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HomeMy WebLinkAboutHARMONY 23 (SECONDARY USES) - MODIFICATION OF STANDARD - MOD160001 - SUBMITTAL DOCUMENTS - ROUND 1 - MODIFICATION REQUESTHarmony 23 Modification Request— 100% Secondary Use March 23, 2016 Page 6 of 6 The site is located across Harmony Road from the Arapaho Bend Natural Area which provides recreational opportunities and a link to the future community -wide trail system. In Summary: When considering this site in the larger context of the gateway area, the proposed secondary uses do not exceed the 25% limitation of the H-C zone district regulations. If a modification is needed, however, there is justification under three of the four optional criteria of the Land Use Code. First, the proposed plan meets the purpose of the standard equally well or better than a plan that would comply with the standard in that it fulfills the purpose of providing complementary secondary uses that add to the completeness and mixed -use nature of the Corridor. Second, the plan addresses the existing problem of a lack of rental housing, particularly in the southeast sector, by providing over 300 rental housing units close to employment. Finally, development of the site with primary uses or as a combination of primary and secondary uses creates practical difficulties for the Applicant due to the exceptional narrowness and steep slopes and the existence of ditches and wetlands. The City needs multi -family housing and this site is an ideal location for it. The data illustrates that providing needed multi -family rental units at this location will not jeopardize the City's chances of attracting employment based industry, nor will it use land where much desired large -base employment uses might locate. In fact, we believe having high quality rental units available in the Harmony Corridor will enhance the City's ability to attract desirable industries to the Corridor and will substantially benefit the public good. Supporting Documentation: • Attachment A — Context Map • Attachment B - Recent Newspaper Articles • Attachment C - Colorado Division of Housing Q3 2015 Multi -Family Housing Vacancy & Rental Survey researched and authored by Ron L. Throupe, Ph.D. ,University of Denver and Jennifer L. Von Stroh Colorado Economic & Management Associates • Attachment D - Rental Rates • Attachment E — Site Analysis • Attachment F - Conceptual Site Plan • Perspective Rendering - View from Harmony Road Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224,5828 ■ fax 970.224.1662 www.ripleydesigninc.com Harmony 23 Modification Request —100% Secondary Use March 23, 2016 Page 5 of 6 • The widest portion of the site is encumbered by wetlands. The wetlands are likely due to leakage from the Boxelder Ditch. • Slopes ranging from 4-26% exist on the entire western border of the parcel from the southern edge to the northern edge of the property; steep slopes make it difficult to accommodate large building footprints and large parking areas associated with major employers. • Access to the site is limited to Strauss Cabin Road and no access is allowed from Harmony Road. Access points on Strauss Cabin Road are driven by approved development plans for the property to the east and only one location allows full turning movement. Access from Strauss Cabin Road would require crossing both the wetlands and the Boxelder Ditch if those features were retained. In any event, the developer would need to remove a significant portion of the wetlands to create access and mitigation would be required. While these site constraints create serious hardship for any kind of development, multi- family development is a better design fit because of the inherent flexibility of smaller building envelopes and smaller parking areas distributed throughout the site. While the site could accommodate small independent office buildings, there are many other opportunities for small office development in Fort Collins on sites without the serious development constraints and associated costs listed above. The development of multi- family housing at this location is more compatible with the site limitations and more cost effective to develop as multi -family residential. The physical conditions that make the site unattractive for major employers are easier for a multi -family development to work around. The reasons include: • The footprints of multi -family buildings are smaller than typical major employer building footprints. • Multi -family buildings with smaller footprints can be distributed throughout the site. • Multi -family development requires less parking than a major employment use. • Parking for multi -family is distributed throughout the site rather than concentrated in large lots that would require relatively flat terrain. The highly visible site, located along Harmony Road close to 1-25 is a prime location for multi -family development. Currently there are ten employers within a mile radius of the site, providing an estimated 3,246 jobs. Conservative estimates indicate that ultimately there will be approximately 10,000 jobs within a one -mile radius. In this same one -mile radius there are only 814 residential dwelling units. If we as a community are serious about encouraging our citizens to walk or ride their bikes to work, than we need to provide much more housing closer to all those jobs. The proposed project helps achieve that goal. (Attachment A — Context Map) Neighborhood services and shopping opportunities will exist directly across Strauss Cabin Road to the east as well at Front Range Village located one mile to the west. Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224.5828 ■ fax 970.224.1662 www.ripleydesigninc.com Harmony 23 Modification Request —100% Secondary Use March 23, 2016 Page 4 of 6 there is about twice as much highly suitable land than will be required." See: http://www.fcgov.com/advanceplanning/pdf/land-bldg-analysis.pdf The Applicant proposes to develop multi -family housing in order to provide needed for - rent dwelling units in Fort Collins at a highly desirable location for such housing resulting in a substantial benefit to the City. By providing much needed rental housing, the Applicant will help alleviate the shortage of rental housing in the southeast sector of our community. City Plan encourages a mix of land uses that promote pedestrian and bicycle mobility as well as transit. See Transportation Policies 3.1- 3.4 having to do with pedestrian mobility, bicycling, transit and travel demand management. Creating needed housing and increased housing choices in a location that is close to employment opportunities would further the goals outlined in these City Plan policies. In addition, while intended to be market -rate, the project would add to the stock of available rental housing, helping to keep rental rates more stable (Attachment D - Rental Rates) in furtherance of City Plan Policies LIV 7.2 and LIV 7.4 which promote maintaining an adequate supply of housing and maximizing potential land available for housing in order to positively influence housing affordability. (3) by reason of exceptional physical conditions or other extraordinary and exceptional situations, unique to such property, including, but not limited to, physical conditions such as exceptional narrowness, shallowness or topography, or physical conditions which hinder the owner's ability to install a solar energy system, the strict application of the standard sought to be modified would result in unusual and exceptional practical difficulties, or exceptional or undue hardship upon the owner of such property, provided that such difficulties or hardship are not caused by the act or omission of the applicant; Perhaps the most compelling argument for modifying the standard at this location is that the property is plagued with "exceptional physical conditions" including narrowness, steep topography, limited access, wetlands, and irrigation ditches, all of which make the property difficult for most types of development and particularly unsuitable for the development of employment based industry. The property has been on the market for many years. The last developer that bought the property walked away due to site difficulties and a number of other groups considered the site and elected not to pursue it also because of development difficulties. Existing constraints (See Attachment E — Site Analysis) include: • The site has an odd triangular shape, is unusually long and narrow, particularly on the south half, which limits the location and ability to build anything other than smaller buildings and parking areas. • The Boxelder Ditch meanders through the middle portion of the site making it difficult to effectively utilize the site and also presents a safety hazard. Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224.5828 ■ fax 970.224.1662 www.ripleydesigninc.com Harmony 23 Modification Request —100% Secondary Use March 23, 2016 Page 3 of 6 major employers they are seeking. Attractive housing choices located nearby places of employment is one criterion most major employers would consider in deciding whether or not to locate in the Harmony Corridor. It is also important to note that when viewed from the larger perspective of the gateway area, the plan as proposed meets the standard with the amount of secondary uses in such larger gateway area comprising approximately 21 percent of the area. (Attachment A — Context Map) (2) the granting of a modification from the strict application of any standard would, without impairing the intent and purpose of this Land Use Code, substantially alleviate an existing, defined and described problem of city-wide concern or would result in a substantial benefit to the city by reason of the fact that the proposed project would substantially address an important community need specifically and expressly defined and described in the city's Comprehensive Plan or in an adopted policy, ordinance or resolution of the City Council, and the strict application of such a standard would render the project practically infeasible; The City is currently experiencing a severe housing shortage as evidenced by the following data. • According to a report from RealtyTrac (see Attachment B), Fort Collins ranked second nationwide among cities with the lowest vacancy rates, having only 0.2 per cent of total residential properties classified as vacant. • Vacancy rates for Fort Collins multi -family housing in the southeast sector are currently at 3.4 percent and the vacancy rate has been at or under 2 percent for the previous four quarters according to the Colorado Division of Housing Q3 2015 Multi -Family Housing Vacancy & Rental Survey (see Attachment C, pages 5, 34 and 55), well below the 5 percent vacancy rate that is considered to be an equilibrium rate. The vacancy rate for multi -family rental units City-wide is currently at 2.24 percent according to the Survey. • Tight rental markets have the effect of driving up the cost of rental housing City- wide. Rental rates have steadily increased City-wide and even more dramatically in the southeast sector of or community. The Survey shows approximately 10%+/- year over year rent growth for the past 5 years. (see Attachment D - Rental Rates) • In addition, the Land/Building Needs Analysis for Targeted Industries prepared by Community Planning & Urban Design Group for the City in October 2009 shows that the supply of land in the Growth Management Area exceeds the demand required by targeted industries. The analysis in this document suggests that "about 487 acres (31 % of the highly suitable land) will be required over the next 20 years, and under the lower density scenario, about 739 acres will be required (46% of the highly suitable land). In broad terms, this suggests that Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224.5828 ■ fax 970.224.1662 www.ripleydesigninc.com Harmony 23 Modification Request —100% Secondary Use March 23, 2016 Page 2 of 6 Justifications The Land Use Code states that the decision -maker may grant a modification of standards only if it finds that the granting of the modification would not be detrimental to the public good; and the decision -maker must also find that the Modification meets one of the following four criteria described in the LUC. The applicant believes the Modification meets three out of the four criteria. (1) the plan as submitted will promote the general purpose of the standard for which the modification is requested equally well or better than would a plan which complies with the standard for which a modification is requested; The overall purpose of the Harmony Corridor zone district and, in particular, the purpose of the limitation on secondary uses, is for the corridor to develop primarily with employment based uses, providing jobs and economic vitality to the community, but also providing a proper balance of other complementary uses to make the corridor a truly complete mixed -use area. It is not possible for this small stand-alone 23-acre site to accommodate a larger primary use or a combination of primary/secondary uses, for reasons that will be explained below. However, development of the site as multi -family housing will further the purpose of the standard equally well or better than a plan that complied with the standard, if that were possible, in that it contributes to the mixed -use nature and completeness of the corridor by providing housing in close proximity to several existing major employers. By way of illustration, we offer the following comparison for your analysis. Theoretically, an applicant could propose a small 5,000 square foot office building to be developed on the moderately steep slopes, on the west side of the Boxelder Ditch and below the Fossil Creek Reservoir Inlet Ditch (FCRID). In order to do so, the developer would need to provide access from Strauss Cabin Road across the existing wetlands and the Boxelder Ditch. In addition to being potentially financially infeasible, the access would require wetland mitigation. If this unlikely scenario were to occur, it would meet the standard, by providing 100% primary use, The City would gain 5,000 square feet of office use that would employ approximately 25 people. Although such a plan would comply with the standard, the standard was developed for different purposes, i.e. to preserve land for much larger employers and to ensure the appropriate amount of complementary secondary uses. In contrast, the proposed multi -family development utilizes the property more effectively by creating needed rental housing on land that is unsuitable for major employers. Providing upscale rental housing in the Harmony Corridor will help the City attract the Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224.5828 ■ fax 970.224.1662 www.ripleydesigninc.com land planning ■ landscape architecture ■ urban design ■ entitlement March 23, 2016 Modification Request DIVISION 4.26 HARMONY CORRIDOR DISTRICT (H-C) (D) Land Use Standards. (2) Secondary Uses. All secondary uses shall be integrated both in function and appearance into a larger employment -based development plan that emphasizes primary uses. A secondary use shall be. subject to administrative review or Planning and Zoning Board review as required for such use in Section 4.26(B). The following permitted uses shall be considered secondary uses in this zone district and together shall occupy no more than twenty-five (25) percent of the total gross area of the development plan. (g) Residential Uses Reason for the Request Historically, what constitutes the "larger employment -based development)' area and how to calculate the 25 percent secondary land use standard have been evaluated by City staff in a variety of different ways. Sometimes the percentages have been based on building square footage, sometimes on acreage. Sometimes the percentages are based on a proposed single use development plan and sometimes on a larger, multi- phase Overall Development Plan. When a small isolated property with no opportunity to create a larger Overall Development Plan is being considered (as is the case here), City staff has allowed the Applicant to look at a larger development area in the vicinity to establish the percentages. Properties to the east and to the west of the site which is the subject of this request are already included within approved Overall Development Plans that individually provide the balance of 75% primary and 25% secondary uses, therefore, it is difficult to meet the 75/25 percent standard without considering development within a larger context. If we look at the larger gateway area (Attachment A — Context Map) including Avago and Hewlett Packard on the north side of Harmony Road, the proposed project would meet the standard. This 23-acre site together with the other secondary uses proposed in the gateway area comprise less than 25% of the whole area. Therefore, it is unclear whether or not a Modification is even needed. Nevertheless, if needed, we believe that allowing this site to develop with 100% secondary use is justified based on not just one, but three of the four possible criteria as explained below. Thinking outside of the box for over two decades. 419 Canyon Ave. Suite 200 ■ Fort Collins, CO 80521 ■ tel. 970.224.5828 ■ fax 970.224.1662 www.ripleydesigninc.com