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HomeMy WebLinkAbout2001-09-17 Minutes, City CommissionMINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA September 17, 2001 The Commission of the City of Bozeman met in regular session at the Holiday Inn, on Monday, September 17, 2001, at 6:00 pm. Present were Mayor Youngman, Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, City Manager Johnson, Planning Director Epple, City Attorney Luwe, Deputy Clerk of the Commission DeLathower (for the first portion), and Clerk of the Commission Sullivan (for the second portion). None of the Commissioners requested that any of the Consent Items be removed for discussion. Minutes - January 18 and February 7, 2000, and January 30, April 20, August 27, September 4 and September 10, 2001 It was moved by Commissioner Brown, seconded by Commissioner Frost, that the minutes of the meeting of August 27, 2001, be approved as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, and Mayor Youngman; those voting No, none. Mayor Youngman deferred action on the minutes of the meetings of January 18 and February 7, 2000, and January 30, April 20, September 4 and September 10, 2001to a later date. Consent Items City Manager Johnson presented to the Commission the following Consent Items. Commission Resolution No, 3475 - setting mill levies for Fiscal Year 2001-2002 COMMISSION RESOLUTION NO. 3475 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING AND AFFIXING THE NUMBER OF MILLS TO BE CHARGED AGAINST THE ASSESSED VALUATION OF ALL TAXABLE PROPERTY SITUATED WITHIN THE CORPORATE JURISDICTIONAL BOUNDARIES OF THE CITY FOR FISCAL YEAR 2001 - 2002. Award bid - CTEP Pro|ect No. STPE1299(8) - historic lighting in downtown area - Crescent Electric Supply, Bozeman, Montana in the bid amount of $83,163.25; contingent upon MDoT approval Claims It was moved by Commissioner Frost, seconded by Commissioner Smiley, that the Commission approve the Consent Items as listed and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, Commissioner Brown, and Mayor Youngman; those voting No, none. Public hearing - intent to annex 16.92 acres located in the S%, NW% of Section 11, T2S, R5E (3017-3205 West Babcock Street) (A-0106) 09-17-2001 -2- This was the time and place set for the public hearing on the intent to annex 16.92 acres located in the South one-half of the Northwest one-quarter of Section 11, Township 2 South, Range 5 East, Montana Principal Meridian, as set by Commission Resolution No. 3465, entitled: COMMISSION RESOLUTION NO. 3465 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN, AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. The subject property lies along the north side of West Babcock Street and east of Valley Drive and is commonly known as 3017 to 3205 West Babcock Street. Mayor Youngman opened the public hearing. Assistant Planner Caroline stated that staff has reviewed this application in light of the goals and policies set forth in Commission Resolution No. 3137, and the comprehensive staff findings are contained in the written staff report. She briefly highlighted those findings and forwarded staff's recommendation for approval of the application, subject to the following issues being addressed prior to or in the Annexation Agreement: The Annexation Agreement, which addresses all conditions placed on the annexation application by the City Commission, shall be returned to the City of Bozeman Planning and Community Development Department within one year of a City Commission decision to annex the property, or annexation approval shall be null and void. The applicant shall submit an annexation map with a legal description of the property with the Annexation Agreement. The map must be supplied on a mylar (18-inch by 24-inch) for City records and on either letter or legal size paper for recording with the Annexation Agreement by the Gallatin County Clerk and Recorder. One digital copy must also be provided to the Planning Department. The maps must be acceptable to the Director of Public Service. The Annexation Agreement shall contain a section that the landowner acknowledges and agrees that usable water rights, or cash-in-lieu thereof, must be provided to the City of Bozeman per policy 5 of Commission Resolution 3137 prior to final plat approval, final site plan approval, or the issuance of any building permit, whichever first occurs. The amount of water rights or cash-in- lieu will be determined by the Director of Public Service at the time of such development. ,. Water and sanitary sewer services for the three existing homes must be provided at the time of further development or subdivision. Sanitary sewer and water main extensions must align with a total conceptual plan for the specific area. Applicant shall provide and file with the County Clerk and Recorder's office executed Waivers of Right to Protest Creation of SIDs for street improvements to Babcock Street including paving, curb/gutter, sidewalk, and storm drainage. Babcock Street is designated as a collector street. Current subdivision regulations require a right-of-way width of up to 80 feet for collector streets. However, the draft transportation master plan recommends a 90-foot right-of- way for future collector streets. Therefore, the applicant shall be required to 09-17-2001 3- grant easement to the City of Bozeman for one-half of a 90-foot right-of-way (45 feet) for Babcock Street at time of annexation. Dennis Balian, 8893 South 19th Avenue and applicant, noted the Butcher residence is not included in this annexation proposal. The land has been divided into two parcels, affording them a way to connect to West Mendenhall Street. He pointed out this annexation will provide 438 lineal feet of 45-foot right-of-way along West Babcock Street, which the City is currently negotiating to purchase, resulting in a considerable savings to the city. Mr. Balian stated this property is bordered by the city on the east and parts of the northern and southern sides. Frank Harrington, 3125 West Babcock Street, spoke in response to the concerns of the neighbors on Valley Drive. He said many of those neighbors believe greed is the prime motivator for the sale of this property. But all three parties are long-time owners; and this land is no longer useful, so they are selling it for their old age planning and estate planning purposes. Mr. Harrington noted this developer is a long-time local resident with lots of development experience in this area. This annexation will also further the city's goal of in-fill. He conducted an inventory of the seven Valley Drive houses adjacent to this property; and of those, three are two-story, two are single level, and two are split-level. Pam Backstrom, 216 Valley Drive, said she is opposed to this annexation because the annexation, combined with the proposed zoning, will make multi-family housing too dense for this area. She is opposed to this annexation if it will include this density of zoning. Ted Newman, 535 Valley Drive, stated he, too, is opposed to the annexation because this is too high density. There is high density to the east and the west; he wants single-family residential instead. Jim Stephens, 2320 West Babcock Street, spoke in support of this annexation, citing the city's desire to improve Babcock Street for increased safety. This annexation will reduce the number of private property owners the City will need to obtain right-of-way from, and the City will acquire this portion of right-of-way at no cost, enabling them to complete the street improvement project more expeditiously. Joe Hamner, 111 Michael Grove Avenue, stated he is opposed to the requested annexation because of the proposed zoning. Scott Savage, 301 North Valley Drive, said he, too, is opposed to this annexation, with the proposed zoning, because it will disrupt the character of the existing neighborhood in a negative fashion. Greg Kindschi, 505 North Valley Drive, is opposed to this annexation because of the high- density zoning, as applied for. He suggested the City look at West Babcock Street and Durston Road because of their unsafe road conditions and the high speed of traffic. He noted city services are stretched to their limits now; there doesn't need to be more demands on city water and wastewater services. Ken Laudato, 21 Valley Drive, stated his opposition to this annexation. He wants the neighborhood character to remain as it is. He feels high-density housing is moving in on them, and traffic on Babcock Street is an issue, as well. Mr. Laudato also noted the creek behind his property has not run since the Pond Row development has been built. Martie Stewart, 3303 Bitterroot Way, said she is also opposed to this annexation, as stated on the map. She agrees with the neighbors that the density level is too high for this area because of the Durston Road and Babcock Street traffic levels. Daryl Todd, 17500 Wilson Creek Road, Gallatin Gateway and owner of the parcel, said she is in favor of this annexation. She believes she and the other property owners have addressed the concerns of the neighbors with them. 09-17-2001 4- Leona Harrington, 3025 West Babcock Street, said she, too, is in favor of the annexation. She believes the neighbors should have opposed the previous high-density developments, rather than waiting until this parcel to voice their opposition. Dennis Balian pointed out the Development Review Committee's recommendation is for annexation. Commissioner Brown asked if this is raw land. Mr. Balian replied the houses on the south end of the property belong to the owners. Commissioner Brown then asked how many houses. Mr. Balian responded there are three houses on the proposed annexed portion, all located on Babcock Street. Since there were no Commissioner objections, Mayor Youngman closed the public hearing. Commissioner Kirchhoff said he is prepared to move forward with the requested annexation. Both Commissioner Frost and Commissioner Smiley voiced their agreement. Mayor Youngman stated she will support this annexation, even with the difficulties on Babcock Street, because the right-of-way gained will help the City improve that street expeditiously. It was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, to direct staff to bring back an annexation agreement for review and possible action by the Commission. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Smiley, Commissioner Kirchhoff, Commissioner Brown, Commissioner Frost, and Mayor Youngman. Those voting No, none. Continued public hearing - Zone Map Amendment - TD&H Engineering for Gary and Dorothy Butcher; Daryl Todd, Richard Davis and David Davis; and Frank and Dora Harrin.qton to establish initial zoning designations of "R-3" and "R-3a" on 16.92 acres along north side of West Babcock Street, east of Valley Drive (Z-01113) This was the time and place set for the continued public hearing on the Zone Map Amendment requested by Thomas, Dean and Hoskins Engineering for Gary and Dorothy Butcher; Daryl Todd, Richard Davis and David Davis; and Frank and Dora Harrington under Application No. Z-01113, to establish initial zoning designations of "R-3", Residential--Medium-density, and "R-3a", Residential-- Two-family, Medium-density, on 16.92 acres along the north side of West Babcock Street, east of Valley Drive. The subject property is more commonly known as 3017 to 3205 West Babcock Street. Mayor Youngman reopened the continued public hearing. Assistant Planner Caroline presented the staff report, calling attention to the various zonings of adjacent properties. Planning staff finds the initial zoning classifications of R-3 and R-3A are appropriate; while the Zoning Commission is forwarding a recommendation of down-zoning, from proposed zoning of R-3 to R-3A for the eastern half of the property and from R-3A to R-2 on the western half. Commissioner Kirchhoff asked if when the Commission makes their motion, are they bound by any recommendations or can they make a fresh motion? Assistant Planner Caroline responded it is a recommendation only. Planning Director Epple added the Commission can make alternative decisions regarding zoning, but the zoning cannot be more intensive than what has been advertised. Mayor Youngman noted there has been a lot of public testimony requesting R-1 zoning, and she asked to have R-1 zoning clarified for the benefit of the public. Planning Director Epple stated R-1 is the lowest density in the city and is considered urban density, which is ¼-acre lot size. Assistant Planner Caroline stated the R-3, R-3A, and R-2 zoning guidelines are explained in exhibit F, included in the staff report. Mr. Balian noted there are two areas to be considered; the merits of the proposal and public comments. Assistant Planner Caroline has provided the merits of this proposal; and the professionals, 09-17-2001 5- City staff, recommend approval of the proposed zoning. The Zoning Commission, however, recommends reducing the zoning down one step each. It was public comment, and not the merits of this proposal, that swayed the Zoning Commission. Mr. Balian said he believes the public has some valid points; and he asked if there is some way to meet the concerns of the neighbors on Valley Drive, while still meeting the merits of this proposal. To achieve that, he recommended a possible change; to reduce the density slightly from the proposed zoning by doubling the area of R-3A zoning. He would be agreeable to move the boundary line between zones to the center line of the property, which would address the density concerns of the neighbors on their side (Valley Drive) of the property. Mr. Balian suggested a second proposal, one that would address residents' concerns regarding having their views blocked by tall buildings. He would be agreeable to reducing the allowable building height in the R-2 zone to 32 feet, same as in the R-3 zone. He would also be willing to be restricted to constructing single-level duplexes along the western property edge to appease the neighbors as well. Mr. Balian restated his desire to work together with the neighbors to develop a project that will satisfy the applicants'needs, as well as those of the neighbors. Mr. Balian noted the Zoning Commission had made a comment that the transition from one zone to the next should take place within the proposal, rather than outside of it. His proposal has the transition area included within this property; he will make the transition from the existing R-4 zone on the northern edge right onto this property. Dave Crawford, Thomas, Dean, and Hoskins, Inc. and representing the applicants, stated there is a 60-foot wide right-of-way to the west off of Valley Drive. The applicant does not propose a connection through to Valley Drive, in order to try to address the concerns of the neighbors; they want no additional traffic through their subdivision. Mr. Crawford added he lives in an R-3A neighborhood in town, and he feels R-3A is a very appropriate type of zoning for a neighborhood concept. He said he is here to answer any infrastructure questions the Commission may have. Daryl Todd said her family has been residents of the Babcock Street area since 1950; and they have seen many, many changes since that time. There are no guarantees the rural way of life will continue when someone buys a parcel of land so close to a growing municipality. She believes all parties have listened to the concerns of the neighbors, and the developer has adjusted his plans to address those neighborhood concerns. She urged the Commission to consider his proposed changes, which represent a large compromise for him. Without this requested zoning, this land cannot be purchased because all developers who have expressed an interest want to continue the R-4 zoning. Ms. Todd continued, saying Mr. Balian has made changes as suggested by City staff and has incorporated all guidelines as suggested by the City Commission. Everyone on West Babcock Street is anxious to remedy the traffic situation on that street before someone is seriously hurt or killed on that road. Pam Backstrom said she went to the County Zoning Commission, who suggested R-2 and R-3A zoning for this parcel, which seems acceptable. The neighboring residents prefer R-2 zoning, which would provide 64 houses. Amy Zarndt, 109 Michael Grove Avenue, said she doesn't believe these changes are still a good idea. Her family purchased the first home on Michael Grove Avenue; and if she knew what that neighborhood would be like when they purchased that home, they would have never bought it. Parking in that area is terribly inadequate because most of the houses are rental, four-plex units. Ms. Zarndt maintained families will not move into this area because it is too dense and too crowded. She agrees with the neighbors there needs to be lesser density in this area, even though it's too late for the Michael Grove Avenue area. Ms. Zarndt also pointed out this area is sandwiched between two major problem streets and doing anything else to increase traffic on them is not a good idea. Joe Hamner agreed with Amy Zarndt that Michael Grove Avenue is a disaster and begged the Commission to please not build anything like that ever again. He noted those residents cannot even get mail delivery because of parked vehicles blocking the mail boxes; they cannot walk on the sidewalks because of vehicles parked on them. He said he wishes he hadn't moved there; it isn't a pleasant place to live at all. The traffic already moves very fast on Michael Grove Avenue and this 09-17-2001 6- development will further increase traffic on that street. He beseeched the Commission to "please, please, please, do not zone this property anything other than R-2 zoning" Martie Stewart said the Commission is trying to provide more lower income housing in Bozeman; and the area across the street is zoned for that, a modular home development. The Michael Grove Avenue area is an area of transient housing. Their area is a real neighborhood. She asked the Commission to please consider R-2 and R-3A zoning on this parcel. Heather Devries, 112 North Valley Drive, stated she disagrees the zoning was changed because of public comment received; it was changed because two members of the Zoning Commission were familiar with the area and had definite ideas of what this area should be zoned. She suggested the Commission view the differences between the Michael Grove Avenue and Valley Drive areas. She also pointed out the residents pay to maintain Valley Road, and this proposed development will increase traffic on their privately maintained gravel road. Break 6:48 pm - 6:50 pm Mayor Youngman declared a break from 6:48 pm until 6:50 pm, in accordance with Commission policy. Continued public hearing - Zone Map Amendment - TD&H Enqineering for Gary and Dorothy Butcher; Daryl Todd, Richard Davis and David Davis; and Frank and Dora Harrington to establish initial zoning designations of "R-3" and "R-3a" on 16.92 acres along north side of West Babcock Street, east of Valley Drive (Z-01113) Katrina Miller, 98 North Valley Drive, said they built here because it was in the country, yet close to the city. She said she knows Bozeman is growing, but they never expected to have "barracks" in their backyard. She said she doesn't understand why there needs to be multi-family homes; it seems like an issue of greed rather than need. There doesn't need to be more apartment buildings; there needs to be more families in our community. Frank Harrington noted the decision was made long before this as to what type of area this was going to be. A developer cannot sell single-family homes in an area surrounded by high-density zoning. Carolyn Powell, 315 North Valley Drive, said that when she served on a county planning committee, they were asked to specify what they wanted to see in this area. They voted against the mobile home park that is now going in. Apparently five years was wasted on the zoning of this area. Area residents did not know that tall metal gym was going in because that property had been annexed into the city; they also didn't know what was going to be built on Michael Grove Avenue because it, too, was in the city. There is so much traffic on Michael Grove Avenue there needs to be a stoplight put in. Ms. Powell invited the Commissioners to come see what they look at now. They want single- family homes; they don't want this high-density housing built in their neighborhood. Scott Savage, 301 North Valley Drive, noted that on the one hand are the developers and owners of the property in question who want to develop it to the fullest extent because it is more money; and on the other side is the neighbors who don't want this area to change. He feels a combination of R-2 and R-3A zoning will be the best compromise. Kevin Miller, 98 North Valley Drive, noted that as proposed it will be R-3A and R-3 zoning. The developer has an opportunity to build single-family homes in an R-3A district, but they have never mentioned that. He believes the developer has no intention of constructing single family homes. Anything else is too dense for their neighborhood, according to Mr. Miller. Darrel Burkenpas, 124 North Valley Drive, said there needs to be respect for the long-time residents of the Valley Drive area. This Commission should prevent the Valley Grove mistakes from happening again. He believes there needs to be respect for one another, but there isn't. 09-17-2001 7- SuSan James, 301 North Valley Drive, corrected that the northern boundary is actually one- third R-S and the rest is R-4 zoning. She noted there has been discussion about an easement onto Valley Drive from this development; and even though the developer says they don't plan to use that easement to channel traffic, things change. And if they ultimately do, it will have a very negative impact on their property values and way of life. Ross Grubb, 18 Valley Drive, said the Zoning Commission changed its mind because of the properties on Valley Drive. He believes there needs to be an R-2 transition area. Andy Laudato, 21 Valley Drive, stated his concern with West Babcock Street. He said he hopes it does get taken care of soon because it is very dangerous as it is. He reads the police reports and sees the flashing lights to the east every weekend. Also, Pond Row is becoming a serious problem; it is a high crime incident area now. He noted he would prefer R-2 zoning for this area. Gary Butcher, 3017 West Babcock Street, said he is a former member of the County Zoning Commission; and this property had already been county zoned R-3 and R-4. He said he does feel sorry for the residents on Valley Drive, as well as for themselves. Recent development of this area has also changed their plans for retirement. He believes it is already too late for this area, and the current residents shouldn't stop what is already in progress. John Zarndt, 109 Michael Grove Avenue, agreed high density development is not very friendly. He suggested it is up to this Commission to decide what kind of neighborhood they want to create in this area. Mr. Zarndt estimated 90 percent of the residents of the Michael Grove Avenue area are college kids, and those kinds of projects should be closer to the university so the residents could walk or bike safely. Ted Newman said he believes there should be only R-1 zoning in this area, and he is dismayed everyone is starting to agree with R-2. He noted the Zoning Commission didn't understand why the neighbors wanted single-family zoning. He suggested the developer ought to propose R-1 zoning for the area bordering Valley Drive, then go to R-2, then R-3A. The neighbors only want to control traffic effectively in this area. Mr. Newman feels the street improvements must be made before anything else is constructed. He also is unhappy that with all the street improvements made to 1 9th Avenue, there still are no right-turn lanes to move traffic. Dennis Balian said he understands the reason for the neighbors' suspicion, but they have no intention to provide access to Valley Drive. However, if the DRC or the Director of Public Service says they must for safety reasons, then they will have to do that; but they prefer not to. He stated he is confused by some of comments made by the neighbors, asking if they are suggesting there is to be no more R-3 in Bozeman; or just not any in their neighborhood. Mr. Balian noted the parking concerns and barrack-like housing are governed by building codes and zoning. He believes many of these problems may actually be behavior problems. He also stated he has never said he was proposing any single-family residences, but he has said he would be agreeable to single-level housing along the western edge of the subdivision. He also would be willing to put that in writing, as a binding condition. Mr. Balian said he feels it would be preferable to have single-level duplexes rather than multi-level single-family residences in his back yard. He said he has respected the views and comments of the neighbors, but he wonders if they have heard him. He concluded he is asking the Commission to approve duplex zoning on the west half and R-3 zoning on the eastern half. Assistant Planner Caroline clarified that the property to the north is zoned R-4. Also, she pointed out that County zoning district 1 equates to R - general residential. Ms. Caroline noted changes to the zone code should help with the problems on Michael Grove Avenue, as should the revised definition of a household. Since there were no Commissioner objections, Mayor Youngman closed the public hearing. Commissioner Frost asked when the reconstruction of Babcock Street is going to begin. City Manager Johnson replied the City doesn't have all of the rights-of-way secured yet. A negotiator was hired to try to secure those, but he has been rejected by some residents. The next step is condemnation. 09-17-2001 -8- Commissioner Kirchhoff requested the decision on this Zone Map Amendment, requested by TD & H Engineering, be postponed for one week. Mayor Youngman stated this item will be brought back for Commission consideration on September 24th at 6:00 pm. Appointments to Water Conservation Plan Citizen Review Panel It was moved by Commissioner Kirchhoff, seconded by Commissioner Brown, to appoint John Ford, Jeff Rupp, Eric Belden, Steve Green, Gretchen Rupp, and Debra DeBode to the water conservation plan citizen review panel. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Brown, Commissioner Frost, Commissioner Smiley, and Mayor Youngman; those voting No, none. Break - 7:15 pm Mayor Youngman declared a break from 7:15 pm to 7:20 pm, in accordance with Commission policy. The next segment of the meeting was opened with the Pledge of Allegiance and a moment of silence. Commission Resolution No. 3476 - supporting families and friends of victims of the national tragedy on September 11, 2001 Distributed just prior to the meeting was a copy of Commission Resolution No. 3476, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 3476 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, SUPPORTING THE FAMILIES AND FRIENDS OF VICTIMS OF THE NATIONAL TRAGEDY ON SEPTEMBER 11, 2001, EXPRESSING GRATITUDE FOR RESCUE AND RELIEF EFFORTS, AND ENSURING CONTINUED PEACEFUL CO-EXISTENCE IN BOZEMAN. It was moved by Commissioner Brown, seconded by Commissioner Frost, that Commission Resolution No. 3476, supporting families and friends of victims of the national tragedy on September 11, 2001, be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, and Mayor Youngman. Those voting No, none. Continued public hearing - Major Site Plan with Certificate of Appropriateness - WalMart SuperCenter Store for George Westlake and Kay Martinen - to allow construction of an 84,117-square-foot expansion with deviation from Section 18.65.070, Bozeman Municipal Code, to exceed the maximum allowable total signage area by 25 percent in an interchan.qe zone - Lot 1, Minor Subdivision No. 109, Lots 2A and 3A of Minor Subdivision No. 109B, and portions of the Baxter Lane and North §th Avenue rights-of-way (1500 North 7th Avenue) (Z-01112) This was the time and place set for the continued public hearing on the Major Site Plan with Certificate of Appropriateness, as requested by the WalMart SuperCenter Store for George Westlake and Kay Martinen under Application No. Z-01112, to allow the construction of an 84,117-square-foot expansion on Lot 1, Minor Subdivision No. 109, Lots 2A and 3A of Minor Subdivision No. 109B and portions of the Baxter Lane and North 5th Avenue rights-of-way, with a deviation from Section 18.65.070 of the Bozeman Municipal Code, to exceed the maximum allowable total signage area by 25 percent in an interchange zone. The subject property is located at 1500 North 7th Avenue. Mayor Youngman reopened the continued public hearing. She noted a significant volume of written testimony has been received and made part of the public record, and it will be considered by the Commissioners in their decision making. 09-17-2001 -9- Senior Planner Skelton presented the staff report, noting there are a number of exhibits included. He emphasized staff, Development Review Committee (DRC), and Design Review Board (DRB) recommendations are based on the original application The plan before the Commission this evening was developed in response to DRB and DRC suggestions. Prior to final site plan approval, the Commission will need to ensure the annexation and zone map amendment is finalized. Senior Planner Skelton then offered a brief background of this project, noting that it was first considered in early 2000. At that time, the Commission and City staff had concerns with the policies in place to mitigate the impacts of this project. An economic impact study was offered by WalMart and was ultimately conducted by Bay Area Economics, the agreed upon consultant. Both staff and the DRB held a number of meetings with the applicants and their representatives, which yielded this fourth or fifth generation of plans presented here. Mr. Skelton noted the current zoning ordinance establishes a minimum standard of parking, but not a maximum requirement. He pointed out new ordinances have been adopted around the country that have established ceilings on the number of parking spaces, to reduce the seas of asphalt. Staff has attempted to assist the Commission with establishing a ceiling of allowable parking by recommending a ceiling of 4.3 spaces per 1,000 square feet. In its original proposal, the applicant requested 4.59 spaces per 1,000 square feet; however, after further discussion with staff and the DRB, they have now reduced that to 4.4 spaces per 1,000 square feet. Senior Planner Skelton noted staff and the DRB recognized that, with increased use of Oak Street, there would be a need for a third entrance and a public plaza, which the applicant has included. Staff also pointed out the need for pedestrian access from North 7'h Avenue, which the applicant has, hopefully, addressed in this latest submission. In the staff report Mr. Skelton stated the lighting recommendation calls for use of a lighting system that avoids distraction to vehicular traffic and the adjoining properties. Staff also recommends implementing a lighting system that would continue with the same illumination output as the current facility, which is the minimum of all existing shopping centers. Staff requests limiting fixtures to 250 to 400 watts each, with acceptable foot-candle levels typical of the existing parking lot, in lieu of the 1000-watt fixtures originally proposed by the applicant. Regarding the signage deviation, Senior Planner Skelton noted the applicant is requesting a 18.88 percent deviation or to increase signage from 400 square feet to 475 square feet, which is within the allowable parameters. Since this property is in the interchange zone, the Commission can entertain requests to increase allowable signage to 500 square feet. Also, in lieu of proposed wall signage, the applicant is proposing to relocate the present pylon sign to the northwest corner of the property and move it back 41 feet. Staff and the DRB recommend approval of this requested deviation. Mr. Skelton continued, saying because of concerns generated by the economic impact study, a condition of the site plan, staff solicited comments from the Commission relating to the BAE report. City legal staff provided a memo regarding how the findings reported by Bay Area Economics relate to the City Commission's consideration of this site plan application. Issues and concerns identified in the economic impact analysis, by the Commission, and through public comment include wages and benefits paid by WalMart, employment and unemployment rates, Title VII violations, security issues, impacts on the local grocery industry, property taxes, money taken outside the community, affordable housing, and vacant retail space. Of those nine points, staff has outlined four items that may be affected incidentally or secondarily by zoning ordinances; impacts to the local grocery industry, affordable housing, vacant retail space, and money taken out of the economy. Applicant has not responded, in their application for major site plan review, to any of the policy implications identified in the BAE report, nor did the applicant offer to address and affirmatively act to minimize the potential adverse impacts of this project. In response to direction to identify the potential impacts that may occur from future residential development to the property located south of WalMart, east of K-Mart and the County Market, Senior Planner Skelton noted staff has determined the potential density of dwelling units that may occur on the 19 acres of subject property at 495 units. Staff calculations were determined by the following 09-17-2001 -10- formula: this property is zoned R-4, allowing 20 units per acre with 70 percent of the acreage developed at build-out and the remaining 30 percent for easements, open space, and parkland, and including the 30 percent density bonus that could be allowed as a Planned Unit Development. Therefore, staff has some concern with future north/south pedestrian movement. The Development Review Committee and Design Review Board have reviewed this application in light of the criteria set forth; and based upon that evaluation, recommend conditional approval. Senior Planner Skelton pointed out the Commission has three alternatives; to outright approve the application, to grant conditional approval, or to deny the application. Steve Wilson, CLC Associates, Inc. and representing WalMart, presented the "team" present at this evening's meeting, which included Robin Salvagio, Todd Wipple, Ted Swink, Brian Gallik, Steve Rudd, Paul Polzin, Greg Rotert, and Ray Kennedy from Bay Area Economics, who prepared the economic impact study. Mr. Wilson thanked Senior Planner Skelton for time spent on this project over the past 2.5 years, saying he has been diligent, honest, and has worked hard. Mr. Wilson then showed a 4-minute video prepared by WalMart, in answer to the question, "what is a supercenter?". Mr. Wilson asked the Commission to support this expansion and distributed handouts of the most current site plan for Commission review. He pointed out that WalMart has been extremely involved in the Bozeman community, as well as throughout the state of Montana, naming numerous causes they have helped to support and sponsor. Robin Salvagio, CLC Associates, Inc., presented an overview of the history of this project and the new site plans. Commissioner Kirchhoff asked if the plan before the Commission is the original proposal. Ms. Salvagio replied the site plans just distributed have the DRB conditions incorporated into them; these are new plans. Commissioner Kirchhoff then asked which plan the Commission is to vote on. Senior Planner Skelton answered the Commission needs to stay focused on the original application with the 43 conditions. These exhibits may incorporate those conditions, but tonight's Commission action will be based on the first submittal. Ms. Salvagio began her presentation by showing an aerial photo showing the existing WalMart store, which CLC Associates, Inc. designed. The existing store conforms to the existing master plan and is currently zoned B-2. The 2020 draft master plan also shows the current store is in conformance with the B-2 regional commercial zoning designation and shows the vacant parcel behind WalMart, owned by George Westlake and Kay Martinen, is zoned B-2 as well. She noted this site is located in the entryway overlay district for the North 7 Avenue, West Oak Street, and Interstate 90 entryway corridors. Ms. Salvagio stated the franchise's expansion plans in Montana called for four new WalMarts and five expansions, plus a Sam's Club; regular WalMarts in Kalispell and Miles City, new supercenters in Billings and Missoula, stores expanded to supercenters in Billings, Great Falls, Helena, and Butte, in addition to the proposal in Bozeman, and a Sam's Club in Great Falls. She then pointed out that CLC Associates, Inc. had worked with the DRB and the DRC to come up with the first site plan, which they felt was representative of the direction the community was moving; and they also felt they had raised the bar for commercial development in Bozeman at that time. Ms. Salvagio proceeded by providing a history of this project as follows: Spring, 1999 - decision was made to expand the existing store and CLC Associates, Inc. submitted a concept plan showing the proposed expansion and annexation; August, 1999 - CLC Associates, Inc. submitted the application package to the Development Review Committee; November, 1 999 - the first annexation proposal was denied by the Commission because it was desirable to annex the entire 23-acre parcel, rather than only a 2-acre portion; December, 1999 - a major site plan submittal and second annexation proposal was brought before the Commission and the Zoning Commission passed the rezoning of the 2-acre portion to B-2; January, 2000 - the first discussions of smart growth and possible "big box" ordinance surfaces from the Commission, the Commission passed the intent to annex, the smart- growth initiative was defeated, the emergency interim ordinance was proposed and tabled, WalMart's legal representative submitted their proposal, and the emergency interim ordinance was again tabled; 09-17-2001 -11 - February, 2000 - the second DRC review and first DRB review were conducted, the City Commission accepts WalMart's proposal to conduct an economic impact study, DRC's third review of the application was held; March, 2000 - fourth DRC meeting was held, negotiations fell behind to outline the scope of the economic impact study; April, 2000 - Montana Department of Transportation approves the site plan and traffic report; May, 2000 - CLC Associates, Inc. receives a list of site plan and architectural issues to be addressed; June, 2000 - Bay Area Economics (BAE) is hired to conduct an economic impact study after 75 days of negotiations with the City; August, 2000 - draft BAE study is released for review and comment; September, 2000 - Commission approves the annexation resolution, rezoning, and impact fees; October, 2000 - CLC Associates, Inc. contacts the City to reactivate major site plan review, the Commission discusses the draft study publicly; December, 2000 - CLC Associates, Inc. holds an informal hearing with the City to discuss the major site plan and the BAE study; February, 2001 - the final BAE economic impact study is released, the first public hearing to discuss the final BAE report was held by the Commission, WalMart was directed to submit a new site plan; March, 2001 - BAE study was again discussed; April, 2001 - a public work session on the original site plan application was conducted by the Commission, the Commission again discusses the WalMart plan, and CLC Associates, Inc. holds an informal hearing with the DRC and DRB; June, 2001 CLC Associates, Inc. makes a new major site plan application based on recommendations received and the right-of-way vacation of Baxter Lane; August, 2001 CLC Associates, Inc. has first DRC hearing on new site plan application, CLC Associates, Inc. has second DRC hearing and first DRB review hearing, DRC approval is unanimous, CLC Associates, Inc. has second DRB hearing, DRB gives conditional approval by 4-2 vote; September, 2001 - CLC Associates, Inc. presents the revised site plan to the Commission, which incorporates DRB conditions. Referring to the BAE economic impact study, Ms. Salvagio highlighted these findings from that report: the Gallatin Development Corporation notes expansions of this kind have positively impacted the community; this will expand the trade area; the retail market is strong and more growth is needed; the downtown retailers will not be impacted by the expansion of WalMart; there will be a net increase in jobs; base wages paid by WalMart are similar to other grocers; WalMart is one of the top 10 largest employers in Bozeman. Ms. Salvagio then presented an overview of the highlights of the just distributed site plan, containing improvements implemented from DRB, DRC, and staff comments received from all former reviews. She noted the parking ratio on this most current site plan has been decreased from the current §.2 ratio to a 4.3 ratio. The composition of this current site plan is 10 percent of the site used for the existing building and 7 percent used for the expansion, totaling 17 percent of the site used for building; 13 percent paved parking area and 29 percent other pavement; with the remaining 41 percent of this site used for landscaping. Therefore the total composition of this 27.76 acre site will be 59 percent comprised of building and parking; 41 percent comprised of parkland and open space. Ms. Salvagio continued by giving the breakdown of the landscaping area, which is as follows: 13 percent of the landscaping will be interior to the parking lot; 63 percent will be buffer; 5.§ percent used for landscaping of the detention pond and water quality areas; and the remaining 18.5 percent will be used to landscape the pedestrian plaza areas. The architectural features, as highlighted by Ms. Salvagio, were designed in response to DRB and DRC comments and include retaining the existing color scheme, but adding different materials, an improved facade with articulated entrances, covered waiting areas for customers, screened utility and trash areas, lighting over the exits, and painted dock doors to match the tone of the materials used on the building. The applicant has moved away from the traditional corporate image for this building, in part by incorporating brick and integrally colored block and revising the signage and lighting plans. The newly designed entrance features include a pitched roof, gable features with a raised parapet behind to match the pitch, metal roofing, wood beam trusses, and double-wide brick columns on either side. Ms. Salvagio offered this site plan meets development guidelines and current codes in the following manner: this is a permitted use in a B-2 zone; it complies with the setbacks and building height restrictions; it enhances the entryway corridor; it is compatible with the surrounding uses; it provides sufficient open space, off-site parking, and amenities; parking is landscape screened, buffered, and recessed; it complies with land-use, lighting, and parking criteria; bicycle parking is provided; the trash enclosures are screened; the traffic report has been approved by the Montana 09-17-2001 -12- Department of Transportation; and the curb cuts comply with code. This plan also complies with the revised master plan update, the Bozeman 2020 master plan draft, the entryway corridor design objectives, and the Greater Bozeman Area Transportation Plan 2001 update. Ms. Salvagio then went on to delineate how this plan addresses individual Commissioner concerns, commenting first on Commissioner Frost's concerns regarding human scale; orienting the building to Oak Street with no parking between the building and the street; provide pedestrian amenities at the front of the store; automobile circulation at North 7 Avenue and Oak Street intersection; sensitivity to the gateway overlay criteria; conformance to the master plan; and conformance to the zoning code. Commissioner Brown's comments which have been addressed include adding natural light in the building; preventing a "dark store"; providing oil/grease interception areas; provide concealed, recessed lighting; and additional traffic concerns. The issues Commissioner Kirchhoff desired to have addressed include the plan's conformance with the master plan, zoning codes, entryway overlay guidelines, and gateway overlay district guidelines; expansion toward North 7 Avenue; promote high quality standards for groundwater, surface, air, and water; promote businesses that compliment the surrounding land and beauty of the area; encourage a strong business/community relationship; encourage energy conservation; encourage the expansion of existing businesses, providing they are harmonious with the natural environment; ensure quality development along major corridors; provide compatible development with adjacent patterns; and the site plan must reduce the asphalt area in front of the building. Commissioner Smiley requested a plan that would break up the building facade; reduce the amount of parking; provide more articulation in building design; integrate the building with the site; provide a sidewalk on Oak Street, and provide better pedestrian connections. CLC Associates, Inc. has attempted to respond to Mayor Youngman's requests, with this latest site plan, to provide a sensible parking ratio; provide more usable green space; promote pedestrian friendliness at the store approaches; break up the front building elevation; add more detailing and design intrigue to the building; and increase and enhance the landscaping. In conclusion, Ms. Salvagio stated it is unrealistic to expect one expansion to correct all that is wrong with the city. What can reasonably be done is to raise the bar with each project so they become a part of the solution, and this project raises the bar in Bozeman. Upon its completion, this expansion will be nicer than any other project in this town. She reminded the Commission this is a land-use decision for expansion of an existing store, with no neighborhood opposition. The plan provides retail diversity and addresses the Commission's specific comments. She, too, thanked staff, Senior Planner Skelton in particular, for the excellent job done with this application; it was handled with a high level of expertise. Break 9:12 to 9:21 p.m. Mayor Youngman declared a break from 9:12 p.m. to 9:21 p.m. in accordance with Commission policy. Continued public hearing (continued) - Major Site Plan with Certificate of Appropriateness - WalMart Super Center Store for George Westlake and Kay Martinen - to allow construction of an 84,117- square-foot expansion with deviation from Section 18.65.070, Bozeman Municipal Code, to exceed the maximum allowable total si.qna.qe area by 25 percent in interchange zone - Lot 1, Minor Subdivision No. 109, Lots 2A and 3A of Minor Subdivision No. 109B, and portions of the Baxter Lane and North 5th Avenue rights-of-way (1500 North 7th Avenue) (Zo01112) Mr. Don White, attorney representing the landowners, George Westlake and Kay Martinen, noted that some of the issues raised involve the landowners. He briefly highlighted the history of annexing the 23-acre parcel immediately to the east of the current WalMart site, indicating that he has a signed copy of the annexation agreement in his file awaiting the decision on this application. He stated that, for the past two years, the landowners have worked with the City and paid a portion 09-17-2001 13- of the costs of the BAE study, and previously donated portions of the right-of-way for the West Oak Street project. He noted that the 23-acre parcel to be annexed is surrounded by the city, and his clients feel annexation and development within the city limits is appropriate. The property owners are in favor of vacating North 5th Avenue as proposed on the site plan and, since they own all abutting properties, would be willing to take the steps necessary to seek that street vacation. Mr. White turned his attention to the issues identified in the memo from Senior Planner Skelton, which was submitted at the close of today's business day. He noted concerns have been voiced about the impacts on the "R-4" zoned property immediately to the south, which is also owned by the Westlakes. The applicants have no particular plans for development of this property and would be willing to entertain activities which would require rezoning. He then addressed another concern, which revolves around impacts on other stores, stressing that limiting competition is not a governmental function. He questioned how the issue of affordable housing can be addressed in conjunction with this commercial zoning issue, suggesting it is more appropriately addressed within the residential zoning areas. He noted that the BAE study barely brushed on the issue of affordable housing but did not focus on it and, in fact, he noted the study says perhaps higher wages lead to higher prices and less affordable housing. He concluded by addressing the issue of vacant space, noting that if WalMart defaults on the lease, the property and building will revert to the Westlakes, who must then re-let the space. He stated the best protection from vacant space is a strong trade center, noting he has watched the uses of existing space change over the years. He concluded by pledging his clients' willingness to work with the City on future development along West Oak Street. Ms. Karla Hellman, 1062 West Oak Street #19, stated she is the personnel manager at WalMart. She noted the Commission will hear testimony that WalMart is not competitive in its wages or benefits and that it only hires part-time help; however, this is not true. She noted, in fact, that 80 percent of the employees in the Bozeman store are considered full-time, and the store has excellent benefits for both full- and part-time employees. She stated that wage comparisons throughout the community reveal they are very competitive and, in many instances, they pay more than the going rate. Also, they are flexible in scheduling work hours, which is beneficial for college students. She concluded by stating that, as a single mother, she finds it difficult to raise a family in Bozeman, largely because of housing costs. She concluded by encouraging approval of this application. Mr. William Davis, 307 South Bozeman Avenue, stated that in his 79-F years of living in Bozeman, he has seen many changes, including the coming and going of service stations. He feels the public should decide whether to go to WalMart or any other grocery store or drug store and encouraged approval of this application. Mr. Mark Haggerty, 308 South 5th Avenue, suggested that the Commission approve this application with several conditions or mitigations. He turned his attention to some of the recommended conditions, stating he does not support vacation of the North 5th Avenue and Baxter Lane rights-of-way, as identified in Condition No. 20. He cautioned that a super center will probably not be located in this building forever and, in conjunction to re-use of the site, the public rights-of-way may be needed. If they are vacated, the City may encounter the need to purchase them in the future. Under Condition No. 25, Mr. Haggerty proposed that the applicant provide 2.83 parking spaces rather than the 4.3 spaces per 1,000 square feet proposed. On Condition No. 27, Mr. Haggerty encouraged the Commission to not approve the requested signage variance. Mr. Haggerty shifted his attention to the economic impact study, noting it identifies growth and captured sales from existing businesses as the source of sales for the super store. He cautioned that growth may not be enough to sustain a new super store, and stated he does not believe it is appropriate to encourage people in other communities to take business from their local stores to a super store. He concluded by suggesting that WalMart work within the transportation plan rather than implementing its own shuttle service and noting that they should contribute to affordable housing in the community since they will be contributing to the demand. Mr. Ron Rosenthal, 255 Painted Hills Road, urged Commission approval of the major site plan, noting he believes in the free enterprise system and feels that government should promote it. He noted that people will determine where they want to buy, and some may choose not to shop at WalMart. He concluded by encouraging the Commission to recognize the additional tax dollars that 09-17-2001 4- will be generated by a super store, and cautioned against taking steps that might result in another business locating outside city limits. Ms. Deann Milmine, Gallatin Gateway, noted that, on a recent trip, she shopped at a new super center and found it easy with her small children; however, during that same week, she shopped at two other grocery stores. She concluded by encouraging the Commission to support the requested expansion. Ms. Joyce Kutay, 8360 Calico Drive, encouraged Commission approval of this application, noting that many other businesses have constructed here over the past ten years. Dr. John Heetderks, 5056 East Baseline Road, voiced concern that the loss of Osco and Zoot will cost the community in tax revenues, and encouraged approval of this application. Mr. Frank Schledom, 1208 North 8th Avenue, indicated he supports this application for a number of reasons, with the basic reason being the privilege to shop where he wants. Mr. Jerry Perkins, 511 North Wallace Avenue, stated that, as a businessman, it is frustrating to see how long it has taken to get this project through the process, without regard for the additional costs. He noted the applicant has gone far to meet the City's requirements at a higher standard than has previously been required. He stated that competition is good for everyone and encouraged the Commission to allow the marketplace to determine the wages. He also encouraged the Commission to approve this application without requirements for affordable housing. Mr. Andy Jackson, Belgrade, spoke in support of the requested expansion, noting that economic diversity and growth are needed in the community. He stated that if there is a shortage of workers, they will pay more. He concluded by encouraging the Commission to recognize that WalMart pays $600,000 a year in taxes. Ms. Sandra Harris, 805 West Villard Avenue, stated she is a WalMart associate and a single mother who has lived in the Gallatin Valley for 28 years. She noted that not everyone in the valley is affluent and there is a need for this type of retail outlet. She has worked at WalMart for five years and has been treated better than at other places, including insurance and paid vacations. She noted that the community is currently losing dollars because people are traveling out of town to spend their monies, and concluded by encouraging approval of the requested expansion. Ms. Shawna DeBoer, Belgrade, stated she is a support manager and has worked at WalMart for five years. She noted that, as a single mother, the store gives her the opportunity to give her son things he wants, not just the things he needs. She concluded by voicing her support for the requested expansion, noting it gives people a choice. Mr. John Plenke, Belgrade, stated he was impressed with the presentation, noting that WalMart has been willing to continue jumping over the bar, even as it is continually raised, and concluded by encouraging approval of the application. Ms. Wendy Neely, Belgrade, stated her husband is a local Army recruiter and, since she has been in the military for the past sixteen years, she has relocated many times. She indicated that she has worked at WalMart for a year, and encouraged approval of this application. Mr. Brian Tibbs, 2220 West Main Street, spoke in support of the requested expansion. Ms. Helen Zinner, Gallatin Gateway, stated there are plenty of grocery stores in Bozeman at the present time and voiced concern that locally owned stores will struggle if this application is approved. Ms. Alana Mueller, 408 South Tracy Avenue, stated that, until just recently, she was a Iow wage earner and, even then, she shopped at the local grocery stores. She voiced concern that, even though WalMart prices may be Iow initially, once they drive out the competition, the prices will go up. She concluded by encouraging the Commission to not approve this application. 09-17-2001 Ms. Kelly Pollington, 16 Lancelot Lane, voiced her opposition, noting that an increase in wages is what is needed, rather than an expansion that includes more Iow-paying jobs in the community. Mr. Joel Dunbar, 1722 West Beall Street, stated he works at Safeway and is concerned about the impacts that the proposed expansion will have on the grocery businesses as well as the economy of the community. He concluded by stating he does not feel that the community needs the expansion. Mrs. Rachael Wallace, 401 South Willson Avenue, noted that her major concern is the proliferation of large retailers, which changes the community into a regional center and takes away businesses from the smaller surrounding communities. Mr. Joe Zinner, 113 South Wallace Avenue, noted that some of the previous speakers have spoken about traveling to other communities to shop at superstores, and questioned the economics of doing so. He noted that the parking lot and beautiful foliage were emphasized in the presentation, but asked where the shopping carts are to be stored. Mr. Nicolai Cocergine, Butte, noted he represents many families in Bozeman. He asked the Commissioners to address Bullet Nos. 3, 6, 10 and 11 in the executive summary in the Bay Area Economics (BAE) study, asking what WalMart's plan is to mitigate the damage resulting from the expansion of the store, including the loss of higher paying jobs with benefits. He also asked how much WalMart plans to contribute to existing businesses when they lose up to 20 percent of their sales. Mr. Rick Roth, employee in a local supermarket, stated Bozeman is very competitive in the grocery market. As a result, he suggested the $368 identified in the BAE study should actually be $320. He noted the report also estimates the impacts on existing supermarkets at 14 percent; however, other stores in the area have reported decreases of 25 to 40 percent in their sales when a superstore has entered the market. He stated the result of the requested expansion will be devastating because of the loss of high paying jobs with health benefits provided. Mr. Scott Grier, 217 East Granite Street, stated he works for Safeway and is concerned about the impacts that a WalMart superstore will have on the community's economy, particularly those in the grocery business. He noted that Montana has a tourist driven economy and a natural beauty that he does not want to see destroyed. Ms. Shannon Boutwill, 217 East Granite Street, stated she was raised in the Denver metro area and knows what corporate America does to cities, and she does not want to see that happen in Bozeman. Ms. Sue Turpin, Gallatin Gateway, stated she works for Town and Country and is concerned about this proposed expansion. She noted that her husband worked for WalMart for a short time, and she made considerably more money than he did. She stated her biggest concern is not groceries; rather, it is her mortgage and power. She concluded by stating that WalMart's monies will not remain in the community; rather, they will support the corporate structure. Ms. Cynthia Davis, 22445 Frontage Road, stated she was born and raised in the Bozeman area and has been involved in retail for over fifteen years. She characterized Montana as an agricultural state, built on simple things and simple ways of living, and encouraged the Commission to not approve this expansion. Mr. Sean Recker, 610 South 3rd Avenue, stated he does feasibility studies and economic studies and he has reviewed the BAE report and spoken to the firm. He noted there are some gaps in the research in terms of tax impacts, mainly because the state has no sales tax. He then reviewed data on economic impacts on the community and concluded by noting there are many vacant big box stores around the country. Mr. Carl Esbjornson, 236 Marilyn Court, stated he is opposed to the requested expansion, noting there are already enough supermarkets in the community with excellent prices and service. 09-17-2001 16- He noted that companies such as Zoot and Right Now Technologies have brought in high paying jobs for local people. He characterized the community outside "old town" as pretty ugly and noted the last thing needed is more parking lots and cars. He concluded by thanking the Commission for requiring an enhanced design, if this application is approved. Mr. Don Driver, 120 Lake Drive, stated he works for a locally owned grocery store that will truly be affected by WalMart expanding. He noted that the residents of the community have built the existing grocery stores, even when the economy has not been good, and WalMart was not part of that process. He concluded by asking that the Commission not approve this application. Mr. Clark Finch, Manhattan, stated that he purchased Heebs six years ago and has owned a store in Manhattan for twenty years. He noted that a WalMart superstore will have an impact on the community and, while it won't affect Main Street, it will have a negative impact that results in closure of some of the local stores. He thanked the Commission for considering the impacts on small businesses during the decision-making process. Mr. Robert Castro, Butte, noted that WalMarts and K-Marts close their doors when they can't do business in a community, leaving vacant stores. He stated that, during their presentation, representatives from WalMart listed how much they give to the community. That percentage, however, is embarrassingly Iow, particularly when compared to the contributions that local businesses make to the community. Mr. Nicholas Voulkos, 506 North 16th Avenue, indicated he has worked at Safeway for five years and has recently moved into his own home. He noted that if a WalMart superstore opens here, his wages will go down and he will not be able to afford his own place. He stated that WalMart employees say they are paid well, but WalMart refused to give accurate data on employees' wages for the economic study. Mr. Vince Ballotta, 1632 South Rouse Avenue, stated he works for Town and Country, an employee-owned business with 70 employees. He voiced concern about the overall operations of their store and the impacts that the proposed superstore will have. He concluded by encouraging the Commission to consider the grocery retail industry, not just the fine architectural details. Ms. Chalice Stevens, 1207 East Main Street, stated she moved from Arizona to Bozeman a year ago and currently works at Safeway. She noted that a WalMart superstore will impact the competitive balance of the existing grocery market, with the result being many jobs suffering. She believes in customer service and helping people in the community, and would like to stay in Bozeman but will leave if a superstore threatens her job. Ms. Shellie Barber, 307 Golden Valley Drive, stated she has been employed at Town and Country for fourteen years. She noted that she moved to Bozeman because of the quality of life and she does not want to see growth happen so quickly that it takes away from existing businesses. Mr. Jeff VanDenNoort, 524 East Davis Street, stated he is a corporate economist by trade and has worked in the planning departments of large corporations. He noted that he has reviewed the BAE study, and found the most important line is the estimated sales capture from the trade area. He voiced concern that if this application is approved, some businesses may close, thus reducing the amount of competition. He concluded by noting he would like to see comparison prices on a basket of groceries. Mr. Larry Stevens, Helena, stated he works for a local supermarket owner. When they heard about this application, they did some checking and found that WalMart typically prices the groceries below their competition and, once those stores have closed, they raise the prices. He then questioned why this company is working so hard to come into the area to obtain an estimated 14 percent of the market. Mr. Chris Nixon, 719 North Wallace Avenue, noted that, in the natural world, when all pieces are working together, the result is a healthy organism; and growth of one part at the expense of others is cancer. He stated that Bozeman is a healthy organism now, with smaller grocery stores as 09-17-2001 17- well as corporate stores, and he is concerned that a WalMart superstore could be a detriment. He concluded by commending the City staff and review boards for forcing the applicant to provide plans for a beautiful site if this application is approved. Mr. Jon Gerster, 719 North Wallace Avenue, stated that, as a businessman, he understands the desire to grow and prosper. He noted, however, what is really good for Bozeman is pro business and pro neighborhood; and he is concerned that a WalMart superstore will result in the loss of competition and a corporate store whose purpose is to make money. He concluded by cautioning that the community can support only a limited amount of retail. Mr. Lowell Springer, 117 Hoffman, addressed the integrity of the process, noting that over the past 2 ~ years he has observed the applicant's progress in meeting the various criteria that have been laid out. He stated that the applicant has been most responsive to the staff and advisory board requirements in just about every instance, and the resulting site plan and architecture surpass those requirements. He concluded by encouraging the Commissioners to follow the process as set forth in the zone code as they complete the process. Mr. Howard Eoff, 86 East Baxter Lane, concurred with Mr. Springer's comments, noting that the Commissioners were not elected to determine who should do business in the valley; rather the decision should be based on the zoning process and the merits of the application. Break- 10:52 to 11:02 p.m. Mayor Youngman declared a break from Commission policy. 10:52 p.m. to 11:02 p.m. in accordance with Continued public hearinQ (continued) - Major Site Plan with Certificate of Appropriateness - WalMart Super Center Store for George Westlake and Kay Martinen - to allow construction of an 84,117- square-foot expansion with deviation from Section 18.65.070, Bozeman Municipal Code, to exceed the maximum allowable total signage area by 25 percent in interchange zone - Lot 1, Minor Subdivision No. 109, Lots 2A and 3A of Minor Subdivision No. 109B, and portions of the Baxter Lane and North 5th Avenue ri.qhts-of-way (1500 North 7th Avenue) (Z-01112) Mr. Steve Wilson, CLC, submitted a petition of support containing approximately 1700 signatures and indicated a willingness to respond to questions. Commissioner Kirchhoff acknowledged that the applicant has responded to each and every request pertaining to the site plan; however, his questions and issues pertain to the economic impact study. He recognized that most applications are subject to review under the zone code provisions for site plans only; however, in this instance, Mr. Joe Sabol, former attorney representing WalMart, offered to complete a fiscal impact study in light of an impending limitation on big box businesses. The result is a study completed by Bay Area Economics (BAE), which he feels has not been fully addressed. Responding to questions from Commissioner Kirchhoff, Mr. Ray Kennedy, Bay Area Economics, indicated that he was retained in May or June 2000 to complete the economic impact study; it took a couple months to do the research and prepare the draft report; and an initial draft was submitted to WalMart in August or September 2000. Review of that draft report revealed gaps in the information provided, and WalMart subsequently provided additional information on the ranges of wages, hours worked and typical percentages of part-time and full-time employees. He indicated the result was no change in total annual payout, but a change in the distribution among employees. Commissioner Kirchhoff acknowledged that WalMart serves a market niche by providing a wide variety of products at Iow prices; and indicated that he is satisfied with the site plan. He noted, however, he has identified four areas of concern, based on the BAE study, that he feels must be mitigated: (1) impacts on the existing grocery stores in Bozeman, particularly the locally owned; (2) monies being taken out of the community; (3) affordable housing; and (4) vacant retail space. 09-17-2001 -18- Commissioner Smiley noted that as larger grocery stores, such as Safeway, came into the community, the small corner grocery stores disappeared. She stated, however, they are resurging, as evidenced by several new stores, such as Casey's Corner. She concluded by questioning why the assumption has been made that WalMart will have a negative impact on the community. Mr. Paul Polzin, representing CLC, stated that data does not support a link between Iow wages and affordable housing. He further noted the wages paid by WalMart are "statistically indistinguishable" from those paid by other firms, on both statewide and local averages. He further noted that wages are individual while housing is based on a family unit that may have more than one income; thus, the two issues cannot be successfully linked. He then turned his attention to several different research articles, identifying key issues in each. He stated research reveals a variety of reasons for working multiple jobs, noting that nearly half work two or more jobs to meet household expenses while the remainder do so for a different reasons, such as purchasing a special item, experience or the enjoyment of working a second job. Studies also revealed that 1/3 of today's teenagers hold jobs and, even in Iow-income households, their earnings are generally used for their own expenses rather than being contributed to the household expenses. Studies also show that long- term minimum wage employment is relatively rare. Mr. Polzin concluded by turning his attention to predatory pricing, noting that, in reality, the theory is flawed and, in no instance, has it actually worked in practice. He stressed that, if a firm does succeed in driving out competition, new competitiOn will enter the market. Commissioner Kirchhoff responded that, in the two years that this application has been going through the process, Commissioners have received a significant amount of correspondence and newspaper clippings from around the country and the world. Commissioner Smiley stated that, based on experience, it appears a new store coming into town checks the prices in other stores and, even if their prices are lower initially, within six months they are the same as anywhere else in the community. Mr. Polzin noted that food prices in Bozeman are slightly below the national average. Responding to Mayor Youngman, Mr. Polzin stated that there are many ways for both locally owned and national competitors to compete with WalMart; and one of those would be to find the niche areas. Mayor Youngman turned the conversation to housing, noting that the list submitted by WalMart's representatives avoided that issue. She noted that in other communities, WalMart has been involved in addressing housing needs in a variety of ways, including paying fees of up to $5 per square foot. She voiced concern that more pressure will be placed on the limited supply of affordable housing in Bozeman because of the Iow pay. Mr. Polzin responded that, statistically, WalMart is at average in its pay for the industry and the positions. He also noted that housing costs in Bozeman are below the national average and declining. Mr. Wilson questioned why the Commission is asking WalMart to help with the affordable housing issue when it pays the same as other retailers in Montana and other retailers new to the community, such as Target, Costco and the tenants of the Bridger Peaks Town Center, have not been required to do so. He also expressed concern that this could be the issue that "kills this deal". He voiced frustration that the formal request to provide information on this issue was received at 5:30 p.m. today, despite repeated requests for a written list of issues to be addressed. He reiterated that WalMart has over 700 local suppliers and vendors in Montana, representing $20 million in sales. He then turned his attention to dark stores, noting that WaIMart has never had a supercenter go dark. He indicated the reason a store goes dark is because it was located in an area where it cannot expand and, thus, needs to be relocated. He noted that a dark store is a burden on the company, since it must continue to pay rent or make lease payments; and it is their desire to dispose of that site as quickly as possible. 09-17-2001 -19- Commissioner Smiley stated she does not feel the City has developed the framework necessary to require WalMart to address the housing issue, noting the result of doing so would be targeting one business. Commissioner Kirchhoff indicated he might have agreed with that position except for the fact that the company's attorney suggested the impact study be undertaken. He then reiterated that, while he can support the site plan, if the other issues are not addressed, he cannot support approval of this application. Commissioner Brown stated that, from a design standpoint, the application now before the Commission is a significant improvement from the original proposal. Commissioner Frost stated that all of his design concerns have been addressed in the revised plan. He also indicated that, as a result of conversations during the break, he has been assured his concerns can be adequately addressed by imposing conditions. Since there were no Commissioner objections, Mayor Youngman closed the public hearing. Based on their discussions, the Commissioners all indicated support for the site plan as submitted at this meeting. Mayor Youngman noted that she has concerns if the impact study is totally ignored. Commissioner Kirchhoff stated, if the applicant is unwilling to address the impacts, that will determine his vote. Commissioner Smiley stated she has witnessed 52 years of shifts in the community, and she does not believe raising the bar one more time and requiring WalMart to address affordable housing will be as effective as developing an affordable housing policy that includes everyone. She concluded by noting that the largest business expense is salaries; and those monies will stay in Bozeman. Commissioner Brown stated one of his biggest concerns is dark stores. He noted that fads change, as evidenced by the empty stores in the shopping center on West Main Street. He also voiced concern about the BAE study, noting it was done for WalMart and not the City, and he does not totally agree with what appear to be the conclusions of the study. He concluded by indicating that he does not believe his reservations and concerns are great enough to result in denial of the application. Commissioner Frost requested that, due to the late hour, this decision be delayed for a period of one week. Mayor Youngman acknowledged Commissioner Frost's request and announced that the decision will be included on the agenda for the 6:00 p.m. portion of next week's meeting. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. (1) Copy of a letter from Montana Department of Transportation, dated August 22, forwarding crash data on Main Street in Bozeman. (2) List of planning projects for upcoming Commission meetings. (3) Agendas for the County Commission meetings to be held at 9:00 a.m. on Tuesday, September 18, and 9:00 a.m. on Thursday, September 20, at the Courthouse. 09-17-2001 - 20 - (4) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, September 18, at the Professional Buidlng. (5) Agenda for the City Planning Board meeting to be held at 7:00 p.m. on Tueday, September 18, in the Commission Room. (6) Memo from Superintendent of Facilities and Lands James Goehrung, dated September 14, attached to which was a revised copy of Ordinance No. 1546, reflecting the requested changes. Adjournment - 12:02 a.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Smiley, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, Commissioner Brown and Mayor Youngman; those voting No, none. ATTEST: ROBIN L. SULLIVAN Clerk of the Commission PREPARED BY: KAREN L. DeLATHOWER' Deputy Clerk of the Commission 09-17-2001