HomeMy WebLinkAbout04-10-17 City Commission Packet Materials - C4. Cash-in-lieu of Parkland for McChesney Site Plan1
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 McChesney
Work-Live Site Plan, located at 623 Nikles Drive, Application 17115 MEETING DATE: April 10, 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 of $23,198.00.
ADVISORY BOARD RECOMMENDATION: The Recreation and Parks Advisory Board
(RPAB) Subdivision Review Committee met on March 16, 2017 and unanimously supported the applicant’s proposal of cash in-lieu of parkland dedication in the amount of $23,198.00.
BACKGROUND: The subject property is 0.9789-acres, located at 623 Nikles Drive, and
zoned B-2 (Community Business District) with an underlying growth policy designation of
Regional Commercial and Services. The growth policy states that, for this land use designation, residential space should not be a primary use and should only be included as an accessory use above the first floor. The site plan application includes a total of 13 accessory studio apartments
on the second floor of four commercial buildings. The area was not planned for intensive
residential uses or parks. As such, the small site presents challenges to accommodate parkland
on-site. This infill proposal encourages a complementary blend of land uses with accessory residential space, aimed at the future owners of the ground-level businesses. Neighborhood and regional parks exist to serve future residents. The transportation network provides ready access
within and adjacent to adjacent development and this is one of the last two remaining
undeveloped lots in the block and larger commercial neighborhood. The site plan depicts on-site
residential open space in a landscaped area with benches. The required parkland for these accessory residential units is 0.352-acres. In accordance with
Section 38.27.030.C of the Bozeman Municipal Code, the applicant requested to pay cash in-lieu
equal to the fair market value of the amount of land that would have been dedicated, in this case
$23,198.00. The applicant provided the same appraisal used for a recent project, which suggests using $1.23 per square foot as the fair market value for the land.
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Staff identified several required Unified Development Code (UDC) corrections in advance of the
Development Review Committee meeting on this item, 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 different design or the elimination of residential dwelling units.
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. The East
Gallatin Recreation Area, a regional park, is less than one half-mile away from the development.
The Recreation Parks Advisory Board (RPAB) Subdivision Review Committee considered the request at its March 16, 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, proposed infill mixed-use development, 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:
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(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.
Based on the parkland calculations pursuant to Section 38.27.020 of the BMC for 12 units per acre of known density:
0.9789-acre site X 12 units/acre X 0.03 acres/unit = 0.352-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 $23,198.00.
APPLICANT’S PROPOSAL: The applicant proposes to pay $23,198.00 in-lieu of land
dedication, equal to the fair market value. 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
B-2 (Community Business) zoning provides for a broad range of mutually supportive
retail and service functions located in clustered areas bordered on one or more sides
by limited access arterial streets. A variety of commercial and industrial uses exist around the subject property. Parkland dedication for this property would leave an isolated mini park. This is one of the last two remaining undeveloped parcels in this block. A large community park is located within on half-mile of the development.
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.
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B-3 zoning has an automatic allowance for cash in-lieu. Residential uses within the B-2 zoning district must obtain City Commission approval to allow for cash in-lieu.
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.
The subject property is not directly adjacent to any existing parks. A regional park
(East Gallatin Recreation Area) is located less than one half-mile from 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 0.352-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. The site will provide residential on-site open space for future tenants.
4. Trail Connections. Trail connection should be obtained instead of cash-in-lieu.
There are no shared use pathways or trails, existing or proposed, near the development, due to the commercial nature of the area, which is based on future land use planning. City sidewalks, bicycle lanes, and the street network connect this
property to other 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. The East Gallatin
Recreation Area is within walking, driving, and bicycling distance of the property.
While accessory residential uses are permitted, the growth policy designates this area for commercial uses. The property includes steep slopes along the northern and western edges. Significant grading and retention walls are required to accommodate the development. Requiring a 0.352-acre park in this location would not be suitable.
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.
The subject property is within one half-mile of a regional park. 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.
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UNRESOLVED ISSUE(S): None determined at this time.
ALTERNATIVES: 1. Support the recommendations and findings to approve the request for a cash in-lieu
payment for the project of: $23,198.00 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. Therefore, the anticipated cash in-lieu payment for this project is $23,198.00.
Attachments: Recent Land Appraisal
Site Plan
Applicant Parkland Calculations and Narrative RPAB Subdivision Review Committee Memorandum
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Dan Barnes
Mountain High Homes Inc.
2285 Virginia City Court
Bozeman, MT 59715 April 5, 2017
Dear Mr.Barnes,
As per your request I have gathered some data to estimate a market value for your B-2 land, titled under
KC Properties LLC,on a per square foot basis with a legal description of:
Lot 16 of the Amended Subdivision Plat of McChesney Industrial Park being a part of that tract recorded
in Book 146, page 37 Gallatin records, located in the NE ¼ of Section 1, Township 2 South, Range 5 East,
M.P.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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Subject Site
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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, 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
McChesney Work-Live : 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 = 42,643 sf = 0.9789 ac
Number of Proposed Residential Units = 13 studio apartment units
Maximum Density used for Parkland Calculation = 12 units/acre
Parkland Required: 0.03 acres/unit
12 units/acre x 0.9789 acres = 11.74 units
Therefore 0.03 acres/unit x 11.6 units = 0.352 acres of required parkland
A recent appraisal of unimproved land suggests to use $1.23/sf for the fair market value for the land that
would have been dedicated as parkland. Since the proposed project needs 0.3525 acres or 18,860 sf of
parkland set aside, at the estimated $1.23/sf, the applicant has a cash in-lieu total of $23,198. The
applicants would like to offer $23,198 for cash in lieu, to be used for improvements within the nearby East
Gallatin Recreation Area.
Without the opportunity of cash in-lieu, this project would likely not be feasible with almost 40% of the
site being parkland. This would reduce the density of the project by nearly a factor of 2. The applicant’s
vision for this project is to provide high quality in-fill development and believes the proposed urban work-
live concept will help fill a need in this area. The applicant also believes that for a development project of
this small size, cash in-lieu can provide a better opportunity for quality improvements to larger parks such
as the nearby East Gallatin Recreation Area that can be readily shared by many more residents. The
commercial zoning of the project, bordered by manufacturing zoning to the north-east does not lend itself
to needing a nearby park. The envisioned tenants of a development like this would not expect a nearby
park, but appreciate the urban atmosphere and are willing to bike or drive to the nearest park or
restaurant in exchange for the unique living arrangement in an up-and-coming neighborhood.
H:\1086\009\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: McChesney Work Live Proposal 17115
The RPAB Subdivision Review Committee unanimously approved the following motion:
I hereby recommend approval of the McChesney Site Plan (#17115) applicant’s proposal to provide
the minimum cash-in-lieu of park land dedication (based on appraisal) of approximately $23,198.
The committee expressed concerns about the continued acceptance of minimal cash-in-lieu of
parkland amounts for infill projects that provide little or no on-site recreational amenities.
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