AGENDA #2c

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	J.B. Culpepper, Planning Director
	George Small, Engineering Director
	Kumar Neppalli, Traffic Engineer
	Gene Poveromo, Development Coordinator
SUBJECT:	Public Hearing: University Village Development – Application for Special Use Permit Modification  (File No. 9798-54-7612)
DATE:	January 17, 2007

INTRODUCTION

The Town has received an application for a Special Use Permit Modification proposing construction of a mixed-use development with 511,985 square feet of floor area, including 203 residential units and 784 parking spaces on an 11.2-acre site. The site is located on the south side of Highway NC 54/Raleigh Road, between Hamilton Road and Finley Golf Course Road. The proposal includes replacing the existing University Inn and the Avalon Medical Office Building and constructing six multi-story buildings with office, retail, and residential uses, a hotel and associated parking.

Associated with the Special Use Permit Modification application are applications for a Zoning Text Amendment, to amend the Mixed Use–Village (MU-V) zoning district, and a Zoning Atlas Amendment to rezone the property from Community Commercial (CC) to the proposed amended MU-V. Please refer to the accompanying memorandums for a discussion of the text amendment and rezoning applications.

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

• Cover Memorandum:  Introduces application, describes process for review, summarizes staff and advisory board comments, and offers recommendations for Council action.
• Staff Report:  Offers a detailed description of the site and proposed development, and presents an evaluation of the application regarding its compliance with the standards and regulations of the Land Use Management Ordinance.
• Attachments: Includes a checklist of requirements for this development, resolutions of approval and denial, advisory board comments, and the applicant’s materials.

PROCESS

The Land Use Management Ordinance requires the Town Manager to conduct an evaluation of this Special Use Permit Modification 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 Town Council.

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

BACKGROUND

1952	The University Motor Inn was built.
March 27, 1989	A Special Use Permit application was approved for the “University Village” development that included retail and a movie theater. The plans encompassed the eastern portion of the site (includes the area occupied by the Aurora Restaurant, East-West Partners and the Prestwick Place Office Building).
February 1996	A Special Use Permit Modification application was approved, to reduce the boundary of the previously-approved Special Use Permit.
April 16, 2004	Community Design Commission reviewed a Concept Plan Proposal for the University Village property.
September 20, 2004	Town Council reviewed a Concept Plan Proposal for the University Village property.  This proposal is the same as reviewed by the Community Design Commission April 16, 2004.
September 28, 2005	Community Design Commission reviewed a revised Concept Plan Proposal for the University Village.  This proposal differed from the previous proposal.
October 19, 2005	Town Council reviewed the Concept Plan proposal that was presented to the Community Design Commission on September 28, 2005.

Copies of the Town Council and Community Design Commission Summaries of Concept Plan Review and the applicant’s response are attached (Attachment 5, 6 and 7).

DESCRIPTION OF THE APPLICATION

This proposal is for the demolition of the University Village Motel and the Avalon Medical Office Building located at the corner of Hamilton Road and NC 54, in order to construct a mixed-use development.  The proposal includes 511,985 square feet of floor area, including 203 residential units and 784 parking spaces on an 11.2-acre site. The site is located between Hamilton Road and Finley Golf Course Road. The proposal includes six multi-story buildings with office, retail, and residential uses, a hotel and associated parking. The following floor area allocations are proposed: 238,904 sq. ft. residential (203 units), 58,487 sq. ft. retail, 120,214 sq. ft. office, and 70,000 sq. ft. hotel use.

Primary vehicular access to the University Village site is proposed from an existing central driveway on NC 54.  Secondary access is from one driveway on Hamilton Road and three access driveways on Prestwick Road.  

EVALUATION OF THE APPLICATION

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

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 Town Council will consider whether or not it can make each of the four required findings for the approval of a Special Use Permit and whether it chooses to approve the proposed modifications of regulations.  The four findings are:

Special Use Permit Modification  – 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 several key issues related to this development.  A brief discussion on each follows.

1. Minimum Parking Regulations, Mixed Use-Village District:  The Mixed Use-Village section of the Land Use Management Ordinance (Section 3.5.1(d)(4)) states:

“Off-street parking requirements shall be 50% of the minimum parking requirements          listed in the Parking and Loading Standards section of the ordinance.”

The development proposes 511,985 square feet of floor area, including 203 residential units.  The following floor area allocations are proposed: 238,904 sq. ft. residential (203 units), 58,487 sq. ft. retail, 120,214 sq. ft. office, and 70,000 sq. ft. hotel use.

Square Footages Proposed	Minimum vehicular parking (Parking and Loading Standards)	50% of minimum vehicular parking
Residential: 238,904	273	136.5
Office: 120,214	343	171.5
Retail: 58,487	234	117
Hotel: 70,000	140	70
Total: 511,985  sq. ft.	990 spaces	495 spaces
Applicant’s Proposal                                      784 spaces

Comment:  Standard minimum vehicular parking requirements for this development would establish a minimum requirement of 990 parking spaces.  The applicant proposes 784 vehicular spaces for this mixed use development.  Approximately 68 percent of the proposed spaces are proposed to be in structures rather than surface parking. 

The Mixed Use-Village zoning district, created in 2003, is a new district that has not yet been applied to any site.  The new district acknowledges the desired shared parking aspect of mixed use development and applies a reduced minimum parking standard.  The district establishes minimum parking requirements at 50 percent of the standard requirements.  We believe establishment of a reduced minimum requirement is desirable.  The new mixed use district does not establish maximum requirements.

The Council’s adopted policy which encourages limitations on parking at 110 percent of the minimums was adopted prior to the 2003 creation of the Mixed Use-Village zoning district and the policy did not anticipate the concept of reduced minimum parking requirements.  Because the 110 percent policy predates the concept of reduced minimum parking requirements, and because much of the parking is proposed in structures, we recommend that the Council approve the proposal for 784 vehicular parking spaces, which is well below the standard minimum requirement of 990 spaces. Resolution A would authorize 784 spaces. 

2. Finley Golf Course Road Sidewalk and Stormwater Management: The applicant has agreed to make road improvements on Finley Golf Course Road between NC 54 and Prestwick Road. The recommended improvements include reconstructing the roadway to a three-lane cross-section, with one lane southbound and two lanes northbound.  The applicant has also agreed to construct a sidewalk along the west side of Finley Golf Course Road, between NC 54 and Prestwick Road.  Because we anticipate that the proposed mixed-use development will generate an increase in pedestrian activity in this area, we believe that this sidewalk segment is a desirable improvement.

We believe that the right-of-way for the portion of Finley Golf Course Road, adjacent to the Aurora Restaurant property, is wide enough to construct the above described roadway improvements but does not include enough right-of-way for the sidewalk.  In order to construct the roadway improvements and the sidewalk it will be necessary for the applicant to acquire additional right-of-way or an easement from the owner of the Aurora Restaurant. We understand that the Aurora Restaurant site was recently purchased by University of North Carolina Hospital (UNCH) and that the applicant is currently discussing securing an easement for the sidewalk with this property owner.  Resolution A includes a stipulation that requires the applicant to construct the sidewalk, if adequate right-of-way or an easement can be acquired from UNCH.

Resolution A also includes a stipulation that requires the applicant to provide stormwater management improvements associated with the construction of the sidewalk.  The applicant has expressed a concern with the requirement to provide stormwater management in this area. We believe that the applicant is concerned that in order to properly address stormwater management in this area it will be necessary to provide extensive infrastructure on the UNCH property.  We believe that the applicant’s position is that the UNCH property owner should be responsible for this improvement at such time Aurora Restaurant site is redeveloped.

Comment: We believe that the proposed development will generate pedestrian traffic onsite, as well as on adjacent properties. Sidewalks either exist or are proposed around the perimeter of the block formed by NC 54, Prestwick Road, Finley Golf Course Road, and Hamilton Road.  We therefore believe it is desirable and necessary for a sidewalk segment along the Finley Golf Course Road, between NC 54 and Prestwick Road.  We believe that the construction of this sidewalk should address stormwater management and have included this recommendation in Resolution A, the staff’s preliminary recommendation.  

3. Landscape Buffers: The applicant is requesting modification from the regulations for the minimum perimeter landscape buffers. In particular the applicant is proposing that portions of the development include buffer areas that do not comply with the minimum buffer width. During its review of this project, the Planning Board recommended that in lieu of modifying the regulations, that the applicant obtain approval of alternate buffers from the Community Design Commission.  Alternate buffer approval would require the Community Design Commission to review proposed buffer widths and planting materials.

During its review of the proposed development, the Community Design Commission recommended that Council approve the proposal with a stipulation that requires the Community Design Commission to review and approve the planting materials.  This recommendation would be in lieu of requiring the applicant to obtain approval of alternate buffers.  

Comment: Resolution A includes the Community Design Commission recommendation. We believe that justification exists for granting a modification to the buffer regulation.  For additional discussion on the applicant’s request for modifications to the regulations, please refer the discussion below on this subject.

4. Leadership in Energy and Environmental Design Certification (LEED): We understand that the applicant has voluntarily agreed to construct the development to Silver Leadership in Energy and Environment Design (LEED) certification. For additional information on the applicant’s LEED program please refer to Attachment 18.  The Community Design Commission recommended that this be a condition of approval for the Special Use Permit.

Comment: Resolution A includes a stipulation requiring that the applicant verify Silver LEED certification prior to the issuance of a Zoning Compliance Permit.

5. Avalon Medical Building: Change in Use:  Subsequent to the submission of the original application, the applicant has expressed an interest to convert the Avalon Medical Building into a temporary real estates sales office for the University Village project.  Please refer to Attachment 16 for additional information on the applicant’s proposal.

Comment: We believe that it is reasonable for the Council to authorize a change in use for the Avalon Medical Building to real estate sales office.  This recommendation has been incorporated into Resolution A.

6. Affordable Housing Proposal: The applicant has proposed that the development have a minimum of 30 percent affordable housing.  In order to attempt to distribute the units in a proportional manner throughout the development the applicant is also proposing that at least 20 percent of the units of any residential building will be affordable.

During the Planning Board and Community Design Commission review, the applicant proposed a program that would assist in maintaining future affordability and provide subsidies for the purpose of paying condominium and townhome Homeowners Association dues for persons who live in the affordable housing.

Comment: Resolution A includes a stipulation that at least 30 percent of all residential units be affordable and that at least 20 percent of the units in any residential building be affordable.

With respect to the applicant’s proposal to provide for continued and future affordability, staff recommends that the Council accepts the applicant’s offer.  We have included a stipulation to this effect in Resolution A.

7. Modifications to the Regulations

The applicant requests modification to regulations in the Land Use Management Ordinance for landscape buffers and screening/shading. The Town Council has the ability to modify the regulations, according to Section 4.5.6 in the Land Use Management Ordinance, as follows:

“Where actions, designs, or solutions proposed by the applicant are not literally in accord with applicable special use regulations, general regulations, or other regulations in this Chapter, but the Town Council makes a finding in the particular case that public purposes are satisfied to an equivalent or greater degree, the Town Council may make specific modification of the regulations in the particular case. Any modification of regulations shall be explicitly indicated in the Special Use Permit or Modification of Special Use Permit.”

Comment:  The applicant is proposing to modify the regulations as they relate to the following requirements in the Land Use Management Ordinance:

1. Modification of Section 5.6.2 to modify the minimum landscape bufferyards.

2. Modification of Section 5.9.6 to modify parking lot screening standards.

3. Modification of parking lot shading requirements.

The applicant believes that the Council could find that public purposes are satisfied to an equivalent or greater degree.  Please refer to the attached Statement of Justification for additional justification as presented by the applicant.

In summary, the Town Council may modify one or more of the proposed modifications to regulations if it makes a finding in the particular case, that public purposes are satisfied to an equivalent or greater degree. The Town Council may deny one or more of the proposed modifications from regulations at its discretion. If the Council chooses to deny a request for modification to regulations, the applicant’s alternative is to comply with regulations.

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 a Special Use Permit based on the 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
• Bell South.

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 the 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, the Town staff issues a Zoning Compliance Permit authorizing site work. The permit includes conditions specific to the development and requires pre-construction conferences with the Town staff.

RECOMMENDATIONS

Transportation Board:  The Transportation Board is scheduled to review this item on January 11, 2007.  We will forward a copy of the Board’s recommendation as soon as it is available.

Parks and Recreation Commission:  The Parks and Recreation Commission is scheduled to review this item on January 17, 2007.  We will forward a copy of this recommendation as soon as it is available.

Greenways Commission:  The Greenways Commission is scheduled to review this item on January 24, 2007.  We will forward a copy of the Commission’s recommendation as soon as it is available.

Planning Board:  The Planning Board met on December 19, 2006, and voted 7-0 to recommend that the Council approve the Special Use Permit Modification application, with the adoption of attached Resolution B.  A copy of the Planning Board Summary of Action is attached to this memorandum.

The following recommendation from the Planning Board is incorporated into Resolution A.

· Affordable Housing Transfer Fee: That monies collected from a transfer fee associated with the sale/resale of properties are to be placed into a fund for the specific purpose of paying condominium and townhome HOA dues for persons who acquire affordable housing. Details of the fund shall be determined by the Town Manager.

For additional discussion on this subject, please refer to the Key Issues section of this memorandum.

Community Design Commission: On December 20, 2006, the Community Design Commission voted 7-1 to recommend that the Council approve the Special Use Permit Modification with the adoption of attached Resolution C.  A copy of the Summary of Community Design Commission Action is attached to this memorandum. 

The following recommendations of the Community Design Commission are incorporated into Resolution A.

• Perimeter Planting Areas-Landscape Materials: That the Community Design Commission shall review and approve landscape materials for all perimeter “Planting Areas” as proposed by the applicant.

Comment: For additional discussion, please refer to the Key Issues section of this memorandum.

• Leadership in Energy and Environmental Design Certification (LEED): That the applicant construct the development to Silver Leadership in Energy and Environment Design (LEED) certification.

Comment: For additional discussion, please refer to the Key Issues section of this memorandum.

Bicycle and Pedestrian Advisory Board: On December 12, 2006, the Bicycle and Pedestrian Advisory Board voted 5-0 to recommend that the Council approve the Special Use Permit Modification with the adoption of attached Resolution D.  A copy of the Summary of Bicycle and Pedestrian Advisory Board Actions is attached to this memorandum.

• Prestwick Road Sidewalk: Where possible, in lieu of a five-foot wide sidewalk, construct a seven-foot wide sidewalk, on the south side of Prestwick Road.

• Prestwick Road Crosswalk: Construct the raised crosswalk on Prestwick Road, in lieu of providing a payment in lieu.

• Pedestrian/Bicycle Directional Signage: Provide pedestrian and bicycle directional signage.

• Parking Deck Entrance Design: Design a continuous sidewalk across the parking deck entrance for each entrance.

• Bicycle Detector Loops: Provide bicycle detector loops at the intersections of Hamilton Road and Finley Golf Course Road.

• Pedestrian Connection to Aurora/McLean property: Provide a crosswalk and sidewalk to connect Building 7 to the adjacent property to the east.

Comment: For additional discussion, please refer to the Key Issues section of this memorandum.

Following Advisory Board review, the staff has added the below recommendations into Resolution A.

· Avalon Medical Building: Change in Use: That the Avalon Medical Building may be converted into a temporary real estates sales office for the University Village project.

Comment: For additional discussion, please refer to the Key Issues section of this memorandum.

· Finley Golf Course Road Sidewalk-Stormwater Management: That the design and construction of a sidewalk, along the west side of Finley Golf Course Road between NC 54 and Prestwick Road, shall include stormwater management infrastructure.

Comment: For additional discussion, please refer to the Key Issues section of this memorandum.

· Taxation: That during any time this property is exempt from ad valorem property taxes, the owner shall make annual payments-in-lieu of property taxes, the amount to be determined based on a valuation determined by the Orange County Tax Supervisor and the applicable year’s established city and county tax rate.

Comment: This standard stipulation was inadvertently omitted from the original Resolution.

Preliminary Staff Recommendation: We recommend that the Council approve the Special Use Permit Modification application with the adoption of Resolution A. Enactment of the two accompanying applications: 1) the Land Use Management Ordinance Text Amendment for Mixed-Use Village; and 2) the Zoning Atlas Amendment application that proposes to rezone the site from the current Community Commercial district to Mixed-Use Village are required prior to the adoption of the application for the University Special Use Permit Modification.

Based on the information available at this stage of the application review process, we believe that with:

1) The enactment of the accompanying Land Use Management Ordinance Text Amendment, as recommended by the staff, to modify the Mixed-Use Village zoning district; and

2) The approval of the Zoning Atlas Amendment application to rezone the site from the current Community Commercial district to the staff-recommended amended Mixed Use-Village zoning district.

The proposed Special Use Permit Modification with conditions in Resolution A and proposed modifications to regulations would comply with the requirements of the Land Use Management Ordinance, the Design Manual, and that the proposal conforms with the Comprehensive Plan.

Resolution A would approve the application with conditions.

Resolution B would approve the application with conditions proposed by the Planning Board.

Resolution C would approve the application with conditions proposed by the Community Design Commission.

Resolution D would approve the application with conditions proposed by the Bicycle and Pedestrian Advisory Board.

Resolution E would deny the application.

ATTACHMENTS

1. Staff Report (p. 1-1).
2. Project Fact Sheet Requirements (p. 2-1).
3. Resolution A (Preliminary Recommendation) (p. 3-1).
4. Resolution B (Planning Board) (p. 4-1).
5. Resolution C (Community Design Commission) (p. 5-1).
6. Resolution D (Bicycle and Pedestrian Advisory Board) (p. 6-1).
7. Resolution E (Denying the Application) (p. 7-1).
8. Planning Board Summary of Action (p. 8-1).
9. Community Design Commission Summary of Action (p. 9-1).
10. Bicycle and Pedestrian Advisory Board Summary of Action (p. 10-1).
11. Summary of CDC Concept Plan Review (p. 11-1).
12. Minutes of Town Council Concept Plan Review (p. 12-1).
13. Revised Statement of Justification (p. 13-1).
14. Transportation Impact Analysis Executive Summary (p. 14-1).
15. Applicant’s Affordable Housing Proposal (p. 15-1).
16. Applicant’s Proposal for Avalon Building (p. 16-1).
17. Applicant’s Phasing Plan (p. 17-1).
18. “Leadership in Energy and Environmental Design” information (p. 18-1).
19. Reduced Plans (p. 19-1).
20. Area Map (p. 20-1).

University Village Special Use Permit

      DIFFERENCES AMONG RESOLUTIONS-RECOMMENDATIONS

ISSUES	Resolution A Staff’s Preliminary	Resolution B Planning Board	Resolution C Community Design Comm.	Resolution D Bicycle/Pedestrian Board
Perimeter landscaping areas  approval by the Community Design Commission	Landscape materials only	Landscape materials and planting area  width	Landscape materials only	*
Obtain LEED Silver Certification	Yes	*	Yes	*
Prestwick Road sidewalk width on south side	Minimum width seven feet where practical	Five feet	Five feet	Minimum width seven feet where practical
Raised crosswalk/traffic calming on Prestwick Road	Installed by applicant prior to Certificate of Occupancy	Payment-in-lieu	Payment-in-lieu	Installed by applicant prior to Certificate of Occupancy
Directional signage for pedestrians and bicycles	Yes	*	*	Yes
Parking deck entrances design for pedestrian safety	Yes	*	*	Yes
Bicycle Detector Loops at Hamilton/ Finley Golf Course Road intersection	Yes	*	*	Yes
Pedestrian connection to Aurora/McLean property	Yes (crosswalk and sidewalk)	*	*	Yes (crosswalk and sidewalk)
Finley Golf Course Road sidewalk: stormwater mitigation	Yes	*	*	*
Avalon Medical Building : Change of use	Temporary use as project real estate office	*	*	*

N/A = Issues not raised at Advisory Board meeting, and therefore not included in the Resolution