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HomeMy WebLinkAboutWok Rehab Grant Report 100416 MEMORANDUM TO: Midtown Urban Renewal District Board FROM: David Fine, Economic Development Specialist RE: The Wok Restaurant Demolition Rehabilitation Grant Application DATE: October 4, 2016 Project Description: A request for rehab grant funding in the amount of $25,000 for demolition of the Wok restaurant site. Total project costs are $70,205.93. Project Location: 319 N. 7th Avenue and is legally described as Durston Subdivision, S12, R05E, Acres .0837, N 142.9’ Tract 7, within Bozeman, Gallatin County, Montana. The property is located within the B-2M, Community Business District - Mixed. Recommendation: Approve grant in the amount of $25,000.00. See Project Review Criteria for analysis. Project Review Criteria: The N7Rehab Program provides grants to foster voluntary rehabilitation or redevelopment of eligible commercial properties for the elimination of blight in the North 7th Corridor. To evaluate requests, the following review criteria are used by the Midtown Urban Renewal Board and Staff to evaluate projects. Staff analysis follows each criterion. 1. Public Improvements Does the proposed project address a lack of, or poor condition of: storm water facilities, curb and gutter, sidewalks, landscaping in the right-of-way, parking lot approaches, parking lot access issue, or encroachments into the public right-of-way? No. The proposed project does not address existing deficiencies or public improvements. However, the property owner has previously provided a public access and utility easement in support of the North 7th Avenue Lighting and Streetscape Project. 2. Regulation Compliance Does the proposed project address non-compliant signage, lack of paving or poor condition of paving, ADA access, landscaping, parking circulation or storm water control? No. Improvements to paving or landscaping are not proposed with this project. It is imperative that the contractor plan for leaving the demolished site in a stable and remediated condition that addresses storm water control, weed control, and aesthetic considerations in the event that a new construction project is not immediately forthcoming. Wok Restaurant Demolition Grant Application Page 2 3. Is the building/site currently vacant? Yes. The building has been vacant since September 2015. Due to the condition of the building the owners have been unable to stimulate tenant interest in the existing building. The site, however, at the corner of an important pedestrian crossing, is an excellent spot for mixed use redevelopment. 4. Is it converting a building/site from a non-conforming use to a conforming use? Yes. The existing vacant and obsolete building is not in conformance with the newly adopted B- 2M zoning. A new building would be required to conform to the requirements of the new zoning in terms of orientation to the street and other design considerations. 5. Design and Connectivity Plan Does the proposed project address the site and building level objectives to encourage the rehabilitation and redevelopment of parcels that are underutilized or do not meet current standards, establish a stronger relationship between buildings and the street by providing pedestrian connections and orienting buildings to the street; incorporates pedestrian amenities and landscaping in existing developments, and incorporates public art in small pocket parks and plazas? Yes. The proposed demolition project addresses the site level objectives of the Design and Connectivity Plan by encouraging “the rehabilitation and redevelopment of parcels that are underutilized and that do not meet current standards” (p. 2) Demolishing a vacant and outdated structure will serve this criterion in two ways: It will remove a blighted and vacant building from the corridor, and it will ensure that new development will be compliant with the requirements of the new zoning designation. Moreover, the concurrently submitted technical assistance grant (TAG) application for the site proposes that, “The existing single level building would be replaced with a multi-story, mixed use building with potential housing above, which would anchor the existing corner of N. 7th Avenue and. W. Villard Street.” Additionally, the property owner has previously provided a public access and utility easement in support of the North 7th Avenue Lighting and Streetscape Project. 6. Design and Connectivity Plan Corridor Goals Does the proposed project strengthen the corridor as a neighborhood service center by providing double fronting building, pedestrian connection to public right-of-way and on- site bicycle facilities or landscape buffers when adjacent to residential neighborhoods. No. While the TAG application for this site may allow the property owner to consider these issues, they are not addressed as part of the demolition grant application. Wok Restaurant Demolition Grant Application Page 3 7. Bozeman Design Objectives Plan Does the proposal improve the aesthetic experience by strengthening the appearance, character and feel of the building through the application of guidelines from the Bozeman Design Objectives Plan? To be determined. The TAG application gives the property owner the opportunity to address the appearance and feel of a proposed building, but that work has not been completed at this time. Summary The Design and Connectivity Plan for North 7th Avenue Corridor (DCP) highlighted a number of issues with the corridor that could be remedied by the demolition of existing structures that are non- compliant, outdated and in this case vacant. Redoubling efforts to rehabilitate existing properties that are underutilized and set back from the street will only compound the issues this board is attempting to address with the DCP and the new B-2M zoning. Property owners should be encouraged to proactively demolish and redevelop properties with these characteristics. Such actions clearly address the overarching urban renewal district aim of eliminating blight. The property owners have attempted and failed to attract interest in a facility that has come to the end of its useful life. The owners are optimistic about the site for its redevelopment potential. Staff shares that optimism. It is important for the applicant to accept that despite their best efforts, redevelopment on a cleared site may not be immediate. The applicant should develop a plan to stabilize the site and address longer term aesthetic issues with a cleared site that is not immediately redeveloped. The applicant should also address drainage, storm water, and weed control issues at the time of demolition. The application could be improved by providing a more thoughtful and specific plan for stabilizing the demolished site and addressing aesthetic considerations. It is recommended that a grant award in the amount of $25,000 be given for project costs related to demolishing the site, with conditions. This amount represents the maximum allowed for demolition under the N7 Rehabilitation Program which allows for coverage for up to 50% of demolition costs not to exceed $25,000. The grant should be contingent on verification by Economic Development Department that vendor selection is compliant with the City of Bozeman purchasing policy. The grant should also be contingent on a thorough review and approval of the proposed demolition and remediation plan by the Community Development Department.