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HomeMy WebLinkAbout2020-12-22 Planning PACKET Note: Anyone wishing to speak at any Planning Commission meeting is encouraged to do so. If you wish to speak, please fill out a Speaker Request Form and place it in the Speaker Request Box by staff. You will then be allowed to speak. Please note that the public testimony may be limited by the Chair and normally is not allowed after the Public Hearing is closed. ASHLAND PLANNING COMMISSION STUDY SESSION December 22, 2020 AGENDA I. CALL TO ORDER: 7:00 PM, Civic Center Council Chambers, 1175 E. Main Street II. ANNOUNCEMENTS III. PUBLIC FORUM IV.DISCUSSION ITEMS A. Changes in commercial space needs B. Code Amendment Options for State of Oregon Middle Housing (Duplex) Requirements V. ADJOURNMENT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 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 1). DISCUSSION ITEM _________________________________ Changes in commercial space needs Memo DATE: December 22, 2020 TO: Ashland Planning Commission FROM: Bill Molnar, Community Development Director RE: Commercial land and space needs Summary This is an informational item for the Planning Commission, providing a perspective by Ashland developers Mark Knox and Laz Ayala on the changing landscape of commercial space needs and the potential opportunity for providing additional rental housing. No action is being requested by the Planning Commission at this time. Background In June 2018, the Planning Commission held their annual retreat. Among the topics for discussion was e-commerce. Wikipedia states that e-commerce (electronic commerce) is the activity of electronically buying or selling of products over the internet. Some forecast that online sales may approach 20% of American retail sales by 2025. There were none in 1999. Conversation at the retreat focused on potential impacts to City infrastructure, site planning/design and neighborhood character given an increase in the frequency of delivery vehicles brought about by continued growth in online purchasing. Questions were posed as to how might land use planning assist in preparing the community, and especially our neighborhoods, for the influx of small freight traffic? Potential concerns were noted, such as the ability of neighborhood streets to handle rises in delivery traffic and safety concerns presented by parked vehicles and off-loading of packages. Research suggested that increased noise and the possible impacts on air quality from idling vehicles also could be areas for future concern. COVID-19 has accelerated an expansion of e-commerce toward new firms, customers and types of products. It has increased customer access to a substantial variety of products from the convenience and safety of their homes. To some degree, e-commerce has shifted from more expensive items and services toward everyday necessities, which are relevant to a large segment of the population. Additionally, COVID-19 has had a dramatic impact on many employers and their employees, leading to increased numbers of employees from specific sectors of the work force working from home through employer- sponsored teleworking agreements. This has led to discussions about whether the potential benefits from teleworking arrangements could spill over into the post-COVID era. If so, the combination of e- commerce and post-COVID-19 employment arrangements may suggest a need to evaluate projections in commercial land and space needs and corresponding land use standards and requirements. Local developers and Ashland residents Mark Knox and Laz Ayala of KDA Homes have met with the Interim City Administrator, Adam Hanks, and the Community Development Director to describe in their view how e-commerce and current events are influencing the demand for commercial/employment 22 Page of space. It was suggested that they present their perspective to the Planning Commission on the issue and how these changes might present opportunities for responding to specific land use needs. Attachments: Letter submitted by Mark Knox, KDA Homes Ashland Economic and Housing Sustainability Letter submitted by Laz Ayala, KDA Homes - Ashland Economic Sustainability Assessment DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Ashland Economic Sustainability Assessment Laz Ayala, KDA Homes, LLC 12/11/2020 Ashland Planning Commission, For many years, our community has been experiencing a housing supply problem involving market rate and subsidized housing, particularly 1- and 2-bedroom units often referred to as workforce housing. Workforce housing is essential in attracting businesses to our community as we look to diversify our local economy. Forrest fires, Covid-19 and E-commerce have caused serious short- and long-term damage to economy. These phenomenons are not likely to disappear and in fact, experts warn to expect more in the years ahead. While these phenomenons have created economic devastation and accelerated shifts in how we live, work, shop, and play they also bring opportunities we must embrace if Ashland is to remain the thriving community it still is today. We have two choices: embrace these opportunities or become collateral dammage. We have time to assess what may or may not work in future economy and make the necessary changes to adapt to the fast-changing world we live in. If we agree that our tourist economy is in peril, we must respond withh the changes needed to adapt to a more diverse and sustainable economy. As earlier mentioned, an adequate supply of workforce housing is fundamental in this effort and as such we must explore ways, we can provide much needed workforce housing that will not only address our housing needs, but provide revenue to fund City services such as fire, police, water, sewer, roads, parks, schools, affordable housing and other public funded programs. If we agree that demand for office and retail commercial space is in decline and recognize the need for more workforce housing, council should consider a minor amendment to the commercial and employment zones (C-1/ E-1) allowing for 100% residential uses at ground level (with conditions for future commercial conversion) such as in the Transit Triangle and North Mountain neighborhoods. Except for these two neighborhoods, 100% residential is not permitted at ground level in other commercial zone districts in Ashland. We believe Downtown should not be part of this amendment, but rather commercial properties located within the fringe of Downtown, such as the commercial and employment district between A and Hersey extending west to Laurel and east to Mountain. Why 100% residential at ground level? There is no demand for retail or office space amd banks will not finance these projects nor will developers take a risk building commercial space for which there is no market. Amending the commercial code to allow for 100% residential use makes projects like Meadowbrook Apartments along Fair Oaks Avenue within the North Mountain Master Plan area feasible. Below is a summary of the economic benefit to the City in terms of revenue in addition to the workforce housing opportunities provided: The Meadowbrook Apartments project which is currently under construction has contributed approximately $148,575.75 in permit fees and $206,253.19 system development fees (CDCs) for a total of $358,000. Upon completion it is estimated to provide $72,333.57 in annual tax revenue, $52,000 of which will go directly to the City of Ashland. It is conceivable that amending the commercial zone requirements to allow for 100% residential would generate enough interest in similar projects and it is conceivable to see several of these projects get built every year thereby providing revenue for the City and its agencies and much needed workforce housing to attract investment and businesses to diversify our economy. Sincerely, Laz Ayala DISCUSSION ITEM _________________________________ Code Amendment Options for State of Oregon Middle Housing (Duplex) Requirements Memo DATE:December 22, 2020 TO:Ashland Planning Commission FROM:Maria Harris,Planning Manager RE:Duplex code amendment options Summary This is discussionitem forthe Planning Commission regarding options for drafting the required land use code amendments for duplexes. Background In the 2019 legislative session, the Oregon State Legislature passed House Bill(HB)2001which requires“medium” cities to amend codes to allow duplexes on residentially zoned lots that allow the development of detached single-family homes.A medium city is defined as with a population between 10,000 and 25,000 and outside the Portland Metro boundary. The 2020 population estimate from Portland State University for Ashland is 21,105. HB 2001allowscities toregulate the siting and design of duplexes as long as the regulations do not, individually or cumulatively, deter the development of duplexes through unreasonable cost and delay. The administrative rules, OAR Chapter 60 Division 46 Middle Housing, implement HB 2001 and clarify that siting and design standards that create unreasonable cost and delay include any standards applied to duplex development that are more restrictive than those that are appliedto detached single-family dwellings in the same zone. More information aboutthe state law and administrative rules that apply to cities such as Ashland in included in the October 13, 2020Planning Commission packet. Code Amendment Options As discussed at the Planning Commissions October 13, 2020 study session, thenewstate law and administrative rules prescribe the approval process and siting and design standards for the duplexes. Duplexes must be allowed as a permitted use on residentially zoned lots where single-family dwellings are permitted.In summary, the approval process and standards used for duplexes,such as historic district review and dimensional requirements (i.e., minimum lot size, density, height, setback and lot coverage),must be the same asapplied to theconstruction of a single-family home. In Ashland, single-family homes are a permitted use and in most cases simplyrequire a building permit. The exceptions are planning approvals required for exceeding the maximum permitted house size (MPFA) in the historic district, exceptions for the solar setback,variances to dimensional, parking and Page 2of 3 access requirements, tree removal permits,and permits for construction in natural hazard and resource areas such as hillside lands (25 percent slope and greater), floodplains, riparian areas and wetlands. There are two areas where the new law provides flexibility for local jurisdictions –the definition of a duplex and single-family housing design standards. The attached matrix identifies the advantages and disadvantages of each approach, as well as notes on possible discussion points for the Planning Commission. Cities have the option of defining a duplex as two attached dwelling units on one lot,or as two units on a lot in any configuration(i.e., attached and detached). The dimensional requirements such as lot coverage, height and setbacks are determined by the zoning of a property, and are the same for one unit or two units under the current code and the duplex code. As a result, whether a property owner electsto buildasingle-family home, a single-family home and adetached second unitor two attached units, the building or buildings can cover the same amount of the lot, have to be the same height, must meet standard setbacks andthe solar setback,and are allowed the same volume of building. The exception under the current codeis that the gross habitable square footage of ARUs is currently limited to 1,000 square feet in the single-family zones and 500 square feet in the multifamily zones. The second area of flexibility is design standards. Ashland has design standards for single-family homes in Ashland Municipal Code (AMC) 18.2.5.090 (see below). Compliance with the standards is reviewed at the building permit. The standards could be expanded to capture some of the basic building placement, orientation and design standards for residential development in AMC 18.4.2.030. The residential development design standards in AMC 18.4.2.030 are currently applied through the planning approval process for site design review of a detached ARU or second multifamily housing unit. However, the standards would have to be rewritten to meet the state requirement of being clear and objective. In addition, this would expand the requirements to building permits for all single-family homes along with any duplex applications. 18.2.5.090 Standard for Single-Family Dwellings A. The following standards apply to new single-family dwellings constructed in the R-1, R-1-3.5, R-2, and R-3 zones; the standards do not apply to dwellings in the WR or RR zones. B. Single-family dwellings subject to this section shall utilize at least two of the following design features to provide visual relief along the front of the residence: 1.Dormers 2.Gables 3.Recessed entries 4.Covered porch entries 5.Cupolas 6.Pillars or posts 7.Bay window (min. 12" projection) 8.Eaves (min. 6" projection) 9.Off-sets in building face or roof (min. 16") DEPT. OF COMMUNITY DEVELOPMENTTel: 541-488-5305 20 E. Main StreetFax: 541-552-2050 Ashland, Oregon 97520TTY: 800-735-2900 www.ashland.or.us Page 3of 3 Staff Recommendation Staff recommends defining a duplex as two units on a lot in any configurationand keepingthe design standard for single-family dwellings in AMC 18.2.5.090 in the current form. The advantages of defining a duplex as two units on a lot in any configuration, attachedor detached, include the following. Creates equity in approval process by havingone process, timeline and permit costs that address allpermits for two units on a lot. The inverse of requiring a planning approval for detached second units adds time and application costs for the property owner. Providesmore design flexibility to tailor the unit configuration to best suit an individual property.Common design issues are tree preservation, creating or preserving yard space and physical constraints such as steep slopes and riparian areas. Removesreal and perceived barriers tohousing productionof rental units and therefore, addresses adopted housing policy andhousingneedsanalysisto address low vacancy rates, variety of housing types and housing costs. Enhancescustomer serviceand efficiency in administration ofthe land usecode. Will require less staff time than having to explain two different processes, timelines and related fees. Staff believes the impact of expanding the design standards for single-family dwellings in AMC 18.2.5.090 includes more disadvantages than advantages. Since the standards will have to apply to all single-family dwellings, an expansion of the requirements will require more resources from applicants as well as the Community Development department. Additional staff time will be needed to explain the requirements to building permit applicants as well as for the additional work load to perform more involved reviewsof building permits for single-family homes. Staff believesit is likely that thegeneral public and thedevelopment communitymay perceive additional design requirements on building permits as creating additional barriers to all types of housing.Finally, some of the existing building designstandardsin AMC 18.4.2.030,such as building orientation to the street,don’t apply to detached secondunits whenthe units are located at the rear of a lot and more than 20 feet from the street. DEPT. OF COMMUNITY DEVELOPMENTTel: 541-488-5305 20 E. Main StreetFax: 541-552-2050 Ashland, Oregon 97520TTY: 800-735-2900 www.ashland.or.us Duplex Amendment Options StandardOptionsAdvantagesDisadvantagesNotes Definition of Attached –Define Retainssite design review Creates inequitable processWhat is the tangible duplex duplex as two for detached units (i.e., for attached duplexunitvs. difference or greater impact attached dwelling 1122 ARU’s, second MFRa detached second unit of a detached unit that units on a lot or unit).(i.e., ARU or second MFR necessitates the planning parcel. Common unit).Requiring a planning application process and Retainshistoric district examples of approval for detached units additionaltime andfees? review for detached units. attached duplex adds time and additional What is value of having of a configurations are application costs. process for detachedunits stackedover and Impact of noticing process butnot for attached? under, side-by-side on predictability for Will bedifficult to explain to and attached by a applicant and customers why one garage wall. neighborhood.The required configuration (detached) public noticingprocessfor a involves more fees, process planningapplicationand the takes longer (noticing possibilityof a public process) and limits size hearing request by a while another configuration neighborwill deter some (attached) does not. property owners from Impacts public perception pursuingdetached units. regarding reasonableness Can also create and fairness of the process. neighborhood expectations thatdon’t align with state requirement for clear and objectivestandards for neededhousing. Disparity in size allowances may be disincentive. Size limitation for attached duplex units is prohibited by state law. Existing code for 1 ARU= accessory residentialunit 2 MFR= multifamily residential 12/22/2020 PCStudy Session Page 1 Duplex Amendment Options StandardOptionsAdvantagesDisadvantagesNotes ARUs includes size limitation. May discourage a better design using a detached unit if process is retained for detached units but not for attachedunits. May result in unusual attached designs to avoid the added planning process and additional fees. Creates customer service and administrative challenges explaining differing processes(e.g., staff time costs, public perception). Attached and Creates equity in approval Eliminatessitedesign Will delete ARU section. detached –Define process by havingone review processfor detached duplex as two process, timeline and permit units (i.e., ARUs and dwelling units on a costs that address allsecond MFR units). lot in any permits for twounits on a Eliminates maximum size configuration.In lot. Both attached and for detached ARUs of 1,000 addition to the detached second units sf in SFR 33 zones and of attached examples would require a building 500 sf in MFR zones. described above, permit. Eliminates site design common examples Provides more design review process for detached of detached flexibility to tailor the unit units in the historic district duplexes are side- configuration to best suit an (unless there isan issue by-side and front individual property(e.g., with the maximum permitted and back. tree preservation, floor area). 3 SFR= single-family residential 12/22/2020 PCStudy Session Page 2 Duplex Amendment Options StandardOptionsAdvantagesDisadvantagesNotes preservation of yard space, physical constraints). Removesreal and perceived barriers to housing productionof rental units and therefore, addressesadopted housing policy and needs to address low vacancy rates, variety of housing typesand housing cost. Enhanced customer service andefficiency in administration of code. Will require less staff time than having to explain two different processes, timelines and related fees. design No change to Absence of additional May get neighborhood Additional clear and standardsexisting SFR standards generally viewedconcerns if duplex violates objective approval standards in AMC as facilitating housing design norms, especially in standards may not mitigate 18.2.5.090 production.existing neighborhoods.or address neighborhood expectations. Expandexisting Maintain basic design Will have to be applied to all SFR standards in standards suchas orienting SFR building permits AMC18.2.5.090 the building to the street.includingbuilding permits for one SFRunit. Creates additional administrative needs to review all SFR building permits for expanded standards (i.e.,staff time). 12/22/2020 PCStudy Session Page 3 Duplex Amendment Options StandardOptionsAdvantagesDisadvantagesNotes Increases customer service needsexplaining standards to customers (e.g., staff time, public perception). May be perceived as creating barriers to housing production. 12/22/2020 PCStudy Session Page 4