HomeMy WebLinkAboutEx 5 BPC 6142018 Resolution 2018 05 CIL IncreaseDBOZEMAN PARKI NG COM M ISSIONRESOLUTTON 2018-04A RESOLUTION OF THE BOZEMAN PARKING COMMISSION OF THE CrTY OF BOZEMAN, MONTAI\A,RECOMMENDING AMENDMENT OF THE FEE FOR CASH IN LIEU PAYMENT OPTION TO THE OFF-STREET PARKTNG REQUTREMENT U¡IDER SECTION 38.540.050 OF THE BOZEMAI\ MUNTCTPAL CODEBY INCREASTNG THE FEE FROM $5000 TO 25,000.00 pER pARrilNG SPACE.WHEREAS, Section 38.540.050 of the Bozeman Municipal Code recognizes an ongoing need for additionalofÊstreet parking facilities arising from new development in the B-3 ZoningDistrict; andWHERBAS, Section 38.540.050 of the Bozeman Municipal Code allows payment of Cash In Lieu of ceftainparking requirements;NOW, TIIEREFORE, BE IT RESOLVED the Bozeman Parking Commission recommends to the BozemanCity Commission that this fee be increased to $25,000.00 per-space requested for Cash In Lieu.PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular sessionthereof held on the 14th day of June,20l8.Chris Naumann, ChairBozeman Parking CommissionATTEST:Ed Meece, Parking Program ManagerCity of BozemanAttachment A: CIL Calculation & TechnicalMemorandum from Rick Williams Consulting
BO Z^EMAN"'Porking ServicesDate: June7,20LBTo: Bozeman Parking CommissionFrom: Ed Meece, Parking Program ManagerRe: Cost Adjustment of Cash In LieuThe City of Bozeman municipal code permits the use of Cash In Lieu payments, inthe B-3 zonq in order to satisfy all, or part, of the off-street parking requirementsfor a proposed use and,f or development.l Requests for Cash In Lieu (CIL-ParkingJconsideration are made to, reviewed, and approved or denied by, the BozemanParking Commission. It is then the City of Bozeman's responsibility to manage theCll-Parking funds collected for the purpose of developing new parking capacitywithin the B-3 zone. This procedure can be a helpful tool in permitting desireddevelopment, while mitigating negative parking impacts by the combined utilizationof common parking facilities.Although the Cll-Parking fee has existed for several years, it has not been heavilyutilized. However, the continued scope and pace of development in the B-3 zone hascreated new interest in utilizing Cll-Parking. Unfortunately, at its current level of$5000 per-space, the Cll-Parking fee is inadequate to cover the actual costs forconstruction of a structured parking space [$X), For this reason, the City of Bozemanwould be reluctant to approve new Cll-Parking requests - which prevents the useof Cll-Parking as an effective tool for good development in the B-3.Recognizing that appropriate adjustments to the Cll-Parking fee would restore thisprocedure as a potential development tool in the B-3, the Parking ProgramManager proposes the Bozeman Parking Commission recommend that theBozeman City Commission adiust the Cll-Parking fee to $25,000.00 per space.The proposed per-space cost is calculated using the formula outlined in a technicalmemorandum from Rick Williams Consulting (attached), with an adjustment of theprivate cost allocation from 600/o of to 80%0. This adjustment generates additionalrevenue to the Cll-Parking fund, in turn allowing the City of Bozeman to morequickìy reinvest these revenues in new structured parking.Further explanation of the Cll-Parking methodology is discussed in the technicalmemorandum fattachedJ.1 Bozeman Municipal Code, 38.540.050P.O. Box 1230Bozemon, MT 59771-1230@20 Eost Olive Street406-582-2903www.bozemon.netTDD: 406-5 82-2301THE MOST LIVABLE PLACE
Cash ln Liêu - Parking
Fee Adjustment Calculation
DE
6/7/20t8
cBA F
Sq. Ft. Per Stall
Hard Cost
Construction - Per
Stall
Soft Cost Construction
(Per Stallf
Cost of Land
(Per Stall)
Varied by size of
lot in B-3
Total Cost to
Bu¡ld stall(w/o
land)
Fee-ln-Lieu @ 80%
of Total Cost Per
Stall(w/o land)
350 Sz3,45o S6,566 Sgo,ots 524,072.80
The PPM recommends a 525,000 CIL-
Parking Fee to establish the cost at a
level that accounts for some additional
local cost of construction and CIP
increase since 2016 when the RWC
technical memorandum wes wr¡tten.
Sec. 38.540.050. - Number of parking spaces required.A. The following minimum number of o motor vehicles and bicyclesmust be provìded and maintained by for and during the life of the-respectiv'e uses hereinafter set forth. arking results in a fraction ofa pärking space being required, the fractional space is not required to be provided.1. Residential uses.a.Table 38.540.050-1Minimum requirements. The number of spaces shown in Table 38.540.050-1 must beprovided subj'ect to the adjustments allowed in this subsection 1. The number of disabledparking stailé as required by Table 38.540.050-6 may be provided from the minimumnumbe-r of required pärking sialls. All site pla rs submitted for permit purposes must identifyparking spacé allocations.-Fees may be charged by the landowner for the use of requiredparking spaces.(1) One parking space for each 24 uninterrupted linear feet of available street frontageusable for on-street parking directly adjacent to a lot may be deducted from the totalparking spaces required for a development. The number of on-street spacesðalculated may not 'exceed the number of dwellings on the lot. The width of driveaccesses, desìgnated non-parking areas, vision triangles, and similar circumstancesmay not be conéidered to be available for the purpose of on-street parking space.!Dwelling TypesAccessory dwelling unitParking Spaces Required per Dwelling1.0.75 spaces per person of approved capacityiII f - - -LodginghouseEfficiency unit1.25 (1.0 in R-5)One-bedroom1.s (1.2s in R-5)Two-bedroom2 (L.7s in R-5)Three-bedroom3 (2.5 in R-s)Dwellings with more than three bedrooms4 (3 in R-s)Group homes and community residential facilities I O.ZS spaces per person of approved capacityBed and breakfast1- space/rental unitIIiIII1Manufactured home2
All types of dwellings within the B-3 districtG roup living /cooperative household/fraternity/sorority0.25 spaces per person of approved capacity 1'21 space per resident 1LTransitional and emergency housingr A facility may request to provide fewer parking spaces if the applicant provides evidence thatsome or all residents are prohibited from operating motor vehicles. Under no condition may lessthan two parking spaces be provided. lf the use of the facility is altered to serve a differentpopulation who may operate motor vehicles, then the additional required parking must beprovided before the change in use may occur.2 Additional services and facilities to serve non-residents must provide parking in accordancewith this Table 38.540.050-3.b. Adjustments to minimum requirements.(1) Affordable housing. When calculating the amount of required parking for affordablehousing, as defined in section 38.700.020 of this chapter, if the project is guaranteedfor use as affordable housing for a minimum period of 20 years and the use asaffordable housing is subject to long term monitoring to ensure compliance andcontinued use as affordable housing, required parking spaces must be calculatedbased on number of bedrooms outlined in Table 38.540.050-1, but may not exceedtwo spaces per unit.(2) Residential uses in mixed-use projects. ln order to utilize this section, the long termavailability of the non-residential parking spaces upon which the use of this sectionwas based must be ensured to the residents of the project. For the purpÖse of thissection a building is considered mixed-use if the non-residential portion of the buildingis at least one-quarter of the gross square feet not used for parking. Residences inmixed-use buildings may count on-street parking per subsection 1.a.(1) of this sectioneven if the area is subject to occupancy time limits. The use of this section does notpreclude the use of other sections of this chapter which may have the effect ofreducing the required amount of parking. When calculating the amount of requiredparking for residential uses within a mixed-use project the amount of parking may bereduced subject to Table 38.540.050-2.Table 38.540.050-2too%so%Equal to or greater than 3:1Greaterthan 1:1 but less than 3:1
(3) A car-sharing agreement meeting the criteria established by the communitydevelopment dñectır may be used toheet the required number of parking spaces. Touse this option the develópment must have more than five dwelling units. Each vehicleprovided tnrougn a car shäring agreement counts as required parking at a ratio of onededicated car-ıhare space to t¡vãstandard spaces, up to a maximum of 50 percent ofthe total required residential parking(4) :5"i:ïJ,i:;1ff'T^T;:"'3urpose of this subsection ameets the standards of andis approved by the transit provider, and service is provided on not less than an hourlyschedule a minimum of five days per week'2. Non-residentialuses.a. Mini in Tab must beprov ivision are notrequ umber ng stallsrequ litY Gui maY beprovided from the minimum number of required parking stalls. Accessible spaces counttowards satisfying minimum parking requirements. All site plans submitted for permitpurposes musi iOäntify parking spaðe aliocations. When a use is not included in Table38.540.050-2, the ¡.evie* autñoriiy will determine the appropriate classification for thepurpose of required Parking.b. Maximum parking. Provision of parking spaces in excess of 125 percent of the minimumnumber of spaceð required for the net floor area in this subsection 2 is not permitted.Table 38.540.050-31 space per 200 square feet of indoor floor area; plus 1 space per 20outdoor vehicle disPlaY sPacesAutomobile salesAutomobile service and / orrepair station2 spaces per service stall, but no less than 4 spaces2 spaces per stall not including washing or drying spacesSelf-serviceAutomaticdrive-through3 spaces or 1 for each employee on maximum shift; plus stack¡ng spaceAutomobile washingestablishmentBank, financia I institutions1 space per 300 square feet offloor area
ChurchCommunity or recreationcenterCommunity residentia I facilitywith more than 9 residents orage restr¡cted housingHealth and exerciseestablishmentDay care centers1 space per six persons of maximum occupancy load (as identified in thelnternational Building Code) for main assembly hall, public assemblyareas and classroomsCommercialareaHospitalsGolf coursesFurniture stores over 20,000square feetRestaurants, bars, diningroomsMotels, HotelsManufacturing and industrialusesMedical and dental offices2 spaces per lane; plus 2 spaces per billiard table; plusBowling alley3 spaces per 1,000 square feet of floor area1 space per staff member plus 1 space per 15 children permitted1 space per 200 square feet offloor area; plus 3 spaces per courtl space per unit1 space per 200 square feet offloor areaL space per 1,000 square feet of floor area, plus 1 space per 2 employeeson maximum working shift4 spaces for each full-time equivalent doctor or dentist; plus 1 space foreach full-time equivalent employee1 space per bed.1 space per 200 square feet of main building floor area; plus 1 space forevery 2 practice tees in driving range; plus 4 spaces per each green in theplaying area1 space per each 400 square feet of floor area1 space per 60 square feet of indoor public serving area; plus 1 space per120 square feet of outdoor (patio) area1.1 spaces per each guest room; plus 1 space per employee on maximumshift; plus spaces for accessory uses as follows:
Nursing homes, rest homesi or similar usesOffices (except medical anddental)Outdoor sales (plantnursèries, building materia ls,equipment rental and similar)Restaurants, cafes, bars andsimilar usesPublic assembly areasSales sites; model homesRetail store and serviceestablishmentsElementa ry and/or juniorhighSchoolsTheater, auditorium or similarBusiness or similar schoolSenior highWarehousing, storage or4 spaces; plus 1 space for each 3 beds; plus 1 space for each employeeon maximum shiftL space for each 5 seats based upon design capacity, except that totaloff-street parking for public assembly may be reduced by L space forevery 4 guest rooms1 space per 500 square feet of sales and/or display area. The size of thesales and/or display area will be determined on a case-by-case basis.1 space per 250 square feet offloor area1 space per 250 square fedt of model floor areas; plus 1 space peremployee1 space per 300 square feet offloor area1 space per 50 square feet of indoor public serving area; plus 1 space per100 square feet of outdoor (patio) area1.5 spaces for each classroom, library, lecture hall and cafeteria; plus 1space for each 3 fixed seats in the area of public assembly, or 1 space foreach 25 square feet of area available for public assembly if fixed seatsare not provided1 space per 1,000 square feet offloor area devoted to storage ofgoods;1 space per 4 seats based upon place of assembly design capacity1 space for each 1.5 students1.5 spaces for each classroom or lecture hall; plus 1 space per each 5students; plus 1 space for each nonteaching employee; plus 1 space peieach 3 fixed seats in the area of public assembly, or 1 space per 25square feet of area available for public assembly if fixed seats are notprovided
handling of bulk goodsplus appropriate spaces to support accessory offìce or retail salesfacilities at 1 space per 350 square feet of floor areaAdjustments to minimum requirements. To implement the city's adopted growth policy,adjustment of parking requirements within certain areas of the city is desired. Use of thisseôtion may not be considered as joint use of parking or off-site parking regulated bysections 38:540.060 and 38.540.070, nor does the use of this section preclude the use ofother sections of this chapter which may have the effect of reducing the required amount ofon-site parking. More than one adjustment may apply. Multiple adjustments are addedtogethei to móOity the minimum required parking from Table 38.540.050-3 in a singleoperation. Multiple adjustments are not applied sequentially(1) Neighborhood commercial. Within the B-1 and R-O zoning districts implementing asmall scale Community Commercial Mixed Use growth policy designation or the B-3zoning district, the parking requirements for non-residential uses may be reduced.Table 38.540.050-4(2) Gommunity commercial and residential emphasis mixed use. Within zoning districtslying within a commercial node, as defined in section 38.700.040 of this chapter, andt-ne neUU district the parking requirements for non-residential uses may be reduced.Table 38.540.050-5c.RestaurantRetailAll othersOffice30 percent20 percent50 percent40 percentRestaurantRetail30 percent20 percent
OfficeL0 percentAll others1-0 percent(3) Transit availability. Required parking may be reduced by ten percent incircumstances where the development is within 800 feet of a developed and servicedtransit stop. For the purpose of this subsection a transit stop is eligible when it haspublicly available cover fiom weather approved by the transit provider to be equivalentto a transit shelter, and service is provided on not less than an hourly schedule aminimum of five days Per week.(4) Structured parking. An additional 15 percent reduction may be taken when the site iswithin 800 feet of ã parking structure of at least 200 spaces, which is available to thegeneral public, and for which a fee for parking is charged.(5) The first 3,000 gross square feet of a non-residential building within th_e_ B-3.district oradjacent to deðignated storefront block frontage per section 38.500.010 is notincluded in the calculation of required parking.(6) Property owners' have the option of requesting the reduction of up to ten percent ofthe required parking spaces for non-residential uses if:a. ln addition to the minimum otherwise required by this chapter, two covered bicycle parkingspaces are provided for each automobile space not provided; andb. For each ten or fraction of ten automobile parking stalls reduced, a non-residential shower,changing area, and five clothing lockers are provided on-site.Exceptions to these parking requirements. Because some situations (i.e., existing lots whichhave no landscaping,'irregular lois, lots with topographic difficulties, etc.) would benefit from analternative to the requiredhaximum parking areaè; because the community's appearance couldbenefit from additional landscaping, streetscaping and sculptural elements; and becauseparking exceptions and/or landscaping would encourage development within existing cityboundãr¡es; the following alternatives may be permitted. These alternatives may be proposedby the developer for rev-iew by the ADR staff. Such proposals may be approved based on adâtermination that such alterñatives meet the following requirements and will not create acongested on-street parking situation in the vicinity of the proposal:a. Landscaping in lieu of parking. Except in the B-3 district, property owners' have the optionof reque'st¡ñg the delelion ol up to five the requiredparking spacãs, whichever is less, if 350 streetscapingis ¡nstãlle¿ on the property for each spac e the amountof landscaping that w'oulci have been required with full parking, but is in addition to suchlandscapinþ. Íhis option must be approved by the ADR staff. These improvements mustbe placed iñ the public right-of-way or setbacks directly facing the right-of-way.Where all or Part ofin the B-3 District,either through ownership or lease of the necessary land, the petitioner may satisfy theparking reqúirements by providing an equivalent cash-in-lieu payment according to thefollowing provisions:(1) No building permit must be issued, nor must any use of property be initiated, unless asatisfactory- cash-in-lieu payment is received by the department of administrativeservlces;IIIIII3
(2) The parking commission must review and consider all requests for cash-in-lieupayments añd furnish a written and dated certificate, signed by the parkingcommission chair, authorizing cash-in-lieu payments. A copy of this certificate must bêpresented to the chief buildiñg otficial and community development director before abuilding permit is issued or the use instituted;(3) For each required parking space not provided, payment must be made to the cityadministrative services department as specified by standard payment requirementsestablished by the parking commission;(4) All real property assessed by special improvement district (SlD) No. 565, or othersimilarly adopted improvement districts designed to provide additional parking spaceswithin t-he B-3 district, will not be required to provide additional parking spaces beyondthose required at the time of the SID adoption, provided the use of the real propertyand improvements remains unchanged from the initial assessments of SID No. 565,or other similady adopted improvement districts;(a) ln the event that a new use or an expansion is initiated on any portion of realproperty or improvements are made subsequent to the assessments for SID No.565 or other similarly adopted improvement districts, then parking spacerequirements must be satisfied prior to initiation of those new or expanded uses'4. Bicycle parking required. All site development, exclusive of those qualifying for sketch planreviêw per division 38.230 of this chapter, must provide bicycle parking facilities toaccommodate bicycle-riding residents and/or employees and customers of the proposeddevelopment. The number of Oicycte parking spaces must be at least ten percent of the numberof automobile parking stalls required by Tables 38.540.050-1 and 38.540.050-3 before the useof any special exception or modification, but must in no case be less than two.a. Bicycle parking facilities must comply with standards in the city's long range transportationplan.b. Required bicycle paifing must be provided in a safe, accessible and convenient location.Directional signage must be installed when bicycle parking facilities are not readily visiblefrom the street, ðidewalk, or main building entrance. lnstallation of bicycle parking mustallow for adequate clearance for bicycles and their riders.c. Bicycle parking may be provided in a common area to serve multiple buildings. Thecommon area must be within 100 feet of each served building.d. Covered bicycle parking is encouraged.e. Bicycle parking is permitted in required front or rear setbacks. Covered parking may beintegrated with required weather protection features. Alternate designs will be consideredby the review authority provided the alternate design meets or exceeds the intent of thisstandard.6. B-2M district.a. Minimum requirements. The number of spaces shown in Table 38.25.040-6 shall beprovided subject to the adjustments and exceptions allowed in this subsection.b. Maximum parking. Provision of parking spaces in excess of the minimum number ofspaces required in Table 38.25.040-3 is not permitted.Table 38.540.050-6Minimum Bicycle Parking SPacesRequiredUseMinimum Parking Spaces Required
ResidentialCommercialRestaurant (stand-alone)Hotels, MotelsArts and/or EntertainmentCenterManufacturing1 per unit1 per unit2 per 5,000 square feet of grossfloor area2 per 5,000 square feet ofgrossfloor areaAdjustments to minimum requirements. No reductions in required parking spacgs- 1-ay betaÉen for any development ùithin the B-2M zoning district, except pursuant to 38.25.050'Joint use of parking facilities.Requirements within the Midtown Urban Renewal District in the B-2M zoning district' Theminimum parking requirements of this section do not apply within the Midtown UrbanRenewal District the boundary of which is described in the Midtown Urban Renewal Planadopted pursuant to Ordinante 1925 and incorporated herein. All other requirements ofthis'sectiän, including bicycle parking, maximum parking and standards when parking isprovided, are applicable.Off-site parking. Any off-site parking used to meet the requirements of this chapter foroevetoprlient in- the 'g-ztr¡ zoning disirict must comply with 38.25.060, except that off-siteparkin! for multiple household dúellings may not be located more than 1,000 feet from anycommonly used entrance of the principle use served.(Prior UDC, $ 33.25.040; Ord. No. 1997 , $ 4, 3-19-2018)ce5 per 1,000 square feet ofgrossfloor area2 per 1,000 square feet of grossfloor area5 per 1,000 square feet of grossfloor area0.8 per guest room2 per 1,000 square feet ofgrossfloor area1 per 1,000 square feet of grossfloor area5 per 1,000 square feet of grossfloor area5 per 1,000 square feet ofgrossfloor area
RICK WILLIAMS CONSULTINGParking I TrânspoltationPO Box 12546Portland, OR 97212Phone: (503) 459-7638E-mail:MEMORANDUMTO:Thomas Thorpe, City of BozemanFROM:Rick Williams, RWCOwen Ronchelli, RWCPete Collins, RWCDATE:December 15, 2015 (v.2)RE:Downtown Bozeman - Comprehensive Parking StudyTask 3: StrategicUse of Cash-in-Lieu as a Source of Funding for Public ParkingI. BACKGROUNDParking standards in city codes often require that each land use provide parking on-site, or limit the useof parking provided to a specifìc "accessory" use. This can limit density, increase development costs,challenge small sites, and discourage shared use parking. A common solution to this problem is allowingdevelopers to pay fees into a municipal parking fund in /ieu of providing the required parking on-site.The fees are then used to provide centralized public parking in place of on-site parking for individualproperties, By consolidating parking in centralized public lots or structures and offering developers analternative to providing parking on-site, a cash-in-lieu system can encourage in-fill development andredevelopment in existing downtowns, support land use intensifìcation, and reduce the overall amountof built parking through more efficient use of the supply.ln the 1970's the City of Bozeman implemented a Special lmprovement District (SlD) for development inthe downtown. That SID was based on very suburban minimum parking requirements in the code atthat time. The current parking requirements for Bozeman's cash-in-lieu program within the B-3 Districtare less and result in a large credit for most projects that minimizes the number of spaces to be provided(see: 38,25.040 4.3.8 14). This means that unless the project(s) are very large they never need toprovide parking and there will be a tiny amount of .ClL funds (assessed at a rate of 55,000 per stall),never enough to build a garage.The fact that Bozeman offers cash-in-lieu is progressive; however, current parking requirements,program format and fee may not provide the funding necessary to develop new parking and support theintensification of uses. ln addition, the current code is not clear on the strategic intent for use ofthe feescollected, the expectation of an access entitlement that may or may not be granted to fee payers, or aconsistent and equitable methodology for calculating fees'
Downtown Bozemon Stroteg¡c lJse of Cosh-in-LieuTo this end, the City is interested in evaluating its existing cash-in-lieu option, particularly in its use as areasonable funding source'for new public parking facilities. The discussion herein will provide aframework for such an evaluation and for potential revisions to Bozeman's existing cash-in-lieu program.The discussion will also be informed by a reevaluation of the City's current minimum parkingrequirements, which will need to be strategically integrated into whatever fee structure is developed.II. FRAMEWORK APPROACH - PARKING CASH-IN-LIEUGrowth in parking demand is becoming an issue in Bozeman. lncreased traffic related to newdevelopment and visitors attracted to the City's vibrant downtown may create constraints in the existingparking supply. Surface parking lots will become attractive development sites, resulting in potential lossof parking as new development and redevelopment projectsprogress. The cost of providing parking, especially structuredparking, can adversely impact the financial feasibility of newdevelopment. lnadequate parking places burdens on existingdevelopment and is a disincentive for new development. Asdowntown redevelops, the City must find the right balancebetween its role and the role of the private sector ¡n financingand building parking to support new growth,Key challenges for Bozeman in this process are:Continuing to attract new development to thedowntown.Supporting developments constraihed by the cost ofparking development while reducing reliance on andimpact of surface parking areas.Recognizing site constraints, incl udi ng historicpreservation that may limit the ability to incorporate parking.¡ Removing barriers to new development or redevelopment of existing buildings.o Maintaining and encouraging an urban form for new development that is consistent with thedowntown vision.. Appropriately recognizing previous investments in parking both public and private.Cash-in-lieu allows a new or intensifìed development to buy out of a requirement to provide a minimumnumber of parking stalls. Fees paid by the developer are used by the City to fund development of newpublic parking facilities.aaRICK \,YILLIAHS CONSULTINGPrr krng & Tr anspor t¡tronThis memorondum ossuries theCity intends to cont¡nue tÒ PIÙYo prominent role in owning,monoþi ng ond (ultimotetY)growing its ofi-street Park¡ngsu p ply. Therefore, exo mi ningond refining the current cosh'in-lieu progrom suppotts the C¡tY'sefiîorts to creote o morestr ote gî cø I ly coordi nate dporking monagement PIon forthe downtown.AppendixB-Page2
Downtown Bozemon Stroteg¡c lJse of Cosh-in-LieuCash-in-lieu is an option to providing parking.l A strong cash-in-lieu program can be a powerful tool for achieving efficientdevelopment through the provision of common, centralizedand/or district parking facilities. Giving developers the option toreduce or eliminate their on-site parking requirement can resultin better-designed and more productive developments andstreetscapes.Offering developers the option to pay a cash-in-lieu for all or aportion of their minimum parking requirement may be anattractive alternative for addressing the challenges outlinedabove, and provide a means for building structured parking inthe future. A cash-in-lieu rate is generally set at a level less thanthe cost for a developer to provide parking themselves. The rate can also be variable to reflect specificbenefits of use between projects; varied (for instance) between those that use more or less parking inrelation to a minimum parking standard. Overall, a cash-in-lieu option encourages developers toseriously consider downsizing their parking need, and to explore shared-use opportunities in reasonableproximity to their development site. When successfully structured, cash-in-lieu programs can reducedevelopment costs, making projects more feasible and providing a revenue source that the City caninvest in a consolidated parking development plan.lmplementing a cash-in-lieu program commits the City to playing a key role in developing and managingoff-street parking, a role that Bozeman already fìlls. Ihrs memorondum ossumes the City intends tocontinue ptoying o prominent role in owning, monoging, ond ultimotely growing ¡ts oÍÍ-street porkingsuppty. Exomining and refining the current cash-in-lieu progrom supports the City's efforts to create amore strategicolly coordinoted porking manogement plon for the downtown.'This will entail activeplanning for future parking, and identifyin g odditiono! sources of funding to supplement ond leveragefunds derived from cosh-in-lieu.31A private development should not be discouraged from providing parking without City assistance, within therequirements of the code.2 Many cities do not have cash-inlieu or similar programs related to public off-street parking, choosing to put theresponsibility for off-street parking growth completely on the private sector.3 Few cash-in-lieu programs around the country cover the full cost of parking development. Most c¡t¡es couplecash-in-lieu with other strateg¡cally identified revenue sources to create a package offunds that can fully supportnew parking development. These include fees generated from parking, bonds, infrastructure financing districts'parking benefits districts, etc.RICK WILL¡AI.IS CONSULTINGPar king & Transpor!a ttonFew cosh-i n-tieu prog romsoround the country cover thefull cost of.parkingdevelopment. Most cit¡escouple cosh-inlieu with otherstrate gi col ly i d e ntif i ed reve n uesources to ctelte o Pockage offunds thot cøn fallY suPPortn ew p d rkí n g dev el o P m e nt.AppendixB-Poge3
Downtown Bozemon Stroteg¡c Use of Cosh-in-LieuIII. PROGRAfvi ELEfVIEh'T5As previously stated, the waiving of minimum requirements in a private development through a cash-in-lieu option requires a firm commitment by the City to provide public parking in Downtown.o Clearexpectations regarding the City's use of funds raised by cash-in-lieu payments should be developed.For Bozeman, there are several considerations in designing and refining the existing cash-in-lieu optionBelow are several program elements that should be considered in refining the current cash-in-lieuoption.A. Use of FundsBarring the existence of immediate funds to construct a parking facility in advance of a cash-in-lieuoption, it is doubtful that the City could commit to a òtructured facility in the initial stages of a morerobust cash-in-lieu program. As such, payments will need to be collected and allocated to a dedicatedparking fund, configured to provide for a future parking garage when coupled with other fundingsources (e.g., bonding, Local lmprovement Districts, urban renewal). sThe fund should be flexible enough to allow the City toaDevelop new parking structuresPurchase or lease underutilized private parking in theDowntown for conveision to public accessPartner with the private sector to add public parking innew developmentsB. Level of ExpectationCash-in-lieu fees are generally calibrated to the level ofcommitment the City makes to the payer for access to an off-site parking supply: an "entitlemenf' to parking access. Thelower the paye/s expectation of entitlement as a result of thefee, the lower the fee assessed. Conversely, the higher theexpectat¡on of entitlement to parking, the higher the fee.Currently, 38.25.040 does not meet this standard. The City willneed to determine its comfort level in terms of expectationwhich will then dictate the assessed fee. Creation of clearexpectations regarding its obligations for funds raised by cash-a This would not disregard the viability of a shared use agreement credit if it could be successfully developed andadministered.t Bozeman may already have such a fund established for its existing program. The consultant had not verified thisby the time of this writ¡ng.RICK \üILLIAHS CONSULTINGP;r i:rn; å Tr r rìsl'or tlr,onThe City will need to creotecleor expectot¡ons regording itsobligotions for funds roised bycdsh-i nJIe u poyme nts. Theseobligotions need to bedeveloped ond odoptedconcurrent w¡th whotever fee isimplemented. The lower theexpectotion for the poyee thotporking is being provided os oresult of the fee the lower thefee ossessed. Conversely, thehigher the expeclotion thot thepoyee is entitled to porking, thehigher the Jee ossessed.AppendixB-Poge4
Downtown Bozemon Stroteg¡c Use of Cosh-in-Lieuin-lieu payments will result is a more efficient cash-in-lieu parking program. These obligations need to bedeveloped and adopted concurrent with whatever fee is implemented. The present fee charged ofS5,OOO per stall represents approximately L7% ol lhe cost of a constructed parking space and acorrespondingly low level of commitment.Several key questions about cash-in-lieu are outlined below. The consultant has provided single answersto the questions, but only for context as to how they might be addressed. lt is recommended that thesequestions form the basis of future stakeholder discussions regarding the role of cash-in-lieu within thedowntown parking management plan. Consensus answers derived from this process would then informa revised cash-in-lieu program and set of specific expectations:a. What type of access entitlement is a development assured in return for payment of a cash-in-lieu fee based on an established minimum parking requirement? Entitlements do not implyownership, but long-term rights to parking. These access rights can be attached to the propertytitle and carried with it over time, including transfer in a sale. Because the cash-in-lieu fee isassessed at a rate less than the cost of construction, those entitled to parking agree to pay thecurrent posted rates for parking in facilities built with cash-in-lieu in the form of monthly passes,daily and hourly rates. These rates can be transferred to tenants, employees, and customers.b. ls a development ent¡tled to fult access to a specific parking facility, or cân access be spreadacross multiple locations? The payment of the cash-in-lieu to the City would allow adevelopment to take advantage of all available parking under the City's control, but would notguerantee parking at any specific facility. This can be an important element when cities begin toassemble cash-in-lieu payments in advance of building a new parking facility; using surplus inexisti ng supplies to accommodate cash-in-lieu entitlements.c. Are there proximity ent¡tlements that assure access within a specifìed distance of adevelopment site? The City would ensure that development of new parking funded with cash-in-lieu revenues is located within the Downtown Parking Management area. The areaboundaries and, in turn, the reasonable proximity to the development would be determined bythe City. Thè current code limits off-site parking to a 1,OOO foot distance fiust under /¿ mile or aabout three blocks downtown.d. Can access entitlements be changed over time? For instance, could parking be moved fromone location to another over time as development patterns evolve? Yes. The City would retainthe right to redevelop parking fac¡l¡ties and to provide entitlement parking in different locationswithin the downtown over time. This type of flexibility is important, as was referenced in (b)above. The City may need to create temporary or interim s¡tes as new structures are built.Surpluses within the parking system will need to be actively monitored so that entitlements maybe allocated aciordingly.RICK WILLIAHS CONSULTINGPa rking & TransportatronAppendixB-Pøge5
Downtown Bozemon Strotegic Use of Cosh-in-Lieue.What if the City is collecting cash-in-lieu payments, but cannot concurrently build a parkingfacility? Cash-in-lieu could be used to build interim surface lots to meet entitlements until anew supply (e.g., a garage) is both needed and feasible. lf the City cannot meet near-term cash-in-lieu demand requirements, the program can be suspended to ensure that exist¡ng/paidentitlements can be accommodated.f. Can cash-in-lieu payments be used by the C¡ty to fund other forms of access (e.g., transit orbike/walk options)? ln some cities, that is the case. However, given the costs necessary todevelop structured parking, it is not anticipated that cash-in-lieu payments, as currentlyconfigured, would allow the City of Bozeman to fund other forms of access'g. Are there any other charges associated with cash-in-lieu to those w¡th access ent¡tlements?There could be. Given that most cash-in-lieu entitlements are assessed et a rate less than thecost of actually developing off-street supply, agreements formalizing the entitlements wouldallow the City to charge the then-posted monthly, daily and hourly rates at public fac¡lities ¡n thedowntown. As demand for parking increases, monthly and daily rates would also increase. Suchcharges are necessary to cover, at minimum, costs of maintenance, operation, andadministration of the public facilities, as well as debt service.h. What happens if a development does not fully utilize its access entitlements? Given thataccess is an entitlement and not a form of ownership, the City (or owner of the parking facility)has the right to sell underutilized parking to the general public on a month-to-month basis. Thisensures that the City can maximize parking on weekdays, weekends, and evenings. Accessentitlements give priority to those with entitlements, but do not prevent the City fromcapitalizing on unused space. Management of cash-in-lieu entitlements will require accurate andongoing data on occupancy and utilization of parking.C. Rate and FormatThe appropriate rate for a cash-in-lieu varies by city and is influenced by the type of parking provided(surface versus structure), costs of land and development in specifìc areas, and expectations associatedwith the level of entitlement granted w¡th payment of the fee. in order to make an informedrecommendation, the consultant team reviewed cash-in-lieu programs in jurisdictions throughout thecountry.The City of Tualatin, Oregon assesses a cash-in-lieu of 53,500 per stall required. The City of Bend,Oregon's cash-in-lieu is $26,000.6 A 2OO8 study of 27 cities by Carl Walker Consulting establ¡shed a rangeof fees between S2,OOO and 527,52O, with an average of S11,500 per stall. The formula for determining6 Tualatin's original fee-in-lieu was calibrated at approximately 50% of the cost of developing surfoce porking andBend's fee was calibrated at approximately 67% of the cost of structured porking.RICK WILLIAI.IS CONSULTINGParking & TransportationAppendixB-Page6
Downtown Bozemon Strotegic lJse of Cosh-in-Lieurates in the sampled cities was generally based on a wide variety of factors, both parking-related andnon-parking-related; as such, the literature offers no clear standard on which to draw in Bozeman.It is recommended that the City of Bozeman consider restructuring its current cash-in-lieu programaccordingly:t. The current unit cost of garage development in the Pacific Northwest is approximately 528,000to 535,000 per stall, including land, design, and construction. Variation in the range is mosttypically influenced by land cost. This range offers a good starting point for a cash-in-lieu ratediscussion, which would be refined with further reseorch on the octuol cost of developingporking in Bozemon versus the average used here for discussion purposes.2. Once a unit cost is established for parking in Bozeman, base the cost of cash-in-lieu at a'rate lessthan this cost -e.g., 60% (see Section lV. A Sample Methodology for Rate Sett¡ng, below).7 Asdescribed earlier, the lower cost is intended to encourage developers to downsize their on-siteparking and explore the shared-use opportunity that would exist within a consolidated publicparking supply, The cash-in-lieu rate should provide a reasonable funding base from which theCity can then develop a full funding package that would likely leverage other funding sources(i.e., user fees, bonding, local improvement district, etc').3. Establish a periodic review of the cash-in-lieu program, allowing the City to evaluate (a) thenumber of developments exercising the options, (b) factors contributing to developers' use ornon-use ofthe program, and (c) adjustments to the rate as necessary based on (a) and (b). Theperiodic review would also evaluate the capacity of the City to absorb new cash-in-lieuentitlements.4. Adjust the cash-in-lieu payment annually based on the Engineers News Record lndex (ENRI). TheENRI is a respected standard within the industry and would provide an objective index foradjusting City fees and charges associated with a cash-in-lieu program'85. Recognize that other funding sources will be necessary for successful development of publicparking facilities, particularly structured facilities. These could include public facility districts,business improvement districts, local improvement districts, general fund allocations, and stateand local grants.Assuming the City intends to create a more effìcient downtown, one capable of accommodating theintensification of land uses, continuing to offer a cash-in-lieu opt¡on is reasonable and strategic. This ist This figure was chosen only for purposes of discussion. lt is hoped that this memorandum is used as a basis forstructuring work sessions and/or in-depth discussions with stakeholders to develop a rate format that is bothappropriate and feasible for Bozeman.t The City of Bozeman currently uses the ENRI for inflation adjustments for impact fees and this source has beenaccepted by the development community. There are other construction indexes as well, including the Rider LevettBucknall quarterly construction cost index and the Turner Construction index.RIGK \ryILLIAHS CONSULTINGl¡¡ k rng & Tr r n gfror tr trc¡rìAppendixB-Poge7
Downtown Bozemon Strotegic Use of Cosh-ín-Lieuunderscored by the financial challenges associated with developing structured parking facil¡ties. lt isrecommended that the City reevaluate and refine its current cash-in-lieu program so that it can besuccessfully applied as new development and intensified uses emerge. That process should take placewithin the context of the elements outlined above.IV. A SAMPLE METHODOLOGY FOR RATE SETTINGAs stated above, a review of other jurisdictions did not provide a clear methodology for determiningcash-in-lieu rates. Generally, the rate bears some relationship to the full cost of construct¡ng a surface orgarage parking facility. Most jurisdictions set rates at less than the full cost of construction. The feeshould be an incentive for developers to work with the City to consolidate the parking supply in d¡strictfacilities. Cash-in-lieu funds are then complemented by other sources to construct the consolidatedsupply.For Bozeman, new cash-in-lieu payments would be allocated toward future parking garagedevelopment, as full funding for a garage is likely not in place at this time. Future cash-in-lieu fees wouldbe calibrated to the full cost of constructing a garage in downtown Bozeman, a key change to thecurrent program.'Table I offers a potential methodology for deriving a cash-in-lieu rate. The discussion that followsprovides additional information and data sources. Any methodology would need to be regularly revisedand data sources refreshed; as stated in the discussion of Rate and Format above.INOTE: The cost ossumptions used in Tobte 7 are considered reasonable bosed on the consulting teom'sexperience in Pocific Northwest porking gorage developments. Finol figures should be informed byodditionot discussion w¡th stakehotders ond reseorch in the octuol Bozemon mørket. The purpose of thisexercise is to provide o reolistic ond usable fromework for struduring a cosh-in-lieu opprooch ondfocilitoti ng discussion.Je The finalfee rate would be completed as per section lll, c, Rate and Format above.RICK WILLIAñS CoNSULTINGPar krng & TransportationAppendix B- Poge 8
Downtown Bozemon Stroteg¡c Use of Cosh-in-LieuTable 1Sample Model: Cash-in-lieu Rate MethodologyA. Square feet per stollThe total square feet per structured parking stall varies greatly, ranging from as little as 300 SF per stallup to 400 SF per stall.ll ln general, 350 SF per stall is a reasonable standard used in most pr¡vatedevelopment proforma, which accounts for the parking stalls, two-way drive aisles, and area forpedestrian ways and plazas, and is consistent with efficient and attractive facilities constructed inmedium-sized cities.12 This number is reflected in column A in Table 1 above.B. Hqrd cost of constructionHard costs are direct costs incurred by a specific construction project. For a structured parking facility,this would include site preparalion, including labor, materials, and equipment'Several West Coast sources were evaluated to determine the hard cost of constructing a garage parkingstall in an urban setting like Bozeman. A 2010 study in Ventura, California estimated hard constructioncosts for a 283-stall downtown parking garage at 523,288 per stall (567'25 per foot).l3 A studyconducted for Providence Health Group in Portland, Oregon estimated the average hard cost of above-10 As stated above, the fìnal fee would be adjusted periodically (preferably annually) based on an adopted index ofconstruction costs.1l^5eLavoutConsiderations.htp as well as VTPI (2008), Porking Cost, Pr¡cing ond Revenue Cølculotor, Victoria TransportPolicy lnstitute (www.vtpi.org); at www.vtpi.orglpa rking.xls.t2-5eesta I ls/a See Rick Williams Consulting, Review/Assessment of Block 35 Associotes Porking Structure Proposol, January 3,2071.RrcK wtLLtAHs CoNSULT|NGP¡¡ l:¡nE I Tratspor(.rr onA3s0Square Feet PerStall3s0$67.00Hard Cost ofConstruction perSquare Foots23,4s0Bcs18.76Soft çost ofConstructlon pefSquâre FootS6,s66DN/ACost of tand PerStall per SquareFootVaries by size oflot/mix of usesand size ofgarages3o,o16Es8s.76Total CqsttoBuild perSquarê Foottwlqland)Fss1.46Fee-in-lieu@60% of TotâlCost þer $quare, FgotS18,orotoAppendixB-Poge9
Downtown Bozemon Strategic Use of Cosh-in-Lieugrade parking construction at 524,661 per stall (or 571.50 per square foot) for a 384 stall garage.14 A2015 study by IPD Consulting and Rick Williams Consulting for Santa Monica, CA estimated hard costsfor a 500 stall garage (with retail) at522,785 per stall (565.10 per foot). Walker Parking Consultantsestimated hard costs for development of a s0o-stall above-grade parking garage in Venice, California tobe 518,010 per stall (SOS.oo per foot).lsFor purposes of this exercise, the consultant used a conservative estimate of 567 per foot hard cost forparking structure development. This is reflected in Column B in Table 1.C. Soft costs relotedto construct¡onSoft costs are those incurred in addition to direct construction costs. ltems generally categorized as softcosts include design and design fees, legal fees, permits, engineering, licensing fees, toxic report fees,and plan check fees. A reliable and widely used source for estimating soft costs is RSMeans and ReedConstruction Data. These databases serve as national resources for tracking construction costs.According to a recent search of Reed Construction Data, soft costs for parking construction generally runat about 3L% of hard costs.16 A 2015 parking project in Santa Monica, California, in which Rick WilliamsConsulting was involved, calculated soft costs of 25%o, as developed by IPD Consulting, an internationalengineering and project management firm.For purposes of a base methodology for Bozeman, the consultant used a soft cost calculation of 28% ofhard costs; an average of multiple data sources that includes national sources (e.g., RSMeans) and theexperience of the consultant team. This is reflected in Column C in Table 1.D. Cost of londLand costs are generally difficult to establ¡sh for a model such as this, and can be "spread" differentlyinto a development depending on the mix of land uses that might be associated with a parking garage(i.e., how much of total land cost is allocated to the overall per stall cost in a development proforma).Column D, Table 1, is left open in this model, assuming that if such a model were used by Bozeman, realcost information would be developed specific to a site and applied accordingly in determining areasonable cash-in-lieu rate.rasee J E Dunn, Hard Cost Estimate Sheet for POPlslnformation provided by Walker Parking Consultants. MSU is also currently in construction for a new parkinggarage. The MSU project could provide a current and locally relevant data point to be included in any finalcalculation of construction costs for purposes of establishing a revised cash-in-lieu fee.16 htto://www.reedconstructiondata.com.RrcK WILLIAñS CoNSULTINGPar king & TransportationAppendixB-Poge70
Downtown Bozemon Strategic Use of Cosh-in-LieuE. Total costto buildBased on the methodology in Table 1, the total average cost of a structured, above-grade parking stall inBozeman would be $30,016 per stall or S85.76 per square foot per stall, assuming 350 square feet perstall built. This is reflected in Column E in Table 1 above. Again, this does not assume the cost of land'F. Cash-in-lieu rotelf the actual construction cost of a stall is 530,016 (Column E), the total cost would be factored by apredetermined percentage (in this case 60%) to derive an in-lieu fee rate of $18,010, or 551.46 per foot(Column F).Bozeman already provides a cash-in-lieu option for new development and/or intensification of landuses. The program needs to be reevaluated to ensure that it offers developers a reasonable option toconsider, and provides a sound financial basis for the City to build new parking facilities. The fee must becalculated using a credible market-based methodology that can be regularly updated as economics andparking development costs evolve. The rate must be calibrated to reasonable expectat¡ons for accessthat the payer can rely on. Finally, the fee must be strategically coordinated with other funding sourcesto ensure that the City has a financially feasible system for offering the cash-in-lieu option as adevelopment incentive, and can meet any demand for parking by those who pay the fee.V. SUMMARYThe authors of this memorandum have endeavored to provide context for and key elements of a cash-in-lieu program as an option for managing and growing downtown Bozeman's parking supply. Thisinformation is intended to facil¡tate additional discussion and questions from staff and stakeholders onthe continuing role of cash-in-lieu, and how it is integrated into the downtown's parking and economicdevelopment planning. Cost estimates are only a means to focus discussion and create a platform forexamining, refining, and clarifoing Bozemen's current program. The consultant team hopes theinformation provided helps to increase understanding of cash-in-lieu and stimulate discussion on theappropriate role for such a program in the larger context of a strategic downtown parking managementplan.RICK WILL¡AMS CoNSULTINGParking & TransportatronAppendixB-Page77