AGENDA #4

MEMORANDUM

 

TO:

 

Roger L. Stancil, Town Manager

 

FROM:

 

J.B. Culpepper, Planning Director

Gene Poveromo, Development Coordinator

 

DATE:

 

October 18, 2006

 

SUBJECT:

 

Public Hearing: The Residences at Chapel Hill North – Request for Partial Revocation of the Chapel Hill North Phase I Special Use Permit and Application for a Phase II Special Use Permit (PIN 9880-36-1885)

 

 

PURPOSE

 

Attached for your consideration is a request for a partial revocation of the Chapel Hill North Phase I Special Use Permit and an application for a Phase II Special Use Permit, to allow the construction of a multi-family planned development that would consist of seven buildings containing 123 dwelling units and 242 parking spaces, on an approximately 13-acre site. The proposal also includes a clubhouse and three garages. The site is located in the northeast portion of the Chapel Hill North Shopping Center, off of Perkins Drive. The site is located in a Mixed Use-Office/Institutional-1 (MU-OI-1) zoning district. The site is also identified as Orange County Parcel Identifier Number 9880-36-1885.

This package of materials has been prepared for the Town Council’s consideration, and is organized as follows:

Prior to approval of the Chapel Hill North Phase II Special Use Permit application, it is necessary that the Council take action on two accompanying items first: 1) an application to amend the mixed-use section (Section 3.5) of the Land Use Management Ordinance by enacting the resolution in the accompanying text amendment application, and 2) a request for partial revocation of the Chapel Hill Phase One Special Use Permit by adopting Resolution A. Please refer to the Key Issues section of the memorandum and the accompanying text amendment application for additional information on this matter.

 

Tonight’s Public Hearing has been scheduled to receive evidence in support of and in opposition to approval of the application, as the Council determines the appropriate requirements to include as conditions of approval.

 

PROCESS

 

The Land Use Management Ordinance requires the Town Manager to conduct an evaluation of this Special Use Permit application, to present a report to the Planning Board, and to present a report and recommendation to the Town Council. We have reviewed the application and evaluated it against Town standards; we have presented a report to the Planning Board; and tonight we submit our report and preliminary recommendation to the Council.

 

The standard for review and approval of a Special Use Permit application involves consideration of four findings (description of the findings follows below). Evidence will be presented tonight. If, after consideration of the evidence, the Council decides that it can make each of the four findings, the Land Use Management Ordinance directs that the Special Use Permit shall then be approved. If the Council decides that the evidence does not support making one or more of the findings, then the application cannot be approved and, accordingly, should be denied by the Council.

 

BACKGROUND

 

Concept Plans of the proposed development were reviewed by the Community Design Commission on June 18, 2003 and May 25, 2005. The Town Council reviewed concept plans on October 20, 2003 and June 20, 2005. Summaries and minutes of Concept Plan Reviews are attached for the most recent Community Design Commission and Council respectively (Attachments 9 and 10).

 

DESCRIPTION OF THE APPLICATION

 

The 13 acres associated with the Residences at Chapel Hill North is encumbered by part of the Chapel Hill North Master Plan. The applicant is proposing to construct a multi-family planned development that would consist of seven buildings containing 123 dwelling units, including 200,880 square feet of floor area. The applicant is proposing 242 parking spaces and three garages. Approximately 57,749 square feet of recreational improvements, including a clubhouse and pool, are proposed.

 

Other proposed improvements include sidewalks and pedestrian crosswalks. The applicant is also proposing a stormwater management pond to treat the rate, volume and quality of stormwater runoff.

 

EVALUATION OF THE APPLICATION

 

We have evaluated the application regarding its compliance with the standards and regulations of the Town’s Land Use Management Ordinance. Based on our evaluation, our preliminary conclusion is that the application as submitted complies with the regulations and standards of the Land Use Management Ordinance and Design Manual, with the conditions included in Resolution B.

 

Tonight the Council receives our attached evaluation and information submitted by the applicant and citizens. The applicant’s materials are included as attachments to this memorandum. All information that is submitted at the hearing will be included in the record of the hearing.

 

Based on the evidence that is submitted, the Council will consider whether or not it can make each of four required findings for the approval of a Special Use Permit.

 

The four findings are:

Special Use Permit  – Required Findings of Fact

 

Finding #1:  That the use or development is located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare;

 

Finding #2:  That the use or development would comply with all required regulations and standards of the Land Use Management Ordinance;

 

Finding #3:  That the use or development is located, designed, and proposed to be operated so as to maintain or enhance the value of contiguous property, or that the use or development is a public necessity; and

 

Finding #4: That the use or development conforms to the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the Comprehensive Plan.

 

Following the Public Hearing, we will prepare an evaluation of the evidence submitted in support of and in opposition to this application.

 

KEY ISSUES

 

We have identified two key issues associated with this development, discussed below.

 

(1)   Accompanying Request and Application: The applicant for the Residences at Chapel Hill North is proposing to change the mix of uses on the site to allow residential and clinic uses. The applicant is requesting that this change to the mix of permitted uses be accomplished by: 1) requesting an accompanying text amendment to Section 3.5 of the Land Use Management Ordinance, and 2) requesting a partial revocation of the approved Chapel Hill North Phase One Special Use Permit.

 

Comment: We recommend that the Council 1) consider the application to amend the text in Section 3.5 of the Land Use Management Ordinance, and 2) consider the request to partially revoke the existing Phase I Special Use Permit. We recommend that the Council discuss both the Text Amendment application and the partial revocation request at the same time. Following that discussion, we recommend that the Council consider of the proposed Chapel Hill North Phase II Special Use Permit application.

 

We believe that the applicant’s request for a text amendment to Section 3.5 of the Land Use Management Ordinance that would allow the addition of clinic and residential uses to the existing mix of office and retail uses on the site would enhance the Chapel Hill North development, thereby improving the original intent for a mixed-use site. Please refer to the accompanying Land Use Management Ordinance Text Amendment application.

 

Partial revocation of the Phase One Special Use Permit would extract the proposed Residences at Chapel Hill North site from encumbrance by that permit. We believe that a partial revocation of the Phase One Special Use Permit is appropriate and necessary to achieve the concept of “mixed-use development” on the Chapel Hill North site.

 

2)      Provision of Affordable Housing: The applicant is proposing 123 rental units with 15 percent rental units (rounded down), or 18 units on-site, set aside as restricted units available as affordable units. The applicant is also proposing that the owner/management of the development market, lease and manage the affordable units. For additional information on the applicant’s affordable housing proposal, see Attachment 18.

 

Comment:  Although we are pleased that the applicant is proposing on-site affordable units, we are concerned about the proposed private management of affordable units. This is not a model that we have experience with. The proposal does not address oversight of the affordable units. Our experience in Chapel Hill is that developers typically partner with local non-profit housing agencies. It is our hope that the Council can provide direction to the applicant and staff regarding this proposal.

 

Our preliminary recommendation is that the developer propose an Affordable Housing Plan that addresses the following items, for approval by the Town Manager prior to issuance of a Zoning Compliance Permit:

  1. Provision of 15 percent of the proposed dwelling units as affordable dwelling unit(s) available to low and moderate income households with annual income at or below 80 percent of the area median income.
  2. The determination of eligibility of the renters or owners.
  3. Marketing of the dwelling unit(s).
  4. If rental, the determination of the rental rate.
  5. Adequate assurances that the designated units will remain affordable as rental units for  _____ years.
  6. Adequate assurances that the designated units, if converted to owner-occupied properties during this time period, continue to be used for affordable housing purposes for the remainder of this period.

We have included stipulations to this effect in Resolution B.

 

SUMMARY

 

We have attached a resolution that includes standard conditions of approval as well as special conditions that we recommend for this application. With these conditions, our preliminary recommendation is that the Council could make the four findings necessary in order to approve the application. Our recommendation, Resolution B, incorporates input from all Town departments involved in review of the application.

 

SUBSEQUENT REGULATORY STEPS

 

The following is a brief outline describing the next steps in the development review process, should the Council approve the Special Use Permit application for this site:

  1. The applicant receives copy of Council-adopted resolution.
  2. The applicant submits detailed Final Plans and documentation, complying with Council stipulations. Information is reviewed by Town departments and the following agencies (if applicable):
    • North Carolina Department of Transportation,
    • North Carolina Department of Environment and Natural Resources,
    • Orange Water and Sewer Authority,
    • Duke Energy,
    • Public Service Company,
    • Time Warner Cable, and
    • BellSouth.
  3. The Community Design Commission reviews and approves building elevations and site lighting plans.
  4. Any relevant access easement and right-of-way dedication plat(s) are approved by Town staff, and are recorded at the Orange County Register of Deeds Office.
  5. Upon the applicant’s demonstration of compliance with remaining Council stipulations, Town staff issues a Zoning Compliance Permit authorizing site work. Permit includes conditions specific to the development and requires pre-construction conferences with Town staff.
  6. The Engineering Department issues an Engineering Construction Permit, authorizing any work within the public right-of-way.

RECOMMENDATIONS

 

Recommendations From Advisory Boards and Town Staff are Summarized Below:

 

Planning Board:  The Planning Board met on October 3, 2006 and October 17, 2006. We will provide the Council with a Summary of the Planning Board Action when it is available.

 

Transportation Board:  The Transportation Board met on October 12, 2006. We will provide the Council with a Summary of the Transportation Board Action when it is available.

 

The Parks and Recreation Commission:  The Parks and Recreation Commission will meet on October 18, 2006. We will provide the Council with a Summary of the Parks and Recreation Commission Action when it is available.

 

Bicycle and Pedestrian Advisory Board:  The Bicycle and Pedestrian Advisory Board will meet on October 24, 2006. We will provide the Council with a Summary of the Pedestrian Advisory Board Action when it is available.

 

Community Design Commission:  The Community Design Commission will meet on October 25, 2006. We will provide the Council with a Summary of the Community Design Commission Action when it is available.

 

Greenways Commission:  The Greenways Commission will meet on October 25, 2006. We will provide the Council with a Summary of the Greenways Commission Action when it is available.

 

Preliminary Staff Recommendation: We recommend that the Council approve the request for a partial revocation of the Chapel Hill North Phase I Special Use Permit with the adoption of Resolution A. This action and the enactment of the accompanying Land Use Management Ordinance Text Amendment are required prior to adoption of the application for the Chapel Hill North Phase II Special Use Permit.

 

Based on our evaluation of the Phase II Special Use Permit application, our preliminary conclusion is that, with the stipulations in Resolution B, the application complies with the standards and regulations of the Land Use Management Ordinance.

 

Following tonight’s Public Hearing, we will prepare an evaluation of the evidence submitted in support of and in opposition to this application. If the Council makes the required findings for approval of the Chapel Hill North Phase II Special Use Permit, we recommend that the application be approved with the adoption of Resolution B.

 

Resolution C would deny the application.

 

ATTACHMENTS

  1. Staff Report to Advisory Boards (p. 8).
  2. Project Fact Sheet Requirements (p. 22).
  3. Resolution A, With Map (Partial Revocation of Chapel Hill North Phase I Special Use Permit) (p. 23).
  4. Resolution B (Preliminary Recommendation) (p. 24).
  5. Resolution C (Denying the Application) (p. 34).
  6. Transportation Impact Analysis Executive Summary (p. 35).
  7. 1990 Chapel Hill North Master Land Use Plan (p. 47).
  8. 1991 Chapel Hill North Phase I Special Use Permit (p. 51).
  9. Summary of CDC Concept Plan Review, Dated May 25, 2005 (p. 56).
  10. Minutes of Town Council Concept Plan Review, Dated June 20, 2005 (p. 58).
  11. Statement of Justification, Including Proposed Partial Revocation of the Chapel Hill North Phase I Special Use Permit (p. 63).
  12. Project Fact Sheet (p. 79).
  13. Statement of Necessity, Ephemeral Stream Land Disturbance (p. 81).
  14. Recreation Facilities Program, Dated September 20, 2006 (p. 84).
  15. Applicant’s Affordable Housing Proposal (p. 86).
  16. Letter from Lunsford Long, Dated September 8, 2006 (p. 88).
  17. Letter from Claudia Sheppard, Dated October 9, 2006 (p. 89).
  18. Reduced Plans (p. 91).
  19. Area Map (p. 100).