Sandpoint planning panel approves two mixed-use buildings on Church Street amid parking and alley concerns

The Sandpoint Planning and Zoning Commission on May 20 approved site-plan review permits for two mixed-use developments proposed at 413 and 417 Church Street, concluding a public hearing that drew nearly 20 speakers and almost 100 written comments largely focused on parking and alley access.

City Planner Bill Dean told the commission that staff had reviewed two separate applications submitted by Oz Development and found them ‘‘code compliant,’’ and that the city had elevated the review from an administrative decision to a public hearing because of public interest. He said the two properties were reviewed together for clarity and consistency with Sandpoint’s land-use standards and comprehensive plan.

The commission’s action authorizes the two buildings to move forward with conditions. The approval, moved by Commissioner Wayne Benner and seconded by Commissioner Grant Simmons, included two modifications the commission requested: revise condition No. 9 to allow the city engineer discretion to require resurfacing of the alley where construction affects it, and a requirement that an on-street or on-site loading zone be designated and usable year-round to serve the residential and ground-floor commercial tenants. The motion passed 5–2 (yes: Simmons, Dunkel, Torpey, Benner, Mitchell; no: Weber, Reimar).

Why it matters: The project would add dozens of small studio and one-bedroom units in Sandpoint’s downtown commercial district and is pitched by the developer as workforce-oriented housing near shops, services and transit. Opponents warned the development would increase demand for already constrained parking, strain alleys used for deliveries and waste pickup, and add pressure to aging sewer and utilities.

What the staff and applicant said Bill Dean, city planner, summarized staff findings: ‘‘We have a code-compliant project’’ and explained the downtown zoning includes an exemption from off-street parking requirements intended to encourage compact, walkable development. He also said the project proposes roughly 2,700 square feet of ground-floor commercial space across the two sites, building heights up to 45 feet where 65 feet is allowed in the zone, and that a traffic impact analysis will be required before building permits are issued.

Architect Jared Forsyth, representing Oz Development, said the two proposals are separate projects brought forward together at the city’s request. Forsyth said the buildings are intended to provide ‘‘workforce housing’’ in compact units and that the design team had added brick detailing, civic frontage and secure indoor bike storage in response to staff comments. Applicant representatives noted elevators are not required by the International Building Code for four-story buildings and that accessible units would be provided at ground level in compliance with ADA/IBC standards.

Public concerns and key technical issues Public testimony largely focused on parking and alley operations. Supporters, including Molly O’Reilly, a Sandpoint resident, said downtown housing reduces reliance on private cars: ‘‘We need housing downtown, where owning a car is optional,’’ O’Reilly said. Local business owners such as Dave Vermeer said additional downtown residents could supply employees for retail and restaurants.

Opponents cited practical problems: blocked alleys, delivery and garbage collection, winter snow removal, sewer capacity and loss of trees and neighborhood character. Meg Skibitski, a physician whose clinic borders the site, said she depends on curb and alley access for patients with mobility limitations and noted she spent about $100,000 on ADA‑accessible parking for her clinic. Several speakers referenced the project’s likely 88 units (a figure discussed in public comments) and said that concentration of units would intensify demand for parking and alley use.

Technical points raised by staff and consultants - Parking: Dean reminded the commission that the sites lie inside Sandpoint’s downtown parking-exempt boundary, so the commission cannot require off-street parking beyond what code already mandates. Staff also cited a 2022 parking study showing about 1,603 stalls inside the downtown study area and a midweek midday peak occupancy of roughly 57% (leaving an estimated 450 on-street spaces available at peak). Staff indicated overnight winter street parking restrictions remain in force for plowing. - Traffic and impact fees: Staff said a traffic impact analysis will be completed before building permits are issued. Any required capital improvements shown to be needed by the study could trigger proportionate-share contributions by the developer. - Utilities and sewer: City Engineer Brandon Stagland said the wastewater treatment plant is aging and the city is planning upgrades; much of the near-term capacity issue stems from groundwater infiltration into the collection system rather than current demand. Stagland said the collection pipes serving this site do not show identified capacity constraints in the city’s master plan but that upgrades are tracked in the city’s planning documents. - Fire/life-safety: Fire Chief Jeff Gilcrease said fire and building code requirements (including sprinklers and access) will be enforced during building-permit review and must be met before occupancy. - Trees and streetscape: Plans showed removal of three street trees in the Church Street right-of-way; Stagland said the city urban forester must approve any right-of-way tree removals and the forester may seek additional review by the tree commission or city council.

Commission deliberations and conditions Commissioners repeatedly returned to the alley behind the buildings. Commissioners expressed concern that the 16-foot alley right-of-way may not accommodate simultaneous service needs—waste collection, deliveries, ADA loading and emergency access—and asked staff whether alley resurfacing or other improvements could be required as a condition. Staff said alley improvements are feasible and that condition No. 9 would be amended so the city engineer can determine the appropriate scope of resurfacing if impacts occur.

The commission added the loading-zone requirement to ensure year-round space for deliveries, waste management access and resident loading/unloading. Staff said on-street loading-zone designations are a city right‑of‑way decision and that converting on-street parking to dedicated loading spaces removes publicly available parking stalls, which is a policy choice the city makes administratively.

Short-term rentals and future conversions Several members of the commission and staff noted that the sites are in a commercial zone where short-term rental permits for non-owner-occupied units are currently not limited by the city’s cap that applies in residential zones. Staff told commissioners the city cannot, under current code, prohibit the owner from later seeking short‑term rental permits for units in a commercial zone; such policy changes would require separate ordinance action or state-level regulatory change.

Next steps With the commission’s approval, the developments may proceed to building-permit review. Required pre-permit items include the traffic impact analysis and any infrastructure actions identified by staff (stormwater, addressing and addressing coordination, utility connections, and any fire/life-safety requirements). Staff signaled that the city will present a parking-ordinance amendment at the June 17 Planning and Zoning meeting to revisit downtown parking rules.

Speakers (selected) - Moe Dunkel, Commission Chair (presiding) - Bill Dean, City Planner - Brandon Stagland, City Engineer - Jared Forsyth, Project architect (Oz Development) - Vanessa (applicant representative; addressed IBC/ADA) - Chief Jeff Gilcrease, Fire Chief, City of Sandpoint - Molly O’Reilly, resident (public comment) - Dave Vermeer, downtown business owner (public comment) - Meg Skibitski, physician and adjacent property owner (public comment)

Ending The commission’s approval allows the two separate building proposals to move forward with conditions addressing alley impacts and loading access, while staff and applicants prepare the technical reports the city requires before building permits are issued. The commission invited continued public engagement during the city’s June 17 meeting on downtown parking rules and other related code changes.