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HomeMy WebLinkAbout24147 APPROVED staff report CC reconsideration24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 1 of 22 24147; Boutique Hotel Site Plan/Commercial Certificate of Appropriateness with Deviation Application Public Meeting Date: City Commission meeting will be held – Tuesday, August 5, 2025, at 6:00 pm Project Description: Site Plan application proposes a six-story hotel with amenities on a vacant parcel that currently serves as a parking lot. The ground floor includes a hotel lobby, commercial space, and back of house operations. Each subsequent floor includes hotel rooms, and a rooftop bar is proposed on the sixth level. The total number of hotel rooms is 71. Site improvements include sidewalk, streetscape, landscaping, and additional site amenities. The applicant proposes off-site parking to accommodate the required parking. The property is zoned B-3 and is in the Neighborhood Conservation Overlay District (NCOD). The project is located directly adjacent to Bozeman Creek, which requires a 35-foot setback along both sides of the creek per BMC 38.410.100. While the proposed building is located outside of the watercourse setback, the applicant is requesting to allow for up to a 30-foot encroachment into the watercourse setback for open space hardscaping and patio space, a 4-foot awning, and supporting utility infrastructure. Per BMC 38.200.010.A, the City Commission is the review authority where a deviation is more than 20 percent of the standard. A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding zoning regulations and to encourage activity that would contribute to the overall historic character of the community. The criteria for granting deviations from the underlying zoning requirements are outlined in BMC 38.340.070. Project Location: 240 E. Mendenhall St., Bozeman Original Plat, S07, T02 S, R06 E, Block D, Parcel A Plat C-1-H, City of Bozeman, Gallatin County, Montana Staff Finding: The application does conform to standards and criteria and is sufficient for approval. Recommended Motion: Having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the staff findings as presented in the staff report for application 24147 that the application does meet the criteria required for approval and move to approve with conditions the Boutique Hotel application for the deviation requested to allow for encroachment of open space hardscaping, a 4-foot awning, and supporting utility infrastructure into the 35-foot watercourse setback. Report Date: August 7, 2025 Reviewing Staff: Sarah Rosenberg, AICP, Associate Planner Simon Lindley, Project Engineer Agenda Item Type: Action (Quasi-judicial) EXECUTIVE SUMMARY This report is based on the application materials submitted and public comment received to date. The full application and file of record can be viewed digitally at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715, as well as digitally at https://www.bozeman.net/departments/community-development/planning/project-information-portal, select the “Project Documents Folder” link and navigate to application 24147. They are also available in the City’s Laserfische folder and may be accessed through the Community Development viewer. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 2 of 22 Unresolved Issues: There are no unresolved issues with this application. Project Summary: The Department of Community Development received a site plan/commercial certificate of appropriateness with a deviation application on March 25, 2024, proposing a six-story hotel with amenities on a vacant parcel that currently serves as a parking lot. There is a basement that provides covered bicycle parking, storage, and supporting building service infrastructure. The first floor includes a hotel lobby, commercial space, and back of house operations. Each subsequent floor includes hotel rooms, and a rooftop bar is proposed on the sixth level. The total number of hotel rooms is 71. Included with this application is a deviation request to allow for encroachment of structures into the 35- foot watercourse setback along Bozeman Creek. Per 38.410.100, “where a development is crossed by or is adjacent to a watercourse, the developer must mitigate the impacts of the development on the watercourse. This mitigation may not be less restrictive than the requirements of the city floodplain regulations or any other applicable regulation of this chapter. The purpose of this mitigation is bank stabilization; sediment, nutrient and pollution removal; and flood control.” Since the subject property was platted prior to July 10, 2002, the setback along Bozeman creek is 35-feet along both sides of the watercourse. The development proposes hardscaping for the open space, a 4-foot awning, and supporting utility infrastructure to encroach about 30-feet into the watercourse setback along the eastern portion of the property. Per 38.200.010.A.1, where the deviation is for more than 20 percent of the standard, the City Commission is the review authority and must conduct a public hearing for this application. The application must meet the standards for granting deviations in section 38.340.070 of the Unified Development Code. A description and staff evaluation are outlined in this report. This site had a previous site plan application (no. 19445) with deviation request that was approved on March 9, 2020, by the City Commission to allow for encroachment of open space hardscaping and a 4- foot awning into the 35-foot watercourse setback. The project was to develop a six-story mixed-use building with open space along Bozeman Creek. The approval of the application expired. On March 11, 2025, the Development Review Committee (DRC) found the application contained the required application materials with sufficient information for the City to consider the application adequate. The DRC finds that the application does conform to standards and criteria and is sufficient for conditional approval. The public noticing period ran from March 17 to April 15, 2025. The City has received twenty-nine letters of public comment on the application as of the writing of this report. Public comment is accepted until such time that the City Commission closes the public comment period. The City Commission heard this application at its regular meeting on May 20, 2025, and resulted in denial. The City Commission voted to reconsider the application at its regular meeting held on Tuesday, June 24 to a certain date of August 5, 2025. Alternatives: 1. Deny the application based on the Commission’s findings of non-compliance with the applicable criteria contained within the staff report; or 2. Approve the application. 3. Approve the application with the addition of specific conditions based on the Commission’s findings. 4. Continue the public meeting on the application, with specific direction to staff or the applicant to supply additional information or to address specific items. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 3 of 22 Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 1 Unresolved Issues: ................................................................................................................................ 2 Project Summary: .................................................................................................................................. 2 Alternatives: .......................................................................................................................................... 2 SECTION 1 – MAP & PLAN SERIES .................................................................................................... 4 Exhibit 1 – Location and zoning of subject property ............................................................................ 4 Exhibit 2 – Future Land Use Map ......................................................................................................... 5 Exhibit 3 – Site Plan ............................................................................................................................. 6 Exhibit 4 – Watercourse setback ........................................................................................................... 7 Exhibit 5 – Elevations ........................................................................................................................... 8 SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL .................................................... 10 SECTION 3 – CODE REQUIREMENTS .............................................................................................. 10 SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS ...................................................... 11 SECTION 5 – STAFF ANALYSIS AND FINDINGS ........................................................................... 11 BMC 38.230.100 – Plan Review Criteria ........................................................................................... 11 BMC 38.230.080 – Certificate of Appropriateness Criteria ............................................................... 15 BMC 38.250.050 – Deviations ........................................................................................................... 15 Conformance with adopted City of Bozeman Plans ........................................................................... 18 Conclusion .......................................................................................................................................... 19 APPENDIX A – NOTICING AND PUBLIC COMMENT ................................................................... 20 APPENDIX B – RELEVANT MUNICIPAL STATUTES .................................................................... 21 APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF ........................................... 22 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 4 of 22 SECTION 1 – MAP & PLAN SERIES Exhibit 1 – Location and zoning of subject property 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 5 of 22 Exhibit 2 – Future Land Use Map 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 6 of 22 Exhibit 3 – Site Plan 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 7 of 22 Exhibit 4 – Watercourse setback (in red) 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 8 of 22 Exhibit 5 – Elevations 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 9 of 22 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 10 of 22 SECTION 2 – RECOMMENDED CONDITIONS OF APPROVAL Please note that these conditions are in addition to any required code provisions identified in this report. These conditions are specific to this project. Recommended Conditions of Approval: 1. BMC 38.340.010.F. The applicant must consult with a qualified professional, approved by the Director of Community Development, to conduct archeological monitoring or another similar process before and during excavation work. Any items of significance found must be reported and cataloged. A report of the process conducted and the findings following the exploration and monitoring must be submitted to the Community Development Department. 2. BMC 38.340.010.F. The applicant must submit a proposal to the Community Development Department for an on-site installation that recognizes the history and significance of the site. This may include, but is not limited to a sign, artwork, plaque, or other commemorative display. The proposal must specify the design, content, and the intended location on the site. The content must include, at a minimum, the site's history, historic photographs, and recognition of the creek. The applicant is encouraged to work with the Downtown Bozeman Partnership and other appropriate parties to adhere to the Downtown Bozeman Improvement Plan. The proposed installation must be reviewed and approved by the Community Development Department prior to installation and must be in place prior to planning approval of final routing for occupancy. 3. The applicant must ensure the exterior patio is a public-use area (as defined by the International Building Code 2021) that makes exterior spaces available to the general public. 4. Prior to final site plan approval, the applicant must submit additional information to the Community Development Department depicting the concept submitted at the public hearing on August 5, 2025, including the reduction in the patio width and the provision of a natural fines path, for review and approval by the Community Development Director. 5. Prior to final site plan approval, an updated landscape plan must be provided to depict that native vegetation is used within the 35-foot watercourse setback. SECTION 3 – CODE REQUIREMENTS 1. BMC 38.220.020. A. Sec. 38.220.020. - Streambed, streambank and/or wetlands permits. The developer must provide the community development department with a copy of all required streambed, streambank or wetlands permits, or written notification from the appropriate agency that a permit is not required, prior to the commencement of any work on the site 2. BMC 38.240.350. A subdivision exemption application is required to aggregate the underlying lots. The amended plat must be approved and recorded with the Gallatin County Clerk & Recorder prior to final site plan approval. 3. BMC 38.250.060. Prior to final site plan approval, the applicant must pay the departure fee to allow an alternative to the transparency standard on the north elevation. 4. BMC 38.540.070. The use depends on off-site parking to meet parking requirements. The applicant must provide evidence to the Community Development Department of a long-term lease agreement for parking utilization of the off-site location prior to final site plan approval. 5. BMC 38.270.030. The applicant proposes concurrent construction of the building and the infrastructure improvements. The applicant must fulfill the requirements of section 38.270.030 D, BMC prior to the issuance of a building permit for the proposed development or per 38.270.030.C complete construction of all off-site infrastructure first. 6. BMC 38.600.170.C.4 A floodplain permit must be obtained prior to final site plan approval. The floodplain permit application and required materials shall be provided to the City floodplain administrator electronically through the PDox electronic plan review system. 7. BMC 38.600.220.D, that prior to receiving a Certificate of Occupancy, the Applicant must submit a certification from the design engineer or architect that the completed project conforms with the 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 11 of 22 approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for Non- Residential Structures acceptable to the Floodplain Administrator. 8. BMC 38.410.130. The development's estimated average municipal water demand is 8.80 ac-feet. The estimate will be uploaded to the project file. The demand must be offset prior to final site plan approval. To offset the demand by paying cash-in-lieu of water right a fee of $52,801 must be paid prior to final site plan approval. 9. BMC Chapter 40, Article 4. Any work on the site must conform to the approved stormwater permit. 10. BMC 38.410.100. The applicant must work with the Engineering Division on any restoration work beyond the approved landscaping plan. Any additional trees that need to be removed along the creek bed during the construction process must be approved by the City Forester prior to removal. 11. BMC 34.05.060. and 34.05.070. Valet services that involve the elimination of any on-street parking along East Mendenhall Street requires approval from the Parking Commission through the infrastructure review process. SECTION 4 – RECOMMENDATION AND FUTURE ACTIONS The Development Review Committee (DRC) determined the application was adequate review on March 11, 2025. The DRC finds that the application conforms to standards and is sufficient for approval with conditions and code provisions. Furthermore, the DRC finds that the application meets all deviation criteria and findings to support the approval of the request which are outlined below in this staff report. While site plan applications are typically reviewed administratively, because the applicant requests a deviation for more than 20% of the standard, the City Commission retains to itself the review authority and the approval of the entire application requires the approval of the deviation. The City Commission meeting will be held Tuesday, May 20, 2025, at 6:00 pm SECTION 5 – STAFF ANALYSIS AND FINDINGS Analysis and resulting recommendations are based on the entirety of the application materials, municipal codes, standards, plans, public comment, and all other materials available during the review period. Collectively this information is the record of the review. The analysis in this report is a summary of the completed review. The applicant is advised that unmet code provisions, or code provisions that are not specifically listed as conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Applicable Plan Review Criteria – Section 38.230, BMC In considering applications for plan approval, the review authority evaluates the following criteria. This application must comply with all applicable requirements of BMC chapter 38 including overlay district requirements. The staff provides findings analyzed under the following relevant sections of code and applicable plans: • BMC 38.230.100 – Plan Review Criteria • BMC 38.230.080 – Certificate of Appropriateness Criteria • BMC 38.250.050 – Deviations • Conformance with other City adopted plans BMC 38.230.100 – Plan Review Criteria Conformance with City’s adopted Growth Policy (38.100.040.D) The subject property is designated as Traditional Core. The Bozeman 2020 Community Plan states, “the traditional core of Bozeman is the historic downtown. This area has an extensive mutually supportive diversity of uses, a strong pedestrian and multi-modal transportation network, and a rich architectural character. Essential government services, places of public assembly, and open spaces provide the civic 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 12 of 22 and social core of town. Residential development on upper floors is well established. New residential uses should be high density. The area along Main Street should be preserved as a place for high pedestrian activity uses, with strong pedestrian connectivity to other uses on nearby streets. Users are drawn from the entire planning area and beyond. The intensity of development is high with a Floor Area Ratio well over 1. Future development should continue to be intense while providing areas of transition to adjacent areas and preserving the historic character of Main Street.” The application conforms to the Traditional Core category as it proposes a high intensity development. It expands upon the existing activity of downtown. It also utilizes an undeveloped site and promotes pedestrian connectivity. Conformance with Article 2 – Submittal Material Requirements (38.220) The site plan and commercial certificate of appropriateness are met with this project. The project conforms to zoning provisions, community design provisions, and project design provisions. See the analysis below for how the required standard of each article is met. Concurrent Construction has been requested by the applicant to allow simultaneous construction of the proposed building and required supporting infrastructure. The required infrastructure improvements include adjacent improvements that are subject to BMC 38.270.030.D. The requirements of this section including City and DEQ infrastructure review, approval from the City Fire Marshall, execution of an Irrevocable Offer of Dedication, and an acceptable concurrent construction plan, must be met prior to a building permit being issued for the development. Conformance with Article 3 – Zoning Provisions (38.300) The subject property is zoned B-3, Downtown District. “The intent of the downtown B-3 business district is to provide a central area for the community's business, government service and cultural activities with urban residential development as an essential supporting use. The downtown B-3 district should be the area of greatest density of development, intensity of use, and appropriate infill. Design standards reinforcing the area's historical pedestrian-oriented context are very important. This district encourages high volume, pedestrian-oriented uses in ground floor space in the "core area" of the city's central business district, i.e., along Main Street from Grand to Rouse and to the alleys one-half block north and south from Main Street. Lower volume pedestrian uses such as professional offices may locate on ground floor space in the downtown B-3 area outside the above-defined core.” Currently the parcel is vacant and is used as a parking lot. A hotel is a permitted use in the B-3 zone district. The proposed building meets form and intensity standards as follows: Per BMC 38.350.050, elevator and stair penthouses are exempt from height limitations provided that no linear dimension exceed 50 percent of the corresponding street frontage line. These penthouses exceed 4- feet above the allowable height. Mechanical facilities are exempt from height. Conformance with Article 4 – Community Design Provisions (38.400) Setbacks Proposed Allowed Front 3’ Storefront block frontage - See Article 5 analysis below Rear 13’ 0’ Side 1’ 0’ Alley 13’ 5’ Lot Area Proposed Allowed Max lot coverage 49% 100% Building Height Proposed Allowed 70’ 70’ 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 13 of 22 The applicant provided a Traffic Impact Study conducted by 406 Traffic & Transportation Consulting, which was thoroughly evaluated by the Engineering Division and found to satisfy standards for trip generation and level of service evaluations. The development proposes valet service which will eliminate some on-street parking along East Mendenhall Street. Any substantial encroachment involving the elimination of any on-street parking within that area of the B-3 zoning district requires approval from the Parking Commission. Compensation must be provided for each on-street parking space eliminated from the downtown business district parking inventory in accordance City code outlined in BMC 34.05.060- 070. This process is completed during the City’s infrastructure review process which is a separate process from site plan review and is managed by the City’s Engineering Division and requires the Parking Commission’s approval as outlined in code provision number 11. While there is an alley to the south of the building, there is no vehicular access to the building. Parking is proposed to be located off-site. Pedestrian improvements include updating the sidewalk along Mendenhall to be 13 feet wide. This is an infill project on existing lots on an existing block. A subdivision exemption is required to aggregate the underlying lots the lots prior to final site plan approval. The subject property is an infill site with existing infrastructure services the site. The existing 6-inch sewer main along East Mendenhall Street will be upgraded to 8-inch to accommodate the new use. At the City’s current CILWR fee rate, the fee for the project is $52,801. Payment must be made prior to final site plan approval. An on-site storm water maintenance plan and design report was prepared by TD&H. Site improvements include area inlets, roof drain piping, trench drains, subsurface infiltration chambers, and permeable pavers. Bozeman Creek runs through the subject property along the eastern boundary line which requires the development to adhere to watercourse setback provisions outlined in BMC 38.410.100. The setback along Bozeman Creek is 35-feet on both sides. Along the stream bank is a 5-foot non-disturbance zone which will remain in a natural state and be seeded with native seed if necessary. Between the stream bank and open space plaza, the landscaping will be improved which includes preserving existing trees and adding additional landscaping to meet watercourse setback planting requirements. The open space plaza between the landscaped area and building includes hardscaping which encroaches roughly 24-feet into the watercourse setback. Supporting utility infrastructure is located on the southern portion of the property and encroaches roughly 30-feet into the watercourse setback. While the building itself is out of the watercourse setback, the building awning on the east side encroaches 4-feet into the watercourse setback. The Bozeman Municipal Code defines setback as “the space on the same lot with a principal building, which is open and unoccupied from the ground upward or from the ground downward.” So even though the awning is not on the ground, it still encroaches into the setback. A deviation is requested to allow for the encroachment of all these structures into the watercourse setback. See the analysis below on how the criteria is met to satisfy the deviation request. Since this project is a commercial development on less than one acre, no parkland requirements are warranted. Conformance with Article 5 – Project Design The building fronts onto East Mendenhall Street which is designated storefront block frontage meaning that the building and site must be designed in a vibrant and active manner. The building is setback 3-feet from the front property line to accommodate a wider sidewalk. There is a building entrance that faces the street and includes an awning that wraps around the entire perimeter of the building. The applicant requests a departure to allow façade transparency to be 55% where 60% is required. This reduction is based on the façade articulation along the ground floor rather than a flat façade. The intent is 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 14 of 22 still met through the 5% reduction of transparency that still promotes visual interest for pedestrians. This departure meets the criteria and is sufficient for approval. The proposed sidewalk along East Mendenhall Street is widened to 13 feet. Landscaping, street trees, and bike racks are incorporated into the wider sidewalk to enhance the pedestrian experience. The open space plaza to the east of the building incorporates seating and robust landscaping that promotes circulation and amenities for pedestrians. While open space is not required for the project since the parcel is less than one acre, roughly thirty percent of the property incorporates open space area to minimize the impact on the watercourse setback and floodplain while providing a pedestrian amenity. To ensure that the plaza can be enjoyed by all and to support access to Bozeman Creek, condition of approval number 3 requires that the property owner ensure that the east side patio of the building be a public use area as defined in the International Building Code 2021. That code states that a public use area is a term utilized to describe all interior and exterior spaces or rooms that may be occupied by the general public for any amount of time. Spaces that are utilized by the general public may be located in facilities that are publicly or privately owned. Examples include the lobby in an office building, a high-school gymnasium with assembly seating, an open-air stadium, a multipurpose room, an exposition hall, a restaurant dining room, a health club, etc. Trash services are located at the rear of the building along the alley. No screening measures are required for services on the alley. Utility meters are located on the east façade and screened by landscaping. The building meets building design standards. It utilizes durable high-quality materials through limestone veneer, cast stone, and metal cladding. The ground level creates a human-scaled façade pattern through façade articulation features such as windows, entries, weather protection features, and a change in materials. Furthermore, since the building is in the B-3 zone district, it adheres to the NCOD Design Guidelines chapter 4-B which is analyzed above. Parking for the building will be provided off-site through an off-site parking agreement. The development proposes to use the parking lot directly east to accommodate the 46 spaces required for the use. The development takes advantage of the allowable reductions outlined in BMC 38.540.050.C. Prior to final site plan approval, the applicant must provide an executed off-site parking agreement. The required bicycle parking is 10 spaces. The development proposes 5 bike racks along the sidewalk on East Mendenhall Street and 12 covered spaces in a bike room in the basement. The project provides the appropriate landscaping required as outlined in BMC 38.550 including adding grated street trees along East Mendenhall Street, drought tolerant plants, and the use of permanent irrigation. The applicant proposes to do some restoration work along the creek bed which includes the protection of existing trees, the removal of a few, and adding a native seed mixture if necessary. Code provision number 8 requires the applicant communicate with the City if any additional trees will be removed and any additional restoration work needs to be done. All site lighting meets full cutoff standards as required by code. Conformance with Article 6 – Floodplain Regulations (38.600) The Site lies within a FEMA-regulated special flood hazard area for Bozeman Creek, which includes the 100-year floodway and floodplain fringe. The building is located within the floodplain fringe but outside the floodway. Building design features are intended to mitigate the flood potential to both the building and abutting pedestrian passageways. The floodplain regulations in BMC 38.600 allow this particular use but require floodproofing or elevating the building to the base flood elevation (BFE) plus 2 feet. The building’s main elevation is proposed at the BFE plus 2 feet along most of the flood reach. The openings/windows that reside on the north side of the building are proposed to be floodproofed to the BFE plus 2 feet. Areas below the BFE, such as the basement, are allowable as the building is elevated or floodproofed. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 15 of 22 Code Provision 6 requires, per BMC 38.600.170.C.4, that prior to final site plan approval, the Applicant must obtain a floodplain permit. Code Provision 7 requires, per 38.600.220.D, that prior to receiving a Certificate of Occupancy, the Applicant must submit a certification from the design engineer or architect that the completed project conforms with the approved floodplain permit, and a fully completed FEMA Floodproofing Certificate for Non-Residential Structures acceptable to the Floodplain Administrator. BMC 38.230.080 – Certificate of Appropriateness Criteria Conformance with Overlay District Standards (38.340) The proposed project is located within the Neighborhood Conservation Overlay District (NCOD) but is not within a historic district. As there is no building on the site, no demolition review is required. It is reviewed under the classification of new infill and construction that falls under the standards for certificate of appropriateness outlined in BMC 38.340.050 and the NCOD Design Guidelines, specifically chapter 4B which applies to properties zoned B-3 and outside of the Main Street Historic District. The building and site design meets the standards conforms to this section. The area around the Main Street Historic District should accommodate compatible contemporary development of greater height and density. This project provides density that meets the goals and objectives of the Downtown Bozeman Improvement Plan. The building design uses a combination of materials such as limestone veneer and metal and is articulated through façade plane changes and the use of awnings and windows along the street facing and open space facades. To further incorporate into the downtown business district, the use of a flat roof line is used. The site design creates a strong connection for pedestrians by incorporating a wide sidewalk along East Mendenhall Street, a visible and publicly accessible open space along Bozeman Creek, and a variety of different landscaping. BMC 38.250.050 – Deviations Conformance for Granting Deviations (38.340.070) The subject property is located directly adjacent to Bozeman Creek which requires a 35-foot setback along both sides of the creek per BMC 38.410.100. Section 38.410.100.A.1.a.(2) states that “no fence, residential or commercial structure, fill material, parking or other similar improvements shall be located within required watercourse setback.” Bozeman Creek runs along the east boundary of the property and the watercourse setback encroaches 35-feet into the parcel. The development proposes open space hardscaping, a 4-foot awning, and supporting utility infrastructure to be in the watercourse setback. The open space plaza encroaches roughly 24-feet into the watercourse setback. Supporting utility infrastructure is located on the southern portion of the property and encroaches roughly 30-feet into the watercourse setback. While the building does not encroach into the setback, the Bozeman Municipal Code defines setback, in the relevant portion, as “the space on the same lot with a principal building, which is open and unoccupied from the ground upward or from the ground downward.” Therefore, the proposed awning encroaches 4-feet into the watercourse setback and is not allowed under BMC 38.410.100 absent an approved deviation. A deviation can be requested for properties within the NCOD due to most of historic Bozeman preceding zoning regulations and to encourage activity that would contribute to the overall historic character of the community. Pursuant to Section 38.340.070 BMC, there are three criteria for granting deviations from the underlying zoning requirement. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 16 of 22 1. Modification must be more historically appropriate for the building and site in question and the adjacent properties, as determined by the standards in Section 38.340.050, than would be achieved under a literal enforcement of this chapter. Bozeman Creek was channelized through the center of town back in the early days of the area’s settlement, as evidenced by Sanborn maps dating from 1891. It was narrowed, straightened, and banks armored with rock, concrete, and other materials. Since the realignment, Bozeman Creek was diverted to be utilized for the built environment. Structures were built up to and over the creek. On this very parcel, the pattern of development shows that structures were built over the creek and next to it as depicted in the figures below. Figure 1: Original City Plat with Bozeman Creek in natural flowing state. Figure 2: 1884 Sanborn Map depicting channelized Bozeman Creek Project site in orange box. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 17 of 22 ‘ Figure 3: 1942 Aerial of Downtown Bozeman Although the proposed open space and building awning do not replicate what was traditional to the construction or style of the early settlement of Bozeman, the DRC finds that the traditional placement of structures close to the creek is historically appropriate to the site. Bozeman Creek was forced to not meander through downtown, but instead to be utilized for industry and more recently recreation. Portions of the retaining walls which form the embankments for segments of the creek are former rubble foundations of structures no longer present. Furthermore, along much of the historic development pattern along Bozeman Creek, there are structures that abut up against it or are directly above Bozeman Creek. To the south of the subject property, 311 E. Main (Bar IX) cantilevers over the creek and has an outdoor patio that is adjacent to Bozeman Creek. To the north, 317 E. Mendenhall (Fresco restaurant) and 121 N. Rouse (City Hall) both have buildings that front very closely to the creek within the Bozeman Creek watercourse setback. Figure 4: Back of Bar IX building, date unknown Figure 5: Back of Bar IX building, present day 2. Modifications will have minimal adverse effects on abutting properties or the permitted uses thereof. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 18 of 22 The proposed deviations will have minimal adverse effects on neighboring properties and their permitted uses. The planned open space presents an opportunity to enhance both the creek and adjacent properties, offering guests and the public a park-like setting in Downtown Bozeman along Bozeman Creek. As noted, many nearby properties are built up to or over the creek, and this development aligns with the established pattern and character of the area while maintaining minimal adverse effects on neighboring properties. 3. Modifications must assure the protection of the public health, safety and general welfare. Approvals may be conditioned to assure such protection, and such conditions may include a time period within which alterations will be completed; landscaping and maintenance thereof; architectural, site plan and landscape design modifications, or any other conditions in conformity with the intent and purpose set forth in this part 1. The DRC has identified no significant barriers to public health, safety and general welfare from the proposed deviations. The restoration and rehabilitation activity along Bozeman Creek will affect how people interact with the creek. Currently, Bozeman Creek is overgrown, walled and/or fenced throughout Downtown. The requested deviation will improve the open space adjacent to the creek and revitalize the waterway by making it visible to the public and highlighting it as a unique amenity to Bozeman. The enhancement of the open space will allow the public to utilize the area adjacent to Bozeman Creek. A proposed railing and retaining wall will alleviate public safety concerns regarding public access to the creek. The permeable pavers will help reduce storm water runoff and restore a functioning creek to enhance public health. The existing landscaping is overgrown and will be cleaned up to further promote the health of the stream bank. The protruding awning does not have any sort of impact on the public health, safety, and general welfare but rather provides sheltered relief within the open space. Conformance with adopted City of Bozeman Plans In addition to the deviation criteria above, the Uniform Development Code (chapter 38 BMC) requires conformance with specific plans adopted by the City of Bozeman. The Downtown Bozeman Improvement Plan and Downtown Creek Enhancement Plan are applicable to this project. Staff has made three conditions of approval that are supported by these plans to help achieve the goals of enhancing and engaging Bozeman Creek. In 2012, the City of Bozeman developed the Downtown Creek Enhancement Plan (DCEP), which created goals, objectives, and strategies to assist in enhancing Bozeman Creek through downtown such as creating ways to inform residents about the creek from its ecological services to the past and present importance to the community. The DCEP also emphasizes on restoration of the creek to create a more functioning stream ecosystem that can be enjoyed by all. The Downtown Bozeman Improvement Plan (DBIP) was adopted in 2019 by the City Commission. One of the themes of the DBIP is to connect to nature and culture by enhancing the natural systems and increasing public spaces. Bozeman Creek flows right through downtown, but it is piped, hidden under roads and parking lots. Much of the banks of the creek are largely overgrown or fenced. The goal of enhancing Bozeman Creek is to reveal the creek, which would help create places to linger and points to interact with the creek. Revealing the creek can also help produce strategies that help find healthier ways for the natural waterways to filter storm water. Based on the goals and objectives of these two plans, the DRC has proposed three conditions of approval to help achieve the goals of enhancing and engaging Bozeman Creek. The requested deviation to allow for encroachment into the watercourse setback will further assist in achieving these goals. The enhanced open space creates points of access to Bozeman Creek’s edge and allows the public to experience the waterways. To ensure that the public can experience the creek, condition of approval number three requires a public access easement to be created for the open space area that fronts onto Bozeman Creek. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 19 of 22 Both plans emphasize creating some sort of commemorative display along the creek to provide educational opportunities on the history and ecological service the creek provides. Condition of approval number two notes that the applicant must create a commemorative display that highlights a variety of content for the public to view. These sorts of displays are already occurring along Bozeman Creek such as the Revitalize Relatives art installation and demonstration garden outside of City Hall and the restoration of the creek in Bogert Park that is highlighted through educational signage. Figure 6: Revitalize Relatives Art Installation outside of City Hall Figure 7: Demonstration Garden outside of City Hall Figure 8: Restoration of Bozeman Creek in Bogert Park Figure 9: Restoration of Bozeman Creek in Bogert Park Condition number one requires the applicant to conduct archeological monitoring or another similar technique for the site before and during construction to ensure that if there are any artifacts that are found that they be reported and cataloged, and to provide a report to the City of the process and findings following initial construction. Prior to when white settlers came to this area, Native Americans relied on the abundant resources of the valley, including this creek. When white settlers came to this area and settled Bozeman, this area along East Mendenhall Street was considered Bozeman’s Red Light District. An archeological dig or like process could discover artifacts that may bring forth relevant historical information about this area. Conclusion The Development Review Committee finds that the application conforms with the site plan review criteria, certificate of appropriateness criteria, and meets the criteria for granting the deviation for encroachment into the watercourse setback and finds the application sufficient for approval. If the City Commission denies the deviation request, the applicant will have to apply for a new site plan application that does not have anything located in the watercourse setback per the pre-2002 watercourse setback BMC standard. 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 20 of 22 APPENDIX A – NOTICING AND PUBLIC COMMENT Notice was provided at least 15 and not more than 45 days prior to the City Commission public meeting per BMC 38.220.420. The City scheduled public notice for this application on March 14, 2025. The applicant posted public notice on the subject property on March 14, 2025. The applicant sent public notice to physically adjacent landowners of record within 200-feet of the subject property via first class mail on March 14, 2025. It was also posted in the Bozeman Daily Chronicle on March 29 and April 3, 2025. On April 15, 2025, the City Commission continued the review of this application to May 20, 2025. No additional project notice was required at that time as the project was continued to a date certain for review. The City has received twenty nine public comments as of the writing of this staff report. A link to the public comment received can be found here: https://weblink.bozeman.net/WebLink/Browse.aspx?id=297513&dbid=0&repo=BOZEMAN The public comments not in favor of the project commented on the following issues. The comments are summarized by topic with staff response below: Not in favor of a reduced water course setback. The code includes a deviation process to grant a reduced setback for this property as this property is within the Neighborhood Conservation Overlay District. The findings in the staff report conclude that the criteria have been met in order for the deviation to be approved. Not in favor of the use of the adjacent parking lot for off-site parking. The code allows the proposed use of off-site parking for a project. The code includes criteria that must be met in order for the off-site parking to be approved. The findings in the staff report conclude that the criteria can be met in order for the off-site parking to be approved. A code provision from this code section is included in the approval requirements for the project. It requires that an executed long term parking agreement for the proposed offsite parking be provided to the Community Development Department prior to final site plan approval for the Boutique Hotel. Final site plan approval is required prior to building permit issuance for the construction of the hotel. There is an existing ten year long term lease on this parking area that expires in 2027 related to the Bozeman Hotel Conditional Use Permit for on premises consumption of alcohol. If this project were to get an executed long term parking agreement for the current parking area leased by the Bozeman Hotel, it would not place the Bozeman Hotel Conditional Use Permit out of compliance with its approval as it satisfied the long term lease agreement accepted by the City Commission and the Director of Community Development at the time the conditional use permit was granted. There is nothing in the code that directs the property owner of the parking lot to lease to one individual/party or another. Both the Bozeman Hotel and the Boutique Hotel can negotiate for the agreement to use the parking lot for off-site parking as allowed by the code. Loss of parking used by existing downtown business. The Bozeman growth policy, Downtown Improvement Plan, and the development code support the infill and redevelopment of existing parking areas within the City. The code does not require a district wide analysis of parking with an individual site plan application. The code requires that an individual project must provide an analysis of the parking demand for the proposed use of the property. The parking must be accounted for according to code requirements that exist at the time that the application is deemed adequate. As long as the proposed project meets the required parking by either providing it on site or offsite according to the requirements of the code the project is sufficient for approval by the review authority. The need for a parking analysis for the general area. The City has conducted a downtown parking plan. There are strategies to manage parking downtown provided in that plan. The development code does not require that an individual development application like the Boutique Hotel to implement the City’s parking plan other than complying with the development standards within the development code. The 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 21 of 22 staff report finds that the application can meet the requirements of the code with the proposed conditions and code provisions provided in the recommendation for approval. That a 310 and 404 permit is required for the construction. The applicant states that these permits are not required. The City has requested that the applicant confirm this prior to construction. A code provision has been included in the recommended code provision that requires that these permits be provided to the City if they are required. The code does not require that these permits be provided prior to preliminary approval. Reduced access to Bozeman Creek. This project will enhance access to Bozeman Creek. There is not current legal access to Bozeman Creek on this property. A condition of approval is proposed that will require the property owner to ensure access to the patio area of the east side of the project as a public-use area (as defined by the International Building Code 2021) that makes exterior spaces available to the general public. Encroachment will impede flood waters. A separate flood plain permit related to the encroachment is required by the code to be granted that analyzes the impact of the proposed encroachment against the City’s floodplain regulations. That permit has been applied for and is under processing by the City’s floodplain manager. A code provision is provided in the staff report related to this issue. The project is not the best ecological outcome for Bozeman Creek. This is not required by the code. There are competing interests provided in the Bozeman growth policy and development code. A property owner may propose development on property that only complies with development standards. The development standards do not require a best ecological outcome for a property nor is that defined in either Bozeman’s policy documents or development code. The public comments in favor of the project commented on the following issues: The project will improve access to Bozeman Creek. The quality of the project will improve Downtown Bozeman. The project will add value to Downtown Bozeman. Support for archaeological monitoring conditions and requirements. APPENDIX B – RELEVANT MUNICIPAL STATUTES Bozeman Municipal Code Section 348.340.070 – Deviations from underlying zoning requirements Because the development of much of historic Bozeman preceded zoning, subdivision and construction regulations, some buildings within the conservation district do not conform to contemporary zoning standards. In order to encourage restoration, rehabilitation and appropriate new construction activity that would contribute to the overall historic character of the community, deviations from underlying zoning requirements may be granted as described in division 38.250 of this chapter. The criteria for granting deviations from the underlying zoning requirements are: 1. Modifications must be more historically appropriate for the building and site in question and the adjacent properties, as determined by the standards in section 38.340.050, than would be achieved under a literal enforcement of this chapter; 2. Modifications will have minimal adverse effects on abutting properties or the permitted uses thereof; and 3. Modifications must assure the protection of the public health, safety and general welfare. Approvals may be conditioned to assure such protection, and such conditions may include a time period within which alterations will be completed; landscaping and maintenance thereof; 24147 Staff Report for Boutique Hotel Site Plan/CCOA/Deviation Page 22 of 22 architectural, site plan and landscape design modifications, or any other conditions in conformity with the intent and purpose set forth in this part 1. APPENDIX C – OWNER INFORMATION AND REVIEWING STAFF Owner: Paine Group, INC, 402 East Main Street, Suite 3, Bozeman, MT 59715 Applicant/Representative: Intrinsik Architecture, 106 E. Babcock, Suite 1A, Bozeman, MT 59715 Report by: Sarah Rosenberg, AICP, Associate Planner; Simon Lindley, Engineer.