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HomeMy WebLinkAbout07-15-19 City Commission Packet Materials - C5. Approve the Final Plat for Willow Springs Subdivision Commission Memorandum REPORT TO: Mayor and City Commission FROM: Tim Cooper, Assistant City Attorney Chris Saunders, Community Development Manager SUBJECT: Approve the Final Plat for Willow Springs Subdivision contingent on receipt by the City of Bozeman of an executed park maintenance cost share agreement with the Baxter Square Home Owners Association; and authorize the Director of Public Works to execute the same on behalf of the City of Bozeman, and the Director of Community Development to execute the improvements agreements on behalf of the City of Bozeman, and authorize the City Manager to sign the public access easement on behalf of the City, Application 19229. MEETING DATE: July 15, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: That the City Commission approve the Final Plat for Willow Springs Subdivision contingent on receipt by the City of Bozeman of an executed park maintenance cost share agreement with the Baxter Square Home Owners Association; and authorize the Director of Public Works to execute the same on behalf of the City of Bozeman, and the Director of Community Development to execute the improvements agreements on behalf of the City of Bozeman, and authorize the City Manager to sign the public access easements on behalf of the City. BACKGROUND: On February 26, 2018 the City Commission approved the subdivision 5-0. On March 19, 2018, the Bozeman City Commission approved the findings of fact for this subdivision, available at http://weblink.bozeman.net/WebLink8/0/doc/153412/Electronic.aspx. This subdivision was previously named Hoover Way Subdivision, application 17-117. There is no impediment to an applicant changing the name of a subdivision between preliminary and final plat. §76-3-611(1), MCA, provides that the City Commission shall approve the plat only if: (a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of this chapter and regulations adopted pursuant to this chapter; and (b) the county treasurer has certified that all real property taxes and special assessments assessed and levied on the land to be subdivided have been paid. 71 The County Treasurer has certified that all real property taxes and special assessments assessed and levied on the land to subdivide have been paid. Attached is a memorandum from Chris Saunders, stating the staff has concluded that all terms and conditions of the preliminary plat approval have been met. There are two improvement agreements associated with this final plat for sidewalks for individual lots in the amount of $33,115.43; and stormwater and landscaping in the amount of $96,350.10. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. FISCAL EFFECTS: Fiscal impacts are undetermined at this time, but will include increased property tax revenues from new development, along with increased costs to deliver municipal services to the property. Report compiled on: July 1, 2019 Attachments: Final Plat Public Access Easement Affordable housing plan (information only, no action) 72 Δ Δ BLOCKOPEN SPACE (SF)LOTS (SF)TOTAL (SF)73 t4-l0III.s^.!0IaI<+-!sPeiiIbfl'0uwI fIIt^.2i^t2ii9^ s^1sI^t{j iQ ^" ^I ^I s100Wtr^l^I<4-10I•s^IIcdIIffl^si§sIrt"'I0in^& "c.^ I•&iiuN0fflII•IIIIIsHIlit"ft ^sI&0sI1%pI 3IIu'1It^II.s^<u^^^^-s03^00s?(Ds30scda&1PL;00%dff'+-1(U0<L)J^&<%30cd0ws030tr>(Ds^ajsw.sc0cdu^T3IDT3^g^?u^0CM(7200<uudr~~&&02VI<DM!=!VS^ I00dH0C;s0^gm§s!=!.20su^(DNu0VtCQu<+^00c3s&.20302^sC/3g ^03^^2d<a00=3s%0)a<u0I ^cntlfl^!=!3 §•c00&0uuMVIcdI.VI1I^i1sIIun1.-s^^0sIIw^ s^ §I I& Sfls.1•GI^^tI ^I Ii §r ^11& ^11^ &ws &§ IIli^3It1Icnusg)t&.sI 's.I110^ss^"I^ ^^ 'sI^ss^i>^'T3I.y^i&1^ ^1 I^I1i-10t•^^ I0II ssItI iiiOrl:(^0sI2i^<4-10aI '^&I 1' III0 Wo3It Ir i i111(U-ff•-i=iI11I II II I's•^I s•as>^0t1IiH^sIs!c^0sMss(y3^11II §itM rt^2o Ii -s•B ^i §II^ '^2 -^^-abflIis&fls•t1.1FiI1^I^uu\IIir .i "sI5 I0o cyp< °swwi's^ §^ iU2IVIorfsII IsmuN2&11I I<4-1:itisIII74 sg0ffl<rl0'r^lJ<5^^^1.2IIl-ll0Icof-1^u<s^'s(0c•szn) 8>->s(flD0srt§'&SiasT3..sU3Fi0^z^(DfflCL,^G52•s0Is^92O^'o8^?.£-s(B£)s^&sc"£.s260<uIlls0'dn)sv^^^Eec ®sM-^zS5£^cSGC(UIll^<£0>.a]2s0^^.&pd<fiM55>.^MS3sGJ0)'fiirft3;0§a)rt<u^^'^X;11-1^•^(Ds^<4-i^1'^C3^'""llllllllll"'*S-1u^1 8 -t~^iT3s§-T8 s<1 ys•a&§<s^0(D^3ud^1.9>.^g1^^3s's^/J0<'U2orfsm<+10ur\ls&<g ^(N^0pl§^c-4cd^Jsdi^3us>>(U<u^cX)^+^<a's0snrt^urt0u0>0scd^Ill43^^^l-L1^0ffi<s^^1-1-1.6(Ut<-<yi0c^0<sgsu<•7cd(^•&^<^^^<uCiM0J=!xc^-1<u^0cn0Ms-f:>>^<^<u^cd0_ri!=!0cS-d^-3•t:.2iCS4-11-L|'T3c^.^(U%b^^u0VI^3?i-1^"wc>^u^^PLlM(L>Hi-1^!=!.2^ wx^\i0g>.<uC/2:§uuB's:.2>^^>>-1\>1.ssT3?^0!=!u '"1 <u'-s^-s0§ i»-1s6^^uPl75 MEMORANDUM TO: TIM COOPER, ASSISTANT CITY ATTORNEY ROBIN CROUGH, CITY CLERK FROM: CHRIS SAUNDERS, COMMUNITY DEVELOPMENT MANAGER SUBJECT: FINAL PLAT REVIEW FOR THE WILLOW SPRINGS MAJOR SUBDIVISION, PLANNING FILE NO. 19229 DATE: JUNE 17, 2019 C&H Engineering, on behalf of HUMAN RESOURCE DEVELOPMENT COUNCIL OF DISTRICT IX (Applicant), has made application to the City of Bozeman Department of Community Development for Final Plat review and approval for the Willow Springs a Major Subdivision, a 24 lot residential subdivision. The Commission approved the Finding of fact on March 19, 2018. The findings of fact and order are available at http://weblink.bozeman.net/WebLink8/0/doc/153412/Electronic.aspx. Two Improvement Agreements are required for the installation of internal sidewalks, stormwater, and landscaping. All other necessary infrastructure improvements are constructed. Based on the summary review provided below the City Engineering Department and Department of Community Development have reviewed the application against the conditions of preliminary plat approval; and as a result, find that the final plat application may be approved by the City Commission. Three (3) original mylars of the Final Plat, original Platting Certificate, improvement agreements, deed, and an easement are attached for your review. The Community Development staff respectfully requests that you prepare a City Attorney's Certificate using the attached original Platting Certificate as updated; approve the Certificates of Director of Public Works and Certificate of Completion "as to form". The final City signatures on the plat and improvements agreements will be obtained once the City Commission has approved the final plat. All but one of the conditions of preliminary plat approval, which are pertinent to this major subdivision and how they have been met are described in the submittal materials. An exception to 76 Page 2 of 2 this are that it was determined that subdivision improvements agreements are required for uninstalled sidewalks (33,115.43), stormwater facilities, and landscaping (96,350.10). We have the agreements in hand and the financial guarantee will be provided by irrevocable standby Letter of Credit. The LOCs appear to meet the require form. A copy is included with each IA. CONDITION 28 HAS NOT YET BEEN SATISFIED. Condition 28 requires a cost-sharing agreement with the Baxter Square HOA for park maintenance. A draft of the agreement is included with the final plat submittal. With the upcoming several weeks where the Commission is not meeting due to construction on the Commission room, I am suggesting that we place the final plat on the Consent agenda with a statement that the approval is being made contingent on City receipt of an executed maintenance cost share agreement. Please let me know if this is acceptable to you. All but the completed cost share agreement were received by June 17, 2019. As a fully complete application has not be received the 45 day action limit has not begun. Note: The Community Development Department and Engineering Departments have reviewed the final plat application against the preliminary plat cited code provisions and found compliance with these code requirements. The Engineering Department has reviewed and approved the “closure” of the final plat. The project is scheduled for consideration by the City Commission on June 24, 2019. All required materials have been uploaded to Agenda Manager. Please let me know if this will not work. Attachments: Three (3) Mylar Final Plats and One (1) Blackline Copy Applicant’s Written Narrative and Complete Submittal Original Platting Certificate Original Quit Claim deed to HOA for open spaces, Original public access easement Improvement Agreements (2) Letter of credit (2) cc: file 77 1 0269Willow Springs Way Affordable Housing Plan Development Name: Willow Springs Major Subdivision Project Location: Sartain Street and Hoover Way Legal Description: E1/2, W1/2, SW ¼, SW ¼, Section 35, T.1S, R5E, of PMM Current Zoning: R-3 Current Use: Vacant Community Plan Designation: Residential Property Owner and Applicant: Human Resources Development Council of District IX 32 S Tracy Ave., Bozeman, MT 59715 Contact: Heather Grenier, President/CEO 406-585-4840 hgrenier@hrdc9.org Introduction: HRDC seeks the use of affordable housing incentives for the Willow Springs Way development. The development is 100% affordable. The development will consist of 24 townhomes, with a mix of 2 and 3 bedroom homes provided. All 24 units will be affordable to families and individuals making 70% of the area median income. HRDC intends to place the subject property into their Community Land Trust in order to maintain the affordability of the units in perpetuity. HRDC has requested $20,000 per unit to act as a permanent subsidy that will remain with the home in perpetuity and require no subsidies from the City in the future. Because the units will be affordable in perpetuity, HRDC requests the City not record a non-cash subsidy on each unit as provided in the Affordable Housing Ordinance. Instead, HRDC requests the City rely on the covenants to meet the intent of the non-cash subsidy. As discussed further in this plan the requested one time grant from the City would result in the following. None of the 24 units would be eligible for City funded down payment assistance None of the homes would be eligible for impact fee reimbursement 2  None of the homes would require a non-cash subsidy lien at the time of closing 1. Number of affordable homes proposed in each affordable home category and number of market-rate homes Willow Springs Way townhomes Total number of homes for development 24 Total Number of market-rate homes 0 Total Number of affordable homes 24 *It is the developer’s intent to make these homes perpetually affordable by inclusion in a community land trust (CLT). 2. The number of bedrooms in each affordable home Willow Springs Way Subdivision Project- Home Type and bedroom mix of Lower-Priced Homes Studio and/or 1 bedroom homes 0 2 bedroom homes 10 3 bedroom homes 14 Total Units 24 3. Anticipated Pricing and deed restrictions; HRDC will follow the pricing requirements of the Neighborhood Stabilization Program (NSP), which requires that all homes be sold for the appraised value. As the home’s affordability will be preserved in perpetuity via a combination of restrictive covenants and a ground lease while the land will be held in a Community Land Trust (CLT), the home’s purchase price will only reflect the appraised value of the home itself, not the value of the lot and infrastructure improvements. NSP further allows for up to 50% of the home’s price to be subsidized via a deferred second mortgage. Through this combination of the CLT and project down-payment assistance, 100% of the homes in the development will be permanently affordable and necessitate buyers to take on mortgages far below the maximum prices outlined in the City’s affordable housing ordinance. An anticipated pricing and down-payment schedule is included below. All homes will have ground leases limiting appreciation utilizing a formula that allows for a reasonable return while preserving affordability in perpetuity and requiring no future subsidization. 3 4. Sample pricing schedule (for discussion purposes only – actual prices will be determined via appraisal) Appraised value: $220,000 Less site value: ($45,000) Appraised value of home and improvements: $175,000 = Sales price to the buyer Down payment assistance: $30,000 (Can be up to 50% of sales price, $30,000 represents a likely average) First mortgage to purchaser: $145,000 *Please note that this example, for the purposes of simplicity, does not take into account any down- payment funds contributed by the buyer (NSP requires a minimum of $1,500), nor does it take into account any closing costs. 5. Location of affordable homes in the development (lots in the plat or units within a site plan); All 24 units in Willow Springs will be affordable to individuals and families making 70% of the area median income. Please see attached exhibit. 6. Timing of delivery of the affordable homes in relation to the market-rate homes in the development; The entire project is considered affordable; therefore, no market-rate homes will be provided. 7. Marketing plan describing how affordable homes will be offered to the public; HRDC will market the homes in the same manner as our previous affordable housing developments. Our most valuable marketing tool is our homeownership education program, The Road to Home. Through RTH, HRDC annually meets with hundreds of households seeking affordable homeownership options. In previous developments, HRDC has contracted with a realtor to list the properties via MLS. In the event that HRDC elects not to list the properties via MLS, HRDC will provide a 2.5% fee to the purchaser’s agent to encourage realtor participation. As the purchasing structure is different than the standard process, HRDC will produce a FAQ sheet to help buyers and their representatives understand the unique financing and ownership structure for the Community Land Trust. 4 8. Plan for construction of affordable homes in phased developments. Willow Springs will be constructed in two 12-unit phases. 9. Any other information that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of this article; As noted, the use of Neighborhood Stabilization funds to purchase the property, which will be committed to a CLT, provides HRDC the opportunity to create a development that exceeds the City’s affordable housing ordinance by providing 100% affordability in perpetuity. The land trust model supports the family to attain and sustain homeownership by taking land and site development costs out of the sales price. In return, the homeowner agrees to sell the home at an affordable price to another lower-income homebuyer in the future. Consequently, the family is able to successfully own a home and build wealth, while the land trust is able to preserve the investment in the home permanently to help family after family and requires no future re-subsidization of the homes. While HRDC is the developer of the Willow Springs it is understood that the request for a lump sum, per unit, that will remain with the home in perpetuity will preclude the Willow Springs from impact fee reimbursement. It is also understood that down payment assistance (DPA) through the City of Bozeman will not be permitted for first time or subsequent sales of Willow Springs units. The ground lease governing the property and home includes language that addresses the situation in which HRDC were to sell the land to an institution or individual resulting in the ground lease being lifted. That language reads as follows: 3.3 CLT SALE. If the CLT transfers its interest in the Land, this Lease continues and the Homeowner becomes the tenant of the transferee under this Lease. If the CLT wants to transfer the Land to anyone other than a similar institution that shares the Goal, a nonprofit organization, charitable trust or government agency, the CLT hereby grants the Homeowner a right of first refusal to purchase the Leased Land Interest, the details of which are in the attached Exhibit: First Refusal. Any transfer of the Leased Land Interest contrary to this section is void. This Affordable Housing Plan proposes that the non-cash subsidy required by the ordinance would not apply to any of the proposed units. A PUD relaxation would make this clear. The issue will also be addressed in the grant agreement between HRDC and the City. It is understood that the city may want to further protect the municipal investment in the homes. HRDC would agree to a deed restriction, grant agreement or 5 covenant which would grant the city the right to intervene and arrange a new owner/leaseholder agreement and further ensure that municipal funds invested in the home, meant to stay with the home in perpetuity, would be returned to the city in the event of a land sale resulting in the home no longer being affordable. 10. List of Approved Relaxations – Willow Springs Number UDC Reference General Description Applicable Relaxation 1 38.320.030.A Lot Area: 2500 sf minimum (averaging of lot areas allowed for townhome clusters for affordable housing developments) 2350 sf average lot size for three unit townhome clusters and 2300 sf average lot size for four unit townhome clusters 2 38.410.100.A.2.c(4)(d) Watercourse Setbacks: A 50' setback must include connected wetlands The connected wetlands setback may be reduced 3 38.410.100.A.2.e Watercourse Setback Zone Widths: Setbacks are to be divided into Zone 1 (60% closest to watercourse) and Zone 2 (40% farthest from watercourse) The watercourse setback zones widths may be altered 4 38.410.100.A.2.e(2)(b) Trails in Zone 1: Limited, non-looping developed spur trails to the water's edge may cross all zones A non-spur trail is allowed in Zone 1 (Open Space Lot 3) 5 38.400.050 R.O.W. Width: 60' dedication required for local streets Reduced width of 50' for Hoover Way 6 38.320.030.C Front Yard Setback: 15' front yard setback adjacent to local street Reduced front yard setback for Lot 6 7 38.320.030.C Garage Entry Setback: Minimum of 20' Reduced garage entry setback for Lot 6, Block 2 8 38.540.020.A Minimum Parking Space Length: 18' minimum length Reduced minimum parking space length for Lot 6, Block 2 9 38.050.060.A.1 Minimum Landscape Performance Points: 15 points are required, Willow Springs proposes a combination of alternate and standard methods to achieve these points Alternate method and points achieved are as follows: 5 via an alternate method through preservation of existing mature and established vegetation, 10 points achieved through standard methods