HomeMy WebLinkAboutA1. Maxjner Cash in Lieu
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 Majxner
Residence site plan, 306 East Story Street, Application Z15019.
MEETING DATE: April 13, 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 Z15019 and accept the provision of $1,045.44
cash in lieu as meeting the required parkland dedication. BACKGROUND: The property owner and applicant, Jim & Susan Majxner, 306 E. Story
Road, Bozeman, MT 59715 made application to allow the construction of a second single-
household dwelling unit. An additional dwelling unit would normally require 0.03 acres
(1,306.8 sq. ft.) of land dedication. The development of residential property requires provision of parkland or its equivalent. The subject property is Guys second add, S07, T02 S, R06 E, acres 0.53, W 100' Fractional Lot D & ADJ 25' X 100' Tract Lying N, City of Bozeman, Gallatin
County, Montana. The subject property is located at 306 East Story Street.
The one new dwelling requires 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 1,306.8 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.
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 city has no need for and no desire to
ever maintain a 1,307 square foot park. The location is very well served by parks at this time. The addition of one residence will have no meaningful impact on the existing parks. The project
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is considered infill, and the site is in very close proximity to Bogert Park, the Library Sculpture
Park, and the Gallagator Trail.
The Recreation and Parks Advisory Board subdivision review committee has considered the
proposed use of cash-in-lieu of parkland for this specific site recommends favorably.
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 one dwelling at 0.03 acres per dwelling requires 0.03 acres total. The
appraised value is $0.80 per square foot. Therefore, the cash in-lieu for this project is $1,045.44.
Attachments: Land Appraisal
Site plan RPAB Subdivision Review Committee Memorandum Report compiled on: March 19, 2015
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James R. Majxner
306 East Story
Bozeman, MT 59715 March 17, 2015
Dear Mr.Majxner,
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 with a legal description of GUYS 2ND ADD, S07, T02 S, R06 E, ACRES 0.53, W 100'
FRACTIONAL LOT D & ADJ 25' X 100' TRACT LYING N.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 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.
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Subject Site
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The indicated range of value from the comparable sales is $0.57psf to $0.85psf.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
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