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I4. Ord. 1886, Recreational Amenity Text AmendmentKALisPEii. Development Services Department 201 Ist Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine REPORT TO: Doug Russell, City Manager FROM: Kari Barnhart, Planner 11 SUBJECT: KZTA-22-02 — Recreational Amenity Zoning Text Amendment MEETING DATE: July 5, 2022 BACKGROUND: The Kalispell Planning Department is requesting a zoning text amendment to Section 27.34.060 of the Kalispell Zoning Ordinance. The amendment would add a subsection outlining the process for determining fair market value of unimproved land for recreational amenities associated with multi -family developments. The amendment would also outline how equivalent funds could be used if they were to be paid to the City. The City of Kalispell City Council held two work sessions on October 25, 2021, and April 11, 2022, regarding the recreational amenity requirement and the proposed amendments. Following the second work session, the Council directed staff to take the proposed amendment language through the planning process for their consideration. The proposed amendment would make the value considered for recreational amenities more equitable, as the method for determining market value for unimproved land isn't clearly laid out currently. The proposed amendment would set forth a clear process for determining fair market value of unimproved land, similar to how parkland value is determined within subdivisions. The changes to the current text of the code sections are indicated below. Deletions are struck -out and additions are underlined. Section 27.34.060 would be amended to read: 27.34.060: Dwellings, Multi -family. (1) All multi -family dwellings shall provide pedestrian access from the main entrance(s) of the building(s) to the right-of-way. (2) For multi -family dwellings with five or more units (including common developments which contain five or more units), one of the following shall be provided: (a) 500 square feet of land per unit which has recreational value for the residents; (b) Recreational amenities equivalent to the fair market value of 500 square feet of undeveloped land per unit; (c) Equivalent funds payable to the city of which 50% will be used for maintenance and 50% towards the to development of neighborhood facilities in the immediate vicinity; or (d) A combination of any of the above. (3) Fair market value of land for the purpose of these regulations is the value of unimproved land after it has been annexed and given municipal zoning designation. Satisfactory evidence of fair market value shall be demonstrated by either of the following: (a) An appraisal report conducted by a Montana State licensed general real estate appraiser prepared within one (1) year of the date of building permit application. (b) The sale price of the property being developed documented by a purchase and sell agreement or other executed contract, if it was purchased within one (1) year of the date of the building permit application, provided the property's zoning designation remains unchanged and sale was an arm's length transaction. The Kalispell Planning Board held a duly noticed public hearing on June 14, 2022, to consider the request. Staff presented staff report KZTA-22-02 providing details of the proposal and evaluation. Staff recommended that the Planning Board adopt the staff report as findings of fact and recommend to the Council that the proposed zoning text amendment be approved. No comments were received at the public hearing. The public hearing was closed and a motion was presented to adopt staff report KZTA-22-02 as findings of fact and recommend to the Kalispell City Council that the amendment be approved. Board discussion concluded that the request was appropriate, and the motion was approved on a unanimous vote. RECOMMENDATION: TEXT AMENDMENT: It is recommended that the Kalispell City Council approve the first reading of Ordinance 1886, an ordinance to amend Section 27.34.064 of the City of Kalispell Zoning Ordinance 1677, the proposed amendment would set forth a clear process for determining fair market value of unimproved land. FISCAL EFFECTS: There are no anticipated fiscal impacts at this time. ALTERNATIVES: Deny the request. ATTACHMENTS: Ordinance 1886 June 14, 2022, Kalispell Planning Board Minutes Staff Report Aimee Brunckhorst, Kalispell City Clerk ORDINANCE NO. 1886 AN ORDINANCE AMENDING THE KALISPELL ZONING ORDINANCE (ORDINANCE NO. 1677), BY AMENDING SECTION 27.34.060, DWELLINGS, MULTI -FAMILY, TO OUTLINE THE PROCESS TO DETERMINE THE FAIR MARKET VALUE OF UNIMPROVED LAND FOR RECREATIONAL AMENITIES AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Kalispell has submitted a written request to amend the Kalispell Zoning Ordinance, by adding a subsection outlining the process for determining the fair market value of unimproved land for recreational amenities associated with multi- family developments; and WHEREAS, the request was forwarded to the Kalispell City Planning Board and Zoning Commission by the Kalispell Planning Department as a recommended text amendment by adding a subsection outlining the process for determining the fair market value of unimproved land for recreational amenities associated with multi- family developments after making such evaluation under 27.29.020 of the Kalispell Zoning Ordinance; and WHEREAS, the Kalispell City Planning Board and Zoning Commission recommended that the text of the Kalispell Zoning Ordinance be amended by adding a subsection outlining the process for determining the fair market value of unimproved land for recreational amenities associated with multi -family developments; and WHEREAS, the City Council has reviewed the KPD Report and the transmittal from the Kalispell City Planning Board and Zoning Commission and hereby adopts the findings made in Report #KZTA-22-02 by adding a subsection outlining the process for determining the fair market value of unimproved land for recreational amenities associated with multi -family developments. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The City of Kalispell Zoning Ordinance, Ordinance No. 1677, is hereby amended as follows on Exhibit "A". SECTION 2. All parts and portions of Ordinance No. 1677 not amended hereby remain unchanged. SECTION 3. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 2022. ATTEST: Aimee Brunckhorst, CMC City Clerk Mark Johnson Mayor EXHIBIT A 27.34.060: Dwellings, Multi -family. (1) All multi -family dwellings shall provide pedestrian access from the main entrance(s) of the building(s) to the right-of-way. (2) For multi -family dwellings with five or more units (including common developments which contain five or more units), one of the following shall be provided: (a) 500 square feet of land per unit which has recreational value for the residents; (b) Recreational amenities equivalent to the fair market value of 500 square feet of undeveloped land per unit; (c) Equivalent funds payable to the city of which 50% will be used for maintenance and 50% towards the to development of neighborhood facilities in the immediate vicinity; or (d) A combination of any of the above. (3) Fair market value of land for the purpose of these regulations is the value of unimproved land after it has been annexed and given municipal zoning designation. Satisfactory evidence of fair market value shall be demonstrated by either of the following: (a) An appraisal report conducted by a Montana State licensed general real estate appraiser prepared within one (1) year of the date of building permit application. (b) The sale price of the property being developed documented by a purchase and sell agreement or other executed contract, if it was purchased within one (1) year of the date of the building permit application, provided the property's zoning designation remains unchanged and sale was an arm's length transaction. KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING JUNE 14, 2022 CALL TO ORDER AND ROLL The regular meeting of the Kalispell City Planning Board and Zoning CALL Commission was called to order at 6:00 p.m. Board members present were Chad Graham, Doug Kauffinan, Rory Young, Joshua Borgardt, Kurt Vomfell, Pip Burke, and Kevin Aurich. PJ Sorensen, Kari Barnhart, and Jarod Nygren represented the Kalispell Planning Department. APPROVAL OF MINUTES Vomfell moved and Kauffinan seconded a motion to approve the minutes of the May 10, 2022, meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote of acclamation. HEAR THE PUBLIC None. KPP-22-05, KPUD-22-03, AND Files KPP-22-05, KPUD-22-03, and KZC-22-04 - A request from KZC-22-04 — ASPEN CREEK 520 Three Mile Drive Associates, LLC, for a zone change with a WEST Residential Planned Unit Development ("PUD") overlay and major preliminary plat on approximately 20.0 acres of land. The development, called Aspen Creek West, would include 60 residential lots (31 detached single-family and 29 townhomes) along with roads, parks, and open space. The property is located at 520 Three Mile Drive. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report # KPP-22-05, KPUD-22-03, and KZC-22-04. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report # KPP-22-05, KPUD-22-03, and KZC- 22-04 as findings of fact and recommend to the Kalispell City Council that the zoning for the property be changed from R-2 (Residential) to R-3 (Residential), and that the PUD overlay and preliminary plat be approved subject to 37 conditions. BOARD DISCUSSION Graham noted that the city does not have jurisdiction on Three Mile Drive in response to a public comment pertaining to the speed limit. Sorensen speed limits are not part of PUD approval. Nygren stated that a speed study would be required. PUBLIC COMMENT Karla Ryan — 145 Theodore St — feels that the city is sacrificing the quality of life for its current residents, there is not enough infrastructure to support more housing, and the additional traffic will make exiting her neighborhood next to impossible. She also feels that West Valley School cannot support the additional students. She would like this project to be tabled until it can be managed without further hinderance to the community. Margaret Satchell — 102 Matthew Ct — agreed with Ms. Ryan's comments and stated that she presently experiencing significant traffic going to work. She feels that the additional traffic will make it worse. She would like to know what the egress plan is for construction vehicles since there are 20- 25 children that live on her street. Lastly, she asked if there have been any wildlife studies for this area. Kalispell City Planning Board Minutes of the meeting of May 10, 2022 Pagel Robin Speer — 431 1" Ave W - WGM Group —land planner for this project, talked about this project, addressed some of the public comments. MOTION — KZC-22-04 Kauffman moved and Vomfell seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KZC-22-04 as findings of fact and recommend to the Kalispell City Council that the zoning for the property be changed from R-2 (Residential) to R-3 (Residential) with a PUD overlay. BOARD DISCUSSION Graham stated that the zone change fits the current growth policy. ROLL CALL Motion passed unanimously on a roll call vote. MOTION — KPUD-22-03 Vomfell moved and Kauffman seconded a motion that the Kalispell Planning Board adopt staff report #KPUD-22-03 as findings of fact and recommend to the Kalispell City Council that the PUD for Aspen Creek West be approved subject to conditions listed. BOARD DISCUSSION Board members discussed the benefit of more housing, traffic concerns are being addressed. Nygren addressed public comments regarding infrastructure, transportation plans, improvements, and wildlife. Sorensen stated that Fish & Wildlife did not have concerns with this development. Graham noted that all City streets are public infrastructure. ROLL CALL Motion passed unanimously on a roll call vote. MOTION — KPP-22-05 Vomfell moved and Kauffman seconded a motion that the Kalispell Planning Board adopt staff report #KPP-22-05 as findings of fact and recommend to the Kalispell City Council that the preliminary plat for Aspen Creek West be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Nygren advised that the bridge that services a single-family home may provide some traffic relief. Graham and Sorensen discussed potential tax revenue. ROLL CALL Motion passed unanimously on a roll call vote. KZTA-22-02 - RECREATIONAL A request from the City of Kalispell for a zoning text amendment AMENITIES amending Section 27.34.060 of the Kalispell Zoning Ordinance. The amendment would add a subsection outlining the process for determining fair market value of unimproved land for recreational amenities associated with multi -family developments. The amendment would also outline how equivalent funds could be used if they were to be paid to the City. STAFF REPORT Karl Barnhart representing the Planning Department reviewed Staff Report KZTA-22-02. Staff recommends that the Kalispell City Planning Board adopt Staff Report KZTA-22-02 as findings of fact and recommend to the Kalispell City Council that the proposed text amendment be approved. BOARD DISCUSSION Young asked for clarification of the "arms' length transaction; Sorensen advised it as a general legal description. Nygren stated that this amendment addresses inequities in the end result of recreational amenities. PUBLIC COMMENT None. MOTION — KZTA-22-02 Kauffman moved and Vomfell seconded a motion that the Kalispell Planning Board adopt staff report #KZTA-22-02 and recommend to the Kalispell City Planning Board Minutes of the meeting of May 10, 2022 Page 12 Kalispell City Council that the proposed amendment be adopted as provided. BOARD DISCUSSION Kauffman stated this is a huge improvement. Logical way that defines recreational amenities. ROLL CALL Motion passed unanimously on a roll call vote. OLD BUSINESS Nygren updated the board on the recent city council meeting. NEW BUSINESS Nygren updated the board on the July planning board meeting. ADJOURNMENT The meeting adjourned at approximately 7:41 m. Chad Graham President APPROVED as submitted/amended: Kirstin Robinson Recording Secretary Kalispell City Planning Board Minutes of the meeting of May 10, 2022 Page13 MULTI -FAMILY RECREATIONAL AMENITIES REQUIREMENTS ZONING TEXT AMENDMENT STAFF REPORT #KZTA-22-02 KALISPELL PLANNING DEPARTMENT June 8, 2022 This is a report to the Kalispell City Planning Board and the Kalispell City Council regarding a request by the Kalispell Planning Department for a text amendment to the Kalispell Zoning Ordinance to amend Section 27.34.060 relating to recreational amenities. A public hearing has been scheduled before the Planning Board for June 14, 2022, beginning at 6:00 PM in the Kalispell City Council Chambers. The Planning Board will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION The Kalispell Planning Department is requesting a zoning text amendment to Section 27.34.060 of the Kalispell Zoning Ordinance. The amendment would add a subsection outlining the process for determining fair market value of unimproved land for recreational amenities associated with multi -family developments. The amendment would also outline how equivalent funds could be used if they were to be paid to the City. The City of Kalispell City Council held two work sessions on October 25, 2021, and April 11, 2022, regarding the recreational amenity requirement and the proposed amendments. Following the second work session, the Council directed staff to take the proposed amendment language through the planning process for their consideration. The proposed amendment would make the value considered for recreational amenities more equitable, as the method for determining market value for unimproved land isn't clearly laid out currently. The proposed amendment would set forth a clear process for determining fair market value of unimproved land, similar to how parkland value is determined within subdivisions. A: Applicant: City of Kalispell 201 First Avenue East Kalispell, MT 59901 B. Area Effected by the Proposed Changes: The text amendment would apply to new multi -family developments with five or more units within the City of Kalispell. Page 1 of 4 C. Proposed Amendment: The changes to the current text of the code sections are indicated below. Deletions are struck -out and additions are underlined. Section 27.34.060 would be amended to read: 27.34.060: Dwellings, Multi -family. (1) All multi -family dwellings shall provide pedestrian access from the main entrance(s) of the building(s) to the right-of-way. (2) For multi -family dwellings with five or more units (including common developments which contain five or more units), one of the following shall be provided: (a) 500 square feet of land per unit which has recreational value for the residents; (b) Recreational amenities equivalent to the fair market value of 500 square feet of undeveloped land per unit; (c) Equivalent funds payable to the city of which 50% will be used for maintenance and 50% towards the to development of neighborhood facilities in the immediate vicinity; or (d) A combination of any of the above. (3) Fair market value of land for the purpose of these regulations is the value of unimproved land after it has been annexed and given municipal zoning designation. Satisfactory evidence of fair market value shall be demonstrated by either of the following: (a) An appraisal report conducted by a Montana State licensed general real estate appraiser prepared within one (1) year of the date of building permit application. (b) The sale price of the property being developed documented by a purchase and sell agreement or other executed contract, if it was purchased within one (1) year of the date of the building permit application, provided the property's zoning designation remains unchanged and sale was an arm's length transaction. Page 2 of 4 D. Staff Discussion: The City of Kalispell has experienced significant growth over the last several years which has led to an increase in multi -family housing developments and density in general. An important part of developing a multi -family housing community and keeping up with the density is providing the residents with recreational and open space. This can include indoor community centers, fitness centers and/or outdoor picnic areas or recreational space. Staff has found that property values have been very different throughout the valley in different locations and believes that it is important to create a fair and more uniform process when it comes to calculating the required recreational amenity/open space valuation. It's important to keep in mind that someone who bought their land 20 years ago may feel very differently about their land value as someone who purchased their land within the last year. EVALUATION BASED ON STATUTORY CRITERIA The statutory basis for reviewing a change in zoning is set forth by 76-2-303, M.C.A. Findings of Fact for the zone change request are discussed relative to the itemized criteria described by 76-2-304, M.C.A. Is the zoning regulation made in accordance with the growth polio The proposal is consistent with the growth policy. Chapter 3, Community Growth and Design, Recommendation 3 of the Growth Policy, states that the City should "continually monitor, update, and streamline development codes to keep abreast of changing trends and technologies, to better coordinate the development review process, and to avoid unnecessary, costly delays in processing applications." This helps to provide more clarity when working with developers. 2. Does the zoning regulation consider the effect on motorized and nonmotorized transportation systems? The proposed amendment would not have a direct effect on the transportation systems themselves. However, by helping to establish on -site or near -by recreational amenities, this amendment could reduce the need for residents to travel to recreate, which would reduce traffic impacts of new developments. 3. Is the zoning regulation designed to secure safety from fire and other dangers? Any development will continue to be required to meet building, fire, and health codes. 4. Is the zoning regulation designed to promote public health, public safety, and the general welfare? The general health, safety, and welfare of the public will be protected by city regulations which would apply to the development of any of the properties affected. Page 3 of 4 5. Does the zoning regulation consider the reasonable provision of adequate light and air? The development standards within the zoning ordinance help provide for appropriate interaction between developed properties, including light and air. Specifically, recreational amenities and associated requirements are often a key component for providing recreational spaces in dense environments where open space is often limited, therefore improving the quality of life of those residents who might not otherwise have access to recreational facilities. 6. Is the zoning regulation designed to facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements? The zoning ordinance creates a more predictable, orderly, and consistent development pattern. That pattern allows for a more efficient allocation of public resources and better provision of public services. As mentioned above, the recreational amenity requirement facilities recreational amenities that provide many of the same benefits as parks. The proposed ordinance assures that each development is providing such on an equal basis. 7. Does the zoning regulation consider the character of the district and its peculiar suitabili . for particular uses? The amendment reflects the desire to provide high quality developments that provide for a high quality of life through recreation on an equal basis. . 8. Does the zoning regulation consider conserving the value of buildings? Building values are conserved by providing reasonable standards within zoning districts and through development standards under city regulations including building and fire codes. The proposed ordinance will increase the value of buildings as a recreational component is being added. 9. Does the zoning regulation encourage the most appropriate use of land throughout the municipals . and promote compatible urban growth? The amendment helps create consistency throughout comparable zones, which promotes compatible urban growth. RECOMMENDATION Staff recommends that the Kalispell City Planning Board adopt the findings in staff report KZTA-22-02 and recommend to the Kalispell City Council that the proposed amendment be adopted as provided herein. Page 4 of 4