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HomeMy WebLinkAbout08-06-19 Public Comment - A. Holloran - UDC Lease for Proposed AC by Marriott Hotel Mr. Ed Meese Parking Program Manager City of Bozeman 20 E. Olive Street Bozeman, MT 59047 Re: Proposed AC by Marriott Hotel 5 East Mendenhall Ave. Bozeman, MT 59715 Dear Ed, As a result of the Parking Commission denying the Projects' request to reclassify 78 of our existing 113"Permits"to "UDC Leases" (defying City Staff recommendation for approval), we hereby request a UDC Lease to satisfy the parking requirements for the proposed project as determined by the City Community Development Department. Per the existing Parking Lease Policy(attached as Exhibit A), please consider this our written request to the Parking Program Manager for 80 UDC Leases.The Project includes an AC by Marriott Hotel totaling 143 rooms, multiple dining venues and meeting space open to the public.Total cost of the project is estimated to be$35,000,000 and is proposed to start construction later this year. Key Project initiatives to note: • Total project cost$35,000,000 • Pre development property taxes$18,171 versus post development property taxes estimated at$300,000 • Creation of almost 50 FTE jobs (not including construction related jobs) • Increase revenue of more than$50,000 per year to the City of Bozeman Parking Department, based on current rate structure in the Garage • Project aligns with Downtown Plan, NCOD and B-3 Zoning • DRC and DRB recommended approval of the Project Per the Parking Lease Policy, once you have confirmed with the City a requirement for 80 spaces it is our understanding you will issue a Letter of Intent (LO1)outlining the Project and Lease request.Once we receive the LOI, we plan to follow the process as outlined in the existing Parking Lease Policy. In our reading of the Policy,the process to obtain UDC Leases are not subjective and follow a clearly defined process. Ultimately the City Commissioners will have to approve the Long Term Lease Agreement as described in item #9 in the UDC Lease requirements We feel it is important to point out a handful of issues related to this request: • The majority of the parking use for the Project will be during the evening hours • Based on the City data, the existing use of the Garage is less than 30% during evening hours. In fact, other than a handful of days during the year, ie Christmas Stroll, the Garage is rarely over 50%full. Literally hundreds of parking spaces remain vacant most of the time • Other than the UDC Leases for the Etha Hotel,ALL Permits and Leases in the Garage are a first come first serve basis. The holders of a Lease or Permit do NOT have any priority than those of the general public • The latest Lease Limit Policy as prepared by the City indicates there are 124 Hotel Leases available (attached as Exhibit B). Also important to note the Lease Limit Calculation recommends a conservative ratio of UDC/Hotel Leases of 1 to 2. Following this calculation, the 78 Permits we proposed reclassifying to Leases are equivalent to 156 Hotel Leases. Ed, thank you, we look forward to working with you and the City Commissioners on this exciting project. Sincerely, J Andy Holloran CC: City Commissioners Andrea Surrett Brit Fontenot Marty Matson Greg Sullivan Tim Cooper Parking Commissioners Alan McCormick BOZEMAN PARKING COMMISSION RESOLUTION 2017-04 A RESOLUTION OF THE PARKING COMMISSION OF THE CITY OF BOZEMAN, MONTANA,ADOPTING A PARKING LEASE POLICY AND LEASE LIMIT CALCULATION FOR THE BRIDGER PARK DOWNTOWN GARAGE. WHEREAS, pursuant to Bozeman City Commission Resolution #3803, the Bozeman Parking Commission has jurisdiction to regulate on-street and off-street parking the B-3 zoning district, and any residential parking permit districts created by the Bozeman City Commission; and, WHEREAS, the Bozeman Parking Commission is responsible for the operation and maintenance of the Bridger Park Downtown Garage; and, WHEREAS, the City of Bozeman's 2017 Strategic Parking Management Plan identifies the need for operating policies that provide a data-based approach to managing local public parking supply, as well as realizing effective revenue streams; and, WHEREAS, the Bozeman Parking Commission has worked with Rick Williams Consulting, experts in the parking industry,to develop a process for utilizing parking occupancy data in the Bridger Park Downtown Garage that projects a sustainable number of parking leases that may be sold; and, WHEREAS,the Bozeman Parking Commission recognizes the need for a process that links their approval of 25-year development based parking leases to the development process outlined in the City of Bozeman's Unified Development Code; NOW THEREFORE, BE IT RESOLVED that the Bozeman Parking Commission adopts a Parking Lease Policy and Lease Limit Calculation for the Bridger Park Downtown Garage, attached hereto as Appendix A. PASSED AND ADOPTED by the Parking Commission of the City of Bozeman, Montana, on first reading, at a session held on the Ninth day of November 2017.E his resolution shall become effective immediately. Chris Naumann, Chair Bozeman Parking Commission ATTEST: Ed Meece, 4rking Program Manager City of Bozeman Bozeman Parking Commission . POLICY: Parking Lease Police 'Adopted by BPC Resolution 2017-04 on 12/14/2017 The Bozeman Parking Commission (BPC), in alignment with the guiding principles and recommended strategies of the 2016 Strategic Parking Management Plan, recognizes the need to establish a policy which clearly defines how permits and leases for parking stalls owned and/or controlled by the City of Bozeman will be reviewed, accepted, and encumbered. Nothing in this policy will imply, state or be construed as the transfer of ownership of the physical space being permitted or leased, or the provision of any rights other than those specifically stated. The Finance Department may issue surface lot permits or garage leases with the following conditions: SURFACE PARKING LOTS OWNED OR CONTROLLED BY THE CITY OF BOZEMAN: Willson Lot (35 spaces), Black Lot (71 spaces) and Rouse Lot (46 spaces) (No monthly or annual permits are available at the Armory Lot) • Permits are available to individuals and/or businesses; • Permits available on a first come first serve basis subject to availability; • Permits are not transferable; however, the permit holder may permit employees, or other individuals to utilize the permitted space. • The Finance Department may maintain a waiting list for each public parking facility; • Total permits available at each facility is not to exceed limits established by the BPC; at this time, each lot is limited to total permits not to exceed 50% of available parking spaces. • Permits can be obtained and paid for on a monthly or annual basis; • Permits available for up to 1 year, not to exceed the current calendar year; • Permits must be renewed prior to January 1 It of each year with fees payable monthly or annually; • Permits that are voluntarily surrendered, or for which payment has not been made by the renewal date are subject to forfeiture or non-renewal; • Permit payments begin immediately upon signing of permit agreement and annual agreements will be prorated; • Permits are not transferable. BRIDGER PARK GARAGE (435 spaces total) • Total number of available spaces for rental, in the Bridger Park Garage, will be determined by the Bozeman Parking Commission utilizing the adopted Lease Limit Calculation methodology, as depicted in Appendix A of this policy. The Bozeman Parking Commission will review the Lease Limit Calculation at its March, June, September, and December regular meetings; and, as a result, may take action to alter the number of permits available. • The Bridger Park Downtown Garage offers both a parking lease and a parking permit, for which additional conditions apply: 1. Standard monthly permit: • Permits available to individuals and/or businesses; • Permits available on a first come first serve basis subject to availability; • Permits are not transferable; however, the lease holder may permit employees, or other individuals to utilize the leased space. • Permits available for up to 1 year, not to exceed the current calendar year; • Permits must be renewed prior to January 1st of each year with fees payable monthly or annually • Permits that are surrendered, or for which payment has not been made by the renewal date are subject to forfeiture and reissuance to others; • Permit payments begin immediately upon signing of lease agreement and annual agreements will be prorated; 2. UDC Lease—for meeting UDC parking requirements: • Only available to Entities required to provide additional parking spaces to meet City of Bozeman (COB)—Uniform Development Code (UDC) requirements; • Leases are not transferable; however, the lease holder may permit employees, or other individuals to utilize the leased space. • Lease Term for"UDC" leases shall not exceed 25 years in length; • Lease limited to actual number required by COB to meet UDC requirement net of any offsets, reductions, SID/Cash-In Lieu spaces or onsite spaces provided; • Leases will be established utilizing the current Long Term Lease Agreement (LTLA) agreement approved by City Attorney: 1. Applicant must make a written request for UDC leases to the Parking Program Manager, describing proposed development("Project") and number of leased spaces required. 2. Parking Manager will verify with the Community Development Department the total number of UDC required spaces for the Project, the number of UDC spaces provided thru other options, and the net number of spaces required (which should equal requested number of leases). 3. Parking Manager will provide the BPC with a Letter of Intent (LOI) outlining the Project and lease request. The LOI will outline the process, payment, scheduled reservation of parking spaces to meet the applicants UDC requirements, and the BPC's intention to enter into a LTLA upon successful completion of that process within the required timeframes. 4. The Parking Manager will sign the LOI; providing a copy to the applicant and the Director of the Community Development Department. 5. Applicant will make payment for the space reservation to the Finance Department of an amount equal to 20%of the calculated annual payment, pro-rated to a monthly amount, for the total UDC request. 6. The applicant has sixty calendar days -from when the LOI is signed -to complete the 'Concept Review' process with the Community Development Department. During this time, the applicant will make monthly space reservation payments, as described in #5 above. if the applicant fails to satisfactorily complete the Concept Review process within the required timeframe, the LOI is voided and terminated- no space reservation payments will be reimbursed to the applicant. 7. Upon satisfactory completion of the Concept Review process, the applicant will have an additional sixty calendar days to complete the 'Informal Review' process with the Community Development Department. During this time, the applicant will make monthly space reservation payments, as described in #5 above. If the applicant fails to satisfactorily complete the Informal Review process within the required timeframe, the LOl is void and terminated-no space reservation payments will be reimbursed to the applicant.* 8. Upon satisfactory completion of the Informal Review process, within the required timeframe, the applicant will have an additional ninety calendar days to complete the 'Site Plan' review process with the Community Development Department. During this time, the applicant will make monthly space reservation payments, as described in #5 above. if the applicant fails to satisfactorily complete the Site Plan review process within the required timeframe, the LOI is terminated - no space reservation payments will be reimbursed to the applicant.* 9. Upon final site plan approval,which is conditioned upon City Commission approval of the LTLA, the Parking Manager and Applicant will complete a Long Term Lease Agreement(LTLA)for final approval by the City Commission (CC). 10.Upon issuance of the COB Building Permit, the remaining lease balance for the spaces stipulated in the LTLA must be paid in full for that calendar year. Upon payment in full of the total lease payment amount, the Applicant will be provided access and full use of the leased spaces.** 11.The lease agreement must then be paid annually. * The Community Development Director may grant up to a (30) day extension in any single review phase if the reason for extension is the fault of the City of Bozeman. ** In the event, the applicant has not applied for a COB building permit, within sixty days of City Commission approval of the LTLA,the LTLA is immediately terminated as well as rights to the leased (UDC) spaces. ** In the event the building permit expires prior to issuance of an unconditional occupancy permit, the LTLA is immediately terminated as well as all rights to the leased (UDC) spaces. Parking Lease Policy:Appendix A Bozeman Parking Commission Bridger Park Downtown Garage LEASE LIMIT LCULATION of %of Empty Potential TotalLeases Bridget ofLeases Hotel Permits/L Vehicles t � . . OccupancyCars Parked Empty Stalls Stalls ew Leases Authorized For Stalls Sold(as of Leases easesin Parked at but Not Hour in Peak Hour (Peak Hour) (Potential (less Leases Sale(as of this S/14/19) Parked in Peak Peak Hour Activiated Peak Hour Hour Activated) 435 604 '17"1 72 132 1U 50% 219 216 108 62 666 BPC Approved [NOTE: Red highlighted boxes are far input of current data. All other categories are formulas that do not require input.] x/x/2019 #of Non-Hotel Leases for Sale 62 #of Hotel Leases for Sale 124 LEASE SUMMARY PEAK HOUR BREAKOUT 4/4/2019 Parked Peak Hour/Day Peak Hour Sub-Total Non-UDC Leases* 348 No.of Hotel UDC Leases in Peak Hour 15 Non Hotel Permits/Leases in Peak Hour 72 5 West Mixed Use Office(UDC) 50 Transient Vehicles 132 Element Hotel(UDC) 60 TOTAL Vehicles at Peak Hour 1 219 4/4/2019 12:42 PM Lark Hotel 1(UDC) 19 Lark Hotel 2(UDC) 27 � Etha Hotel(UDC) 54 T<S Etha Hotel(UDC)--PENDING 46 S Sub-Total UDC** 256 GRAND TOTAL 604 :No hotels in these leases UDC leases are for o minimum of 25 years **'sold but not activated means AVI cards not distributed. The purpose of the Lease Limit Calculator is to utilize parking industry best practices in Idetermining how many parking leases the Bozeman Parking Commission(BPC)can sell in the Bridger Park Downtown Garage,while maintaining reasonable confidence that adequate capacity exists for both leased and short term parking.The rationale is that the BPC can'oversell'monthly/annual leases(more leases than spaces)by maintaining a margin of excess capacity based on"Peak Hour"utilization.Employing a common parking management strategy,the BPC,uoon advice of Rlck Williams Consulting,has chosen to use a factor equal to 50%of unused parking spaces during the Peak Hour. The ratio of UDC/Hotel Leases for the peak parking occupancy of 4/4/19,as compared to all other permits/leases,is 15 of 87;or 1 to 4.8.However,taking into consideration that there are a considerable number of activated and inactivated permits that are unused at this time,the PPM is recommending that a more conservative ratio of 1 to 2 be applied at this time. Report Generated:6/6/2019 Page 1