AGENDA #9a

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Overview Memorandum – Procedural issues related to Europa Applications Modification of Existing Special Use Permit and Application for New Special Use Permit

DATE: June 25, 2001

INTRODUCTION

Tonight the Council continues the Public Hearings from May 14 regarding the Hotel L’ Europa/Village Office Park Complex Special Use Permit Modification and the Europa Office Building Special Use Permit. Questions regarding the completeness of the applicant’s traffic information were raised during the May 14 Public Hearing. The Hearing is being reconvened tonight to receive applicant and staff responses to these questions and other key issues.

The purpose of this Overview Memorandum is to specifically discuss issue of whether additional information on traffic is warranted, and to outline procedural steps for the Council to consider prior to considering the two accompanying memoranda (Item B and Item C). Other key issues associated with this application, other than traffic, are discussed in the two attached memoranda.

We reported on May 14 our opinion that the information on traffic submitted by the applicant is adequately sufficient for the Council to consider and act on both applications. We note that the Council could come to a different conclusion and therefore we offer the following Resolutions as alternatives to taking action tonight:

· Adoption of Resolution A would require the applicant to submit an updated traffic impact statement. Resolution A would also recess the Public Hearing until November 12, 2001, to allow time for the study to be completed.

· Adoption of Resolution B would direct the Town Manager, using existing data and studies, to report to the Council on traffic conditions on US 15-501 between Ephesus Church Road and Sage Road. Resolution B, as attached, does not recess the Public Hearing.

· Adoption of Resolution C would direct the Town Manager to implement a new study of traffic conditions in the general area. The proposed study area would include but not be limited to Erwin Road, Sage Road, and US 15-501 from Ephesus Church Road to I-40. Resolution C, as attached, does not recess the Public Hearing.

· Adoption of Resolution D would recess the Public Hearing until such time that the Town Manager returns with either a report on the US 15-501 intersections as required by Resolution B or new traffic study as required by Resolution C.

Background

On May 14, 2001, a Public Hearing was held for consideration of two Special Use Permit applications: the Hotel L’ Europa/Village Office Complex Special Use Permit Modification and the Europa Office Building Special Use Permit.

The Hotel L’ Europa Special Use Permit Modification application includes: 1) A proposal to reduce the overall area encumbered by the 1981 Special Use Permit boundary; and 2) A request to divide the remaining Special Use Permit boundary area and associated developments, the Sheraton Hotel and the Village Office Park, into two separate Special Use Permits. The Europa Office Building Special Use Permit application proposes construction of a 38,000 square foot, two-story office building with 108 on-site parking spaces on a 2.24-acre site.

During the Public Hearing citizens and Council members expressed concerns about the following traffic issues:

· The applicant’s traffic impact statement;

· The proposed Superstreet for the Erwin Road/US 15-501 intersection;

· Pending developments in the area; and

· A resolution by the Planning Board asking for additional information on nearby intersections.

Some Council members expressed concerns that the submitted application did not contain adequate information on the traffic generated by this proposal and traffic impacts on the surrounding area. At the May 14^th Public Hearing concerns about traffic and questions about additional information were referred to the Town Manager for comment and recommendation.

In addition, we note that on May 21, a petition was brought to the Town Council from nearby residents, calling for a moratorium on approval of new development in this area while a traffic studies are performed. That petition was referred to the Town Manager and is discussed under “Key Issues” below.

PROCESS

This memorandum discusses the concerns expressed about traffic during the May 14 Public Hearing and other traffic issues raised in letters from neighbors (attached). In response we offer several options, in the form of attached Resolutions, for Council’s consideration.

Prior to considering the accompanying memoranda evaluating the two subject applications (Item B and Item C), we suggest that the Council: 1) Determine if additional information on traffic is required; and 2) If so, what type of information is desired. These options are reflected in the three attached resolutions.

The Resolutions would require that either the applicant or Town Manager, or both, return to the Council with additional information on traffic. Adoption of Resolution A would require additional information from the applicant and recess consideration of the two applications until November 12, 2001. Adoption of Resolution B or C would require additional information from the Town Manager and would not recess the hearing. Resolution D would recess the hearing until such time that the Town Manager reports back to the Council on traffic issues raised by Resolutions B or C.

We note that it would be appropriate to proceed with consideration of the Public Hearings on the two applications tonight if the Council determines that additional information on traffic is unnecessary.

EXISTING APPLICATION

We believe that adequate information exists with the applicant’s existing traffic impact statement for the Council to act at tonight’s hearing on the two applications without requiring additional information on traffic.

As we previously stated during the May 14 Public Hearing, we believe that the applications, including the submitted traffic impact statement, are adequate. We refer the Council to the attached memorandum from the Engineering Department dated May 7, 2001. We also refer the Council to the attached June 19, 2001 letter from the Town’s Engineering Director. This letter is a response to the issues raised in a May 25, 2001 letter to the Council from Mr. Harvey Krasny.

We note that in reviewing this project, in addition to the traffic analysis contained in the applicant’s traffic impact statement, town staff also referenced and relied on the following documents:

· The Marriott Resident Inn Traffic Impact Statement

· NCDOT’s analysis of the US 15-501/Erwin Road Superstreet intersection;

· Signal timing study conducted by the Town of Chapel Hill at the US 15-501/Sage Road intersection; and

· The US 15-501 Major Investment Study

We note that case law has established a principle called “rational nexus” requiring that there be a clear relationship between requirements attached to a development approval, and the needs and impacts that are created by a proposed development. We have reported our opinion that the nature of the proposals, and the submission of what staff considers an acceptable traffic impact statement, is a reasonable match. We believe that the request to modify the Europa L’ Hotel Special Use Permit, and the new Special Use Permit for an office building, is not of a nature that affects the rational nexus or rough proportionally test that must be applied.

Therefore, we do not recommend that this applicant be required to submit additional information on traffic.

However we note that, due to the concerns raised about traffic at the May 14 Public Hearing, the Council could arrive at a different conclusion and determine that additional information is required. In light of that possibility we have included Resolution A for the Council’s consideration. Adoption of Resolution A would require the applicant to submit an updated traffic impact statement. Resolution A would also recess the Public Hearing until November 12, 2001.

For additional discussion on the applicant’s submitted traffic impact statement, please see the “Key Issues” section below.

KEY ISSUES

During the Public Hearing on the Europa L’ Hotel Special Use Permit Modification application and the Europa Office Building Special Use Permit citizens and Council members raised several key issues. We believe the key issues concern the applicant’s traffic impact statement, the Erwin Road/US 15-501 intersection, pending developments in the area, and a request by the Planning Board for additional study of nearby intersections.

Subsequent to the Public Hearing the Council received a citizen petition seeking a moratorium on development in area bounded by Interstate 40, Dobbins Road and Erwin Road. A brief comment on this petition follows the below discussion on key issues.

1. Traffic Impact Statement: The applicant initially submitted these applications to the Town in 1996. That submittal included a Traffic Impact Statement. Subsequent revision and resubmission of the application occurred in 1998 and 2000. Each submittal included the original Traffic Impact Statement from 1996.

We note that the Transportation Board and the Community Design Commission did not believe that they could make a fair evaluation of the request for this application without an updated Traffic Impact Analysis. The Transportation Board believes, that in order to consider this proposal, the applicant must update the 1996 Traffic Impact Statement.

Staff Comment: This issue was previously discussed in the text of the May 14 Europa Office Building Special Use Permit memorandum. Our response to the issue at that time stated that, based on an analysis by the Town Engineer, we did not believe that a revised traffic impact statement was necessary. A copy of the Town’s Engineer’s memorandum from May 7 is attached.

We continued to believe that a revised traffic impact statement is not necessary for this project. As noted in the attached memorandum from the Town Engineer, the staff reviewed and analyzed existing traffic conditions on US 15-501 using information received from other proposed development in the area. The conclusion found no significant change in the level of service or delay from the new traffic expected to be generated by the Europa Office Building.

In light of the concerns expressed by advisory boards, issues raised by citizens at the Public Hearing and comments from the Council on this subject, we believe an option available to the Council is to require the applicant to revise the traffic impact statement. Adoption of Resolution A would direct the Town Manager to require that the applicant amend the Special Use Permit applications and submit an updated traffic impact statement.

Adoption of Resolution A would recess the Public Hearing on the Special Use Permit Modification and the Special Use Permit to November 12, 2001.

2. Erwin Road/US 15-501 Superstreet Intersection: Several questions raised at the May 14 hearing concerned the future superstreet intersection planned for the Erwin Road /US 15-501 intersection. Citizens and Council members asked if the design of this new intersection anticipated the traffic generated by the proposed Europa Office development as well as the traffic generated by two other nearby (Marriott Resident Inn and Jefferson Commons) development proposals. Questions about funding and the anticipated construction completion date for the superstreet were also raised.

Staff Comment: In response to the questions concerning the design of the superstreet and projecting future traffic volumes, we refer the Council to the attached June 19, 2001 letter from the Engineering Department to Mr. Harvey Krasny.

The Engineering Department believes that the proposed superstreet improvements would be capable of handling expected traffic growth in the vicinity at an acceptable level of service.

The attached June 19 letter also notes the following:

· A annual growth factor of 4% was used in the design of the superstreet;

· The design of the superstreet anticipated an increase of more than 10% in traffic volumes by 2004;

· Construction of the superstreet is planned for 2004;

· The superstreet analysis and associated design account for future development that could reasonably be expected for undeveloped land in the vicinity of Europa Drive/Erwin Road/US 15-501 intersection; and

· Modeling suggest that the superstreet design should reduce vehicle travel time through the intersection area and reduce delays

Please refer to the attachment from the 2002-2008 North Carolina Department of Transportation’s Transportation Improvement Program for addition information on the funding and anticipated construction timetable for the US 15-501/Erwin Road intersection improvements (superstreet). The attached schedule indicates an anticipated construction cost of approximately two million dollars with the funding source from the State. Construction start up is noted as fiscal year 2004.

Based on the review of this issue by the Engineering Department we believe that the proposed superstreet, as designed, anticipated expected traffic growth in the vicinity of the proposed development.

3. Pending Developments in the Area: Please refer to Attachment #1 of this memorandum for additional discussion on this issue. We note that one rezoning request has been submitted and others are being discussed as possible future applications. None of these have been approved.

4. Planning Board Resolution on Traffic Study: At the Public Hearing the chair of the Planning Board presented the Council with a copy of a resolution adopted by the Planning Board. The Resolution is attached to this memorandum. The resolution recommends that the Council study traffic conditions at several intersections on US 15-501 prior to approving additional developments in the area. The Council requested that the Town Manager return with options available to the Council in responding to the Planning Board’s resolution.

Staff Comment: We note that the resolution submitted by the Planning Board seeks additional information on intersections on US 15-501 between Ephesus Church Road and Sage Road. We believe that this information is already available in existing documents. We believe that much of this information is available in the November 1998 US 15-501 Phase 1 Corridor Study and other NCDOT documentation on the proposed superstreet for the Erwin Road/US 15-501 intersection.

We believe that much of the additional information that the Planning Board suggests is existing information that can be retrieved in a reasonably short time and presented to the Council at a later date. If on the other hand, the Council determines that a new study of traffic conditions at the three intersections is warranted, we note that a greater amount of time will be necessary in order to complete such study.

We note that if the Council wishes the Town Manager to undertake a new study, it will be necessary for the Town Manager to hire a consultant for the project. The necessary resources are not available for existing Town staff to undertake such a project. We also believe that, based on the anticipated traffic impact associated with the proposed development applications, we do not believe that it is reasonable or warranted for the Europa applicant to conduct a new study of these intersections.

If the Council is interested in receiving additional information on the intersections as noted in the attached resolution from the Planning Board we note two possible options: 1) Attached Resolution B would require the Town Manager to report back to the Council on existing information on the three intersections; or 2) Attached Resolution C would direct the Town Manager to begin the process necessary to undertake a new study of traffic in the area, including the three intersections, and return to the Council with additional information on the scope and cost of the study.

These Resolutions do not recess the Public Hearings on the two subject applications nor do they prohibit the Town Council from approving other future developments in the area.

5. Moratorium Petition: The Council recently received a citizen petition seeking a development moratorium in an area bounded by Interstate 40, Dobbins Road and east of Erwin Road. A copy of the petition is attached to this memorandum.

Staff Response: Given the relatively modest size of this proposed new building, and given the length of time this application has been under review, we do not believe that these applications should be delayed as part of the consideration of this moratorium..

Due to the unusual staff workload demands associated with the new zoning district/proposed development ordinance text amendment for the University OI-4 rezoning, the revisions to the Development Ordinance, and ongoing work on pending development application and requests for information, we are unable to return to the Council with a response to this petition at this time. We note that a response to the petition, outlining options available to the Council and steps necessary for the Council to call a public hearing on a development moratorium is currently scheduled to return to the Council on September 10, 2001.

Within the last ten years, the issue of development moratorium has been before the Council on several occasions. Each time the Council has received some general information on the topic. Attached for informational purposes is a copy of a 1990 article “Land Use and Development Moratoria” written by David Owens, published in the Institute of Government’s Popular Government magazine and a 1995 memorandum on development moratoria written by the Town Attorney.

We also note that the Transportation Board has called for a similar moratorium (see attached Summary)

RECOMMENDATIONS

Manager’s Recommendation: Based on our evaluation and the evidence presented at the Public Hearing, we believe that it is reasonable to proceed with consideration of the two applications currently before the Council.

Alternatively, we believe the Council could decide that additional information is needed. Resolution A would request the applicant to modify these applications by submitting a revised traffic impact statement. Resolution A would recess the Public Hearing until November 12, 2001.

Resolution B would direct the Town Manager, using existing data and studies, to report to the Council on traffic conditions on US 15-501 between Ephesus Church Road and Sage Road. Resolution B, as attached, does not recess the Public Hearing.

Resolution C would direct the Town Manager to implement a new study of traffic conditions in the general area. The proposed study area would include but not be limited to Erwin Road, Sage Road, and US 15-501 from Ephesus Church Road to I-40. Resolution C, as attached, does not recess the Public Hearing.

Resolution D would recess the Public Hearing until such time that the Town Manager returns with either a report on the US 15-501 intersections as required by Resolution B or new traffic study as required by Resolution C.

EUROPA APPLICATIONS

(MODIFICATION OF EXISTING SPECIAL USE PERMIT

AND APPLICATION FOR NEW SPECIAL USE PERMIT)

DIFFERENCES AMONG RESOLUTIONS

ISSUE

Resolution A

Resolution B

Resolution C

Resolution D

Applicant to Revise Traffic Impact Statement

Yes

Town Manager report on

US 15-501 intersections

Yes

Town Manager conduct new traffic study

Yes

Recess Public Hearing

Yes

(Recess until November 12, 2001)

Yes

(Recess until Town Manager returns with information requested in Resolutions B or C)

ATTACHMENTS

Description of pending developments in the area (p. 10).
Resolution A (p. 12).
Resolution B (p. 13).
Resolution C (p. 14).
Resolution D (p. 15).
June 19, 2001 letter from Engineer Director to Harvey Krasny (p. 16).
May 25, 2001 letter from Harvey Krasny to the Mayor and Town Council (p. 18).
May 19, 2001 citizen petition on development moratorium (p. 20).
May 18, 2001 letter from Lynne K. Kane (p. 22).
May 7, 2001 Memorandum from Engineering Director (p. 23).
May 1, 2001 Resolution from Planning Board (p. 29).
April 24, 2001 letter from Harvey Krasny (p. 30).
NCDOT Transportation Improvement Program Schedule (p. 33).
1995 memorandum on development moratorium (p. 34).
Summary of Transportation Board Action (p. 51).

ATTACHMENT 1

HOTEL L’ EUROPA/VILLAGE OFFICE PARK COMPLEX

SPECIAL USE PERMIT MODIFICATION

EUROPA OFFICE BUILDING SPECIAL USE PERMIT

Discussion on pending developments in the area

During the Public Hearing, several Council members requested additional information on the status of pending developments in the general area and along Erwin Road. Some Council members and citizens expressed concern that the traffic generated by proposed developments in the area was not considered in the design of the Superstreet or anticipated in the applicant’s traffic impact statement.

Staff Comment: A general description of three pending development proposals and status of each development application is outlined below.

· Marriott Resident Inn: Hotel on a 13.4 acre site that is located northwest of the intersection of Erwin Road and Dobbins Drive. The proposed hotel would include 126 lodging units, and a total of 133 parking spaces. This site is diagonally across US 15-501 from the Sheraton Hotel. This development, as currently proposed, requires Council approval of a Zoning Atlas Amendment and Special Use Permit application.

The Community Design Commission conducted a concept plan review of this development on January 24, 2001. Applications for a Special Use Permit and Zoning Atlas Amendment, including a traffic impact statement, were received and accepted by Town staff in April and staff review was completed in May.

The next step in this process is for the applicant to resubmit plans and documentation for presentation to advisory boards and Council. As of this memorandum, the applicant has not provided staff with the necessary application materials for review by advisory boards or the Council. Meeting dates before advisory boards and Council on this development proposal have not been scheduled at this time.

· Jefferson Commons at Chapel Hill: Mixed-development on a 16.3 acres site located northeast of the intersection of Erwin Road and Dobbins Drive. The proposed development consists of a two-story 38,000 square foot retail/office building, 180 multi-family dwelling units and 176 parking spaces. This site is within 1,000 feet of the Erwin Road/US 15-501 intersection. This development, as currently proposed, requires Council approval of a Zoning Atlas Amendment and Special Use Permit application.

The Community Design Commission conducted a concept plan review of this development on May 8, 2001.

The next step for the applicant is to submit Special Use Permit and Zoning Atlas Amendment applications for staff review. As of this memorandum, the staff has not received these applications. Meetings date before advisory boards and Council on this development proposal have not been scheduled at this time.

· Notting Hill II: Multi-family development on a 33.6 acre site that is located north of the Englewood subdivision on the east side of Erwin Road. The proposed development includes 186 dwelling units that consist of 259,590 square feet of floor area. A total of 325 parking spaces are proposed. This site is within 1 mile of the Erwin Road/US 15-501 intersection. This development, as currently proposed, requires Council approval of a Zoning Atlas Amendment and Special Use Permit application.

The Community Design Commission conducted a concept plan review of this development on May 16, 2001.

Each of the three development proposals would need Council approval of a Zoning Atlas Amendment.

ATTACHMENT 2

RESOLUTION A

A RESOLUTION REQUESTING THAT THE APPLICANT FOR THE HOTEL L’ EUROPA/VILLAGE OFFICE PARK COMPLEX SPECIAL USE PERMIT MODIFICATION AND EUROPA OFFICE BUILDING SPECIAL USE PERMIT MODIFY THE APPLICATIONS (2001-06-25/R-15a)

WHEREAS, on May 14, 2001, the Town Council held a Public Hearing on the Europa L’ Hotel Special Use Permit Modification application and the Europa Office Building Special Use Permit application; and

WHEREAS, the Public Hearing on these two items were was recessed and continued to June 25, 2001; and

WHEREAS, the submission of both applications included the a Traffic Impact Statement from 1996; and

WHEREAS, testimony presented during the Public Hearings on both applications included concerns and statement about the current and future traffic conditions at the Europa Drive/Erwin Road/US 15-501 intersection and surrounding area; and

WHEREAS, Council members expressed concerns about the submission of a five year old traffic impact statement;

NOW, THEREFORE BE IT RESOLVED that the Town Council requests that the applicant for the Hotel L’ Europa/Village Office Park Complex Special Use Permit Modification and the Europa Office Building Special Use Permit modify the applications and submit a revised and updated traffic impact statement. Traffic counts for the updated traffic impact statement should not be conducted prior to the beginning of the fall 2001 semester at the University of North Carolina.

BE IT FURTHER RESOLVED that in order for the applicant to revise and update the traffic impact statement and to allow time for Town staff to review the information and report back to the Council, the Public Hearings on the two applications shall be recessed until November 12, 2001.

This the 25^th day of June, 2001.

ATTACHMENT 3

RESOLUTION B

A RESOLUTION REQUESTING THAT THE TOWN MANAGER RETURN TO THE TOWN COUNCIL WITH A REPORT ON TRAFFIC CONDITIONS ON US 15-501 BETWEEN EPHESUS CHURCH ROAD AND SAGE ROAD (2001-06-25/R-15b)

WHEREAS, the Public Hearing on these two items was recessed and continued to June 25, 2001; and

WHEREAS, during the Public Hearing the Chapel Hill Planning Board presented the Town Council with a Resolution requesting that the Town Council study traffic conditions on US 15-501 between Ephesus Church Road and Sage Road; and

WHEREAS, testimony presented during the Public Hearings on both applications included concerns and statements about the current and future traffic conditions at the Europa Drive/Erwin Road/US 15-501 intersection and surrounding area; and

WHEREAS, Council members expressed concerns about the traffic conditions on US 15-501; and

WHEREAS, much of the additional information that the Planning Board suggests is existing information that can be retrieved and presented to the Council;

NOW, THEREFORE BE IT RESOLVED that the Town Council requests that the Town Manager, using existing data and studies, report to the Council on traffic conditions on US 15-501 between Ephesus Church Road and Sage Road.

This the 25^th day of June, 2001.

ATTACHMENT 4

RESOLUTION C

A RESOLUTION REQUESTING THAT THE TOWN MANAGER IMPLEMENT A NEW STUDY OF TRAFFIC CONDITIONS IN THE AREA NEAR THE EUROPA DRIVE/ERWIN ROAD/US 15-501 INTERSECTION (2001-06-25/R-15c)

WHEREAS, the Public Hearing on these two items was recessed and continued to June 25, 2001; and

WHEREAS, Council members expressed concerns about the traffic conditions on US 15-501; and

WHEREAS, the Town Council believes that new additional information is needed to evaluate the Europa L’ Hotel Special Use Permit Modification application and the Europa Office Building Special Use Permit application; and

WHEREAS, the Town Council find that an expanded traffic study area that includes US 15-501 between Ephesus Church Road and Interstate 40, Erwin Road between US 15-501 and Interstate 40 and Sage Road between Us 15-501 and Erwin Road needs to be examined; and

WHEREAS, the resources are not available for current town staff to conduct such a study;

NOW, THEREFORE BE IT RESOLVED that the Town Council requests that the Town Manager begin the process necessary to undertake a new study of traffic in the area and return to the Council with additional information on the scope and cost of the study.

This the 25^th day of June, 2001.

ATTACHMENT 5

RESOLUTION D

A RESOLUTION RECESSING THE PUBLIC HEARINGS ON THE HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX SPECIAL USE PERMIT MODIFICATION AND THE EUROPA OFFICE BUILDING SPECIAL USE PERMIT APPLICATIONS (2001-06-25/R-15d)

WHEREAS, the Public Hearing on these two items was recessed and continued to June 25, 2001; and

WHEREAS, during the Public Hearing the Planning Board presented the Town Council with a Resolution requesting that the Town Council study traffic conditions on US 15-501 between Ephesus Church Road and Sage Road; and

WHEREAS, Council members expressed concerns about the traffic conditions on US 15-501; and

WHEREAS, the Town Council requests that the Town Manager return to the Town Council with additional information on traffic conditions in the area; and

WHEREAS, the Town Council concludes that this additional information is necessary in order to consider making the finding that the proposed use or development is located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare;

NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Chapel Hill that the Public Hearings on the two applications shall be recessed until (insert date).

This the 25^th day of June, 2001.