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HomeMy WebLinkAbout10-14-21 Public Comment - J. Kauffman & B. Gallik - The Ives KASTING, KAUFFMAN &MERSEN,P.c. t ATTORNEYS AT LAW JOHN M.KAUFFMAN 716 SOUTH 20th AVENUE,SUITE 10I JANE MERSEN BOZEMAN,MONTANA 59718 DENNIS L.MUNSON TEL:-(406)586-4383 FAX:(406)587-7871 LI IA N.TYRRELL E-MAIL.:reception@kkmlaw.net JORDAN P.HELVIE KENT M.KASTING, Of Counsel October 11, 2021 Martin Matsen City Planning Office Alfred M. Stiff Professional Building 20 East Olive St. Bozeman, MT 59715 Design Review Board Alfred M. Stiff Professional Building 20 East Olive St. Bozeman, MT 59715 Re: The Ives —Application No. 21165 Dear Planning Officials and Members of the Design Review Board Our office, along with Brian Gallik and his office, represent individuals and entities that have been concerned with the parking situation in downtown Bozeman for many years. The purpose of this letter is to raise concerns and objections over the proposed project called "The Ives" to be located on the parking lot west of the Medical Arts Building along Willson in downtown Bozeman. It does not appear you were provided (or reminded of) information regarding the dedication of that land for other use, orchestrated by the same developer, HomeBase Partners ("HBP"), led by Andrew Holloran. The purpose of this letter is to object to the proposed project and to expose what our clients believe is the "bait and switch game" employed by HBP. A copy of the dedication, entitled "Off-Site Parking Space License Agreement" dated February 26, 2020, is attached as Exhibit A (the "Dedication"), which was signed by Mr. Holloran as "Grantee". This Fall, Mr. Holloran's HBP provided a "Project Narrative" for "The Ives" that makes no mention of the Declaration. A copy of the "Project Narrative" provided to the Design Review Board in September of 2021 is attached as Exhibit B. We believe the City is being played, the planning process abused and the City's regulations contorted. I October 11, 2021 Page 2 THE HISTORY Our clients began expressing concerns about HBP's practices in 2019 in connection with HBP's efforts to develop the AC Hotel in downtown Bozeman without providing any new parking spaces. They discovered HBP was trying to circumvent the UDC parking requirements by suggesting it could convert temporary parking space leases HBP was hoarding in the downtown garage into permanent UDC spaces to meet AC Hotel's parking requirements. Despite creating a 143 guest-room hotel, HBP was not going to create new parking for the guests, employees or others that would be using the hotel. The temporary leases were not transferrable, and the Bozeman Parking Commission effectively prevented HBP from exploiting the public parking garage as a means of evading the UDC parking requirement. In response, HBP took a different tact and identified the parking lot opposite the Medical Arts Building (the future site of"The Ives" project) as the parking necessary to satisfy the parking needs for the proposed AC Hotel. It appears that this solution also allowed the developer to avoid paying the City approximately $2 million in parking cash-in-lieu fees (80 spaces x $25k/space), while further burdening the City's downtown parking problem. Our clients promptly expressed their concerns about using a parking lot blocks away from the AC Hotel to satisfy the parking needs of the AC Hotel. Exhibit C (10/22/21 letter to City without enclosures). They pointed out the obvious — guests would not likely use that parking lot blocks away, but rather use the on- street parking or the parking garage. HBP's solution would create the very problem the City's parking requirements were designed to prevent. Nevertheless, the City proceeded with the idea and worked with HBP on an agreement that would ensure the parking for the AC Hotel at that location for the long term. With the draft agreement in hand, our clients identified a series of problems in the agreement that were problematic and would likely harm the City and its residents in the future. See Exhibit D (10/30/19 letter to City). While modest changes were made to the original draft, the Dedication was signed on February 20, 2020. Exhibit A. We believe that HBP's Holloran has an ownership interest in and/or manages both the "Grantor" and "Grantee" identified in the Dedication (he signed as "Grantee"). In short, he controls both sides. October 11, 2021 Page 3 THE DEDICATION The Dedication states on page one that its purpose is to use the "Owner's Property" (aka, proposed location of The Ives") "to meet the parking requirements of the City for application 19078 [aka, AC Hotel]". Exhibit A, ¶1. The owner of the property "granted" the AC Hotel an "irrevocable easement, right and license for the exclusive use of 80 parking spaces on [the property]." Id., ¶2 (emphasis added). The parties knew-that the dedication was "perpetual" and would "run with the land" and would bind "heirs, successors and assigns." Id., 13. Despite the use of the words "irrevocable" and "perpetual", the Declaration allows it to be modified or terminated if the City's Director of Community Development agrees. Id., ¶3. This inconsistency was one of several concerns raised by our clients in the October 30, 2019 letter. See Exhibits C and D. Despite our clients' concerns, we learned the Dedication had been signed through a public records request and shortly thereafter wrote the City again about the problem. In particular, we expressly requested the City notify us before the City or its employees act on any request to modify or terminate the Dedication. Exhibit E (4/17/20 letter to City). Given the foregoing, it is likely (if not certain) that HBP knew it was going to develop the parking lot into something other than a parking lot at the time it used land to solve the AC Hotel parking issue. It would be naive, if not blind, to believe otherwise. While HBP likely knew back in 2019 that it was not going to keep the land dedicated to parking, it is not clear what the City believed other than that the land would be dedicated to parking— only. THE PROBLEM Parking in downtown Bozeman continues to be a serious problem for businesses, their employees and customers as well as property owners. When HBP used the Dedication to address the increase in parking pressure it was creating, it duped the City into believing it was satisfying the long term UDC parking requirements imposed in the City's regulations. Now, shortly after signing the Dedication HBP has come forward with "The Ives" project that makes it clear it never truly saw the property and Dedication as a permanent fix. Instead, HBP saw the Dedication as a means to get the AC Hotel through the entitlements process only to inevitably ask the City to modify or terminate the Dedication. We recognize that buried in the Project Narrative (Exhibit B at 9), HBP discusses parking in the future development and that 80 stalls in the proposed October 11, 2021 Page 4 garage will eventually be set aside for the AC Hotel. We respectfully submit that such a future proposal was not contemplated by the City or its residents or our clients when the City demanded the Dedication. By HBP's own estimate and in violation of the Dedication, there will be no parking on the site for at least two years during the proposed construction of"The Ives". Exhibit B at 3. What is more troubling is how the City of Bozeman and its residents are being played by HBP. The City should recognize HBP's mercenary and predatory development tactics; employed at the expense of the City, the future neighbors and neighborhoods, and the City's own requirements. HBP's latest project exposes a sophisticated, profit driven, developer who views the City's regulations as isolated obstacles to be gamed and downtown parking is but one victim. We request the City reject "The Ives" project as soon as practical. The property identified for development is already dedicated to parking for the AC Hotel. The purpose of the Dedication, and presumably the City's insistence of the same, was to protect all who use or live near downtown. We ask you to enforce the Dedication and ask that the City's Director of Community Development not modify or terminate the Dedication. Sincerely, /Joan Brian Gallik Encl. C. City Attorney (via email) City Commission (by US Mail) KASTING, KAUFFMAN & MERSEN, P.c. A T T O R N E Y S A T L A W JOHN M.KAUFFMAN 7I6 SOUTH 2Oth AVENUE,SUITE I0I JANE MERSEN BOZEMAN,MONTANA 59718 DENNIS L.MUNSON TEL:(406)586-4383 FAX:(406)587-787I LILIA N.TYRRELL E-MAIL:reception@kkmlawmet JORDAN P.HELVIE KENT M.KASTING,Of Counsel October 11, 2021 Martin Matsen City Planning Office Alfred M. Stiff Professional Building 20 East Olive St. Bozeman, MT 59715 Design Review Board Alfred M. Stiff Professional Building 20 East Olive St. Bozeman, MT 59715 Re: The Ives —Application No. 21165 Dear Planning Officials and Members of the Design Review Board Our office, along with Brian Gallik and his office, represent individuals and entities that have been concerned with the parking situation in downtown Bozeman for many years. The purpose of this letter is to raise concerns and objections over the proposed project called "The Ives" to be located on the parking lot west of the Medical Arts Building along Willson in downtown Bozeman. It does not appear you were provided (or reminded of) information regarding the dedication of that land for other use, orchestrated by the same developer, HomeBase Partners ("HBP"), led by Andrew Holloran. The purpose of this letter is to object to the proposed project and to expose what our clients believe is the "bait and switch game" employed by HBP. A copy of the dedication, entitled "Off-Site Parking Space License Agreement" dated February 26, 2020, is attached as Exhibit A (the "Dedication"), which was signed by Mr. Holloran as "Grantee". This Fall, Mr. Holloran's HBP provided a "Project Narrative" for "The Ives" that makes no mention of the Declaration. A copy of the "Project Narrative" provided to the Design Review Board in September of 2021 is attached as Exhibit B. We believe the City is being played, the planning process abused and the City's regulations contorted. October 11, 2021 Page 2 THE HISTORY Our clients began expressing concerns about HBP's practices in 2019 in connection with HBP's efforts to develop the AC Hotel in downtown Bozeman without providing any new parking spaces. They discovered HBP was trying to circumvent the UDC parking requirements by suggesting it could convert temporary parking space leases HBP was hoarding in the downtown garage into permanent UDC spaces to meet AC Hotel's parking requirements. Despite creating a 143 guest-room hotel, HBP was not going to create new parking for the guests, employees or others that would be using the hotel. The temporary leases were not transferrable, and the Bozeman Parking Commission effectively prevented HBP from exploiting the public parking garage as a means of evading the UDC parking requirement. In response, HBP took a different tact and identified the parking lot opposite the Medical Arts Building (the future site of"The Ives" project) as the parking necessary to satisfy the parking needs for the proposed AC Hotel. It appears that this solution also allowed the developer to avoid paying the City approximately $2 million in parking cash-in-lieu fees (80 spaces x $25k/space), while further burdening the City's downtown parking problem. Our clients promptly expressed their concerns about using a parking lot blocks away from the AC Hotel to satisfy the parking needs of the AC Hotel. Exhibit C (10/22/21 letter to City without enclosures). They pointed out the obvious — guests would not likely use that parking lot blocks away, but rather use the on- street parking or the parking garage. HBP's solution would create the very problem the City's parking requirements were designed to prevent. Nevertheless, the City proceeded with the idea and worked with HBP on an agreement that would ensure the parking for the AC Hotel at that location for the long term. With the draft agreement in hand, our clients identified a series of problems in the agreement that were problematic and would likely harm the City and its residents in the future. See Exhibit D (10/30/19 letter to City). While modest changes were made to the original draft, the Dedication was signed on February 20, 2020. Exhibit A. We believe that HBP's Holloran has an ownership interest in and/or manages both the "Grantor" and "Grantee" identified in the Dedication (he signed as "Grantee"). In short, he controls both sides. October 11, 2021 Page 3 THE DEDICATION The Dedication states on page one that its purpose is to use the "Owner's Property" (aka, proposed location of The Ives") "to meet the parking requirements of the City for application 19078 [aka, AC Hotel]". Exhibit A, ¶1. The owner of the property "granted" the AC Hotel an "irrevocable easement, right and license for the exclusive use of 80 parking spaces on [the property]." Id., ¶2 (emphasis added). The parties knew that the dedication was "perpetual' and would "run with the land" and would bind "heirs, successors and assigns." Id., 13. Despite the use of the words "irrevocable" and "perpetual", the Declaration allows it to be modified or terminated if the City's Director of Community Development agrees. Id., ¶3. This inconsistency was one of several concerns raised by our clients in the October 30, 2019 letter. See Exhibits C and D. Despite our clients' concerns, we learned the Dedication had been signed through a public records request and shortly thereafter wrote the City again about the problem. In particular, we expressly requested the City notify us before the City or its employees act on any request to modify or terminate the Dedication. Exhibit E (4/17/20 letter to City). Given the foregoing, it is likely (if not certain) that HBP knew it was going to develop the parking lot into something other than a parking lot at the time it used land to solve the AC Hotel parking issue. It would be naive, if not blind, to believe otherwise. While HBP likely knew back in 2019 that it was not going to keep the land dedicated to parking, it is not clear what the City believed other than that the land would be dedicated to parking— only. THE PROBLEM Parking in downtown Bozeman continues to be a serious problem for businesses, their employees and customers as well as property owners. When HBP used the Dedication to address the increase in parking pressure it was creating, it duped the City into believing it was satisfying the long term UDC parking requirements imposed in the City's regulations. Now, shortly after signing the Dedication HBP has come forward with "The Ives" project that makes it clear it never truly saw the property and Dedication as a permanent fix. Instead, HBP saw the Dedication as a means to get the AC Hotel through the entitlements process only to inevitably ask the City to modify or terminate the Dedication. We recognize that buried in the Project Narrative (Exhibit B at 9), HBP discusses parking in the future development and that 80 stalls in the proposed October 11, 2021 Page 4 garage will eventually be set aside for the AC Hotel. We respectfully submit that such a future proposal was not contemplated by the City or its residents or our clients when the City demanded the Dedication. By HBP's own estimate and in violation of the Dedication, there will be no parking on the site for at least two years during the proposed construction of"The Ives". Exhibit B at 3. What is more troubling is how the City of Bozeman and its residents are being played by HBP. The City should recognize HBP's mercenary and predatory development tactics; employed at the expense of the City, the future neighbors and neighborhoods, and the City's own requirements. HBP's latest project exposes a sophisticated, profit driven, developer who views the City's regulations as isolated obstacles to be gamed and downtown parking is but one victim. We request the City reject "The Ives" project as soon as practical. The property identified for development is already dedicated to parking for the AC Hotel. The purpose of the Dedication, and presumably the City's insistence of the same, was to protect all who use or live near downtown. We ask you to enforce the Dedication and ask that the City's Director of Community Development not modify or terminate the Dedication. Sincerely, /Jon Brian Gallik Encl. C. City Attorney (via email) City Commission (by US Mail) EXHIBIT A After recording return to: Bozeman City Clerk PO Box 1230 Bozeman MT 59771 2674195 Page: 1 of 5 02/27/2020 09:03:28 RM Fee: $35.00 Eric Semerad - Gallatin County MT MISC III 1 WIN III 1111111111 IIII 1111 OFF-SITE PARKING SPACE LICENSE AGREEMENT -91 ��// This License Agreement is made thisZ6 day of r , 2Q?—Pby and between Medical Arts Building Partners LLC located at 300 N. Wllson Avenue, Bozeman, MT 59715 hereby referred to as"Owner" or"Grantor," and Straightaway Bozeman Investors, LLC located at 20 N. Tracy Avenue, Bozeman, MT 59715 hereby referred to as "SBI"or"Grantee" and with consent of the City of Bozeman, PO Box 1230, Bozeman MT 59771 ("City")to meet parking requirements of the City. For valuable consideration,the receipt of which is hereby acknowledged,the Owner and SBI, agree as follows: 1. Medical Arts Building, LLC is the owner of Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 in Block 4 of Beall's Third Addition to Bozeman, Montana together with a strip of land 8 1/2 feet in width lying East of and adjoining said Lots 1-10 inclusive, vacated for street purposes by Ordinance No. 699 of the City of Bozeman, which ordinance was recorded May 11, 1946 in Book 13 of Miscellaneous, page 123 records of Gallatin County, Montana, all according to the official plat thereof, on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana, hereby referred to as"Owner's Property" and whereas, Straightaway Bozeman Investors, LLC is the owner of said property whose legal description is described on Exhibit A attached, hereby referred to as 5 E. Mendenhall Street, Bozeman, MT 59715 according to the plat thereof, on file and of record in the office of the Clerk and Recorder, Gallatin County, Montana; and it is SBI's desire to use Owner's Property to meet the parking requirements of the City for application 19078 (the"Project"). Page 1 of 5 XrHUT Ltd 141`r10 rage L OT ZD UL/L1/LULU Uy:UJ:LO HIVI 2. Owner grants to Grantee for its benefit and that of its successors and assigns an irrevocable easement, right and license for the exclusive use of 80 parking spaces on Owner's Property ("Licensed Parking Spaces") for the purpose of meeting the parking requirements of the Project("License"). The City consents to the License granted herein provided the 80 parking spaces so licensed meet all applicable requirements of the Bozeman Municipal Code, Chapter 38 for the Project during the term of the License. 3. All parties recognize the significant legal implications of this License Agreement and have consulted legal counsel prior to signing. This License Agreement shall be perpetual, shall run with the land, and shall be binding upon the heirs, successors and assigns of the Owner and SBI hereto and must be recorded in the records of the Gallatin County Clerk and Recorder. This License Agreement may be terminated or modified and the License granted herein revoked only by prior written consent of the Grantee and the City's Director of Community Development("Director") by a document filed in the records of the Gallatin County Clerk and Recorder. 4. The City reserves the right to require Grantee to provide parking spaces at a different location(s) to meet the parking requirements of the Project if at any time the Director determines, in his sole discretion,the Licensed Parking Spaces do not meet the applicable site plan criteria or other applicable requirements of the Bozeman Municipal Code (BMC) for the Project. Failure to do so will constitute noncompliance with the site plan approval for the Project. In such a case, Grantee agrees it will, within six(6) months of the date of the Director's determination that all or a portion of the Licensed Parking Spaces no longer meet the applicable site plan criteria or other applicable requirements of the BMC, provide alternative parking spaces to the satisfaction of the Director or pay cash-in-lieu of parking(as provided for in 38.540.050, BMC) at the amount set by the City at the time of the Director's determination the Licensed Parking Spaces no longer meet the applicable site plan criteria or other applicable requirements of the BMC. 5. Each person signing this License Agreement represents and warrants that he is fully authorized to execute this License Agreement on behalf of the entity on whose behalf such individual has signed this License Agreement, and that by signing this License Agreement such entity will be bound by the terms contained herein. END OF DOCUMENT EXCEPT FOR SIGNATURES Page 2 of 5 Z0141 y0 rage ,) OT O UL/L//LULU Uy:UJ:LO HIVI OWNER/GRANTOR Medical Arts Building Partners LLC by Bert A. Getz Authorized Signatory STATE OF MONTANA ) )ss. County of Gallatin ) On this e-day of ar 20 2.(-?before me, the uxzdersigned, a Notary Public for the State of Mon a,personally appeared and the person who name is subscribed to the within instrument, and acknowledged to me that they executed the same for and on behalf of Medical Arts Building Partners LLC. IN WITNESS WHEREOF, I have hereunto set my hand and axed my Notarial Seal the day year first above written. ., LAUREN J CUMMINGS c�M�i'- Notary Public Publ fo the State of Mon a s:No�na,q�?u�==#pr the State of Montana Printed Name: y,��n �`a'Ywn1t� J - - Residing n �? ti 3.SEAL.=Q' Bozeman, Montana Residing in d �- �-Z ,? o •MoPo My Commission Expires; My Commission expire _ September 04,2023 I Page 3 of 5 Lb(41 UO rage 4 Oi 5 UL/L 1/LULU UJ:U.3:ZO HIVI i I LICENSEE /GRANTEE Straightaway Bozeman Investors, LLC by Andy Holloran Authorized Signatory STATE OF MONTANA ) )ss. County of Gallatin' } On thi day of =a=j 2U: D before me,the unde signed, a Notary Public for the State of Mon a,personally appeared , Mn , and the person who name is subscribed to the within instrument, and ackn wledged to me that they executed the same for and on behalf of Straightaway Bozeman Investors, LLC. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. ,.• '�CU`M;, LAUREN J CUMMINGS Q .54! Notary Public 4ted'Name. ubli the State of/Mon a =S:14otA�ry�yu=_for the State of Montana ��1C�i� yl Residing at: SEAL•-4;; Bozeman, Montana Residing i My Commission Expires: My Commission expires '' September 04,2023 Page 4 of 5 �n r4 i yn rage n or n UZ/Z I/ZuZ-u uy:uD:/-o Nivi THE CITY OF BOZEMAN BY: TIN NrATSEN, DIRECTOR OF COMMUNITY DEVELOPMENT CITY OF BOZEMAN STATE OF MONTANA :ss County of Gallatin ) i On this a1? day'of (U 201-0, before me, a Notary Public for the State of Montana,personally appeared Wartin Matsen, known to me to be the person described in and who executed the foregoing instrument as Director of Community Development for the City of Bozeman, whose name is subscribed to the within instrument and acknowledged to mI e that he executed the same for and on behalf of said City. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my seal on the day and year first written above. oar no�sl, SHANN N L LO STERHgF Notate Public n�.'�oTr pry .y� for the State of Montana *: -- Residing at. (Printed Name Here) :N;.S1;AO . ,- Bozeman, Montana My Commission Expires: Notary Public for the State of Montana March 117.2021 _ 1 Residing at R��-V-XVIU-AA , TAN My Commission Expires: 3- k`:J- ako { (Use 4 digits for expiration year) I Page 5 of 5 I I i E X- -- IIIBIT B r - PROJECT DESCRIPTION The applicant is proud to present a new mixed-use building located at the southwest corner of Willson and Villard. The Ives (Block 4) includes: 6 floors, 171,654 sf, 186 parking spaces and 99 residential units. At the ground floor is 5,897 sf of retail that fronts Willson, 1,673 sf of fitness, and a co-working residential lobby. Public parking is accessible off of Villard, while residential parking can be accessed from the alley. Public bike parking, showers, and lockers will also be provided, and is located off of Villard adjacent to the parking entrance. All back of house activities including trash, move-ins, deliveries, mechanical will happen along the alley. The Ives (Block 4) is part of the North Central Master Site plan. Project Address: 311 N Willson Ave, Bozeman, MT 59715 Zoning District: B-3 Occupancy Classifications: R-2, M, S-2 Residential (R-2): 99 Dwelling Units I Floors 3-6 Mercantile (M): Retail I Ground Floor Lobby (R-2): Residential Lobby I Ground Floor Parking (S-2): 186 Off Street Parking Spaces I Floors 131 - 2 On-Street Parking: 6 Spaces r PROJECT GOALS 'They want to live in walkable neighborhoods where they have easy access to everyday services,employment opportunities, healthy and affordable food, recreation and social gathering places. Housing affordability is a concern; residents of all ages,abilities,and income levels require a diversity of housing types to meet their specific needs.' --Bozeman 2020 Community Plan, Community Desires The goal of this project is to densify the downtown urban core with housing options smaller in size, and to a price point that is more in line with what people can afford. The project offers a diverse range of residential units starting with Junior 1 Bedrooms at 600 sf to 2 Bedrooms + Dens at 1,400 sf. Architecturally, the massing of the building is divided into two parts to visually break down the scale of the building. In between the two massings we planned the Residential and Parking pedestrian entrance which visually lines up with Beall's Alley. This reduces circulation, helps with wayfinding, and reinforces the Masterplan's vision of pedestrians traveling through the center of blocks. Amenities for the project include private balconies for each unit, a central courtyard on the west end of the building, 1,673 sf fitness, co-working lobby, and bike/ski workshops for residents to tune up their gear as well as store it securely. EXISTING BUILT ENVIRONMENT aim f .. Adob, HIP S M n(ARCHITECTS �, - DESIGN INTENT The design intent of The Ives is to create an exciting mixed use project that visually appears smaller in scale, works within the North Central Masterplan, and becomes a transition between the traditional urban core and residential neighborhoods. Dubbed the Rock and Feather, the building is a nice balance between downtown and residential neighborhoods. The massing of the building reinforces this with the 'feather' on the north portion of the building, adjacent to the residential districts, while the 'rock' is on the southern portion welcoming in downtown visitors. Between the two is a transition zone primarily of glass which lines up and responds to Beall's Alley. This link is an important break in the massing that helps organize the building, and creates a celebrated entry condition that both residents and public visitors can enjoy. The interior finishes will speak to the exterior language and strive for timeless elegance. 7" BUILDING AMENITIES Right in line with Beall's alley is the main entry to The Ives. The residential lobby features a lounge with a coffee bar and co working space. This lounge is an extension of our resident's homes, and offers the flexibility to host meetings, work, and collaborate. Additional amenities for the building's residential occupants include private balconies, on-site parking, on-site storage lockers, interior bicycle parking spaces, bike/ski workshop, fitness facility, and a third floor courtyard. The courtyard is 2,250 sf area featuring grills, fire pits, and a green space for residents to enjoy. MATERIAL CONTEXT Located within the traditional Community Core (B-3 district) and adjacent to R4 and R3 residential districts. The materials are a reflection of both districts and in keeping with the neighborhood character. Brick on the south side closer to Main Street, and wood toned siding on the residential end. The design team thought it was important to balance the heavy materials with a lighter, warmer touch of wood toned siding and fiber cement. This provides a modern approach to Bozeman's past while choosing materials that will perform and built to last. Additionally the fiber cement panels and application of the wood toned siding, have relief and texture that help to break down the scale of the massing. DARK BRICK MODIFIED WOOD CLADDING FIBER CEMENT GLAZING ti S M ARCNrrEcrs , , ! THE VE3 PROJECT TIMEFRAME SPf'l i SUBMIT SITE PLAN SPR I APPROVAL REVIEW TO THE CITY ; END OF CONSTRUCTION 044 ; C Y E inn' nnniunnun nuuii �`� •ininni(`�,� ninnui��; nnunu�.:� nnuuu nunml�J.� nns �l'•G' - .� �:1 ■, -- UJI Cc k �? CD CLI UJ LONR SUBMIT CONCEPT START OF REVIEW TO THE CITY CONSTRUCTION SITE IMPROVEMENTS The proposed site is zoned with a zero-lot line development standard at the frontage of N. Willson Ave and W Villard St with respect the Vision Triangle at the corner. At the south is an internal lot line with the adjacent parcel. To the west is an alley which the building steps back 5 feet for utility easement. In addition, the northwest and southwest corners of the site are reserved for Northwestern Energy to place equipment to serve the neighborhood. The footprint of the building will step back at all entrances to facilitate a more intimate entrance into the building off both streets. The Ives main utility services are located off the alley. Utility meters and trash collection are located along this alley obscured with screening to be sensitive to our neighbors. The water riser room is located in the basement. AFFORDABLE HOUSING No affordable housing measures will be provided by the applicant because the units proposed in this design are exclusively rental housing units which are exempt according to 38.380.030.E. H SMAARCHRC DESIGN GUIDELINES SUBCHAPTER 46 A I MASS & SCALE 1. Provide density to meet the goals and objectives of Downtown Bozeman Improvement Plan: With 99 total units on 0.749 acres, The Ives makes appropriate use of its lot area. As a mixed use building, the floor to floor height at level 1 is 15'-0" with large storefront windows to engage the sidewalks. 2. Innovative development and diversity of design is encouraged: The Ives incorporates a varied material palette of brick, modified wood cladding, and accents of metal trim. The heavy brick material relates to the downtown core while the wood toned siding provides a lighter touch towards the residential zoning. See the Design Intent and building renderings for more information. 3. A new building should exhibit clear order and comprehensive composite on all elevations: The Ives establishes a clear order with two main expressions, rock and feather. These two expressions and all elevations are tied together with a consistent window module and metal accent frame. 4. Building interface with residential zone properties: The Ives is adjacent to residentially zoned neighborhoods to the north and west, classified as R-3 and R-4. The Ives responds to the west by stepping by the building geometry in compliance with zone edge transitions BMC 38.320.060.B.2b. Additionally the northern portion of the building facing the residential districts is nicknamed the 'feather' and incorporates the lighter wood toned siding exterior. The ground floor on the north side of the building limits it's transparency in respect to the residential zoning, see departure exhibit for more information on this. B BUILDING QUALITY 1. New buildings shall be designed to the level of permanence and quality appropriate for Downtown Bozeman: Located within the traditional Community Core (B-3 district) and adjacent to R4 and R3 residential districts, The Ives was designed with materials that are a reflection of both districts and in keeping with the neighborhood character. Brick on the south side closer to Main Street, and wood toned siding on the residential end. The design team thought it was important to balance the heavy materials with a lighter, warmer touch of wood toned siding and fiber cement. This provides a modern approach to Bozeman's past while choosing materials that will perform and built to last. 2. Sustainable methods and techniques shall be applied to building design but also integrated with site layout and infrastructure design: At a density of 99 units per 0.749 acres, the proposed design allows for many people to live in the "Community Core" which reduces the need and use for cars in the area. The Ives provides more than required bicycle storage as well as elevated facilities for residents to tune up their bikes and skis to encourage alternative to vehicles. Additionally the public bicycle room includes 2 showers and 10 lockers making it easier for non residents to bike here, clean up, and continue on with their day. Storm water management procedures will be utilized at the common courtyard and exposed areas of the ground floor to collect and distribute storm water while providing green space to the residents. Individual heating systems are planned for each unit as these are rentable units. The building design incorporates a trash chute at every residential floor, giving the residents an easy way to dispose of their waste. Lastly, the envelope and mechanical systems will exceed energy standards as set by the State of Montana, C BUILDING ROOF FORM 1. Use flat roof lines as the primary roof form: The Ives roof is primarily flat responding to the B-3 zoning. The roof form is articulated on the northern end of the building creating an appropriate transition towards the residential districts. All rooftop mechanical equipment is properly screened. 2. Use of other roof forms: The roof form is articulated on the northern end of the building creating an appropriate transition towards the residential districts. H B SwA� Hrmcrs V. � ' DESIGN GUIDELINES SUBCHAPTER 4B cont'd D SITE DESIGN 1. Create strong connections between downtown's sub-districts and between downtown and the surrounding neighborhoods: The Ives was designed as a transition between the traditional urban core and residential neighborhoods. Dubbed the Rock and Feather, the building is a nice balance between downtown and residential neighborhoods. The massing of the building reinforces this with the 'feather' on the north portion of the building, adjacent to the residential districts, while the 'rock' is on the southern portion welcoming in downtown visitors. Between the two is a transition zone primarily of glass which lines up and responds to Beall's Alley. At the ground level, the building is broken down to a pedestrian scale and has active uses along Villard and Willson to encourage pedestrians to venture north from Main St and connects The Ives to the downtown's activity. 2. Public spaces should be made active through programming or utilizing opportunities with adjacent uses that promote vitality and safety: The Ives building massing acts as an anchor for the future active Beall's Alley. On The Ives east elevation is a zone primarily of glass on the building facade which lines up with Beall's Alley to highlight it and act as an organizational point for visitors to the area. The programming of the ground floor uses on this east elevation, Willson, are expected to be more heavily trafficked with residents, public, and retail patrons. The north elevation will be quieter as it is adjacent to residential zoning. Both street frontages incorporate the following elements to enhance the public space: weather protection, planters, seating areas, street lights, and street trees. E PARKING FACILITIES 1. Enclosed parking, integrated into individual new buildings as well as additions (if feasible), is preferred whenever possible to surface parking lots: The Ives integrates all parking in enclosed parking garages within the building. Six on street parking spaces are planned but no surface parking lots are proposed. 2. Shared parking structures are preferred to surface parking lots. A parking structure should be designed so that it creates a visually attractive and active street edge: The enclosed parking garage is surrounded by retail and residential uses to shield it's appearance from active street frontages on Willson and Villard. 3. For residential projects, enclosed parking is preferred to surface parking lots: The Ives integrates all parking in enclosed parking garages within the building. Six on street parking spaces are planned but no surface parking lots are proposed. F SIGNS 1. Commercial and Mixed Use projects should include a variety of creative and clear signage: The Ives main building signage is still in development as building branding has yet to be finalized. The location for residential signage will be at the main residential entry canopy and glass curtain wall which is in line with Beall's Alley. Final signage will be designed and located according to signage standards as set forth in the design guidelines and Unified Development Code 2. Residential projects are encouraged to include building identification signage to add to Bozeman's overall sense of place: The main building identification signage will prominently add a sense of place to the building as a point of reference at the terminus of Beall's Alley. 3. All signs should be developed with the overall context of the building and the area in mind. The placement or location of a sign is a critical factor in maintaining the order and integrity of a building. Consistent placement of signs according to building type, size, location, and even building materials creates a visual pattern that enhances the streetscape experience: L _ SM�ARCHrrEcrs r A , 1 + DESIGN GUIDELINES SUBCHAPTER 4B cont'd The Ives main building signage is anticipated to be located at the terminus of Beall's Alley and is integrated with the overall building design. It will establish a sense of place and compliments the overall building design. Refer to signage calculations on building elevations for allowable building signage. G STREET PATTERNS 1. Alleys: There is an existing alley that borders the site at the west property line. This project improved the alley to 16' paved alley. 2. Streetscape: The streetscape on N Willson Ave and W Villard St will follow the predominant pattern in the downtown with concrete sidewalks and street trees. The walking surfaces will be a combination of concrete sidewalks and pavers. The landscape and storm water management will be closely coordinated with the civil engineer. 3. Planting Strips: Planting strips will be maintained with street trees to keep with the existing design of the streetscape. 4. Pattern of Street Trees: The pattern of street trees will match that of other downtown sites, while considering the relief of the facade based on its location on the site. H LANDSCAPE DESIGN 1. Preserve and maintain mature trees and significant vegetation that are a direct enhancement of the pedestrian streetscape environment: One ash tree located on the southern property line on Willson Ave will be protected and preserved. Refer to landscape and civil drawings for specified tree and the locations of all proposed trees. All the proposed trees will enhance the streetscape environment and be consistent with downtown zones. I UTILITIES 1. Orient service entrances, waste disposal areas and other similar uses toward service lanes away from major streets: The refuge pick up location, loading zone, and service entrances are located on the western elevation along the alley, away from the site's major streets of Willson and Villard. All ground floor building equipment and meters are located along the alley with proposed screening to be sensitive to our neighbors. 2. Position service areas to minimize conflicts with other abutting uses: The refuge pick up location will host trash bins on pick up days and is located off the alley for easy access and keeps these services away from pedestrian store frontages. J SITE FURNITURE 1. Site furniture should be simple in character: Bike racks and benches are used strategically throughout the site to engage and activate the streetscape, These will provide a place of refuge for the public and residents while offering a secure location for guests and/or tenants to secure their bikes. Both approaches promote a walkable and bikeable site. EXISTING CONDITIONS SURFACE 101 ,0*., lo- I c:r _ LOOKING1 . 1 ' - J LOOKING2. 1 'TH 4. LOOKING SOUTHWEST LOOKING3. 1 'THWEST 5. LOOKING SOUTH R 2UBMII1 filL S� PARKNG DEMAND North Central is designed to be a model for multi-modal accessibility through investments in a range of mobility options, including structured parking. The project has a mix of uses that include residential, office, commercial/retail, and restaurant and its location in Downtown Bozeman is accessible via walking, biking, driving, rideshare, and transit. To support the vision for North Central as a pedestrian focused project with carless alleys and public spaces the project will be supported by 100% structured off-street parking within buildings to create more open space, a dynamic public realm and a memorable pedestrian experience. Parking will be shared among the different land uses on site to ensure the system is being managed efficiently. North Central will have expansive bicycle parking and amenities for residents including carshare vehicles. Office, retail, and restaurant workers will have access to ample and high-quality bike parking and facilities including showers and lockers. The graphic in Figure 1 highlights elements of the North Central parking and mobility strategy: Figure 1. Parking + Mobility Strategy innovationPursue . management Promotetransportation options approachFlexible management shared parking Unified Development Code (UDC) Requirements Parking requirements are contained in Division 38.540 of Article 5 in the Bozeman Municipal Code that is part of the Unified Development Code (UDC). The UDC provides several parking reductions that will be utilized for North Central as shown in Figure 2. Figure 2. Bozeman Municipal Code Parking Reductions ir Residential Reductions • On-Street Parking Credit • Car Share—5% • Net Sq Ft(85%of gross) • Street Level Use—3k sq ft per building • B-3 Reductions by Land Use o �' i H B S M A 1ARCATECTs PARKNG SUMMARY The Ives Parking Summary The Ives includes 186 structured parking stalls, 99 residential units, and 5,897 gross sq ft of street-level retail. Structured parking within The Ives project will accommodate all project uses as well as 80 stalls for the AC Hotel. Residential Parking Figure 1 shows the base residential parking requirement and reductions for on-street parking and 1 carshare vehicle resulting in a requirement for 89 off-street parking stalls. Figure 1. Block 4 Residential Parking Requirement NET BASE RESIDENTIAL CAR RESIDENTIAL TOTAL BUILDING/SITE LAND USE SQFT/UNITS RESIDENTIAL ON-STREET SHARE REDUCTION PARKING REQUIRED RESIDENTIAL (85%OF GROSS PARKING REDUCTION (4 STALLS PER W/ ON-STREET REQUIREMENT SO FT) REQUIRED CARSHARE) REDUCTION THE IVES RESIDENTIAL 99 99 (6.00) (4.00) 89.00 89 Commercial Parking Figure 2 shows the parking requirements for the street-level retail use and calculations for reductions for the B-3 Zoning District and the first 3,000 sq ft of street-level commercial use. Five stalls are required after reductions. Net SF is calculated as 85%of the gross sq ft after the 3,000 sq ft reduction street-level commercial use and a 40% reduction in the B-3 District. The net sq ft used for calculating the parking requirement is 1,478 sq ft. Figure 2.Block 4 Commercial Parking Requirement GROUND NET NET SOFT W/ BASE TOTAL PARKING RETAIL SQFT PARKING GROSS FLOOR SQFT/UNITS B•3 COMMERCIAL REQUIRED LAND USE REDUCTION REQUIREMENT BUILDING/SITE SQFT COMMERCIAL PER BUILDING (85%OF GROSS REDUCTION (PERUNIT) PARKING (ROUNDED BUILDINGS SO FT) (40%) REQUIRED DOWN) THE IVES RETAIL 5,897 1 3000 2,463 1,478 300 4.92 4 Parking Required vs. Provided Figure 3 shows a summary of commercial and residential parking requirements including 93 stalls for uses at The Ives and 80 off-site stalls for the AC Hotel. Subtracting the 80 stalls from the 186 stalls provided, results in 106 stalls for The Ives. The 106 stalls provided is 114% of the minimum requirement of 94 spaces and within the 125% limit in the Bozeman Municipal Code. Figure 3.The Ives Parking Summary OFF-STREET OFF-STREET PARKING OFF-STREET DELTA %OF PARKING BUILDING USE NITS PARKING PARKING PROVIDED PARKING FOR MINIMUM REQUIRED REQUIRED ON SITE AC HOTEL REQUIREMENT THE IVES RETAIL 5,897 4 93 186 -80 106 114% RESIDENTIAL 99 89 Bike Parking Figure 4 shows the bike parking requirements. No bike parking is required for the on-site commercial uses since the base vehicular parking requirement of 5 stalls results in a fractional bike parking stall (5 x 10%=0.5) that is rounded down to zero. Fifty-three commercial bike parking stalls are provided along with two showers and ten bike lockers. It is our understanding that the maximum parking limits apply only to vehicular parking and not bicycle parking. The showers and lockers will be available for other commercial uses on Block 3 in the North Central Master Plan. The residential use requires 9 bike parking stalls and 99 are proposed or one per unit. Figure 4.Block 4 Bike Parking Summary SO FT/ ADDITIONAL TOTAL BIKE BIKE RESIDENTIAL COMMERCIAL BIKE BUILDING USE #OF BASEBIKE BIKE PARKING PARKING BIKE PARKING BIKEPARK]NG LOCKERS SHOWERS UNITS PARKING PARKING REQUIRED STALLS PROVIDED PROVIDED PROVIDED PROVIDED REQUIRED RETAIL/COMMERCIAL 5,897 0.00 0.00 0.00 0.00 n/a 53 10 2 BLOCK 4 RESIDENTIAL 99 9.30 n/a 9.30 9.00 99 n/a n/a n/a v I H B �ARCHTfECTS LANDSCAPE All landscaping will comply with the mandatory landscaping provisions of the Bozeman UDC including the use of drought tolerant plants, use of appropriately sized landscape plant material, street frontage landscaping, use of trees with residential adjacency, coordination with utilities, and use of permanent irrigation. All service areas and utility equipment will be screened, as necessary. Streetscape: Street paving is designed to preserve the neighborhood's design and continuity from adjacent sites. The streetscape at The Ives will be a continuation of the streetscape at One 11 which is south of Block 4. Both West Villard Street and North Willson Avenue will follow storefront block frontage standards with a minimum 12' width sidewalk. From back of curb, a 6' strip of permeable pavers will be provided, followed by a minimum 6' width concrete sidewalk. Planting Strips: The storefront block frontage along West Villard Street and North Willson Avenue will be softened by 5'x10' raised planters, placed at regular intervals along the street within the 6' width paver strip. These planters will be maintained to a similar standard as the surrounding streetscape. Pattern of Street Trees: The pattern of street trees will relate to the pattern that exists on the One 11 site south of The Ives. These trees will be placed within the 5'x10' raised planters and maintained in an attractive appearance. Connections between indoor and outdoor spaces are integral to a successful design and vital to a positive experience for residents. Code requirement for open space, Sec. 38.520.060.C, states "up to 50% of the required open space may be provided by private balconies, provided they meet the requirements of subsection B.3". Only balconies that are at least 36 square feet, with no dimension less than 6 feet, will be counted towards this amount. The Level 3 courtyard will provide 2,280 square feet of open space. The remaining open space requirement is divided into balcony space and common indoor recreation areas. Common indoor recreation areas include Bike/Ski Workshops, indoor fitness space, pet spa, and residential lounge space. These calculations are indicated in the Project Matrix included with these application documents. STREETSCAPE SECTION PUBLIC ROW, WIDTH VARIES i PLANTING AREA i WITH ROCK BARK MULCH 6"CONCRETE W VILLARD STREET & CURB �� N WILLSON AVENUE o CONCRETE 5'WIDTH SIDEWALK, RAISED MIN.6'WIDTH, PLANTER SIZE VARIES �� IARc>�T�crS SMAI EX:JIBiT C KASTING, KAUFFMAN &MERSEN,P.c. A T T O R N E Y S A T L A W JOHN M.KAUFFMAN 716 SOUTH 2Oth AVENUE,SUITE 10I JANE MERSEN BOZEMAN,MONTANA 597I8 DENNIS L.MUNSON TEL:(406)586-4383 FAX:(406)587-787I LILIA N.TYR.RELL E-MAIL:reception@kkmlaw.net JORDAN P.F IELVIE SCOTT J.LORESCH KENT M.KASTING,Ofcounsel October 22, 2019 BY HAND AND EMAIL dyarber@bozoinan.net City of Bozeman Dept. of Community Development ATTN. Danielle Garber P.O. Box 1230 Bozeman, MT 59771-1230 Re: AC Hotel Site Plan & CCOA +DEMAmended Application 19078 Dear Ms. Garber: We wrote to you on September 18, 2019 in opposition to the AC Hotel Site Plan and CCOA + DEM — Application 19078 (the "Application"). We wrote on behalf of a group of downtown property and business owners with shared concerns about preserving sufficient downtown parking to preserve downtown's economic vitality. Recently we received an Amended Application for the same project, which still indicates there will be no new parking provided for the AC Hotel Project — a proposed 6-story 143-guestroom hotel, with other amenities (the "Amended Application"). Like the original Application, the Amended Application provides no parking spaces for its employees, guests or others on site. For the reasons set forth in our September 18, 2019 letter and below, our clients respectfully submit that the Amended Application, like the original, should be denied. When we first wrote to you on September 18, it appeared that the developer of the AC Hotel Project intended to satisfy the Uniform Development Code ("UDC") parking requirements for the project by seeking long-term parking leases in the Bridger Park Downtown Garage (the "Garage"). As explained in the September 18 letter, the Bozeman Parking Commission already rejected that approach (the "Garage Approach") and it should not be available to the developer. Bozeman Planning Department October 22, 2019 Page 2 Now, based upon the representations by the developer on or about October 4, 2019 (Exhibit A), it appears that the developer might be abandoning the Garage as a means to satisfy the UDC parking requirements. Instead, the developer suggests that the project's UDC parking requirements might be satisfied with a "long term lease agreement with the owner of the parking lot located on the west side of Willson Ave., between Bealle and Villard." See Exhibit A. The parking lot referenced is across the street from the Medical Arts Building (the "MA Lot") and the new approach is hereinafter referred to as the "Medical Arts Approach". Before turning to the problems associated with using the MA Lot, we note that the developer did not expressly abandon the Garage Approach. To that end, we have written the Parking Manager and City Attorney asking for clarification of that issue. See Exhibit B (without attachments). If the developer is trying to keep the Garage Approach as a viable option, all of the arguments set forth in our September 18 letter still apply and are incorporated herein by reference. With respect to the proposed "Medical Arts Approach", we respectfully submit that it is, at best, illusory and should not be considered a viable approach to satisfying the UDC requirements. The intent of the UDC is, in part, to protect the public health, safety and general welfare while balancing various parties' rights and responsibilities. It is designed to do this by "preventing the creation of private or public nuisances caused by noncompliance with the standards and procedures of this chapter; regulating the subdivision, development and use of land; preventing the overcrowding of land; lessening congestion in the streets and highways; ...; promoting development approaches that minimize costs to local citizens and that promote the effective and efficient provision of public services; ...Section 38.100.040 (A) & (B). Allowing the Amended Application to proceed with no new parking creates a public nuisance, congestion in the streets and increases the costs to the local citizens by exhausting a scarce and valuable resource —existing parking spots. Section 38.100.080 provides that no building may be erected or constructed, and no development commenced unless it is in conformity with "all of the regulations herein specified for the district in which it is located". Section 38.230.100(A)(3) requires the Application to conform with all other applicable laws, ordinances and regulations. Subpart (06)(a) requires conformance with the community design provisions of including transportation facilities and access, which includes the "impact of the proposal on existing and anticipated traffic and parking conditions." (Emphasis added). Subpart (07) requires the Application to conform with the project design provisions of Article 5 of the UDC, which includes Division 38.540 on parking. Bozeman Planning Department October 22, 2019 Page 3 The impact of a 143-room hotel, with no new parking, on existing parking conditions in Bozeman, would be catastrophic, over burdening the limited on-street parking that exists in the downtown area (and surrounding neighborhoods) as well as the Garage. Please note that despite the appearance that the Medical Arts Approach abandons use of the Garage for purposes of meeting the UDC requirements, the new approach will continue to improperly burden the Garage. The Medical Arts Approach (Exhibit A) states, in part, "It is still the intention of the AC Hotel to park its employees in the Bridger Park Garage through the use of the existing parking permits owned by Homebase Partners". However, (1) Homebase Partners does not actually own any parking permits but may have some month to month leases; (2) the month to month leases are not transferrable and (3) the owner of the hotel project, as discussed below, appears to be Straightaway Bozeman Investors, LLC (not Homebase). It is clear the developer intends to use the Garage for employee parking rather than provide actual parking as required under the UDC. We also submit that the notion that the MA Lot can be practically and reasonably used to satisfy 80 UDC spaces is unfounded and unreasonable. 1. The City should not accept that the developer can actually secure and make available to guests of the AC Hotel 80 parking spaces in the MA Lot. The map the developer attached to Exhibit A shows the entire MA Lot in the hash-marked area. Attached hereto as Exhibit C are pictures from this morning of the MC Lot at approximately 9:00 am. There are rarely any open spaces during the day, let alone 80. One need only ask tenants in the Medical Arts Building about the lack of parking to understand that there are not 80 spaces in the MA Lot that could be dedicated to the proposed AC Hotel The City should reject the bald assertion that the developer can secure and make available to guests of the AC Hotel 80 spaces in the MA Lot. The developer has not even provided an adequate use study to assess the available spaces in the MA Lot. 2. Attached to the developer's amended approach (Exhibit A) is a document entitled "Off-Site Parking Space License Agreement", which is what the developer represents will be the "long term lease" (the "License Agreement"). That document identifies Medical Arts Building Partners, LLC as the current "Owner" of the MA Lot and Straightaway Bozeman Investors, LLC as the "Grantee" of the license. We believe, without much effort, the City should be able to determine that Andy Holloran has an Bozeman Planning Department October 22, 2019 Page 4 ownership interest in, and/or controls both entities. Even a cursory review of the License Agreement reveals that: (i) there is no enforcement mechanism; (ii) there is no penalty to the Owner should guests not be able to find a parking spot; (iii) there is no remedy for the Grantee if spots are not available; (iv) there is no consideration for the transaction (i.e. no money or thing of value exchanged); (v) there is no City oversight should the Grantee choose not to enforce its alleged right to 80 spaces; (vi) the document is internally inconsistent—in one place it grants an "irrevocable easement, right and license" and is "perpetual', but in the same document states that it can be terminated. These problems are particularly troubling because unlike most leases that are true "arms-length" transactions, the License Agreement is likely between entities controlled by the same person. 3. Given the,unpredictable and variable weather that Bozeman enjoys, it is unrealistic to think that guests at the proposed AC Hotel will park in the MA Lot and walk to the hotel. Rather, common sense points to the obvious — guests will inevitably park in the Garage or on the street, thereby further burdening the existing parking problems in downtown Bozeman.', Adding a 143-room hotel with amenities (e.g. restaurant) in downtown Bozeman without providing on-site or adjacent parking will, on its face, create a nuisance the UDC is designed to prevent by usurping and overtaxing existing parking spaces in the downtown area. 4. In the drawing attached to Exhibit A, the developer represents that there is allegedly 996 feet from the corner of the MA Lot to the entrance of the proposed AC Hotel. It is unclear if this is actually the true distance or if the measuring points are correct. If the main entrance to the proposed AC Hotel is on Mendenhall and/or if the proposed first parking space is not the curb, then it is likely the measurement is wrong. In any event, the drawing is a graphic representation of why the Medical Arts Approach is unreasonable. In sum, the Amended Application, like the original Application, does not, and cannot, comply with the parking requirements set forth in Article 38, Division Bozeman Planning Department October 22, 2019 Page 5 38.540 of the UDC. See e.g. Table 38.540.050-3 (Off-Street or Off Road Parking Spaces Required -Motels, Hotels)1 Finally, the proposed structure and lack of parking do not conform with the project design provisions of Article 5 of the UDC because (a) they are not compatible with or sensitive to the immediate environment of the site and the adjacent neighborhoods relative to architectural design, building mass, neighborhood identity, orientation,of the building on the site and visual integration and (b) the proposed plan design and arrangement is not designed so that activities will be integrated with the organizational scheme of the community or neighborhood. For the foregoing reasons, we request that you deny and/or reject the Amended Application. The proposal will be detrimental to the health, safety and welfare of the community and, as submitted, not is in compliance with the requirements of the UDC. Moreover, it is not in harmony with the purposes or intent of the UDC. Since ohn u man Brian K. likC Encl. C. Clients (email only) 1 Mr. Holloran's own calculations show that the total required spaces are at least 80.4. See 'Project Ma tl ix"SPR Site Plan. EXHIBIT D FASTING, KAUFFMAN & MERSEN,P.c. A T T O R N E Y S A T L A W JOHN M.KAUFFMAN 716 SOUTH 2Orh AVENUE,SUITE I0I JANE MERSEN BOZEMAN,MONTANA 597I8 DENNIS L.MUNSON TEL:(406)586-4383 FAX:(406)587-787I LILIA N.TYRRELL E-MAIL:reception@kkmlaw.net JORDAN P.HELVIE SCOTT J.LORESCH KENT M.KASTING,Of Counsel October 30, 2019 Greg Sullivan Tim Cooper Karen Stambaugh Office of City Attorney 121 N. Rouse Bozeman, MT 59715 Re: Parking Off-Site Use Agreement-AC Hotel Application Issues Dear Counsel: On behalf of business and property owners in downtown Bozeman, we have communicated with 'the City on several occasions regarding downtown parking issues. In particular, we have written in opposition to efforts made in connection with the proposed AC Hotel project as it relates to parking issues. The proposed project is also known as AC Hotel Site Plan & CCOA + DEM Application 19078 (the "Proposed Project"). As part of our work we made a public records request from the City that would have included documents related to parking for the Proposed Project. We recently received a get of documents in response to that request. Based upon that documentation we have confirmed that the Proposed Project is owned and/or managed in whole or in part by Andy Holloran. The documents also revealed efforts by Mr. Holloran as far back as June 28, 2019 wherein Mr. Holloran requested the City's�"boiler plate lease" from Chris Saunders and an August 1, 2019 exchange between Ms. Stambaugh and Mr. Holloran regarding the same. From the correspondence and what we have learned, it appears that Mr. Holloran had planned on using that "boiler plate lease" as a means to satisfy the UDC parking requirements for the Proposed Project. Also in August 2019 Mr. Holloran was demanding that the City's Parking Manger (Ed Meece) give him an LOI for long term leases in the Cityy's Garage downtown for the Proposed Project, though it does not appear that Mr. Holloran copied Mr. Meece on his correspondence regarding the proposed Off-Site Lease. f � .f October 30, 2019 Page 2 In October of 2019 we learned that Mr. Holloran seems to have abandoned the LOI demands in favor of suggesting an Off-Site Lease will satisfy the UDC requirements for the Proposed Project. We objected to this newly discovered tactic by sending timely written objections to Danielle Garber at the City Planning Department on October 22, 2019. The purpose of this letter is to address the problems with the "boiler plate lease" that the City apparently provided to Mr. Holloran and which he is now attempting to use to avoid building new parking for the 143-room hotel (plus amenities) that constitutes the Proposed Project. A copy of the August 1, 2019 exchange with Mr. Holloran is attached here and the final several pages is the draft agreement we have seen (the "Draft Document"). 1. It seems unusual, if not outside its role, for the City to provide a private party a draft parking lease. While it makes sense that there may be terms within a lease that the City may want to ensure contain certain critical elements, it does not make sense that the City would tell private parties how to write a lease. 2. If the City is seeking terms in a parking lease that will adequately address the needs of,the UDC for new construction to provide appropriate parking, then the City should have the right to enforce certain terms. The Draft Document does not afford the City, or any party, any enforcement rights. This renders the document meaningless if no one can enforce it, or as discussed below, will enforce it. 3. The Draft Document does not provide the City (or any other party) any remedies for a default. For example, if the "Owner" does not provide the "dedicated" spaces or the guests of the Proposed Project are not able to use or find open spaces, what is the remedy?. There are no consequences. 4. It is likely that the Draft Document originated from the City in a form that contemplated an arms-length transaction wherein the "Owner" and the "Grantee" are truly exchanging rent (or something else of value) and each has an incentive to enforce the terms of the agreement. The Draft Document, as it relates to the Proposed Project, is particularly troubling in that we believe that Mr. Holloran has an ownership in and/or management control over both the "Owner" and the "Grantee". As a result, there is no incentive for anyone to enforce the terms and, without the City's right to enforce, the Draft Document is meaningless and is exposed as a hollow paper gesture to give the appearance of satisfying the UDC. 5. To avoid the City being taken advantage of, there should be safeguards included when any Off-Site parking agreement is offered as a means to satisfy the UDC. For example'', I October 30, 2019 Page 3 a. The parties should represent and warrant to the City that there are, in fact, the: designated number of parking spaces available to be dedicated for exclusive use (we do not believe there are 80 spaces a vailahle in the Medical Arts Lot); b. The Owner should represent and warrant to the City that dedicating the parking spaces will not violate any other agreement or any other party's rights (there may he tenants in the Medical Arts Building with rights to that lot inconsistent with the dedication); c. The Grantee should represent and warrant through a certification that the distance between the proposed project and the proposed parking is within the limits set by the City and is accurate; d. The City should be given the right (but not the obligation) to enforce the terns of the lease and force the Owner to provide the spots in perpetuity or fpr so long as the Grantee is in need of the spaces to satisfy the UDC; e. The City should be given meaningful remedies (monetary and injunctive) if the Owner and Grantee elect (or conspire) not to enforce the terms because'without remedies the document is a sham; f. T ere should be an attorney's fee provision whereby the City is protected and can be reimbursed its reasonable attorney's fees if it has to enforce the agreement, and thereby protect the public's rights guaranteed in the UDC; g. I the Grantee wants to avoid building its own parking and use "Off Site" parking, it should provide a copy of the actual lease between the Owner and Grantee to the City for its review (complete with a description of the actual consideration exchanged and how it will vary, if at all, over time); h. Since the ability to use "Off Site" parking to satisfy the UDC impinges on t e public's right to adequate safe and reasonable parking, the authority to t rminate a proposed lease should not rest in one person's hand, but rather be ubject to City Commission approval. If termination is non- controversial, the matter could be on the consent agenda, but the public should have tl e right to weigh in if the Grantee or Owner wants out of the arrangement. I In this way, the public will have public notice, and an opportunity to be heard, if the Grantee wants to terminate the arrangement shortly after City approval. i i i t i i October 30, 2019 Page 4 i. The City should reserve the right to require the Grantee to provide additional parking for a proposed project if it determines that, in fact, the off site parking arrangement is not working or creates an unreasonable or unforeseen ha'•dship or safety concern which may relate to traffic, the need for new infrastructure, danger to pedestrians etc. j, The documents should decide what it actually is. Paragraph 2 of the Draft D cument says it is "an irrevocable easement, right and license" and in paragr ph 3 it says that the document "shall be perpetual, shall run with the land' Later on it says that it can be revoked. In short, is it an easement, or license, or a lease? It would seem that is one of those three, but not all. We appreciate that the City does not typically get involved in private lease arrangements and private parties can strike deals that they deem legally appropriate. However, a developer asking to use an off-site easement/license/lease to satisfy a UDC req irement is asking the City to give up the right to demand the developer build/provide new parking for new construction on site or adjacent. In this regard, the City has the right to ensure that the parking solution is meaningful and long term. The oregoing suggestions are made for that purpose. The Draft Document should not be used to satisfy UDC parking requirements for the Proposed Project. Moreover, t�he City should be careful to prevent the developer of the Medical Arts Building from using (or seeking to undue a version of) the Draft Document as justification for inadequate parking in the future, if it turns out the developer needs additional spaces that have been consumed by the Proposed Project. In other words, the City should not permit the developer of the Medical Arts Building or the Proposed Project to simply "kick the can down the road" and use the Draft Document as n excuse or leverage. Please let us kno if you have any questions. Sincerely, oh man Brian K. Gallik �f 0 C. Clients � I EXHIBIT E KAST ING, KAUFFMAN&MERSEN,P.c. A T T O R N E Y S A T L A W JOHN M.KAUFFMAN 7I6 SOUTH 2Oth AVENUE,SUITE I0I JANE MERSEN BOZEMAN,MONTANA 597I8 DENNIS L.MUNSON TEL:(406)586-4383 FAX:(406)587-787I Lii.TA N.TYRRELL E-MAIL:reception@klmlaw.net JORDAN P.HELVIE SCOTT J.LORESCH KENT M.KASTING,Of Counsel April 17, 2020 VIA EMAIL AND US MAIL Greg Sullivan Bozeman City Attorney 121 N. Rouse Bozeman, MT 59715 Martin Matsen Bozeman Dept. of Community Development 20 East Olive St. P.O. Box 1230 Bozeman, MT 59771-1230 Re: -Proposed ACHotel Site Plan - Application 19078 Dear Mr. Sullivan and Mr. Matsen: Brian Gallik and I have written to you in the past on behalf of our clients' concerns about the inadequacy of the parking to be provided in connection with the proposed AC Hotel in downtown Bozeman. As part of those writing, we wrote to the City Attoxney's office on October 30, 2019 regarding the developer's proposal to satisfy its UDC parking requirements by leasing space across from the Medical Arts Building blocks away from the proposed hotel. In our October 30, 2019 letter we referenced a draft "Off-Site Parking Space License Agreement" we had obtained through a public-records request and noted the problems with the document— as a concept and as to specific terms. We did not receive a response to that letter. Recently the City Attorney provided me a copy of an executed copy of the "Off-Site Parking Space License Agreement" executed on February 26, 2020 by the hotel developer (Straightaway Bozeman Investors, LLC), Medical Arts Building Partners LLC and the City recorded with the Gallatin County Clerk and Recorder as Document No. 2674195. (the "Parking Agreement"). A copy is attached. As noted in our October 30 letter, we believe the developer and Medical.Art Sullivan and Matsen April 17, 2020 Page 2 Partners are controlled/managed by the same person. Despite changes made to the Parking Agreement from the original draft version we obtained, our clients remain concerned that the parking arrangement reflected in the Parking Agreement does not meet the parking needs of a 143-room hotel with amenities in downtown Bozeman. Rather the guests, employees and service providers will be over burdening existing parking spaces and the developer will be allowed to do so without providing any new spaces for its project. Instead, the developer suggests those parking needs will be met blocks away with another building's parking area. More troubling is that while the Parking Agreement in one provision proclaims to be perpetual, another provision allows the private parties to modify or terminate the agreement with the consent of the Director of Community Development and no City Commission involvement. In this way, there would be no public input and the decision would be made without apparent advance notice to us or our clients or the public. On behalf of our clients (who own properties and businesses in downtown Bozeman), as well as Mr. Gallik and me (who own businesses in Bozeman), we request notice of any effort by Straightaway Bozeman Investors, LLC (or its successors) or Medical Arts Building Partners LLC (or its successors) or the City to modify or terminate the Parking Agreement before the City or its employees act upon it. Enclosed you will find self-addressed stamped envelopes for each of your offices to my office and Mr. Gallik's office for that purpose. If we need to provide envelopes or notices to any other City department that we want advance notice of efforts to modify the Parking Agreement, please let Mr. Gallik and me know. Sincerel , John M. Kauffinan Encl. C. Clients (email only)