Scenario involving Set Backs, Taxing Districts and Consolitation

Scenario involving Set Backs, Taxing Districts and Consolitation

Bothell, WA · Member since 2019 · 14 posts · 2 votes

Hi all,

I have a scenario that I would like to run by the forum members to determine if there are any next steps I can use:

In 2014, I bought a small 50 X 50 lot in Coeur d Alene, ID. The purchase transaction was through a surplus land auction conducted by the City of Coeur d Alene. Since I have an abutting property next to the 50 x 50 lot, I was invited to participate in the auction, and I ended up winning. So I am an owner of a 2500 square foot lot in the city.

Fast forward to 2019. I start to think about exploring development of this 'tiny' lot. My thinking was - maybe a small home, small footprint, but inline with the existing older homes. So, I look up the zoning and see that the lot is in an R-12 zone which requires certain setbacks. Knowing that the lot is too small to adhere to the required setbacks, I explored the possibility of obtaining a setback variance through the city planning and zoning.

After talking with the city planners, it was determined that there were no 'physical site characteristics' that would warrant a variance approval. (I want to come back to this)

Because of that, the planning commission then suggested that I consolidate the 50X50 parcel into my existing property to the north, and then build on the 50X50 lot under the Accessory Dwelling Unit standards.

I then reached out to Kootenai County Assessor office. They notify me that they cannot consolidate the two parcels, as each one sits in a separate highway taxing district. The line between the two taxing districts runs right through my two properties.

The county assessors office then suggested I reach out to the two highway taking districts to see about requesting a boundary change, from either one, to incorporate my two lots.

Both highway district representatives respond, saying that the district boundaries were set up in 1971, and that there haven't been any changes since. Then, they provided a process for the potential approval of a boundary adjustment - pay all attorney fees, get a survey done, a notification to the taxing district members and a vote.

Because of the potential cost involved in requesting a boundary adjustment, I re-approached the city planning commission to see if the scenario with the taxing entity boundaries (significant cost, time, etc.) would warrant an 'undue physical hardship' in which they could grant a setback variance (again, all I really want to do is keep that 50x50 lot separate, build a small tasteful home and go on my way). The city planning then re-confirmed their prior guidance in that the boundary issue would not warrant a reason for a variance.

So, I guess my questions are these:

It seems common sense to me to keep the parcel separate and build, for both the city, county and taxing districts. It's just easier and more cost effective for all parties.

Is there any other scenario that I haven't thought of that may warrant a justification for a variance? The lot is small, flat, literally no streams, rock outcroppings - things that would warrant a poor topographical characteristic. I value a real property attorney's perspective, just don't want to set aside thousands for retainer just for exploration on whether I have standing.

If that is not an option, it seems to me the next option would be to incur all of the costs, try to consolidate the parcels with the highway taxing districts and then seek out a permit from the city to build an Accessory Dwelling Unit under their standards. This seems to be an expensive option to then create a wonky two-structure property that would ultimately not make it easily saleable, financeable, etc.

Or, I let it be and the city can stare at an empty but very visible 50x50 lot.

Is there an easy button to push on this?

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  • Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes
    7y

    Hi Brandon, the easy button would be knowing the mayor or something along political lines. But as I take it that is not one of your current likely options, for what it is worth I would analyze this problem along the following lines: (1) list out all the steps the government people are suggesting you need to go through to get this done, (2) evaluate each step for cost, likelihood of success, etc. (3) obtain as much information as you can about each step including estimates from professionals where possible, (4) evaluate the entire process for cost and chance of success based on your limited information, (5) compare the cost evaluation you have determined, with the potential gains to be realized from your development (6) determine whether the risks/costs outweigh the benefits (with your limited information, including a conservative fudge factor in the numbers). Once you have completed (6) you can then go back and evaluate each step again to determine if there is a shortcut to avoid or lower costs of that step, or increase chance of success. From there, shorten your list of steps as much as possible, look to lower costs, and increase chance of success. When you get back to (6) in the process you should hopefully be able to tell when it is worth it for you to pull the trigger on approach to solving this problem. Now that is just my two cents on how to look at it. Regarding your specific concerns, I would suggest putting together a presentation of your plans and to keep working on the zoning people to approve your variance, conditional use, or re-zone. As you pointed out this is just common sense at some level so all you really need to do is make it easy for them to say yes by doing all the work yourself. That is why they are telling you to hire attorneys, surveyors, etc. Because then at the end of they day all they have to do is push their easy button and be done. They really do not care how much it costs you to get that easy button in front of them so if you can figure out a cost effective way to do it they will do it. Or as I mentioned, get in touch with the mayor or other important politicians who can push your thing through. I hope that helps and best wishes!

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