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HomeMy WebLinkAboutKING SOOPERS #146, MIDTOWN GARDENS MARKETPLACE (FORMERLY KMART REDEVELOPMENT ) - PDP - PDP160043 - LEGAL DOCS - LEGAL COMMUNICATIONo LILEY LAW OFFICES, LLC a March 1, 2017 Brad Yatabe Assistant City Attorney 300 Laporte Avenue Fort Collins, CO 80521 Re: Ki.ng Soopers #146-Midtown Gardens Marketplace, (formerly Kmart Redevelopment), PDP 160043 Brad: This �rm represents King Soopers on its applieation for redevelopment of the former Kmart site at the northwest corner of the interseetion of College Avenue and Drake Road. The site is in the General Commercial (G-C) zoning district, the Transit- Oriented Deyelopment (TOD) Overlay Zone; and within the boundaries of the Midtown Plan area. Knowing of Kmart's future vacation of the site long in advance, King Soopers began planning for redevelopment over three and one-half years ago by getting involved in the Midtown Plan process. Its representatives reviewed drafts of the plan, attended meetings and interacted with staff regarding the Midtown Plan's intent and impaet on redevelopment of its site. Of particular concern to King Soopers at that time were the Midtown Plan's prototype development scenarios and the goals regarding parking and building placement near the street. King Soopers was assured throughout 1he process, however, that the Midtown Plan was a policy guide, and that it did not change the Land Use Code provisions that would be applicable to the redevelopment project. King Soopers also confirmed that its proposed supermarket use was allowed per the zoning and that neither the zoning nor the list of permitted uses was changing because of adoption of the Midtown Plan. King Soopers went through the Preliminary Design Review Process in May of 2U16 and received suggestions from City staff that they consider adding a multi-family component to their project to fulfill City Plan and Midtown Plan goals. The suggestions were couched in terms of opportunity, not as mandatory requirements. See Attachment 1, Planning Services Comments 1 and 2, PDR Comments dated May 9, 2016, and Attachment 2, email from Ted Shepard to Joel Starbuck and Carl Schinidtlein dated May 11, 2016. a LUCIA A. LILEY, ESQ. a JOSHUA C. LILEY, ESQ ■ JANELLE KECHTER, CiA ■ 419 CANYON AVENUE, SUITE 220, FORT COLLINS, COLORADO 80521 o TEL�EPHONE (970)449-8720 e FAX (970)682-1440 ■ Brad Yatabe March 1, 2017 Page 2 Although not required by the Land Use Code, King Soopers made a number of inquiries and conducted market research; concluding that vertical mixed use with housing at this particular site was neither financially feasible nor marketable. King Soopers advised staff of its conclusions and the issue was not raised again. King Soopers continued to work diligently to design a project that complies with the Land Use Code and, in addition, worked extensively with staff to incorporate as many aspeets of the Midtown Plan into its project as possible. As examples of the lengths to which the development team has gone to cooperate with staff on the Midtown Plan vision, the changes outlined on Attachtnent 3 were incorporated into the plan. King Soopers submitted its Project Development Plan in November of 2016. At the Round One Development Team Review meeting on January 18th, Ted Shepard stated that since the project was not going to have housing or mixed use, staff would be paying particularly close attention to architecture and how the project was mitigated, activated, urbanized and landscaped. Three days later, on January 21 S`, King Soopers and its planner, Galloway, received a letter with the staff s written Round One comments (See Attachment 4, "Staff's Letter"). As you can see, staff is now asking for .m.ulti-family housing based on City Plan, the Midtown Plan and the purpose statement of the Land Use Code; notwithstanding that the Land Use Code does not require a mixed use component be included in a development proposal within this zoning district. King Soopers has asked me to respond. Citv Plan City Plan is not regulatory and a failure or inability to meet its policy expectations cannot serve as the basis for a project denial. City Plan's Introduction describes its components as a"vision" with " eneral" direction (City Plan, Introduction, page 3) (emphasis addec�. City Plan's Action Plan reeognizes that its adoption is the "first sten in the implementation process" and that the actions and strategies necessary for implementation will "take time" (City Plan, Action Plan, page 135) (emphasis addec�. In City Plan's discussion of the Catalyst Project Areas, it is noted as to these areas of opportunity, that "City Plan focuses on Citv actions" (emphasis addec� and that the "timing and pace of activity in these areas will ultimately be determined by market forces" among other factors (City Plan, Action Plan, page 135): Specifcally as to the Mason Corridor/Midtown catalyst area, City Plan says that the process to achieve the Brad Yatabe March 1, 2017 Page 3 objective of mixed use redevelopment "will be incremental and oceur over an extended perio.d_of time" and that "Citx staff.will first work to update Citv codes, public infrastructure, and pedestrian and bicycle access to generate developer interest in properties along the corridor" (City Plan, Action Plan, page 164) (emphasis addec�. Clearly, the integration of mixed use is a long term goal yet to be implemented with corresponding Land Use Code changes. The Staff Letter cites Principle LIV 5 and Policy LIV 5,2 as critical components of City Plan that support a mixed use redevelopment. Note however that these provisions only "nromote" mixed use developmen.t "over time" and not in connection with or as a requirement of a single project. Other principles and policies specifically applicable to Districts and General Commercial Districts are equally visionary. See (i) Policy LIV 31.1 which "encoura�e(sl. a vertical mix of uses, (ii) Policy LIV 34.2 which states that "the incorporation of a broader mix of uses is desirable over time," and (iii) Policy LIV 34.3 that "encourage(s) and support(s the �radual evolution" of existing auto-oriented strip commercial areas to a more compact patter through infill and redevelopment (emphasis addec�. Note also that among the policies eneouraging mixed use in Commercial Districts; City Plan acknowledges in Policy LIV 31.3 that Large Retail Establishments (which King Soopers is) are permitted and �uropriate in commercial districts subject to "a base level of architectural variety, compatible scale, pedestrian and bike access and mitigation of negative impact," and that the addition of multi-family housing is not listed as an element that determines the appropriateness of the use. Midtown Plan Ea.rly in the public process for the Midtown Plan, King Soopers' representative, Mike Scheckel, received an email fro.m Megan Bolin, City Redevelopment Specialist, assuring King Soopers that the Midtown Plan would not change the regulations applicable to the project. I also want to stress that there aren't any regulation changes because of this Plan. It has always been envisioned as a policy document, much like any of our other subarea plans. (See Attachment 5, email from Megan Bolin to Mike Scheckel dated July 26, 2013) The Midtown Plan states that it is a policy guide for the City and private investors, pending adoption of new regulations and incentive programs. (Midtown Plan, Intro 1-5). The Midtown Plan, while it may be used to help interpret subjective or Brad Yatabe Mareh 1, 2017 Page 4 ambiguous Land Use Code provisions, is not regulatory and a failure or inability to meet its policy expectations cannot serve as the basis for a project denial. The Staff Letter cites language from page 1-5 of the General Framework Concepts that prioritizes diverse higher density housing. Let me draw your attention, however, to the following statement on the same page; In essence; while more urban; mixed-use development is to be pr.omoted as a key part of reinvestment in Midtown, there should continue to be room for many other enterprises, albeit in forms that are more consistent with the image and form for the design character of the area. (emphasis addec� Even the Midtown Plans' Implementation Strategy acknowledges the boldness of the vision: "the likelihood projects eould be built differentiv due to market conditions and./or specific site constraints" and "the Plan accommodates flexib'ilitv" (Midtown Plan, page 7-4) (emphasis addec�. The minutes of the Planning and Zoning Board hearing to consider the Midtown Plan on September 12, 2013, reflect the following statements by Megan Bolin, City Redevelopment Specialist: She said the Plan is a nolicy level document. The design guidelines and the development prototypes are conceptual/ideal design scenarios. They are not regulatory. Bolin said ultimately the Land Use Co.de (LUC) is the re ulatory document that would dictate what oecurs within.a specific development proposal. (See Attachment 6, P&Z Minutes, page 3) (emphasis addec� The minutes also reflect the following statement by Boardmember Kirsten Kirkpatrick: "Member Kirkpatrick said the board ea.n only really require what's in the Land Use Code (LUC). (See Attachment 6; P&Z Minutes� page 4) The following quotes from the minutes of the City Council hearing on the Midtown Plan on October 1, 2013 'indicate that the Councilmembers clearly understood the legal significance of the Midtown Plan goals: Mayor Weitkunat noted this is a broad picture plan, not specific implementation. Hendee noted this does not set Code, but accepts a general vision. (See Attachment 7, City Council Minutes, page 325) Brad Yatabe March 1, 2017 Page 5 Councilmember Cunniff expressed concern the plan is not achievable and requested an acknowledgement from staff that Code_chan eg s. may be. consider.ed. Hendee replied staff is in agreement. (See Attachment 7, City Council Minutes; page 325) Councilmember Campana ... noted this plan is a u�g tool. He su�ported expediting necessary Land Use Code chan�es. (See Attachment 7, City Council Minutes, page 326) City Manager Atteberry replied the oVerall vision is presented in the Plan and he assured Council the details will be complete]y further vetted and will involve significant stakeholder engagement. (See Attachment 7, City Council Minu.tes, page 326) Finally, as desireable as the vision and policies of City Plan and Midtown Plan are, they are not enforceable as Land Use Code regulations. This precise issue arose at the January 12, 2016 City Council hearing on the appeal of the Uncommon PDP when I argued that the City's adopted plans could be used to aide in interpretation of subjective Land Use Code provisions (in that case the appropriate mass and scale of the project). While agreeing that such plans could be used in interpreting Land Use Code provisions� you confirmed that policy documents do not take precedence over the Land. Use Code: Councilmember Cunniff asked what legal standing the Downtown Plan and other plans have in land use decisions versus the language of the Land Use Code. Brad Yatabe, Assistant Cify Attorney, replied the Land Use Code sets out standards to be met whereas 1p ans such as the Downtown Plan are more aspirational; however, he noted Council has room to interpret the Land Use Code in order to. fit some of the aspirational aspect of those plans into some of its consideration (See Attachment 8, City Council Minutes, January 12, 2016, page 325) (emphasis addec� It should be stressed that the King Soopers redevelopment is not a situation involving subjective or ambiguous Land Use Code provisions; in this ease, the Land Use Code is very clear that the proposed use is allowed without any requirement to add a use to make it mixed use. Land Use Code An important question then is whether the Land Use Code has been amended to implement the Midtown Plan goals as specific regulatory provisions and; particularly� whether the vision of mixed-use and multi-family housing has now become a Brad Yatabe March 1, 2017 Page 6 requirement of the Land Use Code. Our review of Land Use Code amendments (and Attachment 9, email from Ted Shepard dated January 14, 2015) suggest it has not. The intent of the G-C zone is still primarily for "a wide range of community and regional retail uses, offices and personal and business services;" and "Secondarily, it can accommodate a wide range of other uses including creative forms of housing." So, while mixed-use and multi-family housing remain options for development as permitted uses, neither are mandatory requirements of the G-C zone. [See LUC Sec. 4.21(A) and (B)(2)] This may explain why the Staff Letter only cites the purpose of the Land Use Code at Sec. 1.2,2(A) as support for requiring t_he King Soopers redevelopment project to add multi-family housing to its plan: 1.2,2 - Purpose The purpose of this Code is to improve and protect the public health, safety and welfare by: (A) ensuring that all growth and development which occurs is consistent with this Code, City Plan and its adopted components, includ'ing, but not limited to, the Structure Plan, Prineiples and Policies and associated sub-area plans. This purpose statement of the Land Use Code - to ensure consistency with the City Plan Principles and Policies and the Midtown Plan — is not in and of itself a regulatory provision but rather reflects the accepted legal notion that the land use regulatory provisions should reflect the applicable plarrs. This has been the City's consistent interpretation. In fact, just recently, in an appeal which alleged that a failure to comply with the Land Use Code purpose statement in Article 1 wa.s cause for denial of th.e project, City staff stated its position as follows: Article 1 ■ Provides general provisions and purpose statements, which are not conside�ed regulatory e Provides a basis for the more prescriptive standards in Articles 2, 3 and 4 (See Attachment ] 0, page 7 of Staff Powerpoint presentation to Council December 6, 2016, Appeal of Brickstone Apartments on Harmony PDP) Brad Yatabe March 1, 2017 Page 7 We would appreciate your consideration of this important issue. In the meantime; Kings Soopers will continue to work on the remaining Land Use Code complianee issues and hope to stay on schedule for resubmittal of the PDP and consideration by the Planning and Zoning Board in April. Finally, because the Staff's recent reversal of its position threatens to completely prevent King Soopers' redevelopment of this site, its planning frm, Galloway, felt compelled to provide its own response addressing the Midtown Plan. See Attachment 11. Sincerely, : LILEY LAW OFFICES, LLC oZ��c-ia (.Z, a��r�� Lucia. A. Liley LAL/jpk Attachments (1 — 11) Pc: Ted Shepard, Senior Planner Cameron Gloss, Planning Director Tom Leeson, C.D.N.D. Director Joel Starbuck, King Soopers Carl Schmidtlein, Galloway