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Home My WebLink AboutApprove Merchant Residence Site Plan and COA request for Cash in Lieu of Parkland Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Allyson Brekke, Neighborhood Planner Wendy Thomas, Director of Community Development SUBJECT: Merchant Residence Site Plan and Certificate of Appropriateness Application Request for Cash in Lieu of Parkland Dedication – Zoning File No. Z13237 MEETING DATE: Monday, December 2, 2013 AGENDA ITEM TYPE: Consent Item RECOMMENDATION: The City Commission accepts staff’s findings and allow cash in lieu of parkland dedication for the Merchant Residence Site Plan and Certificate of Appropriateness, Zoning File No. Z-13237. RECOMMENDED MOTION: “I hereby adopt staff’s findings and recommend to allow a cash in lieu of parkland dedication for the Merchant Residence Site Plan and Certificate of Appropriateness, Zoning File No. Z-13237.” BACKGROUND: The Director of Community Development granted preliminary approval for a site plan and certificate of appropriateness application to allow the construction of new single-household dwelling structure (new house) on the property addressed as 710 South Black Avenue, located within the Neighborhood Conservation Overlay District. The property is zoned R-2, Residential Two-Household, Medium Density District. At the time of preliminary approval, the applicant was advised about the parkland contribution requirement by any combination of land dedication, cash donation in-lieu of land dedication, or an alternative authorized by Section 38.27.100 BMC. The applicant is required to address this requirement prior to Final Site Plan approval. The Subdivision Review Committee of the Bozeman Recreation and Parks Advisory Board reviewed the parkland cash-in-lieu request on November 22, 2013 and concur with staff’s findings that accepting cash-in-lieu of parkland rather than physical parkland is the most appropriate option for this particular property. UNRESOLVED ISSUES: None at this time. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Per the attached appraisal, the anticipated payment for cash in lieu of parkland dedication for 0.03 acres for this project is $1,125.00. Attachments: Bozemn RPAB Memo; Cash in lieu of parkland dedication proposal and appraisal for the Merchant Residence. The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street. Report compiled on: November 22, 2013 158 Bozeman Recreation & Parks Advisory Board P.O. Box 1230 · Bozeman, MT · 59771 Park Plan Review SUBJECT: Merchant Project – 710 S. Black FROM: Subdivision Review Committee PLANNER: Allyson Brekke REVIEW DATE: 11/22/2013 BACKGROUND: • This is a single dwelling unit to be built on a developed lot with an existing house, triggering a .03-acre dedication requirement. The applicant has requested cash-in-lieu. COMMENTS: • A .03-acre public park would be of no value to the city. • As a general rule the city prefers not to approve parkland dedications smaller than 1 acre. RECOMMENDATION: • The subdivision review committee recommends approving the cash-in-lieu request FISCAL EFFECTS: • The submitted appraisal will generate $1125 cash-in-lieu. ALTERNATIVES: • N/A Respectfully submitted, Sandy Dodge, RPAB Subdivision Review Committee 159 Robert F. Clark, EI, CMI Madison Engineering, LLC 895 Technology Blvd, Suite 203 Bozeman, MT 59718 October 31, 2013 Dear Mr.Clark, As per your request I have gathered some data to estimate a market value for your R-2 land on a per square foot basis located at 710 South Black Avenue,Bozeman,MT 59715.The purpose of the estimate is for you to establish the market value for the City of Bozeman’s Cash in Lieu Parks Program.The valuation is not on your piece of land, but on what non-annexed speculative development land with a similar use would bring in the open market. The following sales have been used to estimate a value on a per square footage basis.The most difficult part of estimating cash in lieu is that the City is asking for a value of something that quite frankly does not exist. Thus the compiled sales on the following pages are of sites that are speculative development land with somewhat similar characteristics when compared to the subject. 160 ID 93 Verification Source SWMT MLS# 185658 Address Durston/Flanders Mill Rd Price $1,180,712 City Bozeman Price Per Acre $27,500.00 State MT Financing Cash to Seller Tax ID RGG6857 Property Rights Fee Simple County Gallatin Days on Market 549 Grantor Vesta F. Anderson Estate & Baxter Ranch Holding LLC Recording Date 08/03/12 Grantee Bozeman School District No. 7 Recording Number 2422553 Legal Description Acres 42.9 Topography Level Land SF 1,870,249 Zoning Semi-rural residential Road Frontage Flanders Mill Rd Flood Zone None Dimensions --Encumbrance or Easement None Utilities Available Environmental Issues None Access Durston Price Per Acre $27,500.00 Transaction Land Comparable 1 Site This property is being purchased by the Bozeman School District to construct a new Middle School and it is highly likely an additional school will be built upon the site in the future. The property will need to be annexed into City and there are estimated cost of offsite improvements of $500,000. The property was listed for sale for $33,333 per acre for several years. Comments Tract 2A of C.O.S. 2554A, in the NW1/4 & SW1/4 of Sect. 3, T2S, R5E, P.M.M., Gallatin Co., MT. 161 ID 70 Verification Source Greg Stratton, 599-5603 Address S. Bronken Field Price $1,399,025 City Bozeman Price Per Acre $26,750.00 State MT Financing Cash to Seller Tax ID RGG45425,45426,39707 Property Rights Fee Simple County Gallatin Days on Market -- Grantor Bozeman Lakes, LLC Recording Date 08/05/10 Grantee Petra Academy, Inc. & Greg and Susan Gianforte Recording Number 2367076,2367077 Legal Description Acres 52.3 Topography Level Land SF 2,278,188 Zoning Residential, Small Portion CommercialRoad Frontage Cottonwood Rd.Flood Zone -- Dimensions Nearly Rectangular Encumbrance or Easement -- Utilities NorthWestern Energy Environmental Issues -- Access Paved Price Per Acre $26,750.00 Land Comparable 2 Site Transaction Comments This sale is part of Valley West. The site had preliminary plat approval; however, a local church group purchased the land with the intent to construct a school. The site was primarily zoned for single family residential development with the exception of about 5 acres zoned for Commercial Retail use. Three parcels were plotted together. There is an additional expense for off-site infrastructure that has been estimated at $800,000 or an additional $15,296 per acres. The buyer was willing to pay this, however, it is now possible an SID will be created. Tract 1, 2, and 3 in Block 3 of Valley West Sub., Gallatin Co., MT. 162 ID 49 Verification Source Seller Address 3840 S. 19th Ave.Price $2,900,000 City Bozeman Price Per Acre $36,200.00 State Montana Financing Cash to Seller Tax ID RGG7308 Property Rights Fee Simple County Gallatin Days on Market Unknown Grantor American Bank Recording Date 08/10/12 Grantee Klein S. and Karen Mai Gilhousen Recording Number 2423127 Legal Description Acres 78.0 Topography Level Land SF 3,397,680 Zoning RU-Residential Urban Road Frontage --Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities To Site Environmental Issues None Access S. 19th Ave Price Per Acre $36,200.00 Land Comparable 3 -- Site Comments Transaction The SW¼NW¼ and the NW¼SW¼ of Sect. 24, T2S, R5E, Gallatin Co., MT. 163 ID 248 Verification Source SWMT MLS# 182717 Address 138.675 Acres S. 19th Ave.Price $3,744,212 City Bozeman Price Per Acre $27,000.00 State MT Financing Cash to Seller Tax ID RGG8291 Property Rights Fee Simple County Gallatin Days on Market 184 Grantor David R. & Penny K. Kraft Recording Date 11/08/12 Grantee Real Red, LLC Recording Number 2431478 Legal Description Acres 138.7 Topography Level Land SF 6,040,683 Zoning None Road Frontage --Flood Zone None Dimensions Rectangular Encumbrance or Easement None Utilities Available Environmental Issues None Access S. 19th Ave.Price Per Acre $27,000.00 Transaction Land Comparable 4 Site Comments -- Tract 2 of COS No. 2177, in the NE¼ of Sect. 26, T2S, R5E, PMM, Gallatin Co., MT. 164 Speculative development land is currently highly sought after with limited supply. My research and other projects indicate that it is financially feasible to pay $35,000per acre for speculative residential development land. In fact my opinion is that the market for speculative development land for the next few transactions is going to be from $35,000 to $40,000 per acre. I have reconciled with the average price of the comparable sales at $37,500per acre or $0.86psf. If I can be of further assistance please do not hesitate to contact me. Sincerely Keith O’Reilly, MAI General Certified Appraiser State of Montana #400 165