HomeMy WebLinkAbout08-28-17 City Commission Packet Materials - C2. Midtown Apartments CILP Dedication Request1
Commission Memorandum
REPORT TO:
FROM:
SUBJECT:
Mayor Carson Taylor and City Commission Brian Krueger, Development Review Manager Martin Matsen, Director of Community Development Request for Cash In-Lieu of Parkland Dedication for the Midtown Apartments, 511 West Peach Street, Site Plan Application 17275.
MEETING DATE: August 28, 2017
AGENDA ITEM TYPE: Consent (Quasi-Judicial)
RECOMMENDATION: That the City Commission approves the request for cash-in-lieu of parkland dedication and requires payment of $4,455.61.
ADVISORY BOARD RECOMMENDATION: The Recreation and Parks Advisory Board (RPAB) Subdivision Review Committee met on July 13, 2017, and unanimously supported 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 $4,455.61, subject to appraisal.
BACKGROUND: The subject property is 0.231-acres (10,062sf) located on the northern side of Peach Street, one block east of North 7th Avenue. The site is zoned B-2M (Community Business - Mixed District) and designated in the Community Plan for Community Commercial Mixed Use future land use. The subject site plan application is to allow the demolition of a single family residence and construction of a three-story, seven (7)unit apartment building with approximately 4,404 sf in gross living space floor area andadditional space for storage. The units are all 1-bedroom except for an accessibleapartment at the ground level. In addition to 7 dwellings, 9 garages are proposed on thegroundfloor, and there are 2 shell storage spaces for potential future residential unit fitoutsuch that all dwelling number-based calculations for open space, parkland, parking,density, etc. have applied nine (9) dwellings. The site has Mixed Block Frontage and islocated in the Midtown Urban Renewal District. Related site improvements include addressof new and existing utilities, new drive access and circulation, on-site garage parking for 9spaces on the ground level, landscaping, and open space. The site plan and landscapingplan depict adequate on-site residential open space. Cash in-lieu of parkland is proposed tomeet remaining requirements.
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The area was not planned for intensive residential uses or parks as the original parcels were platted in 1948. As such, the small site presents challenges to accommodate parkland on-site. The required parkland for this development is 0.08316 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 dedicated, in this case $$4,455.61. 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 August 2, 2017, 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, proposed infill, small number of units proposed, proximity to multiple subdivisions with associated park amenities, 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.
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c. Net residential density of development is known when a plat or site plan depicts a set number of lots and the final number of residential units at full buildout can be reasonably determined. d. When developed as group living, in lieu of 0.03 acres per dwelling unit, an area of 575 square feet per resident shall be provided up to a limit of 27 persons per net acre. e. The required area dedication or its equivalent shall not be required for any residential density in excess of the following: (1) For development within the R-1, R-2, and R-MH zoning districts, the maximum net residential density shall be ten dwellings per acre. (2) For development within the R-3, R-4, R-O, and REMU zoning districts, the maximum net residential density shall be 12 dwellings per acre. (3) For development within other zoning districts not previously specified and developed for residential uses, the maximum net residential density shall be 12 dwellings per acre; 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: 0.0231-acre site Parkland required: 0.0231-acre site x 12 dwellings/acre x 0.03 acres/unit = 0.08316 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 0.08316 acres (3,622.4496 sf) is $4,455.61.
APPLICANT’S PROPOSAL:
The applicant has proposed receiving credit for a potential future 2 units in addition to the 7 units that will definitively be constructed with the subject proposal in order to have adequate parkland for a total of 9 residential dwellings. The 2 future units will be assessed based upon pending updates to Midtown parking minimums. The request comes with a finding that parkland dedication fees are for impacts created, not those which have already been in place as the subject parcel was historically occupied by a single household residence. The appraised value for the .0231 net acres of land is $1.23 per square foot. Therefore, the value of a total “cash in-lieu” is: $4,455.61. The applicant proposes to pay $4,455.61.
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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
B2M (Community Business District - Mixed) zoning intends to function as a vibrant mixed-use district that accommodates substantial growth and enhances the character of the city. This district provides for a range of commercial uses that serve both the immediate area and the broader trade area and encourages the integration of multifamily residential uses as a
secondary use. As a multihousehold development that accommodates
increased growth of the City, this project is suitable to the subject land. In
addition, existing and future land use designations for residential uses
partially abut the subject property and are compatible with the proposed use
of the subject property. These developments provide or are supported by
existing 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 B2M zoning district.
Residential developments within the B2M 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.
The subject site does not have adjacency to existing parks. There are multiple other neighborhood and regional parks in the vicinity, including the Westlake Park located half of a block to the northeast and North Grand Field
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approximately ¼ mile to the east, that serve current and future residents. The existing transportation network provides ready access to these areas. 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 approximately 0.08316 acres.
Utilizing staff time to maintain a public park of this size would be a burden on
the City. 3. Housing Density/Infill Projects. Lower-density development is characterized by lots with yards, whereas high-density lots typically do not have large yards; high density development may, in fact, have a greater need for parkland than low-density.
As density increases, so may the need for parkland. This infill proposal increases housing density and encourages walkable, urban residential uses with convenient proximity to commercial and institutional neighborhood services, including schools. The developer notes that adequate public parkland exists in the area and that tenants likely to seek a housing opportunity like the one
proposed will value the subject location’s ready access to downtown Bozeman
and Midtown. The central location enables residents to rely less upon vehicle
and roadway use, reducing the impact of the development on municipal
transportation infrastructure. Code requires the applicant to provide
compensation to ensure that existing parks can adequately accommodate the
amenities commiserate with additional dwelling units such that in lieu of
increasing nearby parkland area, the funds may be used toward parkland improvements. The site will also provide residential on-site open space for tenants. 4. Trail Connections. Trail connection should be obtained instead of cash-in-lieu.
There are no shared use pathways or trails, existing or proposed, near the development, due to the commercial nature of the area, which is based on future land use planning. City sidewalks, bicycle lanes, and the street network connect
this property to other services and parks.
5. Suitability Factors. The suitability may be diminished due to factors such as steep slopes, extremely high groundwater (surface ponding), etc.
The city’s transportation system serves the subject property. West Lake Park
and North Grand Field are within walking, driving, and bicycling distance of the
property. While accessory residential uses are permitted and several adjacent
properties are designated for primary residential uses, the growth policy designates this area for commercial mixed uses. Requiring a 0.08316-acre park
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in a lot size-constrained location that lacks adequate frontage and parking 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 project.”
The subject property is within one half-mile of a public park. The applicant is
proposing to utilize cash in-lieu, which, if approved, can be dedicated to either
local parks or regional parks per the needs of the community.
UNRESOLVED ISSUE(S): None determined at this time. ALTERNATIVES: 1. Support the staff recommendation and findings to approve the request for a cash in-lieu payment for the project of: $4,455.61 per Sec 38,27.020 2b(3); 2. Approve the request for a cash in-lieu payment in an alternate amount; 3. Deny the request for cash in-lieu; OR 4. As suggested by the Commission
FISCAL EFFECTS: Per the attached applicant analysis, the appraised value is $1.23 per square foot. Therefore, the anticipated cash in-lieu payment for this project is $4,455.61.
Attachments: Land Appraisal
Site Plan Applicant Parkland Calculations and Narrative RPAB Subdivision Review Committee Memorandum
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July 5, 2017
To: Recreation and Parks Advisory Board
Subdivision Review Committee
It is the intention of the Owner of the development at 511 West Peach Street to provide a Cash-in Lieu of
parkland for the development. The project’s residential density exceeds 12 units per acre but the code
does not require parkland beyond 12 units per acre. Thus, based on the parkland calculations, pursuant to
Section 38.27.020 of the BMC for the 12 units per acre density cap:
.0231-acre site x 12 units/acre x .03 acres/unit = .08316 acres of parkland required.
.08316 acres x 43560 s.f/acre = 3622.4496 s.f.
3622.4496 s.f. x $1.23 / s.f. (appraised value – see appraisal) = $4455.61 CILP estimated
Payment will be in the form of a Cash-Donation-in-Lieu of land dedication.
Sincerely,
____________________________________________ Date: __________________________
Luke Welborn
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Luke Welborn
Midtown LLC
P.O. Box 6507
Bozeman, MT 59715 June 2, 2017
Dear Mr. Welborn,
As per your request I have gathered some data to estimate a market value for your B-2M land, titled
under Jill Stephens,on a per square foot basis with a legal description of:
Lot 11 and the East 9.5’ of Lot 10 in Block 1 of North Seventh Addition to the City of Bozeman,Gallatin
County, Montana.
The purpose of the estimate is for you to establish the market value for the City of Bozeman’s Cash in
Lieu Parks Program. The valuation is not on your piece of land, but on what annexed speculative
development land with a similar use would bring in the open market.
The following sales have been used to estimate a value on a per square footage basis. Thus the compiled
sales on the following pages are of sites that are speculative development land with somewhat similar
characteristics when compared to the subject.
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17
18
19
Subject Site
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Subject Site
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In the case of the Sale 1 is almost identical to the subject when considering the proposed use. Sale 1 is
an R-4 zoning, that is annexed into the City but is unimproved, water and sewer are available, but the
offsite improvements are not complete.This site will be developed with residential apartments.
Based upon Sale 1 that just closed and is the most similar to the use proposed for your site, I would
estimate the Cash in Lieu value at $1.23psf or $53,600 per acre.
If I can be of further assistance, please do not hesitate to contact me.
Sincerely
Keith O’Reilly, MAI
General Certified Appraiser
State of Montana #400
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STAIRS UP TO 2ND LEVELSTAIRS UP TO 2ND LEVELELECT METERSCONCRETE APRON - FULL LENGTH OF BUILDING - SEE C1.1 SEE C1.1 FOR ALL SPECIFIC SITE DESIGN INFORMATIONUNIT 1 PRIVATE OPENSPACE130 S.F.LOW RAILING TO MATCHPROJECT RAILING ATPERIMETER OF SCOREDCONCRETE PATIOHEDGINGHEDGINGCONCRETEPORCH10' REAR SETBACKSNOWSTORAGELANDSCAPE BLOCK FRONTAGEPAVED DRIVEWAY5' SIDE SETBACK511 WEST PEACH ST.LOT 10 - BLOCK 1LOT 12 - BLOCK 1LOT 11 - BLOCK 1PROPERTY LINE 67.5'PROPERTY LINE 67.5'PROPERTY LINE 144.15'PROPERTY LINE 144.15'VISION TRIANGLEEXISTING 6' GREENWAYSNOW STORAGEEXISTING 5' SIDEWALKEXISTING 3.5' BOULEVARDSLOPE SIDEWALK 1 : 20PAVED DRIVEWAYACCESSIBLE ROUTE10' FRONT SETBACK30" PLANTER30" PLANTER10' FRONT SETBACK5'5'10'10'24'8'5'3'UPUP333TDTVGFIGFIGFIGFIGFI3324’ − 0"CONFIRMCONCRETE SIDEWALK40 YARD ROLL OFFCONSTRUCTION DUMPSTER −TEMPORARY.(3) BIKE RACKSUNDER EACHSTAIR. SEE SPEC.(3) BIKE RACKSUNDER EACHSTAIR. SEE SPEC.23’ − 0"TEMPORARY CONSTRUCTIONTRAILERTEMPORARY CONSTRUCTIONSTORAGE AND STAGINGTEMPOUTHOUSE4’ − 2"4’ − 2"traffic flow −traffic flow −westbound traffic flow −eastbound traffic flow −centerline of r.o.w.11’ − 0"22’ − 1"dzyn2architectscopyright 2016 dzyn2architects, pllcdrawings shall not bemodified, copied, orused for purposesother than theirintended use, withoutprior written consentfrom dzyn2architects, pllcverify scale noted ondrawings, as sizereduction will affectscale of drawingsREV:PROJECT NAME:Michael E. Pentecost,AIAP.O. Box 10866Bozeman, mt. 59719Phone − 406−586−5896Fax − 406−566−5782ADDRESS:OWNER:LEGAL:CA1.01GENERALSITE PLAN511 WEST PEACH STREETMIDTOWN APPARTMENTSDESIGNDEVELOPMENTMIDTOWN, LLCLOT 11 AND 9.5’ OF LOT 10, BLOCK 1 N 7TH SUB7−6−2017DESIGNDEVELOPMENT 3/16" = 1’−0"1SITE PLANN
7−14−2017 − DRC24
ENGINEERING
CONSULTING
PLANNING
DESIGN
204 N. 11th Ave. BOZEMAN, MT 59715 406‐581‐3319 www.g‐e‐i.net
204 N. 11th Ave., Bozeman, MT 59715 Cell: (406) 581-3319 www.g-e-i.net Page 1 of 1
Midtown Apartments : Cash In‐Lieu of Parkland Calculations & Narrative
Per BMC 38.27.030 ‐ “Cash donation in‐lieu of land dedication shall be equal to the fair market value of
the amount of land that would have been dedicated. For the purpose of these regulations, the fair market
value is the value of the un‐subdivided, unimproved land after it has been annexed and given an urban
zoning designation. The city intends to obtain the highest value for cash‐in‐lieu of park land that is
allowable under state law.”
Calculations:
Proposed Developed Parcel Size = 0.231 ac
Number of Proposed Residential Units = 10 apartment units
Maximum Density used for Parkland Calculation = 12 units/acre
Parkland Required: 0.03 acres/unit
12 units/acre x 0.231 acres = 2.77 units
Therefore 0.03 acres/unit x 2.77 units = 0.08316 acres of required parkland
A recent appraisal of unimproved land suggests to use $1.23/sf for the fair market value for the land that
would have been dedicated as parkland. Since the proposed project needs 0.08316 acres or 3,622 sf of
parkland set aside, at the estimated $1.23/sf, the applicant has a cash in‐lieu total of $4,455.61. The
applicants would like to offer $4,455.61 for cash in lieu, to be used for improvements within the nearby
East Gallatin Recreation Area.
Without the opportunity of cash in‐lieu, this project would likely not be feasible with almost 36% of the
site being parkland. This would reduce the density of the project by nearly a factor of 2. The applicant’s
vision for this project is to provide high quality in‐fill development and believes the proposed urban work‐
live concept will help fill a need in this area. The applicant also believes that for a development project of
this small size, cash in‐lieu can provide a better opportunity for quality improvements to larger parks such
as the nearby East Gallatin Recreation Area that can be readily shared by many more residents. The
commercial zoning of the project, bordered by manufacturing zoning to the north‐east does not lend itself
to needing a nearby park. The envisioned tenants of a development like this would not expect a nearby
park, but appreciate the urban atmosphere and are willing to bike or drive to the nearest park or
restaurant in exchange for the unique living arrangement in an up‐and‐coming neighborhood.
H:\1100\010\DOCS\Correspondence\parkland‐cash.doc
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MEMORANDUM
TO: Community Development
FROM: Carolyn Poissant – Parks Division
CC: Mitch Overton – Director of Parks and Recreation
DATE: April 18, 2017; updated 8/2/17
SUBJECT: 17122 Midtown Apartments INF (Rogers); Site Plan (Owens)
The Recreation and Parks Advisory Board approved the following motion at their regular meeting of
July 13, 2017:
1. Midtown Apartments (511 W. Peach) – 9 unit, 3 story, B2-M zoning infill project
Having considered all information presented and public input received to date, I hereby move
to recommend that the City Commission approve the applicant’s proposal to pay $4455.61 to
the cash-in-lieu of parkland dedication account for Development Application #17122 -
Midtown Apartments, as requested by the applicant.
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