AGENDA #11
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Franklin Grove Townhomes – Application for Special Use Permit Modification
(File Nos. 7.45.A.1-25)
DATE: June 15, 2005
INTRODUCTION
Tonight the Council continues the Public Hearing from May 16, 2005, regarding a Special Use Permit Modification to increase the total allowable floor area at Franklin Grove by 41,000 square feet for a total of 148,479 square feet. The Franklin Grove development is located on East Franklin Street between Elliott Road and Milton Avenue. The applicant proposes no changes to building appearance, building layout, or parking area. The site is located in the Residential-4 (R-4) and Residential-5 (R-5) zoning districts and is identified as Orange County Tax Map 45, Block A, Lots 1 through 25.
MANAGER'S RECOMMENDATION
Based on the information in the record to date, we believe that the Council could make the findings required to approve the Special Use Permit Modification application. We recommend that the Council adopt Resolution A, approving the application.
This package of materials has been prepared for the Town Council's consideration, and is
organized as follows:
BACKGROUND
Concept Plan reviews of this application were conducted by the Community Design Commission on September 22, 2004, and by the Town Council on November 15, 2004.
KEY ISSUE
We have identified the following key issue associated with this development, discussed below:
Affordable Housing: In 1999, with the approval of the Franklin Grove development, the Town Council authorized up to 58 dwelling units and renovation of existing dwelling units on Milton Avenue with a total development floor area of 107,479 square feet.
Stipulations of the 1999 Special Use Permit for Franklin Grove included provisions for affordable housing. The developer was required to renovate and sell four homes on Milton Avenue to the Orange Community Housing and Land Trust. And, the four homes on Milton Avenue are encumbered by the 1999 Special Use Permit. The developer chose to build 48 new units for a total of 52 dwelling units. Significant structural issues have been uncovered in one of the four Milton Avenue structures (111 Milton Avenue). Please refer to the correspondence from the Orange Community Housing and Land Trust regarding this (Attachment 1 of the May 16 memorandum).
The letter from the Land Trust requests that the Council increase the allowable floor area for affordable housing and increase the number of dwelling units allowed explicitly for affordable housing. The Land Trust specifically requests an additional 6,000 square feet of floor area for affordable housing (in addition to the applicant's request for 35,000 square feet) and four additional dwelling units to be allocated exclusively for the affordable housing component. We understand the intent is to construct duplexes on the four properties on Milton Avenue as funds become available.
The Statement of Justification, provided by the applicant, included alternatives to the increase in affordable floor area. These included a proposal for financial contribution towards structural repairs for the dwelling unit at 111 Milton Avenue or entering an agreement with the Land Trust where the applicant would assume ownership of 111 Milton Avenue in exchange for other property. Conversations with the applicant indicate that their land swap proposal is no longer a feasible idea.
Comment: We continue to recommend inclusion of the Land Trust's suggestion to increase the number of dwelling units by four and to increase the allowable floor area by an additional 6,000 square feet exclusively for affordable units. Resolution A, the Manager's revised recommendation, includes:
• A provision for additional floor area and up to four additional units for the Milton Avenue portion of the development.
In addition, we continue to recommend that the construction start and completion dates for the future potential affordable units on Milton Avenue be at 25 years and 28 years respectfully. Resolution A, the Manager's revised recommendation, includes:
• An extended start or completion deadlines for the potential, future affordable housing units on Milton Avenue.
We have included these provisions in Resolution A because we believe it would be reasonable to allow the Milton Avenue affordable housing component to expand as well as the new Franklin Grove dwelling units.
EVALUATION OF THE APPLICATION
The standard for review and approval of a Special Use Permit Modification application involves consideration of four findings of fact that the Council must consider for granting a Special Use Permit Modification. Based on the evidence that is accumulated during the Public Hearing, the Council will consider whether it can make each of the four required findings for the approval of a Special Use Permit Modification. If, after consideration of evidence submitted at the Public Hearing, the Council decides that it can make each of the four findings, the Land Use Management Ordinance directs that the Special Use Permit Modification 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.
Tonight, based on the evidence in the record thus far, we provide the following evaluation of this application based on the four findings of fact that the Council must consider for granting a Special Use Permit Modification.
Finding #1: That the use of development is located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare.
We believe the evidence in the record to date can be summarized as follows:
Evidence in support: Evidence in support of this finding for the application has been provided by the applicant's Statement of Justification (Attachment 1).
We note the following from the applicant's Statement of Justification:
?The modification will not change the appearance or functioning of the community that was unanimously approved by the council back in 1999. All exterior elevations, placement of buildings, number of homes, parking spaces, entrances to the homes, and all other elements of the community will remain exactly the same. The only change will be the floor area in the attics.? [Applicant's Statement]
Evidence in opposition: We have not identified any evidence offered in opposition to Finding #1.
We anticipate that further evidence may be presented for the Council's consideration as part of the continued Public Hearing process.
Finding #2: That the use of development complies with all required regulations and standards of the Land Use Management Ordinance, including all applicable provisions of
Articles 3 and 5, and applicable specific standards in the Supplemental Use Regulations (Article 6) and with all other applicable regulations.
We believe the evidence in the record to date can be summarized as follows:
Evidence in support: Evidence in support of Finding #2 for this application has been provided by the applicant's Statement of Justification (Attachment 1).
We note the following from the applicant's Statement of Justification:
?Only the allowable floor area in Franklin Grove will change. All other town regulations and standards previously met and currently conformed with will remain in effect. The proposed modification will help to insure continued conformance with the letter and the sprit of the Land Use Management Ordinance.? [Applicant's Statement]
Evidence in opposition: Evidence in opposition of Finding #2 for this application would include the fact that, if the request for modification of regulations is not approved, the development would not meet the Land Use Management Ordinance provisions for maximum floor area.
We anticipate that further evidence may be presented for the Council's consideration as part of the continued Public Hearing process.
Finding #3: That the use would be 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.
We believe the evidence in the record to date can be summarized as follows:
Evidence in support: Evidence in support of Finding #3 for this application has been provided by the applicant's Statement of Justification (Attachment 1).
We note the following from the applicant's Statement of Justification:
?The modification will allow the developer Capkov Ventures, Inc. to continue constructing the community of Franklin Grove as it was originally intended.? [Applicant's Statement]
Evidence in opposition: We have not identified any evidence offered in opposition to Finding #3.
We anticipate that further evidence may be presented for the Council's consideration as part of the continued Public Hearing process.
Finding #4: That the use or development conforms with the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the Comprehensive Plan.
We believe the evidence in the record to date can be summarized as follows:
Evidence in support: Evidence in support of Finding #4 for this application has been provided by the applicant's Statement of Justification (Attachment 1).
We note the following from the applicant's Statement of Justification:
?Franklin Grove was designed as a complimentary residential use within a primarily commercially zoned area of Chapel Hill. The Town of Chapel Hill commissioned a small area plan for the area of East Franklin Street in which Franklin Grove is located. The type of development, the design of the streets, the architecture, the landscaping and the preservation of the oak tree lined park on Franklin Street were all proposed in an effort to conform with that small area plan. The East Franklin Street Corridor study was incorporated into the town's comprehensive plan. We think that Franklin Grove exemplifies high quality development complimenting the entrance to Chapel Hill from the east.? [Applicant's Statement]
Evidence in opposition: We have not identified any evidence offered in opposition to Finding #4.
We anticipate that further evidence may be presented for the Council's consideration as part of the continued Public Hearing process.
PROPOSED MODIFICATIONS OF REGULATIONS
The applicant is requesting a modification to regulations from one section of the Land Use Management Ordinance. The Town Council has the ability to modify the regulations, according to Section 4.5.6 of the Land Use Management Ordinance, as follows:
?Where actions, designs, or solutions proposed by the applicant are not literally in accordance 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.?
1. Section 3.8.1 Floor Area Ratio: Section 3.8.1 of the Land Use Management Ordinance permits a maximum floor area ratio of .230 in the Residential-4 (R-4) zoning district and a maximum floor area ration of .303 in the Residential-5 (R-5) zoning district. Based on the land area in each zoning district, a maximum allowable floor area would be 107,479 square feet. The applicant is proposing 142,479 square feet of floor area and has stated that the modification of regulations to allow additional floor area is necessary for completion of the development.
We believe that the applicant's request to modify floor area ratios in Section 3.8.1 of the Land Use Management Ordinance to allow completion of the development is reasonable and that the additional floor area would satisfy public purposes to an equivalent or greater degree. We believe the public purpose is the provision of additional affordable housing through increasing the allowable floor area by an additional 6,000 square feet for the exclusive use of the affordable housing component. We recommend approval of this modification and believe that the Council could make a finding that the modification would satisfy public purposes to an equivalent or greater degree.
Alternatively, the Town Council could reasonably conclude that some or all of the proposed modifications to regulations would not satisfy public purposes to an equivalent or greater degree and could therefore deny the application or require compliance with the particular regulation(s).
Accordingly, we recommend that the Council modify the regulations as follows:
? Modification of Section 3.8.1 of the Land Use Management Ordinance floor area ratio requirements, to allow a maximum floor area of 148,479 square feet (including 6,000 square feet for the affordable housing component).
We recommend approval of this modification to regulations and believe that the Council could make a finding that the modification would satisfy public purposes to an equivalent or greater degree for the provision of additional affordable housing.
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, we believe that the Council could make the findings regarding health, safety, and general welfare, and consistency with the Comprehensive Plan. The Manager's recommendation incorporates input from all Town departments involved in review of the application.
RECOMMENDATIONS
Recommendations are summarized below. Please see summaries of board actions and recommendations in the attachments.
Planning Board Recommendation: On May 3, 2005, the Planning Board voted 7-0 to recommend that the Council approve this application with the adoption of Resolution B. Please see the attached Summary of Planning Board Action.
Resolution B includes the following stipulations:
Comment: We do not concur with this recommendation. We recommend that the Special Use Permit Modification approve a total of 148,479 square feet of floor area with 6,000 square feet exclusively for affordable housing and four additional affordable dwelling units for a total of 62 dwelling units.
Transportation Board Recommendation: On May 3, 2005, the Transportation Board voted 5-2 to provide no comments on this proposal. The Board felt there were no transportation issues for their consideration. Please see the attached Summary of Transportation Board Action.
Community Design Commission Recommendation: On May 25, 2005, the Community Design Commission voted 4-2 to recommend that the Council approve this application with the adoption of Resolution C with conditions. Please see the attached Summary of Community Design Commission Action.
Resolution C provides the following stipulations:
Comment: We do not concur with this recommendation. We recommend that the Special Use Permit Modification approve a total of 148,479 square feet of floor area with 6,000 square feet exclusively for affordable housing and four additional affordable dwelling units for a total of 62 dwelling units.
Comment: We do not concur with this recommendation. We recommend that the construction start and completion date be extended for the affordable housing component.
Comment: We do not concur with this recommendation. For additional discussion, please refer to the attached letter from the Orange Community Housing and Land Trust. We recommend that the Special Use Permit Modification approve a total of 148,479 square feet of floor area with 6,000 square feet exclusively for affordable housing and four additional affordable dwelling units for a total of 62 dwelling units
Bicycle and Pedestrian Advisory Board: The Bicycle and Pedestrian Advisory Board chose to not provide comments on this application.
Manager's Revised Recommendation: Based on the information in the record to date, we believe that the Council could make the finding required to approve the Special Use Permit Modification with the requested modification of the regulations. We recommend that the Council adopt Resolution A, approving the application with conditions. Resolution A, the Manager's revised recommendation, includes:
• A 25 year start and a 28 year completion deadlines for the potential, future affordable housing units on Milton Avenue.
• That a total development floor area of 148,479 square feet with 6,000 square feet exclusively for the affordable housing component.
Resolution B would approve the application as recommended by the Planning Board.
Resolution C would approve the application as recommended by the Community Design Commission.
Resolution D would deny the application.
ATTACHMENTS
1. Franklin Grove Special Use Permit Modification Applicant?s Four Findings of Fact (p. 16).
2. Community Design Commission Summary of Action (p. 18).
3. May 16, 2005 Public Hearing Memorandum and related attachments (begin new page 1).
RESOLUTION A
(Manager's Revised Recommendation)
A RESOLUTION APPROVING A SPECIAL USE PERMIT MODIFICATION FOR THE FRANKLIN GROVE TOWNHOMES (2005-06-15/R-18a)
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Capkov Ventures, Inc. for a multi-family development on property identified as Chapel Hill Township Tax Map 45, Block A, Lots 1-25 if developed according the conditions listed below would:
1. Be located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare;
2. Comply with all regulations and standards of the Land Use Management Ordinance, including all applicable provisions of Articles 3 and 5, the specific standards contained in the Supplemental Use Regulations (Article 6), and with all other applicable regulations;
3. Be located, designed, and proposed to be operated so as to maintain or enhance the value of contiguous property; and
4. Conform with the general plans for the physical development of the Town as embodied in the Land Use Management Ordinance and in the Comprehensive Plan.
BE IT FURTHER RESOLVED by the Town Council of Chapel Hill that it finds, in this particular case, that the following modifications satisfy public purposes to an equivalent or greater degree:
Said public purpose being the provision of additional affordable housing.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for the Franklin Grove Townhomes Special Use Permit Modification in accordance with the conditions listed below:
Stipulations Specific to the Development
1. The conditions of the October 22, 1999 Special Use Permit, recorded Book 2027, Page 531, continue to apply to this development with the following adjustments provided below.
2. That construction be completed by June 15, 2007 (two years from the date of Council approval) with the exception of the additional affordable housing component. The additional affordable housing component construction start date shall begin by June 15, 2030 (25 years from the date of Council approval) and construction shall be completed by June 15, 2033 (28 years from the date of Council approval).
3. Land Use Intensity: That the Special Use Permit modification approves four additional affordable dwelling units (for a total of 62 dwelling units) to exclusively allow the Orange Community Housing and Land Trust to construct a total of four duplex units (four additional dwelling units) on Milton Avenue, for a total development Floor Area of 148,479 square feet (with 6,000 additional square feet exclusively for affordable housing) within the boundaries of this Special Use Permit Modification.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit Modification for the Franklin Grove Townhomes property in accordance with the conditions listed above.
This the 15th day of June, 2005.
RESOLUTION B
(Planning Board Recommendation)
A RESOLUTION APPROVING A SPECIAL USE PERMIT MODIFICATION FOR THE FRANKLIN GROVE TOWNHOMES (2005-06-15/R-18b)
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Capkov Ventures, Inc. for a multi-family development on property identified as Chapel Hill Township Tax Map 45, Block A, Lots 1-25 if developed according the conditions listed below would:
BE IT FURTHER RESOLVED by the Town Council of Chapel Hill that it finds, in this particular case, that the following modifications satisfy public purposes to an equivalent or greater degree:
Said public purpose being the provision of additional affordable housing.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for the Franklin Grove Townhomes Special Use Permit Modification in accordance with the conditions listed below:
Stipulations Specific to the Development
3. Land Use Intensity: That the Special Use Permit modification approves four additional affordable dwelling units (for a total of 62 dwelling units) to exclusively allow the Orange Community Housing and Land Trust to construct a total of four duplex units (eight dwelling units) on Milton Avenue, for a total development Floor Area of 148,479 square feet (with 6,000 additional square feet exclusively for affordable housing) within the boundaries of this Special Use Permit Modification.
4. Affordable Housing: That Capkov Ventures, Inc. has committed to repair work for 111 Milton Avenue. Capkov Ventures, Inc. shall contribute a minimum of $10,000 for repair work, capping Orange Community Housing and Land Trust obligation at $10,000, and Capkov Ventures Inc. shall be responsible for any additional funds necessary or enter an agreement with Orange Community Housing and Land Trust to assume ownership of the Milton Avenue property in exchange for other property deemed more appropriate by the Orange Community Housing and Land Trust and the Town Manager.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit Modification for the Franklin Grove Townhomes property in accordance with the conditions listed above.
This the 15th day of June, 2005.
RESOLUTION C
(Community Design Commission Recommendation)
A RESOLUTION APPROVING A SPECIAL USE PERMIT MODIFICATION FOR THE FRANKLIN GROVE TOWNHOMES (2005-06-15/R-18c)
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Capkov Ventures, Inc. for a multi-family development on property identified as Chapel Hill Township Tax Map 45, Block A, Lots 1-25 if developed according the conditions listed below would:
BE IT FURTHER RESOLVED by the Town Council of Chapel Hill that it finds, in this particular case, that the following modifications satisfy public purposes to an equivalent or greater degree:
Said public purpose being the provision of additional affordable housing.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for the Franklin Grove Townhomes Special Use Permit Modification in accordance with the conditions listed below:
Stipulations Specific to the Development
3. Land Use Intensity: That the Special Use Permit modification approves a total development Floor Area of 142,479 square feet within the boundaries of this Special Use Permit Modification.
4. Affordable Housing: That Capkov Ventures, Inc. has committed to repair and warranty work for 111 Milton Avenue in accordance with a report issued by a structural engineer.
BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit Modification for the Franklin Grove Townhomes property in accordance with the conditions listed above.
This the 15th day of June, 2005.
RESOLUTION D
(Denying the Application)
A RESOLUTION DENYING AN APPLICATION FOR SPECIAL USE PERMIT MODIFICATION FOR THE FRANKLIN GROVE TOWNHOMES (2005-06-15/R-18d)
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Capkov Ventures, Inc. for a multi-family development on property identified as Chapel Hill Township Tax Map 45, Block A, Lots 1-25 if developed according the conditions listed below would not:
BE IT FURTHER RESOLVED that the Town Council finds:
(INSERT REASONS FOR DENIAL)
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that the Council hereby denies the application for a Special Use Permit Modification for Franklin Grove Townhomes.
This the 15th day of June, 2005.