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HomeMy WebLinkAbout05-01-17 City Commission Packet Materials - A2. Midtown Parking Standards Policy DiscussionMemorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist Brit Fontenot, Economic Development Director Martin Matsen, Community Development Director Ed Meece, Parking Program Manager SUBJECT: Commission Policy Discussion and Direction on Midtown (B-2M) Parking Standards MEETING DATE: May 1, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Staff recommends advancing Option A, which proposes a blended-rate parking minimum for most commercial uses, requires a minimum of one (1) space per unit for residential uses, and proposes new minimums for hotel and stand-alone restaurant uses. Consider the Motion: I move to direct Economic Development, Community Development, and Parking Staff to draft changes to the Bozeman Municipal Code for future consideration amending the text of the Unified Development Code and the B-2M zoning designation to codify the parking standards presented in Option A and to propose other code changes so as to make the proposed policy functional in the context of existing code. BACKGROUND: The City created the B-2M zoning designation during the first phase of the update of Unified Development Code (UDC) in spring 2016. The previous B-2 zoning did not encourage the redevelopment of the Midtown corridor in the manner envisioned in the area’s adopted neighborhood plan, the Design and Connectivity Plan for the N. 7th Corridor (2006). This plan specifically called for mixed-use development with “commercial services on the main level fronting the corridor, with residential uses above and behind.” The previous B-2 zoning contained yard and setback provisions that made the development of buildings fronting the street difficult, especially given the shallow lots along the corridor. The new B-2M code allows new buildings to be built near the street, encourages ground floor commercial, and requires that parking occur on the side or the rear of structures. The goal is to enhance the pedestrian 138 Memorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 2 experience along the corridor by reducing the amount of parking in front of and around buildings. These changes were consistent with two goals of the 2015 Midtown Urban Renewal Plan included promoting “Human Scale Urban Design” and supporting “Urban Density Mixed Land Uses”. City code consultants conducted market analysis for the Midtown of different development types to assess whether the new B-2M code would function in the marketplace. Makers Architecture, the firm hired to update the UDC and create appropriate new zoning districts for Midtown in 2016, brought in Leland Consulting Group (LGC) – a planning group with expertise in the market, financial, and economic elements of redevelopment projects – to test the proposed new code to ensure that it would not impede investment in the kinds of projects envisioned by City’s planning documents. Leland created five hypothetical projects at five possible redevelopment sites along the corridor. Four of the five hypothetical projects failed to produce the base returns on investment necessary to allow redevelopment. Leland identified the City’s suburban parking “minimums” as a significant factor in why urban density mixed use projects were not feasible in most Midtown sites. They suggested that changing the minimums to more accurately reflect real parking demand, or eliminating minimums entirely, would likely be necessary to make possible the kind of redevelopment proposed in adopted plans. Though moving from car dominated suburban-style development to a more compact urban form is a stated goal of the 2006 and 2015 urban renewal plans, and the N. 7th neighborhood plan, the new B-2M zoning did little to alter suburban style parking minimums applied outside the downtown core, beyond slight adjustments to residential minimums (The City Commission did exempt the first 3000 square feet of commercial space from parking requirements.). At joint meetings of the Planning and Zoning Commissions on March 22, 2016 and April 5, 2016, board members expressed concern that the high levels of required parking were an impediment to redevelopment. City staff was reluctant to change parking standards without measured parking analysis that was beyond the scope of Maker’s contract. With new buildings, mistakes may last decades and it was worth the time to study parking alternatives and propose a better solution. Final adoption of the B-2M zoning code proceeded with small changes to the parking standards with the understanding that the Midtown Urban Renewal District would fund a parking study and return with a plan for better parking standards for the B-2M zone based on thoughtful analysis. This presentation and policy discussion is the culmination of that effort. Methodology Staff engaged Leland Consulting Group with Rick Williams Consulting (RWC) (the firm that conducted the Downtown Strategic Parking Management Plan) retained as a sub consultant to investigate parking standard alternatives in the context of removing barriers to redevelopment in Midtown. The team proposed a two part strategy of using a case study approach to look at how and why some communities implemented progressive parking policies and assess the outcomes following implementation. Communities were chosen in collaboration with the Community Development Department based on at least one of a few characteristics such as size, or cold winters, or a university community. While we selected case studies to inform our recommendations, RWC also collected data at 30 local sites for retail, office, mixed use, hotel and standalone restaurant land uses to get preliminary data for testing how these options might work in Bozeman. Policy options presented by the consultants are based on the findings of the case study data. 139 Memorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 3 OPTIONS OPTION A: Maintain Minimums – Recalibrate into Blended Commercial Parking Minimums, Fixed Residential Minimum City Land Use Proposed New Minimums Bozeman, Montana Commercial 2.0 per 1000 SF Restaurant (stand-alone) 5.0 per 1000 SF OPTION A (B-2M) Hotel 0.8 per room Residential 1 per unit Bellingham, WA (pop. 85,146), Dana Point, CA (pop. 35,100), and Mercer Island, WA (pop. 22,699) moved to simplify their commercial parking minimums by utilizing a single blended rate for most commercial uses. Buildings often last more than 50 years; tenants, however, do not share this longevity. Blended rate parking minimums allows buildings to be constructed with parking that is flexible for a variety of uses rather than the current practice of constructing parking based on the original use of the building tenants. Residential units would be required to provide off street parking at the rate of one (1) space for each unit. This minimum may ensure that housing prices are not inflated by requiring the provision of more parking than there may be residents in any given unit. Developers could always choose to provide more parking than required by these minimums, up to a specified maximum. If a blended rate is a approved, code amendments altering the existing maximum will be required. If the Commission selects Option A, staff will recommend removing the broad range of parking reductions available to developers in the current B-2M zoning designation. Staff also propose that all of the required commercial and residential parking should be provided off street either onsite or at another property, within 1000 feet of the proposed project. On street spaces could not be counted toward satisfying the blended rate minimum. Blended rate minimums provide certainty for neighbors and developers. Neighbors benefit from the understanding that a new building will provide a base level of parking to meet its needs, thereby minimizing overflow into surrounding neighborhoods. Developers can construct a building that can accommodate a variety of users and their parking needs over the useful life of the building. Developers also benefit from being able to calculate their parking requirements at the beginning of the entitlement process rather than applying for reductions that are not know to be approved until the end of the entitlement process. Staff prefers Option A for the following reasons: • This program simplifies the development review process for the Community Development Department • The case study analysis demonstrated that the new minimum standards are effective in stimulating new development interest in Bellingham’s “urban village” areas. • Data analysis indicates that these minimums are appropriate for the mixed-use projects encouraged by the N. 7th Neighborhood Plan and the Midtown Urban Renewal Plan. • Requiring the provision of some parking lessens the burden of active management and enforcement that other solutions may require. 140 Memorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 4 The RWC Parking Assessment Summary and Recommendations Report provides a list of pros and cons for the blended rate minimum recommendation (pp. 12-15). OPTION B: Eliminate Minimum Parking Standards City Population Land Use Parking Minimums Billings, MT 104,172 Commercial No minimum Residential No minimum Missoula, MT 69,122 Commercial No minimum Residential No minimum Fargo, ND 118,523 Commercial No minimum Residential No minimum Marquette, MI 21,000 Commercial No minimum Residential 2 per unit Bozeman, MT 43,405 Commercial No minimum OPTION B (B-2M) Residential No minimum Elimination of minimum parking standards is an increasingly common practice in central business districts of mid-sized cities. Among the case study cities, Billings, Fargo, and Marquette eliminated minimum parking requirements for commercial uses. Billings, Fargo, and Missoula, MT have also eliminated residential parking minimums in addition to commercial minimums in these districts. Increasing redevelopment in their urban cores is a shared goal across the cities that eliminated parking minimums. These cities all share colder climates and college student populations. Eliminating minimums eases the sharing of parking among compatible uses. There are substantial incentives for developers not to under-provide parking. Inadequately parked buildings are less desirable in the marketplace and may undermine the expected return on capital. If the need for individually owned automobiles decreases in the future, cities without minimums cannot be accused of causing the oversupply of parking. Perhaps, more significantly, research demonstrates the peril of creating minimum parking standards based on a perceived correlation between land use and floor area. In “Roughly Right or Precisely Wrong”, Donald Shoup, a professor of urban planning at the University of California – Los Angeles, cites the lack of a statistically significantly relationship between vehicle trips, or parking demand and the floor area of particular land uses (2002, p. 22). Eliminating minimums is also more practical in areas with alternatives to private vehicle travel and private parking. For example, Midtown – where it is zoned B-2M – is more pedestrian friendly than many parts of Bozeman and can currently cite Walk Scores of 91 at its southern end and 51 at its northern end. Streamline Bus routes traverse about half of the N. 7th Corridor included in B-2M, and the Midtown Urban Renewal Board (MURB) is working with the Montana Department of Transportation to add another stop on the southern end of the corridor. The MURB is also developing separated bike paths and the addition of bike lanes to N. 7th is a mid-term goal. The Midtown Urban Renewal District can also purchase land for public surface lots or structured parking facilities as demand grows. These efforts are part of a long term solution and would not address immediate growth in parking demand in the short term. 141 Memorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 5 Staff is not advocating for eliminating commercial or residential minimums at this time. If the market is attempting to determine the appropriate provision of parking, it is necessary to define the conditions in which investors make these determinations: What parking is available if it is not provided on site? The elimination of parking minimums usually requires the implementation of active parking management, such as regulating on-street parking and creating residential parking districts. The establishment of residential parking districts may assuage neighborhood concerns about eliminating minimums. Staff, however, is concerned about resource demand on its financially strained Parking Division, and creating a funding stream for this activity. Neighbors may object to paying for protection they do not need when faced with residential permit fees adequate to cover the cost of the program in advance of citation revenue from any parking supply problem in Midtown. OPTION C: The Midtown Urban Renewal Board’s Hybrid Approach City Land Use Proposed New Minimums Bozeman, Montana Commercial No minimum B-2M Zoning Restaurant (stand-alone) 5.0 per 1000 SF Midtown URB Hotel 0.8 per room OPTION C (B-2M) Residential 1.25 per unit The Midtown Urban Renewal Board reviewed the proposed recommendations for code modifications. The Board voted in favor of a hybrid between Option A and Option B: Eliminate commercial minimums, retain Option A’s new minimum standards for hotel and stand-alone restaurant uses, and increase the minimum requirement for residential to 1.25 spaces per unit. The Board provided a memorandum explaining their recommendation, which is included in the packet. ALTERNATIVES: As suggested by the Commission. NEXT STEPS: If the City Commission provides direction to move forward with a particular policy, staff will draft code language reflecting that policy into the B-2M zoning designation in the Unified Development Code. Staff will follow all of the appropriate public outreach and notice requirements for a zone text amendment as required by state statute and the Bozeman Municipal Code. ATTACHMENTS: 1. Leland Consulting Group Cover Letter 2. RWC City of Bozeman – Midtown Parking Assessment Summary and Recommendations 3. RWC City of Bozeman – Parking Standards – Case Studies 4. RWC Bozeman Midtown Parking Demand Evaluation Summary 142 Memorandum for City Commission Policy Discussion on Midtown (B-2M) Parking Standards 6 5. Leland Consulting Group, Financial Models and Analysis (2016) LINKS: (2017, April 8). How not to create traffic jams, pollution and urban sprawl, The Economist Map: Progress on removing parking minimums. (2017). Strong Towns 143 People Places Prosperity | www.lelandconsulting.com 610 SW Alder Street, Suite 1008, Portland, Oregon 97205 | 503.222.1600 April 17, 2017 Mr. David Fine Economic Development Specialist City of Bozeman 121 North Rouse Avenue Bozeman, MT 59771 Re: Midtown Parking Requirements Dear Mr. Fine: As you are aware, Leland Consulting Group and our team members, Sanderson Stewart, A&E Architecture, and Rick Williams Consulting are currently working with city staff, across several departments, to develop key strategies and investments that will encourage redevelopment within the Midtown corridor, which will achieve several city urban renewal goals including: • Encourage active transportation including bike, pedestrian and transit mode that is desired by the community and reduces carbon emissions • Foster a more compact urban form that supports these active transportation modes and makes for a vibrant community desired by residents • Improve appearance and value of blighted properties It is important to note that sustainable and substantial redevelopment only occurs with significant private investment. Therefore, throughout the course of this project our top priority is to define barriers to private investment and remove them if possible. As we noted throughout this process and prior work for the city, excessive minimum parking requirements can be barrier to development as it increases construction costs for improvements that may not be desired by the market. This is especially true for the Midtown District, which consists of smaller parcels under multiple ownerships and makes consolidation into larger sites for development challenging. Larger sites typically allow for more flexibility in site design that can accommodate larger parking requirements and building footprints. Furthermore, the current requirements that lead to the provision of excess parking creates vacant asphalt spaces throughout the district that detracts from the vibrancy of the area. To achieve pedestrian activity, a corridor must consist of more developed space than vacant parking surface areas. As indicated in the peer city review analysis, this desire for a vibrant commercial area was achieved by reducing the minimum parking requirements, which is often a barrier to development. For this reason, we believe the recommended parking minimums are an important element of the overall Midtown District strategy to encourage private investment, which ultimately achieves many of the city’s envisioned goals. We look forward to discussing this proposal in more depth with the City Commission on May 1st. Sincerely, LELAND CONSULTING GROUP Alisa Pyszka Senior Associate 144 Page │ 1 PO Box 12546 Portland, OR 97212 Phone: (503) 459-7638 rickwilliamsconsulting.com MEMORANDUM TO: David Fine, City of Bozeman FROM: Owen Ronchelli, RWC Pete Collins, RWC Rick Williams, RWC DATE: April 10, 2017 (v9) RE: City of Bozeman – Midtown Parking Assessment Summary & Recommendations I. BACKGROUND Across America cities are revisiting their parking development codes in an effort to ‘right-size’ them. Many municipal codes which date back to the late 70s and early 80s have remained unaltered and continue to be the blueprint for the provision of parking despite revised industry standards and different sensibilities surrounding livability and urban form. As such, cities are using improved parking data analysis and lessons learned from other cities as the basis for recalibrating their codes in a manner that directs developers to build only the number of parking stalls needed to meet parking demand, while maximizing the land use and building area devoted to commerce/residential uses. These code refinements can help spur development by reducing the onus of building costly and unnecessary parking and thereby maximizing leasable building area where the return on investment is higher. The City of Bozeman, engaged Rick Williams Consulting (RWC) to assess parking demand for a select number of properties both in and outside of the Midtown corridor. The assessment looked at existing parking requirements for new or redeveloped uses (minimum and maximum parking ratios), the number of built parking stalls, and the number of occupied stalls during the land uses’ peak hour.1 The consultant also conducted a detailed case study of six peer cities to look at changes they made to their parking development code and the outcomes that have resulted from those changes. 2 This summary report consolidates the findings from the parking demand assessment (November 2016) and case study of peer cities (January 2017) and provides recommendations based on what was learned 1 See, Rick Williams Consulting, 2016 Bozeman Midtown Parking Demand Evaluation Summary (January 14, 2017) for the full report on local data findings. 2 See Rick Williams Consulting, City of Bozeman – Parking Standards – Case Studies (January 25 2017) for the full detailed report of the six case study cities. 145 Page │ 2 from these analyses. Interestingly, similar processes involving local data collection and peer reviews were cited in several of the case studies – all precursors to recalibrating parking development codes. II. CURRENT CITY PARKING STANDARDS (Bozeman) At present, parking standards for development in Bozeman are located in Chapter 38, Article 25 of the Unified Development code. Code standards are provided for residential and non-residential land uses. The base standards for parking are included in Tables 38.25.040-1 (residential) and 38.25.040-3 (non- residential). Additional tables and standards are provided that define and allow for adjustments to the minimum parking requirements for the residential and non-residential land uses (38.25.040-2 and 38.25.040-4, respectively). Adjustments/reductions to required minimums include allowances for affordable housing, mixed-use projects, credit for on-street parking, car-sharing, proximity to transit, and structured parking. In specific zoning districts, additional adjustments are defined which can reduce parking required for specific land uses (e.g., B-1, B-2M, B-3). Within the base standard tables, there are 12 separate “residential” and 23 “non-residential” land use designations. The number of standards increases substantially when evaluated relative to the specific zoning districts. With the number of residential and non-residential parking standards dependent upon varying zoning land uses, combined with a number of parking allowances/reductions; Article 25 of the City of Bozeman’s parking standards can quickly become overly complicated. Most of the case study (peer) cities reviewed faced similar challenges and opportunities as Bozeman and moved to consolidate their parking standards, especially for non-residential land uses. These cities have either adopted (a) a blended non-residential parking rate and/or (b) eliminated the parking minimum standard altogether. Decisions to change parking standards came after quantifying local data and also examining best practices in peer cities. This has allowed for a more streamlined and simplified parking code approach. The base standard tables for residential and non-residential land uses in Bozeman are provided below. Table 1: Residential Land Uses – Code Ref. Table 38.25.040-1 Dwelling Types Parking Spaces Required per Dwelling Accessory dwelling unit 1 Lodging house 0.75 spaces per person of approved capacity Efficiency unit 1.25 (1.0 in R-5 and B-2M districts) 146 Page │ 3 Dwelling Types Parking Spaces Required per Dwelling One-bedroom 1.5 (1.25 in R-5 and B-2M districts) Two-bedroom 2 (1.75 in R-5 and B-2M districts) Three-bedroom 3 (2.5 in R-5 and B-2M districts) Dwellings with more than three bedrooms 4 (3 in R-5 and B-2M districts) Group homes and community residential facilities 0.75 spaces per person of approved capacity 1 Bed and breakfast 1 space/rental unit All types of dwellings within the B-3 district 1 Group living /cooperative household/fraternity/sorority 1 space per resident 1 Table 2: Non-Residential Land Uses – Code Ref. Table 38.25.040-3 Use Type Off-Street or Off-Road Parking Spaces Required Automobile sales 1 space per 200 square feet of indoor floor area; plus 1 space per 20 outdoor vehicle display spaces Automobile service and/or repair station 2 spaces per service stall, but no less than 4 spaces Bank, financial institutions 1 space per 300 square feet of floor area Bowling alley 2 spaces per alley; plus 2 spaces per billiard table; plus Community residential facility with more than 9 residents or age restricted housing 1 space per unit Health and exercise establishment 1 space per 200 square feet of floor area; plus 3 spaces per court Day care centers 1 space per staff member plus 1 space per 15 children permitted Furniture stores over 20,000 square feet 3 spaces per 1,000 square feet of floor area 147 Page │ 4 Use Type Off-Street or Off-Road Parking Spaces Required Medical and dental offices 4 spaces for each full-time equivalent doctor or dentist; plus 1 space for each full-time equivalent employee Manufacturing and industrial uses 1 space per 1,000 square feet of floor area, plus 1 space per 2 employees on maximum working shift Motels, Hotels 1.1 spaces per each guest room; plus 1 space per employee on maximum shift; plus spaces for accessory uses as follows: Restaurants, bars, dining rooms 1 space per 60 square feet of indoor public serving area; plus 1 space per 120 square feet of outdoor (patio) area Commercial area 1 space per each 400 square feet of floor area Public assembly areas 1 space for each 5 seats based upon design capacity, except that total off-street parking for public assembly may be reduced by 1 space for every 4 guest rooms Nursing homes, rest homes or similar uses 4 spaces; plus 1 space for each 3 beds; plus 1 space for each employee on maximum shift Offices (except medical and dental) 1 space per 250 square feet of floor area Outdoor sales (plant nurseries, building materials, equipment rental and similar) 1 space per 500 square feet of sales and/or display area. The size of the sales and/or display area shall be determined on a case-by-case basis. Restaurants, cafes, bars and similar uses 1 space per 50 square feet of indoor public serving area; plus 1 space per 100 square feet of outdoor (patio) area Retail store and service establishments 1 space per 300 square feet of floor area Sales sites; model homes 1 space per 250 square feet of model floor areas; plus 1 space per employee Theater, auditorium or similar 1 space per 4 seats based upon place of assembly design capacity Warehousing, storage or handling of bulk goods 1 space per 1,000 square feet of floor area devoted to storage of goods; plus appropriate spaces to support accessory office or retail sales facilities at 1 space per 350 square feet of floor area 148 Page │ 5 III. CASE STUDIES SUMMARY The consultant team, in coordination with the City, selected six peer cities to review changes to their parking standards. Peer cities were selected by the City based on their implementation of more streamlined parking policies and were chosen for their relative similarity to Bozeman on at least one of several characteristics (i.e., size, or location, or cold winters, or a university community). The six peer cities evaluated were:  Bellingham, WA  Billings, MT  Dana Point, CA  Fargo, ND  Marquette, MI  Mercer Island, WA Parking Standard Reductions Minimum parking ratios, in general, were reduced in all case studies across multiple land use categories. The residential minimum reduction ranged from 0% (Marquette) to 200% (Billings and Fargo), while the commercial reduction, across multiple categories, ranged from 35% (Mercer Island) to 100+% (Dana Point, Fargo, and Marquette). There were a few exceptions where no reductions were made, such as Marquette’s residential minimums remained the same while commercial parking minimums were eliminated altogether. Bellingham went the extra step to simplify and condense their land use categories and used averages to apply lower minimum requirements to a broader range of commercial and residential uses. Reasons for Parking Standard Change A number of reasons were cited for the impetus for altering parking development requirements. This was due in part to the range of land use types targeted/affected by the changes. In most cases, encouraging development was a driving factor for the amendments. Communities also stated a desire to ‘right-size’ parking to ensure off-street parking supplies were commensurate with local demand, to avoid building excess unused parking. And finally, reducing parking standards allowed for a more compact, pedestrian-oriented, dense urban landscape which many of the cities desired in the selected areas. Metrics Used for Change Similar to the City of Bozeman’s methodology, the case study cities analyzed local parking data gathered through parking studies, and coupled it with peer city reviews to understand parking standard reductions and their associated outcomes. In some cases, anecdotal input provided by the public also provided information in guiding parking amendments. 149 Page │ 6 City Council Adoption Five of the six cities adopted the parking standard changes. The Dana Point plan was originally adopted by Council, but subsequent (years later) updates of parking standards were not well presented in the context of the originally adopted plan (which the plan called for a review of those standards). This caused anxiety among some citizen groups, which ultimately resulted in a ballot referendum on the amendments (and the adopted plan), which reverted back to parking standards previously in place. Key Take Away’s ♦ Work with a parking advisory committee (public stakeholder group), which provides a sounding board for proposed changes. Vetting changes through an advisory committee can help refine changes and help proactively address public concerns before they can react negatively. “Seek input from the community, not just property owners and builders.” – Billings, MT. ♦ Conduct parking utilization studies and use credible local data to legitimize (prove) the need for change. Be as transparent as possible with the process. ♦ Learn and borrow from you neighbors – conduct peer city reviews to assess the level of change needed. ♦ “It is important to continue to monitor, and if need be, modify those changes. It is a long and continual process” – Marquette, MI. ♦ “If excess parking exists, use it before building more parking”– Mercer Island, WA. Table 3, provides a quick reference summary of the key findings derived from the six case study cities that have recently changed their parking development minimums. Table 3: Case Study Summary Matrix – Peer City Review CITY LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS PRIMARY REASONS FOR CHANGE Bellingham, WA Residential 1.5 per unit 1 per unit Simplify parking code for staff & developers Encourage alternative modes Let market determine need Commercial Dependent upon use 1 per 500 SF Billings, MT (CBD & EBURD) Residential 2 per dwelling unit 0 Encourage (more dense / high value) downtown development Facilitate redevelopment within URD Commercial (convenience store) 1 per 80 SF 0 Dana Point, CA Residential 1 BR = 1.5 2 BR = 2.0 3+ BR = 2.5 1 BR = 1.0 2+ BR = 2.0 Shared parking Joint use 150 Page │ 7 CITY LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS PRIMARY REASONS FOR CHANGE Commercial (convenience store) Range: 1 per 75 SF to 1 per 2,000 SF 2.0 per 1,000 SF In-lieu parking fees Fargo, ND Residential 2 per unit 0 Encourage development and redevelopment in downtown Provide more flexibility for development Commercial Range: 0.5 per 1,000 SF to 13 per 1,000 SF 0 Marquette, MI (CBD) Residential 2 per unit 2 per unit Attract businesses Right-size parking Historic preservation Commercial (office) 6.6 per 1,000 SF 0 Mercer Island, WA Residential (All unit sizes) 1 to 3 per unit 1 to 1.4 per unit Address growth Right-size parking Ensure quality of life Commercial (General) 3 to 5 per 1,000 SF 2 to 3 per 1,000 SF IV. PARKING DEMAND ANALYSIS (Bozeman) The parking demand analysis examined the differential between the actual built-supply and the peak hour demand for parking for specific land uses located in Bozeman. Table 4 and Figure A (next page) provide graphic summaries of the findings. Office Land Uses • The average built parking ratio for office uses is 4.65 stalls per 1,000 square feet of building area. • The average true demand for parking for offices uses is 2.24 stalls per 1,000 square feet of occupied building area.3 3 True demand is the ratio of actual vehicles parked in the peak hour correlated to actual occupied building area. “True Parking Demand”: The observed highest demand for parking during an expected peak hour period for a given land use site. “True Parking Demand Ratio”: The correlation between observed highest demand for parking during an expected peak period for a given land use site and the floor area of the subject building. The average of several sites’ true demand ratios for a particular land use produces the average true demand ratio. Average true demand ratios have traditionally been used as a base standard for setting parking minimums. An industry best practice is to use local observed demand ratios rather than generic national data, as they provide a more accurate representation of actual parking usage. 151 Page │ 8 • The average true parking demand ratio for office use (2.24) is 52% lower than the existing built ratio (4.65). Table 4: 2016 Bozeman Midtown Parking Demand Evaluations – Land Use Category Comparison Land Use Category Average Built parking ratio Average Code Minimum w/bonuses Average Code Maximum Averaged True Demand Average Delta +/_ Average % Difference Office per 1,000 SF 4.65 4.27 5.33 2.24 2.41 52% Restaurant per 1,000 SF 7.54 12.00 15.00 5.02 2.52 33% Hotel per room 1.11 1.10 1.21 0.74 0.37 33% Residential per unit 1.37 1.60 3.00 1.37 0 0% Retail per 1,000 SF 4.47 3.33 4.16 1.94 2.53 57% Mixed Use per 1,000 SF 2.61 3.66 4.71 2.15 0.46 18% Figure A: Parking Demand Ratios - Land Use Category Comparison 4.65 7.54 1.11 1.37 4.47 2.61 2.24 5.02 0.74 1.37 1.94 2.15 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 OFFICE RESTAURANT HOTEL RESIDENTIAL RETAIL MIXED USE 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATIONLAND USE CATEGORY COMPARISON Built Parking Ratio True Parking Demand Ratio 152 Page │ 9 Restaurant (Freestanding) Land Uses • The average built parking ratio for restaurant uses is 7.54 stalls per 1,000 square feet of building area. • The average true demand for parking for restaurant uses is 5.02 stalls per 1,000 square feet of occupied building area. • The average true parking demand ratio for freestanding restaurant uses (5.02) is 33% lower than the existing built ratio (7.54). Hotel Land Uses • The average built parking ratio for hotel uses is 1.11 stalls per bedroom. • The average true demand for parking for hotel uses is 0.74 stalls per occupied room. • The average true parking demand ratio for hotel uses (0.74) is 33% lower than the existing built ratio (1.11). Residential Land Uses • The average built parking ratio for residential uses is 1.37 stalls per unit. • The average true demand for parking for residential uses is 1.37 stalls per unit, the same as the average built ratio. • The average true parking demand ratio for residential uses (1.37) is the existing built ratio (1.37), but still 17% lower than the average minimum parking requirement (1.604). Retail Land Uses • The average built parking ratio for retail uses is 4.47 stalls per 1,000 square feet of building area. • The average true demand for parking for retail uses is 1.94 stalls per 1,000 square feet of occupied building area. • The average true parking demand ratio for retail uses (1.94) is 57% lower than the existing built ratio (4.47). 4 Minimum residential parking requirements were simplified (averaged) for illustrative purposes. Based on Table 38.25.040-1 (in R-5 and B-2M districts) A) Efficiency Unit: 1.0 B) One-bedroom: 1.25 C) Two-bedroom: 1.75 D) Three-bedroom: 2.5 E) Dwellings with more than three bedrooms: 3. 153 Page │ 10 Mixed Uses • The average built parking ratio for mixed uses is 2.61 stalls per 1,000 square feet of building area. • The average true demand for parking for retail uses is 2.15 stalls per 1,000 square feet of occupied building area. • The average true parking demand ratio for retail uses (2.15) is 18% lower than the existing built ratio (2.61). Data suggests that parking, on average, has been built well in excess of exhibited demand, with the exception of residential uses5. Particularly office (52%) and retail (57%) uses have corresponding off- street parking supplies that are built at double the capacity of what is actually needed. These findings in combination with what was learned in the case studies form the basis for some recommended recalibrations of the existing parking development requirements. Those recommendations are provided in the following section. V. RECOMMENDATIONS The following recommendations are based on the analysis of recently collected local parking demand data for specific land use categories and a thorough assessment of similar ‘right-size parking’ actions taken by peer cities. There are two approaches the City can take as regards its parking minimums, these include: • Eliminate minimum parking requirements for commercial development; a market-based approach that allows the local economic environment to influence the economics and access realities of a development project. • Maintain parking minimums; reducing them to better reflect current demand and collapsing the minimum for commercial uses (office, retail and mixed-use) to a single blended rate of 2.0 per 1,000 square feet. Eliminate Minimum Parking Requirements Minimum parking requirements are so prevalent that eliminating them may seem like heresy, but these requirements may be limiting redevelopment or increasing the cost of providing affordable housing. In some situations, the best way to address this is simply to eliminate minimum parking requirements for certain land uses or certain areas, such as in a downtown or commercial corridors, near transit stations, or for affordable housing developments. 5 The parking demand analysis for residential uses also included properties without any off-street parking, which significantly affects the average built ratio. According to Bozeman’s existing municipal code no residential development could be built today without the provision of off-street parking. 154 Page │ 11 The key to success when eliminating minimum parking requirements is to minimize the potential for spillover effects - this is, after all, what the minimum requirements are intended to do - and ensure that there are other ways for people to access the site. Having some parking garages or lots nearby that are not at full capacity and access to the site via non-auto modes increase the chances of success. However, even if those pieces are in place, there will likely still be a need to control spillover effects. One of the main concerns is generally spillover into nearby residential neighborhoods' on-street parking. This can be addressed with a residential permit parking program. Residents may resist the transition to permit parking, but one way to win them over is through residential parking benefit districts, which charge non-residents to park in unused resident spaces, and invest some of the revenue in neighborhood improvement projects. On non-residential streets, eliminating minimum parking requirements without actively managing on- street parking can lead to a shortage of curb parking spaces, and the associated problems with drivers circling endlessly seeking a space. One solution is to charge for on-street parking. The revenue collected from on-street meters can be used to pay for the costs of operating parking and for other congestion management-related activities. If the district is hesitant to install meters, the municipality may be able to invest part of the revenue from the meters in transportation demand management and parking related improvements in the affected area. Another concern is that if new developments (or redevelopments) are not required to provide parking where previous developments were, the burden of providing parking may be unfairly distributed on the properties that have been there longer. If this is a concern, one alternative is to maintain required minimums but allow developers to pay a fee or cash in lieu of each required space not provided, with the fees to be used for providing public parking. Another alternative is to allow those with an existing parking supply that exceeds their needs to rent or sell it to newcomers who can't add parking to their sites. In some cases, developers may be constrained by requirements from lenders that they provide a certain amount of parking. If the community is not ready to drop minimum parking requirements altogether, other options include establishing flexible parking requirements, setting parking maximums in addition to minimums, allowing spaces to be held in landscaped reserves, and allowing developers to pay a fee in lieu of providing spaces. Table 5 provides a summary of the pros and cons associated with eliminating minimum parking requirements. 155 Page │ 12 Table 5: Elimination of Minimum Parking Requirements – Pro & Cons Pros Cons Provision of parking is governed by the marketplace; the number of stalls built is more optimally sized for the land use Potential spillover into nearby districts and onto existing parking facilities. Lowers development costs, spurring redevelopment No opportunity for cash in lieu if City is seeking revenue sources for sharing the cost of parking through public/private partnerships. Streamlined permitting process. Elimination of code provisions related to allowed exceptions, adjustments and waivers to minimums. Some users may to have to park further away and walk to reach their destination Maximizes parcel development area; reduces the ‘sea of surface parking’ effect; promotes a more walkable urban form More constrained on-street parking; visitors circling looking for parking Promotes and incents alternative mode providers to enter or expand into a market (e.g., transit, biking, walking) Maximizes parcel development area; reduces the ‘sea of surface parking’ effect; promotes a more walkable urban form City must support greater enforcement of the on- street supply (e.g., enforcement personnel and potential establishment of parking districts – residential permit systems for on-street supplies). More supportive of structured parking given the expense of building structured versus surface parking. Eliminating minimums does not prevent developers from providing parking, nor assume that parking will not be provided. Maintain Minimums – Recalibrate into Blended Commercial Rate The following recommendations provide insight into potential modifications of existing requirements by land use category. One recommendation calls for the consolidation of (some) commercial land use classifications into a blended rate, others call for specific reductions in minimum requirements based on findings from local data and similar code recalibrations made by peer cities. A. Combine required off-street minimum parking development ratios for commercial uses (office, retail, and mixed use) into a single blended rate of 2.0 stalls per 1,000 square feet. This process simplifies the parking development code (a strategy employed by the City of Bellingham, Washington) by collapsing the mixed use, office, and retail land use classifications and their sub-classifications into a single blended commercial land use category. Exemptions from this category include hotel uses (see Recommendation B) and freestanding restaurant uses (Recommendation C). 156 Page │ 13 The parking demand analysis shows that office uses have an average true demand ratio of 2.24 vehicles per 1,000 square feet of occupied building area. Similarly, findings from the demand analysis show that retail uses have an average true demand ratio of 1.94 vehicles per 1,000 square feet of occupied building area. Furthermore, mixed use sites have an average true demand ratio of 2.15 vehicles per 1,000 square feet of occupied building area. These results and the resulting recommendation are summarized in Table 6, below. It should be further noted that this recommendation is only a minimum; developers can elect to build in excess of the minimum if they believe the development necessitates it. While the demand figures both exceed and fall short of the ratio recommendation, a close approximation of 2.0 stalls/1,000 SF is suggested for code simplicity, which is within a close fraction of true demand. Examples from the case study work show blended commercial parking rates for Bellingham, WA and Dana Point, CA at 2.0 stalls per 1,000 square feet of building area. More aggressive changes were made in Billings, Fargo, and Marquette where they eliminated minimum parking requirements entirely. Table 6: Bozeman Midtown – Recommended Minimum Parking Ratios – Commercial Uses Existing Land Use Classifications Average Code Minimum w/bonuses Averaged True Demand Recommended Land Use Classification Recommended Minimum Parking Ratio6 Office 4.27 2.24 Commercial 2.00 Retail 3.33 1.94 Mixed Use 3.66 2.15 B. Reduce required off-street minimum parking development ratios for hotel land uses to 0.80 stalls per room. The parking demand analysis shows that hotel uses have an average true demand ratio of 0.74 vehicles per occupied hotel room7. Hotels experience seasonal variation in vacancy rates, however the parking demand analysis correlates parked cars to occupied rooms, as such the average true demand figure is representative of the hotel’s parking load on both slow and busy days. The Midtown corridor has a large number of hotel locations, a recalibrated minimum may help reduce the number of surplus stalls built for future hotel developments. C. Reduce required off-street minimum parking development ratios for freestanding restaurant uses to 5.0 stalls per 1,000 square feet. 6 Ratios are shown as per 1,000 square feet of building area. 7 This ratio includes parking demand generated by hotel staff and guests. 157 Page │ 14 The parking demand analysis shows that restaurant uses have an average true demand ratio of 5.02 vehicles per 1,000 square feet of building area. The parking demand analysis showed the average restaurant with a built parking supply of 7.54 stalls per 1,000 square feet. Despite this finding existing code requires restaurant uses to build at a minimum ratio of 12.0 stalls per 1,000 square feet. This requirement is 240% higher than the average exhibited demand. This parking requirement should be recalibrated to avoid future developments built with an excess of unused parking stalls. Ideally restaurant uses would be incorporated into mixed use developments with other use types such as retail and office. The most efficiently used parking is when complementary uses share the same parking supply, reducing the need for excess or higher ratio requirements. D. Reduce required off-street minimum parking development ratios for Residential land uses to 1.0 stall per unit. The parking demand analysis shows that residential uses have an average true demand ratio of 1.37 vehicles per unit. The existing average parking minimum required by code is 1.60 per unit (units have stratified parking requirements with increased minimums based on the number of bedrooms). This action simplifies the minimum to 1 stall per unit. As a comparison Bellingham, Washington reduced their minimums from 1.5 stalls per unit to 1.0 stall per unit, whereas both Billings and Fargo eliminated residential minimums outright. Along with the implementation of this recommendation the City should consider refining and clarifying reduction bonuses related to the residential ratio (using local data). Again, this is a minimum requirement and developers can elect to build additional parking if they believe it will make the development more marketable. This recommendation should be coupled with strategies that are consistent with the City’s goal of encouraging alternative mode use – provision of bicycle parking, access to transit, and carsharing opportunities. These efforts can help reduce end-of-trip parking demand and provide a viable transportation alternative for those who elect to use them. 158 Page │ 15 Table 7: Reducing Minimum Parking Requirements – Pro & Cons Pros Cons Simplifies code by reducing the number of specific land use standards Adjustments, waivers and exceptions remain, which adds time and cost to the development application (for both City and developer). Appropriately calibrates new standards to local land use data. As alternative mode use increases, new minimum’s become outdated over time. Need to be recalibrated through periodic review. May encourage users to share supply Surface lots will likely be more prevalent than under the no minimum approach. May be more palatable to adjacent neighborhoods. Promotes a more compact urban form. Sets a minimum standard that may or may not be the most efficient for new development. Lowering minimums still allows developers to provide more than the minimum. Developers may still want adjustments, waivers and exceptions to provide less parking. Minimizes parking spillover effect as compared to no minimums Any reduction in minimums requires appropriate enforcement of the public right of way by the City. VI. SUMMARY This memorandum summarizes a thorough evaluation of Bozeman’s parking requirements and actual demand for parking derived from local sources. It also provides insights into the efforts of other peer cities that have looked at and recalibrated parking standards downward to better reflect actual market conditions. Based on this evaluation, recommendations are made to reduce or eliminate current minimum parking standards to better reflect local conditions. 159 Page │ 16 Case Study: Summary Matrix Below is a summary of the key findings derived from the six case study cities which have changed their parking minimums recently. CITY CONTACT INFO LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS % CHANGE - RANGE MAXIMUMS (Y/N) PRIMARY REASONS FOR CHANGE METRICS FOR CHANGE ADOPTED BY CITY COUNCIL (Y/N) MUNICIPAL CODE LINK Bellingham , WA Christopher Koch; 360.778.8349; ckoch@cob.org Residential 1.5 per unit 1 per unit 50% N Simplify parking code for staff & developers Encourage alternative modes Let market determine need Review and condense land use categories – use averages for ratios Peer city review Y http://www.codepublishing.com/WA/ Bellingham/ Commercial Dependent upon use 1 per 500 SF Varies Billings, MT (CBD & EBURD) Nicole Cromwell; CromwellN@ci.bil lings.mt.us Residential 2 per dwelling unit No minimum 200% N Encourage (more dense / high value) downtown development Facilitate redevelopment within URD Local data Anecdotal cases Peer city review Y https://www.municode.com /library/mt/billings/codes/code_of_ord inances Commercial (convenience store) 1 per 80 SF No minimum 100% Dana Point, CA Shayne Sharke; 949.248.3567; ssharke@DanaPo int.org Residential 1 BR = 1.5 2 BR = 2.0 3+ BR = 2.5 1 BR = 1.0 2+ BR = 2.0 25% - 50% N Shared parking Joint use In-lieu parking fees Parking plan w/ on & off-street parking counts Peer city review Yes, but later repealed http://www.danapoint.org/departme nt/community- development/planning/planning- documents/zoning-code Commercial (convenience store) Range: 1 per 75 SF to 1 per 2,000 SF 2.0 per 1,000 SF 100+% Fargo, ND Derrick LaPoint; 701.476.6751; dlapoint@cityoffa rgo.com Residential 2 per unit No minimum 200% No, but conditional use overlays (project specific) with maximums Encourage development and redevelopment in downtown Provide more flexibility for development Parking count data Parking study findings to recalibrate system (as needed) Y https://www.cityoffargo.com/attach ments/7d2ec397-f7e6-4913-a983- b12563fd9532/LDC%20- %20updated%209-2015.pdf Commercial Range: 0.5 per 1,000 SF to 13.3 per 1,000 SF No minimum 100+% Marquette, MI (CBD) Mona Lang; 906.228.9475; Mlang@downtow Residential 2 per unit 2 per unit 0% N Attract businesses Right-size parking Multiple parking studies showed over supply Y http://www.mqtcty.org/Government/ Code/80_ zoning20160720.pdf Commercial 6.6 per 1,000 No minimum 100+% 160 Page │ 17 CITY CONTACT INFO LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS % CHANGE - RANGE MAXIMUMS (Y/N) PRIMARY REASONS FOR CHANGE METRICS FOR CHANGE ADOPTED BY CITY COUNCIL (Y/N) MUNICIPAL CODE LINK nmarquette.org (office) SF Historic preservation More intensive/ compact land use equal more econ. activity Mercer Island, WA Jeff Arrango; 206.493.2384; jeff@berkconsulti ng.com Residential (All unit sizes) 1 to 3 per unit 1 to 1.4 per unit 0% to 53% Yes, originally very high; reduced along with minimums Address growth Right-size parking Ensure quality of life Parking study with local data Peer city review Y http://www.codepublishing.com/WA/ MercerIsland/ Commercial (General) 3 to 5 per 1,000 SF 2 to 3 per 1,000 SF 33% to 40% 161 Page │ 1 PO Box 12546 Portland, OR 97212 Phone: (503) 459-7638 www.rickwilliamsconsulting.com MEMORANDUM TO: David Fine City of Bozeman, MT FROM: Rick Williams, RWC Owen Ronchelli, RWC Pete Collins, RWC Kathryn Dorothy-Chapman, RWC DATE: April 7, 2017 RE: City of Bozeman – Parking Standards – Case Studies The City of Bozeman is in the process of evaluating the Midtown Corridor. Part of this process is to analyze the current parking standards associated with specific land uses currently or envisioned to be located along North 7th Avenue, the primary thruway located in the Midtown Corridor. In the second of a two part process (part one – parking demand analysis), the consultant team, in coordination with the City, selected six peer cities to review changes to their parking standards. Peer cities were selected by the City based on their implementation of more streamlined parking policies and were chosen for their relative similarity to Bozeman on at least one of several characteristics (i.e., size, or location, or cold winters, or a university community). The six peer cities evaluated were:  Bellingham, WA  Billings, MT  Dana Point, CA  Fargo, ND  Marquette, MI  Mercer Island, WA This memorandum evaluates each peer city based on several factors related to their parking standards. Cities were contacted by both email and phone, and asked the same questions. These questions included:  Has your community changed its parking development requirements? In what way?  Have you changed your minimum parking standards? If yes, did you lower the minimums? 162 Page │ 2  What was the reason for the change? (e.g., response to the development community, encourage more dense development, reduce the cost of development, etc.).  Was it difficult to get elected officials to support the decision? How was it done?  Do you have parking maximums?  What areas of your city did these changes affect? (e.g., downtown, urban renewal district, neighborhood, city-wide, etc.?)  What were the basis/metrics used to make these changes? (i.e., locally derived data, case studies/peer cities, etc.)  Were the changes fully adopted by City Council?  What has been the result from these changes? (both in terms of development and public response)  Has development occurred since the change and at what level was parking built (at the changed or previous standards?)  What advice would you give to other cities considering similar changes to their parking code? Key Findings Parking Standard Reductions Minimum parking ratios, in general, were reduced in all case studies across multiple land use categories. The residential minimum reduction ranged from 0% (Marquette) to 200% (Billings and Fargo), while the commercial reduction, across multiple categories, ranged from 35% (Mercer Island) to 100+% (Dana Point, Fargo, and Marquette). There were a few exceptions where no reductions were made, such as Marquette’s residential minimums remained the same while commercial parking minimums were eliminated altogether. Bellingham went the extra step to simplify and condense their land use categories and used averages (ratios) to apply minimums to a broader range of commercial and residential uses. Parking Maximums Five of the six case studies did not have parking maximums. Mercer Island, in general, had very high maximums in all land use categories, but they too were lowered with the adjustments to the minimums, particularly for residential uses. Fargo does not have maximums, but has some conditional use overlays on a couple of future projects that restrict the number of stalls built (a project-specific maximum). 163 Page │ 3 Reasons for Parking Standard Change A number of reasons were cited for the impetus for altering parking development requirements. This was due in part to the range of land use types targeted/affected by the changes. In many cases, however, encouraging development was a driving factor for the amendments. Also, a desire to ‘right- size’ parking to ensure off-street parking supplies were commensurate with local demand, to avoid building excess unused parking. And finally, reducing parking standards allowed for a more compact, pedestrian-oriented, dense urban landscape which many of the cities desired in the selected areas. Metrics Used for Change Similar to the City of Bozeman’s methodology, the case study cities analyzed local parking data gathered through parking studies, and coupled it with peer city reviews to understand parking standard reductions and their associated outcomes. In some cases, anecdotal input provided by the public also provided information in guiding parking amendments. City Council Adoption Five of the six cities adopted the parking standard changes. The Dana Point plan was originally adopted by Council, but subsequent (years later) updates of parking standards were not well presented in the context of the originally adopted plan (which the plan called for a review of those standards). This caused some anxiety among some citizen groups, which ultimately resulted in a ballot referendum on the amendments (and the adopted plan), which reverted back to parking standards previously in place. Key Take-Aways Work with a parking advisory committee (public stakeholder group), which provides a sounding board for proposed changes. Vetting changes through an advisory committee can help refine changes and help proactively address public concerns before they can react negatively. Seek input from the community, not just property owners and builders – Billings, MT. Conduct parking utilization studies and use credible local data to legitimize (prove) the need for change. Be as transparent as possible with the process. Learn and borrow from you neighbors – conduct peer city reviews to assess the level of change needed. It is important to continue to monitor, and if need be, modify those changes. It is a long and continual process – Marquette, MI. If excess parking exists, use it before building more parking – Mercer Island, WA. 164 Page │ 4 Case Studies Six peer cities were evaluated and selected due to similarity in particular metrics (population, climate, lifestyle, etc.). As stated above, the cities were selected by the client, the City of Bozeman, and contacted by the consultant team, Rick Williams Consulting. Each city was asked the same questions to understand their parking standard amendments, the process and the resulting impacts. Individual case studies are presented on the following pages. 165 Page │ 5 Land Use Previous Minimums Current Minimums Residential Studio 1.0 1.0 1-bedroom 1.5 1.0 2-bedroom 1.5 1.0 3-bedroom 0.5 per additional room 0.5 per additional room Commercial Dependent on Use 2.0 per 1,000 SF With an update to Bellingham’s Comprehensive Planning efforts, the City amended its parking standards. For additional information: City of Bellingham Municipal Code: http://www.codepublishing.com/WA/Bellingham/ Reasons for Change  To simplify their land use parking code.  To reduce the workload on City staff when different parking standards were required based on changing land uses.  To reduce the workload for developers and tenants to comply with parking requirements.  To encourage transportation options in/near ‘Urban Villages’.  To let ‘the market’ determine their parking needs. Parking Standard Changes Bellingham, WA 85,146 residents Whatcom County, WA Largest employer: Western Washington University CONTACT INFORMATION: City of Bellingham Planning & Community Dev. Christopher Koch, Planner II 360.778.8349 ckoch@cob.org 166 Page │ 6 Parking Maximums  No parking maximums exist. Method to Gain Support  Worked with elected officials and the two stakeholder groups (business community and local residents) to build support.  Key to gaining support was to wrap the amendments into large master planning efforts, so that the focus was not sole on the parking amendments. Areas Affected By Parking Amendments  Six ‘Urban Villages’, areas/neighborhoods within the City of Bellingham. - These areas were not similar in land uses, or any particular metric. In addition to parking standard reductions, these Villages are allowed to reduce required parking minimums by conforming to any number of additional offsetting parking programs/projects. Metrics for Parking Amendments The City of Bellingham used two methods: 1) Analyzed the City’s requirements for all of the land uses (eliminating outliners) and created averages for simplified land uses to determine fair ratios. 2) Researched cities which had reduced their parking standards. Case study cities included:  Portland, OR  Vancouver, WA  White Rock, BC  Richman, BC “Let the Market determine its parking needs” Christopher Koch, Planner II, City of Bellingham 167 Page │ 7 Bellingham’s Urban Villages City Council Response  City Council adopted the new parking standards. - The process affecting the first Urban Village (Old Town) was lengthy, however, the process for the remaining Villages was relatively quick. Result of These Changes  Overall positive, intended changes have resulted from the amendments to the parking standards. The different Villages saw the following changes:  Old Town: Most challenging, yet has seen two projects built (residential & mixed-use).  Downtown District: The standards have stimulated a large increase in development.  Fairhaven District: Three projects in the pipeline.  Samish Way: Two commercial & three residential developments have resulted.  Fountain District: Residential, mixed use and commercial development have occurred.  Waterfront District: Two developments have adhered to the old parking standards: Walgreens and a Marijuana Store. 168 Page │ 8 Advice to Other Cities  Establish a minimum parking standard and let the market determine the parking needs. These changes yield: - Better predictability for parking uses. - Minimize the process for City staff, developers and tenants - Replicability – The City of Bellingham is looking to expand these parking amendments. 169 Page │ 9 BILLINGS, MT 104,170 residents Yellowstone County, MT Largest employer: Billings Clinic With on-street paid parking and four off-street parking garages, along with numerous surface lot options, parking options are robust and regulated by the City of Billings. The City, in partnership with various consulting firms since 2010, has tracked their parking supply, and creating strategy plans to guide decision-making. In regard to off-street parking standard requirements, little has changed since 1972 with the exception of two areas. In the 1980s, off-street parking requirements for the Central Business District (CBD) were eliminated in conjunction with the creation of downtown parking garages and the downtown parking district. In 2010, the East Billings Urban Renewal District (EBURD) also eliminated its parking standards. For additional information: City of Billings Municipal code:https://www.municode.com /library/mt/billings/codes/code_of_ordinances Reasons for Change The two areas affected had different reasons for change:  CBD: To encourage the use of the downtown area for high-value uses.  EBURD: To facilitate redevelopment within the Urban Renewal District that would have required variances otherwise. Parking Standard Changes – CBD & EBURD Land Use Previous Minimums Current Minimums Residential Single family/duplex 2 per dwelling unit No minimum Multi-family 1 per 1 unit; 1.5 per 2 or more unit No minimum CONTACT INFORMATION: City of Billings Zoning Coordinator Planning & Community Services CromwellN@ci.billings.mt.us 170 Page │ 10 Land Use Previous Minimums Current Minimums Commercial Retail – General (i.e. convenience store) 1 per 80 SF w/ 10 spaces minimum No minimum Retail - Food 1 per 100 SF No minimum Retail – Hotel 1 per hotel room plus 1/2 employee on shift No minimum Office – Financial/Other 1 per 300 SF No minimum Parking Maximums  No maximums Method to Gain Support  CBD: The city of Billings, with the support of the downtown businesses, initiated the exemption in the CBD due to a parking district and building campaign to provide off-street parking for a fee.  EBURD: With the assistance of an outside consultant, who provided relevant case studies of urban parking standards and a methodology to trigger a parking district when on-street parking became constrained, the 400-acre EBURD’s parking standards were amended. Areas Affected By Parking Amendments  Two areas in Billings are exempt from the citywide parking standards: “No minimum off-street parking spaces are required at the time of development, redevelopment, expansion, change of use or addition to public, commercial, industrial or residential property” Billings Municipal Code. Article 27-1800. East Billings Urban Revitalization District Code. “There is a significant cost to off-street parking but most places provide this for ‘free’ to their customers.” Nicole Cromwell Zoning Coordinator, City of Billings 171 Page │ 11 1) Central Business District 2) East Billings Urban Renewal District. Metrics for Parking Amendments  The City of Billings used three means for the 2010 EBURD amendments: 1) Local data 2) Anecdotal cases within the EBURD 3) Researched peer cities with lower parking standards. City Council Response  City Council adopted the new parking standards. Result of These Changes  Development from the 2010 changes in the EBURD have not been out of the ordinary. Advice to Other Cities  Off-street parking standards should not be solely based on land use.  Seek input from the community, not just property owners and builders.  Create a diverse stake group to understand how to change your off-street parking code. City of Billings –East Billings Urban Renewal District 172 Page │ 12 CONTACT INFORMATION: City of Dana Point Community Development Director Ursula Luna- Reynosa (949) 248-3567 Uluna-reynosa@DanaPoint.org DANA POINT, CA 35,100 Residents Orange County, CA Largest employer: Tourism and hospitality, boat sales and services. The City of Dana Point, California adopted a Downtown revitalization plan which re-zoned the historic center of town, the Lantern District, to mixed-use in 2008. The plan did not address parking management in the code but included implementation language about future actions the city should take regarding parking and development. Later parking management plans were met with controversy and a public referendum was brought to a vote in 2016 which resulted in overturning the recently approved parking management plan and made any future changes to parking management even more onerous. For additional information: City of Dana Point Municipal code: http://www.danapoint.org/department/community- development/planning/planning-documents/zoning-code Reasons for Change The motivation for developing both the Lantern District plan and the later parking management plan was to make it easier for new development and businesses to help make the downtown more walkable and vibrant. A parking demand study conducted by Ferh and Peers, found that even in the peak hour, on both private and public lots and on-street, parking was oversupplied by 1,000 spaces. After the passing of the Lantern District Plan, they had several developers attempt to build mixed-use projects, but the parking requirements were too burdensome, from both a cost and space perspective. This led the city to re-ignite their parking management planning efforts and they hired Nelson/Nygaard to conduct a study and develop a plan. This resulted in the proposed requirements below. 173 Page │ 13 Parking Standard Changes (Lantern District Plan): Land Use Current Minimums Proposed in Downtown* (Lantern District) Residential – Single Family Single Family 1 Bedroom- 1.5 2 Bedroom – 2.0 Covered 3+ bedrooms – 2.5 1 bedroom - 1.0 per unit 2+ bedrooms - 2.0 per unit Residential – Multi-Family 700 SF – 1,500 SF units 1 assigned space + 0.17 - 1.5 unassigned spaces 1 bedroom - 1/unit 2- 3 Bedrooms 2.0 - 2.5 per unit --Covered 2+bedrooms - 2/unit Commercial Dependent on Use 1/75 SF- 1/ 2,000 SF All non-residential uses: 2.0 per 1,000 SF * These were passed by the Planning Commission or City Council in 2015, then overturned by a public vote in 2016. The current and proposed codes both allow for developers to apply for a variance and conditional use permits for alternatives to the minimum parking requirements, including:  Shared parking  Joint-use  In-lieu parking fees Bicycle parking standards are required for multi-family and mixed use developments. The Lantern District Plan outlines actions that would expedite parking improvements to support merchants and residents and encourage development on vacant and underutilized parcels. Policy 4.1: Provide opportunities for shared parking facilities in the Lantern District, such as through the establishment of shared, available to the public parking facilities by (a) leasing or purchasing existing private parking facilities and making them available to the public, and (b) adopting requirements for parking that incentivize the provision of shared parking facilities, that are available to the general public, in both new developments and on properties undergoing a change of use” – City of Dana Point. Municipal Code. “I would advise any city to address parking issues in a larger plan, that way you have the vision and plan goals to back up your parking proposals. Also take time to work with the community influencers to help them advocate for your parking management plan.” Ursula Luna-Reynosa, Community Development Director, City of Dana Point 174 Page │ 14 Parking Maximums  No maximums Method to Gain Support  During the parking management planning process, their outreach efforts were thorough and they including working with residents and businesses, several public open houses as well as one-on-one meetings, and held several work sessions with their planning and city commissioners. This ultimately didn’t help them gain public support. Areas Affected By Parking Amendments  Proposed amendments were for the Downtown or the Lantern District. Metrics for Parking Amendments  A professional plan was completed which included on and off-street parking counts.  Peer review of cities with different parking standards. City Council Response  City Council support was mixed, but ultimately voted to approve the parking management plan in 2015. The public developed a petition to revert the approved parking policies in 2016. Result of These Changes After passing the initial plan in 2008, they had hoped for new developments to be built. However, they found that their suburban based parking requirements were too onerous and none were actually built. They have had four mixed-use projects in the past seven years proposed; so far none have been built. They were successful in converting several private parking lots into public lots which are shared amongst numerous businesses and uses. Advice to Other Cities The original Lantern District plan did not address parking in the zoning code, but rather included loose implementation language. Their advice is take the time to get the parking component (specifics) of the plan right; by doing so the larger plan’s vision and goals support the parking management strategies as one cohesive unit. Take the time to educate and gain support from community influencers, they can become important allies and external champions of the planning effort. 175 Page │ 15 FARGO, ND ●118,523 Residents ●Cass County, ND ●Largest employer: Microsoft Business Solutions, Bobcat Co, John Deere, North Dakota State University, healthcare, etc. ●Recreational amenities: Large City park system, (3.5 times larger than Central Park) Fargo Marathon (a Boston Marathon qualifier) regional snowmobiling, skiing, hunting, fishing, etc. The City of Fargo adopted a new Land Development Code which included different zoning districts in 1998. This included the elimination of any minimum parking requirements in the Downtown district. It is important to note that since 1940, the State of North Dakota has had a statewide ban on any parking payment facilities, so traditional parking meters and pay stations are illegal. However they are working on a way to work around that state law to allow them to use price to manage on-street parking more efficiently. The City operates most of the off-street parking facilities Downtown, with 11 lots, garages and structures, with 1100 parking spaces, which 90% are sold monthly to employees. Parking Management Tools:  Time limits  Residential Parking Permits (Downtown only) $25/ month  City-owned garages, 1100 spaces. Hourly rates: $1.50/hr 8am-5pm, Monthly: $56-90 a month  Park and Ride lot at the Mall with a shuttle to Downtown  Shared parking between uses  Alternative Access Plans per conditional use City of Fargo Municipal Code: https://www.cityoffargo.com/attachments/7d2ec397-f7e6- 4913-a983-b12563fd9532/LDC%20-%20updated%209- 2015.pdf Reasons for Change  Spur development and re-development downtown  More flexibility for development CONTACT INFORMATION: City of Fargo Planning & Community Dev. Derrick LaPoint, Planner 701-476-6751 dlapoint@cityoffargo.com 176 Page │ 16  Retain the walkable historic downtown Parking Standard Changes Land Use Previous Minimum Current Minimum Residential Studio 1.25 per unit No minimum 1-bedroom 2.0 per unit No minimum 2-bedroom 2.0 per unit No minimum 3-bedroom 2.0 per unit No minimum Commercial Dependent on Use 0.50 per 1,000 SF – 13.3 per 1,000 SF No minimum Parking Maximums Not as a standard, but they do have some conditional use overlays in upcoming projects that dictate a maximum number of parking spaces allowed. Method to Gain Support It was not difficult to gain support. At the time, Downtown was a ghost town so anything which would aid in reviving it was regarded as a positive. There also was so little development that the fears of not having any parking were far away. There was a bit of backlash more recently with retailers worrying about customers needing parking right in front, but for the most part the public and downtown community supports the policy. Areas Affected By Parking Amendments  This was only for the Downtown zoning district Metrics for Parking Amendments  Parking count data The city conducts their own parking counts regularly for on and off-street, so they had several years of data to use. 177 Page │ 17  Use findings from parking studies for calibration. They also regularly complete parking studies to help guide their management efforts. They employed those past parking studies to determine the change. City Council Response  The changes were fully adopted by City Council Result of These Changes Overall very positive. Downtown has seen significantly more development from offices and retail to residential since this change was enacted. Residential developments still build about 1 parking space per unit, but office and retail do not. A number of surface lots have been developed into housing and mixed use. This development has increased the tax base from $190 million in 2003 and is now $600 million (as of 2015) in the Renaissance Zones (which Downton is part of). Parking demand is still relatively high in Downtown Fargo, they are working on ways to work around the state law to charge for on-street payment, perhaps an online payment system in the future. Advice to Other Cities  Having the parking changes in a part of a larger plan, like a whole code update or downtown streetscape plan really helps people see how it can benefit a downtown. 178 Page │ 18 MARQUETTE, MI 21,000 residents Marquette County, MI Largest employers: Marquette General Hospital, Northern Michigan University and tourist based businesses. Contact information: Mona Lang, Executive Director Marquette Downtown Development Authority 906-228-9475 Mlang@downtownmarquette.org The Marquette Downtown Development Authority (MDDA) championed eliminating parking requirements for office and commercial uses in their Central Business District (CBD) in 2000 after numerous studies were completed and a City Commission appointed committee studied the issue. Minimum requirements for residential uses remain in place. The City is working on removing all parking minimums for commercial uses City-wide this year. City of Marquette Municipal code: http://www.mqtcty.org/Government/Code/80_ zoning20160720.pdf Reasons for Change  To help attract new businesses to open downtown, by eliminating an “undue burden”.  To right-size parking requirements in line with their urban form.  Help preserve historic buildings from being razed for parking. Parking Standard Changes Land Use Previous Minimums Current Minimums Residential Single Family and Multi-family 2/unit Same Educational 1/ instructor 1/every 4-10 students Same Retail 6.6 stalls per 1,000 SF No minimum Office 5.0 stall per 1,000 SF No minimum 179 Page │ 19 Parking Maximums  No maximums Method to Gain Support At first it was difficult to get support by property and business owners; however, an ad hoc committee was formed to review other cities with similar climates and review the data and recommendations. They invested in numerous parking studies and even intercept surveys to determine how shoppers and visitors were using the parking system. Areas Affected By Parking Amendments  Initially in the Downtown Central Business District (CBD) in 2000, located in the Downtown Marquette Waterfront Zoning District (form based code) in 2008, and then just recently in a neighborhood commercial area (Community Business Zoning) in 2016. “Parking should be approached as a system and as a development tool.” Mona Lang, Downtown Development Authority 180 Page │ 20 Metrics for Parking Amendments  The Downtown Development Authority had commissioned several parking studies that all indicated that the parking supply was more than sufficient for the current and future demand and that by encouraging more intensive and compact land uses, there would be more economic activity downtown. City Council Response  City Council passed the amendment ordinance in 2000 for the Downtown CBD zoning district. Result of These Changes  Overall extremely positive. - Vacancy rate is less than 2% - Taxable values increased by 75% since 2003 - Residential units have increased 300%.  The downtown is booming and redevelopment is robust. While it took some time to realize these results, desired outcomes are being achieved. An anticipated change the city is still waiting on is the redevelopment of private surface parking lots, though that change is expected sometime in the not too distant future. There is still a mentality that business must retain parking exclusively for their customers and more work needs to be done on a “park once” solution. There is still an issue with business owners not doing enough to encourage employees to park elsewhere or to take other options. It is too soon to tell for the Community Business Zoning District yet what the results are. Advice to Other Cities  Sound data and transparency is important.  Parking should be approached as a system and as a development tool. It is important to continue to monitor and if need be, modify those changes. It is a long and continual process.  Clean, safe public parking areas as well as convenient access to those parking areas is key and should be a stated goal when the code changes begin. 181 Page │ 21 MERCER ISLAND, WA 22,699 residents King County, WA Largest employer: Farmers Insurance Group CONTACT INFORMATION: BERK Consulting Planner 206.493.2384 jeff@berkconsulting.com In response to parking concerns, the City of Mercer Island, in coordination with a consultant, conducted a parking study in 2016. The study was focused on their Town Center, an area once thought of as a suburban shopping area which has transformed into multiple mid-rise mixed-use building with growing access to transportation options. The findings of the study along with a review of relevant peer cities lead to amendments to their parking standards. For additional information: City of Mercer Island Municipal Code: http://www.codepublishing.com/WA/MercerIsland/ REASONS FOR CHANG  To address future growth and development.  To understand if the right amount of parking is being built now and for the future.  To ensure quality of life for residents. Parking Standard Changes Land Use Previous Minimum Current Minimum Residential – All unit sizes 1 to 3 per unit 1 to 1.4 per unit* Commercial Retail – General 3 to 5 per 1,000 SF 2 to 3 per 1,000 SF** Retail - Food 1 to 11 per 1,000 SF 5 to 10 per 1,000 SF Retail – Hotel 1 per hotel room plus 2/3 employee on shift and 5 per 1,000 SF of retail/office 1 per hotel room plus 2/3 employee on shift and 5 per 1,000 SF of retail/office 182 Page │ 22 Office – Financial/Other 3 to 5 per 1,000 SF 2 to 3 per 1,000 SF The previous residential parking standards were a range, and therefore allowed for on-site parking to be overbuilt. The City’s 2016 parking study estimated the actual demand per residential unit (based upon three mixed-use buildings located in the Town Center) to be 1.1 per unit. Similarly, non-residential demand was substantially less than the built parking. The overall demand for all non-residential uses was 1.7 per 1,000 SF (peak demand varied by land use). Non-residential uses ratios were reduced with the exception of Hotel which remained the same. * Allow site specific deviations for parking less than 1 stall per unit based on detailed parking analysis and with approval of Code Official. Parking Maximums  Yes, however, the maximums were high and were lowered, in particular for residential use. Method to Gain Support In April, 2016, a parking study was conducted for the Town Center. Despite perceptions of a parking constraint, the data showed that actual demand was less than existing parking minimums for retail and office use. Existing residential maximums were also realized as too high compared to demand. Local, demand data was key. Areas affected by parking amendments  The Town Center – a developing, highly dense, mixed-use area in Mercer Island. ‘Urban Villages’, areas/neighborhoods within the City of Bellingham. Metrics for Parking Amendments  The City of Mercer Island used two methods: “Use local data and if the data shows a lot of empty parking, try to maximize use of what you already have before building more.” Jeff Arango, Project Manager of 2016 Mercer Island Parking Study, BERK 183 Page │ 23 1) Local data derived from the 2016 Parking Study which showed the difference between land uses’ built parking and the actual parking demand in the Town Center. Many of the recommendations from the study were used for the parking standard amendments. 2) Researched peer cities with lower parking standards. Case study cities included:  Kirkland, WA (downtown)  Bothell, WA (downtown) City Council Response  City Council adopted the new parking standards. Result of These Changes  Too early to comment on the development results, however, there was no opposition to the changes by the public. Advice to Other Cities  Utilize local data to determine actual parking demand verse built parking.  If excess parking exists, use it before building more parking.  Align local regulations with local data and maintain some flexibility. City of Mercer Island – Town Center – Land Uses. Source: Source: BERK, 2015; King County Assessor, 2015. 184 Page │ 24 CASE STUDY: SUMMARY MATRIX 2016 SUMMARY OF KEY FINDINGS Below is a summary of the key findings derived from the six case study cities which have changed their parking minimums recently. CITY CONTACT INFO LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS % CHANGE - RANGE MAXIMUMS (Y/N) PRIMARY REASONS FOR CHANGE METRICS FOR CHANGE ADOPTED BY CITY COUNCIL (Y/N) MUNICIPAL CODE LINK Bellingham , WA Christopher Koch; 360.778.8349; ckoch@cob.org Residential 1.5 per unit 1 per unit 50% N Simplify parking code for staff & developers Encourage alternative modes Let market determine need Review and condense land use categories – use averages for ratios Peer city review Y http://www.codepublishing.com/WA/ Bellingham/ Commercial Dependent upon use 1 per 500 SF Varies Billings, MT (CBD & EBURD) Nicole Cromwell; CromwellN@ci.bil lings.mt.us Residential 2 per dwelling unit No minimum 200% N Encourage (more dense / high value) downtown development Facilitate redevelopment within URD Local data Anecdotal cases Peer city review Y https://www.municode.com /library/mt/billings/codes/code_of_ord inances Commercial (convenience store) 1 per 80 SF No minimum 100% Dana Point, CA Shayne Sharke; 949.248.3567; ssharke@DanaPo int.org Residential 1 BR = 1.5 2 BR = 2.0 3+ BR = 2.5 1 BR = 1.0 2+ BR = 2.0 25% - 50% N Shared parking Joint use In-lieu parking fees Parking plan w/ on & off-street parking counts Peer city review Yes, but later repealed http://www.danapoint.org/departme nt/community- development/planning/planning- documents/zoning-code Commercial (convenience store) Range: 1 per 75 SF to 1 per 2,000 SF 2.0 per 1,000 SF 100+% Fargo, ND Derrick LaPoint; 701.476.6751; dlapoint@cityoffa rgo.com Residential 2 per unit No minimum 200% No, but conditional use overlays (project specific) with maximums Encourage development and redevelopment in downtown Provide more flexibility for development Parking count data Parking study findings to recalibrate system (as needed) Y https://www.cityoffargo.com/attach ments/7d2ec397-f7e6-4913-a983- b12563fd9532/LDC%20- %20updated%209-2015.pdf Commercial Range: 0.5 per 1,000 SF to 13.3 per 1,000 SF No minimum 100+% 185 Page │ 25 CITY CONTACT INFO LAND USE PAST PARKING STANDARDS CURRENT PARKING STANDARDS % CHANGE - RANGE MAXIMUMS (Y/N) PRIMARY REASONS FOR CHANGE METRICS FOR CHANGE ADOPTED BY CITY COUNCIL (Y/N) MUNICIPAL CODE LINK Marquette, MI (CBD) Mona Lang; 906.228.9475; Mlang@downtow nmarquette.org Residential 2 per unit 2 per unit 0% N Attract businesses Right-size parking Historic preservation Multiple parking studies showed over supply More intensive/ compact land use equal more econ. activity Y http://www.mqtcty.org/Government/ Code/80_ zoning20160720.pdf Commercial (office) 6.6 per 1,000 SF No minimum 100+% Mercer Island, WA Jeff Arrango; 206.493.2384; jeff@berkconsulti ng.com Residential (All unit sizes) 1 to 3 per unit 1 to 1.4 per unit 0% to 53% Yes, originally very high; reduced along with minimums Address growth Right-size parking Ensure quality of life Parking study with local data Peer city review Y http://www.codepublishing.com/WA/ MercerIsland/ Commercial (General) 3 to 5 per 1,000 SF 2 to 3 per 1,000 SF 33% to 40% 186 Bozeman Midtown Parking Demand Assessment Page  1 2016 Bozeman Midtown Parking Demand Evaluation Summary (April 2017) Purpose The Midtown corridor just west of Downtown Bozeman is an urban renewal area in transition. The commercial corridor is dotted with retail, restaurants, and service-based businesses set back from the five lane road (7th Avenue) that separates one side from the other. Unlike Main Street, surface parking dominates the landscape. Rick Williams Consulting (RWC) was hired to assess parking demand for a select number of properties both in and outside of the Midtown corridor. The assessment looked at existing parking requirements for new or redeveloped uses (minimum and maximum parking ratios), the number of built parking stalls, and the number of occupied stalls during the land uses’ peak hour utilization. The findings from this assessment combined with case studies (peer reviews) of similar sized cities (future memorandum) will inform future recommendations made to the City of Bozeman for adjusting parking development ratios. Such recommendations are intended to ‘right-size’ the parking supply by directing developers to build only the number of parking stalls needed to meet parking demand while maximizing the land use and building area devoted to commerce/residential use. Refinements to parking development ratios can help spur development by reducing the onus of building costly and unnecessary, maximizing leasable building area where the return on investment is higher. This could result in more profitable developments and provide a more attractive, pedestrian-friendly environment for the City and patrons of Midtown. 187 Bozeman Midtown Parking Demand Assessment Page  2 Methodology The consultant team worked with the City to select a number of land uses for which to observe parking demand utilization. Sampled selections were chosen to provide several examples of uses (businesses or residences) representing a cross section of land use types both within the corridor and those envisioned for Midtown – retail, restaurant, office (including medical office), hotel, mixed use, institutional, and residential. Each site’s parking supply was inventoried in advance of the demand analysis, quantifying the numbers of stalls serving each location (visitor and employee parking). Surveyors counted occupied parking stalls during peak periods for each property to determine the uses’ highest individual parking demand. In some cases vehicles parked on-street were also included as part of the demand counts if it was evident the drivers were patronizing, residing or employed at the property. Parking development requirements are expressed as ratios of stalls per 1,000 square feet of building area or stalls per residential unit. As such, the analysis requires information specific to the total building square footage for each survey site. RWC searched Montana Cadastral and commercial and residential real estate sites to derive the most accurate information possible. During the data collection process surveyors were careful to note any tenant vacancy observations. Where vacancies exist property owners were contacted to determine the amount of unleased space. Calculating ‘true’ parking demand ratios required factoring out any vacancies, so total parked cars were correlated only to occupied building square footage. This is the same methodology employed by the Institute of Transportation Engineers (ITE) to calculate parking demand by land use category, which has been the de facto metric used by jurisdictions across America for their municipal parking requirements. While this is a good starting point, the ITE information draws its examples from across America, which can include demand figures that date back as far as the 1980s. The methodology used for this study exclusively utilizes local Bozeman data gathered in November (2016), which provides the most accurate and true representation of existing conditions on the ground today. 188 Bozeman Midtown Parking Demand Assessment Page  3 Findings Findings in the following section are shown as demand ratios for individual properties within a common land use group, both graphically (charts) and in tabular format (tables). At the end of the section an aggregated table depicts average parking demand ratios by land use group, which can then be the first step in determining a blended parking ratio across all land use types. Office Land Uses Figure A: Parking Demand Ratios - Office From the office land use analysis the following results can be derived: 3.75 2.88 3.08 5.97 7.58 2.25 1.97 1.15 2.04 3.79 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 BRIDGER EYECARE OPPORTUNITY BANK INSURANCE UNLIMITED ABSAROKA/ PROGRESSIVE/ BOZEMAN SYMPHONY BROWN DINWIDDIE & MAZUREK PLLC 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: OFFICE (STALLS PER 1,000 SF) Built Parking Ratio True Parking Demand Ratio 189 Bozeman Midtown Parking Demand Assessment Page  4 • Built parking ratios vary widely in the office category from as little as 2.88 stalls per 1,000 square feet (Opportunity Bank) to as much as 7.58 stalls per 1,000 square feet (Brown, Dinwiddie & Mazurek). • The average built parking ratio for office uses is 4.65 stalls per 1,000 square feet of building area. • True parking demand ratios have less variation ranging from 3.79 vehicles per 1,000 square feet (Brown, Dinwiddie & Mazurek) to 1.15 vehicles per 1,000 square feet (Insurance Unlimited). • The average true demand for parking for offices uses is 2.24 stalls per 1,000 square feet of occupied building area. • A 15% buffer was added to true demand numbers to allow for the ebb and flow of customers/visitors within the off-street parking supply. This supports the concept of an 85% occupancy threshold (industry standard) for a customer or visitor parking supply. Adding a 15% buffer to the average true demand figure (2.24) results in a market-calibrated 2.5 stalls per 1,000 square feet of office space (i.e., average actual demand for parking). • The recalibrated office parking demand ratio of 2.50 is 45% lower than the existing average built supply (4.65). • Based on these findings, these developments significantly oversupplied parking for the land use actually built. Table 1: 2016 Bozeman Midtown Parking Demand Evaluation – Office Land Use Business Name Business Type Building Square Footage Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Bridger Eyecare Medical Office 2,668 10 3.75 6.00 7.50 2.25 2.59 1.16 31% Opportunity Bank Bank 15,256 44 2.88 3.33 4.16 1.97 1.88 1.00 35% Insurance Unlimited Office 2,600 8 3.08 4.00 5.00 1.15 1.33 1.75 57% Absaroka/ Progressive/ Bozeman Symphony Office - multi tenant 21,600 129 5.97 4.00 5.00 2.04 2.34 3.63 61% Brown Dinwiddie & Office 1,320 10 7.58 4.00 5.00 3.79 4.36 3.22 43% 190 Bozeman Midtown Parking Demand Assessment Page  5 Business Name Business Type Building Square Footage Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Mazurek PLLC Average Parking Ratios 4.65 2.24 2.50 2.15 45% Restaurant Land Uses Figure B: Parking Demand Ratios - Restaurant 12.38 10.97 5.47 3.85 5.01 8.09 4.42 4.38 1.65 6.57 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 APPLEBEES FAMOUS DAVE'S BAMBOO GARDEN ASIAN GRILL/IWIRELESS BAR 3 BBQ MIDTOWN TAVERN 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: RESTAURANT (STALLS PER 1,000 SF) Built Parking Ratio True Parking Demand Ratio 191 Bozeman Midtown Parking Demand Assessment Page  6 From the restaurant land use analysis the following results can be derived: • Built parking ratios vary widely in the restaurant category from as little as 3.85 stalls per 1,000 square feet (Bar 3 BBQ) to as much as 12.38 stalls per 1,000 square feet (Applebees). • Restaurant uses (outside of downtowns) on average, have higher demand ratios than most other types of land uses; particularly when they are a free-standing use versus a component of a mixed use site. • The average built parking ratio for restaurant uses is 7.54 stalls per 1,000 square feet of building area. • True parking demand ratios have less variation ranging from 1.65 vehicles per 1,000 square feet (Bar 3 BBQ) to 8.09 vehicles per 1,000 square feet (Applebees). • The average true demand for parking for restaurant uses is 5.02 stalls per 1,000 square feet of occupied building area. • Similarly a 15% buffer was added to true demand numbers to allow for the ebb and flow of customers/visitors within the off-street parking supply. Adding a buffer to the average true demand figure (5.02) results in a market-calibrated 5.16 stalls per 1,000 square feet of restaurant space (i.e., equates to total square footage of the restaurant, not just dining room area). • The recalibrated restaurant parking demand ratio of 5.16 is 29% lower than the existing built supply (7.54). • As with office uses (above) restaurants have generally overbuilt actual parking supply versus actual need for parking. Table 2: 2016 Bozeman Midtown Parking Demand Evaluation – Restaurant Land Use Business Name Business Type Building Square Footage Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Applebees Restaurant 6,056 75 12.38 12.00 15.00 8.09 9.30 3.08 25% Famous Dave's Restaurant 6,564 72 10.97 12.00 15.00 4.42 5.08 5.89 54% Bamboo Garden Asian Grill/iWireless Restaurant - retail 6,397 35 5.47 12.00 15.00 4.38 3.78 1.70 31% 192 Bozeman Midtown Parking Demand Assessment Page  7 Bar 3 BBQ Restaurant w/drive thru 1,820 7 3.85 12.00 15.00 1.65 1.90 1.95 51% Midtown Tavern Restaurant 6,388 32 5.01 12.00 15.00 6.57 5.76 (0.75) -15% Average Parking Ratios 7.54 5.02 5.16 2.37 29% Hotel Land Uses Figure C: Parking Demand Ratios - Hotel 1.00 1.10 1.32 1.01 0.86 0.75 0.76 0.61 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 DAYS INN AND SUITES BOZEMAN LEWIS AND CLARK MOTEL HOMEWOOD SUITES COMFORT INN 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: HOTEL (STALLS PER ROOM) Built Parking Ratio True Parking Demand Ratio 193 Bozeman Midtown Parking Demand Assessment Page  8 From the hotel land use analysis the following results can be derived: • All true demand parking ratios for hotels were adjusted to account for vacancies. Hotels experience seasonal variation in vacancy rates, however the parking demand analysis correlates parked cars to occupied rooms, as such the average true demand figure is representative of the hotel’s parking load on both slow and busy days. • The variation in the built parking ratios in the hotel category is greatly diminished compared to other land use categories; ranging from as little as 1.00 stall per room (Days Inn and Suites) to as much as 1.32 stalls per room (Homewood Suites). • The average built parking ratio for hotel uses is 1.11 stalls per bedroom. • True parking demand ratios for hotels are similar in that the variation between each example is minimal. The properties range from as little as 0.61 vehicles per occupied room (Comfort Inn) to as much as 0.86 vehicles per occupied room (Days Inn and Suites). • The average true demand for parking for hotel uses is 0.74 stalls per occupied room. • A 10% buffer was added to average true demand parking numbers to allow for the ebb and flow of patrons within the off-street parking supply. Hotel uses can support higher tolerances for parking availability during the peak period; as such a 10% buffer was added to the average true parking demand (versus a 15% buffer for most other land uses). Adding the buffer results in a market-calibrated 0.82 stalls per hotel room. • The recalibrated hotel parking demand ratio of 0.82 is 25% lower than the existing built supply (1.11). Table 3: 2016 Bozeman Midtown Parking Demand Evaluation – Hotel Land Use Business Name Business Type Building Square Footage Residential Units / Hotel Rooms Vacancy Rate Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (10%) Delta +/_ % Diff Days Inn and Suites Bozeman Hotel 10,323 113 39% 113 1.00 1.10 1.21 0.86 0.94 0.06 6% Lewis and Clark Motel Hotel 3,461 50 36% 55 1.10 1.10 1.21 0.75 0.83 0.28 25% 194 Bozeman Midtown Parking Demand Assessment Page  9 Homewood Suites Hotel 8,643 102 37% 135 1.32 1.10 1.21 0.76 0.84 0.48 37% Comfort Inn Hotel 8,603 122 18% 123 1.01 1.10 1.21 0.61 0.67 0.34 33% Average Parking Ratio Hotel 1.11 0.74 0.82 0.29 25% Residential Land Uses Figure D: Parking Demand Ratios - Residential 2.59 1.95 1.60 0.73 0.00 2.29 1.45 1.50 1.10 0.51 0.00 0.50 1.00 1.50 2.00 2.50 3.00 615/625 N 5TH CONDOS KIRBEY PLAZA BRIDGER ARMS CONDOS BLACKMORE APARTMENTS 217 W KOCH ST 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: RESIDENTIAL (STALLS PER UNIT) Built Parking Ratio True Parking Demand Ratio 195 Bozeman Midtown Parking Demand Assessment Page  10 From the residential land use analysis the following results can be derived: • Similar to hotel uses, the variation in the built parking ratios in the residential category is diminished compared to other land use categories; ranging from as little as 0 stalls per unit (217 W Koch St) to as much as 2.59 stalls per unit (615/625 N 5th Condos). • The average built parking ratio for residential uses is 1.37 stalls per unit. • Two of the sample residential land uses were built with less than 1 stall per unit. One property has no off-street parking associated with it (217 W Koch St). • True parking demand ratios for residential properties range from as little as 0.51 vehicles per unit (217 W Koch St) to as much as 2.29 vehicles per unit (615/625 N 5th Condos). • The average true demand for parking for residential uses is 1.37 stalls per unit, the same as the average built supply. • Occupancy assumptions had to be made for properties with closed (inaccessible) garage doors – occupancies were assumed at 50% accounting for storage of belongings or recreational space rather than automobile storage. • A minimal 5% buffer was added to average true demand parking numbers to allow for some minor ebb and flow of residents within a limited off-street parking supply. Residential uses (particularly rental units) can support the highest tolerance for parking availability during peak periods; as such a 5% buffer was added to the average true parking demand. Adding the buffer results in a market- calibrated 1.44 stalls per residential unit. • The recalibrated residential parking demand ratio of 1.44 is 7% higher than the sampled built supply (1.37), but 10% lower than the minimum parking requirement (1.601). Table 4: 2016 Bozeman Midtown Parking Demand Evaluation – Residential Land Use Business Name Business Type Residential Units / Hotel Rooms Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (5%) Delta +/_ % Diff 1 Minimum residential parking requirements were simplified (averaged) for illustrative purposes. Based on Table 38.25.040-1 (in R-5 and B-2M districts) A) Efficiency Unit: 1.0 B) One-bedroom: 1.25 C) Two-bedroom: 1.75 D) Three-bedroom: 2.5 E) Dwellings with more than three bedrooms: 3. 196 Bozeman Midtown Parking Demand Assessment Page  11 Business Name Business Type Residential Units / Hotel Rooms Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (5%) Delta +/_ % Diff 615/625 N 5th Condos Condos 22 57 2.59 1.60 3.00 2.29 2.41 0.19 7% Kirbey Plaza Apartments 78 152 1.95 1.60 3.00 1.45 1.52 0.43 22% Bridger Arms Condos Townhomes 10 16 1.60 1.60 3.00 1.50 1.58 0.02 2% Blackmore Apartments Apartments 33 24 0.73 1.60 3.00 1.10 1.15 -0.42 -58% 217 W Koch St Apartments 39 0 0.00 1.60 3.00 0.51 0.54 -0.54 Average Parking Ratio Residential 1.37 1.37 1.44 -0.06 -7% 197 Bozeman Midtown Parking Demand Assessment Page  12 Retail Land Uses Figure E: Parking Demand Ratios - Retail From the retail land use analysis the following results and be derived: • Built parking ratios vary widely in the retail category from as little as 1.25 stalls per 1,000 square feet (N2U Thrift) to as much as 9.58 stalls per 1,000 square feet (Verizon Wireless). • The average built parking ratio for retail uses is 4.47 stalls per 1,000 square feet of building area. • True parking demand ratios have somewhat less variation ranging from 0.26 vehicles per 1,000 square feet (Rikki’s Furniture) to 5.00 vehicles per 1,000 square feet (Verizon Wireless). 2.86 7.34 1.32 9.58 1.251.14 2.54 0.26 5.00 0.760.00 2.00 4.00 6.00 8.00 10.00 12.00 AARON'S APPLIANCES ECKROTH MUSIC RIKKI'S FURNITURE GALLARY VERIZON WIRELESS NU2U THRIFT 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: RETAIL (STALLS PER 1,000 SF) Built Parking Ratio True Parking Demand Ratio 198 Bozeman Midtown Parking Demand Assessment Page  13 • The average true demand for parking for retail uses is 1.94 stalls per 1,000 square feet of occupied building area. • A 15% buffer was added to average true demand numbers to allow for the ebb and flow of customers/visitors within the off-street parking supply. Adding a buffer to the average true demand figure (1.94) results in a market-calibrated 2.23 stalls per 1,000 square feet of retail space. • The recalibrated retail parking demand ratio of 2.23 is 58% lower than the existing built supply (4.47). Table 5: 2016 Bozeman Midtown Parking Demand Evaluation – Retail Land Use Business Name Business Type Building Square Footage Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Aaron's Appliances Retail - showroom 7,000 20 2.86 3.33 4.16 1.14 1.31 1.54 54% Eckroth Music Retail 3,540 26 7.34 3.33 4.16 2.54 2.92 4.42 60% Rikki's Furniture Gallery Retail 23,485 31 1.32 3.33 4.16 0.26 0.29 1.03 78% Verizon Wireless Retail 2,400 23 9.58 3.33 4.16 5.00 5.75 3.83 40% Nu2U Thrift Retail 14,400 18 1.25 3.33 4.16 0.76 0.88 0.37 30% Average Parking Ratios Retail 4.47 1.94 2.23 2.24 58% 199 Bozeman Midtown Parking Demand Assessment Page  14 Mixed Uses Figure F: Parking Demand Ratios - Mixed Use From the mixed use demand analysis the following results and be derived: • Observations of mixed use parking demand validated them as the land use category with the most efficient parking supply – where true demand was closest to the built supply. • Built parking ratios range from 2.08 stalls per 1,000 square feet (Cannery District) to as much as 3.46 stalls per 1,000 square feet (Community Co-op). • The average built parking ratio for mixed uses is relatively low at 2.61 stalls per 1,000 square feet of building area. 2.52 2.86 2.65 2.70 2.08 3.46 1.96 2.86 1.76 1.18 1.38 3.75 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 SNOWLOAD BUILDING PARK PLACE CONDOS 777 BUILDING M VIEW PLAZA CANNERY DISTRICT COMMUNITY FOOD CO-OP 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE: MIXED USE (STALLS PER 1,000 SF) Built Parking Ratio True Parking Demand Ratio 200 Bozeman Midtown Parking Demand Assessment Page  15 • True parking demand ratios range from 1.18 vehicles per 1,000 square feet (M View Plaza) to 3.75 vehicles per 1,000 square feet (Community Co-op). • The average true demand for parking for retail uses is 2.15 stalls per 1,000 square feet of occupied building area. • A 15% buffer was added to true demand numbers to allow for the ebb and flow of customers/visitors within the off-street parking supply. Adding a buffer to the true demand figure (2.15) results in a market-calibrated 2.47 stalls per 1,000 square feet of mixed use space. • The recalibrated retail parking demand ratio of 2.47 is 11% lower than the existing built supply (2.61). Table 6: 2016 Bozeman Midtown Parking Demand Evaluation – Mixed Use Business Name Business Type Building Square Footage Residential Units / Hotel Rooms Vacancy Rate Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Snowload Building Office/ Services 24,994 12% 63 2.52 3.33 4.16 1.96 2.25 0.27 11% Park Place Condos Office 10,500 40% 30 2.86 3.33 4.16 2.86 3.29 -0.43 -15% Park Place Condos Residential 16 32 2.00 1.60 3.00 ? ? ? ? 777 Building Office/ Retail 36,599 10% 97 2.65 4.00 5.00 1.76 2.02 0.63 24% M View Plaza Office/ Retail/ Services 51,545 139 2.70 5.00 6.25 1.18 1.36 1.34 50% Cannery District Office/Retail/ Restaurant/ Services 105,000 0% 218 2.08 5.00 6.25 1.38 1.59 0.49 24% Community Food Co-op Grocery/ Restaurant/ 17,610 61 3.46 3.33 4.16 3.75 4.31 -0.85 -24% 201 Bozeman Midtown Parking Demand Assessment Page  16 Business Name Business Type Building Square Footage Residential Units / Hotel Rooms Vacancy Rate Built Off- Street Stalls Built parking ratio Code Minimum w/bonuses Code Maximum True Demand TD + buffer (15%) Delta +/_ % Diff Coffee Shop Average Parking Ratios Mixed Use 2.61 2.15 2.47 0.24 11% Land Use Category Comparison Figure G: Parking Demand Ratios - Land Use Category Comparison 4.65 7.54 1.11 1.37 4.47 2.61 2.24 5.02 0.74 1.37 1.94 2.15 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 OFFICE RESTAURANT HOTEL RESIDENTIAL RETAIL MIXED USE 2016 BOZEMAN MIDTOWN PARKING DEMAND EVALUATION LAND USE CATEGORY COMPARISON Built Parking Ratio True Parking Demand Ratio 202 Bozeman Midtown Parking Demand Assessment Page  17 From the land use category comparison the following results and be derived: • Both office and retail uses are the most grossly overbuilt land use categories, with an average parking supply overbuild of 45% and 58%, respectively. Base solely on observations related to this demand analysis parking minimums for Office should be reduced by 2.00 stalls per 1,000 square feet (to 2.25); similarly Retail minimums (based solely on these observations) should be reduced by 1.40 stalls per 1,000 square feet (to 1.95). • Mixed use developments are being built with parking supplies that most closely represent true demand – on average they are overbuilt by 11%. Observations from this parking demand evaluation reveal that Mixed Use parking minimums should be reduced by 0.50 stalls per 1,000 square feet (to 2.15 or 2.00). • Hotel parking minimums could be reduced from their current level by 0.35 stalls per room, to 0.75 stalls per hotel room. • Restaurant parking minimums could be reduced by nearly 7 stalls per 1,000 square feet, with current minimums at 12 per thousand and true demand at 5 per thousand. Based solely on demand observations conducted during this evaluation, the new (stand-alone) restaurant parking minimums could be reduced to 5.00 stalls per 1,000 square feet. • To calculate residential demand, particularly for properties without off-street parking, some assumptions had to be made about ‘assigning’ vehicles to a residential property. It is not unusual to make this educated assumptions related to resident use/demand. As such, the current minimum parking requirement for residential are high. It is recommended that the minimums be reduced to 1.00 stall per unit and that the maximums are commensurately reduced to 2.25 stalls per unit. • Determining a blended commercial minimum parking requirement is challenging, particularly in an area where shared parking is more challenging and on-street parking is limited. Hotel, Residential, and stand-alone Restaurant should likely be evaluated using a separate minimum parking scale. Office and Retail and Mixed Uses lend themselves more favorably to a blended rate. Based on observations from this analysis these uses could have a reduced minimum parking requirement of 2.00 – 2.25 stalls per 1,000 square feet. 203 Bozeman Midtown Parking Demand Assessment Page  18 Table 7: 2016 Bozeman Midtown Parking Demand Evaluation – Land Use Category Comparison Land Use Category Average Built parking ratio Average Code Minimum w/bonuses Average Code Maximum Averaged True Demand TD + buffer Average Delta +/_ Average % Difference Office 4.65 4.27 5.33 2.24 2.50 2.15 45% Restaurant 7.54 12.00 15.00 5.02 5.16 2.37 29% Hotel 1.11 1.10 1.21 0.74 0.82 0.29 25% Residential 1.37 1.60 3.00 1.37 1.44 -0.06 -7% Retail 4.47 3.33 4.16 1.94 2.23 2.24 58% Mixed Use 2.61 3.66 4.71 2.15 2.47 0.24 11% Average Parking Ratios 3.62 4.33 5.57 2.24 2.44 1.20 27% 204 Bozeman Concept SitesFinancial Models and Analysis This is a placeholder 205 January 2016 | 2Bozeman Site Concepts Introduction 206 January 2016 | 3Bozeman Aspen Retail –Financial Model Basic Assumptions –Most likely Scenario Site Size 22,200 SF Gross Building Size 8,400 SF Number of Tenants Six (One Anchor,Five Inline) Number of Parking Spaces 18 Surface Spaces Rent $20, NNN, Starting Rent for Anchor $26, NNN, Starting Rent for Inline Tenants Land Value $12/SF ($266,400) Financial Performance Output Most Likely Scenario Cash on Cash Return (Year 3)20.8% IRR on Project Cost (Unleveraged Return)11.9% IRR on Investor Equity (Leveraged Return Before Taxes)30% Aspen Retail -Proposed Site Plan N •Aspen Retail is most likely feasible •Incentives and/or gap financial will likely be needed to mitigate developer risk •As it stands today, Aspen’s location is below average for a retail property •Once local infrastructure investment has been completed and nearby housing developments are in place, Aspen’s site will be more marketable for a retail development IRR on Project Cost (Unleveraged) Total Building Cost per SF $ 100 $ 120 $ 140 $ 160 $ 16.00 7.1%5.4%3.9%2.6% $ 18.00 8.7%7.0%5.5%4.1% Rent $ 20.00 10.3%8.5%6.9%5.5% $ 22.00 11.7%9.9%8.3%6.9% $ 24.00 13.1%11.4%9.5%8.1% Assumptions: Assumes NNN rents are the same for anchor and in-line spaces, ten year cash flow model, terminal capitalization rate of 7%, Total Building Cost Includes Hard and Soft Costs, Other costs are held constant. FeasibleNot Feasible Aspen Retail –Feasibility Index 207 January 2016 | 4Bozeman Mendenhall Mixed Use –Financial Model Basic Assumptions Site Size 22,225 SF Gross Building Size 49,663 SF Number of Retail Tenants Six (One Anchor,Five Inline) Number of Units 42 Total Units Number of Parking Spaces 54 Total (21 Ground level internal stalls) (33 Underground stalls) Residential Rent Current Market @ $1.75/SF (Not Feasible) Rate Needed for Feasibility $2.45/SF Retail Rent $20, NNN, Starting Rent for Anchor $26, NNN, Starting Rent for Inline Tenants Land Value $12/SF ($266,400) Proposed Site Plan N •Mendenhall Mixed Use is not feasible in today’s market •Residential rents at Mendenhall would have to be approximately 40% higher than market rate for the development to be feasible •Incentive or gap financing could enable the development to pencil in today’s market FeasibleNot Feasible Mendenhall –Feasibility Index Mendenhall Mixed Use –Financial Performance Output Top of Current Market Rent $1.75/SF ($1,550 a month for a Two Bed Unit) Not Feasible Necessary Rent $2.45/SF ($2,170 a month for a Two Bed Unit) Feasible 208 January 2016 | 5Bozeman The Durston Site The proposed development program of the Durston site is for two single use buildings facing the street with surface parking tucked behind the buildings •One Multi-Tenant Retail Building •One –Four Story Apartment Building •The following two slides outline these development proposals Proposed Site Plan 209 January 2016 | 6Bozeman Durston Retail –Financial Model Basic Assumptions –Most likely Scenario Site Size 45,550 SF Gross Building Size 12,750 SF Number of Tenants Eight (Two Anchor,Six Inline) Number of Parking Spaces 42 spaces (surface parked) Rent $20, NNN, Starting Rent for Anchor $26, NNN, Starting Rent for Inline Tenants Land Value $12/SF ($266,400) Durston Retail -Proposed Site Plan N •Durston Retail is close to being feasible •Rent levels necessary for feasibility are among the highest retail rents in the market area •Incentives and/or gap financing could enable it to pencil in today’s market FeasibleNot Feasible Durston Retail –Feasibility Index Durston Retail –Financial Performance Output Low End of Market Rent $20, NNN, Anchors $26,NNN, Inline Tenants Not Feasible Necessary Rent (Very High End of Market Rents) $24, NNN, Anchors $30, NNN Inline Tenants Feasible 210 January 2016 | 7Bozeman Durston Apartments –Financial Model Basic Assumptions Site Size 38,700 SF Gross Building Size 38,900 SF Number of Units 37 Total Units Number of Parking Spaces 42 Total (20 Ground level Internal stalls) (22 Surface stalls) Residential Rent Current Top of Market @ $1.75/SF (Not Feasible) Rate Needed for Feasibility $2.15/SF Land Value $15/SF ($266,400) •The Durston Apartments are not feasible in today’s market •Residential rents at Durston would have to be approximately 23% higher than market rate for the development to be feasible •Incentive or gap financing could enable the development to pencil in today’s market FeasibleNot Feasible Durston Apartments –Feasibility Index Durston Apartments –Financial Performance Output Top of Current Market Rent $1.75/SF ($1,550 a month for a Two Bed Unit) Not Feasible Necessary Rent $2.15/SF ($1,903 a month for a Two Bed Unit) Feasible Proposed Site Plan 211 January 2016 | 8Bozeman Westlake Site Development FeasibleNot Feasible Westlake Site –Feasibility Index •The development of the Westlake site appears to be close to feasibility in today’s market •Like the Durston site, residential rents at Westlake would have to be above the current market rate to make that apartment buildings feasible •The townhomes appear to be feasible and in demand in the current market. •Absorption of all 91 homes and the apartments would likely take a few years Westlake Site -Proposed Site Plan Westlake Site –Development Program Values Townhomes Small Townhomes –1,100SF Approx. $300,000 Large Townhomes –1,944SF Approx. $415,000 Townhomes in these price ranges appear to be feasible and in demand in the current market Apartments $1.75/SF ($1,550 a month for a Two Bed Unit) This is a top of the market rent.Rents will have to be slightly higher to make most of these apartments work Approximate Site Development Costs Streets and Right of Way $3,700,000 Parks,Public Open Space, Trails, and other Green Spaces $1,200,000 Parking $1,700,000 Other Site Infrastructure Costs $1,000,000 Raw Land Cost Plus Site Developer’s Profit $4,800,000 Total Site Development Cost $12,400,000 or $22 per Square Foot 212