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.
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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)
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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
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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
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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
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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.
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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.
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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
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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