting delays.

City staff reviewed the original grant provisions, which required the developer to execute a construction contract and commence construction within 120 days of the agreement's effective date (May 21, 2025) and included a substantial-completion deadline. The developer reported delays obtaining permits, coordinating with the Corps of Engineers and updating contractor bids, which pushed commencement beyond the original 120-day window. Staff recommended an amendment to reset the commencement deadline to Feb. 15, 2026 and to move the substantial-completion target to Dec. 31, 2027; staff also proposed clarifying the force-majeure clause to limit automatic relief to unusually delayed governmental approvals rather than broadly allowing governmental approvals as force majeure. In addition, staff proposed tying final satisfaction of conditions and final payment to a defined substantial-completion milestone and a 90-day punch-list period.

Councilmember questions focused on transparency and whether the city should require the developer to provide the target anchor-tenant agreement or other documentation; staff responded that the mayor would be shown certain confidential materials, but contractual confidentiality considerations remain. Staff recommended the amendment as the fastest path to preserve the grant while allowing the developer the realistic time needed to proceed; council voted to send the amendment to full council for adoption.