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HomeMy WebLinkAbout08-03-17 Public Comment - C. Naumann (on behalf of BDBID and DURD) - Black Olive II August 2, 2017 City Commissioners Bozeman City Hall PO Box 1230 Bozeman MT 59715 RE: Black Olive Project Public Comment City Commissioners: I am submitting this public comment on behalf of the Downtown Business Improvement District Board and the Downtown Urban Renewal Board. The members of these boards, as appointed by the City Commission, represent over 175 downtown property owners. The Downtown Bozeman Business Improvement District (BID) is an organization of downtown property owners who through thoughtful, pro-active collaboration and partnership with local government, business owners, residents and citizens strive to create a shared vision and voice for the community of downtown Bozeman. The BID has a goal of ensuring the long-term preservation and vitality of the city’s underlying economic, cultural, social and environmental assets. The Downtown Urban Renewal District (URD) fosters an economically thriving district that: 1) attracts investment; 2) stabilizes and strengthens the tax base; and 3) supports the vitality and diversity of the Gallatin Valley as its social and cultural center. The Downtown BID and URD have been involved in downtown planning efforts since 1995. Both boards will continue to engage downtown stakeholders as the community plans for the future. Both boards feel it is important to refer to the 2009 Downtown Bozeman Improvement Plan as the context by which urban planning decisions are made. This neighborhood plan is the product of 20 years of public planning and serves as our road map as we move forward. As was requested by Commissioner Chris Mehl, attached is a compilation of excerpts from the Downtown Plan that specifically address infill, housing, density, and design. Thank your consideration of these comments. Chris Naumann, Executive Director DOWNTOWN BOZEMAN IMPROVEMENT PLAN Excerpts Pertaining to Infill, Density, Housing, and Design Prepared by Chris Naumann, Downtown Partnership, at the request of the City Commission INTENT [page 4] Throughout the country it has been increasingly difficult for small, local-serving businesses to operate in this age of online shopping and big-box stores. While downtown Bozeman has a tremendous group of these types of businesses, they can’t help but be affected by seasonal cycles, the changing expectations and behaviors of consumers, and the current economic downturn. Downtowns like Bozeman’s used to be well supported when single family houses contained six people. Now they typically contain half that number, or less. All thriving downtowns depend upon a solid presence of residential density in close proximity – ideally within walking distance. Fortunately, downtowns all over the country have been seeing an influx of two demographic groups – people in their twenties and people in their sixties – who wish to live close to arts, entertainment, interesting shops and restaurants, and an active “street life.” These groups are fueling a demand for condominiums, row houses, lofts, flats, cottages, and many other forms of denser housing around the edges of commercial cores. NATIONAL TRENDS [page 8] Recent American downtown renaissances have been driven by new housing. This should come as some surprise since “downtown” was once largely synonymous with “central business district”—the place where employment and industry took place and most residential life did not. Some keys to understanding downtown housing in general and specifically to Bozeman include: During the last two decades, downtown housing has grown from a tiny niche market to major national trend, largely due to changing consumer demand. Today, the national market of potential for urban dwellers numbers in the tens of millions of households. These people are seeking an active, exciting environment with abundant retail and cultural opportunities, and less upkeep and maintenance than would be required for a traditional single family home. OPPORTUNITIES FOR BOZEMAN [page 8-9] Most urban residents fall into one of two demographic categories: first, young singles or couples in their 20s or 30s, and second, downsizing baby boomers or retirees approximately 60 or more years old. Bozeman also has a third group of potential residents: second home and vacation homeowners. According to the University of Montana, these households are typically relatively wealthy, with average annual incomes of $100,000, and are attracted to the state by friends, family, and the beautiful natural surroundings. Along with age and household size, another key indicator for downtown residential demand is high levels of educational attainment. Nationally, forty-four percent of downtown residents hold a bachelor’s or higher degree. These three key urban residential markets hold significant promise for residential and mixed-use development in downtown Bozeman. 67.2 percent, or approximately 9,000, of all City of Bozeman households are made up of one or two people. Compared to the approximately 400 households that live in downtown today, this represents a very large market, even if only a small percentage moves to downtown. Bozeman is also a relatively young city, with 16.7 percent of its population between 25 and 34 years of age, compared to 12.0 percent for the State of Montana. Within the state, only Missoula has a comparable percentage of residents in this age group. Bozeman is also an exceptionally well-educated city—52.2 percent of its residents have completed a bachelor’s degree or more. This is the highest of any major city in the state, and also higher than cities such as Boise, Idaho and Spokane, Washington. Each of these demographic indicators shows that there is significant potential for residential growth downtown. By contrast, the early baby boomer demographic, now 55 to 64 years old, makes up 7.1 percent of Bozeman’s population. This is lower than the state average and the level of most other Montana cities. Downtown residents energize the rest of downtown because they support more local retailers, events, and other commercial activities than residents of other areas or downtown employees. Downtown residents tend to support three or more times as much square footage of retail compared to downtown employees. This is good not just for downtown businesses, but for all of Bozeman’s citizens who value a vibrant downtown. Over the long term, downtown residents will attract businesses downtown as well. There is an established correlation between where business executives and their employees live, and where businesses locate. When residences moved to the fringes of urban areas in the late 20th century, so too did businesses. Now, the reverse is beginning to happen. Bozeman can expect the new housing seen in downtown to evolve and increase in scale and density. Typical early-phase downtown housing includes historic renovations, attached townhouses, and two or three story wood frame apartments. These are usually followed by more expensive and ambitious projects that include steel and concrete structures of three to five stories. This evolution takes place as developers test the market to determine the popularity of urban housing and particular preferences of the local market. While the Village Downtown and other planned developments have introduced higher density dwelling types, the current economic downturn is likely to slow or turn the clock back on the evolution of downtown housing, and generate more modest projects in the short and medium terms (within the next five years). During this time frame, it is unlikely that the current height limits in downtown will become a major constraint to downtown development. The consultant team’s initial experience-based assessment is that there is potential in the Bozeman downtown market for approximately 500 additional residential units. Approximately 200 of these would be condominium units and the remaining 300 would be apartments. Due to the still-emerging nature of Bozeman’s downtown residential market, the condo projects will tend to be smaller—approximately 30 or 40 units each—while the apartment projects will tend to be larger due to the economies of scale required—ranging between 80 and 150 units each. Additional site specific and Bozeman-area market research will be needed in order to attach more specific timeframes, benchmarks, and site specific recommendations to this assessment. Private investment follows public commitment. In other words, most developers, business owners, and others want to put their money and life’s work where it will be reinforced and amplified by established public goals and investments. It is usually the public sector’s goal to set the stage and standards and demonstrate that its downtown is a safe, attractive, exciting—and ultimately profitable—place to invest. ISSUES [page 10] Maximize Underutilized Parcels Many sections of the downtown district contain underutilized parcels. Such parcels are often located abruptly on the sidewalk edge and create “dead” spaces at many key locations. Considering downtown’s pedestrian focus and a finite amount of land for infill projects, these parcels should be further analyzed to determine their highest and best use, which may be redevelopment. OPPORTUNITIES [page 11] More Housing Downtown Increase the limited amount of housing, taking advantage of the proximity of local services and stable residential neighborhoods nearby containing several schools and parks. GUIDING PRINCIPLES [page 12-13] 1 Downtown Bozeman should be the location of buildings of the greatest height and intensity in the community. 4 The scale and character of the historic core should be protected but other downtown districts should be able to accommodate contemporary development of greater height and density. 5 Parking should not govern development potential; the amount of parking relative to development should decrease. Parking inventory should be managed so as to ensure convenient access for customers. 8 Housing–for all income levels–should be encouraged by a variety of methods. 10 New buildings should be designed to the level of permanence and quality appropriate for a downtown setting. 11 Create strong connections between sub-districts, and from Downtown to the surrounding community. CREATE DISTINCT DISTRICS [page 16-17] “North Village” (Residential Emphasis) This area of downtown has the greatest potential to become a new urban neighborhood, filled with hundreds of dwelling units of all different types, unique public spaces, landscaped alleyways, and small service businesses aimed at local residents both within and near downtown. The presence of significant housing is the most critical missing piece of Bozeman’s downtown, and for it to be vital and sustainable over time, housing should be developed in great numbers and varieties, at all price-points, both rental and for-sale. This recommendation is a “cornerstone” of this plan. The very future of downtown is dependent upon the successful development of housing--both for people in the community who wish to stay but downsize as well as for newcomers. “South Village” (Commercial/Mixed Use) The blocks along Babcock between Wilson and Rouse contain a wide-ranging mix of uses from governmental (Federal Building) to office, to some retail, to housing, to churches, with no one use seeming to dominate. Nor is there that much property that could be converted to other uses. Nonetheless, over time parking lots especially on the north side of Babcock could have new buildings containing commercial and residential uses. BUILD HUNDREDS OF UNITS OF HOUSING [page 18] A healthy downtown must attract people to live, work and play. Housing plays a key role in this formula for success, since attracting more people to live downtown establishes a base to support downtown businesses, allowing retailers such as restaurants and other shops to thrive. Today, Downtown Bozeman includes only a small amount of housing, with a limited range of housing types. Nationally, market-rate residential development has been a powerful force in bringing new life and economic support to downtowns. This plan includes a preliminary examination of the downtown area through this lens, identifying opportunity areas, and testing the feasibility of these locations for a range of downtown residential development types. As mentioned previously, attracting downtown residential development to Bozeman can help accomplish many goals at the same time: • provide a new use for many downtown properties currently underutilized; • increase the customer base for existing businesses and provide the spending power to attract new businesses and cultural activities; and • add more people downtown at all times of the day, increasing safety, and providing an expanded base of support for future improvements, events, and activities. HOUSING CHOICES [page 18-19] National trends showing a growing demand for downtown housing suggest a potential market exists in Bozeman. Numerous larger underutilized parcels in this area can be in-filled with primarily housing redevelopment. Potential downtown residents are a diverse group from younger residents to empty nesters, demanding both rental and ownership housing, and express preferences for a range of housing types, from townhouses to multifamily dwellings, to rehabs of older buildings for lofts. Downtown Bozeman has the capacity for this and contains many of the amenities--including an attractive Main Street, cafes, shops and restaurants--that are drawing new residents to resurgent downtowns across the county. Moreover, Bozeman has its own special qualities, including its scenic natural setting, homegrown business, and active social life, from which new development can draw. The site analysis of opportunity areas downtown identified potential accommodation of as many as 500 units over five to fifteen years, with a concentration in the “North Village” district, and in particular along Mendenhall. Numerous larger underutilized parcels in this area can be in-filled with primarily housing redevelopment. In addition to new development, there may also be opportunities to provide or renovate housing in the upper floors of buildings along Main. Making this happen may require amending the Building Code, seeking low-income tax credits, or changing height limits and requiring step-backs for added floors, as has been done in other historic districts. DOWNTOWN DISTRICTS [page 38] The City should adopt a set of regulations that are tailored to downtown and the various districts that are suggested. But first, the very nomenclature should change. Rather than having merely a “B-3” designation, which might be anywhere, the word “Downtown” should be used in all titles. This indicates its importance, that downtown is different than any other part of the community, and that totally different methods and standards will be used. Basic development standards, such as building heights, minimum and maximum FAR, and parking requirements, should be considered “entitlements” that are not subject to modification by the City Commission. They should be presented clearly as measurable regulations used in a predictable review process to meet the desired urban form. Design standards and guidelines should supplement these basic standards and are best written in a way that offers choices and allows for projects that are innovative, creative, and of superior design as individual buildings while also contributing to a cohesive Downtown district. BUILDING HEIGHTS [page 38] This plan does not recommend any changes to allowable height for downtown districts. However, a new code should consider reducing heights for some small distance where a downtown district abuts a single family district. This is a common technique used in many cities to ensure a comfortable transition from greater intensity to lower intensity. The horizontal dimension for this transition might be in the range of 50 to 100 feet and the height might be equivalent to what is allowed in the residential district or perhaps slightly higher. There also might be additional screening requirements. The City might also consider allowing additional height to developments in downtown if it provides an extraordinary item of public benefit that involves extra cost, such as a live theatre, public meeting rooms, a public park, a high level of sustainable features, or if it has unique functional requirements. DESIGN STANDARDS AND GUIDELINES [page 39] It is vitally important that downtown development be guided by a sound set of design standards and guidelines. Downtown is currently governed by a set of guidelines, but these are principally applicable to the core and not other areas. A set of standards and guidelines should be created to help inform new development outside of historic Main Street. Some should be numerical and fixed (such as set-to lines, heights, upper level step-backs, and requirements for storefront windows.). But most can be descriptive and inspirational and use graphics to explain (such as encouraging overhead canopies, artful signs, rich details, etc.) These need not be onerous or lengthy but should be displayed in a concise, highly-illustrated, user-friendly document. Finally, by their very nature, design guidelines (in contrast to standards) are intended to allow flexibility and choices, producing many different solutions, so long as their intent is fulfilled. A STRATEGIC PLAN AND COMMITTED LEADERSHIP [page 40] Bozeman has already made progress on at least one of the most important requirements for great downtowns—it has a plan, now in your hands. Now, the City needs to be sure that its leaders—including elected leaders, business executives, nonprofit managers, and active citizens of all stripes—get behind it and work to see that its strategic goals are implemented in the days and years to come. A strategic plan recognizes that some things will change. Not every recommendation or prediction made here will take place exactly as envisioned—and that’s okay. There is both great value and danger in the details that inform a strategic plan. One danger is that the details drag all stakeholders down into debates about the minutia— for example, details in the zoning code or the precise number of housing units that will be built by 2030. A strategic plan, on the other hand, is about the big picture, and staying true to the vision is of the utmost importance. For this plan, the big picture is about Making a Great Place. This big goal is reinforced by 12 Guiding Principles on pp. 12 and 13 that will steer more specific actions. Committed leadership is essential in order for this plan to succeed and maintain and grow Bozeman’s healthy, vibrant downtown. Downtown must be a priority for the City Commission and other key public bodies that support the commission. Downtown’s status as a priority should be reflected in attention to the Redevelopment of key sites, funding allocation, marketing and public outreach, streetscape and infrastructure improvements, attention to more specific planning efforts that will deal with parking, transportation, individual sites, and more. The best downtowns are a source of pride for citizens, mayors, and city commissioners, who are their most visible advocates. SIMPLIFYING THE DECISION-MAKING PROCESS [page 40-41] One of the barriers to downtown development may be the process of reviewing and making decisions on development proposals. Frequently, projects being reviewed are seeking multiple “deviations” from the code and that triggers review by advisory boards, public hearings, and even City Commission involvement. Any City that desires to see its downtown develop must offer a clear and smooth decision-making process for projects. And such a process cannot trigger uncertainties caused by political considerations. Confusing or unpredictable review processes can deter new development from occurring. The test of any review should be: “Does it comply with adopted City standards?” Project design should not be subject to widely varying personal opinions. The standards should be adopted by the City Commission, upon recommendation by an appointed body such as the Planning Board or DRB. The standards must be carefully crafted to reflect community concerns such as quality and compatibility with adjacent, existing development. The review of a specific project is not the time to debate these; the issue during review should be whether the project comports with current standards. It is possible that one reason that many projects seek deviations is that the current standards do not reflect building forms and dimensions commonly associated with contemporary development. As indicated elsewhere in this plan, standards for downtown buildings outside of the historic commercial core should be developed to allow modern forms of residential and mixed-use development and not attempt to recreate older patterns as is more appropriate within the core.