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MISSOULA OFFICE OF PLANNING & GRANTS 435 Ryman MISSOULA MT 59802-4292 PHONE: (406) 258-4657 MISSOULA COUNTY MEMORANDUM TO: Mike Barton, OPG FROM: John M. Newman, OPG DATE: October 19, 2010 SUBJECT: Update on Surplus City Property Disposition Research Introduction: This memo serves as an update concerning Council and City staff’s discussion of and research into the disposition of certain City-owned parcels of land deemed surplus. The information contained herein is intended to inform a future discussion at Council’s Administration & Finance (A&F) committee. Property Analysis – Excluded Parcels: Of the twenty-four properties identified by City Engineering as neither dedicated parkland nor right-of-way (Attachment nine are currently suitable for disposition and/or development (Attachment The remaining fifteen are unfavorable for a number of reasons as described below. Parcel Nos. 1 and 2 are associated with the England Boulevard Special Improvements District (SID) and are not contemplated for disposition via a surplus process. Nos. 3, 4, and 5, located on the north side of Missoula, are currently used by City Public Works for materials storage and tree waste dumping. The three parcels combined measure nearly 22 acres in size and are zoned OP-3 Public Lands and Institutions, which permits a limited number of mostly public and civic uses. In light of the location, size, current use, and zoning designation of the parcels, this land is not being considered for disposition at this time. Parcel No. 7, a triangular piece along the North Side pedestrian trail adjacent to the rail yard, measures 621 square feet and is too small for development beyond its current use as an undedicated pocket park. Nos. 8 through 12 comprise what is commonly known as the Fox Site, at the corner of Orange and Front Streets. These parcels have been contemplated for development collectively through various efforts preceding this examination and future development of the properties would proceed according to those efforts, not through this process. Parcel No. 15, on the west side of South 2nd Street West between Prince and River Streets, measures 1,933 square feet in area and is too small to support development given the requirements of its RM1-45 Residential zoning designation. It could, however, support a pocket park or garden space ---PAGE BREAK--- Parcel No. 20, a triangular parcel on the east side of Russell Street between South 7th and South 8th Streets, measures 2,310 square feet and is too small to support residential development. Additionally, the parcel will likely be utilized to some extent in the reconstruction of Russell Street. Nos. 23 and 24, located in South Hills along Crestline Drive adjacent to Wapikiya Park, were erroneously included in the list of surplus properties and are actually dedicated parkland. Property Analysis – Included Parcels: The nine parcels considered suitable by staff for disposition and/or development are numbered 6, 13, 14, 16-18, 21, and 22 (Attachment Parcel No. 6 is located at the corner of Greenough Drive and Alvina Drive. The parcel measures 16, 213 square feet in area and is zoned RT-10 Residential. The minimum lot size in this zoning district is 10,000 square feet for single family residential; multi-family residential is not permitted. The parcel could therefore support one single-family residential unit. Parcel Nos. 13, 14, and 16-18 are generally located along California Street between South 1st Street West and Dakota Street. The parcels are located within walking distance of many services, and are served well by pedestrian and bus transportation infrastructure. Additionally, the downtown area is within a short walking distance and the future Champion Mill Site redevelopment area is almost directly adjacent. Parcels 13 and 14 are zoned M1R-2 Limited Industrial/Residential and measure 6,343 and 4,840 square feet in area respectively. Per the M1R-2 district standards, Parcel 13 could support a six-unit residential development and Parcel 14 could support four units. Parcels 16-18 are zoned RM1-45 Residential and measure 8,420, 11,963, and 5,604 square feet in area respectively. The properties could support eight, eleven, and five-unit developments respectively per the RM1-45 district standards. In total, a development project encompassing the five parcels along California Street could result in a total of approximately thirty-four residential units in accordance with zoning. This approximation does not take into account parking and landscaping requirements or zoning district setbacks, which could diminish the total developable land in each parcel and thus lower the final unit count. Parcel No. 19, on the north side of South 2nd Street West near its intersection with Inez Street, measures 7,269 square feet and is zoned RM1-45 Residential. Based upon zoning, the property could support seven residential units. The parcel is the current site of Garden City Harvest’s 2nd Street Community Garden. The parcel supports 15 individual plots and a native perennial garden, and has been in the neighborhood for a number of years. The use of the parcel is not currently governed by a lease or otherwise formal agreement. Parcel No. 21, located near the intersection of Ivy, Marshall, and Franklin Streets immediately south of South 6th Street West, measures 8,991 square feet in area and is zoned RM1-45 Residential. The parcel could support an eight-unit residential development and is well-situated in terms of access to services, schools, and ---PAGE BREAK--- transportation. It should be noted that there is significant interest in this parcel for purposes of a community garden as relayed by Garden City Harvest. Parcel No. 22 is located along Highway 93 South near its intersection with Miller Creek Road and measures 32, 624 square feet. The parcel is zoned CR-3 Residential, which is a County residential zoning district. The CR-3 district permits up to 36 dwelling units per acre with a minimum lot size of 5,400 square feet; as such, this parcel could support approximately twenty-six residential units. Additionally, the CR-3 district permits some commercial development via conditional use permit, including business, professional, or governmental offices and personal service establishments. Potential Costs Associated with Disposition: The nine properties described above possess adequate legal descriptions for the purpose of conveyance. While surveying work may be necessary at sometime in the future to determine the exact locations of monuments, the cost of that work would be assumed by the purchaser or lessee. No surveying would be required to establish any of the parcels’ legal descriptions. The properties located along California Street would likely require Phase I Environmental Site Assessments vis-à-vis their proximity to the former Hart Refinery site (now the Loyola/Rita Mudd Activity Center) and the former Champion Mill site, both of which may have contributed to some sort of contamination of the five properties under consideration. Cursory discussions with several environmental consulting firms in Missoula indicated that average Phase I’s cost approximately $2,000 per site. However, those firms indicated that a bulk rate would likely apply considering the number of assessments ordered and the proximity of the sites to one another. Hence, a maximum cost of $10,000 can be expected for assessment of the California Street properties, with an actual cost likely to be less than $10,000. The remaining three parcels, Nos. 6, 21, and 22, do not have readily ascertained histories that suggest a need for Phase I Assessments. City Agency/Partner Group Interest: As previously noted, Garden City Harvest (GCH) currently operates a community garden on Parcel No. 19 and has a very strong interest in developing Parcel No. 21 for that same purpose. The group has worked extensively with City Parks & Recreation to develop an agreement with the City for formalizing the use of No. 19, as well as for facilitating the use/development of No. 21 and any future garden sites. The use of the former is clearly established, and Council will need to carefully consider the best use of the latter in deciding whether to lease the property to GCH or lease/sell the property for some other type of development. The Missoula Housing Authority (MHA) has expressed interest in developing a project utilizing the California Street properties. MHA has preliminarily suggested a mix of rental and owner-occupied units in the area. The Missoula Redevelopment Agency (MRA) has also expressed interest in utilizing the properties to some extent. MRA noted that development designed to serve those earning ---PAGE BREAK--- 80 to 125% of area mean income (AMI) would be of greatest interest to the group. Generally, MRA is available to assist with projects on surplus City property as requested. ATTACHMENTS: A. Original City Engineering Properties Spreadsheet B. Updated Properties List Reflecting Staff Recommendation C. Recommended Properties Photos