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Council Communication

Title:	An Ordinance Modifying Chapter 18.108 and 18.106 of the Ashland Municipal Code, Land Use Ordinance, Regarding Approval Standards for Zone Changes and Annexations.
Dept:	Department of Community Development, Planning Division
Date:	March 18, 2003
Submitted By:	John McLaughlin, Director of Community Development
Reviewed By: ...........................	Gino Grimaldi, City Administrator

Synopsis:	The City's annexation ordinance currently has an affordable housing provision requiring a percentage of the units within a residential development to be affordable. This ordinance amendment clarifies the levels of affordability required, provides different percentage options based on affordability, addresses an option to provide land to a non-profit housing developer, and requires that the units remain affordable for a period of not less than 60 years. During the discussions regarding the Croman property redevelopment, issues arose over requiring affordable housing when changing the zone of a property from commercial/industrial to residential, and when upzoning residential properties. The proposed ordinance explicitly defines the affordability standards associated with such zone change requests, outlining percentage options, and requiring that units remain affordable for a period of not less than 60 years. The Planning Commission, at their January 14, 2003 meeting, recommended approval of the ordinance as presented.
Recommendation:	Staff recommends that the Council approve the ordinance amendments as proposed, and direct staff to bring back the ordinance for first reading at the next meeting.
Fiscal Impact:	There will be varying staff time necessary to administer the affordable housing agreements required for any projects approved under this ordinance. It is likely that these will be the duties of the Housing Program Specialist.
Background:	The ordinance, staff reports, and minutes of the Planning Commission meetings are attached. This item was initially proposed by the Housing Commission to address concerns related to affordable housing with annexations and zone changes. Concerns were related to specifically targeting certain median income classes, and ensuring that the units were guaranteed affordable for a significant time period. Staff drafted the proposed ordinance and held meetings with the Housing Commission and Planning Commission. Testimony was received and adjustments were made based on the comments. Concern was raised by the development community as to the nature of the amendments and the impact on market rate housing. These issues were considered by the Commissions and the final ordinance presented here was the result. The number of annexations and zone changes are relatively small in Ashland, with few occurring in recent years. Table of Contents Page Proposed Ordinance Zone Change Scenario - Hypothetical Example Memo to Council and Planning Commission 7/2/02 Staff Report 07/09/02 PC Minutes 07/09/02 Staff Report Addendum 08/13/02 PC Minutes 08/13/02 Letter from Greenwood Homes 09/09/02 Letter from Russ Dale 09/20/02 Staff Report 01/14/03 PC Minutes 01/14/03 1 7 9 13 18 22 25 29 33 34 38

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ORDINANCE NO. _______

AN ORDINANCE MODIFYING CHAPTER 18.108 AND 18.106 OF THE ASHLAND MUNICIPAL CODE, LAND USE ORDINANCE, REGARDING APPROVAL STANDARDS FOR ZONE CHANGES AND ANNEXATIONS

THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:

Annotated to show deletions and additions to the code sections being modified.
Deletions are lined through and additions are in bold.

SECTION 1. Section 18.108.060.B. Standards for Type III Planning Actions of the Ashland Municipal Code is amended to read:

1. Zone changes, zoning map amendments and comprehensive plan map changes subject to the Type III procedure as described in subsection A of this section may be approved if in compliance with the comprehensive plan and the application demonstrates that: one of the following conditions exist:

A. The change implements a public need, other than the provision of affordable housing, supported by the Comprehensive Plan; or

B. the need to correct mistakes A substantial change in circumstances has occurred since the existing zoning or Plan designation was proposed, necessitating the The need to adjust to new conditions the changed circumstances; or

C. Where Circumstances relating to the general public welfare exist that require such an action; or

D. Proposed increases in residential zoning density resulting from a change from one residential zoning district to another residential zoning district, will provide one of the following:

1. 35% of the base density to qualifying buyers or renters with incomes at or below 120% of median income; or

2. 25% of the base density to qualifying buyers or renters with incomes at or below 100% of median income; or

3. 20% of the base density to qualifying buyers or renters with incomes at or below 80% of median income; or

4. 15% of the base density to qualifying buyers or renters with incomes at or below 60% of median income; or

5. Title to a sufficient amount of buildable land for development is transferred to a non-profit (IRC 501(3)(c)) affordable housing developer or comparable Development Corporation for the purpose of complying with subsection 2 above. The land shall be located within the project and all needed public facilities shall be extended to the area or areas proposed for transfer. Ownership of the land shall be transferred to the affordable housing developer or Development Corporation prior to commencement of the project; or

E. Increases in residential zoning density of four units or greater on commercial, employment or industrial zoned lands (i.e. Residential Overlay), will not negatively impact the City of Ashland's commercial and industrial land supply as required in the Comprehensive Plan, and will provide one of the following:

1. 35% of the base density to qualifying buyers or renters with incomes at or below 120% of median income; or

2. 25% of the base density to qualifying buyers or renters with incomes at or below 100% of median income; or

3. 20% of the base density to qualifying buyers or renters with incomes at or below 80% of median income; or

4. 15% of the base density to qualifying buyers or renters with incomes at or below 60% of median income; or

5. Title to a sufficient amount of buildable land for development is transferred to a non-profit (IRC 501(3)(c)) affordable housing developer or comparable Development Corporation for the purpose of complying with subsection 2 above. The land shall be located within the project and all needed public facilities shall be extended to the area or areas proposed for dedication. Ownership of the land and/or air space shall be transferred to the affordable housing developer or Development Corporation prior to commencement of the project.

The total number of affordable units described in sections D or E shall be determined by rounding down fractional answers to the nearest whole unit. A deed restriction, or similar legal instrument, shall be used to guarantee compliance with affordable criteria for a period of not less than 60 years.

Sections D and E do not apply to council initiated actions.

SECTION 2. Section 18.106.030 Approval Standards of the Ashland Municipal Code is amended to read:

An annexation may be approved if the proposed request for annexation conforms, or can be made to conform through the imposition of conditions, with the following approval criteria:

A. The land is within the City's Urban Growth Boundary.

B. The proposed zoning for the annexed area is in conformance with the designation indicated on the Comprehensive Plan Map, and the project, if proposed concurrently with the annexation, is an allowed use within the proposed zoning.

C. The land is currently contiguous with the present City limits.

D. Adequate City facilities for the provision of water to the site as determined by the Public Works Department; the transport of sewage from the site to the waste water treatment plant as determined by the Public Works Department; the provision of electricity to the site as determined by the Electric Department; urban storm drainage as determined by the Public Works Department can and will be provided to and through the subject property. Unless the City has declared a moratorium based upon a shortage of water, sewer, or electricity, it is recognized that adequate capacity exists system-wide for these facilities.

E. Adequate transportation can and will be provided to and through the subject property. For the purposes of this section "adequate transportation" for annexations consists of vehicular, bicycle, pedestrian and transit transportation meeting the following standards:

1. For vehicular transportation a 20' wide paved access exists, or can and will be constructed, along the full frontage of the project site to the nearest fully improved collector or arterial street. All streets adjacent to the annexed area shall be improved, at a minimum, to a half-street standard with a minimum 20' driving surface. The City may, after assessing the impact of the development, require the full improvement of streets adjacent to the annexed area. All streets located within annexed areas shall be fully improved to city standards. Where future street dedications are indicated on the City's Street Dedication Map or required by the City, provisions shall be made for the dedication and improvement of these streets and included with the application for annexation.

2. For bicycle transportation safe and accessible bicycle facilities exist, or can and will be constructed. Should the annexation be adjacent to an arterial street, bike lanes shall be provided on or adjacent to the arterial street. Likely bicycle destinations from the project site shall be determined and safe and accessible bicycle facilities serving those destinations shall be indicated.

3. For pedestrian transportation safe and accessible pedestrian facilities exist, or can and will be constructed. Full sidewalk improvements shall be provided on one side adjacent to the annexation for all streets adjacent to the proposed annexed area. Sidewalks shall be provided as required by ordinance on all streets within the annexed area. Where the project site is within a quarter of a mile of an existing sidewalk system, the sidewalks from the project site shall be constructed to extend and connect to the existing system. Likely pedestrian destinations from the project site shall be determined and the safe and accessible pedestrian facilities serving those destinations shall be indicated.

4. For transit transportation, should transit service be available to the site, or be likely to be extended to the site in the future based on information from the local public transit provider, provisions shall be made for the construction of adequate transit facilities, such as bus shelters and bus turn-out lanes.

All required transportation improvements shall be constructed and installed prior to the issuance of a certificate of occupancy for any new structures on the annexed property.

F. For all residential annexations, a plan shall be provided demonstrating that the development of the entire property will ultimately occur at a minimum density of 90% of the base density for the zone, unless reductions in the total number of units is necessary to accommodate significant natural features, topography, access limitations, or similar physical constraints. The owner or owners of the property shall sign an agreement, to be recorded with the county clerk after approval of the annexation, ensuring that future development will occur in accord with the minimum density indicated in the development plan. For purposes of computing maximum density, portions of the annexed area containing undevelopable areas such as wetlands, floodplain corridor lands, or slopes greater than 35%, shall not be included.

G. For all residential annexations with a density or potential density of four residential units or greater and involving residential zoned lands, or commercial, employment or industrial lands with a Residential Overlay (R-Overlay):

1. 35% of the base density to qualifying buyers or renters with incomes at or below 120% of median income; or

2. 25% of the base density to qualifying buyers or renters with incomes at or below 100% of median income; or

3. 20% of the base density to qualifying buyers or renters with incomes at or below 80% of median income; or

4. 15% of the base density to qualifying buyers or renters with incomes at or below 60% of median income; or

5. Title to a sufficient amount of buildable land for development is transferred to a non-profit (IRC 501(3)(c)) affordable housing developer or comparable Development Corporation for the purpose of complying with subsection 2 above. The land shall be located within the project and all needed public facilities shall be extended to the area or areas proposed for transfer. Ownership of the land shall be transferred to the affordable housing developer or Development Corporation prior to commencement of the project.

The total number of affordable units described in this section G shall be determined by rounding down fractional answers to the nearest whole unit. A deed restriction, or similar legal instrument, shall be used to guarantee compliance with affordable criteria for a period of not less than 60 years. Properties providing affordable units as part of the annexation process shall qualify for a maximum density bonus of 25 percent.

25% of the proposed units shall be affordable and available to qualifying buyers or renters with incomes at or below 100% of median income; or

15% of the proposed units shall be affordable and available to qualifying buyers or renters with incomes at or below 80% of median income.

The total number of affordable units required by this section shall be determined by rounding down fractional answers, determined above, to the nearest whole unit.

Properties providing affordable units as part of the annexation process shall also qualify for a density bonus for development under the Performance Standards Option for subdivisions. Properties providing affordable units as part of the annexation process shall also qualify for a density bonus for development under the Performance Standards Option for subdivisions.

H. One or more of the following standards are met:

1. The proposed area for annexation is to be residentially zoned, and there is less than a five-year supply of vacant and redevelopable land in the proposed land use classification within the current city limits. "Redevelopable land" means land zoned for residential use on which development has already occurred but on which, due to present or expected market forces, there exists the likelihood that existing development will be converted to more intensive residential uses during the planning period. The five-year supply shall be determined from vacant and redevelopable land inventories and by the methodology for land need projections from the Housing Element of the Comprehensive Plan; or

2. The proposed lot or lots will be zoned E-1 or C-1 under the Comprehensive Plan, and that the applicant will obtain Site Review approval for an outright permitted use, or special permitted use concurrent with the annexation request; or

3. A current or probable public health hazard exists due to lack of full City sanitary sewer or water services; or

4. Existing development in the proposed annexation has inadequate water or sanitary sewer service; or the service will become inadequate within one year; or

5. The area proposed for annexation has existing City of Ashland water or sanitary sewer service extended, connected, and in use, and a signed "consent to annexation" agreement has been filed and accepted by the City of Ashland; or

6. The lot or lots proposed for annexation are an "island" completely surrounded by lands within the city limits. (ORD 2792, 1997)

The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the _____ day of __________________, 2003,  and duly PASSED and ADOPTED this ___ day of __________________, 2003.
Barbara M. Christensen, City Recorder

SIGNED and APPROVED this day of , 2003.
Alan W. DeBoer, Mayor

Reviewed as to form:
Paul Nolte, City Attorney

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