MEMORANDUM

to:

Roger L. Stancil, Town Manager

from:

Ray (Butch) Kisiah, Parks and Recreation Director
Bill Webster, Assistant Parks and Recreation Director
J.B. Culpepper, Planning Director

SUBJECT:

Public Hearing: Land Use Management Ordinance Text Amendment – Recreation Requirements and Payments in Lieu

DATE:

April 20, 2009

PURPOSE

Tonight’s public hearing has been called to consider a proposed Land Use Management Ordinance text amendment to amend various sections of Article 5.5 of the Land Use Management Ordinance and associated definitions. We recommend that the Council open the Public Hearing and receive comments regarding the proposed Land Use Management Ordinance text amendment.

BACKGROUND

On July 10, 2008, House Bill 2580 was ratified by the General Assembly. The bill provides enabling legislation that allows the Town to make changes to the Town’s Land Use Management Ordinance related to payments in lieu of Recreation Area and Recreation Space.

We have also identified sections of Article 5.5 of the Land Use Management Ordinance that could be improved to help clarify the intent of the ordinance and shift resources required for recreation purposes to more effective uses.

On January 26, 2009 the Council called a Public Hearing for April 20, 2009, to consider language amending various sections of Article 5.5 of the Land Use Management Ordinance. The resolution also called a June 15, 2009 public hearing to consider language related to requiring recreation space requirements for non-residential development that is proposed in the form of Special Use Permit applications.

DISCUSSION

We have identified two basic types of proposed changes to the current Land Use Management Ordinance. Those listed first are changes that would allow the Council greater flexibility to require payments in lieu of providing on-site recreation areas and recreation spaces. An increased ability to require payments should eventually result in greater revenues that could be used to make capital improvements to Town parks and greenways near the developments that generate the payments. The remaining proposed changes would result in greater clarity to the ordinance and an increased recognition of the Town’s greenways program.

The staff presented these preliminary recommendations to the Greenways Commission, Parks and Recreation Commission, and Planning Board. The advisory boards reviewed the staff recommendations in February and March 2009 and made additional recommendations, which are discussed herein. Recommended changes are shown on the attached draft ordinance.

PROPOSED CHANGES THAT WOULD ALLOW THE COUNCIL TO REQUIRE PAYMENTS IN LIEU OF PROVIDING ON-SITE RECREATION AREAS AND RECREATION SPACES

Requiring Recreation Area Payments in Lieu – Section 5.5.2(d)(2): Currently the ordinance allows the Council to require payments in lieu of Recreation Area if the required area is 2 acres or less. In 2008, the North Carolina General Assembly enacted legislation that gives the Town authority to increase the threshold for requiring payments in lieu of Recreation Area from the current 2 acres to 4 acres or less.

We think that increasing the limit would give the Council more flexibility to ensure that resources intended for improving recreational opportunities in the Town are used in the most effective manner. In some cases the future residents of a proposed subdivision could be better served if nearby public facilities are improved using a payment in lieu rather then providing an unimproved Recreation Area within the subdivision.

Advisory Board Recommendations – All three boards unanimously supported this recommendation.

Staff Comment – We recommend that this change be made.

Requiring Improved Recreation Space Payments in Lieu - Section 5.5.2(h):  Currently the Town Land Use Management Ordinance has no provision under which to require payments in lieu of improved Recreation Space, although we have a formula for calculating voluntary payments.  The General Assembly has enacted legislation that now gives the Town authority to require payments in lieu of Recreation Space.

Adding the provision to require payments in lieu of Recreation Space to the Land Use Management Ordinance would give the Council more flexibility in dealing with multi-family development applications. We believe that in many past cases the provision of improved Recreation Space on-site has been ineffective. This seems to be especially true with smaller developments that do not have enough useable land and/or are not obligated to provide enough land for meaningful recreation facilities. We believe that in some cases resources could be better spent by improving nearby public facilities instead of trying to provide inappropriate Recreation Space improvements on projects that do not have an adequate amount or configuration of land to provide beneficial facilities for their residents. Suggested changes are shown in the attached Land Use Management Ordinance language.

Advisory Board Recommendations – All boards unanimously supported this recommendation.

Staff Comment – We recommend that this change be made.

PROPOSED CHANGES THAT WOULD RESULT IN GREATER CLARITY AND AN INCREASED RECOGNITION OF THE TOWN’S GREENWAYS PROGRAM

Changes Suggested for Clarity- Title of Section 5.5; Sections 5.5.2(a), 5.52(b)(3), 5.52(d)(1), 5.52(g), and 5.52(h):  A number of minor changes are suggested throughout the draft document that are not substantive, but would improve clarity.

Advisory Board Recommendations – All three boards voted unanimously to support these changes.

Staff Comment – We think that these changes would result in greater clarity.

Required Review by the Greenways Commission - Section 5.5.1(c):  This would add language to require review by the Greenways Commission in the event that a development proposal impacts an identified greenway.

Advisory Board Recommendations – The Greenways Commission and Planning Board voted unanimously to support this provision.

Staff Comment – The Greenways Commission currently reviews developments that impact planned greenway corridors. We recommend that this change be made to require such review.

Use of Payments in Lieu Funds for Greenways – Section 5.5.2(d)(3) and 5.5.2(h): Insert the word “greenway” in the list of items for which payments in lieu can be used.

Advisory Board Recommendations – The Greenways Commission and Planning Board voted unanimously to support this provision.

Staff Comment – Payments have been used for greenway projects in the past. However, we recommend that this change be made in order to make it clear that funds can be used for this purpose.

Deletion of Exemption Provision - Section 5.5.2(e): The preliminary staff recommendation was to consider deleting the current provision that allows the Council to exempt Recreation Area requirements if the required Recreation Area is less than 3,000 square feet.

Advisory Board Recommendations – All boards unanimously supported the recommendation to retain the ability of the Council to grant an exemption if conditions warrant, but to remove specific reasons for such exemptions.

Staff Comment – After consideration of advisory board comments we have changed the recommended language to reflect the concern that Council be able to exempt these smaller projects if conditions warrant such an exemption. Staff believes that while it is not necessary to list reasons for exemptions, it is important to require dedication in the event that the development is located adjacent to planned recreation areas, parks, open spaces, or greenways as identified on the Town’s Comprehensive Plan.

Greenway Land Dedication – Sections 5.5.2(b)(2), 5.5.2(e)(2), and 5.5.1(g): The current provision requires land to be dedicated to the Town if it abuts a Greenway corridor identified in the Comprehensive Plan. The provision was expanded in the preliminary staff recommendation to include the same requirement if the project is adjacent to a Greenway corridor identified in a greenway project conceptual plan or project master plan adopted by the Council. We currently have Council adopted conceptual plans for the Bolin Creek and Dry Creek Trails that vary in some ways from language in the older Greenways Master Plan, which is a part of the Comprehensive Plan.

Advisory Board Recommendations – All three advisory boards voted unanimously to support this provision with one change. The Commissions recommend that the originally suggested words “Concept Plan” be replaced with “conceptual plan” in all sections. This recommendation was made in order to reduce possible confusion between the formal Concept Plan process used by the Council in the development review process and the project level conceptual plan process used to present projects to the Council in their role as owner of individual projects.

Staff Comment – We support the recommendation proposed by advisory boards to change the wording “Concept Plan” to “conceptual plan”. We have made changes to reflect this recommendation throughout the draft Ordinance.

Calculation of Payments in Lieu of Recreation Space - Section 5.5.2(h): The recommended language would better describe the method for determining how to calculate payments in lieu of Recreation Space. Recreation Space is calculated by multiplying the amount of required Recreation Space by a dollar amount established by the Council in each year’s budget. Currently the amount is $12 per square foot.

Advisory Board Recommendations – All three advisory boards voted unanimously to support this change.

Staff Comment – We recommend that this change be made.

Definition of Recreation Area - Appendix A: The current Land Use Management Ordinance does not include a definition of Recreation Area. We believe that such a definition might be useful to all parties involved in the development process. We recommend deleting the definition of Recreation Land because there is no corresponding reference to Recreation Land in the body of the Land Use Management Ordinance.

Advisory Board Recommendations – All boards unanimously supported the recommendation to add the attached definition of Recreation Area and to delete the definition of Recreation Land.

Staff Comment – We recommend that these changes be made.

Definition of Recreation Space - Appendix A:  During the development review process we frequently deal with issues related to the definition of Recreation Space or Improved Recreation Space. The ordinance specifically requires that “active” recreation space be provided. However, it is not unusual for developers to initially propose improvements such as lawn and floral areas, benches, and picnic tables for their active recreation requirements. Developers frequently complain that the ordinance is too vague in its definition of what exactly Recreation Space should entail. We propose a new definition of Recreation Space that includes examples of active facilities as well as examples of facilities that would not be considered active. The definition also proposes that up to 30% of the recreation space may consist of passive recreation elements if they are located adjacent to and support the more active recreation elements. For example, some picnic facilities, seating, and lawn games could be counted if they are adjacent to a children’s play area, basketball court, or swimming pool and support the mission of the active area.

Advisory Board Recommendations – All boards unanimously supported the recommendation to change the definition of Recreation Space and supported the recommendation proposed by the staff. In addition the Planning Board and Greenways Commission recommended adding Paved and Unpaved Trails to the list of active facilities. These items have been added to the recommended list of examples of active facilities in the attached draft Ordinance.

Staff Comment – We recommend that this change be made.

JUNE 15, 2009 PUBLIC HEARING FOR RECREATION REQUIREMENTS RELATED TO NON-RESIDENTIAL DEVELOPMENT

On January 26, 2009 the Council called a Public Hearing for June 15, 2009 to consider language related to requiring recreation space requirements for non-residential development that is proposed in the form of Special Use Permit applications. The provisions in State law that would allow us to require recreation space and facilities, and now, by extension through the local act, payments in lieu, require that we develop a fair basis for determining how much the payment in lieu of recreation space or facilities a developer should provide.

We think that this issue is far more complicated than determining a fair basis for residential development. We think that it is important to have a well reasoned basis for determining the amount of recreation space that would be required for various non-residential developments in order to avoid future legal challenges to the ordinance. For example, how do we determine the recreation space requirements for disparate development types such as offices, banks, retail stores, and restaurants?  We recommend that additional time be granted to the staff to accomplish additional research and communicate with other communities that may impose such regulations. We recommend that the originally scheduled June 15 public hearing be moved to a public hearing date on October 19, 2009.

FISCAL NOTE

We believe that some of the changes proposed in the Land Use Management Ordinance will have a fiscal impact.  We expect that changes related to requiring payments in lieu of recreation space and recreation area would generate additional revenues that could be used for capital level recreation projects and renovations. 

RECOMMENDATIONS

Greenways Commission Recommendations:  The Greenways Commission reviewed the proposed text amendment on February 25, 2009, and recommended that the Council enact the attached Ordinance. Please refer to the Attachment 2 for the Greenways Commission recommendation.

Parks and Recreation Commission Recommendations:  The Parks and Recreation Commission reviewed the proposed text amendment on February 18, 2009, and recommended that the Council enact the attached Ordinance with changes. Please refer to the Attachment 3 for the Parks and Commission recommendation.

Planning Board Recommendation:  The Planning Board reviewed the proposed text amendment on March 3, 2009, and recommended that the Council enact the attached Ordinance. Please refer to the Attachment 4 for the Summary of Planning Board Action.

Staff Recommendation:  That the Council open the Public Hearing to receive comment on the proposal to enact the Ordinance to amend various sections of Article 5.5 of the Land Use Management Ordinance and associated definitions.

The Staff recommends that the Council adopt the attached resolution moving the Public Hearing scheduled for June 15, 2009 to consider language related to requiring recreation space requirements for non-residential development that is proposed in the form of Special Use Permit applications to a public hearing date on October 19, 2009.

ATTACHMENTS

1.      Draft Ordinance (p. 8).

2.      Greenways Commission Recommendation (p. 14).

3.      Parks and Recreation Commission Recommendation (p. 16).

4.      Summary of Planning Board Action (p. 17).