HomeMy WebLinkAbout2019-0506 Study Session MIN CITY OF
ASHLAND
CITY COUNCIL STUDY SESSION
DRAFT MINUTES
Monday, May 6,2019
Council Chambers, 1175 E. Main Street
Mayor Stromberg called the Study Session to order at 5:32 PM
Councilors Slattery, Graham, Seffinger and Jensen were present. Councilors Akins and
Rosenthal were absent.
I. Public Input(15 minutes, maximum)
Paul Sheldon—Ashland—Thanked Council for their service. Spoke regarding electromagnetic
fields. He urged Council to stand up and look into this issue.
Gill—Ashland- Spoke regarding the Ashland flood plain. Spoke regarding the map of Ashland's
flood line areas. He spoke that the map is outdated and needs to be updated. Councilor Slattery
asked that this be brought back to Council.
II. Ashland Housing Strategy Implementation Plan Draft
Senior Planner Brandon Goldman presented Council a PowerPoint presentation(see attached).
Items discussed were:
• Background.
• Ashland Housing Strategy Draft.
• Regional Problem Solving.
• How to accommodate future growth in the existing City limits.
• Outline of housing strategies.
• Technical Assistant Grant.
• Reevaluation of building heights.
• Tax abatement programs.
• Code amendments.
Becky Hewitt of ECONorthwest presented Council a PowerPoint presentation(see attached).
Items discussed were:
• Obstacles for multifamily rental housing developments in Ashland.
• Multi-family zoning map.
• Analyzed market data.
• Obstacles.
• Cost burden.
• Ownership market.
• Analysis of Code amendments.
• Zones.
• Height changes.
• Density limits.
• Parking.
• Efficient use of land.
• Financial feasibility.
• Property tax abatement.
Council discussed options and next steps. Council gave consensus to bring this item back to a
future meeting.
The Study Session was adjourned at 7:15 PM
Respectfully submitted by:
City Recorder Melissa Huhtala
Attest:
!r . -
i
Mayo tromberg
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at(541) 488-6002(TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting(28 CFR 35.102-35.104 ADA Title I).
CITY OF
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Implementation Plan
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C I T Y OF
Introduction ASHLAND
ECONorthwest
ECONOMICS • FINANCE • PLANNING
Becky Hewitt
Project Manager
Becky specializes in urban planning , spatial
analysis , and land use policy.
C I T Y OF
-ASHLAND
Background
• Regional Problem Solving (NowX2) J
• Ashland Housing Strategies J
• %sniand Housing Strategy graft
Implementation Plan (5/06/2019)
• Ashland Housing Strategy Final
4 Implementation Plan (06/30/2019)
• Council direction regarding drafting Code
Amendments and Resolutions
• Begin public review and hearing process to
drafting final proposed code changes
C I T Y O F
Regional P Solving -ASHLAND
Council Decision
City Council Resolution #2003-37
" With more efficient land use strategies, the lands already
within Ashland's city limits and urban growth boundary
could accommodate the city's anticipated
growth urng the plan period
City of Ashland
\ � � - ' Polentlal Planning Area
- - -. Urban Reserve Candidates
without expansion . . . . The city
A
Fiat\�� --
will continue to identify and
pursue opportunities for more -- � ,
efficient land use and kJ 1 ttl
transportation planning. " , -= ,` ',�:rb,,-
f -3'
s -
C I T Y OF
Regional Problem Solving ASHLAND
RPS Issues Raised by the City of Ashland
The Ashland City Council requested the Regional Plan
identify and structure a time line for the implementation
of a variety of regional strategies that encourage a full
range of housing types throughout the region .
Adopted as part of RPS :
Housing Strategies. Participating jurisdictions shall
create regional housing strategies that strongly
encourage a range of housing types throughout the
region within 5 years of acknowledgement of the
RPS Plan.
C I T Y O F
-ASH LAN D
Regional Problem Solving
Regional Housing Strategy - Ashland
+c°,40,0- .��.• Regional Housing Strategies
art 1(+ +G'0 ..►+ +�r..a" '.+`.r. .
Each community completed a code audit
" °" " - `� -• focused on provision of needed housing .
,►r;,.+•�":fir°..y r,...xy.
�`' " °• " r ' • ECONorthwest produced Housing
•~�=r working with each
Strategies
g g jurisdiction
• Cities are now evaluating specific
Housing Strategies to increase the
supply and availability of needed
housing
CITY 0 F
-ASHLAND
Technical Assistance Grant
Department of Land Conservation
and Development ( DECD) Grant ore�oneoerantl4mo
„ego. Pt' fCendCotlerstantl/n
rks A...,„... _ tnSpta and the ciL7 er at/orr ahahveen the
M"nm °°am g+�Mn.uing eagle,„ Ash/antl eye/oPment
Ore ZI 'atM Ro
'mP�ralicn'the`."mitr+t om8"P1 nsrng Sfrar
P l o �o �m�leroentatioa Plans
• State funding ava i I a b I e to rent �a�e monof� °n"thous., oot gR'lati
not bem4-.the gone xPa; dry thec adOPr hgDi andtLe C'E'P
burdened communities.
4'..i.13 4, �o "e Ve .,�c .a°ate h "gs area.
x °oman a+ea m 6
VseiIto at "mf --'meiSoo..€a Vv. areauo ofb4,t d.
ry
me C/�'c L`L`t 1eoj.,.Nil)dos,ab n bur��o`,.. au,q,�y,or
yy,,,,�m�'OlhrA f}. and P!o1;de M'al'n . "'o �°'°Bn i .
f_'"'aorta of VeHo�ide h mR cojeq 44.4 ofh "e Press r
bn_P the We Rry D..._ ero 'dope oMo-h0,,Relief o.„fom
Dc qzb tz:i�.ear C i nrL `,,..e oming °n of eet
their aobyo h_ftni,zp'nr;u hton.m m�ai, a � 6urR of ''�ateata, ln�
• City approved Memorandum of ;nr �1�- ftim to
Y p p �ar °/P
II aarmey mtOM.Ao mr� mp` DS�"mC ehous w;n dnea;o
Ihea,�l Y a_d yt a?va ,, fA:mrhovm Ws Ln.a�'pdauns
h°"smF °b)rtiit - .Vf atmb hY the sr�ta$ S`4 C+a,
Understanding with DECD . ^L,n4�,a�enran� htu�Pr t - � agwP
anah� abler mat.t. �`+ehe Cm `h 5 �ltr.
.. s....„., .8 maorYFtal'9r agm AFi&h - °ente toad
o Nrum mya d'n•uill md:uPl
14' i ;ng.`hoa;remswa h'de en o°P°tbut .be
e∎yh,h nhCu;ug.,,,,L anon of `n xbynle
• Final Draft of Ashland Housing
" atbro
g mg
Im lementation Plan due
by June 30 ,
p Y
2019 .
C I T Y O F
-ASH LAN D
Ashland Housing Strategy
. ,
Encourage development of new multifamily in
areas zoned for multifamily housing and
commercial areas by increasing the amount and
density of multifamily development (Policy #2, Actions 2e-2j ).
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C I T Y O F
Ashland Housing Strategy '4SHLAND
Evaluate opportunities to implement a tax
abatement program , such as the multiple-unit
limited tax exemption program and the vertical
housing tax credit program , to promote
development of affordable multifamily housing .
(Policy #4, Action 4a).
Aft IZ1
\1/4-41 COST COST COST COST
C I T Y OF
ASHLAND
DLCD Grant objectives
• Conduct a code audit and evaluation of the impacts of
potential increases to maximum residential density, building
height and lot coverage, and potential decreases to parking
requirements for multifamily housing types.
• Evaluate financial returns of for-sale versus rental housing
to understand the market conditions necessary to facilitate
production of rental housing
• Evaluate the potential impact of the multiple-unit limited tax
exemption program on the development feasibility of higher
density rental housing types.
C I T Y OF
DLCD Grant objectives ASHLAND
• Review the impact of Ashland's annexation policies and
approval standards on multi-family residential land supply
within the City Limits.
• Develop recommendations for code amendments that are
most likely to be effective in both removing obstacles and
identifying incentives to promote the construction of
multifamily rental housing in R-2 , R-3 and other multi-family
zones.
C I T Y OF
Introduction ASHLAND
ECONorthwest
ECONOMICS • FINANCE • PLANNING
Becky Hewitt
Project Manager
Becky specializes in urban planning , spatial
analysis , and land use policy.
Ashland
Implementation Pla n
City Council Study Session
May 6, 20 19
This project is funded by a grant from the Oregon Department of Land E C 0 N o rt Ii we st
Conservation and Development (DLCD). The contents of this presentation do ECONOMICS • FINANCE • PLANNING
not necessarily reflect the views or the policies of the State of Oregon.
Icy Que! ira f r this Ar,I *ic
What are the obstacles to multifamily rental
housing development in Ashland ?
Would changing development standards (height,
density, lot coverage, parking) for multifamily in
residential zones (R-2 and R-3) help ?
Could the multiple unit property tax exemption
(MUPTE) incentivize multifamily rental housing?
iii ?Context: Wh �re is the multfml zoning.. .
, 1
::. Zoning Map
—� _ l City Limits } C-1 R-1-3.5
_ Urban Growth Boundary -C-1-D R-1-5
__--- F,ra ':
- _ L_ - - - 7 Poverlay E-1 R-1-7,5
\ 1"'-`-�T, Airport Overlay - HC R-2
L1 L Freeway Overlay M-1 I -R-3 l
.�� .. —i.� .,i,1 Residential Overlay NM .�.+,-,RR-.5
I
Taxlots R-t-t� _RR-1
` SO
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What We Did : Overview
• Gather and analyze demographic & market
data
• Developer interviews
• Analyze prototypical housing developments
Obstacles to Vultifamily Rental I lousing
Development
Oltlides t multifamily r�n1� I hin iiimat
w.... If!
Construction & land costs are high
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Ol :iades ti multifamily rin1aiI hiLn
Demand for rental housin g mostly most) at
lower income levels (not p remium rents)
3,000
2,500
2,000
0
=
1,500
-Q 1,000
50 0
0
$10,000 to $3 5,000 to $75,000 to $100,000 or more
$34,999 74,999 $99,999
Household Income
■ Owner occupied •Renter occupied
8
Source:2013-2017 American Community Survey 5-Year Estimates,Ash land Oregon
Olililes LI multifamily run1ital hin � mant
Ashland condominium purchases: percent
Ownership down-payment (2016-2018)
120
market i
100
stronger
hi80
buyers with 60
equity from z 40
selling a home 20
0
<20% 20-90% >90%
Downpayment as a percent of purchase price
9
OiiliiIes t multifamily rcnitil hctn �cvcl � mant
Financing for ,
apartments is
'
hard—large F�
investment in a
small market
to
Testing Zoning Code , Part I
Development Capacity
I ,
Tenn 7znin
- - Ie: WFt we Dili
Part I : How many units fit on a typical site?
y
7,5 y
( Buildable Lands Inventory
li u, City Limits Vacant V/Airport
r '' 1i ;� i NM Urban Growth Boundary Partially Vacant V/Parking vi
?Illf I to I_ !1 ,-a e;, r#
r / ! ,� V/OS-Park V/UnDev
����I T r
�'�,,, V I1 /'.,I(^ 7 �\," —1,1 0 1 0.25 0.S 1 ',fvll!f�5
R i-� - G 7 l 7�`— _+��-Tl
%�i
Q r+ ,' , :F'a,
�� � ' :�T 4 :,__ ,, w Typical R-2, R-3 site: 0.5- I ac
II
�
!
f s * i ....... I
1+� 1 . �`� I`L . , (, I ;m
Flowill
1
f
Jt .-ter- t 16-k:,
i T .1.
Tin Zznn , we Did
Create example buildings with � b:�� _� -_
maximum number of units allowed �.�`
by current zoning
/\ ,..' -
Tested variations in unit size & type: --_ �j 1
-------,_
• Rental : mix of studio, I BR, 2BR, '
3BR
• Rental : all studio
• Rental : aII4BR ��1
▪ Condo: mix of I BR, 2BR, 3BR
(larger units)
Tustin Znin we Dili
Test changes to key development standards how many
additional units?
Height: 3 stories vs. 2.5 (R-3 only)
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14
Tufting Z - fling _ lie: Whiat we Did
Test changes to key development standards—how many
additional units?
Density: Fewer large units vs. more small units
• • • • • • III • • •
•. 11U . . • .
•
• • • • • • • • • •
• • • • • • • • • • •
• • • • • • • • • •
• • • III ■ • • • • •
• • • • • • • • • •
• • • • • • • • • • •
15
Tiin lie: Whigt we Did
Test changes to key development standards—how many
additional units?
Lot Coverage: How much site left landscaped?
a ❑ n
oon
n
000n
nnnn
000n
flHHfl
16
T' iing _ ie: WFt we
Test changes to key development standards how many
additional units ?
Parking: How many spaces required per unit?
17
T' ting ' onin g SDde: R' uIts
R-3, I -acre Example Site:Achievable Units by Zoning Scenario and Unit Mix
90
80
70
E 60
RI 50
>
a
40
0
co 30
20
10 II I
0
Existing zoning Existing zoning with Revised zoning: Revised zoning:
25% density bonuses height and density height & density
increase increase, parking
reduction, and lot
coverage increase
• Typical Rental Unit Mix • All Studio All 4BR • Typical Condo Mix
T' tingoningode: Rasults
R-2, I -acre Example Site:Achievable Units by Zoning Scenario and Unit Mix
60
50
E 40
a)
co
030
U
To 20
10
0
Existing zoning Existing zoning with Revised zoning: Revised zoning:
25% density bonuses density increase density increase,
parking reduction,
and lot coverage
increase
• Typical Rental Unit Mix • All Studio All 4BR • Typical Condo Mix
T' ing ing ■= �e: T�.l�-Aw��
• Density is the biggest limitation
• Lot coverage & other standards not a
constraint with current density
• Low density limits encourage large units
• 2.5 story limit works for better for
townhomes than apartments
• Density increases particularly benefit smaller
units
Testing Toning Code , Part 2 :
Financial Feasibility
Telting F FciiIiIiW
Part 2: Evaluate financial feasibility based on
local rent, sales prices, construction costs, and
fees
Unit Type Rent Size (sf)
Studio Apartment $900 425
I -br Apartment $ 1 ,050 600
2-br Apartment $ 1 ,280 850
3-br Apartment $ 1 ,540 1 ,000
4-br Apartment $2,000 1 , 100
Unit Type Sales Price Size (sf)
I -br Condo $360,000 750
2-br Condo $4 1 0,000 1 , 100
3-br Condo $475,000 1 ,500
F Fair* * ArIm : Realuel Lanni flue
RLV (Residual Land Value) is the developer's
maximum land budget once they've accounted for
their operations, construction, investor returns, etc .
i_lal
■ . ■ A `off
ei■ w
f � � 1
F Fiibili Ariis: Remlidural Land \ Iue
Development Example (feasible)
RLV (Developer's
Land Budget) Max Land
Purchase Price
Hard Costs
(construction)
Soft Costs
(design,
:max
permitting,
etc.)
DEVELOPMENT DEVELOPMENT
COST VALUE
FirnI F' biIiW A Residt ,ii Land \ iue
Development Example (infeasible)
1 1
1 I Subsidy
Land Payment I 1 Required
? t to t .,Tb ;t
'. "4„*},t" i .d k P r Text
x t "
DEVELOPMENT DEVELOPMENT
COST VALUE
TeSin Telt.ing F F' riili1,v: Remul-N
RLV thresholds for feasibility
$30
$20 — Land Cost - High
z
0 $10
0
0
Land Cost- Low
cc $0
a
w ($10)
0
($20)
Q
0
w ($30)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Te1in FFriI� iIi : I�e�uIts
RLV by Zoning Scenario: R-3 ( I -ac), Rental (Mix)
$30
Q $20 Land Cost- High
z
0 $10
0
0
Land Cost- Low
cc $0
0'
w ($10)
($20)
F/5 ($30)
Rental (Mix)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Tein Financial F1iIiW:
Remiults.
RLV by Zoning Scenario: R-3 ( I -ac), Rental (all 4BR)
$30
$20 Land Cost - High
z
0 $10 •o Rental (all 4BR)
0
Land Cost- Low
$0
o'
cn
w w ($10)
($20)
J
� O
cc
--.___z „ -_O— Rental (Mix)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Tein Taiting Financial Re*jht&
RLV by Zoning Scenario: R-3 ( I -ac), Rental (all Studio)
$30
$20 ,� Land Cost- High
o Rental (All Studio)
o $10
o Rental (all 4BR)
0
w Land Cost- Low
Q $0
Lt a
w
($10)
J
Q
($20)
LIJ ($30) _°_----
-'� Rental (Mix)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Tein Telting F Fri i i i i : Re,jfrN
RLV by Zoning Scenario: R-3 ( I -ac), Condo (Mix)
$30
$20 - Land Cost- High
Rental (All Studio)
z
L6- $10
,Z Condo (Mix)
o a Rental (all 4BR)
0
w c_ A Land Cost- Low
$0
D
w
w ($10)
J
($20)
J
o ($30) 0 Rental Mix
cr
( )
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
TeAtin! F F
• Increasing site development capacity helps if
development is financially feasible but can't
afford land cost
• If costs are too high relative to rents, density
increase & parking reduction don't offer
enough cost-savings to help
• With code amendments, all -studio can out-
compete condo if there is enough demand
Property Tax Abatement
Property Tax Abatement: Overview
Two relevant options for multifamily:
• Multiple Unit Property Tax Exemption
(MUPTE)
• Flexible statute: criteria set by City
• I 0 years
• Exempts improvement value only (not land)
• Temporary abatement for multifamily rental*
• Eligibility per statute
• Up to I 0 years — City sets how long
• Abatement on land + improvements
*Not in scope to test in detail
PrEper-ry T•( Aatamnt: WhtWe lid
• Using prototypical developments:
• How much would tax abatement save the
property owner?
■ How would a developer value those savings?
• How much foregone revenue for City & other
taxing districts?
• Test with & without rent discounts
• Estimate foregone revenue to property owner
from reduced rent
11'
I'ropariy -4( Añtunnt: ! ejhN
Example
Value of tax abatement City Taxes $11,134 I�
(year one) Other Districts ' Taxes $28,034
Total $39,169
C reT■e�x Alatamunt: Res u I-6
Fifty
$50
$40 Rental (all studio), with tax
abatement
Q $30
z
0 $20 ---- Land Cost- High
~o 0 Rental (All Studio)
0
U-
Q $10 Condo (Mix)
o Land Cost- Low
°- $0
w
°z ($10)
($20)
($30)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Prptyx AI:tmit: Resu Its
$50
$40 Rental (all studio), with tax
abatement
Q $30
0 $20 ---- Land Cost- High
f— 0 Rental (All Studio)
0
< $10 Condo (Mix)
Land Cost- Low
is0
($10)
O O Rental (Mix), with tax
• abatement
($20)
cc
($30) 0 Rental (Mix)
($40)
EXISTING ZONING: R-3 EXISTING ZONING: R-3 R-3: HEIGHT AND R-3: HEIGHT &
WITH 25% DENSITY DENSITY INCREASE DENSITY INCREASE,
BONUSES PARKING REDUCTION,
AND LOT COVERAGE
INCREASE
Wt we Lrn ' : Pr phirtyTe.x AItnat
• Abatement more powerful when combined
with zoning changes
• When targeted to market- rate rental housing,
the abatement can help it compete with
condo/townhome
Recommendations
Rte- immeniati( re.: Aminoling Devel
• Increase densities in R-2 and R-3
• Supported by PC & HHSC
• Consider using Floor Area Ratio
• Increase allowed height in R-3 from 2 '/z to 3 stories
• Largely supported by PC & HHSC
• Decrease multifamily parking requirements for smaller
units
• Mixed feedback from PC & HHSC
• Increase lot coverage allowances slightly in R-2 and R-3
• Mixed feedback from PC & HHSC
Apply code amendments equally to rental & ownership.
HrArca Ratii IIIi. satii: n
Floor-Area Ratio ( FAR) . The gross floor area of
all buildings on a lot divided by the lot area .
Alri �I i1fill 1
I II 01111111111'
Ii
1) I 1 ?III
, i V /
I T
/
100 % LOT COVERED 50 % LOT COVERED 25 % LOT COVERED
F. A.R. 1.0
Other e. immenIaticro
• Revisit code to streamline multifamily infill
• Revise annexation policies: eliminate
requirement to demonstrate < 5 -year land
supply
• Advance discussions on property tax
abatements with other taxing districts
ECONorthwest
ECONOMICS • FINANCE • PLANNING
III
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Eugene Portland Seattle Boise