HomeMy WebLinkAbout04-03-17 City Commission Packet Materials - C4. Cash In-Lieu for Professional Drive Apartments1
Commission Memorandum
REPORT TO: Mayor Taylor and City Commission
FROM: Mitch WerBell, Assistant Planner Martin Matsen, Director of Community Development
SUBJECT: Request for Cash In-Lieu of Parkland Dedication for the Professional
Drive Apartments, located at 766 & 776 Professional Drive, Site Plan Application 17090
MEETING DATE: April 3, 2017
AGENDA ITEM TYPE: Consent (Quasi-Judicial) RECOMMENDATION: That the City Commission approve the request for cash donation
in-lieu of parkland dedication in the amount two times the market
valued, capped at $30,000.00.
BACKGROUND: The subject property is 0.9669-acres, located at the intersection of Professional Drive and College Street, and zoned R-O with an underlying growth policy
designation of Residential. The site plan application proposes two residential apartment
buildings, containing 12 units each for a total of 24 dwelling units. The required parkland for this
development is 0.348-acres. The applicant requested to pay cash in-lieu of land dedication at two times the market value, capped at $30,000.00.
The Development Review Committee considered this proposed development at its March 22,
2017 meeting. The review identified several required Unified Development Code (UDC)
corrections including the necessity of the City Commission’s approval of an alternative parkland dedication proposal. If the City Commission chooses to not to approve the request for cash donation in-lieu of parkland dedication, the project would necessitate a significantly different
design.
There are a number of ways the UDC provides for satisfying the parkland dedication requirements, with the number one choice being physical land. The applicant must identify if dedicating parkland can be accomplished on the site, within the surrounding vicinity or through
the protection of a unique feature (wetlands, historic location or other feature). Another
alternative is to provide cash in-lieu or improvements in-lieu for an existing park site. Bozeman
Ponds Park is within one half-mile of the development. An existing shared use pathway will serve this project and allow for multimodal transportation directly to Bozeman Ponds. The
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project, as proposed, conforms to the minimum density requirements of R-O zoning. If the
applicant provided land dedication, it would consume up to 40% of the subject property and
reduce the density factor by two. The Recreation Parks Advisory Board (RPAB) Subdivision
Review Committee considered the request at its March 2, 2017 meeting, concurred with the applicant’s request and findings, and unanimously recommended that the Commission accept the cash in-lieu proposal.
Based on the site layout, existing perpetual easements, proximity to Montana State University,
residential infill objectives, existing transportation pathways, and the endorsement of the RPAB Subdivision Review Committee, Staff recommends that the Commission approve the applicant’s request for cash in-lieu of parkland dedication.
Sec. 38.27.020. - Park area and open space requirements.
A. The area required by this subsection shall be provided. The required area or its equivalent may be provided by any combination of land dedication, cash donation in-lieu of land dedication, or an alternative authorized by section 38.27.100, subject to the
standards of this chapter.
1. When the net residential density of development is known, 0.03 acre per dwelling
unit of land shall be provided.
a. When the net residential density of development is known at the time of
preliminary plat and net residential density is in excess of eight dwellings per
acre, the requirement for dedication for that density above eight dwellings per
acre shall be met with a cash donation in-lieu of the additional land unless specifically determined otherwise by the review authority.
b. These requirements are based on the community need for parks and the development densities identified in the growth policy and this chapter.
c. Net residential density of development is known when a plat or site plan depicts a set number of lots and the final number of residential units at full
buildout can be reasonably determined.
d. When developed as group living, in lieu of 0.03 acres per dwelling unit, an
area of 575 square feet per resident shall be provided up to a limit of 27
persons per net acre.
e. The required area dedication or its equivalent shall not be required for any
residential density in excess of the following:
(1) For development within the R-1, R-2, and R-MH zoning districts,
the maximum net residential density shall be ten dwellings per
acre.
(2) For development within the R-3, R-4, R-O, and REMU zoning
districts, the maximum net residential density shall be 12 dwellings per acre.
(3) For development within other zoning districts not previously
specified and developed for residential uses, the maximum net residential density shall be 12 dwellings per acre;
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Based on the parkland calculations pursuant to Section 38.27.020 of the BMC for 12 units per
acre of known density:
0.9669-acre site X 12 units/acre X 0.03 acres/unit = 0.348-acres
The appraised value for the fair market value of land that would have been dedicated is $1.23 per
square foot. Therefore, the value of the total cash in-lieu of land dedication is $18,645.57.
APPLICANT’S PROPOSAL: The applicant proposes to pay cash in-lieu of land dedication at a rate of two times the market value, capped at $30,000.00, due to the additional cost of improving parkland beyond the initial purchase price and the nature of this residential
project in close proximity to the university.
FINDINGS FOR SUPPORT: The goal of parkland dedication is to provide publicly dedicated land for recreational purposes to mitigate the impacts of additional residents need for services. The code states that applicants can request to accomplish their parkland requirements
with a cash donation in-lieu of land dedications.
Sec. 38.27.030. - Cash donation in-lieu of land dedication. A. The review authority may determine whether the park dedication must be a land dedication, cash donation in-lieu of land dedication or a combination of both. When making this
determination, the review authority shall consider the following:
1. The desirability and suitability of land for parks and playgrounds based on size,
topography, shape, location or other circumstances; and
R-O (Residential-Office) zoning provides for and encourages the development of multihousehold and apartment development and compatible professional offices and businesses that would blend well with adjacent land uses. Office uses exist to the
north of the subject property and residential uses exist to the west and east of the
subject property. Parkland dedication for this property would leave an isolated mini park. A large community park is located within on half-mile of the development, which is served by a complete transportation network.
2. The expressed preference of the developer.
The developer requested the provision of cash-in-lieu and supplied the required
documentation and appraisal.
3. Location of the site within the B-3 zoning district.
B-3 zoning has an automatic allowance for cash in-lieu. Residential developments within the R-O zoning district must obtain City Commission approval to allow for the
cash compensation.
Parks, Recreation, Open Space, and Trails Master Plan 8.4.3 Cash-in-Lieu Criteria. 1. Proximity to Existing Parkland. Adjacency to existing parks may provide unique
opportunities to aggregate and consolidate parkland into larger and more useful parks.
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The subject property is not directly adjacent to any existing parks. The Bozeman Ponds Park is located within one half-mile of the project.
2. Size of Land Available for Parkland. When only small pieces of parkland are available it may be preferable to get the cash-in-lieu. However, these small parcels might make
perfect mini parks if need is demonstrated by this plan.
The total required parkland dedication is only 0.348- acres. Utilizing Staff time to
maintain a public park of this size would be a burden on the City.
3. Housing Density/Infill Projects. Lower-density development is characterized by lots with
yards, whereas high-density lots typically do not have large yards; high density
development may, in fact, have a greater need for parkland than low-density.
This is an infill project. The code requires the applicant to provide compensation to
ensure the existing parks can adequately accommodate the additional dwelling units. 4. Trail Connections. Trail connection should be obtained instead of cash-in-lieu.
There is an existing trail across College Street. A shared use pathway links from the
west side of the city to Montana State University and connects this property to
commercial services and parks. 5. Suitability Factors. The suitability may be diminished due to factors such as steep slopes,
extremely high groundwater (surface ponding), etc.
The city’s transportation system serves the subject property. Bozeman Ponds Park is
walking and bicycling distance of the property. A transit stop is located less than 800-feet from this development providing accessibility to the larger city parks system. Requiring a 0.348-acre park in this location would not be suitable. Additionally, this property is directly adjacent to the Farmers Canal, which is protected by a large
maintenance easement. A fiber optic line runs under the southern end of the property
which is also protected by a maintenance easement. The easements may preclude the construction of park amenities. The application does not propose buildings over these easements.
6. Service Area. State law states that cash-in-lieu funds can be spent only if the “park,
recreational area, open space, or conservation easement is within a reasonably close proximity to the proposed.
A Community Park, Bozeman Ponds, is located within one half-mile of the development. The applicant is proposing to utilize cash in-lieu which if approved can
be dedicated to either local parks or regional parks per the needs of the community.
There are a sufficient number of parks, both passive within walking distance and active regional parks served by the transportation network. ADVISORY BOARD RECOMMENDATION: The Recreation and Parks Advisory Board
(RPAB) Subdivision Review Committee met on March 2, 2017 and unanimously supported the
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applicant’s proposal of cash in-lieu of parkland dedication at the rate of two times the market
value capped at $30,000.00.
UNRESOLVED ISSUE(S): None determined at this time. ALTERNATIVES: 1. Support the staff recommendation and findings to approve the request for a cash in-lieu
payment for the project of: $30,000.00 per Sec 38.27.020 2b(3);
2. Approve the request for a cash in-lieu payment in an alternate amount; 3. Deny the request for cash in-lieu; OR 4. As suggested by the Commission
FISCAL EFFECTS: Per the attached applicant analysis, the appraised value is $1.23 per square
foot. The applicant proposes to pay two times the market value, capped at $30,000.00. Therefore, the anticipated cash in-lieu payment for this project is $30,000.00.
Attachments: Land Appraisal Site Plan Applicant Parkland Calculations and Narrative RPAB Subdivision Review Committee Memorandum
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Jeremy May, P.E.
Genesis Engineering, Inc.
204 North 11th Avenue
Bozeman, MT 59715 March 3, 2017
Dear Mr.May,
As per your request I have gathered some data to estimate a market value for your R-O land, titled
under College Station LLC,on a per square foot basis with a legal description of:
Lot 4 of Minor Subdivision No. 328, located in the SE ¼of Section 11, Township 2 South, Range 5 East,
P.M.M. City of Bozeman, Gallatin County, Montana.
The purpose of the estimate is for you to establish the market value for the City of Bozeman’s Cash in
Lieu Parks Program.The valuation is not on your piece of land, but on what annexed speculative
development land with a similar use would bring in the open market.
The following sales have been used to estimate a value on a per square footage basis.Thus the compiled
sales on the following pages are of sites that are speculative development land with somewhat similar
characteristics when compared to the subject.
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35
36
Subject Site
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In the case of the Sale 1 is almost identical to the subject when considering the proposed use.Sale 1 is
an R-4 zoning, that is annexed into the City but is unimproved, water and sewer are available, but the
offsite improvements are not complete.
Based upon Sale 1 that just closed and is the most similar to the use proposed for your site, I would
estimate the Cash in Lieu value at $1.23psf or $53,600 per acre.
If I can be of further assistance,please do not hesitate to contact me.
Sincerely
Keith O’Reilly, MAI
General Certified Appraiser
State of Montana #400
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ENGINEERING
CONSULTING
PLANNING
DESIGN
204 N. 11th Ave. BOZEMAN, MT 59715 406-581-3319 www.g-e-i.net
204 N. 11th Ave., Bozeman, MT 59715 Cell: (406) 581-3319 www.g-e-i.net Page 1 of 1
Professional Drive Apartments : Cash In-Lieu of Parkland Calculations & Narrative
Per BMC 38.27.030 - “Cash donation in-lieu of land dedication shall be equal to the fair market value of
the amount of land that would have been dedicated. For the purpose of these regulations, the fair market
value is the value of the un-subdivided, unimproved land after it has been annexed and given an urban
zoning designation. The city intends to obtain the highest value for cash-in-lieu of park land that is
allowable under state law.”
Calculations:
Proposed Developed Parcel Size = 0.9669 acres = 42,118 sf
Number of Proposed Residential Units = 24 units
Maximum Density used for Parkland Calculation = 12 units/acre
Parkland Required: 0.03 acres/unit
12 units/acre x 0.9669 acres = 11.6 units
Therefore - 0.03 acres/unit x 11.6 units = 0.348 acres of required parkland
The available data at the time of submittal to the Parks and Recreation Advisory Subdivision Review
Committee suggests to use $1.00/sf for the fair market value for the land that would have been dedicated
as parkland. Since the proposed project needs 0.348 acres or 15,159 sf of parkland set aside, at the
estimated $1.00/sf, the applicant has a cash in-lieu total of $15,159. In researching recent projects in the
subject area, we encountered a similar nearby project on 23rd and College. From its 4/20/15 Commission
meeting, the City Commission considered and approved a parkland value that is two times the fair market
value of the land that would have been dedicated. The applicant believes the City Commission considered
this offer because the cost to create actual parkland is in fact greater than just purchasing the land.
Grading, landscaping, irrigation and other improvements must be completed before a park is useable. As
the result of these facts and the recent action by the City Commission, the applicant would like to present
a similar offer and believes the spirit of this offer seeks a balance between quality in-fill and density in a
desirable area and available park space. Using those figures, the applicant would need to set aside
approximately $30,000 for cash in-lieu of parkland for the proposed project. The applicants would like to
offer 2 times the calculated market value, capped at $30,000. This proposal was presented to the Park
and Recreation Advisory Committee and accepted unanimously on March 3rd, 2017 at the weekly meeting.
Without the opportunity of cash in-lieu, as the Parks Advisory Board recognized, this project would not be
feasible as 40% of the site would be parkland. This would reduce the density by a factor of 2. The
applicant’s vision of this project is to provide high quality in-fill and believes the residential aspect will
help fill a major need of reasonably priced rentals in close proximity to Montana State University and
nearby businesses. The applicant also believes that for a development project of this small size, cash in-
lieu can provide a better opportunity for the qualified planning of a bigger park within the neighborhood
or improvements to larger parks such as the nearby Bozeman Ponds or Kirk Park that can be readily shared
by many more residents.
H:\1086\008\DOCS\Siteplan\parkland-cash.doc
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MEMORANDUM
TO: Mitch Werbell - Community Development
FROM: Carolyn Poissant – Parks Dept. TOP Manager
CC: Mitch Overton – Director of Parks and Recreation
DATE: March 24, 2017
SUBJECT: Professional Drive Apts. CIL Proposal 17090
The RPAB Subdivision Review Committee unanimously approved the following motion:
I hereby recommend approval of the Professional Drive Apartments (#17090) applicant’s proposal to
provide twice the code-required dollar amount of cash-in-lieu of park land dedication based on
appraisal up to a maximum of $30,000.
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