HomeMy WebLinkAboutPublic Hearing to determine whether real property at 106 East Mendenhall, Carnegie Parking Lot is necessary for City Business.pdf1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development and Community
Relations
Paul Burns, Parking Manager
Chris Saunders, Assistant Director of Planning and Community
Development
SUBJECT: Public Hearing to determine whether real property owned by the City of
Bozeman located at 106 East Mendenhall Street, known as the Carnegie parking lot, is necessary
for the conduct of City business or the preservation of its property and direction to staff.
MEETING DATE: June 13, 2011
AGENDA ITEM TYPE: Action (2/3 vote of the Commission required)
INTRODUCTION:
On May 2, 2011, the City Commission adopted a motion to direct staff to bring this public
hearing before the Commission. At that time, the Commission’s motion specifically stated that
should the Commission make “a future determination that the Carnegie parking lot is no longer
necessary for the conduct of City business” then a letter of intent with the CATELLUS GROUP,
LLC would be signed by the City Manager. Staff recommends that should the Commission
determine in the affirmative that the Carnegie parking lot is no longer necessary for the conduct
of the City business and also determine that a request for proposals (RFP) is the preferred
mechanism for moving forward with the disposition and development of the subject property, as
explained herein, that the Commission, by motion, directly supersede the May 2, 2011 motion.
As such, we provide specific suggested language for such a motion below.
It is important to note that the decision whether this real property is necessary for the
conduct of the city’s business or the preservation of its property is NOT a final decision on
the sale of the property. Whichever method of disposition the City Commission determines
appropriate, i.e. negotiated sale or request for proposals, will require several additional
steps including, at a minimum, the adoption of an ordinance approving a purchase and sale
agreement with all corresponding opportunities for public involvement.
RECOMMENDATION:
Staff recommends the Commission hold a public hearing, consider this staff memorandum,
written and spoken public testimony and the recommendation of the Parking Commission. We
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recommend the Commission, by a two-third majority of the Commission (i.e. four affirmative
votes), determine:
1) The Carnegie parking lot is no longer necessary for the conduct of city business or the
preservation of city property;
2) The public interest will be further by disposition and development of the subject
property;
3) That city staff should obtain a certified real estate appraisal of the subject property; and
4) That city staff should draft a Request for Proposals (RFP) requesting private entities
propose terms of purchase including a specific proposal for future development of the
property to be reviewed by the Commission at a later date.
SUGGESTED MOTIONS:
Main motion: Having conducted a public hearing, considered written and spoken public
testimony, the recommendation of the Parking Commission and based on the findings contained
in the staff memorandum, findings provided by the Parking Commission and findings articulated
by the Commission during discussion, I hereby move:
1) That the real property known as the Carnegie parking lot (lots 17-A, 18, 19, 20, 21, and
22 of Block E of the Original Townsite of Bozeman, Montana) located at 106 East
Mendenhall is no longer necessary for the conduct of city of Bozeman business or the
preservation of city of Bozeman property and that sale and development of the real
property by a private entity, in compliance with adopted city plans, is in the public
interest;
2) That any motion made by the Commission on May 2, 2011 regarding this property or the
proposed sale of is superseded in its entirety by this motion; and
3) That the staff is hereby directed to proceed with a request for proposals process that could
authorize the sale of the Carnegie parking lot to the entity whose proposal satisfies all
legal requirements for the sale of city real property and whose development proposal the
Commission determines best fulfills the objectives of the city’s 2010 Community Plan,
its Economic Development Plan, and the Downtown Improvement Plan.
If the Commission passes the above motion, we suggest you also consider the following motions:
1) Move to direct staff to draft a Request for Proposal for review by the City Commission
no later than Monday, September 12, 2011;
2) Direct staff to immediately order and obtain a certified real estate appraisal for the
Carnegie parking lot to be paid out of the city of Bozeman’s parking enterprise fund; and
3) Should the Commission approve a submitted sale and development proposal and
eventually agree to sell the Carnegie parking lot, all proceeds from the sale of the
property be deposited with the city of Bozeman’s parking enterprise fund for the
purposes of administering and enhancing parking opportunities in downtown Bozeman.
AUTHORITY TO SELL REAL PROPERTY:
The City Commission has authority over property owned by the city pursuant to Chapter 2.05 of
the Bozeman Municipal Code (BMC) (Attachment 1). This chapter was created by Ordinance
1658 (2006) and later amended by Ordinances 1683 (2006) and 1713 (2007). The BMC requires
the following when the city of Bozeman sells real property:
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1) The city must conduct a public hearing and determine by a two-thirds vote of all
members of the Commission that any real property owned by the city is “not needed for
public use, or that the public interest may be furthered…” (2.05.040). In addition, section
2.05.030 authorizes the City Commission to sell property “however acquired” that is “not
necessary to the conduct of City business or the preservation of its property.”;
2) The city may sell property using several listed methods: bid, auction with reserve, or
negotiated sale or exchange, 2.05.040;
3) The city must conduct an appraisal of the property prior to its sale (2.05.040 and
2.05.060) and the appraisal must have been conducted within one year of the sale
(2.05.050.A) and the sale price cannot be less than 90% of the appraised value
(2.05.050.B);
4) The City Commission may deposit the proceeds from the sale “in any account that is in
the best interest of the city.” 2.05.070; and
5) The sale of real property must be approved by an ordinance. Bozeman Charter, Sect.
2.11(5).
BACKGROUND AND FINDINGS:
I. Process to Date:
The Carnegie parking lot is located on the corner of North Black and East Mendenhall at 106
East Mendenhall (Attachment 2). The lot contains 71 parking spaces. The property was
purchased by the City of Bozeman in 1976 (Attachments 3 & 4). Additionally, the Carnegie
parking lot is located directly east, across North Black Avenue, from Bozeman’s five-story
(including the basement level), 435 space parking structure, Bridger Park Downtown.
On April 15, 2011, Bozeman City Manager Chris Kukulski received a letter of intent (LOI) “for
the purchase of [the] Parking lot at 106 E. Mendenhall,” known as the Carnegie parking lot
(Attachment 5). In accordance with established procedures, the LOI was placed on a
Commission agenda for acknowledgement and direction from the governing body.
On May 2, 2011, the City Commission conducted a public hearing to consider the LOI from
CATELLUS GROUP, LLC for purchase of the Carnegie parking lot and determined the
following (Attachment 6):
1) It was moved and seconded to acknowledge receipt of the CATTELUS letter of intent;
2) It was moved and seconded to authorize the City Manager to sign the CATELLUS letter
of intent “[o]nly if a future determination is made by the City that the Carnegie parking
lot is no longer necessary for the conduct of City business; and
3) It was moved and seconded that should the [Carnegie parking lot] be considered surplus
by the City that the City Manager order an appraisal of the lot.
Each motion passed 5-0.
On May 9, 2011, the City conducted a public forum and information and listening session in the
City Commission meeting room with businesses and property owners surrounding the Carnegie
parking lot. Approximately 25 – 30 business and property owners, staff and elected officials
participated in the discussion (Attachment 7).
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The majority of property and business owners present at the meeting expressed concern that
disposing of the subject property may negatively impact their business due to the proposed
displacement of public parking at the Carnegie parking lot. There was some support for the sale
of the Carnegie lot for a higher and better use than that of a surface parking lot and still other
attendees expressed a great deal of interest but had no recommendation at that time.
On May 11, 2011, the Bozeman Parking Commission met in the City Commission meeting room
at its regularly scheduled monthly meeting wherein the Parking Commission found by a vote of
5 – 1 (with one recusal) that there is a higher and better economic use and a greater benefit to the
downtown area for the Carnegie parking lot than surface parking due to the amount of available
parking in the vicinity of this lot, particularly at the Bridger Park Downtown, which currently has the
capacity to replace removal of the Carnegie lot spaces. Accordingly, the Parking Commission found
that the Carnegie parking lot is not needed to provide public parking (Attachment 8).
II. Parking Considerations:
The subject property is currently being used as a surface parking lot with 71 public parking
spaces; thus, a determination of whether the property is necessary for conduct of city business or
the preservation of its property, or whether development of the parcel into something other than a
parking facility is in the public interest, necessarily requires a determination of how this parking
facility fits into the overall parking program in downtown Bozeman. In analyzing these criteria,
two important factors should be considered. First, the city must examine data regarding the
Carnegie parking lot’s current use and the relationship of this surface parking lot to overall
parking within the vicinity, especially considering the adjacency of the Bridger Park Downtown
parking garage. Second, existing policies of the Parking Commission should be considered in the
context of supporting economic development and ensuring the highest and best use for properties
under Parking Commission jurisdiction.
Bridger Park Downtown, the city-owned and Parking Commission-operated municipal parking
structure, is located directly west of the Carnegie parking lot, across Black Avenue. Bridger
Park Downtown contains 435 parking spaces. The first two hours of parking in the garage are
free and a $1.00 per hour fee is assessed thereafter. Additionally, monthly and annual parking
passes are available for $40 or $50 per month. As of May, 2011, there are 174 pass holders.
In 2010, a parking study of downtown Bozeman was authorized by the Parking Commission.
The intent of the Downtown Parking Study, used by both the Parking Commission and
Downtown Bozeman Partnership, is to inform future decisions about parking management in the
downtown district. The study findings were released in February, 2011. The study shows that
occupancy in Bridger Park Downtown is at a maximum from 12:00 pm to 1:00 pm and the early
afternoon hours at those times the garage is at approximately 32% of capacity (approximately
139 spaces utilized). With 435 total parking spaces, Bridger Park Downtown can accommodate
hundreds more users each day, including at these peak capacity times. In fact, the garage has
reached full capacity on only one occasion, the 2010 Christmas Stroll. Further, concerning the
downtown core, the parking study’s executive summary states, “… the demand calculations
indicated the existence of a parking surplus which provides headroom for future downtown
growth.”
The parking study found that in the block that contains the Carnegie parking lot there is currently
a surplus of 85 public and private parking spaces on streets, in alleys, and in private and public
lots. The block directly west of the Carnegie parking lot (bordered by East Mendenhall Street,
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East Main Street, North Black Avenue, and North Tracy Avenue) features Bridger Park
Downtown. The parking study found that block currently has a surplus of 321 public and private
spaces. Combined, these two blocks have a surplus of 406 spaces.
Specifically, Block 1016 [Bridger Park Downtown] is bordered by Mendenhall St., Black Ave.,
Main St. and Tracy Ave. on its north, east, south and west sides, respectively. Table 5-3, below,
presents both the number of vehicles parked during each observation period on Wednesday,
August 11 and Saturday, September 11, 2010, as well as the resulting occupancy rate for the
block. Block 1016 had a total of 479 parking spaces, including 435 stalls in the city’s parking
garage. Similar to the other block groups examined thus far, block 1016 saw a gradual increase
in occupancy rates throughout the morning and culminating at approximately noon. Interestingly,
occupancy rates following these peaks fell steadily throughout the afternoon, reaching levels
comparable to those observed during the early morning period. The nature of this trend seems to
indicate that the parking on this block (on weekdays) is predominantly work-related, as
evidenced by the drop in occupancy following normal business hours. On weekends, occupancy
on this block was quite low. Of course, the observed number of vehicles and resulting occupancy
rates all appear lower given the large parking capacity contained within the block itself. Note that
the occupancy rates observed on this block are lower than those observed elsewhere due to the
inclusion of the parking garage stalls in this analysis. This is illustrated in Figure 5-3 from the
Parking Study, page 45:
Likewise, Block 1017 [Carnegie parking lot] is bordered by Mendenhall St., Bozeman Ave.,
Main St. and Black Ave. on its north, east, south and west sides, respectively. Table 5-4, below,
presents both the number of vehicles parked during each observation period on Wednesday,
August 11 and Saturday, September 11, 2010, as well as the resulting occupancy rates for this
block. Block 1017 had a total of 183 parking spaces, including 73 stalls in the city-owned
Carnegie parking lot. Similar to the other block groups, Block 1017 saw a gradual increase in
occupancy rates throughout the morning and culminating at approximately 12:30 p.m.
Occupancy rates following these peaks fell steadily throughout the afternoon, before once again
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climbing briefly in the early evening (7:00 hour). This is illustrated in Figure 5-4 from the
Parking Study, page 43:
Similar to the block with the Bridger Park Downtown, the block that contains the Carnegie
parking lot has a surplus of parking spaces, even during the peak hours of occupancy.
If the 71 spaces in the Carnegie parking lot are removed from the parking inventory, there
remains a surplus of 335 spaces in these two blocks (blocks 1016 and 1017). Even with adding
the number of lots contained in the Carnegie lot, the considerable parking capacity of Bridger
Park Downtown could most likely, depending on the nature of the development, accommodate a
hotel or other appropriate commercial, residential or mixed use development on the Carnegie
parking lot, as suggested in the DBIP.
In addition to the above, the Bozeman Parking Commission’s Policy Guidelines state the Parking
Commission “supports projects that bring vitality and energy to its parking districts … The BPC
will consider supporting projects that constitute a significant economic benefit for the downtown
area while being consistent with the guidelines of the Bozeman Community Plan; the Downtown
Improvement Plan; and the mission, goals, and policy guidelines established herein”
(Attachment 9).
Prior to the commissioning of the Downtown Bozeman Parking Study, the Parking Commission
endorsed the Downtown Bozeman Improvement Plan (DBIP) and presented a resolution to the
City Commission in support of the plan’s adoption. The DBIP specifically states that that infill,
including residential development, boutique hotel(s) or other mixed use development along
Mendenhall Street should be a priority and the parking study supports redevelopment
considerations in the area of the Carnegie lot by demonstrating a surplus of parking spaces in this
vicinity due to the proximity of the Bridger Park Downtown parking garage.
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Thus, based on the 2010 Parking Study, the Bozeman Parking Commission (BPC) findings
that “there is a higher and better economic use and a greater benefit to the downtown area
for the Carnegie parking lot than surface parking due to the amount of available parking
in the vicinity of this lot, particularly at the Bridger Park Downtown, which currently has
the capacity to replace removal of the Carnegie lot spaces” and the Parking Commission
Policy Guidelines which support projects that bring vitality and energy to its parking
districts and constitute a significant economic benefit for the downtown area, the Carnegie
lot is no longer needed for the purposes of public parking and the public interest will be
furthered by the disposition of the property for redevelopment.
III. Regulatory and Planning Considerations:
Recent changes to the city’s regulatory parking requirements and overall planning consideration
also affect whether the property is no longer necessary for parking or the preservation of city
property and whether development of this property is in the public interest. The City’s parking
requirements are contained in Chapter 18.46 of the BMC. The B-3, Central Business district, the
location and service area of the subject property, has its own specific parking requirements and
the number of parking spaces required is significantly less than elsewhere in Bozeman. This
special treatment of parking requirements for the Downtown core reflects the unique physical
development pattern and mix of uses in downtown Bozeman. However, the City Commission
has determined that the appropriate requirement is not zero; new development must provide
additional parking. The City allows the requirement for parking to be met on-site, through the
joint use of parking facilities with other businesses, off-site up to 1,000 feet away, or in some
circumstances a payment in lieu of parking may be made. This allows great flexibility in finding
ways to meet the requirement.
The Bozeman Community Plan (BCP), the City’s growth policy, provides policy guidance and
aspirations for the community in many areas. The plan supports infill development, quality urban
design, multi-modal transportation, and support for the downtown. This can be readily seen in
chapters 3 and 4 of the Plan. In addition, the Downtown Bozeman Improvement Plan (DBIP) is a
neighborhood plan under the overall guidance of the growth policy. The DBIP looks specifically
at the downtown area and provides several suggestions relevant to the issues of managing
parking and encouraging redevelopment of underutilized sites. The City Commission recently
adopted several amendments to Chapter 18.46 of the BMC to adjust parking requirements in the
B-3 zoning district. The recently completed parking study was an implementation action from
the Next Steps Matrix of the DBIP, see page 45 of the DBIP.
Pertinent objectives from the Bozeman Community Plan:
1) Objective LU-1.4: Provide for and support infill development and redevelopment which
provides additional density of use while respecting the context of the existing
development which surrounds it. Respect for context does not automatically prohibit
difference in scale or design.
2) Objective LU-3.2: Encourage the use and redevelopment of underutilized and brownfield
sites to provide employment and housing which will help to maintain the vibrancy and
vitality of the Historic Core area.
3) Objective LU-4.6: All mixed use areas should be developed on a grid of connectivity,
including streets, alleys, driveways, and parking areas that contain multimodal facilities
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and a high level of connectivity to adjacent development. Shared use, underground, or
other structured parking is recommended to reduce surface parking area.
4) Objective C-2.5: Explore and encourage innovative parking solutions for both residential
and commercial projects including parking best practices, expanded parking districts,
cash in lieu of parking, and design guidelines for structured parking, page 4-4, Bozeman
Community Plan.
In addition to the above considerations regarding the contribution of the Carnegie parking lot to
the overall parking equation in this area of downtown Bozeman, recent changes to the UDO and
established city policies indicate this facility is not necessary to the conduct of city business
because parking demand has changed and can be accommodated under the UDO in numerous
ways. The various options identified below can be used in combination or singly.
1) Residential:
a. Section 18.46.040.A.2.b which provides for reduced parking for residential uses
in mixed use buildings.
b. Section 18.46.040.A.2.c which allows for car sharing to replace on-site parking at
a 5:1 ratio.
c. Section 18.46.040.A.2.d allows for reduced parking when a developed and
serviced transit stop is available within 800 feet of a development.
2) Non-Residential:
a. Section 18.46.040.B.3.a the minimum required parking may be reduced for
various land uses based on a percentage specified in the section.
b. Section 18.46.040.B.3.c allows for reduced parking when a developed and
serviced transit stop (such as exists at the Bridger Park facility) is available within
800 feet of a development.
c. Section 18.46.040.B.3.d allows for reduced parking when certain structured
parking (such as exists t the Bridger Park facility) is available within 800 feet of a
development.
d. Section 18.46.040.B.3.e no parking is required for the first 3,000 square feet of
building in the B-3 district.
e. Section 18.46.040.C.2 allows cash-in-lieu of parking to be provided.
f. Section 18.46.050 allows for multiple land uses to share a parking facility through
a joint use agreement. This is typically for uses with off-set periods of maximum
demand like restaurants and offices.
g. Section 18.46.060 allows for parking to be provided off-site from a development
up to 1,000 feet away.
Thus, it is clear that based on the Bozeman Community Plan and the Downtown Bozeman
Improvement Plan the property is not necessary to facilitate current or future parking
demand and the public interest would be furthered were the Carnegie parking lot sold for
development from a surface parking lot adjacent a municipal parking structure into a
higher and better use.
IV. Economic Development Considerations:
Redevelopment of downtown property to its highest and best use is consistent with stated
Commission goals and objectives as demonstrated in the plans and policies provided in
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ADDITIONAL REFRENCES AND RESOURCES listed below. Economic development via
infill development (achieving highest and best use), job creation, industry diversification and
ongoing programmatic improvements, i.e. streamlining internal processes, establishment of a
Bozeman Economic Development Summit, creation of the Gallatin Business Resource Network,
among others, are identified as high priorities by the Bozeman City Commission and all work
together to further the public interest.
Specific references related to downtown infill development from three primary planning
documents include:
1) The 2011 – 2012 City Commission Adopted Work Plan/Policy Initiatives. This
document is designed to guide and inform City staff and the public of the Commission
priorities and preferred initiatives over the next 12 months. Priority 1c of the
Commission work plan includes the facilitation of the development of a downtown hotel
as identified in the downtown development plan [DBIP];
2) Bozeman’s adopted Downtown Bozeman Improvement Plan intends to guide decisions
by public bodies, private businesses, and non-profit organizations for at least ten years.
The DBIP provides a solid framework to move forward and solidify downtown
Bozeman’s place in the community and the region. Page 37 of the DBIP includes a
discussion of the utility of adding a boutique hotel or hotels to the downtown landscape.
3) Bozeman’s adopted Economic Development Plan (EDP) endeavors to “address the
community’s most pressing economic development needs and to come together behind a
strategy for progressive and sustainable change. The benefit that will come from
successful implementation of the goals and strategies contained in this Plan will
positively impact the operations of all Bozeman businesses (both large and small) and the
lives of all Bozeman residents. This Plan will enable Bozeman to be a premier city in the
Rocky Mountain west that recognized early the need to support economic development to
maintain its high quality of life.”
Additionally, EDP Goals and Strategies 2b, 4c, 4g and 6b are related to and support
downtown infill development and include the ongoing maintenance and upgrade
infrastructure to support the current and future needs of business by supporting and
encouraging efforts to develop larger convention or conference center facilities to attract
larger statewide or regional meeting and convention business to Bozeman.
Lastly, the EDP encourages the maintenance of the high quality of life that is considered
an important asset to the business community and supporting the continued economic
vitality of the downtown Bozeman business district, which is broadly recognized as one
of Bozeman’s strongest assets. Moreover, the EDP supports and promotes downtown
Bozeman as the economic and cultural center of the region, and encourages development
and re-development through the use of incentives for future investment and development.
[Refer to the 2009 Downtown Improvement Plan for additional information.]
Thus, based on the Commission’s 2011 – 2012 adopted Goals and Work Plan, the Goals
and Strategies of Bozeman’s Economic Development Plan and the strategies to strengthen
downtown businesses articulated in the Downtown Bozeman Improvement Plan, the public
interest would be furthered were the Carnegie parking lot redeveloped from a surface
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parking lot adjacent a municipal parking structure, into a higher and better use for
downtown Bozeman.
V. Use of the Property for Non-Parking Municipal Uses
Finally, if the property was no longer necessary for the city’s parking program, whether the
property is necessary for other city functions should also be examined. An analysis of the City’s
adopted Fiscal Year 2012- 2016 Capital Improvements Plan indicates no other currently planned
city facility is considered for location on the property. It must be noted, however, that the Fiscal
Year 2012 – 2016 Capital Improvements Plan calls for funding for a new police and municipal
court facility. At this time, City staff recommends a new police and/or court facility be located at
the current site of the Law and Justice Center. In fact, Assistant City Manager Chuck Winn and
Police Chief Ron Price are working with officials from Gallatin County on a memorandum of
understanding to be presented to the city commission in the near future that would discuss a joint
effort to locate any future city courts or police facilities on the current Law and Justice Center
campus. As such, of this property is not being considered for a courts and/or police facility and is
no longer necessary for the conduct of city business or the preservation of its property.
UNRESOLVED ISSUES:
If the Carnegie parking lot is deemed no longer necessary for the conduct of city business or the
preservation of city property and also that the public interest may be furthered by future
development of the property, and the Commission determines that disposition of the subject
property should occur through an RFP process, the Commission should set forth basic RFP
parameters and direct staff to draft an RFP exclusive to a downtown hotel or inclusive of other
infill development opportunities as described in the DBIP. Staff will be available at your meeting
to provide the Commission with initial thoughts on how the RFP process would function.
ALTERNATIVES:
If the Commission determines that the subject property is not necessary for the conduct of the
city business or the preservation of city property and also that future development of the real
property by a private entity is in the public interest and a directly negotiated sale is the preferred
mechanism for moving forward with the disposition and development of the subject property the
Commission may authorize the City Manager to sign the CATELLUS GROUP, LLC letter of
intent (LOI). If the Commission determines that authorizing the City Manager to sign the
CATELLUS GROUP LOI furthers Commission goals and objectives Staff provides the
following alternative motion:
1) Having conducted a public hearing and accepted public comment, based on the findings
contained in the staff memorandum and those provided by the Parking Commission, I
hereby move that the real property known as the Carnegie parking lot located at 106 East
Mendenhall is not necessary for the conduct of the city business or the preservation of
city property and also that future development of the real property by a private entity is in
the public interest we hereby authorize the City Manager to sign the April15, 2011 LOI
with CATELLUS GROUP, LLC and enter direct negotiations, as described in BMC
2.05.040 for the sale of the Carnegie parking lot.
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FISCAL EFFECTS:
Immediate fiscal effects include the cost of an appraisal or appraisals of the Carnegie parking lot.
Recent estimates for one appraisal range from approximately $3,500 to $4,000. The cost of the
appraisal(s) will be borne by the Parking Enterprise Fund.
If sold, staff will recommend that proceeds from the sale of the Carnegie parking lot be deposited
into the Parking Enterprise Fund for the purposes of administering and providing parking in
downtown Bozeman.
Currently the Carnegie Parking Lot is zoned B-3 but contributes neither to the tax rolls nor the
Downtown Tax Increment Financing (TIF) District. Sale and redevelopment of the site would
return the property to the tax rolls and generate significant additional revenue to the Downtown
TIF District.
The Parking Enterprise Fund pays existing street, tree and lighting district fees for the Carnegie
lot. The property is assessed a total of $425.58 per year for all three districts.
ADDITIONAL REFRENCES AND RESOURCES:
1) City of Bozeman’s Community Plan – 2010;
http://www.bozeman.net/Smarty/files/e6/e6a049b8-fad5-4886-b7f5-
3ebfbd2f4556.pdf
2) City of Bozeman Economic Development Plan – 2009;
http://www.bozeman.net/Smarty/files/06/064cfc00-949e-4e95-ab82-
2c05a4ae0b55.pdf
3) The Downtown Bozeman Improvement Plan – December, 2009;
http://www.downtownbozeman.org/downloads/DBIP%20Final%2012-14-
09%20SM.pdf
4) Economic Development Council’s 2010 – 2011 Priorities and Recommendations –
2010 – 2011; and
http://www.bozeman.net/Smarty/files/23/231a6318-5919-46f6-9383-
d630abab5be3.pdf
5) Downtown Bozeman Parking Study – February, 2011.
http://www.coe.montana.edu/wti/wwwshare/Parking/Bozeman%20Parking%20Rep
ort%20-%20FINAL_508.pdf
Attachments:
1) Chapter 2.05, Bozeman Municipal Code;
2) Arial photograph of the Carnegie parking lot;
3) Deeds (2) to the property located at 106 E. Mendenhall (Carnegie parking lot);
4) Plat map of the property located at 106 E. Mendenhall (Carnegie parking lot);
5) April 15, 2011, Letter from CATELLUS GROUP, LLC to the Bozeman City Manager with notice of the
intent to purchase the Carnegie parking lot;
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6) May 23, 2011 memo from Deputy City Clerk Aimee Kissel regarding May 2, 2011, Commission action on
the letter of intent from CATELLUS GROUP, LLC for purchase of the Carnegie parking lot located at 106
East Mendenhall;
7) Sign in sheet for the May 9, 2011, Carnegie parking lot public forum;
8) Minutes from the May 11, 2011, Parking Commission meeting;
9) Bozeman Parking Commission Policy Guidelines; and
10) Public Comment as of June 3, 2011.
Report compiled on: June 2, 2011
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N BLACK AVE E MENDENHALL ST N BOZEMAN AVE 6 inch
10 inch10 inch6 inch 6 inch
6 inch10 inch6 inch
8 inch8 inch6 inch
8 inch6 inch 8 inch 8 inch 6 inch 6 inch
8 inch8 inch8 inch100 0 10050 Feet¯1 inch = 50 feet
Legend
Parcels
Water Mains
Sewer MainsRevised: 4/12/11
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Memorandum from the Clerk’s Office
REPORT TO: Brit Fontenot, Director of Economic Development and Community
Relations
FROM: Aimee Kissel, Deputy City Clerk
SUBJECT: Commission Action on May 2, 2011 regarding Letter of Intent from
CATELLUS GROUP, LLC for purchase of the Carnegie Parking Lot
located at 106 East Mendenhall
As per your request, below you will find the motions and related votes for this item from the
May 2, 2011 City Commission meeting. While the text minutes are not yet complete, these are
the motions and votes for the record. The audio of the entire conversation on this subject from
the May 2nd meeting can be heard at:
http://weblink.bozeman.net/WebLink8/0/doc/44839/Electronic.aspx
May 2, 2011 Action Item:
1. Letter of intent from CATELLUS GROUP, LLC for purchase of the
Carnegie Parking Lot located at 106 East Mendenhall Street (Fontenot)
It was moved by Cr. Taylor, seconded by Cr. Mehl to authorize the City Manager to sign the
CATELLUS letter of intent.
It was moved by Cr. Mehl, seconded by Cr. Becker to add to the motion “Only if a future
determination is made by the City that the Carnegie parking lot is no longer necessary for the
conduct of city business.
The motion as amended passed 5-0.
It was moved by Cr. Mehl, seconded by Cr. Becker that should the property be considered
surplus by the City that the City Manager order an appraisal of the lot.
The motion passed 5-0.
It was moved by Cr. Becker, seconded by Cr. Taylor to acknowledge receipt of the CATTELUS
letter of intent.
The motion passed 5-0.
Report compiled on: May 23, 2011
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Bozeman Parking Commission Meeting
May 11, 2011 7:00 a.m.
City Hall Commission Room
Parking Commissioners in Attendance:
Pam Bryan
Chris Naumann
Chris Pope
Tammy Hauer
Ben Bennett
Ben Lloyd
Lisa Dazl-Scott
City Staff in Attendance:
Cyndy Andrus, City Commissioner
Laurae Clark, Treasurer
Paul Burns, Parking Manager
Ashlie Portnell, Parking Clerk
Guests in Attendance:
None
Action Items:
The June meeting was officially rescheduled for June 1, 2011
Ben L motioned that there is a higher use for the Carnegie lot, Chris P
seconded the motion. A vote was taken and the motioned passed with a 5
to 1 vote.
I. Call to order
Pam called the meeting to order at 7:30am.
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II. Approval of April 13, 2011 minutes
Pam asked for a motion to approve the April 13, 2011 minutes. Chris N motioned to approve the
minutes, and Chris P seconded. The motioned was carried unanimously.
III. Public Comment, for any member of the public wishing to comment on
parking issues. State name and address. Please limit comments to 3 minutes.
None.
IV. Action Item, Discussion and recommendation to the City Commission
regarding future use of the Carnegie Lot.
Paul presented a staff report regarding the request to sell the Black/Carnegie lot.
He stated that the BPC cannot sell any city owned property, only the City Commission would be
able to do so. The BPC can only give advice to the City Commission.
Paul referred to the parking study update for a lot of his information. He stated that the study
currently shows a surplus of parking around the block in which the Carnegie lot and the parking
garage is located.
Currently the Carnegie lot has 71 spaces. Main, Black, Mendenhall and Bozeman make up the
Carnegie block. Within that area there is a total of 183 spaces. These spaces are found in public
parking, private parking, alley and both on and off street parking.
The parking garage has a total of 435 spaces, combining those spaces with the streets that make
up the garage block, and there are a total of 479 spaces.
Surplus spaces found at the Carnegie block are 85 spaces. The garage block has 321 surplus
spaces. Most of the 321 comes from the garage itself. There are quite a few permit holders, but
the garage still has plenty of spaces available everyday for people to park.
The parking study concludes that "...the demand calculations indicated the existence of a parking
surplus which provides headroom for future downtown growth."
Therefore, Paul recommends that due to the findings of the parking study, that the city consider
selling this lot if the economic value of doing so is a significant benefit for the downtown
community.
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After Paul's presentation, Pam asked if any of the Commissioners had any questions or
comments.
Ben L asked if other studies are being considered for the future.
Studies will be considered in the future, but nothing is lined up at this time.
Chris P asked if the data from the study was what Paul has observed in his tenure.
Paul responded that there is always somewhere to park downtown due to the parking garage; it
has created many surplus spaces around the area.
Chris N asked what is considered standard industry capacity?
Paul stated that 85% is considered the standard. Chris N went on to ask if peak times have been
considered. There are many different kinds of businesses downtown. Restaurants and retail
shops will have different peak times than that of the banks. Those kinds of things need to be
considered, that could affect the availability of parking spaces downtown.
Pam asked about the night time usage at the parking garage.
Paul stated that the garage is well lit, and that police officers do patrol the area.
Lisa asked if the permit holders at the Carnegie lot would be moved into the garage?
Paul said that those permits holders could purchase a permit for the garage but they would not be
forced to do so. There are less than ten permit holders in that lot, so it will not affect too many
customers.
Cyndy asked how often the parking garage is patrolled by police officers at night?
Paul stated he cannot vouch for how frequently they patrol the garage, simply that they do it as
part of their night time patrol. The new police sub-station downtown has been a great addition
and there are officers that are assigned to that station on a regular basis which has increased the
visibility and availability of an officer for routine patrols. Having the new patrol station
downtown has seemed to help lessen the amount of vandalism at the garage.
Tammy asked if the new hotel was to be built, would they have onsite parking available for their
facility? And would that have to be part of the BPC's recommendation for the City
Commission?
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Pam stated that the BPC cannot recommend anything until the project is underway.
Pam opened the floor for public comment.
Ashley Ogle from Kenyon Noble stated that there is no point in allowing the City to sell
something you need, just to turn around and buy back that property to create what you just sold.
She asked how we determine surplus? Kenyon noble is not operating a business downtown as
this time, some of the condos in the garage are not even full and there are vacant businesses
downtown. When they are full eventually we would need to account for the parking spaces they
need. She asked where the money from the sale of this lot go?
Chris N stated we might buy a new parking lot.
She asked where are we going to come up with new parking? The BPC might not even be able
to find land to purchase for a new lot. She asked if the BPC has thought all this through? When
is the data going to be taken?
Chris P stated that purchasing another lot is just an assumption. We are using the 2010 data.
She asked if the study took into consideration the businesses not operating?
Steve Roderick from the Ridge Downtown stated that you just invested money for additional
parking for the downtown area. He doesn't like the idea of taking away parking just when we
invested money into providing parking in this area. He wants to know who is deciding that if
that lot does go away that we will have a better economic stimulace. He took some of his own
data. One day he observed that at 12:30 pm the lot was entirely full. Other times just a few
spots were being used. He spoke to people who use that lot. 76 % of people who go to the
Ridge use that lot to park. He asked that the decision that is made consider all the businesses that
use that lot.
David Loseff from the Baxter Hotel stated that it was not good to make a business decision
based on a snap shot. You need to look at the trend lines. He looked back at previous studies and
the 2010 study. Despite the addition of the garage over the last 20 years there was a loss of 19
spaces, and provided documentation for those findings. He believed the numbers are skewed.
He says peak demands are higher in June, July and August. He stated he was speaking for other
owners in his building as well, and stated that business decisions are sometimes irrevocable.
You must consider the outcome if you are wrong. That is what he is asking the BPC, to carefully
consider this decision in case they are wrong to take away this lot.
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Larry Bowman from Owenhouse Hardware spoke about previously sitting on the Bozeman
Parking Commission. He talked about the struggles they had to create spaces and discussed the
cash n lieu process. He stated there needs to be development in the downtown to stimulate the
economy and attract customers to the downtown area to keep up with the rest of Bozeman.
The lot in question is ideal for development, and would be a great opportunity for downtown.
This would create more jobs and customers for other businesses in the downtown core. He is in
favor of developing this lot.
Dave Berghold of 11 E Main, The Last Wind-Up spoke in agreement with Larry. He believes
development downtown is very important. To have a hotel downtown is a natural attraction to
other businesses, retail, restaurants etc. To not have that resource available to visitors would
force them to go elsewhere on the outskirts of town and they may not visit the downtown area.
To centralize groups and gathering seems like it would be real bonus for businesses that are
downtown. Bozeman does face parking issues, as Chris mentioned. He believes any
development should offer parking on their lot. Main street is growing east and west, but little in
the north and south areas. This proposed development would assist with growth in the north
downtown area. Having the garage next door to the hotel is a perfect match.
Ileana Indreland of Delaney and Co. spoke in representation of her tenants as well as her own
business. She stated that we need to keep this parking lot. Women are vulnerable, especially at
night and the lot is more convenient and feels less threatening than the garage. She likes the way
it is now and does not want to see that change for the convenience of customers and employees
both. She stated it would be responsible to do studies based on real numbers, actual data. Until
we have real data it is premature to replace this lot. Her tenants use this lot. She does support
the garage, but this is an important lot as well. Her building lost a lot of money during the
development of the garage. She feels the developer should reach out to properties from private
parties rather than take away the public parking. And, feels we should get better data before
making this decision.
Mike Delany from Delany and Co stated he did some research of the past parking
commissioners and discussed how and why the commission had been established. The original
goal was basically to provide lots for people to park. We now have that. The last time this
commission decided to sell a property, it had bad circumstances. The houses that were
purchased were rented for a time and then when the commission was ready to demolish the
homes to create a lot on the south side, the City Commission refused to allow it. Those homes
were then sold them to private citizens who wished to continue to use them as a residence.
Approximately $400,000 was made on these home and no parking spots were created. Big Sky
Western Bank since developed a nearby business that could have used that parking lot. He stated
other areas have also been developed that have taken away approximately 50 additional spaces.
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He also mentioned the First Security Bank renovation and how that lot could have also benefited
them had it been created.
He feels that if it is the BPC's intention to take this parking lot away, they should have an
auction, just don't sell it to the first person who asks. Other people should have a chance to
purchase the lot and propose a development. And, mentioned the buy local goal by the City
Commissioners.
Pam asked for further public comment, and there was none. She asked if there were written
comments. Paul stated that Michael Ochsner from Plonk wrote in favor of the development.
Steve Rodderick asked if Brit had passed on a copy of the letter from the law firm across from
the Carnegie lot? It was noted that they had not, as they had been addressed to the City
Commission.
Ben L made a motion that the Bozeman Parking Commission accepts the recommendation by
staff to recommend to the Bozeman City Commission that there is a higher and better economic
use than surface parking for the Carnegie Lot. This is due to the amount of available parking in
the vicinity of this lot, particularly at the Garage, which has the capacity to currently replace
these spaces. This lot is not needed to provide public parking.
Chris P seconded the motion.
Lisa stated that her concern is that even though this could create new jobs etc. that things seem to
be moving so quickly. She thought there should be more public meetings before a
recommendation be made.
She was reminded that the City Commission laid out this process on the May 2nd commission
meeting. Other public meetings have also already occurred. It was also stated that on June 13
there is another public meeting and then there would be two other public meetings after that.
Chris P thanked everyone who spoke. He finds this opportunity very interesting and wants to
move forward. But, he is carrying around trepidation. He agreed with Mike's point that you
can't go back on things. He reminded everyone that a private developer has come forward with
an offer to purchase a property that is not for sale. Without this offer, the BPC would not be
considering selling the property. There was no solicitation for this offer. He feels the PBC is
compelled to look at the offer. The reason is in the interest for a healthy environment downtown.
This is an opportunity. We have to study things even without 100% data sets. He also thinks we
should entertain any offer. The city should be paid back fair market value or more!
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The future use needs to be extremely good for the economic future of the City. It also needs to
be from a qualified party. No, the Carnegie lot is not for sale, but future use could benefit the
public in such a way that it should be considered.
He is hearing the conversationd of nearby businesses that this is not a good idea, but we need to
communicate to the City Commission that any sale revenue that is made would go to additional
parking in the future. He is also an advicate that a new building plan for parking the way zoning
requires and show plans for underground parking. That is an expensive thing to do, but
necessary. He suggested someone should ask the developer why this property? There are other
opportunities for this development downtown. He asked if we had sell for 95% of appraised
value? Whomever the developer is, they will be held to a HIGH STANDARD. It needs to be
the best option built as possible. He does agree with possibly an auction or some type of fair
public process. He again reminded everyone that this would not be considered unless a
development is put to GREAT use. He thinks we should see if there is a developer out there that
can bring good use to that lot and stimulate the Bozeman economy. He does want to recontribute
to parking and supplying spaces again.
Chris N stated that out of deep respect he holds in his position for the Downtown Bozeman
Partnership he will recues himself from the vote. Because of the things he has heard today. he
cares even more strongly for the people and businesses in the area. His reservations are if this
property is determined by the City Commission that it has a better use, that they and the
comminity keep in mind the objectives of the Downtown Improvement Plan and only do smart
projects. There is other land available out there that a developer could purchase. How would we
best have the oppotrunity to see a higher and best use? There is only one option and to not jump
on the first thing. We need to get to a point and have time to think hard and get the most
assurance that it will be done to the benefit of the downtown community. He feels a RFP would
be the best way to do that.
Cyndy Andrus commented on the process. She wants everyone to know the die has NOT been
cast yet. This process will be fair and transparent. Great care will be taken into consideration
with the public. She cares about the public a great deal.
Pam stated there is a motion on the table. There are replacement spaces available for this lot.
There is a higher use for this lot. By our approving or not approving this will determine how this
process will move forward. All we can comment on today is the future of this lot and not the
development requirements. We need to separate the two.
Chris P asked if was appropriate for the BPC to take into the consideration and comment to the
City Commission at a future date if it were to becomse a hotel. He wants to hear a discussion
about understanding the maintenance of the parking downtown.
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He wants a commitment to continue to solve parking issues. He wants any funds that are
received from the sale to go into the parking capital fund. It cannot be used for striping lots or
maintenance, but for creating future parking spaces.
Lisa stated that her difficulty in making a decision is not knowing if there will be a public bid
and hearing what other members if the public think. She wants to know if a hotel is built will it
just provide private parking for hotel and restaurant patrons. Can the general public use those
spaces?
Pam clarified the motion is about whether there is a greater benefit to the downtown area for this
lot than surface parking.
The vote was taken, Tammy Hauer, Ben Bennett, Ben Lloyd, Pam Bryan and Chris Pope all
voted in favor. Lisa Danzl-Scott voted against. Chris Nauman was recused from the vote. The
motion was approved by a 5-1vote.
Pam announced a 5 minute break.
V. Action Item, Consider a new date for June BPC meeting.
Pam called the meeting back to order at 8:51am. The June meeting was officially rescheduled
for June 1, 2011.
VI. Manager’s report
The elevator fee was higher than expected. But it is now working.
Paul reported more graffiti at the garage.
The garage will be swept May 12th.
Paul is going to purchase a walk behind sweeper. He priced them out at approximately
$3,600.00.
Chris N suggested Paul talk to the folks in Billings because they have one too. Maybe he could
find one that would be a little cheaper or what they like or don't like about the one they have.
There were 600 courtesy tickets issued in the month of April.
The City Commission approved the contract with Big Look for advertising at the parking garage.
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VII. Finance report
Paul presented the finance report to the BPC. He briefly noted that the budget is currently in the
black. The numbers are looking good.
VIII. New business
None.
IX. Adjournment
Pam adjourned the meeting at 9:00am.
Respectfully Submitted
Ashlie Portnell, Parking Clerk
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Bozeman
Parking
Commission
Policy Guidelines
Mission Statement
The Bozeman Parking Commission is responsible for managing and regulating
public parking in its districts, and will provide a customer-oriented and user-friendly
parking system for businesses, residents, employees and visitors.
Goals
Improve and maintain public parking assets
Provide for the safe movement of vehicle and pedestrian traffic
Make the parking system fiscally sound and self-sufficient
Manage spaces to best serve the needs of customers
Provide consistent treatment regarding parking enforcement action
Educate parking users to minimize parking conflicts
Make parking areas attractive and easy to use
Plan for and respond to changing needs in the districts
Consider alternative modes of transportation that reduce parking demand
Work cooperatively with local partners
Seek to acquire additional public parking as needed
Policy Guidelines
Community Transparency
The Bozeman Parking Commission will conduct the business of managing parking in a
publically transparent way.
Monthly BPC meetings are open to the public and properly noticed pursuant to Montana
Code Annotated.
All BPC meeting minutes are publically archived at:
http://weblink.bozeman.net/WebLink8/0/fol/37627/Row1.aspx
Fiscal Responsibility
The Bozeman Parking Commission will operate in a fiscally responsible manner while effectively
managing resources and implementing parking regulations.
The BPC will consciously control operating costs without sacrificing other guidelines and
policies.
The BPC will consciously manage revenues without sacrificing other guidelines and
policies.
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It is the intent of the BPC to invest any Parking Enterprise Fund profits into three fiscal
reserves: Parking Capital Reserve, Parking Operating Reserve, and Bridger Park
Downtown Long-term Maintenance Reserve.
Resource Management
The Bozeman Parking Commission will professionally manage the public parking resources
entrusted to it by the City of Bozeman.
The BPC will develop and manage a customer oriented and user friendly parking system.
The BPC will manage public on-street, surface lot, and structure parking resources for
the benefit of residents, visitors, employees, and businesses.
The BPC will conduct and revise a Downtown Parking Study on a regular basis in order
to utilize current empirical data in its decision making process.
Effective Enforcement
The Bozeman Parking Commission will strive to ensure there is sufficient short-term parking
available by employing effective enforcement in the three districts it oversees.
The existence of Bridger Park Downtown for long-term parking needs makes compliance
with parking regulations easier.
The BPC will deter illegal parking with a timely, consistent, and fair enforcement
presence.
The BPC will continually work to develop customer friendly enforcement practices and
policies.
Economic Development
The Bozeman Parking Commission supports projects that bring vitality and energy to its parking
districts.
The BPC recognizes that economic development and parking are inextricably linked,
especially in the downtown district.
The BPC will consider supporting projects that constitute a significant economic benefit
for the downtown area while being consistent with the guidelines of the Bozeman
Community Plan; the Downtown Improvement Plan; and the mission, goals, and policy
guidelines established herein.
Regulatory Oversight
The Bozeman Parking Commission will dutifully exercise regulatory oversight of parking
inventories, parking regulations, commercial parking requirements, and special parking districts.
The BPC will develop regulations for the public surface parking lots and Bridger Park
Downtown in keeping with national and state industry standards.
The BPC will advise the City Commission on parking regulations as they relate to on-
street parking rules and violations; parking requirements for changes-in-use,
development, and redevelopment; and the Montana State University and Bozeman High
School residential parking districts.
The BPC will continue to manage the Cash-in-Lieu-of-Parking policy for the downtown
district to reflect current parking demand and market rates.
Adopted February 9, 2011
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