AGENDA #10

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Eastowne 501 Office Building – Application for Special Use Permit

DATE:             November 12, 2001

                       

INTRODUCTION

Tonight the Council continues the Public Hearing from October 17, 2001, regarding the Special Use Permit application to authorize the construction of a 2-story office building with 36,709 square feet of floor area. Adoption of Resolution A would approve a Special Use Permit application with conditions.  Adoption of Resolution B would deny the request.

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

¨      Cover Memorandum:  Provides background information on the development proposal and the Town’s review process, presents evidence in the record thus far in support of and in opposition to approval of the application, and offers recommendations for Council action. 

¨      Attachments:  Includes resolutions of approval and denial, and a copy of the Public Hearing memorandum and its related attachments. 

Background

On September 24, 2001, the Town Council responded to several petitions requesting enactment of a moratorium in the US 15-501/Erwin Road/Sage Road areas.  The Council chose not to enact a moratorium in the area. In response to the petitions, the Council scheduled a Work Session for January 23, 2002 for the purpose of further discussing the existing and projected conditions in the northeast section of Chapel Hill.  In addition, the Council instructed the Town Manager not to schedule any public hearings on rezoning requests in the areas described in the petitions until the Council has conducted the Work Session.  This application for development does not involve a rezoning.    

On October 17, 2001, a Public Hearing was held for consideration of a Special Use Permit application to authorize the construction of a 2-story office building on a 3.8-acre site. The site is located within the Eastowne Office Park. The site has frontage on Old Sterling Drive, Eastowne Drive, and Providence Road. It is across Eastowne Drive from Blue Cross/Blue Shield office buildings. We note that on October 17, the Council determined that contiguous property would be defined as those properties within 1,000 feet of this site.

This is an application for a Special Use Permit.  The Development Ordinance requires the Town Manager to conduct an evaluation of this Special Use Permit application, to present a report to the Planning Board, and to present a report and recommendation to the Town Council.  We have reviewed the application and evaluated it regarding its compliance with the standards and regulations of the Development Ordinance; we have presented a report to the Planning Board; and on October 17 we submitted our report and recommendation to the Council.

evaluation of the application

The standard for review and approval of a Special Use Permit application involves consideration of four findings of fact that the Council must consider for granting a Special Use Permit.  Based on the evidence that is accumulated during the Public Hearing, the Council will consider whether or not it can make each of four required findings for the approval of a Special Use Permit. 

If, after consideration of the evidence submitted at the Public Hearing, the Council decides that it can make each of the four findings, the Development Ordinance directs that the Special Use Permit shall then be approved.  If the Council decides that the evidence does not support making one or more of the findings, then the application cannot be approved and, accordingly, should be denied by the Council.

Tonight, based on the evidence presently in the record thus far, we provide the following evaluation of this application based around the four findings of facts that the Council must consider for granting a Special Use Permit.

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.

We believe the evidence in the record to date can be summarized as follows:

Evidence in support:  Evidence in supportof Finding #1 for this application has been provided by the applicant’s Statement of Justification (provided as an attachment to the October 17 memorandum).  We note the following key points raised by the applicant: 

·        “The proposed improvements to the site will provide adequate off-street parking for employees, clients and visitors. The project has planned to utilize the natural slope of the property to put parking under the building, providing visual shielding of the parking from the road. The under building areas will also provide sheltered and lighted bicycle parking areas. The common facilities will include a shower and other amenities for the employees of the project.” [Applicant Statement]

Evidence in opposition:  No one spoke at the Public Hearing or offered evidence in opposition. 

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 or development complies with all required regulations and standards of this chapter, including all applicable provisions of Articles 12, 13, and 14 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 supportof Finding #2 for this application has been provided by the applicant’s Statement of Justification (provided as an attachment to the October 17 memorandum).  We note the following key points raised by the applicant: 

·        “This proposed development is located on 3.79 acres (GLA) zoned O&I-2. The lot is bounded to the south by Old Sterling Drive, to the east by Eastowne Drive, to the north by Providence Court and the adjacent office building and to the west by the Creek and a portion of Sterling Ridge Apartments. The permitted floor area is 36,859 square feet. The proposed or designed floor areas is 36,709 square feet. The maximum parking spaces are 148 and the project is designed for 131.” [Applicant Statement]

·        “Article 12 – Use Groups – this project matches zoning regulations for O&I-2 zoning.” [Applicant Statement]

·        “Article 13 – Intensity regulations – floor area ratios comply with the requirements of this type of zoning and project. The open space requirement is met or exceeded in this design. Please see the separate Fact Sheet for calculations.” [Applicant Statement]

·        “Article 14 – Design standards site criteria vehicle circulation off street parking.” [Applicant Statement]

·        “Article 18 – Special Use Permits – Subsection 18.7 – Special Uses – not applicable as this project is not a special application or use. The project is applying for a Special Use Permit because of the size and disturbed land area.[Applicant Statement]

·        “Article 18 – Special Use Permit – Subsection 18.8 – Planned Development – not applicable because this project is hot part of a planned development.” [Applicant Statement]

Evidence in opposition:  No one spoke at the Public Hearing or offered evidence in opposition. 

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 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;

We believe the evidence in the record to date can be summarized as follows:

Evidence in support:  Evidence in supportof Finding #3 for this application has been provided by the applicant’s Statement of Justification (provided as an attachment to the October 17 memorandum).  We note the following key points raised by the applicant:   

·        “The proposed improvements will assist in completing the anticipated build-out of the Eastowne Office Park by providing an up-scale, class A multi-tenant office building. This development is consistent with the zoning and master plan for Eastowne as well as the Town’s Master Plan and Design Guidelines. The quality level of development will enhance surrounding property values by establishing a higher value through two of the three appraisal valuation methods. The cost comparison of this project will be higher than those other projects built earlier under a lower cost. The required rental income to meet these higher costs will elevate the income valuation of this property and all surrounding properties. The two elements of cost and income valuation will mean a higher sale value of properties. The two elements of cost and income valuation will mean a higher sale value if ever sold. This will establish a higher sale comparable at some point in the distant future.” [Applicant Statement]

·        “The design of the building will utilize exterior materials of energy-efficient glass and either brick or architectural pre-cast, in keeping with the trends already established in the Eastowne commercial developments. The exterior is to use a curved curtain wall of glass at its entrance and at the opposite corner facing the Eastowne Drive/Old Sterling Road intersection. This glass transitions into a hard wall and glass exterior that will give an upscale image. The hard wall will be either brick or an architectural pre-cast panel using crushed marble or granite. The glass will be energy efficient double pane insulated with a dark gray or similar color.” [Applicant Statement]

·        “The development of the site has been designed to provide a maximum distance and screening from nearby residential apartment projects. The project has been designed to create a large distance with landscape screening between any parking and the RCD area, the creek and greenway trails. The building has been designed to not have any parking between it and Eastowne Drive to provide a screened landscape approach. The site has been designed to minimize disturbed land area as well as minimizing the need to import fill dirt. Placement of the building and parking has been designed to maximize the landscaping buffers facing Eastowne Drive and Old Sterling Drive. The parking has been redesigned to put parking under the building thereby creating almost 100 feet from the corner of Old Sterling and Eastowne Drives to the corner of the parking lot.” [Applicant Statement]

·        “The project will incorporate a bio-retention basin and separate detention structure to control all runoff from this development. The project will incorporate the most recent standards for ADA compliance and building code compliance. It will serve as the most recent model of how these new requirements can be implemented in a professional, attractive way.” [Applicant Statement]

Evidence in opposition:  No one spoke at the Public Hearing or offered evidence in opposition. 

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 this chapter and in the Comprehensive Plan.

We believe the evidence in the record to date can be summarized as follows:

Evidence in support:  Evidence in supportof Finding #4 for this application has been provided by the applicant’s Statement of Justification (provided as an attachment to the October 17 memorandum).  We note the following key point raised by the applicant:     

·        “The project complies with the intended development of this site as office or institutional use – category 2, its current zoning. The improvements will create a project that will be in compliance with the Town Development Ordinance. The project is consistent with the Comprehensive Plan and compatible with neighboring land uses. The development will enhance the value of real estate in the vicinity:” [Applicant Statement]

Evidence in opposition:  No one spoke at the Public Hearing or offered evidence in opposition. 

We anticipate that further evidence may be presented for the Council’s consideration as part of the continued Public Hearing process.

key issueS

No issues were raised at the October 17 Public Hearing.

Recommendations

Recommendations are summarized below.  Please see the attached summaries of board actions and recommendations.

Planning Board Recommendation:  The Planning Board reviewed this application on August 7, 2001 and voted 7-0 to recommend that the Council approve the application with adoption of Resolution A, with the addition of the following stipulation: That the applicant provide a proportional payment-in-lieu for installation of a traffic signal at the Sage Road/Erwin Road intersection. The Summary of Planning Board Action is part of Attachment 3.

Staff Comment:  We note that a recently approved development at Sage Road and Old Sterling Drive was required to provide a proportional payment-in-lieu for future installation of a traffic signal at the Sage/Erwin Roads intersection. We believe that it is appropriate to recommend that other developments generating increased traffic at this intersection contribute to the cost of the traffic signal. The Traffic Impact Statement performed for the 501 Eastowne Office Building noted increased traffic generation from this proposal at the intersection. We have included a stipulation in Resolution A recommending a proportional payment-in-lieu for a traffic signal at the intersection of Sage Road and Erwin Road. The proposed impact fee formula is as follows: proportion of traffic impact x estimated signal cost = impact fee (2.5% x $60,000 = $1,500). We recommend that the payment be refunded, if unused, 5 years from the date of the last Certificate of Occupancy, upon request.

Transportation Board Recommendation:  The Transportation Board reviewed this application on August 7, 2001 and voted 6-0 to recommend that the Council approve the application with adoption of Resolution A, with the following change to stipulation #7,                                                                                                 That a bus stop be provided on Old Sterling Drive, just west of the proposed project driveway.  The Summary of Transportation Board Action is part of Attachment 3.

Staff Comment:  The applicant proposed improving the existing bus stop on Providence Road at the northeast corner of the site to include a shelter. As recommend by the Transportation Board, we recommend with Resolution A, that a new bus stop be established on Old Sterling Drive with shelter, seating, and concrete pad instead of improving the existing stop at Providence Road.

Bicycle and Pedestrian Advisory Board Recommendation:  The Bicycle and Pedestrian Advisory Board reviewed this application on August 14, 2001 and voted 6-0 to recommend that the Council approve the application with the adoption of Resolution A. The Summary of Bicycle and Pedestrian Advisory Board Action is part of Attachment 3.

Community Design Commission:  The Commission reviewed this application on May 16, 2001, and voted 10-0 to recommend that the Council approve Resolution A. The Commission endorsed the proposed point of ingress/egress on Old Sterling Drive and the applicant’s decreased amount of grading on the site with the revisions since the Community Design Commission’s courtesy review. The summary of the Community Design Commission Action is part of Attachment 3.

Manager’s Recommendation:  Based on the information in the record to date, we believe that the Council could make the four findings required to approve the Special Use Permit.

We note that the purpose of tonight’s hearing is to receive additional information.

We recommend that the Council adopt Resolution A, approving the application with conditions.

.

Resolution B would deny the application.

ATTACHMENTS

1.      Resolution A – Approving the Application  (p. 8).

2.      Resolution B – Denying the Application  (p. 14).

3.  October 17, 2001 Public Hearing Memorandum and Related Attachments (begin new page1).
 ATTACHMENT  1

RESOLUTION A

(Manager’s Recommendation,

Planning Board Recommendation,

Transportation Board Recommendation,

 Community Design Commission, and

Bicycle and Pedestrian Board Recommendation)                                                                                                                                              

                                                                                                                                                                                   

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT FOR EASTOWNE  501 OFFICE BUILDING (2001-11-12/R-16a )

BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit application proposed by Philip Post and Associates, Inc. on property identified as Chapel Hill Township Tax Map 26, Lot 17M (PIN #9890715045), if developed according to the site plan dated November 1, 2000, revised April 19, 2001, and 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 required regulations and standards of the Development Ordinance, including all applicable provisions of Articles 12, 13, and 14, 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 Development Ordinance and in the Comprehensive Plan.

BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit for the Eastowne 501 Office Building in accordance with the plans listed above and with the conditions listed below:

                                                Stipulations Specific to the Development

1.                  Construction Deadlines:  That construction begin by November 12, 2003 (two years from the date of Council approval) and be completed by November 12, 2004 (three years from the date of Council approval).

2.                  Land Use Intensity:  This Special Use Permit authorizes the construction of a 2-story building with 36,709 square feet of floor area. Office-type business is permitted with up to 18,355 square feet of floor area authorized for clinic use.

Stipulations Specific to Transportation

3.                  Parking:  That up to 131 parking spaces shall be permitted on this site with standard parking dimensions, at least 18 of which are to be placed under the building.

4.                  Bicycle Parking:  That a minimum of 14 covered, illuminated and secure parking spaces shall be provided for bicycle parking spaces. Fourteen spaces are required on-site that are covered and lit. Proposed placement is for under the building adjacent to the vehicle parking. 

5.                  Shower and Locker Facilities:  That shower and locker facilities shall be provided in the building.

6.                  Town Standards:  That all parking lots, drive aisles and sidewalks associated with this development shall be constructed to Town standards.

7.                  Bus Stop:  A bus stop be provided on Old Sterling Drive, just west of the proposed entrance on Providence Road at the northern property line of the site shall be improved with the addition of a standard shelter and concrete pad and seating.

8.                  Transportation Management Plan: That a Transportation Management Plan be approved by the Town Manager prior to issuance of a Zoning Compliance Permit. This plan shall be updated and approved annually by the Town Manager. The required components of the Transportation Management Plan shall include:

a.       Provision for designation of a Transportation Coordinator;

b.      Provisions for an annual Transportation Survey and Annual Report to the Town Manager;

c.       Quantifiable traffic reduction goals and objectives;

d.      Ridesharing incentives; and

e.       Public transit incentives

9.                  Traffic Signal Payment-in-Lieu: That the applicant provide a proportional payment in-lieu for installation of a traffic signal at the Sage Road/Erwin Road intersection, not to exceed $1,500. This payment amount is based on the proportional 2.5% traffic impact of the proposed development at the Sage Road / Erwin Road intersection at peak hour, as applied to the estimated cost of a traffic signal. The impact fee formula is as follows: proportion of traffic impact x estimated signal cost = impact fee (2.5% x $60,000 = $1,500). The payment shall be refunded, if unused, 5 years from the date of the last Certificate of Occupancy issuance, upon request.

Stipulations Related to Landscape and Architecture

10.       Landscape Bufferyards: That the following landscape bufferyards shall be provided, and that if any existing vegetation is to be used to satisfy the buffer requirement, the vegetation shall be protected by fencing from adjacent construction:

11.       Landscape Plan:  That a detailed Landscape Plan and Landscape Protection Plan shall be approved by the Town Manager prior to issuance of a Zoning Compliance Permit. This plan shall indicate the location of the sewer line and be consistent with other sheets indicating the sewer location outside of the Resource Conservation District.

12.       Planting Strips:  That 5-foot wide landscaped planting strip shall be provided between parking areas and the building.

13.       Fencing:  That the silt/tree protection fence around the 50-inch poplar critical root zone be adjusted to permit construction of the masonry retaining wall and that the critical root zone be shown on the final plans. Similarly, the critical root zone, tree protection fencing, and grade revisions to reduce injury to the critical root zone of the 26-inch pine tree at the entrance on Old Sterling Drive shall be shown on the final plans.

Additionally, Tree Protection fencing and/or silt fencing shall be identified between the bio-retention drainage area that flows into the Resource Conservation District and the existing vegetation that is to remain.

14.       Parking Lot Shading:  That a Shading Plan be submitted and approved by the Town Manager for the parking areas. The plan shall demonstrate compliance with the Development Ordinance 35% parking lot shading requirement.

15.       Invasive Species:   The landscape design shall not use any plant materials that are considered invasive species, i.e. Ailanthus altissima and Eleagnus pungens.

16.       Retaining Wall:  That the design of the keystone, masonry retaining wall shall be adjusted to minimize negative impact to the critical root zone of the 50-inch poplar tree by extending the west side of the proposed wall parallel with the edge of the dumpster pad rather than continuing the arc.

17.       Building Elevations:  Detailed Building Elevations shall be approved by the Community Design Commission prior to the issuance of a Zoning Compliance Permit.

18.       Lighting Plan:  We recommend that a detailed Lighting Plan be approved by the Community Design Commission prior to the issuance of a Zoning Compliance Permit.                

Stipulations Related to Environment

19.              Stormwater Management:  Maintenance access for the underground stormwater detention structure shall be shown on the plans prior to the issuance of Zoning Compliance Permit.

20.              Stormwater Drainage Easement: All engineered stormwater detention and treatment structures shall be located within an easement entitled:  “Reserved Storm Drainageway Easement Hereby Dedicated” and shall be reserved from any development which would obstruct or constrict the effective conveyance and control of stormwater from or across the property, other than the approved design and operation functions.

Unless specifically designated as being “Public” the “Reserved Storm Drainageway Easement” and the facilities they protect are considered to be private, with the sole responsibility of the owner to provide for all required maintenance and operations as approved by the Town Manager.

21.              Performance Guarantee:  If more than one acre of land is disturbed, then a performance guarantee in accordance with Section 5-97.1 Bonds of the Town Code of Ordinances shall be required prior to final authorization to begin land-disturbing activities. This financial guarantee is intended to cover the costs of restoration of failed or railing soil erosion and sedimentation controls, and/or to remedy damages resulting from land-disturbing activities, should the responsible party or parties fail to provide prompt and effective remedies acceptable to the Town.

22.              Operations and Maintenance Plans:   Operations and Maintenance Plan shall be provided for all engineered structures and all said structures shall be located within a “reserved storm drainage way easement” as located on a plat and recorded at the Orange County Register of Deeds.

23.       Stormwater Management Plan:  That a Stormwater Management Plan be approved by the Town Manager prior to issuance of a Zoning Compliance Permit. Based on 2 and 50-year storms, the post-development stormwater run-off rate shall not exceed the pre-development rate.

24.       Bio-Retention:  The proposed bio-retention area shall be approved by the Town Manager prior to issuance of a Zoning Compliance Permit

A Planting Plan shall be submitted for the bio-retention area and approved by the Town Manager prior to issuance of Zoning Compliance Permit.

25.       Erosion Control:  That a detailed soil erosion and sedimentation control plan, including provision for a maintenance of facilities and modification of the plan if necessary, be approved by the Orange County Erosion Control Officer, and that a copy of the approval be provided to the Town Manager prior to issuance of a Zoning Compliance Permit.

Stipulations Related to Utility and Service

26.       Utility Plan Approval: That the final utility plan be approved by Orange Water and Sewer Authority (OWASA), Duke Power Company, BellSouth, Public Service Company, and the Town Manager before issuance of a Zoning Compliance Permit.

27.       Underground Utilities:  That all utility lines, other than 3-phase electric power distribution lines, shall be placed underground.

28.       Fire Flow:  That a fire flow report prepared by a registered professional engineer be approved by the Town Manager prior to issuance of a Zoning Compliance Permit.

That the fire hydrant proposed in the planting island in the upper parking lot be provided within 50 feet of the Fire Department sprinkler system connection.

29.       Sprinkler System:  That the building shall have a sprinkler system in accordance with Town code, which shall be approved by the Town Manager.

30.       Solid Waste Management Plan: That a Solid Waste Management Plan, including provisions for recycling and for the management and minimizing of construction debris, shall be approved by the Town Manager prior to issuance of a Zoning Compliance Permit.

31.       Heavy-Duty Paving:  That all drive aisles that provide access to the compactors, dumpsters or recycling facilities, be constructed with heavy-duty pavement.

Other Stipulations

32.       Open Burning:  That no open burning shall be permitted during construction of this development.

33.       Plant Rescue:  That the applicant is encouraged to conduct a “plant rescue” for this site, after the issuance of a Zoning compliance Permit and prior to the start of construction.

 

34.       Certificates of Occupancy:  That no Certificates of Occupancy shall be issued until all required public improvements are complete, and that a note to this effect shall be placed on the final plat.

35.       Detailed Plans:  That the final detailed site plan, grading plan, utility/lighting plans, stormwater management plan (with hydraulic calculations), and landscape plans shall be approved by the Town Manager prior to issuance of a Zoning Compliance Permit, and that such plans shall conform to the plans approved by this application and demonstrate compliance with all applicable conditions and design standards of the Development Ordinance and Design Manual.

36.       Silt Control:  That the applicant take appropriate measures to prevent and remove the deposit of wet or dry silt on adjacent paved roadways.

37.       Construction Sign Required:  That the applicant post a construction sign that lists the property owner’s representative, with a telephone number; the contractor’s representative, with a telephone number; and a telephone number for regulatory information at the time of issuance of a Building Permit. The construction sign may have a maximum of 32 square feet of display area and may not exceed 8 feet in height.  The sign shall be non-illuminated, and shall consist of light letters on a dark background.

38.       Continued Validity:  That continued validity and effectiveness of this approval is expressly conditioned on the continued compliance with the plans and conditions listed above. 

39.       Non-severability:  That if any of the above conditions is held to be invalid, approval in its entirety shall be void. 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the application for a Special Use Permit for the Eastowne 501 Office Building.

This the 12th  day of  November,  2001.


 

ATTACHMENT 2

RESOLUTION B

(Denying the Application)

A RESOLUTION DENYING AN APPLICATION FOR A SPECIAL USE PERMIT FOR THE EASTOWNE 501 OFFICE BUILDING (2001-11-12/R-16b)

BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit application proposed by Philip Post and Associates on property identified as Chapel Hill Township Tax Map 26, Lot 17M, and PIN #9890715045, if developed according to the site plan dated November 1, 2000, revised April 19, 2001 and conditions listed below, would not:

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 required regulations and standards of the Development Ordinance, including all applicable provisions of Articles 12, 13, and 14, 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 to the general plans for the physical development of the Town as embodied in the Development Ordinance and in the Comprehensive Plan.

BE IT FURTHER RESOLVED that the Council finds:

(INSERT REASONS FOR DENIAL)

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby denies the application for a Special Use Permit for Eastowne 501 Office Building

This the 12th  day of November, 2001.