CITY OF BATTLE GROUND STAFF REPORT

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1 To: From: CITY OF BATTLE GROUND STAFF REPORT Jeff Swanson, City Manager City Council Date: August 21, 2107 Proceeding Type: Subject: Erin Erdman, Community Development Director PRESENTATION Self Service Storage Facility Legislative History: First Presentation: June 19, 2017 Second presentation: August 21, 2017 Action: Staff Report Summary Mr. Fontenette, developer of Millcreek Town Center and Scotton Landing, will be presenting findings on a 4.7-acre piece of property located to the south of Scotton Landing and the feasibility of a self-storage facility on this site. Background This topic was briefly discussed during an administrative report on June 19, Discussed was the potential for adding self-service storage facilities to commercial zoning districts (they are currently only allowed in light industrial), as well as the potential to enter into a development agreement to allow this on a case-by-case basis. Several other jurisdictions in our area allow self-service storage facilities to be built in commercial districts. For example in the City of Vancouver, it is allowed in community and general commercial districts. In Clark County, it is allowed in general and community commercial districts. The City of Camas allows it as a conditional use in community and regional commercial districts. Page 1 of 2

2 Options If Council is interested in this proposal then there are a couple of options, One; entering into a very limited development agreement on this parcel that would allow for self-storage use only (outside of the normal zoning regulations of Regional Commercial). Second; incorporate selfservice storage facilities into the commercial zoning ordinance as a conditional use. Attachments Attached are two (2) letters for your review. One from the current property owner (Exhibit #1) and one from Johnson Economics (Exhibit #2) regarding the benefits associated with this proposal. Page 2 of 2

3 August 8, 2017 City of Battleground 109 S.W. 1 st Street Battle Ground, WA Dear Planning, I am writing on behalf of my client, David Ott, concerning the property located a SW 10 th Ave., Battle Ground, WA During the 2+ years that Mr. Ott has owned this property, we have looked at various ways to develop the property under the commercial zoning. Originally, Mr. Ott was told that there was just a very small corner of his property located in wetlands. After an environmental study, it became clear that 1.45 acres of the property on the west end were wetlands. The lack of access, the huge costs associated with mitigating the wetlands, and the narrow dimensions of the lot have really made this property undevelopable for commercial purposes. The only real option due to the site constraints would be to incorporate this property into Mr. Fontenette s current project and to give consideration to non traditional commercial uses. We would hope that through being creative, the City would be expanding upon the already successful project to the North. Michael P. Townsend Michael P. Townsend Managing Broker

4 MEMORANDUM DATE: August 9, 2017 TO: T.J. Fontenette Principal Properties, LLC PO Box Vancouver, WA FROM: Jerry Johnson JOHNSON ECONOMICS, LLC SUBJECT: Economic Benefits Associated with a Proposed Self Storage Facility in Battle Ground, Washington Johnson Economics has been asked to review and comment on a proposed self-storage facility to be located in Battle Ground, Washington. The development would be a three-story facility, offering approximately 650 storage units on a 1.48-acre property. Most of the units will be heated, with access via covered loading bays. The facility would be integrated into the Scotton Landing development, which includes a mix of retail, office, and residential uses. Additional storage units may be included to the east of the facility. The property is currently zoned RC Regional Commercial by the City of Battle Ground, which does not allow this use type. While this use type is commonly allowed under commercial zoning, it is limited to light industrial districts in Battle Ground. Our key conclusions regarding the proposal are as follows: The site is significantly constrained, which would likely preclude development for alternative developers and uses Storage is the highest and best use of the site, if allowed by entitlements The proposed facility can be successfully integrated into the Scotton Landing Project The facility will provide a range of economic and fiscal benefits to the local community The proposed development program is likely the only viable use for the site in the foreseeable future. The program would be expected to provide a needed and valuable amenity to the local community, both for residents as well as businesses. In addition, the project will contribute fiscally to the City of Battle Ground while requiring little if any services. This memorandum summarizes our evaluation of the proposed development. 621 SW ALDER, SUITE 605, PORTLAND, OR /

5 SITE CHARACTERISTICS The proposed development would be located on the eastern side of the Ott Property, a 4.74-acre site immediately south of the current Scotton Landing community. The site has a significant number of constraints that limit development opportunities. The western portion of the site is impacted by wetlands, which limit developable area to the northern portion of the site. The wetland buffer zone extends beyond the edge of the delineated wetland, further impacting development. The site is narrow (160 wide from north to south), with the wetland area providing for an even narrower development site on much of the site. The site currently has no utilities, and limited access. PRELIMINARY SITE PLAN The eastern portion of the site offers a high level of visibility from SR503 (SW 10 th Avenue), but access is constrained and must be obtained through private roadways in the Scotton Landing development (via 12 th Avenue). Retail commercial development of the site would likely require construction of 15 th Avenue, which would entail significant wetland impacts and associated costs. HIGHEST AND BEST USE The site s wetland impacts, limited access and narrow width constrains the number of viable uses on the site. The usable area on the site is limited in scale and narrow in configuration. While offering good visibility, access will be indirect and limited to a single access point (12 th Street). The intersection of SE Scotton and NE 122 nd is the only viable access point for the area. The site s physical and location characteristics make it poorly suited for alternative uses, 2 P A G E

6 leaving storage as the likely highest and best use of the site. The configuration of the site would limit layout and truck access options, while the limited access would make retail uses not viable. While storage is not currently an allowed use on the site, there are no apparent alternative uses that would be viable on the site. In addition, as the sole access point is a private roadway in Scotton Landing, the owner of this property is likely the only party capable of developing this parcel. If the property is not developed as envisioned, it is likely to remain unutilized for the foreseeable future. FISCAL IMPACTS The property if developed would yield fiscal benefits to the City of Battle Ground. These include sales tax contributions from development of the site, as well as ongoing property tax Assumed Taxable Amount $5,700,000 contributions. The total construction cost is estimated at $7.7 million, State of Washington $370,500 with building and site work costs accounting for $5.7 million. Assuming Local City/County $59,850 $5.7 million is taxable, current sales tax rates would yield over $48,000 City of Battle Ground $48,450 to the City of Battle Ground. In addition, permit and impact fees are estimated at about $250,000. The City of Battle Ground s current property tax millage rate is per thousand dollars of assessed value. The property at completion is expected to be worth more than $10.1 million when fully leased, yielding annual property taxes of between $17,000 and $18,000 in current dollars to the City. The cost of services for the City of Battle Ground associated with this project are expected to be negligible. COMMUNITY IMPACTS The development of storage facilities at the subject site would address a local need. There are currently four selfstorage facilities within a three-mile radius of this project, offering a total of 840 units. Current occupancy in these projects is estimated at 98%. The Battle Ground area will have a ratio of 6.4 square feet of self-storage space per capita if the project is completed, which is well below the industry standard of 7 square feet per capita. By addressing local needs for storage, the facility will offer convenience and increased choice for local residents, while reducing the vehicle miles travelled to access storage. In addition, the provision of climate controlled space provides an important service to local businesses, such as material and record-keeping. Availability of the project to the local market will save time and expense for local residents and businesses. 3 P A G E