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Home My WebLink AboutA3 Parkland File Z14125 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Heather Davis, Associate Planner Wendy Thomas, Director of Community Development SUBJECT: Approve request for Cash in Lieu of Parkland Dedication for the College & 23rd Apartment site plan, 2205 West College Street, Application Z14125. MEETING DATE: February 23, 2015 AGENDA ITEM TYPE: Action RECOMMENDATION: The City Commission approve the request for cash donation in-lieu of land. SUGGESTED MOTION: Having considered the information provided by staff, considered public comment, and considered all of the information presented, I hereby adopt the findings included in the staff memorandum for application Z14125 and accept the provision of $12,682 cash in lieu as meeting the required parkland dedication. BACKGROUND: The property owner and applicant, Thunderbolt Properties, LLC, 125 Central Ave, Suite 1A, Bozeman, MT 59718, and the representative C&H Engineering & Surveying, Inc., 1091 Stoneridge Drive, Bozeman, MT 59718 made application to allow the construction of one multi-household residential building, the second phase of a two building apartment complex project. The first phase, a 6 unit multi-household residential building, was approved in 2004 and constructed. A new site plan review for phase 2 was conducted in 2014 in which the applicant proposed a new 12 unit apartment building on the site. This would normally require 0.36 acres (15,682 sq. ft.) of land dedication. The development of residential property requires provision of parkland or its equivalent. The subject property is Tract 8, Mountain Vista Suburb of Bozeman, SE ¼, Section 11, T2S, R5E, City of Bozeman, Gallatin County, Montana. The subject property is located at the intersection of College and S. 23rd Street. The 12 dwellings require parkland dedication, cash in-lieu of parkland dedication, or a combination of cash in-lieu and park land dedication. It is the expressed preference of the developer to provide cash in-lieu of parkland dedication. Pursuant to Section 38.27.030.C, BMC, the Applicant provided the necessary appraisal documentation to establish the fair market value for the equivalent land dedication. The basis for the appraisal is “the fair market value is the value of the unsubdivided, unimproved land after it has been annexed and given an urban zoning designation.” Required parkland dedication is equal to 15,682 square feet. The required appraisal shows the equivalent land cost at $0.80 per square foot which is in line with other recent cash-in-lieu appraisals. 256 The ability to provide parkland within the site is quite limited and would substantially alter the project. It would be difficult to design a park location that would comply with the City’s requirements for frontage and provide for any buildable or parking area. The project is considered infill and has access to a year round shared use pathway along College Avenue. The Recreation and Parks Advisory Board subdivision review committee has considered the proposed use of cash-in-lieu of parkland and the appraised value and for this specific site recommends favorably on both. UNRESOLVED ISSUE(S): None at this time. ALTERNATIVES: 1) Accept the cash-in-lieu amount as described. 2) Reject the cash-in-lieu and require dedication of land which would require redesign of the project. 3) As suggested by the Commission. FISCAL EFFECTS: Per the attached appraisal, the anticipated payment for cash in lieu of parkland dedication for 12 dwellings at 0.03 acres per dwelling requires 0.36 acres total. The appraised value is $0.80 per square foot. Therefore, the cash in-lieu for this project is $12,546. Attachments: CIL Request Land Appraisal Site plan RPAB Subdivision Review Committee Memorandum Report compiled on: January 23, 2015 257 258 Tim Staub, E.I. C & H Engineering 1091 Stoneridge Drive Bozeman, MT 59718 December 22, 2014 Dear Mr.Staub, As per your request I have gathered some data to estimate a market value for your R-4 land on a per square foot basis located at Tract 8, Mountain Vista Suburb of Bozeman, SE ¼, Sec. 11, T 2.S. R. 5 E. of P.M.M. City of Bozeman, Gallatin County, MT. 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. 259 260 261 262 Subject Site 263 The indicated range of value from the comparable sales is $0.57psf to $0.83psf.All of the sales indicate a very narrow range of value Sale 1 is almost identical to what the City has requested as far as similar zoning, annexation and future use. Presently speculative development land that is being annexed into the City of Bozeman for residential development is being sold between $30,000 and $40,000per acre. I have reconciled in the middle of the range at $35,000per acre or $0.80psf. 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 #400 264 265 Bozeman Recreation & Parks Advisory Board P.O. Box 1230 · Bozeman, MT · 59771 Site Plan Review PROJECT: College & 23rd Apartments PLANNER: Heather Davis FROM: Subdivision Review Committee DATE OF REVIEW: 1/9/2015 OVERVIEW: • This is phase 2 of a one-acre apartment project on West College. Because the original plan has expired we are looking at it as a stand-alone project. • The applicant is requesting cash-in-lieu. COMMENTS: • The actual dedication requirement is unknown at this time because if the site of this phase were smaller than ¾ acre, which it appears to be, the density cap would apply. The applicant will provide the lot size so this determination can be made. • The appraisal for cash-in-lieu purposes has been provided at $30,000/acre. This amount is in line with recent appraisals we have seen. • The nearest park to this site is Bozeman Ponds, about 1 mile away. An existing paved bike/ped trail along College Street provides access. • That the area is underserved by parks is a negative for cash-in-lieu consideration • That it is an infill project, completion of a previously approved project, has access to a year round trail, and has a very small dedication requirement are positives. Reconfiguring this project to accommodate a ¼ acre park (e.g. underground parking?) would drive the price beyond the reach of the college community, its targeted demographic. RECOMMENDATION: • We see no reasonable alternative to cash-in-lieu and recommend that that this request be approved. • We would like to see the landscaping be primarily grass so that at least dog relief is possible. FISCAL EFFECTS: • Estimating the phase acreage to be between ½ and ¾ acre the cash-in-lieu requirement would range between $5400 and $8100. Respectfully submitted, 266 Sandy Dodge, Chair, Subdivision Review Committee 267