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HomeMy WebLinkAbout2008-09-30 Planning Joint SS MIN Dana Smith - 2008-09-30 Planning Joint SS MIN.docPage 1 JOINT STUDY SESSION PLANNING COMMISSION, HOUSING COMMISSION, & CITY COUNCIL MINUTES SEPTEMBER 30, 2008 CALL TO ORDER Mayor Morrison called the meeting to order at 7:05 p.m. in the Civic Center Council Chambers, 1175 E. Main Street. Planning Commissioners Present:City Council Present: John Stromberg, ChairJohn Morrison, Mayor Michael DawkinsAlice Hardesty Pam MarshEric Navickas Melanie MindlinKate Jackson David Chapman Mike Morris Russ Silbiger David Dotterrer Michael Church Housing Commissioners Present:Staff Present: Regina AyarsBill Molnar, Community Development Director Aaron Benjamin Brandon Goldman, Senior Planner Graham Lewis Martha Bennett, City Administrator Carol Voisin Richard Appicello, City Attorney Linda Reid, Housing Program Specialist April Lucas, Administrative Assistant Absent Members: Debbie Miller, Planning Richard Billin, Housing Commissioner CommissionerNick Frost, Housing Commissioner Stephen Hauck, Housing Commissioner Tom Dimitre, Planning Commissioner Alexandra Amarotico, Housing Commission Student Cate Hartzell, Councilor William Smith, Housing Liaison Commissioner PRESENTATIONS Mayor Morrison presented the City’s outgoing Informational Technology Director Joe Franell with a plaque in recognition of his work for the City. HOUSING INCENTIVES & REGULATORY BARRIERS Community Development Director Bill Molnar and Senior Planner Brandon Goldman addressed the group. Mr. Goldman provided a brief presentation which addressed Ashland’s rental market profile, rental production, and changing market conditions. He also identified the following regulatory barriers and possible i ncentives: Regulatory Barriers: Density Limitations Height Limitations Parking Minimums High Development Costs Restrictive Site Design & Use Standards Limited Availability of Multi-Family Residential zoned area Joint Study Session September 30, 2008 Page 1 of 4 Dana Smith - 2008-09-30 Planning Joint SS MIN.docPage 2 Single Family Development occurring in Multi-Family Residential zones Accessory Residential Units conditionally allowed Mr. Goldman also spoke to the regulatory barriers identified in the 2002 Housing Action Plan, which include: 1) identifying and zoning additional land for multi-family and afforda ble housing developments, 2) limiting or restricting single family housing in multi-family districts, 3) encouraging the development of accessory dwelling units, and 4) allowing for (or requiring) single family residential development on small lots. Incentives: Density Bonuses Transfer of Development Rights Re-zoning Direct Subsidy Dedication of City owned property Air-rights development Expedited Review Fee Waivers Tax Exemptions Mr. Goldman listed the incentives identified in the 2002 Housing Action Plan, which include: 1) waiving System Development Charges and other planning or permitting fees, 2) creating a Housing Trust Fund and dedicate funding sources to that fund, and 3) identifying a target site with the potential for mul ti-story mixed used development for use of the new State vertical housing tax exemptions. Mr. Goldman concluded his presentation and asked if there were any questions for staff before they hear from the invited speakers. Councilor Hardesty requested information on the State’s ve rtical housing exemption. Mr. Goldman provided a brief synopsis and noted Karen Clearwater would be able to speak to this and the other State programs in greater detail. Councilor Chapman suggested tonight’s conversation focus on how to create new housing, not how to maintain affordable rents in existing buildings. Councilor Navickas noted this discussion came about as a result of a motion made by Chapman in regards to the development of the City’s Lithia Lot and voiced support for looking at the bigger pi cture and exploring the various options. Presentations by Development Professionals John Fields/Golden-Fields Construction & Design/ Commented on apartment housing and income, and noted there needs to be a certain level of return in order for th ese ventures to be worthwhile. He commented that rentals in Ashland are expensive and stated the high cost of land in addition to Ashland’s regulatory process can drive the cost to develop these units way up. He added this increased cost and the uncertainty in the process is now discouraging people from purchasing or building units in Ashland and renting them out. He noted the City’s condo conversion ordinance and suggested many of the units are likely still rentals. Mr. Fields stated the City would have a difficult time trying to get the market to build affordable housing and recommended they consider annexing land into the City limits for this use. He commented on what he felt was a general hostility towards affordable housing in Ashland, and stated if the City wants this type of housing they should build it themselves, and suggested they explore possible partnerships with the private sector. Mr. Fields commented on the issue of managing these properties and stated is it easier to rent out 3 larger units, than 10 s maller ones. He noted the reluctance of developers to build smaller units and stated people with a higher income are easier to rent to . He added in terms of management, it is preferred to rent to families or couples rather than singles. Mayor Morrison suggested they focus on issues the City has some control over. Mr. Fields noted the huge expense in creating the required number of parking spaces and stated the City has a real opportunity for leverage with this. Mindlin voiced support for looking into this option, including reduced parking requirements and no car/limited car leases. Mr. Goldman noted two different affordable housing projects came forward recently that requested parking variances. He sated both variances were approved by th e Planning Commission, but noted asking for a variance adds vulnerability to an application. Joint Study Session September 30, 2008 Page 2 of 4 Dana Smith - 2008-09-30 Planning Joint SS MIN.docPage 3 Mark Knox/Urban Development Services/ Noted the sensitivity for apartment buildings in Ashland and agreed with Mr. Fields that the community has some issues with this. Mr. Knox spoke to the City’s difficult planning process and stated the subjectivity and uncertainty drives developers away. He commented on the City’s condo conversion ordinance and explained that developers would rather build condominiums over apart ments because of the regulations to convert those apartments at a later date. He added the City should not have regulatory barriers for converted apartments. Mr. Knox commented on Accessory Residential Units. He suggested units fewer than 500 sq. ft. should be an outright permitted use and stated this is a great way to get small, affordable units in Ashland. He shared his own experience with receiving approval to build a mother- in-law unit on his property and stated the approval was appealed by a neighbor, which added thousands to the cost. Mr. Knox voiced his support for revising areas of the City’s Comprehensive Plan to rezone areas and revising the annexation criteria in the Land Use Ordinance. Mr. Knox noted the Ashlander apartment complex and stated they have the management in place and could possibly add new units. He recommended there be some entity that approaches these types of individuals with a private/public partnership. Betty McRoberts/Jackson County Housing Authority/ Stated the Housing Authority has to go through the same process as a private developer, however they do not make a profit. She explained when the Housing Authority does a project, they have to find land, find money to build the project, and then take it through the City’s approv al process. Ms. McRoberts stated her projects are more complex because of the need to assemble a huge funding package and noted most projects involve four or more funding sources. She noted the State of Oregon is a conduit for almost all of the funds they use, and this also brings complications to the process. Ms. McRoberts shared her issues with project timeframes and stated this is very critical in building affordable housing with public dollars. She stated if anything happens to disrupt that timeframe, t hey could lose everything , and whatever the City could do to help with this would be beneficial. Ms. McRoberts stated the high land costs in Ashland has made it difficult for the Housing Authority to build projects in Ashland and stated $200,000 per acre i s about the most they can afford. She commented on the use of Transit Oriented Districts (TODs) and stated these have been very helpful and stated it is nice to know exactly what the requirements are. Ms. McRoberts clarified the City of Ashland has been very supportive of their efforts, and it is more of an issue with land prices that is prohibiting them from constructing more units in Ashland. She also clarified the Jackson County Housing Authority manages their own units and do not use outside managemen t agencies. Karen Clearwater/Oregon Housing and Community Services/ Commented on the Country’s current financial situation and s tated Fannie Mae and Freddy Mac were their largest equity investors, but they are no longer in the market. She explained the Sate uses the low income housing tax credit as their biggest source of funding and also commented on the Oregon affordable housing tax credit, which buys down a bank’s interest rate. Ms. Clearwater recommended Ashland do whatever it can to speed up the appro val process for affordable housing projects and explained the longer it takes, the more money it ends up costing. She stated the State is very interested in doing new affordable housing and noted Ashland rates number one with the State in their need for workforce housing. She added this makes Ashland a top priority for funding at the State level. Ms. Clearwater stated she does not believe Ashland will have a problem attracting for-profit and non-profit developers, but urged them to go with someone who has d one affordable housing projects before. Ms. Clearwater commented on the vertical housing tax credits and explained this program allows cities to delineate a specific area and apply to the State, and if approved , all housing constructed that is above the first floor becomes eligible for a 10- yea r property tax exemption. Ms. Clearwater was asked if she could recommend any non-profits or for-profits the City could pursue working with. Ms. Clearwater listed Jackson County Housing Authority, OnTrack, Access, Bill Lovelace (Grants Pass), and Shelter Resources (Bell evue, WA). Commission/Council Discussion Mayor Morrison listed the following options he would like the City to pursue further: 1) Transit Oriented Districts, 2) expedited planning process, 3) parking requirements, 4) density, 5) height res trictions, and 6) partnering with experienced developers Joint Study Session September 30, 2008 Page 3 of 4 Dana Smith - 2008-09-30 Planning Joint SS MIN.docPage 4 and management agencies. He asked if there were any others the group would like added. Additional recommendations were made to look into making Accessory Residential Units an outright permitted use a nd also reviewing the current lot coverage restrictions. Navickas commented on the need to tie affordable housing development into the City’s Economic Development Strategy and voiced his support for pursuing development of affordable units on the City’s Lithia Lot, as well as the site across the street on the corner of Pioneer and Lithia. Benjamin shared his optimism about what Ashland has accomplished. He noted the success of self-help housing projects and the Clay Street opportunities that may soon ma terialize. Marsh commented on the need to take a “public pulse” on the issue of affordable housing and stated this goal needs to have broad based support in the community in order for it to succeed. ADJOURNMENT Meeting adjourned at 9:00 p.m. Respectfully submitted, April Lucas, Administrative Assistant Joint Study Session September 30, 2008 Page 4 of 4