Click Here for the June 25 P&Z Application
Highlights from the proposal:
PLANNED UNIT DEVELOPMENT (“PUD”) PROPOSAL
A Large Scale PUD requires a three step process: Conceptual, Preliminary and Final review.
The Applicants indicate the total land area of the PUD is 29,375 square feet. The site is currently comprised of five lots. A future subdivision application will propose to combine the lots into two total lots. A 10% land dedication of the entire property equals 2,938 square feet for a total land area of 26,438 square feet utilized for the purposes of determining development calculations on the Property. Proposed uses on the site are multi-family free market residential (condominium ownership) uses, deed restricted ancillary amenity common element space for the multi-family residential uses, free market commercial use, two onsite affordable housing mitigation units, deed restricted public purpose facility use (the Transfer Warehouse), and parking within a parking structure below grade.
PUD BENEFITS OFFERED:
1. Transfer Warehouse.
The applicants are offering to execute and record a Transfer Warehouse Deed Restriction, limiting ownership of the Transfer Warehouse parcel and structure to a qualified Transfer Warehouse Owner and restricting its uses to Public Facility. As part of a proposed development
agreement, the Applicants agree to rehabilitate the Transfer Warehouse with an associated redevelopment plan that would be approved concurrently with the overall development for the Property to a “shell condition.” The Applicant also agree that the rehabilitation to a “shell condition” would occur concurrent with the free market development. A Certificate of Occupancy would not occur for the overall project unless the Transfer Warehouse Rehabilitation is also complete.
Once the shell space is completed the applicant intends to sell the Transfer Warehouse Parcel to a suitable Transfer Warehouse Owner. The value would be based upon the deed restricted property, less the value of the land dedication, and the costs to rehabilitate the Transfer Warehouse into a viable structure would be imbedded into the sale price.
There would be language in the legal agreements ensuring the Transfer Warehouse Parcel deed restriction survives foreclosure (if applicable) and provisions that state that the property would revert back to Town ownership should the terms of the development agreement not be fulfilled.
This public benefit is in part response to the required land dedication requirements found at LUC Section 6-410 Subdivision Dedication Requirements, that pursuant to a large scale subdivision 10% of the gross land area of the subdivision be dedication to the Town or other entity as determined by Town Council to be used for public parks and recreation areas, open space, or municipal purposes requiring land, like a public purpose facility, as proposed.
In addition to the above requirement, a development agreement outlining timing of completion of the “shell space” to a qualified non-profit entity is also being offered. The development agreement is being offered in part due to past public comment regarding concern that the Transfer Warehouse would otherwise not be rehabilitated and repurposed.
Value Analysis of Transfer Warehouse Public Benefit.
This benefit is subject to review and approval of a large scale subdivision and Town Council acceptance of the land dedication in the proposed form. The public process related to redevelopment of the southwest corner has emphasized the importance in seeing the Transfer Warehouse rehabilitated within a reasonable timeframe and assurances that this would occur.
The proposal being reviewed by the P & Z offers to make these assurances. The agreement between the Applicant and future Transfer Warehouse owner involves a monetary transaction which is a private agreement as outlined above including the value of the Applicant’s resources to rehabilitate the Transfer Warehouse to a shell condition. A deed restriction limits the use and users and typically the value associated with a deed restricted property is less than free market which is also discussed by the applicant in their narrative and summarized above.
For the purposes of understanding value, should the applicants have proposed a land dedication as a fee in lieu (that is subject to Town Council approval) when a land dedication does not occur onsite, the fee in lieu pursuant to the 2015 Planning Fee Schedule is valued at $400 a square foot. The value of a 10% land dedication if paid to the Town of Telluride would
be $400 x 2,937 square feet = $1.17 million dollars. It is complicated to distill a monetary value for the proposed public benefit of a deed restricted public purpose facility and this may be a point of P & Z discussion. However, there is considerable community value in the rehabilitation and re-use of the Contributing Transfer Warehouse structure as a public purpose facility in this area of Town.