AGENDA #7b

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Hotel L’Europa/Village Office Park Complex

Application for Special Use Permit Modification

DATE: November 12, 2001

INTRODUCTION

Tonight the Council continues the Public Hearing from June 25, 2001 regarding an application seeking approval of a Special Use Permit Modification for the Hotel L’Europa/Village Office Park Complex. Adoption of Resolutions A, B, C, or D would approve the Special Use Permit Modification. Adoption of Resolution E 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, denial, comments on issues raised during the May 14 Public Hearing, and a copy of the Public Hearing memorandum and its related attachments.

Background

On May 14, 2001, and continued on June 25, a Public Hearing was held for consideration of a Special Use Permit Modification application to reduce the area encumbered by the Hotel L’ Europa 1981 Special Use Permit boundary; and to divide the remaining Special Use Permit boundary area and associated developments into two separate Special Use Permits.

This is an application for a Special Use Permit Modification. The Development Ordinance requires the Town Manager to conduct an evaluation of this Special Use Permit Modification application, to present a report to the Planning Board, and to present a report and recommendation to the Town Council. We have reviewed the application and evaluated it regarding its compliance with the standards and regulations of the Town’s Development Ordinance; we have presented a report to the Planning Board; and on May 14, we submitted our report and recommendation to the Council.

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 or not it can make each of the four required findings for the approval of a Special Use Permit Modification.

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 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 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 Modification.

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: The applicant’s Statement of Justification (provided as an attachment to June 25 memorandum) provides evidence in supportof Finding #1. We note the following key points raised by the applicant:

· “The existing traffic conditions in the vicinity would not be affected by the separation of the three tracts into separate Special Use Permits.” [Applicant Statement]

· “There would be no impact to the existing conditions or to the provisions of any services as a result of providing separate Special Use Permits.” [Applicant Statement]

Evidence in opposition: Evidence in opposition of Finding #1 for this application includes an April 24, 2001 letter from Mr. Harvey C. Krasny (provided as an attachment to the June 25 memorandum).

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.

The application notes that if a Special Use Permit Modification is approved for a reduction of the boundary encumbering the Sheraton Hotel, the hotel site will meet the provisions of the Article 12, 13 and 14 with the following exceptions:

· Permitted Floor Area; and

· Landscape bufferyard along US 15-501.

The applicant is requesting that the Council modify the regulation for the hotel site relating to permitted floor area and bufferyard requirements. Please refer to the attached May 14 memorandum for additional discussion on these issues.

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

Evidence in support: The applicant’s Statement of Justification (provided as an attachment to the June 25 memorandum) provides evidence in supportof Finding #2. We note the following key points raised by the applicant:

1. Modification to Permitted Floor Area for the Sheraton Hotel.

· “The hotel site is slightly over the requirements of the Zoning Ordinances as it relates to the land area intensity ratio for maximum floor area; however, the Village Office Park tract is well below its maximum allowed floor area. The overall land intensity ratio for maximum floor area for these two sites combined is well below the maximum allowed.” [Applicant Statement]

We believe additional evidence in support of the Council modifying the permitted floor area for the hotel site can be summarized as follows:

· The modification would permit the development of the 2.24-acre adjacent site to proceed unencumbered by the existing Special Use Permit. As long as the existing Special Use Permit encumbers the site, the use of the site for something other than a gravel parking lot and tennis courts is prohibited. The use of this lot for tennis courts and a gravel parking area could be found to not serve public purpose.

· There is value to the community by replacing the gravel parking area and seldom-used tennis courts on this 2.24-acre tract with office space.

· Public purpose is being served as the development of the lot for office use conforms to the Land Use Plan component of the Comprehensive Plan.

· Office development typically generates fewer car trips per day and requires less public service than other development types.

2. Modification to landscape bufferyard along US 15-501.

· “That the Council modify the regulations related to the following Development Ordinance requirements: Buffers and Landscaping.” [Applicant Statement]

We believe additional evidence in support of the Council modifying the bufferyard requirements along US 15-501 can be summarized as follows:

· Modification to allow the use of the existing buffeyard width would permit the development of the 2.24-acre adjacent site to proceed unencumbered by the existing Special Use Permit.

· There is value to the community by replacing the gravel parking area and seldom used tennis courts on this 2.24- acre tract with office space.

· The existing vegetation along US 15-501, on the hotel site and within the highway right-of-way, provides a visual obstruction that effectively buffers and screens the hotel.

Additional evidence in support of Finding #2 includes:

· “The proposed project meets all of the dimensional requirements of the Development Ordinance.” [Applicant Statement]

· “All of the sites meet the minimum requirements for minimum setbacks around their perimeters and for parking.” [Applicant Statement]

· “The Project Fact Sheet for the hotel site indicates that a total of 223 parking spaces are provided. This is a surplus of 40 spaces over the required 183. The Village Office Park has a total of 48 parking spaces. This is more than the spaces required by the Ordinance.” [Applicant Statement]

Evidence in opposition: Evidence in opposition of Finding #2 for this application would be the fact that the development proposal does not meet the following Development Ordinance requirements:

1. Permitted floor area on the site.

2. Required landscape bufferyard along US 15-501.

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.

At the May 14 hearing, the Council established that, for this application, “contiguous property” means parcels within 2,000 feet of the site.

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

Evidence in support: The applicant’s Statement of Justification (provided as an attachment to June 25 memorandum) provides evidence in supportof Finding #3. We note the following point raised by the applicant:

· “The modification of a Special Use Permit to reduce the boundaries of the Hotel L’Europa/Village Office Park Complex Special Use Permit to exclude a 2.03-acre tract currently occupied by a gravel parking lot will have no impact on the value of contiguous properties.” [Applicant Statement]

Evidence in opposition:We have not been able to identify evidence presented in opposition to Finding #3 for this application raised at the Public Hearing.

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: The applicant’s Statement of Justification (provided as an attachment to the June 25 memorandum) provides evidence in supportof Finding #4. We note the following point raised by the applicant:

· “The hotel site and the Village Office Park site conform with the Zoning Atlas and the Adopted Land Use Plan. The request to reduce the boundaries of the Hotel L’Europa/Village Office Park Complex Special Use Permit to exclude a 2.03-acre tract currently occupied by a gravel parking lot will have no affect on the Resource Conservation District, the Chapel Hill Thoroughfare Plan, the Greenway Plan, the Land Use Plan, or the Urban Services Area.” [Applicant Statement]

Evidence in opposition:We have not been able to identify evidence presented in opposition to Finding #4 for this application raised at the Public Hearing.

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

KEY ISSUES

We believe that the key issue at the May 14 hearing concerned traffic on US 15-501 and in the immediate area. Please refer to the accompanying Procedural Memorandum on the Europa Applications for continued discussion on traffic. (Item A of this 3-part Agenda Item.)

Recommendations

Advisory Board recommendations are summarized below.

Planning Board Recommendation: The Planning Board reviewed this application on May 1, 2001 and voted 5-1 to recommend that the Council approve this application for a Special Use Permit Modification with the adoption of Resolution B. The Summary of Planning Board Action is attached to the June 25, 2001 memorandum.

Transportation Board Recommendation: The Transportation Board reviewed this application on May 1, 2001, and voted 7-0 to recommend that the Council request that the applicant update the Traffic Impact Statement and return to the Transportation Board for additional review. We refer the Council to the Procedural Memorandum on the Europa Applications for additional comment on the applicant’s Traffic Impact Statement. The Summary of Transportation Board Action is attached to the June 25, 2001 memorandum.

Community Design Commission Recommendation: The Community Design Commission reviewed this application on May 8, 2001 and voted 5-3 to recommend that the Council approve this application for a Special Use Permit Modification with the adoption of Resolution C. The Summary of Community Design Commission Action is attached to the June 25, memorandum.

Bicycle and Pedestrian Advisory Board Recommendation: The Bicycle and Pedestrian Advisory Board reviewed this application on May 22, 2001 and voted 6-0 to recommend that the Council approve this application for a Special Use Permit Modification with the adoption of Resolution D. The Summary of Bicycle and Pedestrian Advisory Board Action is attached to the June 25 memorandum.

Resolutions A and D include the following recommended condition of the Bicycle and Pedestrian Advisory Board:

· That the hotel site and the proposed office building record a reciprocal parking agreement for share use of parking spaces.

Staff Comment: We believe an opportunity exists for shared use of the parking facilities on the hotel site and the proposed office development. We anticipate peak-parking activities, associated with the proposed office building, will occur between 8:00 am and 6:00 pm Monday through Friday. We believe the use of the office building parking area, by the hotel during the evenings and on weekends is appropriate. Although we note that the amount of parking spaces available on the hotel site for office tenants is likely to be minimal, some hotel parking spaces may be available before guest check-in.

We also believe that the applicant intends to work cooperatively with the owner of the hotel site in signing and recording a shared parking agreement. We have included this stipulation in the Manager’s Revised Recommendation.

Manager’s Revised 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 Modification.

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.

Based on discussion and evidence presented at the Public Hearing, we have included the recommendation of the Bicycle and Pedestrian Advisory Board and revised our recommendation to include the following stipulation:

· That the hotel site and the proposed office building record a reciprocal parking agreement for share use of parking spaces.

Accordingly, we recommend that the application for a Special Use Permit Modification be approved with the adoption of Resolution A, the Manager’s revised recommendation.

Resolution B would approve the application based on the recommendations of the Planning Board.

Resolution C would approve the application based on the recommendation of the Community Design Commission.

Resolution D would approve the application based on the recommendation of the Bicycle and Pedestrian Advisory Board.

Resolution E would deny the application.

HOTEL L’ EUROPA/VILLAGE OFFICE PARK COMPLEX

SPECIAL USE PERMIT MODIFICATION

DIFFERENCES AMONG RESOLUTIONS

ISSUE

Resolution A

Manager’s Revised Recommendation

Resolution B

Planning Board Recommendation

Resolution C

Community Design Commission Recommendation

Resolution D

Bicycle and Pedestrian Advisory Board Recommendation

Vehicular Connection to Hotel

~~n to exceed 110% of minimum requirement~~

Yes, location may be adjusted

Shared Parking Agreement

Yes

*Issue was not discussed at this particular advisory board’s meeting and is therefore not included in this Resolution.

ATTACHMENTS

1. Resolution A – Approving the Application (p. 9).

2. Resolution B – Approving the Application (p. 12).

3. Resolution C – Approving the Application (p. 14).

4. Resolution D – Approving the Application (p. 16).

5. Resolution E – Denying the Application (p. 18).

6. June 25, 2001 Public Hearing Memorandum and Related Attachments (begin new page one).

ATTACHMENT 1

RESOLUTION A

(Manager’s Revised Recommendation)

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX (2001-11-12/R-12a)

BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Duane Stewart and Associated, Inc., on property identified as Chapel Hill Township Tax Map 27, Block E, Lot 2 PIN# 9799478402, 7.27.E.2D PIN# 9799570157 and 7.27.E.2E PIN# 9799468987), if developed according to the site plan prepared on January 6, 1999, 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 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:

1. Modification of Subsection 13.1.11 Use Group B, of the Development Ordinance to allow a total of 108,000 square feet of floor area on the Sheraton Hotel site (Chapel Hill Township Tax Map 27, Block E, Lot 2 PIN# 9799478402).

2. Modification of Subsection 14.12 to allow the existing landscape bufferyard width on the US 15-501 frontage on the on the Sheraton Hotel site (Chapel Hill Township Tax Map 27, Block E, Lot 2 PIN# 9799478402), in lieu of the required landscape bufferyard width.

Said public purpose being that 1) The modification will allow the development of the 2.24-acre adjacent site to proceed unencumbered by the existing Special Use Permit; 2) The use of the 2.24-acre site for tennis courts and a gravel parking area does not serves the public purpose; 3) Value is provided to the community by replacing the gravel parking area and tennis courts with office space; 4) The public purpose is being served as the development of the 2.24-acre site for office use conforms to the Comprehensive Land Use plan; 5) Office development typically generates less car trips per day and requires less public service than other development types; and 6) The existing vegetation along US 15-501, on the hotel site and within the highway right-of-way, provides a visual obstruction that effectively buffers and screens the hotel.

BE IT FURTHER RESOLVED that the Town Council hereby approves the application for a Special Use Permit Modification for Hotel L’Europa/Village Office Complex in accordance with the plans listed above and with the conditions listed below:

Stipulations Specific to the Development

1. Relationship to 1981 Special Use Permit Modification: That this approval authorizes the use of approximately 6.95 acres. This authorization is intended to be in addition to the terms of the Town Council, November 23, 1981 Special Use Permit Modification document recorded in deed book 380, page 94 of the Orange County Register of Deeds.

2. Alteration of Special Use Permit Boundary: That the 1981 Special Use Permit boundary shall be altered to exclude the 2.24-acre tract (Tax Map 7.27.E.2E PIN# 9799468987) located at the northeast corner of Europa Drive and Legion Road. That separate and distinct Special Use Permit boundaries shall be created around the perimeter of the following parcels: Chapel Hill Township Tax Map 27, Block E, Lot 2 PIN# 9799478402, and Chapel Hill Township Tax Map 27, Block E, Lot 2D PIN# 9799570157. The gross land area of the new Special Use Permit boundary is 6.95-acres.

3. Land Use Intensity: This Special Use Permit Modification authorizes creation of two separate Special Use Permits:

Sheraton Hotel Permit

Ø Total # of Buildings (excluding outbuildings) 1

Ø Total # of Hotel Rooms: 168

Ø Maximum Floor Area (sq.ft) 108,000

Ø Maximum # of Parking Spaces: 238

Ø Minimum Outdoor Space (sq.ft.): 181,862

Ø Minimum Livability Space (sq.ft.): 64,608

Village Park Office Complex Permit

Ø Total # of Buildings (excluding outbuildings) 1

Ø Maximum Floor Area (sq.ft) 13,000

Ø Maximum # of Parking Spaces: 41

Ø Minimum Outdoor Space (sq.ft.): 48,320

Ø Minimum Livability Space (sq.ft.): 17,166

4. Vehicular Connection Between the Hotel and 2.24-acre Tract: That the existing vehicular connection, between the hotel parking lot and the adjacent 2.24-acre lot to the south, shall be retained. This connection shall be available for vehicular and service vehicle access for future development on the 2.24-acre tract. Prior to recordation of the Special Use Permit Modification document, a recorded easement providing for vehicular and service vehicle access to the 2.24-acre parcel, shall be recorded with the Orange County Register of Deeds office and a copy of the recorded document shall be submitted to the Town. This easement shall be reviewed and approved by the Town Manager prior to recordation.

5. Shared Parking Agreement: That prior to the recordation of the Special Use Permit Modification document, a shared parking agreement, between the hotel property and the 2.24 acre lot to the south, shall be recorded with the Orange County Register of Deeds office and a copy of the recorded document shall be submitted to the Town. This agreement shall be reviewed and approved by the Town Manager prior to recordation.

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 Modification for Hotel L’Europa/Village Park Complex.

This the 12^th day of November, 2001.

ATTACHMENT 2

RESOLUTION B

(Planning Board Recommendation)

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX (2001-11-12/R-12b)

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 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:

Stipulations Specific to the Development

1. Resolution A: That all of the stipulations in Resolution A shall apply to the proposed development, unless modified or superseded by those stipulations below.

2. Vehicular Connection Between the Hotel and 2.24-acre Tract: That in lieu of retaining the existing vehicular connection between the site and the hotel parking lot, the applicant may provide an alternative vehicular connection between the proposed development and the hotel parking lot. Final location for a vehicular connection between the hotel parking lot and the site shall be reviewed and approved by the Town Manager.

This connection shall be available for vehicular and service vehicle access for the proposed development. Prior to the issuance of a Zoning Compliance Permit, an easement providing for vehicular and service vehicle access between the hotel property, across the proposed site, to Europa Drive, shall be recorded with the Orange County Register of Deeds Office and a copy of the recorded document shall be submitted to the Town. This easement shall be reviewed and approved by the Town Manager prior to recordation.

3. Delete stipulations: Delete stipulation #5.

This the 12^th day of November, 2001.

ATTACHMENT 3

RESOLUTION C

(Community Design Commission Recommendation)

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX (2001-11-12/R-12c)

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 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:

Stipulations Specific to the Development

1. Resolution A: That all of the stipulations in Resolution A shall apply to the proposed development, unless modified or superseded by those stipulations below.

2. Delete stipulations: Delete stipulation #4 and #5.

This the 12^th day of November, 2001.

ATTACHMENT 4

RESOLUTION D

(Bicycle and Pedestrian Advisory Board Recommendation)

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX (2001-11-12/R-12d)

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 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:

Stipulations Specific to the Development

1. Resolution A: That all of the stipulations in Resolution A shall apply to the proposed development, unless modified or superseded by those stipulations below.

2. Delete stipulations: Delete stipulation #4.

This the 12^th day of November, 2001.

ATTACHMENT 5

RESOLUTION E

(Denying the Application)

A RESOLUTION DENYING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR HOTEL L’EUROPA/VILLAGE OFFICE PARK COMPLEX BUILDING (2001-11-12/R-12e)

BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit Modification application proposed by Duane Stewart and Associated, Inc., on property identified as Chapel Hill Township Tax Map 27, Block E, Lot 2 PIN# 9799478402, 7.27.E.2D PIN# 9799570157 and 7.27.E.2E PIN# 9799468987, if developed according to the site plan prepared on January 6, 1999, 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 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 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 Modification for Hotel L’ Europa/Village Office Complex.

This the 12^th day of November, 2001.