HomeMy WebLinkAboutA1. Cash in Lieu of Parkland
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Heather Davis, Associate Planner Mitch Overton, Parks and Recreation Director
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: April 20, 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 $25,092 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.
At the March 2, 2015 City Commission meeting, Commissioners directed staff to work with the
applicant to propose an alternative solution to the original requested cash in-lieu amount of $12,546, as either dedication of land in close proximity to the project, or placing a park in an underserved area.
On March 19, 2015, City staff met with the applicant to discuss alternative solutions as directed
by the Commission. The following alternatives were discussed:
Dedication of land to the City:
58
In response to Commission direction, the applicant reviewed the feasibility of purchasing
land in close proximity to the project, or purchasing land for park dedication in an
underserved area. It was determined by the applicant that there is no available land for
sale for a reasonable price or within reasonable distance of the project or underserved areas for the applicant to purchase and build to City park standards (see attachment April
7, 2015 CIL Request). Therefore, dedication of land to the City is not feasible.
Providing parkland onsite was discussed previously and determined that it is not a
realistic alternative. 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.
Cash in-Lieu for Loss of Foregone Improvements:
An alternative proposed is for the applicant to pay the cost of foregone standard park
improvements the City would require if the applicant provided parkland. Minimum park development standards include: leveling the ground, amending the soil, planting and establishing ground cover, and installation of irrigation which includes a water supply
well. In addition to the original cash in-lieu for the land dedication of $12,546, the City
could request the additional foregone improvements of an improved park. Staff’s draft
estimate for the foregone improvements is $26,090.80, making the total cash in-lieu requirement $38,636.08.
It was determined by the applicant that the project would become economically infeasible
if the improvement in-lieu fee of $38,636.08 were to be paid. Given the current
development climate in Bozeman, with the high cost of purchasing land and hiring
building contractors, the risk vs. reward ratio is skewed in favor of risk. By paying $38,636.08 for Improvements in Lieu, the project becomes so financially burdensome that this developer would be unable to build on this lot (see attachment April 7, 2015 CIL
Request).
This alternative would require the applicant to pay an amount substantially beyond the
requirement in the BMC for cash in-lieu of parkland.
Applicant Proposed Alternative (recommended by staff):
Double the original cash in-lieu request and propose paying $25,092 to satisfy the
required parkland dedication. By doubling the original request, the proposal is a
compromise between the cash in-lieu calculation outlined in the Bozeman Municipal
Code and the cash in-lieu for loss of foregone park improvements.
Per Section 38.27.030.A BMC, the review authority may determine whether the park dedication
must be a land dedication, cash donation in-lieu of land dedication or a combination of both.
When making this determination, the review authority shall consider the following:
1. The desirability and suitability of land for parks and playgrounds based on size,
topography, shape, location or other circumstances; and
2. The expressed preference of the developer.
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.
ALTERNATIVES: 1) Accept the cash-in-lieu amount as described.
2) Reject the cash-in-lieu and require dedication of land or a combination
of cash in-lieu and dedication of land.
59
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 code requirement for cash in-lieu for this
project is $12,546. The applicant is offering to double the required cash in-lieu amount to
$25,092.
Attachments: April 7, 2015 CIL Request
Park Value Calculation including Standard Park Improvements
Original CIL Request and Land Appraisal
Site plan RPAB Subdivision Review Committee Memorandum Report compiled on: April 9, 2015
60
1091 Stoneridge Drive • Bozeman, Montana • Phone (406) 587-1115 • Fax (406) 587-9768
www.chengineers.com • E-Mail: info@chengineers.com
Civil/Structural Engineering and Surveying
April 7, 2015
City of Bozeman, Department of Planning and Community Development
Attn: Heather Davis
20 E. Olive Street P.O. Box 1230 Bozeman, MT 59771-1230
RE: 23rd and College Condominium Cash in Lieu of Parkland Dedication (#14125)
Dear Heather,
Section 38.27.020.A.1 of the Bozeman Municipal Code (BMC) states that “0.03 acre per
dwelling unit of [park]land shall be provided.” Because there is not enough room on site to
provide dedicated parkland, the developer proposes to pay Cash in Lieu of Parkland Dedication
at a rate of $0.80 per square foot, which is the fair market value of the unsubdivided,
unimproved, annexed land as set forth in the BMC Section 38.27.030.C. This figure was given
by Keith O’Reilly, MAI, General Certified Appraiser. The proposed site plan is Phase 2 of an
existing project, and it consists of a parking lot and a 12 dwelling unit condominium.
The required parkland dedication is 15,682 sq. ft. or 0.36 acres (0.03acres/dwelling unit x 12
dwelling units). This equates to a Cash in Lieu payment of $12,546 (15,682 sq. ft. x $0.80/sq.
ft.).
During the March 2, 2015 commission meeting the commission refused to accept the proposed
$12,546 for Cash in Lieu of parkland dedication. They requested that other alternatives be
investigated and a new proposal be submitted for the April 20, 2015 commission meeting. After
considering different alternatives and meeting with Mitch Overton (Parks and Recreation
Director), Wendy Thomas (Director of Community Development), Scott Johnson (developer),
and Heather Davis (Associate Planner), the developer proposes to double the original Cash in
Lieu payment; therefore, proposing to pay $25,092.
Doubling of the previous amount is a respectful, generous offer on behalf of the developer,
considering there is no legal justification for the City to require more money than specified in the
BMC. The other alternatives explored included building a park nearby, or paying an
Improvements in Lieu fee of $46,477, which is based on buying 15,682 sq. ft. of unimproved
land and building a bare-minimum park. There is no available land for sale within reasonable
distance for the developer to purchase and build a park. Additionally, it was determined that the
61
project would become economically infeasible if the Improvement in Lieu fee of $46,477 were
to be paid. Given the current development climate in Bozeman, with the high cost of purchasing
land and hiring building contractors, the risk vs. reward ratio is skewed in favor of risk. By
paying $46,477 for Improvements in Lieu, the project becomes so financially burdensome that
this developer (and likely any developer) would be unable to build on this lot.
Development of this lot with the proposed 12-plex plan is beneficial to the new and improved
College Street frontage. The building will provide much-needed housing to a growing student
population at Montana State University. The denial of the proposal for Cash in Lieu of Parkland
Dedication of $25,092 is tantamount to denying development of this valuable infill lot. Thank
you for your consideration.
Sincerely,
Tim Staub, E.I.
G:\c&h\14\14109\Office\Final Site plan\Cash in Lieu proposal.doc
62
PARK VALUE CALCULATION - 23rd & College Apts.Revised 3/31
LAND VALUE
Site acreage
Total residential units proposed 12.00 12.00
Max 12 / acre 4.50 4.50
Park dedication acreage requirement (12 units x .03) 0.36 0.36
Park dedication SF 15681.60 15681.60
Estimated land value (@ $0.80 / SF)12545.28 12545.28
STANDARD PARK IMPROVEMENTS
Hypothetical lot 125 x 125 126 x 125
Site preparation and seeding @ $1.00 / SF 15681.60 7840.80
Irrigation @ $25,000 / AC 9000.00 9000.00
Boundary survey and corner posts 2000.00 2000.00
Street trees: 500 LF street /50 : 10 @ $425 ea 4250.00 4250.00
Perim. sidewalks: 500 LF of 6 ft x 6" concrete @$6 SF 3000.00 3000.00
TOTAL 33931.60 26090.80
TOTAL VALUE OF LAND AND BASIC IMPROVEMENTS 46476.88 38636.08
63
64
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.
65
66
67
68
Subject Site
69
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
70
71
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,
72
Sandy Dodge, Chair, Subdivision Review Committee
73