HomeMy WebLinkAboutCombined public requests for FLUM amendmentsDate: July 16th, 2018
To: Chris Saunders
City of Bozeman Planning Department
20 E Olive St #202
Bozeman, MT 59715
csaunders@bozeman.net
From: Jeff Ho
Meg Swanson
Spire Climbing Center
13 Enterprise Blvd
Bozeman, MT 59718
406-586-0706
jeffho@spireclimbingcenter.com
meg@spireclimbingcenter.com
Re: Growth Policy Review Comment – Regional Commercial and Services Boundary
Spire Climbing Center recently purchased property located in Bozeman at 3646 N27th Ave and is
planning a second indoor climbing and general fitness facility to better serve Bozeman, the Gallatin
Valley, and the surrounding region. The property is zoned B-2 and lies just outside the Regional
Commercial and Services land use designation boundary. The surrounding properties, which include
property currently owned by the Billings Clinic, are zoned B-2 and promise to suit future commercial and
regional services.
We are suggesting this property and surrounding properties be re-designated during this review process
to be included in the Regional Commercial and Services boundary given their location, proximity and
access to I-90, zoning and future use, and ability to serve the region. This re-designation would also
align with the City of Bozeman’s Strategic Plan and vision statements, especially that of statement 3.4
which reads “Active Recreation – Facilitate and promote recreation opportunities and active health
programs and facilities.”
Spire Climbing Center and the community can benefit from this re-designation because it would allow
for an increase in building height. Ideally, Spire would like to build a facility up to 60 ft, so that we can
construct a state-of-the-art world-class indoor climbing facility for the community. Spire has
strategically chosen this location due to its easy access from I-90, distance from its current location, and
ability to serve the region and growth of Bozeman.
Please consider the re-designation of the Regional Commercial and Services area to include this property
and surrounding properties. Please see attached map showing lot locations and land use designations.
Thank you
Jeff Ho and Meg Swanson
Spire Climbing Center
www.spireclimbingcenter.com
July 16, 2018
VC Development, Inc.
1184 North 15th, Suite 4
Bozeman, MT 59715
Chris Saunders
Community Development Manager
City of Bozeman Planning Division
20 East Olive St, #202
Bozeman, MT 59715
RE: Growth Policy Review Comment – Regional Commercial and Services Boundary
Dear Chris,
Please accept this letter as our request that the City of Bozeman consider reclassifying the
property we own on the west side of East Valley Center Road bound to the south by
Catamount Street. This parcel is currently preliminarily platted as Catron Crossing.
The parcel is currently zoned as B-2 with a Community Commercial designation. Our request
is that the city consider reclassifying the property as Regional Commercial to fall in line with
the properties to the east and south. Due to this property’s proximity to the North 19th and
Interstate 90 interchange and its inclusion in the Entryway Corridor, the Regional Commercial
classification is warranted as a freeway-oriented development.
When we worked through the entitlement process on the Comfort Suites hotel, we realized
that the primary limitation for our project associated with Community Commercial is building
height. That hotel was constructed as a three-story building due to height restrictions when it
would have been more appropriate as a four-story building. As the City of Bozeman
contemplates vertical density as a more appropriate development paradigm to follow, it
seems appropriate to consider the requested reclassification.
I would be happy to discuss this request in further detail as the City of Bozeman reviews its
current Growth Policy. I can be contacted at 406-624-0382 or via email at
dcape@jwtcompanies.com. Thank you in advance for your consideration of this request.
Sincerely,
Don Cape
VC Development, LLC
From:Tammy Wisco
To:Chris Saunders
Cc:Kevin Spencer (kspencer@ksstone.com)
Subject:Norton Ranch: Community Plan Update
Date:Thursday, November 29, 2018 5:02:50 PM
Attachments:Norton Ranch - Bozeman Cover Letter.PDFExhibit A. Land Use Mapping.pdfExhibit B. Norton Ranch Planning Memo.pdfExhibit C. Bozeman Retail Analysis Report.pdfExhibit D. Bozeman Benefits & Retail Trends.pdf
Chris,
Please find attached several documents supporting Norton Ranch’s request for a CommunityPlan map change to community commercial mixed use:
1. Cover Letter
2. Exhibit A - Mapping3. Exhibit B - Planning Memo
4. Exhibit C - Leland Consulting Group Retail Analysis5. Exhibit D - Leland Consulting Group Community Benefits & Retail Trends
We realize that the Community Plan update will include new goals and policies; we are happy
to address these as they become available.
Please let me know if you have any questions. We understand this is the start of aconversation; we are ready to discuss more details when the timing is right for you and your
staff.
Tammy
Tammy Wisco, PE, AICP, MPA | RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
\NORTON RANCI{ HOMES
November 29,2018
City of Bozeman
Planning Division
ATTN: Chris Saunders
12L N Rouse Avenue
Bozeman, MT 59715
Dear Mr. Saunders,
Norton Ranch understands that the City is currently going through a process to update the Community Plan to
guide future growth and development within the City. We appreciate the Plan's purpose to integrate the
community's concerns and expressions on how the City should grow and develop and we provide this letter as
public and property owner input to the future plan. Norton Ranch reached out to the property owner to the
immediate east to determine whether it would be prudent to include the adjacent property in this request.
However, since that property is already designated Community Commercial Mixed Use in the Community Plan,
there did not appear to be a need to include that property in the request at this time.
We request that The Plan be updated to include the designation of Community Commercial Mixed Use for the
68.9 acres shown as the remainder lot R4 of Phase 4 of the Norton Ranch Homes development, as shown in
Exhibit A. As discussed in the accompanying narrative, this designation will provide the opportunity for the
development of a commercial node to serve the west Bozeman residential area, including rural areas outside
the City. This will promote livability through reduced vehicle miles traveled by providing needed services closer
to residences.
Enclosed in this package are several exhibits supporting this request:
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Maps of Subject Property - Existing and Proposed, C&H Engineering & Surveying
Planning Memo, Retia Consult
Retail Analysis, Leland Consulting Group
Community Benefits & Retail Trends, Leland Consulting Group
We are happy to provide further details to support this request and expect to have ongoing conversations with
City staff over the next months. lf you have any questions, please call me at 54L.815.7858.
si
ncer
6goz6 NE LOWER MEADOW DRME, SUITE z3o - BEND, OR g77oL I g4r.7z8.og78
NORTONRANCHHOMES.COM
Kevin
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
1
To: City of Bozeman, Planning Division
From: Tammy Wisco, PE, AICP, Retia Consult
Date: November 29, 2018
RE: Norton Ranch Community Plan Designation
This planning memo is provided in support of the Norton Ranch request for a Community Plan map
change during the City’s 2019 update. The request is to change the Norton Ranch land highlighted in
Exhibit A-3 to community commercial mixed use. Although this is not a formal land use application, but
rather public input to a City process, the City’s criteria and questions for a growth policy amendment have
been utilized as a framework for this memo. Similarly, goals and policies of the 2009 Community Plan
have been utilized to address the questions, as it is the best information available at this time.
Understanding that the 2019 Community Plan will include revised goals and policies, we are happy to
provide responses to those policies when they are available.
Does the proposed amendment cure a deficiency in the growth policy or result in an improved growth policy
which better responds to the needs of the general community? How?
The 2009 Community Plan likely did not foresee the rapid rate at which residential and school district
growth would occur in West Bozeman1. This rapid expansion has resulted in a West Bozeman residential
area lacking a walkable and bikeable commercial core. The responses herein demonstrate support for the
proposed designation change, based on existing Community Plan goals and objectives that are focused on
complete neighborhoods, with commercial cores, mixed uses and multi-modal transportation options.
The proposed amendment both cures a deficiency in the growth policy and results in an improved growth
policy due to the rapidly changing circumstances in West Bozeman.
The subject properties can serve as a much needed commercial center for both the surrounding
residential lands within the city, as well as the rural lands to the west. While the 2009 Community Plan
moves away from linear commercial zoning, the subject properties’ location along Huffine will facilitate a
commercial center setting due to its ability to serve both urban and rural lands by providing walkable
connections to the urban lands to the north and short drive distances for the rural lands to the west.
At the suggestion of the City, the Leland Consulting Group was contracted to complete a market analysis
for the subject site, specifically focused on a grocery-anchored retail commercial center. As noted by the
Leland Consulting Group (Exhibit C), “given the subject property’s location at the western edge of
Bozeman, and the lack of significant competition to the west and south, any prospective grocery-anchored
center at that site would likely serve a geographically very large territory.” Further, on page 22, the
Leland Group notes:
For the West Bozeman Retail Market Area, three retail categories appear to be
currently leaking spending to stores outside the area: Food & Beverage (grocery),
Foodservice & Drinking (restaurants/bars), and Health & Personal Care. Taken
together, leaked spending in these three categories amounts to just over $25,000,000.
1 The West Bozeman Retail Market Area growth rate was nearly double that of the City from 2010 to 2014, at
5.4% vs. the city’s 2.8%. Additionally, the West Bozeman area grew much faster than Gallatin County between
2000 and 2010 (West Bozeman grew by 74 percent while Gallatin County grew by 32 percent.) West Bozeman
Retail Analysis, Leland Consulting Group, July 2016.
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
2
These market analysis results showing significant loss of spending to other areas directly relates to
planning concepts in the Community Plan, indicating that local residents in the planning area are
traveling outside the area for commercial services. This travel for services results in traffic, wear and tear
on roadways, air pollution, and limited opportunity for a walkable/bikeable community. By creating a
commercial center adjacent to the residential community as proposed in this request, travel time can be
reduced for West Bozeman residents, and a walkable/bikeable neighborhood becomes possible.
Does the proposed amendment create inconsistencies within the growth policy, either between the goals and
the map or between goals? Why not? If inconsistencies are identified then additional changes must be
provided to remove the inconsistencies.
Is the proposed amendment consistent with the overall intent of the growth policy? How?
As shown in Exhibit A-1, the property immediately adjacent to the east of the subject property is already
designated Community Commercial Mixed Use. The proposed Community Plan map change for the
subject property would align with this adjacent property, with no conflict in the map. In fact, the
consistency of future zoning between these adjacent properties would help the development of the
adjacent property by potentially providing improved access.
To the immediate north, the properties are designated residential and are largely developed. As
acknowledged in the 2009 Community Plan and is expected to be a priority in the 2019 update, the City
desires to locate commercial centers near residential areas to reduce traffic and improve the livability of
the community. The requested Community Plan change for the subject property directly supports this
goal by providing a commercial area that is walkable and bikeable from the existing neighborhoods.
The proposed Community Plan map change to Community Commercial Mixed Use for Norton Ranch
aligns strongly with the 2009 Community Plan intent, as noted in the following responses. While the 2009
Plan is expected to be replaced by the 2019 update, it is anticipated that the general intent of these goals
will remain.
Community Plan, p 3-12: Community Commercial Mixed Use provides “basic employment and services
necessary for a vibrant community… in a center-based land use pattern...”
RESPONSE: The rapid growth of West Bozeman has seen largely residential development at its
western reach. The area surrounding the subject properties does not include a commercial center
and, as confirmed in the Leland Retail Analysis, residents are leaving the area for commercial
services. The subject properties can also serve as a center for commercial services for the rural lands
west of the city.
Community Plan, p 3-12: “Community Commercial Mixed Use areas are integrated with significant
transportation corridors…”
RESPONSE: The subject property is located immediately adjacent to Huffine, a principal arterial. The
property will be bisected by the future extension of N Laurel Parkway, a collector. Additionally, the
residential neighborhoods to the north have been constructed with multiple collectors and local
streets for connectivity and pedestrian/bicycle facilities on the streets and through the
neighborhoods. As a result, the subject property’s transportation corridors are ideal to support
Community Commercial Mixed Use.
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
3
Community Plan, p 3-12: “High density residential areas are expected in close proximity [to community
commercial mixed use]…”
RESPONSE: West Bozeman has grown dramatically in the last ten years, with substantial residential
development and schools surrounding the subject property. The adjacent properties to the north
include numerous apartments, high density single family and standard single family. These solely
residential areas extend greater than a mile (approx 6700 feet) to the north, all the way to Oak
Street. Pedestrian and bicycle amenities are integrated into the fabric of the adjacent communities,
providing several methods of non-automobile transportation to the subject properties.
Does the proposed amendment adversely affect the community as a whole or significant portion by:
i. Significantly altering acceptable existing and future land use patterns, as defined in the text and maps
of the plan? How does it not?
As noted throughout this memo, the proposed Community Plan map change supports the land use
patterns by providing a commercial center in the fast-growing West Bozeman. Additionally, the
presence of a commercial center at the western city limit will provide easier access for rural
residents, further reducing travel time. This integration of commercial and residential land uses
can result in decreased travel time, thereby decreasing traffic congestion and air pollution.
ii. Requiring unmitigated larger and more expensive improvements to streets, water, sewer, or other
public facilities or services and which, therefore, may impact development of other lands? How does
it not?
iii. Adversely impacting existing uses because of unmitigated greater than anticipated impacts on
facilities and services? How does it not?
The proposed Norton Ranch Community Plan map change will not result in unmitigated larger and
more expensive improvements to public facilities. Norton Ranch (both residential and commercial
areas) includes public street easements for Fallon Street, Babcock Street (collector), and Laurel
Parkway (collector). The easements are consistent with the grid network developed as part of the
City of Bozeman’s 2017 Transportation Master Plan. Norton Ranch has developed these streets at
appropriate street standards within the completed phases of the project. Babcock Street has been
constructed to a full collector standard from Cottonwood Road, through the full development, to its
current terminus at the western extent of the property. Laurel Parkway has been developed as a
full collector standard with landscaped median from Babcock Street to May Fly Street. Fallon Street
has been constructed as a local street from Cottonwood Road to Stone Fly Drive. This street system
grid will support the Community Plan map change to Community Commercial Mixed Use by
providing a direct collector connection to Huffine Lane (major arterial) via Laurel Parkway, a
collector connection to Cottonwood Road (minor arterial) via Babcock Street, and a collector
connection to Durston Road (minor arterial) via Laurel Parkway.
Adequate water main infrastructure and pressure exist to supply the proposed Community Plan
map change to Community Commercial Mixed Use as well as future developments on adjacent
properties. A 12” transmission water main has been installed down Babcock Street to service this
development and future projects in the surrounding properties. A 12” water main will be installed
in Laurel Parkway south of May Fly Street as identified in the City of Bozeman’s 2016 Water
Facility Plan. These 12” transmission mains will provide adequate pressure and capacity for the
proposed Community Plan map change to Community Commercial Mixed Use. Eight (8) inch water
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
4
distribution mains will be installed off of the 12” transmission mains to provide service to the
internal commercial/residential projects.
The entire Norton Ranch development (residential zones and proposed commercial districts) is
appropriately set up for conveying wastewater from the development to the City’s Wastewater
Treatment Plant. A 15” interceptor sewer main was installed down Laurel Parkway to the Norton
lift station. The lift station was designed to handle a wide range of wastewater flows from the
minimal flows with the initial phases of the development to the full development of the
property. The lift station will provide adequate capacity for the proposed Community Plan map
change to Community Commercial Mixed Use. Two sanitary sewer force mains (4” and 6”
diameter) were installed to be able to manage the wide range of wastewater flows while
maintaining minimum scour velocities within the lines. Downstream from the development, the
Norton East Ranch outfall diversion and the Davis Lane lift station are scheduled on the Capital
Improvements Plan to open up sanitary sewer capacity for the Baxter Creek and Cattail Creek
wastewater drainage basins, which include the entire Norton East Ranch property. The Norton
Ranch property (including the area proposed with this Community Plan map change) also has
guaranteed sanitary sewer allocations as detailed in the Wastewater Collection System
Agreement (January 2014).
The Norton East Ranch Subdivision has been planned and developed to provide adequate streets,
water, sanitary sewer and public facilities to serve the proposed Community Plan map change to
Community Commercial Mixed Use as well as development in the surrounding areas. All utilities
(water, sewer, power, gas, cable) are readily available for the entire development.2
iv. Negatively affecting the livability of the area of the health and safety of residents? How does it not?
The proposed Community Plan designation amendment for the subject property will do the opposite -
it will improve the livability of the area and health and safety of residents by providing opportunity for
community commercial mixed-uses that are walkable and bikeable from residential neighborhoods, a
repeated goal within the 2009 Community Plan.
Strong population growth in West Bozeman, combined with lack of retail centers increases travel into
the city, increasing traffic and air pollution. In an effort to reduce travel distances and increase
alternate modes of transport, a plan amendment to community commercial mixed use is desirable at
this location in West Bozeman. The existing integration of pedestrian and bicycle facilities into the
existing surrounding residential areas will provide alternative mode connectivity to the proposed
Community Commercial Mixed Use areas.
The 2009 Community Plan emphasizes the importance of the city’s livability, noting that the 2007
Citizen Survey identified Bozeman’s weaknesses, which threaten the city’s livability. These
weaknesses were identified as:
¥ Too much growth
¥ Traffic congestion
¥ Drugs
¥ Taxes
¥ Weeds, homelessness, unsupervised youth
2 Infrastructure summary provided by C&H Engineering & Surveying, Bozeman.
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
5
The proposed Community Plan map change from residential to community commercial mixed use for
the subject properties will provide an opportunity to reduce travel times for residents in West
Bozeman and rural areas to the west, thereby reducing traffic congestion. It also keeps the
commercial activity within the city limits, reducing the need or potential market for commercial
growth expansion outside of the city. While weeds, drugs and homelessness/unsupervised youth may
not be a direct land use issue, the infusion of active commercial areas with vibrant walkable street
fronts does improve visibility and discourage unwanted behavior in these areas.
The 2009 Community Plan highlights the importance of public health and safety, with a focus on
provision of adequate public services (water, wastewater, transportation). While the 2009
Community Plan will be replaced by the 2019 Community Plan, the intent to protect public health and
safety is presumed to still be paramount. As noted above, significant and adequate public services
have been provided to the subject property through the development of the adjacent residential
neighborhood and are available to serve a community commercial mixed use area.
The 2009 Community Plan also addresses public health and safety through the design of
neighborhoods, emphasizing the importance of multi-modal options, such as walking and biking:
“Community Plan 15.3.6 Public Health and Safety
Subdivision design should encourage physical activity and a healthy community.”
Community Plan 3.5 Future Land Use Map:
“The health and well-being of Bozeman’s residents are impacted by how the community is planned
and built. Development patterns affect dependency on motor vehicles. Communities that provide
options for living close to work and services, as well as the choice to walk or bike as part of normal
daily life can facilitate mental and physical health.”
These statements highlight the importance of commercial centers within walkable and bikeable
distances from residential areas. The proposed change from a residential designation to a
commercial designation will provide the opportunity for a commercial center for the rapidly
growing West Bozeman residential area, providing options for living close to work and services.
The 2009 Community Plan supports this approach in numerous goals and objectives, with the
rationale that “Good neighborhoods allow choices in housing, recreation, modes of transportation,
options for commerce, work, and entertainment while providing a healthy environment and a sense
of place and identity that residents can call home.”
“Goal C-2: Community Circulation — Create a circulation system both vehicular and pedestrian that
is fully connected, integrated, and designed for ease of use.”
“Goal C-3: Neighborhood Design – New neighborhoods shall be pedestrian oriented, contain a
variety of housing types and densities, contain parks and other public spaces, have a commercial
center and defined boundaries.”
“Objective C-3.4: Create neighborhood Commercial Centers that will provide uses to meet consumer
demands from surrounding Residential Districts for everyday goods and services, and will be a
pedestrian oriented place that serves as a focal point for the surrounding neighborhoods.”
Exhibit B - Norton Ranch Community Plan Amendment Request,
Planning Memo
RETIA CONSULT, LLC
c. 210 896 3432
P.O. Box 831, Bend, OR 97709
6
In addition to the retail market analysis, the Leland Consulting Group completed an analysis of
community benefits and retail trends for the subject property (July 2016, Exhibit D). The report
concluded that the conversion of the subject site to retail use as part of a broader mixed-use site plan,
other community benefits should be encouraged, such as:
¥ Reduced traffic congestion
¥ Improved access to food
¥ Supporting active transportation
¥ Access to walkable commercial designation
The study concluded by noting that “a walkable retail center at the subject site will not only meet
market demand, but provide community benefits that align with City of Bozeman goals and objectives
to increase active transportation and community health.”
The City of Bozeman’s Community Plan notes that neighborhood commercial centers should be within
½ mile of residential areas in order to encourage alternative modes of transportation use and
reduction of automobile congestion. The Leland Group notes that having local shopping areas near
the places people live and work is an essential aspect of walkability. Figure 3 of Exhibit C shows half
mile radii around existing grocery-anchored retail centers within the city. The map demonstrates a
dearth of these resources in West Bozeman, as existing and future residential areas to the north and
south of the subject site are not within convenient walking or biking to existing commercial centers
for routine shopping goods.
The Leland Group further notes the need for reasonable access to fresh and nutritious food. Figure 4
of Exhibit C demonstrates that there is no significant standard grocery store serving West Bozeman
and the nearby Four Corners community. This creates additional traffic through and from West
Bozeman to more central areas of the city. The Plan change of the subject site to community
commercial mixed use would support a zone change that could allow a grocery retail and commercial
mixed uses.
LELAND CONSULTING GROUP
People Places Prosperity
Revitalizing Downtowns
Creating Partnerships
Targeting Real Estate Success
Shaping Financial Strategies Strengthening Community Enabling Sustainability & Livability Making Cities Work
610 SW Alder Street Suite 1008 Portland Oregon 97205-3611 503.222.1600
www.lelandconsulting.com
Memorandum
Date July 28, 2016
To Kevin Spencer
From Alisa Pyszka, Senior Associate
Ted Kamp, Senior Associate
Subject West Bozeman Retail Analysis
Project Bozeman GPA-ZC
EXECUTIVE SUMMARY
The City of Bozeman has proposed that a 75-acre site in the western portion of the city be
considered for plan amendments and zone changes resulting in increased overall site
acreage designated for commercial (and, specifically, retail) uses. This analysis focuses on
projecting the market viability of retail development on the subject property based on retail
supply and demand conditions across a broader West Bozeman Retail Market Area1, existing
and future demographic factors, and an evaluation of the study area/site.
We conclude that grocery-anchored neighborhood/community scale retail is viable to some
extent now, due to pent-up demand and limited competition on the west side, and that
market support will grow considerably over the next ten to 20 years driven by the projected
increase in West Bozeman Retail Market Area households (and, to a lesser extent, by growth
in visitor spending).
Under reasonable market assumptions, the subject property could support
absorb approximately 235,000 to 364,000 square feet of new retail space by
2036, requiring from 27 to 42 parcel acres zoned for retail use.
This subject property absorption represents up to a 40 percent capture rate (market share) of
future West Bozeman Retail Market Area grocery demand for grocery retail, and up to 26
percent capture of Market Area demand across all retail categories.
The subject property is, in fact, geographically well-positioned, relative to both competing
centers and to sources of rooftop and traffic-based demand, to attract significant retail
development in the near-term.
Over the longer term, however, the existing land use and zoning entitlements appear
potentially inadequate for supporting the otherwise-attainable commercial build-out
potential of the site – suggesting the need for additional acreage designated for retail use.
1 A custom trade area boundary defined later in this document and illustrated in Figure 4
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 2
INTRODUCTION
The City of Bozeman is experiencing strong population growth across the community. Along with growth
comes an increase in automobile traffic and congestion. In an effort to reduce travel distances and
encourage alternative modes of transportation, the City has proposed that property in the western portion of
the city is considered for a plan amendment and zone change from residential to commercial use. The
specific site under consideration is located at the northwest corner of the intersection of Huffine Lane and
Advance Drive and is approximately 75 acres in size.
Figure 1: Subject Property
The subject property is currently designated in the comprehensive plan for future residential use (RD) on the
north and west three-quarters of the study area and Business Park (BP) of the southeast one-quarter only.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 3
Figure 2: Future Land Use (As Currently Designated)
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 4
Figure 3: Half-mile Radii Around Existing Grocery-Anchored Retail Centers
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 5
RETAIL ANALYSIS
West Bozeman Retail Market Area
A grocery-anchored neighborhood or community shopping center typically has a market area
(encompassing most competition and rooftop demand) with a radius of between 1.5 and 3.0 miles in most
urban and suburban settings. Any actual market area is unlikely to be a perfect circle, of course, as it may be
influenced by drive times, physical and cultural barriers, competitive options, etc. Given the subject property’s
location at the western edge of Bozeman, and the lack of significant competition to the west and south, any
prospective grocery-anchored center at that site would likely serve a geographically very large territory2.
The present analysis and demand estimates contained in this report use a market area definition
encompassing a 133 square mile semi-rural area generally include the western portion of Bozeman (generally
west of 19th Street) and extending located to the west and southwest of the city of Bozeman. The vast
majority of customer rooftops will be located within a much tighter area extending just beyond Four Corners.
This market area definition is necessarily generalized at this stage of analysis, given the site’s potential to
attract a range of different possible anchor tenants. In reality, the geographic reach of market area “draw”
varies substantially depending on the specific store brand and product offering, store size, and future
competition. Usually, larger stores tend to have broader market areas, but even a small store can have a very
wide reach given a sufficiently differentiated offering or strong loyalty base (e.g. Whole Foods, Trader Joe’s).
The boundary outlined in red in Figure 4, is a custom market area intended to encompass the most likely
sources of demand and competition for retail development contemplated for the subject site. Referred to in
this analysis as the West Bozeman Retail Market Area, this geography serves as the basis for generating
demographic comparisons and future demand estimates shown in this report.
2 Actually a fairly common phenomenon for Montana and other Mountain West markets.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 6
Figure 4 - Subject Site and West Bozeman Retail Market Area
Population and Household Growth
West Bozeman is a rapidly growing semi-rural area that encompasses a portion of the city of Bozeman to the
east, the developing area of Four Corners to the west, and an expanse of land north and south along State
Highway 85. Since the year 2000, the area has grown by over 74 percent and continues to be a target for
investment and development.
Subject Site
Retail Market
Area
Boundary
Retail
Employment
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 7
Figure 5: Existing Household Density
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 8
Figure 6: 2010 to 2014 Household Growth
While post-recession residential growth has been more concentrated within the City of Bozeman itself, as
shown in Figure 6, the rate of population growth for the West Bozeman Retail Market Area – taken as a
whole – has been considerably more steep. Note that the map highlights the northern and eastern extents of
the Market Area, given the relatively sparsely populated western and southern portions.
Figure 7 shows estimates for standing population in 2010 versus 2014 for the Retail Market Area, the City of
Bozeman, and Gallatin County overall. In gaining just over 5,500 residents over that 4-year span, the Retail
Market Area showed an annualized growth rate of 5.4%, versus 2.8 percent citywide and 2.1% countywide.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 9
Figure 7: Population Growth Comparison, 2010-2014
Source: Prospera Business Network 2015 Economic Profile of Gallatin & Park Counties; City of Bozeman; and
Leland Consulting Group
For the 20-year retail demand analysis in this report, Leland Consulting Group uses a forward-looking
annual growth rate of 4.5%. While lower than the recent post-recession growth rate shown above, it
represents a more realistic blended rate, taking into account business cycle uncertainties and a now larger
base amount of existing households.
For purposes of comparison, the Montana State Demographer, using eREMI forecasting methodology,
projects a 1.45% annual growth rate for Gallatin County overall between 2015 and 2025 – also a
substantial tempering relative to the 2010-2014 historical rate.
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Other Demographic Factors
Figure 8 - Population by Age Comparison (2015)
Source: ESRI, Leland Consulting Group, 2015
Figure 10 above shows the age distribution comparison between the West Bozeman Area and larger
geographies. Generally, the area’s population skews younger, with the largest age cohort between the ages
of 15 and 34. The presence of Montana State University in south central Bozeman is a major reason for the
observed skew towards younger residents, along with the area’s appeal as a scenic and active recreational
hub.
As with most other areas in the U.S., Montana will experience waves of growth in Baby-Boomer and
Millennial segments in the coming decade. The latter group, now aged primarily in their 20s, will move into
prime grocery-shopping age by 2025 as many begin to establish families.
0%
10%
20%
30%
40%
50%
60%
>15 15 - 34 35 -54 55 - 74 75+
West Bozeman Area City of Bozeman Gallatin County Montana USA
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Figure 9 - Households by Income (2015)
Source: ESRI, Leland Consulting Group, 2015
Market Area income levels skew higher than national and state averages. The market area has a greater
percentage of households within each income group above $50,000 per year, with the exception of very
highest income category (those earning more than $150,000 annually), where the market area is surpassed
by both the county and Nation. The area’s median income is $59,000 which is over $10,000 more than the
median income at the state level and within the city of Bozeman overall.
Figure 10 gives an illustration the geographic distribution of affluence, based the percent of residents who
earn more than $3,600 per month in wages. Note the pockets of higher wage workers in south Bozeman,
parts of the west side and much of the area’s unincorporated land. The area around Montana State
University shows up as being low wage on average, but this tends to understate the spending power of
college students (as their sources of disposable income tend to be supplemented by family support and
higher use of personal credit).
0%
5%
10%
15%
20%
25%
30%
< $25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 +
West Bozeman Area City of Bozeman Gallatin County Montana USA
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Figure 10: Area Residents by Wages
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Figure 11 - Education (2015)
Source: ESRI, Leland Consulting Group, 2015
The West Bozeman Area has a highly educated population. Over 32 percent of the area’s population have a
bachelor’s degree and over 15 percent have graduate/professional degrees. These rates are much higher
than that education levels at the state level and national level.
0%5%10%15%20%25%30%35%
Less than 9th Grade
9th - 12th Grade, No Diploma
High School Graduate
GED/Alternative Credential
Some College, No Degree
Associate Degree
Bachelor's Degree
Graduate/Professional Degree
West Bozeman Area City of Bozeman Gallatin County Montana USA
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Figure 12 - Household Size (2015)
Source: ESRI, Leland Consulting Group, 2015
The West Bozeman Area has average household size levels. 64 percent of the area’s population live in 1 or 2
person households. This compares to that national average of 60 percent, but is lower than the city of
Bozeman at 70 percent.
Lifestyle Segments
Tapestry segments are a series of demographic categories (also called psychographic profiles) developed by
ESRI, a national third-party demographic information provider. Tapestry segments can give a more nuanced
understanding of West Bozeman’s unique demographic characteristics by describing a population based on
its lifestyles, attitudes, purchasing patterns, and interests. The benefit of Tapestry segments is that they go
beyond raw numbers to describe groups of people in everyday language, combining data from many
sources such as the U.S. Census Bureau, Bureau of Labor, and other private sector data sources. The figure
below provides a brief overview of the top five segments in the West Bozeman area by percentage of
households. West Bozeman’s top five Tapestries, that together represent 96.4 percent of the area’s
population, are highlighted below.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3 4+
West Bozeman Area City of Bozeman Gallatin County Montana USA
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Bozeman GPA-ZC | West Bozeman Retail Analysis | 15
Rank Tapestry Segment Percent West Bozeman
Households
Percent U.S. Households
1 Emerald City 53.5% 1.4%
2 College Towns 18% 0.9%
3 Middleburg 13.2% 2.8%
4 Green Acres 6.6% 3.2%
5 The Great Outdoors 5.1% 1.6%
Source:
ESRI,
2016
The following descriptions explain in brief detail characteristics that define each of West Bozeman’s top five
Tapestries. Each description provides insight regarding the rental, home ownership and income distribution
indicated in the above figures.
Emerald City (53.5 percent) - Young, mobile, and
more likely to rent. This group is well connected to
the internet, and prefer organic foods and
environmentally friendly purchases. Incomes are
around the national median. These households
are well educated, travel frequently, and spend
entertainment dollars on music and art
College Towns (18 percent) – Young, thrifty
spending, renters. This group is digitally
connected, but have limited incomes. The
overwhelming majority of these households are
renters. They prefer pedestrian and bike friendly
areas, as well as a connection to local
entertainment, and the outdoors.
Middleburg (13.2 percent) – Conservative, family-
oriented households living in semirural
subdivisions. They are thrifty and willing to carry
some debt, but already investing in their futures.
They prefer American-made products and travel
within the United States. Somewhat younger than
the population at large, their average age is 35
years and average household size is 2.73 people.
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Green Acres (6.6 percent) – Avid do-it-yourselfers
who enjoy country living and self-reliance. They
are invested in maintaining and remodeling their
homes and yards, often turning some of the land
into gardens. They enjoy outdoor recreation and
are generally conservative in their outlook. Their
average age is 43 years and average household
size is 2.69 people.
The Great Outdoors (5.1 percent) – Educated
empty nesters living an active but modest lifestyle.
These households are DIY oriented and prefer to
be working in their gardens or out on their land.
They’re generally more educated than the overall
population and despite their age, prefer to work
during typically early retirement years.
West Bozeman Demographic Snapshot
The West Bozeman area grew at a much faster rate than Gallatin County as a whole, between 2000
and 2010. During this period the West Bozeman area grew by 74 percent, and the Gallatin County
grew by 32 percent.
West Bozeman has a slightly higher than average percentage of its population living in one or two-
person households. 64 percent of the population in the West Bozeman area live in one or two
person households. This compares to the national average of 60 percent, but is lower than the City
of Bozeman’s figure of 70 percent.
The West Bozeman area’s average household size is in line with the state of Montana as a whole.
The West Bozeman area’s average household size is 2.34 compared to 2.35 for all of Montana.
The West Bozeman area’s population is generally younger than the State’s with the largest age
group being Millennials, ages 15 to 34. The median age for the area is 30, compared to 32 for
Gallatin County, and 39 for the state of Montana
The West Bozeman area’s median household income is much higher than both the State and the
city of Bozeman’s median incomes. The West Bozeman area has a median income of $59,000,
compared to the city of Bozeman at $46,000, and the state of Montana at $47,000.
About 37 percent of housing units in the West Bozeman area are renter occupied. This is higher than
the State’s rate of only 27 percent renters.
The West Bozeman area’s population has higher educational levels than that of the state of
Montana. Over 32 percent of the area’s population have a bachelor’s degree and over 15 percent
have a graduate/professional degree, versus only 20 percent with a bachelors and 10 percent with a
graduate/professional degree at the state level.
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Employment Growth
3.2% annually for City of Bozeman (LEHD) from 2004 to 2014
Total Employment
2008 2009 2010 2011 2012 2013 2014 2008-
2014
2010-
2014
Gallatin County 49,081 45,324 45,043 46,419 47,718 50,315 55,533 6,452 10,490
Annualized
Employment
Growth
-7.7% -0.6% 3.1% 2.8% 5.4% 10.4% 2.2% 5.4%
Residential Building Permit Activity
After an extended period of recessionary decline, Gallatin County has nearly regained its pre-2008 residential
construction pace of 1,400 to 1,900 units annually.
723 616 683 761
1,930
1,681 1,750
1,411
506 391 398 387
739
1,349 1,191
1,496
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gallatin County Annual Building Permits (units)
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RETAIL DEMAND ANALYSIS
Trade Area and Primary Competition
Figure 13: Bozeman Supermarkets
Grocery-anchored retail in the Bozeman area is currently more centered around proximity to major arterial
and interstate access points, rather than strictly based on household densities. With the potential addition of
an 85,000 Winco supermarket near the interstate, west of the 19th Avenue interchange, this mismatch
between existing retail and existing rooftops will only be exacerbated.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 19
Table 1: Bozeman/Belgrade Market Supermarkets
Name Location Est. Size
(s.f.)
Est. Yr. Built Notes
Rosauer's SEC Huffine &
Fowler
60,000 2007 Spokane-based chain; includes
Huckleberry's Natural Market within
store
Albertson's University Square,
SEC 23rd & Main
54,000 1980/2003 added 12,000 s.f. in 2003 remodel
Albertson's Belgrade 48,000 1998
Safeway NEC 19th & Main 58,000 2011 closed location at 900 W Main to
open this location at 19th & Main
Smith's NEC 19th & Oak 54,000 2000
Walmart
Supercenter
SEC I-90 & 7th (at
Oak)
80,000 2004 approx. grocery portion of 205,000 s.f.
overall store
Costco Valley Center, S of
I-90 @ 19th
65,000 1997 approx. grocery portion of 125,000 s.f.
overall club store
W Main Co-op 9th & Main 13,000 1992/2002 expansion & remodel in 2002; full
service but specialized in organic &
local
Downtown
Co-op
SWC Black &
Main, downtown
5,000 2010 deli-focused expansion of W Main
location
CVS 19th & Main 12,000 2013 moved from location near 9th & Main
Town &
Country
1 block north of
19th & Main
22,000 1970 no-frills, warehouse-style local chain
Town &
Country
Belgrade 20,000 2015 purchased Lee & Dad's grocery &
remodeled in place
Town &
Country
11th & Lincoln,
MSU adjacent
24,000 2010 scaled down from a planned 30,000
s.f. concept after considerable public
debate
Heeb's East
Main Grocery
Wallace & Main
(to Highland &
Main)
10,000 1960/2016* planned move to Highland & Main by
late 2016, with expansion to 20,000 sf.
WinCo
(proposed)
19th & Cattail
(near Target)
85,000 2017-18* preliminary planning review
Roxy's Market Big Sky 17,000 2014 limited-service local
Hungry
Moose Market
& Deli
Big Sky 2,000 2005 more of a convenience store, but for
years the only grocery option for the
affluent and growing Big Sky area
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Supermarket Commentary
Rosauer’s – 60,000 s.f. full service grocery store
located less than two miles to the east of the
subject. 2007 construction with dedicated
(internal) organic/natural section branded
Huckleberry’s Natural Market. Spokane-based
chain. Construction of other pads & key sites in
this western-most community center stalled
during the recession.
Albertson’s – 54,000 s.f. full service national chain
grocer located approximately 8 miles northwest of
the subject site. Bozeman store is part of older
University Square shopping center (1980), but
expanded by 12,000 s.f. and remodeled in 2004 in
anticipation of Walmart Supercenter competition.
Belgrade store is slightly smaller, at 48,000 s.f.
Safeway – 58,000 s.f. full service national chain
located approximately three miles to the east of
the subject site. Moved 9 blocks west in 2011 from
original site at 900 W. Main.
Town & Country – Montana-based grocer with
approximately half-sized store formats. Full
service, but limited selection/SKUs. Original store
at 19th & Main with new Bozeman location
adjacent to MSU at 11th & Lincoln.
Recently purchased Lee & Dad’s grocery in
Belgrade (2015) to remodel as Town & Country
Walmart Supercenter – 205,000 s.f. big box
grocery and department store located four miles
to the northeast of the subject. Grocery portion is
approximately 100,000 s.f.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 21
Costco – 100,000+ s.f. wholesale big box/club
store located less than four miles north of the
subject site at interstate location. Approximately
65,000 s.f. devoted to supermarket goods.
Smiths – 50,000 s.f. traditional full-service grocery.
Chain operated primarily in Western U.S. Located
in Bridger Peaks shopping center with apparel and
furnishings co-tenants.
Co-op West Main – 13,000 s.f. specialty grocer
located three miles to the east of the subject site.
Local co-op membership model store with strong
loyal following. Local/natural emphasis.
Co-op Downtown – 5,000 s.f. upscale specialty
grocer located four miles east of the subject in
downtown Bozeman. This is a deli-oriented
extension of the West Main primary store.
Heeb’s – Longstanding 10,000 s.f. limited service
neighborhood specialty grocer anchoring east
Bozeman market. Heeb’s has announced plans to
move from their current location at Main &
Wallace several block further east to allow for an
expansion to 20,000 s.f. (although this tenant
could conceivably consider other, even west side,
locations.
LELAND CONSULTING GROUP
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Estimating Market Area-wide Retail Demand
Future demand for new grocery-anchored retail space on the subject property can be estimated based
several factors, including:
recapture-able existing spending leakage
new spending potential from anticipated household growth
growth in non-resident visitors/tourists
When new demand from these sources is totaled across the Market Area as a whole, we then estimate the
capture rate (or market share) that could be achieved by a project on the subject property, based in part on
known planned & proposed projects and an evaluation of site characteristics.
Recaptured Leakage
First, the spending potential of households living within the identified Retail Market Area is compared to
estimated actual sales from stores in that same area. In store categories where spending potential of Market
Area households exceeds sales in the same area, spending is said to be leaking outside the Market Area (i.e.
being spent at other stores outside the area).
For the West Bozeman Retail Market Area, three retail categories appear to be currently leaking spending to
stores outside the area: Food & Beverage (grocery), Foodservice & Drinking (restaurants/bars) and Health &
Personal Care. Taken together, leaked spending in these three categories amounts to just over $25,000,000.
This is summarized in Figure 14.
For many categories such as apparel and electronics, these shopping patterns are base on the locations of
major regional shopping centers and are unlikely to change much over time. More convenience-oriented
daily shopping categories such as grocery and pharmacy, however, tend to see leakage diminish over time.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 23
Figure 14: Retail Market Area Spending Leakage
Based on typical store sales per square foot, we estimate that this leakage alone could support
approximately 25,000 s.f. in new retail within the Market Area (assuming 50% of grocery leakage and 20% of
dining leakage could be recouped).
New Spending Potential from Household Growth
For faster-growing areas such as the West Bozeman Retail Market Area, household growth is typically the
primary source of future projected retail demand. As discussed earlier, we project an increase in new Market
Area households to be approximately 4.5% annualy over the next 10 years3. To calculate future demand
potential from this growth, we assume that Market Area spending potential will increase at the same pace.
The ten year increment in spending potential is then divided by expected average sales per square foot in
each major retail category (excluding auto-related) to arrive at new square footage of market support.
Current annual retail spending potential of West Bozeman Retail Market Area households, estimated at $370
million, is expected to reach $575 million over the next ten years (in constant 2015 inflation-adjusted dollars).
This increase in spending potential should translate into market-wide demand for just over 600,000 square
feet of new retail space over ten years (and 1.2 million square feet over 20 years) across major retail
categories4.
3 After ten years, we assume a moderate slowing in the annual growth rate, such that growth from year 11 to year 20
proceeds at a linear (or “straight-line”) fashion, rather than continuing to increase exponentially. In other words, the
absolute household growth between now and 2026 is assumed to occur again between 2027 and 2036.
4 This estimate excludes automotive retail categories but does include categories typically excluded from retail spending
data (but often found in retail centers), such as medical/dental/chiropractic clinics, real estate and personal financial
services, commercial banks, cinemas and fitness centers.
$71
$45
$20$17.7
$5.2 $2.2
$0
$10
$20
$30
$40
$50
$60
$70
$80
Food & Beverage
(grocery)
Foodservice &
Drinking Places
Health & Personal
Care(in millions)Household Demand
(Spending Potential)
Current Leakage ($)
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New Spending Potential from Visitor Growth
The Bozeman economy is supported in part by retail and dining spending from non-resident tourists and
other visitors. Leland Consulting Group conservatively estimates visitor spending to account for between 15%
and 20% of all retail says in grocery, dining, sporting goods and miscellaneous retail categories. Presumably,
this retail spending is already served by the standing retail inventory in the market. Over time, the volume of
visitors is likely to increase at roughly the same rate as population growth. The added retail demand from
visitors is thus added to the total market-wide demand, as shown in Figure 15.
Figure 15: Market Area New Retail Demand by Source, per Decade
Source: Leland Consulting Group, using data from ESRI and growth assumptions discussed earlier
Added to the 1.2 million square feet of 20-year demand from household growth and 50,000+ square feet
from recapturable leakage, the overall West Bozeman Retail Market Area could support up to 1.4 million
square feet of total new retail demand by 2036.
Estimated Subject Property Capture/Absorption
The previous two charts showed demand at the overall West Bozeman Retail Market Area level. Despite its
favorable site characteristics, the subject property will, of course, capture only a portion of the future retail
development anticipated to occur across this large geography.
0 50,000 100,000 150,000 200,000
Furniture and Home Furnishings
Building Material, Garden Equip
Health and Personal Care
Sporting Gds, Hobby, Book, Music
Electronics and Appliance
Clothing and Accessories
Misc. Store Retailers
Foodservice and Drinking Places
Other (incl. cinema, prof./med. office, banks, etc.)
Food and Beverage (grocery)
General Merchandise
square feet of new demand
Household Growth Leakage Recapture New Visitor Demand
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Based site known site factors including visibility, access, surrounding land uses, infrastructure and
demographics (under an assumed zoning/land-use designation change), we estimate the following
conservative and attainable absorption levels for the subject property, broken out by retail category.
Category-specific capture levels are likely to vary considerably over time, as the center and surrounding area
evolve. The overall total supportable square footage is less likely to vary substantially within the ten-year
horizon considered here, barring unforeseen major changes in regional growth patterns.
Table 2: 20-year Conservative and Attainable Subject Property Capture
Market
Area-wide
Demand
(s.f.)
Conservative
Subject
Capture
Rate
20-yr
Conservative
Capture (s.f.)
Attainable
Subject
Capture Rate
20-yr
Attainable
Capture (s.f.)
Food & Beverage
(grocery)
240,000 30% 72,000 40% 96,000
General Merchandise 320,000 10% 32,000 20% 64,000
Foodservice & Drinking
Places
167,000 20% 34,000 30% 50,000
Other (incl. cinema,
prof./med. office, banks,
etc.)
168,000 15% 24,000 25% 42,000
Health & Personal Care 75,000 30% 22,000 40% 30,000
Sporting Gds, Hobby,
Book, Music
73,000 20% 14,000 30% 22,000
Misc. Store Retailers 100,000 10% 10,000 20% 20,000
Electronics & Appliance 80,000 10% 8,000 15% 12,000
Clothing & Accessories 80,000 10% 8,000 15% 12,000
Building Material, Garden
Equip
67,000 10% 6,000 15% 10,000
Furniture & Home
Furnishings
40,000 10% 4,000 15% 6,000
Total (of Non-
Automotive Retail)
1,410,000 17% 234,000 26% 364,000
Caveats
The difference between conservative and attainable estimates shown here is intended to account for
currently unknown planned competitive projects in the Market Area, as well as potential variations is the
design, construction, tenanting and marketing of development on the subject property. A potentially larger
LELAND CONSULTING GROUP
Bozeman GPA-ZC | West Bozeman Retail Analysis | 26
source of variation could come from the underlying household growth rate that is experienced in the west
Bozeman market over the coming decade.
Our use of a 4.5% annual growth rate for the next ten years is conservative relative to recent growth, but
could potentially overstate demand under a scenario of prolonged regional or national recession, for
instance. That said, growth in Bozeman prior to the 2008-2010 recession was routinely higher than 5%
annually, especially on the west side. As such, the retail demand forecast used here could understate
demand, should regional growth resume at pre-recession rates.
LELAND CONSULTING GROUP
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www.lelandconsulting.com
Memorandum
Date July 28, 2016
To Kevin Spencer, Empire Construction
From Alisa Pyszka, Senior Associate
Ted Kamp, Senior Associate
Subject Community Benefits and Retail Trends
Project Bozeman GPA-ZC
EXECUTIVE SUMMARY
The City of Bozeman has proposed that a portion of a 75-acre site in the western portion of
the city is considered for a plan amendment and zone change from residential to
commercial use. This memorandum provides information regarding the potential
community benefits and current retail demand trends of a walkable commercial center that
could be realized with the approval of the plan amendment and zone change.
A separate retail analysis by Leland Consulting Group determines that there is a need for
retail on the subject site based on market demand. In addition to strictly market-related real
estate factors, conversion of the subject property to retail use (particularly a grocery-
anchored neighborhood/community center), as part of a broader mixed-use site plan,
should encourage other community benefits, such as:
• Reduced traffic congestion
• Improved access to food
• Supporting active transportation
• Access to walkable commercial destination
Based on the following information, we believe that a walkable retail center at the subject
site will not only meet market demand but provide community benefits that align with City of
Bozeman goals and objectives to increase active transportation and community health.
LELAND CONSULTING GROUP
Bozeman GPA-ZC | Community Benefits and Retail Trends | 2
COMMUNITY BENEFITS
The City of Bozeman is experiencing strong population growth across the community. Along with growth
comes an increase in automobile traffic and congestion. In an effort to reduce travel distances and
encourage alternative modes of transportation, the City has proposed that property in the western portion of
the city is considered for a plan amendment and zone change from residential to commercial use. The
specific site under consideration is located at the northwest corner of the intersection of Huffine Lane and
Advance Drive and is approximately 75 acres in size.
Figure 1: Subject Property
LELAND CONSULTING GROUP
Bozeman GPA-ZC | Community Benefits and Retail Trends | 3
Figure 2: Current Land Use Designations
The City is prepared to consider the plan amendment proposal for the following reasons.
1) Reduced Traffic Congestion: The City of Bozeman has determined that in order to reduce
automobile congestion and encourage alternative modes of transportation use, neighborhood commercial
centers should be within ½ mile of residential areas. This policy aligns with recent research that finds that 45
percent of daily trips, on average, are made for shopping and running errands; therefore encouraging
walking as a preferred means of making those trips is an important strategy in reducing obesity and
improving health. It is also important to reducing energy usage and carbon emissions. Researchers also
argue that compact walkable settlement patterns are important as a strategy for reducing automobile travel
and lowering greenhouse gas emissions. An essential aspect of walkability is having local shopping areas
LELAND CONSULTING GROUP
Bozeman GPA-ZC | Community Benefits and Retail Trends | 4
near the places people work and live. As illustrated in the following figure, existing and future residential
areas to the north and south of the subject site are not within convenient walking or biking to existing
commercial centers for routine shopping goods.
Figure 3: Half-mile Radii around Existing Grocery-Anchored Retail Centers
2) Improved Access to Food: There is growing recognition of the need for equitable community access
to fresh and nutritious food. As indicated in the following figure, there is no significant standard grocery
store serving the west side of the city and the nearby Four Corners community, which has no grocery store at
all. While much less densely populated, the surrounding unincorporated communities well to the west and
south of Bozeman are similarly underserved.
LELAND CONSULTING GROUP
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Figure 4: Bozeman Supermarkets
3) Supporting Active Transportation: The subject site is adjacent to a dedicated and partially
constructed bike route and trail system that surrounds and connects the site to surrounding residential and
recreation areas that encourages alternative modes of travel. The proposed zone change will allow for a
desired use that will leverage this infrastructure investment and serve the residents as intended.
LELAND CONSULTING GROUP
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Figure 5: Site in Relation to Trails & Park/Open Space
LELAND CONSULTING GROUP
Bozeman GPA-ZC | Community Benefits and Retail Trends | 7
4) Access to Walkable Commercial Destination: If the commercial area is developed as a pedestrian
oriented or “walkable” commercial center that leverages the trail systems, it will be a unique place serving an
unmet need of the community. Currently the only type of environment that serves this type of experience is
downtown Bozeman, which is on the east side of the city and is too far for alternative modes of travel from
the west side of town. As indicated in Figure , there are adequate bike facilities within the northwest
quadrant, however there are significantly less residents using alternative modes of transit as indicated in
Figure 6. This missing walkable destination such as the downtown core or the university campus clearly
impacts the incentive for residents to utilize alternative modes of transit in the northwest quadrant of town.
Figure 6: Bike, Ped and Transit Commute by Census Tract
LELAND CONSULTING GROUP
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DEVELOPMENT TRENDS
Retail customers are increasingly demanding an experience and social interaction in order for them to
choose to shop in traditional storefront environments over the internet. (You can’t buy a cup of coffee or
check the quality of produce online.). Walkable commercial areas serve to provide the physical environment
that enhances the traditional retail experience of a strip commercial center.
Walkable Commercial Area
A “walkable commercial area” usually means that it is possible for a significant fraction of patrons to arrive by
some other mode than driving, and that they are in a welcome environment for strolling, meeting others and
resting for a few moments. In short, they do not have to get in their car to visit store after store. In
commercial terms, retail districts serving mainly nearby residents are usually referred to as “neighborhood
shopping areas” or “community shopping areas,” depending upon their size and components. Industry
standards for these types of commercial centers are defined by Urban Land Institute in the following Figure
7. The anticipated retail development that would occur, if the plan amendment and zone change is
approved, would be up to approximately 364,000 square feet in size, which aligns with the industry standard
for retail types that are “walkable”.
Figure 7: Industry Definitions for Walkable Commercial Areas
Neighborhood Shopping Center
Anchors Supermarket and Drug Store
Number of Stores 10 – 40 stores
Total Retail Space 30,000 – 100,000 square feet
Site Area 3 – 10 acres
Market Area Population 10,000 – 30,000 people
Market Area Radius 1 - 3 miles
Community Shopping Center
Anchors Junior Department or Discount Store
Number of Stores 25 – 80 stores
Total Retail Space 100,000 – 450,000 square feet
Site Area 10 – 30 acres
Market Area Population 30,000 – 75,000
Market Area Radius 3 – 8 miles
Source: Urban Land Institute & International Council of Shopping Centers. (2008). Dollars and Cents of Shopping Centers /
The SCORE 2008. Washington, D.C.: Urban Land Institute.
A “walkable commercial area” describes places with a diverse range of local-serving shops and services,
where a substantial fraction of patrons arrive by walking, cycling or taking mass transit, where there are good
pedestrian links to adjacent neighborhoods, and where pedestrians are treated well once they arrive. These
areas often consist of grocery, restaurants, coffee shops and local services. Based on the above information,
we believe that a walkable retail center at the subject site will not only meet market demand but provide
community benefits that align with City of Bozeman goals and objectives to increase active transportation
and community health.
Date: July 16th, 2018
To: Chris Saunders
City of Bozeman Planning Department
20 E Olive St #202
Bozeman, MT 59715
csaunders@bozeman.net
From: Jeff Ho
Meg Swanson
Spire Climbing Center
13 Enterprise Blvd
Bozeman, MT 59718
406-586-0706
jeffho@spireclimbingcenter.com
meg@spireclimbingcenter.com
Re: Growth Policy Review Comment – Regional Commercial and Services Boundary
Spire Climbing Center recently purchased property located in Bozeman at 3646 N27th Ave and is
planning a second indoor climbing and general fitness facility to better serve Bozeman, the Gallatin
Valley, and the surrounding region. The property is zoned B-2 and lies just outside the Regional
Commercial and Services land use designation boundary. The surrounding properties, which include
property currently owned by the Billings Clinic, are zoned B-2 and promise to suit future commercial and
regional services.
We are suggesting this property and surrounding properties be re-designated during this review process
to be included in the Regional Commercial and Services boundary given their location, proximity and
access to I-90, zoning and future use, and ability to serve the region. This re-designation would also
align with the City of Bozeman’s Strategic Plan and vision statements, especially that of statement 3.4
which reads “Active Recreation – Facilitate and promote recreation opportunities and active health
programs and facilities.”
Spire Climbing Center and the community can benefit from this re-designation because it would allow
for an increase in building height. Ideally, Spire would like to build a facility up to 60 ft, so that we can
construct a state-of-the-art world-class indoor climbing facility for the community. Spire has
strategically chosen this location due to its easy access from I-90, distance from its current location, and
ability to serve the region and growth of Bozeman.
Please consider the re-designation of the Regional Commercial and Services area to include this property
and surrounding properties. Please see attached map showing lot locations and land use designations.
Thank you
Jeff Ho and Meg Swanson
Spire Climbing Center
www.spireclimbingcenter.com