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PZC Packet 042010 Work SessionMEMORANDUM To Planning and Zoning Commission and Town Council Fr Sally Vecchio, Ass't Town Mgr, Community Development Date April 15, 2010 RE FLOOR AREA RATIO AND BONUS DENSITY GUIDELINES During the Planning Commission and Town Council work sessions on the Commercial Zone Districts and Bonus Density guidelines, staff requested guidance on three issues: 1) the appropriate baseline Floor Area Ratio (FAR) to be assigned to each of the commercial zone districts; 2) whether the Bonus Development formulas and related public benefits represented the Town's current policies and long-range goals; and 3) how to address parking requirements in the Town Core. This memo addresses the FAR requirements and development bonus formulas. Floor Area Ratio As proposed, the commercial zone district development standards include a Floor Area Ratio (FAR) requirement along with residential density, building height, setbacks and lot coverage requirements (Table 1). FAR is a measurement of the bulk of a structure on a site. It is calculated by adding the area of each floor of the structure and dividing that number by the total area of the lot. While FAR sets the basic parameters for the building, it also allows the developer to make choices about the distribution of the building mass on the site. The Avon Comprehensive Plan recommends using FAR as a way to minimize the standardization of building heights and break up building bulk. The baseline FAR for commercial zone districts should permit development density consistent with permitted density under the existing zoning ordinance. According to the Design Test results (Table 2), the lot -by -lot FAR in the Town Core ranges between a 1:1 FAR on the Chapel Sq. site to a 2.7:1 FAR on the Sheraton site (at build out). The Avon 21 PUD proposed a 3.6:1 FAR, which was rejected as too large for the site. Using these parameters, one option is to set the baseline FAR at 2:1 in the Town Center Zone District. Under this scenario, three of the five Design Test projects could be built at the same density as provided under the PUD with development bonuses for additional building height and dwelling units. The Sheraton PUD and Avon 21 PUD would require bonus density as well as additional building height and dwelling units. Under 2:1 FAR scenario, the Town would receive community benefits in exchange for increased entitlements for housing, building height and density without creating a disincentive for development that meets or exceeds the typical FAR in the Town Core. TABLE 2 DESIGN TEST RESULTS Dwelling Units: Height: 27 ft The Seasons 1.25:1 79' 103 Dwelling Units: 6 Avon Center 2:1 97' 55 Dwelling Units: 2 Height: 17 ft Avon 21 3.6:1 110' 237 Dwelling Units: 73 Height: 30 ft FAR: 389,021 sf The Sheraton 2.7:1 100' 239 Dwelling Units: 142 Height: 20 ft FAR: 29,211 sf Town Council and PZC members should consider the range of FARs in Town Core and provide direction on establishing a development density that best represents the current conditions with increased entitlements for housing, density and building height. Development Bonus for Public Capital Improvements §7.20.100 Development Bonus Requirements of the Avon Development Code permits payment -in -lieu of dedications or direct public capital improvements for nearly all potential Development Bonuses. The charts below illustrate the potential Development Bonus which may result from a $1,000,000 public capital improvement or payment -in -lieu. NOTE that a payment - in -lieu would be required to be placed into a separate capital improvement fund for the designated public benefit. Table 3 uses an average estimated cost which is based on the building plans for project. There are many more variables cost. The following charts are intended Multiplier." per square foot for new construction of $234/sq.ft. the most recent large scale mixed-use commercial associated with property development which affect to illustrate the potential effect of the "Percentage The Percentage Multiplier adjusts the formula so that the resulting Development Bonus provides an appropriate incentive for the public capital improvement. The Development Code currently proposes a Percentage Multiplier of 85%. The Development Bonus resulting from a Percentage Multiplier of 50% and 25% is also provided to illustrate the effect of adjusting the Percentage Multiplier. A lower Percentage Multiplier provides a greater incentive for a Development Bonus. Table 3 also illustrates the cost to the developer who seeks a Development Bonus for a public capital improvement. In addition to incurring the cost of the public capital improvement, the developer must also incur the cost of additional construction to realize the value of the Development Bonus (but does not incur additional land costs). The total cost per square foot for additional development should be considered against the potential market value for real estate. If the market value of real estate is sufficiently higher than the total cost for additional development, then a developer should have the incentive to seek a Development Bonus through a Public Capital Improvement. Policy direction is requested regarding the appropriate Percentage Multiplier. TABLE 3 DEVELOPMENT BONUS CALCULATION Development Bonus language for Public Capital Improvements: Cost of [public improvement] / [the average estimated cost per sq ft of finished construction for the property 859,'o] = additional square footage Hypothetical Example Cost of Public Improvement $1,000,000.00 $1,000,000.00 $1,000,000.00 Est. Cost / Sq.Ft. of Finished Construction $234.00 $234.00 $234.00 Percentage Multiplier 85% 50% 25% Estimated Cost x Percentage Multiplier $198.90 $117.00 $58.50 Additional Development Bonus Sq Ft 5,028 sq.ft. 8,547 sq.ft. 17,094 sq.ft. DEVELOPER'S TOTAL COST FOR DEVELOPMENT BONUS Cost of Public Improvement $1,000,000.00 $1,000,000.00 $1,000,000.00 Cost to Construct Additional Sq Ft $1,176,470.59 $2,000,000.00 $4,000,000.00 Total Cost $2,176,470.59 $3,000,000.00 $5,000,000.00 Total Cost/Sq Ft for Additional Development $432.90 $351.00 $292.50 TABLE 1: SUMMARY OF REVISIONS TO COMMERCIAL ZONE DISTRICTS NEIGHBORHOOD COMMERCIAL (NC) Purpose: To provide sites for commercial uses and services for the principal benefit of the residents of the community. Permitted Uses: Commercial Uses and Accessory Apartments. DISTRICT STANDARDS CURRENT CODE NEW CODE Minimum Lot Size 7,500 sf 3,000 sf Building Height 35 ft 35 ft: duplex 38 ft: TH, MF, commercial Front: 25ft Front: 1 Oft residential/0 ft commercial Building Setbacks Side: 7.5 ft Side: 7.5 ft/ 25ft corner lots Rear: 10 ft Rear: 10 ft Max Site Coverage 50% 60% Max Density 7.5 du/acre 7.5 du/acre 1:1 FAR MIXED USE COMMERCIAL (MU) Purpose: To group and connect places used for work, shopping, education, recreation with residential uses. Permitted Uses: Commercial, Office, Townhomes, Condominiums, Apartments DISTRICT STANDARDS CURRENT CODE NEW CODE Minimum Lot Size 43,560 sf 3.000 sf Building Height 60 ft 35 ft: SF and duplex 60 ft: TH, MF, commercial Front: 25ft Front: 10 ft Building Setbacks Side: 7.5 ft Side: 7.5 SF, duplex/0 ft TH, MF, commercial Rear: 10 ft Rear: 10 ft residential/5 ft commercial Max Site Coverage 50% 80%: SF and duplex 70%: TH, MF, commercial Max Density 20 du/acre 20 du/acre 60 lodge units/acre 1.5:1 FAR TOWN CENTER (TC) Purpose: To provide sites for a variety of uses including lodging, commercial and office in a predominately pedestrian environment. Design standards distinguish is area from others in town. Permitted Uses: Lodging, Commercial, Office, Townhomes, Condominiums, Apartments DISTRICT STANDARDS CURRENT CODE NEW CODE Minimum Lot Size 30,000 sf 3,000 sf: residential Building Height 80 ft 80 ft Front: 25 ft Front: 1 Oft residential/0 ft commercial Building Setback Side: 7.5 ft Side: 7.5 ft/25 ft corner lots Rear: 10 ft Rear: 10 ft Max Coverage 50% 80% Max Density 30 du/acre 30 du/acre 90 lodge units/acre 2:1 to 3:1 FAR"" to be determined LIGHT INDUSTRIAL & COMMERCIAL EMPLOYMENT (IC) Purpose: To provides sites for light industrial and mfg uses, wholesale outlets, warehousing and sales offices Permitted Uses: Light industrial, Commercial, Warehousing, Accessory Apts. DISTRICT STANDARDS CURRENT CODE NEW CODE Minimum Lot Size 21,780 sf 21,780 sf Building Height 48 ft 48 ft Front: 25 ft Front: 25 ft Building Setbacks Side: 7.5 ft Side: 7.5 ft/ 25 ft corner lots Rear: 1 Oft Rear: 10 ft Max Site Coverage 50% 50% Max Density 4 accessory unit/property by special review use 4 accessory units/property by special review use MEMORANDUM To Planning and Zoning Commission and Town Council Fr Sally Vecchio, Ass't Town Mgr, Community Development Date April 15, 2010 RE Commercial Zoning, Bonus Density, PUDs and Parking Response to Work Session Comments The PZC and Town Council held work sessions on the proposed commercial zone districts and bonus density regulations in the new Land Development Code on April 6, 2010 and April 13, 2010 to provide an opportunity for members of both bodies and the community to review the proposed changes and discuss policy issues related to the revisions. Staff has organized the comments received during those work sessions into topic areas and provided written responses. Comments related to the commercial design standards are included at the end of this memorandum and will be addressed during the next series of work sessions on the Development and Design Standards. Residential Density 1. Is residential density calculated by SFEs in the same manner as we do today? RESPONSE: Yes, SFEs will be calculated using the same formula provided in Title 13 (Public Services) of the Municipal Code (Table 1). Each lot in Town has been allocated Single Family Equivalents (SFEs) based on its existing zoning. If development exceeds the SFE allocation, the developer must provide sufficient water rights to accommodate the additional SFEs needed. SFE calculations are completed during zoning approval and re -verified at building permit issuance. Under the proposed Development Bonus Requirements, a developer will calculate the SFEs required for additional residential density and provide evidence of sufficient water rights for the higher density before the Town will consider the request for additional density. TABLE 1 SINGLE FAMILY EQUIVALENT CALCULATIONS 1. Dwelling Units less than 3,000 square ft= 1SFE 2. Dwelling Units over 3,000 sf: (actual sf) x 1 SFE = SFE/Unit (3,000 sf) 3. Efficiency room (studio with kitchen) = .50 SFE 4. Hotel room (studio without kitchen) = 35 SFE 2. Was the density for Sheraton derived from number of keys or from number of units? RESPONSE: Residential density for the Sheraton PUD was calculated by the number of dwelling units not keys. For example, a timeshare unit with 1 efficiency lock -off was calculated as 1.33 dwelling units not 2 units. 1IPage 3. Increase potential development bonus for density (i.e. residential units per acre). Water & parking are a priority and the final dwelling unit number is not significant. For Sheraton and Avon 21, the number of dwelling units was not the issue but those developments should be parked. RESPONSE: The number of allowed dwelling units/acre is related to allocated water rights for commercial properties (30 du/acre). Given the significant range in the size of dwelling units in the commercial zone districts, the number of dwelling units does not necessarily affect the massing or density of the building (measured in FAR). Staff however does recommend that some residential density cap be maintained to ensure that each development include a mix of uses. A residential density bonus of 50% to 70% above the 30du/acre would result in a potential density of 45 — 51 dwelling units per acre. COMMERCIAL DEVELOPMENT STANDARDS 4. Small residential redevelopment opportunities should be looked at. RESPONSE: The Mixed Commercial Zone District and the Neighborhood Commercial District both permit single use development (such as an apartment or townhouse project), if it can be demonstrated that adjacent properties will provide a complementary diversity of uses. The Town Center District requires a mix of uses within each development in order to achieve the Comprehensive Plan goal to create development patterns that increase opportunities for more pedestrian trips and connectivity within the commercial core. 5. How would Avon 21 be able to provide residential on the ground floor? The requirement to front a public street doesn't make sense for Avon 21 on Avon Road given the grade differential? RESPONSE: Commercial should be required on ground floor along designated streets to implement Avon Comprehensive Plan. Market conditions should prevail on remainder of building. 6. What is deemed "retail" for ground floor? RESPONSE: Retail uses are a subset of commercial uses. Commercial uses may include offices, hotel lobbies, restaurants, and personal services uses such as a dry cleaner. Retail use means a business primarily characterized by the sale of goods or merchandise to the local public and tourists for personal, household or business consumption, and rendering of services incidental to the sale of such goods. 7. Mixed-use and more commercial on bottom floor needs to be more integrated. More density should equal more commercial space to support the Town (i.e. Sheraton). RESPONSE: Commercial viability goes hand in hand with traffic, which relates to critical mass of residences and accommodations. Implementing the Comprehensive Plan primarily means establishing ground floor commercial on the designated streets. Market conditions should prevail on the remainder of building. 8. Should a minimum and maximum commercial ratio be implemented to assure proper mix? RESPONSE: Commercial should be required on ground floor along designated streets to implement Comprehensive Plan. Market conditions should prevail on remainder of building. If the market actually produced exclusively commercial, office, retail, and hotel projects in the Town Core, Avon would realize extraordinary excess revenues. This scenario is extremely unlikely to occur. 2 1 P a g e 9. Look into Alternative Equivalent Compliance to ensure it is available for allowing the flexibility of permitting non-commercial uses on the ground floor where appropriate. RESPONSE: "Mixed-use zoning" allows maximum flexibility except that Commercial uses should be required on ground floor along designated streets to implement the Comprehensive Plan. The scope of alternative equivalent compliance will be an important topic for the next round of work sessions related to development and design standards. PARKING 10. The Town needs to focus on a publicly financed parking structure. RESPONSE: The proposed Code includes the ability to establish parking districts and public parking facilities in the Town Core area. The Town is actively discussing a potential ballot question this November which would generate financing to construct public parking garages. The current Town comprehensive plan, and east and west town center plans envision public parking garages. Additional planning related to public parking garages would provide valuable information and detail; however, the code can only go as far as permitting parking districts and permitting parking requirements to be satisfied in part by cash -in -lieu for public parking garages. 11. The Town should be stringent on parking requirements, but still provide options for developers. RESPONSE: A mixed-use commercial development can be granted a 15% reduction in its parking requirements, with a parking study supporting the reduction. A pay -in -lieu program could allow a development to provide some of its parking requirements in an off-site public parking garage. The Town Manager will provide additional remarks on this topic at the TC/PZC joint meeting. BONUS DENSITY 12. LEED Certification is a problem due to the timing of getting development certified at least 1 year after construction. More prescriptive measures, such as those from the International Green Construction Code or other building permit review items should be considered. RESPONSE: If the policy direction is to implement the Green Code, then the development bonus for LEED certification could be deleted. . 13. Staff need to provide more clarification on the types of public benefits that the developer could offer in exchange for a development bonus. RESPONSE: §7.20.100 Development Bonus Requirements allows development bonuses to be awarded for the following public benefits: (1) Attainable Housing; (2) LEEDs Certification [may be deleted]; (3) Public Parking or Transit Contribution [eg. Contribution towards public parking garage in excess of parking requirements, dedication and improvement of bus stop]; (4) Pedestrian Enhancements [eg. Public plaza, off-site pedestrian connection]; (5) Streetscape Enhancement [eg. Main Street art]; (6) Civic Facility [eg. Any land or space which provides a public service for the general public]; and, (7) Water Rights Dedication above the required dedication amount. 14. How does the process ensure that the Town receives the desired public plazas as outlined in the District Plans? RESPONSE: If a developer is requesting additional density or dwelling units beyond what is permitted by -right, he will have to provide the type of public benefits described in the Development Bonus Regulations. The amount of additional density or dwelling units requested 3 1 P a g e by the developer will determine the size of the public benefit required, such as a public plaza. The size and location of public plazas in the Town Core will be guided District Plans. ***For additional discussion on the development bonus formulas, please see the attached memo on FAR and Bonus Density calculations. 15. Bonus density analysis should be presented for: 1) Riverfront, 2) Red House, 3) Buck Creek, and 4) Chateau St. Claire and several commercial sites along Nottingham Rd. RESPONSE: Please see attached design tests. PUDs 16. Do PUDs allow density increases? RESPONSE: No, not as currently presented. The modified PUD is an overlay district that would allow the developer to modify the location and configuration of development on the site. The development standards, including density, building height and permitted uses would be dictated by the underlying zone district. Additional density would be permitted pursuant to the guidelines and standards established in the Development Bonus Regulations 17. What zone district replaces an existing PUD after it expires? RESPONSE: If the approval of a planned unit development expires the Town Council or property -owner may initiate an amendment of the Town's Official Zoning Map to eliminate the approved PUD plan and return the land to the zoning district in which it is located. If there was no original zone district, the Town would select an appropriate zone district based on the recommendations from the Town's Comprehensive Plan. GENERAL COMMENTS 18. How are we addressing phasing if PUD is not used? RESPONSE: It depends on the project. Public improvements shall be required up front (before construction on private improvements begins or before Certificates of Occupancy are issued). Any project which proposes to phase public improvements or which requests public financial incentives will then be subject to a development agreement and phasing plan. The Code as written provides Council with the discretion to determine appropriate phasing. However, the default is that no project is required to be phased because all projects are required to construct all public improvements up front and no project is entitled to public financial subsidies. 19. Is there guidance to property owner and staff when rezoning? RESPONSE: Applications for rezoning are reviewed by the Community Development staff for appropriateness based upon availability of water, wastewater and other utility services, compatibility with surrounding land uses and environmental factors such as steep slopes or flood plains. The Comprehensive Plan's land use map recommends future land uses in the Town and provides guidance for future zoning requests. DESIGN STANDARDS 1. Site plan review should not be divorced from building design review process. 2. Standards such as being required to front a street are more of a requirement for a metropolitan area with a grid street plan 3. Form based codes are good, but the code can't be so overly prescriptive that it precludes great architecture. 411'�i ADDDITION DESIGN TESTS (ATTACHEMENT A) Chateau St. Claire Existing Conditions Residential High (RH) Site Coverage: 21% 70% FAR: 1.26:1 N/A Dwelling Units: 49 48 Dwelling Units/Acre: 20.2 19.79 Max. Height: 74'/ 84' 60' Parking: 120 118 Notes: Without zoning PUD, this property would fit into the RH zone district except for height. Lot 4 (Lodge) Red House Buildout Conditions Lots 5, 6, 7 Residential Medium (RM) Site Coverage: 21% 50% FAR: N/A N/A Dwelling Units: 15 21.6 Dwelling Units/Acre: 10.41 10.41 Max. Height: 48' 48' Parking: 36 34 Open Space .31 acres .369 acres Notes: Without PUD, no setback encroachment would be permitted. The open space on the river would still be acquired through the standard Open Space requirements as follows: (8.2 acres x 15 units x 3 persons per unit) / 1000 persons= 0.369 acres. Unit sizes would likely be larger if not capped from 1, 700 — 2,300 square feet. Notes: The Riverfront Project could have been developed under the TC Zone District Standards with a bonus for additional density and dwelling units, with discrete portions of the upper levels of the Lot 2 building height impacted. Riverfront Existing Conditions Site Coverage: 25% of the entire 18.9 acres Site Coverage: 50% FAR Sq. Ft. Height Lot 1 (TSE) 2.27:1 130,000 105' Lot 2 (Westin) 2:1 365,000 135' Lot 3 (TSW) 3.25:1 105,000 105' Lot 4 (Lodge) 95' Lots 5, 6, 7 TBD TBD 90'/55'/55' Dwelling Units: 456 units Dwelling Units/Acre: 43.27 Notes: The Riverfront Project could have been developed under the TC Zone District Standards with a bonus for additional density and dwelling units, with discrete portions of the upper levels of the Lot 2 building height impacted. Notes: This property could fit into RL, RM, and RH when calculating density, but the RM and RH are required to meet the height. A PUD would have to be approved to allow for exemptions from the road standards. he PUD could also be used for clustering of development and protection of wetlands. Buck Creek Existing Conditions Residential High (RH) Site Coverage: 50% 70% FAR: N/A N/A Dwelling Units: 46 315 Dwelling Units/Acre: 2.9 20 Max. Height: 42'/ 55' 60' Parking: N/A N/A Notes: This property could fit into RL, RM, and RH when calculating density, but the RM and RH are required to meet the height. A PUD would have to be approved to allow for exemptions from the road standards. he PUD could also be used for clustering of development and protection of wetlands.