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HomeMy WebLinkAbout05-22-17 City Commission Packet Materials - C3. Cash-in-lieu of Parkland for Creekstone Apartments1 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Rebecca Owens, Associate Planner Martin Matsen, Director of Community Development SUBJECT: Request for Cash-in-lieu of Parkland Dedication for the Creekstone Apartments, 1150 Baxter Creek Way, Site Plan Application 16254. MEETING DATE: May 22, 2017 AGENDA ITEM TYPE: Consent (Quasi-Judicial) RECOMMENDATION: The City Commission approves the request for cash-in-lieu of parkland dedication and requires payment of $41,792. ADVISORY BOARD RECOMMENDATION: The Recreation and Parks Advisory Board (RPAB) Subdivision Review Committee met on March 16, 2017, and unanimously recommended that the Commission accept the applicant’s proposal to provide the minimum dollar amount of cash in-lieu of park land dedication based on estimates of approximately $50,000, subject to appraisal. BACKGROUND: The subject property is 3.46 acres located along Baxter Creek Way and West Oak Street, with service from the North Laurel Parkway as well. The site is zoned R-3 for residential medium density and was previously developed with three-household structures, basic utilities and site infrastructure under a site plan that has since expired. The underlying growth policy designation is Residential. The current site plan application proposes construction of thirty-seven (37) residential units within ten (10) buildings, for a total of 43 new and existing residential units in the development, the latter which do not require retroactive parkland dedication. The site is in Laurel Glen Subdivision Phase 2 which was platted in 2006 with required parkland deferred to future phases. Future phase parcels of the subdivision are under new ownership as the Westbrook and Boulder Creek subdivisions and previously dedicated parkland for the Laurel Glen subdivision was platted in entirety to these properties, leaving the subject property without land dedication capacity. The remaining required parkland for this development is 0.78 acres. In accordance with Section 38.27.030.C of the Bozeman Municipal Code (BMC), the applicant requested to pay cash in-lieu equal to the fair market value of the amount of land that would have been 46 2 dedicated, in this case $41,792. The applicant provided the same appraisal used for recent projects, which suggests using $1.23 per square foot as the fair market value for the land. The Development Review Committee (DRC) considered the proposed development at its June 13, 2016 meeting. Staff identified several required Unified Development Code (UDC) corrections in advance of the Development Review Committee meeting on this item, including the necessity of the City Commission’s approval of an alternative parkland dedication proposal. If the City Commission chooses to not to approve the request for cash donation in-lieu of parkland dedication (CILP), the project would necessitate a different design or the elimination of residential dwelling units. The UDC provides multiple options for satisfying parkland dedication requirements. The applicant must identify if dedicating parkland can be accomplished on the site, within the surrounding vicinity or through the protection of a unique feature (wetlands, historic location or other feature). Another alternative is to provide cash in-lieu or improvements in-lieu for an existing park site. Based on the site layout, proximity to multiple residential subdivisions and associated park amenities, existing partial development of the site, changes to the subject subdivision and code since the original site plan approval, and the endorsement of the RPAB Subdivision Review Committee, Staff recommends that the Commission approve the applicant’s request for cash in-lieu of parkland dedication. BMC Sec. 38.27.020. - Park area and open space requirements. A. The area required by this subsection shall be provided. The required area or its equivalent may be provided by any combination of land dedication, cash donation in-lieu of land dedication, or an alternative authorized by section 38.27.100, subject to the standards of this chapter. 1. When the net residential density of development is known, 0.03 acre per dwelling unit of land shall be provided. a. When the net residential density of development is known at the time of preliminary plat and net residential density is in excess of eight dwellings per acre, the requirement for dedication for that density above eight dwellings per acre shall be met with a cash donation in-lieu of the additional land unless specifically determined otherwise by the review authority. b. These requirements are based on the community need for parks and the development densities identified in the growth policy and this chapter. c. Net residential density of development is known when a plat or site plan depicts a set number of lots and the final number of residential units at full buildout can be reasonably determined. d. When developed as group living, in lieu of 0.03 acres per dwelling unit, an area of 575 square feet per resident shall be provided up to a limit of 27 persons per net acre. 47 3 e. The required area dedication or its equivalent shall not be required for any residential density in excess of the following: (1) For development within the R-1, R-2, and R-MH zoning districts, the maximum net residential density shall be ten dwellings per acre. (2) For development within the R-3, R-4, R-O, and REMU zoning districts, the maximum net residential density shall be 12 dwellings per acre. (3) For development within other zoning districts not previously specified and developed for residential uses, the maximum net residential density shall be 12 dwellings per acre; Based on the parkland calculations pursuant to Section 38.27.020 of the BMC for 12 units per acre of known density: Net residential area: 3.46-acre site - 1.29 acres existing units = 2.17 acres Parkland required: 3.46-acre site x 12 dwellings/acre x 0.03 acres/unit = 0.78 acres The appraised value for the fair market value of land that would have been dedicated is $1.23 per square foot. Therefore, the value of the total CILP dedication for 0.78 acres (33,976.8sf) is $41,792. APPLICANT’S PROPOSAL: The applicant has proposed receiving credit for the existing 6 units covering 1.29 acres on the subject site. The request comes with a finding that parkland dedication fees are for impacts created, not those which have already been in place. The appraised value for the remaining 2.17 net acres (33,976.8sf) of land is $1.23 per square foot. Therefore, the value of a total “cash in-lieu” is: $41,792. The applicant proposes to pay $41,792. FINDINGS FOR SUPPORT: The goal of parkland dedication is to provide publicly dedicated land for recreational purposes in order to mitigate the impact of additional residents’ needs for services. Development code states that applicants can request to accomplish their parkland requirements with a cash donation in-lieu of parkland dedication. Sec. 38.27.030. - Cash donation in-lieu of land dedication. A. The review authority may determine whether the park dedication must be a land dedication, cash donation in-lieu of land dedication or a combination of both. When making this determination, the review authority shall consider the following: 1. The desirability and suitability of land for parks and playgrounds based on size, topography, shape, location or other circumstances; and 48 4 R-3 (residential medium density) zoning intends to provide for the development of one- to five-household residential structures near service facilities within the city, with a variety of housing types. Existing and future land use designations for residential uses surround the subject property and are compatible with the proposed use of the subject property. These developments provide and are actively planning to create additional dedicated parkland areas. A large community park is accessible within one half-mile of the development. Parkland dedication for this property would not meet required street frontage requirements. 2. The expressed preference of the developer. The developer requested the provision of cash-in-lieu and supplied the required documentation and appraisal. 3. Location of the site within the R-3 zoning district. Residential developments within the R-3 zoning district must obtain City Commission approval to allow for cash in-lieu of parkland dedication.. Parks, Recreation, Open Space, and Trails Master Plan 8.4.3 Cash-in-Lieu Criteria. 1. Proximity to Existing Parkland. Adjacency to existing parks may provide unique opportunities to aggregate and consolidate parkland into larger and more useful parks. Several parcels adjacent to the subject area, including existing residential structures on the northeastern portion of the site, have been developed under approved plans. However due to general economic factors permits lapsed, preventing continued development. The applicant has considered opportunities to contribute cash in-lieu of improvements for parkland in the immediate vicinity and concluded that existing conditions and known plans for improvements on the behalf of the Westbrook and Boulder Creek developments, which were previously part of the Laurel Glen subdivision, are sufficient. The applicant believes that the proposed contribution can be more aptly leveraged via improvements selected by the City for other park areas in the vicinity that serve a broader geography and demography. In addition, the forthcoming Bozeman Sports Park is located within a one half-mile radius of the project. The Bozeman Sports Park is identified in the applicant’s CILP request as a sample beneficiary. 2. Size of Land Available for Parkland. When only small pieces of parkland are available it may be preferable to get the cash-in-lieu. However, these small parcels might make perfect mini parks if need is demonstrated by this plan. The total required parkland dedication is 0.78 acres. Utilizing staff time to maintain an additional public park would require an increase in City resources allocated to park maintenance. 49 5 3. Housing Density/Infill Projects. Lower-density development is characterized by lots with yards, whereas high-density lots typically do not have large yards; high density development may, in fact, have a greater need for parkland than low-density. This is a medium density residential project. The project, as proposed, conforms to the minimum density requirements of R-3 zoning. If the applicant provided land dedication, it would consume up to 23% of the subject property and reduce the density factor. The proposed residential units have small yards or balcony spaces, with limited area available for required open space and parkland provisions. The code requires the applicant to provide compensation to ensure that existing parks can adequately accommodate the amenities commiserate with additional dwelling units. 4. Trail Connections. Trail connection should be obtained instead of cash-in-lieu. Trail connections already exist in the immediate vicinity. The site is bound to the north by undeveloped agricultural tracts in the County. There is an existing linear public park trail easement on the opposite side of the creek through a different development, the Boulder Creek Subdivision. Existing and future sections of this trail run north-to-south several miles for the full length of Baxter Creek. The trail and future West Oak Street shared use pathway running east-west connect the property to commercial services and parks. 5. Suitability Factors. The suitability may be diminished due to factors such as steep slopes, extremely high groundwater (surface ponding), etc. The city’s existing and near-future approved improvements to the transportation system serve the subject property. Bozeman Sports Park is walking and bicycling distance of the property. However, the site is not otherwise accessible based on the lack of transit stops. The Baxter Creek wetlands area in the setback adjacent to and one the subject property consists of significant natural vegetation that would prevent development of usable park space. Requiring a 0.78-acre park in this location would not be suitable. 6. Service Area. State law states that cash-in-lieu funds can be spent only if the “park, recreational area, open space, or conservation easement is within a reasonably close proximity to the proposed. A future Community Park, Bozeman Sports Complex, is located within one half- mile of the development. The applicant is proposing to utilize the cash in-lieu alternative for parkland which, if approved, can be dedicated to either local parks or regional parks per the needs of the community. There is a sufficient number of parks in the vicinity, including both passive areas within walking distance and active regional parks. UNRESOLVED ISSUE(S): None determined at this time. 50 6 ALTERNATIVES: 1. Support the staff recommendation and findings to approve the request for a cash in-lieu payment for the project of: $41,792 per Sec 38,27.020 2b(3); 2. Approve the request for a cash in-lieu payment in an alternate amount; 3. Deny the request for cash in-lieu; OR 4. As suggested by the Commission FISCAL EFFECTS: Per the attached applicant analysis, the appraised value is $1.23 per square foot. The applicant proposes to pay a cash in-lieu of parkland dedication equal to the appraised market value of the land, which is $41,972. Therefore, the cash in-lieu payment for this project is $41,972. Attachments: Land Appraisal Site Plan Applicant Parkland Calculations and Narrative RPAB Subdivision Review Committee Memorandum 51 Matt Hausauer, P.E. C & H Engineering and Surveying, Inc. 1091 Stoneridge Drive Bozeman, MT 59718 May 3, 2017 Dear Mr.Hausauer, As per your request I have gathered some data to estimate a market value for your R-3 land, titled under Kardar LLC,on a per square foot basis with a legal description of: Lot 1, Block 34, Phase 2 Laurel Glen Subdivision, located in the SE ¼ of Section 4, Township 2 South, Range 5 East,P.M.M. City of Bozeman, Gallatin County, Montana. The purpose of the estimate is for you to establish the market value for the City of Bozeman’s Cash in Lieu Parks Program.The valuation is not on your piece of land, but on what annexed speculative development land with a similar use would bring in the open market. The following sales have been used to estimate a value on a per square footage basis.Thus the compiled sales on the following pages are of sites that are speculative development land with somewhat similar characteristics when compared to the subject. 52 53 54 55 Subject Site 56 57 In the case of the Sale 1 is almost identical to the subject when considering the proposed use.Sale 1 is an R-4 zoning, that is annexed into the City but is unimproved, water and sewer are available, but the offsite improvements are not complete. Based upon Sale 1 that just closed and is the most similar to the use proposed for your site, I would estimate the Cash in Lieu value at $1.23psf or $53,600 per acre. If I can be of further assistance,please do not hesitate to contact me. Sincerely Keith O’Reilly, MAI General Certified Appraiser State of Montana #400 58 59 1091 Stoneridge Drive • Bozeman, Montana • Phone (406) 587-1115 • Fax (406) 587-9768 www.chengineers.com • E-Mail: info@chengineers.com Civil/Structural Engineering and Surveying March 24, 2017 City of Bozeman Department of Community Development 20 East Olive Street P.O. Box 1230 Bozeman, MT 59771-1230 RE: Cash-In-Lieu of Parkland Request (#16046) Dear Rebecca, The Creekstone Condominiums project is a previously approved site plan that includes a total of 43 residential units on 3.46 acres. Six (6) of the 43 units were previously constructed prior to the site plan expiration and do not require retroactive parkland dedication. The required parkland for the development is calculated as follows: Maximum Density: Net residential density 12 dwellings/acre Net Residential Area: 3.46 acres – 1.29 acres = 2.17 acres Parkland Required: 12 dwellings/acre x 2.17 acres x 0.03 acres/dwelling = 0.78 acres required The appraised value for the annexed, zoned, unsubdivided, unimproved land is expected to be between $0.87/SF - $1.23/SF. At an estimated $1.23/SF, the cash-in-lieu value is $41,792. The applicant requests a cash donation in-lieu of dedication equal to the appraised value of the land. This value is expected to be between $29,560 - $41,792 depending on the appraisal. The owner prefers that the donation is allocated to the Bozeman Sports Park or to a higher-priority park improvement (as determined by the Parks Department) within ½ mile of the development. It is believed that cash-in-lieu of parkland is favorable for this project as there is not sufficient area on the property to construct a 0.78 acre park and smaller, “pocket parks” are undesirable. The project is adjacent to parkland and open space per the approved preliminary plat for Boulder Creek Subdivision to the east and south of the property. There is additional parkland at the existing Westbrook Subdivision approximately 600 feet south of the property. Adequate pedestrian facilities exist to access these parks from the Creekstone Condominiums. The 80-acre Bozeman Sports Park is within ½ mile of this development which will provide additional recreational opportunities for the Creekstone residents. Sincerely, Matthew Hausauer, P.E. G:\c&h\16\161004\plat - preapplication\161004_Pre-App Waiver Request Letter.docx 60 MEMORANDUM TO: Brian Krueger - Community Development FROM: Carolyn Poissant – Parks Dept. TOP Manager CC: Mitch Overton – Director of Parks and Recreation DATE: March 24, 2017 SUBJECT: Creekstone Apts. CIL Proposal (Application 16354) The RPAB Subdivision Review Committee unanimously approved the following motion: I hereby recommend approval of the Creekstone Condos applicant’s proposal to provide the minimum dollar amount of cash-in-lieu of park land dedication based on appraisal of approximately $50,000, subject to appraisal. The committee noted that additional improvements could be installed in the proposed parks in the nearby Boulder Creek subdivision parks. 61