SANDPOINT — In a public hearing for a contentious proposed apartment development, Sandpoint’s planning and zoning commission approved a site plan review permit for the project in a 5-2 decision Tuesday. 

The two-building, 88-unit downtown project — brought forth by the developer as “Farmin Flats” — will move forward as long as long as the developer complies with conditions set forth by the commissioners and city staff, which include requirements to designate a dedicated vehicle loading zone at each of the proposed buildings and repave the alleyway south of south of the buildings if city staff deem it necessary.

Oz Development, a Lindon, Utah-based real estate firm, introduced a site plan review application to city staff in March for a four-story, 48-unit (later revised to 47) apartment building at 413 Church St. According to application materials, all units are one-bedroom or studio dwellings. The design also features 847 square feet of first floor commercial space. 

The developer submitted another application in April for a similar building next door that would feature 41 units and 1,900 square feet of commercial space. 

Neighboring residents were given notice of the applications, and in the ensuing weeks, about 80 community members and business owners submitted a collection of comments that overwhelmingly expressed concern for the amount of parking infrastructure attached to the project — a total of three dedicated stalls. 

While the site plan review process would typically be handled administratively, the high level of public interest in the project led Sandpoint staff to organize the hearing that occurred Tuesday. 

During the hearing, city planner Bill Dean summarized a May 15 report drafted by Sandpoint staff, in which they indicated that the project largely complies with City Code. 

Residential developments in Sandpoint are typically required to construct at least one dedicated parking space for each dwelling unit or pay a one-time $10,000 in-lieu fee for each unit to be relieved of the requirement. Because the proposed apartments fall within Sandpoint’s downtown parking exempt zone, the developer has no obligation to create any new parking spaces. 

Architect Jared Forsyth, who represented Oz Development in the hearing, told attendees that the units are intended to be rented at market rate, and that due to their small size (between 275 and 496 square feet), are expected to cost less than many other dwellings in the area. 

“We've talked with people in the community,” he said. “There's a real need for housing that is affordable.” 

He added that the company has developed similar buildings in Utah and Arizona and said that the units are primarily designed to house young, childless workers. 

“This is for the teenager that moves out to go to college, wants to come back and can't afford a house or an apartment somewhere else, because they're too expensive,” he said. 

Forsyth said that the developer has not identified the cost to lease a unit in one of the buildings, but when asked by planning commissioner Grant Simmons if the price would be near $1,500 per month, Forsyth indicated it would be lower. 

He also emphasized that like city staff, he believed the project complies with Sandpoint’s code. 

“We're asking for no variances. We’re not asking for anything,” he said. 

During the hearing’s comment period, several attendees voiced opposition to the development and shared concerns about the lack of dedicated parking spaces and the small size of the units. 

Sandpoint resident Elise Boyce told commissioners that because most American households have a car, it’s unrealistic to think that the apartments wouldn’t need more parking infrastructure to accommodate residents’ vehicles. 

She added that she owns and rents out a local duplex, and that over the course of 10 years, only one of her tenants hasn’t had a car. 

Based on data from the 2023 American Community Survey, the U.S. Census Bureau estimates that 91.7% of American households keep at least one automobile at home. In Idaho, the agency estimates the proportion is 96.3%. 

“As much we want Sandpoint to be a walking, biking town, winter, I think, makes that a little more challenging,” Boyce said. 

A handful of attendees expressed support for the project, mainly citing a need for more affordable housing and potential benefits to downtown businesses. 

Resident Dave Vermeer, owner of local restaurant Jalapeños, shared that he has struggled to find and retain workers who can afford to live in Sandpoint. 

“Projects like this would be huge to put potentially 100 people downtown, not just for my business, but for all the retail businesses,” he said. “I feel like this is a perfect opportunity to get some more service workers downtown.” 

Planning and zoning commissioners discussed the project’s compatibility with the surrounding environment and the potential effects of the initiative. 

Simmons said that the project satisfies several goals outlined in Sandpoint’s comprehensive plan and would be “good for getting footsteps downtown.” 

“There's a lot that's right with it from that perspective,” he said. 

At the same time, Simmons noted that he believed that due to the project’s size, it could come with sudden, significant changes. 

“It's just a heck of a lot to absorb at once,” he said. 

Commissioner Ivan Rimar expressed concern that the alley between Church and Pine streets would see a dramatic uptick in usage if the project goes forward, and said that he believed it would need to be expanded to accommodate the traffic. Commissioner Mose Dunkel said he would like to see a designated loading space for each building in the alley to facilitate deliveries and other temporary visits. 

With other commissioners expressing a desire to see further stipulations placed upon the project, including a mandate to step back the upper levels from property lines, Rimar made a motion to table the topic to allow the commission to consider the information it had gathered. 

The motion failed 3-4; Commissioner Wayne Benner moved to approve the application under the condition that the developer includes a loading zone at each building and repaves the alleyway if city staff determine it’s necessary. 

The motion passed 5-2, with Rimar and Commissioner Reid Weber dissenting. 

Several weeks ago, shortly after the applications first emerged, Sandpoint’s community planning and development director Jason Welker proposed an amendment to the city’s downtown parking exemption during a May 7 City Council meeting. 

The amendment would exclude new residential developments from the benefits of the downtown parking exempt zone and require them to either build one off-street parking stall per 1,000 square feet of floor space or pay a $25,000 in-lieu fee for each stall. Welker shared that the proposal will likely make its way through Sandpoint’s commissions and appear before city councilors this summer. 

According to Welker, proposed developments in Sandpoint are held to the standards in place at the time an application is received. If councilors vote in favor of the amendment later this year, Oz Development’s buildings would be exempt from the new requirement. 

Before the project is allowed to proceed, the developer will need to be granted a building permit and certificate of occupancy by city staff.