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Home My WebLink AboutMark Bottles - 5.181 C.Jay Coles From:Caleb Hood Sent:Thursday, May 18, 2017 9:56 AM To:Joshua Beach Cc:C.Jay Coles Subject:FW: Letter Regarding Goddard Creek Subdivision Hearing on May 23rd Attachments:DOC051817-05182017091749.pdf; Meridian,McMillan,2780W,L,S-MB.PDF FYI Caleb -----Original Message----- From: Mark Bottles [mailto:MBottles@markbottles.com] Sent: Thursday, May 18, 2017 9:51 AM To: Anne Little Roberts; Genesis Milam; Joe Borton; Keith Bird; Luke Cavener; Ty Palmer; Bill Nary; mayortammy; Bill Parsons; Caleb Hood Cc: Brian Rallens; Mark Bottles Subject: Letter Regarding Goddard Creek Subdivision Hearing on May 23rd Mayor Tammy, Council Members, and City Officials, Please see the attached letter regarding the property on McMillan that has been submitted to you for hearing on Tuesday as the Goddard Creek Subdivision, along with my brokerage flyer which is referenced in the letter. I would kindly ask you to read the entirety of the attached letter, as I believe this project is a good one for the City of Meridian and much time and energy has been poured into this to get to this point. Please feel free to call myself or Brian Rallens in my office with any questions or comments, and we look forward to the hearing on Tuesday evening. Thank you for your time and consideration, Mark Bottles Mark Bottles Mark Bottles Real Estate Services Corbett Bottles Real Estate Auctions 208.947.1075 Direct 208.377.5700 Office 208.866.2222 Cell 208.377.0035 Fax 839 S. Bridgeway Place Eagle, Idaho 83616 www.markbottles.com www.corbettbottles.com Mn__ MARK BOTTLES REAL ESTATE SERVICES 839 S. Bridgeway Place Eagle, Idaho 83616 May 17, 2017 Meridian City Council City of Meridian 33 E. Broadway Avenue Meridian, ID 83642 Dear Council Members, I am writing in regards to the project that has been proposed on the 12.25 acres which Daniel G. ("Hoot") Gibson owns on McMillan east of Ten Mile near Goddard Creek Way, which I am the listing broker for. I have been marketing the property for Mr. Gibson since June of 2015, in conjunction with my associate, Brian Rallens. Brian and I are also the brokers that procured Mr. Gibson's buyers for the property, who have been under contract with Mr. Gibson since May of 2016 and have been working on the project which is before you for decision next Tuesday, May 23`d. I would like to comment on the project for your consideration, both as a commentary on the entitlement process which has been working through the City of Meridian on this parcel to get to this point, as well as some commentary on the market in general for the community and projects of this type. I have been a broker in this community for 25 years and have transacted a significant amount of property throughout Meridian since it was a small community of about 10,000 people. I have been highly attuned to the growth and evolution of this community and have been a part of many of the projects that you see as you drive the streets of this town. I also have 9 other licensed agents in my office, including a former developer who spent 17 years working in Meridian as both a residential and commercial developer and has a wealth of information on the market for all product types over the years. It is through this foundation of experience and knowledge that I present this letter, and I kindly ask you to consider my comments. When I first began marketing the property for Mr. Gibson, I discussed the parcel with planners at the City of Meridian regarding the type of product that the property would be marketable for. Through the discussion, there were several options that were plausible, but it was agreed that the most likely, and highest and best use for the property would be as either storage or multi -family. In fact, as a result of the discussion with planning, it was discussed that it would be advantageous for my client, and the City, to put a rider on the sign that said "Potential Apartments -Storage Units -Assisted Living" and we actively marketed the property as such. I have attached my flyer to this letter as well, which you'll see leads with the comment "Excellent site for Apartments, Storage Units and Assisted Living". This was done with the understanding that the application process for a zoning change would need to be undertaken and entitlement would need to be 839 S. Bridgeway Place, Eagle, Idaho 83616 PH: 208.377.5700 FX: 208.377.0035 obtained, but it was understood that the appetite of the City would very likely cater to that change as this type of development was desired. In the procurement of these Buyers for the property, I also encouraged them to interact with the planners at the City, and in their conversations with the planners which included great detail on the project, renderings, specifics on plans and density, etc, the universal initial response was very positive and affirming. This affirmation led these Buyers to undertake the time and expense of hiring architects and engineers to create their plans, as well as to be willing to proceed with Mr. Gibson under their contract with him, which required them to deposit non-refundable money with the Seller for the time they needed to work through the entitlement process. Between all avenues of expense, my understanding is that the Buyers have well eclipsed $150,000.00 in costs to pursue this project, all of which was encouraged and fully vetted through the City planners prior to undertaking that effort. That is the historical perspective on the property, which as you can understand leads us all to be perplexed, concerned, and frustrated by the response at Planning and Zoning in April. While I understand the entitlement process, and certainly am not claiming that anything was guaranteed, I must admit that this journey through the City of Meridian with my clients on both sides of this transaction has been one of the most confusing of my career. The path seemed very clear from the beginning, and we all felt we were accomplishing exactly what the City desired for this parcel. Now, please let me take a moment to comment on the proposed alternative uses for this property apart from the proposed project, and their palatability in the marketplace, as it has come to my attention that much of the discussion surrounding what this property would be utilized for were this project not completed would be light office. First, let me say as a prominent broker in this community that understands pricing and demand for development dirt and sees a great deal of transactions, that I can say with confidence that there is very little demand for mid -block light office in the City of Meridian, especially this area where the amount of inventory has already created a stagnant market. There are hard corners at lighted intersections in this area, including the entrance to Paramount off of Linder, the NW and SW corners of Linder and McMillan, the NEC of Meridian and Ustick, the NWC of Meridian and McMillan, all four corners of McMillan and Ten Mile, the NWC of Ustick and Linder, and many more, not to mention the many mid -block office lots available throughout Meridian that have been slow to move. The market has changed significantly regarding this property type, and the demand has shrunk considerably. The inventory created through the mid 2000's boom still hasn't been absorbed, and many projects have brought even more inventory to market of late due to requirements under their development agreement with the City, though the market doesn't want to absorb it. Additionally, with the incredible growth continuing in the Meridian area, and the desire of the mayor and council to bring additional jobs to the city along with large projects like the Idaho College of Osteopathic Medicine (ICOM) which just broke ground this week, the demand for multi -family housing will only increase. I believe the true question surrounding multi -family surrounds what type of project the City would like to see, as the growth is inevitable, but the quality of growth is something that can certainly be discussed. With the lower density, the value -add features which cater to a more professional tenant, and the amenities provided within 839 S. Bridgeway Place, Eagle, Idaho 83616 PH: 208.377.5700 FX: 208.377.0035 this project I would encourage the Council that this is exactly the type of growth we want to encourage at a time when the growth is coming quickly. In closing, I would urge the Council to heavily consider these factors in contemplating the project at hand. This project brings the high end of both storage and low-density multi -family, both of which are the premier product type in their class. When this project came together, I truly believed it would be the very best use for the property, both for the landowner, as well as for the surrounding community, and I strongly encourage you that this type of development is what this City desperately needs, rather than more office land that will weigh the market down and leave vacant holes in our community of ground that won't absorb. The project at hand is an exceptional one, and the applicants in front of you have followed your direction at every tum to make this a project that is desired by and advantageous for the City of Meridian. I highly endorse this project, and ask you to do the same. Please feel free to contact me with any questions or concerns. I look forward to further discussion, and hope to have continued partnership in the development and community that has made this City a great one. Best Regards, Mark Bottles Kmgoi4 Broker/Owner Mark Bottles Real Estate Services Cc: Brian Rallens, Mark Bottles Real Estate Services 839 S. Bridgeway Place, Eagle, Idaho 83616 PH: 208.377.5700 FX: 208.377.0035 839 S. Bridgeway Place Eagle, Idaho P(208) 377-5700 F(208) 377-0035 www.markbottles.com DEVELOPMENT LAND For Sale This information, while not guaranteed, is from sources we believe to be reliable. This data is subject to price changes, corrections, errors, omissions, prior sale, and/or withdrawal. Mark Bottles Cell: (208) 866-2222 | Office: (208) 947-1075 mbottles@markbottles.com PROPERTY INFORMATION: Address: 2780 W McMillan Rd Meridian, Idaho 83646 Location: between Linder & Ten Mile on McMillan Rd Acres: +/-12.25 Zoning: City of Meridian-R-4 Price: $2,400,000 COMMENTS: • Excellent site for Apartments, Storage Units and Assisted Living • Close to shopping and restaurants • Great location in high growth area • Utilities available • Proximity to schools makes this a fantastic location for apartments 839 S. Bridgeway Place Eagle, Idaho P(208) 377-5700 F(208) 377-0035 www.markbottles.com DEVELOPMENT LAND For Sale This information, while not guaranteed, is from sources we believe to be reliable. This data is subject to price changes, corrections, errors, omissions, prior sale, and/or withdrawal. Mark Bottles Cell: (208) 866-2222 | Office: (208) 947-1075 mbottles@markbottles.com MID LEVEL AERIAL 2780 W MCMILLAN, MERIDIAN 839 S. Bridgeway Place Eagle, Idaho P(208) 377-5700 F(208) 377-0035 www.markbottles.com DEVELOPMENT LAND For Sale This information, while not guaranteed, is from sources we believe to be reliable. This data is subject to price changes, corrections, errors, omissions, prior sale, and/or withdrawal. Mark Bottles Cell: (208) 866-2222 | Office: (208) 947-1075 mbottles@markbottles.com WIDE AERIAL 2780 W MCMILLAN, MERIDIAN