HomeMy WebLinkAbout32 Comment 25 and 32 Response Letter HBP 20 North Tracy Avenue
Bozeman,Montana 59715
HomeBasePartners.com
HOMEBASE;'ARTNERS 406,404.1788
1/31/2024
Sarah Rosenburg, AICP
Associate Planner I Historic Preservation Officer
City of Bozeman LGBTQ+ Liaison
RE: The Guthrie—Project#23354
SP/DEM/CCOA Comments#25 and#32
Dear Sarah,
In response to your review comments#25 and #32 on The Guthrie SP/DEM/CCOA application
we'd like to offer the following summary and financial analysis. I've included the comments
below for reference along with our responses.
Comment#25
The existing structure is contributing historic structure in a very intact Postwar phase of
Bozeman's development that could be eligible to become a Historic District. Based on the
historic inventory survey of the B-2M zone district, North 5th and 6th between Peach and Beall
could be designated a Historic District. This structure is a prominent architectural feature of the
Postwar era in the Violet and Karp subdivisions. Reconsider doing an adaptive reuse
development for this, especially since the renovation study shows that there could be a number
of units accommodated. Another consideration would be to do this as a PDZ and use Affordable
Housing and Historic Structures as outlined in 38.430.050. Relaxations and waivers can be
requested.
As you maybe aware when we purchased this building we fully intended on doing an adaptive
reuse development project. We spent close to a year working with our design team as well as
City of Bozeman Community Development, Building and Fire Departments in an attempt to
make a renovation work. Unfortunately, at every turn we ran into roadblocks related to
significant upgrades to the structure, MEP and life safety systems required to comply with
current code.
During our evaluation/design process we engaged Arco Murray as a General Contractor to
provide cost information and suggest creative solutions to make the project economically
viable. After a thorough attempt to make the numbers work we eventually had to pivot and
pursue a different solution. We maintained our commitment to providing a lower cost housing
option for the community and are now able to offer 111 units in the new build project opposed
to only 42 in the renovation project.
HBP 20 North Tracy Avenue
Bozeman,Montana 59715
HomeBasePartners.com
HOMEBASE PARTNERS 406.404,1788
Comment#32
38.340.090.C. Provide how the structure has no viable economic life remaining. We need to see
that bringing the structure to a habitable condition exceeds the cost of demolition and
redevelopment to minimum standards. This should be some sort of document that shows
numbers and dollar amount.
We have included budgets, proformas, and financial analyses which provide clear evidence of
why pursuing a renovation of the existing building is not feasible. In the renovation analysis you
can see that based on the construction and operational costs the project would not even be
able to cover debt service. Neither we, nor any bank, would undertake a project with these
projections.
In addition, the renovated option does not solve the challenge of providing functional housing,
including areas with less than 7' ceilings, awkward bathroom conditions and grade changes
within the building due to the phasing and age of each portion as it was constructed over the
years.
Please feel free to reach out with any questions or comments.
Sincerely,
Andy Holloran